Construction Law Episode 12: Security for Performance

In this episode, we explore security for performance within construction contracts, drawing on Julian Bailey's Construction Law. This episode unpacks the range of mechanisms available to ensure contract obligations are fulfilled, including performance bonds, parent company guarantees, and retention monies. We discuss the purpose and types of security commonly used, such as on-demand bonds versus conditional bonds, and the legal principles that govern them. The episode also delves into the employer’s right to call on security in cases of contractor default, the conditions required for valid claims, and key case law illustrating enforcement issues. Whether you’re a contractor or an employer, this episode provides essential insights into managing and securing performance effectively in construction projects.