A go to firm when it comes to security under construction contracts. Its lawyers have been involved in high profile litigation questioning the “pulling of guarantees” and advised some of the largest bond and bank guarantee providers in the country.
Increasingly security provided in the industry is in the nature of a general risk allocation device, available to be converted on the happening of any number of events and for many reasons, not only if there has been an event of ‘default’ or insolvency.
Understanding the breadth of so called ‘negative stipulations’ (the restrictions, if any, on calling upon security) is crucial to both contractors and surety providers alike and principals seeking the widest possible protection in drafting.
We regularly review security provisions in construction contracts and provide specific advice on this area.
In certain circumstances it may be necessary to approach the courts to prevent the calling up of a bond, guarantee or retention.
We have extensive experience in (quickly) preparing and running such applications.