Construction Law/performance bond


the employer have several branches with head office in UK,

as per contract the contractor shall submit a performance bond addressed to employer -UK address.

as the contract is in middle east the contractor bank want to issue the bond to the employer address in the middle east
is that ok ?

Hi Noor
If the words in the Contract require that the bond be issued to the UK address then that is what should happen if one of the parties object to any change.
However there is nothing to stop the contracting parties from changing this by written agreement and it seems that the Bond Holder (bank) wants this to happen.
So get an agreement from the UK employer but he may be reluctant if the Middle East bank is serving both the Contractor and ME subsidiary - which would create a conflict of interest.
Best regards
Mike Testro

Construction Law

All Answers

Answers by Expert:

Ask Experts


Mike Testro


Anything related to extensions of time and delay analysis.


45 years in the Construction Industry 15 Years as a consultant delay analyst - I now hold myself to be expert in this field.

Society of Construction Law Adjudication Society ex Planning Engineers Organisation

6 articles on the relevance of the India Contract Act 1872 and its relevance to modern construction in India. Waiting Publication

Associate Member of the Institue of Building

Past/Present Clients
Currently employed in India by Punj Lloyd as expert delay analyst. Engaged in ongoing arbitrations and EoT claims. Prior an Indepenent consultant in delay analysis.

©2017 All rights reserved.