Lauren Adams looks at the value of performance bonds to the construction industry and the protection historically given to them by the courts. The paper considers recent developments in Simon Carves and Doosan and argues that the courts have shown a greater willingness to investigate the merits of a call on a bond to prevent the harsh effects of an improper call on contractors. It is argued that these cases have not struck the right balance of interests between employers and contractors: the proper solution to the inherent tension in performance bonds is to be found at the pre-contractual stage.
New Clots in the Lifeblood of International Construction Projects: Enjoining employers’ calls on performance bonds. Const. L.J. 2014, 30(7), 325-336 © Sweet and Maxwell.