Bonds and Guarantees in EPC Contracts

This Skill Bit shows, that Bonds, guarantees, and parent company guarantees are vital security measures in EPC contracts. Conditional bonds protect contractors from unjust calls, with clear expiry dates to manage liabilities. A written statement of claimed default fosters structured dispute resolution. Standardized forms ensure consistency and efficiency, while insurance mitigates financial risk. Parent company guarantees offer added security, leveraging the financial strength of a larger entity. Careful structuring of these instruments balances security and fairness, crucial for successful project completion in EPC projects.

Duration approx. 5 Min.

Tier: advanced

A part of Contracts – Mastering EPC Key Clauses course.