Their October 2020 issue, the Hunter Business Review featured an article by Nexus Law Group Manager Director Marcus McCarthy and Group Principal Simon Fosterling on Understanding the Pros and Cons of Surety Bonds.

“An aura of uncertainty exists around whether surety bonds really are ‘as good as’ bank guarantees,” said commenting on the article, Group Principal Simon Fosterling, “Some of key points to be aware of that help manage and dispel this uncertainty include:
• Contracts may set out required wording for security to be
unconditional, and the wording on a surety bond can be exactly the same unconditional wording as on a bank guarantee.
• Often the credit rating of the insurance company issuing the surety bond will be just as good if not better than the credit rating of the banks issuing the bank guarantee.
• Surety bond providers will usually be able to provide a list of organisations that routinely accept surety bonds, which can help demonstrate general industry acceptance of surety bonds.”

Click here to to read this article in full. 

For more information about we can help you get the right security in place for your project, please contact Nexus Law Group on construction@nexuslawyers.com.au