The applicant owned and operated a resort and spa and entered into a contract with the respondent to carry out building works for the refurbishment and upgrade of the resort in consideration of payment of a lump sum. Practical completion under contract had been reached and a bank guarantee that the respondent provided pursuant to clause 5 of the general conditions had expired. The applicant requested the respondent provide an unconditional bank guarantee in substitution for the expired bank guarantee. The respondent disputed that there was an obligation to do so, as it had fully performed its obligation to provide bank guarantees under the contract.
The applicant therefore sought a declaration that upon the proper construction of the contract the respondent was obliged to provide security in the form of an unconditional bank guarantee as security for due and proper performance of the contract by the respondent until 14 days after the issue of a final certificate pursuant to clause 42.8 of the contract. The applicant also sought an order for specific performance in relation to the provision of security.
Sophie Gibson (with P J Dunning QC) appeared on behalf of the respondent, instructed by Fielding Robinson Lawyers.
The judgment is available here.