Bonds / PCG Flashcards
1
Q
Whats the different between Perfromance Bond and PCG?
A
bonds issued by surety or bank
PCG issue by a parent company
Bond expires after defects period or PC
PCG expires after 12 years
PCG - Free
Bond - expensive 10% of contract sum
2
Q
Would you ever have both Bond and PCG?
A
Yes - they do different things
3
Q
What is the risk with a PCG?
A
if company goes insolvency there is a risk the parent company does to
4
Q
What are the advantages of an on demand bond?
A
The bank pays out when notice is given from the beneficiary
breech of contract does not have to be proven
5
Q
Do you require an bond for all advance / offsite materials payments?
A
Not necessarily
Large payments they should be in place (over £1m)
