PCGs Flashcards
1
Q
What is a parent company guarantee?
A
A PCG is a form of security that may be required by clients to protect them in the event of default (breach) on a contract by a contractor that is controlled by a parent company (or holding company). Typically such default might be caused by the insolvency of a contractor.
2
Q
In what circumstances might a PCG be required?
A
A PCG might be useful when a small contractor you are appointing for a project is part of a larger group of companies. This is a promise by the parent company that they will remedy any breach in contract by the small contractor
E.g. Overbury and Morgan Sindall
