(e) Any takeover agreement must require the guarantee of the contract and the government to bear the costs and expenses of the guarantee up to the balance of the contract price not paid on the date of the delay, subject to the following conditions: 3. If the proceeds of the contract have been awarded to a financial institution, the guarantee cannot be paid on unpaid income , unless the assignee gives his consent in writing. c) The contracting entity should authorize the performance of the guarantee contract, unless the contract agent believes that the persons or companies proposed by the guarantee to complete the work are not competent and qualified or that the proposal is not in the best interests of the government. The warranty chose the option in point 4.2, highlighted and bold. The guarantee wanted to conclude the construction contract and entered into a bonding agreement with the association, i.e. an agreement under which the guarantee supports the completion of the contractual contract contract that has expired or has expired. The acquisition agreement was based on the fact that the licensed contractor continued to work as a contracter for the contract. 4. The contractor cannot pay the guarantee in the tooth to the amount he has spent on the completion of the work and the execution of his debts arising from the defaulting holder`s obligation to pay. Payments to the guarantee for the repayment of their debts under the defaulting contractor`s payment loan can only be made on the grant of – 2. b) Since the guarantee is liable for damages resulting from the contractor`s delay, the guarantee has certain rights and interest in the completion of contract work and the application of unpaid credits.

Therefore, the contractor must carefully consider the warranty proposals for the completion of the contract. The contract agent must act on the basis of the government`s interest, including the potential impact on the government`s rights against the guarantee. One thing that needs to be taken into account after reading the outcome of the case is that there is nothing that prevents the bondholder from changing a standard form of commitment or my preference by creating his own form of handwritten performance binding.