The Authors
About the Author
John is a professional arbitrator, adjudicator and mediator based in Auckland, New Zealand. He has been appointed in more than 1,160 building, construction and infrastructure disputes over the past 26 years relating to residential, commercial and industrial construction projects, power stations, gas fields, manufacturing and processing plants, stadiums, hotels, land subdivisions, roading, railways, wharves, marinas, drainage, wastewater treatment plants, recycling plants, mining, services, and utilities, involving domestic and internationally based parties, complex technical and legal matters, and sums in dispute exceeding $100M.
John is the founder and a Director of the Building Disputes Tribunal (BDT), the nationwide, specialist dispute resolution service provider for the building and construction industry in New Zealand and an Authorised Nominating Authority under the Construction Contracts Act 2002. He is also the founder and a Director of the New Zealand Dispute Resolution Centre (NZDRC); the New Zealand International Arbitration Centre (NZIAC); the New Zealand Family Dispute Resolution Centre (FDR Centre); the BuildSafe Security of Payment Scheme - BuildSafe®. He is a Principal Arbitrator, Adjudicator, Mediator, Expert Determiner and Early Neutral Evaluator for BDT, NZDRC and NZIAC.
To request the appointment of John Green for adjudication, arbitration or mediation please contact the Registrar:
www.buildingdisputestribunal.co.nz
John Green
Spot the difference: guarantee or on-demand bond?
-CONT...
27 BuildLaw | Dec 2017
www.buildingdisputestribunal.co.nz
Conclusions and implications
This decision highlights the importance of careful drafting when dealing with guarantees. Reliance on pro forma documents and the need for specialist language can sometimes result in guarantees which are a combination of different drafting, without any clear indication as to whether an ordinary “see to it” guarantee or an on-demand instrument was intended. Clarity in this regard is particularly important when dealing with non-financial institutions, given the presumption against on-demand instruments which apply in such circumstances.
References:
Autoridad Del Canal De Panamá v Sacyr, S.A. [2017] EWHC [http://www.bailii.org/ew/cases/EWHC/Comm/2017/2228.html] 2228 (Comm)
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