This is based on an NEC 4 ECC contract with main option A.
The Contractor has not provided the collateral warranties and it were made an obligation under the Z clause to provide this (the collateral warranty included provisions for the client to step-in as the contractor if the contractor becomes insolvent). However, the contractor provided a parent company guarantee when there was no option clause in place for this and the contractor wanted to provide this as an alternative.
I was wondering if the parent company guarantee could still be accepted by us (but the Contractor is made aware that this cannot be used as an alternative to the collateral warranties but we are happy to accept this anyway if he is ok with it) and notifying the default to still get the collateral warranties? This would mean if the contractor becomes insolvent, the parent company can step in, also, if the parent company became insolvent too, then we could exercise the step in right under the collateral warranties?
I wanted to know if this is possible in this scenario.