Hi
Is there a way to remove the requirement for a performance bond post contract? The contract has X13 included but it is not longer required due to the benefit being outweighed by cost of providing one.
I was wondering what the contractual mechanism was if there was one that would satisfy any subsequent client audit.
Regards
From a legal perspective you should probably execute a deed of variation to the contract; but a simpler way would be for the Project Manager to issue an instruction stating that the Bond is not required and then the Contract Sum to be adjusted to allow for that. if you have excluded from the Contract Sum already then this would be a nil adjustment.
The best way to do this is to agree a contract amendment / variation using the procedure at clause 12.3. The amendment would need to remove references to X13 from Contract Data part one and be agreed, confirmed in writing and signed by the Parties i.e. Employer and Contractor.