Two projects with the failed builder have different bank guarantees
Map separate project bank-guarantee instruments to the specific contract and claim after a builder failure, avoiding evidence or security references from another job.
Corporate Recovery Partners
01 / 06
The same builder does not mean the same security
The builder has failed and you receive information about a call on a bank guarantee. Your company supplied security on more than one project. Before preparing the factual pack, match the guarantee reference to the relevant contract and job. Send the papers to a lawyer promptly. An accurate project map helps avoid answering the claim with completion records that belong to another site.
Record the issuer, reference, named beneficiary, amount and project description from each document. Keep amendments with the instrument they concern. Do not merge them under the builder's trading name or assume the newest document replaces every earlier guarantee. If the references or scope are unclear, ask the issuer and lawyer to establish the actual position.
CommBank's guarantee guidance identifies purpose, amount and beneficiary details among the information used for its product. Check your own issuer's records and process rather than treating that product guidance as a universal rule. The purpose is to identify the instrument accurately; it does not decide whether the beneficiary is entitled to call it under the actual arrangements.
Imagine a contractor with guarantees for a warehouse and an office fit-out. The accounts team sends the office completion certificate when the call concerns the warehouse reference. The document may be accurate but does not answer the relevant project question. A simple instrument-to-contract cross-reference can expose the mismatch before urgent advice proceeds on the wrong material.
Identify the notices, alleged breaches and completion information relevant to the specified instrument. Flag any claim that appears to cross projects for legal assessment. Do not assume funds under one guarantee can be used for another or that a dispute on one job automatically prevents a call on the other. The wording and circumstances require specific advice.
Confirm the reference in every urgent communication
Use the correct instrument and project identifiers when speaking with the bank, lawyer or practitioner. Retain their responses with that file and track any unresolved mismatch. The commercial objective is a reliable factual foundation for urgent advice. Combining several securities into one general story about the failed builder can hide the very document and project the adviser needs to assess.
