Bid bond meaning

Banking & Finance—February 2026 case round-up CR Construction (UK) Co Ltd v Barclays Bank Plc (Northern Gateway (FEC) No 7 Ltd, intervening) [2026] EWHC 202 (TCC) Performance bond—injunction to restrain payment This matter concerned a contractor’s bid for an interim injunction preventing a bank from honouring the employer’s call under a performance bond that secured the contractor’s payment liabilities under a construction contract. The employer brought the contract to an end for alleged breaches by the contractor. The contractor disputed those breaches, treated the termination as repudiatory, and accepted that repudiation. The High Court refused the application, restating that an injunction restraining a paying bank will only be granted where there is clear evidence of fraud, which was not advanced in this case. The court also rejected the argument that the employer’s repudiatory breach discharged the bond, finding that the bond’s standard savings clause was sufficiently broad to encompass repudiatory termination, so the bond remained enforceable…

The Financial Conduct Authority (FCA) intended for the UK’s proposed consolidated tape for bonds to launch in early 2026, having awarded the inaugural five-year mandate to operate the platform to London-based Etrading Software. That timetable is now in doubt after Ediphy, a UK competitor that also bid for the mandate, filed a legal challenge to the FCA’s selection process. This has triggered a suspension order preventing the regulator from finalising its agreement with Etrading Software at present. The FCA may seek to have that suspension lifted once full particulars of the challenge are lodged with the High Court in due course, if appropriate. Ediphy’s deadline to provide additional details is 24 October 2025, MLex has learned ...

In this issue: Lending Security Acquisition finance Sustainable finance Debt capital markets Derivatives Restructuring & Insolvency Regulation for banking lawyers Claims and remedies Daily and weekly news alerts New and updated content Useful information Lending CLLS Financial Law Committee issues guidance on legal assignments under section 136 The City of London Law Society’s (CLLS) Financial Law Committee has issued an in‑depth paper on how to effect legal assignments under section 136 of the Law of Property Act 1925. Released on 30 January 2025, the guidance concentrates on execution formalities for both English and overseas corporates, and for English limited liability partnerships. Its purpose is to assist practitioners with practical direction and certainty when handling such transfers, and to support adherence to contemporary property law obligations. See: LNB News 11/02/2025 3. Source: Financial Law Committee note on the execution of a legal assignment under Section 136. R (on the application of...

FORTHCOMING CHANGE relating to the modernisation of stamp taxes on shares framework: From 2027, stamp duty and SDRT are set to be replaced by a single, self-assessed levy on securities—the securities transfer charge (STC)—which will be paid (and reported) through a new online portal. In general terms, the STC’s core features will mirror the proposals for that regime outlined in the 2023 consultation. Finance Bill 2026 (FB 2026) grants, with effect from Royal Assent, a power for secondary legislation to be made so that taxpayers can try out the new digital service by self-assessing their stamp taxes on securities obligations and by reporting transactions electronically via that service. For further details on the modernisation of stamp taxes on securities, see: News Analyses: Budget 2025—Tax analysis—Stamp and transfer taxes Tax update spring 2025—Stamp taxes on shares modernisation Tax update spring 2025—Tax analysis—Stamp and transfer taxes TAMD 2023—Stamp taxes on shares modernisation TAMD 2023—consultation—stamp taxes on shares Tax Administration and Maintenance Day—27 April...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Back end Contentious, disputes‑focussed legal services, for instance representing a party in litigation... Benchmarking A method for assessing whether service quality and pricing align with prevailing market levels (where they exist) without running a formal competition. It can also be applied to track improvement or evaluate performance... Best value The obligation on every local authority to arrange for continual improvement in how its functions are carried out, having regard to economy, efficiency and effectiveness (Local Government Act 1999, s 3). This entails considering costs, securing value for money, and ensuring services reflect community needs and the authority’s priorities. See Practice Note: Best value in public procurement... Bid bond Also called a tender bond (or guarantee). Used within the tender process to secure performance by bidding contractors, most commonly on international projects...

This Practice Note This Practice Note introduces typical forms of performance bond used in international supply contracts, including, among others, the following: pre-qualification bonds tender (or bid) bonds advance payment bonds (APB) maintenance bonds completion bonds retention bonds customs bonds facility bonds Performance bonds are widely deployed on numerous projects to give the customer security against a supplier’s failure to perform. The Practice Note also examines, in practice, how trade sanctions and embargoes may influence the discharge of contractual duties in international contracts for which a bond might be required. In particular, it does not cover letters of credit, which are most frequently used in international supply contracts to provide a safe method of payment under the sales contract between buyer and seller, offering protection to the supplier against the buyer’s creditworthiness. For guidance on letters of credit, see: Letters of credit—overview and Practice Note: Characteristics of commercial letters of credit. Nor does this Practice Note...