Performance security meaning

STOP PRESS: From 24 February 2025, the principal provisions of the Procurement Act 2023 (PA 2023) take effect. Procurements initiated on or after that date must proceed under PA 2023, while those started under the former regime—the Public Contracts Regulations 2015 (PCR 2015), the Utilities Contracts Regulations 2016, the Concession Regulations 2016, and the Defence and Security Public Contracts Regulations 2011—must continue to be conducted and administered in accordance with that legislation. See Practice Note: Introduction to the Procurement Act 2023—PA 2023. PCR 2015 as assimilated law PCR 2015 are EU-derived domestic legislation and therefore constitute assimilated law under sections 2 and 6 of the European Union (Withdrawal) Act 2018. For practical guidance on the status and interpretation of assimilated law, see Practice Note: Assimilated law...

Introduction When contracting in a business-to-business setting, aim to secure as much contractual protection as your negotiating position allows. This checklist explains how key clauses can control risk and safeguard businesses-whether you are a supplier or a customer-and how to negotiate them to extract the greatest benefit... Key provisions General comments Payment Payment security Confirm the financial stability of the party you are buying from or selling to by carrying out a credit check. Decide if a payment safeguard is needed, for example: a parent company guarantee a letter of credit or a bank performance bond Customer Will the customer be able to honour its payment commitments? Consider obtaining credit insurance, and continue to run credit checks throughout the life of the contract to manage overall exposure to financial risk... Supplier Is the supplier financially capable of meeting your supply demands... Payment terms...

Power purchase agreements (PPAs), and the consequent checklist considerations, will differ according to several elements, such as the generation technology adopted and, notably, whether any feedstock or fuel is necessary to run the finished plant. The nature of the deal—be it a short-term trading arrangement or a longer-term contract required to support financing—will likewise be influential. This Checklist proceeds on the basis of a ‘conventional’ PPA with a licensed supplier as the counterparty. Other forms exist, including corporate PPAs where the buyer is an end user, potentially linked to the plant by a private wire. For additional detail on corporate PPAs, see Practice Note: Corporate Power Purchase Agreements—an introduction to structuring power purchase arrangements between large energy users and remotely located generators. What is/check the duration of the agreement? Where a PPA is needed to underpin external financing for a new generating asset, the PPA term should, as far as practicable, ideally align with the tenor of any loans advanced to fund the scheme and the associated project...

In this issue: Air emissions and climate change Contamination and pollution Energy efficiency and buildings Energy for environmental lawyers Environmental information Environmental taxes, reliefs and incentives ESG and sustainability Hazardous substances and chemicals Nature, biodiversity and habitat conservation Waste Water, flooding and drainage Daily and weekly news alerts New and updated content Air emissions and climate change Greenhouse Gas Removals (GGR)-UK government publishes Business Model documentation On 27 August 2025, the Department for Energy Security and Net Zero (DESNZ) released a suite of papers on its proposed Greenhouse Gas Removals (GGR) Business Model and accompanying policy. The Lexis+ Energy team, working with Navraj Singh Ghaleigh, Senior Lecturer in Climate Law at the University of Edinburgh Law School, set out the context for the GGR Business Model; its relationship with the Power BECCS Business Model; the technologies the GGR framework intends to encompass; its legal footing and principal features; and how...

In this issue: Key developments and materials Electricity and gas market regulation and licensing Networks and network connections Conventional power, waste to energy, biomass, and CHP projects Nuclear energy Air emissions, efficiency, and climate change International energy Daily and weekly news alerts New and updated content Dates for your diary Trackers Key developments and materials Friends of the Earth has won a pivotal High Court judgment against the government, with the court ruling that the climate strategy advanced by the Secretary of State for Energy Security and Net Zero is unlawful. The court determined that adopting the Carbon Budget Delivery Plan contravened the Climate Change Act 2008. See: LNB News 03/05/2024 70. Electricity and gas market regulation and licensing Ofgem has released its conclusions on the consultation regarding updates to the licence fee cost recovery principles (LFCRP) and issued the LFCRP for May 2024. After reviewing consultees’ submissions, Ofgem confirmed it...

In this issue Electricity and gas market regulation and licensing Renewable energy Nuclear energy Air emissions, efficiency, and climate change International energy LexTalk®Energy: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Electricity and gas market regulation and licensing Ofgem has confirmed changes to the Regulatory Financial Performance Reporting (RFPR) template and guidance for RIIO‑2, intended to sharpen and clarify what network licensees must report. The revisions apply from 28 June 2024 and follow Ofgem’s earlier notice proposing amendments to the RFPR template and guidance for RIIO‑2. See: LNB News 01/07/2024 9. Electricity Code Modifications: National Grid ESO’s Modification Tracker now brings together all live changes to the Connection and Use of System Code (CUSC), the Grid Code (GD), the System Owner -Transmission Owner Code (STC) and the Security and Quality Supply Standard (SQSS). The tracker outlines each proposal’s purpose, the stakeholders impacted, Panel views...

STOP PRESS: On 19 June 2025, the Data (Use and Access) Bill secured Royal Assent, transforming into the Data (Use and Access) Act 2025 (DUAA 2025) and taking partial effect on that same date. Provisions of DUAA 2025 dealing with issues such as handling data subject access requests, and granting the power to make further regulations, commenced immediately on 19 June 2025. Other elements, relating to notices issued by the Information Commissioner and certain facets of law enforcement processing, began to apply on 19 August 2025 (being two months from the date of Royal Assent). The bulk of DUAA 2025’s measures will only commence once additional regulations, by way of statutory instruments, are made and brought into force. Parts 5 and 6 of DUAA 2025 operate to revise and update areas of UK data protection and ePrivacy law within the UK, including the United Kingdom General Data Protection Regulation, Assimilated Regulation (EU) 2016/679 (UK GDPR), the Data Protection Act 2018, and the Privacy and Electronic Communications (EC Directive) Regulations...

As of 31 January 2020, the UK left the EU and the EEA. This Practice Note introduces: the General Data Protection Regulation, Regulation (EU) 2016/679 (EU GDPR) framework (which applied within UK law up to the end of the Brexit implementation period—11 pm UK time on 31 December 2020—and continues to operate across the EEA; therefore, any references in this Practice Note to EEA or EU states should be read as also covering the UK until that period concluded) the United Kingdom General Data Protection Regulation, Retained Regulation (EU) 2016/679 (UK GDPR) framework (which applies under UK law from the end of the Brexit implementation period) Where there is no need to draw a distinction, this Practice Note refers to both as ‘GDPR’ for ease. When looking at the routine processing of personal data, the UK GDPR and the Data Protection Act 2018 (DPA 2018) should be consulted together, as both sets of provisions have direct effect. Practitioners will generally...

A glossary of frequently used terms and phrases in Scottish Private Client law, with the closest England and Wales equivalents (where applicable) and links to helpful websites Ab intestato Meaning From someone who dies without a will; describes property taken under the laws of intestate succession. Nearest English equivalent None Action of specific implement Meaning A court action seeking an order compelling a party to carry out a particular act. In Scotland there is no division between equitable and legal remedies, unlike England and Wales. Nearest English equivalent Specific performance (an equitable remedy for breach of contract that can be ordered alongside, or in place of, damages) Advance notice Meaning An entry in the relevant property register that protects the grantee of a deed intended for registration in the Land Register of Scotland. The protected period of 35 days begins on the day after registration....

This Agreement, dated [ insert date ] (the Commencement Date), is hereby entered into by the following, each as identified below: Parties 1 [ insert supplier name ], a company duly incorporated in England and Wales under number [ insert company number ], whose registered office is at [ insert registered office ] ( Supplier ); and 2 [ insert customer name ], a company incorporated in England and Wales under number [ insert company number ], whose registered office is at [ insert registered office ] ( Customer ). Each of the Supplier and the Customer constitutes a party, and together the Supplier and the Customer constitute parties to this Agreement. Background (A) The Supplier delivers website design and development services. (B) The parties agree that the Supplier will create a website [ and [ insert any other services that it has been agreed that the Supplier will provide ] ] for the Customer, in accordance with the terms of this Agreement...

THAT the directors be authorised Directors are authorised to [ advance by way of loan OR provide ] up to £50,000, when aggregated with all other Relevant Transactions and Arrangements, to [ insert name of the director ] as a director of the Company. The sum of £[ insert amount of funds, not to exceed £50,000 when aggregated with other Relevant Transaction and Arrangements ] will fund costs incurred, or to be incurred, by them: for the purposes of the Company; or to enable proper performance of their duties as an officer of the Company. In this resolution, Relevant Transactions and Arrangements means any Company loan or quasi‑loan to a director of the Company or its holding company, any such loan or quasi‑loan to a person connected with that director, any credit transaction for the benefit of that director or a connected person where the Company acts as creditor, and any guarantee or security given by any person in connection with any...

This Agreement is entered into on [ date ]. Parties [ Customer ], a company incorporated in [ England ] with registered number [ company number ], whose registered office is at [ address ] (Customer); and [ Supplier ], a company incorporated in [ England ] with registered number [ company number ], whose registered office is at [ address ] (Supplier). Each of the Customer and the Supplier is a party; together, the Supplier and the Customer are the parties. BACKGROUND The Customer intends to delegate to the Supplier the delivery and oversight of its [ describe function ] services. At present, the Customer’s needs are met [ internally OR by an associated company ] [ by insert name of existing supplier ]. The Supplier has expertise in designing, developing and deploying [ describe function ] services and has accepted responsibility for delivering and managing the relevant elements of the Customer’s functions. The...

Retention Retention describes the portion of interim payments the employer withholds as security for the contractor’s future performance of its duties and to encourage the contractor to discharge those duties in full and properly. For further details, consult the Practice Note: Retention of payment in construction contracts. When retention is to be released to the contractor depends on the particular contract terms for the project. Typically, half of the retained sum is paid out at practical completion, with the balance thereafter following completion of any remedial works for defects reported within the defects liability period. Consequently, if these milestones are reached before the final certificate is issued, the contractor may have a right to seek payment of some or all of the retention...

An initial consideration at the outset is to ask why B wants a legal charge. Is it intended to ensure the works are completed? To enable B to do the works in default? Or is it about finance, ie does B seek security so that, if A fails to do the work, B will obtain monies (eg by selling A’s land) to cover the cost of the works required accordingly?...

Service occupancy In England, an employee who lives in property owned by their employer to carry out their duties, and who has exclusive possession, occupies either as a tenant or as a licensee under a service occupancy (also known as tied accommodation). The distinction is significant because, under a service occupancy, the right to terminate arises when the employment ends, whereas a tenancy may benefit from security of tenure. A service occupancy is a form of licence that arises where: it is an express term of the employee’s contract of employment that they reside in particular accommodation from which they can better perform their duties (Glasgow Corporation v Johnstone); or if there is no such express term, one can be implied on the basis that it is essential, rather than merely conducive, that the employee lives in specified accommodation for the better performance of their duties...