Jurisdiction(s):
United Kingdom

England and Wales TCC: Unclear Performance Bond Assignment Defeats Summary Judgment; Wilson & Sharp on JCT Post-termination Accounting Reaffirmed (Crestline v Euroins)

Published on: 08 April 2026

Published by a LexisNexis Construction expert

Legal News

Article summary

Crestline Direct Finance LP v Insurance Company Euroins AD [2026] EWHC 423 (TCC) What are the practical implications of the case?

This decision highlights two pragmatic takeaways for lawyers and construction practitioners. First, it underscores the need to craft, from day one, a coherent assignment plan and to implement and record it correctly.

Employers should see that building contracts and security instruments (including performance bonds) confer adequate rights of assignment, state any cap on the number of assignments, and name likely assignees (such as funders or prospective buyers/tenants).
Each assignment must be executed in the agreed form and notified to all relevant stakeholders (for instance, the contractor or the surety).

Adhering to these steps will make it simpler for assignees to call on bonds and will avert the sort of ‘fatal’ uncertainty encountered in this case. Secondly, the court reaffirmed the principle in Wilson & Sharp. That is advantageous to employers in the present economic climate, as no additional monies (if any) fall due to the original contractor until a replacement contractor has completed the works...

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