In my opinion, the actions of thje employer to encash the performance bonds and other guarantees without defalut of the contractor, is in the nature of breach of principle of good faith & prudent business ethics. The suretly can approach the Courts and can get necessary relief.

When any such demand is raised on the surety, first of all they have to file a complaint against the employer on account of breach of good faith which was the basis of issuing the bond. In the current crisis situation, this may be the prudent solution instead of paying upfront when demanded by employers.

Remember the basic principle of lift “tit for tat” and “all is fair in love & war”.

Hope the employers will appreciate their business ethics and do not resort to unethical practice. It is not good for UAE when we all participants of the Construction industry are working to find sotution on how to come back to normal situation.

With ebst regards

Kishan Solanki
Conmtracts Manager
Dubai, UAE
Mob 00971 50 7396163