“I have a bank guarantee here issued by Cam Bank. I know the developer pays an amount of money for it to be issued so its the banks money at risk not the builder.”
So we at least agree that in the event of the BG being claimed upon, it is the Bank suffering the biggest loss and not the developer.
“Not sure how banks can wriggle out of them but maybe other banks use different wording.”
That is something you can guarantee that they will pay out only is every clause and sub-clause has been adhered to.
But is your BG for a specific time, or the duration of the project?
Assuming a specific time of say 12 months, the bank does not have to agree to extending or issuing a new BG, as they have honoured their side in underwriting for the 12 months.
I assume then is the worrying time, do you go along with the developer to safeguard your outlay to date, or play safe and take a hit.