“The ones that we get for our clients from Cam Bank are always property specific and part of the guarantee is that the property must be delivered on its contracted date.”
So is the BG open ended and no long stop date?
Can it be that the completion date is say for 3 years and the BG is also valid for 3 years, without renewal and without charge.
“Every property completion date we give is always long”
So, how long is long,1,2,3,4,5…years?
“I suspect other banks would use other wording and start to wriggle”
Should think that the BGs from whichever Bank are similarly worded, many clauses and sub-clause and weighted in favour of the bank. Before you say oh no, it is their business to make money, not to pay out to whoever asks.
“particuarly if they are not sure of the developers ability to complete the project”
Don’t think this would vary the wording too much, but would affect the premium the developer has to pay.
OK, you say “Every property completion date we give is always long”.
But however long, let’s assume longer than 12 months, so, assuming the time goes beyond 12 month, the bank does not have to agree to extending or issuing a new BG?
Are you saying that if the development date is say 3 years, the original BG remains valid and at no extra charge?