Within our construction team, Capsticks regularly works on financial protection measures used to manage risk on projects, particularly in challenging market conditions. Increased insolvency risk and ongoing supply‑chain pressures have led to greater reliance on contractual security instruments. 

Vesting certificates, advance payment bonds and ABI guarantee bonds each play a distinct role in protecting employers’ financial positions. Understanding how these measures operate, when they are used and the issues that commonly arise is key to managing risk effectively on construction projects.

How Capsticks Can Help

Our construction team advises clients across public and private sector projects on the drafting and negotiation of vesting certificates and security instruments.

We can assist with reviewing and amending vesting certificates, advising on advance payment bond structures, negotiating amendments to ABI guarantee bonds, and ensuring consistency between bond provisions and the main contract.

If you have any queries around the issues discussed in this article, and the impact on your organisation, please speak to Catherine Kay, Anisa Mohammed,  Faizaan Ahmed or Dean Goulding.