One of the most frequent problems in international construction projects (and more generally in international commerce) is represented by the issue of bonds or guarantees that the Employer requests to secure the performance of the contract. The purpose of said bonds (such as the Performance Bond) is to guarantee the Employer that he will recover any loss or damage that it might suffer as a consequence of the breach of the Contractor. 

The Performance Bond is an on-demand guarantee (or rather, under Italian Law, it is an ‘autonomous’ and at first demand' guarantee) by virtue of which the beneficiary (as buyer or owner) can obtain a certain amount of money on the basis of a simple request submitted to the guarantor declaring that the other party has breached some of its contractual obligations.

No need for the beneficiary to prove the actual default.

Mora & Associati, with a team composed of Giuseppe Broccoli and Elisabetta Ventrella, won another Italian legal proceeding for the calling of a USD 6.5 Million Performance Bond issued by an Italian Bank in favor of a foreign Owner in connection with the construction of a mine plant in the Republic of Zambia.

Mora & Associati is pleased to announce that the Partner Giuseppe Broccoli has been nominated as Thought Leader by Who's Who Legal in the 2019 Construction Directory.

This is a great recognition for our Partner and for the work done by our Firm in several International Construction Projects.

Also this year BdaLaw has contributed to 'Doing Business 2019: Training for Reform' the annual Report of the World Bank.

Giuseppe Broccoli and Elisabetta Ventrella have dealt with Italian regulations on starting a business, dealing with construction permits and registering property.

The Performance Bond

The Contractor signed with the Supplier a contract for the supply of certain major components in respect of the revamping of a power station in Middle East. The contract provided the issue of a Performance Bond to secure the proper and timely performance of the Supplier's obligations.