Parent Company Guarantee

Parent Company Guarantee

This parent company guarantee is for use when a company entering into a contract is required by the client to provide a guarantee of performance from its parent company.

It is very common in the UK construction industry for a client/employer to require a parent company guarantee, especially where the company entering into the contract has limited assets but is part of a larger group. This requirement is usually included as a term in the contract between the employer and the contractor. Our form of guarantee is fairly balanced but, compared with some guarantees requested by employers, its terms are quite constrained and do not impose on the guarantor any undue obligations.

You can use this document if you are a company acting as guarantor for a subsidiary’s contracts, and want clarity on the terms of your guarantee agreement.

This document has 9 clauses over 3 pages, plus explanatory notes and a cover page. It is a fully editable MS Word file.

If you choose to add legal support to your purchase you will need to send us some information, and note the following conditions before purchasing:

 

 

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