Security Bank Guarantees - Client Briefing

This Client Briefing has been developed for Consult Australia members to provide to their clients, to assist in knowledge sharing between the parties on undertakings (bank guarantees and security) in agreements. Including undertakings in consultancy agreements fails to recognise the roles of each party, particularly the difference between consultants and contractors. While a bank guarantee/security might be a suitable requirement for contractors, it is not an appropriate requirement for consultants. Undertakings should not be used as a tool to mitigate risk generally.