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ARTICLE · 05 MAY 2026

Legal Developments In Construction Law: April 2026

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The recent High Court decision in CR Construction (UK) Company Limited v Barclays Bank PLC and Northern Gateway (FEC) No.7 Limited (as Intervenor) is a useful reminder of the very limited circumstances in which the Court will allow injunctive relief to prevent a bank paying out a performance bond.

United KingdomReal Estate and Construction
Brad Fearn
Brad Fearn
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1. Court denies injunction preventing payment of performance bond

The recent High Court decision in CR Construction (UK) Company Limited v Barclays Bank PLC and Northern Gateway (FEC) No.7 Limited (as Intervenor) is a useful reminder of the very limited circumstances in which the Court will allow injunctive relief to prevent a bank paying out a performance bond.

The case related to a large residential and commercial mixed use development in Manchester (the “Development”). Northern Gateway (FEC) No.7 Limited (“NG7”) as Employer and CR Construction (UK) Limited (“CRC”) as Contractor entered into an amended JCT Design & Build Contract 2016 (“Contract”) for the Development for a contract sum of circa £117 million. The Contract required CRC to provide an on demand performance bond in the amount of £11,702,897.30 being 10% of the contract sum.

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