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ARTICLE · 04 SEPTEMBER 2026

Not So Fast: When Can A Contractor Prevent A Performance Bond Call?

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The Technology and Construction Court's recent decision in TTSJV v Bapco Refining demonstrates the significant challenges contractors face when attempting to prevent employers from calling on-demand performance bonds. This case, arising from a US$4.2 billion oil refinery upgrade project in Bahrain, explores the legal boundaries of bond calls following disputes over substantial completion and delay claims stemming from a major hydrogen leak explosion.

United KingdomReal Estate and Construction
Sarah Steed
Sarah Steed
Steven James
Steven James

Performance bonds act as an employer’s safety net. Once a call is made on an on-demand bond, the money usually flows. Contractors have long known that stopping a call before it happens is difficult. The Technology and Construction Court’s (TCC) recent decision in TTSJV v Bapco Refining is a reminder of just how difficult it is.

The background

Bapco employed TTSJV (a contractor consortium) to work on a US$4.2 billion oil refinery upgrade project in Bahrain. The contractor maintained that the works were substantially completed and argued that delays had been caused by matters for which it was entitled to extensions of time (particularly the consequences of a major hydrogen leak explosion at the refinery in 2025, for which it claimed that Bapco was responsible).

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