Themes & Modules

Banks & Insurance

Read about:

• Bank Guarantees, Escrow Accounts, Letters of Credits, Corporate Guarantees
• Insurances and Insurance Claims
• Security, Surety and Bond based Instruments
• BG Invocation and Legal Remedies

Electronic BG and Insurance Bonds instead of BG – Emerging Trends of Digital Transformation

Theme: Business Framework; Module: Banks & Insurance

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 08 Jan 2026

Digital transformation is changing some of the bottlenecks in India’s Government Construction Contracts by freeing up working capital.  New trends like Electronic Bank Guarantees (e‑BGs) remove physical handling and verification delays of BG.  Further, the new Surety Insurance Bonds act as an alternative to BG, and may not require margin money that is required in the traditional BG.  Several departments like NHAI and MoRTH are already moving towards mandatory E-BGs.  This Article explains how e‑BGs and Insurance Bonds function and how these changes are benefiting contractors in relation to working capital and project execution.

Click to Read More

Basics of Bank Guarantee (BG) in Construction Contracts

Theme: Business Framework; Module: Banks & Insurance

Author: Dr. Pradeep Reddy Sarvareddy

Published Date: 07 Jan 2026

Bank Guarantees (BGs) are a part & parcel of Government Construction Contracts.  Further, the risk of invocation (whether such invocation is justified or not) and even the threat of invocation, is a serious concern to Contractors as such a situation can result in serious financial consequences and cause a chain reaction of cash flow failures.  This article introduces the different types of Bank Guarantees commonly used in construction contracts, their basic legal differences, and the limited circumstances in which courts may intervene in cases of BG invocation.

Click to Read More