Calling Performance Bonds How Developers Can Avoid and Overcome Injunctions

This MWKA Online Talk was delivered on 15 April 2026 by Mr Michael Koh and moderated by Ms Carolyn Ng. Please visit https://mahwengkwai.com/talks-signup/ to register for upcoming talks. Overview: Performance bonds are a critical safeguard for developers in construction projects, providing a readily available financial remedy in the event of contractor default. In practice, however, calls on performance bonds are often met with urgent injunction applications by contractors seeking to restrain payment. For developers, the key challenge is not just having the right to call on the bond, but doing so in a manner that withstands legal scrutiny and avoids costly delays. This session is designed to equip developers and in-house counsel with practical, strategy-driven insights on exercising their rights effectively. We will examine how Malaysian courts approach injunction applications, and how developers can minimise risk while maintaining commercial control. Talk points: ● Understanding injunction risk when calling on performance bonds ● Legal tests (fraud & unconscionability) ● Case studies: When developers successfully resisted injunctions ● Case studies: Where developers were restrained – lessons learned Speaker: Michael Koh (Partner) Moderator: Carolyn Ng (Senior Associate)