The Court granted an interlocutory injunction restraining the principal from calling on unconditional bonds, finding a strong prima facie case that clause 39.6 of AS 4000-1997 (as amended) does not permit the superintendent to issue interim certifications before the work taken out of the contractor's hands has been completed. The Court also held that clause 5.2 (recourse to security) was not, on its proper construction, intended to allocate risk pending final determination of the parties' rights, particularly where the contract preserved the contractor's right to seek injunctive relief under clause 42.4. The question of whether the contractor had validly terminated the contract was not resolved on the evidence before the Court.
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