Parent Company Guarantee
As Gaeilge: Ráthaíocht ón Máthairchuideachta
Also known as: PCG, Parent Guarantee
Last reviewed April 2026
A guarantee from the parent of a bidding company that it will stand behind the contract, often required where the bidder is a thinly capitalised subsidiary.
A PCG is a contractual undertaking from the bidder's parent company to perform the contract or pay damages if the subsidiary defaults. On Irish public works the GCCC standard PCG form is normally required where the bidder is a subsidiary of a larger group, alongside or instead of a performance bond. The contracting authority will check the parent's accounts to confirm covenant strength. PCGs are common on large IT, infrastructure and PPP contracts where subsidiary structures are typical.
Sources and legal basis
Primary legislation and official guidance. Always confirm the current text on the source before relying on it.
Related terms
Performance Bond
A guarantee from a surety (bank or insurer) that the contractor will complete the works, typically 12.5% of the contract sum on Irish public works.
PW-CF (Public Works Contract Form)
The standard Irish government construction contracts (PW-CF1–CF5) under the Capital Works Management Framework: fixed-price, non-negotiable.
Selection Criteria
Minimum requirements a supplier must meet to be considered: financial standing, technical capability, tax clearance.
Contracting Authority
A public body that buys goods, services, or works with public funds: departments, councils, the HSE, ETBs, etc.
Economic Operator
The EU procurement term for any supplier, contractor or service provider (an individual, firm, or consortium) that bids for or performs a public contract.
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