Section Ix. Annex To The Particular Conditions - Contract Forms Page 11
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Retention Money Security
Demand Guarantee
________________________________
[Bank’s Name, and Address of Issuing Branch or Office]
Beneficiary: ___________________
[Name and Address of Employer]
Date: ________________
RETENTION MONEY GUARANTEE No.:
_________________
We have been informed that ________________
(hereinafter called "the
[name of Contractor]
Contractor") has entered into Contract No. _____________
[reference number of the contract]
dated ____________ with you, for the execution of _____________________
[name of
(hereinafter called "the Contract").
contract and brief description of Works]
Furthermore, we understand that, according to the conditions of the Contract, when the
Taking-Over Certificate has been issued for the Works and the first half of the Retention
Money has been certified for payment, payment of
the second half of the Retention
[insert
Money or if the amount guaranteed under the Performance Guarantee when the Taking-
Over Certificate is issued is less than half of the Retention Money, the difference between
half of the Retention Money and the amount guaranteed under the Performance Security
is
]
to be made against a Retention Money guarantee.
At the request of the Contractor, we _______________
hereby irrevocably
[name of Bank]
undertake to pay you any sum or sums not exceeding in total an amount of ___________
1
(
)
upon receipt by us of your first demand in
[amount in figures]
[amount in words]
writing accompanied by a written statement stating that that the Contractor is in breach of its
obligation under the Contract because the Contractor has not remedied all the defects in the
Works as required during the Defects Liability Period.
It is a condition for any claim and payment under this guarantee to be made that the payment
of the second half of the Retention Money referred to above must have been received by the
1
The Guarantor shall insert an amount representing the amount of the second half of the Retention Money
or or if the amount guaranteed under the Performance Guarantee when the Taking-Over Certificate is
issued is less than half of the Retention Money, the difference between half of the Retention Money and the
amount guaranteed under the Performance Security and denominated either in the currency(ies) of the
second half of the Retention Money as specified in the Contract, or in a freely convertible currency
acceptable to the Employer.
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