Section Ix. Annex To The Particular Conditions - Contract Forms Page 5
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Performance Security
Option 1: (Demand Guarantee)
________________________________
[Bank’s Name, and Address of Issuing Branch or Office]
Beneficiary: ___________________
[Name and Address of Employer]
Date: ________________
PERFORMANCE 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, a performance
guarantee is required.
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
(
)
,
such sum being payable in the types and
[amount in figures]
[amount in words]
proportions of currencies in which the Contract Price is payable, upon receipt by us of your
first demand in writing accompanied by a written statement stating that the Contractor is in
breach of its obligation(s) under the Contract, without your needing to prove or to show
grounds for your demand or the sum specified therein.
2
This guarantee shall expire, no later than the …. Day of ……, 2…
, and any demand for
payment under it must be received by us at this office on or before that date.
1
The Guarantor shall insert an amount representing the percentage of the Contract Price specified in the
Contract and denominated either in the currency(cies) of the Contract or a freely convertible currency
acceptable to the Employer.
2
Insert the date twenty-eight days after the expected completion date. The Employer should note that in the
event of an extension of the time for completion of the Contract, the Employer would need to request an
extension of this guarantee from the Guarantor. Such request must be in writing and must be made prior to
the expiration date established in the guarantee. In preparing this guarantee, the Employer might consider
adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor agrees to a
one-time extension of this guarantee for a period not to exceed [six months][one year], in response to the
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