Section Ix. Annex To The Particular Conditions - Contract Forms Page 9
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Advance Payment Security
Demand Guarantee
________________________________
[Bank’s Name, and Address of Issuing Branch or Office]
Beneficiary: ___________________
[Name and Address of Employer]
Date: ________________
ADVANCE PAYMENT 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, an advance
payment in the sum ___________
(
)
is to be
[amount in figures]
[amount in words]
made against an advance payment 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 the Contractor is in breach of its
obligation under the Contract because the Contractor used the advance payment for purposes
other than the costs of mobilization in respect of the Works.
It is a condition for any claim and payment under this guarantee to be made that the advance
payment referred to above must have been received by the Contractor on its account number
___________ at _________________
[name and address of Bank].
The maximum amount of this guarantee shall be progressively reduced by the amount of the
advance payment repaid by the Contractor as indicated in copies of interim statements or
payment certificates which shall be presented to us. This guarantee shall expire, at the latest,
upon our receipt of a copy of the interim payment certificate indicating that eighty (80)
percent of the Contract Price has been certified for payment, or on the ___ day of _____,
1
The Guarantor shall insert an amount representing the amount of the advance payment and denominated
either in the currency(ies) of the advance payment as specified in the Contract, or in a freely convertible
currency acceptable to the Employer.
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