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Form of Performance Guarantee (Rev.4R-260314)

This document is a performance guarantee form for a construction project. It guarantees payment by the bank (guarantor) to the employer up to a specified amount if the contractor fails to perform under the contract. The guarantee is valid from a start date until the later of the defects liability period ending or the employer confirming the contractor has fulfilled its obligations. The guarantee cannot be affected by changes to the works or allowances made to the contractor, and is governed by the laws of the location of the project.

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491 views1 page

Form of Performance Guarantee (Rev.4R-260314)

This document is a performance guarantee form for a construction project. It guarantees payment by the bank (guarantor) to the employer up to a specified amount if the contractor fails to perform under the contract. The guarantee is valid from a start date until the later of the defects liability period ending or the employer confirming the contractor has fulfilled its obligations. The guarantee cannot be affected by changes to the works or allowances made to the contractor, and is governed by the laws of the location of the project.

Uploaded by

koshy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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…[insert Project name]…

…[insert Works Package]… Form of Performance Guarantee

FORM OF PERFORMANCE GUARANTEE

To : ……..[insert Employer company name ]……..*


…..…[insert address]……………….
………………………………………..

Dear Sirs,

Project: .............[insert Project name and location]..................


Subject: PEFORMANCE GUARANTEE NO. .................. FOR AED....................

Whereas …………[insert the Employer’s name]………* (the “Employer” or “you” or “your”) has
awarded …………[insert the Contractor’s name]………** (hereinafter called the “Contractor”) a
contract dated ………………… for the construction, completion, testing, commissioning and
maintenance of the …………..……[insert description of the Works; e.g. main works or enabling
works]………….………….*** and the remedying of any defects and/or omissions therein for the
value of AED………………... (U.A.E. Dirhams ……………………………..………………… only)
(the “Contract”).

By this Performance Guarantee (“Guarantee”), we …………[insert Bank’s name]


………………………**** (the “Guarantor” or “we” or “us”) whose address is ……..…………
[insert Bank’s address]…………………… guarantee to and are held firmly bound unto the
Employer in the sum of AED…………………….

We absolutely, irrevocably and unconditionally agree to pay the Employer an amount not
exceeding the sum of AED………………….. (U.A.E. Dirhams …………………..…..…………
only) upon receipt of the Employer’s first written demand without any reference to or
contestation on behalf of the Contractor provided the Employer’s demand is received by us
within the validity period of this Guarantee.

This Guarantee will be effective from …………[insert date]……….. and shall be valid up to the
date the Defects Liability Certificate (as defined in the Contract) is issued to the Contractor, or
until you advise us in writing that the Contractor has fulfilled its obligations under the Contract
(whichever is the later), after which date our liability shall automatically cease.

This Guarantee shall be effective and shall in no way be affected by:


(i) any alteration to the nature or extent of the Works as defined in the Contract, or
(ii) any allowance of time, forbearance, indulgence or other concession granted to the
Contractor under the Contract or settlement of any dispute between the parties to the
Contract.

This Guarantee shall be governed by and construed in accordance with the laws in force in the
……..[insert the state/emirate]………. and the federal laws of the …….[insert the country]……
as applicable to the ……..[insert the state/emirate]……….. Any dispute in relation to or
connected with this Guarantee shall be subject to the exclusive jurisdiction of the Dubai Courts.

……………………………………..
Authorised Signatory

(To be issued by a locally licensed bank


acceptable to the Employer)

* Insert name of the Beneficiary/Employer as stated in the Tender Documents.


** Insert name of the Contractor.
*** Insert actual scope of Works as stated in the Tender Documents.
**** Insert the Bank’s name.

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