BID DOCUMENT - IDCO

PERFORMANCE GUARANTEE FORMAT
PROFORMA FOR PERFORMANCE BANK GUARANTEE
Bank Guarantee No._______________
Date _________________
WHEREAS ________________________________________________(hereinafter referred to as “The
Owner”) which expression shall unless repugnant to the context includes their (legal representatives, successors
and assigns having) their registered office at
_____________________________________________________________
___________________________________________________________________ has placed a purchase order
(hereinafter referred to as the “Supplier”) which expression shall unless repugnant to the context include their legal
representatives, successors and assigns) for supply of ___________________________________ on the terms
and conditions as set out, (interalia), in the Owner’s purchase order no.______________________ dated
____________________ and various documents forming part thereof hereinafter collectively referred to as the
“Said purchase order” which expression shall include all amendments, modifications and/or variations thereto.
AND WHEREAS one of the conditions of the “Said purchase order” is that the Supplier shall furnish to the
Owner a Bank Guarantee from a Nationalised Bank for _________________________ ( _________ percent ) of
the total value of the “Said
purchase order against due and faithful performance of the materials supplied including defects liability obligation
against the performance guarantee obligations of the supply made under the said purchase order.
AND WHEREAS the “Supplier” has approached
________________________________________________________________
(hereinafter referred to as the Bank) having their registered office at ____________ and at the request of the
supplier and in consideration of the promises the Bank have agreed to give such guarantee as hereunder :-
(i)
(ii)
(iii)
The Bank hereby undertake to pay the amount due and payable under this guarantee without any demur merely
on a demand from the Owner stating that the amount claimed is due by reason of (default made by the supplier
in supplying the materials as per) the terms and conditions of the said purchase order including defects liability
obligations in fulfilling the performance guarantee obligations against the supply made by the supplier under the
said purchase order. Any such demand made on the Bank by the owner shall be conclusive as regards the
amount due and payable by the Bar under this guarantee. However, the Bank’s liability under this guarantee
shall restricted to an amount not exceeding ____________________(Rupees _________________).
The Owner will have the full liberty without reference to the Bank and without affecting the guarantee to
postpone for any time or from time to time the exercise of any powers and rights conferred on the owner under
the said purchase order and to enforce or to for bear from endorsing and powers or rights or by reasons of time
being given to the supplier which under law relating the surety would but for the provisions have the effect of
releasing the surety.
The rights of the Owner to recover the said sum of _________________ (Rupees ___________________) only
from the Bank in manner aforesaid will not be affected or suspended by reasons of the feet that any dispute or
disputes have been raised by the supplier or that any dispute(s) are pending before any office, tribunal or court.
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