Common use of Construction Performance Bond Clause in Contracts

Construction Performance Bond. ‌ (a) The Concessionaire shall provide to FBR, by the Works Commencement Date, the Construction Performance Bond with a face value equivalent to [five] percent (5%) of the Pre-Estimated Project Cost, which shall answer for and guarantee the completion of the Works during the Construction Period. The Construction Performance Bond shall be in the form and content set forth in Schedule F (Form of Construction Performance Bond). The Financial Close Bond shall be returned to the Concessionaire simultaneously with the provision of the Construction Performance Bond. In the event that FBR refuses to return the Financial Close Bond, the Concessionaire shall not be obliged to submit the Construction Performance Bond and, in doing so, shall not be considered to be in breach of this Agreement. (b) The Construction Performance Bond may be in the form of bank guarantee issued by a scheduled commercial bank of Pakistan as per requirements of the State Bank of Pakistan. The Construction Performance Bond shall be issued and maintained without any recourse on the Concessionaire, its assets or properties; and further shall not be secured through any encumbrance/charge on the Concession Area and shall remain valid till the start of operations phase.

Construction Performance Bond. ‌ (a) The Concessionaire shall provide to FBR, by the Works Commencement Date, the Construction Performance Bond with a face value equivalent to [five] percent (5%) of the Pre-Estimated Project Cost, which shall answer for and guarantee the completion of the Works during the Construction Period. The Construction Performance Bond shall be in the form and content set forth in Schedule F (Form of Construction Performance Bond). The Financial Close Bond shall be returned to the Concessionaire simultaneously with the provision of the Construction Performance Bond. In the event that FBR refuses to return the Financial Close Bond, the Concessionaire shall not be obliged to submit the Construction Performance Bond and, in doing so, shall not be considered to be in breach of this Agreement. (b) The Construction Performance Bond may be in the form of bank guarantee issued by a scheduled commercial bank of Pakistan as per requirements of the State Bank of Pakistan. The Construction Performance Bond shall be issued and maintained without any recourse on the Concessionaire, its assets or properties; and further shall not be secured through any encumbrance/charge on the Concession Area and shall remain valid till the start of operations phase.