Common use of Performance Guarantee/Security Clause in Contracts

Performance Guarantee/Security. .1 The Property Manager shall provide a Performance Guarantee Security in the form of a Certified Cheque, an Irrevocable Letter of Credit or other security acceptable to the Minister in the amount of 8% of the combined one year amount of the Net Operations Price and the Extra Work Allowance. This Performance Guarantee Security will be drawn on a financial institution authorized to conduct business in Alberta and made payable to the “Minister of Finance”. Such security shall be effective for the term of this Contract, and shall continue on for three months following the expiry of this Contract. A Performance Guarantee Bond is not acceptable as a Performance Guarantee Security. .2 If this Contract is terminated with cause, or if the Property Manager does not perform in accordance with the Terms of Contract, then the Performance Guarantee Security shall be forfeited by the Property Manager. .3 In the event that the Performance Guarantee Security is due to expire prior to the expiry of the Contract, and the Property Manager does not renew or update this security as required, the Minister will redeem the current security prior to its expiry. .4 The Property Manager shall provide the Minister with the required Performance Guarantee Security upon the award of the Contract and prior to the commencement of the Work.

Performance Guarantee/Security. .1 The Property Manager shall provide a Performance Guarantee Security in the form of a Certified Cheque, an Irrevocable Letter of Credit or other security acceptable to the Minister in the amount of 8% of the combined one year amount of the Net Operations Price Management Fee and the Extra Work Direct Costs Allowance. This Performance Guarantee Security will be drawn on a financial institution authorized to conduct business in Alberta and made payable to the “Minister of Finance”” of Alberta. Such security shall be effective for the term of this Contract, and shall continue on for three months following the expiry of this Contract. A Performance Guarantee Bond is not acceptable as a Performance Guarantee Security. .2 If this Contract is terminated with cause, or if the Property Manager does not perform in accordance with the Terms of Contract, then the Performance Guarantee Security shall be forfeited by the Property Manager. .3 In the event that the Performance Guarantee Security is due to expire prior to the expiry of the Contract, and the Property Manager does not renew or update this security as required, the Minister will redeem the current security prior to its expiry. .4 The Property Manager shall provide the Minister with the required Performance Guarantee Security upon the award of the Contract and prior to the commencement of the Work.