Common use of Performance Guarantee Clause in Contracts

Performance Guarantee. The successful tender, here after referred to as the contractor shall pay in the form of “Performance Guarantee” at different rates for different slabs as stated below: For premium, at par and rebate 0 to 12% PG= 0.92% x contract sum applicable for rebate of 12% For rebate of 12.01% P.G. = {0.92% x contract sum applicable for rebate of 12%} + (X) x contract sum where X= percentage rebate quoted more than 12% The Performance Guarantee shall be paid in one of the following forms. I) Cash (In case guarantee amount is less than Rs.10,000/- II) Demand Draft (In case guarantee amount is less than Rs.1,00,000/) III) Government securities IV) Fixed Deposit Receipts (FDR) of a Schedule Bank. V) An electronically issued irrevocable bank guarantee bond of any Schedule bank or in the prescribed form given in Appendix. Performance Guarantee is applicable over and above the clause of Security Deposit. Performance Guarantee will have to be paid & shall be valid till the defect liability period or finalization of final bill whichever is later. This deposit will be allowed in the form of I to V as mentioned above and shall be paid within 15 days after receipt of Letter of Acceptance. The Performance BG shall not be accepted in broken period else penalty amounting to Rs. 1000/- per day will be recovered for broken period.

Performance Guarantee. The successful tender, here after referred to as the contractor shall pay in the form of “Performance Guarantee” at different rates for different slabs as stated below: For premium, at par and rebate 0 to 12% PG= 0.92% x contract sum applicable for rebate of 12% For rebate of 12.01% P.G. = {0.92% x contract sum applicable for rebate of 12%} + (X) x contract sum where X= percentage rebate quoted more than 12% The Performance Guarantee shall be paid in one of the following forms. I) Cash (In case guarantee amount is less than Rs.10,000/- II) Demand Draft (In case guarantee amount is less than Rs.1,00,000/) III) Government securities IV) Fixed Deposit Receipts (FDR) of a Schedule Bank. V) An electronically issued irrevocable bank guarantee bond of any Schedule bank or in the prescribed form given in Appendix. Performance Guarantee is applicable over and above the clause of Security Deposit. Performance Guarantee will have to be paid & shall be valid till the defect liability period or finalization of final bill whichever is laterbill. This deposit will be allowed in the form of I to V as mentioned above and shall be paid within 15 days after receipt of Letter of Acceptance. The Performance BG shall not be accepted in broken period else penalty amounting to Rs. 1000/- per day will be recovered for broken period.

Performance Guarantee. The successful tender, here after referred to as the contractor shall pay in the form of “Performance Guarantee” at different rates for different slabs as stated below: Offer PG applicable % For premium, at par and rebate 0 to 12% PG= 0.92% x contract sum applicable for rebate of 12% For rebate of 12.01% P.G. = {0.92% x contract sum applicable for rebate of 12%} + (X) x contract sum where X= percentage rebate quoted more than 12% The Performance Guarantee shall be paid in one of the following forms. I) Cash (In case guarantee amount is less than Rs.10,000/- II) Demand Draft (In case guarantee amount is less than Rs.1,00,000/) III) Government securities IV) Fixed Deposit Receipts (FDR) of a Schedule Bank. V) An electronically issued irrevocable bank guarantee bond of any Schedule bank or in the prescribed form given in Appendix. Performance Guarantee is applicable over and above the clause of Security Deposit. Performance Guarantee will have to be paid & shall be valid till the defect liability Warranty period or finalization of final bill whichever is later. This deposit will be allowed in the form of I to V as mentioned above and shall be paid within 15 days after receipt of Letter of Acceptance. The Performance BG shall not be accepted in broken period else penalty amounting to Rs. 1000/- per day will be recovered for broken period.

Performance Guarantee. The successful tenderbidder, here after referred to as the contractor shall pay in the form of “Performance Guarantee” at different rates for different slabs as stated below: For premium, at par and rebate 0 to 12% PG= 0.92% x contract sum applicable for rebate of 12% For rebate of 12.01% P.G. = {0.92% x contract sum applicable for rebate of 12%} + +(X) x contract sum where X= percentage rebate quoted more than 12% The Performance Guarantee shall be paid in one of the following forms. I) Cash (In case guarantee amount is less than Rs.10,000/- II) Demand Draft (In case guarantee amount is less than Rs.1,00,000/) III) Government securities IV) Fixed Deposit Receipts (FDR) of a Schedule Bank. V) An electronically issued irrevocable bank guarantee bond of any Schedule bank or in the prescribed form given in AppendixAnnexure. Performance Guarantee is applicable over and above the clause of Security Deposit. Performance Guarantee will have to be paid & shall be valid till the defect liability period or finalization of final bill whichever is later. This deposit will be allowed in the form of I to V as mentioned above and shall be paid within 15 days after receipt of Letter of Acceptance. The Performance BG shall not be accepted in broken period else penalty amounting to Rs. 1000/- per day will be recovered for broken period.