Common use of Performance Security and Security Deposit Clause in Contracts

Performance Security and Security Deposit. 4.4.1 For All Bidders including MSE Registered Firms 4.4.1.1 The Contractor shall be required to deposit an amount equal to 3% of the contract value of the work as Performance Security in the form of an irrevocable bank guarantee bond of any Nationalized / Scheduled bank of India in accordance with the format prescribed within 15 days of the issuance of the LoA. 4.4.1.2 Without limitation to the provisions of the preceding paragraph, whenever the EIC determines an addition to the Contract Price as a result of a change in cost and/or legislation or as a result of a variation amounting to more than 20% of the portion of the Contract Price, the Contractor, at the EIC’s written request, shall promptly increase the value of the Performance Bank Guarantee proportionately. The Contractor will also be required to furnish additional Performance Bank Guarantee, if any, arising out of provisions of clause 16.

Performance Security and Security Deposit. 4.4.1 4.4.1. For All Bidders including MSE Registered Firms 4.4.1.1 4.4.1.1. The Contractor shall be required to deposit an amount equal to 3% of the contract value of the work as Performance Security in the form of an irrevocable bank guarantee bond of any Nationalized / Scheduled bank of India in accordance with the format prescribed within 15 days of the issuance of the LoA. 4.4.1.2 4.4.1.2. Without limitation to the provisions of the preceding paragraph, whenever the EIC determines an addition to the Contract Price as a result of a change in cost and/or legislation or as a result of a variation amounting to more than 20% of the portion of the Contract Price, the Contractor, at the EIC’s written request, shall promptly increase the value of the Performance Bank Guarantee proportionately. The Contractor will also be required to furnish additional Performance Bank Guarantee, if any, arising out of provisions of clause 16.additional