Common use of Performances Guarantee Clause in Contracts

Performances Guarantee. The Performance Guarantee will be 5% of the total value of contract amount. The performance Guarantee shall be deposited in the shape of Deposit at Call (CDR) / irrevocable Bank Guarantee from any scheduled bank. In case of the breach of the contract, the security will be forfeited. The Performance guarantee will be retained till the completion of contract period. The successful bidder is bound to provide the defined performance guarantee within 07 days. However case of failure the procuring agency on valid reasons may extend period for a specified period of time. Failure to provide a performance guarantee by the bidder will be sufficient ground for annulment of the award and initiation of legal action / debarring of firm by the procuring agency. In such event the procuring agency may award contract to the next lowest evaluated bidder or call for new bid. In case of the breach of the contract the performance guarantee / security will be forfeited.

Performances Guarantee. The Performance Guarantee will be 5% of the total value of contract amount. The performance Guarantee shall be deposited in the shape of Deposit at Call (CDR) / irrevocable Bank Guarantee from any scheduled bank. In case of the breach of the contract, the security will be forfeited. The Performance guarantee will be retained till the completion of contract period. The successful bidder is bound to provide the defined performance guarantee within 07 10 days. However case of failure the procuring agency on valid reasons may extend period for a specified period of time. Failure to provide a performance guarantee by the bidder will be sufficient ground for annulment of the award and initiation of legal action / debarring of firm by the procuring agency. In such event the procuring agency may award contract to the next lowest evaluated bidder or call for new bid. In case of the breach of the contract the performance guarantee / security will be forfeited.

Performances Guarantee. The Performance Guarantee will be 5% of the total value of contract amount. The performance Guarantee shall be deposited in the shape of Bank Guarantee preferably / Deposit at Call (CDR) / irrevocable Bank Guarantee ), Pay Order and Demand Draft from any scheduled bank. In case of the breach of the contract, the security will be forfeited. The Performance guarantee will be retained till the completion of contract period. The successful bidder is bound to provide the defined performance guarantee within 07 days. However case of failure the procuring agency on valid reasons may extend period for a specified period of time. Failure to provide a performance guarantee by the bidder will be sufficient ground for annulment of the award and initiation of legal action / debarring of firm by the procuring agency. In such event the procuring agency may award contract to the next lowest evaluated bidder or call for new bid. In case of the breach of the contract the performance guarantee / security will be forfeited.