PERFORMANCE BANK GUARANTEE. (To be submitted directly to Buyer in Original) (This is in addition to the Security Deposit as m entioned above)
i. The successful bidder shall be required to furnish a Performance Guarantee equivalent to 10% of the equipment landed value including all taxes, duties and other costs and charges, without considering Input Tax Credit. (As per below format) (on a non-judicial stamp paper of v alue Rs.250.00 only)
ii. In case of contracts for procurement of capital goods along with warranty spares & consumables (if applicable) and additional spares & co nsumables/ AMC/CMC for more than 1 year the Performance Bank Guarantee shall be for 10% of equipment landed value along with maximum annual landed value of spares & consumables/AMC/CMC.
iii. The Performance Guarantee shall be in the form of a Bank Guarantee issued by RBI scheduled bank in India in the prescribed format on a non-judicial stamp paper.
iv. The Performance Bank Guarantee (PBG) shall be in the same currency(ies) in which contract has been signed. In case of multi-currency co ntract, separate PBG in respective currency for required value shall be submitted.
v. If the contract is for procurement of equipment, the PBG (s) may be submitted equipment wise also. For this purpose, the value of each eq uipment will be worked out by dividing the total value of contract for a particular item of Bid by the number of equipment ordered for tha t particular item of the Bid.
vi. The PBG(s) for equipment shall remain valid till3 months after the completion of warranty period/contract period.
vii. The PBG shall be submitted sufficiently in advance to enable its verification from the issuing bank before submission of the invoice for pa yment.
viii. The release of the Performance Bank guarantee(s) after above indicated period, shall be subject to satisfactory performance of the equip ment/items during the warranty period and fulfilment of contractual obligations failing which, action for further extension or encashment of PBG, as deemed suitable shall be taken. The Performance Bank Guarantee shall be released after expiry of validity period if no claim ce rtificate is received from the concerned HOD/Area GM and the contractor indicating that there is no claim pending and that there is no dis pute pending respectively with the approval of the concerned HOD (MM)/Area GM.
ix. The PBG will be submitted through Structured Financial Management System (SFMS). Issuing Ban k, Branch an d Address i Name of Bank ii Issuing Bank ...
