Construction Guarantee Clause Samples
A Construction Guarantee clause requires a contractor or builder to provide a financial guarantee, such as a bond or bank guarantee, to assure the project owner that the construction will be completed according to the contract terms. This guarantee typically covers the cost of completing the work or remedying defects if the contractor fails to fulfill their obligations. By requiring such a guarantee, the clause protects the owner from financial loss due to contractor default or non-performance, ensuring the project is completed as agreed.
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Construction Guarantee. None C1.4 Adjudicator’s Contract - None C2.1 Pricing Instructions
Construction Guarantee. To ensure compliance of its obligations arising from the APP in connection with the preparation of the EXECUTIVE PROJECT, construction and TESTS of the SYSTEM, the DEVELOPER shall deliver to CEA, within the 30 (thirty) BUSINESS DAYS following the APP EFFECTIVENESS COMMENCEMENT, a guarantee in favor of CEA through a bond policy, for a value equivalent to the 10% (ten percent) of the COST OF THE SYSTEM corresponding to the first stage of the PROJECT stated in its PROPOSAL. This amount shall be updated annually, based on the INPC of the date on which the corresponding policy is issued, effective as from the execution date of the MINUTES OF COMMENCEMENT OF APP until the DATE OF COMMENCEMENT OF OPERATION. In the event that there is any extension to the dates of the CALENDARED SCHEDULE of MILESTONES for causes exclusively attributable to the DEVELOPER, the latter shall extend the term of the issued bond for the term of such extension, in such a manner that the CONSTRUCTION GUARANTEE is valid throughout the required terms and amounts. The DEVELOPER shall evidence the extension of term of the bond to CEA with at least 5 (five) BUSINESS DAYS prior to the initial expiration. The non-compliance by the DEVELOPER to obtain the extension of the term of the CONSTRUCTION GUARANTEE as established in this APP, shall be a cause of rescission of this APP, provided that the DEVELOPER does not remedy such situation within a term of 30 (thirty) BUSSINESS DAYS following the notification to that effect made by CEA. This guarantee shall be payable at the payment requirement made by CEA and/or SPF to the issuer. The hiring of this bond shall be done pursuant to the model used for such purposes by the bond company granting it to the DEVELOPER and approved by the SPF, but the policy shall include the following within its conditions:
a. The term of the policy shall be annual and of automatic renewal, without the need of an express statement from its contractor or of its beneficiary, commence on the date of its issuance and concluding on the DATE OF COMMENCEMENT OF OPERATION.
b. The bond shall be enforced upon rescission due to causes exclusively attributable to the DEVELOPER, in terms of CLAUSE THIRTY FIRST or when the DEVELOPER does not comply with the payment of the corresponding conventional penalty referred to in CLAUSE THIRTY FIFTH of this APP, within the term therein established for such purpose.
c. To enforce the bond in the events referred to in the previous section, the writte...
Construction Guarantee. 20.1 The Seller undertakes:
20.1.1 for a period of up to 3 (three) months from date of possession and occupation (whichever occurs first) to remedy any latent defects that manifest itself, which defect can directly be ascribed to defective material or labour, and which defect must be substantially of lower standard than the standards applied in the development; and
20.1.2 for a period of up to 12 (twelve) months from date of possession and occupation (whichever occurs first) to remedy any leakages in the roof structure that manifest itself; and
20.1.3 for a period of up to 5 (five) years from date of possession and occupation (whichever occurs first) to remedy any substantial structural defects in the concrete foundations, brickwork and structural woodwork.
20.2 The Purchaser is obliged to furnish the Seller with a final list of the defects in the Property, to be furnished within 7 (seven) days of date of occupation (a blank copy of which is attached hereto as Annexure "G").
20.3 In the event of the Purchaser not timeously furnishing the list referred to in clause 20.2, the Seller will have no liability whatsoever in respect of clause 20.1 hereof.
Construction Guarantee. GUARANTOR DETAILS AND DEFINITIONS
Construction Guarantee. The Contractor guarantees that all Work performed under this Contract shall be free from defects owing to faulty materials or workmanship for a period of one (1) year after date of Substantial Completion of all Work. All Work that proves defective, by reason of faulty materials or workmanship within said period of one (1) year, shall be remedied by the Contractor free of cost to the City. These guarantees shall not operate as a waiver of any of the City’s rights and remedies for default under or breach of this Contract which rights and remedies may be exercised at any time within the period of any applicable statute of limitations.
Construction Guarantee. Landlord hereby guarantees that the Building Shell and the Tenant Improvements shall be free from defects for a period of one (1) year from the date of completion. Landlord shall at Landlord’s sole cost and expense promptly correct any construction defects discovered during such one (1) year period, and any damage caused to the Demised Premises in the course of such correction.
Construction Guarantee. The Licensee shall provide a Construction Guarantee (on or before the Zero Date and which guarantee shall be in force until the issue of Certificate of Completion of the Phase I Construction in accordance with Clause 8.10) in favour of the Licensor for an amount equivalent to 3 % of the value of the Contracted Assets for Phase I of the Project in accordance with the Approved DPR.