Common use of PERFORMANCE BOND/SECURITY DEPOSIT Clause in Contracts

PERFORMANCE BOND/SECURITY DEPOSIT. If, for the due performance of the Contract, the Tender shall contain an undertaking by the Contractor to obtain, when required, a bond or a guarantee of a scheduled and/or nationalized bank to be bound with the Contractor to the Employer in a sum not exceeding that stated in the Appendix to the Tender and agreed to as per the Letter of Acceptance or Letter of Intent /Work Order for such bond or guarantee, the said bank and the terms of the said bond or guarantee shall be such as shall be approved by the Employer. The obtaining of such bond or guarantee or the provision of such sureties and the cost of the bond or guarantee to be so entered into shall beat the expense in all respects of the Contractor. Performance Guarantee shall be valid up-to the 28 days from completion of Defects Liability Period and shall be kept alive till the issue of certificate of Final Completion.