Performance Guarantee i Clause Samples
A Performance Guarantee clause requires one party, typically a contractor or supplier, to provide assurance that they will fulfill their contractual obligations to a specified standard. This is often achieved through a financial instrument such as a bank guarantee or performance bond, which can be claimed by the other party if the obligations are not met. The core function of this clause is to protect the beneficiary from losses due to non-performance, ensuring accountability and reducing the risk of project failure.
Performance Guarantee i. Within fifteen (15) days of the receipt of notification of award from the Procuring Agency, the successful Bidder shall furnish the Performance Guarantee in accordance with the Conditions of Contract, in the Performance Guarantee Form provided in the Bidding documents, or in another form acceptable to the Procuring Agency.
Performance Guarantee i. The Supplier shall within one week of issuance of advance acceptance, shall provide to the Purchaser a 0.25% stamp duty of the total contract amount and provide stamp paper along with the challan form of deposited amount. The supplier shall, within 07 days of issuance of purchase order, provide to the purchaser a Performance Guarantee equivalent to 5% of the total purchase order amount in the shape of Bank Guarantee / CDR, with reference to PPRA letter No. L&M 1-15(SOC)(1)/2023 dated 7th March, 2024. This Performance Guarantee shall be released to the Supplier upon successful completion of the advanced acceptance award. ii) Failure of the successful Bidder to comply with the requirement of ITB Clause (i) above or ITB Clause 2.6.3 shallconstitutesufficientgroundsfortheannulmentofthe award and forfeiture of the Bid security along with other remediesavailableunderPPR-14.Afterthat,theProcuring Agency may decide to award the contract to the next lowest evaluated Bidder, keeping in view the Bid validity time, or call for new Bids keeping in view the concept of value for money as defined under rule-2(ae) read with Principles of Procurement as enunciated in rule-4 of PPR- 14.
Performance Guarantee i. Within Ten (10) Days of the receipt of notification of award from the Procuring Agency, the successful Bidder shall furnish the Performance Guarantee in accordance with the Conditions of Contract, in the Performance Guarantee Form provided in the Bidding documents. ii) Failure of the successful Bidder to comply with the requirement of ITB Clause (i) above or ITB Clause 1.6.3 shall constitute sufficient grounds for the annulment of the award and forfeiture of the Bid security along with other remedies available under PPR-14. After that, the Procuring Agency may decide to award the contract to the next lowest evaluated Bidder, keeping in view the Bid validity time, or call for new Bids keeping in view the concept of value for money as defined under rule-2(ae) read with Principles of Procurement as enunciated in rule-4 of PPR- 14.