VARIABLE PERFORMANCE GUARANTEE Clause Samples
A Variable Performance Guarantee clause sets out the conditions under which a party guarantees a certain level of performance, with the guarantee amount or terms adjusting based on actual performance outcomes. Typically, this clause applies to contracts where performance can be measured against specific benchmarks, such as energy output, production rates, or service levels, and the guarantee may increase or decrease depending on whether those benchmarks are met or missed. Its core practical function is to incentivize optimal performance while providing flexibility, ensuring that the guarantee remains fair and proportionate to real-world results.
VARIABLE PERFORMANCE GUARANTEE. 1.1 Where a Variable Performance Guarantee has been selected, the Guarantor's liability shall be limited during the following periods to diminishing amounts of the Guaranteed Sum as follows:
1.1.1 From and including the date of signing the Performance Guarantee up to and including the date of the interim payment certificate certifying, for the first time, more than 50% of the Contract Sum: R………………………….. (Amount in words )
1.1.2 From the day following the date of the said interim payment certificate up to and including the Expiry Date, or the date of issue by the Employer's Agent of the Certificate of Completion of the Works, whichever occurs first: R…………………………… (Amount in words )
1.2 The Employer's Agent and/or the Employer shall advise the Guarantor in writing of the date on which the interim payment certificate certifying, for the first time, more than 50% of the Contract Sum, has been issued and the date on which the Certificate of Completion of the Works has been issued.
VARIABLE PERFORMANCE GUARANTEE. 1.1. Where a Variable Performance Guarantee has been selected, the Guarantor’s liability shall be limited during the following periods to diminishing amounts of the Guaranteed Sum as follows:
VARIABLE PERFORMANCE GUARANTEE. 1.1.1 Where a Variable Performance Guarantee has been selected, the Guarantor's liability shall be limited during the following periods to diminishing amounts of the Guaranteed Sum as follows:
1.1.2 From and including the date of signing the Performance Guarantee up to and including the date of the interim payment certificate certifying, for the first time, more than 50% of the Contract Sum: