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Thursday, 08 April 2010 05:18

Form of Performance Bank Guarantee Unconditional

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Note: The following forms and documents are prepared by the above under the laws and practice prevailing as of [Date]. Seldom is a model form or document directly suitable to a transaction without adaptation to the particularities and circumstances of the matter.

Form of Performance Bank Guarantee (Unconditional)

To: (...Name of Employer...)

(...Address of Employer...)

WHEREAS (...Name and Address of Contractor...) (hereinafter called "the Contractor") has undertaken, in pursuance of Contract No. (...) dated (...) to execute (...Name of Contract and Brief Description of Works...) (hereinafter called "the Contract");

AND WHEREAS it has been stipulated by you in the said Contract that the Contractor shall furnish you with a Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his [or her] obligations in accordance with the Contract;

AND WHEREAS we have agreed to give the Contractor such a Bank Guarantee;

NOW THEREFORE we hereby affirm that we are the Guarantor and responsible to you, on behalf of the Contractor, up to a total of (...Amount of Guarantee...) (( words...)), such sum being payable in the types and proportions of currencies in which the Contract Price is payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any sum or sums within the limits of (...Amount of Guarantee...) as aforesaid without your needing to prove -or to show grounds or reasons for your demand for the sum specified therein. We hereby waive the necessity of your demanding the said debt from the Contractor before presenting us with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract or of the Works to be performed there under or of any of the Contract documents which may be made between you and the Contractor shall in any way release us from any liability under this guarantee, and we hereby waive notice of any such change, addition or modification.

This guarantee is valid until the date (...) months after the issuing of the Maintenance Certificate.


Name of Bank




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