FORM Group
PERFORMANCE BOND
Doc. no. FORM_GR-GROUP-SC-PRO_MOD-101-E
Rev. 01
Date 18/02/2020
Page 1 of 2
ON BANK HEADED PAPER (International Bank at least “BBB” rated under S&P)
Messrs …………… …………… …………… …………… [address]
Subject: [PURCHASE ORDER/ WORK/SERVICE CONTRACT/AGREEMENT] No. ________
Performance Bond
We refer to the subject [PURCHASE ORDER / SERVICE CONTRACT/WORK CONTRACT/AGREEMENT] dated ________________awarded
[SUPPLIER/SUB- CONTRACTOR] by ______________________________________________________________________ [PURCHASER/CONTRACTOR], concerning the [Please define the SUPPLY subject of the captioned PURCHASE ORDER or the SERVICES/WORKS].
to
It was a material term and condition of the PURCHASE ORDER / SERVICE CONTRACT/ WORK CONTRACT / AGREEMENT DOCUMENTS (inter alia) that the PURCHASER/CONTRACTOR was entitled to request a Performance Bond of __ % ( ___ percent) of the TOTAL PURCHASE ORDER/ CONTRACT AMOUNT as a guarantee of good performance.
We, the undersigned Bank/s (BANK) hereby irrevocably and unconditionally guarantee, as primary obligor and not merely as surety, the payment to the PURCHASER/CONTRACTOR on its first demand, without whatsoever right of objection on our part and without its first claim to the SUPPLIER/SUB-CONTRACTOR of any and every amount stated in a written demand of PURCHASER as a result of failure by the SUPPLIER/SUB-CONTRACTOR to fulfil its obligations under the PURCHASE ORDER / SERVICE CONTRACT/WORK CONTRACT / AGREEMENT DOCUMENTS. The BANK maximum aggregate liability under this guarantee shall be of ____ [currency] _______________ ([currency] ______), which is __ % ( percent) of the TOTAL PURCHASE ORDER / SERVICE CONTRACT/ WORK CONTRACT / AGREEMENT AMOUNT.
Any payment by us hereunder shall be in ____ [currency] and without any deduction for or on account of any present or future taxes, levies, imposts, duties, charges, fees, deductions of any nature whatsoever and by whomsoever imposed.
This guarantee shall enter into force and effect on the date of its issue and shall remain valid up to______________________ (i.e. 3 (three) months after the expected date of the end of the Warranty Period as defined in the PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT); after that date this Guarantee shall become null and void, whether returned or not.
This guarantee shall be governed and construed in all respect in accordance with the Laws of England and Wales without regard to the conflict of law rules thereof and shall be subject to the exclusive jurisdiction of the High Court of London without prejudice to the parties’ right to enforce the decision of the High Court in London in other jurisdictions.
FORM Group
PERFORMANCE BOND
Doc. no. FORM_GR-GROUP-SC-PRO_MOD-101-E
Rev. 01
Date 18/02/2020
Page 2 of 2
This guarantee is personal to the PURCHASER/CONTRACTOR and may be only assigned in full in favour of its successors and assigns as defined and permitted in accordance with the provisions of the AGREEMENT PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT/ DOCUMENTS, with the prior consent of the bank, which shall not unreasonably withheld.
Dated the ______ day of ____________, ________
Yours faithfully,
__________________________ Bank
By
Name
Position ______________________________
Project: Q-21699 - Saipem COMP2 Folder: RFQ Files