FORM Group
ADVANCE PAYMENT BOND
Doc. no. FORM_GR-GROUP-SC-PRO_MOD-102-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/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT] No. ______
Advance Payment Bond
We refer to the subject [PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT] dated to
(SUPPLIER/SUB-CONTRACTOR)
(PURCHASER/CONTRACTOR), concerning the [Please define the SUPPLY subject of the captioned PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT].
awarded
by
It was a material term and condition of the PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT DOCUMENTS (inter alia) that pursuant to the condition of payment thereunder SUPPLIER/SUB-CONTRACTOR was entitled to receive an Advance Payment of __ % (___ percent) of the TOTAL PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT AMOUNT against presentation of a bank guarantee to cover the amount so advanced.
PURCHASER/CONTRACTOR has agreed, this guarantee being provided by SUPPLIER/SUB-CONTRACTOR, to pay the __ % ( ___ percent) as Advance Payment upon the terms and conditions hereinafter set forth.
in consideration of
We, the undersigned Bank/s (BANK) hereby irrevocably, unconditionally guarantee, as primary obligor and not merely as surety, the payment to the PURCHASER/CONTRACTOR on his 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/CONTRACTOR as a result of failure by the SUPPLIER/SUB-CONTRACTOR to fulfil his obligations under the PURCHASE ORDER/CONTRACT 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 [insert Calendar Date - i.e. 3 (three) months after the expected date of complete recovery of the Advance Payment by the PURCHASER]; then it shall become null and void whether returned or not to the BANK.
FORM Group
ADVANCE PAYMENT BOND
Doc. no. FORM_GR-GROUP-SC-PRO_MOD-102-E
Rev. 01
Date 18/02/2020
Page 2 of 2
The partial recovery of the amount advanced by the PURCHASER/CONTRACTOR shall be reflected in a reduction of the this guarantee; such reduction shall be authorized PURCHASER/CONTRACTOR.
in writing by
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.
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 PURCHASE ORDER/SERVICE CONTRACT/WORK CONTRACT / AGREEMENT 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-32855 - Saipem Hail & Ghasha Folder: ITB Attachments