Security Forms: Section - Ix

J P MUKHERJI & ASSOCIATES PVT LTD
Tendaho Sugar Project
SECURITY FORMS
Section IX
Page - 1 / 5
BID DOCUMENT FOR

PLANT WATER SYSTEM
SECTION IX
SECURITY FORMS
NOTE
Samples of acceptable forms of Bid, Performance, and Advance Payment Securities are
provided in this Section IX. Bidders shall not complete the Performance and Advance
Payment Security forms at this stage of the procurement process. Only the successful
Bidder shall be required to provide these two securities.
FORM OF BID SECURITY (BID BOND)
BOND NO. ..[insert Bond number]
BY THIS BOND .. ..[insert name of Bidder; if joint venture,
insert complete legal names of partners] as Principal (hereinafter called the Principal), and
. .[insert name, legal title, and address of Surety],
authorized to transact business in .. [insert name of country of
Employer], as Surety (hereinafter called the Surety), are held and firmly bound unto
. [insert name of Employer] as Oblige (hereinafter called the
Employer) in the sum of.. .. .. [insert amount in an international freely
convertible currency] [insert amount in words], for the payment of
which sum, well and truly to be made, we, the said Principal and Surety, bind ourselves, our
successors and assigns, jointly and severally, firmly by these presents.
WHEREAS the Principal has submitted a written Bid to the Employer dated the [number]
..day of [month..], [year], for the PROCUREMENT AND
INSTALLATION OF PLANT WATER SYSTEM ON TURNKEY BASIS (hereinafter called the
Bid).
NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that if the Principal:
(1)
withdraws its Bid during the period of bid validity specified in the Form of Bid; or
(2)
refuses to accept the correction of its Bid Price, pursuant to ITB Sub-Clause 28.2; or
(3)
having been notified of the acceptance of its Bid by the Employer during the period of
Bid validity;
(a)
fails or refuses to execute the Form of Agreement in accordance with the

Instructions to Bidders, if required; or
(b)
fails or refuses to furnish the Performance Security in accordance with the

Instructions to Bidders;
then the Surety undertakes to immediately pay to the Employer up to the above amount
upon receipt of the Employers first written demand, without the Employer having to

SECURITY FORMS
Section IX
Page - 2 / 5
BID DOCUMENT FOR

PLANT WATER SYSTEM
substantiate its demand, provided that in its demand the Employer shall state that the
demand arises from the occurrence of any of the above events, specifying which event(s)
has occurred.
The Surety hereby agrees that its obligation shall remain in full force and affect up to and
including the date 28 days after the date of expiration of the Bid validity as stated in the
Invitation to Bid or extended by the Employer at any time prior to this date, notice of which
extension(s) to the Surety being hereby waived.
IN TESTIMONY WHEREOF, the Principal and the Surety have caused these presents to be
executed in their respective names this ..[insert number] day of.. .
[month],.. [year]
Principal: _______________________
Surety: ______________________________
Corporate Seal (where appropriate)
_______________________________
[insert signature(s) of authorized
representative(s)]
____________________________________
[insert signature(s) of authorized
representative(s)]
_______________________________
[insert printed name and title]
____________________________________
[insert printed name and title]

SECURITY FORMS
Section IX
Page - 3 / 5
BID DOCUMENT FOR

PLANT WATER SYSTEM
PERFORMANCE BANK GUARANTEE
(Unconditional)
.
.
[insert banks name, and address of issuing branch or office]
Beneficiary: ..
[insert name and address of Employer]
Date: .[insert date]
PERFORMANCE GUARANTEE No.:.
Guarantee number]
[insert
Performance
We have been informed that [insert name of Contractor]

(hereinafter called "the Contractor") has entered into Contract No. [insert
reference number of the Contract] dated with you, for the execution of PROCUREMENT
AND INSTALLATION OF PLANT WATER SYSTEM ON TURNKEY BASIS which includes
design, manufacture, supply to Port of Djibouti, transport to project site in Ethiopia, store at
site till start of erection, erection of mechanical and electrical equipment, train Employers
personnel, commissioning testing and handover the complete plant water system on turnkey
basis [ except related civil works and foundation, but with plant grouting] (hereinafter called
"the Contract").
Furthermore, we understand that, according to the conditions of the Contract, a performance
guarantee is required.
At the request of the Contractor, we . .. [insert name of Bank]
hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount
of . .
. [insert amount in figures] (..}[insert
amount in words]), such sum being payable in the types and proportions of currencies in
which the Contract Price is payable, upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Contractor is in breach of its
obligation(s) under the Contract, without your needing to prove or to show grounds for your
demand or the sum specified therein.
This guarantee shall expire no later than twenty-eight days from the date of issuance of the
Taking-Over Certificate, calculated based on a copy of such Certificate which shall be
provided to us, or on the [insert number day of [insert month], [insert year],
whichever occurs first. Consequently, any demand for payment under this guarantee must
be received by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
458, except that subparagraph (ii) of Sub-article 20(a) is hereby excluded.
_____________________
[signature(s) of an authorized representative(s) of the Bank ]

SECURITY FORMS
Section IX
Page - 4 / 5
BID DOCUMENT FOR

PLANT WATER SYSTEM
BANK GUARANTEE FOR ADVANCE PAYMENT

..
..
..
[insert Banks name, and address of issuing branch or office]
Beneficiary:..
[insert name and address of Employer]
Date: ..[insert date]
ADVANCE PAYMENT GUARANTEE No.: .[insert number]
We have been informed that.. [insert name of Contractor]
(hereinafter called "the Contractor") has entered into Contract No..
[insert reference number of the contract] dated [insert date] with you, for the
execution of PROCUREMENT AND INSTALLATION OF PLANT WATER SYSTEM ON
TURNKEY BASIS which includes design, manufacture, supply to Port of Djibouti, transport
to project site in Ethiopia, store at site till start of erection, erection of mechanical and
electrical equipment, train Employers personnel, commissioning testing and handover the
complete plant water system on turnkey basis [ except related civil works and foundation, but
with plant grouting] (hereinafter called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract, an advance
payment is to be made against an advance payment guarantee in the sum or sums indicated
below.
At the request of the Contractor, we . [insert name of Bank] hereby
irrevocably undertake to pay you any sum or sums not exceeding in total an amount of
.
.[insert
amount
in
figures]
([insert
amount
in
words].. upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Contractor is in breach of its obligation
under the Contract because the Contractor used the Advance Payment for purposes other
than the costs of mobilization in respect of the Works.
It is a condition for any claim and payment under this guarantee to be made that the
Advance Payment referred to above must have been received by the Contractor on its
account number [insert account number] at.. [insert name and
address of Bank].
The maximum amount of this guarantee shall be progressively reduced by the amount of the
Advance Payment repaid by the Contractor as indicated in copies of interim statements or
payment certificates which shall be presented to us. This guarantee shall expire, at the

SECURITY FORMS
Section IX
Page - 5 / 5
BID DOCUMENT FOR

PLANT WATER SYSTEM
latest, upon our receipt of a copy of the Interim Payment Certificate indicating that eighty
(80) percent of the Contract Price has been certified for payment, or on the
.[insert number] day of [insert month], [insert
year],. whichever is earlier. Consequently, any demand for payment
under this guarantee must be received by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No.
458.
_____________________
[insert signature(s) ) of authorized representative(s) of bank]

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J P MUKHERJI & ASSOCIATES PVT LTD

Tendaho Sugar Project

BID DOCUMENT FOR

fails or refuses to execute the Form of Agreement in accordance with the

fails or refuses to furnish the Performance Security in accordance with the

J P MUKHERJI & ASSOCIATES PVT LTD

BID DOCUMENT FOR

J P MUKHERJI & ASSOCIATES PVT LTD

BID DOCUMENT FOR

We have been informed that [insert name of Contractor]

J P MUKHERJI & ASSOCIATES PVT LTD

BID DOCUMENT FOR

BANK GUARANTEE FOR ADVANCE PAYMENT

J P MUKHERJI & ASSOCIATES PVT LTD

BID DOCUMENT FOR

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