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    Example of Advance Payment Guarantee

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    Anis Syahirah Fauzi
    This document provides an advance payment guarantee for a construction contract. It summarizes the contract details and guarantees repayment of any advance payment up to RM [amount] that the principal/contractor fails to repay according to the contract terms. The bank issuing this guarantee will reduce the guaranteed amount as advance payments are repaid, and the guarantee expires [date] unless renewed if the advance payment is still outstanding by then.

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    Example of Advance Payment Guarantee

    Uploaded by

    Anis Syahirah Fauzi
    2K views2 pages
    This document provides an advance payment guarantee for a construction contract. It summarizes the contract details and guarantees repayment of any advance payment up to RM [amount] that the principal/contractor fails to repay according to the contract terms. The bank issuing this guarantee will reduce the guaranteed amount as advance payments are repaid, and the guarantee expires [date] unless renewed if the advance payment is still outstanding by then.

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    Advance Payment Guarantee

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    This document provides an advance payment guarantee for a construction contract. It summarizes the contract details and guarantees repayment of any advance payment up to RM [amount] that the principal/contractor fails to repay according to the contract terms. The bank issuing this guarantee will reduce the guaranteed amount as advance payments are repaid, and the guarantee expires [date] unless renewed if the advance payment is still outstanding by then.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    2K views2 pages

    Example of Advance Payment Guarantee

    Uploaded by

    Anis Syahirah Fauzi
    This document provides an advance payment guarantee for a construction contract. It summarizes the contract details and guarantees repayment of any advance payment up to RM [amount] that the principal/contractor fails to repay according to the contract terms. The bank issuing this guarantee will reduce the guaranteed amount as advance payments are repaid, and the guarantee expires [date] unless renewed if the advance payment is still outstanding by then.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    EXAMPLE OF ADVANCE PAYMENT GUARANTEE

    Brief description of Contract


    ..

    Name and address of Beneficiary


    . of .
    . (whom the Contract defines as the
    Employer).

    We have been informed that ..


    (hereinafter called the "Principal") is your Contractor under such Contract
    and wishes to receive an advance payment, for which the Contract
    requires him to obtain a guarantee.

    At the request of the Principal, we (name


    of bank) hereby irrevocably undertake to pay you, the
    Beneficiary/Employer, any sum or sums not exceeding in total the amount
    of Ringgit Malaysia .. (RM ..) (the
    "guaranteed amount") upon receipt by us of your demand in writing and
    your written statement stating:

    (a) that the Principal has failed to repay the advance payment in
    accordance with the conditions of the Contract, and

    (b) the amount which the Principal has failed to repay.

    This guarantee shall become effective upon receipt [of the first
    instalment] of the advance payment by the Principal. Such guaranteed
    amount shall be reduced by the amounts of the advance payment repaid
    to you, as evidenced by your notices issued under the Conditions of
    Contract. Following receipt (from the Principal) of a copy of each
    purported notice, we shall promptly notify you of the revised guaranteed
    amount accordingly.

    Any demand for payment must contain your signature(s) which must be
    authenticated by your bankers or by a notary public. The authenticated
    demand and statement must be received by us at this office on or before
    (the date 28 days after the expected expiry of the Time for Completion)
    (the "expiry date"), when this guarantee shall expire and shall be
    returned to us.

    We have been informed that the Beneficiary may require the Principal to
    extend this guarantee if the advance payment has not been repaid by the
    date 28 days prior to such expiry date. We undertake to pay you such
    guaranteed amount upon receipt by us, within such period of 28 days, of
    your demand in writing and your written statement that the advance
    payment has not been repaid and that this guarantee has not been
    extended.

    This guarantee shall be governed by the laws of Malaysia.

    Date and Signature(s)

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