BG Contractperf Format - rev.LGL.29.05.2013

Annexure - III
PROFORMA FOR BANK GUARANTEE FOR

CONTRACT PERFORMANCE SECURITY
( To be stamped in accordance with Stamp Act )
Bank Guarantee No...............

Dated......................
To
M/s
Dear Sirs,
In consideration of the (hereinafter referred to as “Purchaser”, which expression shall

unless repugnant to the context or meaning thereof include its successors,
administrators and assigns) having awarded to M/s ...................................... with its
Registered/ Head Office at ............ (hereinafter referred to as the "Supplier" which
expression shall unless repugnant to the context or meaning thereof, include its
successors administrators, executors and assigns), a Contract by issue of Purchaser's
Letter of Award No. .................... dated .......... and the same having been unequivocally
accepted by the Supplier, resulting in a Contract bearing No. ............... dated ...........
valued at .................................. for ................ and the Supplier having agreed to provide
a Contract Performance Guarantee,for the faithful performance of the entire Contract
equivalent to10% (10 percent) of the said value of the Contract, to Purchaser and having
further agreed that the Contract Performance Security shall be a security also for any
claims that Purchaser may have against the Supplier in connection with any other
contract or the Purchaser Group Companies may have against Supplier or Supplier Group
Companies in connection with any other contract.
We ............................................................
(Name and address)
having its Head Office at ............. (hereinafter referred to as the "Bank", which
expression shall, unless repugnant to the context or meaning thereof, include its
successors, administrators, executors and assigns) do hereby guarantee and undertake
to unconditionally pay Purchaser, on first demand any and all moneys payable by the
Supplier to the extent of ............................. as aforesaid any time upto .......................
+..............without
(days/month/year)
any demur, reservation contest, recourse or protest and/or without any reference to the
Supplier. Any such demand made by Purchaser on the Bank shall be conclusive and
binding notwithstanding any difference between the Purchaser and the Supplier or
any dispute pending before any Court, Tribunal, Arbitrator or any other authority. The
Bank undertakes not to revoke this guarantee during its currency without previous
consent of Purchaser and further agrees that the guarantee, herein contained, shall
continue to be enforceable till Purchaser discharges this guarantee.
Purchaser shall have the fullest liberty without affecting in any way the liability of the
Bank under this guarantee, vary any of the terms and conditions of the said Contract
and/or from time to time to extend the time for performance of the Contract by the
Supplier. Purchaser shall also have the fullest liberty, without affecting this guarantee, to
postpone from time to time the exercise of any powers vested in them or of any right
which they might have against the Supplier, and to exercise the same at any time in any
manner, and either to enforce or to forbear to enforce any covenants, contained or
implied, in the Contract between Purchaser and the Supplier or any other course or
remedy or security available to Purchaser. The bank shall not be released of its
obligations under these presents by any exercise by Purchaser of its liberty with
reference to the matters aforesaid or any of them or by reason of any other act or
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forbearance or other acts of omission or commission on the part of Purchaser or any
other indulgence shown by Purchaser or by any other matter or thing whatsoever which
under law would, but for this provision, have the effect of relieving the Bank.
The Bank also agrees that Purchaser at its option shall be entitled to enforce this
Guarantee against the Bank as a principal debtor, in the first instance without proceeding
against the Supplier and notwithstanding any other security or other guarantee that
Purchaser may have in relation to the Supplier's liabilities.
This Guarantee shall not be discharged due to any change in the constitution of the Bank
or the Supplier or the Purchaser.
Notwithstanding anything contained hereinabove our liability under this guarantee is

restricted to............................ and it shall remain in force upto and
including ............ .......... and shall be extended from time to time for such period, as may
be desired by M/s ......................... on whose behalf this guarantee has been given.
Dated this day of .........20 ........... at ................. .
WITNESS :
(Signature) ..........................................
(Name) ................................................
(Signature) ..........................................
(Name) .................................................
(Banker's rubber stamp).......................
(Name ).................................................
(Official address) .................................
..............................................................
(Designation with Bank Stamp) .......................
Attorney as per
Power of Attorney No. ................
Dated .......................
Notes : ......................
* The date will be Ninety Days (90) days after the end of the Warranty Period as
specified in the Contract with a claim period of 6 months.
The stamp papers of appropriate value shall be purchased in the name of Bank
issuing the Guarantee.
The guarantee shall be from a scheduled Bank.
Page 2 of 2

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Annexure - III

PROFORMA FOR BANK GUARANTEE FOR

( To be stamped in accordance with Stamp Act )

Bank Guarantee No...............

In consideration of the (hereinafter referred to as “Purchaser”, which expression shall

Notwithstanding anything contained hereinabove our liability under this guarantee is

Dated this day of .........20 ........... at ................. .

(Banker's rubber stamp).......................

(Official address) .................................

(Designation with Bank Stamp) .......................

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