Bank Guarantee For Performance Bond

- As security against Contractor;s due performance
- If Contractor cannot secure Guarantee, deemd opted for Performance Guarantee Sum (PGS)

Guarantor guarantees the following, to the Government :

1. On Government's first writeen demand on this Bond, Guarantor to pay Government amount demanded, notwithstanding contestation by Contractor/ Guarantor/thrid party. Total demands not exceed Bond amount. 
2. Government can demand the Bond partially. upon payment, bond amount be reduced accordingly 
3. Guarantor cannot be discharged from this Guarantee by any means except full compliance. 
4. This Gurantee is irrevocable and expires at end of 12 months after completion of DLP or issuance of CCMGD, whichever later + 4 weeks. 
5. If this Agreement is determinated, all obligations and laibilities og Guarantor ceases. 
6. All Government's claim for Bond be received by Guarantor latest within 4 weeks from expiry date of Guarantee. 

Therefore validity period of Guarantee equal period of Contract + DLP / CCMGD + 12 months + 4 weeks for final check / demand. 

Note: 

- Guarantor be government approved bank or finance company or isurance company/ Takaful which Contrctor need pay a premium to secure. 

- I Contractor cannot get guarantor , PGS allowed in lieu.