Common use of Performance Bank Guarantee (PBG) Clause in Contracts

Performance Bank Guarantee (PBG). 19.1 Contractor shall stand guarantee to the work for a period of 6 months from the date of installation of outfitting items as mentioned in the scope of work. 19.2 The successful bidder has to submit Performance Bank Guarantee for 10 % value of each invoice, excluding Taxes, Duties, etc. (or alternatively 10% amount of each invoice may be retained as mentioned in clause 15.1) towards guarantee requirement as per clause 18. The PBG shall be valid for a period of 06 months plus one-month claim period post inspection clearance on board each yard. 19.3 PBG should be submitted in the form of Bank Guarantee drawn in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from the list of banks approved by SBI/ Canara bank published on MDL website. The BG should be valid up to four weeks beyond the end of 06 months the contractual / completion / Order validity period. Bidders to advise their bank/banker to send PBG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. Format of Bank Guarantee for PBG is available on MDL Website. 19.4 PBGs will be returned to the Contractor on completion of 06 months after successful execution of work applicable to this tender.

Performance Bank Guarantee (PBG). 19.1 Contractor shall stand guarantee to The work should be guaranteed for the work for a period of 6 12 months from the date of installation of outfitting items as mentioned in the scope of workPost inspection clearance on board each yard. 19.2 The successful bidder has to submit Performance Bank Guarantee for 10 % value of each invoice, excluding Taxes, Duties, etc. (or alternatively 10% amount of each invoice may be retained as mentioned in clause 15.1) towards guarantee requirement as per clause 18. The PBG shall be valid for a period of 06 12 months plus one-month claim period post inspection clearance on board each yard. 19.3 PBG should be submitted in the form of Bank Guarantee drawn in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from the list of banks approved by SBI/ Canara bank published on MDL website. The BG should be valid up to four weeks beyond the end of 06 12 months the contractual / completion / Order validity period. Bidders to advise their bank/banker to send PBG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. Format of Bank Guarantee for PBG is available on MDL Website. 19.4 PBGs will be returned to the Contractor on completion of 06 12 months after successful execution of work applicable to this tender.