Common use of Performance Guarantee Clause in Contracts

Performance Guarantee. (i) The contractor shall also be responsible for performance of work carried out by him for a period of 12 (Twelve) month beyond the completion of work for which performance security has to be furnished by him @ 5%(five percent)of amount of contract. For this purpose contractor has to submit to the department a Bank Guarantee of 5% amount of the value of work done on every running and final bill payable to him. If contractor fails to submit bank guarantee of 5% amount of the ▇▇▇▇▇ ▇▇▇▇, then 5% amount of bill shall be deducted from his running and final bill payment. However, the contractor can get refund of such performance cash security amount deducted if he submits appropriate bank guarantee valid for the period as stated above or 12 (Twelve) month after actual completion. If require, the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period of the Bank Guarantee(s) for such period which he considers it proper and the contractor shall extend the validity period of such Bank Guarantee accordingly. If the contractor fails to extend the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. before the expiry of the validity period. (ii) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) Failure of the contractor to rectify the defects properly in the given period, it shall be open for the Commissioner/Chief Municipal Officer/Engineer in Charge to get the defect(s) rectified either departmentally or through other agency (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent) of such cost from the contractor from any sum, in any form, and available with the department or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned to the contractor subject to the satisfaction of the Executive Engineer.

Performance Guarantee. (i) I. The contractor shall also be responsible for performance of work carried out by him for a period of 12 (Twelve) month beyond the completion of work for which performance security has to be furnished by him @ 5%(five percent)of amount of contract. For this purpose contractor has to submit to the department a Bank an irrevocable Performance Guarantee of 5% (Five percent) of the base amount of the value tender(excluding GST) in addition to other deposits mentioned elsewhere in the contract for his proper performance of the contract agreement, (not withstanding and/or without prejudice to any other provisions in the contract) within the period specified‟ from the date of issue of letter of acceptance. This period can be further extended by the Engineer-in-Charge up to a maximum period as specified’, on written request of the contractor stating the reason for delays in procuring the Performance Guarantee, to the satisfaction of the Engineer-in-Charge. This guarantee shall be in the form of Bank Guarantee from any scheduled bank or Banker‟s Cheque of any scheduled bank/Demand Draft of any scheduled bank or Government Securities endorsed in favour of CSL or Fixed Deposit Receipts/Guarantee Bonds of any Scheduled Bank. In case a fixed deposit receipt of any scheduled Bank is furnished by the contractor, the same shall be pledged in the name of CSL and further that if the Bank is unable to make payment against the said fixed deposit receipt, the loss caused thereby shall fall on the contractor and the contractor shall forthwith, on demand furnish additional security to the CSL to make good the deficit. II. The Performance Guarantee shall be initially valid up to the stipulated date of completion of work done on every running and final bill payable to himplus 60 days beyond that. If contractor fails to submit bank guarantee In case the time for completion of 5% amount of the ▇▇▇▇▇ ▇▇▇▇, then 5% amount of bill shall be deducted from his running and final bill payment. Howeverwork gets enlarged, the contractor can shall get refund the validity of Performance Guarantee extended to cover such performance cash security amount deducted if he submits appropriate bank guarantee valid enlarged time for completion of work. After recording of the completion certificate for the period as stated above or 12 (Twelve) month after actual completion. If requirework by the competent authority, the Commissioner/ Chief Municipal Officer Performance Guarantee shall ask be returned to the contractor, without any interest. The performance Guarantee for the maintenance contracts exceeding one year will be returned year wise proportionately subject to successful execution of work. III. Delay in submission of performance Guarantee, the Engineer-in-charge can extend the period on a written request up to 15 days with a penalty of 0.1% per day of the performance Guarantee amount. The Engineer-in-Charge shall claim the performance Guarantee for the following. i. Failure by the contractor to extend the validity period of the Bank Guarantee(s) for such period Performance Guarantee as described herein above, in which he considers it proper and event the contractor shall extend Engineer-in-Charge may claim the validity period of such Bank Guarantee accordingly. If the contractor fails to extend the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. before the expiry full amount of the validity period.Performance Guarantee; and (ii) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) . Failure of by the contractor to rectify pay CSL any amount due, either as agreed by the defects properly contractor or determined under any of the Clauses/Conditions of the agreement, within 30 days of the service of notice to this effect by Engineer-in-Charge. iii. In the event of the contract being determined or rescinded under provision of any of the Clause/Condition of the agreement, the Performance Guarantee shall stand forfeited in the given period, it full and shall be open for absolutely at the Commissioner/Chief Municipal Officer/Engineer in Charge to get the defect(s) rectified either departmentally or through other agency (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent) of such cost from the contractor from any sum, in any form, and available with the department or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned to the contractor subject to the satisfaction disposal of the Executive EngineerCSL.

Performance Guarantee. (i) The contractor shall also be responsible for performance In order to secure the construction and installation of work carried out by him for a period of 12 (Twelve) month beyond the completion of work Public Improvements above-described for which performance security has the Developer is responsible, the Developer shall, prior to be furnished by him @ 5%(five percent)of amount recording the final plat in the real estate records of contract. For this purpose contractor has to submit to the department a Bank Guarantee of 5% amount of the value of work done on every running and final bill payable to him. If contractor fails to submit bank guarantee of 5% amount of the ▇Gilpin County, which recording shall occur no later than ninety (90) ▇▇▇▇ ▇▇▇▇fter the execution of this Agreement, then 5% furnish the City, at the Developer's expense, with an irrevocable letter of credit in which the City is designated as beneficiary, to secure the performance and completion of the Public Improvements, or the City may accept at its sole discretion some other form of security from the Developer in an amount equal to one hundred ten percent (110%) of the estimated costs of the Public Improvements to be constructed and installed as set forth in Exhibit C. The Developer agrees that approval of the final plat by the City is contingent upon the Developer's provision of an irrevocable letter of credit to the City within ninety (90) days of the execution of this Agreement in the amount and form provided herein. Failure of the Developer to provide an irrevocable letter of credit to the City in the manner provided herein shall negate the City's approval of the final plat. Letters of credit shall be substantially in the form and content set forth in Exhibit D, attached hereto and incorporated herein, and shall be subject to the review and approval of the City Attorney. The Developer shall not start any construction of any public or private improvement on the Property including, but not limited to, staking, earth work, overlot grading, or the erection of any structure, temporary or otherwise, until the City has received and approved the irrevocable letter of credit; provided, however, this requirement shall not apply to the issuance of a bench excavation permit which is governed by City of Black Hawk ordinance. The City shall not issue a foundation excavation permit for the Property until such time as a CLOMR is issued for the Property. The estimated costs of the Public Improvements shall be a figure mutually agreed upon by the Developer and the City's Director of Public Works, and where appropriate the Manager of the District, as set forth in Exhibit C. If, however, they are unable to agree, the Director of Public Works' estimate shall govern after giving consideration to information provided by the Developer including, but not limited to, construction contracts and engineering estimates. The purpose of the cost estimate is solely to determine the amount of bill shall be deducted from his running security. No representations are made as to the accuracy of these estimates, and final bill paymentthe Developer agrees to pay the Actual Costs of all such Public Improvements. HoweverThe estimated costs of the Public Improvements may increase in future. Accordingly, the contractor can get refund of such performance cash security amount deducted if he submits appropriate bank guarantee valid for City reserves the period right to review and adjust the cost estimate on an annual basis. Adjusted cost estimates will be made according to changes in the Construction Costs Index as stated above or 12 (Twelve) month after actual completion. If require, published by the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period of the Bank Guarantee(s) for such period which he considers it proper and the contractor shall extend the validity period of such Bank Guarantee accordinglyEngineering News Record. If the contractor City adjusts the cost estimated for the Public Improvements, the City shall give written notice to the Developer. The Developer shall, within thirty (30) days after receipt of said written notice, provide the City with a new or amended letter of credit in the amount of the adjusted cost estimates. If the Developer refuses or fails to extend so provide the City with a new or amended letter of credit, the City may exercise the remedies provided for in paragraph 5 of this Agreement; provided, however, that prior to increasing the amount of additional security required, the City shall give credit to the Developer for all required Public Improvements which have actually been completed so that the amount of security required at any time shall relate to the cost of required Public Improvements not yet constructed. In the event the Public Improvements are not constructed or completed within the period accordinglyof time specified by paragraph 8 of this Agreement or a written extension of time mutually agreed upon by the parties to this Agreement, the Commissioner/ Chief Municipal Officer shall encash City may draw on the B.G. before letter of credit to complete the expiry Public Improvements called for in this Agreement. In the event the letter of credit is to expire within fourteen (14) calendar days and the Developer has not yet provided a satisfactory replacement, the City may draw on the letter of credit and either hold such funds as security for performance of this Agreement or spend such funds to finish the Public Improvements or correct problems with the Public Improvements as the City deems appropriate. Upon completion or performance of such improvements, conditions, and requirements within the required time, and the approval of the validity period. Director of Public Works, ninety percent (ii90%) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) Failure of the contractor to rectify the defects properly in the given period, it estimated costs of construction shall be open for released to the Commissioner/Chief Municipal Officer/Engineer in Charge to get Developer within ten (10) days of acceptance by the defect(sCity provided, however, the City shall retain through the one (1) rectified either departmentally or through other agency year warranty period at least twenty percent (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent20%) of such cost from the contractor from any sum, in any form, and available with the department or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned to the contractor subject to the satisfaction total construction costs of the Executive EngineerPublic Improvements.

Performance Guarantee. 9.1 Within thirty (i30) days of the Effective Date, the Concessionaire shall provide to the Developer an on demand bank guarantee in the amount of ................................................., issued by a financial institution acceptable to the Developer. 9.2 The contractor Performance Guarantee shall also be responsible for performance adjusted annually within ninety (90) Business Days of work carried out by him for a period the end of 12 (Twelve) month beyond each Concession Year such that the completion of work for which performance security has amount to be furnished guaranteed by him @ 5%(five percent)of amount the Performance Guarantee for the relevant Concession Year is not less than the figure indicated in clause 9.1 above. 9.3 The Performance Guarantee (in accordance with the provisions hereof) shall be valid from the date of contract. For issue until ninety (90) Business Days after the expiry or earlier termination of this purpose contractor has to submit Concession Contract. 9.4 Within ninety (90) Business Days of the expiry or earlier termination of this Concession Contract, the Developer shall release all or so much of the Performance Guarantee as shall remain undrawn after such expiry or termination. 9.5 The Performance Guarantee shall secure:- 9.5.1 the Concessionaire’s performance under this Concession Contract and may be called on by the Developer to the department extent of any costs, losses, damages or expenses suffered or incurred by the Developer as a Bank Guarantee result of 5% amount any breach by the Concessionaire of this Concession Contract, including but not limited to failure of the value concessionaire to effect payments of work done any concession fee pursuant to clause 11; and 9.5.2 the Concessionaire’s obligation referred to in clause 9.1 above may be called on every running by the Developer to offset any costs or expenses which may be required to restore the Improvements to a standard and final bill payable quality which is reasonably acceptable to himthe Developer. 9.6 Prior to enforcing the Performance Guarantee, the Developer shall give notice to the Concessionaire, informing the Concessionaire of the breach giving rise to the right of enforcement of the Performance Guarantee and requesting the Concessionaire to remedy the breach within twenty (20) Business Days (or such other period as the Developer, in its sole discretion, may deem appropriate under the circumstances). If contractor fails such breach is not remedied within the specified period, the Developer may enforce the Performance Guarantee. 9.7 The Performance Guarantee may only be enforced to submit bank guarantee the extent of 5% amount any quantifiable costs, losses, damages or expenses suffered or incurred and / or reasonably expected to be suffered or incurred as a result of the ▇▇▇▇▇ ▇▇▇▇, then 5% amount of bill shall be deducted from his running and final bill payment. However, the contractor can get refund of such performance cash security amount deducted if he submits appropriate bank guarantee valid for the period as stated above or 12 (Twelve) month after actual completion. If require, the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period of the Bank Guarantee(s) for such period which he considers it proper and the contractor shall extend the validity period of such Bank Guarantee accordingly. If the contractor fails to extend the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. before the expiry of the validity period. (ii) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) Failure of the contractor to rectify the defects properly in the given period, it shall be open for the Commissioner/Chief Municipal Officer/Engineer in Charge to get the defect(s) rectified either departmentally or through other agency (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent) of such cost from the contractor from any sum, in any form, and available with the department or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned breach that gave rise to the contractor subject right to enforce the satisfaction of the Executive EngineerPerformance Guarantee.

Performance Guarantee. (i) 21.1 For All Agencies including MSME Registered Firms 21.2 The contractor total performance guarantee shall also be responsible for performance of work carried out by him for a period of 12 (Twelve) month beyond remain with IWAI till the completion of work for which performance security has to be furnished by him @ 5%(five percent)of amount of contract. For this purpose contractor has to submit to the department a Bank Guarantee of 5% amount contract or the payment of the value of work done on every running and final bill payable in accordance with agreement conditions whichever is later, provided the employer is satisfied that there is no demand outstanding against the agency. 21.3 If the agency neglects to him. If contractor observe or fails to submit perform any of his obligations under the contract, it shall be lawful for the Employer to forfeit either in whole or in part, the performance bank guarantee of 5% amount of furnished by the ▇agency. However, if the agency duly performs and completes the contract in all respects and presents in absolute "NO DEMAND CERTIFICATE”, ▇▇▇▇ ▇▇▇▇shall release the bank guarantee to the agency after deduction of cost and expenses that the Employer may have incurred and other money including all losses and damages which the Employer is entitled to recover from the agency. 21.4 In case of delay in the progress of work, then 5% the employer shall issue to the agency a memo in writing pointing out the delay in progress and calling upon the agency to explain the causes for the delay within 3 days of receipt of the memo and 10 days from issuance of memo whichever is earlier. If the employer is not satisfied with the explanations offered, he may forfeit the performance bank guarantee and / or withhold payment of pending bills in whole or in part and/ or get the measures of rectification of progress of work accelerated to the pre-defined level at the risk and cost of the agency. The Chairperson Inland waterways Authority of India Ministry of Shipping, Govt. of India A-13, Sector-1, Noida(U.P.) Pin- 201301 In consideration of the (hereinafter called “Employer”) having to enter into an Agreement with M/s (hereinafter called the “Agency”) as a follow up to the Letter of Acceptance no…………dated…………… issued by the Employer for Empanelment of Advertising Agencies for release of advertisement in Print Media, on production of Performance security in the form of Bank Guarantee for INR ………….. (Rupees……………..only), at the request of ……….. Agency, We, (Bank) do hereby undertake to pay to the Employer an amount not exceeding INR.………………………… (Rupees-----------only) against any default or failure on the part of bill Agency to perform the contract in accordance with terms & conditions or any breach of the said Agreement. 1. We, (Bank) do hereby undertake to pay the amount due and payable under this Guarantee without any demur, merely on a demand from the Employer stating that the amount claimed is due by way of loss or damage caused to or would be caused to or suffered by the Employer by reason of breach by the said Contract or any of the terms or conditions contained in the said time frame or by reason of the Agency’s failure to perform the said Agreement. Any such demand made on the Bank shall be deducted from his running conclusive as regards the amount due and final bill paymentpayable by the Bank under this guarantee. However, our liability under this guarantee shall be restricted to an amount not exceeding INR.…………. (Rupees only). 2. We, (Bank) undertake to pay the contractor can get refund Employer any money so demanded notwithstanding any dispute or disputes raised by the Agency in any suit or proceeding pending before any court or Tribunal relating thereto, liability under this present being absolute and unequivocal. The payment so made by us under this guarantee shall be valid discharge of our liability for payment there under and the Agency shall have no claim against us for making such performance cash security amount deducted if he submits appropriate bank payment. 3. We, (Bank) further agree that the guarantee valid for herein contained shall remain in full force and effect till completion of project work to the period as stated above or 12 (Twelve) month after actual completion. If require, the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period complete satisfaction of the Bank Guarantee(sEmployer in terms of conditions of contract and Letter of Acceptance and that it shall continue to be enforceable till all the dues of the Employer under or by virtue of the said Agreement have been fulfilled and its claim satisfied or till the scheduled date of completion of Works as per the Agreement. We(Bank) for such period which he considers it proper shall consider that the terms and conditions of the contractor shall extend said Agreement have been fully and properly carried out by the validity period said Agency and accordingly discharge this Guarantee after 60 days from the date of such Bank completion of the said contract unless a demand or claim under this Guarantee accordingly. If is served by the contractor fails to extend Employer in writing on the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. bank but before the expiry of the validity period. (ii) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable said period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) Failure of the contractor to rectify the defects properly in the given period, which case it shall be open enforceable against the bank notwithstanding the fact that the same is enforced after the expiry of the said period or after the extended period as the case may be. 4. We (Bank) further agree with the Employer that the Employer shall have fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time or performance by the said Agency from time to time or to postpone for any time or from time to time any of the powers exercisable by the Employer against the said Agency and to forbear or enforce any of the terms and conditions relating to the said Agreement and we shall not be relieved from our liability by reason of any such variation, or extension being granted to the said Agency or for any forbearance, act or omission on the part of the Employer or any indulgence by the Employer to the said Agency or by any such matter or thing whatsoever which under the law relating to sureties would, but for the Commissioner/Chief Municipal Officer/Engineer in Charge provision, have effect of so relieving us. 5. It shall not be necessary for the Employer to get proceed against the defect(s) rectified either departmentally Agency before proceeding against the Bank and the guarantee herein contained shall be enforceable against the bank notwithstanding any security which the Employer may have obtained or through other agency (without calling any tender /quotationobtain from the Agency at the time when proceedings are taken against the bank hereunder be outstanding or unrealized. 6. Notwithstanding anything contained herein above our liability under the guarantee is restricted to INR…….(Rupees…………….. only) and recover shall remain in force until ……. or otherwise until the actual cost plus 15 % extended date by the Employer. Unless a claim or suit under this guarantee is filed with us on or before or the extended date All our rights under the Guarantee shall be forfeited and the bank shall be relieved and discharged from all liabilities therein. 7. This Guarantee will not be discharged due to the change in the constitution of the Bank or the Agency. 8. We, (fifteen percentBank) of such cost from the contractor from any sum, in any form, and available lastly undertake not to revoke this Guarantee during its currency except with the department previous consent of the Employer in writing. Dated the ……….. of 2017 for …………………………….. Signature………………………….. Name of the Officer …………………………… (In Block Capitals) Designation Code No. ………………………………….. Name of the bank and Branch (SEAL) This agreement made on this…….day of……..Two thousand Seventeen between Inland Waterways Authority of India, A – 13, Sector – 1, Noida - 201 301, U.P. (hereinafter called the “IWAI” which expression shall unless excluded by or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned repugnant to the contractor subject context be deemed to include their successor in office) on the one part and M/S…………………………..having its office at (hereinafter called “Agency“ which expression shall unless excluded by or repugnant to the satisfaction of context be deemed to include their heirs, executors, administrators, representatives and assigns or successor in office) on the Executive Engineerother part.

Performance Guarantee. (ia) The contractor shall also Bidder will be responsible for performance required to furnish a Security Deposit/Performance Guarantee equal to five percent of work carried out contract value by him way of Bank Guarantee through a public sector bank or a private sector bank authorized to conduct government business for a period sum as specified in the acceptance of 12 (Twelve) month beyond Tender Note within 30 days of receipt of the completion of work for which performance security has to be furnished by him @ 5%(five percent)of amount confirmed order or before the commencement of contract. For this purpose contractor has to submit , whichever is earlier (or within such extended time as may at the sole discretion of the Govt be granted to the department a Bank Guarantee of 5% amount of Bidder/ Firm/ Vendor by the value of work done on every running and final bill payable to him. If contractor fails to submit bank guarantee of 5% amount of the ▇▇▇▇▇ ▇▇▇▇, then 5% amount of bill shall be deducted from his running and final bill payment. However, the contractor can get refund of such performance cash security amount deducted if he submits appropriate bank guarantee valid for the period as stated above or 12 (Twelve) month after actual completion. If require, the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period of the Bank Guarantee(s) for such period which he considers it proper and the contractor shall extend the validity period of such Bank Guarantee accordingly. If the contractor fails to extend the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. before the expiry of the validity periodcontract sanctioning authority). (iib) Performance Bank Guarantee (PBG) should be valid up to six months beyond the date of completion of contractual obligations. The contractor shall have to carry deposit receipts should be made out all necessary "Rectification" in favour of defects noticedCDA, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from Patna. A format of the Commissioner/Chief Municipal Officer/ Engineer in Charge to himPBG is also attached. (iiic) Failure In case of non submission of performance Guarantee in full by due date, The contract operating officer may, however, at his discretion make good the amount required by deducting the same from bills outstanding in favour of the contractor to rectify the defects properly in the given period, it shall be open for the Commissioner/Chief Municipal Officer/Engineer in Charge to get the defect(s) rectified either departmentally or through other agency (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent) of such cost from the contractor from any sum, in any form, and available firm with the department dependent Supply Depot or PCDA concerned. (d) The Buyer has the right to invoke the performance security deposit in case of any breach of the contract by the Seller or by not delivering the stores by the due dates. (e) The seller will have to refund to the government any claim under the warranty clause and other claim(s) that may arise out or under this contract as soon as a demand to that effect is made by the contract sanctioning officer, failing which such claims will be recovered by adjustment against the performance security deposits. Should this sum be not sufficient to cover the full amount recoverable, the seller shall pay the remaining balance due to the government on demand. (f) The performance security deposit as per this contract can be recovered as "Arrears of Land Revenue"adjusted by the Government if there is any claim whatsoever against the seller relating to this contract or otherwise. (ivg) After One years Performance Guarantee or any balance thereof remaining at the end of completion of construction, Amount of available performance Bank guarantee the contract shall not be returned to the contractor subject seller until their accounts have been finally audited and settled and until the seller has executed the usual ‘No Demand Certificate’. (h) The performance security deposit will be refunded to the satisfaction seller only after the completion of the Executive Engineercontract in all respect and on submission of ‘No Demand Certificate’ obtainable from Contract Operating Officer by the seller.

Performance Guarantee. 7.1 Within thirty (i30) days of the Effective Date, the Concessionaire shall provide to the Developer an on-demand bank guarantee in the amount of ................................................., issued by a financial institution acceptable to the Developer. 7.2 The contractor Performance Guarantee (in accordance with the provisions hereof) shall also be responsible for valid from the date of issue until ninety (90) Business Days after the expiry or earlier termination of this Concession Contract. 7.3 Within ninety (90) Business Days of the expiry or earlier termination of this Concession Contract, the Developer shall release all or so much of the Performance Guarantee as shall remain undrawn after such expiry or termination. 7.4 The Performance Guarantee shall secure:- 7.4.1 the Concessionaire’s performance under this Concession Contract and may be called on by the Developer to the extent of work carried out any costs, losses, damages or expenses suffered or incurred by him for the Developer as a result of any breach by the Concessionaire of this Concession Contract, including but not limited to failure of the concessionaire to effect payments of any concession fee or levy pursuant to clause 9 below; and 7.4.2 the Concessionaire’s obligation referred to in clause 7.1 above may be called on by the Developer to offset any costs or expenses which may be required to restore the Improvements to a standard and quality which is reasonably acceptable to the Developer. 7.5 Prior to enforcing the Performance Guarantee, the Developer shall give notice to the Concessionaire, informing the Concessionaire of the breach giving rise to the right of enforcement of the Performance Guarantee and requesting the Concessionaire to remedy the breach within twenty (20) Business Days (or such other period as the Developer, in its sole discretion, may deem appropriate under the circumstances). If such breach is not remedied within the specified period, the Developer may enforce the Performance Guarantee. 7.6 The Performance Guarantee may only be enforced to the extent of 12 (Twelve) month beyond the completion of work for which performance security has any quantifiable costs, losses, damages or expenses suffered or incurred and / or reasonably expected to be furnished by him @ 5%(five percent)of amount suffered or incurred as a result of contract. For this purpose contractor has to submit the breach that gave rise to the department a Bank Guarantee of 5% amount of right to enforce the value of work done on every running and final bill payable to him. If contractor fails to submit bank guarantee of 5% amount of the ▇▇▇▇▇ ▇▇▇▇, then 5% amount of bill shall be deducted from his running and final bill payment. However, the contractor can get refund of such performance cash security amount deducted if he submits appropriate bank guarantee valid for the period as stated above or 12 (Twelve) month after actual completion. If require, the Commissioner/ Chief Municipal Officer shall ask the contractor to extend the validity period of the Bank Guarantee(s) for such period which he considers it proper and the contractor shall extend the validity period of such Bank Guarantee accordingly. If the contractor fails to extend the period accordingly, the Commissioner/ Chief Municipal Officer shall encash the B.G. before the expiry of the validity periodPerformance Guarantee. (ii) The contractor shall have to carry out all necessary "Rectification" of defects noticed, caused due to any reasons at his own cost within such reasonable period mentioned in such communication notice from the Commissioner/Chief Municipal Officer/ Engineer in Charge to him. (iii) Failure of the contractor to rectify the defects properly in the given period, it shall be open for the Commissioner/Chief Municipal Officer/Engineer in Charge to get the defect(s) rectified either departmentally or through other agency (without calling any tender /quotation) and recover the actual cost plus 15 % (fifteen percent) of such cost from the contractor from any sum, in any form, and available with the department or can be recovered as "Arrears of Land Revenue" (iv) After One years of completion of construction, Amount of available performance Bank guarantee shall be returned to the contractor subject to the satisfaction of the Executive Engineer.