Common use of The Performance Guarantee Clause in Contracts

The Performance Guarantee. 20.1.1. For securing the fulfillment of the Supplier’s obligations under the Contract and as a precondition for the execution of the Contract and the performance of the Works, the Supplier shall submit (at its own cost) to MWC a bank guarantee in the amount of ten percent (10%) of the Fixed Lump Sum (herein above and after: the "Performance Guarantee"). 20.1.2. The Performance Guarantee shall be in the form attached hereto as Appendix F(1) (Performance Guarantee). The Performance Guarantee shall be valid, to the order of MWC, and remain in effect from the Signature Date until it is replaced with the Warranty Guarantee, in accordance with the provisions of Section 17. 20.1.3. The Performance Guarantee shall serve to secure the Supplier's timely, leading standard, complete and comprehensive compliance with all warranties, representations, obligations and undertakings under the Contract Documents. 20.1.4. In the event MWC draws down on the Performance Guarantee or any part thereof, then the Supplier shall restore the Performance Guarantee to its original sum at the same terms and conditions within seven (7) days. 20.1.5. The Supplier shall be entitled to adjust the amount of the Performance Guarantee in the event the Contract Price is decreased in accordance with the provisions of the Contract. All costs associated with such adjustment shall be at the Supplier’s full and sole responsibility. 20.1.6. The Supplier shall be required to adjust the amount of the Performance Guarantee with each increase of the Contract Price, at the Supplier’s costs.