Common use of PERFORMANCE BANK GUARANTEE Clause in Contracts

PERFORMANCE BANK GUARANTEE. a. The Consulting Agency shall provide an unconditional and irrevocable Performance Bank Guarantee (“PBG”) as mentioned in section 4.4 b. The PBG is to be submitted after the issue of the Offer Letter and before release of first or any payment under this Contract. On submission of PBG and accepted by the SIDBI, EMD would be released. If the PBG is not submitted within the time stipulated by SIDBI, then SIDBI reserve the right to cancel the order and forfeit the EMD. c. In the event of non-performance of obligation or failure to meet terms of this Contract, SIDBI shall be entitled to invoke the PBG without notice or right of demur to Consulting Agency. d. Notwithstanding anything to the contrary contained in the contract, SIDBI shall be at liberty to invoke the Performance Bank Guarantee in addition to other remedies available to it under the contract / order or otherwise if the Consulting Agency fails to fulfill any of the terms of contract / order or commits breach of any terms and conditions of the contract. e. The time shall be the essence of the contract / order; therefore, no extension of time is anticipated, but if untoward or extraordinary circumstances should arise beyond the control of the Consulting Agency , which in the opinion of SIDBI should entitle the Consulting Agency to a reasonable extension of time, such extension may be considered by SIDBI at its sole and absolute discretion, however such extension shall not operate to relieve the Bidder of any of its obligations. SIDBI shall not be liable for any extra financial commitment due to such extension of time. In case of any such extension, the Consulting Agency would be required to extend the validity period of the performance guarantee accordingly. f. The Consulting Agency shall be responsible for extending the validity date and claim period of the Bank guarantees as and when it is due or if required. In the event, the PBG is not extended prior to its expiry under the Contract, then SIDBI shall have the right to invoke the PBG.

PERFORMANCE BANK GUARANTEE. a. The Consulting Agency shall provide an unconditional and irrevocable Performance Bank Guarantee (“PBG”) as mentioned in section 4.4the form and manner provided by the SIDBI equivalent to 8% of the Contract Price from a scheduled commercial bank having its office in Mumbai. The performance guarantee will be valid till Completion Date with claim period of (1 year). b. The PBG is to be submitted after the issue of the Offer Letter and before release of first or any payment under this Contract. On submission of PBG and accepted by the SIDBI, EMD would be released. If the PBG is not submitted within the time stipulated by SIDBI, then SIDBI reserve the right to cancel the order and forfeit the EMDorder. c. In the event of non-performance of obligation or failure to meet terms of this Contract, SIDBI shall be entitled to invoke the PBG without notice or right of demur to Consulting Agency. d. Notwithstanding anything to the contrary contained in the contract, SIDBI shall be at liberty to invoke the Performance Bank Guarantee in addition to other remedies available to it under the contract / order or otherwise if the Consulting Agency fails to fulfill any of the terms of contract / order or commits breach of any terms and conditions of the contract. e. The time shall be the essence of the contract / order; therefore, no extension of time is anticipated, but if untoward or extraordinary circumstances should arise beyond the control of the Consulting Agency , which in the opinion of SIDBI should entitle the Consulting Agency to a reasonable extension of time, such extension may be considered by SIDBI at its sole and absolute discretion, however such extension shall not operate to relieve the Bidder of any of its obligations. SIDBI shall not be liable for any extra financial commitment due to such extension of time. In case of any such extension, the Consulting Agency would be required to extend the validity period of the performance guarantee accordingly. f. The Consulting Agency shall be responsible for extending the validity date and claim period of the Bank guarantees as and when it is due or if required. In the event, the PBG is not extended prior to its expiry under the Contract, then SIDBI shall have the right to invoke the PBG.