Form-3 Bank Guarantee for Performance Security [This is the format for the Performance Security to be issued by any financial institute in Bhutan in accordance with ITB Clause 35] ContractNo: Date: To: [Name and address of Employer] PERFORMANCE GUARANTEE No: We have been informed that (hereinafter called Contractor”) has undertaken, pursuant to [name of Contractor] “the Contract No dated (hereinafter called Contract”), the execution of [reference number of Contract] [date of Contract] “the works under the Contract. [description of works] Furthermore, we understand that, according to your conditions, Contracts must be supported by a performance guarantee. At the request of the Contractor, we hereby irrevocably undertake to pay you, without or argument, [name of bank] any sum or sums not exceeding in total an amount of Nu upon receipt by us of [insert amount in figures and in words] your first written demand accompanied by a written statement that the Contractor is in breach of its obligation(s) under the Contract conditions, without you needing to prove or show grounds or reasons for your demand of the sum specified therein. This guarantee is valid until consequently, we must receive at the above- mentioned office [date of validity of guarantee], any demand for payment under this guarantee on or before that date. Signature Signature
Form-3 Bank Guarantee for Performance Security [This is the format for the Performance Security to be issued by any financial institute in Bhutan in accordance with ITB Clause 35] ContractNo: Date: To: [Name and address of Employer] PERFORMANCE GUARANTEE No: We have been informed that [name of Contractor] (hereinafter called “the Contractor”) has undertaken, pursuant to Contract No [reference number of Contract] dated [date of Contract] (hereinafter called “the Contract”), the execution of works [description of works] under the Contract. Furthermore, we understand that, according to your conditions, Contracts must be supported by a performance guarantee. At the request of the Contractor, we [name of bank] hereby irrevocably undertake to pay you, without or argument, any sum or sums not exceeding in total an amount of Nu [insert amount in figures and in words] upon receipt by us of your first written demand accompanied by a written statement that the Contractor is in breach of its obligation(s) under the Contract conditions, without you needing to prove or show grounds or reasons for your demand of the sum specified therein. This guarantee is valid until [date of validity of guarantee], consequently, we must receive at the above- mentioned office any demand for payment under this guarantee on or before that date. Signature Signature
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