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Annex B EXAMPLE FORM OF TENDER SECURITY

This document provides an example form of a tender security for a construction contract. The 3 sentence summary is: The form outlines that a bank will irrevocably undertake to pay the employer, as beneficiary, any sum up to a specified amount if the principal withdraws their offer after submission, refuses corrections to errors in their offer, or fails to deliver a performance security after being awarded the contract. Any demand for payment from the employer must contain authenticated signatures and be received by the bank within 35 days of the offer's validity expiring, at which point the guarantee expires.

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69 views

Annex B EXAMPLE FORM OF TENDER SECURITY

This document provides an example form of a tender security for a construction contract. The 3 sentence summary is: The form outlines that a bank will irrevocably undertake to pay the employer, as beneficiary, any sum up to a specified amount if the principal withdraws their offer after submission, refuses corrections to errors in their offer, or fails to deliver a performance security after being awarded the contract. Any demand for payment from the employer must contain authenticated signatures and be received by the bank within 35 days of the offer's validity expiring, at which point the guarantee expires.

Uploaded by

sktung
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Annex B EXAMPLE FORM OF TENDER SECURITY

[See page 4]

Brief description of Contract ………………………………………………………………………...

Name and address of Beneficiary …………………………………………………………………...

………………………………………….. (whom the tender documents define as the Employer)

We have been informed that (hereinafter called the "Principal") is submitting an offer for
such Contract in response to your invitation, and that the conditions of your invitation (the
"conditions of invitation", which are set out in a document entitled Instructions to Tenderers)
require his offer to be supported by a tender security.

At the request of the Principal, we (name of bank) ……………………….. hereby irrevocably


undertake to pay you, the Beneficiary/Employer, any sum or sums not exceeding in total the
amount of ………………….. (say: …………………………) upon receipt by us of your
demand in writing and your written statement (in the demand) stating that:

(a) the Principal has, without your agreement, withdrawn his ofer after the latest time
specified for its submission and before the expiry of its period of validity, or

(b) the Principal has refused to accept the correction of errors in his offer in accordance
with such conditions of invitation, or

(c) you entered into the Contract with the Principal and he has failed to deliver a
performance security complying with sub-clause 4.2 of the conditions of the Contract.

Any demand for payment must contain your signature(s) which must be authenticated by
your bankers or by a notary public. The authenticated demand and statement must be
received by us at this office on or before (the date 35 days after the expiry of the validity of
the Letter of Tender) ……………………., when this guarantee shall expire and shall be
returned to us.

This guarantee is subject to the Uniform Rules for Demand Guarantees, published as
number 458 by the International Chamber of Commerce, except as stated above.

Date ……………………. Signature(s) ………………………………………..

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