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This document provides a template for a bank guarantee towards contract performance. It outlines that a nationalized bank will unconditionally guarantee payment of up to a specified amount if the vendor fails to meet the obligations of a contract awarded by Tata Projects Limited. The bank guarantee is intended to ensure due performance of the contract and any contractual obligations by the vendor. The guarantee would remain in force for the duration of the contract completion and delivery period, with the option to further extend the guarantee if needed.

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Amitava Sil
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
847 views

CPBG Format

This document provides a template for a bank guarantee towards contract performance. It outlines that a nationalized bank will unconditionally guarantee payment of up to a specified amount if the vendor fails to meet the obligations of a contract awarded by Tata Projects Limited. The bank guarantee is intended to ensure due performance of the contract and any contractual obligations by the vendor. The guarantee would remain in force for the duration of the contract completion and delivery period, with the option to further extend the guarantee if needed.

Uploaded by

Amitava Sil
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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PROFORMA OF BANK GUARANTEE TOWARDS CONTRACT PERFORMANCE

(To be executed by the Branch/Office in Hyderabad, India of a Nationalised Bank on behalf of Vendor /
Contractor on Stamp Paper of value Rs.100/- obtained in the name of issuing bank)

Tata Projects Limited Bank Guarantee No.____________


Registered Office:
“Mithona Towers-1” Date _______ Value Rs._________
H.No.1-7-80 to 87 Valid till ______________________
Opp. Wesley Co-Ed Jr.College Claim period of Six months
Prenderghast Road Till _________________________
SECUNDERABAD – 500 003

Your Letter of Intent / Order / Contract No.________________dt.__________________


Awarded by you to M/s.___________________________________________________

Bank Guarantee towards CONTRACT PERFORMANCE

Dear Sirs,

WHEREAS Messers ___________________________________(Name and address), having Registered


Office at _______________________________________________
_______________________________________(hereinafter called ‘The Vendor / Contractor”) has been
awarded a Letter of Intent / Order / Contract No._____________ dated ________________________, by
Tata Projects Limited, Registered Office: “Mithona Towers-1” H.No.1-7-80 to 87 Opp. Wesley Co-Ed
Jr.College Prenderghast Road, SECUNDERABAD – 500 003 (hereinafter called “Client”) AND WHEREAS
in accordance with the terms of the said Letter of Intent / Order / Contract, the Vendor / Contractor has to
furnish a Contract Performance Guarantee for Rs._______________ (Rupees
_____________________________________________
_____________________________________________________________________) guaranteeing the
due performance / execution of the Letter of Intent / Order Contract Agreement and due performance and
warranty of the works done and / or equipment supplied under Letter of Intent / Order / Contract Agreement
and all the contractual obligations by the Vendor / Contractor and WHEREAS at the request of the Vendor /
Contractor the Client has agreed to accept a Bank Guarantee from
________________________(hereinafter called “the Bank”).

In Consideration of the premises, we ________________________________________


(Name / Address of the Bank), hereby irrevocably and unconditionally undertake to pay to you on demand
an amount not exceeding Rs.______________(Rupee ___________
___________________________________________________) on receipt of your intimation that the
VENDOR / CONTRACTOR has for any reason failed to comply with any of the terms and conditions of the
said Letter of Intent / Order / Contract and any such demand made by you on the bank shall be paid without
any demur, reservation, contest, recourse or protest and / or without any reference to the VENDOR /
CONTRACTOR and such demand made by you on our bank shall be conclusive and binding
notwithstanding any difference between you and the VENDOR / CONTRACTOR or any dispute pending
before any Court, Tribunal or Arbitrator.

PROVIDED ALWAYS that the Bank’s liability to the Client to make payment of any amount or amounts not
exceeding Rs._______________ as herein stated shall be and remain in force till
_______________________ and shall be extended by any further period by which virtual completion /
delivery of the Letter of Intent / Order / Contract is extended by the Client. The Bank agrees to make
further extension to this guarantee, if required by Client.

This guarantee shall not be revoked without your express written consent and shall not be affected by your
granting time or any other indulgence to the contractor, which shall include but not be limited to
postponement from time to time of the exercise of any powers vested in you or any right which you may
have against the VENDOR / CONTRACTOR and to exercise the same in any manner at any time and
either to enforce or forbear to enforce any covenant contained or implied in the said Letter of Intent / order /
Contract or any other recourse or remedy or security available to you and our Bank shall not be released
from its obligations under this guarantee by your exercising any of your rights with reference to matters
aforesaid or any of them or by reason of any other act or forbearance or other acts of omission or
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commission on your part or any other indulgence shown by you or by any other matter or thing whatsoever
which under law would, but for this provision, have the effect of relieving our Bank from its obligations under
this guarantee.

We also agree that you shall be entitled at your option to enforce this guarantee against our Bank as
principal debtor, in the first instance without proceeding against the Vendor / Contractor and
notwithstanding any other security or guarantee that you may have in relation to the Vendor / Contractor’s
liabilities in respect of the premises.

This guarantee shall not be affected by any change in the constitution of our Bank or the Vendor /
Contractor or for any other reason whatsoever.

That the expressions “The Vendor / Contractor”, “The Bank”, Tata Projects Limited” and “Client”, herein
used shall, unless such an interpretation is repugnant to the subject or context, include their respective
successors and assignees.

Not withstanding anything contained above, the Bank’s liability under this Guarantee is restricted to
Rs.________________________(Rupees __________________________
_____________________________________________________________________) and the guarantee
shall be in force till _____________________ or till such period as may be extended by the Bank. Unless
a demand or claim under this guarantee is made on us on or before the expiry of six months from the
aforesaid date, we shall be relieved and discharged from all our obligations hereunder.

IN WITNESS WHEREOF the undersigned being duly authorised by the Directors of the Bank has hereinto
set his hand on this _______________day of ______________20___ .

Yours faithfully
For and on behalf of (name
and address of the Bank) ________________________________________

Name of the official signing ________________________________________

Designation of the official


Signing ________________________________________

Signature ________________________________________

Official seal of the Bank ________________________________________

Date :

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