In order to ensure:-
• The Timely Commencement and Completion of the Services by Contractor as required under the Contract, and
• That Contractor will carry out all other obligation in accordance with the terms of the Contract.
Contractor shall provide Company with a performance bond of sum of USD. 1,000,000.00 (US Dollars One Million Only) namely, 10% of the Lump Sum element of the Contract price of USD 10,000,000.00 (US Dollars Ten Million Only)
This guarantee shall come into force from the date of issue, and shall remain valid for the full amount until we receive the Company’s written declaration that it has issued the Certificate for Completion of the Work in Accordance with the Contract Thereafter. This Guarantee shall remain valid for 24 months i.e. 2/4/2016 for the amount of USD. 500,000.00 namely 5%$ of the Lump Sum element of the Contract Price.
We the undersigned bank, hereby irrevocably, unconditionally and independently guarantee to pay to the company within 5 (five) days upon your first written any amount up to prevailing amount of the bond, against your written declaration that Contractor, despite having been summoned in writing, has not carried out an obligation under the terms of the Contract.
This guarantee cannot be assigned unless otherwise set out in this guarantee, capitalized terms used in this guarantee shall be defined as in the Contract.
The bank shall be released in relation to the beneficiary if a demand from the beneficiary for payment does not reach us within the validity period of the letter of guarantee, unless it is expressly agreed prior to the coming to an end of such period that the same is to be renewed.
For Bank Muscat SAOG
AUTHORISED SIGNATORIES.