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Homepage (/) ... Appendix 5, Annex G: Example Form of Payment Guarantee By Employer

Appendix 5, Annex G: Example Form of Payment Guarantee By Employer

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Author: Christopher R. Seppälä

Publication: The FIDIC Red Book Contract: An International Clause-by-Clause Commentary (/document/The FIDIC Red Book Contract: An
International Clause-by-Clause Commentary)

Organization: International Federation of Consulting Engineers

Bibliographic 'Appendix 5, Annex G: Example Form of Payment Guarantee By Employer', in Christopher R. Seppälä, The FIDIC Red Book
Reference: Contract: An International Clause-by-Clause Commentary, (© Kluwer Law International; Kluwer Law International 2023), pp. 1383
- 1384

Guarantee No.: [insert guarantee reference number]

The Guarantor: [insert name and address of place of issue, unless indicated in the letterhead]

Name of Contract/Contract No.: [insert reference number or other information identifying the contract between the Applicant and the
Beneficiary on which the guarantee is based]

The Beneficiary (the “Contractor”): [insert name and address of the Beneficiary]

We have been informed that [insert name and address of the Employer] (hereinafter called the “Applicant”) is required to obtain a
bank guarantee.

At the request of the Applicant, we [insert name of Guarantor] hereby irrevocably undertake to pay you, the Beneficiary/Contractor,
any sum or sums not exceeding in total the amount of [insert in figures and words the maximum amount payable and the currency in
which it is payable] upon receipt by us of your demand in writing and your written statement that:

(a) in respect of a payment due under the Contract, the Applicant has failed to make payment in full by the date fourteen days after
the expiry of the period specified in the Contract as that within which such payment should have been made, and

(b) the amount(s) which the Applicant has failed to pay.

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Any demand for payment must be accompanied by a copy of [insert list of documents evidencing entitlement to payment and the
language in which these documents are to be submitted], in respect of which the Applicant has failed to make payment in full.

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 the following office [address of office] on or before [insert the date
six months after the expected expiry of the Defects Notification Period for the Works] when this guarantee shall expire.

The party liable for the payment of any charges: [insert the name of the party].

This guarantee shall be governed by the laws of [insert the law governing the guarantee] and shall be subject to the Uniform Rules
for Demand Guarantees (URDG) 2010 Revision, ICC Publication No. 758.

SIGNED by: (signature) SIGNED by(1): (signature)

(name) (name)

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Date:

(1) Whether one or more signatories for the bank are required will depend on the bank and/or applicable law.

--ooOOoo--

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