We have been informed that . . . .

We have been informed that . . . . . [Name and address of the Subcontractor] . . . . (hereinafter called "the Subcontractor") has entered into Subcontract No. . . . .. [reference number of the Subcontract]. . . . . dated . . . . . . . .with you, for the execution of . . . . . . [Name of subcontract and brief description of Works] . . . .(hereinafter called "the Subcontract").

Furthermore, we understand that, according to the Conditions of the Subcontract, a performance guarantee is required.

At the request of the Subcontractor, we . . . . . [Name of the Bank]. . . . . hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of . . . . . [Name of the currency and amount in figures*]. . . . . . (. . . . . [Amount in words]. . . . ) such sum being payable in the types and proportions of currencies in which the Subcontract Price is payable, upon receipt by us of your first demand in writing accompanied by a written statement stating that the Subcontractor is in breach of its obligation(s) under the Subcontract, without your needing to prove or to show grounds for your demand or the sum specified therein.

This guarantee shall expire, no later than the [Day] of [Month], [Year] **, and any demand for payment under it must be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458, except that subparagraph (ii) of Sub-Article 20(a) is hereby excluded.









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Seal of Bank and Signature(s)



Note: All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.

* The Guarantor shall insert an amount representing the percentage of the Subcontract Price specified in the Subcontract and denominated either in the currency(ies) of the Subcontract or a freely convertible currency acceptable to the Contractor.

** Insert the date twenty-eight days after the expected completion date. The Contractor should note that in the event of an extension of the time for completion of the Subcontract, the Contractor would need to request an extension of this guarantee from the Guarantor. Such request must be in writing and must be made prior to the expiration date established in the guarantee. In preparing this guarantee, the Contractor might consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor agrees to a one-time extension of this guarantee for a period not to exceed [six months][one year], in response to the Contractor’s written request for such extension, such request to be presented to the Guarantor before the expiry of the guarantee.”
Advance Payment Security



………....… [Bank’s Name, and Address of Issuing Branch or Office]…………………


Beneficiary: ……..……Name and Address of Contractor ……………………………


Date: ……………………………………………

Advance Payment Guarantee No.: ………………………………………….

We have been informed that [Name and address of the Subcontractor] (hereinafter called "the Subcontractor") has entered into Subcontract No [reference number of the Subcontract] dated . . . . . . . with you, for the execution of [Name of subcontract and brief description of Works] (hereinafter called "the Subcontract").

Furthermore, we understand that, according to the Conditions of the Subcontract, an advance payment in the sum [Name of the currency and amount in figures*] ([amount in words]) is to be made against an advance payment guarantee.

At the request of the Subcontractor, we [name of the Bank] hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of [Name of the currency and amount in figures*] ([amount in words]) upon receipt by us of your first demand in writing accompanied by a written statement stating that the Subcontractor is in breach of its obligation under the Subcontract.

It is a condition for any claim and payment under this guarantee to be made that the advance payment referred to above must have been received by the Subcontractor on its account number [Subcontractor’s account number] at [Name and address of the Bank].

The maximum amount of this guarantee shall be progressively reduced by the amount of the advance payment repaid by the Subcontractor as indicated in copies of interim statements or payment certificates which shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy of the interim payment certificate indicating that eighty percent (80%) of the Subcontract Price has been certified for payment, or on the . . . day of . . . . . . . , . . . . .**, whichever is earlier. Consequently, any demand for payment under this guarantee must be received by us at this office on or before that date.

This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458.





. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Seal of Bank and Signature(s)



Note: All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.

* The Guarantor shall insert an amount representing the amount of the advance payment denominated either in the currency(ies) of the advance payment as specified in the Subcontract, or in a freely convertible currency acceptable to the Contractor.

** Insert the expected expiration date of the Time for Completion. The Contractor should note that in the event of an extension of the time for completion of the Subcontract, the Contractor would need to request an extension of this guarantee from the Guarantor. Such request must be in writing and must be made prior to the expiration date established in the guarantee. In preparing this guarantee, the Contractor might consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor agrees to a one-time extension of this guarantee for a period not to exceed [six months][one year], in response to the Contractor’s written request for such extension, such request to be presented to the Guarantor before the expiry of the guarantee.”