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    Appendix 7 Form of Performance Bond: (On Bank'S Letterhead)

    Uploaded by

    Ng Chia Shen
    This document is a performance bond provided by a bank to China Communications Construction (ECRL) Sdn. Bhd. for a subcontractor. The bank agrees to pay up to 5% of the subcontract sum if the subcontractor breaches its obligations. The bond is valid until 30 days after the defects liability period expires. China Communications can make a written demand for payment by stating the subcontractor's breach and amount claimed.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Appendix 7 Form of Performance Bond: (On Bank'S Letterhead)

    Uploaded by

    Ng Chia Shen
    49 views2 pages
    This document is a performance bond provided by a bank to China Communications Construction (ECRL) Sdn. Bhd. for a subcontractor. The bank agrees to pay up to 5% of the subcontract sum if the subcontractor breaches its obligations. The bond is valid until 30 days after the defects liability period expires. China Communications can make a written demand for payment by stating the subcontractor's breach and amount claimed.

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    Original Title

    1.7 Appendix 7 -

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    This document is a performance bond provided by a bank to China Communications Construction (ECRL) Sdn. Bhd. for a subcontractor. The bank agrees to pay up to 5% of the subcontract sum if the subcontractor breaches its obligations. The bond is valid until 30 days after the defects liability period expires. China Communications can make a written demand for payment by stating the subcontractor's breach and amount claimed.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    49 views2 pages

    Appendix 7 Form of Performance Bond: (On Bank'S Letterhead)

    Uploaded by

    Ng Chia Shen
    This document is a performance bond provided by a bank to China Communications Construction (ECRL) Sdn. Bhd. for a subcontractor. The bank agrees to pay up to 5% of the subcontract sum if the subcontractor breaches its obligations. The bond is valid until 30 days after the defects liability period expires. China Communications can make a written demand for payment by stating the subcontractor's breach and amount claimed.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    Appendix 7 FORM OF PERFORMANCE BOND

    [ON BANK’S LETTERHEAD]

    To:

    CHINA COMMUNICATIONS CONSTRUCTION (ECRL) SDN. BHD.

    [insert address]

    Dear Sirs,

    ON DEMAND PERFORMANCE BOND FOR THE SUBCONTRACT RELATING TO THE EAST


    COAST RAIL LINK PROJECT

    1. We understand that you entered into a Subcontract for works in relation to the East Coast
    Rail Link Project with the Subcontract No. [# insert Subcontract No.] dated [insert date]
    (“Subcontract”) with [insert name of Subcontractor], a company incorporated under the
    laws of Malaysia and having its registered office at [insert address] and having a
    correspondence address at [insert Section site office address] (“Subcontractor”) and that
    under the Subcontract you require an on demand bond for [5%] of the Subcontract Sum
    amounting to [# insert sum in figure (# insert sum in words) ] (“Bond Amount”) in
    respect of the Subcontractor’s performance of the Subcontract.

    2. We [insert name of bank] irrevocably and unconditionally undertake to pay within 5


    business days, as primary obligor, to you a sum or sums (when aggregated with any
    amount previously so paid) not exceeding the Bond Amount:

    (i) upon receipt of your first written demand;

    (ii) waiving all rights of objection and defence;

    (iii) without any reference, notice or claim to the Subcontractor and notwithstanding
    any notice given by the Subcontractor to us not to pay that sum or sums; and

    (iv) without any right of set-off or counterclaim.

    3. Your written notice demanding payment must state:

    (i) that the Subcontractor is in breach of its obligation(s) under the Subcontract and a
    description of such breach;

    (ii) the amount for which payment is demanded; and

    A7 – 1
    (iii) the name of the bank and account number to which payment is to be made.

    We shall accept such demand as evidence, for the purposes of this bond, that the sum
    claimed is due to you under this bond.

    4. Any payment by us in accordance with this bond will be in immediately available and freely
    transferable funds in Ringgit Malaysia, free and clear of and without any deduction for, or
    on account, of any present or future taxes, levies, imposts, duties, charges, fees, set off,
    counterclaims, deductions or withholdings of any nature whatsoever and by whomever
    imposed.

    5. This bond is valid from the date of issuance and will continue to be valid until the date 30
    days after the expiry of the Defects Liability Period i.e [date to be inserted] (the “Expiry
    Date”) when the bond shall expire. Any demand for payment under this bond must be
    received by us at our address stated below no later than 5 p.m. on the Expiry Date. Our
    obligations hereunder shall automatically become null and void on the Expiry Date
    regardless of whether the original of this bond is returned to us.

    6. We may at any time, without being required to do so, pay to you the Bond Amount less
    any amount we have previously paid under this bond. After such payment, our liability
    under this bond shall cease.

    7. This bond is personal to you and may not be assigned nor transferred by you to any
    person, firm or company, without our prior written consent which must not be
    unreasonably withheld. Notwithstanding the foregoing, we hereby consent to you
    assigning this bond to the security agent appointed by your lenders if it is required by your
    lenders. We undertake that upon our receipt of your notification to us in writing, we will
    acknowledge receipt thereof.

    8. Any notice required by this bond or any demand for payment must be:

    (i) made by registered mail with acknowledgment of receipt; or

    (ii) delivered by hand,

    to us at the following address: [specify address].

    9. This bond is subject to and shall be construed in accordance with the laws of Malaysia.
    The parties hereby submit to the exclusive jurisdiction of the courts of Malaysia.

    Yours faithfully,

    ...............................................................

    [ ]

    For and on behalf of [bank]

    A7 – 2

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