SECTION VII FORMS OF SECURITY

Section VII. Security Forms

Samples of acceptable forms of Tender, Performance, and Advance Payment Securities are provided
in this Section VII. Tenderers shall not complete the Performance and Advance Payment Security
forms at this stage of the procurement process. Only the successful Tenderer shall be required to
provide these to securities.
SECTION VII FORMS OF SECURITY
1. Form of Tender Security (Bank Guarantee)
(Not Applicable)
!If required, the "an#/Tenderer shall fill in this "an# $uarantee form in accordance ith the
instructions indicated in brac#ets.%
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!insert ban#'s name, and address of issuing branch or office%
Beneficiary: !insert name and address of Purchaser
Date: !insert date%
TENDER GUARANTEE No.: !insert number%
We have been informed that !insert name of the Tenderer( if a )oint venture, list complete legal names
of partners% (hereinafter called "the Tenderer") has submitted to you its tender dated !insert date%
(hereinafter called "the Tender") for the execution of !insert name of *ontract% under Invitation for
Tenders No. !insert I+" number% (the IFB).
Furthermore! "e understand that! accordin# to your conditions! Tenders must be su$$orted by a
Tender %uarantee.
&t the re'uest of the Tenderer! "e !insert name of ban#% hereby irrevocably underta(e to $ay you any
sum or sums not exceedin# in total an amount of !insert amount in figures e,pressed in the currency
of the Purchaser's *ountry or the equivalent amount in an international freely convertible currency%
(!insert amount in ords%) u$on recei$t by us of your first demand in "ritin# accom$anied by a
"ritten statement statin# that the Tenderer is in breach of its obli#ation(s) under the tender conditions!
because the Tenderer)
(a) has "ithdra"n its Tender durin# the $eriod of tender validity s$ecified by the
Tenderer in the Form of Tender* or
(b) does not acce$t the correction of errors in accordance "ith the Instructions to
Tenderers (hereinafter the ITB) of the IFB* or
(c) havin# been notified of the acce$tance of its Tender by the +urchaser durin# the $eriod
of tender validity! (i) fails or refuses to execute the ,ontract Form! if re'uired! or (ii)
fails or refuses to furnish the +erformance -ecurity! in accordance "ith the ITB.
This %uarantee shall ex$ire) (a) if the Tenderer is the successful tenderer! u$on our recei$t of co$ies
of the ,ontract si#ned by the Tenderer and of the +erformance -ecurity issued to you by the Tenderer*
or (b) if the Tenderer is not the successful tenderer! u$on the earlier of (i) our recei$t of a co$y of your
notification to the Tenderer that the Tenderer "as unsuccessful! or (ii) t"enty.ei#ht days after the
ex$iration of the Tenderer/s Tender.
,onse'uently! any demand for $ayment under this %uarantee must be received by us at the office on
or before that date.
This %uarantee is sub0ect to the 1niform 2ules for 3emand %uarantees! I,, +ublication No. 456.
_____________________________
!signature-s. of authorised representative-s. %
SECTION VII FORMS OF SECURITY
2. Form of Tender Security (Tender Bond)
(Not Applicable)
!If required, the Surety/Tenderer shall fill in this Tender "ond +orm in accordance ith the
instructions indicated in brac#ets.%
B7N3 N7. !insert "ond number%
B8 T9I- B7N3 !insert name of Tenderer( if )oint venture, insert complete legal names of partners%
as +rinci$al (hereinafter called the +rinci$al)! and !insert name, legal title, and address of Surety%,
authorise to transact business in the -olomon Islands, as -urety (hereinafter called the -urety)!
are held and firmly bound unto !insert name of contracting /inistry, Agency or authority of the
Purchaser% as 7bli#ee (hereinafter called the +urchaser) in the sum of !insert amount in figures
e,pressed in the currency of the Purchaser 's *ountry or the equivalent amount in an international
freely convertible currency% !insert amount in ords%! for the $ayment of "hich sum! "ell and truly
to be made! "e! the said +rinci$al and -urety! bind ourselves! our successors and assi#ns! 0ointly and
severally! firmly by these $resents.
W9:2:&- the +rinci$al has submitted a "ritten Tender to the +urchaser dated the !number% day of
!month%, !year%! for the construction of !insert name of *ontract% (hereinafter called the Tender).
N7W! T9:2:F72:! T9: ,7N3ITI7N 7F T9I- 7B;I%&TI7N is such that if the +rinci$al)
(<) "ithdra"s its Tender durin# the $eriod of tender validity s$ecified in the Form of Tender* or
(=) refuses to acce$t the correction of its Tender +rice! $ursuant to ITT -ub.,lause =6.=* or
(>) havin# been notified of the acce$tance of its Tender by the +urchaser durin# the $eriod of Tender
validity*
(a) fails or refuses to execute the Form of &#reement in accordance "ith the Instructions
to Tenderers! if re'uired* or
(b) fails or refuses to furnish the +erformance -ecurity in accordance "ith the
Instructions to Tenderers*
then the -urety underta(es to immediately $ay to the +urchaser u$ to the above amount u$on recei$t
of the +urchaser/s first "ritten demand! "ithout the +urchaser havin# to substantiate its demand!
$rovided that in its demand the +urchaser shall state that the demand arises from the occurrence of
any of the above events! s$ecifyin# "hich event(s) has occurred.
The -urety hereby a#rees that its obli#ation shall remain in full force and affect u$ to and includin#
the date =6 days after the date of ex$iration of the Tender validity as stated in the Invitation to Tender
or extended by the +urchaser at any time $rior to this date! notice of "hich extension(s) to the -urety
bein# hereby "aived.
IN T:-TI?7N8 W9:2:7F! the +rinci$al and the -urety have caused these $resents to be executed
in their res$ective names this !insert number% day of !month%, !year%
+rinci$al) @@@@@@@@@@@@@@@@@@@@@@@ -urety) @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
,or$orate -eal ("here a$$ro$riate)
@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
!insert signature-s. of authorised !insert signature-s. of authorised representative-s.%
representative-s.%
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!insert printed name and title% !insert printed name and title%
3. Tender-Securing eclaration
!If required, the Tenderer shall fill in this form in accordance ith the instructions indicated in
brac#ets.%
3ate) !insert date%
Name of contract) !insert name%
,ontract Identification N
o
) !insert number%
Invitation for Tender No.) !insert number%
To) ____________________________
We! the undersi#ned! declare that)
<. We understand that! accordin# to your conditions! tenders must be su$$orted by a tender.
securin# declaration.
=. We acce$t that "e shall be sus$ended from bein# eli#ible for tenderin# in any contract "ith
the +urchaser for the $eriod of time of !insert time period% startin# on !insert start date%! if "e are in
breach of our obli#ation(s) under the tender conditions! because "e)
(a) have "ithdra"n our Tender durin# the $eriod of tender validity s$ecified by us
in the Tender -ubmission -heet* or
(b) do not acce$t the correction of errors in accordance "ith the Instructions to
Tenderers (hereinafter the ITB) of the Tender 3ocuments* or
(c) havin# been notified of the acce$tance of our Tender by the +urchaser durin# the
$eriod of tender validity! (i) fail or refuse to execute the ,ontract Form! if re'uired! or
(ii) fail or refuse to furnish the $erformance security! in accordance "ith the ITB.
>. We understand this tender securin# shall ex$ire if "e are not the successful tenderer! u$on the
earlier of (i) our recei$t of a co$y of your notification to the Tenderer that the tenderer "as
unsuccessful* or (ii) t"enty.ei#ht days after the ex$iration of our tender.
4. We understand that if "e are a AB! the Tender -ecurin# 3eclaration must be in the name of the
AB that submits the tender. If the AB has not been le#ally constituted at the time of tenderin#! the
Tender -ecurin# 3eclaration shall be in the names of all future $artners as named in the letter of
intent.
-i#ned !insert signature-s. of authorised representative% In the ,a$acity of !insert title%
Name !insert printed or typed name%
3uly authorised to si#n the tender for and on behalf of !insert authorising entity%
3ated on !insert day% day of !insert month%, !insert year%
SECTION VII FORMS OF SECURITY
!. "erformance Ban# $uarantee (%nconditional)
(Not Applicable)
CThe ban!"successful Tenerer $rovidin# the %uarantee shall fill in this form in accordance "ith the
instructions indicated in brac(ets! if the +urchaser re'uires this ty$e of security.D
!insert ban#'s name, and address of issuing branch or office%
Beneficiary: !insert name and address of Purchaser%
Date: !insert date%
#ER$%R&AN'E GUARANTEE No.: !insert Performance $uarantee number%
We have been informed that !insert name of *ontractor% (hereinafter called "the ,ontractor") has
entered into ,ontract No. !insert reference number of the *ontract% dated "ith you! for the execution
of !insert name of *ontract and brief description of 0or#s% (hereinafter called "the ,ontract").
Furthermore! "e understand that! accordin# to the conditions of the ,ontract! a $erformance
#uarantee is re'uired.
&t the re'uest of the ,ontractor! "e !insert name of "an#% hereby irrevocably underta(e to $ay you
any sum or sums not exceedin# in total an amount of !insert amount in figures% (!insert amount in
ords%.!
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such sum bein# $ayable in the ty$es and $ro$ortions of currencies in "hich the ,ontract
+rice is $ayable! u$on recei$t by us of your first demand in "ritin# accom$anied by a "ritten
statement statin# that the ,ontractor is in breach of its obli#ation(s) under the ,ontract! "ithout your
needin# to $rove or to sho" #rounds for your demand or the sum s$ecified therein.
This #uarantee shall ex$ire no later than t"enty.ei#ht days from the date of issuance of the Ta(in#.
7ver ,ertificate! calculated based on a co$y of such ,ertificate "hich shall be $rovided to us! or on
the Cinsert number day of !insert month%, !insert year%,
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"hichever occurs first. ,onse'uently! any
demand for $ayment under this #uarantee must be received by us at this office on or before that date.
This #uarantee is sub0ect to the 1niform 2ules for 3emand %uarantees! I,, +ublication No. 456!
exce$t that sub$ara#ra$h (ii) of -ub.article =E(a) is hereby excluded.
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!signature-s. of an authorised representative-s. of the "an# %
<
The $uarantor -ban#. shall insert an amount representing the percentage of the *ontract Price specified in the
*ontract and denominated either in the currency-ies. of the *ontract or a freely convertible currency acceptable to the
$overnment of the Solomon Islands.
=
Insert the date tenty3eight days after the e,pected *ompletion date. The Purchaser should note that in the event
of an e,tension of the time for completion of the *ontract, the $overnment of the Solomon Islands ould need to
request an e,tension of this $uarantee from the $uarantor. Such request must be in riting and must be made prior to
the e,piration date established in the $uarantee. In preparing this $uarantee, the Purchaser might consider adding the
folloing te,t to the form, at the end of the penultimate paragraph4 5The $uarantor agrees to a one3time e,tension of
this $uarantee for a period not to e,ceed !si, months%!one year%, in response to the P6's ritten request for such
e,tension, such request to be presented to the $uarantor before the e,piry of the $uarantee.7
SECTION VII FORMS OF SECURITY
&. "erformance Bond
(Not Applicable)
!The Surety8successful Tenderer providing the "ond shall fill in this form in accordance ith the
instructions indicated in brac#ets, if the Purchaser requires this type of security%
By this Bond! Cinsert name and address of ,ontractorD as +rinci$al (hereinafter called the
,ontractor) and Cinsert name! le#al title! and address of surety! bondin# com$any! or insurance
com$anyD as -urety (hereinafter called the -urety)! are held and firmly bound unto Cinsert name and
address of contractin# ?inistry! &uthority or a#ency of the +urchaserD as 7bli#ee (hereinafter called
the +urchaser) in the amount of Cinsert amount of BondD Cinsert amount of Bond in "ordsD!
>
for the
$ayment of "hich sum "ell and truly to be made in the ty$es and $ro$ortions of currencies in "hich
the ,ontract +rice is $ayable! the ,ontractor and the -urety bind themselves! their heirs! executors!
administrators! successors! and assi#ns! 0ointly and severally! firmly by these $resents.
Whereas the ,ontractor has entered into a ,ontract "ith the +urchaser dated
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the Cinsert numberD day
of Cinsert monthD! Cinsert yearD for Cinsert name of ,ontractD in accordance "ith the documents! $lans!
s$ecifications! and amendments thereto! "hich to the extent herein $rovided for! are by reference
made $art hereof and are hereinafter referred to as the ,ontract.
No"! therefore! the ,ondition of this 7bli#ation is such that! if the ,ontractor shall $rom$tly and
faithfully $erform the said ,ontract (includin# any amendments thereto)! then this obli#ation shall be
null and void* other"ise it shall remain in full force and effect. Whenever the ,ontractor shall be! and
declared by the +urchaser to be! in default under the ,ontract! the +urchaser havin# $erformed the
+urchaser/s obli#ations thereunder! the -urety may $rom$tly remedy the default! or shall $rom$tly)
(<) com$lete the ,ontract in accordance "ith its terms and conditions* or
(=) obtain a Tender or tenders from 'ualified tenderers for submission to the +urchaser for
com$letin# the ,ontract in accordance "ith its terms and conditions! and u$on determination by the
+urchaser and the -urety of the lo"est res$onsive Tenderer! arran#e for a ,ontract bet"een such
Tenderer and +urchaser and ma(e available as "or( $ro#resses (even thou#h there should be a default
or a succession of defaults under the ,ontract or ,ontracts of com$letion arran#ed under this
$ara#ra$h) sufficient funds to $ay the cost of com$letion less the balance of the ,ontract +rice* but
not exceedin#! includin# other costs and dama#es for "hich the -urety may be liable hereunder! the
amount set forth in the first $ara#ra$h hereof. The term Balance of the ,ontract +rice! as used in
this $ara#ra$h! shall mean the total amount $ayable by the +urchaser to the ,ontractor under the
,ontract! less the amount $ro$erly $aid by the +urchaser to the ,ontractor* or
(>) $ay the +urchaser the amount re'uired by the +urchaser to com$lete the ,ontract in
accordance "ith its terms and conditions u$ to a total not exceedin# the amount of this Bond.
The -urety shall not be liable for a #reater sum than the s$ecified $enalty of this Bond.
&ny suit under this Bond must be instituted before the ex$iration of one year from the date of
issuance of the ,ertificate of ,om$letion.
No ri#ht of action shall accrue on this Bond to or for the use of any $erson or cor$oration other than
the +urchaser named herein or the heirs! executors! administrators! successors! and assi#ns of the
>
An amount is to be inserted by the Surety, representing the percentage of the *ontract Price specified
in the *ontract 9ata, and denominated either in the currency-ies. of the *ontract or in a freely convertible
currency of type and amount acceptable to the $overnment of the Solomon Islands.
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9ate of :etter of Acceptance or Agreement.
+urchaser.
In testimony "hereof! the ,ontractor has hereunto set its hand and affixed its seal! and the -urety has
caused these $resents to be sealed "ith its cor$orate seal duly attested by the si#nature of its le#al
re$resentative! this !insert day% day of !insert month%! !insert year%.
-i#ned by !insert signature-s. of authorised representative-s. %
on behalf of !name of *ontractor% in the ca$acity of !insert title-s.%
In the $resence of !insert name and signature of itness%
3ate !insert date%
-i#ned by !insert signature-s. of authorised representative-s. of Surety%
on behalf of !name of Surety % in the ca$acity of !insert title-s.%
In the $resence of !insert name and signature of itness%
3ate !insert date%
SECTION VII FORMS OF SECURITY
'. Ban# $uarantee for Ad(ance "ayment
The bank/successful tenderer providing the $uarantee shall fill in this form in accordance ith the
instructions indicated in brac#ets, if an Advance Payment is to be provided under the *ontract
!insert "an#'s name, and address of issuing branch or office%
Beneficiary: !insert name and address of Purchaser%
Date: !insert date%
AD(AN'E #A)&ENT GUARANTEE No.: !insert number%
We have been informed that !insert name of *ontractor% (hereinafter called "the ,ontractor") has
entered into ,ontract No. !insert reference number of the contract% dated !insert date% "ith you! for
the execution of !insert name of contract and brief description of 0or#s% (hereinafter called "the
,ontract").
Furthermore! "e understand that! accordin# to the conditions of the ,ontract! an advance $ayment is
to be made a#ainst an advance $ayment #uarantee in the sum or sums indicated belo".
&t the re'uest of the ,ontractor! "e !insert name of "an#% hereby irrevocably underta(e to $ay you
any sum or sums not exceedin# in total an amount of !insert amount in figures% (!insert amount in
ords%
;
) u$on recei$t by us of your first demand in "ritin# accom$anied by a "ritten statement
statin# that the ,ontractor is in breach of its obli#ation under the ,ontract because the ,ontractor
used the &dvance +ayment for $ur$oses other than the costs of mobilisation in res$ect of the Wor(s.
It is a condition for any claim and $ayment under this #uarantee to be made that the &dvance +ayment
referred to above must have been received by the ,ontractor on its account number !insert account
number% at !insert name and address of "an#%.
The maximum amount of this #uarantee shall be $ro#ressively reduced by the amount of the &dvance
+ayment re$aid by the ,ontractor as indicated in co$ies of interim statements or $ayment certificates
"hich shall be $resented to us. This #uarantee shall ex$ire! at the latest! u$on our recei$t of a co$y of
the Interim +ayment ,ertificate indicatin# that ei#hty (6E) $ercent of the ,ontract +rice has been
certified for $ayment! or on the !insert number% day of !insert month%, !insert year%! "hichever is
earlier. ,onse'uently! any demand for $ayment
under this #uarantee must be received by us at this office on or before that date.
This #uarantee is sub0ect to the 1niform 2ules for 3emand %uarantees! I,, +ublication No.
456.
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!insert signature-s. . of authorised representative-s. of ban
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The $uarantor shall insert an amount representing the amount of the Advance Payment and
denominated either in the currency-ies. of the Advance Payment as specified in the *ontract, or in a freely
convertible currency acceptable to the $overnment of the Solomon Islands.
*. #erfor+ance ,ecurin- Declaration
[to be filled in, signed and submitted by the awardee contractor within on or before the
signing of the Contract]
3ate) !insert date%
Name of contract) !insert name%
,ontract Identification N
o
) !insert number%
To) &inistry of .nfrastructure De/elop+ent
We! the undersi#ned! declare that)
<. We understand that! accordin# to your conditions! the ,ontract must be su$$orted by a
+erformance -ecurin# 3eclaration! in lieu of +erformance -ecurity.
=. We acce$t that "e shall be sus$ended from bein# eli#ible for tenderin# in any contract
"ith the :m$loyer for the $eriod of time of six (F) to t"elve (<=) months! or lon#er!
startin# on date s$ecified by :m$loyer! if "e are in breach of our obli#ation(s) under
the ,ontract! because "e)
(a) failed to com$lete the Wor(s in accordance "ith the a#reed com$letion
date or a#reed extended date of com$letion* or
(b) failed to $erform the Wor(s in accordance "ith the technical
s$ecifications and 'uality standards s$ecified therein.
>. We understand this +erformance -ecurin# 3eclaration shall be rendered ineffective
and unenforceable u$on our recei$t of the ,ertificate of ,om$letion si#ned and issued
by the :m$loyer.
-i#ned !insert signature-s. of authorised representative% In the ,a$acity of !insert title%
Name !insert printed or typed name%
3uly authorised to si#n the ,ontract for and on behalf of !insert authorising entity%
3ated on !insert day% day of !insert month%, !insert year%