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Bonds or Gurantees

Exception/deviation by Tenderer

Client position

Provision of guarantees from banks that are not from the Client specified list of banks

Such deviation should be examined with the finance department as, the rating of certain banks and the laws under which banks operate determines to a large extent if the guarantee would get honored on first demand made on the bank.

Client’s specifying expiry date of a guarantee linked to a certain milestone.

Due to the fact that banks are not a party to the Contract, banks normally do not consider reference to milestones and see it as being open ended and hence are reluctant to issue a guarantee with a firm expiry date.

Exception could be accepted and a fixed expiry date inserted subject to validity extension of the guarantee at Clients sole request.

Tenderer requesting to substitute a bank guarantee with a parent company guarantee.

Decision should be made on commercial con