Performance Guarantee No E Performance Guarantee In Accordance With

performance guarantee no. e. performance guarantee in accordance with the ab92 § 6,with a five-year obligation to rectify any defects and

Performance Guarantee No. E.
Performance Guarantee in accordance with the AB92 § 6,with a
five-year obligation to rectify any defects and shortcomings (Building
work, etc.)
On behalf of
…………………….
…………………….
………………….....
…………………….
hereinafter referred to as “the Contractor”
we, , hereinafter referred to as “the Guarantor”, do hereby guarantee
to
…………………….
…………………….
…………………….
…………………….
hereinafter referred to as “the Employer”
the payment of up to a total sum of
…………………….
in writing ………………………………………
as security for the fulfilment of all the Contractor’s obligations
according to a Contract/Confirmation/Offer, with any subsequent
amendment/additions dated …………. covering the performance of:
…………………………………………
Any respite granted to the Contractor by the Employer in respect of
the fulfilment of his obligations does not affect this Guarantee.
Claims under this Guarantee shall not lapse even if the Employer pays
the Contract Sum or parts thereof to the Contractor after
handing-over.
I. Payment under the Guarantee
If the Employer requests payment under this Guarantee, such request
must be made in accordance with the AB92, §6, Subs. 7, in writing and
notified simultaneously to the Contractor and the Guarantor, with an
exact indication of the nature and extent of the alleged breach as
well as the magnitude of the amount claimed.
The amount shall be payable to the Employer within 10 workdays of
receipt of the above notification, unless the Contractor has filed a
prior request with the Danish Arbitration Board for Building and
Construction asking for an order on the specific question whether the
claim for payment made by the Employer is justified, in which case the
provisions of the AB92, §46 shall apply.
Performance Guarantee No. E.
Any payment of amounts under a decision on the payment under this
Guarantee shall be effected within three workdays from the day when
the parties and the Guarantor receive notice in writing thereof, cf.
the AB92, §46, Subs. 7.
The Guarantee shall be reduced by the payment made.
II. Reduction and Expiry (Release)
A. On the ……………………. the guarantee will be reduced to 10% of the
Contract Sum to …………………….
B. On the ……………………. the guarantee will be reduced further to 2% of the
Contract Sum to …………………….
C. The Guarantee shall cease 5 years after handing-over, cf. the AB92,
§6, Subs. 5, unless a prior claim for rectification has been submitted
in writing to the Contractor by the Employer, in which case the
Guarantee shall cease when such rectification has been effected.
D. This Guarantee will under any circumstances automatically expire on
………….. at the very latest, and any claims against us under the
Guarantee must be in our possession before the expiration of that time
limit; otherwise we shall consider ourselves to be released from our
liabilities under this Guarantee, whether the original document has
been returned to us or not.
E. Apart from payment claims under the Guarantee, cf. the AB92, §6,
Subs. 7, any disputes between ……………………. and the Employer shall be
decided by the Danish Arbitration Board for Building and Construction,
cf. the AB92, §§45 and 47, according to Danish law.
F. Upon expiry of the Guarantee, this original document shall be
returned to …………………….