All Countries
Commercial
Performance Guarantee Bond

Performance Guarantee Bond Template for Belgium

Create a bespoke document in minutes,  or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your Performance Guarantee Bond

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Performance Guarantee Bond

"I need a Performance Guarantee Bond under Belgian law for a renewable energy construction project, where Bank BNP Paribas will guarantee €5 million of our obligations to the project owner, with the guarantee expiring on March 15, 2025."

Celebrated by
Collaborations with
Investors
Document background
A Performance Guarantee Bond is a crucial security instrument in Belgian commercial and construction practice, typically required for significant projects or contracts where performance assurance is essential. This document serves as a financial guarantee issued by a bank or financial institution to secure the performance obligations of a contractor or supplier. Under Belgian law, the bond provides the beneficiary with direct recourse to the guaranteed amount without first having to pursue the principal debtor, following the principle of 'first demand guarantee'. The document specifies the guaranteed amount (usually a percentage of the contract value), validity period, conditions for calling the guarantee, and release mechanisms. It's particularly important in public procurement, construction projects, and major commercial contracts where Belgian law requires performance security.
Suggested Sections

1. Parties: Identification of the Guarantor (typically a bank or financial institution), the Beneficiary (party receiving the guarantee), and the Principal (party whose performance is being guaranteed)

2. Background: Context of the guarantee, including reference to the underlying contract or obligation being guaranteed

3. Definitions: Definitions of key terms used throughout the guarantee bond

4. Guarantee: Core guarantee commitment, including the maximum guaranteed amount and the nature of the guaranteed obligations

5. Duration: Validity period of the guarantee, including commencement and expiry dates

6. Demand Requirements: Formal requirements and procedures for making a claim under the guarantee

7. Payment Terms: Timeframe and method for payment upon valid demand

8. Reduction and Release: Conditions under which the guaranteed amount may be reduced and when the guarantee will be released

9. Governing Law and Jurisdiction: Confirmation of Belgian law as governing law and jurisdiction for disputes

10. Notices: Format and delivery requirements for all formal communications under the guarantee

Optional Sections

1. Transfer and Assignment: Include when the guarantee needs to be transferable or when assignment rights need to be specifically addressed

2. Counter-Indemnity: Include when there is a separate counter-indemnity arrangement between the Guarantor and the Principal

3. Multiple Beneficiaries: Include when there are multiple beneficiaries and their rights need to be clearly defined

4. Partial Claims: Include when partial claims under the guarantee need to be specifically permitted and regulated

5. Language: Include when the guarantee is issued in multiple languages to specify which version prevails

6. Tax Provisions: Include when specific tax implications need to be addressed or allocated between parties

7. Force Majeure: Include when force majeure events need to be specifically addressed in relation to the guarantee obligations

Suggested Schedules

1. Form of Demand: Template for making a valid demand under the guarantee

2. Underlying Contract: Copy or key excerpts of the contract or obligation being guaranteed

3. Authorization Documents: Corporate authorizations and powers of attorney evidencing authority to issue the guarantee

4. Specimen Signatures: Authenticated specimen signatures of authorized signatories for making demands

5. Release Form: Template for the formal release of the guarantee upon completion or expiry

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant Industries

Construction

Infrastructure

Real Estate Development

Manufacturing

Energy

Public Works

Transportation

Telecommunications

Industrial Projects

Mining

Oil and Gas

Renewable Energy

International Trade

Government Contracting

Relevant Teams

Legal

Finance

Treasury

Risk Management

Procurement

Commercial

Project Management

Compliance

Operations

Construction Management

Contract Administration

Relevant Roles

Project Manager

Contract Manager

Legal Counsel

Financial Director

Treasury Manager

Risk Manager

Procurement Manager

Commercial Director

Construction Manager

Chief Financial Officer

Bond Manager

Compliance Officer

Project Director

General Counsel

Bank Relationship Manager

Industries
Belgian Civil Code (Code civil/Burgerlijk Wetboek): Primary legislation governing contracts and obligations in Belgium, particularly Articles 2011-2043 dealing with suretyship and guarantees
Belgian Commercial Code (Code de commerce/Wetboek van Koophandel): Governs commercial transactions and relationships between business entities, relevant for commercial performance guarantees
Belgian Financial Security Law of 15 December 2004: Regulates financial collateral arrangements and security interests in Belgium
Belgian Public Procurement Law of 17 June 2016: Relevant if the performance guarantee is related to public contracts, as it contains specific provisions about performance guarantees in public procurement
Belgian Law on Financial Services and Markets (2002): Relevant if the guarantee is issued by a financial institution, as it regulates banking and financial services activities
European Union Directive 2000/35/EC: Concerning late payment in commercial transactions, which might be relevant for enforcement of the guarantee
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

Find the exact document you need

Corporate Performance Guarantee

A Belgian law-governed guarantee where a corporate entity ensures the performance obligations or contractual commitments of another company, providing security to the beneficiary.

find out more

Performance Guarantee Bond

A Belgian law-governed financial instrument where a guarantor ensures a contractor's performance obligations through a monetary guarantee.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: https://www.genieai.co/our-research
Oops! Something went wrong while submitting the form.

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts

Want to know more?

Visit our Trust Centre for more details and real-time security updates.

Read our Privacy Policy.