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1. Parties: Identifies the three key parties: the Bank (Guarantor), the Contractor (Principal), and the Project Owner (Beneficiary)
2. Background: Describes the underlying construction contract and the requirement for the bank guarantee
3. Definitions: Defines key terms used in the guarantee including Contract Sum, Guarantee Amount, Expiry Date, and Project
4. Guarantee Amount: Specifies the maximum amount of the guarantee and currency
5. Scope of Guarantee: Details the specific obligations and performance aspects covered by the guarantee
6. Duration and Validity: Specifies the commencement date, expiry date, and any extension conditions
7. Demand Requirements: Outlines the process and conditions for making a claim under the guarantee
8. Payment Terms: Specifies how and when payment will be made upon valid demand
9. Bank's Rights and Obligations: Details the bank's obligations and rights under the guarantee
10. Governing Law and Jurisdiction: Specifies Pakistani law as governing law and determines jurisdiction for disputes
11. Notices: Specifies how and where notices should be delivered to all parties
1. Islamic Banking Compliance: Required when the guarantee needs to be Shariah-compliant
2. Step-in Rights: Optional section defining the bank's rights to step into the project in case of contractor default
3. Partial Claims: Include when partial claims under the guarantee are permitted
4. Counter-Indemnity: Include when there's a separate counter-indemnity agreement from the contractor
5. Assignment Restrictions: Include when transfer/assignment of guarantee rights needs to be restricted
6. Multiple Beneficiaries: Required when the project has multiple beneficiaries
7. Language: Include when the guarantee needs to be bilingual or in multiple languages
1. Schedule 1 - Form of Demand: Standard format for making a claim under the guarantee
2. Schedule 2 - Construction Contract Details: Key details of the underlying construction contract
3. Schedule 3 - Project Milestones: Key project milestones affecting the guarantee obligations
4. Schedule 4 - Authorized Signatories: List of authorized signatories for each party
5. Appendix A - Supporting Documents: Copies of relevant permits, licenses, and authorizations
6. Appendix B - Special Conditions: Any special conditions or requirements specific to the project
Applicable Law
Authorized Representative
Bank
Beneficiary
Business Day
Claim
Completion Certificate
Construction Contract
Contract Price
Contractor
Default Event
Demand Notice
Effective Date
Expiry Date
Force Majeure
Guarantee Amount
Guarantee Period
Guaranteed Obligations
Issuing Branch
Material Breach
Notice
Payment Date
Performance Standards
Principal
Project
Project Completion Date
Project Site
Retention Money
Security Interest
Substantial Completion
Technical Specifications
Time for Completion
Warranty Period
Works
Demand and Payment
Duration and Validity
Representations and Warranties
Bank's Rights and Obligations
Default Events
Claims Procedure
Assignment and Transfer
Force Majeure
Notices
Amendments
Governing Law
Dispute Resolution
Jurisdiction
Compliance with Laws
Islamic Banking Compliance
Indemnification
Costs and Expenses
Severability
Counterparts
Entire Agreement
Waiver
Confidentiality
Currency and Payment Terms
Step-in Rights
Termination
Language
Time Limits
Extension Conditions
Release and Discharge
Banking & Financial Services
Construction
Infrastructure Development
Real Estate
Engineering
Public Sector
Energy & Utilities
Industrial Development
Commercial Development
Legal
Finance
Risk Management
Procurement
Commercial
Project Management
Construction Operations
Compliance
Banking Operations
Credit Analysis
Project Manager
Construction Manager
Bank Guarantee Officer
Legal Counsel
Contract Administrator
Chief Financial Officer
Risk Manager
Project Director
Banking Relationship Manager
Construction Site Supervisor
Procurement Manager
Commercial Director
Compliance Officer
Financial Controller
Project Engineer
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