The Contract Performance Bank Guarantee is a crucial document in UAE commercial transactions, particularly in construction, infrastructure, and major supply contracts. It serves as a risk mitigation tool where a bank provides financial security to a project owner against potential default or non-performance by a contractor or supplier. Under UAE law, specifically Federal Law No. 18 of 1993 (Commercial Transactions Law) and UAE Central Bank regulations, these guarantees must be unconditional and payable upon first demand. The document typically amounts to 10-15% of the contract value and remains valid throughout the contract period plus any warranty period. Contract Performance Bank Guarantees are commonly required in government contracts, major private sector projects, and international business transactions involving UAE entities, providing beneficiaries with immediate access to funds without the need for court proceedings in case of contractor default.
Your data doesn't train Genie's AI
You keep IP ownership of your information
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
OR
Let Ƶ's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
1. Bank Details and Reference Number: Full details of the issuing bank, branch, and unique guarantee reference number
2. Beneficiary Details: Complete name and address of the party in whose favor the guarantee is issued
3. Principal Details: Complete name and address of the party on whose behalf the guarantee is issued
4. Underlying Contract Reference: Details of the main contract being guaranteed, including contract number, date, and parties
5. Guarantee Amount: The maximum amount of the guarantee, both in figures and words
6. Purpose of Guarantee: Clear statement that this is a performance guarantee and its specific purpose
7. Validity Period: Explicit start and end dates of the guarantee
8. Claim Conditions: Terms under which the guarantee can be called upon and claim procedure
9. Governing Law and Jurisdiction: Statement that the guarantee is governed by UAE law and subject to UAE courts
10. Expiry Conditions: Conditions for expiry or release of the guarantee
11. Bank's Undertaking: The bank's unconditional undertaking to pay upon first demand
1. Language Clause: Required when the guarantee is issued in multiple languages, specifying which version prevails
2. Assignment Clause: Needed if the guarantee needs to be transferable
3. Reduction Clause: Used when the guarantee amount can be reduced progressively during the contract period
4. Force Majeure Provisions: May be included for international guarantees or complex projects
5. SWIFT/Electronic Format Provisions: Required when the guarantee can be transmitted electronically or via SWIFT
6. Counter-Guarantee References: Needed when issued under a counter-guarantee from another bank
7. Dispute Resolution Mechanism: Alternative dispute resolution procedures if preferred over standard court jurisdiction
1. Form of Demand: Template for making a claim under the guarantee
2. Contract Milestone Schedule: If the guarantee amount reduces based on contract milestones
3. Authentication Specimens: Specimen signatures or authentication methods for claim verification
4. Counter-Guarantee Details: If issued under a counter-guarantee, details of the arrangement
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Construction and Infrastructure
Real Estate Development
Oil and Gas
Manufacturing
Trading and Commerce
Government and Public Sector
Energy and Utilities
Telecommunications
Healthcare
Education
Transportation and Logistics
Relevant Teams
Legal
Finance
Treasury
Procurement
Commercial
Risk Management
Operations
Compliance
Project Management
Contract Administration
Business Development
Relevant Roles
Project Manager
Contract Manager
Finance Director
Chief Financial Officer
Treasury Manager
Legal Counsel
Procurement Manager
Commercial Director
Risk Manager
Bank Relationship Manager
Construction Manager
Operations Director
Company Secretary
Compliance Officer
Project Director
Business Development Manager
Find the exact document you need
Performance Bank Guarantee Charges
UAE-compliant fee structure document for Performance Bank Guarantees, outlining charges and payment terms under UAE banking regulations.
Download
Deferred Payment Bank Guarantee
A UAE law-governed bank guarantee that provides for scheduled future payments, typically used in international trade to secure deferred payment obligations.
Download
Foreign Bank Guarantee
A UAE-governed bank guarantee issued by a foreign bank, providing financial security for commercial transactions with specific payment obligations upon demand.
Download
Labour Bank Guarantee
A mandatory bank guarantee required under UAE law to secure workers' rights and financial entitlements, issued in favor of the Ministry of Human Resources and Emiratisation.
Download
International Bank Guarantee
UAE-governed bank guarantee template incorporating local banking regulations and international standards for cross-border financial security.
Download
Bank Guarantee Against Fd
A UAE-law governed banking document establishing terms for a bank guarantee secured against a fixed deposit, commonly used in commercial and government transactions.
Download
Cheque Guarantee Letter
A UAE-governed formal guarantee instrument ensuring payment of specified cheque(s), providing additional security for beneficiaries under UAE commercial law.
Download
Bank Guarantee Contract
A UAE-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon demand, subject to UAE Federal Laws and Central Bank regulations.
Download
Bank Guarantee Against Property
A UAE law-governed agreement establishing a bank guarantee secured by real property, detailing security arrangements and enforcement rights under UAE jurisdiction.
Download
Bank Financial Guarantee
A UAE-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon default of the principal party, subject to UAE Federal Law and Central Bank regulations.
Download
Security Bank Guarantee
A UAE law-governed bank guarantee document where a bank commits to pay a specified sum to a beneficiary upon default of the principal party's obligations.
Download
Letter Of Guarantee For Loan
A UAE law-governed guarantee instrument where a guarantor secures a borrower's loan obligations to a bank, providing additional security for the lending facility.
Download
Bank Guarantee As Collateral Security
A UAE-law governed bank guarantee document where a bank provides security for a principal debtor's obligations to a beneficiary, subject to UAE banking regulations and commercial law.
Download
Contract Performance Bank Guarantee
A UAE-governed bank guarantee that secures the performance obligations of a contractor/supplier, providing financial assurance to the project owner through an unconditional bank undertaking.
Download
Post Bank Guarantee
A UAE-governed bank guarantee document providing financial security through an irrevocable undertaking by a bank to pay a specified sum upon demand.
Download
Guarantee Cheque Against Advance Payment
UAE-governed agreement establishing terms for an advance payment secured by a guarantee cheque, including payment conditions and cheque presentation terms.
Download
Bank Guarantee For Supply Of Goods
A UAE-governed bank guarantee securing payment obligations in goods supply transactions, issued by a bank to protect the buyer against supplier default.
Download
Bank Deposit Government Guarantee
UAE-governed agreement establishing government guarantee for eligible bank deposits, setting out protection mechanisms and claim procedures under UAE federal law.
Download
Bank Personal Guarantee
A UAE-law governed guarantee agreement where an individual personally guarantees a debtor's obligations to a bank, creating an enforceable security interest under UAE banking regulations.
Download
Bank Standby Letter Of Credit
A UAE-governed bank guarantee instrument that provides payment security to beneficiaries in case of default by the applicant, subject to UAE banking laws and regulations.
Download
Open Bank Guarantee
A UAE-law governed bank guarantee providing an independent, irrevocable undertaking to pay a specified sum upon demand, with an open-ended or automatically renewable duration.
Download
Purchase Bank Guarantee
A UAE-governed bank guarantee securing payment obligations in purchase transactions, issued by a bank to protect sellers against buyer default.
Download
Bank Guarantee Lost Original
A UAE law-governed declaration for obtaining a replacement for a lost bank guarantee, including necessary indemnities and undertakings.
Download
Bank Account Government Guarantee
A UAE-governed bank guarantee instrument providing government entities with security over specified bank accounts, regulated under UAE federal banking and civil laws.
Download
Construction Bank Guarantee
A UAE-governed bank guarantee document that provides financial security for construction project obligations, ensuring protection for project owners under UAE law.
Download
Bank Guarantee By Government
A UAE-law governed financial instrument where a government entity provides a guarantee through a bank to secure specified obligations to a beneficiary.
Download
Bank Endorsement Guarantee
A UAE-governed bank guarantee document where a bank guarantees its client's obligations to a third party, regulated by UAE Federal Laws and Central Bank regulations.
Download
Authorization Letter To Collect Bank Guarantee
A UAE-compliant legal document authorizing a designated person to collect a bank guarantee on behalf of a company or individual.
Download
Down Payment Bank Guarantee
A UAE-law governed bank guarantee securing advance payments made to contractors, providing financial security to project owners under UAE Federal Laws and Central Bank regulations.
Download
Indirect Bank Guarantee
A UAE law-governed financial instrument where a foreign bank issues a guarantee through a local UAE bank, establishing terms and conditions for financial security in cross-border transactions.
Download
Corporate Guarantee For Bank Loan
UAE-governed corporate guarantee agreement securing bank loan obligations, structured under UAE Civil Code and Banking regulations.
Download
Bid Security Bank Guarantee
A UAE-governed bank guarantee that secures a bidder's obligations in a tender process, protecting the tender issuer against bid withdrawal or non-compliance with tender conditions.
Download
Surety Bond Bank Guarantee
A UAE-governed bank guarantee document where a bank provides financial security for a principal's obligations to a beneficiary, structured under UAE Federal Laws.
Download
Bank Guarantee Transferable
A UAE law-governed bank guarantee that allows the beneficiary to transfer their rights to receive payment to third parties, subject to specified conditions and Central Bank regulations.
Download
Bank Guarantee First Demand
A UAE law-governed bank guarantee providing unconditional payment obligation upon first demand, commonly used as security in commercial transactions.
Download
Advance Bank Guarantee
A UAE-law governed bank guarantee securing advance payments made by a beneficiary to a principal, ensuring refund if contractual obligations are not met.
Download
Unsecured Bank Guarantee
A UAE law-governed Unsecured Bank Guarantee document establishing a bank's commitment to pay a specified sum to a beneficiary without requiring collateral from the applicant.
Download
Standby Bank Guarantee
A UAE law-governed bank undertaking to pay a specified sum to a beneficiary upon the principal's default, subject to UAE Federal Laws and Central Bank regulations.
Download
Financial Guarantee And Performance Guarantee
A UAE law-governed dual-purpose guarantee document that provides both financial security and performance assurance, typically issued by banks or financial institutions in commercial transactions.
Download
Domestic Bank Guarantee
A UAE-governed bank guarantee document where a UAE bank provides a financial commitment to a beneficiary on behalf of its client, subject to UAE banking laws and regulations.
Download
ұԾ’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; ұԾ’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
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
.png)