The Employer shall not make a claim under the Performance Security, except for amounts to which the Employer is entitled under the Contract in the event of:.
- Failure by the Contractor to extend the validity of the Performance Security as described in the preceding paragraph, in.
which event the Employer may claim the full amount of the Performance Security.
- Failure by the Contractor to pay the Employer an amount due, as either agreed by the Contractor or determined under.
Sub-Clause 2.5 [Employer's Claims] or Clause 20 (Claims, Disputes and Arbitration), within 42 days after this.
agreement or determination.
- Failure by the Contractor to remedy a default within 42 days after receiving the Employer's notice requiring the default.
to be remedied.
- Circumstances which entitle the Employer to termination under Sub- Clause 15.2 (Termination by Employer), irrespective.
of whether notice of termination has been given.
- The Employer shall return the Performance Security to the Contractor within 21 days after receiving a copy of the.
Performance Certificate.
Example.
Before start the project advance bond and bid bond were given by the contractor to the client.
02. Advance Payment & Recovery.
Introduction .
The employer shall make an advance payment, as an interest free loan for mobilization and cash flow support, when the contractor submits a guaranty in accordance with the sub clause. The total advance payment, the number and timing of installment (if more than one), and the applicable currencies and properties shall be as stated in the contract data. Unless and until the employer receives this guaranty, or if the total advance payment is not stated in the contract data, this sub clause won't apply.
Clause No: 14.2 (Advance payment).
From FIDIC.
Advance payment is an interest free mobilization loan from the Employer to the Contractor. Advance payment can either be paid in one installment or multiple instalments to a Contractor.