Performance Guarantee Bonds are essential financial instruments used in New Zealand to provide security for significant commercial and project-based transactions. They are particularly common in construction, infrastructure, and large-scale commercial projects where one party needs assurance of another's performance. The document is designed to comply with New Zealand contract law, financial regulations, and commercial practice, typically involving a bank or insurance company as guarantor. A Performance Guarantee Bond includes critical information such as the guaranteed amount, duration, calling conditions, and payment terms. It's commonly required in tender processes, major construction contracts, and significant supply agreements, providing beneficiaries with readily accessible financial security if the principal fails to meet their obligations.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership聽of your docs
1. Parties: Identifies the three key parties: the Guarantor (bank/insurance company), the Principal (party whose performance is being guaranteed), and the Beneficiary (party receiving the guarantee)
2. Background: Sets out the context of the underlying agreement requiring the guarantee and the purpose of this bond
3. Definitions: Defines key terms used throughout the document, including 'Guaranteed Obligations', 'Maximum Liability Amount', and 'Expiry Date'
4. Guarantee and Indemnity: Core section establishing the guarantee, including the scope and nature of the guaranteed obligations
5. Maximum Liability: Specifies the maximum amount for which the guarantor can be liable under the bond
6. Duration and Expiry: Specifies when the bond becomes effective and when it expires or terminates
7. Demand Requirements: Sets out the process and requirements for making a valid demand under the bond
8. Payment Obligations: Details the guarantor's obligations when a valid demand is made
9. Discharge and Release: Specifies conditions under which the guarantor will be discharged from obligations
10. Assignment and Transfer: Addresses whether and how the bond may be assigned or transferred
11. Governing Law and Jurisdiction: Specifies New Zealand law as governing law and sets jurisdiction for disputes
12. Execution: Formal execution block for all parties to sign
1. Counter Indemnity: Used when the principal is required to indemnify the guarantor against claims under the bond
2. Step-in Rights: Include when the guarantor has the right to step in and complete the underlying obligation
3. Multiple Beneficiaries: Required when there is more than one beneficiary to specify how they may make demands
4. Reduction Provisions: Include when the maximum liability amount reduces over time or upon certain events
5. Currency Provisions: Required when the bond involves international parties or multiple currencies
6. Notice Provisions: Detailed notice requirements section needed for complex projects or international parties
1. Form of Demand: Template for making a valid demand under the bond
2. Underlying Agreement Details: Summary or extract of the key obligations being guaranteed from the underlying agreement
3. Project Milestones: If the bond relates to specific project milestones or stages
4. Authorized Signatories: List of persons authorized to make demands under the bond
5. Bank Details: Payment instructions and bank account details for demands
Find the exact document you need
Financial Performance Guarantee
A New Zealand-governed guarantee agreement where a guarantor ensures the financial or performance obligations of a principal debtor to a beneficiary.
Download
Contract Performance Guarantee
A New Zealand law-governed guarantee document where a guarantor commits to compensate a beneficiary if a contractor fails to meet their contractual obligations.
Download
Bank Guarantee Performance Bond
A New Zealand law-governed financial instrument issued by a bank to guarantee a contractor's performance obligations, providing security to the principal through an unconditional payment undertaking.
Download
Performance Guarantee Bond
A New Zealand law-governed financial instrument where a guarantor guarantees the performance obligations of a principal to a beneficiary, providing security for commercial and project-based transactions.
Download
Performance Bank Guarantee
A New Zealand law-governed bank guarantee ensuring contractual performance obligations, where a bank guarantees payment to a beneficiary if a principal party defaults on their obligations.
Download
骋别苍颈别鈥檚 Security Promise
Genie is the safest place to draft. Here鈥檚 how we prioritise your privacy and security.
Your documents are private:
We do not train on your data; 骋别苍颈别鈥檚 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)