(For Performance Guarantee to be issued by Insurance Company)

PERFORMANCE GUARANTEE
THIS GUARANTEE is given the ....................... day of ....................................

BY........................................................................................................................................................... ............................................................................ [name of

Guarantor]

of ........................................................................................................................................................................................... ..............................................................................................................[address, etc] (hereinafter called " the Guarantor") IN FAVOUR OF the HOUSING & DEVELOPMENT BOARD, SINGAPORE (Employer, including its Assigns and Successors in law) of HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 (hereinafter called "the Employer").

WHEREAS (1) The Employer has accepted the tender submitted by . of ..... called "the Contractor") for

...............................................................................

..............................................................(hereinafter

.... ..................................................................................................................................................................... .................................................................. (hereinafter called the "said Works") resulting in a contract for the said Works (hereinafter called "the Contract").

(2)

The Guarantor has agreed to guarantee the due performance of the Contract in the manner hereinafter

appearing

NOW THE GUARANTOR HEREBY AGREES with the Employer as follows:In consideration for the Employer not insisting on the Contractor paying cash as a Security Deposit for the Contract the

Guarantor hereby undertakes as follows: 1. The Guarantor unconditionally and irrevocably undertakes and covenants to pay in full forthwith upon demand

in writing any sum or sums that may from time to time be demanded by the Employer up to a maximum aggregate sum of Dollars ... .................................................................................... ($.................... ) without requiring any proof that the Employer is entitled to such sum or sums under the Contract or that the Contractor has failed to execute the Contract or is otherwise in breach of the Contract. Any sum or sums so demanded shall be paid forthwith by the Guarantor unconditionally, without any deductions whatsoever and notwithstanding the existence of any differences or disputes between the Employer and the Contractor arising under or out of or in connection with the Contract or the carrying out of work thereunder or as to any amount or amounts payable thereunder and

notwithstanding that such differences or disputes have been referred to arbitration or are the subject of proceedings in Court or is in the midst of any other means of dispute resolution.

Performance Guarantee to be issued by Insurance Company Pg 1 of 2 PG FOR BUILDING CONTRACTS 042013


2. The Guarantor shall not be discharged or released from this Guarantee by any arrangement made

between the Contractor and the Employer without the assent of the Guarantor or by any alteration in the obligations undertaken . by the Contractor or in the Works to be done thereunder or by any forbearance whether as to payment time performance or otherwise or by any other indulgence or matter of whatever nature accorded by the Employer to the Contractor.

3.

This Guarantee shall take effect from the date hereof and remain in full force and effect until (please

refer to table 1 for formula to compute initial expiry date) provided always that the expiry date of this Guarantee and the Guarantors liability thereunder shall be automatically extended for successive periods of 6 months unless the Guarantor gives the Employer 90 days' written notice prior to the expiry of the Guarantors liability of their intention not to extend this Guarantee in respect of any future extension and provided further that the Employer shall be entitled, upon receiving such notice o f the Guarantors intention (and within the period specified in Clause 4 hereof), either to: (a) (b) make a claim under this Guarantee; or direct the Guarantor to extend the validity of this Guarantee for a further period not exceeding 12 months (and this Guarantee shall then expire at the end of such further period). For the purpose of this clause, service of the above 90 days written notice shall be due service only if it is addressed to the Group Director (Development & Procurement) and the same being received by him at 21 Storey West Wing, HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 or such other address stipulated for this purpose as notified in writing by the Employer to the Guarantor.
st

4.

Any claim or direction as specified herein being made by the Employer shall be by way of a notice in

writing addressed to the Guarantor and the same being received by the Guarantor at the address stated hereof within 90 days from the expiry of this Guarantee.

5.

This Guarantee or the copy thereof in the Employer's possession shall be retained by the Employer

even after termination of all liabilities hereunder.

Table 1:

Computation of Initial Expiry Date Building Contract

Formula Latest of {Date for Completion + DLP, for various phases} + 12 months

Performance Guarantee to be issued by Insurance Company Pg 2 of 2 PG FOR BUILDING CONTRACTS 042013

(For Performance Guarantee to be issued by Bank)

PERFORMANCE GUARANTEE
THIS GUARANTEE is given the ....................... day of ....................................

BY........................................................................................................................................................... ..............................................................................[name of Guarantor]

of........................................................................................................................................................................................... ..............................................................................................................[address, etc] (hereinafter called "the Guarantor")

IN FAVOUR OF the HOUSING & DEVELOPMENT BOARD, SINGAPORE (Employer, including its Assigns and Successors in law) of HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 (hereinafter called "the Employer").

WHEREAS

(1)

The Employer has accepted the tender submitted by . of ..... Contractor") for

...............................................................................

.............................................................. (hereinafter called "the

.... ........................................................................................................................................................................ .................................................................. (hereinafter called the "said Works") resulting in a contract for the said Works (hereinafter called "the Contract").

(2)

The Guarantor has agreed to guarantee the due performance of the Contract in the manner hereinafter

appearing

NOW THE GUARANTOR HEREBY AGREES with the Employer as follows:In consideration for the Employer not insisting on the Contractor paying cash as a Security Deposit for the Contract the

Guarantor hereby undertakes as follows: 1. The Guarantor unconditionally and irrevocably undertakes and covenants to pay in full forthwith upon demand

in writing any sum or sums that may from time to time be demanded by the Employer up to a maximum aggregate sum of Dollars ...

........................................................................... ($.................... ) without requiring any proof that the Employer is entitled to such sum or sums under the Contract or that the Contractor has failed to execute the Contract or is otherwise in breach of the Contract. Any sum or sums so demanded shall be paid forthwith by the Guarantor unconditionally, without any deductions whatsoever and notwithstanding the existence of any differences or disputes between the Employer and the Contractor arising under or out of or in connection with the Contract or the carrying out of work thereunder or as to any amount or amounts payable thereunder and

notwithstanding that such differences or disputes have been referred to arbitration or are the subject of proceedings in Court or is in the midst of any other means of dispute resolution.

Performance Guarantee to be issued by Bank Pg 1 of 4 PG FOR BUILDING CONTRACTS 042013

2.

The Guarantor shall not be discharged or released from this Guarantee by any arrangement made

between the Contractor and the Employer without the assent of the Guarantor or by any alteration in the obligations undertaken by the Contractor or in the Works to be done thereunder or by any forbearance whether as to payment time performance or otherwise or by any other indulgence or matter of whatever nature accorded by the Employer to the Contractor.

3.

This Guarantee shall take effect from the date hereof and remain in full force and effect until (please

refer to Table 1 for formula to compute initial expiry date) provided always that the expiry date of this Guarantee and the Guarantors liability thereunder shall be automatically extended for successive periods of 6 months unless the Guarantor gives the Employer 90 days' written notice prior to the expiry of the Guarantors liability of their intention not to extend this Guarantee in respect of any future extension and provided further that the Employer shall be entitled, upon receiving such notice of the Guarantors intention (and within the period specified in Clause 4 hereof), either to: (a) (b) make a claim under this Guarantee; or direct the Guarantor to pay forthwith such amount (not exceeding the maximum aggregate sum) as the Employer may specify into a suspense account to be governed and disbursed by the Guarantor subject to the Association of Banks in Singapore's Guidelines for operation of a Suspense Account in force as at the date hereof. (A copy is annexed hereto and marked A); or (c) direct the Guarantor to extend the validity of this Guarantee for a further period not exceeding 12 months (and this Guarantee shall then expire at the end of such further period). At any time before the end of such further period (and within the period specified in Clause 4 hereof), the Employer shall be entitled to direct the Guarantor to pay forthwith such amount (not exceeding the maximum aggregate sum) as the Employer may specify into a suspense account to be governed and disbursed by the Guarantor subject to the Association of Banks in Singapore's Guidelines for operation of a Suspense Account (Annex A). For the purpose of this clause, service of the above 90 days written notice shall be due service only if it is addressed to the Group Director (Development & Procurement) and the same being received by him at 21
st

Storey West Wing, HDB Hub, 480 Lorong 6 Toa Payoh, Singapore 310480 or such other address stipulated for this purpose as notified in writing by the Employer to the Guarantor.

4.

Any claim or direction as specified herein being made by the Employer shall be by way of a notice in

writing addressed to the Guarantor and the same being received by the Guarantor at the address stated hereof within 90 days from the expiry of this Guarantee.

5.

This Guarantee or the copy thereof in the Employer's possession shall be retained by the Employer

even after termination of all liabilities hereunder.

Table 1:

Computation of Initial Expiry Date Building Contract

Formula Latest of {Date for Completion + DLP, for various phases} + 12 months

Performance Guarantee to be issued by Bank Pg 2 of 4 PG FOR BUILDING CONTRACTS 042013

ANNEX A-1

ABS GUIDELINES FOR OPERATION OF A SUSPENSE ACCOUNT

These ABS Guidelines are intended to apply to all guarantees, indemnities, bonds and/or similar instruments issued by member banks and which refer to these Guidelines

1. When a customer (Applicant/Contractor) applies for the issuance of a bank guarantee, indemnity, bond and/or similar instrument (BG), the bank issuing the BG (issuing Bank) should advise the Applicant/Contractor if the BG includes an automatic extension clause. If the Issuing Bank does not intend to extend the validity of a BG with an automatic extension clause, the Issuing Bank shall give the requisite notice thereof to the Applicant/Contractor and the beneficiary under the BG (Beneficiary) prior to the expiry date of the BG. One of the following may occur after the Issuing Bank gives the notice mentioned in Guideline 2: (i) The Applicant/Contractor may arrange for a replacement instrument (acceptable to the Beneficiary) to be issued by another bank or financial institution and the Issuing Banks responsibilities under the BG will expire; A Replacement Guarantee may be obtained

2.

3.

(ii) The Beneficiary may make a claim under the BG prior to its expiry and thereupon such claim will be processed by the Issuing Bank under the terms and conditions as set out in the BG; or (iii)

Beneficiary may make a Claim

Beneficiary may direct payment to a Suspense Account subject to these Guidelines When the Beneficiary directs the Issuing Bank to pay the relevant amount under the BG to a suspense account to be governed by these Guidelines (Suspense Account), the Issuing Bank shall:

(a) pay the relevant amount into the Suspense Account; make payment of amounts not exceeding the credit balance in the Suspense Account from the Suspense Account to the Beneficiary upon receiving the Beneficiarys written notice seeking such payment without inquiry into the reasons, circumstances or authenticity of the grounds for such notice (and without prior reference to the Applicant/Contractor); upon receiving the Beneficiarys written and unconditional confirmation that the Beneficiary has no further claim or interest to the moneys in the Suspense Account, hold the moneys in the Suspense Account subject to appropriate payment directions from the Applicant/Contractor or other person(s) entitled thereto.

(b)

(c)

Performance Guarantee to be issued by Bank Pg 3 of 4 PG FOR BUILDING CONTRACTS 042013

ANNEX A -2

4. If the payment into the Suspense Account mentioned in Guideline 3 (iii) (a) is made by the Issuing Bank from cash funds made available by the Applicant/Contractor: (i) the Issuing Bank shall not impose any additional cost for setting -up the Suspense Account; and interest on the moneys placed in the Suspense Account shall accrue at the prevailing interest rate of the Issuing Bank for Singapore Dollar savings accounts for the period that the moneys remain in the Suspense Account.

(ii)

5. If the Issuing Bank is unfunded by the Applicant/Contractor when the payment into the Suspense Account mentioned in Guideline 3 (iii) (a) is made, the Issuing Bank shall retain all rights of recourse against the Applicant/Contractor and/or other person(s) in respect thereto.

Performance Guarantee to be issued by Bank Pg 4 of 4 PG FOR BUILDING CONTRACTS 042013