When the bidder of the accepted bid submits the performance bond in accordance with subsection (4) of section 27 of the Act, he shall submit the performance bond issued by the commercial bank within the time limit specified in subsection (3) of section 27 of the Act in the format mentioned in the documents related to the bid.
(2) The performance bond as per sub-rule (1) shall be in the amount mentioned in sub-section (4) of section 27 of the Act.
(3) According to sub-rule (2), in the case of non-payment of funds in the procurement contract, the public body shall submit the performance guarantee specified in the tender documents.
(4) Except as otherwise provided in the purchase agreement, the valid period of the performance guarantee as per sub-rule (1) shall be less than the last period of delivery or delivery of the goods mentioned in such agreement or the period of guarantee (warranty) or the period of the obligation to correct the error of the construction work (defect liabilities). It should be for a period of more than one month.
(2) The performance guarantee issued by a foreign bank shall be valid only if it is counter guaranteed by a commercial bank established in Nepal.