(1) The bidder of the accepted bid, when submitting the performance bond in accordance with subsection (4) of section 27 of the Act, shall submit the performance bond issued by the Chamber of Commerce 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 amount of the performance bond as per sub-rule (1) shall be five percent of the purchase contract amount.
(3) According to sub-rule (2), in the case of non-disclosure agreement, the performance bond specified in the tender documents must be submitted.
(4) Except as provided otherwise in the purchase agreement, the valid period of the performance bond as per sub-rule (1) shall be less than the last period of delivery or delivery of the goods mentioned in such contract or the period of warranty or the period of the obligation to correct defects in the construction work (defect liabilities). It should be for a period of more than one month.
(5) A performance guarantee issued by a foreign bank shall be valid only if a commercial bank established in Nepal has given a counter guarantee.