Lawyer signing legal documents

Client Query 139:- Hi, wanted to confirm that is the performance guarantee in shape of Insurance Bond from AA rating company acceptable for provision of consultancy services?


Nasir Riaz, UK


Answer:- Thanks for writing to us! As per your query, according to Rule 39 of the Public Procurement Rules, 2004 provides that where needed and clearly expressed in the bidding documents, the procuring agency shall require the successful bidder to furnish a performance guarantee, which shall not exceed ten percent of the contract amount. It is for a procuring agency to decide and demand performance guarantee at a prescribed percentage of the contract amount. However, mode and method for submission of performance guarantee is not given in Rule 39 for procurement of goods and services, which needs to be elaborated in the bidding documents. It is upto the procuring agency to decide mode and method of submission of performance guarantee in an appropriate manner from the successful bidder acceptable to the procuring agency.

If you wish to inquire anything else you may set up an appointment with our extremely competent team of lawyers and visit our office which is located at GF-13, Tower A, The Centaurus, Islamabad, Pakistan.

You can also reach us at 0092-300-5075993


By The Josh and Mak Team

Josh and Mak International is a distinguished law firm with a rich legacy that sets us apart in the legal profession. With years of experience and expertise, we have earned a reputation as a trusted and reputable name in the field. Our firm is built on the pillars of professionalism, integrity, and an unwavering commitment to providing excellent legal services. We have a profound understanding of the law and its complexities, enabling us to deliver tailored legal solutions to meet the unique needs of each client. As a virtual law firm, we offer affordable, high-quality legal advice delivered with the same dedication and work ethic as traditional firms. Choose Josh and Mak International as your legal partner and gain an unfair strategic advantage over your competitors.