Document background
The Performance Guarantee In Tender serves as a critical risk mitigation tool in Malaysian tender processes, providing financial security to tender issuers against potential defaults or withdrawals by tender participants. This document is commonly required in both public and private sector tenders, particularly for high-value projects in construction, infrastructure, and government procurement. Under Malaysian law, these guarantees must comply with specific regulatory requirements, including those set by Bank Negara Malaysia and relevant procurement authorities. The guarantee typically specifies the maximum liability amount, validity period, calling conditions, and claim procedures, while also incorporating necessary provisions for compliance with Malaysian banking and contract laws. This type of guarantee is essential for maintaining the integrity of the tender process and ensuring serious participation from bidders.
