Performance Bank Guarantee Template for Qatar

A Performance Bank Guarantee is a crucial document in Qatar's business environment, particularly in construction and infrastructure projects. It serves as a risk mitigation tool where a bank provides financial security to a project owner regarding a contractor's performance obligations. The guarantee typically amounts to 10-20% of the contract value and remains valid throughout the project duration plus any warranty period. Under Qatar law, these guarantees must be issued by licensed banks, comply with Qatar Central Bank regulations, and follow specific formatting and authentication requirements. The document becomes especially relevant when bidding for government contracts or large commercial projects in Qatar, where performance guarantees are often mandatory requirements. The guarantee's unconditional nature, meaning the bank must pay upon compliant demand without investigating the underlying dispute, makes it a powerful security instrument in Qatar's commercial landscape.

1. Bank's Letterhead and Reference: Official letterhead of the issuing bank with guarantee reference number and date

2. Addressee Details: Full details of the beneficiary of the guarantee

3. Guarantee Amount: The maximum amount of the guarantee expressed in both numbers and words

4. Underlying Contract Reference: Details of the primary contract or obligation being guaranteed

5. Principal's Details: Full details of the party whose performance is being guaranteed

6. Guarantee Scope: Clear description of the obligations covered by the guarantee

7. Validity Period: Explicit start and end dates of the guarantee

8. Calling Conditions: Specific conditions and process for making a demand under the guarantee

9. Governing Law and Jurisdiction: Explicit reference to Qatar law and courts

10. Bank's Undertaking: The bank's unconditional commitment to pay upon valid demand

11. Authentication: Official bank signatures and stamps as required under Qatar law