Unless otherwise expressly provided for in the Particular Conditions and without prejudice to any specific requirement under the Subcontract, whenever the Main Contract provides for the furnishing of bonds or bank guarantees by the CONTRACTOR, the SUBCONTRACTOR shall, in respect of the Subcontract Works, furnish to the CONTRACTOR such bonds or bank guarantees in the same form and percentage as those to be furnished by the CONTRACTOR to the COMPANY or some other amount to be mutually agreed between the CONTRACTOR and the SUBCONTRACTOR (the On Demand Bonds). Such On Demand Bonds shall be in the forms as set forth in Appendix G and issued by a first class international bank approved by the CONTRACTOR.
All costs and expenses incurred by the SUBCONTRACTOR in furnishing, extending, amending and/or canceling any On Demand Bonds shall be borne by the SUBCONTRACTOR.
The amount of On Demand Bonds shall in no way be construed as a limitation of the SUBCONTRACTOR’s liability and responsibility under the Subcontract and shall in no way prevent the CONTRACTOR from claiming indemnification for damages suffered by it which may exceed the amount of On Demand Bonds.
The SUBCONTRACTOR shall on or before Effective Date obtain, deliver to the CONTRACTOR and thereafter maintain until fourteen (14) Days after the end of the last Warranty Period one (1) duly executed, valid and binding irrevocable bank guarantee (the Performance Bond) in favor of the CONTRACTOR in the form as set forth in Appendix G. The amount of Performance Bond shall be as specified in Article 3.2 of the Particular Conditions.