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Invocation of bg of contractor by govt. entity

CA. SHOMDIP GHOSH (Finance Specialist in Wat-San Project (E&PMC)) (33 Points)

01 November 2014

Need detailed process of Invocation of BG of defaulting Contractor by a Govt. Utility Board set up under Act of a State Legislature. Does it need concurrence of Finance and Legal Dept of the State Govt. ?

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3 Replies

CA Bipin Kumar (Service) (250 Points)
Replied 01 November 2014

Hii Shimdip Ji, There in no legal proceeding required. Just you have to provide original BG with an application mentioning details that why you want to invoke BG.

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CA Bipin Kumar (Service) (250 Points)
Replied 01 November 2014

Just submit these details to bank

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CA. SHOMDIP GHOSH (Finance Specialist in Wat-San Project (E&PMC)) (33 Points)
Replied 02 November 2014

Dear Bipin ji, Thank you for your reply...Though I am well aware of the process of invocation in totality, as such, however still I am a bit antsy about the necessity of such clearances from the concerned State Govt. Finance & Legal depts in the wake of the State Govt being a party to the loan borrowing from an international development agency funding construction that was contracted out to the Contractor in question....

I hope some member expert here who has had similar experience in any PMU / EPMC would elucidate and clarify.

Regards