Performance guarantee
This query is : Resolved
11 May 2019
Hi,
We are preparing a software. However we will outsource the coding to technical developer since that involves technical knowledge. In this scenario , how can we protect ourselves from technical developer delivering services on time and if he backs out during actual performance i.e non performance or performance not as per expectations. Similar situations must be experienced by others as well Eg in case of FMCG companies where actual manufacturers are different OR actors/performers/voice artist wherein there is lot of dependency on others and entire arrangement will be of no use if other party does not turn out.
Please advice if we can go for performance bank guarantee or any other procedure which is normally executed in such situations
Regards,
We are preparing a software. However we will outsource the coding to technical developer since that involves technical knowledge. In this scenario , how can we protect ourselves from technical developer delivering services on time and if he backs out during actual performance i.e non performance or performance not as per expectations. Similar situations must be experienced by others as well Eg in case of FMCG companies where actual manufacturers are different OR actors/performers/voice artist wherein there is lot of dependency on others and entire arrangement will be of no use if other party does not turn out.
Please advice if we can go for performance bank guarantee or any other procedure which is normally executed in such situations
Regards,
11 May 2019
Yes go for 100% performance bank guarantee for the money payable till the satisfactory completion of the project.
11 May 2019
Ok. And how can we proceed if there is continuous support required.
Also legal document is termed as Performance Bank Guarantee?
Regards,
Also legal document is termed as Performance Bank Guarantee?
Regards,
11 May 2019
Then obtain 10% performance bank guarantee and claim full payment and damages as per clause included in the agreement for non performance.
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