Under FIDIC 2017 editions, the Performance Security protects the Employer against failure by the Contractor to fulfill contractual obligations. The Employer may claim under the Performance Security in the following cases:
Option A: Failure to renew the Tender Security as required during the tendering or contract formation phase can allow Employer to make a claim, since the security guarantees the Contractor’s commitments at this stage.
Option E: Failure to extend the validity of the Performance Security when requested or required breaches contractual obligations and enables the Employer to claim under the security.
Option B is incorrect because abandonment without termination notice does not immediately entitle the Employer to claim under Performance Security; formal termination is usually required first.
Option C is incorrect because submitting a claim under Sub-Clause 20.2 (Employer’s claims) does not directly correlate with claiming under Performance Security.
Option D is irrelevant; instructions to replace works do not relate to Performance Security claims.
[References:, , FIDIC Red, Yellow, and Silver Books 2017 Edition, Sub-Clause 4.2 – Performance Security, , FIDIC Contract Manager Study Guide, Module on Risk Management and Securities, ]
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