RUSSEL MANAGEMENTWhat it does
A Performance Guarantee supports a contractor’s or supplier’s commitment to deliver according to the underlying contract. If the stated performance obligation is not met, the beneficiary may claim under the guarantee subject to its terms.
Where it is used
Construction, engineering, supply, infrastructure, energy and service contracts where timely and compliant performance is essential.
How we approach the mandate
We begin with the underlying commercial requirement, proposed wording, amount, tenor, applicant, beneficiary and receiving institution. After compliance and feasibility review, the structure and execution pathway are agreed before any issuance process begins.
Typical structuring considerations
- Contract-linked amount and expiry
- Milestone-aware structuring
- Beneficiary protection
- Extension and amendment support
Important distinction
The instrument must match the actual commercial obligation. Acceptance, issuance route, governing rules, claim conditions and bank-to-bank delivery requirements should be confirmed before execution. All services remain subject to due diligence, sanctions screening, institutional approval and applicable law.