Performance Guarantee Services by
Bank Pembangunan Malaysia Berhad
Ensuring Contract Fulfilment & Project Security
Overview of Performance Guarantee
A Performance Guarantee is a bank-issued financial instrument that protects the beneficiary against losses arising from a contractor’s or supplier’s failure to fulfill contractual obligations. It assures that agreed performance standards, timelines, and deliverables will be met, or financial compensation will be provided.
At BPMB, we structure Performance Guarantees that safeguard projects, strengthen contractual confidence, and reduce execution risk in domestic and international agreements.
At BPMB, we structure Performance Guarantees that safeguard projects, strengthen contractual confidence, and reduce execution risk in domestic and international agreements.
Why Performance Guarantees Are Critical
In projects involving construction, infrastructure, manufacturing, or long-term service contracts, performance risk can significantly impact timelines and financial outcomes. A Performance Guarantee provides a safety mechanism by ensuring financial recourse if contractual performance is not achieved.
Performance Guarantees are commonly required to:
Performance Guarantees are commonly required to:
Protect project owners against non-performance
Ensure contract compliance and accountability
Reduce financial exposure during execution phases
Strengthen trust between contracting parties
How a Performance Guarantee Works
A contract is signed requiring performance assurance
The contractor or supplier applies for a Performance Guarantee
The guarantee is issued by a bank in favor of the beneficiary
The contractor executes the project as per contract terms
In case of default or non-performance, a claim may be submitted
The bank compensates the beneficiary as per guarantee terms
This structure ensures project protection without interrupting normal operations.
Types of Performance Guarantee Solutions
Contract Performance Guarantee
Ensures that contractual obligations are fulfilled throughout the project duration.
Project Completion Guarantee
Provides financial protection if a project is not completed within agreed parameters.
Service Performance Guarantee
Applies to service contracts, ensuring agreed service levels and delivery standards are met.
Key Benefits of BPMB Performance Guarantee Services
- Protects against contractor default and non-performance
- Provides financial recourse during project execution
- Enhances confidence in long-term contracts
- Reduces execution and delivery risk
- Supports large-scale and international projects
BPMB’s Approach to Performance Guarantees
BPMB delivers advisory-led Performance Guarantee solutions that align with commercial contracts and international banking practices.
Our services include:
Our services include:
Contract review and risk assessment
Coordination with reliable banking partners
Customized guarantee structuring
Compliance-focused documentation and execution
Clear definition of claim and trigger conditions
Who Can Benefit from Performance Guarantee Services
Construction and infrastructure companies
Engineering and manufacturing firms
Project owners and developers
Government and public sector projects
Businesses executing long-term contracts
Why Choose Performance Guarantee Services
Expertise in project-based financial instruments
Tailored guarantee structures
Bank-backed and compliant solutions
Professional advisory and execution support
Strong focus on risk mitigation and contract security
Protect Your Projects with Bank Pembangunan Malaysia Berhad
A Performance Guarantee is essential for ensuring contract fulfilment and project security. With BPMB’s structured Performance Guarantee services, businesses can execute projects with confidence and financial protection.
Partner with BPMB to secure performance, manage risk, and deliver projects successfully.
Partner with BPMB to secure performance, manage risk, and deliver projects successfully.