Bank guarantee

Guest (Querist) 05 January 2015 This query is : Resolved
Hi, need your opinion. We had auctioned the tolls on our one road stretch for one year 01.04.2013 to 31.03.2014 to contractor X. X had given us bank guarantee as security. Then we extended the contract and according X extended the bank guarantee till November 2014.

Now in November 2014, we again auctioned tolls (securitize) on same road stretch for one year December 2014 to November 2015. The contractor who won the bid is same X. Now he is saying that he will extend the earlier bank guarantee only. Is it valid? In case in future if we have to evoke the Bank Guarantee will the bank honour it. The Bank is ready to write that it is extension of 2013 bank guarantee and the work name is securitization. Won’t we require new bank guarantee as the contract is new.

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