the guarantee. The guarantee shall continue to remain valid until the contract has been  fully and properly performed.  11.5. During the execution of the contract, if the natural or legal person providing the guarantee  (i) is not able or willing to abide by its commitments, (ii) is not authorised to issue  guarantees to contracting authorities, or (iii) appears not to be financially reliable, the  guarantee shall be replaced. The contracting authority shall give formal notice to the  contractor to provide a new guarantee on the same terms as the previous one. Should the  contractor fail to provide a new guarantee, the contracting authority may terminate the  contract. 11.6. The contracting authority shall demand payment from the guarantee of all sums for which  the guarantor is liable under the guarantee due to the contractor's default under the  contract, in accordance with the terms of the guarantee and up to the value thereof. The  guarantor shall, without delay, pay those sums upon demand from the contracting  authority and may not raise any objection for any reason whatsoever. Prior to making any  claim under the performance guarantee, the contracting authority shall notify the  contractor stating the nature of the default in respect of which the claim is to be made.  11.7. Unless the special conditions provide otherwise, the performance guarantee shall be  released within 60 days of the issuing of the signed final acceptance certificate for its total  amount except for amounts which are the subject of amicable settlement, arbitration or  litigation.  12.1. Liabilities  a) Liability for damage to supplies  b) Contractor's liability in respect of the contracting authority  The liability rules described below are without prejudice to the possible application of  international conventions on the carriage of goods.  Without prejudice to Article 32 (warranty obligations) and Article 38 (force majeure), the  contractor shall assume (i) full responsibility for maintaining the integrity of the supplies  and (ii) the risk of loss and damage, whatever their cause, until the final acceptance as  foreseen in Article 34. Compensation for damage to the supplies resulting from the contractor's liability in  respect of the contracting authority is capped at an amount equal to one million euros if  the contract value is less than or equal to one million euros. If the contract value is greater  than one million euros, compensation for damages resulting from the contractor's liability  shall be capped to the contract value.  However, compensation for loss or damage resulting from fraud or gross negligence of  the contractor, its staff, its subcontractors and any person for which the contractor is  answerable, can in no case be capped.  At any time, the contractor shall be responsible for and shall indemnify the contracting  authority for any damage caused to the contracting authority by the contractor, its staff,  its subcontractors and any person for which the contractor is answerable.  Page 10 of 36  August 2020 c4e_annexigc_en  Article 12 -  Liabilities and insurance 