Additional Performance Security in Road Projects
Government of West Bengal
Public Works Department
Planning Branch
Nabanna, Howrah
No. 1T-06/2017/444-R/PL Date: 18.04.17
MEMORANDUM
Sub: Additional Performance Security in Road Projects.
It has been observed that in some Road Projects bids have been received at much lower rate in comparison with the estimated amount put to tender, which leads to a doubt regarding the quality and proper execution of the work for which such bids have been received.
To safeguard the interest of the Government, the Governor is pleased to introduce Additional Performance Security for the cases as mentioned below in all road works under PWD.
The Additional Performance Security shall be obtained from the successful bidder, if the accepted bid value is more than 20% less than the estimated amount put to tender, from the successful bidder having own prime machineries for construction of road works as detailed in Annexure-I. If the successful bidder not having ownership of any of the prime machineries as stated above, the Additional Performance Security shall be obtained from the successful bidder if the accepted bid value is more than 10% less than the estimated amount put to tender.
The Additional Performance Security shall be equal to 10% of the tendered amount.
The Additional Performance Security shall be submitted in the form of Bank Guarantee from any Scheduled Bank as per enclosed format (Annexure-II) before issuance of Work Order. If the bidder fails to submit the Additional Performance Security within seven working days from the date of issuance of Letter of Acceptance, his earnest money will be forfeited.
The said Bank Guarantee shall be valid up to the end of the Contract Period and shall be renewed accordingly, if required. The said Bank Guarantee shall be returned immediately after successful completion of the Contract.
If the bidder fails to complete the work successfully, the Additional Performance Security shall be forfeited at any time during the pendency of the Contract period after serving proper notice to the Contractor.
Necessary provisions regarding deduction of security deposit from the progressive bills of the contractor as per relevant clauses of the contract will in no way affected/ altered by this Additional Performance Security.
Henceforth necessary provision shall be incorporated in all Notice Inviting Tenders and should be a part of the Contract Agreement.
This order will take immediate effect.
Necessary modifications will subsequently be made in the PWD Code.
This order is issued with the concurrence of the Finance Department, Gr – ‘T’ vide their U.O No. Group T/2016-2017/0957 dated 28.03.2017.
All concerned are being informed.
By order of the Governor
Sd/- Indevar Pandey
Principal Secretary
Public Works Department