Releasing Security Deposit after Completion of Work
Public Works, Security Deposit 👁️ 279
Security Deposit will be released after issuance of Completion Certificate on submission of unconditional BANK GUARANTEE by the Contractor for the Security Deposit.
Government of West Bengal
Public Works Department
CRC Branch
No. 52-CRC/2M-06/2014 Dated: 27/10/2014
NOTIFICATION
Whereas it is deemed expedient to do so:
IT has been decided by the Government to make additional provisions for release of Security Deposit after issuance of Completion Certificate of any work and on submission of unconditional Bank Guarantee by the Contractor in lieu of Security Deposit.
Now, therefore, the Governor is pleased to provide additional provisions in Clause 17 of CONDITIONS OF CONTRACT in the West Bengal Form NO. 2911/2911(i)/2911(ii) (Printed Tender Form), in the manner mentioned hereunder:
In cases of Refunding and Releasing of 100% Security Deposit held with the Government, arising out from works contract, Security Deposit will be released after issuance of Completion Certificate on submission of unconditional BANK GUARANTEE by the Contractor for the Security Deposit subject to the following conditions:-
1. The Bank Guarantee will be issued by a Scheduled Commercial Bank in favour of the Engineer-In-Charge of the concern work, PWD, Government of West Bengal on behalf of the contractor;
2. The Bank Guarantee will remain valid for the Defect liability period/ Security period as per contract of the work.
3. The Bank Guarantee will be submitted as per Format attached in Annexure-I. The Engineer-in-Charge should obtain confirmation of the Bank Guarantee directly from the Bank before its acceptance.
4. The Bank Guarantee, now pledged in the form of Security Deposit will be released to the contractor in the following manner, if not forfeited under conditions of contract-
i. 30 % of the same after expiry of 1(one) year from the date of issuance of completion certificate of work.
ii. Further 30 % of the same after expiry of 2(Two) years from the date of issuance of completion certificate of work.
iii. The balance 40% of the same after expiry of 3(Three) years from the date of issuance of completion certificate of work.
WHEREAFTER, In cases for those contractors, who will not intend to opt for the provisions laid down hereinabove for refund of security deposit, this Department’s earlier Notification no. 177-CRC/2M-57/2008 dt. 12/07/2012 shall be in force in the manner provided in the earlier aforesaid Notification.
This issues with concurrence of Group-T of Finance Department vide their U.O. No. Group T/2014-15/0705 dt. 13/10/2014 and U.O. No. Group T/2014-15/0608 dt. 05/09/14( Enclosed Annexure-I).
By order of the Governor
Sd/- Principal Secretary to the
Government of West Bengal
Public Works Department