Security Deposit

Security deposit is deducted from the contractor’s bill at the rate of ten percent of the final bill value which is later on released after the defect liability period is over.

Bank Guarantee Repository System (BGRS) by ICICI Bank

Finance

Recently, the ICICI Bank Ltd. has come up with the proposal for providing Bank Guarantee Repository System (BGRS) to State Government Offices free of cost for keeping track of all their Bank Guarantees.

Depositing Earnest Money by Labour Co-Operative Societies

Finance

The Labour Co-operative Societies shall continue to get exemption from depositing Earnest Money while participating in Government tenders.

Benefit of Reduced Performance Security/ Security Deposit of 3%

Finance

Validity of Finance Department Memo No. 201-F(Y) dated 18.01.2021 for allowing the benefit of reduction of Performance Security/ Security Deposit to 3% shall be extended to 31.03.2023.

Performance Security/ Security Deposit reduced to 3%

Finance

It is decided that the performance security for all existing contracts or the contracts which will be entered into within 31.12.2021 shall be reduced to 3% from the existing 10%.

Release of Security Deposit/ Bank Guarantee to Contractor

Public Works

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.

Additional Performance Security when Bid is 80% or Less

Finance

Additional Performance Security when the bid rate is 80% or less of the Estimate put to tender and no increase in scope of work of projects during execution phase.

Duration of Defect Liability Period in Govt. Works

Public Works

Defect Liability Period may be three months or one year or three years or five years depending upon the nature of the work as described in the explanation appended hereto.