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.
Security Deposit in Government Works
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.
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.
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.
Procedure for Transfer of EMD received online through the e-tender portal to the Security Deposit Head of Account maintained at the Treasury/PAO.
For repair and maintenance nature of bituminous road work or combination thereof the Defect Liability period should be considered as one year.
In respect of EMD/SD money, refund will be drawn on sanction of respective Departmental Officer in whose favour amount has been deposited through GRIPS portal.