Performance Security/ Security Deposit reduced to 3%
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%.
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.
Release of Security Deposit/ Bank Guarantee to Contractor
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
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
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.
Transfer of EMD to Security Deposit Head Account
Procedure for Transfer of EMD received online through the e-tender portal to the Security Deposit Head of Account maintained at the Treasury/PAO.
Duration of Defect Liability Period in Road Works
For repair and maintenance nature of bituminous road work or combination thereof the Defect Liability period should be considered as one year.
Refund of Tax/ Non-Tax Revenue incl. EMD/ SD Money
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.
Releasing Security Deposit after Completion of Work
Security Deposit will be released after issuance of Completion Certificate on submission of unconditional BANK GUARANTEE by the Contractor for the Security Deposit.
Release of Payment to Executing Agency by Administrative Dte
Performance security: 5 percent after lapse of the test performance period/ Defect Liability Period to be fixed by the competent authority of the Department concerned.