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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.


Transfer of EMD to Security Deposit Head Account

Finance

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

Public 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

Finance

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

Public Works

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

Finance

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.
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