Para 8.7.3 — CONSULT_MANUAL

8.7.4 Acknowledgement of Contract by Successful Bidder and Execution 1. After the successful bidder is notified that his bid has been accepted, he will be sent an agreement in duplicate for signature and return, incorporating all agreements between the parties.

2. The consultant should acknowledge and unconditionally accept, sign, date and return the agreement within 14 (fourteen) days from the date of issue of the contract in case of OTE and 28 (twenty-eight) days in case of GTE. Such acknowledgements may not be required in low value contracts, below Rupees Five (5) Lakh or when the bidders offer has been accepted in entirety, without any modifications. While acknowledging the contract, the consultant may raise issues and/ or ask for modifications against some entries in the contract; such aspects

8.7.3 Performance Security The consultant receiving the LoA is required to furnish the required performance security, if it is part of tender conditions, in the prescribed form within period prescribed in the tender document (generally 14 (fourteen) to 28 (twenty-eight), depending on the amount), as per para 6.1.2 above. In case performance security is not submitted within the stipulated time, procuring entity may pursue the contractor upto a reasonable grace period further for submission. In case the firm fails to submit the requisite Performance Security even thereafter or fails to sign the contact it may be treated as withdrawal of offer by L1 or H-1 bidder (as the case may be), and the tender may be reinvited, besides taking necessary punitive actions including forfeiture of EMD against such bidders.

Manual for Procurement of Consultancy Services, Second Edition, 2025 shall be immediately be investigated for necessary action and, thereafter, the consultant’s unconditional acceptance of the contract obtained. If both parties (Procuring Entity and the consultant) simultaneously sign the contract across the table, further acknowledgement from the consultant is not required. It should also be made known to the successful bidder that in case he does not furnish the required performance security or does not accept the contract within the stipulated target dates, such non-compliance will constitute sufficient ground for forfeiture of its EMD and processing the case for further action against it (the successful bidder). Procuring Entity may also consider getting the contract digitally signed.

3. All contracts shall be signed and entered into after receipt and verification of the requisite performance security, by an authority empowered to do so by or under the orders of the President of India in terms of Article 299 (1) of the Constitution of India. The words “for and on behalf of the President of India” in case of Ministry/ Department should follow the designation appended below the signature of the officer authorised on this behalf. The various classes of contracts and assurances of property, which may be executed by different authorities, are specified in the DFPR (Annexure 1). In case of CPSE and other organisations the contract shall be signed for and on behalf of the head of the organisation. No contract should be entered into by any authority which has not been empowered to do so.