Para 4.11 — WORKS_MANUAL

The Bid Security may be obtained in the form of Insurance Surety Bonds35, account payee demand draft, fixed deposit receipt, banker’s cheque or Bank Guarantee from any of the Commercial Banks or payment online in an acceptable form, safeguarding the purchaser’s interest in all respects. The bid security is normally to remain valid for a period of 45 (fortyfive) days beyond the final bid validity period.

In appropriate cases, in place of a Bid security, Procuring Entities may consider asking Bidders to sign a Bid securing declaration accepting that if they withdraw or modify their Bids during the period of validity, or if they are awarded the contract and they fail to sign the contract, or to submit a performance security before the deadline defined in the request for bids/ request for proposals document, they will be suspended for the period of time specified in the request for bids/ request for proposals document from being eligible to submit Bids/ Proposals for contracts with the procuring entity.

In appropriate cases, Submission of the bid security may be waived with the Competent Authority’s (CA’s) approval in the case of indigenisation/ development tenders, limited tenders and Single Tender.

4.11 Bid Security/ Earnest Money Deposit (EMD) To safe guard against a bidder’s with drawing or altering its bid during the bid validity period in the case of OTE and GTE tenders, bid security [also known as Earnest Money Deposit (EMD)] is to be obtained from the bidders along with their bids. Any bid not accompanied by the requisite bid security shall be rejected as non-responsive in accordance with provisions of the bidding document. The amount of bid security should generally be between two to five per cent of the estimated value of the goods to be procured. The amount of bid security, rounded off to the nearest thousands of Rupees, as determined by the Procuring Entity, is to be indicated in the bidding documents.

Bid securities of the unsuccessful bidders should be returned at the earliest after expiry of the final bid validity period and latest by the 30th day after the award of the contract. Bid security should be refunded to the successful bidder on receipt of a performance security. However, in case of two packet or two stage bidding, Bid securities of unsuccessful bidders during first stage i.e. technical evaluation etc. should be returned within 30 days of declaration of result of first stage i.e. technical evaluation etc.36

A bidder’s bid security will be forfeited if the bidder i) withdraws or amends its/ his tender; ii) impairs or derogates from the tender in any respect within the period of validity of the tender; iii) If the bidder does not accept the correction of his bid price during evaluation; and iv) If the successful bidder fails to sign the contract or furnish the required performance security within the specified period.