The Finance Department of the Government of Puducherry has notified reduction in performance security and other provisions vide Office Memorandum dated June 04, 2021. The following guidelines have been released:
- Performance Security: The performance security has been reduced from 5-10% to 3% of the value of contract. This shall be applicable for all existing contracts (except contracts under arbitration/court proceedings) and all tenders/contracts issued/concluded till 31.12.2021.
- Bid Security/Earnest Money Deposit: No provisions regarding Bid Security should be kept-in the Bid Documents in future and only provisions for Bid Security Declaration should be kept in the Bid Documents. This shall be Applicable for all contracts issued till 31.12.2021.
- Additional Performance Security in case of Abnormally Low Bids (ALBs): No provision should be kept in the Bid Documents regarding Additional Security Deposit/ Bank Guarantee (BG) in case of abnormally low bids.
*Tanvi Singh, Editorial Assistant has put this story together.