Table of Contents
Is tender security refundable?
(i.e. Earnest Money Deposit) means monetary guarantee to be furnished by a Bidder along with its Bid. Bid Security means the refundable amount to be submitted by the Bidder along with Tender Documents to DMRC as a security against the earnestness of bid.
What is performance security in tender?
Performance Security means monetary or financial guarantee to be furnished by the successful tenderer for due performance of the contract placed on it. Performance Security means monetary or financial guarantee to be furnished by the successful bidder for due performance of the contract placed on it.
What is bid security in contract?
The bid security is essentially saying that if the contractor is low and awarded the project, they will enter into the contract at the price represented in the bid. Bid security ensure they will provide Payment & Performance bonds that guarantee the contract.
What you mean by procurement?
Procurement is the act of obtaining goods or services, typically for business purposes. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale.
What is the purpose of tender bond?
A tender bond (or a temporary guarantee, as it is called in the Tender Laws) will be required to be deposited together with the tender. This is a security in a lump sum amount fixed by the concerned governmental party.
What is EMD and security deposit?
No interest is payable upon the earnest money to the contractors. EMD of the lowest tenderer whose tender is normally accepted is retained by the department as a part of security deposit for due performance of contract.
What is EPBG in GeM?
Objective: Design , Development and Deployment of E-PBG Module for obtaining Performance Bank Guarantee for transacting business without human interface on GeM Portal and achieving overall cost efficiency of procurement through automation of processes.
What is tender security deposit?
14. Tender Security means security provided to the procurement entity to secure the fulfillment of an obligation under this Act and includes arrangements such as bank guarantees, surety bonds, stand-by letters of credit, cheques on which a bank is primarily liable, cash deposits and bills of exchange; Sample 1. Sample …
What is tender validity period?
3.6. 1 The Tender Validity Period as mentioned in the tender is the period within which the Undertaking is required to enter into contract with the successful tenderer. On expiry of such period, the rates quoted in the tender are not binding upon the tenderer.
What is the difference between bond and guarantee?
Bond: An Overview. A bank guarantee is often included as part of a bank loan as a provision promising that if a borrower defaults on the repayment of a loan, the bank will cover the loss. A bond is essentially a loan issued by an entity and invested in by outside investors.
What does it mean to tender?
What is ‘Tender’. Tender usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a finite deadline. The term also refers to the process whereby shareholders submit their shares or securities in response to a takeover offer.
What does tender mean in business?
A business tender is an offer to do work or supply goods at a fixed price. The tender or bid process is designed to ensure that the work to be done is given out in a fair way.
What is a tender offer?
Understanding a Tender Offer. A tender offer occurs when an acquiring company offers to buy another company,the target,at a specified price.
What is tender money?
Money, as legal tender, is a commodity, asset or an officially issued currency that one can legally exchange for something of equal value, such as a good or service, or to pay a debt. Currency may include notice of the legal tender status.