Renovation of class III flats (B-15 and H-78) at Bank’s Staff Quarters, Thamalam, Thiruvananthapuram

Performance Bank Guarantee clause

1. Successful bidder shall pay as Earnest Money Deposit a sum equivalent to 2% of the value of work through NEFT/ Bank guarantee.  The EMD shall not be accepted in any form other than the one mentioned in the tender notice. The EMD shall be forfeited in case the contractor fails to commence the work awarded to her/him within the prescribed time limit. On awarding the work, the successful bidder shall also submit a Performance Bank Guarantee (PBG) for 5% of the accepted Contract Value, valid for the Contract Period for due fulfilment of the contractual obligations by the contractor. In case of delay in submission of EMD & PBG due to unavoidable circumstances, charges shall be recovered from the bills of the contractor at Bank’s rate.

The EMD and PBG paid by the successful tenderer shall be held by the Reserve Bank of India as Security Deposit (SD) for execution and fulfilment of the contract.  No interest shall be paid on this deposit.  The Bank will withhold 5% of the total value of work done from their bill/s as Retention Money. The SD (EMD + PBG) shall be released to the contractor on virtual completion and the R.M. shall be released after successful completion of 12 months of Defect Liability Period. The Security Deposit of the successful tenderer and R.M. will be forfeited if he fails to comply with any of the conditions of contract.