No.DGW/MAN/140 ISSUED BY AUTHORITY OF DIRECTOR GENERAL OF WORKS NIRMAN BHAVAN,NEW DELHI DATED___23.11.2006_______
Sub : Earnest Money & Security Deposit regarding.
As per the decision taken in Technical Board meeting held on 28.09.06, following amendments are made to Works Manual 2003 related to earnest money and security deposit; a) Earnest money S.no. Item Existing Modified 1 Para The amount of the earnest The amount of the earnest money, which a contractor should money, which a contractor should 19.2 deposit with the tender, is deposit with the tender, is regulated regulated by the following scales. by the following scales. In case of In case of petty works costing Rs. petty works costing Rs. 5000/- or 5000/- or less the executive less the executive Engineer may, at Engineer may, at his discretion, his discretion, dispense with the dispense with the condition for condition for calling for earnest calling for earnest money. money. (i) For works estimated to cost (i) For works estimated to cost upto Rs. Twenty-five crores upto Rs. Ten crores 2% of the estimated cost. 2% (Two percent) of the (ii) For works estimated to cost more than Rs. Twenty-five crores. estimated cost. Rs. Fifty lakhs plus 1% of the (ii) For works estimated to cost more excess of estimated cost over Rs. than Rs. Ten crores Rs. Twenty-five crores. Twenty lakhs plus 1% (one percent) of the estimated cost in excess of over Rs. Ten crores.
2 Para The earnest money may be The earnest money may be
19.3 accepted only in the accepted in the following following forms: forms: i) Cash upto Rs.10,000/- ii) Treasury Challan. i) Cash upto Rs.10,000/- iii) Deposit at call receipt ii) Treasury Challan. of a Scheduled Bank iii) Deposit at call receipt of guaranteed by the a Scheduled Bank Reserve Bank of India. guaranteed by the iv) Banker’s Cheque. Reserve Bank of India. v) Demand Draft. iv) Banker’s Cheque. vi) FDR. v) Demand Draft. As per When amount of earnest vi) FDR. O.M. no. money is more than Rs. 5 lakh, When amount of earnest money is DGW/C part of earnest money is more than Rs. 5 lakh, part of earnest ON/203 acceptable in the form of bank money is acceptable in the form of dt. guarantee also. In such case, bank guarantee also. In such case, 30.9.04 minimum 50% of earnest minimum 50% of earnest money or money (but not less than Rs. 5 Rs. 20 lakh, which ever is less, will lakh) or Rs. 25 lakh, which have to be deposited in shape ever is less, will have to be prescribed above and balance can be deposited in shape prescribed accepted in form of, Bank Guarantee above. For balance amount of issued by a scheduled bank. earnest money, bank guarantee It should be ensured that the FDR will also be applicable. is valid for a period of six months or It should be ensured that the more after last date of receipt of FDR is valid for a period of six tenders and that it is pledged in months or more after last date favour of the tender inviting of receipt of tenders and that it authority. is pledged in favour of the If the banks are closed on the day tender inviting authority. of opening of tenders the date of If the banks are closed on the opening of tender shall be postponed day of opening of tenders the suitably. date of opening of tender shall be postponed suitably. 3 Security A sum @ 10% of the gross amount A sum @ 10% of the gross amount Deposit of the bill shall be deducted from of the bill shall be deducted from Para each running bill of the contractor each running bill of the contractor 20.1 of till sum along with the sum till sum along with the sum already Works already deposited as earnest deposited as earnest money, will Manual money, will amount to security amount to security deposit of 5% of 2003 deposit of 5% of the tendered the tendered value of the work. In value of the work. In addition the addition the contractor shall be contractor shall be required to required to deposit an amount equal deposit an amount equal to 5% of to 5% of the tendered value of the the tendered value of the contract contract as performance Security as performance Security within the within the period prescribed for period prescribed for commencement of work in letter of commencement of work in letter award issued to him. However, of award issued to him. Security deposit may be released against bank Guarantee issued by a Schedule bank on its accumulation to a minimum amount of Rs. 5 lakhs subject to the condition that amount of any Bank Guarantee except last one, shall not be less than Rs. 5 lacs.
Superintending Engineer (C&M)
Issued from File no. CSQ/CM/M/30(4)/2004/ Copy forwarded as per mailing list;