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ACCEPTANCE OF BANK GUARANTEE SUBMITTED BY THE BIDDER TOWARDS
EMD/BID SECURITY/BID GUARANTEE:
It has been often experienced that the Bank Guarantee submitted as EMD or Bid Security deviates
from the standard format as provided in the bidding document. While such a Bank Guarantee,
with value and validity different from that prescribed in NIT shall not be accepted. However, it would
not be prudent to reject a Bank Guarantee with changed text but otherwise meeting the
intent and purpose, as well as other important parameters such as value and validity etc. Accordingly,
such cases need to be dealt with as described below.
The Bank Guarantee shall not be accepted and bid shall be rejected, if :
a. The name of the NIT mentioned in the BG is different from the NIT for which bids have
been invited.
b. The firm/proprietor, on whose behalf the bank guarantee has been furnished, is different
from the bidder.
c. The Bank Guarantee is not of the prescribed value.
d. The validity of the Bank Guarantee is less than the stipulated period. However, the shortfall, if
any, up to a period of 7 (seven) days, shall be acceptable. Further, an additional shortfall only
in the following cases shall be acceptable:
i. If the dead line of submission of bids and the date of bid opening has been extended once,
with the period of extension being less than or equal to 15 days, a shortfall up to the period of
extension shall be acceptable.
ii. If the dead line for submission of bids and the date of bid opening has been extended more
than once, with the period of total extension being less than or equal to 15 days, a shortfall up to
the period of total extension shall be acceptable.
Note :- The Bank Guarantee to be prepared on non judicial stamp paper of appropriate value
which vary from state to state and time to time. As such no rate has been prescribed. It has to be
verified from the bank.
If the text of the BG furnished by a bidder is at variance from the given in the bidding documents, the
BG shall not be rejected merely on that ground. It shall be examined by the concerned
Purchase Officer to ascertain whether it meets the required intent and purpose of EMD / bid security.
If the BG is not found acceptable, the bid shall be treated as non-responsive. If the BG is found to
meet the intent and purpose of bid security, despite the variance in text, the concerned Purchase
Officer shall obtain the vetting of the same by the legal cell. Thereafter, Tender Inviting Authority
shall approve it for acceptance. The checklist for acceptance of BG and The formats for BG against
EMD/SD/Advance and extension are given at the end of this manual.
For procurement of vehicle, exclusion of Security Deposit cum Performance Guarantee Clause in NIT
may be considered with the approval of TIA. The custody of the BG. should be with the concerned
Accounts Deptt, who in turn will monitor the same and lodge a conditional claim with the Banker
one month in advance before the expiry of the Bank Guarantee. The Accounts Deptt should also send
a copy to Engineer in charge and C&M Deptt for extension /disposal of the BG. If no response is
received for extension within the time Schedule, Accounts Deptt. should lodge formal claim against
the
W&
BG
P
for
Manual
recovery
– 2012
of the money.
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