Common use of Performance Security Deposit Clause in Contracts

Performance Security Deposit. After receiving the individual work order(s), the bidder shall be responsible to deposit the requisite Performance Security Deposit (PSD) within the prescribed time period as specified in each work order(s): 1. Performance security deposit (PSD) shall be solicited from successful bidders except : a) Departments/Boards of the State Government or Central Government; b) Government Companies as defined in clause (45) of section 2 of the Companies Act, 2013; c) Company owned or controlled, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments which is subject to audit by the Auditor appointed by the Comptroller and Auditor-General of India under sub-section (5) or (7) of section 139 of the Companies Act, 2013; d) Autonomous bodies, Registered Societies, Cooperative Societies which are owned or controlled or managed by the State Government or Central Government; e) Bidder in procurement related to Panchayat Samiti Nandishala Xxx Xxxxxxxxxx Xxxxxx or Gram Panchayat Goshala/Xxxxx Xxxxxxx Xxxxx Jan Sahbhagita Yojana issued by the State Government. However, a performance security declaration shall be taken from them. The State Government may relax the provision of performance security in a particular procurement or any class of procurement. 2. The amount of performance security shall be five percent, or as may be specified in the bidding documents, of the amount of supply order in case of procurement of goods and services and ten percent of the amount of work order in case of procurement of works. In case of Small-Scale Industries of Rajasthan it shall be one percent of the amount of quantity ordered for supply of goods and in case of sick industries, other than Small Scale Industries, whose cases are pending before the Board of Industrial and Financial Reconstruction (BIFR), it shall be two percent of the amount of supply order. 3. Performance security shall be furnished in any one of the following forms- a) deposit though eGRAS; b) Bank Draft or Banker's Cheque of a scheduled bank; c) National Savings Certificates and any other script/instrument under National Savings Schemes for promotion of small savings issued by a Post Office in Rajasthan, if the same can be pledged under the relevant rules. They shall be accepted at their surrender value at the time of bid and formally transferred in the name of procuring entity with the approval of Head Post Master; d) Bank guarantee or electronic bank guarantee (e-BG) of a scheduled bank. It shall be got verified from the issuing bank. Other conditions regarding bank guarantee shall be same as mentioned in the rule 42 for bid security; e) Fixed Deposit Receipt (FDR) of a scheduled bank. It shall be in the name of procuring entity on account of bidder and discharged by the bidder in advance. The procuring entity shall ensure before accepting the Fixed Deposit Receipt that the bidder furnishes an undertaking from the bank to make payment/premature payment of the Fixed Deposit Receipt on demand to the procuring entity without requirement of consent of the bidder concerned. In the event of forfeiture of the performance security, the Fixed Deposit shall be forfeited along with interest earned on such Fixed Deposit. f) In case of procurement of works, the successful bidder at the time of signing of the contract agreement, may submit option for deduction of performance security from each running and final bill @ 10% of the amount of the bill. 4. Performance security furnished in the form specified in clause (b) to (e) of sub-rule (3) shall remain valid for a period of sixty days beyond the date of completion of all contractual obligations of the bidder, including warranty obligations and maintenance and defect liability period. 5. Additional Performance Security- In addition to Performance Security as specified in rule 75, an Additional Performance Security shall also be taken from the successful bidder in case of unbalanced bid. The Additional Performance Security shall be equal to fifty percent of Unbalanced Bid Amount. The Additional Performance Security shall be deposited in lump sum by the successful bidder before execution of Agreement. The Additional Performance Security shall be deposited through e-Grass, Demand Daft, Banker's Cheque, Government Securities, Bank guarantee or electronic Bank Guarantee (e-BG)

Performance Security Deposit. After receiving the individual work order(s), the bidder shall be responsible to deposit the requisite Performance Security Deposit (PSD) within the prescribed time period as specified in each work order(s): 1. (i) Performance security deposit (PSD) shall be solicited from successful bidders except : a) Departments/Boards the departments of the State Government or Central Government; b) Government Companies as defined in clause (45) of section 2 of the Companies Actand undertakings, 2013; c) Company owned or controlledcorporations, directly or indirectly, by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments which is subject to audit by the Auditor appointed by the Comptroller and Auditor-General of India under sub-section (5) or (7) of section 139 of the Companies Act, 2013; d) Autonomous autonomous bodies, Registered Societiesregistered societies, Cooperative Societies co-operative societies which are owned or controlled or managed by the State Government or and undertakings of the Central Government; e) Bidder in procurement related to Panchayat Samiti Nandishala Xxx Xxxxxxxxxx Xxxxxx or Gram Panchayat Goshala/Xxxxx Xxxxxxx Xxxxx Jan Sahbhagita Yojana issued by the State Government. However, a performance security declaration shall be taken from them. The State Government may relax the provision of performance security in a particular procurement or any class of procurement. 2. (ii) The amount of performance security shall be five percent, or as may be specified in the bidding documents, 5% of the amount of work/ supply order in case of procurement of goods and services and ten percent of the amount of work order in case of procurement of worksservices. In case of Small-Small Scale Industries (SSI) of Rajasthan Rajasthan, it shall be one percent 1% of the amount of quantity ordered for supply of goods and in case of sick industries, other than Small Scale IndustriesSSI, whose cases are pending before the Board of Industrial and Financial Reconstruction (BIFR), it shall be two percent 2% of the amount of supply order. 3. (iii) Performance security shall be furnished in any one of the following forms-forms: - a) deposit though eGRAS; b1) Bank Draft or Banker's ’s Cheque of a scheduled bank; c2) National Savings Certificates and any other script/script/ instrument under National Savings Schemes for promotion of small savings issued by a Post Office in Rajasthan, if the same can be pledged under the relevant rules. They shall be accepted at their surrender value at the time of bid and formally transferred in the name of procuring entity with the approval of Head Post Master; d3) Bank guarantee or electronic bank guarantee (e-BG) guarantee/s of a scheduled bank, in case the amount of PSD is more than 10 lakhs. It shall be got verified from the issuing bank. Other conditions regarding bank guarantee shall be same as mentioned in the rule 42 bidding document for bid security; e) Fixed Deposit Receipt (FDR) of a scheduled bank. It shall be in the name of procuring entity on account of bidder and discharged by the bidder in advance. The procuring entity shall ensure before accepting the Fixed Deposit Receipt that the bidder furnishes an undertaking from the bank to make payment/premature payment of the Fixed Deposit Receipt on demand to the procuring entity without requirement of consent of the bidder concerned. In the event of forfeiture of the performance security, the Fixed Deposit shall be forfeited along with interest earned on such Fixed Deposit. f) In case of procurement of works, the successful bidder at the time of signing of the contract agreement, may submit option for deduction of performance security from each running and final bill @ 10% of the amount of the bill. 4. Performance security furnished in the form specified in clause (b) to (e) of sub-rule (3) shall remain valid for a period of sixty days beyond the date of completion of all contractual obligations of the bidder, including warranty obligations and maintenance and defect liability period. 5. Additional Performance Security- In addition to Performance Security as specified in rule 75, an Additional Performance Security shall also be taken from the successful bidder in case of unbalanced bid. The Additional Performance Security shall be equal to fifty percent of Unbalanced Bid Amount. The Additional Performance Security shall be deposited in lump sum by the successful bidder before execution of Agreement. The Additional Performance Security shall be deposited through e-Grass, Demand Daft, Banker's Cheque, Government Securities, Bank guarantee or electronic Bank Guarantee (e-BG)