Common use of SECURITY DEPOSIT (SD) Clause in Contracts

SECURITY DEPOSIT (SD). Security Deposit means the security provided by the Contractor towards fulfilment of any obligations in terms of the provisions of the contract. a. The total amount of Security Deposit will be 5% of the contract value. EMD of the successful bidder shall be converted and adjusted towards the required amount of Security Deposit. b. The balance amount to make up the required Security Deposit of 5% of the contract value may be accepted in the following forms: • EFT shall be made in Bank Account No.: 10405292240 of SBI, IGFCC branch, I A Jagdishpur. MICR No. 227002003, IFSC No. SBIN0009072. E-receipt of EFT having UTR/Ref. no. Transfer from bank shall be submitted to BHEL. • Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. • Fixed deposit receipt issued by scheduled banks/Public Financial institutions as defined in companies act (FDR should be in the name of contractor, a/c BHEL). c. 50% of Security Deposit in the form of Bank Guarantee in the prescribed Proforma as per Xxxxxxxx X. Balance shall be recovered from running @ 10% of the gross value of each running bill commencing from first running bill itself till the full Security Deposit made up. The Bank Guarantee should be from any one of our consortium banks as per list enclosed at Annexure I. d. Validity of the Bank Guarantee furnished towards Security Deposit shall be valid up to the period of completion of work as stipulated in the letter of intent or as extended time to time plus 3 months claim period and the same will be kept valid by proper renewal till the satisfactory completion of the Guarantee Period. (Note: BHEL will not be liable or responsible in any manner for the collection of interest or renewal of the documents or in any other matter connected therewith.) e. At least 50% of the required Security Deposit, including the EMD, should be deposited before start of the work. Balance of the Security Deposit can be collected by deducting 10% of the gross amount progressively from each of the running bills of the Contractor till the total amount of the required Security Deposit is collected. f. If the value of work done at any time exceeds the contract value, the amount of Security Deposit shall be correspondingly enhanced and the additional Security Deposit shall be immediately deposited by the Contractor or recovered from payment/s due to the Contractor. g. The recoveries made from running bills (cash deduction towards balance SD amount) can be released against submission of equivalent Bank Guarantee in acceptable form, but only once, before completion of work, with the approval of the authority competent to award the work. h. The Security Deposit shall not carry any interest. i. Failure to deposit the security Deposit within the stipulated time may lead to forfeiture of EMD and cancellation of the award of work. j. BHEL reserves the right of forfeiture of Security Deposit in addition to other claims and penalties in the event of Contractor’s failure to fulfill any of the contractual obligations or in the event of termination of contract as per terms and conditions of the contract.

SECURITY DEPOSIT (SD). 4.2.1 Security Deposit means the security provided by the Contractor towards fulfilment of any obligations in terms of the provisions of the contract. a. 4.2.2 The total amount of Security Deposit will be 5% of the contract value. EMD of the successful bidder shall be converted and adjusted towards the required amount of Security Deposit. b. 4.2.3 The balance amount to make up the required Security Deposit of 5% of the contract value may be accepted in the following forms: • : a) Local cheques of Scheduled Banks (subject to realization)/ Pay Order/ Demand Draft/ Electronic Fund Transfer in favour of BHEL (payable at Ind. Area Jagdishpur). EFT shall be made in Bank Account No.: 10405292240 of SBI, IGFCC branch, I A Jagdishpur. MICR No. 227002003., IFSC No. SBIN0009072. E-receipt Receipt of EFT having UTR/Ref. no. Transfer from bank shall be submitted to BHEL. • . b) Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. • Fixed deposit receipt issued by scheduled banks/Public Financial institutions as defined in companies act (FDR should be in the name of contractor, a/c BHEL). c. 50% of Security Deposit in the form of Bank Guarantee in the prescribed Proforma as per Xxxxxxxx X. Balance shall be recovered from running @ 10% of the gross value of each running bill commencing from first running bill itself till the full Security Deposit made up. The Bank Guarantee format should be from any one have the approval of our consortium banks as per list enclosed at Annexure I. d. Validity of the Bank Guarantee furnished towards Security Deposit shall be valid up to the period of completion of work as stipulated in the letter of intent or as extended time to time plus 3 months claim period and the same will be kept valid by proper renewal till the satisfactory completion of the Guarantee PeriodBHEL. (Note: BHEL will not be liable or responsible in any manner for the collection of interest or renewal of the documents or in any other matter connected therewith.) e. 4.2.3 At least 50% of the required Security Deposit, including the EMD, should be deposited before start of the work. Balance of the Security Deposit can be collected by deducting 10% of the gross amount progressively from each of the running bills of the Contractor till the total amount of the required Security Deposit is collected. f. 4.2.4 If the value of work done at any time exceeds the contract value, the amount of Security Deposit shall be correspondingly enhanced and the additional Security Deposit shall be immediately deposited by the Contractor or recovered from payment/s due to the Contractor. g. 4.2.5 The recoveries made from running bills (cash deduction towards balance SD amount) can be released against submission of equivalent Bank Guarantee in acceptable form, but only once, before completion of work, with the approval of the authority competent to award the work. h. 4.2.6 Security Deposit shall be released to the Contractor upon fulfilment of contractual obligations as per terms of the contract. 4.2.7 The Security Deposit shall not carry any interest. i. Failure to deposit the security Deposit within the stipulated time may lead to forfeiture of EMD and cancellation of the award of work. j. BHEL reserves the right of forfeiture of Security Deposit in addition to other claims and penalties in the event of Contractor’s failure to fulfill any of the contractual obligations or in the event of termination of contract as per terms and conditions of the contract.

SECURITY DEPOSIT (SD). Security Deposit means the security provided by the Contractor towards fulfilment of any obligations in terms of the provisions of the contract. a. The total amount of Security Deposit will be 5% of the contract value. EMD of the successful bidder shall be converted and adjusted towards the required amount of Security Deposit. b. The balance amount to make up the required Security Deposit of 5% of the contract value may be accepted in the following forms: • EFT shall be made in Bank Account No.: 10405292240 30500630600 of SBI, IGFCC branch, I A Jagdishpur. MICR No. 227002003, IFSC No. SBIN0009072. E-receipt of EFT having UTR/Ref. no. Transfer from bank shall be submitted to BHEL. • Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. • Fixed deposit receipt issued by scheduled banks/Public Financial institutions as defined in companies act (FDR should be in the name of contractor, a/c BHEL). c. 50% of Security Deposit in the form of Bank Guarantee in the prescribed Proforma as per Xxxxxxxx X. Annexure G. Balance shall be recovered from running @ 10% of the gross value of each running bill xxxx commencing from first running bill xxxx itself till the full Security Deposit made up. The Bank Guarantee should be from any one of our consortium banks as per list enclosed at Annexure I. d. Validity of the Bank Guarantee furnished towards Security Deposit shall be valid up to the period of completion of work as stipulated in the letter of intent or as extended time to time plus 3 months claim period and the same will be kept valid by proper renewal till the satisfactory completion of the Guarantee Period. (Note: BHEL will not be liable or responsible in any manner for the collection of interest or renewal of the documents or in any other matter connected therewith.) e. At least 50% of the required Security Deposit, including the EMD, should be deposited before start of the work. Balance of the Security Deposit can be collected by deducting 10% of the gross amount progressively from each of the running bills of the Contractor till the total amount of the required Security Deposit is collected. f. If the value of work done at any time exceeds the contract value, the amount of Security Deposit shall be correspondingly enhanced and the additional Security Deposit shall be immediately deposited by the Contractor or recovered from payment/s due to the Contractor. g. The recoveries made from running bills (cash deduction towards balance SD amount) can be released against submission of equivalent Bank Guarantee in acceptable form, but only once, before completion of work, with the approval of the authority competent to award the work. h. The Security Deposit shall not carry any interest. i. Failure to deposit the security Deposit within the stipulated time may lead to forfeiture of EMD and cancellation of the award of work. j. BHEL reserves the right of forfeiture of Security Deposit in addition to other claims and penalties in the event of Contractor’s failure to fulfill any of the contractual obligations or in the event of termination of contract as per terms and conditions of the contract.

SECURITY DEPOSIT (SD). Security Deposit means the security provided by the Contractor towards fulfilment of any obligations in terms of the provisions of the contract. a. The total amount of Security Deposit will be 5% of the contract value. EMD of the successful bidder shall be converted and adjusted towards the required amount of Security Deposit. b. The balance amount to make up the required Security Deposit of 5% of the contract value may be accepted in the following forms: • EFT shall be made in Bank Account No.: 10405292240 of SBI, IGFCC branch, I A Jagdishpur. MICR No. 227002003, IFSC No. SBIN0009072. E-receipt of EFT having UTR/Ref. no. Transfer from bank shall be submitted to BHEL. • Bank Guarantee from Scheduled Banks/ Public Financial Institutions as defined in the Companies Act. • Fixed deposit receipt issued by scheduled banks/Public Financial institutions as defined in companies act (FDR should be in the name of contractor, a/c BHEL). c. 50% of Security Deposit in the form of Bank Guarantee in the prescribed Proforma as per Xxxxxxxx X. Annexure G. Balance shall be recovered from running @ 10% of the gross value of each running bill commencing from first running bill itself till the full Security Deposit made up. The Bank Guarantee should be from any one of our consortium banks as per list enclosed at Annexure I. d. Validity of the Bank Guarantee furnished towards Security Deposit shall be valid up to the period of completion of work as stipulated in the letter of intent or as extended time to time plus 3 months claim period and the same will be kept valid by proper renewal till the satisfactory completion of the Guarantee Period. (Note: BHEL will not be liable or responsible in any manner for the collection of interest or renewal of the documents or in any other matter connected therewith.) e. At least 50% of the required Security Deposit, including the EMD, should be deposited before start of the work. Balance of the Security Deposit can be collected by deducting 10% of the gross amount progressively from each of the running bills of the Contractor till the total amount of the required Security Deposit is collected. f. If the value of work done at any time exceeds the contract value, the amount of Security Deposit shall be correspondingly enhanced and the additional Security Deposit shall be immediately deposited by the Contractor or recovered from payment/s due to the Contractor. g. The recoveries made from running bills (cash deduction towards balance SD amount) can be released against submission of equivalent Bank Guarantee in acceptable form, but only once, before completion of work, with the approval of the authority competent to award the work. h. The Security Deposit shall not carry any interest. i. Failure to deposit the security Deposit within the stipulated time may lead to forfeiture of EMD and cancellation of the award of work. j. BHEL reserves the right of forfeiture of Security Deposit in addition to other claims and penalties in the event of Contractor’s failure to fulfill any of the contractual obligations or in the event of termination of contract as per terms and conditions of the contract.