Finance deptts extends performance security
The Finance Department has extended additional performance security in case of abnormally low bids, bid security, earnest money deposit and performance security in Jammu and Kashmir to March 31st 2023.
The department invited instructions for additional performance security in case of abnormally low bids (albs), bid security/earnest money deposit, performance security on 12th October 2020.
Whereas, Government Of India, Ministry of Finance, Department of Expenditure, Procurement Policy Division vide O M No. F.9/4/2020-PPD dated 30-12-2021 has extended the validity of OM dated 12-11-2020 regarding “Performance Security” till 31-03-2023.
“Accordingly, it is hereby ordered that the validity of the Circular issued vide No. A/Misc(2018)-III-895/J dated: 22-12-2020 regarding “Performance Security” in Union Territory of Jammu & Kashmir has been extended till 31-03-2023 in line with O.M No. F.9/4/2020-PPD dated 30-12- 2021 issued by Government of India, Ministry of Finance, Department of Expenditure”, reads the circular issued by the Atal Dulloo, Financial Commissioner, (Additional Chief Secretary), Finance Department.
It is pertinent to mention here that keeping in view the exceptional circumstances created due to pandemic and acute financial crunch faced by many commercial entities and contractors, which in turn is affecting timely execution of contracts, the Government of India had issued certain instructions.
“Reduction in Performance Security from existing 5-10% to 3% of the value of the contract for all existing contracts. The benefit of reduced performance security will not be given to Contracts under dispute. All tenders/contracts issued/concluded till 31.12.2021 should also have the provision of reduced performance security”, instructions read.
“No provisions regarding Bid Security should be kept in the Bid Documents in future and only provisions for Bid Security Declaration should be kept in the Bid Documents. Wherever there are compelling circumstances to ask for Bid Security, the same should be done only with the approval of next higher authority to the authority competent to finalize the particular tender”, it added.
No provisions should be kept in the Bid Documents regarding Additional Security Deposit/ Bank Guarantee (BG) in the cue of Abdominally Low bids, the instruction added.
