Relief for contractors as Kerala eases deposit norms
1 min read
By Express News Service
THIRUVANANTHAPURAM: The state authorities has relaxed the safety deposit situations for presidency contractors in view of the financial slowdown attributable to Covid-19. This follows a path by the Central authorities, which had effected related relaxations.
The relaxations, which can be relevant for efficiency safety, safety deposit, bid safety, earnest cash deposit, and extra efficiency assure, will assist the state authorities full infrastructure improvement works earlier than the tip of its tenure.
The efficiency safety or safety deposit to be submitted on the time of executing the settlement has been lowered from the earlier 5 per cent to 3 per cent of the contract quantity, stated an order issued by Rajesh Kumar Singh, further chief secretary (Finance). At least fifty % of this sediment shall be collected within the type of treasury fastened deposit and relaxation within the type of financial institution assure or every other type prescribed within the PWD handbook.
The bid safety or earnest cash deposit has been lowered from 2.50 per cent to 1.50 per cent of the estimated quantity. The situation for extra efficiency assure has been absolutely waived off. The further efficiency assure is the extra quantity to be deposited in circumstances the place the works are quoted under the estimate price.
Now, such bidders have been exempted from giving APG however ought to furnish an endeavor that the quoted deliverables can be executed in full as per the contract phrases.
