PWD set to allow bids 20% below estimated cost, but guarantee to rise

Panaji: The public works department has withdrawn a circular where all bids quoting 20% below the estimated cost were outright rejected. Instead, the PWD has decided to allow such bids, but the lower the bid, the performance guarantee applicable for the contractor will be accordingly higher.
As per circular issued on Aug 30, 2021, the PWD was rejecting any tenders pertaining to roads, buildings, electrical/mechanical, water dupply and sewerage works quoting more than 20% below the estimated cost put to tender.
“Now, it has been decided to withdraw the earlier circular and the same shall not be applicable for all the e-tenders/open tender/quotation, issued by the PWD with effect from June 1, 2025,” principal chief engineer, Uttam Parsekar, has directed.
The tender conditions have been modified based on central PWD guidelines, he said. “Performance guarantee/bank guarantee for all works will be 3% of the accepted amount of the selected bidder exclusive of GST. For offers received by the selected bidder which is more than 10% below and upto 20% below the estimated cost put to tender, the additional performance guarantee/bank guarantee shall be incremented by three for every percentage of the accepted amount,” states the circular.
“The additional performance guarantee/bank guarantee shall form part of the agreement. Tenders quoted at the same percentage/amount by more than one agency if received, then the tender accepting authority shall identify the selected agency by draw of lots, which shall be conducted, with prior notice, in the presence of the tie bidders who choose to attend,” the circular states.