NEW DELHI: In a move to enhance transparency and quality control in public infrastructure development, the Delhi government’s Public Works Department (PWD) has introduced a stringent new measure to tackle the rising issue of non-serious and speculative bidding in departmental tenders.
PWD Minister Parvesh Verma on Wednesday said the government is set to increase the performance guarantee limit in future tenders of the Public Works Department (PWD) with an eye on timely and better execution of infrastructure projects. A performance guarantee is a clause in all tenders as per which a contractor taking up any work of the PWD deposits a certain amount depending on the project’s estimated cost.
“When a contractor quotes an unreasonably low amount and then fails to deliver, it is the common man who suffers due to project delays and poor infrastructure. Our goal is to ensure that every rupee spent translates into durable, timely, and high-quality public works,” Verma said.
According to new guidelines, in tenders where the lowest quoted bid falls more than a specified percentage below the estimated cost, it will be treated as unworkable. The bidder concerned will be required to submit an ‘Additional Performance Guarantee’ equivalent to the difference between the quoted rate and the threshold percentage. This guarantee will be over and above the existing security deposit and performance guarantee requirements.
The guidelines say work will be awarded to such lowest bidders only after the submission of the APG. Failure to comply within the specified timeframe will result in cancellation of the award and debarment of the bidder as per departmental norms. The primary goal is to eliminate speculative bidding.
