What is EMD?
Updated on : 2020-Dec-16 14:32:04 | Author :
WHAT IS TENDER APPLICATION MONEY?
Details of technical and financial specification of each tender are available in Tender Document, which most government departments sell for a small fee, known as tender application money. Tender application money is the fee towards buying tender document. The reason toward making tender application paid are many; as-
- To confirm that only serious bidder bids
- To regain the cost of making a tender document
- To regain the cost of the tender advertisement
- To recover the cost of efforts involved in tendering
WHAT IS EMD?
It is the quantity of cash to be deposited together with the tender document to the department by the contractors quoting to a young. This security instrument could also be asked in the style of Bank Guarantee, Demand Draft or Bankers Cheque. This can be asked for saving Authority from undesirable proposals and to secure themselves against a potential money liability which can arise thanks to the temperament of designated vender to execute his commitments. The authority, in this case, earns that EMD quantity if the chosen vender once tender method refuses to hold out work.
It additionally reduces faux proposals from faux tenderer that consume the time of presidency.
FEATURES AND FUNCTIONS OF EMD:
The amount of EMD depends on the tender tempting authorities. In government works, it's predecided for slabs. Typically the figure is often distinct for explicit class. Once the bids are evaluated and the results disclosed, the unsuccessful bidders will raise their authorities to come back the money. The prosperous one can get to submit performance security then to induce their EMD back.
HOW TO CLAIM EMD
EMD ( Earnest Money Deposit ) submitted by unsuccessful tenderers will be returned by handing over the original Demand Draft / Bankers Cheque duly endorsed by the Competent Authority of the Centre. Earnest Money Deposit paid by the successful tenderer shall be liable to be forfeited against the Security Deposit to be recovered from the running account bills.
Anyone do not have to apply for the refund in case of online payment method. The refund process will be initiated automatically.
ADDITIONAL RESOURCES:
