SECTION 18 : EARNEST MONEY

18.1 Necessity for earnest money

18.2 When to be deposited

It should be deposited in one of the acceptable forms which is
specified in para 18.4 during the time of submitting applications for issue
of tender documents for a work
18.3 Rate of earnest money

For Works upto 2% of the

Rs.10 Crores estimated cost

Rs.20 lakhs + 1 %
For Works more of the estimated
than Rs.10 Crores cost in excess of
Rs.10 crores
SECTION 18 : EARNEST MONEY

18.4 Mode of deposit

1.Cash upto Rs.10,000
2.Treasury Challan
3.Deposit at Call receipt of a scheduled bank
4.Bankers Cheque of a Scheduled bank
5. DD of a Scheduled bank
6. FDR of a Scheduled bank

18.5.Refund of Earnest Money

After opening of the tenders or latest within a week from the date of
receipt of tenders
18.6 EMD is not security deposit
No account can be opened for deposit of EMD in Post Office Saving Bank
18.7 Earnest money stipulation in work/supply to be awarded after call
of quotations
18.8 Forfeiture of Earnest money