Section 12 in Karnataka Transparency in Public Procurements Rules, 2000
12. Commercial conditions.
(1)The tender documents shall require all tenderers to pay an earnest money deposit at the rates as per the departmental rules by means of a demand draft, bankers, cheque, specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a specified form of the department. The tender documents shall clearly state that any tender submitted without the earnest money deposit be summarily rejected.Provided that any category of tenders specifically exempted by the Government from the payment of earnest money deposit will not be required to make such a deposit.(2)The tender documents shall specify the period for which the tenderer should hold the prices offered in the tender valid.Provided that the initial period of validity shall not be less than ninety days.(3)The tender documents shall require that as a guarantee of the tenderer's performance of the contract, a security deposit be taken from the successful tenderer as per departmental rules.(4)The tender documents and the contract shall include a clause for payment of liquidated damages and penalty payable by the tenderer in the event of non-fulfillment of any of the terms or whole of the contract.(5)The tender documents shall indicate the quantity proposed to be procured in the tender, and the Tender Accepting authority shall be ordinarily permitted to vary. The quantity finally ordered only to the extent of twenty five percent either way of the requirement indicated in the tender documents.
