Section 62 in The Orissa Development Authorities Rules, 1983
62. Earnest money and security deposit.
(1)At the time of tendering for works, an earnest money equivalent to one percent of the estimated cost of the work shall be paid by the tenderer in shape of cash, Government security, National Savings Certificate or in such other form as may be approved by the Authority.(2)On acceptance of a tender, the tenderer shall, before execution of the contract, make an initial security deposit equivalent to one per cent of the value of the contract, payable in the shape of cash, Government security, National Saving Certificate or in the shape of such other securities as may be approved by the Authority :Provided that a tenderer holding engineering degree or diploma shall not be required to deposit earnest money under Sub-rule (1) and initial security deposit under Sub-rule (2).(3)Besides the initial security deposit under Sub-rule (2), there shall be made a deduction at the rate of five per cent of the value of each running bill preferred, if any, on account of work done or supply effected as security.(4)The provisions of Sub-rules (1), (2) and (3) shall not apply in the case of a contract for supply of materials or goods in respect of which any special terms and conditions for payment against such supply have been agreed upon by the Authority.(5)Notwithstanding anything contained in this rule in the case of a contract for work or for supply of materials, the value of which is less than ten thousand rupees the condition of deposit of earnest money and initial security may be dispensed with by the Vice-Chairman or by the member or officer of the Authority authorised by him.
