Section 72 in Rajasthan Public Procurement Rules, 2012
72. Performance security.
- Performance security acts as a safeguard against unsatisfactory performance or violation of contract agreement by the supplier/contractor of the contract.(1)Performance security shall be solicited from all successful bidders except undertakings, corporations, autonomous bodies, registered societies, cooperative societies which are controlled/managed by Government, Government undertakings and companies of Union Government and Government of Rajasthan. However, a Bid Performance Security Declaration will be taken from them.(2)The amount of performance security shall be five percent of the amount of supply order in case of procurement of goods and services and ten percent of the amount of work order in case of procurement of works. In case of SSIs of Rajasthan it will be one percent of the quantity ordered for supply of goods and in case of sick industries, other than SSIs, whose cases are pending with BIFR, it will be two percent of the amount of supply order.(3)Performance security shall be furnished in the following forms:(a)Cash through Treasury challan deposited under head "8843 - Civil Deposit 103 - Security Deposit";(b)Bank Draft or Banker's Cheque of a scheduled bank;(c)Post Office savings bank pass books of post offices in Rajasthan;(d)National Savings Certificates and any other script/instrument under National Savings Schemes for promotion of small savings issued by a Post Office in Rajasthan, if the same can be pledged under the relevant rules. They shall be accepted at their surrender value at the time of bid and formally transferred in the name of procuring entity with the approval of Head Post Master.(e)Bank guarantee. Bank guarantee/s supplied by the bidder as performance security shall be immediately got verified from the issuing bank. Other conditions regarding bank guarantee shall be same as mentioned in the rule for bid security.(f)Fixed Deposit Receipt: The Fixed Deposit Receipt (FDR) shall be of a Scheduled Bank, it should be in the name of procuring entity bearing contents "Received from .................. Department ..................... on account of M/s .................. ( Name of bidder)" and discharged by the bidder. The procuring entity shall ensure before accepting the Fixed Deposit Receipt that the bidder furnishes an undertaking from the bank to make payment/premature payment of the security on demand to the procuring authority without requirement of consent of the bidder concerned. In the event of forfeiture of the FDR, the FDR will be forfeited along with interest earned on the FDR.(4)Performance security is to be furnished as specified and it shall remain valid for a period of 60 days beyond the date of completion of all contractual obligations of the supplier/ contractor, including warranty obligations - maintenance period/defect liability period.(5)For contracts valuing below rupees rupees one lakh, performance security shall not be necessary.
