Performance security — 5% vs 10% rules.

Performance security ekta financial instrument ja successful bidder contract sign-er somoy submit kore. Eta bid security-r theke alada — boroh amount, longer validity (typically contract period + warranty period), and only winning bidder dey. Public Procurement Rules 2008 Rule 35

Procuring entity-r jonno safety net — apnar firm contract obligations meet na korle, performance security forfeit kora jay ar damages cover korte. Apnar jonno commitment-er financial proof.

PPR 2008 Rule 35-er onuyaee performance security typically 5-10% of contract value. ITB-te procuring entity exact percentage specify kore। Common scenarios:

• 5% — low-risk standard works (routine repair, small infrastructure)
• 10% — most government works tenders, this is the default
• 15% — mega projects, long-duration construction (multi-year), specialised technical works

Important: bid security-r unlike, performance security calculate hoy contract value (your winning bid price)-er upor, NOT estimated cost-er upor.

Bank Guarantee (BG): most common form. Scheduled bank issue kore. Validity = contract duration + warranty period (typically 12 months extra). Cost: 0.3-1% of BG amount per quarter. Cash flow-friendly — bank apnar account theke money block korte pare na, but BG limit lage।

Cash deposit / Pay Order: procuring entity-r account-e cash transfer। Bank-er BG limit issue thakle eta backup। Disadvantage: full cash tied up entire contract duration। Onek small contractor-e first contract-e cash deposit use korte hoy karon BG limit nei।

Insurance Bond: insurance company issue kore। Some procuring entities accept (specially bigger projects with sophisticated procuring teams)। Cost-effective for very large performance securities, but acceptance varies — confirm in ITB।

Timeline:

1. Day 0: award decision published
2. Day 1-7: aggrieved bidder complaint window (Rule 60). After day 7 if no complaint, award becomes final.
3. Day 7-28: successful bidder contract sign + performance security submit। Procuring entity ও same window-e from their side prepare।
4. Day 28+: contract effective। Performance security held throughout contract + warranty period।

Performance security ferot pawar timeline:

• Standard works: contract end + 12 months warranty period শেষ হলে।
• Goods supply: delivery + acceptance certificate-এর পরে।
• Long-term contracts: phase-wise reduction possible (e.g. 50% release at substantial completion, 50% at final completion).

Ferot delay হলে formal complaint করা যায় Rule 60-এর under, same as bid security delay. Public Procurement Rules 2008 Rule 60