Pay Order (PO)
Issued by a scheduled commercial bank in favour of the procuring entity. Most common for small-to-mid tenders.
First time bidding? Start hereBid Security / BG —
Bid Security / BG —
how much do you need?
Short version: 1–3% of the official estimate, refundable, valid for bid validity + 28 days. Details below.
TL;DR
How much?
1–3% of the official estimate. The ITB specifies the exact %.
What form?
Pay Order, Demand Draft, or Bank Guarantee — from a scheduled commercial bank.
Valid for how long?
Bid validity + 28 days. Anything shorter is rejected on opening day.
How do I get it back?
If you don't win — the procuring entity issues the refund after evaluation closes.
Sources: Public Procurement Act 2006 + Public Procurement Rules 2008 (Rule 23) + Public Procurement Rules 2025 (SRO 388-Law/2025, gazette 28 Sept 2025).
Examples: by tender size
The procuring entity can set any rate from 1% to 3%. Both bounds shown below.
| Official estimate | BG @ 1% | BG @ 3% |
|---|---|---|
| BDT 50 lakh | BDT 50,000 | BDT 150,000 |
| BDT 2 crore | BDT 200,000 | BDT 600,000 |
| BDT 10 crore | BDT 1,000,000 | BDT 3,000,000 |
| BDT 50 crore | BDT 5,000,000 | BDT 15,000,000 |
Which forms are accepted
Three forms — not every e-GP tender accepts all three. Check the ITB.
Demand Draft (DD)
Bank-issued draft payable to the procuring entity. Functionally equivalent to a Pay Order.
Bank Guarantee (BG)
Bank's unconditional guarantee that the amount will be paid if the bid is withdrawn or terms breached. Preferred for larger tenders.
Validity & refund
How long must it stay valid?
Per PPR: bid validity period + 28 days. If bid validity is 90 days, your BG must be valid for 118 days.
When do I get a refund?
If you don't win — after evaluation closes and contract is awarded. Typically 2–4 weeks. If you win — after you submit your Performance Security.
Four mistakes that get bids rejected
- Validity too short — must cover bid validity period + 28 days, or your bid will be rejected on opening day.
- Wrong instrument format — some tenders explicitly list which of PO/DD/BG they accept; check the ITB before quoting.
- Issued in wrong party's name — must be in favour of the procuring entity exactly as named in the tender, not a related agency.
- Forgetting to include — bids submitted without the required Bid Security stand rejected at evaluation, no second chance.