PPR 2008 Rule 23Bid Security

Rule 23 governs bid security (also known as earnest money or EMD) under the Public Procurement Rules 2008. Bid security is required for procurements above BDT 10 lakh (1,000,000) and must be in the form of an unconditional Bank Guarantee from a scheduled bank in Bangladesh, or a Pay Order, or a Demand Draft. The amount must be between 1% and 3% of the estimated value of the procurement (commonly 2%). The validity of the bid security must extend at least 28 days beyond the validity of the bid itself. The procuring entity must return the bid security to unsuccessful bidders within 28 days of the contract award, and to the winning bidder upon submission of performance security. Bid security may be forfeited if the bidder withdraws the bid during its validity period or fails to sign the contract after award.