Srinagar, Aug 13: The Jammu and Kashmir Finance Department has directed all Administrative Secretaries, Heads of Departments, and implementing agencies to strictly implement new guidelines on additional performance security for bidders quoting abnormally low rates in government projects.
According to details received by The Chenab Times, the order—issued with immediate effect—seeks to curb underquoting in tenders and ensure transparency in the bidding process. It follows a review of competitive bidding trends where some bidders were found quoting significantly lower rates than the advertised project cost.
As per the directive, additional performance security will now be calculated based on the percentage by which a bid is lower than the project cost. For bids 10–20% below the project cost, the security will increase by 0.1% for every percentage point below 10%. For bids 20% or more below the project cost, the increment will be 0.2% per percentage point below 20%, in addition to 1% of the bid price.
The guidelines also provide a calculation table for reference and stipulate that the additional performance security will form part of the overall performance guarantee. Approval from higher authorities will be required before imposing the security.
The Finance Department has instructed all concerned departments to adhere to the new rules and take necessary action to prevent irregularities in project bidding.
Issued under the signature of Principal Secretary Santosh D. Vaidya, the order applies to all government projects in the Union Territory.
The Chenab Times News Desk