Additional PG calculation
If
the Tenderer offered lower than the Tender Value
|
excerpt of Para 16 (4) (h) of Revised GCC for Works-July 2020 Click for Revised GCC 2020 |
|
"The tenderer who has offered lower total cost as
compared to tender value by more than 10
%, shall be required to submit additional
Performance Guarantee of value equal to half the percentage of tender value by which offer is lower
than 10%. (e.g. in a tender
costing Rs 100, if contract value
is Rs 80, additional Performance Guarantee shall be [0.5x{(100-80)-10}]
percentage of tender value.)" |
Object : To discourage the
Contractors to quote the unreasonable rates and doing incomplete work or
abandon the work after awarding the same, because of non viable/non feasible
rates.
Example A:
Tender value is Rs 100. Tenderer offered rate is Rs 80 only. So calculation of PG is as follows:
|
PG Rate on Contract/Tender Value |
Calculation |
PG Amt (Rs) |
Original PG |
5% of Contract Value Rs. 80 |
5/100x80 |
4.00 |
Additional PG |
0.5 % of 10 i.e., {(100-80)-10}
(additional Performance Guarantee of value equal to half the
percentage of tender value by which offer is lower than 10%. |
0.5/100x10 |
0.05 |
Total PG |
|
|
4.05 |
Example B:
Tender value is Rs 100. Tenderer offered rate is Rs 70 only. So calculation of PG is as follows:
|
PG Rate on Contract/Tender Value |
Calculation |
PG Amt (Rs) |
Original PG |
5% of Contract Value Rs. 70 |
5/100x70 |
3.50 |
Additional PG |
0.5 % of 20 i.e., {(100-70)-10}
(additional Performance Guarantee of value equal to half the
percentage of tender value by which offer is lower than 10%. |
0.5/100x20 |
0.10 |
Total PG |
|
|
3.60 |
In Simple , calculation of Additional PG is 0.5 % of (90 % of Tender Value - Accepted Offer value)
Note:
If the Lowest quote is Rs. 90 and above against Tender Value of Rs. 100, the PG is just 5 % of Contract Value only.
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