Team Goemkarponn
Panaji: The Public Works Department (PWD), Government of Goa, has officially withdrawn its 2021 circular that mandated the rejection of all tenders quoted more than 20% below the estimated cost. A new circular issued by the Office of the Superintending Surveyor of Works introduces revised tender guidelines, effective from June 1, 2025.
The now-withdrawn circular (No. 1-8-05/SSW-PWD/Vol-I/2021-22/180 dated August 30, 2021) had mandated that tenders quoted over 20% below the estimated cost—across roads, buildings, electrical/mechanical, water supply, and sewerage works—be summarily rejected, regardless of whether the estimate included GSR (Goa Schedule of Rates), non-GSR, or both.
Under the new directives (Circular No. 1-8-05/SSW-PWD/Vol-1/2025-26/64 dated May 26, 2025), the following key changes have been made:
1. Performance Guarantee Revised:A uniform performance guarantee/bank guarantee of 3% of the accepted amount (exclusive of GST) will now be applicable for all works.
2. Additional Guarantee for Low Bids:
* For bids more than 10% and up to 20% below the estimated cost, an additional performance guaranteewill be levied at 0.1% for every percentage below the estimate.
* For bids more than 20% below, the additional guarantee will be 0.2% for every percentage, plus an additional 1% as already applicable.
3. Maximum Cap and Rounding Rule: The maximum additional performance guarantee is capped at 3% of the accepted amount. This guarantee will be rounded off to the nearest percentage: downwards if the decimal is below 0.5%, and upwards if 0.5% or above.
4. Mandatory Agreement Clause: The additional performance guarantee will be an integral part of the work agreement.
5. Draw of Lots in Case of Tie: In situations where multiple bidders quote the same percentage or amount, the final selection will be made through a draw of lots, conducted in the presence of all tie bidders who opt to attend.
The new policy has been approved by the Government vide U.O No. 334/F dated May 9, 2025, and was issued with the approval of Principal Chief Engineer U.P. Parsekar and Superintendent Surveyor of Works Naresh Borkar.
These revised norms aim to foster fair competition while safeguarding the quality and viability of public infrastructure projects in the state.
