Key measure to promote fair competition and enhance transparency
MAPUSA
In a major step toward enhancing transparency and promoting fair competition, the Public Works Department (PWD) has revoked previous tender requirements and introduced a new set of streamlined conditions for the tendering process.
The earlier circular mandated outright rejection of all PWD tenders quoted more than 20 per cent below the estimated cost, regardless of whether estimates were based on GSR (Goa Schedule of Rates) or non-GSR items.
This condition was binding across all PWD divisions covering Roads, Buildings, Electrical/Mechanical and Water Supply and Sewerage works.
With effect from June 1, 2025, the department will instead adopt a revised framework aimed at improving flexibility while ensuring financial safeguards.
The decision, approved by the government was announced through a fresh circular issued by Principal Chief Engineer Uttam Parsekar.
The new tender conditions will be incorporated into relevant clauses of CPWD Form 7/8 as adopted by the Department.
Key highlights of
new tender conditions
Base performance guarantee: A performance or bank guarantee of 3 per cent of the accepted bid amount (exclusive of GST) will be mandatory for all works.
Additional guarantee for moderate undercuts: If the selected bidder's quote is more than 10 per cent and up to 20 per cent below the estimated cost, an additional performance guarantee will be levied. This will increase by 0.1 per cent for every per cent below the estimate.
Higher guarantee for deeper undercuts: For bids more than 20 per cent below the estimated cost, the additional guarantee will be further increased by 0.2 per cent per percentage point beyond 20 per cent, along with the 1 per cent from the previous slab.
Cap on additional guarantees: The total additional performance guarantee will be capped at a maximum of 3 per cent of the accepted bid amount. Rounding rules will apply: decimals below 0.5 per cent will be rounded down, while 0.5 per cent and above will be rounded up.
Agreement clause: The additional performance guarantees will form an integral part of the work agreement.
Tie-bid protocol: In cases where multiple agencies submit bids at the same percentage or amount, the successful bidder will be selected through a draw of lots. This process will be conducted with prior notice and in the presence of the tie bidders who wish to attend.
PWD officials believe the new provisions strike a balance between deterring reckless underquoting and maintaining healthy competition among contractors. By replacing a blanket rejection policy with a tiered performance guarantee system, the department aims to protect project integrity without discouraging legitimate cost-efficiency in bids.
The revised conditions will apply to all e-tenders, open tenders and quotations issued by the PWD from June 1, 2025 onward.
