Common use of Performance Security Deposit Clause in Contracts

Performance Security Deposit. The successful tenderer shall have to submit performance security deposit, as security deposit for the due compliance& fulfilment of terms &conditions of the contract. This has to be in the form of a bank draft payable in favour of ESI Saving Fund Account No.1 , payable at Hyderabad, drawn on any of the nationalized bank. The amount will be 10% of the expected annual contract value as per the items quoted by the tenderer. The exact amount will be decided by the tender evaluation committee after finalizing the tender duly approved by the ▇▇▇▇ and will be intimated to the successful tenderer before signing of the contract. The decision of the committee for fixing the amount of performance security shall be binding on the parties of this contract. On due performance and successful completion of the contract the security money deposit shall be returned without any interest. On unsatisfactory performance or violation of terms and conditions of the contract will make the contractor liable for forfeiture of security deposit. The decision of Medical Superintendent will be final on this account.

Performance Security Deposit. The successful tenderer shall have to submit performance security deposit, as security deposit for the due compliance& fulfilment of terms &conditions of the contract. This has to be in the form of a bank draft payable in favour of ESI Saving Fund Account No.1 , payable at Hyderabad, drawn on any of the nationalized bank, preferably SBI. The amount will be 10% of the expected annual contract value as per the items quoted by the tenderertenderer . The exact amount will be decided by the tender evaluation committee after finalizing the tender duly approved by the ▇▇▇▇ Medical Superintendent and will be intimated to the successful tenderer before signing of the contract. The decision of the committee for fixing the amount of performance security shall be binding on the parties of this contract. On due performance and successful completion of the contract the security money deposit shall be returned without any interest. On unsatisfactory performance or violation of terms and conditions of the contract will make the contractor liable for forfeiture of security deposit. The decision of Medical Superintendent will be final on this account.