Common use of Performance Security Deposit Clause in Contracts

Performance Security Deposit. The ▇▇▇▇▇▇▇ Money Deposit of the successful bidder will be converted into Performance Security Deposit which shall be kept valid for a period of 60 days beyond completion of all the contractual obligations. Further, the successful tenderer will be required to sign agreement on Notary bond of Rs. 100/- stamp paper within 15 days of issue of Notification of Award. The security deposit can be forfeited by order of this Institute in the event of any breach or negligence or non–observance of any condition of contract or for unsatisfactory performance or non–observance of any condition of the contract. Performance Security will be discharged after completion of contractor’s performance obligations (including Warranty / Guarantee period) under the contract.