Common use of SECURITY DEPOSIT (SD) Clause in Contracts

SECURITY DEPOSIT (SD). The successful bidder (Contractor) shall submit the Security Deposit @ 5 % of the value of order (excluding Taxes) within 25 days from the date of Order/Contract. Security deposit on reducing balance can be accepted on completion of services. Reducing balance bank guarantee towards security deposit is to be submitted by successful bidder where it will be valid for at least one year with claim period of three months within which t he same can be extended for further period by amendment. i. Submission of SD is exempted for Indian PSUs. In lieu, Indemnity Bond in favour of MDL is required to be submitted (Format of the same would be forwarded with the Order). ii. Please note that MDL does not extend any concession such as exemption in payment of Security Deposit to any organization (Except PSU) irrespective of their status, like registered with MDL, NSIC, SSI, MSE, etc. iii. No interest will be paid on Security Deposit. The security deposit will be returned only after successful execution of the order and shall be interest free. iv. Mode of SD : Security Deposit to be submitted in the form of NEFT / DD/ Pay Order/ Bank Guarantee drawn in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from the list of banks approved by SBI/ Canara bank published on MDL website within 25 days from the date of contract. Crossed DD / Pay Order issued by Cooperative banks however will be accepted subject to realization. In case of SD-BG, the same shall be valid for one year from the start date of contract plus three months claim period. Bidders to advise their bank/banker to send SD-BG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. v. SD through NEFT- remittance through Bank: In case of online remittance of SD amount, scanned image of Annexure-VI, duly filled is to be submitted to Outsourcing Department. Further, the bidder should specifically mention the details of company name as well as nature of remittance, tender number/order number etc. in the text/narration fields of Bank’s NEFT remittance in order to identify the same. vi. Any delay in submission of SD shall result into charging of interest by MDL on the Contractor @ PLR of SBI + 2 % on the SD amount for the delayed period. Additionally, in case of failure to submit SD within twenty five (25) days from the date of order placement, the EMD submitted by the Contractor will be encashed and the Order would be liable for cancellation/termination with the invocation of Risk Purchase provisions of the Tender/Order. In case of failure to submit revised-rolling SD within twenty five (25) days from the date of intimation by MDL, the previously submitted SD by the contractor will be encashed by MDL. Additionally, SD amount could be withheld from the payable Invoice (s) of the Contractor, if any. vii. In case the completion of work is likely to be delayed beyond the Order completion period/Contractual completion period or this period is required to be extended, the Contractor shall have to extend the validity of the Bank Guarantee for SD till such extended period. In case of failure to comply with such extension of the Bank Guarantee for SD by the Contractor, the Bank Guarantee is liable for encashment by MDL. viii. Non-performance of the Terms & conditions of Order and/or default/breach by the Contractor will result in forfeiture of the SD with application of Risk Purchase provisions. .

SECURITY DEPOSIT (SD). 21.1 The successful bidder (Contractor) shall submit contractor, whose tender is accepted, will be required to furnish a security deposit for the Security Deposit due fulfilment of this contract, which will amount to a sum equal to @ 5 5% of the value of order (excluding Taxes) Contract Value within 25 30 days from the date of Order/Contract. Security deposit on reducing balance can be accepted on completion issue of services. Reducing balance bank guarantee towards security deposit is to be submitted by successful bidder where it work order, failing which the same will be valid for collected by deductions from the running bills of the contractor at least one year with claim period the rates mentioned above and the ▇▇▇▇▇▇▇ money deposited at the time of three months within which t he same can tenders, will be extended for further period by amendmenttreated as a part of the Security Deposit. i. Submission of SD is exempted for Indian PSUs. In lieu, Indemnity Bond in favour of MDL is required to be submitted (Format of the same would be forwarded with the Order). ii. Please note that MDL does not extend any concession such as exemption in payment of Security Deposit to any organization (Except PSU) irrespective of their status, like registered with MDL, NSIC, SSI, MSE, etc. iii. No interest will be paid on Security Deposit. 21.2 The security deposit will be returned only after successful execution of the order and shall be interest free. iv. Mode of SD : Security Deposit to be submitted furnished in the form of NEFT / DD/ Pay Order/ Performance Bank Guarantee drawn as per AAI’s prescribed format for the entire amount of Security Deposit and in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from such case the list of banks approved by SBI/ Canara bank published on MDL website EMD will be refunded. The Bank guarantee shall be submitted within 25 30 calendar days from the date of issue of Award Letter and it will be valid till 90 days after the end of the expiry of the contract. Crossed DD No interest or any other expense whatsoever on Security Deposit is payable by AAI (Refer SOP for BG Verification through SFMS of lClCl Bank mentioned in appendix I to III). 21.3 After termination / Pay Order issued expiry of the contract, the security deposit held by Cooperative banks however the AAI will be accepted released to the contractor within a period of six months subject to realizationrealization of dues, if any to be made from the contractor. 21.4 AAI shall have unqualified option to forfeit the S.D if the contractor failed to carry out the services as per the terms and condition of the contract without prejudice to other rights and remedies available to AAI. Any sum of outstanding dues against the Contractor including any amount on acceptance and liquidated damages shall be recovered from the S.D. AAI shall also have the rights to forfeit or appropriate towards the damages or losses that may be sustained by AAI due to any act / commission or defaults by the Contractor. 21.5 In case of SDthe contractor fails to submit the PBG within the stipulated period (30 days), interest @ 12% per annum (non-BG, the same shall be valid for one year from the start date of contract plus three months claim period. Bidders to advise their bank/banker to send SD-BG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. v. SD through NEFT- remittance through Bank: In case of online remittance of SD amount, scanned image of Annexure-VI, duly filled is to be submitted to Outsourcing Department. Further, the bidder should specifically mention the details of company name as well as nature of remittance, tender number/order number etc. in the text/narration fields of Bank’s NEFT remittance in order to identify the same. vi. Any delay in submission of SD shall result into charging of interest by MDL refundable) on the Contractor @ PLR of SBI + 2 % on the SD PBG amount would be levied for the delayed period. Additionallyperiod of submission and shall be deducted from the first bill payable to the Contractor. 21.6 In case, in case of failure the successful bidder fails to submit SD a performance bank guarantee within twenty five (25) 60 days of the issue of the letter of acceptance of his bid, AAI reserve the right to forfeit EMD and cancel the order. However, the Competent Authority may accept the PBG with delay and may waive off the payable interest on the merit of the case. No interest on EMD whatsoever shall be paid by AAI. 21.7 AAI shall have an unqualified option to forfeit the PBG if the contractor failed to carry out the services as per the terms and conditions of the contract without prejudice to other rights and remedies available to AAI. Any sum of outstanding dues against the Contractor including any amount on acceptance and liquidated damages shall be recovered from the date of order placement, PBG. AAI shall also have the EMD submitted right to forfeit or appropriate the damages or losses that may be sustained by the Contractor will be encashed and the Order would be liable for cancellation/termination with the invocation of Risk Purchase provisions of the Tender/Order. In case of failure AAI due to submit revised-rolling SD within twenty five (25) days from the date of intimation by MDL, the previously submitted SD by the contractor will be encashed by MDL. Additionally, SD amount could be withheld from the payable Invoice (s) of the Contractor, if any. vii. In case the completion of work is likely to be delayed beyond the Order completion period/Contractual completion period any act/ commission or this period is required to be extended, the Contractor shall have to extend the validity of the Bank Guarantee for SD till such extended period. In case of failure to comply with such extension of the Bank Guarantee for SD defaults by the Contractor, the Bank Guarantee is liable for encashment by MDL. viii. Non-performance of the Terms & conditions of Order and/or default/breach by the Contractor will result in forfeiture of the SD with application of Risk Purchase provisions. .

SECURITY DEPOSIT (SD). The successful bidder (Contractor) shall submit the Security Deposit @ 5 @3 % of the value of order (excluding Taxes) within 25 days from the date of Order/Contract. Security deposit on reducing balance can be accepted on completion of services. Reducing balance bank guarantee towards security deposit is to be submitted by successful bidder where it will be valid for at least one year with claim period of three months within which t he same can be extended for further period by amendment. i. Submission of SD is exempted for Indian PSUs. In lieu, Indemnity Bond in favour of MDL is required to be submitted (Format of the same would be forwarded with the Order). ii. Please note that MDL does not extend any concession such as exemption in payment of Security Deposit to any organization (Except PSU) irrespective of their status, like registered with MDL, NSIC, SSI, MSE, etc. iii. No interest will be paid on Security Deposit. The security deposit will be returned only after successful execution of the order and shall be interest free. iv. Mode of SD : Security Deposit to be submitted in the form of NEFT / DD/ Pay Order/ Bank Guarantee drawn in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from the list of banks approved by SBI/ Canara bank published on MDL website within 25 days from the date of contract. Crossed DD / Pay Order issued by Cooperative banks however will be accepted subject to realization. In case of SD-BG, the same shall be valid for one year from the start date of contract plus three months claim period. Bidders to advise their bank/banker to send SD-BG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. v. SD through NEFT- remittance through Bank: In case of online remittance of SD amount, scanned image of Annexure-VI, duly filled is to be submitted to Outsourcing Department. Further, the bidder should specifically mention the details of company name as well as nature of remittance, tender number/order number etc. in the text/narration fields of Bank’s NEFT remittance in order to identify the same. vi. Any delay in submission of SD shall result into charging of interest by MDL on the Contractor @ PLR of SBI + 2 % on the SD amount for the delayed period. Additionally, in case of failure to submit SD within twenty five (25) days from the date of order placement, the EMD submitted by the Contractor will be encashed and the Order would be liable for cancellation/termination with the invocation of Risk Purchase provisions of the Tender/Order. In case of failure to submit revised-rolling SD within twenty five (25) days from the date of intimation by MDL, the previously submitted SD by the contractor will be encashed by MDL. Additionally, SD amount could be withheld from the payable Invoice (s) of the Contractor, if any. vii. In case the completion of work is likely to be delayed beyond the Order completion period/Contractual completion period or this period is required to be extended, the Contractor shall have to extend the validity of the Bank Guarantee for SD till such extended period. In case of failure to comply with such extension of the Bank Guarantee for SD by the Contractor, the Bank Guarantee is liable for encashment by MDL. viii. Non-performance of the Terms & conditions of Order and/or default/breach by the Contractor will result in forfeiture of the SD with application of Risk Purchase provisions. .

SECURITY DEPOSIT (SD). The successful bidder (Contractor) shall submit the Security Deposit @ 5 3 % of the value of order (excluding Taxes) within 25 days from the date of Order/Contract. Security deposit on reducing balance can be accepted on completion of services. Reducing balance bank guarantee towards security deposit is to be submitted by successful bidder where it will be valid for at least one year with claim period of three months within which t he same can be extended for further period by amendment. i. Submission of SD is exempted for Indian PSUs. In lieu, Indemnity Bond in favour of MDL is required to be submitted (Format of the same would be forwarded with the Order). ii. Please note that MDL does not extend any concession such as exemption in payment of Security Deposit to any organization (Except PSU) irrespective of their status, like registered with MDL, NSIC, SSI, MSE, etc. iii. No interest will be paid on Security Deposit. The security deposit will be returned only after successful execution of the order and shall be interest free. iv. Mode of SD : Security Deposit to be submitted in the form of NEFT / DD/ Pay Order/ Bank Guarantee drawn in favor of MAZAGON DOCKSHIPBUILDERS LIMITED from the list of banks approved by SBI/ Canara bank published on MDL website within 25 days from the date of contract. Crossed DD / Pay Order issued by Cooperative banks however will be accepted subject to realization. In case of SD-BG, the same shall be valid for one year from the start date of contract plus three months claim period. Bidders to advise their bank/banker to send SD-BG directly to Outsourcing Department to dispense with additional step of verification of authenticity of signatories. No change/modification in the text of the prescribed format of the BG is permissible. v. SD through NEFT- remittance through Bank: In case of online remittance of SD amount, scanned image of Annexure-VI, duly filled is to be submitted to Outsourcing Department. Further, the bidder should specifically mention the details of company name as well as nature of remittance, tender number/order number etc. in the text/narration fields of Bank’s NEFT remittance in order to identify the same. vi. Any delay in submission of SD shall result into charging of interest by MDL on the Contractor @ PLR of SBI + 2 % on the SD amount for the delayed period. Additionally, in case of failure to submit SD within twenty five (25) days from the date of order placement, the EMD submitted by the Contractor will be encashed and the Order would be liable for cancellation/termination with the invocation of Risk Purchase provisions of the Tender/Order. In case of failure to submit revised-rolling SD within twenty five (25) days from the date of intimation by MDL, the previously submitted SD by the contractor will be encashed by MDL. Additionally, SD amount could be withheld from the payable Invoice (s) of the Contractor, if any. vii. In case the completion of work is likely to be delayed beyond the Order completion period/Contractual completion period or this period is required to be extended, the Contractor shall have to extend the validity of the Bank Guarantee for SD till such extended period. In case of failure to comply with such extension of the Bank Guarantee for SD by the Contractor, the Bank Guarantee is liable for encashment by MDL. viii. Non-performance of the Terms & conditions of Order and/or default/breach by the Contractor will result in forfeiture of the SD with application of Risk Purchase provisions. .