Common use of SECURITY DEPOSIT (SD) Clause in Contracts

SECURITY DEPOSIT (SD). A. Upon acceptance of tender, the successful bidder must deposit the required amount of security deposit after adjusting the amount of EMD duly deposited with the tender, within the time specified in the letter of intent for satisfactory completion of work. B. The total amount of Security Deposit shall be as follows:- a) In the of work costing upto Rs.10 Lakh: 10% b) Above Rs.10 lakhs upto Rs. 50 Lakhs: 1 Lakh + 7.5% of the amount exceeding Rs. 10 Lakhs. c) Above Rs.50 lakhs: Rs.4 Lakhs+5% of the amount exceeding Rs.50 Lakhs. The security deposit calculated as above shall be deposited with in one week from the date of issue of letter of intent/ work order but before the start of work in any of the following forms. The total Security Deposit may be Deposit in the form of Demand Draft in favor of “Bharat Heavy Electricals Limited” payable at SBI, IGFCCL Branch (Branch code 9072), I.A. Jagdishpur.