Amendment status not verified — confirm the current text below against the official source.
Commercial Conditions.- 14[(1) The tender documents shall require all tenderers without exception to pay an Earnest Money Deposit (EMD) ordinarily not exceeding one per cent of the value of the procurement by means of [electronic mode of payment or] in the form of a demand draft, bankers cheque, specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a prescribed form. The tender documents shall clearly state that any tender submitted without the Earnest Money Deposit (EMD) in the approved form be summarily rejected:] Provided that any category of tenderers specifically exempted by the Government from the payment of Earnest Money Deposit (EMD) will not be required to make such a deposit. (2) The tender documents shall specify the period for which the tenderer should hold the 15[financial bids] offered in the tender valid: 16[Provided that the initial period of validity shall ordinarily be ninety days.] (3) The tender documents shall require that as a guarantee of the tenderer’s performance of the contract, a security deposit be taken from the successful tenderer subject to the conditions that.- (a) the amount of the deposit not exceeding five per cent of the value of the orders placed: and 17[(b) The deposit being in the form of electronic mode of payment or in the form of demand draft or banker’s cheque or specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in an approved form.] 14 Substituted excluding the proviso thereto by Amt No.1(i) for insertion of “electronic mode of payment or” [TNGGE No. 296, dated 19-09-2017- G.O.Ms.No.271 / 19th September 2017]. 15 Substituted by Amt. No.6(a)(i) for the expression “prices” [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012]. 16 Substituted by Amt. No.6(a)(ii) for the proviso ‘Provided that the initial period of validity shall not be less than ninety days,’ [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012]. 17 Substituted by Amt No.1(ii) for insertion of “electronic mode of payment or in the form of” TNGGE No. 296, dated 19-09-2017- G.O.Ms.No.271 / 19th September 2017]. TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000. 28 (4) The tender documents shall clearly indicate the payment terms conforming to the following requirements.- 18[(a) Payment shall ordinarily be effected only on completion of delivery against the orders placed: Provided that payment of advance may be made in the following cases for sufficient reasons to be recorded by the Procuring Entity:- (i) in cases where goods, commodities and services are procured through imports requiring opening of Letter of Credit; (ii) in cases where there is single source of supply only and where the practice of paying advance is already in vogue as a standard practice; (iii) in cases of purchase during natural calamities and emergencies declared by the Government under clause (a) of section 16 of the Act; (iv) in cases of purchase of life saving drugs; and (v) in cases where the standard commercial terms of supply require payment of advance by the Procuring Entity, such as the machinery and equipment manufacturers for sugar and cement plants.] (b) Mobilization advances may be paid in the case of construction or supply and installation contracts of a large and complex nature, for a value exceeding rupees one crore: Provided that such mobilization advances shall not ordinarily exceed ten per cent of the value of the contract, shall be secured against irrevocable bank guarantee and shall be recovered in the subsequent bills payable along with interest as per specific terms set in the tender documents Provided further that in case of mobilisation advances for plant machinery and equipment, they are also hypothecated to the Governor of Tamil Nadu in addition to other requirements; (c) Percentage of payment to be withheld for the effective performance of the contract: 18 Substituted by Amendment for the clause ‘Payment shall ordinarily be effected only on completion of delivery against the orders placed, subject to the exceptions specified in the tender documents,’ [TNGG No.14 / 14-04-2004 (No.SRO A-12/2004) - G.O.Ms.No.107 / 23rd March, 2004]. TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000. 29 Provided that withheld amounts do not exceed ten per cent of the total value of contract; (d) Payment terms for imports shall be based on standard terms of international trade and the payment may be effected through irrevocable Letters of Credit drawn on banks; (5) The tender documents shall clearly indicate whether any variations in the commercial terms prescribed in the documents will be permitted and if so to what extent such variations would be considered. (6) The tender documents and the contract shall include a clause for payment of liquidated damages and penalty payable by the tenderer in the event of non-fulfillment of any or whole of the contract. (7) The tender documents shall clearly indicate the terms on which the tenderers will be required to quote their 19[financial bid] which should be inclusive of all costs of delivery at the final destination such as transportation, payment of duties and taxes leviable, insurance and any incidental services and giving the break up thereof. 20 & 21[(7-A) The tender documents shall include then details of purchase preference as provided in the Chapter VI-A.] (8) The tender documents shall include a price adjustment clause to reflect any changes either upward or downward in major cost components such as labour, equipment, material and fuel, based on a prescribed formula in the case of large contracts where the period of execution is likely to exceed eighteen months. (9) The tender documents shall indicate the quantity proposed to be procured in the tender, and the Tender Accepting Authority shall be ordinarily permitted to vary the quantity finally ordered only to the extent of twenty five percent either way of the requirement indicated in the tender documents. 19 Substituted by Amt No.6(b)(i) for the expression ‘prices,’ [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012]. 20 Inserted by Amt. No.1, ‘(7-A) The tender documents shall clearly indicate the criteria for evaluation and comparison of tenders and shall also provide for a price preference of fifteen percent for domestic small scale industrial units and ten percent for the Public Sector Undertakings of the Government in respect of products and quantities manufactured by them’ [TNGG No.44 / 21-11-2001 (No.SRO A-72(m-a)/2001) - G.O.Ms.No.452 / 16th November, 2001]. (w.e.f. 1-12-2001) and then Omitted by Amt. No.6(b)(ii), [TNGGE No.345 / 11-12-2012 (No.SRO.A-36(a)/2012) - G.O.Ms.No.425 / 11th December, 2012]. 21 Inserted by Amt No.4 [TNGGE No.225, dated 26-06-2018 (No. SRO A-35(b)/2018) – G.O.Ms.No.207 / 26-06-2018]. TAMIL NADU TRANSPARENCY IN TENDERS RULES, 2000. 30