MoRTH issued a circular dated February 29, 2024, where it is announced that for existing Engineering, Procurement and Construction ("EPC") projects the additional performance guarantee which is required to be submitted by the EPC contractor in case of abnormally low bid price is reduced in value to 3% of the bid price.
The submission of lower additional performance guarantee is permitted subject to the contractor completing certain milestones under the contract and there being no pending disputes or court proceedings. This benefit is being provided on account of the liquidity crunch being faced by several contractors.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
