What is the criteria for fixing EMD amount in a tender?
2006-08-22 21:46:38 · 4 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
Earnest money deposit (EMD) amount in a tender is based on the logic of the recovery of the expenditure incurred by the tender floating organisation from its initialisation to the final award of the tender. In case, the agency to whom the tender is awarded denies to take up the work, the tender floating organisation can fore fit the EMD. In practise it is taken to be 2 to 5 percentage of the amount put to tender. Lesser the amount put to tender higher is the percentage for EMD.
2006-08-22 23:32:46 · answer #1 · answered by ars32 3 · 0⤊ 0⤋
It all depends on the value of the Tender (ie to day the total value of the work ) and normally 10% of the value of the work or it is constant amount fixed by the companies. The EMD will be deposit money for the work to be given to them. This amount will be refunded only after satisfactory completion of work.
2006-08-26 02:25:46 · answer #2 · answered by thiagarajan b 1 · 0⤊ 0⤋
There is no rule as such. It has relation to the Value of Tender and generally it could be 2.5% to 5% of such work value.
2006-08-23 06:04:42 · answer #3 · answered by Arun D 2 · 0⤊ 0⤋
i dont know -sorry
2006-08-23 04:49:28 · answer #4 · answered by hanifrng 3 · 0⤊ 0⤋