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The government has restored the earnest money deposit (EMD) provision in the bidding process for highway construction and consultancy contracts. It said that the effect of the Covid-19 pandemic on the highway sector has been neutralised.
The government’s decision also comes in the backdrop of a rising tendency of bidders to make abnormally low bids for construction and consultancy contracts.
“Since there is no EMD deposit, bidders are quoting abnormally low prices for the bid. And, after winning the bid, they start searching for a sub-contractor,” the ministry of road transport and highways said in a circular.
It added, “This tendency will have
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