Section 53
Bid Security
(1) The public entity shall specify in the notice on invitation to bids certain amount which is within a minimum of two to three percent of the amount of approved cost estimate and applicable to all bidders according to the nature of procurement as the amount bid security to be furnished by a bidder along with the bid. Such an
amount shall be in form of a cash deposit or of a bid security equal to that amount issued by a commercial bank or financial institution.
Provided that in cases where an invitation to bids is made without specifying the amount of cost estimate or specifying only the unit rate, the public entity may specify a lump sum amount for the bid security in the bidding documents or prequalification documents and notice on invitation to bids.
(2) The validity period of the bid security referred to in sub- rule (1) shall be for a minimum of thirty days beyond the validity period of the bid.
(3) If any bidder requests the public entity inviting bids to clarify whether the bid security issued by a particular commercial bank or financial institution is acceptable to it or not, such a public entity shall forthwith answer that request.
(4) The bid security issued by a foreign bank must be counter guaranteed by a commercial bank within Nepal.
(5) The public entity shall enter into the procurement contract within the validity period of the bid. If, for any reason, the procurement contract cannot be entered into within that time, the public entity shall send a letter to all the duly qualified bidders to extend the validity period of bids.
(5a) The public entity shall send a letter to extend the validify period of bids pursuant to sub-rule (5) only if there exists sufficient ground justifying the extension of the validity period of bids upon making an analysis of the reason for extending such a period. In cases where the extension of the validity period of bids in the absence of
such ground and reason for extending the validity period of bids results in any loss or damage because of failure to evaluate the bids in time or to make a decision in time on the evaluation submitted, the employee involved in such an act and officials of the evaluation committee shall be responsible for such loss or damage.
(6) The bidders may decide whether or not to extend the validity period as per the letter referred to in sub-rule (5). The bid security of a bidder who does not extend the validity period of the bid shall not be liable to forfeiture. Those bidders who extend the validity period of the bids shall submit the bid security by also getting the validity period accordingly extended by the concerned bank. If a bidder fails to submit the bid security by so extending its validity period, the bidder shall not be deemed to have extended the validity period of the bid.
(6a) A bidder who extends the validity period of the bid pursuant to sub-rule (6) shall not mention any additional condition which is contrary to the provisions set forth in the bidding documents.
(7) In cases where the bid security of a bidder is forfeited, the concerned public entity shall make a claim within the validity period of the bid security before the bank issuing such a security for payment to the entity of the amount of the bid security furnished by such a bidder.
(8) Except for a bid security liable to forfeiture under the Act or this Regulation, the public entity shall return the bid security to the concerned bidder within three days of the conclusion of the procurement contract.