Bid Security And Performance Security

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Procurement Security & Bond Dashboard

Public Procurement Act (PPA) Nepal Compliant Engineering Estimation Toolkit

1. Bid Security / Bond Evaluation

PPA 2063 / PPR 2064

Estimate Amount (Inc. VAT & Provisional Sum)

Rs.

S.N.	Description	Amount / Calculation Details	Remarks
1	Security Base Parameter (2% - 3%)	2.60% = 0.00	2.6% Consider
	Total Bid Security Bond Required	0.00	Approx

Guidelines & Framework

• Bid Security parameter typically scales between 2% and 3% of total approved cost estimate framework.
• Baseline fiscal estimation mandates evaluation inclusive of absolute Value Added Tax (VAT) and explicit Provisional Sum lines.

2. Performance Security / Bond Evaluation

Threshold Rules Applied

Cost Estimate (Excl. VAT/Contg. | Incl. PS)

Rs.

Contractor Bid Amount (Excl. VAT/Contg. | Incl. PS)

Rs.

S.N.	Analytical Evaluation Item	Amount / Calculated Metrics	Status Variant
1	Absolute Variance Profile (Estimate - Bid)	0.00	—
2	Percentage Variance Below Estimate	0.00%	Standard
3	Basic Primary Performance Bond (5%)	0.00	5% of Bid Price
4	Additional Escalated Security Mitigation	0.00	PPA Provision
	Total Mandatory Performance Bond Securement	0.00	Approx

Dynamic Legal Framework Provisions

• Rule I If bid price evaluation rests up to 15% below estimate, the mandatory security equals a flat 5% of the Contractor's Bid Price.
• Rule II If the evaluation plunges more than 15% below estimate, additional provisions activate via the structured mathematical scale:
  PS Amount = [ (0.85 × Cost Estimate − Bid Price) × 0.5 ] + 5% of Bid Price