Question

Security deposit is

1. deposited at the time of filling tender
2. deposited by the contractor whose tender is accepted
3. deposited at the time of opening tenders
4. deposited for fair competition

Answer 1

Correct Answer - Option 2 : deposited by the contractor whose tender is accepted

Concept:

Security deposit:

• It is an amount of money which shall be deposited by the contractor whose tender has been accepted in order to render himself liable to the department to pay compensation.
• When contract security is required, the contractor may, in lieu of a performance bond and a labor and material payment bond, provide a security deposit.
• When a security deposit is delivered, it must be, in the amount of 10% of the contract price for construction contracts and at least 10% for other contract types.
• Security deposit is always refundable in nature.
• Security deposit cannot be withheld from any other contract with the same client.