In a decisive step to enhance transparency, accountability, and quality control in public infrastructure development, the Public Works Department (PWD), has introduced a stringent new measure to tackle the rising issue of non-serious and speculative bidding in departmental tenders.
Over the past several months, PWD has observed a concerning trend where certain bidders, primarily focused on acquiring tenders rather than executing them efficiently, quote abnormally low rates—often well below the department’s estimated project costs. While such bids appear competitive on paper, they frequently result in project delays, sub-standard work, or in some cases, complete abandonment of the project midway. This not only hampers infrastructure growth but also inconveniences the public and burdens the exchequer with escalated costs.
To curb this practice and instill a greater sense of responsibility among bidders, the Civic body has announced the implementation of an “Additional Performance Guarantee” clause for all future tenders where bids are found to be abnormally low.
Key Features of the New Guideline:
• Additional Performance Guarantee (APG):
In tenders where the lowest quoted bid falls more than a specified percentage below the estimated cost, it will be treated as unworkable. The concerned bidder will be required to submit an Additional Performance Guarantee equivalent to the difference between the quoted rate and the threshold percentage. This guarantee will be over and above the existing security deposit and performance guarantee requirements.
• Conditional Awarding of Work:
Work will be awarded to such lowest bidders only after the submission of the APG. Failure to comply within the specified timeframe will result in cancellation of the award and debarment of the bidder as per departmental norms.
• Objective:The primary goal is to eliminate speculative bidding, ensure only capable and serious contractors participate, and improve overall efficiency and quality of public works.
Statement from the Minister, PWD, Parvesh Sahib Singh:
“This decision is not just about financial safeguards—it’s about accountability and respect for public funds. When a contractor quotes an unreasonably low amount and then fails to deliver, it’s the common man who suffers due to project delays and poor infrastructure. Our goal is to ensure that every rupee spent translates into durable, timely, and high-quality public works. We are committed to building a transparent and efficient PWD that puts the citizen first.”
This landmark reform marks a significant shift in how the PWD handles tendering, especially in high-value civil works, road projects, flyovers, and public buildings. By ensuring that bidders have the financial and technical capacity to undertake projects at quoted rates, the department seeks to raise the bar on execution standards.
PWD officials have been directed to incorporate this provision in all future tenders, and internal guidelines are being updated accordingly. Training sessions will also be organized to brief engineers and tender evaluation committees on how to implement the new system effectively.
This initiative is part of a larger roadmap being undertaken by the PWD under Shri Parvesh Sahib Singh’s leadership to streamline internal processes, strengthen monitoring mechanisms, and uphold the highest standards in infrastructure development across Delhi.
