Delhi Raises Performance Guarantee to Boost Infrastructure Quality

Delhi Minister Parvesh Verma announced plans to raise the performance guarantee limits in future Public Works Department (PWD) tenders to enhance the quality and timeliness of infrastructure projects. The initiative is aimed at ensuring greater financial accountability from contractors bidding for public projects.

The performance guarantee is a requisite in PWD tenders, where contractors must deposit a sum relative to the project's estimated cost. This clause is being reinforced to deter contractors from quoting unrealistically low bids that compromise project standards, leaving the public to suffer from delays and subpar infrastructure.

New provisions include an Additional Performance Guarantee (APG), which is supplementary to existing deposit requirements. This advance deposit will be refunded only upon satisfactory project completion, verified by the supervising engineer. According to officials, Delhi seeks to align its practices with successful models from Uttar Pradesh, Odisha, and the Ministry of Highways.

(With inputs from agencies.)