KV Corner

Performance Security Government of India, Ministry of Finance, Department of Expenditure Procurement Policy Division New Delhi issued a office Memorandum regarding the Extension of Validity period of performance Security money @3% of total Value of the Contract. During the Covid The Government of India reduce the percentage of Performance Security money from 5-10% to 3% till 31.12.2021 as per office memorandum dated 12.11.2020. and now this period has been extended till 31.03.2023 Click Here for More details and complete Circular in pdf. Click Here for More details and complete Circular in pdf. As per Rule 171 of General Financial Rules (GFRs) 2017, Performance Security is to be obtained from the successful bidder awarded the contract for an amount of five to ten percent of the value of the contract to ensure due performance of the contract. Similar provisions also exist in the Manual for Procurement of Works 2019 and Manual for Procurement of Consultancy & other Services 2017 issu