Is tender security needed for RFQ?

No. Under rule 91(6), no tender security or performance security is required under the request for quotation method.

In what form can tender security be given?

A bank draft, pay order or bank guarantee from a scheduled bank. For works up to Tk 3 crore it must be a draft or pay order, under rule 31(1) and Schedule-2.

How long must performance security stay valid?

Until 28 days after the completion or supply date, under rule 36(5). If the date is extended, the security must be extended too.

Tender security and performance security under PPR 2025

Last updated: 27 Oct 2026 · 4 min read

At a glance

Tender security is a rounded fixed amount, and under Schedule-2 it stays within 3% of the estimate. It is not required for RFQ.
After you get the NOA you give a performance security. Under Schedule-2 it is 10% for goods, 5% for works (if no advance is paid) and 5% for services. For works valued at Tk 1 crore the schedule says it is not needed, so check your own document.
Refusing to sign the contract or failing to give the performance security can get your tender security forfeited.
The exact amount and form are in the TDS of your tender document, and you must follow it.

A mistake with security can get your bid thrown out or tie up your money. Here is how PPR 2025 words it, in short.

This is not legal advice. Check the amounts and format in the TDS of your tender document. Sources at the end.

Tender security

The office may ask for security when you submit the bid (rule 31(1)). Keep these in mind.

Form: a bank draft, pay order or bank guarantee from a scheduled bank. For works up to Tk 3 crore, Schedule-2 requires a draft or pay order.
Amount: rule 31(3) says a rounded fixed amount, with no percentage written in. Under Schedule-2, except for item-by-item tenders, the amount stays within 3% of the office's estimate.
Validity: at least 28 days beyond the end of the bid validity (rule 31(8)). If validity is extended, the security must be extended too (rule 32). Bid validity is normally 60 to 150 days (Schedule-2).
Where it is not asked: reverse auction, direct procurement and RFQ (rules 31(7) and 91(6)).

Before the evaluation report is final, the office verifies the security with the issuing bank. If it is not found genuine, that bid is not evaluated (rule 33).

When it is forfeited

Under rule 34, in these cases:

you withdraw the bid after opening, within its validity;
you fail to give the performance security, or the one you give fails verification;
you refuse to sign the contract;
you refuse to accept a correction of arithmetic errors (rule 118(12));
you are involved in professional misconduct under rule 149.

When it comes back

Under rule 35, the opening committee cannot return security. Security of non-responsive bids is returned after the evaluation report is approved. Security of the three lowest evaluated bidders is held, and the rest are returned on application. Once the contract is signed with the lowest, the remaining ones are returned. In every case before validity expires. Section 53 of the Act has its own conditions, so ask the office in writing for your return.

Performance security

You give it after you get the NOA (rule 36(1)). Rates under Schedule-2:

10% of contract price for goods, and 5% for divisible goods.
5% for works, if no advance payment is provided. For works valued at Tk 1 crore, the schedule says it is not needed. Whether that means "up to" or "below" Tk 1 crore, check in your own document.
5% for physical services.
With front loading, the contract security can go up to 25%, of which 5% is performance security and the rest is held as retention money (rule 36(2)).

Form: pay order, draft or bank guarantee (rule 36(3)). It must stay valid for 28 days after the completion date. If the work gets more time, the security must be extended (rules 36(5) and (6)). For how many days you get to give it, see NOA to contract.

Retention money is different

It is the amount held back from bills. Under Schedule-2, normally 5% from each instalment for works and services, and 10% from the final bill for goods (rule 37). It is not the same everywhere. Where no advance was paid, retention and performance security together are capped at 10% (front loading aside), and in domestic works contracts up to Tk 2 crore retention is 10%. It is due back within 28 days of the end of the defects liability period.

What to do

Note the security amount, form and validity from the TDS.
Check the name, tender ID and amount on the pay order or draft twice.
When a validity extension letter arrives, start the bank extension at once.
Line up the bank guarantee for the performance security before the NOA arrives.

To see security and closing on one screen for any tender, look at the sample Bid Brief. Find tenders here, see past rates on the rates page, and plans on pricing. Older plain guides: tender security and performance security.

Sources

Common questions

Is tender security needed for RFQ?: No. Under rule 91(6), no tender security or performance security is required under the request for quotation method.
In what form can tender security be given?: A bank draft, pay order or bank guarantee from a scheduled bank. For works up to Tk 3 crore it must be a draft or pay order, under rule 31(1) and Schedule-2.
How long must performance security stay valid?: Until 28 days after the completion or supply date, under rule 36(5). If the date is extended, the security must be extended too.

Rules and amounts change now and then. Check the latest rules on e-GP or the BPPA site before you bid.

Source: eprocure.gov.bd