Tender security (bid security): how much and how to pay it

Last updated: 20 Oct 2026 · 6 min read

The steps

1. Check the security amount, accepted form and validity in the notice and tender document.
2. Buy the tender document on e-GP; the security payment option opens after that.
3. At an e-GP partner bank branch, pay the security with the tender ID and your email.
4. Once the bank confirms it, check that it shows against your bid on e-GP.
5. Then submit your bid, at least a day before closing.

Tender security, also called bid security or earnest money, is a fixed sum of money or a bank guarantee you lodge with the office along with your bid. It has one job: to make sure you do not walk away after bidding and that you sign the contract if you win. The notice states the amount in taka. If you do not win, you get it back. If you break the rules, the office can keep it.

Why it exists

Imagine someone bids very low, wins, and then says they will not do the job. The office loses time and has to tender again. To prevent this, rule 31 of the Public Procurement Rules 2025 lets an office ask for a security with the bid. For a serious contractor it is not a burden; the money is just tied up for a while.

How much

Tender security is asked for as a fixed amount, not a percentage. The notice says something like "Tender Security Amount: Tk 2,50,000". The office sets it from its own estimate, as a small share of it. Rule 31(3) says the security is a rounded fixed amount, never a percentage written in the document. Under Schedule-2, except for item-by-item tenders, the amount stays within 3% of the estimate. No security can be asked in RFQ, reverse auction or direct procurement.

Across thousands of tenders in ProcureIndex data, the security is about 2.5 to 3% of the contract value in most cases. That has a practical use: e-GP does not publish the estimate, but the security lets you guess how big the job is. If the security is Tk 3 lakh, the job is probably around Tk 1 crore to Tk 1.2 crore. Every tender page on ProcureIndex shows this as "estimate (our figure from the security)".

The percentage rules can change with amendments. Check the latest rules on e-GP or the BPPA site, and for the amount always use the figure in the notice, not your own calculation.

With several lots, each lot has its own security. Pay the security for the lot you bid on.

Accepted forms

The tender document says which forms are accepted. The common ones:

• Through a bank on e-GP: the most common on e-GP tenders. You pay at an e-GP partner bank and the bank confirms the security in the system. No paper goes to the office.
• Bank guarantee: a scheduled bank guarantees on your behalf. Your money is not fully locked, but the bank charges a fee and a margin.
• Pay order or bank draft: accepted in some tenders, especially older, non-e-GP ones.

For a bank guarantee, follow the format in the tender document word for word. A changed wording can get the bid rejected.

Validity: where most mistakes happen

Every bid has a validity, for example 90 or 120 days, and normally 60 to 150 days (Schedule-2). The tender security must stay valid longer, at least 28 days beyond the bid validity under rule 31(8). With a 120-day bid validity, the security must be valid for at least 148 days.

If the guarantee expires too early, the office can reject the bid however good the price. Check the period in the document before you go to the bank. If the office later asks you to extend the bid validity, extend the security too.

An example

Say an office in Sylhet tenders a building repair. The notice says: tender security Tk 1,50,000, bid validity 90 days from opening. Then:

• Pay exactly Tk 1,50,000, not more and not less.
• For a bank guarantee, keep it valid for at least 118 days (90 + 28) from opening.
• Assume the job is roughly Tk 50 to 60 lakh when you check your eligibility and work out your price.

If an amendment moves the opening date, recount the validity from the new date.

When you get it back

• If you do not win: once the winner signs the contract and gives the performance security, the others' securities are released. On e-GP, once the office releases it, the bank returns your money.
• If you win: your tender security is returned after you give the performance security and sign the contract.
• If the tender is cancelled: everyone's security is returned.

If a refund is slow, write to the officer concerned with the tender ID.

When it is forfeited

The office can keep your security if you:

• Withdraw or change your bid after closing, within the validity period.
• Do not accept the NOA after winning.
• Do not give the performance security in time.
• Refuse to sign the contract.
• Refuse to accept the office's correction of arithmetic errors.

So price your bid carefully. Bidding with a "we'll see later" attitude risks your security. What to do after an NOA is in What is an NOA.

When it is not needed

Small RFQ (request for quotation) purchases usually do not ask for tender security, and DPM (direct procurement) usually does not either. OTM and LTM usually do. The notice of each tender is final. See OTM, LTM, RFQ, DPM for the methods.

Plan your cash

Bid on several tenders at once and all those securities are tied up together, sometimes for months. Five tenders at Tk 2 lakh each is Tk 10 lakh. If you win, you then need a performance security, which is larger. Agreeing a guarantee limit with your bank in advance makes life easier.

To see what security amounts are live right now, check today's tenders or a district page such as Khulna or Mymensingh. On all tenders you can also filter by security amount. More questions? See the FAQ.

Rule numbers and details are in tender security and performance security under PPR 2025.

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