Tender & bidding
Additional Performance Security Calculator for Below-Estimate Bids
Many departments ask for additional performance security when a bid is quoted well below the estimated cost, to protect against unworkable rates. The extra security is usually a percentage of the difference between the threshold and your quoted amount.
Enter the estimate and your quoted amount or percentage to see where your bid stands and the total guarantee you would need.
Tender and your bid
Your bid as
Direction
Security rules
From the tender's performance guarantee clause.
CPWD and GFR: 3%–5%
Varies by department — often 10% to 25%
Total performance security
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How this is worked out
When a bid is more than the set percentage below the estimate, departments ask the bidder for additional performance security equal to the gap between that floor and the bid — e.g. with a 10% limit, the gap between 90% of the estimate and your quote.
Frequently asked questions
When is additional performance security required?
When the accepted bid is below the estimated cost by more than the threshold set in the tender document. The threshold and the formula vary by department, so use the figures in your tender.
Figures are for planning. The conditions in your tender document or contract always take precedence.
Let the calculators fill themselves in
With a free Digi Karya account, these tools pull in your own contracts, tenders, bills and documents — and you also get licence and GST expiry reminders, a tender workspace, milestone billing and EMD & bank guarantee tracking.