Tender & bidding
Performance Bank Guarantee (PBG) Calculator
After a contract is awarded, the contractor furnishes performance security — often as a bank guarantee — usually a percentage of the contract value, valid until after the defect liability period.
Details
Common rates
Performance guarantee
₹0
How this is worked out
Performance security under GFR 2017 is 3%–10% of the contract value. If you quoted well below estimate, check the Below-estimate bid security tool for additional security.
Frequently asked questions
What percentage is a performance bank guarantee?
It is set in the tender document; 3% to 10% of the contract value is common in Indian government contracts. Check your letter of acceptance for the exact figure and validity.
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.