July 10, 2020

PPRA Rules Query on Procurement Procedures

Client Query 165:- Hi, hope all is well at your end. I wanted to discuss about a query which is related to PPRA rule 39 . In view of PPRA rule#39(i) bidder shall deposit the Performance security in the form of pay order or demand draft or bank guarantee, which is not more than 10% of contract price. However, bidders are asking that please deduct our performance security from our payment. So is this acceptable for the organization to hold performance amount from payment?


Asim Raza, UK


Answer:- Thank you very much for writing to us. As per your query, lowest evaluated and successful bidder is required to submit performance guarantee not exceeding 10% of the contract amount. It can not be adjusted out of the payment or running bills etc. as it is to be provided by the procuring agency to the lowest evaluated bidder.

If you wish to inquire anything else you may set up an appointment with our extremely competent team of lawyers and visit our office which is located at GF-13, Tower A, The Centaurus, Islamabad, Pakistan.

You can also reach us at 0092-300-5075993

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