PWD tightens tender norms to ensure quality infra projects

In a move aimed at ensuring timely and high-quality execution of public infrastructure projects, the Public Works Department (PWD) of Delhi has introduced a new clause mandating an Additional Performance Guarantee (APG) from bidders quoting abnormally low rates.

The reform, announced by Delhi’s Minister for Public Works and Water Parvesh Verma, is expected to deter non-serious contractors and strengthen accountability in the bidding process.

Addressing mediapersons, the minister said the department had noticed a growing trend of contractors submitting unworkably low bids merely to secure tenders, without having the intent or capacity to deliver. “Such practices have led to sub-standard work, delays and in some cases, abandonment of projects,” he said.

Under the new guideline, if the lowest bid received in a tender is significantly below the department’s estimated cost, it will be deemed speculative. The bidder concerned will then be required to submit an Additional Performance Guarantee equal to the difference between the bid amount and the threshold percentage defined by the department. This guarantee is in addition to the usual security deposit and performance guarantees.

The award of work will be conditional upon the timely submission of this APG. Non-compliance could lead to the cancellation of the work order and debarment of the contractor.

“This decision is not just about financial safeguards — it’s about accountability and respect for public funds,” said Verma. “Our goal is to ensure that every rupee spent translates into durable, timely and high-quality public works,” he added.

The provision will apply to all future tenders, including high-value civil works, roads, flyovers and public buildings. The department is updating internal guidelines and organising training for engineers and tender committees to ensure effective implementation.

This initiative forms part of a broader strategy to streamline operations, improve monitoring and raise execution standards in public works. According to officials, it reflects the PWD’s commitment to transparency, accountability and citizen-first governance.

Delhi