PWD: extra security from very low bidders
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On 4 May 2026 the UP Cabinet set a procedure for settling Public Works Department tenders to improve work quality and stop unhealthy competition. Bidders who win on very low rates will have to deposit additional performance security. Before selecting bidders more than 15 per cent below the estimate, the quality of their ongoing and finished works will be checked.
- Date
- 4 May 2026, UP Cabinet
- Department
- Public Works Department (PWD), UP
- Aim
- better quality; curb unhealthy competition
- Tenders
- above ₹5 crore via SBD; below ₹5 crore via T-1 and T-2
- Trigger
- bids more than 15% below estimate
- Measure
- additional performance security
Extra performance security for very low bids in PWD tenders: what happened?
In public tenders the lowest bid usually wins. But a contractor who quotes far below the estimate may cut corners or leave the job half done. Extra security money makes such bidders put more at stake, and quality checks test whether they can deliver.
- The Cabinet set a procedure under which bidders quoting very low rates in PWD tenders must deposit additional performance security, to improve quality and curb unhealthy competition. [UP Cabinet]
What are the new rules?
- Additional performance security from bidders whose low-cost bids are accepted, in both SBD tenders above ₹5 crore and T-1/T-2 tenders below ₹5 crore.
- Quality checks, as per rules, of ongoing and completed works of contractors quoting more than 15 per cent below.
- Extra security also from such low bidders who have no work running in the State and have completed no work in the 2 years before the technical bid opened.
Why does it matter?
- Roads and buildings built cheaply but badly cost more to repair later.
- The rule balances competition with the need for durable public assets.
What can Prelims ask on extra performance security for very low bids in PWD tenders?
- UP PWD (May 2026): additional performance security for very low bids; checks on bidders more than 15% below estimate.
- Tender types: SBD above ₹5 crore; T-1 and T-2 below ₹5 crore.
Read all of May 2026 in the monthly UP current affairs compilation →
How to use this in Mains
- Abnormally low bids often end in poor roads or abandoned work.
Quotable data pointThe Cabinet set a procedure under which bidders quoting very low rates in PWD tenders must deposit additional performance security, to improve quality and curb unhealthy competition [UP Cabinet].
UP Information Dept: Cabinet decisions, 4 May 2026 (Hindi PDF)
Exam angle
GS-VI: governance in UP. Use as an example of procurement reform to protect the quality of public works.
Practice MCQs
Original practice questions (not PYQs).
Under UP's May 2026 PWD tender procedure, quality checks of a contractor's works are made before selecting bids that are more than
Answer (c) & explanation
UP Cabinet note, 4 May 2026.
Questions students ask about this
What did the UP Cabinet decide on PWD tenders on 4 May 2026?
Bidders who win on very low rates must deposit additional performance security, and those more than 15 per cent below estimate face quality checks of their works.
Why was this needed?
To improve the quality of works and curb unhealthy competition in tenders.
What about bidders with no recent work in UP?
If they have no ongoing work in the State and completed none in the 2 years before the technical bid opened, extra security will be taken from them.
Keep studying
Go deeper
Official source: UP Information Dept: Cabinet decisions, 4 May 2026 (Hindi PDF)
facts from cited sources only; numbers machine-checked against source text; faculty review pending