1 / 3

What is Security Deposit in Tenders tender information (1)

People who want to bid on business or government projects often have to pay a security fee. They can use this deposit to show that they are serious about the price and will go through with the deal if it is accepted. A lot of businesses and shops get the point and value of it wrong. Why do you need a security deposit? Find out what kinds of deposits there are. How do I get my money back? This blog post will talk about both of them.

SANDEEP148
Download Presentation

What is Security Deposit in Tenders tender information (1)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Whatisa securitydepositintenders:information? • WhatisSecurityDepositinTenders? • Peoplewhowanttobidonbusinessor governmentprojectsoftenhavetopay asecurityfee.Theycanusethisdeposittoshowthattheyareseriousabout thepriceandwillgo throughwiththedealifitisaccepted.Alotofbusinesses andshopsgetthepointandvalueofitwrong.Whydoyouneedasecurity deposit?Findoutwhatkindsofdepositsthereare.HowdoIgetmymoney back?Thisblogpostwilltalkaboutbothofthem. • Whatisadown payment? • Peoplemustsendacertainamountofmoneyinordertobidonsomething.Thesellertellsthepersoninchargeofbidsthattheywillnotbackoutofthe dealiftheywinitwiththisdeposit.Iftheydon'tgothroughwiththedeal,they mightlosethedeposit. • Whydoyou needto payadownpayment? • Thesearethemostimportantones: • Peoplewhoaren'tseriouscan'tbetbecauseitmakessurethatonly seriouspeopleplay. • Whatifthewinnerdoesn'tdowhattheysaidtheywoulddo?The depositcanbeusedtocoverany loses. • Thedepositprotectsthegovernmentorprivategroupsincasethe persondoesn'tshowupontimeordoesn'tfollowtherules. • Youcankeepyourmoneysafeinanumberofways. • Youcanofferdifferentkindsofsecuritywhenyoubid. • Ifyouwanttobuyahouse,youneedtoputdownsomemoney.Thisis knownasanearnestmoneydeposit(EMD). • Yousendtheseinassoonasyougettheopportunitytomakesureit getsdone.

  2. Somemoneywon'tbepaidoutuntilthedealiscomplete.Thenamefor thiscashis"retentionmoney." • Howisthepaymentnumberchosen? • Thegroupbiddingusuallydecideshowmuchofadeposittoaskfor.Thisis whatthenoticetobidsays.It'susually between2%and10%ofwhatthedeal isreallyworth. • Youcanpayinanumberof ways. • Thereareseveralwaystosendaprotectionfee,suchas • Ifthesellerdoesn'tdowhattheysaytheywilldo,thebankwillpay. • Onewaytopaysomeonewhobidsiswitha demanddraft(DD)orpay order. • TheFDRofabankisapromiseto holdapayment. • FindouthowtopayonlinewithNEFTorRTGSHERE.Youcannowpay formanythingsonline. • Whenisthesecuritydeposit refunded? • Peoplewhobidcangettheirdepositbackiftheopportunityisdonewell. You don'thavetowaitafewweekstoafewmonthstogetyourmoneyback. • Peoplewhoputdownmoneymightnotgetitbackifthedealfallsthrough. • Thingstokeepinmind • Youcanalwaystellwhatthesecurityfeeisforbecause it'swrittenon thebidpapers. • Pickthemethodofpaymentthatworksbestforyou. • Ifyoukeepyourendofthedeal,youcangetyourmoney back. • Smallbusinessesandpeopleonthegovernment'slistdon'thavetosend EMDforsomebids.

  3. Conclusion Thisisagoodwaytomakesurethatpeoplewhobidcankeeptheir word. Firmsandserviceproviderscanfeelbetteraboutbiddingiftheyunderstand howitworks.Beforeyoubidonsomething, youshouldalwaysknowhowto pay,howmuchofasecurityfeeisneeded,andhowtoreturnit.It'sfreefor you. Securitydepositintenders EarnestMoneyDeposit(EMD) Bidsecuritydeposit Governmenttendersecurity Securitydepositrefundintenders

More Related