News
MoRTH Clarifies Basis for Calculation of APS for Abnormally Low Bids
The Ministry of Road Transport and Highways (MoRTH), vide its circular bearing reference no. RW/NH-33044/34/2024-S&R (P&B), dated September 22, 2026, (“Circular”) issued in continuation of its earlier circulars dated April 30, 2025, and June 30, 2026, has clarified the basis for determination of Additional Performance Security (APS) for bidders quoting abnormally low bid prices in Engineering Procurement and Construction (EPC), Hybrid Annuity Model (HAM), PBMC and STMC contracts.
The Circular clarifies that APS shall be calculated with reference to the following, as specified in the Notice Inviting Tender (NIT):
- for EPC, PBMC and STMC works, the estimated project cost/cost put to tender; and
- for HAM works, the estimated bid project cost.
MoRTH has further clarified that the Performance Security shall be considered as mentioned in the respective contracts. The heading of the table annexed to the earlier circulars has accordingly been revised to reflect the bid price, percentage discount to the project cost put to bid, Performance Bank Guarantee, APS and Total Performance Bank Guarantee, including the percentage of Performance Security with reference to the bidder’s quoted bid price.
