In the estimation and costing, utmost importance is given for the payment of suppliers in an agreed time in order to maintain ______.

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SSC JE Electrical 06 Jun 2024 Shift 2 Official Paper - 1

Answer 1

In the estimation and costing, utmost importance is given to the payment of suppliers in an agreed time to maintain flexibility.

Flexibility

Flexibility in tendering refers to the ability to adapt and modify certain aspects of the tendering process or the terms of the tender document to accommodate changes or specific needs of the project, suppliers, or market conditions.
This flexibility can manifest in various ways and is important for ensuring that the tendering process remains effective and efficient.
By allowing for adjustments and modifications, organizations can improve the effectiveness of their procurement processes, enhance competition, and achieve better project outcomes.

Deposit security

Deposit security refers to the financial guarantee provided by a bidder (contractor) to the client (project owner) to secure their commitment to the contract. It acts as a form of protection for the client against non-performance, delays, or breaches of contract.

Bank Guarantee

A bank guarantee is a financial instrument issued by a bank on behalf of a client (the principal) to guarantee that the client's obligations will be met. If the client fails to fulfill these obligations, the bank will pay a specified amount to the beneficiary (the party to whom the obligation is owed).
In the context of tendering and contracts, bank guarantees play a vital role in ensuring the integrity and reliability of the procurement process.