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Earnest Money Deposit and Performance Bank Guarantee Basics: Documents & Checklist You'll Need

27 July 2026 by
Earnest Money Deposit and Performance Bank Guarantee Basics: Documents & Checklist You'll Need
Gaurav Kumar

Before starting with Earnest Money Deposit and Performance Bank Guarantee Basics — an overview of the two common financial instruments required in government tenders — EMD for bidding and PBG for contract performance — it helps to have everything ready in advance. Here's the checklist relevant to businesses bidding on or executing government tenders and contracts.

The Checklist

EMD amount and acceptable payment mode as specified in the tender

Timeline for EMD submission before the bid deadline

PBG amount and validity period required post-award

Bank arrangements for issuing a guarantee, if required

Terms under which EMD or PBG can be forfeited

Process for refund/release once obligations are fulfilled

Why Preparation Matters

Missing or incomplete documentation is one of the most common reasons applications get delayed with standard practice under government tender and contract terms. Having this list ready before you begin can meaningfully speed up the process.

Once You Have Everything Ready

  1. Review the tender for EMD amount and submission mode
  2. Arrange and submit EMD before the bid deadline
  3. If awarded, arrange a Performance Bank Guarantee as specified
  4. Track validity and renewal of the PBG through contract execution

Need Help With This?

Leegal's team handles registration, compliance, and advisory work like this end-to-end, with transparent pricing and a dedicated point of contact throughout.

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Earnest Money Deposit and Performance Bank Guarantee Basics: Step-by-Step Process Explained