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The purpose of collecting earnest money deposit is,
  • a)
    to prevent the contractor from refusing to accept the work when the tender has been accepted
  • b)
    to increase the profit of contractor when project is completed
  • c)
    to enhance the competition among tenderers
  • d)
    to fund contingencies in the project
Correct answer is option 'A'. Can you explain this answer?
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The purpose of collecting earnest money deposit is,a)to prevent the co...
Earnest Money Deposit - the amount which is deposited by the contractor to the department at the time of submitting a tender. It is usually 2% of the total estimated cost of the project. This serves as a check to prevent the contractor from refusing to accept the work when the tender has been accepted. This also helps in reducing the unnecessary competition among tenderers. It also acts as a tool for punishment when the contractors quote lower without intention of doing work in case of which the earnest money shall be forfeited by the department as a punishment.
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The purpose of collecting earnest money deposit is,a)to prevent the contractor from refusing to accept the work when the tender has been acceptedb)to increase the profit of contractor when project is completedc)to enhance the competition among tenderersd)to fund contingencies in the projectCorrect answer is option 'A'. Can you explain this answer?
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The purpose of collecting earnest money deposit is,a)to prevent the contractor from refusing to accept the work when the tender has been acceptedb)to increase the profit of contractor when project is completedc)to enhance the competition among tenderersd)to fund contingencies in the projectCorrect answer is option 'A'. Can you explain this answer? for Civil Engineering (CE) 2024 is part of Civil Engineering (CE) preparation. The Question and answers have been prepared according to the Civil Engineering (CE) exam syllabus. Information about The purpose of collecting earnest money deposit is,a)to prevent the contractor from refusing to accept the work when the tender has been acceptedb)to increase the profit of contractor when project is completedc)to enhance the competition among tenderersd)to fund contingencies in the projectCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Civil Engineering (CE) 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The purpose of collecting earnest money deposit is,a)to prevent the contractor from refusing to accept the work when the tender has been acceptedb)to increase the profit of contractor when project is completedc)to enhance the competition among tenderersd)to fund contingencies in the projectCorrect answer is option 'A'. Can you explain this answer?.
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