EMD and tender fee in Karnataka tenders: amounts, payment, refund and forfeiture
Two payments stand between you and the Submit button, and one of them comes back. The tender fee is small and gone. The Earnest Money Deposit is larger and refundable. Both are paid on KPPP, both must clear before the closing minute, and both are checked at technical opening.
Updated 2026-09-28. Figures from the KPWD Code, 2014 and the standard K/W tender documents; the tender document governs where it differs.
1Read the amounts off the notice
The tender fee is fixed per tender, typically a few hundred to a few thousand rupees, and is not refunded. The EMD is a percentage of the estimate. Up to ₹1 crore the rate is fixed by government order in the standard K/W documents: 2.5% up to ₹20 lakh, 2% with a minimum of ₹50,000 from ₹20 lakh to ₹1 crore. Above ₹1 crore the tender states it; 1 to 1.5% is typical. Reserved tenders for SC, ST and Category-I and II(A) contractors pay half: 1.25% up to ₹20 lakh, 1% with a ₹25,000 minimum up to ₹1 crore.
2Pay through the gateway on a deadline
Net banking, debit or credit card and UPI through the portal's payment gateway are instant. NEFT and RTGS go to a virtual account the portal generates for your bid and must reach and reconcile before closing, which can take a working day or more: pay at least two days early. An over-the-counter challan at a designated branch is slower still. On larger tenders whose document allows it, a bank guarantee from a scheduled bank in the department's format, valid 45 days beyond the bid validity, can stand in for cash EMD.
3Claim an exemption only where the tender grants one
Tenders for goods and services, and some works tenders, exempt Udyam-registered MSMEs from the tender fee, the EMD, or both. The exemption is claimed by uploading the Udyam certificate in the technical cover. A works tender that is silent means pay.
4Know what the EMD binds you to
From the moment you submit, the EMD is a promise with a length: the bid validity, not less than 90 days from closing in the K/W documents, with the EMD instrument valid 45 days beyond. During validity the department may accept your offer at any time and you may not withdraw or change it. If evaluation runs long, the department asks bidders to extend validity in writing; you may agree, extending the EMD too, or decline without losing it.
5Collect the refund
Unsuccessful bidders' EMD is refunded after the award to the bank account on the supplier profile, usually within a couple of weeks of the Letter of Acceptance, longer where the department is slow to close the tender on the portal. The successful bidder's EMD is adjusted against the security deposit or refunded when the deposit is furnished. If a tender is cancelled, every EMD is refunded. Keep the receipt and write to the division after 30 days.
The four things that forfeit an EMD
- Withdrawing or modifying the bid after opening and within the validity period.
- Refusing to sign the agreement or to furnish the security deposit within the time stated in the Letter of Acceptance.
- Refusing to accept the arithmetic correction of your bid, where the document lets the evaluator correct totals from the unit rates.
- False information in the bid, discovered at any stage.
What does not forfeit it
Losing, being non-responsive, a cancelled tender, or declining a validity extension. None of these costs you the EMD.
Count the money you are lending
A contractor bidding six tenders a month at ₹1 lakh EMD each has ₹6 lakh sitting with departments at any time, for two to three months each. That is working capital. Bid fewer tenders you can win rather than many you cannot, and reconcile refunds monthly.
Questions people ask
What is the EMD on a ₹60 lakh PWD work?
₹1.2 lakh under the usual slab: ₹20 lakh to ₹1 crore is 2%, above the ₹50,000 floor. A reserved-category tender of the same estimate is 1%, ₹60,000.
How is EMD refunded on KPPP?
To the bank account on your supplier profile, after the tender is awarded or cancelled and the department releases EMDs on the portal. A couple of weeks is typical; write to the division after 30 days if it has not arrived.
Is the tender fee refundable?
No. It is the price of the tender document and processing and is retained whether or not you win.
Can EMD be paid by bank guarantee?
On tenders whose document allows it, usually larger ones, from a scheduled bank in the department's format and valid 45 days beyond the bid validity. Small works generally require cash EMD through the portal.
Is EMD forfeited if I lose the tender?
No. EMD is forfeited only for withdrawing or modifying the bid within validity, refusing to sign the agreement or furnish security after the LOA, refusing an arithmetic correction, or false information.
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