Reserved tenders: SC, ST and Category-I and II(A) contractors
Karnataka reserves construction works up to ₹1 crore for contractors from the Scheduled Castes, Scheduled Tribes and, since June 2024, backward classes in Category-I and II(A). What is reserved, how the tender shows it, and every relaxation: half the EMD, security deposit from bills, turnover in one year, any work of 25%, a tender-capacity factor of 5, and a 5% mobilisation advance.
In this module
A proviso in section 6 of the KTPP Act sets aside a share of construction works to be tendered only among contractors from the Scheduled Castes and Scheduled Tribes, and since 10 June 2024 also among backward classes in Category-I and Category-II(A). If you hold one of those certificates, the reserved tenders are the easiest way into contracting in the state: a smaller field, and a standard document with every bar lowered.
What is reserved
- Construction works up to ₹1 crore. The ceiling was ₹50 lakh until Karnataka Act 23 of 2023 raised it, with effect from 29 March 2023, for SC and ST contractors.
- Karnataka Act 29 of 2024, from 10 June 2024, extended the preference to contractors from the backward classes in Category-I and Category-II(A), following the 2023-24 budget speech. Rule 27A of the KTPP Rules was amended on 9 August 2024 to match.
- Departments earmark specific works and tender them among the reserved category. On KPPP the notice says so in its heading or eligibility line; BiddingView shows it on the tender page.
The relaxations, side by side
| Clause | Open tender up to ₹1 crore | Reserved tender up to ₹1 crore |
|---|---|---|
| EMD (K/W-1 to 3) | 2.5% up to ₹20 lakh; 2% above, minimum ₹50,000 | 1.25% up to ₹20 lakh; 1% above, minimum ₹25,000 |
| Turnover (K/W-2, 3) | Average of at least two years not less than the estimate | One financial year not less than the estimated annual payments |
| Experience (K/W-2, 3) | One similar work of 50% of the cost | Any construction work of 25% of the cost |
| Quantities (K/W-3) | Usually 80% of the peak annual rate | Usually 50% of the peak annual rate |
| Tender capacity factor | 2.5 | 5 |
| Security deposit | 5% within 20 days of the LOA, cash or guarantee | 5% deducted from every running bill; on a first-and-final bill, from that bill |
| Mobilisation advance (K/W-3) | None | 5% of the contract price against a bank guarantee, interest-free, drawn before 20% of the contract period, repaid at 7.5% of each interim payment once payments reach 15% |
What you still need
- The caste or category certificate in the name of the bidder, from the competent revenue authority, valid on the closing date. For a firm, the document states what share of the partners must hold it; a certificate lent to a proprietorship in someone else's name is the kind of false representation that forfeits the EMD and debars.
- Registration in the class the notice names. The reservation lowers the tender's tests, not the KPWD Code's.
- Everything else in Cover 1: PAN, GST, returns, declarations, the DSC. Module 4, Chapter 3.
How to use it
A new Class IV or Class III contractor with the certificate should filter for reserved tenders first (BiddingView's tenders list carries the reservation in the title and eligibility fields). The field is smaller, the EMD is half, the deposit comes out of bills rather than your pocket, and on a K/W-3 work the 5% advance funds the first month. Two or three reserved works build the certificates that open the general tenders; Module 2, Chapter 6 is the ladder from there.
Key takeaways
- Works up to ₹1 crore are reserved for SC and ST contractors (since 2023) and Category-I and II(A) backward classes (since June 2024).
- In a reserved tender the EMD is halved, the deposit comes from bills, turnover is one year, any work of 25% counts, the capacity factor is 5, and K/W-3 works carry a 5% advance.
- You still need the certificate in your own name, the registration class the notice names, and the whole technical cover.
- The relaxations belong to the tender, not the bidder: only a tender invited among the category carries them.
Check yourself
0 / 3- 1.Up to what value are construction works reserved for SC, ST and Category-I/II(A) contractors in Karnataka?
- 2.What is the EMD on a ₹60 lakh reserved tender?
- 3.How is the security deposit taken in a reserved tender?
Frequently asked
Do OBC contractors get reservation in Karnataka tenders?
What is the EMD in a tender reserved for SC/ST contractors?
Is a mobilisation advance available in reserved tenders?
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Written from the KTPP Act and Rules, the Karnataka Public Works Departmental Code 2014, KPWD bidding documents and office checklists, and checked against awarded tenders on this site. Figures change; the tender document and the registering office are the final word. Spotted an error? Tell us.