Guides · EMD and money
What is the difference between bid security and performance security (PBG)?
Bid security is the earnest money every bidder furnishes with the bid and gets back if unsuccessful; performance security is what only the winner furnishes after award, as a bank guarantee or an ePBG on GeM, to secure delivery of the contract, and it is released after the contract is performed. The bid document states both amounts and their timelines.
Bid security (EMD)
- Furnished with the bid, in the amount and mode the bid states.
- Returned to unsuccessful bidders after award; adjusted or released for the winner once performance security is in place.
- Exemptions for MSEs and recognised startups on most bids. See What is EMD?.
Performance security
- Furnished by the winner only, within the days the bid states after award, as a percentage of the contract value set in the bid.
- On GeM usually an ePBG, an electronic bank guarantee, or another instrument the bid allows.
- Released after the contract's obligations, including any warranty period, are met.
- Failure to furnish it in time can forfeit the EMD and cancel the award.
Where iBid.Win helps
Both amounts, when the mirror carries them, appear on the bid page, and the workspace's finance requests track the EMD and the performance guarantee against their due dates.
Frequently asked
Is performance security refundable?
It is released, not refunded: the guarantee is returned or cancelled after performance, unless the buyer invokes it for non-performance.
Can MSEs skip performance security too?
The MSE exemption is for earnest money. Performance security is usually required from every winner; some bids reduce it for MSEs.
What is an ePBG?
An electronic performance bank guarantee issued through the bank and recorded on GeM, replacing the paper guarantee.
Last checked 08 September 2026. Written from GeM's published process and this platform's own rules; the bid document and the GeM portal are the authority on any date or amount.