EMD & SD
DIFFERENCE BETWEEN EARNEST MONEY AND SECURITY DEPOSIT
| EARNEST MONEY | SECURITY DEPOSIT |
| E.M. is submitted along with the tender. | S.D. is submitted after acceptance of the tender. |
| E.M. is submitted by all tenderers. | S.D. is collected from successful tenderers. |
| E.M. is submitted in lumpsum i.e. in one instalment. | S.D. can be submitted in instalments by deduction through on account bill. |
| E.M. is refunded to unsuccessful tenderers immediately. | S.D. is refunded only after successful completion of work. |
| E.M. is collected at the rate of 21/2%, 2%, 1% and ¾% of value of tender. | S.D. is collected @ 10%, 7½% and 5% of value of contract. |
| E.M. can be converted in to S.D. | S.D. can not be converted in to E.M. |
| Maximum E.M. collected is Rs.50000/- . | No maximum limit is fixed for S.D. |
| E.M. can not be collected in the form of B.G. | S.D. can be collected in the form of B.G. |
| E.M. can be collected as standing amount i.e. Standing Earnest Money. | No provision for collection of Standing amount for S.D. |