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What is the primary purpose of an Earnest Money Deposit (EMD) in tendering? — Answer & Solution | Civexa

Estimation and Costing · Tenders and Contracts

Tenders and Contracts MCQ with answer and solution

What is the primary purpose of an Earnest Money Deposit (EMD) in tendering?

Solution

Concept

Purpose of EMD

Step-by-step solution

1. EMD deters frivolous bids.

Explanation

It ensures only serious bidders participate.

Why the other options are wrong

It is not for project funds, insurance or escalation.

Shortcut

EMD = prevent frivolous bids.

Correct answer: A) To prevent frivolous bids

Practise more Tenders and Contracts questions

Free account: timed tests with your exam's negative marking, previous-year papers, a mistake book and weak-topic analysis.

Which of the following are included in tender documents?
For the wider publicity of tender, tender notice is published in minimum ______ daily newspapers.
EMD cannot be submitted in ________ form.
The power of an executive engineer (upgraded division) for acceptance of tender in CPWD is up to Rs. ________.
Which of the following documents are supplied by the contractor during pre-qualification process?
During the construction period, price variation clause in contracts caters to