The money which have to be deposited by the contractor while submitting a tender, which is approximately about 2% of the estimated cost, wi…

Earnest money:

While submitting a tender the contractor is to deposit a certain amount, approximately about 2% of the estimated cost with the department as the guarantee of the tender is called as Earnest Money.

This amount is for a check so that the contractor may not refuse to accept the work or run away when his tender is accepted.

Security Money:

If the contractor accepted the tender, then he has to deposit 10% of the tendered amount as security money with the department which is inclusive of the earnest money already deposit.

Earnest money