With reference to tenders, which of the following statements is INCORRECT?

Question

Question

This question was previously asked in

SSC JE Electrical 4 Dec 2023 Official Paper II

Tenders are invited on a tender form prescribed by the purchase department.
The earnest money is never returned to the unsuccessful contractors after disposal of the tender.
The sealed tenders are invited publicly through news-papers.
Normally, the tender offering the lowest rates is accepted.

Answer 1

Explanation:

The incorrect statement is 2) "The earnest money is never returned to the unsuccessful contractors after disposal of the tender."
In the tendering process, earnest money is submitted by bidders to demonstrate their seriousness and commitment. However, it is a common practice to return earnest money to unsuccessful bidders once the tender process is concluded.
The purpose of earnest money is to ensure that bidders have a genuine interest in the tender, and its return to unsuccessful bidders is a fair practice acknowledging their participation. This encourages competition and ensures transparency in the tendering process.