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EMD Forfeiture and Refund

Earnest money is returned to unsuccessful bidders as a matter of course. A surprising amount of it is never claimed.

When it comes back and when it does not

SituationEMD
You bid and loseReturned after the tender concludes
You bid and win, and signUsually adjusted or returned once the performance guarantee is furnished
You win and then withdrawForfeited
You withdraw during bid validityForfeited
You submit false documentsForfeited, plus action on your registration

The forfeiture cases have a pattern: they all involve a bidder not honouring what the bid represented. That is what earnest money is for, and it is why "we changed our mind" is not a route out.

Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.

The unclaimed refunds

Contractors who bid regularly accumulate EMD across tenders they did not win. Refunds are not always automatic, and a bidder who did not follow up on a tender they lost often never sees it back.

Across a few years and a few dozen bids, that adds up to real working capital sitting with departments.

Build a list: every tender bid, EMD amount, instrument, result, and whether it was returned. It takes an afternoon and it usually finds money.

If a refund has not come

Apply in writing with the tender reference and the instrument details, then follow up. Departments respond to written requests with a reference number far more reliably than to phone calls.

Where the instrument was a bank guarantee rather than cash, chase the discharge as well — an undischarged guarantee keeps your margin money tied up at the bank.

Common questions

Worth chasing. Send us the tender reference and instrument details and we will prepare the request.

Generally not - that is precisely the case forfeiture exists for. It is also worth knowing that withdrawing after winning can affect your standing for future tenders.

Chase the discharge in writing. Until it is discharged the bank keeps your margin, so this is real money.

Yes, and for contractors who bid regularly this is often the fastest thing we do that puts money back.

Send us your case

Send us the tender references and instrument details. We will work out what is outstanding.

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