TENDER

WHAT IS TENDER:-

TENDER IS AN OFFER IN WRITING TO EXECUTE SOME SPECIFIED WORKS TO SUPPLY SOME

ARTICLES AT CERTAIN RATES, WITHIN A FIXED TIME, UNDER CERTAIN CONDITIONS OF
CONTRACT AND AGREEMENT, BETWEEN THE CONTRACTOR AND THE DEPARTMENT OR
OWNER OR PARTY.

THE CONSTRUCTION WORK IS USUALLY DONE BY CONTRACT.

SEALEDTENDERS ARE INVITED AND THE WORK IS USUALLY ENTRUSTED TO THE LOWEST
TENDERER.

WHILE INVITING TENDERS THE BILL OF QUANTITIES, DETAILED SPECIFICATIONS, CONDITION

OF CONTRACT AND PLANS AND DRAWINGS ARE SUPPLIED ON PAYMENT OF THE REQUISITE
COST, TO THE CONTRACTS WHO TENDER OR QUOTE THEIR RATES.
TENDER
WHY TENDERS?

TENDERS ARE OPEN INVITATION TO BUY OR SELL GOODS/SERVICES/CONTRACTS/

CONSTRUCTION WORK. THOSE WHO ARE INTERESTED IN SUPPLYING WHAT HAS BEEN
ADVERTISED, CAN RESPOND TO A TENDER & SUBMIT THEIR BEST COMPETITIVE OFFER. THE
BEST COMPETITIVE OFFER (LOWEST BIDDER OR L1) IS GENERALLY SELECTED & THE
CONTRACT IS AWARDED TO L1 BIDDER.
TENDER
CONTRACT:-

CONTRACT IS AN UNDERTAKING BY A PERSON OR FIRM TO DO ANY WORK UNDER CERTAIN

TERMS AND CONDITIONS. THE WORK MAY BE FOR THE CONSTRUCTION OR MAINTENANCE
AND REPAIRS, FOR THE SUPPLY OF MATERIALS, FOR THE SUPPLY OF LABOUR, FOR THE
TRANSPORT OF MATERIALS, ETC.

CONTRACTOR:-

THETERM CONTRACTOR MEANS A PERSON OR FIRM UNDERTAKES ANY TYPE OF CONTRACT.

USUALLY, THIS TERM IS CONFINED TO THE CONTRACTORS ENGAGED FOR THE
CONSTRUCTION OR EXECUTION OF WORK OR REPAIRS.
MONEY
WHILE SUBMITTING A TENDER THE CONTRACTOR IS TO DEPOSITE A CERTAIN AMOUNT,
ABOUT 2 % OF THE ESTIMATED COST, WITH THE DEPARTMENT , AS EARNEST MONEY AS
GUARANTEE OF THE TENDER. THE AMOUNT IS FOR A CHECK SO THAT THE CONTRACTOR
MAY NOT REFUSE TO ACCEPT THE WORK OR RUN AWAY WHEN HIS TENDER IS ACCEPTED.
IN CASE THE CONTRACTOR REFUSE TO TAKE UP THE WORK HIS EARNEST MONEY IS
FORFEITED.

EARNEST MONEY OF THE TENDERER WHOSE TENDER HAS NOT BEEN ACCEPTED IS
REFUNDABLE.

THE AMOUNT OF EARNEST MONEY DEPENDS ON THE ESTIMATED COST OF WORKS.

DEPOSITE
ON ACCEPTANCE OF THE TENDER, THE CONTRACTOR HAS TO DEPOSITE 10 % OF THE
TENDERED AMOUNT AS SECURITY MONEY WITH THE DEPARTMENT WHICH IS INCLUSIVE OF
THE EARNEST MONEY ALREADY DEPOSITE.

THIS AMOUNT IS KEPT AS A CHECK SO THAT THE CONTRACTOR FULFILS ALL THE TERMS AND
CONDITIONS OF THE CONTRACT AND CARRIES OUT THE WORK SATISFACTORY ACCORDING
TO SPECIFICATIONS AND MAINTAINS PROGRESS AND COMPLETES THE WORK IN TIME.

IF THE CONTRACTORS FAILS TO FULFIL THE TERMS OF CONTRACT HIS WHOLE OR PART OF
THE SECURITY MONEY IS FORFEITED BY THE DEPARTMENT.

THE SECURITY MONEY IS REFUNDED TO THE CONTRACTOR AFTER THE SATISFACTORY

COMPLETION OF THE WHOLE WORK AFTER A SPECIFIED TIME, USUALLY AFTER ONE RAINY
SEASON OR SIX MONTHS OF THE DATE OF COMPLETION OF THE WORK.
NOTICE
TYPES OF TENDER
Open Tender:
Open tender is an arrangement where an advertisement in local
newspapers or trade journals invites contractors to apply for tender
documents. Open Tender is a transparent process which ensures that
only the contractor with the best price and meeting all the technical
requirements will win the tender.
Limited or Closed Tender /Selective
Tender:
In Limited Tenders, only pre-qualified or known bidders are allowed to
participate. Limited Tenders are not advertised in newspapers, as a
result other bidder generally do not come to know that such tender is
floated. The Lowest Bidder or L1 generally wins the contract.
Single Tender:
SingleTendering means sending the Tender to one particular party.
Normally, it is either for an item where there is only one supplier or for
an item where the purchaser has developed confidence in one supplier
only and would just like to verify the current price, delivery etc. Single
Tenders are also sent for items of proprietary nature.
Negotiated Tender:
UnderNegotiated Tender method normally one contractor is
approached and such tender mainly used for specialist work such as lift
system or airport project at big level, in such case there are limited
number of contractor who do such work in the market. It is based on
one-to-one discussion with contractors to negotiated the terms of
contract.
Item Rate Tenders:
In this type of Tenders the contractors are required to quote the rates
for each item mentioned in the price bid. The quantity to be executed is
given in the price bid.
Percentage Rate Tenders:
Inthis type of Tenders a detailed estimate of the quantity of work to be
carried out along with the estimate rates is given in the price bid form.
The Bidders are required to quote the amount in percentage above or
below or at Par.
Lump-sum Tenders:

Under a lump sum contract, a single

'lump sum' price for all of the works is
agreed before the works begin
 ICB orInternational Competitive Bidding:

A method for procuring goods and services that requires notification to the
international community. Bidders from eligible countries, as defined by the
contracting agency or country, are given an equal opportunity to bid.

NCB or National Competitive Bidding:

In
such tender type only Local or Indian companies can participate. International
companies are not allowed to participate.
 RFI or Request for Information:

A RFI (Request for Information) is issued when an organization wants to gather

information about a specific company or a suppliers products or services in an
initial data gathering phase. Usually with this data, companies can decide if
they would like to further explore purchasing that product or service, and can
qualify the produce/service/vendor for future conversations.

EOI -Expression of Interest:

Expression of Interest is similar to RFP. EOI stands a business expression
indicating an intent to bid
 RFPor Request for Proposal:

In RFP a company is required to submit only the Technical proposal.

RFQ or Request for Quote:

It is the same as RFP but more specific, and with more details in each part. An
RFQ (Request for Quote) is used when an organization has already decided on
a particular type of product or service, and wishes to see competitive pricing
from multiple vendors of that service.
Single Envelope Bidding:

In such Tender both the Price Proposal and the Technical Proposal are
submitted in a same envelope. The Contract is awarded to the Bidder
whose Bid has been determined to be the lowest evaluated substantially
responsive Bid
Two-Envelope Bidding:

Bidders submit two sealed envelopes simultaneously, one containing the Technical
Proposal and the other the Price Proposal, enclosed together in an outer single envelope.
Both Envelopes are then put in a Big Envelope, is sealed & submitted. First Technical bid
is opened & price bid of only those bidder who are found technically qualified are opened
subsequently at a later date.
FINAL CERTIFICATE OF PAYMENT:

Upon the architect's satisfactory final

inspection and favourable review of the
contractor's final payment request, the
architect will issue a certificate indicating
that the final payment is due. This
constitutes the architect's certificate of final
completion.
Interim Payment Certificates":
IT MEANS payment certificate issued under the Clause "Contract Price and Payment", other than
the Final Payment Certificate.

Most standard forms of contract state an entitlement on the part of the contractor to interim
payment. These payments assist in the contractor`s cashflow, but the actual determination of
the contractor`s entitlement is not made until the final certificate. The interim payments are
therefore sums paid on-account of whatever the contractor might eventually be entitled to
recover from the Employer. Most standard forms make the issue of a certificate a condition
precedent to the contractor`s right to payment.
It is a matter of fact whether payment for work carried out is a statement of acceptance or
approval. Most contract provisions for interim certification and payment are based on
cumulative valuation of work done, and are only for payments on account. They are not binding
nor conclusive of acceptance of the work.
Multiple Envelope Bidding :

in such Tender, EMD is submitted in 1st Envelope, Technical Bid is Submitted in 2nd
Envelope & Price Bid is submitted in 3rd envelope. On the basis of requirement bid can
be submitted in separate envelope. First EMD envelope & pre-Qualification envelope is
opened. Technical envelope of only those bidders who pre-qualify is opened and at last
those who are found technically qualified, their price bid is opened.
SPECIFICATIONS
1. the act or an instance of specifying

2. (in patent law) a written statement accompanying an

application for a patent that describes the nature of an
invention

3. a detailed description of the criteria for the constituents,

construction, appearance, performance, etc, of a material,
apparatus, etc, or of the standard of workmanship required
in its manufacture

4. an item, detail, etc, specified