Tender

Necessity
1. Scope of Work
Service/Consultancy
Material/Equipment Supply
Construction
2. Payment Basis
Item rate
Turn-Key (Lump sum)
Man-month
3. Participation by Bidders
Open subject to fulfilment of eligibility criteria
Registered
Pre-Qualified
4. Submission/Evaluation Procedure
Single Envelope
Two Envelope
Three Envelope

Publication of Tender Notice
Preparation of Tender Documents
Receipt of Tenders
Evaluation of Tenders
Award



Brief scope of work
Who can participate?
o Individual
o Company
o Joint venture
o Association
Eligibility criteria
Time for completion of job
Earnest Money Deposit
Other fees ( Document cost, Processing fee etc.)
Procedure for obtaining Tender Documents
Important Dates
o Issuing Tender Documents
o Pre-bid meeting and Site visit
o Last date/time for submission
o Opening
o Likely date for Award
Authority inviting, receiving and processing of tenders
Other important conditions
News Papers
Websites
E- Tendering Portals
Direct information to registered bidders
Foreign Embassies

Commercial Terms and Conditions
Scope of Work
Specifications/Design Criteria
Bill of Quantities (BoQ)
Item Rates/Cost Estimation
Eligibility Criteria
Bid submission Procedure
Evaluation Criteria and Procedure

Time for completion of job and for Intermediate
Milestones
Validity of Tender
Earnest Money Deposit
o Amount to be deposited
o Acceptable mode (cash, online, Demand Draft, Cheque,
Bank guarantee, Fixed deposit..)
o Other details (when, to whom )
Refund of Earnest Money
o Unsuccessful Bidders
o Successful Bidder

Performance Guarantee (Amount, Mode, Validity, Refund)
Payment for Work Done/Services provided
Billing Cycle
Procedure for measurement /assessment of work
done/services provided
Mode of payment
Time frame for payment of Bills
Mobilisation Advance (Amount, interest, Guarantee,
Deduction from payments.)
Deductions from payments (Amount, Refund)
o Security
o Income tax
o VAT/SALES TAX
o Labour welfare
o Provident fund
o Others ( )

Quality Control Procedures
o By Tenderer
o By Employer
o Independent Quality Control Agency
o Inspection/ Testing facilities(on site, manufactures site,
laboratory.)
Safety Measures
Environmental Management Plan
Penalties for delay in completion of job/bad work
Rewards for early completion
Termination of Contract ( reasons, procedure, settlement
of payments)
Reduction / addition in scope of work (quantity, rate,
procedure, time)
Enhancement of Agreement scope/ amount ( reasons,
limits, procedure..)
Price Variation

Dispute Settlement Mechanism ( Arbitration Act)
Sub letting of Works
Equipment/Material/Assistance by the Owner
Legal responsibility of Tenderer
o Labour laws
o Residential facilities
o Medical facilities
o insurances
o Others ( education, recreational.)
Time Extension (Reasons, Authority, Conditions)
Guarantee of Equipments
Defect Liability Period
Force Majeure clause
Joint Venture/ Association


Scope of work is to be defined clearly in detail
Starting and ending physical limits.
Linkage to existing infrastructure.
Linkage to on-going/proposed facilities and
services.
Facilities for linkage to future
infrastructure/services.
Outputs.
Specifications/Design Criteria.
For construction jobs, drawings depicting the works
Procedure for finalization construction drawings.
In case of equipments/materials, list of acceptable
manufacturer/makes.

Item Rate Tenders
(i) Tenderer is to quote rates in terms of
percentage below or above the estimated rates:
o Descriptions of various items
o Approximate quantity,
o Unit rates
o Item wise cost
(ii) Tender is to quote unit rate for each item of
work
o Descriptions of various items
o Approximate quantity



lump sum/ Turn-key Tenders
BOQ is not detailed.
Description of components for which rates are
to be quoted.
Break up of payment at intermediate stages for
each component is either defined in the Tender
Document or tenderer is to quote the same.
For speedy processing of the tenders, BOQ can
be improvised by defining the breakup of
payment for various components as percentage
of total amount to be quoted by tenderer.
Financial Competency
Turnover during last three or five years
Profit/loss during last three or five years
Availability of funds for execution of job.
Bidding Capacity
Technical Competency
Specific Experience
Personnel (Qualification, experience)
Equipment ( Capacity, Number)
Guidelines for competency has been defined by different
agencies (CVC, Funding agencies like World Bank, ADB,
JICA).
In case joint venture, competency of lead partner and
other partners is also defined.

This section describes the documents to be attached with the bid,
sealing and submission of the bids
Letter of intent
Company registration and General Profile of Bidders
Agreement in case of JV/Association/MoU and Power of Attorney
Audited account report/balance sheets. of Bidders
Availability of Funds. (Internal cash, bank credit limits etc.)
Litigation history of the Bidders.
Detail of works completed during last .. years (Work detail and
client certificate)
Details of works in hand.
Personnel to be deployed for the job (list and CV)
Equipment for the Job (Owned, leased etc.)
Technical detail of Equipment or Machinery to be
supplied/installed.
Earnest money, Processing fee ,Performance Guarantee
Signed copy of tender document including amendments
Approach and methodology to execute the job.
Price Bid
Single envelope, two envelope or three envelope.




Evaluation is based on
Meeting the minimum requirements defined under essential qualifications.
OR
Criteria/ sub criteria defining the weightage/marks allocated to various
components of essential qualifications.
Example
The company should be registered at ------.
Average turnover of the company during the last say 5 years should not
be less than -----.
During last five years company should not be in loss for any two
consecutive years.
The company should not have consistent history of litigation.
The company should not be debarred/ black listed for participation in
tenders.
The company should have successfully completed at least two jobs of
similar nature during last---- years , value of each job shall not be less
than ----. The physical scope of work done (type & quantum) in each job
should be-------
Detail of personnel/professionals to be deployed for the job.(Number,
minimum academic qualification, total experience--- years, similar
experience --- years, experience in similar conditions---- years)

I. Work experience- ---marks
Type of work
Volume of work
Individual/association
Completed/on-going
Financed by
Geographic location

II. Approach and Methodology ----- marks

III. Personnel ----- marks
Minimum Qualification (20 to 30 %)
Work experience (60 to 70 %)
Experience with funded projects (5% to 10%)
Experience in specific geographic area (5% to 10%)



Preliminary examination
Responsiveness of the bid (yes /No)
Whether bid is submitted as per prescribed format ?
All the information requested under bid submission is
attached?
Earnest money /other fees in full amount and prescribed
mode are attached?
Company registration, Agreement in case of
JV/Association/MoU, Power of Attorney are in
acceptable format/language.
Signing of the bid.

Detailed evaluation:
Only those bids which pass the preliminary examination are
considered for detailed evaluation.
Financial Competency
Turnover
Profit/loss during past
Availability of funds for execution of job.
Bidding capacity
Technical Competency (pass/fail or marking)
Specific Experience
Personnel (Qualification, experience)
Equipment ( Capacity, Number)
Litigation history
Bidding capacity
Approach and methodology.

Financial evaluation
The financial bid of only those bidders who meet the
qualification criteria is opened. The rates, discounts,
other terms/conditions by the bidder are announced
and recorded.
Checking for mathematical errors
Financial loading for specific conditions
Evaluated bid price is worked out.
Preparation of comparative financial statement
Fig or words

Work will be awarded to the bidder whose
Bid has been determined to be substantially responsive
lowest evaluated bid price
bidder meets the eligibility criteria
Bidder whose bid has been accepted is notified of the bid
acceptance. This notification constitutes formation of
contract subject to signing of contract and deposit of
performance guarantee.
Contact includes
o Submitted bid
o All correspondence between bidder and employer