TYPES OF TENDER AND

TENDER NOTICE

Tender.

Tender is an offer given in writing to

execute specified articles or materials at a
certain rate, within a fixed time, under
certain conditions of agreement between
the contractor and the party, which may
be a government department or an
individual.

TYPES OF TENDER
Open

or public tender
Selected or limited tender
Negotiated tender

Open or public tender

In this type of tender, any contractor can
enter into competition and all formalities of
giving opportunity to compete are to be
fulfilled.

It is compulsory for public works and

because of competition; it may result in low
cost. But there are chances of dispute as
mistakes found out at a later stage are
difficult to be adjusted.
It is also not suitable for complicated and
specialized jobs.

It also proves to be laborious for the

architect or the engineer as the work have
to be entrusted to an unknown contractor.
The end result is likely to be that the work
goes to a contractor who is not fit for the
work and even through the initial price is
low, the final cost including the cost of
delays, claims extra items, non tender item
etc. is likely to be substantially higher.
In the end neither the contractor,
the
architect, nor public or client is happy.

Selected or limited tender

For this type of tender, the architect after
consultation with his client invites a limited
number of contractors for filling up the
tender of the project.
It results into competition on a small scale.
But it is proves to be useful for specialized
and skilled work.
It also leads to early successful completion
of the project.

Negotiated tender
This is the advanced form of selective
tender and the contract is given by
negotiations with one or at the most two
contractors.
As such, there is no competition in this type
of tender and hence, it may be prove to be
costly.
But when the work is to be completed in
target time without sacrificing for the
quality, the negotiated tender may prove to
be the only alternative.

Tender Notice
The notice inviting tender paper is a very
important document on which tender and
subsequent agreements with the
contractors are based.
Tender notice should stipulate reasonable
time for completion of work, in an urgent
case the authority which is competent to
approve N.I.T, in that particular tender
might curtail the period but the period
should be realistic period.

All tender notice should be in the standard

form of department.
It is displaced in the notice board of the
division and also circulated to the related
subdivision and other division of the
department.
For wide publicity of major work, the tender
notice is required to be published in two daily
local newspaper.