Tendering

TENDER

Tender is an offer made by one party to another for

execution of specified Work at a specified cost in
keeping with all the terms and Conditions set there
in the tender document including the extent of the
work shown on the plans.
CLIENTS PROCESS
Client advertises openly in press or trade
publications inviting contractors to apply for the
project
Contractor that is able to under take the project
would request a tender document (depending of type
of tender)
After receiving the tender (open or selective) from
the client (e.g., clients architect, design team,
procurement department), contractor may need to
give deposit to ensure a bona fide tender.
Filter out the contractors who are not interested in
submitting a tender.
Open tender is sent to contractor, treated as offer to
do work for assured sum of money, generally
preceded by a prequalification document and
statement of works, lists, requests, etc.
Prior to inviting of the tenders, it is the duty of the
architect to see that:
All the plans,
specifications and
details are not only
clear and correct, but
without any ambiguity.
Bill of quantities
should be as accurate
as possible.

Special conditions if any should be thoroughly

checked so that not. a single item is overlooked.

Prior to filling of the tender, the contractor is

required to make a careful study of plans,
specifications, special conditions, etc.,
It is process to call contractor for doing a certain job
or provide certain service at a competitive price.
Usually done through press advertisements by Govt.
Bodies. Now a days it is also done on their web sites.
CONTENTS OF NIT (NOTICE INVITING TENDER)
Brief Project Particulars
Brief Requirement of Tender

Eligibility Criteria Technical & Financial

Duration & Place of sale of tender document
Price of tender document
Contact Information
Probable amount of Contract (Primarily in Govt. Tenders)
Earnest Money amount
Work completion period
Bid submission period
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Tender No. & Date

Nature of Work
Minor Economics
Genuine Security Deposit
How to Pay
Total Duration
Time to Apply!
Time to Hurry!
Various Details & Links
Address Of Issuer
 PURPOSE OF TENDERING DOCUMENT

To Select a Suitable
Contractor

It Is The Most Effective

Methods of Locking
Competitive Rates
Types of tenders

Open tender

Limited /selective tender

Negotiated tender
OPEN TENDER

An Open Tendering
Process Is On Invitation
To Tender By Public
Advertisement

Bidding process
Open to all qualified
contractor
 LIMITED /SELECTIVE TENDER

Limited tender open to bidders in category stated

No of contractor of known reputation are selected

by the team

They are hired Due to more experience

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 NEGOTIATED TENDER

Achieves a Contract Between a Client & a

Contractor By DirectNegotiation, Rather Than
Competitive Bidding.

This Type OfNegotiationIs Used To Procure

Services In Specialized Areas.
 TENDER PROCESS
Step 1 : NIT Notice Inviting Tender (Advertisement,
Post , Email.. )
Step 2 : EOI- Expression of Interest by respective
Bidders
Step 3 : Tender document Floating/ Selling
Step 4 : Pre Bid Meeting

Step 5 : Bid Submission

Step 6 : Bid Opening

Step 7 : Bid Evaluation

Step 8 : Post Bid Meeting

Step 9 : Report Formation

Step 10 : Award of Contract

 THE PRE BID MEETING
Subsequent to the purchase of Tender Document, the
prospective Bidders, Employer and Consultants meet for
discussions with following objectives :

Provide clarification to the Bidders- Technical or

Commercial

Communicate any additional information in Project

Do necessary revision in the tender documents as per

industry feedback

Ensure minimum deviations

Critical points to explained and discussed

The Minutes of Pre Bid Meeting are recorded and it may

be followed by an Amendment or Addendum to the
 THE BID SUBMISSION/ TENDER SUBMISSION
Subsequent to the Pre Bid Meeting, the Bids are prepared and
submitted in the prescribed time and form, duly sealed.

The Bid submission could be of following forms

Two Stage Bidding : First Techno commercial part &

then Price part

Single stage Bidding : Comprehensive Bid is submitted

 THE BID OPENING / TENDER OPENING

Tender Board ( consisting of

representative of Employer
-Chairman/ Board Member/
CEO/ CE; Consultant,
Financial Institute) meets on
the nominated day and time
to open these Sealed bids
( Generally few hours after
last time of Bid submission
date). Late Bids are not
supposed to be entertained
Usually Following steps are followed:
Step 1 : Introduction of the Participants and
announcement of the Bidders. Followed by
Attendance marking.
Step 2 : Declaration of Sufficiency of the Bid Bond
Step 3 : Declaration of Guaranteed Technical Particulars
Step 4 : Declaration of the Bid Price if its a Single Stage
Bid
 THE BID EVALUATION

Generally the bid evaluation process involves a team of experts or

panels which is lead at the front by a single person who is
responsible for interdepartmental/interdisciplinary coordination as
well as coordination with the stake holders to and Bidders . He may
be known as Project Coordinator or Project Manager. His objectives
are:
The Bid is thoroughly evaluated by the respective Technical,
Legal, Commercial &Financial experts
Proper flow of communication to & from bidders (queries &
replies)
All aspects of bids are evaluated
Every Bidder gets a fair chance of winning the contract
 AWARD PROCESS
Based on Evaluation report & recommendation of Assessment Panel a Best
Fit Bidder or successful is declared.
A Letter of Award is Issued to the Successful Bidder.
The Bidder is asked to submit a Contract Performance Guarantee which
could be in form of a Bank Guarantee, Demand Draft, Cash or a Fixed
Deposit Receipt
A contract between Bidder & Employer is drafted as per International
Contract Laws.
Contractual Obligations & Rights are being drafted / incorporated in the
contract
Technical Obligations are clearly stated
Quality Obligations are clearly stated
Completion Schedule is clearly stated
Payment schedules are clearly stated
The contract is signed and moved for implementation
 CONTRACT DOCUMENTS BROAD FEATURES
Work of tender/contract is mentioned

Date of signing is mentioned

Parties are mentioned

Scope of the contractor is mentioned

Contract price is mentioned

Documents of reference and their order of precedence is

mentioned

Time schedule is mentioned

Payment terms is mentioned

Other conditions of contract- technical & commercial are referred.

Duly signed/stamped by the authorized representatives in

presence of witness
Thanks