Presentation explains the context of Tendering in the built environment and its importance in promoting economy of buildings and to select right type of construction agenct

1.  TENDERING
Ar Jit Kumar Gupta
Chandigarh

2.  Tender- an offer in writing made by one party- contractor
 - to another- owner to
 -- supply
 - construct
 --remove/ repair
 - provide a service
 --in construction/ execution of a building
 - within a stipulated time
 - under conditions specified in the tender
 -- Tender must be in writing
 - must be in a proper form
 -- signed by persons duly authorized
 -state has liberty to invite tenders from one class of
contractors to exclusion of others

3.  Objectives--Give wide publicity
 Obtain competitive bidding
 Get quality work at competitive rates
 Provide equal opportunity to large number of contractors
 Have wider choice for owner
 Obtaining value for money by owner
 Essentials of Tender Notice– NIT--must contain:
 --Brief description of work
 --Estimated cost, EMD- Earnest money deposit;
 --Cost of Tender,
 Time of completion, eligibility of contractor;
 -- Last date of obtaining tender
 -- Place and period of issue of tender
 -- date , time and place of tender
 -Date, time and place of opening tenders
 -Supply of materials by tenderer
 - Cancellation of tender/contract in case of non-commencement of
work in time

4.  --Availability of clear site
 --Availability of adequate funds
 -Material procurement
 - Finalized and working drawings
 --list of pre-qualified contractors
 - Statutory clearances from competent authorities
 --basic infrastructure at site
 -- access to site during inspection
 -- special bye-laws to be followed , if any at site

5.  i. Notice inviting tender in detail
 ii. General conditions of contract-
 - security deposit;
 --Bonus/ fine clauses
 - stages of payment
 -- final bill
 -- completion certificate
 -- material supply- owner/contractor
 -- advances
 - escalation, variations
 -- defective work
 - defect liability period
 -- arbitration
 - other conditions
 - EMD
 -Specific conditions in specialized work

6.  Iii. Schedule of Quantities
 Iv. Tender Drawings
 V. Specifications in detail
 Vi Form of Agreement
 Vii Formats and statements- safety code; labour
regulations; bank guarantee etc
 Ix Detailed architectural, structural and service
drawings
 X Network Chart
 Two Cover Bidding system– done post qualification-
Technical bid/ price or financial bid
 Pre- bid conference– for specialized works- to explain
details to perspective bidders – before the date
specified for bidding- become part of contract

7.  Receipt and opening of tender;
 - at a specified place and time- as notified in tender
 --Committee constituted to check all details including-
 --Number of tenderers.
 -- EMD;
 -Bank Guarantee;
 --signatures
 --documents etc
 -- recording them in a register
 - signed by all bidders/representatives and members of
the committee

8.  Evaluation of tender;
 Checking discrepancies between /in rates and
quantities
 -- arithmetic calculations
 - figures in words and numbers
 -- market value analysis
 -- overhead amounts
 - justified amount of each bidder
 -

9.  Issues during bidding process;
 - Lack of essential documents
 --late receipt of tender
 --bidder signatures
 --discrepancies in rates/amount
 -Non- submission of EMD
 --Withdrawal of bid before opening
 -- Withdrawal of bid before validity period
 -- depositing security amount
 --signing formal agreement
 -- No relaxation of eligibility criteria
 --no change in scope of work after receipts of bids
 --formation of cartel
 --poor response necessitating re-tendering

10.  --Contract awarded ;
 -lowest financial bidder
 -can be rejected if
 --rates appear to be high
 -if based on false information
 -- change in scope of work
 -cartel formation
 -- In private sector- negotiation is possible to further
rationalise the rates

11.  Work order given to-
 -Given to selected contractor/bidder
 -within validity period
 -before issue- clear site
 -- statutory approvals in place
 --funds available
 --work order issued in writing and contains;
 --tendered amount
 --all relevant correspondence
 - negotiation details if any
 - letter with particular conditions defined in tender
document

12.  Commencement of Work –
 --handing over of site to contractor
 - making available mobilisation advance-- in large
projects
 - materials issued- if specified in the contract
 --resource mobilisation
 --bank guarantee
 -- drawings
 -
 -

13.  - Releasing clear site
 --Timely release of funds
 -making available drawings
 -Non-interference
 --providing licenses where required
 -- making available materials
 --settle about escalations
 --taking over of site after completion
 -- settlement of final bill
 --release of security deposit
 --timely payment to contractor—payment of final bill
as per contract conditions
 --
 -

14.  - after receiving work order
 -- take possession of the site
 --setting up a site office
 -- mobilise money and machinery and labour
 -- Engage quality and experienced labour
 -- site management
 -- providing quality work
 -- avoid all wastage
 -- follow specification provided
 - completion of project within the given time schedule
 - follow the drawings issued by the architect
 --de-mobilitsaion of work after completion
 --handing over the project to owner
 --rectification of defects with liability period
 -- identification of sub-contractors and vendors
 --no misuse/abuse of site during progress of work
 -- Maintaining all site records
 -- Take all safety measures
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