Tenders and its types

1. TENDERS AND ITS
TYPES

2. TENDER DEFINITION
Tender is :
⊳ an offer to contractor to do the work for a certain amount of money
⊳ incorporate time and other conditions required
⊳ to carry out the contract requirements
⊳ main reason is to complete a project
⊳ The tender which is submitted by the contractor is generally based
on a bill of quantities & specifications of the statement of work.
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3. DIFFERENCE BETWEEN TENDER
AND CONTRACT
TENDER:
The term tender formally
means an invitation to
trade under the terms of
offer.
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CONTRACT:
A contract is the term
used when 2 parties have
reached agreement.

4. TENDER NOTICE
 The Tender Notice is a brief description of
the job being tendered
 to be published in Newspapers and on the
Internet.
 The Internet is a very cost effective way of
publishing the tenders.
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5. TYPES OF TENDERS
 Open Tenders
 Close Tenders/ Selective Tenders
 Negotiated Tenders
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6. “
⊳ Bidding process that is open to all qualified bidders
⊳ Tender usually published in the newspaper and internet
⊳ chosen on the basis of price and quality.
⊳ This is most effective way of obtaining many competitive rates.
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OPEN TENDERS

7. ⊳ Any contractor can tender their work
⊳ No favoritism occurred
⊳ maximum competition
⊳ No commitment (terikat) to tender, all tender received will
be genuine.
OPEN TENDERS- ADVANTAGES
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8. ⊳ Client must bear expensive cost of tendering (reproducing
number of dwgs, bq etc.
⊳ The wrong contractor may be chosen because they are
from unknown background
⊳ Time consuming
OPEN TENDERS- DISADVANTAGES
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9. “
⊳ It is when only selected persons or organizations are invited to submit a
tender for a property. This is in contrast with an open tender which is made
available to anyone.
⊳ The term can also be used with regard to residential property where offers
will not be accepted before the tender date.
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CLOSE TENDERS

10. “
⊳Under this method, only one contractor is approached. Normally because
the skills of the contractor are such that the architect and other members of
the design team needed from the contractor’s specialist knowledge use for
design stage.
⊳Following the completion of the design, the contractor will price the bill of
quantities and then enter into a negotiation with the quantity surveyor.
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NEGOTIATED TENDERS

11. COMPARISION OF
TENDERS
 Open Tenders
 Close Tenders/ Selective Tenders
 Negotiated Tenders
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12. COMPARISION
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PUBLIC TENDERS SELECTED TENDERS NEGOTIATED TENDERS
Suitable for public and private works.
Compulsory for public works.
Suitable for private works only Suitable or private works of small
magnitude or for repair works, and
works of additions and alterations to an
existing building.
Keen competition and formation of a
syndicate.
Competition on a small scale, chances
of formation of a syndicate are there.
No competition and no syndicate.
Financial integrity and organization for
the work are not known.
Financial integrity, etc. are known. Financial integrity, etc. are known.
More chances of disputes. Less changes of disputes. Less changes of disputes.

13. COMPARISION
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PUBLIC TENDERS SELECTED TENDERS NEGOTIATED TENDERS
Opens field for new brilliant
contractors.
New contractors do not step in the field. Negotiated with one or maximum of
two known contractors, and hence
question of new contractors not arise.
Not very well suited for specialized and
skilled works.
Suitable for specialized and skilled
works.
Suitable for specialized and skilled
works but cost will be very high.
Cost of work will be low Cost of work will be on a higher side. Cost will be very high
Tenders must be opened in presence of
the tenderers who choose to remain
present.
Not essential that the tenders should be
opened in the presence of the tenderers.
No opening of the tenders in this case
Mistakes committed by the contractors
cannot be checked in advance.
Mistakes of the contractors can be
checked and rectified prior to
acceptance.
Mistakes of the contractors can be
checked and rectified.

14. TENDER PROCESS
4 Tender Process
Tender Notice
Tender Invitation
Tender Selection
Tender Award

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You can find me at: simranaggarwal456@gmail.com
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By: SIMRAN AGGARWAL
MURP-II (2020-22)
Pt. Lakhmi Chand State University of Performing and Visual Arts