BIDDING-TENDER-CONTRACT TENDERING PROCEDURE – AWARD OF TENDERS ESSENTIAL ELEMENTS OF CONTRACTS Types of contracts MEASUREMENT BOOK Security deposit CONTRACT DOCUMENT Earnest money deposit (EMD) Qualification of contractors IMPORTANT CLAUSES IN CONSTRUCTION CONTRACTS

1. BIDDING-TENDER-CONTRACT
VISHNU VIJAYAN
HOD-Department Of Civil Engineering
Baselios Mathews II College Of Engineering
Sasthamcotta, Kollam,Kerala,INDIA
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2. BIDDING
It is process of submitting a proposal
(tender) to undertake, or manage the
undertaking of a construction project.
The process starts with a cost estimate
from blueprints
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3. TENDERS
Tender means an invitation to offer for
an item/items or work.
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4. TENDERS
• To invite bids for a project, or to accept a
formal offer such as a takeover bid. Tender
usually refers to the process whereby
governments and financial institutions invite
bids for large projects that must be submitted
within a finite deadline.
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5. Types of tender
• Open Tender:
• Open tender is an arrangement where an advertisement in
local newspapers or trade journals invites contractors to apply
for tender documents
• Limited or Closed Tender /Selective Tender:
• In Limited Tenders, only pre-qualified or known bidders are
allowed to participate.
• Limited Tenders are not advertised in newspapers, as a result other bidder generally do not
come to know that such tender is floated. The Lowest Bidder or L1 generally wins the
contract.
• Single Tender:
• Single Tendering means sending the Tender to one particular
party.
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6. CONTD..
• Negotiated Tender:
• Under Negotiated Tender method normally one contractor is
approached and such tender mainly used for specialist work such as lift
system or airport project at big level, in such case there are limited
number of contractor who do such work in the market. It is based on
one-to-one discussion with contractors to negotiated the terms of
contract.
• Item Rate Tenders:
• In this type of Tenders the contractors are required to quote the rates
for each item mentioned in the price bid. The quantity to be executed
is given in the price bid.
• Percentage Rate Tenders:
• In this type of Tenders a detailed estimate of the quantity of work to
be carried out along with the estimate rates is given in the price bid
form.
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7. TENDERING PROCEDURE – AWARD OF
TENDERS
• Whenever a government agency or firm wants
certain works to be done ,services to be rendered
or any purchases to be made, they float tender in
order to get the work done at competitive prices .
• The person who quotes the lowest price agreeing
to the terms and conditions imposed on him , will
have to sign an agreement stating that he will
perform the said work as per requirement of the
owner/client
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8. TENDER NOTICE
• Whenever an agency or firm wants to float tender.
• Its should be need publicity
• Following information should carry in tender notice:
• Name of the department calling for tender
• Time of work and location
• Designation of the officer inviting tenders
• Last date and time of receipt of tenders
• Period of availability of tender forms
• Cost of tender document
• Time of completion and type of contract
• Earnest money deposit to be paid
• Date ,time and place of opening tenders
• Designation of the officer opening the tenders3/25/2020 VISHNU VIJAYAN BMCE

9. TENDER DOCUMENT
• A tender document is a document that
explains about a project and its requirements
to the intending bidders.
• A tender document typically contains a notice
inviting tenders, instruction to bidders, the
conditions, form of submission, and bill of
quantities.
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10. Earnest money deposit(EMD)
• While submitting the tender, contractor will
have to deposit an amount is about 2% of the
estimated contract value of the project. This
amount is called
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11. Security deposit
• Once the tender of contractor is accepted by
the client, the contractor to deposit about
10 % of the tender amount with the client.
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12. Tendering stage
• Call for tender
• Issue tender form
• Evaluate tender
• Award contract
• Occupy successful contractors
• Sign contract document
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13. CONTRACTS
• A contract is an agreement
having a lawful object entered
into voluntarily by two or
more parties, each of whom
intends to create one or more
legal obligations between
them.
• The elements of a contract
are "offer" and "acceptance"
by "competent persons3/25/2020 VISHNU VIJAYAN BMCE

14. ESSENTIAL ELEMENTS OF CONTRACTS
• Offer and acceptance: In order to create a valid contract, there must be a 'lawful offer'
by one party and ‘lawful acceptance' of the same by the other party.
• Competent Parties: For an agreement to be a contract there must be two or more
competent parties. In order to be considered competent, a part must have a certain
legal standing.
• Consideration: There must be a lawful and valuable consideration given by both Parties.
A consideration often called "Something for something." A consideration must, be
possible one.
• Proper Subject Matter: For the subject matter of a contract to be proper, the first
Requirement is that it was be clearly defined as to the rights and obligations of each
party. Second, the purpose of the contract must not violate the law.
• Agreement: For valid contract, there must be a mutual agreement. An agreement is
considered to have been reached when an offer made by one party is accepted by the
second party. Both parties must wish and intend their bargain to be Enforceable by law.
• Proper Form: The terms of a contract must be written so that both parties are very sure
of what their rights and responsibilities are.
• Consent of the Parties: The agreement must be free from Misrepresentation, Duress
Undue influence, etc.
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15. Qualification of contractors
• Contractor are selected by the owners through any one of these
process after conducting negotiation where required
• Public tenders
• Pre qualification
• Limited tenders
• Nomination
• SOME ESSENTIAL QUALIFICATION ARE :
• HE should be financially sound
• He should have sufficient knowledge to read the drawings
• He should be well versed with procedure
• He have Good reputation and experience
• He Should have ability to handle labour and materials properly
• He Should be capable of arranging men and materials as per
requirements
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16. CONTRACT DOCUMENT
• Before the work is given out on contract an agreement or bond is prepared. The
following
• documents shall be attached to the contract agreement or bond which should be duly
• endorsed and sealed. Each page shall bear the signature of the contractor and the
accepting
• authority and all corrections shall be similarly initialled
• TITLE PAGE
• Title page having the name of work, contract bond number, etc.
• INDEX PAGE
• Index page having the contents of the agreement with page references.
• TENDER NOTICE
• Tender notice giving brief descriptions of the work, estimated cost of work, date and
• time of the tender, amount of earnest money and security money, time of completion,
• etc. Earnest money, usually 2% of the estimated cost, is deposited along with tender.
• TENDER TORUS
• Tender torus giving the bill of quantities, contractor’s rates, and total cost of works,
• and time for completion, progress of works, security money, penalty clause, etc.
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17. • BILL OF QUANTITIES OR SCHEDULE OF QUANTITIES
• Bill Of Quantities Or Schedule Of Quantities giving
quantities and rates of each item of work and cost of
each item of work and the total cost of the whole work.
• SCHEDULE OF ISSUE OF MATERIALS
• Schedule of issue of materials giving list of materials to
be issued to the contractor with rates and place of issue.
• GENERAL SPECIFICATIONS
• General specification specifying the class and type of
works in general.
• SPECIFICATIONS DETAILED
• Specification details of each item of work, and of each
material to be used in the work.
• DRAWINGS
• complete set of drawings including plans, elevations,
sections, detailed drawing, etc.and site plan, all fully
dimensioned.3/25/2020 VISHNU VIJAYAN BMCE

18. IMPORTANT CLAUSES IN CONSTRUCTION
CONTRACTS
• Definition of the terms used:
• Security deposit:
• Delay in completion:
• Payment to contractor:
• Addition and alternations:
• Execution of work:
• Defects and improper work:
• Subletting :
• Arbitration:
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19. Types of contracts
• Types of contracts
• Lump sum
• Cost plus fixed fee contract
• Unit price contract or item rate
• Negotiated contract
• Design build
• Turn key contract
• Build own transfer contract
• Etc.............
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20. Types of contracts
• A construction contract is the warranty that the
executed job will receive the specific amount of
compensation or how the compensation will be
distributed.
• LUMP SUM
• The contractor agrees to build a project with a
specific scope for a fixed price. A lump-sum
contract is suitable if the scope and schedule of
the project are sufficiently defined to allow the
contractor to fully estimate project costs.
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21. • UNIT PRICE
• This kind of contract is based on estimated
quantities of items included in the project and
their unit prices. The final price of the project is
dependent on the quantities needed to carry out
the work. In general, this contract is only suitable
for projects in which the scope is reasonably well
established, and the different types of items (but
not their numbers) can be accurately identified in
the contract documents.
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22. • COST PLUS
• Cost plus is a contract agreement wherein the
purchaser agrees to pay the cost of the work,
including all trade contractor work, labor,
materials, and equipment, plus an amount for
contractor overhead and profit. These types of
contracts are favored where the scope of work is
indeterminate or highly uncertain, and the kinds
of labor, material, and equipment needed are
also uncertain.
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23. MEASUREMENT BOOK
• The measurements of all works and supplies are
recorded in the Measurement Book
• Form No. 23 and payment of all works and supplies are
made on the basis of measurement recorded.
• Its very important account record.
• It recorded by the executive or Assistant Engineers or
sectional officer,(overseers) to whom measurement
books have been issued for the purpose.
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