The document discusses various aspects of the tendering process for construction projects such as defining what a tender is, different methods for inviting tenders, the procedure for inviting and opening tenders, criteria for accepting tenders, requirements for earnest money and security deposits, details to be included in tender notices, and special tender types like global and BOT tenders. It also covers topics like unbalanced tenders, pre-qualification of contractors, and the 3-bid system for submitting tender documents.

1. TenderS
(QSCT)
Slides Share
By
Dr. C. L. Jejurkar
Professor
Civil Engineering Department
Ph.D. (Civil Engg- Hydrology)
[LMIAH, LMISTE,LMIE,LMISRMTT, LMIWWA]
SRES’s Sanjivani College of Engineering
Kopargaon-423603

2. TENDER
• Tender is an open offer from the owner in writing
to the contractor for execution of work, or supply
of material mentioning of terms and conditions in
it is called as tender.

3. METHODS OF INVITING TENDERS
• Open or Public Tenders:
By giving advertisement in leading local news
papers also in English news paper.
• Private or Limited or Selected Tenders:
Tenders are invited from the limited number of
reputed contractors for the execution of work for
fair competition.
• Negotiated or Single Tender:
For work of specified nature tenders are invited
from single well known reputed contractor.

4. PROCEDURE OF INVITING TENDERS
Preparation of detailed tender documents
Issue of notice inviting tenders
Opening of tenders
Scrutiny of tenders
Acceptance of tender and award of contract
Rejection of Tenders

5. OPENING OF TENDERS
• All the public tenders received on or before due date must
be opened on the date and time mentioned in the tender
notice. The tenders should be opened in the following
sequence:
• 1. The outer envelope number 4 should be opened first.
• 2. Subsequently envelope number 1 which contains earnest
money deposit shall be opened, and if earnest money
deposited is not as prescribed then the tender is to be
returned unopened to the concerned contractor.
• 3 after this the envelope number 2 containing covering
letter, solvency and income tax certificate etc. is opened.
• 4. lastly the envelope number 3 containing the tender form
is to be opened on the same or any other date.

6. Acceptance of Tender
After investigation of the comparative statement the
lowest tender shall be accepted as a rule by the
comptenant authority. If for any reason economical or
otherwise the lowest tender is not accepted, reason
should be recorded confidentially and reference shall
be made for higher authority.

7. Earnest Money Deposit
Earnest money is the amount which is required to be
deposited at the time of submitting the tender.
• It is deposited as 1 to 2 % of the estimated cost.
• Earnest money is the assurance of the contractor.
• This amount is kept with owner till the contract is
allotted to some contractor.
• The earnest money is refunded to unsuccessful
contractor.

8. Security Deposit
• Security deposit is the amount the contractor has
to deposit with the owner whose tender is
accepted.
• It is security against terms and conditions laid
down in contract specifying quality of work and
time of completion.
• Security deposit is accepted as 5 to 10 % of
estimated cost.

9. Tender Notice
• Public tenders should invariably be invited by giving an advertisement
in the regional and English language in the local newspapers having
large coverage in the prescribed form of the department. The Tender
Notice includes the following information.
• Name of the agency/department inviting tenders
• Name of the work and it’s exact location
• Estimated cost of the work and contractors eligible to fill bids
• time of completion of work
• The place and time where the contract documents can be seen and
blank tender forms can be obtained
• The cost of the blank tender form
• Specifications of work and conditions of contracts
• Place, Date and Time of accepting tenders
• Place, Date and Time of opening tenders
• Earnest money to be deposited
• Security deposit to be paid

10. Global Tenders
• For a big and specialized job or design and
manufacturers, Global tenders are sometimes
invited by the authority concerned throughout the
Globe to get the competitive offer from various
specialized firm or reputed contractors throughout
the World.
• Global Tender Notice is written on the headings of
tender notice.

11. BOT Tenders
• It is the type of arrangement in which the private
sector builds an infrastructure project, operates and
eventually transfers ownership of the project to the
Government.
Various forms of BOT tenders:
• B.O.- Build Operate
• B.O.T.- Build Operate and Transfer
• B.O.O.- Build, Own and Operate
• B.O.O.T.- Build, Own, Operate and Transfer
• B.T.- Build and Transfer
• B.T.O.- Build, Transfer, Operate
• B.L.T.- Build, Lease, Transfer.

12. Unbalanced Tender
• If the rates quoted by the contractor are not varying
much from those mentioned in the schedule of
rates prepared by the Public Works Department
(PWD), the tender is called as Balanced tender.
• However the rates quoted by the contractor for
initial items are higher and for the subsequent
items are lower at the same time the sum total
remains practically unaffected the tender is said to
be Unbalanced tender.

13. Pre Qualification of Contractor
• Under this procedure instead of calling tenders
publically, only selected tenders are invited who
are considered suitable for that work.
• The intending bidders are supplied with
prequalification documents.
• The information provided by them in prescribed
format includes:
1. Past experience
2. Technical personnel engaged
3. Equipment to be used
4. Major works in hand
5. Financial capacity

14. 3-Bid System
• The tenderers while submitting the tender is directed to
submit the document in three sealed envelopes called as
3-Bid System.
• Envelope -1: the first envelope clearly marked Envelope
No.-1 shall contain following documents.
• Registration details of contractor
• Information regarding pre-qualification
• Details of joint venture (if any).
• A Cheque/ DD for the amount of earnest money
• Income tax clearance certificates
• List of machinery
• Details of technical personnel contd…

15. • Envelope -2: Envelope No.-2 shall contain following-
• Covering letter for the offer
• Special features – that contractor feel
• Assumptions/Conditions/Deviations if any
• Envelope -3: Envelope No.-3 shall contain following-
• Main tender documents