TENDER & BIDDING PROCEDURE

1. “Comparative Study of E-tendering &
Traditional tendering in Construction
Projects”
By
Tejas C. Patil.
Under Guidance of
Prof. Ashish P. Waghmare.
Dr. D. Y. Patil School of Engineering and Technology, Lohgaon Pune
18th April 2016

2. Introduction
Literature Survey
Objectives
Recommendation, Outcomes from study & Learning's
Data Collection
Reason of late E-tendering process
Methodology
Theoretical Background
Conclusion
Outline of Presentation
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3. Introduction
3
• To select a contractor for a construction project.
• To test the current market, especially where existing
contracts are of a long-term nature.
• To comply with regulations pertaining free and open
competition.
• Prequalification And Bid Evaluation Process
General information about the contractors,
Criteria for the prequalification process stage, and
Criteria for bid evaluation

4. Objective of Present Work
Time & cost saving process.
To reduce the inventory cost of tender process.
The security process.
Detail study & analysis of E-tendering process.
To free from corruption.
To differentiate private & public tender process.
The use all type of tender process by using E-tender process
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5. LITERATURE
REVIEW
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6. Wei-Chih Wang (2004) Using the electronic-based bidding approach allows
the procedure to more efficiently. The bidder-based practice of the procedure
allows the bidder to realize the benefits of accurate estimates, and eventually
enhances their estimation skills.
Laryea (2011) Studied the The difficulty in achieving a programmable bidding
process was caused by changes to the tender documents, poor quality of
tender documents, personnel problems and reliance on the supply chain for
information to price the bid.
Dr. Keith Hampton (2011) From the research The concept of partnering has
been practiced by building construction industry professionals aiming to
eliminate conflicts in the building construction industry by removing traditional
barriers between the client and contracting firm.
Simon Kerridge (2000) In this research, Existing systems is not providing
a solid collaboration platform which can support the formation of a
virtual consortium.
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7. Brown D (2001) The security policies have to be drawn up with the
consideration of both the tendering business.The security mechanisms have to
be carefully integrated into the system to provide desirable security service for
the complex contract processes involved in an e-tendering system.
Geoff Tindsley (2008) The data obtained and analyzed indicated that ‘over-all
efficiencies’ were perceived to be the greatest benefit of e-tendering.The
research reflects an industry that is not yet sure whether to fully embrace new
technology.
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8. METHODOLOGY
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Overlook on the basic concept, Objective
Aims of study, and research of study
Steps in procurement public process
Difference between the public & private tender process.
Data Collection
Analysis of Result
Recommendations & Outcomes
IMP GR’s For E-tender Software’s Lists
Conclusion
Comparison of E-tender & traditional tender as per case studies

9. THEORETICAL
BACKGROUND
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• Definition
The process of preparing and submitting for acceptance a conforming
offer to carry out work for a price, thus converting the estimate to a bid For
its improved behavior under tensile loading it is usually reinforced with
steel.
• TYPES OF TENDERING
 Negotiated Tendering
 Selective Tendering
 Open Tendering

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• PRE-QUALIFICATION
 Financial assessment
 Technical assessment
 Other assessment
 Satisfaction assessment
• PRE-BID CONFERENCE
• INVITATION TO BID
 Publication in newspapers, which have a large circulation.
 Publication in journals of special interest.
 In international competitive bidding, bringing the invitations to the notice of
embassies of foreign countries.
 Letters to firms who have come to know of the likely purchase and have
made enquiries.

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• PRE-QUALIFICATION DOCUMENTATION
 Balance sheet of the company giving years i.e. two years balance
sheet.
 Brief resume of the company with the details of board of directors.
 Projects executed over the past five years with special mention of the
similar
 Projects, if any.
 List of equipment’s, the company owns and the proposal of equipment
planning for this particular project
 Manpower available in the organization
Name of the bankers and references

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• PREPARATION AND APPROVAL TO DRAFT BID DOCUMENTS
 There is no ambiguity, contradiction, or duplication in the nomenclature
of items, conditions of contract, specifications and drawings
 The specifications and drawings are capable of implementation at site
 The time stipulated to complete the job is adequate.
There is also a practice in some organizations for the official approving
the bid documents to affix his signature on every page of the bid
document as a token of approval and a certificate of approval

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• PRE BID MEETING
• BID SECURITY (EMD)
• SUBMISSION AND OPENING OF BIDS
• ACCEPTANCE OF BIDS
• POST-QUALIFICATION

15. STEPS IN PROCUREMENT PUBLIC PROCESS
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Preparation of Bid Documents
Approval of Bid Documents by Competent Authority
Invitation for Bids.
Issue of Bid documents to prospective bidders
Pre Bid Meeting and Issue of Minutes, Clarifications and Common Set of Deviations
Receipt of Bids
Scrutiny
Negotiations, where warranted
Acceptance of Bids
Public Invitation for Pre-qualification (where relevant).
Issue of Instructions and
Pre-qualification criteria.
Pre-Application Meeting & Issue
of Clarifications to Applicants.
Receipt of PQ
applications & scrutiny
Approval to PQ

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DATA COLLECTION

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1. DIFFERENCE OF PUBLIC AND PRIVATE TENDER PROCESS.
2. COMPARISON OF E-TENDER AND TRADITIONAL TENDER

18. DIFFERENCE OF PUBLIC AND PRIVATE TENDER
PROCESS
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Sr. No. Description Public Tender Process Private Tender Process
1 EMD Deposit Yes Yes
2 Envelope system Yes No
3 Evolution and comparison of bids No Yes
4 Performance Security After 24 months After 18 months
5 Bank guarantee No 5% of total contract price.
6 Form of contract agreement Yes Yes
7 Details of technical and administrative for work No Yes
8 Rejection of all tenders Yes Yes
9 Settlement of disputes No any provision Arbitrator appointed
10 Avoidance of delay No any provision Third Agency Appointed
11 Extension of complete projects Yes
No.
Work should be completed in
time.
12 Quality control Not check properly
Strictly check by company
engineers
13 Advance payment 5% of project cost
Depend upon contactor at the
interest of 12% p.a.

19. DIFFERENCE OF PUBLIC AND PRIVATE TENDER
PROCESS
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Sr. No. Description Public Tender Process Private Tender Process
14 Insurance Not provided Provided
15 Currencies All payment in Rupees All payment in Rupees
16 Penalty for delay
Depends upon the Engineer in charge. Depends upon the Engineer in charge.
But it penalty up to 500 to 2000 /- Rs. Per
day.
But it penalty up to 500 to 5000 /- Rs.
Per day.
17 Environmental protection No any provision
Strictly follows the environmental
rules
18
Wastage of material
Cement Nil Nil
Steel 10-12% 5%
19 Safety provision No Yes
20 Canteen Not available Available
21 Temporary electric supply Available Available
22 Housing for labours Not available Available
23 Explosive material Not permit to site Strictly prohibited
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Bonus to before complete the
work
No provision 2.5% of cost of project

20. DIFFERENCE OF PUBLIC AND PRIVATE TENDER
PROCESS
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Sr. No. Description Public Tender Process Private Tender Process
25 Complete the process 2-3 months and above 1months
26 Description of material Yes given Yes given
27 Fire prevention No provision
Strictly fire prevention material
available
28 Transport for labours Not provided
Its available for all engineers and
labours
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Manpower for complete
process
More required Less required
30 Buaracacy Possible in process Not possible
31 Transference to process Less More
32 Quality of work Less quality work done Accurate quality work done
33 Political interference It’s possible It’s not possible

21. COMPARISON OF E-TENDER AND TRADITIONAL
TENDER
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E- TENDER TRADITIONAL TENDER
EMD deposit online process EMD deposit at manually process
Comparative statement automatically generated Comparative statement done by manually.
At any time within specified period upload
document.
At not possible to upload document.
Document saves in soft copy and in safe in
position.
Document in hard copy and not possible to safe at
time.
Free from corruption and no chance to alter the
quoted the rates.
Not possible to free from corruption and should be
possible to changes quoted rates.
Paper work is minimum. Paper work is maximum.
No deduction of tax Deduct the tax
No need of D.D. and deposited to manually. D.D. and deposited to manually.
Its transferring process Its non-transfer process

22. COMPARISON OF E-TENDER AND TRADITIONAL
TENDER
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E- TENDER TRADITIONAL TENDER
Time saving process Time consuming process
Its speedy process. Its slow process.
No any interference of political persons. In this chance to interfere of political persons.
Non awarded persons the EMD will be transfer to
direct on his bank account.
In this process the EMD amount given after 2
months after opening of tender.
Tender not necessary to submit by hand Tender submit by hand and before time.
Privacy of rates and other important document is
possible.
In this no guaranty of privacy and to possible to lost
the documents.
Environmental friendly Paper Based
Anytime-Anywhere Restricted Mobility
Bidding possible on Holidays and after office
hours
No work in Holidays and after office hours
Automated and Accurate Prone to human errors
Foolproof Security Physical security
Lifelong storage on CD Wastage of space to store
One click access to bids Difficult to retrieve

23. REASONS OF LATE E-TENDER PROCESS
• In meeting all members don’t agree for contractor name.
• Funds not available in time.
• Election time.
• All contractors have not knowledge about the feeling the
online process of tender.
• In outside the one tender filling rate is, 3000/- per tender.
• If the contractor death.
• Website possible to crash.
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24. GRs FOR E-tenders
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 Gr For 50 lakhs –
 Gr For 10 lakhsResult-
 Gr For 3 lakhs no.1
 Gr. For 3 lakhs no.2

25. SOFTWARES CURRENTLY USED FOR
E-TENDERING PROCESS
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 Coupa Procurement by Coupa Software.
 E Bid e Xchange by e Bid Systems.
 Panacea by Panacea Software.
 Promena e-Sourcing by Promena e-Sourcing Solutions.
 Sourceit by sourceit.
 Bid Sync e Procurement by BidSync.
 Web Req by GT Management.
 Buyer Quest e Procurement by Buyer Quest.
 Procurement Software and e Invoicing by Xeeva.
 Basware Procurement by Basware.
 Ariba Spend Management Suite by Ariba.

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RECOMMENDATIONS
 E-tender should apply at cost one lakh.
 The appoint the third party for the observation.
 E-tender process will do the with the help of private companies for
security and efficient process.
 The use of the latest software's and technology for E-tender process
will be complete earlier and fast.
 For the less corruption in tender process the compulsory to all
departments to apply the E-tender process for the all type of tender

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OUTCOMES FROM STUDY
 In the traditional private tender process the process completed at
two months. The security this process is better than the government
process.
 In case study seen that the traditional process is long process.
 In the study found at the private E-tender process the completed the
fast and security.
 All the documents are scan are the save at one time only, and no
chance to lost.
 Time and cost are the most saving the both parties.
 The detail instruction of the tender process are available at online so
the waste of the paper are saving.

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LEARNINGS
 E-tender is efficiency than the traditional process.
 In this process bidder can submit their project at any time and any place.
 In the secure the important documents in soft copy then no chance for missing
documents or misuse.
 The saves time & cost of both the parties.
 In this process used the latest technology that cause the fast speed, less mistakes,
efficiency, & economically.
 It’s the totally eco-friendly process.
 The bidder can secure his identity, bid quote, digital signature etc.
 The bidder has login id & password. He can change password for safety.
 This process is totally free from the corruption & no interference of any person in office
staff.
 In the information saves in CD in lifelong with safely.
 No chance of political pressure to bidder and also office staff.

29. •Document save in soft copy and in safe in position, free from corruption and no
chance to alter the quoted the rates,
•Paper work reduced, bidding possible on Holidays and after office hours, automated
and accurate, Privacy of rates and other important document is possible
•E tender having 3 lakh amount which can be reduced up to 1 lakh
tender and bidding process used the technology they have the great change in
the process
Private tender process is more accurate, time and cost saving over the
traditional tender process
Conclusion
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Management Process Xiao Hong Huang Shandong Lumei Construction Cost
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p116-122.
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using neural networks. Construction Management and Economics, 28(1), 287-
299.
References

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32. List Of Publications
International Journal of Engineering Research and
Applications (IJERA ) 2014
• “Tender and Bidding in Construction Project”, ISSN 2248-
9622,Vol.4,Issue 12,December 2014.
International Journal of Innovative Science Engineering
and Technology (IJISET) 2016
• “Tender and Bidding Process in Construction Projects”, ISSN
2348-7968, Vol.3, Issue 3, March 2016.
CIVIL PGCON 2015
• “Tender and Bidding in Construction Projects, CIVIL PGCON
2016, Pune.
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