 TENDERING
Ar Jit Kumar Gupta
Chandigarh
 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
 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
 --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
 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
 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
 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
 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
 -
 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
 --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
 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
 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
 -
 -
 - 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
 --
 -
 - 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
 --
 --
 -

Tendering presenation

  • 1.
     TENDERING Ar JitKumar Gupta Chandigarh
  • 2.
     Tender- anoffer 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 widepublicity  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 ofclear 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. Noticeinviting 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. Scheduleof 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 andopening 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 oftender;  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 duringbidding 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 ordergiven 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 ofWork –  --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.
     - Releasingclear 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.
     - afterreceiving 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  --  --  -