#Open tender

An open tender, also known as an open competitive bidding or open procurement,

is a procurement process in which a government agency, organization, or company
invites bids from a wide range of potential suppliers or contractors to compete for a
specific project, contract, or purchase of goods and services.

#Tender Procedure

The tender procedure, also known as the procurement process or bidding process,
outlines the series of steps and stages that an organization follows when soliciting bids
from potential suppliers or contractors for a specific project, service, or purchase. This
procedure ensures transparency, fairness, and efficiency in the selection of the best-suited
bidder. While the specific details may vary depending on the organization and the nature
of the procurement, here is a general outline of the tender procedure:

1. **Preparation and Planning:**

- Define the requirements: Clearly outline the goods, services, or project specifications
you need.
- Determine the evaluation criteria: Establish the factors that will be used to assess bids,
such as technical capability, price, quality, and experience.
- Develop tender documents: Prepare comprehensive documents that provide all the
necessary information for potential bidders to understand the project and requirements.

2. **Advertisement and Invitation:**

- Publicize the tender: Advertise the tender in appropriate channels to attract potential
bidders.
- Issue invitations: Send formal invitations to eligible bidders, along with the tender
documents.
3. **Clarifications and Queries:**
- Allow time for bidders to seek clarifications: Provide a period during which bidders
can ask questions or seek clarifications about the tender documents.

4. **Submission of Bids:**
- Bid preparation: Bidders prepare their bids, including technical proposals, pricing, and
any required documentation.
- Submission deadline: Bidders submit their bids before the specified deadline.

5. **Bid Opening:**
- Publicly open bids: Open the submitted bids in the presence of authorized
representatives from the bidders.
- Record the bids: Document all details of the bids, such as bid prices and technical
proposals.

6. **Bid Evaluation:**
- Evaluation panel: Constitute an evaluation panel or committee responsible for
reviewing and assessing the bids.
- Evaluation process: Evaluate bids based on the predetermined evaluation criteria.
- Shortlisting: Determine a shortlist of bidders who meet the evaluation criteria.

7. **Negotiations (if applicable):**

- Negotiations phase: Enter into negotiations with shortlisted bidders if the tender
process allows for negotiation.
- Finalize terms: Agree on final terms, conditions, and pricing.

8. **Contract Award:**
- Select the winning bid: Based on the evaluation and negotiation (if applicable), select
the best-suited bidder.
 - Award notification: Notify the winning bidder and any unsuccessful bidders of the
decision.

9. **Contract Signing:**
- Sign the contract: Formalize the agreement between the organization and the winning
bidder through contract signing.

10. **Implementation and Monitoring:**

- Execute the project or deliver the goods/services as per the terms of the contract.
- Monitor progress and compliance: Ensure that the contract terms are being followed.

11. **Completion and Closure:**

- Complete the project or fulfill the contract's requirements.
- Conduct final evaluations and assessments.

The tender procedure may involve additional steps or variations based on specific
requirements, legal regulations, and the complexity of the procurement. The overarching
goal is to ensure fairness, transparency, and effective supplier selection.

#Tender Security

Tender security, also known as bid security or bid bond, is a financial assurance provided
by bidders (potential suppliers or contractors) as part of the tendering process. It is
designed to demonstrate the bidder's commitment to participating in the tender process
seriously and to ensure that the bidder will fulfill its obligations if awarded the contract.
Tender security is a way to mitigate risks associated with non-serious or unqualified
bidders.
Here's how tender security typically works:

1. **Submission of Security:**
As part of their bid submission, bidders are required to provide a tender security in the
form of a guarantee, bond, or cash deposit. This security is usually a small percentage of
the total bid amount.

2. **Purpose of Tender Security:**

The main purposes of tender security include:
- Ensuring serious participation: Bidders must invest a certain amount as security,
which discourages non-serious or unqualified bidders from participating.
- Preventing withdrawal of bids: Once a bidder submits a bid with security, they are less
likely to withdraw their bid before the evaluation process is complete.
- Covering costs of re-tendering: If the winning bidder fails to sign the contract, the
tender security can be used to cover the costs of re-tendering or any losses incurred by the
procuring organization.

3. **Release of Tender Security:**

- Successful bidder: If the bidder is awarded the contract, the tender security is usually
returned or released back to the bidder after they sign the contract and fulfill any other
required conditions.
- Unsuccessful bidders: For bidders who were not awarded the contract, their tender
security is typically returned or released once the successful bidder has signed the
contract and met all conditions.

4. **Forfeiture of Tender Security:**

- Non-compliance: If the winning bidder does not sign the contract or fulfill the
required conditions, the procuring organization may have the right to forfeit the tender
security.
 - Withdrawal of bid: If a bidder withdraws their bid after the submission deadline or
engages in any activities that breach the terms of the tender, their security might be
forfeited.

Tender security helps ensure that the tendering process is fair, competitive, and reliable. It
provides confidence to the procuring organization that the bidders are genuinely
interested and capable of fulfilling their obligations. The specific requirements and
procedures related to tender security may vary depending on the organization, industry,
and country.

#Performance Security

Performance security, also known as a performance bond, is a financial guarantee

provided by a contractor to the client or project owner as a commitment to fulfill the
terms and conditions of a contract. It serves as a form of insurance against potential
defaults, delays, or non-compliance by the contractor during the execution of the project.
Performance security helps ensure that the project is completed as per the agreed-upon
specifications and within the specified timeframe.

Key points about performance security include:

1. **Purpose:**
- Guarantee of performance: The purpose of performance security is to provide
assurance to the client that the contractor will complete the project according to the terms
and conditions outlined in the contract.
- Risk mitigation: It helps mitigate the client's risk in case the contractor fails to meet
their obligations, such as delays, poor quality work, or other breaches of contract.

2. **Submission of Performance Security:**

- Typically submitted after contract award: Once a contractor is awarded a contract,
they are required to submit a performance security to the client. The security amount is
usually a percentage of the contract value.
3. **Types of Performance Security:**
- Performance bond: A financial instrument issued by a bank or a bonding company that
guarantees the contractor's performance.
- Cash deposit: Contractors may deposit a specified amount of cash with the client as
security.
- Guarantee from a financial institution: Contractors might provide a letter of guarantee
from a bank or financial institution.

4. **Release of Performance Security:**

- Successful completion: Once the contractor successfully completes the project and
fulfills all contractual obligations, the performance security is released back to the
contractor.
- Breach or default: If the contractor fails to meet the terms of the contract or defaults,
the client may use the performance security to cover costs associated with completing the
project or rectifying the issues.

5. **Advantages:**
- Client protection: Performance security protects the client against financial losses
caused by contractor defaults.
- Contractor credibility: Providing performance security demonstrates the contractor's
commitment to delivering quality work on time.

6. **Challenges:**
- Financial implications: Contractors need to tie up funds or secure credit lines to
provide the performance security.
- Administrative process: Obtaining and submitting the required performance security
documents can involve administrative work.
#Justyfy the statement " Every contract is agreed but every agreement is not
contract.

The statement "Every contract is agreed but every agreement is not a contract" reflects
the distinction between a mere agreement and a legally binding contract. While the terms
"agreement" and "contract" are often used interchangeably, they have distinct legal
implications and requirements.

1. **Agreement:**
An agreement refers to a mutual understanding or arrangement between parties, where
they reach a consensus on certain terms or actions. This can be a simple verbal agreement
or a written understanding. However, not all agreements carry legal enforceability. An
agreement becomes legally binding and recognized as a contract when it fulfills specific
criteria.

2. **Contract:**
A contract is a legally enforceable agreement that is supported by consideration
(something of value exchanged between parties) and meets other legal requirements such
as offer, acceptance, intention to create legal relations, and certainty of terms. Contracts
are not only a matter of personal understanding or good faith; they are backed by the
legal system and can be enforced in court if one party fails to fulfill their obligations.

In summary, the statement means that every contract is the result of an agreement
between parties, where they have reached a consensus on the terms. However, not every
agreement qualifies as a contract because some agreements might lack the necessary legal
elements to be considered binding and enforceable by law. To be a contract, an agreement
must meet specific legal criteria to ensure that both parties' rights and obligations are
protected and enforceable in a court of law.
Total Lateness (TL): Total Lateness is a concept used in scheduling and managing
projects, especially in situations where tasks have specific due dates. It represents the
total amount of time by which tasks within a project are late in relation to their respective
due dates. In other words, it measures the cumulative delay of tasks beyond their
expected completion times.
Mathematically, Total Lateness (TL) can be calculated for each task as:
TL = Finish Time of Task - Due Date of Task

Total Earliness (TE): Total Earliness is a concept used in scheduling and managing
projects, particularly in situations where tasks are completed before their respective due
dates. It measures the total amount of time by which tasks within a project are completed
earlier than their expected due dates. In essence, it represents the cumulative time saved
by completing tasks ahead of schedule.
Mathematically, Total Earliness (TE) can be calculated for each task as:
TE = Due Date of Task - Finish Time of Task