Tender

Overview by
Jatadhar Jha
 Tender

Q: Explain Tender and Tender process in detail:

Ans: Following are Tender Process:
(a) Tender and Tender Notice
• Name of the authority/Location.
• Nature of the work to be executed and its
location.
• Required material and spare parts with their
quantities.
• Specification
 Tender
• Date, time and place where and when the
Tender documents are available and where and
when it is to be submitted.
• Cost of the Tender form/Tender document.
• Estimated Amount/Bidding Amount.
• Earnest money(Bid bond)=2.5% of the estimated
amount.
• Date, Time and place where and when the
Tender will be opened.
 Tender
(b) Selection of successful bidder/candidate:
• Earnest money deposited by successful candidate is
retained and the earnest money
of unsuccessful candidates are returned back.
•The successful candidate has to deposit
another extra 2.5% of the bidding amount
before signing the contract. This type of
deposit is called security deposit or
performance bond.
 Contd.
This security deposit will be retained in the
owner’s account until the contractor successfully
executes the contract.
(c) Contract between owner and contractor:
• Both of the parties will do their contract as
per Terms and Conditions.
• The contractor will be paid as per Terms and
Conditions or he can ask for advance also.
 Contd
• The contractor will be given advance or paid
on daily basis for the completed work.
• If the contractor did not perform well as per
the contract or leave the work, part of the
security deposit or whole of it will be
forfeited.
 Purchasing Process
• Direct purchase
• Sealed Quotation and
• Tender
Direct purchase: Chief of the organization is
authorized to purchase directly up to 5 lakh
depending upon the turnover of the company.
Sealed Quotation: Up to the purchase of 10 lakh.
Tender: For the purchase of more than 10 lakh.
 Sealed Quotation

Production Deptt
Q C Deptt
Sealed
Maintenance Deptt Purchase Department
Quotation

Marketing Deptt
Inventory Deptt
Electrical Deptt
Preparation before inviting Tender
• Project Formulation
• B/C Ratio
• Feasibility study
• Detail Design and cost estimation
• Approval of cost estimation.
• Tender document preparation (which fulfill all
the requirements)
• Tender Invitation: After fulfilling all the
requirements listed above a Tender Notice is
Published.
 Pre Qualification
• After receiving the Tender Notice and before
submitting the bid, the contractor has to plan
as follows:
- Careful studies of Tender documents.
- Workout the quantities , types of items
and determine the availability of materials,
labors and equipments.
- Evaluating alternative methods of work
execution.
- Deciding the bidding amount.
- Summiting the Tender document.
 Post Qualification
After the contract is awarded, the contractor
should plan how to complete the job within
Specified time and as per Specification.