Professional Documents
Culture Documents
Contracting
by
Prof. Prahlad R
Tendering Procedure
The first step that leads to the formation of a building or
engineering contract is an invitation to tender
An invitation to tender, is not an offer
It is an attempt to ascertain if an offer can be received from
interested builders to execute the work within the estimated
limit of time and finance
The owner or employer of the project sends it to known
agencies by post in the case of private works or
by public advertisement if the employer happens to be a
public body
The advertisement is called Tender Notice
• The party to whom the notice is addressed sends its response
to the employer which response is called: 'tender‘
• In engineering practice the word tender usually means an offer by a
contractor to undertake a work in return for a sum of money
Revocation of Tender Notification
• Generally, the owner may at any moment revoke the invitation to
tender without making himself responsible for any expenses
incurred by persons in connection with the preparation of the
tenders
Requirements to be Fulfilled before Inviting
Tenders
[Guidelines contained in Section 17 of the C.P.W.D.Manual]
1. Sanctions obtained for detailed estimate showing the quantities,
rates and amount of various items of work and also the
specifications to be adopted in respect of each item
2. In the case of urgent works, with no time to prepare a detailed
estimate, rough quantities and rates for the main items covering
the major part of the cost should be worked out to facilitate
comparison
3. Splitting of work for the purpose of inviting tenders is to be
discouraged
4. Before tenders are invited the following tender
documents should be ready
a) Notice inviting tenders in appropriate form briefly known as
NIT
b) Standard form of tender to be used along with general and
special conditions, if any
c) The Schedule of Quantities of works
d) A complete set of drawings referred to in the schedule of
quantities
e) A complete set of specifications of the work to be done
Advance Publicity
• Notice should be published sufficiently in advance to enable the
intending tenders to carefully work out their tenders.
• A time less than one month is seldom sufficient
Contents of the Tender Notice
The contents of the notice should be so drafted as to attract the
attention of the tenderers for whom it is intended
Also to caution others who may not be interested or not qualified to
tender
In addition it should give sufficient information about the proposed
work to avoid no of queries
In the case of public works and government contracts, the notice
should incorporate the words "On behalf of the President of India"
or "On behalf of the Governor of the State“
Other information to be given may include:
Qualifications of tenderers
Name of the work, its situation ,brief description and estimated cost of
the project
Earnest money deposit and its mode of payment
Security deposit that may have to be paid at the time of signing the
agreement and mode of the payment such as cash, F.D.R or Bank
Guarantee
Time limit for completion of the work
From whom and at what cost, if any blank tender forms may be
three covers
• Any special rules regarding treatment of taxes, duties and other fiscal
• Procedure for inspecting any special documents not issued with the
Conditions have been prepared to provide a fair sharing of responsibility and risk
between employer and contractor and contain many independent clauses. Generally
all contracts irrespective of the nature of work, supplier type and other factors
Whereas the Special Conditions of Contract or SCC relates to the specific contract.
It includes terms and conditions which are applicable for that particular contract
only and will vary for each contract depending upon the nature of work, supplier
supplementary information