Types of Tender and their Process

9 Sem Project

1. ARCHITECTUREPROFESSIONALPRACTICE
TYPEOfTENDER
AND
THEIRPROCESS
161110212 –Arpan Tripathi
161110223 -Vikas Prajapati

2. TENDER :-
•Tenderingistheprocessofmakinganoffer,bidor
proposal,orexpressinginterestinresponsetoan
invitationorrequestfortender.Organizationswill
seekotherbusinessestorespondtoaparticularneed,
suchasthesupplyofgoodsandservices,andwill
selectanofferortenderthatmeetstheirneedsand
providesthebestvalueformoney.
•Itisaninvitationfromtheownertothecontractorto
executesomeworkatspecifiedcostinspecifiedtime.
•Itispublishedintheformoftendernoticeinnews
papers,noticeboards,onlineetc.accordingtothecost
ofworks.

3. CLASSIFICATION OF TENDERS: -
1.OPENTENDER:-
─AnoraltalkorwrittendocumentbetweentheEngineerandtheContractor
─forcertainsmalljob
─Sometimesitisadvertised.
2.SEALEDTENDER:-
–Invitedforimportantorhugeprojects
–widepublicityisgiven
–alwayswrittendocumentsaremade.
3.LIMITEDTENDER—
─Onlyaselectedno.ofcontractorsareinvitedtoquotetheirrates
4.SINGLETENDER—
─Invitationisgiventoonlyonefirmtorenderaservicebyquotingtheir
rates.
─Ifthequotedratesarehigh,itwillbenegotiatedpriortotheagreementof
thecontract.
5.RATECONTRACT—
─usuallyadoptedforsupplyofmaterials,machine,tools&plant,etc.
(itemstothestore).
─Itspecifiesthesupplyatafixedrateduringtheperiodofcontract.
─Quantityisnotmentioned

4. INFORMATION TO BE GIVEN IN A
TENDER NOTICE :-
1.Nameofthedepartmentinvitingtender
2.Nameofworkandlocation
3.Designationofofficerinvitingtender
4.Lastdateandtimeofreceiptoftender
5.Periodofavailabilityoftenderdocument
6.Costoftenderdocument
7.Timeofcompletionandtypeofcontract
8.EarnestMoneyDeposittobepaid
9.Date,timeandplaceofopeningthetender
10.Designationoftheofficeropeningthetender
PROCEDURE FOR INVITING TENDER: -
1.Preparation of tender documents
2. Issue of notice inviting tender or tender call notice
3. Submission and opening of tenders and their scrutiny
4. Acceptance of tender and award of contract

5. • SHORT TENDER NOTICE
•Whenworkistobecompletedveryquicklyornocontractor
preferstoacceptthework(THETENDERISFLOATED),
•thenanoticewithshortdurationisagainpublishedbythe
client.Suchatendernoticeiscalled“SHORTTENDER
NOTICE”.
•Thetermsandconditionsremainthesameasthatforordinary
tendernotice.
• QUOTATION
•Forsmalljobs,theowner/engineergivesanoffertothe
contractorforquotingratesforworksandsuppliesrequired.
•NoEMDisrequiredwithaquotation.
• EARNEST MONEY DEPOSIT
•Itistheamountofmoneytobedepositedalongwiththetender
documenttothedepartmentbythecontractorsquotingatender.
Thismoneyisaguaranteeagainsttherefusalofanycontractorto
takeuptheworkaftertheacceptanceofhistender.Incaseof
refusal,thisamountisforfeited.
•EMDofcontractorswhosetendersarenotacceptedwillbe
refunded.
•1%-2%oftheestimatedcostofworkistheEarnestMoney
Deposit.

10. TENDER
PROCESS

11. •WHENTHETENDEROFACONTRACTOR IS
ACCEPTED,ANAGREEMENT BETWEEN THE
CONTRACTOR ANDTHEOWNERTAKESPLACE
ANDTHEDOCUMENTS DEFININGTHERIGHTS
ANDOBLIGATIONSOFTHEOWNERANDTHE
CONTRACTOR ARE ATTACHED TOTHE
AGREEMENT BONDANDTHISISCALLEDA
CONTRACTDOCUMENT.
The contract document must contain
1.Title page –name of work, name of owner
2.2. Index page –contents of the agreement
3.Tender notice –brief description of work, estimated cost
of work, date and time of receiving tender
4.Tender form –the bill of quantities,
5.Schedule of issue of materials
6.Drawings –complete set of drawings
7.Specifications –(a) General Specifications which specify
the class and type of work
8.Conditions of contract , Rates of each item of work
inclusive of materials, labour, transport,
CONTRACT DOCUMENTS

12. CLASSIFICATIONOFCONTRACTS
1.Lump-sumtender
2.Costplusafixedpercentagetender
3.Costplusafixedfeetender
4.Targettender
5.Percentageratetender(B1system)
6.Itemratetender(B2system)
7.Labortender
8.Jointventuretender
9.Turn-keytender
10.Indirectlump-sumcontractforflatsor
bungalows
11.BOTsystem

13. LUMP-SUM TENDER
2. COST PLUS A FIXED PERCENTAGE TENDER
Underthissystem,thecontractorfurnisheslabourandmaterialsand
completestheworkfortheactualtotalcostplusanagreedpercentageof
itastheprofitofthecontractor.Thespeedandqualityofworkis
maintainedinthissystembutthereisalwaystremendouswastageof
materialsasthecontractor’saimistoincreasethetotalcostofthework.
Thissystemisadoptedonlyinthecaseofemergencyworks.
In this system, the contractor undertakes the execution of a
specific work for a definite lump-sum amount within a
specified time period. On completion of the work, it is
checked as per drawings and specifications and if approved
the amount is paid to the contractor. The quantities of
various items is not measured. For the construction of
sculptures and decorative works this system is adopted.

14. 3. COST PLUS A FIXED FEE TENDER
Inthissystemafixedfeeisgivenascontractor’sprofitirrespective
ofthetotalcostofwork.Thisistocontrolthetendencyofthe
contractortoincreasethecostoftheprojectunnecessarily.Smaller
thecompletiontimemoreistheprofitandhencethecontractors
hurrytocompletetheworkandthequalityofworkmanshipisnot
maintained.Thissystemisnotgenerallyused.
4. TARGET TENDER
Thecontractorispaidafixedfeeonaprimecostbasisforthe
workperformedunderthecontractandinadditionhereceivesa
percentageonthesavingseffectedagainsteitheraprioragreed
estimatedtotalcostoratargetvaluearrivedwithoutchangingthe
specification.

15. 7. LABOUR TENDER
Thisisthemostcommonlyadoptedsystemfortheconstructionofprivateindividualbuildings
insmallcities.Thecontractorarrangesallnecessarylabour,tools&plantandequipments
required.ThematerialsaresuppliedbytheownerandheappointsanEngineertosupervisethe
worktomaintainthequalityandeconomyinconstruction.
8. JOINT VENTURE TENDER
Incaseofhugeimportantprojectstheconstructionworkscanbecategorisedintodifferentparts
andeachpartcanbegiventoaspecialisedcontractorinthatfield.Thismethodimprovesthe
qualityofworkandtheprojectcanbecompletedwithinashortperiodoftime.
6. ITEM RATE TENDER (B2 SYSTEM)
Herethecontractorgetsthepaymentdependingontherateatwhichhehasquoted
everyitemofthework.Itwasratherdifficulttoscrutinisethetenderssubmittedby
variousbiddersandthesystemwashencemodifiedandnowthedepartmentquotes
theitemsofworkalongwiththeirquantitiesandthebiddersarerequiredtoquotethe
percentagesatwhichhecanexecutethevariousitems.
5. PERCENTAGE RATE TENDER (B1 SYSTEM)
Inthissystemthecontractorsarerequiredtoquotesinglepercentageeitherhigheror
loweratwhichhewantstoexecutethejob.Herescrutinyofthetendersbecomeeasier
andascementandsteelisusuallysuppliedbythedepartmentchancesof
manipulationisless.Thisthemostcommonlyadoptedsystemofcontractinthe
differentdepartmentsofourstate.

16. 9.TURN-KEY TENDER
Inthissystemalltheworksrelatedtoaprojectincluding
designing,planning,executionetc.aretobedonebythe
contractor.Oncetheprojectiscompleteditishanded
overtotheowner.Theownerhastocompletethe
transactionworksandoccupythestructurebysimply
turningthekey,ie.openingthedoor.
10.INDIRECT LUMP-SUM TENDER FOR FLATS
OR BUNGALOWS.
Inthissystemtherateofconstructionpersq.m.ofplinth
areaisjointlyfixedbythecontractorandownerwhich
includescontractor’sprofitalso.Oncethisagreementis
madethecontractorstartstheworkandreceives
paymentatregularintervalsduringthedifferentstages
ofwork.

17. 11. BOT SYSTEM
Buildoperateandtransferisanewsysteminwhichthelandisacquiredbythe
Govt.andthecontractorisaskedtobuildthestructureandthenoperateituntilhe
collectsthemoneyhehadspentfortheconstruction,asfeesfromtheusers.Once
theconstructioncostisrecovered,thestructureishandedovertotheowner.

18. SECURITY DEPOSIT
•Securitydepositistheamountthecontractorhasto
depositwiththeownerbeforeawardingawork,after
histenderisaccepted.Thisamountstogenerally5%to
10%ofestimatedcostoftheprojectandisinclusiveof
theEMDalreadydepositedbythecontractoralongwith
thetender.Thiswillberefundedtotheafterthecomp
Thecontractorhastofulfillallthetermsandconditions
laiddowninthecontractandmaintainqualityand
speedsatisfactorily.Ifhefailstodoso,apartorwhole
oftheSDisforfeitedbythedepartment.Ifthereisany
faultintheconstructionandthecontractorrefusesto
demolishandreconstructthenthedepartmentwillcarry
outthatworkusingtheSD.

19. Thank you！