Tendering

Processes –
an Overview
Presenting By,
 INTRODUCTION TO TENDERS

• DEFINITION
• Tendering is a competitive procurement process that is used to select a main
contractor or supplier for a construction project to execute and deliver the project
within a stipulated time.

• Importance of Tender in Procurement.

• It allows for fair and open competition.
• It allows suppliers to submit proposals that reflect their best price and quality options
 TYPES OF TENDERS

Single-stage E Tendering
Limited
Open Tender vs Two-stage and Online
Tender
tendering Procurement.
 OPEN TENDER

• The system of invitation of tenders by public advertisements

in the most open public manner
• Wide publicity may be given to the call of tenders by
• Notice in Respective authority offices and websites
• Notice in all other Govt offices and websites
• Advertisement in News Papers – Local/national/international
according to the importance of the project.
 LIMITED TENDER
• Where for reasons, which should be in the public interest, it is
considered not practicable or advantageous to call for open tenders,
limited tenders may be invited with approval of the competent authority.
The reasons for inviting Limited tenders from firm/contractors should be
kept on record while approaching finance for concurrence.
• Tenders are invited from the parties in approved list.
• The minimum number of contractors to be borne on the approved list
should not be less than 10 .
• Limitedtenders may be invited from all the contractors borne on the
approved list and not restricted to 10 numbers of contractors.
• The tender notices should be sent by registered post or under certificate
of posting or handed over to the parties concerned and their clear
acknowledgement obtained.
 SINGLE STAGE VS TWO STAGE TENDERING

• SINGLE STAGE • TWO STAGE

• Project details and • Initial bid – based on project
requirements are provided in information
one-go.
• Final bid – after more detailed
• Contractors submit the final information provided from the
bid. shortlisted contractors.
E-TENDERING AND ONLINE PROCUREMENT

• Tendering / procurement through online portals.

• Reduces paper work, manual tasks, and administrative burden.
• Enable wider pool of contractors to participate- increased
competition
• More transparent by providing a clear record.
• Faster Processes and standardized templates
 TENDERING
AUTHORITIES
KERALA STATE GOVERNMENT
PORTALS
• Kerala State e-Procurement portal
• Kerala Public Works Department e-Tendering
Portal
• Kerala Water Authority
• KSEB
INDIA CENTRAL GOVERNMENT
PORTALS
• Government e-Market place (GeM)
• Central Public Procurement Portal (CPPP)
• Railway e-Procurement Portal
• Defence e-Procurement portal
• Public Sector Undertaking (PSU) e-
Procurement Portal
 TENDERING PROCESS……

Pre- Tender
Tender Pre-Bid
activities (market Document
advertisement and conferences and
research, feasibility Preparation
Distribution. site visit.
studies, etc.)

Bid Evaluation and Financial

Bid Submission and Awarding of
Technical Evaluation and
Opening Contract
Assessment Negotiation
 NOTICE INVITING TENDER
(i) Name and place of work
(ii) Approximate cost/Reserve price of work
(iii)Amount of earnest money and the form in which it can be deposited.
(iv)Period of completion/ Duration of contract.
(v) Place and time where tender documents can be seen.
(vi) Place and time where tender documents can be obtained/ website address.
(vii)Date and time up to which tender documents will be sold/ can be
downloaded.
(viii)The amount, if any, to be paid for such documents.
(ix) The place where the date on which and the time when tender are to be
submitted and are to be opened.
(x)Any other information relevant in tender notice.
 TENDER DOCUMENTS
• The tender documents consist of: -
(i) Instructions to tenderers and conditions of tenders,
(ii) Regulations for tenders & contracts, GCC & standard specifications.
(iii)Special conditions of contract, if any.
(iv)Special specification, if any.
(v)Tender schedule.
(vi)The form of agreement, which the successful tenders, is required to execute
• Two packet systems :
• Proforma for technical bid
• Proforma for finacial bid
• Approximate quantities/value item wise/ Reserve price should always be indicated in
the tender papers while calling for the tender for works.
• Cost of tender form fixed on basis of value of contract
 EARNEST MONEY DEPOSIT
• EMD or Earnest Money Deposit is a monetary deposit that is
made by bidders while participating in govt tenders. It is a
security deposit that ensures the bidders' commitment to the
contract, and it also establishes their financial capability. EMD
is a mandatory requirement for most govt tenders in India.
• The earnest money deposited by successful tenderer will be
retained by the respective Authority as part of the security
deposit for due and faith fulfilment of the contract. The earnest
money of the unsuccessful tenderers will be refunded as
expeditiously as possible
 EVALUATION CRITERIA

Technical Criteria Financial Criteria Evaluation methods

and weightage
Qualification Cost & Budget
Experience Financial Turnover
capabilities Joint Venture
 AWARDING OF CONTRACT
• With whom to enter into Contract.
• Cost/Earnings
• Quality of Work
• Conditions of agreement
• General Conditions
• Special Conditions
 CONDITIONS OF CONTRACT contd…

Every contract shall be so framed as to place beyond all

reasonable doubt all the matters upon which parties
intend to agree, and the matters to be agreed upon
shall include in detail, the following:
• What the contractor is to do; when, where, and to whose
satisfaction it is to be done.
• What the Authority is to do; and on what terms.
• What payment is to be made; To whom it is to be made;
Periodicity and process.
 CONDITIONS OF CONTRACT
• The responsibility of the contractor in respect of adequate supervision,
care of government property and the protection of public interests and
those of his staff and workman.
• The terms at which variations and modifications, if any, are to be
permitted; the authority competent to order and to assess them, and
the occasion and basis of such assessment.
• Force- majure & Arbitration Clauses
• The measures to be adopted in the event of breach of the contract by
either party.
• The method of settling disputes
 TENDERING LAWS AND REGULATIONS IN
INDIA

The Public procurement policy.

The Right to Information Act.

The Competition Act.

 CORRUPTION AND BIDDER QUALIFICATION STREAMLINING THE
TRANSPARENCY CONCERNS AND FAIR COMPETITION TENDERING PROCESS

CHALLENGES AND BEST PRACTISES

CASE STUDIES