Tender | Necessity | Types of tender

 

        What is tender ?

 

Tender – It is an offer from the owner to the contractor to execute some work with specified cost and specified time. It is in written form.

• ·       It is published in the form of tender notice in newspaper, Notice board, Television, Website etc.

• ·      Tendering is a process of choosing the best and cheapest company or contractor to execute the work.  

        Necessity of tender:-

 

• ·         The main purpose of tendering is to provide best and cheapest contractor.
• ·        Tenders are invited because, once the owner has decided to proceed with the work and when all the work and when all the preliminaries are completed.
• ·         Legally, this 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.
• ·         But the owner does not, by the initiation of tenders, incur any liability for any expense to which a builder may put himself in preparing and submitting his tender. It this way, tenders are invited by owners to execute the work.

        Types of tender

 

While the competent authority sanctions the estimate, the Engineer in Charge will decide the method of execution of work. Generally civil works are executed on contract by inviting tenders. In case of emergency works, directly affecting the production in the mines or involving safety of workmen, the requirement of open tenderscan be relaxed and the work can be executed by direct negotiations with the working contractors or by call of limited tenders amongst the working contractors with the approval of the competent authority as per the delegation of powers. In case of limited tenders the tender notice is sent to limited number of contractors who are considered suitable for undertaking the job within the time frame set for the urgent works.

                                    Press publication for emergency works can be avoided to save time. However, such notices should be sent to all working contractors of the Area and also displayed in the notice boards to encourage competitions.

 

        Following are the types of inviting tenders:-

 

                        (a)    Open tender

                        (b)    Limited / Selected tender

                        (c)    Local tender

                        (d)    Global tender

                        (e)    Turnkey tender

 

        (a) Open Tenders

 

Open tenders - This is the normal procedure of tendering where tenders are invited from the parties under a given set of terms & conditions regarding their past experiences, present status, credibility and other conditions which may be included in the NIT for a particular tender depending upon the requirement of work. In this types of tendering procedure employed by both government & private sector. In open tender, any contractor can enter into the competition. It is not suitable for complicated and specialized jobs. The minimum time for submission of tender and extent of publicity to be given are elaborated in the relevant clauses.

 

        Advantages of open tender–

 

(a) Tender is open for all contractors. So, provide a opportunities to new contractor that is unknown contractor is enter into the market.

 

(b) In open tender contractor large no. of applicant so we choose the best & cheaper contractor.

 

 

        Disadvantages of open tenders –

 

(a) Difficulty for choose the best contractor from large number of applicant.

 

(b) Chances of disputes or mistakes found out at latter stage are difficult to be adjust

 

(c) Time & cost taken to review the large number of applicant.

 

(d) Not suitable for complicated & specialized jobs.

 

 

        (b) Limited Tenders

 

Limited tenders - In case the work is of a specialized nature / very urgent nature with strict time frame and stringent quality requirements, limited tenders amongst registered/ working contractors or known agencies of repute may be invited with the competent approval, depending upon the value of work as per delegation of power.

 

In the limiting / selective tender the shortlisted of contractor is prepared and then they are invited, for the contractor with the necessary experience are given by the previous tender. It is also leads to early successful completion of work.

 

        Advantages of limiting / selective tender –

 

(a) Cost of tendering is reduced.

 

(b) Time consuming for the tender evaluation is reduced.

 

(c) Provide limited competition, selection of contractor is easy.

 

(d) Allow only capable and experience contractor.

 

 

        Disadvantages of limiting / selective tender –

 

(a) Miss opportunities for new contractor.

 

(b) Chances of best and cheap contractor are not select.

 

 

        (c) Local Tenders

 

Local tenders – For the project work which are fulfilled in our local areas, local tender are invited by the authority from the various firms. For local tender project or work not necessary specified design or job.

            Tender notice is circulated through reputed local news-papers and tenders are invited for any types of work in our country & local.

 

 

        (d) Global Tenders

 

Global tenders – For big and specialised job or design and manufacturing project is lies in the global tender. Global tender generally invited for special project from reputed contractor or company.

                        Global tender is the modificationover the open tender. This tender is open to any body from any part of the world. It is published in internationally circulated news papers and any firm or contractor around the world can fill the tender. Such tenders are invited for very large projects such as airport, highway, tunnels etc.

 

 

        (e) Turnkey tenders

 

Turnkey tenders - The intention behind turnkey contracts is to entrust the contractors with the entire responsibility of detailed investigation, planning, design, construction and commissioning of the total project. Turnkey offers are generally invited for specialized nature of work like design and construction of Water Treatment Plants, Sewage Treatment Plants, CHPs, Washeries, Workshops, Underground and Overhead Water Tanks etc. A panel of contractors for such specialized nature of works will be maintained by the companies. These panels will be kept updated by advertisement at regular intervals as outlined hereinafter.

                        Whenever a proposition emerges, these empanelled agencies should be asked to propose their own technology and system for meeting the duty conditions required. The proposals prepared by the empanelled agencies, after due survey and investigation and appraisal of site conditions, shall be critically examined in their entirety and from those proposals, a firm scope of work for the selected/ frozen system would be developed and thrown for bidding amongst the empanelled/ pre-qualified agencies. The entire responsibility from concept to commissioning including design, construction, procurements, and installations shall be left to the contractor with least interference but with strong supervision from the company. The department before the execution of works approves the designs, drawings and specifications.