Tender Work

What is a tender ?

Tender is a formal written offer to carry out work, supply goods, or buy land, shares, or another asset for a stated fixed price and in other words formally offer for carrying out work, supplying goods etc.

Why is a tender required ?

Civil Engineer has to carry out many works and need supply of goods & services. For this either have to engage or built own establishment or get it outsourced.

For competitive rates inviting tenders from open market is very advisable or you may yourself go to market and negotiate for the prices. 

Thus, in this way, through the tendering process, the construction  of buildings, structures, laying of pipes and other civil engineering projects are carried out.

Procedure of tendering in civil engineering works:

In Civil Engineering works the tendering procedure starts with the invitation in which the contract manager of the client through its team or consultant make a bill of quantities and invite from various different contracts to make a bid and then contract manager will evaluate the bids and then select the most appropriate one. 

  • Invitation to Tender

  • Opening of Tenders

  • Final Award of Contract​

There are three types of Tendering Methods :
  • Open Tendering Methods in Construction:

Under open tendering the employer advertises his proposed project, and permits as many contractors as are interested to apply for tender documents. Sometimes he calls for a deposit from applicants, the deposit being returned ‘on receipt of a bona fide tender’.

  • Selective Tendering Methods in Construction:

Invitation to Tender

Under selective tendering the employer advertises his project and invites contractors to apply to be placed on a selected list of contractors who will be invited to bid for the project. Contractors applying are given a list of information they should supply about themselves in order to ‘pre-qualify’.

The advantage to the employer is that he can select only those contractors, who have adequate experience, are financially sound, and have the resources and skills to do the work.

  • Negotiated Tendering Methods in Construction:

Negotiated tenders are obtained by the employer inviting a contractor of his choice to submit prices for a project. Usually this is for specialized work or when particular equipment is needed as an extension of existing works, or for further work following a previous contract.

Opening of Tender

Tenders submitted by different parties should be under sealed covers and generally these are opened in the presence of tenderers or their representatives.

  • List of tenders is prepared.

  • Tenders without any earnest money shall not be considered.

  • A comparative statement of the tenders is prepared. Rates being given by the tenderers for non-scheduled items and premium being given for scheduled items.

  • Careful scrutiny of the tenders is done. The tenders must be properly signed and any corrections been made.

  • The minimum cost tender must be accepted provided it's near the estimated cost of the work to prevent use of sub-standard materials and prevent violations of any specifications of the contract and thereby prevent any litigation.

Final Award of Contract

Before the final award of the contract:

  • The tender's requisite experience is checked.

  • Present position on other works must be considered for availability of labor and resources.

  • Reputation of the contractor is checked.

  • Nature of work of the contractor should be observed. 

When the tender is accepted, the contractor is asked to enter into a legal agreement with the client and to provide a further sum of 5 to 10% of the total cost of the work inclusive of earnest termed as security deposit.

Before the work is issued, the security deposit must be submitted or he must sign a performance bond so that the amount be deducted from his work bills.