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TYPES OF TENDERS & TENDERING PROCESS

* Why Tenders?

Tenders are open invitation to buy or sell goods, services and contracts. Those who are interested in supplying what has been advertised can respond to a Tender and submit their best competitive offer. The best competitive offer (Lowest Bidder)is generally selected and the contract is awarded to L1 Bidder.

* Who Floats a Tender?

A buyer which can be either Government or Large Private Company/Bodies, can float a Tender as and when they need to buy Goods, hire services or give contract or Sale anything through Auction. Generally tenders are floated by Government as it is a mandatory requirement for them.

* Types of Tenders?

There are various types of tenders; some of them are listed below:

  • Open Tender

  • Limited Tender

  • Negotiated tendering process

  • Corrigendum

Open Tender: -

In Open Tender anyone can participate. The participant has to ensure that they fulfill the minimum pre-qualification criteria specified in the tender document to qualify. If they do not meet the pre qualification criteria, their bid will be rejected & they will loose the document fees they have paid. It is necessary that open Tender is advertised in newspaper. The Lowest Bidder generally wins the contract.

Limited Tender: -

In Limited Tenders, only pre qualified or empanelled bidders are allowed to participate. As Limited Tenders are not advertised in newspapers, other bidder generally do not come to know that such tender is floated. The Lowest Bidder or L1 generally wins the contract.

Negotiated Tender: -

In this process the client holds a one-to-one discussion with contractors to negotiate the terms of contract, as such tenders are mainly used for specialized projects like lift systems, airport etc at a larger level which includes a limited number of contractors who engage in these kind of projects from the industry.

Corrigendum: -

If any change/correction is to be made in Tender Notice or Tender Document, the same can be made by issuance of corrigendum. Please note that Corrigendum can only be issued before the due date & time of tender submission expires. Against a Tender, any number of corrigendum can be issued.

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