Construction Tender Process

What is the Tender?

It is defined as definite offer by one partyusually written, it may be oral or partly written
and partly oral is called tender. The work to be
undertaken may be:
1.Construction work of project
2.Supply of Required material
3.Supply of machinery and equipment
4.Transport of materials

The Invitation to Tender

When the Tender is invited?
Attempt to check offers from interested
Builders
Risk associated with tender
Tenders are invited in any one of the following
ways:
1.Negotiated tender
2.Limited competition or selective tendering
3.Open competition

Negotiated Tender:
In this method, the price to be paid is
negotiated with single contractor.
Drawback.
Cost of work will be higher and owner may
prefer to run this risk.
Higher cost may be offset by quality and early
completion.

 Procedure can applied and proceeded further

as per owner advantage under following
circumstances:
1.Confidence about chosen firm
2.Scope and experience of the firm
3.Capable firm
Procedure is as follows:
1.Engineers invites firm to tender.
2.Engineer and contractor prepares priced bills
of the quantities.
3.The priced bills are then handed over to the
other party for consideration.