Unti Iii

REGULATION
2017
YEAR: 2021
AR 17-93
PROFESSIONAL PRACTICE AND
ETHICS
SEMSETER IX
[UNIT III - TENDER & CONTRACT]

TOPICS:
TENDER
• Definition ------------------------------------------------------------------------------------- 02
• Types of Tenders ---------------------------------------------------------------------------- 02
• Open and closed tenders -------------------------------------------------------------------- 04
• Conditions of tender ------------------------------------------------------------------------ 05
• Tender Notice -------------------------------------------------------------------------------- 05
• Tender documents --------------------------------------------------------------------------- 06
• Concept of EMD ---------------------------------------------------------------------------- 08
• Submission of tender ----------------------------------------------------------------------- 09
• Tender scrutiny ------------------------------------------------------------------------------ 11
• Tender analysis ------------------------------------------------------------------------------ 11
• Recommendations --------------------------------------------------------------------------- 11
• Work order ----------------------------------------------------------------------------------- 12
• E-tendering (advantages, procedure, conditions)---------------------------------------- 13
CONTRACT
• Definition ------------------------------------------------------------------------------------- 21
• Contract agreement - its necessity -------------------------------------------------------- 22
• Contents (Articles of Agreement, Terms and Conditions, Bills of Quantities and
specifications, Appendix) ------------------------------------------------------------------ 34
• Certification of Contractors Bills at various stages ------------------------------------- 39
▪ New trends in project formulation and different types of execution (BOT, DBOT,
BOLT, BOO, etc.),Execution of projects &The process (Expression of interest,
Request for Proposal, Mode of Evaluation of Bids, Award of work) ---------------- 40
SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

S.V.RAVINDRA Page 1
TENDER
• DEFINITION
A tender or a quotation is a written offer to execute a work or to supply materials required for
construction of a facility within a stipulated time under specified conditions of tender or
quotation.
• TYPES OF TENDERS
Tenders based on economic classification
1. Tenders based on measurement (item rate and % rate)
2. Lump sum tenders
3. Cost plus fee tenders
4. Turkey tenders
5. Tenders based on Build-own-operate and transfer (BOOT) concept.
6. Tenders based on Labour component and miscellaneous material required for the
work.
i. Fixed price tenders without provision for escalation: Major risk is borne by the
contractor.
ii. Fixed price tenders with provision for escalation: Risk is limited to difference
in market rates and factors considered in escalation formulate.
1. Tenders based on measurement (item rate and % rate)
The tender form contains all items of work included in bill of quantities excluding lump sum
items and those items which are to be executed through another agency.
In percentage rate tender, the owner gives both rates and quantities and amount. The
contractor quotes % above or at par or % below the estimated cost.
2. Lump sum tenders
The tenderer quotes a fixed price. However, if the quote is varied, it involves contractual
problems and methodology to arrive at the rates for addition, deletion and alterations would
be necessary and it is to be built in tender document. This is to facilitate release of interim
and final payments.
3. Cost plus fee tenders
Cost + (%) of total cost with or without a ceiling cost + fixed fee cost + incentive fee.

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4. Tenders based on turnkey concept
In this type of contract, contractors take full responsibilities for design, construction,
commissioning of the facilities. The scope of the facility is described in detail and a fixed
lump sum price is paid to the contractor. There may or may not be a provision for escalation.
5. Tenders based on Build-Own-Operate and Transfer (BOOT) concept
It is adopted for infrastructure projects (highways, bridges, airports, water supply and
sewerage projects) Private sector is involved in these projects. Entrepreneur invests, builds,
and maintains these structures, they collect toll for a specific period based on approved tariff.
6. Tenders based on Design-Finance-Build-Own-Operate and Transfer (DFBOOT)
concept
This is a concession contract. The project is based on the granting of a concession by the
principal, usually a Government to a entrepreneur (known as the concessionaire) who is
responsible for design, financing, construction, operating and maintaining the facility over a
period of concession before finally transferring the facilities at no cost to the principal, as a
fully operational facility.
7. Tenders based on Labour component and miscellaneous materials required for
the work
In this type of work, the owner supplies all the materials and the contractor provides only the
labour component, i.e. not just labour but also all the required plant and machinery required
for construction work. They are responsible for execution of work. Payments are restricted to
labour charges only. This contract at the tender stage can be based on square meter/ cubic
meter of construction for the entire work. It is suitable for all types of buildings, extensions
work, alterations and repair of works.
8. Other works
Piece work or days’ work cannot be strictly classified as tenders. They do not involve
security deposit or penalty as they do not involve large sums of money.
9. Day work
This method of execution is good for small works, which cannot be measured or valued, (e.g.
decorative work, craftwork, artwork, etc.). Payment for the same shall be decided on the basis
of site observation plus reasonable profit.

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10. Tender based on demolition concept
This involves demolition of existing building/ buildings completely and removal of the debris
safely away from the site. The contractor takes away all the materials that are salvages from
building and pays for the same to the owner.
11. Consultancy Assignments
Consultancy is a service and not like a work’s contract. They should be selected based on
professional capacity desired, experience in similar type of tasks, by advertising and then
shortlisting for two cover system.
12. Proof consultant
Least cost option may not result in service expected. Engineering is a vast field and with
many branches and they may not have in-house professionals. They have to be engaged for a
specific period and circumstances. Proof consultancy system has no controversial provisions.
Both main and proof consultants should work in cohesion without their internal ego
problems.
Selection of consultants is based on the following criteria:
▪ Quality based selection (QBS): adopted for highly specialized assignments such as
urban master plan and finance sector reforms.
▪ Best expert advice: feasibility and structural engineering in major projects, such as
dams, etc.
▪ Assignments which can substantially be carried out in different ways (management
advice and sector in policy study).
▪ Selection under Fixed Budget (FBS): For simple and precisely defined assignments.
▪ Selection on Basis of Least Cost (LCS): Adopted for standard or routine nature
assignments (audits, design of non-complex engineering works).
▪ Selection Based on Consultant’s Qualification (CQS): For small assignments where
evaluation of competitive proposal is not justified.
Consultants are paid on-job basis, lump sum basis, on0call basis, or on-retainer ship basis
depending on situation and considering several factors.
• OPEN AND CLOSED TENDERS
An open tendering process is an invitation to tender by public advertisement. There are no
restrictions placed on who can submit a tender, however, suppliers are required to submit all
required information and are evaluated against the stated selection criteria.

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When a tender is called out by private invitation, the tenders are opened in the presence of the
owner or committee members. The contractors are generally not asked to remain present at
the time of opening of tenders. This is known as ‘closed tender’.
• CONDITIONS OF TENDER
1. Rebate on prompt payment of
(a) Running bills
(b) Final bills and
(c) Settlement of rates for variation items
2. Validity of tenders
3. Secured advance on perishable items
4. Secured advance up to 90% in lieu of 75%
5. Steel to be measured and paid as per actual weight
6. Water and construction power to be made available
7. Composite work to be awarded and not in parts
8. Stipulated materials to be supplied in time or permitted to procure from market with
prior approval and cost difference to be reimbursed
• TENDER NOTICE
NIT (notice inviting tenders) should be clear, brief, and should contain the following salient
points. Besides the brief press notice, a detailed NIT is appended to contract documents.
1. Brief description of the work on perusal of items and contractor will decide whether
to tender for this work or not by considering type of work, value of work, time given
for completion, location, present work load on hand.
2. Estimated cost put to tender
3. Period completion of work
4. Earnest money deposit
5. Cost of tender documents
6. Eligibility criteria for tendering
7. Production of documents for obtaining blank tender documents
8. Last date for issue of blank tender forms
9. Place and period of issues of tender documents
10. Last date for receipt of tenders and places of submission
11. Date, time, and place of opening of tenders
12. Validity of tenders ….. days

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13. Client reserves a right to reject or to accept any tender without assigning any reason
• TENDER DOCUMENTS
1. Brief press Notice and NIT in elaborate form
2. General Conditions of Contract (GCC)
Brief summary of GCC adopted by Central PWD is given below:
Clause 1 – Performance Guarantee
The contractor shall submit an irrevocable Performance Guarantee of … (5%) of the tendered
amount in addition to other deposits mentioned elsewhere in the contract for their proper
performance of the contract agreement valid up to stipulated date of completion + 60 days.
1. A Security Deposit
Deduction @ 5% gross of each running bills till the sum along with the sum already
deposited as EMD, will amount to security deposit of 5% of the tendered value of the work.
▪ Cl 7: Payment of interim bills: For work done exceeding Rs.20, 000 based on
certification.
▪ Cl 9: Payment of Final bill:
i. If the tendered value of the work is up to Rs.15 lakh 3 months.
ii. If the tendered value of the work exceeds Rs.15 lakh 6 months
▪ Cl 10: Materials to be supplied by Government: Stipulates the quantum, place of
issue, and the rates to be charged are given in relevant schedule of the contract
document.
▪ Cl 10 B: Payment of Advances:
i. Secured advance
ii. Mobilisation advance
iii. Plant & machinery and shuttering material advance
▪ Cl 10 C: Payment on Account of increase in prices/wages due to statutory orders.
▪ Cl 10 CA: Payment due to variation in prices of materials after receipt of tenders
▪ Cl CC: Payment due to increase/decrease in prices/wages (excluding material
covered under CL 10 CA after receipt of tender for works).
▪ Cl 12: Deviations/variations extent and pricing
▪ Cl 12.1: Additional cost
▪ Cl 12.2: Deviations, extra items and pricing

S.V.RAVINDRA Page 6
2. Extra Items
a. If the market rate for the substituted item so determined is more than the market rate
of the agreement item (to be substituted), the rate payable to the contractor for the
substituted item shall be the rate for the agreement item (to be substituted), so
increased to the extent of the difference between the market rates of substituted item
and the agreement item (to be substituted).
Substituted Items
b. If the market rate for the substituted item so determined is less than the market rate of
the agreement item (to be substituted), the rate payable to the contractor for the
substituted item shall be the rate for the agreement item (to be substituted) so
decreased to the extent of the difference between the market rates of substituted item
and the agreement item (to be substituted).
▪ Cl 13: Foreclosure of contract due to abandonment or reduction in scope of work.
▪ Cl 17: Contractor liable for damages, defects during maintenance period
▪ Cl 25: Settlement of disputes and Arbitrations
▪ Cl 45: Release of Security Deposit after labour clearance.
3. Special Conditions of Contract (SCC)
4. Pro-forma for Bill of Quantities (BOQ)
5. Tender Drawings (TD): To enable the contractor to understand the scope of work
6. Specifications: Specification embraces endless details. It should be as simple as
possible, be exact, and be capable of verification. It should be such that a number of
vendors and sub-contractors can meet it so as to have sufficient competition. Legally,
it forms an integral part of the construction contract. Specification shall mean the
technical specifications forming a part of the contract and such other schedules and
drawings as may be mutually agreed up on. Specifications are the most detailed
method of describing requirements. Specifications play an important role in the search
for the right quality and the right value. They also assist in resolving the design
conflicts which exist between engineering, manufacturing, marketing and
procurement.
Sub – Contractor: Contractor sub-lets part of the work for execution with prior
approval of owner. Contract conditions will be same as those applicable to main
contractor.

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Particular specifications: Besides general specifications particular specifications
stipulated for this work are to be compiled with (use of local materials, etc.)
7. Form of Agreement
8. Formats and Statements: Various formats and statements required for the contract
are appended. Some of them are listed below:
i. Safety code
ii. Model rules for the protection of health and sanitary arrangements
iii. Contractor’s labour regulations
iv. Pro-forma of registers
v. Sketch of cement go down
vi. Bank guarantee format
vii. Performance bond. As regards contents of tender document in private sector the
following items should be furnished by the owner:
viii. Press notice
ix. NIT in detail
x. Conditions of contract relating to:
a. Performance guarantee
b. Security deposit
c. Payment of running & final bill
d. Escalation clause
e. Method of payment for variation items
f. Dispute resolution clause
g. Validity of tenders
h. Payment of advances
i. Time limit for releasing Performance guarantee & Security deposit
j. Defect liability period
k. Any other stipulation relevant to this work
• CONCEPT OF EMD
- It is the amount of money to be deposited along with the tender document to the
department by the contractors quoting a tender. This money is a guarantee against the
refusal of any contractor to take up the work after the acceptance of their tender. In
case of refusal, this amount is forfeited.
- EMD of contractors whose tenders are not accepted will be refunded.

S.V.RAVINDRA Page 8
- 1% - 2% of the estimated cost of work is the Earnest Money Deposit.
• SUBMISSION OF TENDER
Construction bidding is the process of submitting a proposal (tender) to undertake, or

manage the undertaking of a construction project. The process starts with a cost estimate
from blueprints and material take offs.
The tender is treated as an offer to do the work for a certain amount of money (firm price), or
a certain amount of profit (cost reimbursement or cost plus). The tender, which is submitted
by the competing firms, is generally based on a bill of quantities, a bill of approximate
quantities or other specifications which enable the tenders to attain higher levels of accuracy,
the statement of work.
Pre- bid conference
For specialised works and major works, owners convene a pre-bid conference at about half of
the bidding time given to tenderers. It is held to confirm both parties understanding of what is
required and what is offered. Bidders are expected to visit the site and study tender
documents prior to attending this conference. Bidders are given an opportunity to seek
clarification on scope, stipulation, constrains, time frame for completion and further
assistance required from owner, etc. All important provisions made in the tender documents
are explained to tenderers. If any change is considered necessary as a result of pre-bid
conference, it is made exclusively through issuance of corrigenda which becomes a part of
the tender document. The minutes of the pre-bid conference is circulated to all bidders who
have responded to tender invitation. The conference helps in the projection of realistic bids
by the tenderers. Since clarifications are given to bidders prior to submission of bids, bid
evaluation would be easy for the owner’s team. For best results, owner and his consultant
should be fully prepared and empowered to answer the questions raised by the bidders.
Bid rates
Before finalizing bid rates, contractor is required to visit the site, study tender documents and
to do market survey for assessing prevailing rates of required materials. In practice, factors
such as owner’s promptness in making payments and giving decisions will have a reflection
on bid rates. All bidders will work out bid rates considering market rates of materials, labour
and hire charges, contractor’s profits and overheads. Provisions are made for contingencies to
cover unforeseen items and slight increase in scope of work, etc.

S.V.RAVINDRA Page 9
MARKET RATES OF
MATERILAS, LABOURS & HIRE
CHARGES OF MACHINERY
CONTRACTOR'S PROFIT
BID RATE
OVERHEADS
CONTIGENCIES
FIGURE 3.1 COMPOSITIONS OF BID-RATES
Contractor’s Profit
It reflects rate of return on his investment. It is affected when work is delayed, claims are
disallowed and when escalation is more than that reimbursed by the owners. If overhead
increase, profit is reduced.it is generally a practice in private sector to provide for contractor’s
profit @ 25% of estimated cost put to tender. Out of this 25%, 10% is said to be contractor’s
profit and about 10% accounts for profit earmarked for sub-contractors and vendors. Thus it
leaves only 5% for overheads, which provision may be realistic for large value works. If the
scope of work is reduced such provision for overheads is not realistic since some fixed costs
may not be amenable for proportionate reduction.
Bidders may provide around 25% in their bid estimate while submitting their bids. However,
it depends on several other factors, viz. extent of competition, their work load on hand, etc.
Overheads
Overheads are defined as all administrative or executive costs incident to the management,
supervision or conduct of the capital outlay on project and are distinguished from operating
costs. These are general charges which cannot be charged upon as belonging exclusively to
any particular item or part of the work. Provision for overheads varies from one work to
another, as it is dependent on several factors. For major works lesser percentage provision
may be feasible. It is not realistic to specify any uniform percentage for overheads, they
include:
1. Interest and bank guarantee charges

2. Supervision

S.V.RAVINDRA Page 10
3. Insurance and taxes
4. Infrastructure
5. Labour welfare
6. Litigation
7. Liquidated damages
8. Extra escalation
9. Idle labour and machinery
10. Security
11. Mobilization and storage
Provision of 5% for overheads may be realistic only for large value works. However, it would
be much more for smaller works.
• TENDER SCRUTINY
Twelve steps to be considered before bidding by the tenderers

12. Study tender document
13. Inspect the site again. Note the extent of infrastructure existing/ to be done.
14. Note nearest market place to procure material and labour for the work.
15. Decide what are the works to be done by main contractor and what works can be
entrusted to sub-contractors.
16. Shortlist reliable, reputed vendors and sub-contractors.
17. Requirement of field investigations. Is not required if data is made available by the
client
18. Obtain quotation from the sub-contractors and vendors and freeze their costs.
19. Plan to complete the job, within stipulated schedule. Draw network chart and check
their feasibility.
20. Prepare a bid estimate.
21. Add realistic overheads and profit as to be decided by the client.
22. Check the bid estimate again and revise, if necessary.
23. Who are the likely competitors? If the bid is too high the tenderer may lose the
opportunity to get the work. If it is too low it may reduce profitability.
• TENDER ANALYSIS - RECOMMENDATIONS
For evaluation of tenders, it is a practice both in government works and private sector works
to constitute a committee consisting of Architect/Engineer, finance representative and another
nominated person. The following steps are involved in the evaluation of tenders.
(i) Arithmetical accuracy is checked. Qty X Rate = Amount for each item and Sum of
Tendered amounts all items is computed.
(ii) Consider the effect of conditions, if any, stipulated by tenderers. Financial loading is
done over their quoted amount.
Normally, conditional tenders are treated as non-responsive.
However, certain conditions are considered after adding or subtracting their financial effect.
(iii) Evaluated bids are arranged from LI (First Lowest), L2, L3 and so on.
• Market Rate Analysis Prepared by the Owner
Market rate analysis is prepared on the basis of market rates at site of work or on the eve of
opening of tenders. This can be done by adopting one of the two methods:
- For all items tendered, work out material requirements and labour requirement
category-wise and add equipment required and multiply by respective market rates.
To this, add overheads, contractor’s profit and contingencies. This gives justifies
amount required to execute the work.
- Analyse the market rate for each item by adopting constant in data book and by
substituting market rates in place of estimated rates. The justified amount to execute
the work is worked-out based on the quantities given in the schedule of quantities and
market rates worked out as above.
- Then compare quoted amount of the lowest acceptable tender with justified amount
worked out as above in the light of market rates. If the difference is within 5% for
normal works and within 10% for emergency works, the tender may be recommended
for acceptance, if all other factors are favourable. If the difference is more than these
limits, attempt may be made to negotiate the offer. The lowest tenderer may also be
asked to furnish bid rate analysis. By comparing, it would be possible to reconcile the
difference between the lowest quoted amount and justified amount.
If there are no other issues in the scrutiny of tenders, the above procedure can be
adopted for evaluation of tenders.
• WORK ORDER
When a decision is taken to award the contract to a particular tenderer, the next step is to
issue a work order. As per the standard practice, it is common to intimate the tenderer by a
fax and follow it up by a detailed work order. It is necessary for the owner to ensure that
intimation is given to the successful tenderer well before the expiry of validity period or
extended validity period. Before communicating decision to award the contract, owner should
discharge his obligations which are prerequisites for tendering.
Points to be incorporated in work order:

1. Tendered amount in case of item rate tenders or percentage above/below the estimated
cost in case of percentage tenders. Lump sum amount in case of lump sum contracts or
turnkey contracts.
2. Reference to:
- Letters exchanged with the tenderer subsequent to receipt of tenders.
- Summary of negotiations
- Letter enclosed with the tenders indicating conditions or any stipulation
On award of contract the following activities merit consideration:
i. Obtain programme for execution of work (bar chart or network chart)
ii. Conduct periodic progressive meeting with cietn and contracts
iii. Set time schedule for procurement of material
iv. Deploy site staff for measurements of work done
v. Approve sub-contractors and vendors
vi. Focus on quality assurance and safety matters
vii. Progress as per the programme. Compare fiscal progress with financial progress
viii. Analyse causes for cost and time overrun and suggest methods to overcome them or
minimise them
ix. Certify payments interim and final
x. Settle disputes amicably
xi. Consultants should serve as a catalyst between client and contractor and ensure progress.
• E-TENDERING (ADVANTAGES, PROCEDURE, CONDITIONS)
An internet based process wherein the complete tendering process; from advertising to
receiving and submitting tender-related information are done online. This enables firms to be
more efficient as paper-based transactions are reduced or eliminated, facilitating for a more
speedy exchange of information.
The detailed procedure adopted is given in Appendix 01.
As regards, the procedure adopted to award the contract, there is no uniformity in practice
adopted in various organisations. Some of them are given below:
1. Award of tender to the lowest evaluated tenderer.
2. Award of work to the lowest evaluated tenderer after negotiations. In this process,
negotiation is done with a few or all tenderers which is kept confidential. Tenderers
will not know the negotiated bid of other competitors. However, all the negotiated
bids are known to the client only.

3. Award of work done after giving an opportunity to all tenderers or few tenderers to
lower their bids. This is done confidentially and it is known only to owner, but not
known to other competitors.
APENDIX 20
Introduction
The Government has decided to implement a state-wide e-procurement portal. The new e-
Proc portal will act as an end-to-end system, wherein government agencies can handle their
procurement activities entirely online starting from Indent generation, tendering, contract
management, catalogue management and payments. The end-to-end e-Proc portal has been
divided into the following key modules:
1. Supplier registration
2. Indent management
3. E-tendering – Bid creation and submission
4. E- auctions
5. Contract management
6. Catalogue management
This user guide focuses on Bid submission for works.
Pre-requisites
You must have the following:
1. A broadband Internet connection. This is important for quicker access, processing
and uploading of files. Some of the common broadband (or high speed Internet)
provides are BSNL, Airtel, etc.
2. A digital certificate on your PC or on a thumb drive. You cannot proceed with your
registration or edit your profile without a digital certificate. A list of the approved
vendors is available on the e-Proc portal. This is the link to the e-proc portal:
http://eproc.karnataka.gov.in
A digital certificate helps keep your information and your transactions completely safe.
3. Internet Explorer 6.0 or above. No other browsers are supported at the moment.
4. A valid email account with enough space to receive email. If you are a regular
supplier to the government, we recommend a dedicated email account. There are
many free mail services available on the internet today:
Gmail –---------------http://www.gmail.com
Hotmail –------------http://www.hotmail.com

SIFY ----------------http://www.sify.com
Rediff --------------http://rediffmail.com
Yahoo --------------http://www.yahoo.co.in
You can also opt for paid service with your domain.
5. WinZip installed on your system to compress large files into smaller sized files. Get
this from: http://www.winzip.com
6. On the e-Proc portal, all fields marked with a red asterisk indicate that it is
compulsory to enter/provide that information. You cannot proceed with registration
without entering those details.
Bid submission for works
Logging in
1. In your Internet Explorer address bar, type the URL http://epro.karnataka.gov.in
2. The procurement portal home page appears. As a registered contractor, you can log
in to the portal to access your profile, view and bid for tenders for the categories you
are registered to receive.
Example: You can view tenders for works, goods, or services, or any combination of these
categories.
3. Your user ID and password were emailed to you when you signed up for this paid
service.
As per process, you would then have changed the mailed password to a new one that was
more convenient and personal to you.
Enter your registered user ID and your password.
Click Login.
Inside the e-Procurement portal
You are now logged into the e-Procurement Portal. There are 2 main menu options
available:
1. My Profile: Here you can change details (such as address, phone number, others) to
update your profile.
2. Tender Management: With the Search Tenders you can search for tenders released by
the Government of Karnataka through a criteria-based search. My Bids display all
bids for works that you have submitted.
Click on Search Tenders to open the Search Tenders screen.

Searching for tenders
1. This is the Search Tenders screen where you can search for works tenders by specifying one
or more criteria.
The search criteria can be the tender category, publishing department (Works), number,
tender and/or the invitation strategy.
There are 2 types of tenders:
I. Open tenders are for all Contractors.
II. Pre-Qualified tenders are only for successfully pre-qualified contractors who will
go through the qualification process.
2. The Department dropdown list displays a detailed list of all the participating departments of
the Government of Karnataka.
3. There are 3 ways to search of tenders:
I. Simply click on search without specifying criteria. Not recommended because it
will display a long list of all tenders.
II. Specify the Tender Number by copying it from the email notice you received. This
is the quickest way.
III. Specify multiple criteria to narrow down a range of tenders. Specify your criteria
and click on Search.
4. The Search Tenders screen is the initial point for viewing Open or Pre-Qualified tenders for
works published by the Government of Karnataka.
Actions
1. You can perform the following actions on published tenders:
a. Clicking the View Details icon of a tender brings up this view-only screen which
displays the selected tender’s details:
• Procurement entity details
• Tender value, earnest money deposit and documentation fees details
• The dates and times of the tender schedule
Remember, you cannot modify any tender details here.
b. Download Tender documents: You can download tender documents here for
viewing/re-viewing.
c. View Queries for this Tender: You can view/submit queries for this tender.
d. Submit the bid for this Tender: You can submit your bid for this tender.

2. The status of the works tenders you searched for is displayed here. A tender can have
the following status:
a. Published
b. Tendered
c. Submitted
d. Awarded
Bid submission summary/overview
1. Clicking the Submit Bid for this Tender icon brings you to the bid submission
summary/overview screen.
Here, you must click on the options and follow the steps through to achieve a green checked
status against all the eight actions to submit you bid for a tender successfully. A yellow icon
indicates a warning status which means the process has not been completed.
• View tender details
• Download tender documents
• View items in tender
• Tender processing fee
• EMD payment
• General conditions of eligibility
• Technical qualification criteria
• Upload bid documents
• Item-wise bid commercial offer
• Declaration
2. Click tender processing fee
• Credit card/online payment
• Direct debit using online banking/online payment
• NEFT/Offline payment
• Remittance at the bank counter – Challan (offline Payemnt)
3. Click EMD
Earnest Money Deposit (EMD) is required as a security deposit from a contractor.
The tendering authority will set a percentage of the ECV as the Earnest Money Deposit.
When the percentage is put in, the value is calculated automatically and displayed on the
screen.

The Earnest Money deposit (EMD) amount is automatically displayed on the payment
information screen.
You cannot modify this amount. The exact amount must be submitted to proceed successfully
in this process.
Select your Mode of payment from the four options listed on the screen.
4. The green checked status indicates that your EMD payment is processed successfully
General conditions of eligibility are norms or a level of standard that must meet the
qualification requirements set by the GoK. Compliance with these standards is important for
you to reach the end of the bidding process.
Non-compliance can lead to disqualification of your bid at the end of the process. If you
select NO in the compliance dropdown list, then your bid will be disqualified by the system.
These compliance criteria must be met for successful bid submission.
Enter a brief description or any additional information about your compliance with the
eligibility criteria in the Remarks text boxes. Clicking on SAVE will return you to the Bid
summary/overview screen.
5. The green checked status indicates that your eligibility criteria were processed
successfully. The next action to be executed in Technical Qualification criteria.
• View tender details
• Download tender documents
• View items in tender
• Tender processing fee
• EMD payment
• General conditions of eligibility
• Technical qualification criteria
• Upload bid documents
• Item wise bid commercial offer
• Declaration
The technical qualification criteria screen displays the required criteria to qualify technically
to submit a particular bid.
Technical criteria may be specific to the nature and quantity of the Works being tendered and
your capability as a contractor to meet the demands of the tender.
As with eligibility criteria, you must meet the technical qualification criteria laid down for a
tender to successfully qualify for bid submission.
Click the pointing finger icon to access the compliance screen for those technical criteria.
Specify if your compliance to each technical criterion is Yes or No. enter your remarks and
upload the required documents.
Click save and continue.
The green checked status indicates successful processing of your technical qualifications
criteria.
6. Upload bid documents is the halfway point in this series of actions. Click upload bid
documents to upload and submit mandatory certificates and documentation.
Various departments within Governmentof Karnataka attach different certification and
documentation requirements to their tenders. The set of certifications and documentations
required for a bid will be listed in the tender itself.
You must attach these documents and certificates during the submission process. Ensure that
all required documentation and certification is available in a scanned/electronic format, on
your desktop at the same time of submission. Clicking Browse brings up the Choose file
window. Select the directory and file and click Open.
7. Click Item-wise Bid commercial offer
The next option is item-wise bid commercial offer. All line items in this option must be
quoted.
These line items are numbered serially and require the following actions:
I. Enter the rate for the goods
II. Enter the amount in words
Note: Great care must be taken to enter the rate correctly
All the line item for a works tender are listed serially and NOT grouped as they are for goods
tenders.
Unlike the item-wise bid commercial offer for goods, you do NOT have to specify any tax
components for works tenders.
Next, click Declaration to complete the bid submission process.
8. Declaration is an online declaration from you or your organisation enclosing the
financial proposal for selection of your firm to execute that particular tender as per
the stipulations of the contract.
Click I agree…. Checkbox. Click the Encrypt… checkbox if you want to secure the bid.
Click Save & Continue.
If you choose to encrypt your tender, then this screen appears.

Click Submit Bid.
In the screen that follows, click Submit Bid.
9. Once all the requirements and conditions have been submitted and met, a Bid
Reference Number is generated.
This submitted bid will be available to you in the My Bid option under Tender management.
10. Click my Bids and enter the Tender Number or selection the Department.
Click Search.
A list of tenders’ issued by the selected department is displayed.
Click Logout to exit from the e-Procurement Portal.
Increased Efficiency
• Shorten the procurement cycle when processes are automated with tender analysis,
allowing users to allocate resources and time for other critical issues.
• Automate the entire tendering lifecycle for procurement of goods and services starting
from creation of a purchase requisition through to the award of contract with strict
control.
• Streamline last minute tender changes.
• Faster response to questions and points of clarification during tender period.
• Remote office operation is made possible as all authorized parties can access Tender
Tailor via a secured channel. Cross border tendering process can be achieved.
• Better communications between departments, as the alerting system would remind
users about critical issues and tasks that have been completed by different teams,
minimizing human errors, as well as to route documents to appropriate parties or
alerts individuals of actions in the system.
• Single point of access for both vendors and purchasers to do business efficiently in a
convenient and user-friendly manner.
• Better access to procurement spending information and analytical reports
Reduced Cost
• Result in more profitable contracts

• Reduce take-off costs and errors with direct digitizer input
• Minimize paper trail on tendering exercises
• Reduce costs of participation for purchasers and vendors
• Reduce fulfilment and rework costs
• Reduce advertisement cost
• Reduce cost to obtain detailed analysis of costs and mark-up
• Reduce labour intensive tasks of receipt, recording and distribution of tender
• Less manual forms filling on tender preparation and data re-entry when upon
receiving the tender
• Reduce hassles involved in communication and administration, achieving higher
accuracy
• Fair, Free and fearless participation of Tenderer become possible
Improved Quality
1. Users can visualize the status on each tendering process by the comprehensive
progress tracking function, reducing time for keeping track of status.
2. Streamlined workflow is realized with faster tender and document submission; hence
improved information distribution is achieved.
3. Better integrity of goods, services, works and vendor information as a provision of
quality management of centralized repository facilitates instant access to both current
and historical tender information
4. Detailed purchase history for efficient negotiation with vendors
5. Real time updating, eliminate obsolete information
6. Improved audit trail increasing integrity and transparency of the tendering process
7. Improved quality of tender specification and supplier response
8. Provision of quality management information
9. Database of goods, services, works and contractors gets build up
10. Gives critical lead over the competitors
CONTRACT
• DEFINITION
The word contract is derived from the Latin word contractor meaning drawing together.
There are many definitions for the word ‘contract’. Some of them are given as follows:;
1. An agreement enforceable by law is a contract of the Indian Contract Act, 1872.

FIGURE 3.2 VARIATIONS IN SCOPE OF WORK
2. When two or more persons have a common intention communicated to each other to
create some obligation between them, there is said to be an agreement. An agreement
which is enforceable by law is a contract. (CPWD)
3. An agreement between two or more parties which is intended to be enforceable at law
and is constituted by acceptance by one party of an offer made by the other party to
do or abstain from doing the act. (Halsbury)
• CONTRACT AGREEMENT - ITS NECESSITY
Objective
The primary objective of contract management is completion of work entrusted to the
construction agency with least complications (ideally without any complication) within
specified time, within specified (approved cost) and conforming to specified quality without
loss of harmony among key participants.
FIGURE 3.3OBJECTIVES OF CONTRACT MANAGEMENT

Management of contract should be done in such a way that the construction agency gets what
is due to the agency and owner gets full value for the investment, all within the perimeter of
conditions of contract.
FIGURE 3.4 OBJECTIVES OF OWNER AND CONTRACTOR
In many organisations objectives are structured in a hierarchy of importance. There are

objectives within objectives as shown in the figure. The objectives of each unit contributes of
the next higher unit.
FIGURE 3.5 HIERARCHIES OF OBJECTIVES
A contract agreement is a really important document that will define your scope of work and
that will bind the owner to your services, including the payment terms. It is really important
to understand the scope of work specified in the contract agreement, complete the work as
scheduled, invoice per instructed to do so and finally it will be the tool used so to get paid.

THE INDIAN CONTRACT ACT, 1872
The Indian Contract Act is the basic document governing all types of contracts including
bailment and agency. Contracts should be properly administered, governed, and controlled as
per the act. A good contract should not be spoiled by bad administration.
The India Contract Act uses the word ‘promise’ to indicate a party’s obligation. The word
‘promise’ in common parlance means ‘an engagement to do or keep from doing something.’
In law, however, it means a proposal made by one person which is accepted by another
person to whom it is made. Some of the clauses are given below.
• Every promise and set of promises, forming the consideration for each other, is called
reciprocal promises. Vide Sec 2 (e)
• An agreement not enforceable is said to be void vide Sec 2 (g)
• An agreement which is enforceable by law at the option of one or more of the parties
thereto, but not at the option of other or others, is a voidable contract vide Sec 2(i) a
• A contract which ceases to be enforceable by law becomes void when it ceases to be
enforceable vide Sec 2 (j)
• There are several types of contracts. They involve issues relating to (i) Technology
(ii) Finance (iii) Administration and Management. Contracts involve high monetary
stakes. Contracts should be properly administrated, governed and controlled as per
provisions of Indian Contract Act 1872.
All contracts if they are to be valid and enforceable at law must have certain ingredients, viz.
(i) Mutual agreement between the contracting parties as to the terms and conditions
of the contract.
(ii) Genuine intention of the parties to accept and fulfil their respective rights and
duties under the contract.
(iii) Legal capacity of the parties to make a valid contract.
(iv) Consideration of some value (such as payment for construction work done)
exchanged by the parties.
(v) Lawful nature of the object of the contract (e.g. to build a structure that conforms
to all laws and regulations).
(vi) When the person to whom the proposal is made, signifies his/her assent thereon,
the proposal is said be to accepted, and it becomes a ‘promise’. The person
accepting the proposal is called the ‘promise’ (owner).

(vii) Consideration is the price in terms of money, goods or services paid for the thing
that the promisor wishes to have.
(viii) An agreement enforceable by law is a contract: an agreement not enforceable by
law is said to be void.
(ix) An agreement which is enforceable by law at the option of one or more parties
thereto, but not at the option of other or others is a voidable contract.
Types of contract
There are several types of contracts. One of the following five types of contracts indicated in
figure is adopted for execution of works by Government Departments or by private owners
on the nature of work.
FIGURE 3.6TYPES OF CONTRACT
Classification of engineering contracts

(A) Based on purpose
1. Full contracts – Contracts for entire scope of work (e.g. building with all internal and
external services).
2. Labour contracts – Owner supplies all materials and the contractor provides labour
and required petty materials.

3. Turnkey contracts – Adopted for complex and specialized works. Entire responsibility
rests with the contractor for design, construction, and commissioning.
4. There may or may not be provision for escalation.
5. There may be provision for maintenance.
6. There may be provision beyond normal defect liability period.
7. Procurement contract – For procurement of materials for a work. It may be fate
contract for a year or specific period.
8. Transport contract – For transport of materials from rail head to works site or owner’s
warehouse.
9. Erection contract – For installation erection and commissioning of plant & machinery
given by the owner.
10. Consultancy contracts – To avail the services of a consultant for project formulation,
DPR, construction supervision and progress monitoring, etc.
(B) Based on economic classification
1. Measurement contracts (item rate and % rate)
2. Lump sum contracts
3. Cost + fee contracts
4. Turnkey contracts
5. Build-own-operate and transfer (BOOT) contracts
6. Labour contracts
7. Demolition contracts
8. Others – piece work contracts
9. Day work
10. Consultancy contracts
i. Fixed price contracts without provision for escalation (major risk is borne
by the contractor).
ii. Fixed price contracts with provision for escalation (risk is limited to
difference in market rates and factors considered in escalation formulae).
A. Measurement contracts (item rate and % rate):
(i) Percentage contracts:For small works and works of repetitive nature,
percentage rate contracts are adopted. Owner indicates quantities and estimated
rates for all items of work. The estimated cost is reflected in the tender
schedule. The tenderer will quote above or below the estimated cost in per-centto

put for tender. Payment is made on the basis of actual quantities executed
andmeasured. In percentage rate tender, the owner gives both rates and quantities
and amount. The contractor quotes % above or at par or (%) below the
estimated cost. It is generally adopted for small works and repetitive works. This
type of tender is also suitable for repair and maintenance works.
(ii) Item rate contracts:For major works, item rate contracts are adopted.
Owner indicates quantities and units only for all items of work and the
tenderer quotes rates for each individual item. Payment is made for the actual
work done based on measurements. This type of contract is useful for works
where all items are not finalized at the beginning. Item can be modified within certain
limits on the basis of detailed planning and design. The tender form contains all
items of work included in bill of quantities excluding lump sum items and those
items which are to be executed through another agency. The tenderer quotes rates
for each item. Payment is made on the basis of measurements of work done.
The quantities included in the tender schedule are approximate and some
variation within deviation limits is permissible. This is said to be a balanced
method of execution.
B. Lump sum contract:
Scope of work, construction drawings and detailed specifications are given
to tenderer along with terms and conditions of contract. Schedule of
quantities may or may not form a part of tender documents. Even if they are
supplied they are not contractually operative and informative only. The
tenderer quotes a fixed price for the whole work tendered. If this type of
contract is adopted, the owner will know cost of work on the eve of award of
contract. However, this is subject to the condition that there is no-variation
in scope of work subsequently. It is normal practice to agree on a method to
regulate payments for additions and alterations. Provision can be made for
escalation in this type of contract also. Detailed measurement of work done
may not be necessary when contract specifies stage payment to effect
interim payments. This type of contract can be considered when scope of
work is frozen; planning, designing and working drawings are completed
before inviting tenders.

Contractor quotes one lump sum amount for the work/job assigned. This type of
contract is suitable when planning, construction, drawings, and
specifications are finalized before inviting tenders. The tenderer quotes a fixed
price. In this method owner knows the probable cost of work. However, if the
quote is varied, it involves contractual problems and methodology to arrive at
the rates for addition, deletion and alterations would be necessary and it is
to be built in tender document. This is to facilitate release of interim payments.
C. Cost plus fee contract
COST + PERCENTAGE (%) OF TOTAL COST WITH OR WITHOUT A CEILING COST + FIXED FEE COST + INCENTIVE FEE
This method of contract is adopted for:
(i) emergency works

(ii) for miscellaneous works and
(iii) For works for which scope cannot be defined properly at tender stage.
Contractor is paid his actual cost of materials labour, hire charges of
machinery and a fee towards his profit and overheads. This fee may be a
percentage of total cost with or without a ceiling or a lump sum amount.
Here contractor's risk is less and owner's liability is not known on the eve
of commencement of works. Under some circumstances, this type of
contract is adopted in government or private sector works.
D. Turnkey Contract
In a turnkey contract, the contractor takes full responsibility for design, construction
and commissioning of the facility of defined scope for a fixed lump sum price. This is an
area of high risk for the contractor. The contractor has to bear the normal risk of
unforeseen site conditions, poor weather and foundation problems. For turnkey
contractor, time is truly equal to money and schedule slippage may adversely affect his
profitability particularly in cases where there is no provision for escalation. A bonus or
penalty clause may be included as an incentive or disincentive to the contractor to
complete the work on time. This type of contract is suitable for projects where all the
functional parameters are finalized and changes and extras are not made later. Such
type of contracts is seen more in commercial, defence and interior projects of multi-
disciplinary character and when timely completion is important.
In this type of contract, Contractor takes full responsibility for design, construction,
commissioning of the facilities. The scope of the facility is described in detail and
a fixed lump sum price is paid to the contractor. There may or may not be a
provision for escalation. The number of responsibility centres is reduced to only one.
It eliminates coordination problem. In a liberalized regime Indian entrepreneurs are
inclined to start considering the implementation of their projects following the turnkey
concept. This type of project is suitable for scheduling critical commercial and defence
projects of multi-disciplinary character. The contractor has to bear the normal risk of
unforeseen site conditions, poor weather and foundation problems. Schedule
slippage may adversely affect his profitability in the absence of escalation clause. A

bonus clause may be included as an incentive to the contractor to complete the work
even before stipulated period of completion.
E. BOOT contract
With the liberalization and opening up of the economy, private sector is encouraged
to execute public works, own them, operate for a specific period and transfer the
same to public authority. The entrepreneur will recover his investment during the
period he owns and before the transfer of asset. This type of contract is adopted for
highway projects, airports, convention centres, IT parks, power plants and bridges.
Government avoids funding and allows a private person or a group to invest, build
and transfer the facility after recovering their investment. The government acts as a
facilitator in terms of legal issues, acquisition of land and enforcement of issues. This
type is desirable where the government itself is unable to raise huge resources to take
up such big projects. Further the government can also join with private companies or
consortia in the form of separate holding company specifically constituted for the
purpose. Build—own—operate—and transfer contracts adopted for infrastructure
projects (highways bridges, airports, water supply and sewerage projects) private
sector involves in these projects. Entrepreneur invests and maintains these structures
and collect toll for specific period based on approved tariff. Government acts as a
facilitator and provides and approvals. On expiry of contract period the facility is
transferred to government. Deletion and alterations would be necessary and it is to be
built into tender document. This is to facilitate release of interim payments.
DFBOOT Contract: It is similar to BOOT Contract except the entrepreneur will
also be responsible for the designing and financing of the project. Government's
responsibilities remain same as in BOOT contract described above.
• Quality Based Selection (QBS): Adopted for highly specialized assignments
such as urban master plan and finance, etc., reforms. * Best Expert Advice
(feasibility and structural engineering in major projects such dams, etc.
Assignments which can substantially carried out in different ways
(management advice and sector in policy study).
• Selection under Fixed Budget (FBS): For simple and precisely defined
assignments.
• Selection on Basis of Least Cost (LCS): Adopted for Standard or routine
nature assignments (audits, design of non-complex engineering works)
• Selection Based on Consultant's qualifications (CQS): For small assignments
where evaluation of competitive proposal is not justified.
Consultants are paid on job basis, lump sum basis, on call basis, or on retainer ship
basis, depending on situation and considering several factors. This is a concession
contract. The project is based on the granting of a concession by the principal, usually a
Government to an entrepreneur (known as the concessionaire) who is responsible for
design, financing, construction, operating and maintaining the facility over a period of

concession before finally transferring the facilities at no cost to the principal, as a fully
operational facility. During the concession period the entrepreneur collects toll fee to
recover the cost of investment and maintenance which results in a margin of profit.
F. Labour contract
In this the owner supplies all the materials and the contractor provides only, the
labour component, i.e. not just labour but also all plant and machinery required for
construction work. He is responsible for execution of the work. As contractor is not
responsible for materials; he may misuse and waste materials. This is a popular type
of contract as both materials and workmanship will be of high standard. Payments
are restricted to labour charges only. In case of extras too only labour charges need to
be paid. Problems relating to escalation, cost variation relating to materials will not
affect work progress. This contract at the tender stage can be based on cubic foot
construction for the entire construction project (excludes drainage, plumbing and
electric, AC works). It is suitable for all types of buildings, extension work
alterations and repair of works. Advantages include cost saving aspect, reduction in
disputes, effective supervision in use of materials and workmanship and use of
quality materials. The contractor is responsible for execution of work; Payments are
restricted to labour charges only. This contract at the tender stage can be based on
square meter/cubic meter of construction for the entire work. It is suitable for all
types of buildings, extension work, alterations and repair of works. Advantages
include cost saving aspect, reduction in disputes, effective supervision in use of
materials and good workmanship and use of quality materials.
G. Demolition contract
This involves demolition of existing building/ buildings completely and removal of
the debris safely away from the site. The contractor takes away all the materials that
are salvaged from building and pays for the same to the owner. For this contract, the
highest bidder is awarded the work. A specified depositing (EMD) needs to be made
by contractor which he will forfeit in case of non-completion of work for any reason,
e.g. non-carting away of materials from site completely. The owner can use the
deposit, for such purposes. The whole tendered amount needs to be collected from the
contractor before the commencement of work. Owner should not accept any part payment
as there is a chance of contractor abandoning the work in between. The contractor has
to take out insurance for accidents, compensation (to workers). Further permission to cut
the road for water, electricity supply drainage connections, etc., is to be obtained by
the contractor.
The contract should specify whether the demolition work is totally up to the ground of
the whole building or only a part. In such a case, part demolition should not affect the
structural strength of the rest of the building. Further, the contractor should make good
any damages to the existing part of the building if required. Also, the items the owner
wants to retain post demolition are to be clearly mentioned in tender and later in
contract, otherwise the same have to be purchased from contractor. A tenderer before
submitting the bid should inspect the building to assess the salvage value of items of

recovery. The earnest money deposit is returned to the contractor only after successful
completion of demolition work and carting away all debris to the satisfaction of the
owner.
This involves demolition of existing building/buildings completely and removal of the

debris safely away from the site. The contractor takes away all the materials that are
salvaged from building and pays for the same to the owner.
For this contract the highest bidder is awarded the work. Contractor shall deposit EMD
which will be forfeited in case of non-completion of entire work for any reasons (namely, non-
carting away of dismantled materials from site completely. The whole tendered amount
shall be collected from the contractor before commencement of the work. It is advisable
for contractor to take an insurance policy for accidents, damages, etc.
H. Other works
Works of nature: Piece work or days’ work cannot be strictly classified as contracts as
they do not involve security deposit or penalty; as they do not involve large sums of
money.
Piece work contracts are common with agencies, like CPWD/PWD or public sector
units. This involves splitting up of a large work of similar nature, e.g. canal work or
metro rail construction, etc., into smaller sections as packages and contracts are
awarded based on tenders (public) if the amount is substantial (to be decided by the
agencies like PWD for execution). In case of small works the concerned Chief
Engineer may be empowered to take decision (as per the agencies guidelines). This type of
execution works out well where large scale work of similar/repetitive work is present
and which needs to be completed fast, e.g. road work in large township projects or
services like electrical work or sanitary/water supply lines. Rates and items are fixed
and are paid after execution of work.
Piece work or days’ work cannot be strictly classified as contracts. They do not
involve security deposit or penalty as they do not involve large sums of money.
I. Day work
It is not a contract at all. But this method of execution is good for works of small
nature which cannot be measured or valued, e.g. decorative work, craftwork/artwork,
etc. Payment for the same includes cost of material and hire charges of machinery, labour
charges and contractor's profit. It does not involve tendering, security or earnest money
deposit, etc. It is the architect or engineer who has to decide and select the
individual or agency and commission the work. The clerk of works or (site engineer)
has to supervise the work and report to the architect or engineer. Wages paid to labourers
should conform to government guidelines. Any trade discounts allowed are to go to
the owner. If the main contractor has supplied materials, like cement or sand, the same are
to be deducted from the contractor's payment who is doing the day's work.
Day work's commencement and completion statement are to be certified by
the architect/engineer. Day work items are to be preferably avoided in design as

they increase cost due to difficulty in measurement and lump sum nature of
payment.
This method of execution is good for small works, which cannot be measured or valued
(e.g. decorative work, craftwork, artwork, etc.). Payment for the same shall be decided on
the basis of site observation along with reasonable profit.
J. Consultancy contract
• Quality based Selection (QBS): Adopted for highly specialized assignments
such as urban master plan and finance, etc. reforms.
• Best Expert Advice: Feasibility and structural engineering in major projects
such as dams, etc.
• Assignments which can substantially carried out in different ways (management
advice and sector in policy study).
• Selection under Fixed Budget (FBS): For simple and precisely defined
assignments.
• Selection on Basis of Least Cost (LCS): Adopted for standard or routine
nature assignments (audits, design of non-complex engineering works).
• Selection Based on Consultant's qualification (CQS): For small assignments
where evaluation of competitive proposal is not justified.
Consultants are paid on-job basis, lump sum basis, on-call basis, or on-retainer ship
basis depending on situation and considering several factors.
SELECTION OF CONTRACTORS
It is recognized that the most important part of contract management is the selection of
contractor(s). Critical factors, such as quality, speed, economy and harmony are all dependent
on selection of a suitable contractor. Selection should also satisfy the principle of equity and
fair play. Contractor is selected by the owner through any one of the following processes after
conducting negotiations if required.
• Public tenders
• Pre-qualification
• Post-qualification
• Limited tenders
• Single Tender
• Nomination
Public Tenders
For government works, invariably public tenders are invited from registered contractors of
appropriate class. A stipulation is made in the tender notice regarding work experience,

financial solvency, and annual turnover in addition to registration. His general reputation is
also taken into consideration before the award of contract.
Pre-qualification of Contractors
For major works, specialized works, and for works of multi-disciplinary involvement,
contractors are pre-qualified to ensure that competition is only among bidders who are
capable of executing the work. The basic requirement of pre-qualification is not the
selection of the best contractor, but to eliminate incompetent and insincere contractors. Pre-
qualification notice is published in newspapers with relevant details, such as name of work,
location, estimated cost, period allowed for completion, eligibility criteria of contractors,
etc. Contractors are pre-qualified on the basis of financial solvency, work experience,
quality of works executed, organization and plant and machinery possessed. It is a normal
practice to constitute a committee, to evaluate their suitability. The works are inspected for
quality and their present workload is also taken into account. Suitable weightages are
assigned for each of the criteria and the assessment is made accordingly. Suitable number of
contractors (not too small or too large) is pre-qualified. Thereafter, the tender notices are
sent to such pre-qualified contractors only. There will not be a press notice thereafter. Only
pre-qualified contractors are allowed to tender for the work. Further selection of contractors is
based on the processes after conducting negotiations.
Post Qualification
In this method, three cover systems are followed. Earnest Money Deposit receipt, Technical
bid and financial bid are submitted in separate covers. If the tenderer does not submit Earnest
Money Deposit in prescribed form acceptable to the client, there is no need to open other two
covers containing technical and financial bid. The technical bid containing all particulars
required to evaluate contractor's suitability except price is opened first and contractors are
post-qualified. Price bids of only such post-qualified contractors are opened and evaluated at a
later date or on the same day. Price bids of other contractors (not qualified) may be returned
or retained with the owner without opening. If two cover systems are followed, the first cover
contains Earnest Money Deposit receipt in approved form along with technical bid
particulars. The procedure for opening of price bid is same as above. EMD in approved form
is a pre-requisite for evaluation of technical bid.
Limited Tenders
In this method, tender notice is sent to some selected contractors of repute, and no press
notice is issued. The lowest tenderer may be called for negotiations. The number of
contractors in the select list is generally, not too small to avoid formation of a cartel. This
method is adopted in private sector in some cases as an alternative to other methods. For
government works, this method is restricted to emergency works only and the decision is
taken at the higher level of hierarchy.

Single Tender
In response to Notice Inviting Tenders (NIT), only one tender is received. Even after
liberalizing tender conditions, there is no response to secure additional tender. In such a
situation, single tender with approval of higher level of hierarchy is accepted. It is also
adopted for small value works or for works from manufacturer (specified brand) where choice
is not available in the market.
Nomination
Selection of a contractor by nomination is adopted for works of small magnitude or for

emergency works. The contract is awarded based on prevailing market rates. In private sector,
this method is sometimes adopted to select a contractor. The rates are negotiated keeping in
view the trend of market such works may also relate to special skills or construction which are
normally available.
• CONTENTS (ARTICLES OF AGREEMENT, TERMS AND CONDITIONS,

BILLS OF QUANTITIES AND SPECIFICATIONS, APPENDIX)
Articles of agreement(as per Indian Institute of Architects)
Made the _______ day of ____20____ between ___________________________________
____________________________________________________________ (hereinafter called
`the owner') of the one part and _________________________________________________
__________________________________________ _______of (or whose registered office is
situated at) _________________________________________________________________
___________________________________________________________________________
__________________ (hereinafter called "the Contractor") of the other part.
WHEREAS the Owner is desirous of ____________________________________________
__________________________________________________________
----------------------------------------------------------------------------------------------------------------
(hereinafter called "The Work") at _______________________________________________
____________________________________________________________________ and has
caused Drawings and Bills of Quantities showing and describing the work to be done to be
prepared by or under the direction of _____________________________________________
______________________________________________________________
AND WHEREAS the Contractor has supplied the Owner with a fully priced copy of the said
Bills of Quantities (which copy is hereinafter referred to as "the Contract Bills") AND
WHEREAS the said Drawings (hereinafter referred to as "the Contract Drawings") and the
Contract Bills have been signed by or on behalf of the parties hereto: AND WHEREAS the
Contractor has deposited the sum of Rupees _______________________________________
____________________________________________________________________ with
theArchitect/Owner for the due performance of this Agreement.
NOW IT IS HEREBY AGREED AS FOLLOWS:

1. For the consideration hereinafter mentioned the Contractor will upon and subject to the
Conditions annexed carryout and complete the Work shown upon the Contract Drawings and
described by or referred to in the Contract Bills and in the sand Conditions.
2. The Owner will pay the Contractor the sum of Rupees _____________________________
__________________________________________________________ (hereinafter referred
to as "The Contract Sum") of such other sum as shall become payable hereunder at the times
and in the manner specified in the said Conditions.
3. The term "the Architect in the said Conditions shall mean the said ___________________
___________________________________________________________________________
___________________________________________________ or in the event of his death or
ceasing to be the Architect for the purpose of this Contract, such other person as the Owner
shall nominate for that purpose, not being a person to whom the Contract shall object for
reasons considered to be sufficient byan arbitrator appointed in accordance with the said
Conditions. Provided always that no person subsequently appointed to be the Architect under
this Contract shall be entitled to disregard or overrule any certificate or opinion or decision or
approval or instruction given or expressed by the Architect for the time being.
4. The said Conditions and appendix thereto shall be read and construed as forming part of
this Agreement, and the parties hereto shall respectively abide by, submit themselves to the
Conditions and perform the agreement on their parts respectively in such Conditions
contained.
AS WITNESS the hands of the said Parties
Signed by the said Owner in the presence of
Witness:
Name:
Address:
Signed by the said Contractor in the presence of
Witness:
Name:
Address:
For extra reading:

Appendix 21(3)
Extracts of some clauses incorporated in K/W-3 tender form of Government of
Karnataka is given below. Other States/private organizations may incorporate such
or similar or modified clause(s) suitable to their future contract document.
Compensation Events
The following are Compensation events unless they are caused by the contractor.
* The employer does not give access to a part of the site by the site possession date
stated in the contract data.
* The employer orders a delay or does not issue drawings, specifications or
instructions required for execution of work on time.
* The employer instructs the contractor to uncover or carry out additional tests upon
work which is then found to have no defects.
* The employer gives an instruction for dealing with an unforeseen condition caused
by the Employer or additional work required for safety or other reasons.
* The effect on the contractor of any of the Employer's risks.
* The employer unreasonably delays issuing a Certificate of Completion
* Other compensation events listed in the contract data or mentioned in the contract.
* If a compensation event would cause additional cost or would prevent the work
being completed before the intended date of completion, the contract price shall be
increased and/or the intended completion date is extended. The employer shall decide
whether and by how much the contract price shall be increased and whether by how
much the intended completion date shall be extended.
* As soon as the information demonstrating the effect of each compensation event
upon the contract's forecast has been provided by the contractor, it is to be assessed
by the employer and the contract price shall be adjusted accordingly. If the
contractor's forecast is deemed unreasonable the employer shall adjust the contract
price based on employer's own forecast.
* The employer will assume that the contractor will react competently and promptly
to the event.
* The contractor shall not be entitled to the compensation to the extent that the
employer's interests are adversely affected by the contractor not having given early
warning or not having cooperated with the employer.
Banker's Certificate
This is 'to certify that M/s____ is a reputed company with a good financial standing.
If the contract for this work, ______ (name of the work) is awarded to the above firm,
we shall be able to provide overdraft/credit facilities to the extent of Rs.____ to meet
the working capital requirements for executing the above work.
(Sd)
Name of the bank.... Senior Bank Manager
Address of the bank
Bill of Quantities
S. No. Description of Quantity Unit Rate (Z) Amount

Agreement items in figures in words
Total Tender Price (in figures)

(in words)
Note:

(1) Items for which no rate or price has been entered in will not be paid by the employer
when executed and shall be deemed covered by the other rates and prices in the bill of
quantities.
(2) Unit rates and prices shall be quoted by the tenderer in Indian Rupees.
(3) Where there is a discrepancy between the rate in figures and words, the lower of the two
will govern.
(4) Where there is a discrepancy between the unit rate and the line item, the total resulting
from multiplying the unit rate by quantity, the unit rate quoted shall govern.
The tender shall contain no alterations or additions except those to comply with instructions
issued by the employer or as necessary to correct errors made by the tenderer in which case
such corrections shall be initialled by the person signing the tender.
• TERMS AND CONDITIONS(SUMMARY OF SOME CRITICAL CLAUSES

ADOPTED BY IIA)
The contracting system in private sector is not yet fully organised. The practice of
requisitioning the services of an architect for the management of engineering contracts has
recently gained its foothold, and is yet to receive wide acceptance. In this background the
salient features of conditions of Contract adopted by Indian Institute of Architects are
discussed below.
(i) Performance bond (Security deposit): Sum to be deposited as security is
mentioned in the appendix to each contract. This deposit is to be made with an
architect within 10 days of signing the contract in the form approved by the
architect and it shall remain till the defect liability period expires. Earnest money
will become a part of security deposit. Owner may retain from interim payments
some percentage as retention percentage till full deposit is recovered.
(ii) Damages for non-completion: Liquidated damages as mentioned in the
Appendix to the contract shall be recovered.
(iii) Determination of contract: Owner can determine the contract if contractor (i)
suspends the work, (ii) fails to give regular progress, (iii) fails to remove or rectify
defective work or materials, (iv) sublets the work without written permission, (v)
Bankruptcy Notice period is 14 days.
Contractor can determine the contract if the owner (i) fails to make payment
within specified period, (ii) interferes or obstructs issue of certificate for payment,
(iii) suspends work for a continuous period, (iv) force majeure, (iv) fails to issue
necessary instructions and drawings, and (v) fails to decide extension of time, etc.
(iv) Interim payment: To be issued by the architect within the period and payment to
be made by the owner as mentioned in the appendix to the contract.
(v) Completion certificate: The Architect is required to give several certificates
during the execution of work. These certificates mentioned below are of special
significance.
(vi) Virtual completion certificate: (Building is fit for occupation though some
minor works are yet to be completed)

(vii) Penultimate certificate: This certificate is issued to enable collection of fee by a
consultant from the contractor as prescribed in the agreement.
(viii) Interim and final certificates: Interim certificate provides for interim payment to
the contractors. It is to be honoured within specified period. Retention money is
recovered from interim payments vide clamed. Final certificate is issued to the
contractor after expiry of defect liability period reckoned from date of virtual
completion of work. On expiry of defects liability period plus one month for
notice and rectification of defects, contract can be rescinded.
Submission of all documents containing measurements and valuation• within a
reasonable time from the date of virtual completion of work whichever is later.
The final certificate may also authorise release of balance retention money.
(ix) Materials: Within 30 days of signing of agreement contractor shall submit for
approval of the Architect a complete list of all materials he and his sub-contractors
propose to use in the work of definite brand or make which differ in any respect
from those specified.
(x) Fluctuations: The contractor shall not claim any extras for fluctuation of price
and the contract price shall not be subject to any rise or fall of prices.
(xi) Variations: The Architect may issue instructions requiring a variation. Rates
applicable are, quoted rates of similar items, based on fair valuation, day work
rates or market rates.
(xii) Defective work: All materials and workmanship shall be subject to inspection,
examination and test by the Architect at any or all times during manufacture
and/or construction. The Architect shall have the right to reject either defective
materials or workmanship or work which requires any correction.
(xiii) Defect Liability Period: The contractor shall make good at his own cost and to
the satisfaction of the architect; all defects, shrinkages or small faults, arising in
the opinion of architect from work or materials not being in accordance with
drawings or specifications or schedule of quantities or the instructions of the
architect, which may appear within. Defects Liability Period (12 months) referred
to in the Appendix.
(xiv) Arbitration: All disputes shall be referred to and settled by the architect who then
states his decision in writing. Such decision may be in the form of a final
certificate or otherwise. The decision of the architect with respect to any of the
excepted matters shall be final and without appeal. If the decision of the architect
is not acceptable to either party, a notice shall be given within 28 days after
receiving the notice of the decision. The disputes or differences shall be referred
to sole arbitration of a fellow of Indian Institute of Architect mutually agreed by
the parties. In case of disagreement, each party shall appoint one architect (Fellow
of IIA) and both the arbitrators select an umpire. They shall have the power to
open up, review, and revise any certificate, opinion, decision requisition or notice
except excepted matters. The arbitration shall be conducted as per the Act in
force. (The Arbitration and Conciliation Act 1996).

(xv) Excepted Matters: The decision, opinion, certification (except for payment) with
respect to all or any of the matters mentioned below are final and without appeal.
These are termed as excepted matters:
Interpretation of drawings, specifications and bills of quantities
a) Architect's instructions in writing
b) Contractor's field organisation and equipment
c) Assignment or subletting
d) Approval of sub-contractors
e) Approval of materials and workmanship
f) Extension of time due to force majeure, inclement weather strike or lockout; an act of
God.
g) Delay caused by nominated sub-contractors or nominated suppliers.
h) Delay by persons engaged by the owner in executing the work not forming part of
contract.
• APPENDIX REFERRED TO IN GENERAL CONDITIONS OF CONTRACT
ADOPTED BY IIA
The Architect is required to fill in particular stipulation in the following clauses as applicable
to each tendered work.
37 (1) Defects liability period: 12 months
31 (5) Period of final measurement and valuation: 3 months
38 (1) Date of commencement
Date of completion
41 Agreed liquidated damages
31 (1) Value of work for interim certificate
31 (3) Retention percentage Limit of retention fund
31 (6) Instalment after virtual completion
31 (1) Period of honouring certificate - 15 days
Rate of interest for delayed payment 7%
• CERTIFICATION OF CONTRACTORS BILLS AT VARIOUS STAGES
Payment on intermediate certificates to be regarded as advance
Interim or running payments are made for works whose estimated cost is more than
Rs.20,000 provided that value of the bill is more than specified amount in the contract.
Payment of advances and recovery
(a) Secured advance on non-perishable materials: This advance is admissible on non-
perishable, non-fragile and non-combustible materials brought to site for bonafide use on
work. Advance is given up to 75% of its assessed value on signing of an indenture. For
perishable fragile and combustible material, comprehensive insurance cover for full cost of
materials is necessary. After the materials are incorporated in the work recovery is made from
the next running bill based on theoretical consumption.
(b) Mobilisation advance: Admissible for works whose estimated cost put to tender is rupees
two crores and above. Maximum advance is 10% of the tendered value of work. Advance is
paid in two or three instalments. Proof of utilisation of first instalment is necessary before
obtaining second instalment and so on. Advance is given against Bank guarantee bond.
Simple interest @ 10% per annum is to be paid. Recovery is made from deductions from the
running bills on prorate percentage basis to the gross value of the work billed beyond 10% of
tendered value in such a way that entire advance including interest is recovered by the time
80% of the gross value of the contract is executed and paid.
(c) Plant & Machinery and shuttering material advance: Advance is restricted to 5% of
tendered value. Advance admissible is further restricted to 90% of price of new plant and
machinery on production of evidence and to 50% of depreciated value for second hand and
used plants. Valuation by an approved person may be insisted in respect of old plant and
equipment. Around 75% of advance is paid when the plant is brought to site and 25% when it
is commissioned. Steel scaffolding and form work shall be treated as plant and equipment.
Recovery of advance is similar to that of mobilisation advance.
▪ NEW TRENDS IN PROJECT FORMULATION
BOT (build–operate–transfer)
BOT finds extensive application in infrastructure projects and in public–private partnership.
In the BOT framework a third party, for example the public administration, delegates to a
private sector entity to design and build infrastructure and to operate and maintain these
facilities for a certain period. During this period the private party has the responsibility to
raise the finance for the project and is entitled to retain all revenues generated by the project
and is the owner of the regarded facility. The facility will be then transferred to the public
administration at the end of the concession agreement, without any remuneration of the
private entity involved. Some or even all of the following different parties could be involved
in any BOT project:
❖ The host government: Normally, the government is the initiator of the infrastructure
project and decides if the BOT model is appropriate to meet its needs. In addition, the
political and economic circumstances are main factors for this decision. The
government provides normally support for the project in some form. (provision of the
land/ changed laws)
❖ The concessionaire: The project sponsors who act as concessionaire create a special
purpose entity which is capitalised through their financial contributions.
❖ Lending banks: Most BOT projects are funded to a big extent by commercial debt.
The bank will be expected to finance the project on "non-recourse" basis meaning that
it has recourse to the special purpose entity and all its assets for the repayment of the
debt.
❖ Other lenders: The special purpose entity might have other lenders such as national or
regional development banks.
❖ Parties to the project contracts: Because the special purpose entity has only limited
workforce, it will subcontract a third party to perform its obligations under the
concession agreement. Additionally, it has to assure that it has adequate supply
contracts in place for the supply of raw materials and other resources necessary for the
project.

FIGURE 3.7– PROJECT TRENDS
A BOT Project (build operate transfer project) is typically used to develop a discrete asset
rather than a whole network and is generally entirely new or Greenfield in nature (although
refurbishment may be involved). In a BOT Project the project company or operator generally
obtains its revenues through a fee charged to the utility/ government rather than tariffs
charged to consumers. A number of projects are called concessions, such as toll road projects,
which are new build and have a number of similarities to BOTs.
In general, a project is financially viable for the private entity if the revenues generated by the
project cover its cost and provide sufficient return on investment. On the other hand, the
viability of the project for the host government depends on its efficiency in comparison with
the economics of financing the project with public funds. Even if the host government could
borrow money on better conditions than a private company could, other factors could offset
this particular advantage. For example, the expertise and efficiency that the private entity is
expected to bring as well as the risk transfer. Therefore, the private entity bears a substantial
part of the risk. These are some types of the most common risks involved:
❖ Political risk: especially in the developing countries because of the possibility of

dramatic overnight political change.
❖ Technical risk: construction difficulties, for example unforeseen soil conditions,
breakdown of equipment
❖ Financing risk: foreign exchange rate risk and interest rate fluctuation, market risk
(change in the price of raw materials), income risk (over-optimistic cash-flow
forecasts), cost overrun risk
BOOT (build–own–operate–transfer)
A BOOT structure differs from BOT in that the private entity owns the works. During the
concession period the private company owns and operates the facility with the prime goal to
recover the costs of investment and maintenance while trying to achieve higher margin on
project. The specific characteristics of BOOT make it suitable for infrastructure projects like
highways, roads mass transit, railway transport and power generation and as such they have
political importance for the social welfare but are not attractive for other types of private
investments. BOOT & BOT are methods which find very extensive application in countries
which desire ownership transfer and operations including. Some advantages of BOOT
projects are:
❖ Encourage private investment

❖ Inject new foreign capital to the country
❖ Transfer of technology and know-how
❖ Completing project within time frame and planned budget
❖ Providing additional financial source for other priority projects
❖ Releasing the burden on public budget for infrastructure development
BOO (build–own–operate)
In a BOO project ownership of the project remains usually with the project company for
example a mobile phone network. Therefore, the private company gets the benefits of any
residual value of the project. This framework is used when the physical life of the project
coincides with the concession period. A BOO scheme involves large amounts of finance and
long payback period. Some examples of BOO projects come from the water treatment plants.
This facilities run by private companies process raw water, provided by the public sector
entity, into filtered water, which is after returned to the public sector utility to deliver to the
customers.
BLT (build–lease–transfer)
Under BLT a private entity builds a complete project and leases it to the government. On this
way the control over the project is transferred from the project owner to a lessee. In other
words, the ownership remains by the shareholders but operation purposes are leased. After
the expiry of the leasing the ownership of the asset and the operational responsibility are
transferred to the government at a previously agreed price. For foreign investors taking into
account the country risk BLT provides good conditions because the project company
maintains the property rights while avoiding operational risk.
DBFO (design–build–finance–operate)
Design–build–finance–operate is a project delivery method very similar to BOOT except that

there is no actual ownership transfer. Moreover, the contractor assumes the risk of financing
till the end of the contract period. The owner then assumes the responsibility for maintenance
and operation. Some disadvantages of DBFO are the difficulty with long term relationships
and the threat of possible future political changes which may not agree with prior
commitments. This model is extensively used in specific infrastructure projects such as toll
roads. The private construction company is responsible for the design and construction of a
piece of infrastructure for the government, which is the true owner. Moreover, the private
entity has the responsibility to raise finance during the construction and the exploitation
period. The cash flows serve to repay the investment and reward its shareholders. They end
up in form of periodical payment to the government for the use of the infrastructure. The
government has the advantage that it remains the owner of the facility and at the same time
avoids direct payment from the users. Additionally, the government succeeds to avoid getting
into debt and to spread out the cost for the road over the years of exploitation.
DBOT (design–build–operate–transfer)
This funding option is common when the client has no knowledge of what the project entails.
Hence theycontract the project to company to design, build, operate and then transfer.
Example of such project is refinery construction
DCMF (design–construct–manage–finance)
Some examples for the DCMF model are the prisons or the public hospitals. A private entity
is built to design, construct, manage, and finance a facility, based on the specifications of the
government. Project cash flows result from the government's payment for the rent of the
facility. In the case of the hospitals, the government has the ownership over the facility and
has the price and quality control. The same financial model could be applied on other projects
such as prisons. Therefore, this model could be interpreted as a mean to avoid new
indebtedness of public finance.
Note: Assignment
- Bills of Quantities and specifications

- Examples for new trends in project formulation


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REGULATION

[UNIT III - TENDER & CONTRACT]

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

- EMD of contractors whose tenders are not accepted will be refunded.

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

Construction bidding is the process of submitting a proposal (tender) to undertake, or

Pre- bid conference

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

FIGURE 3.1 COMPOSITIONS OF BID-RATES

1. Interest and bank guarantee charges

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

Twelve steps to be considered before bidding by the tenderers

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

• Result in more profitable contracts

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

FIGURE 3.3OBJECTIVES OF CONTRACT MANAGEMENT

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

FIGURE 3.4 OBJECTIVES OF OWNER AND CONTRACTOR

In many organisations objectives are structured in a hierarchy of importance. There are

FIGURE 3.5 HIERARCHIES OF OBJECTIVES

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

FIGURE 3.6TYPES OF CONTRACT

Classification of engineering contracts

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

This method of contract is adopted for:

(i) emergency works

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

This involves demolition of existing building/buildings completely and removal of the

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

Selection of a contractor by nomination is adopted for works of small magnitude or for

• CONTENTS (ARTICLES OF AGREEMENT, TERMS AND CONDITIONS,

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

For extra reading:

S. No. Description of Quantity Unit Rate (Z) Amount

Total Tender Price (in figures)

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

• TERMS AND CONDITIONS(SUMMARY OF SOME CRITICAL CLAUSES

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

SOURCE: PROFESSIONAL PRACTICE, K.G.KRISHNAMURTHY &

❖ Political risk: especially in the developing countries because of the possibility of

❖ Encourage private investment

Design–build–finance–operate is a project delivery method very similar to BOOT except that

- Bills of Quantities and specifications