Tender

What is a tender.. ?
A tender is a offer made by one party to another party for execution of a specified work at an accepted
cost as per the conditions laid in the tender document.
calling for tenders ..
1. By private invitation
2. By public notice
3. By negociations
1.Private :
• Call for tenders on selection basis
• Only a few are invited to quote the cost form the panel of contractors list
2. Public:
• Advetise in a news paper
• Anybody with eligibility can quote.
3. Negotiation:
• Usually done for a small/portions / or incomplete job. Contractors called in an negotiate with
them in person before assigning the work for them.
4.tender documents
• The tender document plays a key role in the entire process of tender.
Normally consist of -
1. The tender notice
2. Any other special notice /circulation/m.o.u
3. Letter of offer
4. Conditions of execution
5. Specification of work
6. One set of blg. Drawings
7. All bills of quantities/ quotations/etc. Any other relavant records.
Types of tender
1. Open tender
2. Closed
3. Item rate
4. Lumpsum
5. Labour
6. Demolition
Conditions of tender /submission of tender
1. Rate
2. Time limit
3. Drawing issued are clear and without ambiguity
4. Bill of quantities shall be accurate
5. Anyother spacific conditions like special teratments must be clearly indicated
6. Site particulars. All detailed one
7. Site visit on their own
8. Earnest money deposit ? .
The money to be deposited has an initail deposit to be sent along with the tender application to
show the genuineness of the contractor mosttly it will be within 1-2% of the estimated cost, which
will be added to the security deposit if selected or refunded fot those who were not selected
9. If selected he/she shall not withdraw the acceptance.
10. Not always the lowest is prefer in private tenders.
Security deposit
When a tender of a particular contractor is accepted then he may be asked to deposit an ammount
of 2-5% of the total cost as the precautionary measure so that their deposit will be a security for the
completion of work

The earnest money may be added upto the security amoount if needed.
Retention amount
If the security deposit is paid in instalment the amount gets retentioned with the client and finally
one day fullfills the required amount . This amount retentioned is called as retentioned amount.

Tender notice

• The offer issued to the contractor by means of a notice is called tender notice.

Esssential characteristics of a tender notice-

1. Tender notice must mention the name of the owner, the place , nature and extent of work
and the estimated cost
2. Earnest money and tender fees
3. Minimum time for close of tender
4. Date of opening of tender
5. Place of tender/opening and closing
6. The site visit terms and condition
7. Any discussion if any
8. Any addition if any
9. Any other important matters

Sample tender notice

• Opening of tender
1. Tender shall be opened on the specified time and date.
2. Should be opened in presence in presence of owner\architect\engg\committe\members\
officials \ must collected.
3. The list of tender and deposits must be enlisted and put on for notice
4. The security by the committee or architect, the final lowest shall be accepted and declared.

Acceptance of tender

1. The contractor shall be informed about his selection

2. Agreement of contract shall be signed
3. Time limit for the works shall be discussed
4. Clarifications on drawing and site shall be carried out
5. The offer gets expired if it’s not accepted in time
6. In case of any ambiguity \fraud\misguidance, the contractor shall be paid on “quantum merit”.
7. The deposit of other must be defrauded
8. Work order shall be issued
 Contract
1. No specific act\ calling pertaining to building alone.
2. Iia framed legal acceptable frame work for contract which is followed by all.
3. Indian contract act 1972
• Promise(owner or employer)
• Promiser (contractor)
4. Mode of acceptance of contract is from tender by filling an agreement form

• Executions of contract
as per agreement\ on stamp paper with specification and dwg.s provided by the architect \ duly
signed with resonable satisfactions of the architect
• Contract void
• Any contract becomes void when
• Mis representation
• Fraud
• Mistakes
Classification of building contract
1. Lump sum contract
2. Item rate contract
3. Labor contract
4. Demolition contract
• Contract execution - Persons involved in execution
• Contractor
• Sites supervisor
• Supplier
• Store keeper
• Clerk of works
• Project manager
• Consultants
• Engineers
• Architects
• Client\ owner
• Duties of various caders in contract execution
• Resident engineers
• Site supervisor
• Project manager
• Suppliers \ contractors
• Sub contractors
• Resident architects
• Consultants architects
• Role of an architect in the execution
• To supply the working drawing in proper time
• To check the quality and quantity of materials specified through his sub-contractors before
execution
• To adhere to the rules and regulations to the contract act or any other act.
• To check and correct bill of quantities
• To ensure the safety and security of execution as per norms
• To appoint clerk of works and site supervisor as per his convenience
• To appoint consultants with respect the work specified
• To inspect the building progress periodically
• Clerk of works
• The person appointed by the architect on his behalf to monitor and compute the day to day
affairs of the execution who invariably brings credit to the architect
• Bill of quantities
• Set of collection of bills for the entire work specification put forth together for passing the bill by
the architect to the client for passing the payment is referred as bill of quantities.
• Rate of inflation:
• A common amount say 5% to 18% may be added as a rate of inflation as the case may be
depending upon the market assessment may be refferd as rate of inflation.
• Architects role- cont. :
• To act as a agent of the owner
• To act as a interpreter of the contractor
• To act as a quassi-arbitator
• To pay the contractor as per the noms\from the client as per the agreement
• To change or amend any new changes from the previous drawings.
• To understand the inflation of any
• To solve the minimum disputes at the site and supplies
• To contribute the various co-workers any consultants so as to maintain the speed and quantity
• To issue the certificate of completion
Contract document:
• Consists of -
1. Articles of agreement
2. General conditions of contract
3. Bill of quantities
4. Specifications and drawings
5. Work progress report
6. M-book
7. Additions and alternations
8. Pert \ cpm chart etc.
Pre- requistes :
• Contractors can do the following before the start of work
• The nature of approach to the site
• Means of communication to the site
• Soil character and s.b.c
• Nature of excavation
• Any other matter-relevant
• Drinking water facilities for the workers
• Labor rest room \ stay facilities etc.