Contract

Content of the contract

 Contract Document
Title Page: having the name of the work etc
Index Page: Having the contents of the agreement

Tender Notice: giving brief description of the work, estimated cost of the work,
date and time
Tender form: Giving the bill of quantities, contractors rate and total cost of the
work, time of completion, progress of the work, security money, penalty clause, etc

Bill of quantities: giving the rate of each item

Schedule of issue of material: list of material to be issued to the contractor with
rate and place of issue

General specification
Detailed specification
Drawing

Condition of contract: Rate inclusive of material, transport , amount of security

money, time of completion, progress to be maintained, penalty for unsatisfactory
work, Mode of payment, final payment, rules of employment, minimum wages to
labour
 TENDER
 An offer to contractor to do the work for a certain amount of money
 incorporate time and other conditions required to carry out the contract
requirements
 main reason is to complete a project
 The tender which is submitted by the contractor is generally based on a bill
of quantities & specifications of the statement of work
Difference between tender and contract
The term tender formally means an invitation to trade under the terms of offer.

A contract is the term used when 2 parties have reached agreement.

The process of finalization of contracts is achieved through the tender process.

Advantages of the Tender process

Most effective method of locking competitive rates.

New technologies and options are received through open tender process.
Earnest Money Deposit (EMD)
•Earnest Money Deposit (EMD) means Bid Security/ monetary or financial
guarantee to be furnished by a Bidder along with its tender.
•EMD deposited by the unsuccessful tenders will be refunded by way of handing
over the original Demand Draft/ Bankers Cheque duly endorsed by the Competent
Authority of the Centre.
•The Earnest Money of the Successful Tenderer will be adjusted against the
Security Deposit to be recovered from the running account bills.
•It is about 2% of the estimated cost.
Security Money Deposit
•On acceptance of the tender, the contractor has to deposit 10% of the tendered
amount as a security money which is inclusive of the earnest money already
deposited.
•This amount is kept as a check so that contractors fulfils all the terms and
conditions of the contract and carried out all the works as per specification.
• The security money is refunded to the contractor after satisfactory completion of
whole work after a specified time, usually after one rainy season or six months of
the completion of work
 TENDER NOTICE
The Tender Notice is a
brief description of the job
being tendered
1. Name of the Project.
2. Name & Address of the
Company offering the tender.
3. Name of work, materials or
services.
4. Place of work location.
5. Approximate estimated cost of
work.
6. Earnest Money.
7. Period of completion.
8. Date on which the Tender
Document sale commences
9. Date and time up to which
tender documents can be
obtained.
10. The cost of tender
documents.
11. Due date of submission