PROCESS OF TENDER

Presented by:- Abhinav, Adityan, Afreen, Amir, Gursharan, Hamdan, Mayank, Salman, Sumaiya, Talha
 WHAT IS A TENDER ?

• A tender can be said as an offer to do work or supply goods at a fixed price.

• A written invitation sent to potential suppliers of a good or service to inform them about
the information required for the buyer to choose among them.
• Issuing a tender document typically begins the tender process by which a business selects qualified and
interested suppliers based on such things as their price, availability and proposed delivery terms.
 WHAT IS THE PROCESS OF TENDER?

• The tender process is designed to ensure that the work to be done for client/government is given out in a fair way.
• Although price is very important in the decision on which tender or bid to accept, it is not the only factor taken into
account.
• Once client/government accepts a tender, it is binding on both parties. This means that the person or company that won
the tender has to provide the goods or services in the manner agreed to and at the price offered, and client/government
must pay the agreed price at the agreed time.
• Each year, federal, state and local governments invite the private sector to submit competitive bids for the supply of goods
and services. Government tender requests attract small, medium and large businesses across a wide range of sectors - from
office supplies to major construction projects.
• Tender processes in the government sector share many common elements. What follows is an overview of the main steps
we should take to prepare a competitive tender.
• Conventional tendering process will involve pre-tender stage, tender advertisement stage, closing of tender, tender
opening process, tender evaluation process and finally tender award.
• Electronic Tendering is carrying out the traditional tendering process in an electronic form, using the internet
 MAIN STEPS IN THE TENDER PROCESS

Prior to initiating the tendering process, buyers will discuss the key elements involved in the tender process. It is crucial that
Supply Management and departments both agree to the following before issuing the tender:
 Most suitable tendering format to be used (ie, Request For Proposal, Request For Bid)
 Selection criteria and evaluation process
 Vendors to be included/excluded
 Vendor requirements
 Minimum generic specifications to be included
 Essential terms and conditions to be included in the
tender documents
 Clarification of the responsibilities and roles of both
departments during and after the tendering process.
 End user concerns with respect to any of the vendors
or with any aspects of the bidding process
1. Tender process is determined/ Pre-tender Stage :
• The organization requesting the tender will determine the type of tender that will be used, as well as what will be involved
in the tender process.
• At pre-tender stage, when the clients have an idea, client will appoint consultant to discuss further about the project
• At this stage client and consultants will brainstorming about the scope, time to complete and budget that client willing to
allocate.
• Researcher believes that pre-tender stage is most crucial matter because it will initiate the next step of a project. If the pre-
tender stage is failed, the project will not successfully complete.
Tenders can be issued through:

• Expressions of interest (EOI) - used to shortlist potential suppliers before seeking detailed offers.
• Request for information (RFI) - used in the planning stage to assist in defining the project, however, not used to select
suppliers.
• Request for proposal (RFP) - used where the project requirements have been defined, but an innovative or flexible solution
is needed.
• Request for quotation (RFQ) - invites businesses to provide a quote for the provision of specific goods or services.
• Request for tender (RFT) - an invitation to tender by public advertisement open to all suppliers.
2. Request for tender is prepared:
• The request for tender outlines what is required, the contractual requirements and how you should respond.
• There are many different terms for tender requests, and each may have slight differences, with the most common being
request for tender (RFT) and invitation to tender. Other terms include request for proposal (RFP), expression of interest
(EOI), and call for bids etc.
• The documents themselves will vary between organisation to organisation, but common elements of tender request
documents include:
• Description of the goods and services to be procured: this will include what the work will involve, and any technical
specifications or details relating to requirements, deliverables or outcomes of the project.
• Conditions of tender: this stipulates the terms and requirements that must be met in order to be considered for the
project or contract. There may be technical qualifications, experience, licensing, legal or financial conditions that
ought to be met in order to be eligible.
• Evaluation criteria: this outlines how the submission will be assessed and evaluated. This should be adhered to and
used as a guide when preparing your tender submission.
• Submission content and format: details may be provided on how you should present your submission. There may
be specifications relating to length of submissions, file format, presentation etc. Templates or response forms may
also be provided. It is important to use these when available, and adhere to format and presentation instructions.
• Process rules and information: this may include things such as the deadline for submission; where and when it
should be submitted, what should be included in the submission; for example pricing information or schedule, and
person(s) to contact for clarification or enquiries regarding the tender.
• Conditions of Contract: Draft contract conditions: this may indicate the general or standard terms and conditions of
the contract, with additions or alterations made when a winning tender is announced. This should also include any
non-standard terms and conditions - these should be highlighted within the tender documents.
3. Tenders are invited :
A preliminary procedure inviting tenders from interested contractors. Unless the Invitation to Tender states otherwise, it
generally does not amount to a binding offer.
Tender Advertisement
Tender advertisement also called tender notice. The conventional tender notice will advertise in local newspaper. In tender
notice, basic requirement should be appearing are:
• Title of the project.
• Class of contractor, head and subhead needed.
• Location, date, and time to obtain the tender document.
• Fees for tender document.
• Location, date and time for submission of tender doc.
4. Response from suppliers:
All relevant documentation are obtained in the right format , on time and at the right location.

5. Closing of tender
In tender notice will mention the time and date of tender closing process. If the contractors fail to submit their bids within
specific time and date, it considers the contractors refuse to bid for the tender. At that time also tender validity period is
started. At this period, contractors can withdraw back their bids if they are no more interested to fight for the tender.
Consultant use this period to make assessment and evaluation each of the offers.

6. Evaluation and selection:

• Once tenders have been submitted and received, they are then evaluated. This process involves an assessment of tenders
against the criteria referred to in the Request for Tender or invitation documents, as well as an analysis of the strengths
and weaknesses of the submitted tenders.
• Each tender will initially be assessed to determine if it complies with all requirements of the tender document, i.e.
o Complies with any conditions of participation.
o Tender has been lodged on time.
o Documents are signed as required.
o Tender meets all mandatory requirements.
• If the tender does not meet this initial check, it is deemed as non-compliant and will be excluded from further
consideration.
• If the tender pass the initial compliance check then it will proceed to be considered against the tender selection criteria.
The selection criteria that your tender will be evaluated on may include:
o The technical merit of your proposal,
 o The capability of your business to fulfil the requirement including: technical and management competence, financial
viability and relevant experience,
o The relevant skills, experience and availability of key personnel,
o Quality assurance requirements, and
o The risks or constraints associated with your offer.
• Many organisations, including Government agencies, also assess tenders based on ‘value for money'. The costs and benefits
of your tender will be assess other factors such as:-
o Fitness for purpose
o Maintenance and running costs
o Risks
o Warranty
o Quality, Environmental and safety considerations
o Energy conservation
o Disposal Value
o Capacity of the supplier
o Wider benefits to the customer
o Creating strategic partnerships
o Payments terms

• Once the evaluation process is complete, a tenderer will be selected, and notified of their successful tender. Other
tenderers will also be notified of their unsuccessful submission.
• Once the evaluation process is completed and a tender submission is selected, the successful tenderer will be notified of
the outcome and awarded a contract.
Unsuccessful Tenders
• Once the tendering evaluation process has been completed, tenderers will be notified of whether their tender submission has
been successful or not. If you are unsuccessful, you may be provided with a debriefing of your submission. Alternatively, you
may be able to request a debriefing.
• It is a good idea to make full use of the tender debriefing as it will assist you in preparing more competitive tenders in the
future. One can gain valuable feedback on the strengths and weaknesses of the submission, any areas that may need
improvement, as well as how to enhance the tender submissions. It also provides with an opportunity to ask questions and
address any concerns.
• Debriefings will help improve your chances of winning future tenders.
• The debriefing gives the opportunity to ask questions, raise complaint,
and possibly resolve the issue. Further, the debriefing may provide
information on how to process and follow up a complaint, as the
organisation may have procedures for reviewing tender process.

7. Notification and debriefing:

When a contract has been awarded, the successful tenderer will be advised in writing of the outcome. Unsuccessful tenderers
are also advised and offered a debriefing interview.

8. Contracts established and managed:

Generally a formal agreement will be required between the successful tenderer and the relevant agency. Once we have been
notified that our tender is successful and have been awarded the contract, it is important to meet all requirements and
manage the contract effectively.
REFERENCES
• http://www.ukessays.com/essays/construction/types-of-tenders-and-tendering-process-construction-
essay.php#ixzz43VA4aEfA
• Procurement in the Process Industry, A Lester and A Benning 1989
• Purchasing and Supply Chain Management, Kenneth Lysons and Brian Farrington (Seventh Edition) 2006
• http://www.eib.org/epec/g2g/iii-procurement/31/314/index.htm
• India.gov.in
 HINDUSTAN PETROLEUM CORPORATION LIMITED
ENGINEERING & PROJECTS GRESHAM ASSURANCE HOUSE,
2ND FLOOR, SIR P M ROAD, FORT, MUMBAI-400 001

TENDER DOCUMENT FOR CONSTRUCTION OF MULTI STOREYED OFFICE BUILDING AT VIBHUTI KHAND,GOMTI
NAGAR, LUCKNOW, U.P
INDEX
1 INSTRUCTION TO BIDDERS
2 PREAMBLE TO SCHEDULE OF QUANTITIES
3 SCHEDULE OF QUANTITIES
4 UNPRICED BID
5 TIME SCHEDULE
6 SPECIAL CONDITIONS OF CONTRACT
7 TECHNICAL SPECIFICATIONS
8 APPROVED MAKES
9 HEALTH , SAFTEY & ENVIORNMENT
10 GENERAL TERMS & CONDITIONS OF CONTRACT
11 PROPOSAL FORMS
12 DRAWINGS
1 INSTRUCTION TO BIDDERS
PART-A PROJECT DESCRIPTION/ SITE INFORMATION

• Hindustan Petroleum Corporation Limited (hereinafter referred to as "HPCL"), proposes to construct new office
building with maximum possible GRIHA rating ( min 3 star) for its North Central Retail Zone at Lucknow (Uttar
Pradesh).
• The site addresses is as below:
Hindustan Petroleum Corporation Limited 13TC V/V Vibhuti Khand Gomti Nagar, Lucknow-226010, Uttar Pradesh
1 SCOPE OF WORK
The brief scope of work comprises of, but not limited to, the following
A. Construction of a RCC building with (Basement + Stilt+7) storied and other associated works with the Building like
External Development, Boundary Wall, Transformer/DG Foundation, Service Rooms , other ancillary civil works, etc.
B. External cladding /finishing works
C. Public health engineering works which includes piping and allied works for drainage, sewerage, wash rooms/toilets,
pumping system etc. for the entire facility.
D. Fire Safety Provisions including fire water sprinklers, pumps, etc.
E. Compliance to Green Building norms as per assigned GRIHA criteria.
F. Passenger Lifts, Car lifts and stacked car parking.
G. Miscellaneous works including site office and other common items as per Schedule of Quantities.
• Bidder should submit a detailed work plan incorporating work schedule for different jobs in manner so that work can be
completed as per time schedule mentioned.
• All the safety precautions should be taken while executing jobs at site such as excavation, work at height etc., All necessary
Personal Protective Equipment such as helmets, shoes shall be arrange by the Contractors for their laborers as per the
directions of Engineer and the quoted rates shall include cost towards all the above

SUBMISSION AND OPENING OF BID

• This is only a Price Enquiry (Invitation to Offer) and not an Order.
• The bidder shall take utmost care of the following:
• The Bid shall be submitted in two parts namely, UNPRICED and PRICED Part, respectively.
• Technical and Un-priced Part of the Offer will be opened by HPCL as per the due date and time mentioned in the
tender notice online. The Priced part of the Offer will be subsequently opened on line of techno- commercially
qualified bidders after appropriate intimation.
• For details, bidders are advised to study the E-Tender terms and conditions attached separately along with tender.
• The bidding document shall be read in conjunction with any amendment issued subsequently.
VALIDITY OF OFFER
• Bid submitted by Bidder shall remain valid for a minimum period of 04 (Four) MONTHS from the due date/extended due date
for submission of Bids. Bidders shall not be entitled during the said period of six months, without the consent in writing of the
Owner, to revoke or cancel their Bid or to vary the Bid given or any term thereof. In case of Bidders revoking or cancelling their
Bid or varying any of the terms in regard thereof without the consent of Owner in writing, Owner shall reject such Offers and
forfeit Earnest Money paid by them along with their offers.
• Bidders are advised to refrain from contacting by any means HPCL and/or their employees / representatives on their own, on
matters related to Bids under consideration. HPCL, if necessary, will obtain clarification on the Bid by requesting for such
information/clarifications from any or all Bidders, either in writing or through personnel contact. Bidders will not be permitted
to change the substance of Bids after opening of Bids.

CONFIDENTIALITY OF DOCUMENTS
Bidder shall treat the Bidding Document and contents therein as private and confidential and shall not use the Bidding
Document for any other purposes.
APPLICABLE LANGUAGE
The bid prepared by the bidder, all correspondences and documents related to this bid shall be written in English language only.
For document submitted in any other language, an English translation shall also be submitted, in which case, for the purpose of
interpretation of the bid, the English translation shall govern.
CAUTION AND DISCLAIMER
Transfer of Bid document by the bidder is not permitted.
Bidder shall make his own interpretation of any and all information provided in the Bidding Document. HPCL shall not be
responsible for the accuracy or completeness of such information and/or interpretation.
DEVIATIONS TO TENDER REQUIREMENTS
• The bidders are required to submit offers strictly as per the terms and conditions/specifications given in the Bidding
Document and not to stipulate any deviations.
• The offer of bidders stipulating deviations to any of the following terms/conditions of the Bidding Document shall not be
considered for price bid opening.
i. Security Deposit [Clause No. 4 (b) of GCC]
ii. Defect Liability period (Clause No. 5.n of GCC)
iii. Suspension & Termination (Clause No.5e & 12 of GCC)
iv. Increase in Time Schedule of Completion
v. Liquidated Damages (Clause No. 10 of GCC)
vi. Force Majeure (Clause No. 13 of GCC)
vii. Scope of work
viii. Validity of offer
ix. Retention Money (Clause No. 7.c of GCC)
x. Deviation in payment terms
xi. Firm Price (Clause 3.3 & 3.4 of SCC)
The Contract document/PO shall consist of the following:
• Original Bidding Document along with its enclosures issued.
• Addendum/Corrigendum to Bidding Document issued, if any.
• Fax/Letter of Intent.
• The detailed Letter of Award/Acceptance along with Statement of Agreed Variations (if any) and enclosures attached
therewith.
The Tender shall accompany the following information and documents:
a) A detailed program for all Works in the form of a CPM chart showing the Tenderer‟s proposed sequence of operations
together with the estimated time for each activity, including preparation of shop drawings, supply and installation to ensure
adherence to the overall completion period as indicated in the documents in line with the compulsory milestones provided in
the tender.
b) Full details of any special methodology or technique, the Tenderer proposes to use.
c) The Tenderer‟s proposals for supervising the work and supervisory personnel / other staff proposed to be deployed
during the execution period.
d) Schedules of labour requirements showing category-wise break-up of the labour force, for each month of execution
period.
e) True copy of latest Income Tax and Sales Tax Clearance Certificates and license under Labour Regulations issued by the
competent authorities in favor of the Tenderer.
f) The tenderer shall attach to his tender a copy, duly authenticated by a notary, of the documents containing the
constitution of the consortium, company or firm by which the Tender is submitted so as to indicate by what persons and in
what manner a contract may be entered by the consortium, company or firm and what persons would be directly responsible
for the due performance of the contract and can give valid receipt on behalf of the consortium, company or firm.
g) List of all the works in hand at the time of tendering along with tendered cost, agreed completion date and percentage
progress achieved for each of the said works
h) List of proposed sub contractors / associates, if any, along with their credentials in respect to the trades of works.
i) Information regarding any changes from the previous submission made by the Tenderer for prequalification in respect of
following aspects.
- Details of business and technical organization.
- Financial resources.
2. PREAMBLE TO SCHEDULE OF QUANTITIE
• The quoted rate shall be all inclusive and cover the cost of material including
wastage, freight, all types of taxes, duties, royalties, erection, construction,
testing of materials, samples brought for approval, tools and tackles, plant
and equipments, supervision, overheads, profit and any other expenditure
incurred for completion of work as per drawings, specifications and to the full
satisfaction of HPCL/Consultants.
• The rates quoted shall be valid for working at all heights, depths and on all
floor levels. No extra payment shall be made for scaffolding, staging, ladders,
etc., for transportation of men and material at higher or lower levels.
• The contractor will have to carryout the work in accordance with the
drawings, technical specifications and / or other conditions laid down in
tender document and to the full satisfaction of HPCL / Consultants.
• HPCL / Consultants reserve right of operating any item for any work on any
floor.
• Rates for doors shall include all hardware brass/stainless steel Heavy duty
hardware, locks, special door handles, door buffers etc. as specified in relative
items.
• After completion of work the site shall be handed over absolutely clean, after
ensuring that all floors, walls, toilets, site area etc. are spotless clean.
• Unless otherwise mentioned explicitly in this tender document, the method
of measurement will be as per I.S. 1200
• Wherever contractor proposed to use "equivalent" makes (i.e. other than
specified) he shall obtain corporation's prior approval.
• All materials which shall be brought on site shall be of approved make &
manufacturers failing which payment shall be deducted suitably from every
running bills/final bill.
• HPCL /Consultants reserve the right to suggest or make modification at the
prototype /mock-up stage which the contractor shall comply with without
any extra cost.
3. SCHEDULE OF QUANTITIES
UNPRICED BID
TIME SCHEDULE
APPROVED MAKES
PROPOSAL FORMS
DRAWINGS