UNIT IV TENDER & CONTRACT

TENDER
Tender – definition

Tender is a formal offer of a notice to do a particular job or construction of buildings. The

procedure of inviting a tender is either by letter to the contractors or by advertisements or by
advertisement in the news paper or through the electronic media, called e-tender. The tender
invitation contains the conditions of contract and mention the expertise needed to take part in the
bidding.

E- TENDER

E-tender are tender utilizing the advantage of the electronic media. Companies advertise in the
news paper or in electronic media inviting on line electronic bids. E-tendering the notice
mentions name of the web site to down load the tender documents indicating cost of the tender
document to be paid on line. Online e-tendering saves time and paper work.

CONDITION OF TENDER NOTICES

1.Contains the required experience for accepting the tender.
2. Mention that the contractors should visit the site to acquaint himself of the site conditions
before filling the tender.
TENDER NOTICES – ESSENTIAL FEATURES

1. It contains name of the owner

2. Indicates nature and scope of work
3. Value of words
4. Cost of tender document
5. Mode of obtaining, either by post or in person or downloading in web site
6. Last date of obtaining and submitting the tender document.
TENDER DOCUMENTS
1. Tender Notice
2. Special Notice
3. Letter of Offer
4. Special conditions
5. Form of contract with conditions.
6. General Specifications
7. One set of Building plans
8. One Set of R.C.C plans
9. Bill of Quantities (OR)
Detailed description of work for tender on lump-sum basis. (OR)
Unit of S.M. Basis: which at time takee form of “Supplementary specifications’
TYPES OF TENDER

1. Open type tender

2. Closed type tender
3. Item rate tender
4. Lump sum tender
5. Labour Tender
6. Tender for Demolition work
Open type tender

1. Open tender allow any persons to bid.

2. Open tender are wide open to bidders without any restrictions
3. It is open to all irrespective of their experience or financial status.
4. One advantage in open type tender is it gives opportunity to new entrants who are talented
and have the requisite infrastructure to execute the work

Closed type tender

Closed type tender invites select persons who have been identified to meet or close to the
requirements of the project. Tender specification mention some restrictive condition to take
part in the bidding.
Item rate type tender

Building construction consists of different items of work, such as excavations, foundation,

concrete works, brick work, etc…, each item of work is quantified and bills of quantities are
prepared with specification and the rates for executing the works.

Contactors are required to fill in their rates for each item of works. The quantities are
measured during execution of works and the contractors is paid at the rates quoted by him.
The method is called item rate tender.

In item rate tender, variation in bills quantities are limited to a percentage increase
mentioned in the estimate as contingencies. One disadvantage in tem rate tender is variation
in the quantities mentioned in the bills of quantities might result in increase in the projected
cost of the estimate completion of works
Lump Sum type tender
• Contractors is required to quote a fixed lump sum amount in lump sum type of tender.
Tender document contain plans , elevations and section of the building works to be
executed along with the quantities and specification for each item of work.
• Based on the specification and quantities of each item of work, the contractor work on the
likely cost of each item of work for a fixed sum or at a rate per square feet
• The condition of contract stipulate the terms of payment for the work to be carried out.
From time to time he is either paid for the works completed or on completion of certain
items of work.
• Advantage in lump sum tender is the cost factor is fixed, provided that there are no
variations in the cubic contents ar the area od construction
• In lump sum tender, work load for the architect for checking and certifying bills is
minimized.
Labour tender
• Contractor agrees to carry out the complete labour work of all items of the work at the rates
quoted by him
• Contractor has to supply all the tools – plants, scaffoldong, ccentering materials, etc., and
the owner supplies only the materials required for the construction work.
• The contractor is responsible for line level and setting out of the work
• Labour Tender generally includes the labour work for the construction of water tank for
storage of water required for construction purpose as well as labour work for putting up
temporary shed for office and cement godown of reasonable size.

Labour tender – Advantages

•Savings in the cost of work

•Disputes are reduced to the barest minimum
•Workmanship is good and design of work not affected
•Architect’s worry for certifying of the materials is eliminated
Demolition tender
• Tenders are usually called for the demolition of the existing building up to ground level or
up to road level and removal of all the materials of the same including carting away of the
debris.
• These tenderer usually takes away all the materials that are there in the old buildings and in
turn he pays a specified amount to the owner