Tendering

• An offer to carry out work,

supply goods or buy land,
shares or another asset.
• It is an invitation from the
owner to the contractor to
execute some work at
specified cost in specified
time.
• It is published in the form
of tender notice in
newspapers, notice boards
etc according to the cost of
works.
 Who floats a tender?
• Buyer – Can be either government or a large private
company. Tendering done when they need to buy
goods, hire service or construct something.

• Seller – Can also float tender for selling used

machinery, scrap or surplus products.
 Why tenders are published?
• Mandatory for government organization from
transparency point of view.
• For wider publicity and ensure higher and better
responses from across the world.
• To ensure everyone gets equal opportunity to
participate.
• Cost of publishing tender is high and same is
recovered from bidder by means of selling them
tender document fee.
 Types of tender
• Open tendering
• Select tendering
• Multi-stage tendering
• Invited tendering
Others
• Limited or closed tender
• International competitive bidding
• National competitive bidding
 Tenders can be issued through
• Expressions of interest – used to shortlist potential
suppliers before seeking detailed offers.
• Request for information – used in planning stage to assist in
defining the project however not used to select suppliers.
• Request for proposal – used where the project requirement
has been defined but an innovative or flexible solution is
needed.
• Request for quotation – invites businesses to provide a
quote for the provision of specific goods or services.
• Request for tender – an invitation to tender by public
advertisement. Open to all suppliers.
 Tender procedures
• Submission of tenders
• Opening of tenders
• Comparative statement
and briefing note
• Constitution of TC
• Acceptance of tender
• Signing of agreement
• Custody of security
deposits
 RFx
• RFP
• RFQ
• RFI
• EOI
• Single envelope bidding
• 2 envelope bidding
• Multiple envelope bidding
• Pre bid meeting
• Corrigendum
• Addendum
 Comparative Statement
• A comparative statement is a document used to compare a
particular financial statement with prior period statements.
• After the tenders/quotations have been opened, the
comparative statement of rates is prepared in each case. It is
the duty of the Dealing Assistant to fill up- all the relevant
columns very clearly and meticulously.
• The comparative statement is checked by Head Assistant.
Both the Assistant and Head Assistant affix their signatures
on the comparative statement in token of having prepared
and checked the same.
• Tenders are to be evaluated strictly on the basis of terms and
conditions incorporated in the tender.
..
 ..
• If the offers have been received in different currencies the quoted price should be converted
into single currency.
• Comparison should not only be on the basis of price but also on the basis of terms and
conditions of the contract, delivery period, taxes and duties applicable, freight insurance,
inco-terms etc.
• Level playing field to all bidders.
• Proper ranking.
• While purchasing sophisticated and costly equipments or machinery emphasis should be
give to factors like high quality performance, environmental friendly features, low running
cost, low maintenance cost etc.
Format of