RAJEEV INSTITUTE OF TECHNOLOGY, HASSAN

SUBJECT: CONTRACT
MANAGEMENT
Topic: TENDER
Lecture By:
HARSHITH H J
Assistant Professor
Department of Civil Engineering
 TENDER

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 news papers, notice boards, gussets,
etc. According to the cost of works.
 TYPES OF TENDER

1. SINGLE TENDER: When only one source of supply is available then

single tender is addressed to the selected supplier.

2. LIMITED TENDER: This type of tender is addressed toa limited number

of suppliers, who are the reliable source of supply.

3. OPEN TENDER: Is open to all the suppliers within the country who can
supply the required quantity and quality of materials. Such invitation is
made by advertising in newspapers, journals etc.,

4. GLOBAL TENDER: Is open to anybody from any part of the world to

supply the required quantity and quality of materials.
 PURPOSE OF TENDERING

1. Procurement option: Procurement option is the process by which a

contractor is selected to construct the building with regard to the contractual
arrangement between the parties.

2. Contract option: The contract option is the contractual arrangement that

will exist between the client and the main contractor.
 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.
 ELEMENTS OF TENDER REQUEST
The documents themselves DOCUMENTS
will vary between organization to organization, 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.
 Evaluation criteria: this outlines how the submission will be assessed and
evaluated.
 Submission content and format: details may be provided on how should present
the submission. There may be specifications relating to length of submissions,
file format, presentation etc.
 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.
 Conditions of Contract: this may indicate the general or standard terms and
conditions of the contract, with additions or alterations made when a winning
tender is announced.
 TENDER PROCESS
The seven main steps in the tender process:
1. TENDER PROCESS IS DETERMINED : 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.
2. REQUEST FOR TENDER IS PREPARED : The request for tender
outlines what is required, the contractual requirements and how you should
respond.
Tender requests are invitations to suppliers to provide a competitive offer to
win a contract for the supply of their products or services.
3. TENDERS ARE INVITED : The value, complexity and business category
determine how tenders are invited.
The ability to identify opportunities in the competitive tender market is a
crucial part of achieving success. There are a number of sources that can be
4. SUPPLIERS RESPOND
a. After obtaining all relevant documentation.
b. Attend any pre tender briefing sessions being conducted
c. Clarify any uncertainties
d. Plan your response
e. Prepare your response
f. Submit your response in
5. EVALUATION AND SELECTION
Each tender will be checked for compliance, and if compliant, then evaluated against
the criteria specified in the tender documentation. The tender that offers best value
for money will win the business
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.
The selection criteria that your tender will be evaluated on may include
a. The technical merit of your proposal,
b. The capability of your business to fulfil the requirement including technical and
management competence, financial viability and relevant experience,
c. The relevant skills, experience and availability of key personnel,
d. Quality assurance requirements, and
e. The risks or constraints associated with your offer.
6. 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.
7. CONTRACTS ESTABLISHED AND MANAGED:
A formal agreement will be required between the successful tenderer and the relevant
agency. Once if notified that tender is successful and have been awarded the contract,
it is important to meet all requirements and manage the contract effectively.
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