Tender’s in Business

January
2022
What is a Tender?

 Tender is formal written invitation to the bidders.

 Businesses are invited to bid for contracts from public or private
sector
 Need specific skills for a project.
 Governments and financial institutions invite bids for large projects
 Must be submitted within a finite deadline.
 Tendering is

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Types of Tender:

Open Tender’s.
Close Tender’s.
Single Tender’s.

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 Eligibility of Tender’s:
The main eligibility criteria for companies.
 Tender Eligibility:
Eligible Tenderer who has a registered
office in Pakistan.
Registered from FBR,SPEC, PSEB.
It has quoted on Turnkey basis
Has required relevant experience.
enough strength to fulfill the requirement of
assignment.

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 Eligibility Criteria:

Tender eligibility:

 The manufacturer of Goods /

provider of Services or authorized
dealer /provider of Services.
Goods and Services can only be
supplied / sources / routed from
“origin” in “eligible”.

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Preparation of Tender:

Steps for the preparation of tender.

Tenderer is only allowed to bid for

all items on turnkey basis.
The Tenderer is not allowed to bid
for partial scope.
The Tender, documents relating to
the Tender, exchanged between the
Tenderer and the Purchaser, shall
be in English.
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Public Procurement Regulatory
Authority:

About PPRA :
Public sector organizations with a view to improve  governance,
management.
On this website different tenders of government and private
organization’s are displayed.
https://www.ppra.org.pk/

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Tender Security:

Tender Rejection: Bid security return will be notified.

For a sum equivalent to 2% of the Total Tender Price.
Security Payback Conditions
Bid Security Return.

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Types of Proposal
 Technical Proposal:
 A technical proposal is introduction to the product specifications.
 An explanation of how it will help address the recipient's problem.
 Company's execution plan, and technical details of the deal.
Types of Proposal
Financial proposal:
A financing proposal : Amount of money needed. How that money will
be used. Expected returns.

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Biding:

A formal proposal to deliver goods or services at a specified price,

describing that the tender contract requirement will be met.

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Earnest Money:

Earnest money submitted with Tender.

 it is equivalent to 2%, 5% of total tender amount.
Refundable when unsuccessful.
If Successful, a performance security is also submitted.
Performance Security:
An enforceable commitment by a corporate.
Entity to supply the necessary resources to a prospective contractor 
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References:

https://www.investopedia.com/terms/t/tender.asp
https://www.ppra.org.pk/
https://www.opuskinetic.com/2019/04/4-types-of-tender-and-tenderin
g-processes
/
https://
www.tendertiger.com/Blog/difference-between-bid-and-tender.htm

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Thankyou!!!

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