Tender

Reviewed by Anjaneyulu | Updated on Aug 27, 2020

Introduction

The tender is an offer to perform some task or to supply goods at a fixed price. The contractors will be invited to submit sealed bids for construction or for the provision of specific and specifically designed services or goods during a particular time frame in the initial step of this tendering process.

Understanding

India's e-tendering process is structured to ensure that the work to be performed for the government or a specific client is accomplished reasonably. For example, some places may have specific procurement policies that direct on how to make a decision, and which tender to accept.

Open tendering is the main tendering, followed by both the government and the private sector. The client advertises the tender offers in the local newspaper along with the critical information of the proposed works and inviting interested contractors.

Tenders in India

There are various types of tenders, such as open tender, selective tender, serial tender, negotiated tender and term tendering.

Open Tendering Open tendering is the principal tendering procedure employed by both the private and government sectors. In the local newspaper, the customer advertises the tender offer along with the key information of the proposed works and invites interested contractors.

Selective Tendering Selective tendering is the one alternative that has been developed to address the open tendering procedure limitation. Below is a shortlist of contractors, who are eligible to submit tenders. This tender aims to increase the quality of bids received and ensured that, for the particular reason of the employer, contractors with the requisite expertise are given the opportunity and submit the bids needed.

Negotiation Tendering This tendering is widely used in the engineering and construction industry from tendering to dispute resolution, which is the subject of pre-contract and post-contract negotiations.

Term Tendering Term tendering is normally used on projects which require enormous maintenance. The contractor would be asked to cover several specific buildings at multiple locations. This tendering is also limited to a fixed time, and it may demand that this be applied to the client's needs.