What is tender? Terms in tender. 👉👉Part 1

Meaning of tender -

 It is an offer or proposal made for acceptance such as an offer of a bid for a contract.

When the competent authority sanctions the estimate, the Engineer in Charge will
decide the method of execution of work. Generally civil works are executed on contract by inviting tenders. In case of emergency works, directly affecting the production in the mines or involving safety of workmen, the requirement of open tenders can be relaxed and the work can be executed by direct negotiations with the working contractors or by call of limited
tenders amongst the working contractors with the approval of the competent authority as per the delegation of powers.

Types of tenders-

- Turnkey tenders -

The intention behind turnkey contracts is to entrust the contractors with the entire 

responsibility of detailed investigation, planning, design, construction and commissioning of the total project.

-Limited Tenders-

In case the work is of a specialized nature/ very urgent nature with strict time frame 

and stringent quality requirements, limited tenders amongst registered/ working contractors or known agencies of repute may be invited with the competent approval, depending upon the value of work as per delegation of power.

-Open tenders-

This is the normal procedure of tendering where tenders are invited from the parties 

under a given set of terms & conditions regarding their past experiences, present status, credibility and other conditions which may be included in the NIT for a particular tender depending upon the requirement of work.

-Short Tenders-

For smaller work of estimated value upto Rs. 5 lakhs open short tenders may be 

invited. This type of tender notice is similar to open tender notice with the exception that the time of circulation can be reduced to a minimum of 5 days depending upon the urgency of the work.

IMP terms in related to tender -

Issue of Tender Documents.

Tender Documents shall be issued to all aspiring bidders who are registered in the 

appropriate category with Coal India Ltd or any of it's subsidiaries on payment of the 

requisite fees towards the cost of Tender document (Application Fee) as prescribed in the NIT. 

Earnest Money

The earnest money for tenders other than turnkey should be 2% (Two percent) of the 

estimated value of work (without ceiling) to be deposited in the form of Bank Draft from Nationalized Banks. However, for work valued upto Rs. 5 lakhs the earnest money may be deposited in cash or in aforesaid form. The earnest money shall bear no interest and shall be refunded to the unsuccessful tenderers after finalization of tender and award of work. Earnest money received in the form of Bank Draft shall be deposited to the associated Accounts Department.

You will get detail Information from this vedio that is how you can be master in tendering.

Security Deposit

The first part of security deposit including the Earnest money already deposited shall 

be 5% (five percent) of the contract value. Security deposit will not carry any interest. The contractor shall deposit immediately after receipt of letter of award of work, the balance of 2%(two percent) of awarded value, if any, after adjustment of the earnest money already paid as Initial Security Deposit before execution of the agreement.All running on account bills shall be paid at 95% (ninety five percent) of work value. This 5% (five percent) deduction will be the second part of security deposit. The amount so accrued shall be released after passing of the final bill.

Execution of Agreement/Work Order.

As soon as possible after the acceptance of a tender and award of work, the successful

tenderer is called upon to furnish the required initial security deposit and to execute a formal agreement. Only work order is issued to the contractor for works valued upto Rs. 5 lakhs and it is not necessary to execute agreements in such cases. Standard documents only form part of the contract agreement.

Validity of the Tender

The validity of the tenders shall be 4(four) months from the date of opening of price 

bid or revised price bid, if any. However, the Part II ( Price Bid ) of a Tender should be opened within a stipulated time limit from the date of opening of Part I preferably within 30 days and this is to be mentioned in the NIT. For big value works of estimated cost of over Rs.5 crores, the above validity may be fixed at 6 ( Six ) months.

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In the next part of this blog you will get more terms related to tender.
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