A tender is an offer or a proposition made for acceptance, such as an offer of a bid for a contract. A tender is something that is offered in return for a specific payment, subject to well laid down terms and conditions.
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Tenders are invited by large organizations, especially governments and undertakings, for supply of items, construction of buildings, roads, maintenance activities and other such relatively high-value works. Tenders are invited to ensure competitive offers and transparent decision making.
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Since substantial monetary payments are associated with the process of inviting tenders and awarding contracts, every care has to be taken to ensure clarity, openness and fair play. Inadvertent omission of key/relevant details could lead to avoidable confusion, complaints and legal action.
Important points that need to be covered in a tender are as follows:
1. Name of the organization and address
2 Tender number and date
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3. Captions such as
(a) Tender notice
(b) Tender notification
(c) Notice inviting tenders
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(d) Sealed tenders invited
4. Who can apply—sealed tenders are invited from
(a) Class I civil contractors
(b) Established contractors having customs house agency license
(c) Manufacturers or their authorized Indian agents, etc.
5. Experience/requirement
(a) With experience in completing similar work
(b) Satisfying the eligibility criteria mentioned below
(c) Who have supplied the tendered items successfully to other government organizations, etc.
6. Brief description of work or items/material to be supplied
7. Contract period and/or delivery schedule
8. Earnest money deposit
9. Contact address or authority
(a) For further details please contact/write to
(b) Tender documents can be obtained from
10. Date of issue of blank tender forms
11. Cost of tender document—mode of payment
12. Last date for receipt of sealed tenders—time
13. Time and date of tender opening
14. Other relevant details such as
(a) Amount of tender
(b) Average turnover (annual) for the last 3 years
(c) Technical bids and commercial bids
(d) Website
15. Authority issuing the tender notice
We have seen that tenders can be invited for supply of items or construction works or also for cleaning, upkeep and maintenance. In order to elicit high response, the tender notices are widely advertised.
At the specified time and date, the tenders are opened in the presence of representatives of the tender applicants and a final decision is taken on the successful bids and the same is communicated in writing. Exhibits 6.6 and 6.7 illustrate how the organizations communicate the acceptance of the tender for maintenance work.