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TENDERSTender is an offer made by one party to another for execution of specified work at aspecified cost in keeping with all the terms and conditions set there in the tenderdocument including the extent of the work shown on the plans. It remains floating till the

time it receives a seal of acceptance either by the employer and / or his architect/ engineerand thereafter forms a binding contract.

The architect or engineer who prepares detailed tender papers on behalf of theowner/employer and issues to the contractors against a specified tender fees.

, It is the duty of the architect to see that:

(! "ll the plans, specifications and details are not only clear and correct, but without anyambiguity.(#! $ill of %uantities should be as accurate as possible.(&! 'pecial conditions if any should be thoroughly checked .

*Prior to filling of the tender, the contractor is requiredto make a careful study ofplans, specifications, special conditions, etc., and further inspect the site in order toascertain the difficulties which will be met with in the execution of the work.e has toestimate the probable period of completion of work, number of technical and non)technical staff that will be re%uired on the *ob. This will help him to work out the cost ofestablishment charges. "lso works like temporary hoarding, road work, office, godown,toilet for workers, wear and tear of the plants and e%uipments. "fter taking intoconsideration all the above facts including cost of materials and labour, he is able to%uote for the work.

Invitation to Tender

There are three ways in which the tenders can be called for namely(i! by. private invitation,(ii!by public notice and(iii!by negotiations.

By Private Invitation('elected or +imited Invitation!enerally, the architects and the engineers do maintain a panel of contractors and fromthe panel a few are invited to %uote for a particular *ob. In such a case, the architectknows the contractor, together with his intelligence, integrity and financial standing andthus he is sure of the type of work that he will get from him. It also preventsinexperienced persons from entering the contract line. This is suitable for private works.

By Public Notice

"ll public works are re%uired .to be advertised in the newspapers for the purpose oftenders and any contractor can %uote for the same. There are chances of getting the workat a cheaper rate and these tenders are also not free from collusion. "t time the tenders areso low that it will not be possible to imagine whether the contractors will be able tocomplete the work. 'uch tenders usually end in dispute, poor %uality of work and a lotheadaches for the architects.)The reverse is also true that the architect or the engineer may come in contact with newand intelligent contractors and this opens the field for new entrants in the contracting line.)The work is generally given to the contractor %uoting the lowest amount. provided he isotherwise e%ually %ualified. )

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By NegotiationsIn this case the architect / engineer do possess some base for negotiations like the workof a building not to cost more than -s per '.. of plinth area or at certainpercentage above or below the schedule of rates. 0ith this base . negotiations are donewith one or two contractors and work thereafter is assigned to the right contractor. This

mode is popular with developers and for repair *obs .The 12 203 or 4203 schedule ofrates are taken as the base.

Nature of TenderTenders set out paths for completion of building *obs. The paths may vary from item rateto labour work and the said paths have different terms and conditions. The acceptedcontracts derive their names from the type of tender like

5 item rate contracts derived from5 item rate tender. lump)sum contract from lump)sum tender etc.

$esides the above other paths available for execution of the works are:)(! 3ay work.(#! 2iece work.

(&! 3ally labour.

Thus, nature of tenders leads to nature of contracts, and discussion hereunder will applyto nature of contract also however, we shall study while discussing the 4ontracts

6ature of Tender can be 4lassified as 1nder

(! (a! the ,rate tender. (b! 'chedule of rates with percentage up or down the basic. rate with rise and fallclauses . .(#! (a! +ump)sum tender. (b! +ump)sum percentage tender (target tender!.(&! (a! 74ost plus percentage or 8cost plus fee tender8.(b! 4ost plus fixed fee tender.(c! 4ost plus fixed fee with bonus and penalty.(9! +abour tender.(! Tender for demolition work.nails. etc.. and the owner supplies only the materialsre%uired for the construction work. The contractor is responsible for line, level and settingout of the work.

The labour tender generally includes the labour work for the con'truction of water tankfor storage of water re%uired for construction purpose as well as labour work for puttingup temporary sheds for office and cement godown of reasonable si;e.

The owner has to keep a close watch over the materials used by the contractor as he is

least concerned with their wastages.

This method of execution of work is very popular as the materials used and theworkmanship will be of standard %uality. The points of dispute are minimised and thepayments for extra works are restricted to the labour charges only.

The labour tenders are invited sometimes on the basis of rate per s%uare meter or cubicmeter7of the construction work:97he contractor agrees to execute the complete work of thebuilding right from the stage of foundation till the completion of the building at aspecified rate per s%uare meter or cubic meter. excluding drainage and electric 0orks.

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It is suitable for all types of works like buildings, bridges. culverts, and 'pecially theworks of additions, alterations and repairs to the existing buildings.

Deolition Tender

These tenders are usually called for the demolition of the existing building up to groundlevel or up to road level and removal of all the materials of the same including cartingaway of the debris. The tenderer usually takes away all the materials that are there in theold building and in turn he pays a specified amount to the owner:

to # per cent on the same which will covercontractor7s profit, establishment charges, and rentals for the plants, if any. It re%uiresproper check on the materials consumed and labour employed and the reports to thateffect must be countersigned daily by the clerk of work. The contractor is re%uired tosubmit a weekly report of the same to the architect concerned .It is the duty of thearchitect and the engineer to sanction those extra works in writing which cannot bemeasured or valued properly to be paid at day work prices.

Daily!abourThis method is suitable for the maintenance works of roads, canals, etc.,and is also known as departmental method of execution. The owner or the overnmentagencies usually employ all the labours re%uired like masons, bhistis, ma;doors, etc.,whose attendance is recorded daily in the muster roll by the7?r. =ngineer. The materials ofconstruction, and tools, etc., are obtained from the central stores department by sendingthe necessary indent for the same. The works executed are recorded in the measurementbook and are checked by the sub)divisional engineer and executive engineer before thepayments are effeted. The labour is usually paid weekly, fortnightly or monthly as agreedupon.

Earnest "oneyIt is an initial deposit made along with the tender in order to show thegenuineness of the contractor. The amount of earnest money varies from I to # per cent ofthe estimated cost of the pro*ect. This amount remains in the safe custody of the architector the engineer till the work is allotted to a particular contractor who will be asked todeposit further sum towards the security deposit. The earnest money of the othercontractors whose tenders are not accepted are refunded to them. The main purpose of theearnest money is @ see that a fair competition takes place for the work.

The earnest money is forfeited in favour of the owner in case the contractor refuses toenter into a contract after his tender has been accepted. It is accepted in cash or che%ue at

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Tender Docuent&The tender documents occupy important position for contractors and employers, thearchitects."nd comprise of the following:! Tender notice.

(#! 'pecta notice.(&! +etter of offer.(9! 'pecla conditions.(! Borm of 4ontract with conditions.(G! eneral 'pecfications.(D!