UNIT 3: TENDER AND TENDER DOCUMENTS | टेंडर व दस्तावेज़

3.1 Definition & Necessity of Tender | टेंडर की परिभाषा व आवश्यकता

English:
A tender is a formal, structured invitation by an organization (like govt. department) to contractors to submit competitive bids for executing a defined scope of work. It ensures fairness, transparency, and value for money.

Hindi:
टेंडर एक औपचारिक और नियोजित आमंत्रण है जो किसी संगठन (जैसे सरकारी विभाग) द्वारा ठेकेदारों को किसी निर्धारित कार्य के लिए प्रतिस्पर्धात्मक बोली प्रस्तुत करने हेतु भेजा जाता है। इससे निष्पक्षता, पारदर्शिता और लागत की उचितता सुनिश्चित होती है।

Necessity / आवश्यकता:

• Promotes competitive bidding ➝ best pricing

• Ensures transparency & accountability

• Helps in legal compliance & audit trail

• Defines clear scope, reducing disputes or scope creep

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3.1.1 Types of Tender | टेंडर के प्रकार

Tender Type	English Description	Hindi Description
Local	Open only to domestic or regional bidders	केवल स्थानीय ठेकेदारों को बोली हेतु आमंत्रित करना
Global	Open to international bidders	अंतरराष्ट्रीय ठेकेदारों को भी आमंत्रित किया जाता है
Limited	Invitation sent to selected/shortlisted bidders	सीमित ठेकेदारों के चुनिंदा समूह को आमंत्रित करना

3.2 E‑Tendering System (ई‑टेंडरिंग प्रणाली)

• Complete process is online: NIT, bid submission, bid opening, evaluation

• Administered via secured e‑tender portals

• Ensures speed, audit trail, reduced paperwork, no manual interference

Example: Contractors upload technical bid documents in one digital envelope and financial bid in another, password-protected, and digitally signed.

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3.2.1 Online Procedure of Submission & Bid Opening

1. Technical Bid Submission:

   • Upload Eligibility Docs, EMD, Signed Agreement

   • Portal timestamps submission; no late entries

2. Technical Bid Opening:

   • Held on pre-scheduled date/time, visible online

   • Records eligibility results & disqualifications

3. Financial Bid Submission:

   • Only from technically qualified bidders

4. Financial Bid Opening & Ranking:

   • Portal auto‑opens bids; shows L‑1 (lowest bidder) record

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3.3 Notice to Invite Tender (NIT) | टेंडर आमंत्रण सूचना

3.3.1 Essential Points to Include

• Project name & location

• Estimated cost & funding source

• Time limit & milestone details

• EMD amount & validity

• Technical eligibility (experience, licensing, certifications)

• Submission deadline, opening dates, portal address

• Contact authority & working days/times

3.3.2 Sample Draft (English/Hindi mix)

Name of Work | कार्य का नाम: Construction of Village School Building / गांव स्कूल भवन का निर्माण  
Estimated Cost | अनुमानित लागत: ₹80 lakh  
EMD | अर्जेंसी राशि: ₹1.6 lakh  
Time Limit | कार्यकाल: 12 months  
Tender Fee | टेंडर राशि: ₹2,000 (non-refundable)  
Eligibility | पात्रता: PWD Class B or above, minimum 3 similar completed works  
Last date & Opening | बची तिथि: 25-Aug-2025, खुलने की तिथि: 26-Aug-2025  
Portal | पोर्टल: www.etender.rajasthan.gov.in  
Contact | संपर्क: Executive Engineer, Jaipur Division, Phone: 0141-XXXXXXX

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3.4 Tender Submission & Evaluation

3.4.1 Two-Envelope System | दो लिफाफा प्रणाली

• Technical Envelope: Includes qualification documents, EMD, technical literature

• Financial Envelope: Includes only BOQ/Rate schedule with prices

• Both sealed separately and placed in single outer envelope or online dual envelopes

3.4.2 Procedure of Opening Tender

• Step 1: Open Technical Bids

  • Evaluate eligibility, credentials, past performance

  • Prepare list of qualified bidders

• Step 2: Open Financial Bids

  • Held later in presence of qualified bidders

  • Compare quoted prices

3.4.3 Comparative Statement

S. No	Bidder Name	Total Quoted Price	Remarks
1	A Ltd	₹78,50,000	Lowest (L‑1)
2	B Pvt Ltd	₹80,00,000	Second list (L‑2)

Helps determine L‑1 & backup bidders

3.4.4 Scrutiny of Tenders

• Check EMD validity, financial soundness, technical ratings

• Spot unbalanced bids, missing documents

• Ensure compliance with NIT terms

3.4.5 Award of Contract

• Recommend L‑1 (lowest conforming) bidder per rules

• Seek approvals if rates deviate significantly from estimate

3.4.6 Letter of Award (LoA)

• States acceptance of bid, tells to submit performance guarantee

• Sets date for contract signing & mobilization

• Example extract: “You are hereby awarded the contract for ₹78,50,000; submit 5% performance BG within 15 days…”

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3.5 Key Terms in Tendering

3.5.1 Earnest Money Deposit (EMD)

Security that bidder does not withdraw/alter bid. Usually 1–2% of estimated cost. Refunded after award (or returned to unsuccessful bidders once LoA issued).

3.5.2 Performance Security Deposit

Guarantee (usually bank guarantee) for faithful performance. Typically 5–10% of contract value. Released after defect-liability period.

3.5.3 Validity Period

Time duration during which bid remains binding (e.g. 120 days).

3.5.4 Corrigendum

Official amendment in NIT—could modify dates, scope, eligibility. Must be published to all.

3.5.5 Unbalanced Bid

When quoted prices are disproportionately low/high across items. Example: ₹10 for plumbing but ₹200 extras on other items. Makes evaluation risky.

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3.6 Tender Documents | संरचना

1. Index – Table of contents

2. Tender Notice / NIT

3. General Instructions – Format, submission norms

4. Special Instructions – Site-specific details

5. Schedules:

   • Schedule–A: BOQ (quantities)

   • Schedule–B: Technical specifications

   • Schedule–C: Drawings and site plan

6. Agreement Format – Draft contract

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3.7 Contract Conditions | अनुबंध शर्तें

1. Time Limit (Completion time)

2. Time Extension Clause (for delays beyond control)

3. Penalty / Liquidated Damages (e.g. 0.1% per week maximum 10%)

4. Defective Material / Workmanship (replace/recover cost)

5. Termination Clause (for contractor default)

6. Suspension of Work (by engineer/government orders)

7. Subletting of Contract (prohibited/restricted)

8. Extra Items / Variations (rate basis: contract, market, agreed)

9. Price Variation Clause (linked index-based escalation)

10. Defect Liability Period (e.g. 12 months)

11. Liquidated Damages (advance calculated penalty)

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3.8 Arbitration | मध्यस्थता

3.8.1 Meaning / अर्थ

Alternate dispute resolution method, faster than courts.

3.8.2 Qualification of Arbitrator

Experienced engineer or lawyer, neutral & agreed by both parties.

3.8.3 Appointment

As per contract clause or institutional appointing body like ICC/IBA.

3.8.4 Dispute & Settlement Process

1. Notice

2. Written claim/defense

3. Hearings

4. Final award

3.8.5 Arbitration & Conciliation Act, 1996

Legal framework governing Indian arbitration.

3.8.6 Arbitration Award

Final, binding, enforceable in court.

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🔄 Process Flow Diagram

NIT Published → Two‑Envelope Bids Submitted →
Technical Bid Opening (➡ list qualifying Bidders) →
Financial Bid Opening (➡ Comparative Statement) →
Scrutiny (EMD, Rates, Unbalanced Bids) →
Award of Contract → Issue LoA →
Contract Signing → Performance Security Deposited →
Project Execution per Contract Conditions →
Handover + Defect Liability Period →
Release Security Deposits

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💬 Example & Case Study (Sample)

Case Study:
Department issues NIT for constructing 3 rural bridges.

• Estimate: ₹2 crore; EMD: ₹4 lakh; Validity: 120 days

• 120 bids received (20 local, 100 online global)

• Technical evaluation rejects 80 (deficient documents, invalid EMD)

• Financial bids of 40 analyzed – L‑1 being ₹1.95 crore

• Performance BG (₹9.75 lakh) received within 12 days

• Contract signed; construction started; LoA and contract copies made available on portal

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❓ Common Exam Q&A

Q1. Explain corrigendum and its importance.
Ans:
A corrigendum is a formal correction to the original tender notice. Used to update terms, deadlines, costs. It ensures bidders have latest info and avoids legal disputes or bid cancellations.

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Q2. Why is two-envelope system preferred in tenders?
Ans:
Ensures technical eligibility is confirmed before evaluating price. This protects from unqualified or low-ball bidders winning based solely on low price.

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Q3. Describe the purpose of performance security deposit.
Ans:
It acts as guarantee for contract fulfillment and defect correction during liability period. Ensures contractor accountability. Bank guarantee form adds trust.

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Q4. Differentiate EMD and Performance Security.

Feature	EMD	Performance Security
Submitted before bid	Yes	After award, before contract signing
Purpose	No withdrawal, ensure serious bid	Guarantee of execution & defects
Refunded/deducted after	Bid evaluation or rejection	After defect-liability period

🧠 Memory Aids / Mnemonics

Use “TEN‑DCR PEP” to recall key tender terms:

• Two-envelope

• EMD

• NIT / Corrigendum

• Deadline / Opening

• Comparative Statement

• Rates & Scrutiny

• Performance Security

• Escalation clause

• Penalty & Arbitration