Tender

Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan 1
(Narowal Campus), UET Lahore
 Tender

• Tender is written offer submitted by contractors in response to tender call

notice, to execute certain work or supply of specified materials or transport
of materials at certain rates, within a fixed time with the term and
conditions laid down in the tender documents.
• The tender is dully filled and placed in lock box kept in the room of officer
offering tender
• Tender Form
• Tender form is a printed standard form of contract giving terms and
conditions of tenders.
• It is obtained from the office of the officer inviting tender on payment.
• The amount of payment called the 'cost of tender form' is decided by the
department concerned inviting the tender

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Tender
• In the tender form, there is also a memorandum for giving
• (i) General description of work,
• (ii) Estimated cost,
• (iii) Time allowed for the work from date of written order to commence,
• (v) Earnest money,
• (Vi) Columns for signature of the officer by whom a accepted and
signature of contractor before submission of tender, signature of witness to
contractor's signature. It is a part of tender document.
• Tender with Two Cover Bid System
• Tenders with Two Cover Bid System. In this system of bidding, tenderers
shall be required to submit the bids in two envelops.
• Envelope 1: Documents related to eligibility criteria. (Technical Bid)
• Envelope 2: Financial bid. This is mentioned clearly in the NIT (Notice
Inviting Tender) and the technical specification is finalized by the
department for prequalification of the. tenderer.

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Tender

• Envelope1 of all tenders shall be opened first.

• Eligibility related documents shall be evaluated for qualification of the
tenderer.
• Envelope 2 Financial bid of qualified tenderers shall then be opened at
notified time, date and place.
• Tender Documents
• Tender documents will normally consists of:
• 1.Notice Inviting Tender (NIT) is prepared for wide publicity of the tender.
• It is uploaded at web and published in well reputed news paper.
• It contains brief description of the works

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Tender

• 2. Bill / Schedule of Quantities of the work, showing the complete

description of the work with their quantities.
• 3. A set of drawing if necessary in work
• 4. Special Conditions and additional conditions of contract if any
• 5. Press Notice
• The tender documents should be page numbered, and all corrections, over
writing should be certified on each pages

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering
• Following steps involved in Tendering
1. Invite Tender
2. Prepare Tender Documents
3. Sale of Tender
4. Submission of Tender and Earnest Money
5. Opening of Tender
6. Prepare Comparative Statement of Tender
7. Sorting out Informal and Unbalanced Tender
8. Acceptance of Tender
9. Contract Deed/ Agreement

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering
• Invite Tender
• First Step involved in tendering process is to publish tender notice in
newspaper and invite different contractors who are willing to do work
• Prepare Tender Document
• Tender notice is a very important document on which tender and
subsequent agreements with the contractors are based.
• It includes 28 numbers of information's and conditions such as
– Time of completion of work
– Earnest Money
– Refund of earnest money
– Period of validity of rates
– Specification of Materials
• Sale of Tender Paper
• The tender papers are kept ready for sale as soon as possible as the notice
inviting tender is issued.
• Tender paper of forms are sold only to enlisted contractor of appropriate
class on payments. 9
Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering
• Submission of Tender and Deposit of Earnest Money
• The tender are to be submitted in a sealed box kept in the office of the
officer inviting tender on or before closing date.
• Tender after closing date and hour is not accepted
• All the tender documents are properly filled and signed, and accomplished
with earnest money
• Earnest Money
• Earnest money is security deposited by contractor with their tender as a
guarantee to ensure that they do not back out after their tender are accepted.
• No Tender is accepted without earnest money
• The amount of earnest money is about 2-5% of the estimated cost.
• Opening of Tender
• The tender are opened by the Competent authority on prescribed date and
time.
• The officer opening the tender has to read out the rates offered in each
tender for the information of all present
• The tender without earnest money is rejected.
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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering
• Comparative Statement of tenders
• Comparative statement is prepared to compare the rates and other terms
and conditions of different tenderers who's tender have been accepted
• It is prepared by the officer opening the tender.
• Comparative Statement (C.S) Include
• Name of the contractor
• Date of receipt of tender
• Percentage above or below the rates
• Amount in case of lump sum tenders
• The recommendation or rejection of the tender is recorded on it

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering

• Informal Tender
• A tender is said to be informal
1.When it is not supported by requisite earnest money
2.When it is not submitted in the tender form before due date
3.When the tender form is not properly filled
• Unbalanced Tender
• In item rate tender, contractor quote their rates for each and every
individuals item. But on the basis of information from any source regarding
item of the work as which are likely to be increased and which are likely to
be decreased , a contractor quote high rate for the item likely to be
increased and less for the item likely to be decreased.
• If the information to the contractor is correct the tender becomes
unbalanced and the department lose heavily if work is awarded to the
contractor
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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering

• Acceptance of Tender
• At the end, after evaluating all tenders with respect to cost and the
performance of the contractor, the lowest contract is accepted.
• A specimen of acceptance is given below

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Steps Involved in Tendering
• Contract Deed/Agreement
• It is a contract deed between the contractor and the government
• Authorized person from government is responsible for correct preparation
and execution of the agreement

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore
 Thank You!

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Department of Civil Engineering Notes Compiled By: Engr. Abdul Rahim Khan
(Narowal Campus), UET Lahore