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Tender and Tender document

TENDER AND TENDER DOCUMENTS

            The agreement of two or more persons, upon a sufficient consideration or cause, to do, or to abstain from doing, some act; an agreement in which a party undertakes to do, or not to do, a particular thing; a formal bargain; a compact; an interchange of legal rights. 
In our civil engineering field construction of buildings and other projects executed, supplying of materials, supplying of labours and conveyance of stocks etc., through the tender system. The qualified contractors offered their quotes through tender in different contract methods.
Preparation of Tender Documents
          Before tenders for a work are invited, a detailed estimate showing the quantities, rates and amounts of the various items of work and also the specifications to be adopted should be prepared and sanctioned.
In the case of urgent works, when there is not time to prepare a complete estimate, rough quantities and rates for the main items of that part of the work for which tenders are called and which cover the major part of the cost should be worked out before tenders are invited and adopted for the purpose of comparison.
In the case of work for which tenders are to be invited, tender documents comprising of the following should be prepared and approved by an authority who is empowered to approve, before the notice inviting tender is issued:

  1. The notice inviting tender in standard form.
  2. The form of tender to be used along with a set of conditions.
  3. The schedule of quantities of work.
  4. A set of drawings referred to in the schedule of quantities of work.
  5. Specification of the work to be done.
  6. Essential architectural drawings and adequate structural drawings for commencing the work together with specifications are to be made available to the contractors at the time of inviting tenders.

Unless there is any general or special departmental instructions or any other bonafide reasons to stipulate certain materials, only those materials should be stipulated in the tender which are either available at the time of inviting tender or are likely to be received before commencement of the work.

PUBLICITY OF TENDERS

          Tenders must be invited in the most open and public manner possible, whether by advertisement in the press or by notice in English/Hindi and the written language of the district, pasted in public places.  Wide publicity should, therefore, be given to the Notice Inviting Tenders. A copy of the notice should be sent to the Central PWD Divisions, Zonal Office, the Circle Office, Local Municipalities and Collector’s Office and the State PWD Divisions operating at the station of the work and headquarters of the Divisional Office.
          In respect of works estimated to cost more than Rs.1 lakhs, a brief advertisement inviting tenders should invariably be inserted in the press.
          Advertisement for Notice Inviting Tenders should be sent to the Directorate of Advertising and Visual Publicity, Ministry of information and Broadcasting for insertion in the Press.  Sometimes, tenders may have to be invited for different works by the same division at the same time or at short intervals of one or two days.  In such cases, it is not desirable to send separate press advertisements for each work and so far as possible composite advertisements in the following form should be sent to avoid unnecessary expenditure on advertisement.

TENDER NOTICE

           The Tender notice should contain the following information:

        • Name of the department-calling tenders.
        • Designation of the officer calling tenders.
        • Name of work or job description.
        • Last date and time for receipt of tenders.
        • Tender forms, place of availability date and timings.
        • Time allowed for the execution of work.
        • Earnest Money Deposit to be made and mode of payment.
        • Approximate value of work.
        • Date, Time and Place of opening tenders.
        • Designation of the officer opening the tender.

In response to the tender notice published, people who are really interested in undertaking the work will obtain a set of tender documents, kept ready for sale if it is a big work and sale is anticipated or in the alternative, the tender document should be permitted to be perused by the probable tenders.
The tender documents should normally consist of three parts:

        • General conditions of tender.
        • Schedule of items of work involved, approximate quantity of each item and general description of work.
        • Special conditions, designs, drawings etc.

Information should also be given, in clear terms about

  • Conditions regarding departmental supply of steel, cement, bitumen, etc., point of supply and rate chargeable to the contractor.
  • Availability of tools and plant on hire charges from the department and hire charges to be borne by the contractor, if they are provided.
  • Availability of power and water at the site of work.
  • Time allowed for the completion of work, stages of work, progress of work and penalties for delay.
  • Employment of technically qualified supervisory personnel and strict adherence to departmental standards and specifications.
  • Amount of Earnest Money Deposit which should accompany the tender and mode of payment.
  • Amount of a Security Deposit to be made by the successful tenders before the work is entrusted.
  • Enclosures to the tender such as Income Tax clearance certificate, Solvency Certificate and list of works executed by him recently.
  • Powers of accepting or rejecting tenders of canceling of any work or extension of time for tenders etc., without assigning any reasons.

Conditions regarding the responsibility of the successful tenders whose tender is accepted, to make good any loss which may occur due to re-tender, in case he does not pay the security deposit and enter into agreement within the stipulated time i.e., conditions of penalty, forfeiture of earnest money etc.

Text of CPWD form 6 : NOTICE INVITING TENDER [NIT]

    Item rate / percentage rate tenders are invited on behalf of the President of India from approved and eligible contractors of C.P.W.D. and those of appropriate list of P&T, M.E.S. and ……………………… State P.W.D. for the work of ……………………………..

      1. The work is estimated to cost Rs………………………………….

    This estimate, however, is given merely as a rough guide.

      1. Tendered will be issued to eligible C.P.W.D. as well as non-C.P.W.D. contractors provided they produce definite proof from the appropriate authority, which shall be to the satisfaction of the competent authority, of having satisfactorily completed similar works of magnitude specified below:

    Criteria of eligibility for issue of tender documents

      1. Conditions for Non-CPWD Contractors only
    1.3.1 For works estimated to cost above Rs.25 lacs but upto Rs. 2 crores Three similar works each costing not less than Rs……………….. lacs during the last 5 years.

     

    1.3.2 For works estimated to cost above Rs. 2 crores but upto Rs.5 crores          Three similar works each of value 40% of estimated cost or one work of 100% estimated cost (rounded off to nearest 10 lacs) in the last 7 years ending last day of the month previous to the one in which the tenders are invited.
      1. Conditions for CPWD as well as Non-CPWD contractors.

     

    For works estimated to qualified cost above Rs.5 crores

    Tenders shall be invited from pre-contractors only.

    For the purpose of this clause “similar work” means the works of ………………

    1. Agreement shall be drawn with the successful tenderer on prescribed Form No. CPWD 7/8 which is available as a Govt. of India Publication. Tenderer shall quote his rates as per various terms and conditions of the said form which will for part of the agreement.
    2. The time allowed for carrying out of the work will be ……………………. from the …………………………. day after the date of written orders to commence the work or from the first date of handing over of the site, whichever is later, in accordance with the phasing, if any, indicated in the tender documents.

    1. The site for the work is available.

    OR
    The site for the work shall be made available in parts as specified below:

    1. Receipt of applications for issue of forms will be stopped by 1600 Hrs. four days before the date fixed for opening of tenders.  Issue of tender forms will be stopped three days before the date fixed for opening of tenders.
    2. Tender documents consisting of plans, specifications, the schedule of quantities of the various classes of work to be done and the set of terms & conditions of contract to be complied with by the contractor whose tender may be accepted and other necessary documents can be seen in the office of the ……………………………. between hours of 11.00 A.M. & 04.00 P.M. everyday except on Sundays and Public Holidays.  Tender documents, excluding standard form, will be issued from his office, during the hours specified above, on payment of Rs…………………….. in cash/DD.
    3. The tenderer must produce an Income Tax clearance certificate in the revised form as modified under Ministry of Finance O.M. No.67/30/69/ITAL dated 02.07.1970 as amended from time to time before tender papers can be sold to him.
    4. Tenders, which should always be placed in sealed envelope, with the name of work and due date written on the envelops, will be received by the …………………………… upto 03.00 p.m. on……………………….. and will be opened by him of his authorized representative in his office on the same day at 03.30 p.m.
      1. The tender shall be accompanied by earnest money (unless exempted) of Rs………………… in / Receipted Treasury Challan / Deposit at Call receipt of a Scheduled Bank / Fixed Deposit Receipt of a Scheduled Bank / Demand Draft of a Scheduled Bank issued in favour of ………….. the amount being credited to……………………. The Fixed Deposit Receipt shall be accepted only if it is valid for six months or more after the last date of receipt of tenders and is pledged in favour of ………….. A contractor exempted from depositing earnest money in individual cases, shall enclose with the tender an attested copy of the letter exempting him from depositing earnest money in a manner described for earnest money in condition No.8.2. below and shall produce the original when called upon to do so.
      2. The tender and the earnest money shall be placed in separate sealed envelops each marked “Tender” and “Earnest Money” respectively.  In cases where earnest money in cash is acceptable, the same shall be deposited with the Cashier of the Division and the receipt placed in the envelope meant for earnest money.  Both the envelops shall be submitted together in another sealed envelope.  The envelope marked “Tender” of only those tenders shall be opened, whose earnest money placed in the other envelope is found to be in order.

    9.     The description of work is as follows:
    ……………………………………………………………………………………………………………………………………………….
    Copies of other drawings and documents pertaining to the works will be open for inspection by the tenders at the office of the above mentioned officer.
    Tenderers are advised to inspect and examine the site and its surroundings and satisfy themselves before submitting their tenders as to the nature of the ground and sub-soil (so far as is practicable,), the form and nature of the site, the means of access to the site, the accommodation they may require and in general shall themselves obtain all necessary information as to risk, contingencies and other circumstances which may influence or affect their tender.  A tenderer shall be deemed to have full knowledge of the site whether he inspects it or not, and no extra charges consequent on any misunderstanding or otherwise shall be allowed.  The tenderer shall be responsible for arranging and maintaining at his own cost all materials, tools and plants, water, electricity access, facilities for workers and all other services required for executing the work unless otherwise specifically provided for in the contract documents.  Submission of a tender by a tenderer implies that he has read this notice and all other contract documents and has made himself aware of the scope and specifications of the work to be done and of conditions and rates at which stores, tools and plant, etc. will be issued to him by the Government and local conditions and other factors having a bearing on the execution of the work.

    1. The competent authority on behalf of President of India does not bind himself to accept the lowest or any other tender, and reserves to himself the authority to reject any or all of the tenders received without the assignment of a reason. All tenders, in which any of the prescribed conditions is not fulfilled or any condition including that of conditional rebate is put forth by the tenderer, shall be summarily rejected.
    2. Canvassing whether directly or indirectly, in connection with tenders is strictly prohibited and the tenders submitted by the contractors who resort to canvassing will be liable to rejection.
    3. The competent authority on behalf of President of India reserves to himself the right of accepting the whole or any part of the tender and the tenderer shall be bound to perform the same at the rate quoted.
    4. The contractor shall not be permitted to tender for works in the CPWD Circle (responsible for award and execution of contracts) in which his near relative is posted as Divisional Accountant or as an officer in any capacity between the grades of Superintending Engineer and Assistant Engineer (both inclusive).  He shall also intimate the names of persons who are working with him in any capacity or are subsequently employed by him and who are near relatives to any Gazetted officer in the Central Public Works Department or in the Ministry of Urban Development.  Any breach of this condition by the contractor would render him liable to be removed from the approved list of contractors of this Department.
    5. No Engineer of gazetted rank or other Gazetted officer employed in Engineering of Administrative duties in an Engineering Department of the Government of India is allowed to work as a contractor for a period of two years after his retirement from “Government service, without the previous permission of the Government of India in writing.  This contract is liable to be cancelled if either the contractor or any of his employees found any time to be such a person who had not obtained the permission of the Government of India as aforesaid before submission of the tender or engagement in the contractors service.
    6. The tender for the works shall remain open for acceptance for a period of ninety days from the date of opening of tenders.  If any tenderer withdraws his tender before the said period or makes any modifications in the terms and conditions of the tender which are not acceptable to the department, then the Government shall, without prejudice to any other right or remedy, be at liberty to forfeit 50% of the said earnest money as aforesaid.
    7. This Notice Inviting Tender shall form a part of the contract document.  The successful tenderer / contractor, on acceptance of his tender by the Accepting Authority, shall, within 15 days from the stipulated date of start of the work sign the contract consisting of:
      1. the notice inviting tender, all the documents including additional conditions, specifications and drawings, if any, forming the tender as issued at the time of invitation of tender and acceptance thereof together with any correspondence leading thereto.
      2. Standard C.P.W.D. Form 7/8.

SALE OF TENDER DOCUMENTS

           Tender documents should be prepared and kept ready for sale to the contractors before the NIT is actually sent to the Press or is posted on the Notice Board and every contractor desiring to tender shall be asked to make a written application.  It is the responsibility to the Executive Engineer to see that tender documents are made available to the contractors as soon as the application is made.  The application may be made by the contractors in the prescribed form.
For recorded reason, the Chief Engineer is competent to permit any particular person or firm, who are not borne on the approved list of CPWD or any other Government Department to tender for specialised works.  Any how for works costing upto the normal power of acceptance of tender of Executive Engineer, prior permission of Superintending Engineer shall suffice.

OTHER RELEVANT MATERIALS

           Timings of Sale of Tenders
          Attention is invited to standard condition No.2 in Form PWD 6 (Notice Inviting Tender) according to which sale of tender papers is to remain open between the hours of 11.00 a.m. and 4.00 p.m. every day except on Sundays and Public Holidays.  However, sale of tender papers could be suspended during lunch break, as per conventions in the Department or where circumstances so demand.  Sale of tenders could also be suspended one / two days before the date specified for opening of tenders.
          It has been brought to notice that some of the Executive Engineers specify 3 p.m. as the closing time for sale of tenders instead of 4 p.m. This is against the specified and accepted procedure.
          All concerned are requested to adhere to the conditions given in standard Form PWD-6 and keep the sale of tender papers open between 11 a.m. and 4 p.m. on all working days.

ACCOUNTING OF TENDER DOCUMENTS

  The following is the procedure, laid down, for accounting of tender forms:

    1. All tender forms should be priced and the price given on the form.
    2. All tender forms should be kept in charge of the Cashier in the Division Offices and the Sub-Divisional Clerk in the Sub-Divisional Offices.
    3. All the forms received in the Divisional or Sub-Divisional Office should be entered in the register together with the number and date of the advising dispatch or invoice with which they are received.
    4. The register should contain in a chronological record of the issue of tender forms showing the name of the person to whom issued, the number of forms issued and the amount received.
    5. The register of the sale of tender forms should be treated as a subsidiary cash book and its pages should be machine-numbered.
    6. The money received by the Cashier or the Sub-Divisional Clerk on account of Sale of tender forms should be entered in the Divisional or Sub-Divisional Cash Book daily as a lump-sum.  This daily total should agree with the detailed record in the register of the sale of tender forms.
    7. On the 25th of each month, the Cashier or the Sub-Divisional Clerk concerned should close the register by striking the balance of forms in stock, the number of forms sold, and the amount of cash realised.  He should also count the forms in hand. Thereafter, the forms and the entries in the register should be checked and verified by the Divisional or Sub-Divisional Officer concerned.