Tender is a written offer presented before an owner (department) showing interest to perform the specified work within the specified time under agreed condition. The owner (or department) supplies a special printed tender form at usual cost. In such tender form ;condition of contract and other related obligations are printed. It is also defined as an offer by one party usually written although it may be oral partly oral and partly written.
Tender notice is a means of expression through which contractors know where they have to bid a tender. Tender notice shall be published in such a way that all the concerning parties get the information in time. Thus such tender notice shall be published in widely read newspaper or through other media from where the notification reaches to the concerned parties. A tender notice should contain following information.
a. Date, Time and Place of tender
b. Name of the authorities inviting tender
c. Nature of work and it’s location
d. Time of completion
e. Validity of Tender
f. Amount of earnest and security money
g. Cost of complete set of tender forms, condition ,estimated cost ….etc.
Preparation done before inviting tender
In order to execute construction work through contracting we need to invite a tender from the eligible bidders. Before inviting tenders ;following steps are to be completed:
- Project formulation:
The necessity of the project is identified and cost benefit analysis is done. Then a detailed feasibility study is carried out to know whether the project is feasible or not. Since, project comes into scene after this stage it is the first and the most important phase.
2. Detail Design cost estimation :
At this stage detailed design of the project is done and based on the design or detail cost; estimation of the project is prepared.
3. Approval of cost estimate:
The concerned authority will approve estimated cost of the project and allocate budget for the project.
4. Tender document preparation:
In order to notify publicly, tender document that fulfilling all the requirements is to be prepared before inviting tender. Approval of tender document by the concerned authority is essential.
5. Tender Invitation
After fulfilling all the requirements listed above, tender notice is published and bidders are invited.