Tenders Terminology – Open Tenders, Rate Contracts, EMD

June 9, 2010 - PRLog -- Open Tenders:

whereby any interested supplier/contractor may submit a Tender

Limited Tenders or Close Tenders:

whereby any supplier/Contractor may request to participate. Only those who are approved by the tendering authority may be allowed to participate in a Tender.

Rate contracts:

It is an agreement between tendering authority and one or more suppliers, the purpose being to purchase commonly used items for a specific period of time(validity of Agreement) at approved rates. The agreement may be for a particular product, price and period

Forward Auctions:

It is a process to dispose or sale non-serviceable articles lying with the government department. The bidders may be invited to participate in an Auction where the bidders try to outbid a highest offer. The auction is held for a specific period of time called auction hour(s)

Reverse Auction:

Reverse auction procedure can be utilized as an extension to the awarding phase of a tendering procedure. The bidders may be invited to quote lower than the opened prices to facilitate the tendering authority to get better prices to the tender.

Vendor Enlistment:

Is a process to enlist or empanel a supplier/contractor with a particular department, which maintains a database of such enlistment or empanelment with products manufactured or Category/class of works.

NIT:

Notice Inviting Tender

Earnest Money Deposit (EMD):

"Earnest Money Deposit" means the amount required to be remitted by a tenderer along with his tender indicating his willingness to implement the contract.

The tender documents shall require all tenderers without exception to pay an earnest money deposit ordinarily not exceeding one per cent of the value of the procurement by means of a demand draft, bankers cheque, specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a prescribed form. The tender documents shall clearly state that any tender submitted without the earnest money deposit in the approved form be summarily rejected provided that any category of tenderers specifically exempted by the Government from the

payment of earnest money deposit will not be required to make such a deposit.

Security Deposit (SD):

The tender documents shall require that as a guarantee of the tenderer’s performance of the contract, a security deposit be taken from the successful tenderer subject to the conditions that -

(a) the amount of the deposit not exceeding five per cent of the value of the orders placed: and
(b) the deposit being in the form of demand draft or bankers’ cheque or specified small savings instruments or where the procuring entity deems fit, irrevocable bank guarantee in a prescribed form

Tender Documents:

Tender Documents mainly contains Technical Specifications, Commercial Term & Conditions, Bid Evaluation criteria, eligibility criteria, Technical Bid Formats , Price Bid Formats, Formats of EMD & SD, Clarification to Tender Documents

Corrigendum:

At any time after the issue of the tender documents and before the opening of the tender, the Tender Inviting Authority may make any changes, modifications or amendments to the tender documents and shall send intimation of such change to all those who have purchased the original tender documents and upload corrigendum for the information of those who have downloaded the tender documents from the website.

Pre Bid Meeting:

After purchasing a tender document, if a Contractor seeks some clarifications in some clauses mentioned in the tender document, he can raise the same at the time of pre-bid meeting.

Item Rate Tenders:

In this type of Tenders the contractors are required to quote the rates for each item mentioned in the price bid. The quantity to be executed is given in the price bid.

Percentage Rate Tenders:

In this type of Tenders a detailed estimate of the quantity of work to be carried out along with the estimate rates is given in the price bid form. The Bidders are required to quote the amount in percentage above or below or at Par. For More Information Please Visit http://www.tradereader.com.

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www.tenders.tradereader.com is a Tender information portal where Tenders, Auctions, RFPs, RFQs, EOIs, Contracts, bid information and notifications, procurement notices published by various State government, Central government , PSUs, private companies.