TENDERS AND CONTRACT

TENDER DOCUMENT

A written invitation sent to potential suppliers of a good or service to inform them

about the information required for the buyer to choose among them.

CONTRACT

An agreement between private parties creating mutual obligations enforceable

by law. The basic elements required for the agreement to be legally enforceable
contract are:
mutual assent, expressed by a valid offer and acceptance; adequate consideration;
capacity; and legality.

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TENDERS AND CONTRACT

The Tender process in India are governed by Indian Contract Act, Code of Civil
Procedure Code, Indian Arbitration Act, Works Contract Act etc, when the contract
specifies Indian Law as the relevant law then the above said legislations will apply
even if it is an International Arbitration with parties from different jurisdiction.

The Tender forms an integral part of The Contract.

Earnest Money Deposit, Bank Guarantee, Retention Money are instruments of

The Contract, that are mentioned and prescribed in The Tender.

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TENDERS AND CONTRACT LEGAL GLIMPSE

A contract is an agreement enforceable by law which offers personal rights, and

imposes personal obligations, which the law protects and enforces against the
parties to the agreement. The general law of contract is based on the conception,
which the parties have, by an agreement, created legal rights and obligations, which
are purely personal in their nature and are only enforceable by action against the
party in default.
Section 2(h) of the Indian Contract Act, 1872[2] defines a contract as "An agreement
enforceable by law". The word 'agreement' has been defined in Section 2(e) of the
Act as ‘every promise and every set of promises, forming consideration for each
other’

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TENDERS AND CONTRACT CONSTRUCTION PROJECT CONTRACT

A construction contract is a mutual or legally binding agreement between two

parties based on policies and conditions recorded in document form. The two parties
involved are one or more owners, and one or more contractors. The owner has full
authority to decide what type of contract should be used for a specific development
to be constructed and to set forth the legally-binding terms and conditions in
a contractual agreement. There are various kinds of construction contracts used
within the industry. The specific type of contract is usually determined depending on
how the disbursement will be made. This will vary from project to project. The
specific details of the contract will usually include duration, quality, scope of the
work, specifications, and penalties for delays. Ultimately, the contract serves as a
legally binding agreement between two parties that they will complete the work and
be compensated accordingly.
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TENDERS AND CONTRACT CONSTRUCTION PROJECT CONTRACT

Types of contracts are:

Lump sum contract

Lump sum and scheduled contract

Item rate contract/unit price contract

Cost plus contracts OR Time and Material Contract

Special contracts

Labor Contract & Material Supply Contract.

Rate Contract. Turnkey Contract.
Choosing the type of contract solely depends upon the type of project,
circumstances and the quality/ end result desired, all governed by time factor. 6
Lump sum contract TENDERS AND CONTRACT

In a lump sum contract an owner agrees to pay a contractor a specified lump sum
after the completion of work without a cost breakdown. After work no detailed
measurements is required. In this type of contract, the contractor assumes more of
the risk. Lump sum contracts specify a total fixed price that will be paid for all
construction work. In this type of agreement, owners agree to pay this fixed price
and the contractor agrees to complete the project for this fixed price. The contractor
takes on more risk in this situation because there is always a possibility of potential
problems and higher prices.

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Lump sum contract TENDERS AND CONTRACT

In order to protect the contractor, some lump sum contracts contain allowances
which designate certain costs to the owner if the contractor goes over budget.
Incentives can also be included for contractors if they finish a project early/below
budget, as well as penalties if they finish a project late. This type of contract is most
commonly used when the owner wants to evade dealing with change orders for
unspecified work.

Example : Clearing Of Site.

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Lump sum and scheduled contract TENDERS AND CONTRACT

In lump sum and scheduled contract the complete work as per plan and
specifications is carried out by contractor for certain fixed amount as per agreement.
The owner provides required information and contractor charges certain amount.
This contract is suitable when the number of items are limited or when it is possible
to work out exact quantities of work to be executed. The detailed specifications of all
items of work, plans and detail drawings, security deposit, penalty, progress and
other condition of contract are included in agreement. Though it is lump sum and
scheduled contract, contractor will be paid at regular interval of 2-3 months as per
progress of work on the basis of certificate issued by engineer in charge. A schedule
of rate is included in agreement for making payment of extra items.

Example : Making of Proto-Type Tables.

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Item rate /unit price contract TENDERS AND CONTRACT

In this type of contract, both parties assume little risk. Unit price contracts involve
the contractor determining a specific price for a certain task. After this, the owner
must agree to the pay that price for the number of units the contractor provides.
There are benefits for both the owner and the contractor in a unit price contract.
Owners benefit because they can easily verify that they are being charged
reasonable rates and contractors benefit because they don’t have to worry about
inaccurate estimation for certain tasks. This type of contract is most commonly used
on repetitive or public works projects.

Example : Complex Building Construction and Interior Renovation Projects.

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Cost Plus Contracts TENDERS AND CONTRACT

• Allowed expenses + additional payment to allow for a profit.

• CPC X Fixed Price Contract ( in Nature, Principle and Working )

• Type and objective of project = Type of Cost Plus Contract.

• Basic infrastructure cost is fixed and deliverables at that basic
infrastructure are pre-dictated.
• Client Additions increases cost.
Increase in cost is split in 2 parts, viz 1.material & labor cost, 2.profits
and overheads.

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Cost Plus Contracts TENDERS AND CONTRACT

Cost Plus formats are favoured when the scope of the work is indeterminate or
somewhat uncertain, when the types and amounts of labor, materials and
equipment needed are uncertain, or when a contract is negotiated rather than bid.
Under any of these contract types, complete records of all time spent and materials
used by the contractor should be maintained and delivered to the owner in the form
of worksheets and receipts to accompany each billing statement.

CPC are used generally for :

 Projects with predefined basics.
 Defined, Scheduled Short Time
Projects.
 Pilot Projects.
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Cost Plus Contracts TENDERS AND CONTRACT

CPC are generally of following types :

Cost + Fixed percentage.
 Cost + Fixed Percentage with Guaranteed Maximum.
 Cost + Fixed Percentage and Bonus.
Cost + Fixed Percentage with Agreement for Sharing
any Cost Saving.
Cost + Fixed Fee.
Cost + Incentive Fee.

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Cost plus contracts TENDERS AND CONTRACT

Cost Plus Fixed Percentage & Cost Plus Fixed Fee.

In this contract format, compensation is based on a percentage of the total cost of
time and materials, usually between 15% and 20%, depending on the contractor. This
percentage consists of combined profit and overhead percentages. Sometimes an
owner can negotiate this number by a few percentage points. Supervision labour and
project management labour are sometimes included in the fixed percentage number,
but at other times they’re listed in the cost breakdown as separate line items.

This type of contract carries more risk to the homeowner than a fixed price contract
because the final project costs are less predictable, and the decision about whether
the project is affordable in the first place is based on the contractor’s estimate.
Having an accurate estimate and a good cost tracking system in place reduces the
chances that there will be cost overruns. 14
Cost plus contracts TENDERS AND CONTRACT

The contractor’s estimate should be itemized for transparency, and the owner can
ask to see the worksheets that the contractor used to arrive at each line item. Each
line item should be discussed in detail to be sure that the contractor understands the
drawings and is making the correct assumptions about any portions of the project
not specifically described in the construction documents.

There can be savings in a Cost Plus contract because the owner gets what he/ she
pays for without paying the contingency normally included in a fixed price contract.
However, there can be unforeseen cost increases if the estimate is missing items or if
the contractor has made inaccurate assumptions about the quality of construction
that the owner expects.

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Cost plus contracts TENDERS AND CONTRACT

When paid as a predetermined profit, the client will usually require a strict
accounting of expenses. This defines Cost Plus Fee Type.

Example :
1. Painting Works of very old buildings where surface treatment is beyond
estimation.
2. Advanced Soil Testing for Safe Bearing Capacity & Strata.
3. Annual Maintenance Service Contracts. ( Outdoor Kitchen, MEP )
4. Office Relocation.

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Cost plus contracts TENDERS AND CONTRACT

Cost + Fixed Percentage with Guaranteed Maximum.

This contract is identical to the above except that there is a cap on the project costs,
known as a Guaranteed Maximum Price, or GMP. The owner can be assured that the
total project cost will not exceed an agreed-upon upper limit, usually arrived at by
adding 10 to 15 percent to the initial estimate. Change orders may or may not
increase the guaranteed maximum price, depending on the cost of the change and
how the budget has been managed up to that point. Many owners prefer this type of
contract because it gives them the best of both worlds: they get what they pay for in
addition to having control over costs.

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Cost plus contracts TENDERS AND CONTRACT

Cost + Fixed Percentage and Bonus.

Keeping the concept same, Under this contract, a bonus is given if the project
finishes below budget or ahead of schedule.

Cost + Fixed Percentage with Agreement for Sharing any Cost Saving.
If the completed project comes in below budget, any cost savings are shared
between the owner and the contractor, in lieu to prior agreement.

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Cost plus contracts TENDERS AND CONTRACT
Cost Plus Incentive Fee Contract
Incentive contracts are usually used when there is some level of uncertainty in the
project cost. Although there are nearly-accurate estimations, the technological
challenges may impact on the overall resources as well as the effort.
This type of contract is common for the projects involving pilot programs or the
project that harness new technologies. There are three cost factors in an Incentive
contract; target price, target profit and the maximum cost. The main mechanism of
Incentive contract is to divide any target price overrun between the client and the
service provider in order to minimize the business risks for both parties.
Assures time bound optimal outcome.

Example :
1. SOLAR PANELING INSTALLATION CONTRACTS.
2. DREDGING CONTRACTS.
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Special contracts TENDERS AND CONTRACT

Special Contracts are generally of following types :

 Turn-Key Contract/Package Contract.
 Negotiated Contract.
Continuing Contract.
 Rate and Running Contract.

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Special contracts - TURNKEY TENDERS AND CONTRACT
Turn-Key Contract.
An agreement under which a contractor completes a project, then hands it over in
fully operational form to the client, which needs to do nothing but ""turn a key"", as
it were, to set it in motion. Contractor responsible for both design and construction
of facility.Contractor shall provide the works ready for use at the agreed price by
fixed date. Client gives only requirement and site with utilities.

Turn-Key Contract consists of at least 3 components :

DESIGNS

TECHNOLOGY

CONSTRUCTION
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Special contracts - TURNKEY TENDERS AND CONTRACT
Design of Facility by contractor.
Certain aspects of design already defined in contract.
Preparation of design forms the object of a separate , preliminary contract.
Contractor has to prepare detailed design.

Up-to-date Technology, inclusive of patents shall have been incorporated in design.

 In certain cases contractor may use technology of their parties by virtue of
contractual agreement or upon request of owner.

Supplies, Construction, Erection – Contractor's obligations.

Subject to conditions, contractor may own construction of Facility to be operated.
In such cases employer might require that the contractor retains specified sub-
contractor, thus assuring himself of quality as well as negotiate directly the price of
certain sub-contractors. 22
Special contracts - TURNKEY TENDERS AND CONTRACT

Obligations of Employer :
• Give Contractor Access to Site.
•Assist Contractor obtain licenses and permits.
• Pay the contract price.

Obligations of Contractor :
• To obtain necessary permits and licenses in advance and as required w/o delay.
• To carry out design of works and get it approved from client.
• To provide Client with operational and maintenance manuals.
• Remedy Defects.

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Special contracts - TURNKEY TENDERS AND CONTRACT

Main Clauses of Turn-Key Contract :

1. Design Of Project : Pre-Defined. Pre-Approved. Contractor Liability.
2. Construction Site : Pre-Chosen ,Transit. Access, Utilities. Employer Liability.
3. Time for Completion : Pre Decided. Bar Charts. PERT.CPM. Contractor Liability.
4. Price and payments :
Lump-sum as per contract. Contractor- Employer Liability.
Provision of Unit Price. Helps in Valuation of Variations
5. Performance Guarantees-Defect Liability-BG- SD-RM.
6. Law governing Contract : Indian Contract Act, Arbitration Act etc….

Turn-Key Contract should be based on equilibrium of rights and obligations between

Employer and Contractor, and a balance of Risk Allocations. Contract should provide
a clear and compact structure that facilitates its administration. 24
Special contracts - NEGOTIATED TENDERS AND CONTRACT

Contract awarded on the basis of a direct agreement with a contractor, without

going through the competitive bidding process. Negotiated contracts are generally
agreed between a contractor and client that have experience of working together
and have a relationship built on trust.

Negotiating with a single supplier may be particularly appropriate for highly-

specialist works where there may only be a limited number of potential suppliers , or
for extending the scope of an existing contract. It can give the client the confidence
of working with a supplier they already know, can reduce the duration
and costs of tendering and can allow early supplier involvement.

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Special contracts - NEGOTIATED TENDERS AND CONTRACT
However, despite having the advantage of being more flexible, negotiated
contracts can also be less attractive for clients who may see the lack of competitive
tendering as driving up costs; though it is often the case that a strong working
relationship with a contractor whose practice is well-known may more than make up
for this over the duration of the project.
Negotiated contracts may not be permitted by some organisations due to the
perceived lack of accountability. On public projects, or projects that include a
publicly-funded element it may be necessary to advertise contracts.

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Special contracts - NEGOTIATED TENDERS AND CONTRACT

Advantages:
Client has flexibility in terms of choosing their preferred contractor.
Time and cost savings involved in removing the tendering process.
It can allow early supplier involvement.
Contractor’s costs and pricing are more transparent as they are not seeking to win
the bid purely on the lowest tender.

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Special contracts - NEGOTIATED TENDERS AND CONTRACT

Disadvantages:
There are fewer options for the client to choose between and so there may be less
innovation.
The costs may be driven up by the lack of competitive bidding.
There is a heavy reliance on trust between the parties.
Unless it is carefully structured and controlled, the negotiation process can create
an adversarial atmosphere, even before the contract has been awarded.
It can be seen as anti-competitive and exclusive, with the potential for ‘cozy’
relationships to develop between the client and the supplier.

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Special contracts – TENDERS AND CONTRACT
CONTINUING
RATE AND RUNNING

Continuing contract is a contract calling for periodic performances. Under such a

contract, performance is in several units over a period of time. It is an executory, as
distinguished from an executed contract.

A Rate Contract is essentially related to a fixed rate. Thus, within the period of
currency of the contract, the contractor has to supply material (irrespective of
quantity) at a fixed rate. The Rate Contract is a contract under which, during the
period of its currency, the contractor engages to supply materials on demand,
irrespective of quantity, at fixed unit rates or prices, within a given period of the
receipt of such demand.

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Special contracts – TENDERS AND CONTRACT
CONTINUING
RATE AND RUNNING

In Running Contract, the essence is supply of quantity of material within a given

period by the contractor as and when ordered. The Running Contract is one under
which, during the period of its currency the contractor engages to supply, and the
other party to the contract to take, a specified quantity (with a percentage tolerance
either way) of materials, as and when ordered, at fixed unit rates or prices, within a
given period of the receipt of such order.

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LABOR CONTRACT TENDERS AND CONTRACT
MATERIAL SUPPLY CONTRACT

This is a contract where the contractor quotes rates of item exclusive

of the labor. Rates inclusive of Taxes, carriage, delivery. Time Factor
important.

• Quality assured, though constant quality control required.

• Breakages, Demurrages to account of contractor.
• Material Storage, Security, Management Owner Responsibility and
Cost.
• Cost escalation due to monopoly possible.

Best applicable in case of projects where works are to be done on

basis of incidental/ repetitive / maintenance requirements. 31
LABOR CONTRACT TENDERS AND CONTRACT
MATERIAL SUPPLY CONTRACT

This is a contract where the contractor quotes rates of item exclusive

of the material. Rates inclusive of Taxes, Machinery, labor, tools.

• Quantity Management achievable. Quality Management disputable.

• Material Storage, Security, Management Owner Responsibility and
Cost. These cost may be higher than the material cost.
• Cost escalation due to unavailability of materials in such cases can be
kept in check.
• Delay in supply of stocked/stored materials can cause cost escalation.

Best applicable in case of large scale projects where additional works

are to be done on basis of similar previous work pre-sets. 32
RATE CONTRACT TENDERS AND CONTRACT

An order to supply finished products like Pipes, A C Sheets, CPVC, etc

so as to stock material to do work departmentally.
Direct order to Suppliers.
Government Bulk Order Contracts awarded by “ Director General Of
Supplies”.
Government Undertakings :
8 Maharatnas, 16 Navratnas and 74 Miniratnas.
300 CPSEs(central public sector enterprises)
NTPC ONGC SAIL BHEL
IOCL CIL GAIL BPCL
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TURNKEY CONTRACT TENDERS AND CONTRACT
A CONTRACT USED FOR BIG SCALE ENGINEERING PROJECTS HAVING
VARIED COMPLEXITIES. INFRASTRUCTURE PROJECTS.

APPOINTED AGENCY IS EXPECTED TO DESIGN, ADMINISTER, EXECUTE

AND DELIVER THE END PRODUCT. CLIENT PROVIDES REQUIREMENT
AND LOGISTICAL, ADMINISTRATIVE SUPPORT.

Feasibility Report decides the type of PPP model to be utilized, and

also governs the Transfer Period. Final Transfer is to Government.

Models of PPP where Turn-Key Contracts are used :

BOT : Build Operate Transfer.

BOOT : Build Own Operate Transfer.
DBFOT : Design Build Finance Operate Transfer.
BOLT : Build Operate Lease Transfer.
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 TENDERS AND CONTRACT

Essentials of Contract :
1. Parties competent to contract.
2. Free consent of Parties.
3. Need for definite proposal and its acceptance.
4. Consideration and Objects lawful.
5. Meaning shall be certain.

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TENDER TENDERS AND CONTRACT

A Written Offer submitted by contractors in pursuance to the

notification given, to execute certain work and/or supply of some
specified articles and/or to transport of materials at certain rates with
terms and conditions laid down in the Tender Documents.

Tenders are invited by means of TENDER NOTICE

Tender consists of 2 parts :

1. Tender Form .
2. Tender Documents.

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TENDER TENDERS AND CONTRACT
NOTICE INVITING TENDER

CHARACTERISTICS

• IMPORTANT DOCUMENT THAT FORMS BASIS OF TENDER AND

SUBSEQUENT CONTRACTS TO BE SIGNED UPON AWARD.
• STIPULATES TIME PERIOD OF CONTRACT ALONG WITH
CONTINGENCIES IF ANY.
• DEPENDING UPON EXPANSE OF WORK, AND TYPE OF WORK EITHER
DISPLAYED ON NOTICE BOARD OF DEPARTMENT OR GIVEN IN ANY 2
( ENG + LOCAL ) NEWSPAPERS. COMPANY WEBSITE.

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TENDER TENDERS AND CONTRACT
NOTICE INVITING TENDER COMPONENTS

1. Name of Authority inviting Tender.

2. Eligibility Criteria of Contractors.
3. Name of Work & Location.
4. Estimated Cost of Work.
5. Price of Tender Form & Tender Documents.
6. Earnest Money to be Deposited. ( Nationalized Bank DD, Revenue Deposit RBI )
7. Time of Completion.
8. Last date of sale of tender documents.
9. Last date, Time Limit, Place of receipt of tender.
10. Time of opening of tender.
11. Accepting Authority.
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TENDER TENDERS AND CONTRACT

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TENDER TENDERS AND CONTRACT

Tender consists of :
1. Tender Form .
2. Tender Documents.

Tender Form : ( Accompanied by Memorandum ) Part of Tender

( to be purchased along with other documents from office inviting
tender, in working hours )
1. Standard Form of Contract :
Standard Conditions of Contract, GCC.
General Rules & Directions of guidance for contractor.
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TENDER TENDERS AND CONTRACT

2. Memorandum :
General Description of Work/s.
Estimated Cost.
Earnest Money.
Security Deposit.
Time of Contract/ Work.

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TENDER TENDERS AND CONTRACT

Tender Document :
1. Notice Inviting Tender.
2. Tender Form.
3. Schedule Of Quantities, Bill Of Quantities.
4. Special Terms and Conditions.
5. Standard Specifications.
6. Special Specifications.
7. Set of Approved Drawings.
8. List of Applicable I S Codes.
9. List of Approved Brands.
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TENDER : Administrative Highlights TENDERS AND CONTRACT

PRE-TENDERING THEN POST TENDERING ( ARCHITECT )

PRE-TENDERING :
1. Upon request from client empanelled architects prepare design
brief, take measurements etc and prepare design for client
approval.
2. Upon client Approval proceed to making estimates and draft
specifications.
3. Upon final approval of Design, drawings, estimates, draft specs,
FINAL SET IS PREPARED and submitted to client for floating
tenders.
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TENDER : Administrative Highlights TENDERS AND CONTRACT

POST- TENDERING :
COMMERCIAL BID THEN TECHNICAL BID
1. Tendering System is 2 Part System : CB THEN TB.
2. Sealed Tenders have to be submitted in 1 Envelope having 2
separate sealed envelopes earmarked “ COMMERCIAL BID AS 1” &
“ TECHNICAL BID AS 2”.
3. Tenders of tenderers clearing Commercial Bid only enter into the
Technical Bid.
 ALL PAGES OF CB & TB to be duly signed and stamped by
contractor.
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TENDER : Administrative Highlights TENDERS AND CONTRACT

POST- TENDERING :
1. Client upon receiving tenders, opens tenders in front of tenderers
& committee and Architect/ Project In- Charge loudly announcing
VALUE OF COMMERCIAL BIDS & DETAILS OF EM.
2. All present sign on “ Tender Opening Sheet “, marking closing of
Commercial Bids. As per schedule Technical Bids of successful
tenderers is opened, either on same date or on later designated
date in front of successful tenderers.
3. CB & TB are submitted to Project In-Charge & he has to evaluate
the same in client’s office only.
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TENDER : Administrative Highlights TENDERS AND CONTRACT

POST- TENDERING :
4. Project In Charge/ Architect prepares COMPARATIVE STATEMENTS.
Starts Negotiations along with Client. Successful tenderers are
called for Negotiation Meetings.
5. Previous works of successful tenderers are evaluated at parallels.
6. Tenderer who can passes “FLOOR TEST” is awarded the work &
Contract is signed & Work Order is issued.
7. Awardee initiates preparatory work , commences work after
intimating Project In Charge/ Architect.
8. Work commences & progresses under strict supervision of Project
In Charge/ Architect. 46
TENDER : Administrative Highlights TENDERS AND CONTRACT

POST- TENDERING :
9. Billing as directed in tender is done. Works done, measurements
are taken and bills are certified and cleared in prescribed time.
10. TRIPLICATE BOOK MANDATORY. PIC/A ensures Project
Management, Material Management, Quality & Quantity
Management.
11. Contractor to follow instructions in TRIPLICATE BOOK.
12. Contractor to do all damages good.
13. Upon satisfactory completion of all works/ scope of contractor,
PI/A to issue Completion Certificate.
14. Client to pay SD/RM after completion of maintenance period. 47
TENDER : Administrative Highlights TENDERS AND CONTRACT

EARNEST MONEY ( E M ) : SECURITY DEPOSIT ( S D )

1. Tenders unaccompanied with E M rejected summarily.
2. E M of unsuccessful tenderers returned within 1 week.
Unsuccessful contractors cannot claim interest on EM. EM of 2 & 3
lowest to be returned within 15 days of acceptance of tender.
3. E M of Successful Tenderer converted to Security Deposit, and
additional amount as security shall be deducted as Retention
Money from progressive/ Running Bills.
4. EM/EMD is usually 2.5% of Estimated Cost.

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TENDER : Administrative Highlights TENDERS AND CONTRACT

SECURITY DEPOSIT ( S D )
1. SD is usually 10% of Estimated Cost.
2. S D is released after all damages done good & after satisfactory
completion of works , Completion Certificate issued by Project-
Head.
3. Retention Money in some cases is treated as S D in case contractor
fails to discharge his obligations/ fulfill his scope.
4. SD/RM may be forfeited in whole/part depending upon the
obligations/scope not completed, and extent of damages owner
has to bear to do damages good.
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TENDER : Administrative Highlights TENDERS AND CONTRACT
CONDITIONS OF CONTRACT comprise of :

1. Amount of SD.
2. Compensation in case of Delay.
3. Forfeiture of SD, in part or whole.
4. Contractor remains liable to pay compensation.
5. Extensions of Time.
6. Completion Certificate.
7. Payment on Certificate.
8. Billing System.
9. Departmental Materials.
10. Execution of works in accordance to contract & tender.
11. Alteration in designs & specifications.
12. No compensation for alterations.
13. Compensations in case of bad works.
14. Works to be opened for inspection.
15. Notice before works are covered.
16. Maintenance Period.
17. Labor. Employment and Wages of Labor – Contractor’s responsibility. 50
TENDER : Administrative Highlights TENDERS AND CONTRACT

CONDITIONS OF CONTRACT comprise of :

18. Work on Holidays & Sunday.

19. Duties/Obligations of Contractor
20. Contract may rescinded. ( Subletting of works )
21. Sum payable by way of compensation by contractor.
22. Supervision by Higher Officers.
23. Terms of Bidding.
24. Canvassing PROHIBITED.
25. Reservation Of Rights and subsequents.
26. Revision Of Rates.
27. Submission of Work Program, BAR CHARTS, PERT, CPM. Progress on site.
28. Precautions to be taken by contractor.
29. SAFETY.
30. Sub Standard work results in Re-Work in whole/part.
31. Escalation.
32. Termination Of Contract.
33. Arbitration.
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TENDER : Administrative Highlights TENDERS AND CONTRACT

LIQUIDATED DAMAGES :

Virtual Damages : Late Completion : Contravening Statutory Authority

Permission.
Whole OR Part.

UNLIQUIDATED DAMAGES :

Actual Damages caused in work.

Breach of contract by contractor.

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TENDER : Administrative Highlights TENDERS AND CONTRACT
Duties and Liabilities of Owner :
1. Appoint PI/A . Appoint other staff in consultation with PI/A.
2. To intimate PI/A about project requirements & Time.
3. To give approvals on Designs, Drawings, Estimates, BOQ, Specs.
4. To enter into contract with contractor.
5. To give possession of site to contractor.
6. To provide unhindered electricity and water supply to contractor.
7. To safeguard works from outside forces beyond the control of PI/A &
Contractor.
8. To make timely payments of contractor’s certified bills.
9. Not to interfere directly with the work and make additions/alterations only in
consultation with PI/A.
10. To take over possession of completed project timely from contractor. 53
TENDER : Administrative Highlights TENDERS AND CONTRACT
Duties and Liabilities of PI/Engineer/Architect :
1. To prepare dwgs, specs and estimate in accordance to Owner’s requirement.
2. To check and verify soil conditions, site conditions well in advance &
incorporate as well as interpolate the same in design, specs ,BOQ & Estimate.
3. To prepare Tender, assist owner in Pre-Tendering-Tendering-Post Tendering
Works.
4. Supervise work and ensure Quality & Quantity Management.
5. To supply necessary drawings, working drawings to contractor without delay.
6. To bring to the notice of the owner shortcomings in work, delay in work with
solutions.
7. Take a neutral stance in case of disputes and arbitration to effect early
resolutions.
8. To ensure damage free completed site is handed over to owner. 54
TENDER : Administrative Highlights TENDERS AND CONTRACT
Duties and Liabilities of Contractor :
1. To inspect site & get himself acquainted with site conditions before filling
tender.
2. To prepare Analysis of Rates.
3. To get himself well acquainted with conditions and clauses of contract .
4. To start work without delay upon receiving Work Order.
5. To designated representative at all times on site.
6. To pay all royalties, fees, obtain all building permissions.
7. To follow Labor Act meticulously.
8. Protection of Site, Workmen, Owner, PI/A, and their representatives.
9. Submit claims in advance, with relevant explanations & drawings.
10. To ensure peaceful hand over of completed site.
11. To do all damages good. 55
TENDER : Administrative Highlights TENDERS AND CONTRACT
Termination Of Contract :
1. Contractor default in Time Period: Time is the essence of the contract.
2. Contractor Sublets contract.
3. Contractor becomes insolvent.
4. Contractor offers bribe, advantage, promise of kind or monetary gains.
5. Contractor contravenes drawings and specifications.
6. By Employer in case of change in policy, unavailability of work-site, or any other
administrative reasons before starting work.
7. Mutual Consent.

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