Any organization that wants to place an order after the inquiry is done, needs to fill out a tender. A tender is essentially an official letter that the organizations have to send for the procurement of the goods and services required on a large scale. For the execution of projects also tender notice is required. Thus, the tenders are filled when an invitation is received for bidding. In this, the organizations fill out their quoted prices in exchange of goods and services which are further subjected to stated conditions.
Preparing Tender Notices
A tender notice can be prepared in the form of tabular or serial or paragraph form. The tenders may be open to all the parties and are often done for pre-qualification purposes. They are meant for registered parties only.
While for the jobs that are funded through foreign assistance or loans which requires heavy technology or sophisticated machinery can be offered through global tenders.
Thus, the delivery details and the estimated value of services and goods are included in the tender. The bids that are made through tender are in non-transferable form. They are available in the form of documents, which are sold and printed only by the concerned authorities.
Further, these forms are divided into different sections which are dealing with commercial conditions and technical specifications of the product.
There is a difference between the tender and pre-qualification for a contract. Pre-qualification is completely different from a tender. It is not even a form of tendering. Because the document which precedes the tender is called pre-qualification. It is done to identify who are allowed to tender for the specific contracts.
Thus, an advertisement for pre-qualification does not mean an advertisement for tendering. Because pre-qualification just allows the organizations interested to express their desire in order to be eligible for a tender. Once the organization is pre-qualified for a particular contract than only it is eligible for that particular tender.
Browse more Topics under Business Correspondence
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- Human Resource Correspondence
- Goodwill Letters
- Purchase Correspondence
- Handling Complaints
- Sales Correspondence
- Accounts Correspondence
- Insurance Correspondence
Learn more about Purchase Correspondence here.
The Process of Tendering
The process of tendering is very simple. But care must be taken while preparing it because it is considered as the official document. And thus, once it is submitted it becomes a legal document and you have to follow the terms and conditions of that tender.
The tenders should be submitted in the sealed covers. Specific date and time need to to be mentioned on the top. It should also be accompanied with specified enclosures like EMD which earnest money deposit. This is normally 2% of the estimated value in the tender.
This is done to make sure that there are no non-serious bidders bidding for the contract. The deposited money will be refunded once the bidding process is successfully over. The firm that gets the contract has to replace this EMD with performance guarantees and has to offer up to 10% of the estimated amount and the experience certificates.
Once the bidding process is over, the first thing done is the technical details that are mentioned by the bidders are taken up to the discussion by the bidders. If the bid is accepted and you are not signing the contract than the EMD is forfeited.
Usually, in the bidding process, the firm with the lowest bid gets away with the contract. In order to curb the fraud, the governing body can reject all the bids without giving any proper reasons. The court that is given the jurisdiction can also intervene in the matter of any dispute.
Questions for You
Q. When the quotation is formed for the invitation, where is the name of the company who is invited being mentioned?
A. Bottom left corner
B. Left top corner
C. Top middle
D. Right top corner
Answer: D. Top right corner
Q. The advertisement for tender is done in ______
A. Domestic market
B. Social media
D. Business environment
Answer: C. Newspapers