Define Tender | Types of Tenders

Tender

Define

A tender is a written offer submitted by an intending contractor, in pursuance of the notification issued, to execute certain work at certain rates with the terms and conditions laid down in the tender document.

Types of work may be: -

1. Construction work of any project

2. Supply of required material

3. Transportation of material

4. Providing labour for the work

Types of tender

1. Open or public tender

2. Selected or limited tender

3. Negotiated tender

4. Rate contract

Open or Public Tender

In this type of tender, any contractor can enter into competition and all formalities of giving opportunity to complete are to be fulfilled. It is compulsory for public works and because of competition; it may result in low cost.

The tenders are invited by an advertisement in news paper.

Open or public tenders are father divided into two categories.

a) Global tender

b) Public tender

Selected or Limited Tender

For this type of tender, the architect after consultation with his client and invites a limited number of contractors for filling up the tender of the project. It results into competition on a small scale. But it proves to be useful for specialized and skilled works. It also leads to early successful completion of the project.

Negotiated Tender

This is the advanced form of selective tender and the contract is given by negotiations with one or at the most two contractors. As such there is no competition in this type of tender and hence it may prove to be costly