Tender notice is the information inviting bids from competent and capable contractor and forms a part of contract document. It should be widely published in important daily newspaper.
When all the preliminaries i.e. development of project have been completed and owner has decided to proceed with the work, tenders are invited. Legally this is an attempt to ascertain if an offer can be received from interested contractors to execute the work in this the estimated limit of time and finance.
Detail information in Tender Notice
- The name and address of the Public Entity inviting bid
- Nature of work and its location
- The place of delivery of the goods to be supplied, or the construction work to be performed
- The amount of bid security and validity period of the bid
- Date, time and place where and when the tender document is available
- Cost of tender document
- The place, manner, deadline for the submission of the bidding documents
- Provision of e-bidding and its process
- The place, date and time for the opening bids
- Expected date of acceptance of successful bids etc.
Earnest Money/ bid bond/ bid security
It is the amount of money deposited while bidding a tender as a guarantee of the party’s willingness of carrying out the work awarded to him. Bidder shall have to submit the bid along with bid along with bid security of at least 2 to 3 % of the estimated amount of the bid. It provides guarantee of the party’s willingness of carrying out the work if he is awarded. The earnest money is deposited will be returned to unsuccessful bidders.
It is the amount of the money deposited by a successful bidder as a security for Satisfactory performance. In Nepal security deposit is equal to 5% of contract amount. If the contractor bids below than 15%, additional half of the percentage more than 15% should be deposited. This is refunded after completion of defect Liability Period (maintenance period). If the work is unsatisfied or contractor fails to perform his duty this fund is forfeited.
Priority of contractor Document
https://pscnepal.com/wp-admin/options-general.php?page=ad-inserter.phpThe document forming the contract shall be interpreted in the following order of priority:
- Contract Agreement
- Letter of Acceptance
- Contractor’s bid
- Special Conditions of Contract
- General condition of Contract
- Bill of Quantities
Conditions of Contract
Whatever agreement is reached between different parties, it is followed certain terms and reference that bind all the parties reaching the agreement. These terms and reference that bind all the parties reaching the agreement are called conditions of contract. Its purpose is the easy and smooth functioning of work and minimizing disputes. It contains two parts:
- General condition of contract
- Specifications provisions of contract
It is a kind of short listing of eligible bidder to avoid crowding of bidder.
- Experience and past performance on similar contract
- Capabilities w.r.t. personal, equipment and construction facilities
- financial position
- Litigation history
No pre-qualification process is adopted. All the eligible bidders participate in the process. It may include:
- Single envelope system (Financial proposal only)
- Double envelope system (Financial & technical proposal in separate envelope)