Tendering process: It is a method where Indian government, as well as municipalities and most corporations issue a procurement notice in newspapers, official government publications and over the Internet for purchasing goods or services. In India the tender process is same as conducted in other parts of the world.
There are different tendering processes for different types of tenders.
The three types of tendering methods are Open Tendering; Selective Tendering and Negotiated Tendering.
OPEN TENDERING PROCESS IN INDIA:
This tendering process comprises various stages.
The first phase includes the pre-qualification stage, where the client lays down criteria for qualifying for the work being tendered. This phase is considered as an important stage as it drastically cuts the number of bidders and select only capable bidders.
The second stage is the tender invitation phase, where the client publishes or issues invitations to shortlisted bidders or to the public. This may not require media channels for communication.
The third stage is the tender clarifications and addenda phase, in which the client responds to the queries raised by the bidders in writing. It also engages possible issuance of tender addendums amending parts of the tender documents.
The fourth stage is the tender offer/bid submission phase where bids are presented in the form specified, mostly sealed envelops and then there is the tender opening and the post tender clarification phase whereby the client goes through the tenders and seeks any clarification from the bidders.
The next stage is the award phase where the client issues an acceptance letter to the successful bidder who is usually, but not always, the lowest bidder and the last stage includes the formalization of contract phase where the necessary documents are signed to formalize the agreement.
Selective tendering process:
In selective tendering process, the client selects only contracts that have delivered excellent results in previous similar tenders. This process includes three ways such as: an advertisement may produce several interested contractors and suitable Firms are selected to tender; the consultants may contact those they would wish to put on an ad-hoc list; and many local authorities and national bodies keep approved lists of contractors in certain categories, such as work type and cost range.
Negotiated tendering process:
In this process the client holds a one-to-one discussion with contractors to negotiate the terms of contract, as such tenders are mainly used for specialized projects like lift systems, airport projects etc at a larger level which includes a limited number of contractors who engage in these kind of projects from the industry .
In the Indian tendering scenario, frameworks are determined by guidelines set by the relevant international bodies including FIDIC or International Federation of Consulting Engineers for engineering-related tenders like computer tenders, civil work tenders and generators tenders.
However, the Indian central and state governments, Indian municipalities and establishments such as universities, the military and hospitals are governed by strict laws and only open competition bids are accepted.
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