The person accepting the proposal is called the promisee owner. Consideration is the price in terms of money, good or services paid of the thing that the promisor wishes to have. An agreement enforceable by law is a contract: an agreement not enforceable by law at the option of others is a voidable contract.
TENDERS A 'tender' is called upon for executing certain specified work, or supplying specified materials; subjected to certain terms and conditions like rates, time limit, etc. An architect must observe the following, before inviting tenders: a Accuracy in bill of quantities as far as possible. The tender documents issued to various contractors must be complete in every respect and should specify details of the work.
Each tender form must contain the following: 1. Special notice issued either in name of the owner or the architect. Tender acceptance letter from the contractor. Articles of agreement with special conditions of contract. General specification. Bill of quantities incase of item rate tender.
Special conditions and detailed specifications of work in case of lump sum tender. Balanced one as no undue profit or loss to the contractor. Speculation to a very small extend. Work can be commenced after complying with a few formalities like acceptance of tender, etc. All plans, specifications should be prepared in advance. Elevations and details can be supplied later on. Standard quality of materials and good workmanship are assured. Unbalanced one resulting in excessive profit or loss to the contractor.
More of a speculative nature. Unless all the formalities are compiled with the work cannot be commenced. All the details, plans, elevations, specifications, etc. Standard quality of materials and good workmanship are not assured. Unbalanced one resulting in more cost of construction and hence more profit for contractor unless checked by bonus and penalty clause.
No speculation at all. Work can be commenced immediately without waiting for all formalities. All details, elevations etc. Standard quality of materials and good workmanship at the cost of economy. Extra works are minimized. Total cost of construction is not known prior to commencement of work. Variations in the drawing can be made if required as the items of the works are measured and paid for.
Essential variations can be made so as not to spell the design. More and more of extra works. Total cost of construction is known prior to commencement of work. Variations will be required considerable thinking due to exorbitant claims that can be made by the contractor for the extra work. Design is likely to be spoiled due to restrictions on the variations. Total cost of construction is not known in advance. Variations can be made resulting in the increased cost of construction.
Variations can be made so as not to spoil the design. Compulsory for public works. Suitable for private works Suitable for private works of small magnitude or for repair works, and works of additions and alterations to an existing building. Keen competition and formation of a syndicate Competition on a small scale, chances of formation of a syndicate are there.
No competition and no syndicate. Financial integrity and organization for the work are not known Financial integrity, etc. Financial integrity, etc. More chances of disputes Less changes of disputes Less changes of disputes.
Opens field for new brilliant contractors. New contractors do not step in the field. Negotiated with one or maximum of two known contractors, and hence question of new contractors does not arise. Not very well suited for specialized and skilled works. Suitable for specialized and skilled works. Also the documents that were provided to contractor during tender stage can the same documents be mentioned as as contract document in LOA.
In a tendering process, the prices are submitted by the contractors in a sealed tender. The contractor with lowest price called as L1 and others L2, L3 for next higher rates. The next step after decalring L1, L2 and L3 is call them for negotiation for further reducing the rates.
Thus, the rates quoted by contractors in a tender document is not final and can change during the negotiation stage. Thus, the tender document can not be included in the contract document.
The LOA documents contain all the documents in tender documents as well as revised rates quoted by the contractor. But the tender documents are not the acceptance of the contractor do complete the work as per conditions mentioned in it.
But when a contract document i. LOA is agreed and signed by both parties, the contractor has to complete the work as specified and as per the terms and conditions in the document. The point here is to understand that the tender and contract documents may not have much difference in their contents, but they differ by their title, their importance and their legal validity. So, tender documents can not be issued as LOA. Hii Gopal Thanks for clarification about tender and contract documents with good example.
Mr Gopal mishra, is award of contract only limited to the bidder with the lowest rates? I think it is based on best financial and technical offer.
Am i right? Join Join TheConstructor to ask questions, answer questions, write articles, and connect with other people. Have an account? Log in Now. Join for free or log in to continue reading Remember Me! Don't have account, Join Here. Forgot Password Lost your password? Ask A Question. What is the difference between Tender and Contract Documents? Gopal Mishra. View Profile. What are the difference between Tender and Contract Documents? Tender Documents: A tender is an offer in writing to contractors to execute the some specified works or to supply specified materials within a fixed time frame and as per conditions of contract and agreement between the contractor and the owner or the department or the party.
Contract Documents: Contract documents are the agreement between the owner or the party or the department and the contractor to execute the works as specified in the tender documents as per conditions of contract on the rates quoted by the contractor. The difference between Tender and Contract Documents: The difference here to be noted is that tender documents are offered to as many contractors as possible to get the lowest quotes for the work specified, while the contract documents are signed only with the contractor with lowest tender or rates.
Simple Example to understand the difference between tender and contract documents: When you are selected for a job in a company you are offered offer letter to join the company. Get Fresh Updates On your job applications, and stay connected. Download Now. Start networking and exchanging professional insights Register now or log in to join your professional community.
Follow What are the differences between Tender and Contract Documents? Upvote 0 Views Followers 2. Write an Answer Register now or log in to answer.
0コメント