Tenders & E-Tenders

TENDER PROCEDURES
IN ANDHRA PRADESH
 TENDER
• ‘Tender’ means the formal offer made in
pursuance of an invitation by the procuring entity.
• ‘Procuring Entity’ means
1. Government Departments.
2. Public Sector Undertakings of the Government.
3. Statutory Boards formed by the Government.
4. Local Bodies in the State.
5. Co-operative Institutions in the State.
6. Universities.
7. Societies formed by the Government.
 Classification of tenders
1. OPEN TENDER
• The system of invitation of tenders by public
advertisements in the most open public manner possible
should be used as a general rule and must be adopted
with certain exceptions (limited tender, Special Limited
tender, single tender or dispensing with tenders)
• It is mandatory that Open Tenders be advertised in
Newspaper.
• In an Open Tender, Bids are invited through extensive
publicity and is hence the most preferred mode of
tendering.
 Classification of tenders
2. LIMITED TENDER
• Where for reasons, which should be in the public
interest, it is considered not practicable or advantageous
to call for open tenders, limited tenders may be invited
with approval of the competent authority.
• The reasons for inviting Limited tenders from
firms/contractors should be kept on record.
• Limited tenders may be invited from all the eligible
contractors borne on the approved list. Exception may
be made where the previous record of the contractor
has not been satisfactory, but the reasons thereof should
be recorded in writing.
 Classification of tenders
3. SINGLE TENDER
• Single Tendering (also referred to as “Nomination
basis” or “Negotiation Basis”) refers to issuing Tender
to one identified participant.
• Generally, Single Tenders are issued for an item where
there is only one supplier or for an item where the
purchaser has developed confidence in one supplier
only and would just like to verify the current price,
delivery etc.
• Single Tenders are also issued for items of proprietary
nature.
 Classification of tenders
3. SINGLE TENDER (Contd..)
• Selection of bidder through Single Tender does not provide
the benefits of competition and transparency, and has high
risks of unacceptable practices associated with them. Hence
calling of single tender should be resorted to only in
exceptional circumstances after recording necessary
certificates that:
1. It is not in the public interest to call for tenders.
2. The demand is urgent.
3. No other suitable contractor is available to execute the work.
4. It should also be recorded as to why single tender is being
resorted to in preference to limited tenders.
 Classification of tenders
Rate contract:
• Usually adopted for supply of materials,
machine, tools & plant, etc. (items to the
store).
• It specifies the supply at a fixed rate during the
period of contract.
• The quantities are not mentioned in type of
contract and the contractor is bound to accept
any order which would be placed before him.
 Routes to be followed for Tendering

• Depends primarily on the Statutory Norms or

the Financial Institutes .
ICB : International Competitive Bidding
LICB : Limited International Competitive Bidding
NCB : National Competitive Bidding
 Calling of Tenders
1.Conventional Tender Box Method
The tenders for works costing below Rs 10 lakhs
are called under conventional Tender box Method.
2. E-procurement Method
The tenders for all works costing more than Rs 10
lakhs are called through e-procurement platform
on www.apeprocurement .gov.in

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 Conventional (Tender box) system

1. Tenders for works costing below Rs 10 lakhs are

called through conventional tender box system.
2. Tender documents will be issued by the tender
calling authorities on payment of EMD @ 1% of
the value of work through DD (returnable to un-
successful bidders).
3. Tenders have to be deposited in the boxes
provided at the office of tender calling authority

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 Conventional (Tender box) system

4. Tender box will be sealed on the last date/time

fixed
5. Tenders will be opened on the date/time fixed, in
the presence of bidders present
6. Tenders will be evaluated and the lowest bidder
announced.
7. The successful bidder will enter into agreement
by paying the balance 1.5% EMD

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 e-Procurement:
1. All works costing above Rs.10 lakhs shall be
through “e” procurement platform at the web site
www.apeprocurement.gov.in.
2. The tender notice, tender schedules etc will be
uploaded by the depts. at the above web site.
3. The bidder registered at the above web site can
see/down load the tender documents.
4. The bidder interested to tender, should upload his
documents, certificates, technical bid, price bid,
xerox copy of the DD/BG for EMD etc., in the
above web site.

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 e-Procurement: (Contd…)
5) The hard copies of all the documents uploaded are to
be submitted at the time of agreement.
6) Failure to furnish hard copies of any of the uploaded
documents will entail rejection of the bid. and
suspension from participating in future tenders for 3
years period.
7) Before the closure date / time, the bidders can alter their
offer, but after the closing date / time they cannot alter
their bids.
8) Till the scheduled date/time fixed for opening of the
tenders, nobody can see and know who has filed the
bids.

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 e-Procurement: (Contd…)
9) On the scheduled date & time, the technical bids will be
opened “online” and the technically qualified bidders are
identified, verifying their eligibility, with reference to
qualification criteria specified.
10) On the scheduled date & time, the price bids of the
technically qualified bidders will only be opened “on
line”, and the successful bidder is identified.

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 The Tendering Process
Step 1 : NIT – Notice Inviting Tender (Advt., Post , Email. )
Step 2 : Tender document Floating/ Selling
Step 3 : Pre Bid Meeting
Step 4 : Bid Submission- In Single Phase or Two Phases
Step 5 : Bid Opening – In Single Phase or Two Phases
Step 6 : Bid Evaluation
Step 7 : Post Bid Meeting
Step 8 : Report Formation
Step 9 : Award of Contract
 Tender Notice or Notice Inviting Tenders (NIT)

• Tender Notice or Notice Inviting Tenders (NIT) will be

approved by the Engineers for the works for which they are
competent to accord technical sanction.
• For the works up to Rs. 200 lakhs the tender notice shall be
published in District editions of two Telugu dailies with the
largest circulation.
• For works costing more than Rs. 200 lakhs, the tender
notices will be published in one Telugu daily and one
English daily having largest circulation at the State level.
• To reduce the cost of each publication, the format for the
tender notice in the newspaper shall be finalized by the
Board of Chief Engineers so that the cost of the
advertisement is kept to the minimum.
Contents of NIT (Notice Inviting Tender)
• Name of the work :
• Estimate Contract value of work put to tender :
• Period of completion of work :
• Form of contract / Class of contractor eligible :
• Cost of Tender documents :
• E.M.D. to be paid in the shape of DD / BG for issue of
Tender documents.
• Place & Period for Sale of Tender Documents:
• Last date and time for Receipts of tenders :
• Last date and time for submission of Tenders :
• Date, time and place of opening of tenders a)Technical
Bid b)Price Bid:
 Tender Document
• ‘Tender Document’ means a set of papers containing
schedule of works, rates, requirement of goods or
services, technical specifications, procedure and criteria
as may be prescribed for evaluation and comparison of
tenders and such other particulars as may be prescribed;
• The Tender documents will be prepared by the concerned
Engineers, bringing greater transparency indicating the
provisions made in the estimates for items which are
reimbursable to the contractors with conditions therefore
and relevant conditions relating to the implementation of
the contract and other eligibility criteria on both physical
and financial requirements in addition to the conditions
contained in the APSS, APWD code.
 Contents of Tender Document
• One set of Tender document, comprises of the following:
Technical bid
1) Notice Inviting Tenders (NIT)
2) Instruction to Tenderers on qualification criteria etc.
3) Forms of Tender and qualification information
4) Conditions of Contract. (General & Special)
5) Specifications of works to be executed.
6) Drawings.
7) Forms of Securities. i.e., EMD, Additional Security
etc.
Price bid
Bill of Quantities and Price bid containing details of items of
works to be executed, their quantity, Rate, Amount, Total cost
of the work put to tender as per department estimate.
 Amendment to Tender Documents
• Before the last date for submission of Tenders, the
Tender Inviting Officer may modify any of the
Contents of the Tender Notice, Tender documents by
issuing amendment / Addendum.
• Any addendum/amendments issued by the Tender
Inviting Officer shall be part of the Tender Document
and it shall either be communicated in writing to all
the purchasers of the Tender documents or notified in
the News Papers in which NIT was published.
• To give prospective Tenderers reasonable time to take
an addendum into account in preparing their bids, the
Tender Inviting Officer may extend if necessary, the
last date for submission of tenders.
 Tender schedules
• The tender schedules should contain not only the
quantities but also the rates worked out by the Dept.
and the amount for each item and the total value of
the contract.
• The tenderer will not be required to quote item
wise.
• He should indicate his willingness to do the work
either at the estimated value of the work or at a
percentage in excess of the estimated value of the
work or at a percentage less than the estimated
value of the work.
 Tender schedules (Contd..)
PREVENTION OF COLLUSION OF CONTRACTORS:
• With a view to prevent collusion or the formation
into a ring by contractors, the following orders are
issued:-
(a) Tender schedules shall be issued till a date prior to the
last date of submission of tenders
(b) once a contractor buys a tender schedule he shall not be
permitted to return the schedule.
(c) After buying a tender-schedule, if a contractor does not
tender for the work, his EMD shall be forfeited (cash or
bank guarantee or both).
 The Pre Bid Meeting
• Subsequent to the purchase of Tender Document, the
prospective Bidders, Employer and Consultants meet for
discussions with following objectives :
 Provide clarification to the Bidders- Technical or
Commercial
 Communicate any additional information on the Project
 Do necessary revision in the tender documents as per
industry feedback
 Ensure minimum deviations
 Critical points to explained and discussed
• The Minutes of Pre Bid Meeting are recorded and it may be
followed by an Amendment or Addendum to the Tender
documents
 Types of Bidding
 Single cover system:
 The Technical / price bid are kept in single cover.
 Double cover system:
 The technical bid and the price bid are kept in two
separate covers.
 First technical bid will be opened and evaluated with
reference to the qualification criteria prescribed.
 The price bids of technically qualified bidders only
will be opened, and the lowest bidder will be
identified.

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 Receipt of tenders
(Conventional Method)

• The tenders shall be received at the place and time

as specified in the Tender Notice.
• The contractor shall be allowed to submit the tender
either personally or through his agent or by post. In
case of submission of tender by post the risk and
responsibility for either loss or delays in transit of
the same is to be borne by the contractor.
• The tender opening authority will not consider any
tender received by him after the expiry of date and
time fixed for receipt of tenders.
 Receipt of tenders
(Conventional Method)

• Tender will be received in two parts in 2 different

sealed covers. Cover-A and Cover-B.
• The Cover-A shall contain the qualification data
viz Annual Turnover and value of works under
execution etc.,. (Technical Bid)
• The Cover B will contain the financial bid/ Price
bid for the work in question.
• The cover A and Cover B will be sealed and kept in
another sealed envelope (cover C) supplied by the
department while issuing Tender Schedules.
 Receipt of tenders
(Conventional Method)

• The time allowed from the date of publication of

tender notices to the date of receipt of tenders is
14 days.
 Receipt of tenders
(Submission of Bids online)
• Bidders who are desirous of participating in ‘e’ procurement shall
submit their technical bids, price bids etc., in the standard formats
prescribed in the tender documents, displayed at ‘e’ market place.
• Bidders should upload the scanned copies of all the relevant
certificates, documents etc., in the ‘e’ market place in support of
their technical bids.
• Bidder shall sign on all the statements, documents, certificates,
uploaded by him, owning responsibility for their correctness /
authenticity.
• If any of the certificates, documents, etc., furnished by the
tenderer is found to be false / fabricated / bogus, the tenderer will
be black listed and the EMD forfeited.
 Opening of tenders
(Conventional Method)

• The EEs and SEs delegated with the power to invite the
tenders will open and evaluate the tenders as per the
qualification criteria.
• While opening the tenders care should be taken to first
open Cover-C in the presence of the tenders or their
authorized representative and other officials concerned on
the specified date and time and also to verify whether the
Cover-A and Cover-B are properly sealed and minutes be
recorded to this effect then and there only.
• In case the Covers A&B or any one of them are found
unsealed, such tenders will not be opened and summarily
rejected.
 Opening of tenders
(Conventional Method)
• First cover (cover-A) with superscription as
“TECHNICAL BID” which shall contain the qualification
data will be opened.
• Second Cover (Cover-B) with the superscription of
“PRICE BID” shall contain the Schedule-A i.e., the
statement of description of work, quantity, estimate rate
and amount.
• Price bid (Cover-B) of those tenderers who are
determined as qualified as per eligibility criteria will be
opened on the date specified in the tender notice.
• The Cover-B of un-qualified tenderers will not be opened
and kept in the safe custody till the tenders are finalized
and there after shall be returned to them along with EMD.
 Opening of e-Tenders
• The tenders will be opened online by the
Superintending Engineer or his nominee at his office
in the presence of tenderers / or their authorised
representatives at the time and date as specified in the
tender documents.
• All the statements, documents, certificates, DD/BG
etc., uploaded by the tenderer will be downloaded and
verified for technical evaluation.
• The clarifications, particulars if any required from the
tenderers will be obtained either online or in the
conventional method by addressing the tenderers.
 Opening of e-Tenders (Contd..)
• The technical bids will be evaluated against
the specified parameters / criteria, same as in
the case of conventional tenders and
technically qualified bidders will be identified.
• The result of technical bid evaluation will be
displayed on ‘e’ market place which can be
seen by all tenderers who participated in the
tenders.
• Similarly the price bid of all the technically
qualified bidders will be opened online.
 Qualification criteria for works
costing less than Rs 50 lakhs
• Single cover system is followed
• Any registered contractor is eligible to
tender.
• No other technical qualification criteria is
required, except valid registration, IT
clearance, Sales Tax clearance, Solvency etc.

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 Qualification criteria for works
costing more than Rs 50 lakhs
1) The bidder should be a registered contractor
with Govt. of A.P and should possess valid
registration as on the date of filing of bids.
2) The bidder should be registered with I.T /
Commercial Tax/ labour etc departments .
3) The bidder should have filed up to date
returns to I.T department and Commercial
Tax etc departments. (GST)

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 Qualification criteria for works
costing more than Rs 50 lakhs
4. The bidder should satisfy the following
Technical Qualification criteria for opening of
the price bid.
(a) Completed similar works of value (not less
than 50% of ECV) in any one year, during last 5
years.
Note: It may be explicitly understood that word
‘Completion’ means that a Contractor should have
completed the work within the block period provided.
In case a similar work was executed in two or more
financial years, the value executed in any one year
should be considered and after updating to the present
price level, it should be compared to the required value.

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Qualification criteria for works
costing more than Rs 50 lakhs
Similar works are those which are alike to
the work in question.
Normally to assess the similar works, first
see whether they belong to the same category
of works for which tenders are invited.
Secondly the principal components involved
in the work in question and their similarity in
the experience produced by the tenderer must
be examined.
Qualification criteria for works
costing more than Rs 50 lakhs
(b) Executed the following quantities in any one year
during last 5 years.
1. * Earth work ….cum
2. BT……cum
3. WBM ……..cum
4. PCC/RCC……cum
5. Any other principal items
(* Quantities are to be fixed considering 50% of the
quantities to be executed in the project in one year. If
the completion period of the project is more / less than
one year, the proportionate quantities per year have to
be worked out and 50% of them have to be specified).

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 Qualification criteria for works
costing more than Rs 50 lakhs
5. Should possess the key construction
equipment specified.
6. Should possess the technical personnel
specified.
7. Should possess the liquid assets (3 months
requirement of funds)
8. Should have own Q.C. lab or tie up with a
Q.C institute. (In respect of works costing
more than Rs.2.00 crores)
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 Qualification criteria for works
costing more than Rs 50 lakhs
9. Available Bid capacity
The available bid capacity as worked out below shall be
more than E.C.V (estimated contract value) put to
Tender.
Available bid capacity = 2 AN-B
Where:
A = Max value of civil engineering works executed in any one year, during
the last 5 financial years.
N = period of completion in years ( of the work put to tender)
B = value of existing commitments and ongoing works to be completed
during the period of completion of works for which tenders are invited.
Note: Value of A & B shall be updated to current year
considering escalation at 10% per annum.

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 Qualification criteria for works
costing more than Rs 50 lakhs

9(a) Available bid capacity = 3 AN-B

(Amended vide: G.O.Ms.No. 13 Water Resources (Reforms)

Department Dated: 10-02-2017)
This amendment is applicable only for all the
works to be taken up by Water Resources
Department.

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 Validity of Tenders
• Tenders shall remain valid for a period of not less than three
months from the last date for receipt of Tender specified in
NIT.
• In exceptional circumstances, prior to expiry of the original
time limit, the Tender Inviting Officer may request the bidders
to extend the period of validity for a specified additional
period. Such request to the Tenderers shall be made in
writing. A Tenderer may refuse the request without forfeiting
his E.M.D.
• A Tenderer agreeing to the request will not be permitted to
modify his Tender, but will be required to extend the validity
of his E.M.D. for a period of the extension.
Finalization /Acceptance of Tenders
• Tenders will be finalized by the EES /
SEs /CEs for the works costing up to their
powers to accord technical sanctions.
– Upto 40.00 Lakhs – Executive Engineer
– Beyond 40 lakhs upto 200 lakhs – Superintending Engineer
– Beyond 200 lakhs upto 10.00 Crores – Engineer-in-Chief /
Chief Engineer
• Tenders will be finalized by the COT for
the works costing above Rs. 10.00 Crores
 Finalization /Acceptance of Tenders
• The tenders for the works costing more than Rs.10.00
crores will be referred to COT along with Technical
Bid evaluation and Price Bid evaluation for
consideration.
• The COT shall scrutinize the tenders submitted by
Engineer-in-Chief/ Chief Engineer in accordance with
the conditions stipulated in the tender document and
in case any discrepancy of non-adherence to the
conditions, the same shall be communicated which
will be binding both on the tender concluding
authority and contractor.
• In case of any ambiguity the decision taken by the
COT on tenders shall be final.
 Re-evaluation of tenders
• The tender opening authority (EE/SE) will evaluate
whether each Tenderer is satisfying the eligibility criteria
prescribed in the tender document and declares them as a
qualified Tenderer.
• If the technical bid of a Tenderer is not satisfying any of
the eligibility criteria it will be rejected by the tender
opening authority .
• However, the tender accepting authority detects any
error in the evaluation of Tenders by EE/SE/CE, the
tender accepting authority while returning the tenders
may direct the EE/SE/CE as the case may be, to re-
evaluate the tenders.
 AWARD OF CONTRACT
• The Superintending Engineer / Chief Engineer will
award or recommend to the Competent tender
accepting authority for award of the contract to the
Tenderer who is found Technically qualified as per
the Tender conditions and whose price bid is lowest.
• The Tenderer (whose Tender has been accepted) will
be notified of the award of the work by the Tender
accepting authority, prior to expiration of the Tender
validity period by registered letter called “Letter of
Acceptance”.
 Signing of Agreement
• Upon intimation being given by the
Superintending Engineer, of acceptance of his
tender, the tenderers shall make payment of the
balance E.M.D., and additional security deposit
wherever needed by way of DD or
unconditional and irrevocable BG obtained from
a Nationalised / Scheduled Bank with a validity
period of Six (6) months, and sign an agreement
in the form prescribed by the department for the
due fulfillment of the contract.
 Signing of Agreement (Contd..)
• The written agreement to be entered into between the
contractor and the Government shall be the
foundation of the rights and obligations of both the
parties.
• And the contract shall not be deemed to be complete
until the agreement has first been signed by the
contractor and then by the proper officer authorised to
enter into contract on behalf of the Government.
• The successful tenderer has to sign an agreement
within a period of 15 days from the date of receipt of
communication of acceptance of his tender.
 Signing of Agreement (Contd..)
• The Agreement comprises of:
 Details of items to be executed, their quantities, rates
payable.
 Drawings showing the details of components to be
executed.
 Detailed specifications of all the items to be executed.
 Construction programme, mile stones to be achieved.
 Payment schedule in respect of EPC works.
 Quality control tests to be conducted on the material
/works.
 Rules and regulations to be followed during execution of
the project.
 Rejection of tenders
• The tender accepting authority reserves the right to
accept or reject any Tender or all tenders and to cancel
the Tendering process, at any time prior to the award of
Contract, without thereby incurring any liability to the
affected Tenderer or Tenderers or any obligation to inform
the affected Tenderer or Tenderers of the reasons for such
action.
• The tenders received without the stipulated EMD or
with any short fall in the amount or period of validity will
be summarily be rejected.
 Rejection of tenders (Contd..)
• Any effort by a Tenderer to influence the processing of
Tenders or award decisions may result in the rejection of
his Tender.
• Tenders with an excess of above 0% of the estimated
contract value shall summarily be rejected.
• If the percentage quoted by a tenderer is found to be
either abnormally high or with in the permissible ceiling
limits prescribed but under collusion or due to unethical
practices adopted at the time of tendering process, such
tenders shall be rejected.
 Rejection of tenders (Contd..)
• In case of any discrepancy between the overall tender
percentage quoted in words and figures, the percentage
quoted in words shall prevail. In case contractor has
quoted overall tender percentage only in words and not in
figures or vice versa, such tender shall be treated as
incomplete and rejected.
• If any alteration is made by the tenderer in the tender
documents, the conditions of the contract, the drawings,
specifications or statements / formats or quantities the
tender will be rejected.
 Rejection of tenders (Contd..)
• The Government require that the bidders / suppliers /
contractors under Government financed contracts,
observe the highest standard of ethics during the
procurement and execution of such contracts. In
pursuance of this policy, the Government will reject a
proposal for award if it determines that the Tenderer
recommended for award has engaged in corrupt or
fraudulent practices in competing for the contract in
question.
• Tenders signed on behalf of G.P.A. holder will be
rejected.
 Blacklisting of Tenderers
The tenderers are liable to be debarred /
suspended / blacklisted if they have
1. Have furnished false / fabricated particulars
in the forms, statements and /annexure
submitted in proof of the qualification
requirements and/or
2. Not turned up for entering into agreement,
when called upon.
 Blacklisting of Tenderers
3. Have record of poor progress such as
abandoning the work, not properly completing
the contract, inordinate delays in completion,
litigation history or financial failures etc.
4. Have participated in the previous bidding for the
same work and had quoted unreasonably high
tender percentage and
5. Even while execution of the work, if found that
the work was awarded to the Contractor based
on false / fake certificates of experience, the
Contractor will be blacklisted and work will be
taken over invoking clause 61 of PS to APSS.
 Ceiling of Tender Premium:
• For all works the ceiling of tender premium shall
be 5% .
• As per the guidelines, even after two calls if the
tender premium quoted is more than 5%, the
matter should be refered to the Government.
• And the Government may order for a fresh call
or may constitute a committee to award the
work on nomination to a reputed contractor
from the list to be maintained by the Department
on the basis of performance of contractors.
(Amended Vide:GO-Ms-No-133 I & CAD - Dated: 20-11-2004 )
 Negotiations
• Negotiations at any level are strictly
prohibited.
• However, good gesture rebate, if offered by the
lowest tenderer prior to finalisation of tenders
may be accepted by the tender accepting
authority.
 Earnest Money Deposit
• “Earnest Money Deposit (EMD)” means the amount
required to be remitted by a tenderer along with his tender
indicating his willingness to implement the contract;
• In order to discourage purchase of tender documents by
non-serious bidders, tender documents shall be issued to
contractors on payment of Earned Money Deposit, at 1%
of the estimate contract value.
• Successful bidder will pay balance EMD of 1½% of ECV
/ TCV whichever is higher at the time of concluding the
agreement.
• The EMD must be paid in full with out any concession.
• This EMD can be in the form of a DD /BG on any
scheduled bank / Nationalised bank with validity period
of 3 months .
 Earnest Money Deposit (Contd..)
• The tenders received without EMD or with any
short fall in the amount or period of validity will
be summarily be rejected.
• The EMD of Tenderers will be returned no
sooner the tenders are finalized or end date of
the Tender validity period whichever is earlier.
• The E.M.D. shall be forfeited:
if the Tenderer withdraws the Tender during the
validity period of Tender.
in the case of a successful Tenderer, if he fails to
sign the Agreement for whatever the reason.
 Security Deposit
• In addition to EMD of 2.5% paid at the time of
agreement, 7½% of the value of work done is with
held and retained as security in intermediate
payments.
• On completion of the entire work 5% from out of the
7.5% withheld will be released, retaining the 2.5% as
further security which will be released along with
2.5% EMD, after completion of defect liability period
of 24 months.
• The retention money is permitted for release to the
contractor against the BG in spells of 25 lakhs
 Additional Security Deposit
• For tenders upto 25% less than the estimated
contract value of work, no additional security
deposit is required.
• But for tenders less than 25% of the estimated
Contract Value of work, the difference between
the tendered amount and 85% of the estimated
contract value, shall be paid by the successful
tenderer at the time of concluding agreement as
an additional security to fulfill the contract
through a DD/BG valid till completion of the
work in all respects.
 Comparison of Price bids
• Bidder with lowest Tender Percentage (TP) quoted is
selected
• Selection of Tenderer among the lowest & equally
quoted tenderers will be in the following orders:
a) The tenderer whose bid capacity is higher will be
selected.
b) In case the bid capacity is also same the tenderer
whose annual turnover is more will be preferred.
c) Even if the criteria incidentally become the same, the
turnover on similar works and thereafter machinery
available for the work and then the clean track record
will be considered for selection.
 Bill of Quantities/ Schedule “A” & Bid offer
• Bill of Quantities(Schedule “A”) and the bid offer
accompanies the tender document.
• It shall be explicitly understood that the Tender
Inviting Officer does not accept any responsibility for
the correctness or completeness of this schedule ‘A’
and this schedule ‘A’ is liable to alterations by
omissions, deductions or additions at the discretion of
the Superintending Engineer or as set forth in the
conditions of the contract.
 Bill of Quantities/ Schedule “A” & Bid offer (Contd..)

• The Schedule “A” shall contain the items of work indicated as

part– I and LS provisions as part–II.
• The Schedule –A (or Price-bid) contains not only the
quantities but also the rates worked out by the Department and
the amount for each item and total value of the estimated
contract.
• The tenderer should workout his own rates keeping in view the
work, site conditions and quote his overall tender percentage
with which he intends to execute the work based on this
schedule of quantities..
 Bill of Quantities/ Schedule “A” & Bid offer (Contd..)
• The tenderers will have to state clearly their willingness to execute
the work at certain specific percentage of excess or less or at par of
the ECV indicated in Part-I at the space provided therein in
Schedule ‘A’.
• The percentage quoted by the contractor shall be applicable only to
part-I.
• However, the provisions contained in the part –II will be operable
basing on the conditions provided in the Tender Document. The L.S.
amounts indicated in part-II are maximum reimbursable amounts.
• The bid offer shall be for the whole work and not for individual
items / part of the work.
 PROCEDURE TO BE FOLLOWED IN 2nd AND SUBSEQUENT CALLS:

(1) Whenever there is no response for the 1st call, and tenders are
invited in the second call, the qualification/eligibility criteria
such as (i) Amount of similar work; (ii) Minimum physical
quantities; (iii) Bid capacity; (iv) Liquid Assets /Credit
facilities etc., may be reduced to 50% of that stipulated in the
1st call eligibility criteria.
(2) The agencies/ contractors, who are registered in the State
Governments/ Public Sectors/ Government undertakings
through out the country shall be permitted for tendering,
without insisting on Registration in State Government.
(G.O.Ms.No. 73 (IRRIGATION & CAD (PW-REFORMS) DEPT. Dt:7 -06-2009)
 Sub-letting of Contract
• If the prime contractor desires to sub-let a part of the
work, he should submit the same at the time of filing tenders
itself or during execution, giving the name of the proposed
Sub-contractor, along with details of his qualification and
experience.
• The Tender Accepting Authority should verify the experience
of the Sub-contractor and if the Sub-contractor satisfies the
qualification criteria in proportion to the value of work
proposed to be sub-let, he may permit the same.
• The total value of works to be awarded on sub-letting shall
not exceed 50% of contract value.
• The extent of subletting shall be added to the experience of
the sub-contractor and to that extent deducted from that of
the main contractor.
 Liquidated Damages
• The liquidated damages are imposed on the contractors as per
the present practice basing on the milestones.
• If the contractor fails to complete the work within the mile
stones recovery will be made at one tenth of one percent of
contract value per calendar day or part of the day for the
period of delays subject to a maximum of 10% of the
contract value towards liquidated damages .
• The payment or deductions of such damages shall not relieve
the contractor from his obligation to complete the works, or
from any other of his obligations and liabilities under the
contract.
 Price Adjustment
• Price adjustment shall be granted for steel and cement every
month based on absolute variation between the estimated
rate and the rate approved by the Government based on the
recommendation of Board of Chief Engineers.
• The Price adjustment shall be applied irrespective of cost
estimates and time period.
• For the works taken up in externally aided projects, the
guidelines specified thereon are to be followed.
 Price Adjustment (Contd..)
• The price adjustment shall be applicable within original
contract period or period extended on grounds of the
departmental delays and valid reasons and shall not be
applicable to the extensions granted on account of the
contractors fault as envisaged in G.O.94 of I&CAD.
• Price variation clause will not apply if the price variation is
up to 5%. The adjustment scheme will be applied in all
cases where the variation between the estimated rates and
Board of Chief Engineers approved rates (increase or
decrease) is more than 5% for the month. (in other words
price variation up to 5% is to be absorbed by the contractor)
• No maximum value for the price variation is to be
prescribed.
 Defect Liability Period
• The contractors are responsible for the quality
of works executed till the expiry of defect
liability period, which is now prescribed as
two years for both original works and
maintenance works.
• Each department should formulate and issue
guidelines based on the nature and life span of
works.
 Cost of Tender schedule
• The cost of tender schedules is dispensed.
• The collection of cost of tender schedule is
dispensed, as there is no physical supply of
tender documents and also to have absolute
anonymity of the bidders participating in ‘e’
procurement.
• The bidders can view / down load the tender
documents at free of cost from the ‘e’ market
place i.e., www.apeprocurement.gov.in
 Eligibility of contractors
• The class of contractor eligible is as given in
G.O.Ms.No. 94, I&CAD (COT) Department,
Dated: 01-07-2003.
• Special class upto & above 10 crores
• I class upto 10 crores
• II class upto 2 crores
• III class upto 100 Lakhs
• IV Class upto 50 Lakhs
• V class upto 10 Lakhs
• Higher class contractor can tender for
works in lower classes
 Eligibility of contractors (Contd.. )
• The registered contract firms and contractors
would be required to register on the e-
procurement market place at the web site at
www.apeprocurement.gov.in in addition to their
respective registrations.
• On registration on the e-procurement market
place they will be provided with an user ID and
password by the system using which they can
submit their bids online.
• Contractors would be required to register Class
IV and above on the e-procurement website and
submit their bids online.
 Tender percentage acceptable
• Up to 5% excess over E.C.V
• Up to 25% less than E.C.V
• Note: For tenders more than 25% less, the
difference cost between tendered amount and
75% of E.C.V. shall be deposited by the bidder.
• No negotiations are permitted.
• If the tender premium quoted is more than 5%
even after two calls the matter should be
referred to Govt.

74