Home > Article Showcase > Redevelopment Matters > Drafting of Tender Document

A document is called “TENDER DOCUMENT” vide which terms and conditions for Redevelopment of Housing Society are notified and offers called from Builders / Developers. It is designed to evaluate the capacity, capability and experience of Builders / Developers. 

It is very important that the drafting of the Tender Document is done meticulously. Excellent skills & a very vast Legal & Technical knowledge is must to draft such an important document. It is recommended to avail the services of a professional, who is legally as well as technically qualified to carry out comparative evaluation of offers based on a perfect scientific technique.  

The Tender Document contains brief details with regard to the Technical, Commercial and Legal conditions, detailed specifications about the Project including qualification requirements and the selection process for the successful bidder. The purpose of the Tender Document is to provide bidders with information to assist the formulation of their bid application.

The Project Management Consultant will first submit the Draft Tender Document. There should be a detailed discussion on the Draft Report by the Project Management Consultant and the Managing Committee/Redevelopment Committee. All doubts/points on the Draft Documents including the Pre-Qualification Bid, Technical Bud and Financial Bid must be clarified.

Key issues to be covered in the Tender are as under:- 

Project Background

Earnest Money Deposit E.M.D. amount

Security Deposit amount

Minimum Third Party insurance amount

Temporary Accommodation

Bank Guarantee for performance of Project

TDR to be purchased in the name of the Society

Corpus Fund

Extra Carpet Area offer

Restriction on sale of commercial premises if any (e.g. to Hoteliers or in respect of any shops dealing in Non-Vegetarian food etc.)

Arbitration Clause

Liquidated damages for delay clause

Misrepresentation / Fraud / Breach of Terms And Conditions

Scope of Contract

Defect and Liability period

Dairy of Progress report/Bar Chart

Construction features and Amenities

Details and Technical Specification of materials with relevant I.S. codes

Technical specification which should cover details such as General Condition, Demolition Work, Dismantling Work, Excavation and Re-Filing, Anti-Termite Treatment, Masonry and Plastering Work, Brick Bat Coba and Water Proofing Treatment, Doors and Windows, Flooring, Sanitary, Water Supply and Drainage, Painting, Landscaping and Safety Codes etc.

Quality Assurance Program

Redevelopment proposal summary

Plot area details along with area working

Parking Facilities

Safety Code

Pre Qualification Application

Financial Offer Application

Society Documents

Validity of Offer

Approval of Draft Tender:-

At the Special General Meeting the Draft of Tender and Tender Notice are to be approved by the majority

Notice of Tender Document to be given in the Newspapers:-

Tenders shall be called from a well known expert and experienced Developers. Notice to be given to all the members of the Society about the floating of Tender Documents. Members must be requested to recommend a known Builder. The Office Bearer or any member of the Society or any relative of members is prohibited from being the Developer.

The Secretary shall display on the notice board, the list of Tenders received on the last date of the receipt of Tenders.

Opening of Tenders:-

Fifteen days after the last date of receiving Tenders, the Secretary of the Society shall convene a Special Managing Committee/ Redevelopment Committee or Special General Meeting for opening the Tenders received. In the said meeting representatives of Developers who have made a bid in the Tenders shall be allowed to remain present at the Meeting as observers. Received Tenders shall be opened in the meeting in the presence of Architect/ Project Management Consultant and all persons present at meeting.

Instructions to Tenderer:-

Site visit:-

Before submitting the Tender, the Tenderer must visit the site of work at his own expenses and familiarize himself with all the site conditions, approaches, availability of materials, camping facilities etc., which may affect the work. For this visit the Tenderer may contact the Consultant.

Submission of a Tender by a Tenderer implies that he had read all the Tender documents including amendments if any, and has made himself aware of the scope and specifications of the work to be done, local conditions and other factors having any bearing on the execution of the work.

All necessary access road will have to be made and maintained by the Developer at his cost. The other agencies employed by the Employer may use the access roads and the developer shall not claim any amount or object to such use of the access roads.

Clarifications to be sought:- 

To assist the examination, evaluation and comparison of the Tenders, Managing Committee of the Society may at its discretion ask the Tenderers for any clarifications as considered essential. All such correspondence shall be in writing and no change in price or substance of the Tender shall be sought or permitted. The above clarification for submission of the details shall form part of the Tender and shall be binding on the Tenderer.

Form of Tender:-

Tenders shall be submitted in the prescribed format and manner complete in all respects. Each page of the Tender Document is required to be signed by the Tenderer. Any Tender with any of the document not so signed shall be rejected. No alterations, additions or erasures in the Tender Document are permitted and will cause such Tenders liable to rejection.

Tender form must be filled in English and all entries must be made by hand and written in ink. Erasures and alteration made, if any, while filling the Tender must be initialled.

In case the Tender is submitted by any Proprietary Concern, it shall be signed by Proprietor only. The Proprietor should submit Bank Signature Verification from their Bankers. In case of a Registered Company, Partnership firm, the seal of the Company/ Firm shall be affixed over the signature of one or more Directors/Partners as may be provided in the Articles of Associations or Deed of Partnership. 

If it is found that two or more persons who are connected with one another either financially or as principal and agent or master and servant have Tendered under different names for the same contract without disclosing their connections, then such Tender will be rejected and Earnest Money Deposit shall be forfeited. Any contract entered into under such conditions is also liable to be cancelled.

A bidder in the capacity of Individual or Sole Proprietor, Partnership firm or Company can participate in the Tender and the bidder must forward attested copies of the constitution of its firm such as partnership deed, Memorandum & Articles of Association, etc. along with original Power of Attorney of authorized signatory.

Submission & Opening:-

The Tender shall be submitted in accordance with these instructions and any Tender not conforming thereto is liable to be rejected. The Tender shall be submitted in two parts – Pre-Qualification Bid and Financial Bid.

The Pre-Qualification Bid shall include the description of the Builders/Developers/ Consortiums Firm in the formats in the “Pre-Qualification of Developers” typed in separate sheets and kept in a sealed envelope super-scribed “Pre Qualification of Developers”

The Financial Bid shall comprise of all documents in this Tender (Duly Filled in) except the Pre-Qualification and kept in a sealed envelope super-scribed “Financial Bid” for Proposed Redevelopment of The Existing Building Known As “_________Co-Op Housing Society”.

Both these sealed envelopes together should be kept in a third main envelope along with the Pay Order/D.D. for EMD and super-scribed “Tender/offer for Proposed Redevelopment of The Existing Building Known As “________Co-Op Housing Society” and submitted in the Consultant’s office.

The Pre-Qualification bid will be opened first and the Builders/Developers who are found competent enough by the Society in consultation with the Architects will be considered for evaluation of their financial bids and subsequent award of work.

The financial bids of the Builders /Developers /consortiums that do not satisfy the pre-requisites mentioned in Pre-qualification Bid will not be considered. The Tenders that do not fulfill any or all of the above conditions or are incomplete in any respect are liable to be summarily rejected. Corrections, if made, shall be made neatly and clearly and duly attested by one authorized do so.

Acceptance & Rejections:-

a. Conditional Tenders are liable to be rejected. Tenderers are advised to avoid putting conditions that are at variance with the terms and conditions already stipulated in the Tender or quote conditional rates for any of the items in the Schedule of Quantities.

b. The Tenderer/officer may in the forwarding letter mention any points which he may wish to make clear, but right is reserved to reject the same if the whole of the Tender becomes conditional.

c. The Tender will be liable to be rejected outright if while submitting it.

d. The Tenderer proposes any alteration in the work specified in the Tender, in the time allowed for execution, and any other conditions

e. Any of the pages of the Tender are removed or replaced

f. All corrections and additions or pasted slips are not initialled by the Tenderer

g. The Tender is not complete in all respects

h. Tender Deposit is not submitted with the Tender at time of Submission.

Execution of Agreement:-

The Tenderer whose Tender is accepted shall be required to present himself in person at the office of Employer/ Consultant after the issue of Letter of Intent to execute Agreement on the proper form. Failure to furnish the security deposit or to execute the Agreement within the time specified shall constitute a Breach of Agreement attached by the acceptance of the Tender in which case the Earnest Money accompanying the Tender shall be forfeited by the employer as liquidated damage for such default without prejudice to his being liable for any further loss or damage incurred in consequence by the employer.

Return of Tender document:-

The Tender document together with Notice inviting Tender Letter shall eventually form a part of the Development Agreement to be entered into between the parties.

The Notice Inviting Tender (NIT) letter complete with all enclosures shall be returned to Employer / Consultant by every party to whom it is sent irrespective of whether he/it wishes to submit the Tender or otherwise.

Agreement preparation charges:-

Builder/Developer shall reimburse Rs...........towards Legal and other Incidental Expenses of whatever nature connected with the preparation and execution of Contract Agreement Documents to the Architects M/s................. It may be noted this charges does not include any professional fees payable to the Advocates and Solicitors as clearly mentioned in the Tender.

Safety code:-

Safety precautions shall be followed as per the “SAFETY CODE” attached in the Tender. In addition, the Builder / Developer shall provide safety barricades for the safety of persons moving in the compound in the form of hessian cloth screens at no extra cost.

Security deposit & EMD:-

The Security Deposit and Earnest Money Deposit will not bear any interest.

*****