Tender is an invitation from the owner to the contractor to execute some work at specified cost in specified time.It is published in the form of tender notice in news papers,notice boards etc. according to the cost of works.
Inviting tenders is one of the most important constituent of business correspondence followed by submission of tender document and placing of order and issue of award letters.While quotations are generally sought from a few selected sellers,notices regarding tenders are advertised in newspapers,magazines etc. inviting prospective sellers of services and goods to quote their rates for doing a job or supplying goods specified in the notice.When a tender is accepted is accepted,the successful tenderer has to sign a contract to do what he has promised.
A tender is generally invited for jobs whose execution is spread over a period of time and needs adequate prior preparation. It may be construction of roads,buildings,bridge or bulk supply of goods or rendering of service.The sole purpose of inviting tenders is to get competitive rates from the eligible agencies.There care should be taken to specify:
- Name of work
- Name of Location
- Approximate cost put together to tender
- Period of Execution
- Depositing earnest money
- Eligibility criteria
- Designation of officer inviting tender.
- Last date and time of receipt of tender.
- Period of availability of tender document.
- Date,time and place of opening the tender
- Any other information relevant in tender notice.
Since the notice for call of tender is to be sent to the public at large, it should be published in leading newspapers of that locality as well as big cities.Advertisements should also be given in magazines and websites.