PITFALLS IN DEALING WITH TENDERS &CONTRACTS Shiv Kumar Director/IRICEN

Framing of tender schedule Correct estimation of quantities after proper assessment of work involved as per approved drawings & field studies Correct estimation of quantities after proper assessment of work involved as per approved drawings & field studies Rates to be estimated on the basis of Last Accepted Rates (LAR) if similar work has been done previously otherwise on the basis of market rates for those items which constitute about 75-80% of total cost of work Rates to be estimated on the basis of Last Accepted Rates (LAR) if similar work has been done previously otherwise on the basis of market rates for those items which constitute about 75-80% of total cost of work

Eligibility Criteria Should be fixed well in advance before tenders are invited with a clear objective and as per extant rules. Should be fixed well in advance before tenders are invited with a clear objective and as per extant rules. There is no need to relax the same after tenders have been opened in order to suit a particular tenderer whose rates may be lowest. There is no need to relax the same after tenders have been opened in order to suit a particular tenderer whose rates may be lowest.

Tender Opening Committee Role is quite sacrosanct because any deficiencies in the bids can be manipulated at later stages. Role is quite sacrosanct because any deficiencies in the bids can be manipulated at later stages. Rates should be read out and recorded in the tender opening register in the presence of the tenderers. Rates should be read out and recorded in the tender opening register in the presence of the tenderers.

Tender Committee Should examine all the papers available in the tender file Should examine all the papers available in the tender file Particularly go into details in respect to the lowest tenderer whose tender is being recommended as regards its credentials, capacity to handle the proposed work if awarded,fulfillment of eligibility criteria & reasonableness of rates in comparison with the estimated rates & LAR Particularly go into details in respect to the lowest tenderer whose tender is being recommended as regards its credentials, capacity to handle the proposed work if awarded,fulfillment of eligibility criteria & reasonableness of rates in comparison with the estimated rates & LAR Should declare that it has no personal interest in the agencies participating in the tender process Should declare that it has no personal interest in the agencies participating in the tender process

Acceptance of tender Tender Acceptance Authority (TAA) is finally and ultimately responsible for acceptance of tenders even though TC is also responsible for its recommendations Tender Acceptance Authority (TAA) is finally and ultimately responsible for acceptance of tenders even though TC is also responsible for its recommendations TAA should go into tender file with a view to ensure that TC has arrived at its conclusion properly after examining all facts and figures. TAA should go into tender file with a view to ensure that TC has arrived at its conclusion properly after examining all facts and figures. If required,TAA may ask TC to get additional details rather than asking tenderers or 3 rd party. If required,TAA may ask TC to get additional details rather than asking tenderers or 3 rd party. TAA should take decision in a reasonable period. Unavoidable delay should be explained. TAA should take decision in a reasonable period. Unavoidable delay should be explained.

Reasonableness of rates Current market survey with proper rate analysis Current market survey with proper rate analysis Comparison with last accepted rate for items which are similar and comparable. Comparison with last accepted rate for items which are similar and comparable. If a lower offer is being overlooked, sufficient reasons should be given. If a lower offer is being overlooked, sufficient reasons should be given. If adverse factors cited for justifying higher rates, these may be explained adequatly to justify action. If adverse factors cited for justifying higher rates, these may be explained adequatly to justify action. If higher rates are justified on the basis of urgency,facts should be available on record If higher rates are justified on the basis of urgency,facts should be available on record

Execution of work Execution of substandard works Execution of substandard works Acceptance of substandard supplies. Acceptance of substandard supplies. Failure to carry out quality checks Failure to carry out quality checks Over payments i.e. payments made for works not executed Over payments i.e. payments made for works not executed Misappropriation of materials by contractors and/or officials in conspiracy with each other Misappropriation of materials by contractors and/or officials in conspiracy with each other