The correct procedure to be followed while tendering public works should be:-
Tender Opening
Issue Letter of Acceptance to the lowest bidder
-The bidder furnish performance security and executed agreement in stamp paper
Issue Letter of Award of contract (Work Order)
Problem with this Letter of Acceptance is that it assumes that the bidder of the accepted bid would execute agreement and furnish performance security within 20 days and therefore he shall be permitted to start the works straight away (see the last sentence). Suppose if the bidder who quoted at a low rate changes his mind and thinks that it is better to forego the EMD than take up the work and suffer losses, then the departmental officers would land up in trouble.
Therefore in my opinion, there should be two letters sent to the bidder 1) Letter of Acceptance and 2) Letter of Award of Contract.
The first letter should be Letter of Acceptance to inform the contractor that his bid is accepted at the quoted rate. This letter should contain all details that the bidder should do, such as executing an agreement in the stamp paper worth Rs.200/-, remitting performance security in the KSEB accepted forms, the details of DD and Bank Guarantee that he should furnish, if he chooses these modes for remittance, and other papers he should furnish.
I have designed a Model Letter of Acceptance as given below:
The department encloses the following formats/ forms along with Letter of Acceptance
1. Agreement form
2. Bank Mandate form for e-payment
3. Format for bank guarantee
This format of Letter of acceptance eliminates much ambiguities regarding the details to be furnished to the department.
After the agreement is signed by both parties and the bidder remits performance security in an acceptable manner, a Letter of Award of work might be issued as given below:
Tender Opening
Issue Letter of Acceptance to the lowest bidder
-The bidder furnish performance security and executed agreement in stamp paper
Issue Letter of Award of contract (Work Order)
Problem with this Letter of Acceptance is that it assumes that the bidder of the accepted bid would execute agreement and furnish performance security within 20 days and therefore he shall be permitted to start the works straight away (see the last sentence). Suppose if the bidder who quoted at a low rate changes his mind and thinks that it is better to forego the EMD than take up the work and suffer losses, then the departmental officers would land up in trouble.
Therefore in my opinion, there should be two letters sent to the bidder 1) Letter of Acceptance and 2) Letter of Award of Contract.
The first letter should be Letter of Acceptance to inform the contractor that his bid is accepted at the quoted rate. This letter should contain all details that the bidder should do, such as executing an agreement in the stamp paper worth Rs.200/-, remitting performance security in the KSEB accepted forms, the details of DD and Bank Guarantee that he should furnish, if he chooses these modes for remittance, and other papers he should furnish.
I have designed a Model Letter of Acceptance as given below:
The department encloses the following formats/ forms along with Letter of Acceptance
1. Agreement form
2. Bank Mandate form for e-payment
3. Format for bank guarantee
This format of Letter of acceptance eliminates much ambiguities regarding the details to be furnished to the department.
After the agreement is signed by both parties and the bidder remits performance security in an acceptable manner, a Letter of Award of work might be issued as given below:
No comments:
Post a Comment