What is NIT, EMD, Pre-bid meeting, tender value and covers in Tender ?

 

Importance of Tender Components:         

Some of tender components are important to know for the contractor or for the Civil engineer who is going to participate in tender E-Bidding through E-Procurement portal website.

The following are the important components/items in Tender:

1.       NIT(Notice Inviting Tender)

2.       BOQ(Bill of Quantities)

3.       Tender Value

4.       Tender Fee

5.       EMD

6.       Stage of Bidding

7.       Pre-bid meeting

8.       Post-bid meeting

9.       Cover information

10.   Bid value

NIT (Notice Inviting Tender):

NIT is the important item in which all basic important information related to tender is provided as BOQ detail, Technical specification, no. of covers, Bid validity etc.

BOQ (Bill of quantities):

BOQ is a financial estimated budget amount with all detail item/description with their quantity and its rate.

There are three types of BOQ from client to contractor:

·         Percentage rate wise BOQ

·         Item rate wise BOQ

·         Single line percentage wise BOQ

BOQ is the important component against every eligible contractor quotes their rates as bidding amount.

Tender value:

Tender value is the project value or BOQ amount.

Tender FEE:

Tender fee is the fee which has to be deposited by every eligible contractor before participating in Tender bidding i.e. non-refundable to any contractor.

EMD (Earnest money deposit):

EMD is the deposit amount which have to be deposited by every contractor those who willing to participate in bidding procedure.

EMD might be in some percentage of tender value or in fixed amount.

EMD is refundable to those eligible contractors who did not get project.

EMD is converted into security deposit amount after bidding for final contractor those who got the project.

Stage Bidding:

There are two stage of bidding:

·         Single stage Bidding : Only financial Bidding

·         Double stage bidding : Both technical and financial Bidding

Pre-Bid meeting:

Pre-Bid meeting is a meeting between client and all those interested eligible contractors who want to participate in bidding to discuss related BOQ, Technical specifications etc.

This meeting will be organized by client before bidding.

Post Bid Meeting:

After Bidding and Bid Evaluation, the final contract will be called by client for meeting to discuss the further details like, Date for contractual agreement and documents required for contract etc.

Client can also try to negotiate the final contractor’s bidding amount in post Bid meeting etc.

Cover information:

Two types of cover:

·         Technical cover

·         Financial cover

Bid Validity:

The Bidding by the contractor will be valid for certain period of days.

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