WHAT IS A TENDER?
A tender is typically is an offer to do some tasks or supply the goods at a fixed price. Public sector organizations in many countries are required to give away the tenders for works and services. In many cases, they are listed on a wide range of websites and traditional printing presses. In this, the contractors would be asked to submit the packed bids for the building or the sake of accurately designed services or goods during a particular period. India’s online tender is made to make sure that the work to be done for the government. For example, some important attainment policies guide on how to decide on which tender to make. It is a public petition to all the respective shareholders that they are supposed to tender their related stocks for the initial and specific prices for a certain period. The tender is the formal and properly designed and organized invitation to the suppliers to give away the ruthless bids to supply raw materials, products, or services for it. The term also specifies the procedure where the shareholders submit their shares or the respective securities which the intention of taking over. (makins, 2021 )
TYPES OF TENDERS
Open tender: It is the main form of tender, which is followed both by the private sector and the government sector. It’s been seen that in the local newspapers, that the customer creates an advertisement of tender to offer with the help of the key information of the related work to propose it so that the interested contractors can look for it. The best thing about the open tender is that it takes place online and so the clients can rest getting assured that their bids are safe. It provides better employment opportunities to the people. It provides the contractors with the necessary information to grow and flourish over the period. (Den, 2016)
Selective tender: This type of tendering refers to the alternative which has been developed to explain the limitations of the open tender processes. This tends to evaluate or increase the number of applications or bids received. It then gives the opportunities and responsibilities to the contractor’s mandatory expertise the opportunity and submits the bids needed for the same. They have been judged to satisfy certain specified conditions. It’s the bid provided based on constructions and designs. Its biggest disadvantage is that its competitiveness is reduced over the period.
Negotiation Tender: This is a separate exercise from the tender clarification. It is the contract between the passing on an officer and the bidder to refine and to improve the bids or orders received to ensure that prices, delivery or associated terms of the contract are competitive. It is being conducted after the receipt of the formal tenders by the procuring officer and before the award of any contract. It is used in the audit trail so that it can be seen that the post negotiation tender was conducted fairly. This makes the individual bidder as competitive as possible without any reference to other bidders. It strengthens the relationship between the procurement of officers and that of suppliers. (bahl, 2013 )
Serial Tender: It creates the preparation of the tenders based on an important or bill of qualities or stays of work. It’s been used to value the overloaded work over similar projects for the fixed period of the time following the procedure may be repeated. There is no nepotism, tenders, and bids are established criteria price, quality, and value for money. It encourages competition and easier entry.
WHAT ARE AUCTIONS?
It refers to when an item comes up for sale and people start bidding on such items. To be a top bidder, you must bid higher than the last person. Then the auction comes to the end and the highest bidder takes the home item. They are a superb way to convert assets to cash in a short period. Ruthless bidding determines the best price for your properties. The creation of the equipment and other assets and reality are not always the same. If you want to buy the car at the auction, the price has to be cheaper than purchasing in a private sale.
TYPES OF AUCTIONS
Ascending Bid: The price is to be increased by the auctioneer until only one bidder remains and the object pays the final price. Here the bidders are willing to pay most of the prices. In this, you sell it to the person who offers the most of the money part of it.
Descending Bid: This explains the auctions where the price is continuously getting lowered until the bidder accepts the continuous price. It is also known as a Dutch auction; the auctioneer begins at a high price than the item it will be fetched. The bidder receives the item at the price at which he made the call.
first place bid: The bid is likely to set your ad to be seen in the first ad position. It estimates approximates what cost per click bid is needed for your ad to show anywhere on the first page of search results when there is a query.
Sealed Bid: It refers to the written bid placed in the sealed envelope. The sealed bid is about to open until the mentioned date. The highest is usually declared as the winner of the bidding process. It is the type of auction that is used when there are significant interests in property from competing buyers. It is found in the housing market is a strong way to multiply the offers before setting up the final price of choosing a winner.
CONCLUSION
The contracts in India are given by tender or auction. The main reason for taking care of India’s regime and inclusion of the goods and services and have given the specific quantities of the most competitive prices. The various tender procedures are available to the government. This involves nomination-based tender, electronic reverse tender, limited tender quality, etc. Thereby, the tender procedure was introduced by subject matter, value, technical complexity, and nature of the procurement. Thereby, writs are the most critical tool to take the check of transparency and accountability. It helps to ensure the checks and balances in the involving of the states. All the way, the continuous threat of litigation affects the flexibility of society.
Author’s Name: Trishla Garg (VIPS, GGSIPU)
