What is Tender? : 5 Steps in Tender Preparation | Tender Notice

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A tender is a written offer presented before an owner (department) showing interest in performing the specified work within the specified time under agreed conditions.

The owner (or department) supplies a particular printed tender form at the usual cost. In such tender form, contract conditions and other related obligations are published.



  1. Steps in Tender Preparation  

To execute construction work through contracting, we must invite a tender from the eligible bidders.


Measurement of Area



Before inviting tenders; the following steps are to be completed:


a. Project formulation:

In this step, the project’s necessity is identified, and a cost-benefit analysis is done.

Then a detailed feasibility study is carried out to determine whether the project is feasible.

Since the project comes into the scene after this stage, it is the first and the most critical phase.


Project formulation


b. Detail Design cost estimation:

At this stage, the detailed design of the project is done, and based on the design & detail cost, an estimation of the project is prepared.


Detail Design cost estimation


c. Approval of cost estimate:

The concerned authority will approve the estimated cost of the project and allocate the budget for the project.


Approval of cost estimate


d. Tender Document Preparation:

To notify publicly, the tender document fulfilling the requirements is prepared before inviting tender. Approval of tender documents by the concerned authority is essential.


Tender Document Preparation


e. Tender Invitation

After fulfilling all the requirements listed above, tender notice is published, and bidders are invited.





  2. Tender Notice  

A tender notice is a means of expression through which contractors know where they have to bid a tender.

It shall be published so that all the concerned parties get the information in time.

Thus such tender notice shall be published in widely read newspapers or other media from where the notification reaches the concerned parties.

A tender notice should contain the following information.

✔ Date, Time, and Place of tender

✔ Name of the authorities inviting tender

✔ Nature of work and its location

✔ Time of completion

✔ Validity of the Tender

✔ Amount of earnest and security money

✔ Cost of the complete set of tender forms, condition, estimated cost, etc.




Read More: Estimate in Construction



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