Project tender is a written agreement offered by tenderer to execute some project within some constraints.
Tender notice:
It is the invitation letter issued in the public for calling tender.
Qualification of tenderer:
- should be financially capable
- should have sufficient experience
- should have sufficient assets and human resources
Earnest Money Deposit(EMD):
During submission of tender,all tenderers need to deposit 1% to 3% money of total contract value.
Security Deposit:
After selection of tender,successful tenderer need to deposit 15% amount of total tender amount.
Letter of Intent(LOI):
It is the letter notifying successful tenderer that his/her offer is accepted.
Types of payments to contractor:
- Final bill: payment made after successful completion of project.
- Running bill: to run project payments are given at some regular intervals.
Voucher:
document used for proof of payment.
Liquidated Damage:
penalty to tenderer in case of delay in project.
Contract:It is legal agreement.
Contractor:person or organisation who follow contract.
Types of contract:
1.Turn key contract:whole execution of project is done by contractor and final product is handed over to the owner.
2.Non-turnkey contract:In execution of project both contractor and owner are involved.These are further classified as:
A)Lumpsum contract:-In this type of contract a fixed price is given by owner to contractor and contractor is responsible for further execution.These types of contract is suitable for short duration project.
B)Unit price contract:-contractor is paid according to portion of work done,it is suitable for long duration project.
C)Item rate contract:-payment is given to contractor on the basis of quality of work executed,generally used by govt. contract.
Cost estimate methods:
- Top down estimate-for periodic work using past experience.
- Bottom up estimate-for new type of projects,estimates are taken from subordinates.
- Parametric estimates-parameters are estimated from past experience.
- Simulation/Monte carlo estimates-computer softwares are used for simulation.
Project sickness
Sick company-losses exceeds 50% of average net profit during 4 years,failed to repay debt in three consecutive quarters.
- sick company is required to report to BOARD FOR INDUSTRIAL AND FINANCIAL RECONSTRUCTION within 60 days of audit if company becomes sick.
- Registrar of BIFR verify according to Sick industrial act,1985.
Cost overrun-increase in project cost over estimated cost.
credit rating agencies in india-CRISIL,ICRA,CARE etc.
salvage value-resale value
scrap value-value as junk.
depletion-decrease in value of resources.
ENTERPRISE RESOURCE PLANNING-team workig with common goal.
TECHNICAL CONSULTANCY ORGANISATIONS-the organisation which provides technical consultancy.
