What are the difference between Tender and Contract Documents?
Tender Documents
A tender is an offer in writing to contractors to execute the some specified works or to supply specified materials within a fixed time frame and as per conditions of contract and agreement between the contractor and the owner or the department or the party.
The tender documents contains the bill of quantities (BOQ), specifications of the works to be carried out, time frame for the completion of the work, conditions of the contract and plans and drawings. These documents are provided to the contractor on the payment of certain fees. The contractor who quotes the lowest rates for the overall works are offer the contract to execute the work.
Contract Documents
Contract documents are the agreement between the owner or the party or the department and the contractor to execute the works as specified in the tender documents as per conditions of contract on the rates quoted by the contractor.
The difference between Tender and Contract Documents:
TENDER
The term tender formally means an invitation to trade under the terms of offer.
CONTRACT
A contract is the term used when 2 parties have reached agreement.
TYPES OF TENDER
- Opentender
- Close tender / Selective tender
- Negotiated tender
Open tender
- Bidding process that is open to all qualified bidders
- Tender usually publishedin the newspaper and internet
- chosen on the basis of priceand
- This is most effective way of obtaining many competitive rates.
Close / selective tender
- Tender open to bidders in the category stated in the notice only.
- Example: limited tender is for Bumiputra bidders
Selective tender
- A number of contractor of known reputations are selected by the design team to submit a price of the project.
- The contractor who submit the lowest tender is generally awarded the contract.
- The number chosen to bid under this tender is little
- They are chosen for their expertise and experiences
Negotiated tender
- Under this method, only one contractor is approached
- Normally because the skills of the contractor are such that the architect and other members of the design team needed from the contractor’s specialist knowledge use for design stage
- Following the completion of the design, the contractor will price the bill of quantities and then enter into a negotiation with the quantity surveyor
Source: academia
