Definition: It is an invitation from the owner or department to the eligible contractors to execute particular proposed work with specified cost and in a specified duration. OR

It is an offer in writing to execute proposed work through contractors.

Types of tender:

1) Open tender/public tender: This tender is open to all eligible contractors. Open tenders are invited by publishing a tender notice in a newspaper or any other social media. Healthy competition exists among the contractor in the open tendering process. Most of the public works are carried out through open tenders only. In this evert eligible contractors can bid for any project. Most transparent type of tendering.

2) Limited/Selective tender: It comes into existence when any big/complicated process is to be carried out. Only reputed and experienced contractors are invited for tendering processes. The degree of competition amongst the contractors is less.

3) Negotiated/Single tender: whenever any big, special and valuable construction project is to be executed only one highly experienced, trusted and the financially sound contractor is called for the tendering process. Negotiations take place between departmental authority and contractor regarding specifications rate per item, the total cost of the project, time of completion, site details etc.

4) Balanced tender: If the rates per quote by the contractor against various items of work are the same as those mentioned DSR of that year. The tender is known as a balanced tender. Mostly balanced tenders are preferred by the department.

Unbalanced tender: If the rates quoted by contractors are varying much with the rates quoted in DSR then such tender is called unbalanced tender. In this contractor quotes the rates. Higher than DSR against initial items of the project and lower rates against latter items of the work without affecting the cost of the work. By doing so the contractor can earn more amount of money at initial stages and that earned money can be utilized for carrying out further items of work.