Tender Agreement for India

Tender Agreement Template for India

A Tender Agreement under Indian law is a formal procurement document that establishes the terms, conditions, and procedures for submitting and evaluating bids in response to a specific requirement for goods, services, or works. It operates within the framework of Indian contract law, public procurement guidelines, and specific sectoral regulations. The document outlines eligibility criteria, technical specifications, evaluation methodology, and contractual obligations while ensuring transparency and fairness in the procurement process. It incorporates provisions from various Indian legislative frameworks including the General Financial Rules (GFR), Central Vigilance Commission guidelines, and relevant sector-specific regulations.

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What is a Tender Agreement?

The Tender Agreement is a crucial document in Indian procurement processes, used by both public and private entities to ensure fair, transparent, and competitive bidding. It serves as the primary framework for large-scale procurement of goods, services, or works, particularly in government contracts and major private sector projects. The document must comply with Indian legislation including the Indian Contract Act, 1872, General Financial Rules (GFR), 2017, and various procurement policies. A Tender Agreement typically includes comprehensive details about technical specifications, eligibility criteria, evaluation parameters, and contractual terms, while incorporating necessary safeguards for both the tender issuing authority and potential bidders. It's particularly important in regulated sectors where specific compliance requirements must be met, and often requires careful consideration of local content requirements, environmental regulations, and social responsibility factors.

What sections should be included in a Tender Agreement?

1. Parties: Identification of the tender issuing authority and the bidder/tenderer

2. Background: Context of the tender, including project overview and purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Tender: Detailed description of works, goods, or services being procured

5. Tender Submission Requirements: Documentation, formats, and compliance requirements for tender submission

6. Eligibility Criteria: Qualification requirements and minimum eligibility conditions for bidders

7. Evaluation Process: Tender evaluation methodology, criteria, and scoring system

8. Price and Payment Terms: Pricing structure, payment schedule, and financial terms

9. Timeline and Milestones: Project execution schedule and key deliverable dates

10. Performance Security: Requirements for bid security and performance guarantees

11. Terms and Conditions: General and specific conditions governing the tender process

12. Representations and Warranties: Statements of fact and promises made by both parties

13. Termination: Conditions and procedures for contract termination

14. Dispute Resolution: Procedures for handling disputes and jurisdiction details

15. Governing Law: Applicable laws and regulations governing the agreement

16. Execution: Signature blocks and execution formalities

What sections are optional to include in a Tender Agreement?

1. Pre-Bid Meeting: Details about pre-bid conferences and clarification processes, included when complex technical discussions are needed

2. Site Visit Requirements: For construction or installation projects requiring physical site inspection

3. Consortium/Joint Venture: Rules for consortium bidding, included when consortium bids are permitted

4. Local Content Requirements: For tenders with specific local content or Make in India provisions

5. Technology Transfer: For projects requiring transfer of technology or knowledge

6. Environmental Compliance: For projects with significant environmental impact considerations

7. Social Responsibility: For projects with specific social impact requirements

8. Intellectual Property Rights: For tenders involving creation or transfer of intellectual property

9. Force Majeure: Extended force majeure provisions for high-risk or long-term projects

10. Insurance Requirements: Detailed insurance provisions for high-risk projects

What schedules should be included in a Tender Agreement?

1. Schedule A - Technical Specifications: Detailed technical requirements and specifications

2. Schedule B - Price Schedule: Detailed pricing formats and bills of quantities

3. Schedule C - Evaluation Criteria Matrix: Detailed scoring system and evaluation methodology

4. Schedule D - Project Timeline: Detailed project execution schedule and milestones

5. Schedule E - Format of Bank Guarantee: Templates for various bank guarantees and securities

6. Schedule F - Compliance Checklist: List of required compliances and submissions

7. Appendix 1 - Tender Forms: Standard forms for technical and financial submissions

8. Appendix 2 - Draft Contract: Draft of the final contract to be signed with successful bidder

9. Appendix 3 - Performance Standards: Detailed performance requirements and service levels

10. Appendix 4 - Site Details: Site information and relevant technical data

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Infrastructure and Construction

Information Technology

Healthcare

Defense

Energy and Utilities

Transportation

Telecommunications

Manufacturing

Environmental Services

Education

Public Works

Mining and Resources

Smart Cities

Agriculture

Relevant Teams

Legal

Procurement

Finance

Commercial

Operations

Risk and Compliance

Technical

Business Development

Project Management

Supply Chain

Strategy

Contracts Administration

Relevant Roles

Procurement Manager

Tender Manager

Contract Administrator

Legal Counsel

Project Manager

Bid Manager

Commercial Director

Chief Financial Officer

Technical Director

Compliance Officer

Risk Manager

Business Development Manager

Operations Director

Chief Executive Officer

Tender Coordinator

Financial Controller

Industries
Indian Contract Act, 1872: Fundamental law governing contract formation, validity, and enforcement in India. Crucial for establishing basic contractual elements like offer, acceptance, consideration, and capacity of parties.
General Financial Rules (GFR), 2017: Government guidelines that regulate financial management, procurement procedures, and tender processes for public entities. Provides framework for transparency and accountability in procurement.
Central Vigilance Commission Guidelines: Directives for ensuring transparency, fairness and anti-corruption measures in tender processes and public procurement.
Competition Act, 2002: Regulates anti-competitive practices, bid rigging, and collusive bidding in tender processes. Ensures fair competition among bidders.
Public Procurement Bill: Framework for regulating public procurement to ensure transparency, accountability, fair treatment of bidders, and promotion of competition.
Information Technology Act, 2000: Relevant for e-tender processes and digital documentation, governing electronic records and digital signatures.
Arbitration and Conciliation Act, 1996: Framework for dispute resolution mechanisms in commercial contracts, including tender agreements.
Prevention of Corruption Act, 1988: Anti-corruption legislation relevant to public procurement and tender processes to prevent corrupt practices.
Right to Information Act, 2005: Ensures transparency in public procurement processes by allowing access to information about tender decisions and processes.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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