What Is the Difference between a tender document and a contract document?

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Most of us get confused after hearing the words tender documentation and contract document. Here is the main differentiating feature of them which can give us a crystal clear understanding of both the above terms. Let us have it now. To perform a particular work or to supply some particular materials within a predetermined time frame as per the contract tender is offered in a written form. Generally, tender is executed between the contractor and the owner of the department.

In a layman’s language tender means to work within the predetermined terms and conditions. Tender documents include a work description, the time period to furnish the project, bill of quantities, the various needs of the contract to complete the work in a specified manner. After paying the fees these all documents are handed over to the contractor. The contractor who offers the minimum amount will be assigned the project to finish.

Contract leads to parties to end up in an agreement. The contract documents are those which include an agreement between the department head or the owner and the contractor to furnish the work as per the conditions and terms clarified in the contract.

Following are various types of tenders.

1) Open tender

2) Close tender/selective tender

3) Negotiating tender

In the first type, i.e., open tender bidding is open to all bidders. The tender is generally offered via newspapers and the internet to attract more no of participants.

By doing this, one can have the maximum no of competitors who can offer a different range of prices. The owner can have a large no of choices to get his work done in a very good way by selecting the best bidder.

Now, the second type is selective tender, in which the team will select the contractor according to their needs. The one who submits the lowest gets selected in a normal scenario. Here the no of selected contractors may be less than the others. The main benefit is that the owner can find the best contractor according to the specialization of work. Selective tender gives experts to fulfill the project with great success.

The last one is Negotiating tender, in this, the main difference is that to complete the work only a contractor is approached. In the design stage, the specific skills of the best contractor are utilized to get the desired result. Once the designs get finished contractors will price the bill of quantities and will get an entry into the negotiation process.

In a nutshell, the tender document does not have a compulsion of binding for contractors. On the contrary contract, the tender documentation process gives the compulsion of the fulfillment of each and every term of an agreement to furnish the work in time.

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