Tender & Contract
Calling tenders, the types, and the contract that binds the work.
Between the finished design and the built building lies the TENDER and the CONTRACT. This unit covers how a contractor is chosen and bound: calling for tenders and the documents; open versus closed tenders; the types — item-rate, lump-sum, labour and demolition — and where each fits; submission, scrutiny and the architect's recommendation; and the contract — the form, the articles of agreement, and the architect's certification of the contractor's bills. (The FIDIC/earned-value side is in the Cost & Contract Management course.)
Learning objectives
By the end of this unit, you will be able to — mapped to the course outcomes for Professional Practice:
Describe how tenders are called and the contents of the tender documents.
Distinguish open and closed tenders and the item-rate, lump-sum, labour and demolition types.
Sequence submission, scrutiny and the architect's recommendation of a tender.
Explain the contract — form, articles of agreement and bill certification.
Calling and choosing
A tender is a contractor's formal offer; open and closed tenders differ in who may bid, and the types allocate risk differently — award the lowest EVALUATED bid.[3]
Inviting offers
A TENDER is a formal offer by a contractor to execute the work at stated rates/price. The owner (through the architect) CALLS tenders by notice, issuing the tender documents to bidders. The documents typically include the notice inviting tender, instructions to tenderers, the conditions of tender, the form of tender, the conditions of contract, the specifications, the drawings, and the bill of quantities/schedule. A complete, unambiguous tender package is what produces a fair, comparable set of bids.[3]
Which tender type?
Pick a tender type and read its pricing basis, who carries the risk, and when it is used.
Tender types · who bears the risk?
Item-rate (schedule) tender
Basis: Contractor quotes a rate against each measured item in a Bill of Quantities; payment is for work actually measured.
Risk: Owner carries quantity risk; contractor carries rate risk. Fair, transparent — but final cost varies with quantities.
When used: Most public and institutional works where quantities can be measured.
Choose the tender type by who can best bear the quantity and price risk.
The contract
The contract is the articles of agreement plus conditions, specs, drawings and BOQ; and the architect certifies the contractor's bills as an honest, independent act.[3, 4]
What binds the parties
A construction CONTRACT is the legally binding agreement between owner and contractor to execute the work for the price, on the terms. A valid contract needs offer and acceptance, consideration, lawful object and competent parties (Indian Contract Act 1872). It comprises the articles of agreement plus the conditions of contract, specifications, drawings and the priced BOQ — together the 'contract documents', which are read as a whole.[3]
At a glance
| Aspect | One | The other |
|---|---|---|
| Who may bid | Open tender: any qualified bidder | Closed tender: a selected list |
| Quantity risk | Item-rate: owner | Lump-sum: contractor |
| Award | Myth: always the lowest price | Reality: lowest EVALUATED responsive bid |
| Contract documents | Just the agreement sheet | Agreement + conditions + specs + drawings + BOQ |
| Bill certification | A favour to the client | An honest, independent quasi-judicial act |
Key terms
A formal offer by a contractor to execute the work at stated rates or price.
Open: public, any qualified bidder; closed/limited: a selected pre-qualified list.
Contractor quotes a rate per measured BOQ item; owner carries quantity risk.
One fixed price for defined scope; contractor carries quantity risk.
The tabulated comparison of bids on which the architect's recommendation rests.
The operative clauses of the contract — parties, work, sum, time, architect's role.
The rules of execution — variations, EOT, LD, payments, defects, disputes.
The architect's certification of work done that authorises an interim payment.
Studio task
For a small institutional building, decide whether you would call an open or a closed tender and which tender TYPE you would use (use the explorer), and justify it by who should bear the risk. Then list the documents you would issue in the tender package, and describe in two lines how you would certify the contractor's first running bill.
Self-assessment
1. In an item-rate tender, the party that carries the risk of quantities is the —
2. An open tender differs from a closed (limited) tender in that an open tender —
3. The architect's interim certificate during construction is best described as —
Recap
References & further reading
- [3]Namavati, Roshan — Professional Practice (Lakhani Book Depot, 2016); B.S. Patil — Building and Engineering Contracts.
- [4]Deobhakta, Madhav — Architectural Practice in India (Council of Architecture, 2007); the Indian Contract Act, 1872.
Further reading
- Roshan Namavati — Professional Practice (2016).
- B.S. Patil — Building and Engineering Contracts.
- IIA / CPWD standard form of contract.
Sources gathered and fact-checked June 2026. Published values vary by source, sample and method — treat as indicative and confirm against the cited standard before structural use.