Para 5.5.2 - Bid Correction | KartavyaDesk
Original Rule Text
iii) Correction of Bids: Tender document should indicate that the evaluated bid prices will be adjusted after taking into account: (a) correction for errors; (b) adjustments for any acceptable variations, deviations; and (c) adjustments to reflect any discounts or other modifications offered. Unless announced beforehand explicitly in the tender documents, the quoted price should not be loaded on the basis of deviations in the commercial conditions. If it is decided to incorporate such clauses, these should be unambiguous and clear – and thereafter there should be no relaxation during evaluation. Variations, deviations, or alternative offers and other factors which are in excess of the bidding documents or otherwise result in unsolicited benefits for the contractor should not be taken into account in bid evaluation. All duties, taxes and other levies payable by the bidder under the contract or for any other cause shall be included in the rates, prices and total bid prices, and considered in evaluation of bids. Bids should be checked for any arithmetical errors. These corrections shall be done in accordance with the provisions of the bidding document. In cases other than eProcurement, the quoted rates in the bids shall be protected with lamination by the committee, if not done by the bidders. In accordance with the corrections as approved by the TC, the amount stated in the bid will be adjusted with the concurrence of the bidder, and shall be binding on him. If the bidder does not accept the corrected amount, the bid will be rejected and the bid security forfeited. The arithmetical corrections will be done by the representatives of the Finance Division and the concerned (technical) division in the committee.
What This Means
Para 5.5.2 of the Works Manual deals with how bids are evaluated and corrected during the tendering process. Essentially, it ensures fairness and transparency in selecting the best contractor. The rule states that the price you see isn't necessarily the final price used for comparison. The government can adjust the bid price to account for things like errors in calculations, acceptable deviations from the tender requirements, and any discounts offered by the bidder. However, these adjustments must be based on criteria clearly stated in the original tender document.
This rule affects everyone involved in the tendering process, from the bidders submitting proposals to the government officials evaluating them. It emphasizes that any deviations or variations that give the contractor an unfair advantage should be ignored. Also, all taxes and duties must be included in the initial bid price. If there are any mathematical errors, they will be corrected with the bidder's agreement. If the bidder disagrees with the corrected amount, their bid will be rejected, and their bid security will be forfeited. In essence, this rule aims to create a level playing field and prevent any hidden costs or unfair advantages during the bidding process.
Finally, to prevent tampering, the quoted rates in physical bids (non-e-procurement) should be laminated by the committee if the bidders haven't already done so. This ensures the integrity of the bid amount throughout the evaluation process. The Finance Division and the relevant technical division representatives are responsible for making these arithmetical corrections.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Evaluated bid prices can be adjusted for errors, acceptable variations, and discounts.
- •Adjustments must be based on criteria clearly stated in the tender document.
- •Unsolicited benefits for the contractor due to deviations should not be considered.
- •All duties and taxes must be included in the bid price.
- •Bids are checked for arithmetical errors, and corrections require bidder concurrence.
Practical Example
The Ministry of Infrastructure is tendering for the construction of a new highway. Three companies, Alpha Constructions, Beta Enterprises, and Gamma Infrastructure, submit bids. Alpha's bid is for ₹100 crore, Beta's is for ₹95 crore, and Gamma's is for ₹98 crore. During evaluation, the Tender Committee (TC) discovers an arithmetical error in Alpha's bid; a calculation mistake makes their actual bid ₹102 crore. They also find that Beta has offered a 2% discount for early completion, which was an acceptable variation outlined in the tender document. This reduces Beta's effective bid to ₹93.1 crore. Gamma's bid has no errors or acceptable variations.
Based on Para 5.5.2, the TC adjusts Alpha's bid to ₹102 crore and Beta's bid to ₹93.1 crore. Gamma's bid remains at ₹98 crore. If Alpha refuses to accept the corrected amount of ₹102 crore, their bid will be rejected, and their bid security will be forfeited. Beta, having the lowest evaluated bid of ₹93.1 crore, is likely to be awarded the contract, assuming they meet all other eligibility criteria. This example shows how errors and acceptable variations are accounted for to determine the lowest evaluated bid.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if a bidder refuses to accept the corrected bid amount?▼
Who is responsible for correcting arithmetical errors in bids?▼
Can we consider deviations that give the contractor an unsolicited advantage?▼
Does this rule apply to e-procurement?▼
What kind of variations are acceptable?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 5.5.2 of the Works Manual, which of the following adjustments can be made to the evaluated bid prices?
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