Para 5.6.2 - Tender Extension | KartavyaDesk
Original Rule Text
If, however, due to some exceptional and unforeseen reasons, the purchase organisation is unable to decide on the placement of the contract within the original validity period, it may preferably request, before expiry of the original validity period, all the responsive tenderers to extend their tenders up to a specified period. While asking for such extension, the tenderers are also to be asked to extend their offers as it is, without any changes therein. They may also be told to extend the validity of the EMD for the corresponding additional period (which is to be specified in the request). A tenderer may not agree to such a request and this will not lead to forfeiture of its EMD. But the tenderers, who agree to extend the validity, are to do so without changing any terms, conditions, and so on, of their original tenders.
What This Means
Para 5.6.2 of the Works Manual deals with situations where a government department is unable to finalize a contract within the original validity period of the tenders received. This often happens due to unforeseen circumstances or complex evaluation processes. In such cases, instead of restarting the entire tendering process, the department can request all responsive tenderers to extend the validity of their bids. This extension request must be made *before* the original validity period expires. The rule aims to save time and resources by allowing the department to continue evaluating existing bids rather than initiating a fresh tender. It affects all government departments involved in procurement and all companies participating in government tenders.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Applies when contract award is delayed beyond the original tender validity period.
- •Purchase organization can request tenderers to extend their tender validity.
- •Tenderers must extend offers 'as is' without any changes.
- •Tenderers can refuse extension without forfeiting their Earnest Money Deposit (EMD).
- •Extension request must be made before the original validity period expires.
Practical Example
The Public Works Department (PWD) issued a tender for the construction of a bridge. The original tender validity was 90 days. After 80 days, due to an unexpected audit query regarding the lowest bidder's financial solvency, the PWD was unable to finalize the contract. Before the 90 days expired, the PWD sent a letter to all responsive bidders, including M/s ABC Constructions and M/s XYZ Infrastructure, requesting them to extend their tender validity for another 30 days. The letter explicitly stated that the extension should be 'as is', without any changes to the original bid amount or terms. M/s ABC Constructions agreed to the extension, while M/s XYZ Infrastructure declined. XYZ's EMD was not forfeited.
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 tenderer refuses to extend the validity of their tender?▼
Can a tenderer increase their bid price when extending the tender validity?▼
What if the purchase organization needs more time after the extended validity period?▼
Is it mandatory for the purchase organization to request an extension?▼
Does this rule apply to all types of government tenders?▼
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 5.6.2 of the Works Manual, under what circumstance can a purchase organization request tenderers to extend the validity of their tenders?
Related Rules
Need help understanding this rule?
Ask Niti — your AI assistant for WORKS_MANUAL and other government rules