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Tender evaluation and selection of contractor

Short answer

Bids are received sealed, opened publicly, checked for responsiveness, then evaluated technically and financially. Arithmetic errors are corrected and evaluated bid price is compared; the lowest evaluated responsive bidder is post-qualified. After a 7-day notice period, Letter of Acceptance is issued and 5% performance security submitted.

Explain the process for opening and evaluation of tender (bid) and selection of contractor in construction projects, including how tenders are scrutinised and compared.

Tender evaluation follows the Public Procurement Act, 2063 and the Public Procurement Regulations, 2064 (Nepal) and the bid documents. The process is open, fair and based only on the criteria stated in the bid document.

 Receipt -> Opening -> Preliminary exam -> Technical eval
   -> Financial eval -> Ranking -> Post-qual -> Award

1. Receiving and opening

  • Bids are received in sealed envelopes up to the deadline; late bids are returned unopened.
  • Bids are opened publicly, at the time and place stated, before the bidders' representatives. The name of each bidder, bid price, discounts, bid security and alternatives are read out and recorded in the minutes, which all present sign.

2. Preliminary examination (responsiveness)

The evaluation committee checks the bid security (amount, validity), signed forms, completeness of documents, validity period, power of attorney, registration, tax clearance, and that the bid is in the required currency. Bids that are not substantially responsive are rejected.

3. Technical and qualification evaluation

Experience in similar works, financial capacity (turnover, bank guarantee), key personnel, equipment, work programme and method statement, and capacity are evaluated on a pass/fail basis (or with a score in QCBS).

4. Financial evaluation

  • Arithmetic errors are corrected (unit rate prevails over the total; words prevail over figures).
  • Omissions, discounts and conditions are adjusted to give the evaluated bid price.
  • Unusually low bids (below about 85% of the estimate) are checked for realistic rates, and an additional performance security may be asked for.
  • Bids are compared on the evaluated price and ranked.

5. Selection and award

  • The lowest evaluated responsive bidder is ranked first and is post-qualified.
  • The committee's report is approved by the approving authority.
  • A notice of the intention to award is given to all bidders, who have a period (7 days) to complain.
  • The Letter of Acceptance is issued, the performance security (5% of the contract price) is submitted, and the contract is signed.

✓ Answer checked by Claude Opus 5.5 (high effort)

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