Question 1

What is a government tender?

Accepted Answer

A government tender is a formal, public invitation by a government department, PSU or local body asking businesses to submit competitive bids to supply goods, works or services. The buyer publishes the requirement, eligible firms bid, and the contract is usually awarded to the lowest qualifying bid (L1) or the best value-for-money offer.

Question 2

What is an NIT (Notice Inviting Tender)?

Accepted Answer

The NIT is the official notice that announces a tender. It carries the tender ID/reference number, the work or supply required, the estimated value, the EMD, the document fee, the key dates (bid start, pre-bid meeting, closing date, opening date) and where to find the full document. It's the starting point for every bid.

Question 3

What is the difference between a tender and a bid?

Accepted Answer

The tender is the buyer's invitation (the requirement and conditions). The bid is the seller's response — your offer, with documents and price. Loosely, people use 'applying for a tender' and 'submitting a bid' to mean the same thing.

Question 4

What does e-tender or e-procurement mean?

Accepted Answer

E-tendering is the online process of publishing, bidding for and awarding government tenders through an electronic portal instead of paper. In India it runs mainly on GeM (gem.gov.in) for goods/services and GePNIC/CPPP portals (eprocure.gov.in and state portals) for works and larger procurements.

Question 5

What is the difference between RFQ, RFP and EOI?

Accepted Answer

An RFQ (Request for Quotation) asks for prices on a clearly defined item — price usually decides. An RFP (Request for Proposal) asks for a solution and is scored on technical merit plus price. An EOI (Expression of Interest) is a pre-stage that shortlists capable firms before a full tender is issued.

Question 6

What is a corrigendum in a tender?

Accepted Answer

A corrigendum is an official amendment to a published tender — a change to the scope, eligibility, dates or documents. Always re-read the latest corrigendum before bidding, because it overrides the original NIT and can move the deadline or change what you must submit.

Question 7

What does L1 mean in a tender?

Accepted Answer

L1 is the lowest financial bidder among the technically qualified firms. In most government works and supply tenders the L1 bidder wins, provided their bid is responsive and meets all eligibility and technical conditions.

Question 8

What is a two-bid or two-envelope tender?

Accepted Answer

Many tenders are submitted in two parts: a technical bid (your eligibility, experience and documents) and a financial/price bid (your rates, usually a BOQ). The technical bids are opened and evaluated first; only the firms that qualify technically have their price bids opened.

Question 9

What is single-bid vs two-bid?

Accepted Answer

In a single-bid (single-envelope) tender, eligibility and price are submitted and opened together. In a two-bid system, technical and financial bids are separate and opened in stages so price can't influence the technical evaluation.

Question 10

What is a pre-bid meeting?

Accepted Answer

A pre-bid meeting is a session (often online) where the buyer answers bidders' questions about the tender before the deadline. Clarifications given there, and any resulting corrigendum, become part of the tender — so attend or read the minutes.

Question 11

What is the estimated tender value or estimated cost put to tender?

Accepted Answer

It's the buyer's own estimate of what the contract is worth (also called the estimated cost or 'value put to tender'). It guides your pricing and decides the EMD, eligibility thresholds and fees. The final award value is the winning bid, which can be below this estimate.

Question 12

What is tender or bid validity?

Accepted Answer

Bid validity is the period (commonly 90–180 days) for which your quoted price and offer must stay open after the bid-opening date. The buyer can ask to extend it; if you withdraw within the validity period you can forfeit your EMD.

Question 13

What is a responsive vs non-responsive bid?

Accepted Answer

A responsive bid meets all the tender's mandatory conditions — documents, formats, EMD and specifications. A non-responsive bid has a material deviation or a missing mandatory item and is rejected before price is even considered, however low the rate.

Question 14

What is a rate contract?

Accepted Answer

A rate contract fixes unit prices for specified items for a period, so the buyer can place repeat orders at those rates without tendering each time. GeM uses rate-contract-style catalogues for many goods.

Question 15

What is a limited tender vs open tender?

Accepted Answer

An open tender invites any eligible firm to bid and is published publicly. A limited tender is sent to a shortlist of empanelled or pre-qualified vendors, usually for lower-value or specialised needs, under the buyer's procurement rules.

Question 16

What is a Notice Inviting e-Tender (NIeT)?

Accepted Answer

It's simply the NIT for an online tender — the same notice, published on an e-procurement portal where the whole bid is submitted electronically with a digital signature.

Question 17

What is the tender document fee?

Accepted Answer

Some tenders charge a non-refundable fee to access or process the tender (also called tender/processing fee). MSEs and DPIIT-recognised startups are usually exempt — claim the exemption with your Udyam/DPIIT proof when you bid.

Question 18

What does AOC or LOA mean?

Accepted Answer

AOC (Acceptance of Contract) and LOA (Letter of Award / Letter of Acceptance) are the documents the buyer issues to the winning bidder confirming the award, before the formal agreement is signed.

Question 19

How do I find government tenders in India?

Accepted Answer

Government tenders are published on official portals — GeM (gem.gov.in), the Central Public Procurement Portal eprocure.gov.in, and each state's e-procurement portal. Aggregators like Bidrove pull live tenders from these sources into one searchable place with eligibility, deadlines and a cost/profit estimate for each.

Question 20

Are government tenders free to find?

Accepted Answer

Finding and reading the tender notice is free on the official portals and on Bidrove. You may pay a small, often-refundable or MSE-exempt tender/document fee to bid on specific tenders, and an EMD that's returned to unsuccessful bidders.

Question 21

How do I know which tenders are worth bidding for?

Accepted Answer

Match the tender to what you can actually deliver: check the eligibility (class, turnover, experience), the value against your capacity, the location, the EMD you can fund, and the realistic margin after costs. Bidrove shows eligibility and a cost/profit estimate on each tender to help you filter quickly.

Question 22

How often are new tenders published?

Accepted Answer

Continuously — government buyers publish tenders every day across thousands of departments. It's worth setting alerts by category, location and value so you see relevant ones early, since closing windows can be short.

Question 23

Can I get alerts for new tenders?

Accepted Answer

Yes. On Bidrove you can save tenders and get deadline reminders, and smart alerts surface new tenders that match your category and area, so you don't miss a closing date.

Question 24

What is a tender ID or reference number?

Accepted Answer

It's the unique code that identifies a tender on the portal (and on the NIT). Quote it in all your correspondence and bid documents — it's how the buyer and the portal track your bid.

Question 25

What's the difference between live and archived tenders?

Accepted Answer

Live tenders are still open for bidding (before the closing date). Archived or closed tenders have passed their deadline — useful for research, seeing past award values and understanding what a department buys.

Question 26

Can small businesses or individuals bid for government tenders?

Accepted Answer

Yes. Proprietorships, partnerships, MSMEs and companies can all bid, as long as they meet the tender's eligibility. Many tenders are reserved for or give preference to MSEs and startups, so small firms can and do win.

Question 27

Do I need a company to bid, or can a proprietorship bid?

Accepted Answer

A registered proprietorship can bid for most tenders — you'll need a PAN, GST (where applicable), a bank account and the relevant registrations. The tender's eligibility section states what business form and documents are accepted.

Question 28

How far in advance should I start preparing a bid?

Accepted Answer

Start as soon as you spot a relevant tender. Arranging EMD, a DSC, GST/experience certificates and a correctly filled BOQ takes time, and most portals lock submissions at the deadline with no extension — aim to submit at least a day early.

Question 29

How do I check if I'm eligible for a tender?

Accepted Answer

Read the eligibility / qualifying-criteria section of the tender. It lists the contractor class or registration, minimum annual turnover, similar-work experience, and required certificates. If you meet all of them you can bid. Bidrove summarises each tender's eligibility in plain language.

Question 30

What is annual turnover criteria in a tender?

Accepted Answer

Many tenders require a minimum average annual turnover (often over the last three financial years) to show you can handle the contract financially — commonly set as a multiple of the estimated value. You prove it with audited financials or a CA-certified turnover certificate.

Question 31

What is similar-work or prior-experience criteria?

Accepted Answer

Tenders often require proof that you've completed similar work of a certain value in recent years (e.g. one work of 80%, two of 50% or three of 40% of the estimate). You prove it with work-completion certificates from earlier clients.

Question 32

What is contractor class or registration class?

Accepted Answer

For works tenders, contractors are graded into classes (e.g. Class I, II, III…) by the PWD or department, based on their capacity and past work. Each class can bid up to a value limit. The tender states the minimum class required.

Question 33

Is turnover criteria relaxed for MSMEs and startups?

Accepted Answer

Yes. Under the Public Procurement Policy, prior-turnover and prior-experience criteria are relaxed for Micro & Small Enterprises and exempted for DPIIT-recognised startups, subject to meeting the quality and technical specifications. You must still be able to deliver.

Question 34

What documents prove my eligibility?

Accepted Answer

Typically: PAN, GST registration, Udyam/MSME certificate, the relevant trade/PWD registration, audited financials or a turnover certificate, work-completion certificates, and any product/quality certificates (ISO, BIS) the tender asks for. The exact list is in the tender.

Question 35

Can I bid as a joint venture or consortium?

Accepted Answer

Some larger tenders allow a joint venture (JV) or consortium so partners can pool turnover and experience. The tender will specify whether JVs are allowed, the lead-partner rules and the JV agreement format you must submit.

Question 36

What is a blacklisted or debarred bidder?

Accepted Answer

A firm barred from bidding (by a department or across government) for a period, usually for default or malpractice. Most tenders require a self-declaration that you are not blacklisted; bidding while debarred leads to rejection.

Question 37

Do I need GST registration to bid?

Accepted Answer

Usually yes for taxable supplies — GST registration is a standard eligibility document, and your prices/BOQ must show GST correctly. Check the tender; some low-value or exempt categories may differ.

Question 38

What is a self-declaration or undertaking in a bid?

Accepted Answer

A signed statement confirming facts the buyer relies on — for example that you're not blacklisted, that your documents are genuine, or that you accept the terms. False declarations can lead to EMD forfeiture and debarment.

Question 39

What if I don't fully meet the eligibility — can I still bid?

Accepted Answer

If you miss a mandatory criterion your bid will be rejected, so it's usually not worth bidding. Where criteria are relaxable for MSEs/startups, claim the relaxation with proof. Otherwise, build the missing experience/turnover on smaller tenders first.

Question 40

What is technical evaluation?

Accepted Answer

It's the stage where the buyer checks each bid against the eligibility and technical specifications — documents, experience, product specs, certificates. Only bids that pass move to the financial/price stage.

Question 41

What is EMD (Earnest Money Deposit)?

Accepted Answer

EMD is a refundable deposit you submit with your bid to show you're serious. It's usually a small percentage of the estimated value (commonly 1–3%). It's returned to unsuccessful bidders, and to the winner after they furnish the performance security — but it's forfeited if you withdraw or back out.

Question 42

How much is the EMD for a tender?

Accepted Answer

It varies by tender and is stated in the NIT — typically around 1–3% of the estimated contract value, sometimes a fixed amount for small tenders. Always use the figure in the specific tender document, not a rule of thumb.

Question 43

How do I pay the EMD?

Accepted Answer

Depending on the portal it's paid online (net-banking/NEFT/RTGS/UPI) or via instruments like a bank guarantee, FDR or demand draft in the buyer's favour, as the tender specifies. On many e-portals EMD is paid digitally and linked to your bid.

Question 44

When do I get my EMD back?

Accepted Answer

Unsuccessful bidders usually get their EMD refunded soon after the contract is awarded. The winner's EMD is released after they submit the performance security/security deposit. No interest is paid on EMD.

Question 45

When is EMD forfeited?

Accepted Answer

EMD is forfeited if you withdraw your bid during its validity, refuse the award, fail to furnish the performance security, or are found to have submitted false documents. Otherwise it's returned.

Question 46

Are MSMEs exempt from EMD?

Accepted Answer

Yes — Udyam-registered Micro & Small Enterprises and DPIIT-recognised startups are generally exempt from EMD in government tenders. You must attach your Udyam/DPIIT certificate and claim the exemption in the bid, or it may be processed without the waiver.

Question 47

What is a security deposit or performance security?

Accepted Answer

After winning, you furnish a performance security (security deposit) — commonly around 3–10% of the contract value — that the buyer holds to guarantee you complete the work properly. It's released after successful completion/defect-liability period.

Question 48

What is a Performance Bank Guarantee (PBG)?

Accepted Answer

A PBG is a bank guarantee given to the buyer as performance security — your bank promises to pay the buyer a set amount (often 10% of the contract value) if you default. It's a common form of security deposit for works contracts.

Question 49

What is a Bank Guarantee (BG) in tenders?

Accepted Answer

A bank guarantee is your bank's written promise to pay the buyer if you fail to meet an obligation. It's used for EMD, performance security or advance/mobilisation, in the buyer's prescribed format and validity.

Question 50

What is an FDR in the context of EMD?

Accepted Answer

An FDR (Fixed Deposit Receipt) pledged in the buyer's favour is one accepted way to submit EMD or security — your money stays in a deposit, lien-marked to the buyer, instead of a cash transfer.

Question 51

What is additional performance security?

Accepted Answer

When a bid is unusually low (well below the estimate), some buyers ask the winner for additional performance security to cover the risk of non-performance, over and above the normal security deposit.

Question 52

Is EMD refundable if my bid is rejected?

Accepted Answer

Yes — if your bid is rejected for not qualifying (and you haven't done anything that triggers forfeiture, like false documents), your EMD is refunded after the process concludes.

Question 53

What is a BOQ (Bill of Quantities)?

Accepted Answer

A BOQ is the financial/price bid — a structured list of every item or activity in the tender with quantities, against which you quote unit rates. The portal totals it. It's the commercial backbone of your bid and decides whether you're L1.

Question 54

How do I fill a BOQ correctly?

Accepted Answer

Download the official BOQ (usually an Excel/XLS template), fill only the permitted rate cells, quote rates inclusive of what the tender requires (taxes/GST as specified), don't change the structure or convert it to PDF unless asked, and upload it in the financial envelope. A wrongly filled or misplaced BOQ is a common disqualification.

Question 55

Should I put the BOQ in the technical or financial envelope?

Accepted Answer

The BOQ (price) goes in the financial/price envelope only. Putting price information in the technical envelope reveals your rate too early and is usually a disqualifying error in two-bid tenders.

Question 56

How do I price a tender so I don't lose money?

Accepted Answer

Cost it bottom-up — materials, labour, equipment, overheads, taxes and a margin — then check it against the estimated value and likely competition. Quote low enough to be competitive (L1) but never below your true cost. Bidrove gives a cost/profit estimate and a suggested bid range to start from.

Question 57

What does it mean to be the L1 bidder?

Accepted Answer

Being L1 means you quoted the lowest price among the technically qualified bidders, so you're in line to win. Winning at L1 only pays off if your rate still covers your costs and leaves a margin.

Question 58

Should I always bid the lowest price to win?

Accepted Answer

Not blindly. The lowest qualifying bid usually wins, but bidding below cost to win L1 leads to losses or non-performance. Price to be competitive while protecting your margin, and walk away if the numbers don't work.

Question 59

What is the difference between item-rate and percentage-rate (above/below) tenders?

Accepted Answer

In an item-rate tender you quote a rate for each BOQ item. In a percentage-rate tender you quote a single percentage above or below the buyer's schedule of rates. The tender states which applies.

Question 60

What is a Schedule of Rates (SOR)?

Accepted Answer

A Schedule of Rates is the government's standard price list for works items in a region. Percentage-rate tenders are quoted as a percentage above/below the SOR, and it's used to estimate works.

Question 61

Do my BOQ rates include GST?

Accepted Answer

Quote rates in the GST format the tender specifies — sometimes rates are exclusive of GST with GST shown separately, sometimes inclusive. Get this wrong and your comparable price (and L1 position) can change. Always follow the tender's instruction.

Question 62

What is an unbalanced or abnormally low bid?

Accepted Answer

An abnormally low bid is a price so far below the estimate that the buyer doubts you can perform. Buyers may seek justification or extra performance security, and an unbalanced BOQ (loading rates onto certain items) can be flagged in evaluation.

Question 63

What happens if I make a mistake in my quoted rate?

Accepted Answer

You generally can't change your price after the deadline. Arithmetic corrections follow the tender's rules (often the unit rate prevails over the total). A serious pricing error can mean you either lose money or forfeit EMD by backing out — so check the BOQ carefully before submitting.

Question 64

Does Bidrove tell me the actual cost of a tender?

Accepted Answer

Bidrove shows an estimate — a cost and profit model based on typical cost ratios for the tender's category and a state cost index, plus a suggested bid range. It's a starting point to sanity-check your own costing, not the tender's actual figures or a quote.

Guides & Knowledge Base

Tender submission checklist — 15 things to double-check before you submit

Before you start filling the bid

Documents

Money & price

Final submit