TENDERING & CONTRACT MANAGEMENT Part - VI
TENDERS – MANDATORY DOCUMENTS
COMPANY
REGISTRATION CERTIFICATES
·
Proving Legal Existence
1. Certificate of Incorporation (For Companies)
Issued By: Registrar of Companies (RoC) What It
Proves: Company legally exists Validity: Perpetual (no expiry)
What to Submit:
- Full
certificate (with CIN number visible)
- If
name changed: Certificate of name change also
- Certified
true copy acceptable
For Partnership Firms:
- Partnership
Deed (registered)
- Certificate
of Registration (if registered under Partnership Act)
For Proprietorships:
- GST
registration (serves as business proof)
- Udyam
Registration (MSME)
- Shop
& Establishment license
For LLPs:
- LLP
Incorporation Certificate from MCA
Common Mistakes: ❌ Submitting expired registration
(old companies) ❌ Name mismatch (company name
changed but cert not updated) ❌ Unclear scan (CIN not readable)
2. GST Registration Certificate
Full Form: Goods and Services Tax Identification
Number (GSTIN) Issued By: GST Department, State/Central Format:
15-digit alphanumeric (e.g., 27AABCU9603R1ZX) Validity: Perpetual (but
can be cancelled if non-compliant)
What to Check Before Submitting:
- Status:
ACTIVE (not suspended/cancelled)
- Verify
online: www.gst.gov.in →
Search Taxpayer
- Address
matches with tender submission
- All
business places registered if multi-location
What to Submit:
- GST
Registration Certificate (download from portal)
- Latest
GST return proof (last 3 months recommended)
Common Mistakes: ❌ GST cancelled/suspended (check
portal before bidding) ❌ Different state GST (some
tenders require same state) ❌ Provisional GST (some tenders
ask for final only)
3. PAN Card (Permanent Account Number)
Issued By: Income Tax Department Format:
10-character alphanumeric (e.g., AABCU9603R) Validity: Perpetual
What to Submit:
- PAN
card of company/firm/proprietor
- Must
match with GST registration PAN
- Clear,
legible copy
Why It Matters:
- TDS
deduction from payments
- Cross-verification
with GST
- Financial
credibility check
Common Mistakes: ❌ Individual partner's PAN
instead of firm's PAN ❌ Mismatch between PAN in GST and
PAN submitted
4. TAN (Tax Deduction Account Number)
Full Form: Tax Deduction and Collection Account
Number Issued By: Income Tax Department Format: 10-character
alphanumeric (e.g., DELC12345F) Purpose: For TDS return filing
When Required:
- All
companies/firms deducting TDS must have TAN
- Mandatory
if you have employees (TDS on salary)
- Some
tenders specifically ask for TAN
What to Submit:
- TAN
allotment letter
- Or
download from TRACES portal
Note: Not all small contractors have TAN (if no TDS
obligation) If tender mandates, you MUST obtain before bidding
STATUTORY
REGISTRATIONS
·
Labour Law Compliance
5. EPF Registration (Employees' Provident Fund)
Full Form: EPFO (Employees' Provident Fund
Organization) Mandatory For: All establishments with 20+ employees Registration
Number: State code + Office code + Establishment code Example:
TN/12345/0001234
What to Submit:
- EPF
Registration Certificate (Form 5A or similar)
- Latest
EPF challan (last 3-6 months)
- ECR
(Electronic Challan cum Return) screenshot
What Client Checks:
- You're
compliant with labour laws
- Employees'
welfare being taken care of
- No
dues pending
If You Don't Have 20 Employees:
- Voluntary
registration possible
- Some
tenders accept "Not Applicable" declaration
- But
for government tenders > ₹10 Cr, usually mandatory
Common Mistakes: ❌ Submitting old/cancelled
registration ❌ Pending dues (verify online before bidding) ❌
ECR not filed for last 3 months (shows non-compliance)
6. ESI Registration (Employees' State Insurance)
Full Form: ESIC (Employees' State Insurance
Corporation) Mandatory For: Establishments with 10+ employees earning
< ₹21,000/month Registration Number: 17-digit code Example:
11-12-012345-000-0001
What to Submit:
- ESI
Registration Certificate
- Latest
ESI challan (last 3-6 months)
- Return
filed proof
Benefits Covered:
- Medical
facilities for workers
- Sickness,
maternity, disability benefits
What Client Checks:
- Worker
welfare
- Compliance
with ESIC Act
If Not Applicable:
- Submit
declaration: "We have no employees in ESI wage limit" OR
"We have <10 employees"
Common Mistakes: ❌ Not updating employee count
(had <10, now have 15, but not registered) ❌ Pending dues
How to Verify Your Compliance:
- EPF
Portal: unifiedportal-mem.epfindia.gov.in
- ESI
Portal: www.esic.in
- Check
status, dues, last payment date
EXPERIENCE CERTIFICATES
·
Proving Your Track Record
What Are Experience Certificates? Documentary proof
that you've successfully completed similar projects in the past.
Why Critical:
- Pre-qualification
criteria (minimum ₹X value work in last Y years)
- Technical
capability assessment
- Client
reference check
- 30-40%
weight in evaluation (in some tenders)
Qualifying Criteria (Typical - varies by tender):
- Nature
of work: "Similar work" (defined in tender)
- Value:
Minimum ₹X Cr work
- Period:
Last 5-7 years
- Status:
Completed (ongoing doesn't count usually)
- Client
type: Sometimes requires government client experience
What Constitutes Valid Experience Certificate:
Essential Elements:
- Client
letterhead: Official, with logo
- Work
description: Clear scope (e.g., "Construction of G+4 RCC
building")
- Contract
value: Actual value executed (not just awarded)
- Period:
Start and completion dates
- Completion
status: "Satisfactorily completed" statement
- Client
signature: Authorized signatory with designation
- Client
seal/stamp: Official
- Contact
details: For verification
____________________________________________________________________________________________
Format Suggestion:
[Client Letterhead]
WORK COMPLETION CERTIFICATE
This is to certify that M/s [Your Company Name] has
successfully executed the following work awarded by us:
Name of Work: Construction of Administrative Block
Location: Sector 15, Noida
Contract Value: ₹15,45,00,000/- (Rupees Fifteen Crores Forty
Five Lakhs only)
Work Order No: CE/2022/123 dated 15-Jan-2022
Date of Commencement: 01-Feb-2022
Date of Completion: 30-Nov-2023
Actual Amount Paid: ₹15,38,50,000/-
The work has been completed SATISFACTORILY and to our entire
satisfaction as per contract terms and specifications.
[Signature]
Name: Shri XYZ
Designation: Executive Engineer
Organization: CPWD
Date: 05-Dec-2023
Contact: +91-11-12345678
Email: ee.xyz@cpwd.gov.in
[Official Seal]
How Many Certificates to Submit?
Depends on PQ Criteria:
Example Requirement: "Bidder should have
completed minimum ONE similar work of value ₹12 Cr OR TWO works of ₹8 Cr each
in last 5 years"
Your Strategy:
- If
you have 1 work of ₹15 Cr →
Submit that (exceeds requirement)
- If
you have 2 works of ₹9 Cr each →
Submit both (satisfies 2nd condition)
- Submit
1-2 extra as backup (in case client disputes similarity)
**What is "Similar Work"?**
Tender defines this.
Common definitions:
- "Building
construction work" - Any building qualifies
- "RCC
building construction" - Must have RCC structure
- "Multi-story
building" - Must be G+3 or more
- "Institutional
building" - Hospitals, schools, offices
- Read
carefully and match your experience
Supporting Documents: Along with completion
certificate, attach:
- Work
order copy (proves award)
- Final
bill / payment certificate (proves value)
- Photographs
(proves execution)
Client Verification: Evaluators WILL call the client
mentioned in certificate
- Ensure
contact number is current
- Inform
your ex-client that verification call may come
- If
client doesn't respond or gives negative feedback → Rejected
SLIDE 33: FINANCIAL STATEMENTS
Title: Proving Financial Health
Why Financial Statements? Client wants to ensure:
- You
have financial capacity to execute
- You
won't go bankrupt mid-project
- You
can arrange working capital
- Your
business is stable
What to Submit:
1. Audited Balance Sheet (Last 3 Years)
- For
companies: As per Companies Act (audited by CA)
- For
firms/proprietors: IT audited statements (if turnover > ₹1 Cr)
Must Show:
- Assets
and Liabilities
- Auditor's
signature and seal
- Financial
year clearly mentioned
2. Profit & Loss Statement (Last 3 Years)
- Revenue
and expenses
- Net
profit/loss
- Turnover
figures
3. Income Tax Returns (ITR - Last 3 Years)
- ITR
acknowledgment (filed with IT Department)
- Computation
of income
- Proves
tax compliance
4. Auditor's Certificate Some tenders ask for CA
certificate stating:
- Annual
turnover for last 3 years
- Net
worth
- Working
capital
- No
bankruptcy proceedings
Financial Qualifying Criteria (Typical):
Minimum Turnover: "Average annual turnover in
last 3 years should be at least 2X of estimated contract value"
Example:
- Estimated
contract: ₹10 Cr
- Requirement:
₹20 Cr average turnover
- Your
turnover: FY 21-22: ₹18 Cr, FY 22-23: ₹22 Cr, FY 23-24: ₹21 Cr
- Average:
(18+22+21)/3 = ₹20.33 Cr →
QUALIFIES
Positive Net Worth: "Should have positive net
worth in all 3 years" Net worth = Total Assets - Total Liabilities
Working Capital: "Should have access to working
capital of at least 10% of contract value"
How to Calculate Working Capital: Current Assets -
Current Liabilities OR Bank solvency certificate stating available credit limit
Common Mistakes:
❌ Unaudited statements:
Self-prepared or CA compiled (not audited) →
Rejected
❌ Wrong financial year:
Tender released in Jan 2026, asks for "last 3 FY" You submit: FY
23-24, 22-23, 21-22 (✓ Correct) NOT: FY 24-25 (not
yet audited in Jan 2026)
❌ Incomplete statements:
Only balance sheet, no P&L or vice versa
❌ Mismatch with ITR:
Balance sheet shows ₹25 Cr turnover, ITR shows ₹20 Cr → Red flag
❌ Different entity: You're
bidding as ABC Constructions Pvt Ltd But submit financials of ABC Infra Pvt Ltd
(sister concern) →
Rejected
For Consortium/JV:
- Submit
financials of ALL partners
- Combined
turnover/net worth considered
- Joint
Venture agreement must specify financial contribution
EARNEST MONEY DEPOSIT (EMD)
·
Your Bid Security
What is EMD? Money deposited along with bid to
ensure:
- You're
a serious bidder
- You
won't withdraw bid after submission
- Compensation
to client if you back out
EMD Amount:
- Typically:
1-2% of estimated contract value
- Example:
₹10 Cr contract →
₹10-20 lakhs EMD
Acceptable Forms (As Per Tender):
1. Demand Draft (DD)
- Drawn
on scheduled bank
- In
favor of: [Client name as specified]
- Payable
at: [Location specified]
- Valid
for: Minimum bid validity period + 30 days
2. Banker's Cheque
- Similar
to DD
- From
scheduled bank
3. Fixed Deposit Receipt (FDR)
- Pledged
in favor of client
- With
lien marked
4. Bank Guarantee
- From
scheduled bank
- Irrevocable
and unconditional
- Validity:
Bid validity + 30 days
- Format:
As specified in tender or bank's standard format
5. Online Payment (e-Payment)
- Through
e-procurement portal
- Payment
gateway transaction
- Confirmation
receipt to be attached in bid
6. EMD Exemption (If Applicable):
- MSME
registered: 100% exemption (submit Udyam certificate)
- Startups:
As per government policy
- Some
categories: Women entrepreneurs, SC/ST
- Exemption
certificate to be submitted
Critical EMD Requirements:
Amount:
- Must
be EXACTLY as specified (not less, not more)
- If
₹10,50,000 required →
DD of ₹10,50,000 ONLY
- ₹10,00,000
→ REJECTED
(insufficient)
Validity:
- Must
be valid on bid opening date
- Should
remain valid till bid validity + 30 days
- Expired
DD/BG → REJECTED
Favoring:
- Exactly
as specified in tender
- "Pay
to: Executive Engineer, CPWD, Delhi"
- Even
1 word different →
May be rejected
If Bank Guarantee:
- On
bank letterhead with seal
- Signed
by authorized signatory (with specimen signature)
- Claim
period: Client can invoke within validity
- Unconditional:
"We shall pay without demur"
EMD Submission:
For Physical Bids:
- Original
DD/BG in separate envelope marked "EMD"
- Do
NOT staple to other documents (can be returned)
For Online Bids:
- Scan
and upload DD/BG
- OR
pay online through portal
- Original
to be submitted if shortlisted (some portals)
When is EMD Returned?
Successful Bidder:
- After
submitting Performance Bank Guarantee
- Typically
within 30 days of LOA acceptance
Unsuccessful Bidders:
- After
contract award to L1
- Typically
60-90 days post bid opening
When is EMD Forfeited?
❌ Withdrawal of bid during
validity period ❌ Refusing to accept LOA after
being declared L1 ❌ Failure to submit Performance
BG after LOA ❌ Submitting false/fraudulent documents ❌
Any breach of bid conditions
EMD Forfeiture = Permanent loss + Possible blacklisting
PERFORMANCE BANK GUARANTEE (PBG)
·
Contract Security
What is Performance Bank Guarantee? A bank guarantee
submitted by successful bidder (L1) to secure contract performance.
Purpose:
- Ensures
you complete work as per contract
- Client's
security against contractor default
- Can
be invoked if you breach contract
When to Submit:
- After
receiving Letter of Award (LOA)
- Before
signing contract agreement
- Timeline:
Typically 10-15 days from LOA
Amount:
- 5-10%
of contract value (as specified in tender)
- Example:
₹10 Cr contract →
₹50 lakhs to ₹1 Cr PBG
Validity:
- Contract
period + Defect Liability Period + 60 days
- Example:
18 months contract + 12 months DLP + 60 days = 32 months
Performance Bank Guarantee Format:
Essential Clauses:
[Bank Letterhead]
PERFORMANCE BANK GUARANTEE
Guarantee No: PBG/2026/12345
Date: [Date]
To,
[Client Name and Address]
Dear Sirs,
In consideration of you, [Client Name] having agreed to
accept Performance Bank Guarantee from [Bank Name] for Rs. [Amount in figures
and words] as security deposit for due performance and fulfillment of the
contract by M/s [Contractor Name] (hereinafter called 'the Contractor') for
[Work Name] under Agreement No. [Agreement No.] dated [Date], we [Bank Name]
hereby undertake to pay you on demand any sum or sums not exceeding Rs.
[Amount] (Rupees [Amount in words] only) without any demur and without your having
to substantiate your demand.
This guarantee shall remain valid until [Validity Date].
We, [Bank Name], further agree that you shall be the sole
judge to decide as to whether the Contractor has committed any breach of the
agreement, and your decision that the Contractor has committed such breach
shall be final and binding on us.
This Guarantee will not be discharged due to the change in
the constitution of the Bank or the Contractor.
Notwithstanding anything contained herein:
1. Our liability under this Bank Guarantee shall not exceed
Rs. [Amount].
2. This Bank Guarantee shall be valid up to [Validity Date].
3. We are liable to pay the guaranteed amount or any part
thereof under this Bank Guarantee only if you serve upon us a written claim or
demand on or before [Validity Date].
Dated this [Day] day of [Month], [Year].
For [Bank Name]
[Signature]
[Name]
[Designation]
[Branch Address]
[Contact Details]
[Bank Seal]
Key Points:
Unconditional and Irrevocable:
- Bank
pays on client's demand, no questions asked
- Contractor
cannot stop payment
- No
need for client to prove breach
From Scheduled Bank:
- Public
sector banks (SBI, PNB, etc.)
- Nationalized
banks
- Private
banks with good standing
- Cooperative
banks usually NOT accepted
On Bank Letterhead:
- Original,
not photocopy
- Bank
seal mandatory
- Authorized
signatory (manager level)
- Signature
must match bank records
Claim Period:
- Client
can invoke anytime within validity
- Usually
60 days after expiry for final claims
When Can Client Invoke PBG?
Legitimate Reasons:
- You
abandon work midway
- Persistent
poor quality despite warnings
- Delay
beyond acceptable limits
- Breach
of contract terms
- Insolvency
Process:
- Client
issues notice to contractor (usually)
- If
no resolution, client writes to bank
- Bank
pays client within 3-7 days
- Bank
recovers from contractor (your liability)
Your Protection:
- Perform
contract honestly
- Maintain
documentation
- Comply
with all terms
- If
dispute, resolve before client invokes
Reduction of PBG:
Progressive Reduction: Some contracts allow reduction
based on progress:
- After
50% work: Reduce to 50% of original
- After
75% work: Reduce to 25% of original
Final Release:
- After
completion + Defect Liability Period
- Submission
of final bill
- No
dues certificate from client
- Typically
24-30 months after LOA
Format for Release Request:
To,
[Client]
Subject: Release of Performance Bank Guarantee
Dear Sir,
We have successfully completed the work of [Work Name] under
Agreement No. [X] dated [Date]. The Defect Liability Period of 12 months has
also expired on [Date].
We request you to kindly release our Performance Bank
Guarantee No. PBG/2026/12345 for Rs. [Amount] lodged with you.
[Attachments: Completion certificate, Final bill
acknowledgment]
Thanking you,
[Contractor signature]
DOCUMENT SUBMISSION CHECKLIST
·
Zero-Error Approach
Master Checklist (Customize Per Tender):
A. Company Documents ☐ Certificate of Incorporation /
Partnership Deed (certified copy) ☐ Memorandum and Articles of
Association (for companies) ☐ Board resolution authorizing
signatory to sign bid ☐ Power of Attorney (if someone
other than director signing)
B. Tax Registrations ☐ GST Registration Certificate
(current, active status verified) ☐ PAN Card (matches GST PAN) ☐
TAN Certificate (if applicable)
C. Statutory Compliance ☐
EPF Registration + Latest 6 months challans ☐ ESI Registration + Latest 6
months challans ☐ Labour License (if tender
asks) ☐ Professional Tax registration (state-specific)
D. Experience Certificates ☐
Work Completion Certificates (minimum required number) ☐
Work Orders for each completion certificate ☐ Payment certificates proving
value ☐ Photographs of completed projects
E. Financial Documents ☐ Audited Balance Sheets (last 3
years) ☐ Profit & Loss Statements (last 3 years) ☐
Income Tax Returns (last 3 years) ☐ CA Certificate for turnover,
net worth (if required) ☐ Bank Solvency Certificate (if
required)
F. Technical Documents ☐ Method Statements (all major
activities) ☐ Project Execution Plan with Bar chart ☐
Quality Assurance Plan ☐ Safety Plan ☐
Environmental Management Plan ☐ Equipment list with ownership
proof ☐ Key personnel resumes
G. Bid Security ☐ EMD: DD/BG/Online payment
proof (correct amount, validity, favoring) ☐ OR MSME exemption certificate
H. Formats and Forms (As Per Tender) ☐
Bid form (filled, signed) ☐ Compliance statement (all
clauses accepted/deviated) ☐ Integrity Pact (signed, if
required) ☐ Non-blacklisting affidavit ☐
Joint Venture agreement (if JV bid)
I. Other Documents (Tender-Specific) ☐
ISO certification (if required) ☐ Prequalification documents (if
two-stage bid) ☐ Locality certificate (if local
preference) ☐ Caste certificate (if SC/ST reservation)
