| S.No. | Field / Checkpoint | Reference | Status |
|---|---|---|---|
| A. TENDER REFERENCE | |||
| A1 | NIT number + estimated cost put to tender Acceptance: Exact match | As per NIT | OK NC NA |
| A2 | Bidder details + EMD Acceptance: EMD original enclosed | Per NIT | OK NC NA |
| B. PERCENTAGE QUOTED | |||
| B1 | Overall percentage above / below estimated cost (figures + words) Acceptance: % in figures and words match | Single number applies to all items (per CPWD Para 27) | OK NC NA |
| B2 | Computation example — estimated × (1 + %) Acceptance: Total amount derivable | Arithmetic check | OK NC NA |
| C. ITEM-WISE DERIVED RATES (if required) | |||
| C1 | Quoted % applied to each estimated item rate Acceptance: Same % applied uniformly | Optional working sheet | OK NC NA |
The Percentage Rate Bid is the most common Indian government tendering format. The client provides a schedule of quantities with their own estimated rates (called 'Estimated Rates' or 'Plinth Rates'); the contractor bids a single percentage — typically 'at par', 'X% above', or 'X% below' the estimated rates. The contract value = Estimated Total × (1 + bid percentage).
Advantages: simple comparison across bidders; faster evaluation; eliminates BOQ-level rate manipulation. Disadvantages: contractor cannot vary rates by item (e.g., low rate on excavation, high on finishing); estimated rates may not reflect actual costs.
Used extensively by CPWD, state PWDs, MES, Railways, Municipal Bodies for routine civil works. Tender amount + contract structure depends on whether bid is above or below estimated rate.
Bid components: - Estimated cost by client (e.g., ₹10 crore) - Contractor's bid percentage (e.g., '5% below', '12% above', 'at par') - Resulting contract value (₹9.5 crore at 5% below; ₹11.2 crore at 12% above) - Earnest Money Deposit (EMD) — typically 1-2% of estimated cost - Bid validity period — typically 90-180 days - Performance Bank Guarantee — typically 5-10% of contract value, payable on award
Tender evaluation: 1. Technical Bid review — qualifying criteria check 2. Financial Bid opening — only for technically qualifying bidders 3. L1 (lowest) declared — bid with lowest percentage (most negative or least positive) 4. L1 verification — abnormally low bids investigated (avoid loss-making contractors) 5. Letter of Award (LOA) issued to L1
Common Indian variations: - Item Rate Bid — contractor bids different rates per BOQ item - Lump Sum Bid — total fixed amount for entire scope - Cost Plus Bid — actual cost + agreed margin - Percentage Rate Bid (this) — single percentage applied to estimated schedule
1. Estimated rates outdated — client's Schedule of Rates 1-2 years old; actual market 20-30% higher; bidder needs significant positive percentage to break even. 2. Abnormally low bid — contractor bids 30%+ below to win; cannot perform; project delays + claims emerge. 3. Below cost — bidder underestimates own cost; loses money throughout project. 4. Government estimate too high — bid percentage seems acceptable but actual rates inflated; budget overrun. 5. EMD issues — bidder doesn't pay EMD; bid disqualified. 6. Bid validity expires — client takes too long to evaluate; bid expires; contractor declines to extend. 7. Sub-contractor pricing not factored — contractor's bid assumes own execution; later sub-contracts at higher rates; loss. 8. No escalation provision — fixed-rate contract over long period; material costs escalate; contractor squeezed. 9. No bill-of-quantity verification — actual quantities differ from BOQ; contractor + client argue at billing.
Companion formats: - Letter of Award (FMT-TND-014) — contract award - Performance BG Submission (FMT-TND-015) — post-LOA BG - Deviation Sheet Commercial (FMT-TND-012) — terms negotiations - Deviation Sheet Technical (FMT-TND-011) - Mobilisation Advance Request (FMT-TND-016)
Indian government procurement: - GFR (General Financial Rules) 2017 — government procurement framework - Manual for Procurement of Works 2022 (CPWD) — tendering protocols - NHAI / MoRTH standard bid documents — sector-specific - Public Procurement (Preference to Make in India) Order 2017 — domestic-preference provisions