Top 3 Reasons for the Use of Tenders for Government Projects

In the case of government projects, the tendering system can essentially save a large sum of the taxpayers’ money. This process also encourages healthy competition in the market and allows the buyers to eliminate contractors having insufficient capacity or experience. The tender is typically awarded to the bidder offering the best quality product for the lowest quoted price. 

Some reasons why IT, construction, irrigation, railway and coal tenders in India are commonly issued by government agencies and departments to source raw materials and complete projects are as follows: 

The system of tendering is used by a great number of government departments and agencies in order to identify the ideal suppliers for procurements and public projects. The prime reason for this being that tenders allows enterprises to choose from a large pool of potential contractors, subsequently maximizing the value for money.

• Value for money: Tenders are basically awarded on the basis of certain predetermined criteria, such as the quality of output and price. Hence, with the help of the tendering system, the buyers get to enjoy the best possible value for money. Therefore, this process can come as a huge benefit in case of government organizations as it provides an assurance that the money prom the taxpayers’ would not be wasted on overpriced or substandard quality products.
  
• Regulatory framework: Government departments and agencies are required to operate under certain strict legislative obligations. The projects undertaken by them hence also require a certain amount of monitoring, so as to ensure that they are not developed while going outside the prescribed framework. All the relevant regulatory requirements can be mentioned in the tender document. This factor ensures that the contractors bidding for the tenders are aware about them and have agreed to abide by them.
  
• No Favoritism: As in the tendering process, the bids are evaluated on a public platform, on the basis of price and quality, any chances of favoritism or nepotism on the part of any government officer is eliminated. This system ensures absolute transparency and fairness in the awarding of the tender.

There are a number of railway, IT, construction and Coal India tenders being floated by the government agencies daily. In order to acquire detailed information about them people can check out reputed online tendering portals offering information on these.