Reasons Why the Tendering System is used for Railway Projects

A number of large-scale projects are undertaken by the railways every year due to the extensive size and use of the Indian railway network. These projects are ideally quite expansive in scope and involve a considerable sum of investment. And as such, usually tenders are issued by the railways for the completion of these projects.  

Reasons why tenders are issued for the completion of railway projects: 

• Quality of output: The Indian railway network is used by thousands of people every day, and hence to ensure their convenience and safety, it is important that all the projects related to it are completed with the highest efficiency. Contractors and supplier participating in the tendering process ideally have to provide an accurate list of their accomplishments, certificates, past projects and accreditations to be considered for the project in hand. This meticulous and structured system provides assurance that the unqualified candidates are eliminated, and only the most efficient bidders are chosen subsequent to the evaluation process. This process also reduces the cases of favoritism in the awarding of contracts.
  
• Value for money: Wining a railway tender can go a long way in enhancing the goodwill and reputation of a company in the market. Therefore, a great number of people tend to participate in such contracts. In most cases, to gain an edge over their competitors and win the railway contract, bidders offer the best possible quality at the lowest possible price range. This in turn saves the money of the taxpayers, as the majority of funds invested in railway projects ideally come from the public.
  
• Adherence to regulations: The tendering system provides assurance that the bidder winning the contract would orderly abide by the prearranged framework for the project. Like all government bodies, the Railway department has to follow certain legislative obligations and regulation. The projects undertaken by them are required to be completed under these guidelines as well. With the help of the tendering system, the railway department can monitor the workings of the contractors and ensure that they follow the relevant legislative obligations.

Contractors interested in bidding for railway tenders can easily acquire detailed and accurate information about them by exploring some of the prominent online portals publishing updates of government tenders.