ABSTRACT
The first step that leads to the formation of a building or engineering contract is an invitation to tender. The owner or employer of the project sends it to known agencies by post in the case of private works and, generally, by public advertisement if the employer happens to be a public body. The advertisement is called a tender notice. The relevant provisions of the Act are referred to adjudicate disputes that may arise between the parties to a contract, during the formation of a binding contract between them. Instead of inviting tenders openly, an employer may invite tenders from a few selected contractors by inviting them to submit the tenders in limited competition. For large and complex works or highly specialized jobs, prequalification of tenderers is carried out. In the case of public works, notices calling for tenders are generally in the standard form and serially numbered and entered into a register maintained for that purpose.
