Government Tender Glossary: 60 Terms in Plain English

Tender documents assume a vocabulary nobody is formally taught. Here is the whole of it, in one line each, with links to the guides that cover the ones worth understanding properly.

The document and the process

NIT. Notice Inviting Tender. The published notice and the document set that comes with it. See how to read a tender document.

RFP. Request for Proposal. Used where the buyer wants a proposed approach as well as a price, common in services and consultancy.

RFQ. Request for Quotation. A price request for a defined requirement, typically lower value.

EOI. Expression of Interest. A pre-tender step used to identify interested and capable suppliers before a full tender.

Prequalification. A stage that filters bidders on capability before the technical bid, used on larger works.

Corrigendum. A formal amendment to a published tender. It becomes part of the document. See corrigendum in a tender.

Addendum. Additional material issued with the tender. Used interchangeably with corrigendum by many departments.

Pre-bid meeting. The meeting at which bidders can raise queries before preparing bids. See pre-bid meeting questions.

Query deadline. The last date to submit written questions, usually well before the closing date.

Bid submission closing date. The moment the last byte must reach the portal. See submitting an e-tender.

Technical opening. When technical covers are opened and evaluated.

Financial opening. When the financial covers of technically qualified bidders are opened.

Money

EMD. Earnest Money Deposit. Bid security, refundable. See EMD in tenders.

Bid security declaration. A written undertaking accepted in place of a deposit on some tenders.

Tender fee. The cost of the tender document. Micro and small enterprises are exempt under the MSE policy.

PBG. Performance Bank Guarantee. Security furnished after award against performance. See performance bank guarantees.

Security deposit. An amount held against performance, often deducted from bills.

Retention money. Deducted from each running bill and released after the defect liability period. See retention money.

Margin money. The deposit a bank holds against a guarantee it issues on your behalf.

Mobilisation advance. An advance paid at the start of a contract, usually against a guarantee and recovered from later bills.

FDR. Fixed Deposit Receipt, pledged as security. See bank guarantee, FDR or insurance surety bond.

Insurance surety bond. An insurer-issued alternative to a bank guarantee.

Eligibility

Average annual turnover. Turnover averaged over the stated financial years. See how it is calculated.

Similar work. Past completed work of comparable nature and value. See what similar work means.

Solvency certificate. A banker's statement of financial standing. See solvency certificate for tenders.

Bid capacity. A formula limiting total commitments taking work in hand into account.

Registration class. The department's grading of a contractor, capping the value of work they may bid for. See contractor registration classes.

Udyam. The government's MSME registration. See Udyam registration for tenders.

MSE. Micro or Small Enterprise. Entitled to EMD and tender fee exemption. See MSME benefits.

DPIIT recognition. Startup recognition, relevant to discretionary relaxations. See startup relaxations.

Class-I local supplier. Meets the higher local content threshold under the Make in India order. See purchase preference.

JV. Joint Venture. See joint venture bidding.

Structure and evaluation

Single, two and three cover. How technical and financial information are separated. See the cover system.

L1. The lowest evaluated bidder. Also used for the evaluation method that awards to them.

QCBS. Quality and Cost Based Selection, combining technical and financial scores on stated weights. See L1 vs QCBS.

LCS. Least Cost Selection: the cheapest bid among those meeting a technical threshold.

Reverse auction. A live descending-price auction after financial opening. See reverse auction in tenders.

Abnormally low bid. A bid so far below estimate that the buyer may seek justification. See abnormally low bids.

Bid validity period. How long your price stands. See bid validity period.

Rate contract. A contract fixing rates for a period, drawn against as required.

Delivery and payment

BOQ. Bill of Quantities. The itemised schedule you price.

Schedule of rates. A department's standard rates for items of work.

RA bill. Running Account bill, raised periodically against work done. See running account bills.

Measurement book. The record of work measured, on which payment is based.

DLP. Defect Liability Period, during which you remain responsible for defects.

LD. Liquidated Damages, deducted for delay.

Price variation clause. Adjusts payment for input price movement. See price variation clauses.

Completion certificate. Certifies work was completed satisfactorily. See work order vs completion certificate.

Platforms and instruments

GeM. Government e-Marketplace. See GeM seller registration and GeM bids.

ATC. Additional Terms and Conditions on a GeM bid, where the real eligibility sits. See participating in a GeM bid.

CPPP. Central Public Procurement Portal. See CPPP tenders.

DSC. Digital Signature Certificate. See DSC for tenders.

GFR. General Financial Rules, the central government's financial rulebook.

Retender. Re-issuing a tender after cancellation. See retender and cancellation.

Debarment. Exclusion from bidding for a period. See blacklisting and debarment.

Browse live tenders, states, categories and portals to see these in use.