Thursday, February 26, 2009

- Business Models / Project execution types

Government generally splits the work & invites tender from different agency for a Project. Failure of one agency to deliver results in delay of the entire project. And hence Tenders are invited under the following models.

# Turn Key Project

When a tender for setting up a new Power Plant is floated on Turn Key Basis, the Buyer expect Bidder to Buy Land, Build Complex, Buy & Install machinery, test run machinery, train people such that on switch of a button the plant goes live. The whole idea is to walk into a fully furnished house, where all you have to do is unlock the doors (turn key).
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.
Indian Tenders , Indian projects, Indian Supplier Contractor Database, eProcurement


# SITC - Supply, Installation, Testing & Commissioning
For e.g. if a tender is floated for supply of Genset under SITC basis, than the has to Supply Machinery, Install them, Test run them & even commission them (start it) for the Buyers.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.
Indian Tenders , Indian projects, Indian Supplier Contractor Database, eProcurement

# BOOT - Build, Own, Operate & Transfer
For e.g. when a Tender for construction of Express Highway is floated on BOOT Basis, worth Rs. 100 Cr it means
- The Bidder will invest Rs.100 Cr & build the Road
- The Bidder will own it & collect toll fees from Vehicles that uses the raod
- The Bidder will operate it i.e. maintain it till the time it does not recover 100 Cr
- And eventually after he has recovered his money, he will transfer the Road to Buyer /Government.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.
Indian Tenders , Indian projects, Indian Supplier Contractor Database, eProcurement

# PPP - Public Private Partnership
Under this model, the tender is executed under partnership model (between Government & Bidder). For e.g. A new power plant is built & operated by the Bidder but the Power is distributed by Government & fees is collected by the Government. The Revenue is split between Government & Bidder on pre defined ratio.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.
Indian Tenders , Indian projects, Indian Supplier Contractor Database, eProcurement

# EPC - Engineering, Procurement & Construction
Under this model, the Bidder is responsible for Engineering Work, Procurement of Goods & machinery & even for the construction. Construction of Power Plant is a good example of EPC model. 3 different agencies are not appointed by Government for Engineering, Procurement & Construction work such that coordination is easy and is responsibility of one 1 Bidder.
Please Visit http://www.TenderTiger.com to view 1 Million Tenders.
Indian Tenders , Indian projects, Indian Supplier Contractor Database, eProcurement

5 comments:

  1. When L1 revokes the offer, can L2 be accepted?

    ReplyDelete
  2. L2 CAN BE ACCEPTED PROVIDED L2 MATCHES THE L1 PRICE.

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