Glossary

Every word a tender throws at you

55 terms, each in two or three plain sentences, with the chapter that explains it properly. Hover a dotted word anywhere in the course to see its entry.

A

B

BOQ (Bill of Quantities)

The itemised list of everything the work needs, with quantities and units. You price it line by line (item rate) or quote one percentage over the whole thing (percentage rate).

Explained in: The BOQ and pricing your bid

C

D

E

EMD (Earnest Money Deposit)

A refundable deposit paid with your bid to show you are serious. Usually a small percentage of the estimate. Returned to losing bidders after the award; forfeited if you withdraw or refuse to sign.

Explained in: EMD, tender validity and forfeiture

Estimate (amount put to tender)

The department's own costing of the work, prepared from the schedule of rates. Your bid is quoted against it, the EMD is calculated on it, and your class of registration is checked against it.

Explained in: How to read a tender notice

F

Financial bid (Cover 2)

Only the price: your BOQ rates or your percentage. Opened after technical evaluation, in front of the qualified bidders.

Explained in: The two-cover system

G

GST on works contracts

Government works contracts attract 18% GST (raised from 12% on 18 July 2022). Whether your quoted rate includes it is stated in the tender, and it changes your price by a sixth.

Explained in: GST on government works contracts

I

Item-rate tender

A tender where you write your own rate against every BOQ item. Your total is the sum. More work to price, more room to be clever about where your margin sits.

Explained in: The BOQ and pricing your bid

K

K/W-1 to K/W-6 (standard tender documents)

Karnataka's six standard tender documents for works, prescribed by the Finance Department in 2005: K/W-1 below ₹20 lakh, K/W-2 to ₹50 lakh, K/W-3 to ₹1 crore, K/W-4 to ₹10 crore, and K/W-5 and K/W-6 for prequalification above that. The form on the cover tells you the gate.

Explained in: Eligibility: similar work, turnover and tender capacity

KTPP Act

The Karnataka Transparency in Public Procurements Act, 1999, and its Rules of 2000. The law every Karnataka government purchase above a small limit must follow: publish, allow time, open in public, pick the lowest responsive bid.

Explained in: The KTPP Act in plain words

L

L1 (lowest bidder)

The bidder with the lowest evaluated price among those who qualified technically. L2 is the next, and so on. Under the KTPP Act the department may negotiate only with L1.

Explained in: L1, evaluation and negotiation

M

Mobilisation advance

An interest-free advance of 5% of the contract price against a bank guarantee, to be drawn before 20% of the contract period and repaid by 7.5% deductions from interim payments once payments reach 15%. In K/W-4 works, and since 2024 in reserved-category K/W-3 works.

Explained in: Cash flow: surviving between bills

N

NIT (Notice Inviting Tender)

The notice that announces a tender: what the work is, the estimate, the EMD, who may bid, and the dates. On KPPP each NIT has a number that follows the tender for life.

Explained in: How to read a tender notice

P

Percentage-rate tender

A tender where the department's rates are fixed and you quote one figure: so many percent above, below, or at par with the estimate. Most small PWD works are like this.

Explained in: The BOQ and pricing your bid

Price adjustment (escalation)

The clause in K/W-4 that changes the contract price with the cost of labour, materials, fuel and lubricants on works with a completion period over 12 months. Shorter works, and every K/W-1 to K/W-3 work, are fixed-rate.

Explained in: The BOQ and pricing your bid

R

Retender / CALL-2

When a tender gets no valid bids, or too few, it is cancelled and issued again. KPPP marks the second attempt CALL-2, the third CALL-3. A second call is often a softer competition.

Explained in: Finding the tenders that fit you

S

Schedule of Rates (SR)

The department's published rate book for every item of work, revised each year. Estimates are built from it, so it is also the benchmark your quote is measured against.

Explained in: The BOQ and pricing your bid

Section 4(g) exemption

The clause of the KTPP Act that lets the government exempt a specific purchase from tendering by notification. Controversial, and the reason some large works never appear on the portal.

Explained in: The KTPP Act in plain words

T

Technical bid (Cover 1)

Everything that proves you are allowed to do the work: registration, certificates, turnover, EMD, declarations. No prices in here.

Explained in: The two-cover system

Tender capacity (bid capacity)

A formula in every K/W document that caps how much work you can take on at once: (A × N × F) − B, where A is your best year's works, N the years to finish, B your current commitments, and F a factor of 1.5, or 2.5 for works up to ₹1 crore, or 5 in reserved tenders.

Explained in: Eligibility: similar work, turnover and tender capacity

Tender premium / discount

How far your quote sits from the estimate. Quoting 4% below is a 4% discount; 3% above is a 3% premium. The winning figure in a department and district is the number every bidder wants to know.

Explained in: The BOQ and pricing your bid

Tender Scrutiny Committee

A committee that reviews larger tenders before award: above ₹5 crore in PWD and irrigation departments, above ₹1 crore elsewhere. Adds weeks between closing and award.

Explained in: The KTPP Act in plain words

Two-cover system

Your bid is submitted in two sealed parts: a technical cover (eligibility, documents, EMD) and a financial cover (the price). The price is opened only for bidders who pass the technical check.

Explained in: The two-cover system

U

W

Put it to work

Every live Karnataka tender, with the history the portal never shows.

Who won the last ones like it, at what discount, and the documents it asks for. Browse without an account; sign up when you want alerts.

Independent site, not a government one. Tender data is published by the Karnataka Public Procurement Portal. Source: kppp.karnataka.gov.in