In Focus

Find A Developer By Calling For Tenders

By Gajanan Khergamker

In the case of a redevelopment project, the best way for a society to identify a developer is to invite sealed tenders through a public notice.

There should be basic eligibility criteria for the tendering process that should aim to bring in transparency in selecting a developer.

The public notice should be advertised in three local newspapers. The procedure should involve identification of a developer and evaluation of offers and recommendations. There should be specialized guidance when it comes to negotiation. A suitable agreement needs to be formed for the process too.

There are a string of benefits in tendering when used as a procedure to identify a developer in the case of a redevelopment. For one, making the publication of a public notice in three prominent newspapers will ensure that the members obtain good offers from reputed developers instead of the fly-by-night sort.

Also, keeping the transparency in mind, since the offers are invited in a sealed tender form, there’s severe competition among bidders thereby facilitating the best for the members. To further the transparency of the process, all specifications and terms and conditions are the same for all the bidders making it easier to compare, evaluate and zero in on the best offer.

In order to ensure unwanted or non-interested parties do not bid nor waste any time where the project is concerned, earnest money deposit in the form of a pay order payable to the society could be taken from every bidder. This should ensure that no time is wasted in the process.

The mode of measurement of carpet area and the authority certifying the same should be clearly defined to facilitate the process. In order to safeguard the society in case of any issues faced by the developer, the entire proposal is to be done in the name of the society itself. Also, importantly too, a clause clearly detailing that the Right to change and or remove developer stays with the society should be included as a safeguard.

The element of ambiguity or dispute is tackled with all details pertaining to commercial terms such as Bank Guarantee, temporary accommodation, cost of additional area etc., being clearly defined.

Under every separate head of technical specification in the tender document, a detailed technical methodology of work is laid out clearly. Also, the basic rates are mentioned clearly in order to enable members change any specification for their individual uses. The society will need to retain the right to check amendment of plans during the progress of work.

Where brand names are concerned, all material to be used has to be clearly spelt out to avoid any confusion. And once all the items are defined clearly, the chances of getting a good offer are higher.

Also, to cover any loss caused by delays, the consequences of any delay have to be clearly defined in the tender document which is a legally binding instrument.

No comments

You may leave a relevant comment or post your query here. Queries maybe addressed here, on the respective social media platform, in a Legal Column published on the website or at a Legal Talk held at The Chambers of Solicitor Gajanan Khergamker in Colaba, Mumbai. To attend a Legal Talk, avail a legal consultation or initiate legal action call 8080441593.