TENDERING

Tendering & Developer Selection – Phase 2 of Redevelopment

The Tendering & Developer Selection Phase is a crucial turning point in a Redevelopment Project. It transforms the vision of redevelopment into a competitive, transparent, and structured process that identifies the most suitable Developer to carry out the project. This phase begins after the Society formally approves the Feasibility Report and decides to initiate the tendering process. It concludes once the Society’s General Body officially selects the Developer through a resolution in a Special General Body Meeting (SGBM).

The total duration for this phase is generally around 8 months, and it consists of the following two comprehensive stages:

Stage 1: Tendering – Preparation of Tender Documents & Invitation to Bidders

• Active Agencies: Managing Committee (MC), Project Management Consultant (PMC), Interested Bidders

• Estimated Duration: 3 months

• SGBM Involved: SGBM 1

• Key Milestones:

  • Approval of Detailed Tender Documents by the General Body

  • Floating of Tender Notices via public advertisement or selective circulation

  • Pre-bid Meetings and clarification rounds

  • Receipt and Opening of Bids in a transparent manner

• Project Records to Maintain:

  • Final copy of Tender Documents with annexures

  • Addendums or Amendments issued during the tendering period

  • Pre-bid queries and clarifications

  • Bid submission register and acknowledgements

Additional Notes:

• The Tender Document should include technical requirements, legal terms, eligibility criteria, commercial terms, construction obligations, and formats for submission.

• Transparency is critical; hence, all communications and changes must be documented and accessible to the General Body if needed.

Stage 2: Bid Evaluation & Final Selection of Developer

• Active Agencies: Managing Committee (MC), PMC, Prospective Bidders

• Estimated Duration: 5 months

• SGBMs Involved: SGBM 2 (Evaluation) and SGBM 3 (Final Selection)

• Key Milestones:

  • Preparation of Comparative Statement summarizing technical and financial offers

  • Shortlisting of Bidders based on eligibility, capacity, and proposal strength

  • Presentations by Bidders before the Society for better clarity and transparency

  • Final Selection of the Developer through voting or resolution in the General Body Meeting

• Project Records to Maintain:

  • Comparative Bid Evaluation Report

  • Financial and Legal Due Diligence Reports (prepared by professionals)

  • Final Commercial Proposals submitted by shortlisted bidders

  • Tender Process Summary Report by PMC

  • NOC from the Deputy Registrar of Co-operative Housing Societies, where required

  • Record of member voting and meeting minutes

Additional Notes:

• Evaluation should consider not just financial offers, but also:

  • Developer’s track record, project execution ability, financial soundness, litigation history, and approach to member benefits.

• The Developer’s proposal should be aligned with the approved Feasibility Report.

• It is advisable to appoint a Legal Advisor and Financial Auditor to vet proposals and help the MC make an informed recommendation.

Outcome of This Phase

Upon final selection of the Developer by the Society’s General Body, the project is ready to transition to the Pre-Construction Phase. A Letter of Intent (LOI) or Memorandum of Understanding (MoU) is usually issued to the selected developer at this stage. The society now has a committed partner responsible for delivering the project as per the agreed terms.

Importance of This Phase

This phase is pivotal because:

• It ensures competitive selection based on merit, not favoritism.

• The transparency of the process builds member confidence.

• A professionally managed tender process reduces the risk of future legal complications or disputes.

• Proper evaluation ensures the Developer is technically competent, financially sound, and contractually reliable.