Page 92 - Civil Engineering Project Management, Fourth Edition

Tendering
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• an intent that the contract be legally binding (as evidenced in the contract
documents).
During any negotiations the original tender may have been amended by
interchange of letters. These letters must make clear what is the final amended
tender offered and accepted. If the correspondence is not complete and some
condition or qualification remains unsettled, then a contract should not be
formed. So a check must be applied to ensure that everything has been settled.
Once this has been done and full agreement has been reached, then actual
acceptance of a tender can take place.
In the case where an employer is a person or private company the
employer can accept a tender by writing little more than ‘I accept your offer’.
However, some corporations, and most statutory or other authorities, may be
required by their constitution or standing rules to enter contracts above a cer-
tain value only by a deed or formal agreement which has to be signed by an
authorized person acting on behalf of the authority. Some authorities require
the agreement to be under seal, that is, stamped with the corporate seal of the
authority. Under any method, the acceptance must make clear what docu-
ments form the basis of contract.
Where a local authority can only enter a contract by means of a formal
Agreement, a typical letter from the clerk of the authority to the contractor
might be written as follows:

Dear Sirs,

Contract No. 64 for XYZ Scheme

I am pleased to inform you that my Council has resolved to accept your tender dated
4 January 1994 for the above contract. The contract will comprise the following
documents:
1. Volumes 1 and 2 of the printed documents containing the Tender, Conditions of
Contract, Specification, Schedules and Bills of Quantities all as completed by you.
2. Contract Drawings Nos. 1–45.
3. Tender Amendments Nos. 1–3 inclusive.
4. The following communications:
(a) Your covering letter of 4 January 1994 with enclosures 1–5 inclusive;
(b) Our letter to you of 10 January 1994;
(c) Your letter of 12 January 1994;
(d) This letter of acceptance.

The amended tender total is £123456.00 as set out on the attached sheet.

A formal Agreement is being prepared and I shall be glad if you will advise me
when you can call in to sign it.