This Article is Published in “The Housing Times, March 25, 2018” issue.
Once the Feasibility Study is approved for the Redevelopment of Society by its Special General Meeting, the next step is Project Tendering. The success of the Society Redevelopment Process largely depends on the selection of the right Builder/ Developer. The selection of the right Builder/ Developer is facilitated by the appropriate implementation Project Tendering activity.
The Project Tendering Process is executed by conducting the following activities.
Preparation of Tender Document
The first activity during the Project Tendering stage is preparation of the Tender Document for the Redevelopment Project. The Tender Document is a very comprehensive document giving the detailed requirements of the Society Redevelopment Project. The Tender Document typically contains the following information.
- Synopsis – The detailed History of the Society leading up to Redevelopment
- Land Revenue Records like Property Card & City Survey Plan etc.
- Municipal Records like IOD, CC, Approved Building Plan & OC etc.
- Society Records like List of Members & their Flat Areas etc.
- DP Remarks obtained from Municipal Corporation & Other Remarks obtained from Concerned Government Departments
- Technical Specifications, List of Recommended Amenities & List of Modern Building Facilities
- Commercial Terms & Conditions
The Builders/ Developers bidding the Tender are expected to furnish the following information
- Additional Carpet Area to be provided to Society Members
- Corpus Fund to be provided to Society Members
- Deposit/ Rent to be provided to Society Members for Temporary Alternate Accommodation
- Project Completion & RePossession Date
- Bank Guarantee to be provided
- Financial Details of the Builders/ Developers/ Company
- Details of Projects executed by the Builders/ Developers/ Company
The Tender Document is to be presented during the Special General Meeting of the Society. The PMC & Managing Committee Members are expected to explain the Tender Document to the Members present. The Society Members are expected to approve the Tender Document after due deliberation. The Cost of Tender Document & the amount of the Earnest Money Deposit is also decided by the Members present during the meeting. After the Approval of the Tender Document during the Society Special General Meeting, the next step is publishing the Tender Notice to invite the Bids.
Notice inviting Tender Bids
There are multiple methods to invite the Redevelopment Project Tender Bids from prospective Builders/ Developers.
- Publishing the Tender Notice in English language National Newspapers & in Marathi/ Gujarati/ Hindi language Regional Newspapers. This is the most widely used method to attract the prospective Builders/ Developers for Bidding.
- Publishing the Tender Notice on Society Noticeboard. The Members of the Society are requested use their personal contacts to attract the prospective Builders/ Developers.
- Reaching out to Builders/ Developers operating in the vicinity of the Society. The Builders/ Developers having already established logistics for a Construction Project can use their facilities optimally for nearby Projects. These Builders/ Developers show keen interest in the Redevelopment Projects in the vicinity.
The combination of these methods is used to attract leading Builders/ Developers to Bid for the Society Redevelopment Project Tender.
Sale of Tender
Sale of Tender is carried out from the Office of the PMC/ Society during the stipulated days as mentioned in the Tender Notice issued in different media. The Sale of Tender is documented in form of List of prospective Bidders.
Pre- Bid Meeting
The Pre- Bid Meeting is called prior to the date of submission of the Bids. The prospective Builders/ Developers are requested to depute their representatives to the Meeting to seek clarifications/ confirmations, if any regarding the Tender Document/ Process. The PMC & the Managing Committee Members address the Meeting & the clarifications/ confirmations sought.
Tender Bid Closing
The Tender Bid Closing Date & Time is stipulated in the Tender Notice issued in different media & all the Tender Bids received before this date are accepted. The receipt of these accepted Tender Bids is documented for Tender Opening.
Tender Opening
The Tender Opening Date & Time is also stipulated in the Tender Notice issued in different media. The Managing Committee Members open the Tender Bids on this Date. The PMC & representatives of the prospective Builders/ Developers are also present during the Tender Opening process.
Tender Evaluation
After the Tender Opening the PMC carries out the evaluation of the Tender Bids Opened & prepares the Comparative Evaluation Chart. This Comparative Evaluation Chart is submitted to the Managing Committee. The top Bids are shortlisted for further detailed evaluation of the Builders/ Developers.
For selection of the right Builder/ Developer, it is imperative to evaluate him on the parameters of his Capabilities, Suitability & Offer made.
- The Financial status of the shortlisted Builders/ Developers is critically evaluated to assess their Capability for the Society Redevelopment Project.
- The Managing Committee Members (along with interested Members from the General Body) & the PMC visit the offices & projects of the shortlisted Builders/ Developers to assess their Suitability for the Society Redevelopment Project.
- The shortlisted Builders/ Developers are given an opportunity to improve the final Offer made by them.
The final Comparative Evaluation Chart of the shortlisted Builders/ Developers is critically performed on their Capabilities, Suitability & the final Offer made.
Selecting the Builder/ Developer for Redevelopment Project
Selection of the right Builder/ Developer for Redevelopment Project is carried out in the Special General Meeting of the Society. The representative of the Deputy Registrar of Societies is invited to attend & witness the Special General Meeting. The video recording of the proceedings of this Special General Meeting is also carried out for records.
The Managing Committee presents the final evaluation of the Shortlisted Builders/ Developers to the Members. The Capabilities, Suitability & Offer made by each shortlisted Builder/ Developer is discussed & evaluated by the Members present. After due deliberations the final selection of the Builder/ Developer is carried out by the Members present in the Meeting. The proceedings of the Special General meeting are recorded.
After the Special General Meeting, the selected Builder/ Developer is issued the Letter of Intent for carrying out the Redevelopment Project of the Society. The Project Tendering Process if carried out meticulously & transparently creates the hallmark for the completely transparent Redevelopment Process to follow.
Sanjay Geete