As per the construction annual report for 2023, the construction industry in India achieved remarkable growth, with the market size reaching an impressive $825.6 billion in 2023. This booming sector is expected to maintain an annual average compound rate of more than 5% during 2025-2028. This tremendous growth gives the best opportunities for the adoption of E-Tendering in India. 

E-tendering is an online process for submitting bids for goods, services, or projects. If we adopt E-Tendering in the construction sector of India, then this will give a transparency, fair tendering, and competitiveness within the industry. E-Tender in construction or construction tenders provides significant benefits to us, like efficiency and cost savings, increased competition, transparency and fairness and improved accessibility. However, like any new technology, e-tendering also introduces challenges that must be addressed to ensure its successful implementation and widespread adoption. Processed 70.30 lakh electronic tenders worth over Rs. 97.30 lakh Cr. have been processed successfully till March 31st, 2021, as per the annual report of CPPP (Central Public Procurement Portal). 

In this article, we will discuss the various benefits and challenges associated with e-tendering in the Indian construction industry. We all know that the Indian construction sector increasing day by day, and construction is not limited to sectors in India, it also includes road construction, building (residential, commercial, industrial), bridges and tunnels, power plants, marine constructions etc. 

India Construction sector cover: 

Major tenders in India’s construction include expansive infrastructure projects like high-speed rail projects, smart city projects, port development projects, road and bridge projects, housing, industrial parks and national DAM-making projects, etc. Because, as per 2024 reports, the market size of infrastructure in India is $204.6 billion. And it is expected to grow to $322.27 billion in 2029. So doing bids through e-tendering is the best opportunity for the e-tender market. Additionally, when we are talking about the major advantages of e-tendering like increase in efficiency, increase of ROI, transparency, fairness and it’s so easy to use it. 

Process: A Guidance for Contractors Participating in E-Tendering 

• Project Declaration and Necessary Documents for That Project– The project owner issues the construction project online on an authorized e-tendering platform. After publishing projects on the platform contractors are able to see project specifications, project requirements and also timelines of project.  

• Contractor registration and Downloading documents: Interested contractors are able to register on the platform, and after that contractors have access to download tender documents and other confidential information related to that project.  

• Bid Clarification: This process ensures a fair and transparent bidding process because this gives contractors authority to ask relevant questions of project owners related to the project. This process improved bid quality and reduced the risk of disputes. Overall, in this process registered contractors can ask questions from project owners. 

Bid Preparation and Submission:

In this process, contractors use the downloaded documents to prepare their bids electronically. They complete bid forms and attach supporting documents like licenses, certifications, insurance certificates, or financial statements. Additionally, meeting deadlines, bid bonds, and negotiations. 
 

• Bid Evaluation: The project owner evaluates the bids based on some criteria. In this case, some e-tendering platforms also assist the owner in evaluating processes and comparing bids electronically. Traditionally, the bid evaluation process involved bias, but nowadays through e-tendering we do a fair and transparent bid evaluation process and select only those contractors who really deserve and are eligible for the project. 
   

• Contract Award and Notification: In this process, the project owner declares the winner and notifies all the participants about the results. 

Avaibality of Services Through E-Tendering. 

• Availability of complete tender details in the public domain under the tender status link of the portal. 
   

• Large search criteria with various parameters. 
   

• Tender information of all central or state procuring entities on a single platform like e-tender UP, e-tender Haryana, e-tender Kerala, e-tender Punjab or e-tender NHAI, e-tender of PWD, etc. 
   

• Dashboard with prominent KPI (key performance index) indicating trends of time, cost, competition, and reach. 
   

• Easy process of submission of bids through an online portal. 
   

• A wide range of search criteria 
   

• Drill down on MIS (management information systems) on login. 
   

• Event alerts are sent through emails, SMS, and mobile APP 
   

• Annual audits as per electronic procurement system (EPS) guidelines. 
   

• Minimum Deposition Price (MDP) on procurement at Non interested financial model (NIFM). 
   

• Daily web learning sessions are also included by some portals. 
   

• CPPP caters to call center service 24*7 helpdesk support and dedicated email support 

 
Benefits of a Standardized and Uniform E-Tendering in India for Construction: As per Buyers Perspectives

Process Improvements:

• Uniform and Standardized Tendering Processes Across the Department: This process defines how a standardized process easily handles the process of announcement, evaluation, and reward. 
   

• Reduction in Procurement Cycle: A streamlined process with electronic submissions and evaluations leads to faster processes, minimizes delays, and speeds up project execution. 

• Reduction of Tender Publishing Costs: Through e-tendering we save on the cost of publication. 
   

• Wide Publicity: E-platforms can facilitate a wider distribution of tender announcements, reaching a larger audience of potential bidders.  

 
Security and Transparency:  

• Safe, Secured Platform: E-Tendering offers buyers maximum security through which buyers can protect sensitive data and improve the efficiency of the Bidding process. 
   

• Procurement Process Efficiency: Automated workflows and e-documentation processes reduce manual work and errors. 
   

• Transparency: Transparency leads to a more competitive environment. 

 
Enhanced Accountability: 

• Improved accountability: A centralized e-tendering platform takes a record of every bidding process or every activity and gives accountabilities for all stakeholders involved. 
   

• Extensive search: Advanced search options allow contractors to easily find relevant tenders based on specific criteria like location, project type, budget, etc. These things improved efficiency and there was no need to ask buyers for small information. 
   

• Centralized Portal for Procurement Information: A single platform for all types of bidding processes and an easily accessible source of information for contractors and other stakeholders. 
  

Benefits of Standardized and Uniform E-Tendering in India for Construction: As per Bidders Perspectives 

Reduced costs and Burden: 

• Zero Cost to Bidders, No Per-Bid charges or Registration Charges: Destroy the entry barriers and allow everyone who wants to participate in the bidding processes to participate, fostering competition. 
   

• Reduce Paperwork: E-Tendering saves time, money, and paper by eliminating printing, photocopying and physical delivery of bid documents. 

 
Conveniences and Accessibility:

• Contractors can submit bids electronically from anywhere at any time, no physical presence is needed, you only need an internet connection, these things increase flexibility, and there is no need to travel for submission of bids physically. 
   

• Online platform gives a chance for free, fair, and fearless participation, it reduces the risk of bias or manipulation often associated with traditional paper-based methods. 
   

• E-Tendering allows contractors to correct any errors or adjust their bids before the deadline and promises a more accurate bidding process like the provision to modify, re-submit, or withdraw bid documents until bid closing time. 

 
Improved Information Sharing and Transparency: 

• Increase visibility: All tender Information Available at one Place Online: E-Tendering provides a centralized platform for all tenders and updates and is easily accessible to all interested bidders. 
   

• Transparent community: E-Tendering fosters transparency by providing clear and consistent information to all participants, increasing trust in the bidding process, and transparent systems inspire confidence among the bidder community. 
  

Challenges of E-tendering in constructions 

• Limited Access to Technology: Not all companies, especially new firms, have all the technology to participate effectively in e-tendering. Small firms have less digital literacy, which leads to an uneven playing field and limited competition. 
   

• Reliable Internet Connectivity: Every region still does not have good internet connectivity, so that is why many contractors are still not able to access E-tender. 
   

• Cybersecurity Threats: E-Tendering platforms have a greater chance of leaking data or cyberattacks. Through e-tendering, hackers easily hack some websites and leak valuable data and manipulate owners. 
   

• Complexity of Learning New Systems: Shifting from traditional bidding process to e-tendering methods is not easy for anyone and still, many contractors have trust issues against e-tendering. 
   

• Technical Glitches and Downtime: Some platforms are still not user-friendly, and contractors face several glitches during bidding and sometimes lead to damaging the bidding process, causing frustration and delays.
  

Construction raw materials tenders through E-Tendering: Better opportunity  

• The specific raw materials that are necessary for construction tenders will vary depending on the type and size of the project. Some major raw materials are included. 
   

• Cement tender: Is the binding agent used in concrete and mortar and is crucial for foundations, walls, slabs, and other structural elements. Example- Shree cement tender, Ambuja Cement tender, Ultratech cement tender, acc cements tender. 
   

• Steel tender: Is used for several purposes like beams, columns, plates, and reinforcement in concrete, and other applications. Example- Tata steel tender, nmdc steel tender, vizag steel tender, US steel tender, Qatar steel tender, South Africa steel tender. 
   

• Timber tender: Timber used for specific purposes like roofing, framing for smaller buildings, or aesthetic finishes. Example- bergs timber tenders, state timber tender, timber harvesting tender. 
   

• Bricks tender: Bricks are necessary for all types of construction, and they are the backbone of construction, so brick tendering also gives better opportunities to apply for brick tenders through E-Tendering.  

• Sand tender: Used for concrete mixes, mortars, and plastering. And gives strong bonds between the layers. Example- JSMDC send tender, Madhya Pradesh sand tender, river sand tender, mstc sand tender, Tamil Naidu sand tender, Andhra Pradesh sand tender. 
   

• Glass: Is essential for windows, doors, and curtain walling systems and gives a nice look to project. And also define that projects are made by modern engineers. 
   

• Electrical Cables and Conduits: All projects need electricity, and for electricity, you need cables and the cable, market increase day by day, cables tender is also the best opportunity for tenders. 
   

• Plumbing Pipes and Fittings: For water supply, drainage, and sanitation systems, you need pipes and fitting systems, so it’s also a good option for applying pipeline tender in this field. 
   

• Roofing Materials: Depending upon your projects, you will need some different raw materials for roofing. 
   

• Finishing Materials: Today everyone wants their interior so good and is willing to pay for those interiors, and also invest in their exterior looks, so every construction project needs, paints, varnishes, tiles, flooring materials, and other elements for interior and exterior finishes.