Winning a tender is just the beginning. The real work starts once you get the work order. Many businesses struggle with delays, compliance, and payment issues—not because of poor performance, but because of not having the understanding of how a tender contract is really executed in India.
But whether you are supplying goods, delivering a service, or handling civil works, executing a tender contract in India always has several steps, from mobilizing resources to getting your final payment cleared.
This guide explains the entire execution process, so you can deliver efficiently, avoid penalties, and get paid on time.
Step 1: Receive and Review the Work Order
Once your bid is accepted, you will receive a work order or Letter of Acceptance (LoA) from the department or agency. It is a formal document instructing you to begin the work. This document usually contains:
- Scope of work
- Contract value
- Delivery timelines
- Milestones (if any)
- Site/project location
- Payment terms
- Penalties for delays
It serves as a formal green signal to begin work. Make sure to acknowledge and accept it in writing, often along with a performance guarantee or security deposit.
Read the work order very carefully to make sure that it actually matches the terms of the original tender. If there are any discrepancies, raise them before starting the work. This is needed to avoid contract disputes later.
Step 2: Sign the Tender Contract Agreement
After the work order is issued, the next step is to sign the tender contract. This is a legal agreement between you (the contractor) and the department (the client), which binds both parties to the terms and conditions which were mentioned in the original tender.
The tender contract usually has the following:
- Scope of services or deliverables
- Technical specifications
- Payment schedule and deductions (like taxes or penalties)
- Penalty clauses for delays
- Terms for variation or change orders
- Legal jurisdiction
- Security deposit or performance guarantee
Read the contract very carefully. Once you have signed, you are legally bound to follow every clause, including penalties and compliance requirements.
Also, make sure your legal team also checks the contract before you sign. In many government contracts, you will also have to submit a Performance Security Deposit, which is normally 3–5% of the project value.
Step 3: Mobilization and Site Handover
Once the contract is signed, the department will hand over the site or start procurement coordination. You will now begin:
- Arranging manpower, materials, and machinery
- Hiring subcontractors if required
- Setting up the project site (for works contracts)
This phase is all about preparation. You may have to submit a mobilization plan, safety protocols, and manpower list for approval. Document every step, like site photos, inventory logs, and manpower records, so that you have proof in case of a dispute.
Step 4: Execute the Work According to Tender Terms
Now comes the core execution. Follow the timeline, technical specifications, and milestones as said in the tender document and contract agreement.
Keep in touch with the project officer or engineer-in-charge. Most government projects require:
- Regular progress updates
- Site inspections
- Stage-wise approvals
Delays, poor-quality work, or unauthorized changes can lead to penalties or even cancellation of your tender contract.
Step 5: Submit Progress Reports and Invoices
As you keep completing work milestones, submit progress reports and invoices. Most tender contracts have a stage-wise payment structure that has:
- Mobilization advance (if applicable)
- Running bills for partial completion
- Final bill after project completion
You will have to submit documents as well, such as:
- Work completion certificate
- Measurement books
- Test reports (if applicable)
- Photographic evidence
- Tax invoices
- Bank details
The project-in-charge will verify all the work and certify the invoice. In many public sector contracts, this certification step is essential before payments are released.
Step 6: Final Inspection and Handover
Once the entire work is completed, you must ask for a final inspection. The inspecting authority will verify:
- Quality and specifications
- Functionality (for equipment/services)
- Safety compliance
If everything is in order, you will get a completion certificate.
Step 7: Claim Final Payment
After the entire work is completed and all formalities are cleared, submit your final invoice along with:
- Final completion certificate
- No-dues certificate
- Performance certificate (if applicable)
- GST-compliant bill
The finance or accounts department will process your final payment, deducting any applicable retention money or taxes. Some departments also give back the Performance Security Deposit after a defined defect liability period (e.g., 6–12 months).
Common Challenges in Executing Tender Contracts
- Delayed approvals: Without proper documentation, project officers may delay certificate issuance.
- Scope changes: If not handled with written variation orders, these can lead to disputes.
- Payment delays: Despite contract terms, final payments can take a lot of weeks or months unless you actively follow up.
Being proactive, well-documented, and compliant with every tender contract clause helps you avoid all such issues.
How BidAssist Helps After You Win the Tender
At BidAssist, we don’t just help you find the right tender—we also offer resources to guide you through the entire execution process. From understanding contract formats to staying updated on amendments and work orders, our platform equips you for success from start to finish.
With BidAssist, you can get alerts for upcoming deadlines. You can also track tender history and documentation. Whether you’re new to public procurement or managing multiple tender contracts, BidAssist helps you stay informed and deliver better.
Summing Up
Executing a tender contract in India is not just about completing the work. It is also about doing it by the book. From getting the work order to claiming your final payment, all the steps need documentation, compliance, and follow-up. When done right, it ensures smooth delivery, timely payment, and a strong track record for future bids.
Whether you’re a first-time bidder or an experienced contractor, knowing how to execute a tender successfully can make the difference between profit and penalty.
Want to explore new tenders or track updates? Start with BidAssist today.