Sample Letter of Acceptance of Bid or Tender Offer

A tender is a document containing an invitation from an organization asking for bids from different parties for a project.

A bid is an offer or a proposal from a party wherein he agrees to work for an organization as per the specifications of a tender document for a certain amount of money.

After receiving bids from different parties, the organization who has floated a tender evaluates all the bids and chooses one of the bidders to work under the tender under a signed agreement and performance security, if any.

TEMPLATE

[Bid Acceptance Letter]

Ref: __________

Date: _________

To

[Name of the Contractor]

[Office Address]

[Phone Number]

RE: Acceptance of Bid placed for the Tender vide ref no. ______ dated ________.

Sir/Madam,

With reference to the tender floated by [Name of the Organization] vide tender ID no. ______ dated _______ for the construction and remedying defects as per the terms and conditions contained in the contract and other documents collectively referred to as the “Request for Proposal” for a contract price of (Amount if Figures) (Amount in Words), we have received bids and offers from different Bidders in Financial Bid Forms.

After careful evaluation, we are pleased to inform you that your bid/offer as contained in your Financial Bid Form dated ________ is hereby accepted.

The Commencement Date of the Contract shall be [Date] as per Clause ___ of the Contract.

The amount of Performance Security is [Amount in Words] as per Clause ___ of the Contract. The Performance Security shall be submitted on or before [Date] as per Clause ___ of the Contract.

We are enclosing herewith 2(two) sets of the Contract along with all other documents for your signature.

    [Signature]

[Name of the Authorized Signatory]

[Designation]

[Name of the Organization]

Enclosure: As above.