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    Letter Writing -Techno-Commercial proposal

    I struggled to write a letter many times. Please review and suggest me to improve my writing skills.

    Siemens Metals Technologies GMBH
    Turmstrasse 44
    4031 Linz,Austria

    Kind Attn:Mr. Thomas Harrer

    Project: Tata Steel plant

    Sub: Techno-commercial and pricing schedule

    Dear Sir,

    This has reference to the Siemens inquiry for the subject project,We thank you for inviting us to participate in the prestigious Tata Steel plant project. We are pleased to submit our competitive bid with following documents.Our proposal includes of following sections.

    • Section l : Technical / Project Terms of Reference
    • Section II : Commercial Terms & Conditions
    • Section III : Pricing Schedule

    We hope you will find our proposal in line with your requirements and give us a chance to deliver our professional services. Kindly feel free to contact us for any clarification related to this submission.

    Looking forward to serve your esteemed organization.


    Raheja Construction


    M.D.Subash Maninder Singh
    MD/CEO Director

    1. BOQ-Annexure I
    2. Deployment shedule-Annexure II

    Section – I Technical / Project Terms of reference

    Scope of Work

    Contractor is responsible to provide subject services with our workable terms and conditions mentioned as below:


    The following are included in our scope of work.

    Scope of work as described in the provided RFQ PR#63136789.
    Arrangements of all manpower and their boarding & lodging.
    Tools, accessories and consumables for the proposed services.
    Contractor has considered use of overhead cranes for the installation and dismantling of equipment.
    Client supplied materials for Civil Works shall be reconciled considering standard allowances for wastages as below.

    Sl. No. Materials Allowance for Wastage Considered (%)
    1 Reinforcement Steel 3.5% ( 2.5% Scrap + 1% Invisible )
    2 Structural Steel 5 % (4 % Scrap + 1% Invisible)

    Temporary facilities are only for Sub contractors own use.
    Our electricity sources only for our company purposes.

    Client Responsibility

    The following items are considered as the responsibility of the client.
    Geotechnical Investigation of the Site.
    Engineering design and drawings including fabrication drawings shall be in the scope of Siemens.
    Electricity and water supply for construction work.
    All types of direct material (piping, supports, steel structure, instruments etc) will be supplied by client except material for insulation and painting which will be supplied by contractor.
    Land/Space for Temporary Facilities
    A work once inspected and cleared to proceed shall be considered for certification.
    Prompt clearance of perishable items at the plant entrance to ensure the suitability of use of the same.
    Any Built in parts / embedded items shall be provided by Client.
    Any submittal for approval have to be cleared for use or reverted no later than 7 days.
    Testing and Inspection charges over and above the specified frequencies or special tests not mentioned in the contract.
    Provide continuous work fronts.


    It is assumed that normally the excavation shall be conducted by providing slopes. In order to protect sand slide If shoring required which will be considered as an extra item.Since the excavation quantities are in cubic metre if our progress delayed due to soil slide and underground water flow the same item would be converted in to hourly basis.
    It is assumed that excavation material would be soil / sand. Any other material encountered during excavation disrupting the activity shall be brought to the notice of the client and shall have to be considered separately in commercial terms.
    Any item of work which is not specifically mentioned in our scope of supplies will be considered as an extra item.
    Our warrantee period shall be 15 Months from the date of completion.
    The place of arbitration shall be in Saudi Arabia as per Working land laws.

    Delivery of sevices/ shedule

    It was mutually agreed that commencement and completion date of the project 15th Mar 2015 and 31 Jan 2016 respectively.Any dalays due to issuance of LOA,drawings and work front obstacles from client will be added in to the completion date.


    Mobilization of our resources shall be started within 1 month from the date of PO.

    Section – II Commercial Terms & Conditions

    Our commercial proposal is based on the unit rate contract. Invoicing shall be done based on the monthly work progress report. It shall be subject to final measurement at the end of contract and shall be reimbursed accordingly.


    Our bid will remain valid for 2 months from the date of bid submission.

    Duties and Taxes

    Our prices are based on current exchange rates, duties and taxes applicable in Mumbai-India.

    Section – III Pricing Schedule


    Our competitive price for above-mentioned scope of services is attached herewith as commercial proposal.

    Payment Terms
    Advance payment of 15% estimated value shall be paid along with purchase order immediately or no later than 30 days.
    Progress payment shall be paid within 45 days from the date of certification of invoices.
    Payment against bank guarantee shall be paid immediately or no later than 30 days.
    Retention amount of 10% shall be paid within the 30 days from the preliminary acceptance certificate.
    Last edited by Kumar Nadimuthu; 24-Feb-2015 at 17:48.

  1. Tarheel's Avatar
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    Re: Letter Writing -Techno-Commercial proposal

    Quote Originally Posted by Kumar Nadimuthu View Post

    This has reference to the Siemens inquiry for the subject project,We thank you for inviting us to participate in the prestigious Tata Steel plant project.

    This is in regard to the Siemens inquiry for the subject project.

    Wow! This thing is too long and likely to discourage people.

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