Electronic Tenders and Digital Signatures and Certificates
Summary: Commercial world is moving fast towards e-commerce system replacing the traditional business processes. Most of the transactions today including floating of tenders, responding for them and carrying out all billing and payments are now done electronically online. Not only this has replaced the traditional slow paper based commerce but has also brought up transparency, time and cost economy in the business deals. In addition; the process is hassle free as well. Floating and responding to such electronic tenders require having digital signature and digital certificate under the relevant laws of the country concerned and issued by the authorities empowered under such laws.
In these days of computer and internet most of the business transactions are now carried on electronically over the internet. It includes inviting bids through tenders, responding to such electronic tenders, winning the same online, and completing the billing and payment processes online as well. Most interesting part is that such transactions can be carried out without the bidder and requestor without seeing each other physically.
E-Tendering System
Most of the governments and many corporate houses have now switched over to electronic tenders for procurement of articles, awarding of contracts and projects and for many such works. Some of the major advantages of e-tendering system are –
- It has successfully replaced the traditional paper based tenders.
- E-tender is time and cost economic.
- It helps bringing in transparency in the entire tendering process since there are no man-to-man contacts.
- The process helps the requesting company as well as the bidder to choose their preferred service provider effectively.
- Calling and responding to tenders irrespective of location is now possible as e-tenders overlap all geographical barriers.
E-Tendering Opportunities
Since the entire process of electronic tenders is automated, it offers great opportunities for the prospective bidders to bid for the project without having to run from pillar to post. In fact; it shortens the procurement cycle quite effectively and improves the work culture substantially. For the requesting agency it become easier to find out the best deals since the evaluation process is system aided.
Digital Signature and Digital Certificates
However one of the major requirements for responding to and winning the electronic tenders is digital signature and certificate obtained by the bidder. Either class 3A or 3B digital signatures are used for responding to e-tenders. Similarly, the digital certificate works as the internet passport for the bidder. Prospective bidders may not be worried unnecessarily about these since they can be obtained by registering with appropriate authorities within 8-10 hours time.
Legal Aspects of E-Tenders
Bidders need to be conversant with the legal requirements for bidding on the international, national, and local tenders. For instance; a bidder in India responding to the e-tenders has to abide by the provisions laid down in the IT Act of 2000. Digital certificate issued by Controller of Certifying Agency or CCA will only be considered as valid and recognized by the court of law.
Similar legislation exists in most of the countries and learning about them before responding to tenders would be a step in the right direction.
Processing your request, Please wait....
