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Plain-language definitions of every Contract Types term that shows up in government tender work.
A one-year contract for maintaining specific equipment or systems, covering periodic servicing and breakdown repairs, renewed annually.
Read definitionA rate contract valid for one financial year, used for recurring goods and services procurement at pre-agreed rates without repeated tendering.
Read definitionA PPP contract model where a private concessionaire builds and operates an infrastructure asset and recovers costs through tolls or user fees before transferring the asset to the government.
Read definitionBOT-Annuity is a highway PPP model where the private concessionaire builds the road and the government pays a fixed annual sum (annuity) over the concession period instead of the concessionaire collecting toll.
Read definitionBOT-Toll is a highway PPP contract where the private concessionaire self-finances construction and recovers investment by collecting toll from road users throughout the concession period.
Read definitionAn annual all-inclusive maintenance contract covering both labour and spare parts within a fixed yearly fee, commonly used for IT, medical, and industrial equipment.
Read definitionA maintenance contract covering both labour and spare parts within a single fixed fee, providing full-coverage maintenance without separate parts billing.
Read definitionA Composite Contract is a government procurement contract covering multiple types of work, civil, electrical, and mechanical, bundled into a single tender and awarded to one contractor for unified accountability.
Read definitionA comprehensive PPP model where the private party takes responsibility for all five stages: designing, building, financing, operating, and ultimately transferring an infrastructure asset.
Read definitionA contract type where the contractor takes full responsibility for design, material procurement, and construction, delivering a completed facility to the government.
Read definitionA Framework Agreement is a government procurement arrangement that pre-qualifies multiple suppliers at agreed prices for a category, enabling rapid call-off orders without a full tender for each requirement.
Read definitionA highway PPP model where the government pays 40% of project cost during construction and the remaining 60% as annuity over 15 years after completion.
Read definitionAn Item Rate Contract is the most common Indian government works contract where the contractor quotes a unit rate for each BOQ item and is paid based on actual measured quantities at those rates.
Read definitionA Labour Contract is a government procurement arrangement where a contractor provides specified numbers of workers for defined tasks at agreed daily or monthly rates, with the government supplying materials and supervision.
Read definitionA Lump Sum Contract is a government works contract where the contractor agrees to complete a defined scope for a single fixed total price, bearing all quantity and scope risks within the agreed scope.
Read definitionA contract for operating and maintaining a completed infrastructure asset or facility, usually on a performance-linked fee basis for a defined tenure.
Read definitionAn O&M Contract is a government service contract engaging a private operator to manage the day-to-day operations and maintenance of an existing infrastructure asset for a defined period.
Read definitionA Percentage Rate Contract is a government works contract where bidders quote a percentage above or below the official Schedule of Rates, with payment calculated by applying this percentage to the SoR-based measurements.
Read definitionA Piece Work Contract is a government procurement arrangement where payment is made per unit of completed work output rather than per hour, day, or overall project, incentivising productivity.
Read definitionA long-term arrangement where private firms finance, build, or operate public infrastructure, sharing risks and rewards with the government.
Read definitionA standing arrangement between a government buyer and a supplier at pre-agreed rates, valid for a fixed period, against which individual orders are placed as needed.
Read definitionA Running Contract is a government procurement arrangement where supplies or services are drawn continuously against a standing order over a defined period, with the total quantity built up through repeated call-offs.
Read definitionA Supply Order is the formal government purchase instruction issued to a supplier after tender award, specifying the exact goods to be delivered, quantities, delivery schedule, and payment terms.
Read definitionA Time and Material Contract is a government service contract where the buyer pays for actual hours of work delivered plus actual material costs, typically used for consultancy and IT services with uncertain scope.
Read definitionA Turnkey Contract is a government procurement arrangement where a single contractor designs, supplies, installs, tests, and commissions a fully operational facility, handing over the 'key' to a ready-to-use asset.
Read definitionSee how Bid India turns these government tender terms into pipeline. Explore the platform or book a 15-minute demo.
