Power of Attorney

A Power of Attorney (PoA) in the context of government procurement is a legal document through which a company (or the lead partner of a JV) formally authorises a named individual to sign bid documents, submit bids, negotiate, and execute contracts on the company's behalf. It is required when the person signing the bid documents is not the company's statutory signatory (typically a Director or proprietor) but a designated officer such as a General Manager, Regional Head, or Bid Manager acting under delegated authority.

What is a Power of Attorney in government procurement?

Government tenders require all bid documents, declarations, and the eventual contract to be signed by a person with legal authority to bind the company. The person with that authority is typically a Director (for a private limited company), a partner (for a partnership firm), or the proprietor (for a sole proprietorship).

When a company wants a non-Director employee to handle bid submission and sign on its behalf, it must execute a Power of Attorney giving that person specific authority. The PoA names the authorised person, describes the scope of authority (signing bid documents, executing contracts, making declarations), and is signed by the company's Board-authorised Director. The PoA is typically registered with a notary or, for high-value contracts, a sub-registrar under the Registration Act.

In Joint Venture bids, the lead partner typically executes a PoA authorising a named person from the lead partner's management to act on behalf of the JV as a whole for bid submission and contract execution. The JV agreement itself also confirms this authority.

Tenders specify the form of PoA acceptable: some accept a simple notarised PoA on stamp paper, others require a registered PoA. Some ask for an extract of the Board resolution authorising the PoA in addition to the PoA document itself. Reading the ITB's exact requirement prevents submitting the wrong form of authority document.

DSC registration and PoA must be consistent. The DSC used for bid submission must be in the name of the person who is the authorised signatory. If the PoA authorises Person B to sign, but the DSC is in the name of Person A, there is a mismatch. The person whose DSC is used for bid submission must be the same person whose signature appears on the documents or whose PoA covers electronic signing.

Why it matters for bidders

PoA problems are a significant source of technical disqualification. Common failures include a PoA signed by a Director who is not listed as such in the company's current board resolution (because the Director has changed since the PoA was prepared), a PoA that is too broad or too narrow in its stated scope (e.g. authorising "all business activities" when the tender requires authority specifically for "government tender submission and contract execution"), a PoA that has expired or was valid only for a specific tender rather than as a standing authority, and a mismatch between the DSC holder's name and the PoA-authorised person's name.

Firms should maintain a current, standing PoA with clear scope language, review it each year and whenever Directors change, and ensure it is in the correct format for the types of tenders they commonly participate in.

Example

A construction company's Managing Director is based overseas and cannot physically sign bid documents for a NHAI tender. The company executes a registered PoA authorising the General Manager (Projects) to sign all documents, declarations, and contracts related to NHAI tenders on behalf of the company. The PoA is registered at the sub-registrar's office and attaches a copy of the Board resolution passed at a duly convened Board meeting authorising the MD to execute the PoA. The GM (Projects) uses their personal Class III DSC (registered on the CPPP portal in the company's name with the GM as the authorised user) to submit the bid, with the notarised copy of the PoA included in Cover 1.