Gujarat Municipalities Act, 1963
(1) Except as is otherwise provided in sub-section (3), a chief officer shall, before entering into any contract for the execution of any work or the supply of any materials or goods which will involve an expenditure exceeding five Execution of contracts on behalf of municipality. Tenders to be invited for contracts involving expenditure exceeding Rs. 5000. thousand rupees, give notice by advertisement in a newspaper, inviting tenders for such contract: Provided that where the work or supply involves an expenditure exceeding twenty thousand rupees, the advertisement shall be published in such one or more daily newspapers as may be approved by the municipality : Provided further that atleast clear seven days shall be allowed to elapse between the date of the publication of the advertisement in the newspaper inviting tenders and the last date fixed for the receipt of tenders by the chief officer. (2) The chief officer shall not be bound to accept any tender which may be made in pursuance of such notice, but may, with the approval of the executive committee, accept any of the tenders so made which appears to him, upon a view of all the circumstances, to be the most advantageous or may for reasons recorded reject all the tenders submitted to him. (3) A municipality may authorise the chief officer, for reasons which shall be recorded in its proceedings, to enter into a contract without inviting tenders as herein provided or without accepting any tenders which he may receive after having invited them.