Tender Document 1

Standard Tender Documents
Procurement of Works
User Guide
August 2010

User Guide and Summary Description
PREFACE
These Standard Tender Documents and User’s Guide have been prepared by the European Bank
for Reconstruction and Development (EBRD) for the procurement of works through open
tendering in compliance with the EBRD Procurement Policies and Rules for projects that are
financed in whole or in part by the EBRD.
These Standard Tender Documents are derived from the Master Document for Procurement of
Works prepared by the Multilateral Development Banks and International Financing Institutions.
The procedures and practices presented in them reflect “best practices” by these institutions.
Clients or their procurement consultants should complete the documents by entering data specific
to the procurement in question in the relevant sections; in some cases, this necessitates a
selection from different alternatives presented in the documents. These alternatives are illustrative
and not necessarily comprehensive. Other customised provisions may be required in certain
cases.
When completing the documents, the Clients or their procurement consultants should further
consider that as part of its commitment to sustainable development, the EBRD promotes the
application of best practice regarding environmental and social matters as stipulated in the
EBRD’s Environmental and Social Policy and its Performance Requirements. The requirements
regarding environmental and social matters, including labour and working conditions, are further
detailed in the legal documentation for specific projects and shall be reflected in the completed
documents.
The following guidelines should be observed:
(a)
Specific details, such as the “name of the Employer”, “address for tender submission” etc.
should be entered where indicated.
(b)
Boxed guidance notes and provisions in italics font contain instructions and guidance
which the drafter should follow. They are not part of the text, and should not be included
in the final document.
(c)
When submitting tender documents to the Bank for review, clients should state whether
these Standard Tender Documents & User’s Guide have been used. If so, the client
should:
i.
inform which contract form has been used i.e. the FIDIC-MDB Harmonised Edition of
the Conditions of Contract for Construction, March 2006, or the FIDIC Conditions of
st
Contract for Construction, 1 edition 1999;
ii.
confirm that the Instructions to Tenderers and the General Conditions of Contract
have been used without change;
iii.
highlight any proposed changes to the following:
 Letter of Tender
 Form of Tender Security
 Manufacturer’s Authorisation
 Letter of Acceptance
 Contract Agreement
 Performance Security
 Bank Guarantee for Advanced Payment;
Guidance Notes on using these documents, which appear at the beginning of each volume are for
the use of the drafter and must not be included in the tender documents to be issued to potential
tenderers.
These documents reflect the structure and provisions of the Master Document, except where
specific considerations within the EBRD have required a change, and are comprised of the
following parts and sections:
PART 1 – TENDERING PROCEDURES
Section I:
Instructions to Tenderers (ITT)
This Section provides information to help Tenderers prepare their tenders.
Information is also provided on the submission, opening, and evaluation of
tenders and on the award of Contracts. The text of the clauses in this Section
can only be modified, adjusted or supplemented through Section II, Tender
Data Sheet.
Section II:
Tender Data Sheet (TDS)
This Section includes provisions, which are specific to each individual
procurement, and which modify, adjust or supplement Section I, Instructions to
Tenderers.
Section III:
Evaluation and Qualification Criteria
This Section specifies the criteria to be used to determine the lowest evaluated
tender and the requirements for the tenderer’s qualification to perform the
contract. The criteria for tender evaluation and the methods for applying such
criteria in evaluation should be reviewed carefully. It may be appropriate to delete
or to modify some of the criteria given in this document, or to use additional
criteria. In any event, criteria must be quantified in monetary terms except on rare
occasions, where it is not practical.
Section IV:
Tender Forms
This Section includes the forms which are to be completed by the tenderer and to
be submitted as part of its tender.
Section V:
Eligible Countries
This Section includes information regarding eligible countries.
PART 2 –
REQUIREMENTS
Section VI:
This section contains the Specification, the Drawings, and Supplementary
information that describe the works to be procured.
PART 3 –
CONDITIONS OF CONTRACT AND CONTRACT FORMS
Section VII:
General Conditions (GCC)
These Standard Tender Documents have been designed for use with the FIDIC
Conditions of Contract for Construction for Building and Engineering Works
st
Designed by the Employer, 1 edition, 1999. Due to the FIDIC copyrights, these
FIDIC Conditions of Contract are not included in these Tender Documents and
contain instructions on how these Conditions can be acquired.
Section VIII:
Particular Conditions of Contract (PCC)
This section consists of Part A, Particular Conditions of Contract. The contents of
this Section modify or supplement the General Conditions and shall be prepared
by the Employer.
Section IX:
Annex to the PCC - Contract Forms
This section contains forms which, once completed, will form part of the contract.
The forms for Performance Security and Advance Payment Security, when
required, shall only be completed by the successful tenderer after contract award.
ESSENTIAL STEPS OF THE OPEN TENDERING PROCESS
The Instruction to Tenderers included in these Standard Tender Documents is designed for a single stage tendering process with or
without prequalification. The following flow chart reflects the essential steps of such tendering process.
Months
Weeks
General Procurement Notice (GPN) *
EBRD (the Bank) 45 days rule**
Preparation of Tender Documents (TD)
Submission of TD for the Bank's review
The Bank's review of the TD
Bank's no objection to the TD
Invitation for Tenders (IFT) ***
Tenders Preparation Period****
Tenders Opening Session (TOS)
Minutes of TOS submitted to the Bank
Preparation of Tender Evaluation Report (TER)
Submission of TER to the Bank
The Bank's review of the TER
Bank's no objection to the TER
Contract finalisation and award
Delivery
Contract Administration
1
1
2
2
3
4
1
2
3
3
4
1
2
4
3
4
1
2
5
3
4
1
2
6
3
4
1
2
7
3
4
1
2
3
Not less than 45 days
Notes:
*
GPN is to be published on EBRD website, the Employer’s own website and official government
procurement portal in the Employer’s country
This period of time is required to enable potential tenderers to express their interest in execution
**
of the works that are advertised in GPN
***
Advertisement of particular Tendering Exercise on EBRD’s website as well as the Employer’s own website,
and official government procurement portal in the Employer’s country
**** Period shall not be less than 45 days required to enable tenderers to prepare tenders.
This period shall be longer for large and complex works i.e. 60-120 days
4
The Invitation for Tenders provides information that enables potential tenderers to decide
whether to participate.
The Invitation for Tenders must be published not earlier than 45 calendar days after the
publication of the General Procurement Notice on the Bank’s website “Procurement”
(www.ebrd.com) as well as the Employer’s own procurement website and official government
procurement portal in the Employer’s country. Where practical, the Invitation for Tenders shall
also be published in a newspaper with wide circulation in the Employer’s country or in official
gazettes or international trade publications, as appropriate. The notice should also be sent to
potential contractors that have responded to the General Procurement Notice and to local
representatives of potential foreign contractors e.g. commercial attaché of the embassies
accredited in the Employer’s country. Employers should maintain a register of all potential
tenderers, who have purchased the tender documents, and make it available to interested
parties. The Bank shall also arrange for publication in the United Nations Development
Business and in the Official Journal of the European Union.
Although the Invitation for Tenders does not form part of the tender documents, it shall be
submitted to the Bank as part thereof for review and no objection. The information in the
Invitation for Tenders must be consistent with, and reflect the information provided by, the
tender documents. Apart from the essential items listed in the Standard Tender Documents,
the Invitation for Tenders should also indicate any important tender evaluation criteria and/or
qualification requirements (for example, a requirement for a minimum level of experience in
execution of the works of the nature and complexity similar to the works for which the
Invitation for Tenders is issued).
INVITATION FOR TENDERS
… [ country ]
… [ project title ]
INVITATION FOR TENDERS
… [ works to be procured ]
This Invitation for Tenders follows the General Procurement Notice for this project which was
published on the EBRD website, Procurement Notices (www.ebrd.com) on [ state the date of
publication ].
[ Name of Employer ], hereinafter referred to as “the Employer”, intends using part of the
proceeds of a loan from the European Bank for Reconstruction and Development (the Bank)
towards the cost of [ insert name of the Project ].
The Employer now invites sealed tenders from contractors for the following contract[s] to be
funded from part of the proceeds of the loan:

…. [ For each contract include a concise description of the works for each contract,
as may be applicable. State size and principal quantities. Provide locations,
estimated duration, and advise if any contracts are to be performed concurrently or
otherwise separately. ]
Tenders are invited for one or more lots. Each lot must be priced separately. Tenders for
more than one lot may offer discounts and such discounts will be considered in the comparison
of tenders.
Delete the above if tendering process does not involve more than one contract / lot.
Only firms and joint ventures that have been pre-qualified for the proposed contract(s) are
invited to submit a tender.
Where a prequalification process has been conducted prior to the tendering process, tendering
shall be open only to pre-qualified tenderers.
Tendering for contracts to be financed with the proceeds of a loan from the Bank is open to
firms from any country.
To be qualified for the award of a contract, tenderers must satisfy the following minimum
criteria:

[Indicate any particular postqualification requirements, which should be the same
criteria set out in the Instructions to Tenderers].
Where no prequalification process has been conducted prior to the tendering process, the
Invitation for Tenders shall specify the minimum post-qualification criteria that shall be
applied by the Employer.
Tender documents may be obtained from the office at the address below upon payment of a
non-refundable fee of …[ state currency and value
] or equivalent in a convertible
currency.
Only a nominal fee should be charged for the tender documents, solely to cover the costs of
reproduction and of despatching the documents by courier.
[Give instructions for payment by bank transfer or the like and requirements for
submitting Bank receipt of payment to the Employer ].
Upon receipt of appropriate evidence of payment of the non-refundable fee, the documents will
promptly be dispatched by courier; however, no liability can be accepted for their loss or late
delivery. In addition, if requested, the documents can be dispatched electronically after
presentation by the prospective tenderer of an appropriate evidence of payment of the nonrefundable fee. In the event of discrepancy between electronic and hard copies of the
documents, the hard copy shall prevail.
All tenders must be accompanied by a tender security of …. [ state currency and amount
deemed appropriate by the Employer. This should be consistent with paragraph 19.1 of
the Instructions to Tenderers (ITT) ] or its equivalent in a convertible currency.
Delete the above if no tender security is required.
Tenders must be delivered to the office at the address below on or before …. [ specify time
and date of deadline for submission ], at which time they will be opened in the presence of
those tenderers’ representatives who choose to attend.
The date for submission of tenders shall be not less than 45 days after the date of
publication of the Invitation for Tenders or the availability of the tender documents,
whichever is the latest. A period of 60 days is normal and preferable. A longer period would
be appropriate for complex or large contracts and for tenders requiring a pre-tender meeting
or site visit.
A register of potential tenderers who have purchased the tender documents may be inspected
at the address below.
Prospective tenderers may obtain further information from, and inspect and acquire the tender
documents at, the following office:
[
[
[
[
[
Contact name
Employer
Address
Tel:
Fax:
]
]
]
]
]
Date:__________________
Tender Document for
Procurement of Works
Procurement of:
Issued on: ……….…...
Tender No: ……………..
Employer: …………….
Country: ……………
Tender Document
Table of Contents
PART 1 –
Tendering Procedures
Section I: Instruction to Tenderers ....................................................................................
Section II: Tender Data Sheet ..........................................................................................
Section III: Evaluation and Qualification Criteria ................................................................
Section IV: Tender Forms .................................................................................................
Section V: Eligible Countries .............................................................................................
PART 2 –
Requirements
Section VI: Requirements ..................................................................................................
PART 3 –
Contract Forms
Section VII: General Conditions of Contract (GCC) ...........................................................
Section VIII: Particular Conditions of Contract (PCC) ........................................................
Section IX: Contract Forms ...............................................................................................
PART 1 – Tendering Procedures
Section I. Instruction to Tenderers
Table of Clauses
A. General…………………………………………………………………………………
1.
Scope of Tender
2.
Source of Funds
3.
Prohibited Practices
4.
Eligible Tenderers
5.
Eligible Goods and Services
1
1
1
3
4
B. Contents of Tender Document ……………………………………………………….
6.
Sections of Tender Document
7.
Clarification of Tender Document, Site Visit, Pre-Tender Meeting
8.
Amendment of Tender Document
5
6
7
C. Preparation of Tenders ……………………………………………………………….
9.
Cost of Tendering
10.
Language of Tender
11.
Documents Comprising the Tender
12.
Letter of Tender, and Schedules
13.
Alternative Proposals
14.
Tender Prices and Discounts
15.
Currencies of Tender and Payment
16.
Documents Establishing the Qualifications of the Tenderer
17.
Documents Establishing the Eligibility of the Goods and Services
18.
Period of Validity of Tenders
19.
Tender Security
20.
Format and Signing of Tender
7
7
7
8
8
9
9
9
10
10
10
11
D. Submission and Opening of Tenders…………………………………………………
21.
Submission, Sealing and Marking of Tenders
22.
Deadline for Submission of Tenders
23.
Late Tenders
24.
Withdrawal, Substitution, and Modification of Tenders
25.
Tender Opening
12
13
13
13
13
E. Examination of Tenders……………………………………………………………….
26
Confidentiality
27.
Clarification of Tenders
28.
Determination of Responsiveness
14
15
15
F. Tender Evaluation and Comparison………………………………………………….
29.
Evaluation of Tenders and Correction of Mathematical Errors
16
30.
Conversion to Single Currency
31.
Tender Adjustments
32.
Qualification of the Tenderer
33.
Employer’s Right to Accept Any Tender, and to Reject Any or All Tenders
16
16
17
17
G. Award of Contract……………………………………………………………………..
34.
Award Criteria
35.
Notification of Award
36.
Signing of Contract
37.
Performance Security
17
18
18
18
Part 1 - Section I: Instruction to Tenderers
1
Section I: Instruction to Tenderers
A.
1.
2.
3.
Scope of Tender
Source of Funds
Prohibited
Practices
General
1.1
The Employer indicated in Section II, Tender Data Sheet (herein after
referred to as “TDS”) issues this Tender Document for the
procurement of Goods and related services or Works or Plant and
Installation Services, as specified in Section VI, Requirements. The
name, identification, and number of lots are provided in the TDS.
1.2
Unless otherwise stated, throughout this Tender Document
definitions and interpretations shall be as prescribed in Section VII,
General Conditions of Contract.
2.1
The Borrower or Recipient (hereinafter called “Borrower”) indicated in
the TDS has applied for or received financing (hereinafter called
“funds”) from the European Bank for Reconstruction and
Development (hereinafter called the “Bank”) toward the cost of the
project named in the TDS. The Borrower intends to apply a portion of
the funds to eligible payments under the contract(s) for which this
Tender Document is issued.
2.2
Payments by the Bank will be made only at the request of the
Borrower and upon approval by the Bank in accordance with the
terms and conditions of the financing agreement between the
Borrower and the Bank (hereinafter called the “Loan Agreement”),
and will be subject in all respects to the terms and conditions of that
Loan Agreement. No party other than the Borrower shall derive any
rights from the Loan Agreement or have any claim to the funds.
3.1
The Bank requires that Borrowers (including beneficiaries of Bank
loans), as well as tenderers, suppliers, contractors, subcontractors,
concessionaires and consultants under Bank financed contracts,
observe the highest standard of ethics during the procurement and
execution of such contracts. In pursuance of this policy, the Bank:
(a)
(b)
defines, for the purposes of this provision, the terms set forth
below as Prohibited Practices:
(i)
“corrupt practice” means the offering, giving, receiving,
or soliciting, directly or indirectly, of anything of value to
influence improperly the actions of another party;
(ii)
“fraudulent practice” means any act or omission,
including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to
obtain a financial or other benefit or to avoid an
obligation;
(iii)
“coercive practice” means impairing or harming, or
threatening to impair or harm, directly or indirectly, any
party or the property of the party to influence improperly
the actions of a party; and
(iv)
“collusive practice” means an arrangement between two
or more parties designed to achieve an improper
purpose, including influencing improperly the actions of
another party;
will reject a proposal for award if it determines that the
supplier,
contractor,
concessionaire
or
consultant
recommended for award has engaged in prohibited practices
in competing for the contract in question;
Part 1 - Section I: Instruction to Tenderers
4.
Eligible
Tenderers
4.1
2
(c)
will cancel the portion of the Bank financing allocated to a
contract for goods, works, services or concessions if it at any
time determines that prohibited practices were engaged in by
representatives of the Borrower or of a beneficiary of the Bank
financing during the procurement or the execution of that
contract, without the Borrower having taken timely and
appropriate action satisfactory to the Bank to remedy the
situation;
(d)
may declare a firm ineligible, either indefinitely or for a stated
period of time, to be awarded a Bank-financed contract if it at
any time determines that the firm has engaged in prohibited
practices in competing for, or in executing, a Bank-financed
contract;
(e)
reserves the right, where a Borrower or a firm has been found
by a judicial process or by the enforcement mechanism of
another international organisation to have engaged in
prohibited practices
(i)
to cancel all or part of the Bank financing for such
Borrower; and
(ii)
to declare that such a firm is ineligible, either
indefinitely or for a stated period of time, to be
awarded a Bank-financed contract; and
f)
will have the right to require that, in contracts financed by the
Bank, a provision be included requiring suppliers, contractors,
concessionaires and consultants to permit the Bank to inspect
their accounts and records relating to the performance of the
contract and to have them audited by auditors appointed by
the Bank.
3.2
Furthermore, tenderers shall be aware of the provisions
stated in Sections VII and III, General and Particular
Conditions of Contract the case may be.
A tenderer may be a natural person, private entity, government-owned
entity—subject to Instructions to Tenderers hereinafter referred to as
“ITT” 4.5—or any combination of such entities in the form of a joint
venture, consortium, or association joint venture, consortium, or
association (JVCA). In the case of a JVCA:
(a)
unless otherwise specified in the TDS, all partners shall be
jointly and severally liable; and
(b)
the JVCA shall nominate a Representative who shall have the
authority to conduct all businesses for and on behalf of any
and all the partners of the JVCA during the Tender process
and, in the event the JVCA is awarded the Contract, during
contract execution.
4.2
A tenderer, and all parties constituting the tenderer, shall have the
nationality of an eligible country, in accordance with Section V,
Eligible Countries. A tenderer shall be deemed to have the nationality
of a country if the tenderer is a citizen or is constituted, incorporated,
or registered and operates in conformity with the provisions of the
laws of that country. This criterion shall also apply to the
determination of the nationality of proposed subcontractors or
suppliers for any part of the Contract including Related Services.
4.3
A tenderer shall not have a conflict of interest. All tenderers found to
have a conflict of interest shall be disqualified. A tenderer may be
considered to have a conflict of interest with one or more parties in
Part 1 - Section I: Instruction to Tenderers
3
this Tendering process, if:
(a)
they have controlling partners in common; or
(b)
they receive or have received any direct or indirect subsidy
from any of them; or
(c)
they have the same legal representative for purposes of this
Tender; or
(d)
they have a relationship with each other, directly or through
common third parties, that puts them in a position to have access
to information about or influence on the tender of another tenderer,
or influence the decisions of the Employer regarding this tendering
process; or
(e)
a tenderer participates in more than one tender in this Tender
process. Participation by a tenderer in more than one Tender
will result in the disqualification of all Tenders in which it is
involved. However, this does not limit the inclusion of the same
subcontractor, not otherwise participating as a tenderer, in
more than one tender; or
(f)
a tenderer, its affiliates or parent organisation has participated
in the feasibility or design stages of a project, that tenderer, its
affiliates or parent organisation shall not be eligible to
participate in a tender for contracts involving the supply of
goods, works or services, including architectural or engineering
services, for the project, unless it can be demonstrated that
such participation would not constitute a conflict of interest.
Such determination must be made prior to the submission of a
tender or
(g)
a tenderer participated as a consultant in the preparation of
Section VI, Requirements that are the subject of the tender or
(h)
a tenderer or any of its affiliates has been hired, or is proposed
to be hired, by the Employer or the Borrower for the supervision
of the contract.
4.4
A tenderer shall be disqualified if the tenderer, an affiliate of the
tenderer, a party constituting the tenderer or an affiliate of a party
constituting the tenderer, is under a declaration of ineligibility by the
Bank in accordance with ITT 3, at the date of the deadline for Tender
submission or thereafter,.
4.5
No affiliate of the Employer shall be eligible to tender or participate in
a tender in any capacity whatsoever unless it can be demonstrated
that there is not a significant degree of common ownership, influence
or control amongst the affiliate and the Employer or the Borrower.
4.6
Tenderers shall provide such evidence of their continued eligibility
satisfactory to the Employer, as the Employer shall reasonably
request.
4.7
Firms shall be excluded if:
(a)
as a matter of law or official regulation, the Borrower’s country
prohibits commercial relations with that country, provided that
the Bank is satisfied that such exclusion does not preclude
effective competition; or
(b)
by an act of compliance with a decision of the United Nations
Security Council taken under Chapter VII of the Charter of the
United Nations, the Borrower’s country prohibits any import of
Goods from that country or any payments to persons or entities
in that country.
Part 1 - Section I: Instruction to Tenderers
5.
Eligible Goods
and Related
Services
4
4.8
In case a prequalification process has been conducted prior to the
Tendering process, this Tender is open only to pre-qualified
tenderers.
5.1
All goods and services to be supplied under the Contract and
financed by the Bank, shall have as their country of origin an eligible
country of the Bank as listed in Section V, Eligible Countries.
5.2
For purposes of this paragraph, the term goods includes
commodities, raw material, machinery, equipment, and industrial
plants; and related services includes services such as insurance,
transportation, installation, commissioning, training, and initial
maintenance.
5.3
The term “country of origin” means the country where the Goods
have been mined, grown, cultivated, produced, manufactured, or
processed; or through manufacture, processing, or assembly,
another commercially recognized article results that differs
substantially in its basic characteristics from its imported
components.
5.4
The nationality of the firm that produces, assembles, distributes, or
sells the Goods shall not determine their origin.
B.
6.
Sections of
Tender
Document
6.1
Contents of Tender Document
The Tender Document consist of Parts 1, 2, and 3, which include all
the Sections indicated below, and should be read in conjunction with
any Addenda issued in accordance with ITT 8.
PART 1





Tendering Procedures
Section I. Instruction to Tenderers (ITT)
Section II. Tender Data Sheet (TDS)
Section III. Evaluation and Qualification Criteria
Section IV. Tender Forms
Section V. Eligible Countries
PART 2 Requirements

Section VI. Requirements
PART 3 Contract



7.
Clarification of
Tender
Document, Site
Section VII. General Conditions of Contract (GCC)
Section VIII. Particular Conditions of Contract (PCC)
Section IX. Contract Forms
6.2
The Invitation for Tenders issued by the Employer is not part of the
Tender Document.
6.3
The tenderer shall obtain the Tender Document from the source
stated by the Employer in the Invitation for Tenders; otherwise the
Employer is not responsible for the completeness of the Tender
Document.
6.4
The tenderer is expected to examine all instructions, forms, terms,
and specifications in the Tender Document. Failure to furnish all
information or documentation required by the Tender Document may
result in the rejection of the Tender.
7.1
A prospective tenderer requiring any clarification of the Tender
Document shall contact the Employer in writing at the Employer
address indicated in the TDS or raise his enquiries during the pre-
Part 1 - Section I: Instruction to Tenderers
Visit, Pre-Tender
Meeting
8.
Amendment of
Tender
Document
5
Tender meeting if provided for in accordance with ITT 7.4. The
Employer will respond to any request for clarification, provided that
such request is received prior to the deadline for submission of
Tenders, within the number of days specified in the TDS. The
Employer’s response shall be in writing with copies to all tenderers
who have acquired the Tender Document in accordance with ITT 6.3,
including a description of the inquiry but without identifying its source.
Should the Employer deem it necessary to amend the Tender
Document as a result of a request for clarification, it shall do so
following the procedure under ITT 8 and ITT 22.2.
7.2
Where applicable, the tenderer is advised to visit and examine the
project site and obtain for itself on its own responsibility all
information that may be necessary for preparing the Tender and
entering into a contract for the provision of the Requirements. The
costs of visiting the site shall be at the tenderer’s own expense.
7.3
Pursuant to ITT 7.2, where the tenderer and any of its personnel or
agents have been granted permission by the Employer to enter upon
its premises and lands for the purpose of such visit, the tenderer, its
personnel, and agents will release and indemnify the Employer and
its personnel and agents from and against all liability in respect
thereof, and will be responsible for death or personal injury, loss of or
damage to property, and any other loss, damage, costs, and
expenses incurred as a result of the visit.
7.4
The tenderer’s designated representative is invited to attend a preTender meeting, if provided for in the TDS. The purpose of the
meeting will be to clarify issues and to answer questions on any
matter that may be raised at that stage. If so provided for in the TDS,
the Employer will organise a site visit.
7.5
The tenderer is requested, as far as possible, to submit any
questions in writing, to reach the Employer not later than one week
before the meeting.
7.6
Minutes of the pre-Tender meeting, including the text of the questions
raised without identifying the source, and the responses given,
together with any responses prepared after the meeting, will be
transmitted promptly to all tenderers who have acquired the Tender
Document in accordance with ITT 6.3. Any modification to the Tender
Document that may become necessary as a result of the pre-Tender
meeting shall be made by the Employer exclusively through the issue
of an Addendum pursuant to ITT 8 and not through the minutes of the
pre-Tender meeting.
7.7
Non-attendance at the pre-Tender meeting will not be a cause for
disqualification of a tenderer.
8.1
At any time prior to the deadline for submission of Tenders, the
Employer may amend the Tender Document by issuing addenda.
8.2
Any addendum issued shall be part of the Tender Document and
shall be communicated in writing to all who have obtained the Tender
Document from the Employer in accordance with ITT 6.3.
8.3
To give prospective tenderers reasonable time in which to take an
addendum into account in preparing their Tenders, the Employer
may, at its discretion, extend the deadline for the submission of
Tenders, pursuant to ITT 22.2
Part 1 - Section I: Instruction to Tenderers
6
C.
9.
Cost of
Tendering
9.1
Preparation of Tenders
The tenderer shall bear all costs associated with the preparation and
submission of its Tender, and the Employer shall not be responsible
or liable for those costs, regardless of the conduct or outcome of the
Tendering process.
10. Language of
Tender
10.1 The Tender, as well as all correspondence and documents relating to
the Tender exchanged by the tenderer and the Employer, shall be
written in the language specified in the TDS. Supporting documents
and printed literature that are part of the Tender may be in another
language provided they are accompanied by an accurate translation
of the relevant passages in that language, in which case, for
purposes of interpretation of the Tender, such translation shall
govern.
11. Documents
Comprising the
Tender
11.1
The Tender shall comprise the following:
(a)
letter of Tender;
(b)
completed Schedules as provided in Section IV, Tender
Forms;
(c)
tender Security, in accordance with ITT 19;
(d)
at the tenderer’s option, alternative proposals, if permissible, in
accordance with ITT 13;
(e)
written confirmation authorizing the signatory of the Tender to
commit the tenderer, in accordance with ITT 20.2;
(f)
documentary evidence establishing the eligibility of the Goods
and Services offered by the tenderer, in accordance with ITT
17.1;
(g)
documentary
evidence
establishing
the
tenderer’s
qualifications in accordance with the requirements of Section
III, Evaluation and Qualification Criteria, using the relevant
forms furnished in Section IV, Tender Forms;
(h)
documentary evidence as specified in the TDS, establishing
the conformity of the Technical Proposal offered by the
tenderer with the Tender Document, using the relevant forms
furnished in Section IV, Tender Forms;
(i)
in the case of a Tender submitted by a JVCA, JVCA
agreement indicating at least the parts of the Requirements to
be executed by the respective partners and
(j)
any other document required in the TDS.
12. Letter of Tender
and Price
Schedules
12.1 The tenderer shall submit the Letter of Tender using the form
furnished in Section IV, Tender Forms. This form must be completed
without any alterations to its format, and no substitutes shall be
accepted. All blank spaces shall be filled in with the information
requested.
13. Alternative
Tenders
13.1 Unless otherwise indicated in the TDS, alternative proposals shall not
be considered. If alternative proposals are permitted, their method of
evaluation shall be as stipulated in Section III, Evaluation and
Qualification Criteria.
Part 1 - Section I: Instruction to Tenderers
7
13.2 When alternative times for completion are explicitly invited, a
statement to that effect will be included in the TDS, as will the
method of evaluating different times for completion.
13.3 Except as provided under ITT 13.4 below, tenderers wishing to offer
technical alternatives to the requirements of the Tender Document
must first price the Employer’s requirements as described in the
Tender Document and shall further provide all information necessary
for a complete evaluation of the alternative by the Employer,
including drawings, design calculations, technical specifications,
breakdown of prices, and proposed construction methodology and
other relevant details. Only the technical alternatives, if any, of the
lowest evaluated tenderer conforming to the basic technical
requirements shall be considered by the Employer.
13.4 When specified in the TDS, tenderers are permitted to submit
alternative technical solutions for specified parts of the requirements,
and such parts shall be identified in the TDS, as will the method for
their evaluation, and described in Section VI, Requirements.
14. Tender Prices
and Discounts
14.1 The prices and discounts quoted by the tenderer in the Letter of
Tender and in the Price Schedules shall conform to the requirements
specified in ITT 14.2.
14.2 Unless otherwise provided in the TDS and the Contract, the prices
quoted by the tenderer shall be fixed.
14.3 The price to be quoted in the Letter of Tender, in accordance with ITT
12.1, shall be the total price of the Tender, excluding any discounts
offered.
14.4 The tenderer shall quote any unconditional discounts and the
methodology for their application in the Letter of Tender, in
accordance with ITT 14.1.
14.5 Unless otherwise provided in the TDS and the Contract, the rates
and prices quoted by the tenderer are subject to adjustment during
the performance of the Contract in accordance with the provisions of
the Conditions of Contract. In such a case, the tenderer shall furnish
the indices and weightings for the price adjustment formulae in the
Schedule of Adjustment Data and the Employer may require the
tenderer to justify its proposed indices and weightings.
14.6 If so indicated in ITT 1.1, Tenders are being invited for individual lots
(contracts) or for any combination of lots (packages). Tenderers
wishing to offer any price reduction for the award of more than one
contract shall specify in their Tender the price reductions applicable
to each package, or alternatively, to individual Contracts within the
package. Price reductions or discounts shall be submitted in
accordance with ITT 14.4, provided the Tenders for all lots
(contracts) are submitted and opened at the same time.
14.7 All duties, taxes, and other levies payable by the Contractor under
the Contract, or for any other cause, as of the date 28 days prior to
the deadline for submission of Tenders, shall be included in the rates
and prices and the total Tender Price submitted by the tenderer.
15. Currencies of
Tender
15.1 The currency(ies) of the Tender and the currency(ies) for payment
shall be as specified in the TDS.
16. Documents
Establishing the
Qualifications of
the Tenderer
16.1 To establish its qualifications to perform the Contract in accordance
with Section III, Evaluation and Qualification Criteria, the tenderer
shall provide the information requested in Section IV, Tender Forms.
Part 1 - Section I: Instruction to Tenderers
8
16.2 If so required in the TDS, a tenderer shall submit the Manufacturer’s
Authorisation, using the form included in Section IV, Tender Forms
where the tenderer does not manufacture or produce the Goods it
offers to supply.
16.3 If so required in the TDS, a tenderer shall submit evidence that it will
be represented by an Agent in the country, equipped and able to
carry out the Supplier’s maintenance, repair and spare parts-stocking
obligations prescribed in the Conditions of Contract and
Requirements, where a tenderer does not conduct business within
the Employer’s Country.
17. Documents
Establishing the
Eligibility of
Goods and
Related Services
17.1 To establish the eligibility of the Goods and Services in accordance
with ITT 5, tenderers shall complete the forms, included in Section IV,
Tender Forms.
18. Period of
Validity of
Tenders
18.1 Tenders shall remain valid for the period specified in the TDS after
the Tender submission deadline date prescribed by the Employer. A
Tender valid for a shorter period shall be rejected by the Employer as
non responsive.
18.2 In exceptional circumstances, prior to the expiration of the Tender
validity period, the Employer may request tenderers to extend the
period of validity of their Tenders. The request and the responses
shall be made in writing. If a tender security is requested in
accordance with ITT 19, the tenderer granting the request shall also
extend the tender security for twenty-eight (28) days beyond the
deadline of the extended validity period. A tenderer may refuse the
request without forfeiting its tender security. A tenderer granting the
request shall not be required or permitted to modify its Tender,
except as provided in ITT 18.3.
18.3 In the case of fixed price contracts, if the award is delayed by a
period exceeding fifty-six (56) days beyond the expiry of the initial
Tender validity, the Contract price shall be adjusted as specified in
the request for extension. Tender evaluation shall be based on the
Tender Price without taking into consideration the above adjustment.
19. Tender Security
19.1 The tenderer shall furnish as part of its Tender, the original of a
tender security using the form included in Section IV, Tender Forms.
The tender security amount and currency shall be as specified in the
TDS.
19.2 If a tender security is specified pursuant to ITT 19.1, the tender
security shall be a demand guarantee in any of the following forms at
the tenderer’s option:
(a)
an unconditional guarantee issued by a bank;
(b)
an irrevocable letter of credit; or
(c)
a cashier’s or certified check
from a reputable source. In the case of a bank guarantee, the tender
security shall be submitted either using the tender security form
included in Section IV, Tender Forms or in another substantially
similar format approved by the Employer prior to Tender submission.
In either case, the form must include the complete name of the
tenderer. The tender security shall be valid for twenty-eight days (28)
beyond the original validity period of the Tender, or beyond any
period of extension if requested under ITT 18.2.
19.3 If a tender security is specified pursuant to ITT 19.1, any Tender not
Part 1 - Section I: Instruction to Tenderers
9
accompanied by a substantially responsive tender security shall be
rejected by the Employer as non responsive.
19.4 If a tender security is specified pursuant to ITT 19.1, the tender
security of unsuccessful tenderers shall be returned as promptly as
possible upon the successful tenderer’s furnishing of the
performance security pursuant to ITT 37.
19.5 The tender security of the successful tenderer shall be returned as
promptly as possible once the successful tenderer has signed the
Contract and furnished the required performance security.
19.6 The tender security may be forfeited:
(a)
if a tenderer withdraws its Tender during the period of Tender
validity specified by the tenderer in the Letter of Tender or
(b)
if the successful tenderer fails to:
(i)
sign the Contract in accordance with ITT 36; or
(ii)
furnish a performance security in accordance with ITT
37.
19.7 The tender security of a JVCA shall be in the name of the JVCA that
submits the Tender.
20. Format and
Signing of
Tender
20.1 The tenderer shall prepare one original of the documents comprising
the Tender as described in ITT 11 and clearly mark it “ORIGINAL.” In
addition, the tenderer shall submit copies of the Tender, in the
number specified in the TDS and clearly mark them “COPY.” In the
event of any discrepancy between the original and the copies, the
original shall prevail.
20.2 The original and all copies of the Tender shall be typed or written in
indelible ink and shall be signed by a person duly authorised to sign
on behalf of the tenderer. This authorisation shall consist of a written
confirmation as specified in the TDS and shall be attached to the
Tender. The name and position held by each person signing the
authorisation must be typed or printed below the signature. The
number of copies of the tender required shall be specified in the TDS.
20.3 A Tender submitted by a JVCA shall comply with the following
requirements:
(a) Unless not required in accordance with ITT 4.1 (a), be signed
so as to be legally binding on all partners and
(b) Include the Representative’s authorisation referred to in ITT
4.1 (b), consisting of a power of attorney signed by those
legally authorised to sign on behalf of the JVCA.
20.4 Any amendments, interlineations, erasures, or overwriting shall be
valid only if they are signed or initialled by the person signing the
Tender.
D.
21. Submission,
Sealing and
Marking of
Tenders
Submission and Opening of Tenders
21.1 Tenderers may always submit their Tenders by mail or by hand. If so
specified in the TDS, tenderers shall have the option of submitting
their Tenders electronically. Procedures for submission, sealing and
marking are as follows:
(a)
Tenderers submitting Tenders by mail or by hand shall enclose
Part 1 - Section I: Instruction to Tenderers
10
the original and copies of the Tender in separate sealed
envelopes. If so permitted in accordance with ITT 13
alternative proposals, and copies thereof, shall also be placed
in separate envelopes. The envelopes shall be duly marked as
“ORIGINAL,” “ALTERNATIVE,” “ORIGINAL COPY,” and
“ALTERNATIVE COPY” These envelopes shall then be
enclosed in one single package. The rest of the procedure
shall be in accordance with ITT 21.2 and 21.3.
(b)
Tenderers submitting Tenders electronically shall follow the
electronic Tender submission procedures specified in the TDS.
21.2 The inner and outer envelopes shall:
(a)
bear the name and address of the tenderer;
(b)
be addressed to the Employer in accordance with ITT 22.1;
(c)
bear the specific identification of this Tendering process
pursuant to ITT 1.1; and
(d)
bear a warning not to open before the time and date for Tender
opening
21.3 If envelopes and packages are not sealed and marked as required,
the Employer will assume no responsibility for the misplacement or
premature opening of the Tender.
22. Deadline for
Submission of
Tenders
22.1 Tenders must be received by the Employer at the address and no
later than the date and time indicated in the TDS.
22.2 The Employer may, at its discretion, extend the deadline for the
submission of Tenders by amending the Tender Document in
accordance with ITT 8, in which case all rights and obligations of the
Employer and tenderers previously subject to the deadline shall
thereafter be subject to the deadline as extended.
23. Late Tenders
23.1 The Employer shall not consider any Tender that arrives after the
deadline for submission of Tenders, in accordance with ITT 22. Any
Tender received by the Employer after the deadline for submission of
Tenders shall be declared late, rejected, and returned unopened to
the tenderer.
24. Withdrawal,
Substitution,
and Modification
of Tenders
24.1 A tenderer may withdraw, substitute, or modify its Tender after it has
been submitted by sending a written notice, duly signed by an
authorised representative, and shall include a copy of the authorisation
in accordance with ITT 20.2, (except that withdrawal notices do not
require copies). The corresponding substitution or modification of the
Tender must accompany the respective written notice. All notices must
be:
(a)
prepared and submitted in accordance with ITT 20 and ITT 21
(except that withdrawals notices do not require copies), and in
addition, the respective envelopes shall be clearly marked
“Withdrawal,” “Substitution,” “Modification;” and
(b)
received by the Employer prior to the deadline prescribed for
submission of Tenders, in accordance with ITT 22.
24.2 Tenders requested to be withdrawn in accordance with ITT 24.1 shall
be returned unopened to the tenderers.
24.3 No Tender may be withdrawn, substituted, or modified in the interval
between the deadline for submission of Tenders and the expiration of
the period of Tender validity specified by the tenderer on the Letter of
Part 1 - Section I: Instruction to Tenderers
11
Tender or any extension thereof.
25. Tender Opening
25.1 The Employer shall conduct the Tender opening in public, in the
presence of tenderers` designated representatives and anyone who
choose to attend, and at the address, date and time specified in the
TDS. Any specific electronic Tender opening procedures required if
electronic Tendering is permitted in accordance with ITT 21.1, shall
be as specified in the TDS.
25.2 First, envelopes marked “Withdrawal” shall be opened and read out
and the envelope with the corresponding Tender shall not be opened,
but returned to the tenderer. No Tender withdrawal shall be permitted
unless the corresponding withdrawal notice contains a valid
authorisation to request the withdrawal and is read out at Tender
opening. Next, envelopes marked “Substitution” shall be opened and
read out and exchanged with the corresponding Tender being
substituted, and the substituted Tender shall not be opened, but
returned to the tenderer. No Tender substitution shall be permitted
unless the corresponding substitution notice contains a valid
authorisation to request the substitution and is read out at Tender
opening. Envelopes marked “Modification” shall be opened and read
out with the corresponding Tender. No Tender modification shall be
permitted unless the corresponding modification notice contains a
valid authorisation to request the modification and is read out at
Tender opening. Only Tenders that are opened and read out at
Tender opening shall be considered further.
25.3 The Employer shall open all other envelopes one at a time and read
out: the name of the tenderer, the Tender Price(s), any discounts and
their application methodology, alternative Tenders, the presence or
absence of a tender security; and any other details as the Employer
may consider appropriate. Only discounts and alternative Tenders
read out at Tender opening shall be considered for evaluation. No
Tender shall be rejected at Tender opening except for late Tenders,
in accordance with ITT 23.1.
25.4 The Employer shall prepare a record of the Tender opening that shall
include, as a minimum: the name of the tenderer and whether there
is a withdrawal, substitution, or modification; the Tender Price, per lot
if applicable, including any discounts and alternative proposals; and
the presence or absence of a tender security. The tenderers’
representatives who are present shall be requested to sign the
record. The omission of a tenderer’s signature on the record shall
not invalidate the contents and effect of the record. A copy of the
record shall be distributed to all tenderers who submitted Tenders in
time, and posted online when electronic Tendering is permitted.
E.
26. Confidentiality
Examination of Tenders
26.1 Information relating to the evaluation of Tenders shall not be
disclosed to tenderers or any other persons not officially concerned
with such process until information on Contract award is
communicated to all tenderers.
26.2 Any attempt by a tenderer to influence improperly the Employer in the
evaluation of the Tenders or Contract award decisions may result in
the rejection of its Tender.
26.3 Notwithstanding ITT 26.1, from the time of Tender opening to the
time of Contract award, if any tenderer wishes to contact the
Employer on any matter related to the tendering process, it should do
so in writing.
Part 1 - Section I: Instruction to Tenderers
27. Clarification of
Tenders
12
27.1 To assist in the examination, evaluation, and comparison of the
Tenders and qualification of the tenderers, the Employer may, at its
discretion, ask any tenderer for a clarification of its Tender, allowing a
reasonable time for response. Any clarification submitted by a
tenderer that is not in response to a request by the Employer shall
not be considered. The Employer’s request for clarification and the
response shall be in writing. No change in the prices or substance of
the Tender shall be sought, offered, or permitted, except to confirm
the correction of arithmetic errors discovered by the Employer in the
evaluation of the Tenders, in accordance with ITT 29.
27.2 If a tenderer does not provide clarifications of its Tender by the date
and time set in the Employer’s request for clarification, its Tender
may be rejected.
28. Determination of
Responsiveness
28.1 The Employer’s determination of a Tender’s responsiveness is to be
based on the contents of the Tender itself, as defined in ITT 11.
28.2 A substantially responsive Tender is one that meets the requirements
of the Tender Document without material deviation, reservation, or
omission.
(a)
“Deviation” is a departure from the requirements specified in the
Tender Document;
(b)
“Reservation” is the setting of limiting conditions or withholding
from complete acceptance of the requirements specified in the
Tender Document; and
(c)
“Omission” is the failure to submit part or all of the information
or documentation required in the Tender Document.
28.3 A material deviation, reservation, or omission is one that,
(a)
if accepted, would:
(i)
(ii)
(b)
affect in any substantial way the scope, quality, or
performance of the Requirements as specified in Section
VI; or
limit in any substantial way, inconsistent with the Tender
Document, the Employer’s rights or the tenderer’s
obligations under the proposed Contract; or
if rectified, would unfairly affect the competitive position of other
tenderers presenting substantially responsive Tenders.
28.4 The Employer shall examine the technical aspects of the Tender in
particular, to confirm that all requirements of Section VI have been
met without any material deviation, reservation, or omission.
28.5 If a Tender is not substantially responsive to the requirements of the
Tender Document, it shall be rejected by the Employer and may not
subsequently be made responsive by correction of the material
deviation, reservation, or omission.
28.6 Provided that a Tender is substantially responsive, the Employer may
waive any quantifiable nonconformity in the Tender that do not
constitute a material deviation, reservation or omission.
F. Tender Evaluation and Comparison
29. Evaluation of
Tenders and
29.1 The Employer shall use the criteria and methodologies indicated in
Section III. Evaluation and Qualification Criteria. No other evaluation
Part 1 - Section I: Instruction to Tenderers
Correction of
Arithmetical
Errors
13
criteria or methodologies shall be permitted.
29.2 Provided that the Tender is substantially responsive, the Employer
shall correct arithmetical errors as indicated in Section III. Evaluation
and Qualification Criteria.
29.3 If a tenderer does not accept the correction of errors, its Tender shall
be declared non-responsive and its tender security shall be forfeited.
30. Conversion to
Single Currency
30.1 For evaluation and comparison purposes, the currency(ies) of the
Tender shall be converted into a single currency as specified in
Section III. Evaluation and Qualification Criteria.
31. Tender
Adjustments
31.1 For the evaluation and comparison purposes the Employer shall
adjust the Tender prices using the criteria and methodology specified
in Section III. Evaluation and Qualification Criteria.
31.2 If in the opinion of the Employer the Tender which results in the
lowest Evaluated Tender Price, is seriously unbalanced or front
loaded or substantially below the Employer’s estimates, the Employer
may require the tenderer to produce detailed price analyses for any
or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with the methods and schedule
proposed. After evaluation of the price analyses, taking into
consideration the schedule of estimated Contract payments, the
Employer may require that the amount of the performance security
be increased at the expense of the tenderer to a level sufficient to
protect the Employer against financial loss in the event of default of
the successful tenderer under the Contract.
32. Qualification of
the Tenderer
32.1 The Employer shall determine to its satisfaction whether the tenderer
that is selected as having submitted the lowest evaluated and
substantially responsive Tender meets the qualifying criteria specified
in Section III, Evaluation and Qualification Criteria.
32.2 The determination shall be based upon an examination of the
documentary evidence of the tenderer’s qualifications submitted by
the tenderer, pursuant to ITT 16.
32.3 An affirmative determination shall be a prerequisite for award of the
Contract to the tenderer. A negative determination shall result in
disqualification of the Tender, in which event the Employer shall
proceed to the next lowest evaluated Tender to make a similar
determination of that tenderer’s qualifications to perform
satisfactorily.
32.4 The capabilities of the manufacturers and subcontractors proposed in
its Tender to be used by the lowest evaluated tenderer for identified
major items of the Requirements will also be evaluated for
acceptability in accordance with the criteria and methodologies
defined in Section III, Evaluation and Qualification Criteria. Their
participation should be confirmed with a letter of intent between the
parties, as needed. Should a manufacturer or subcontractor be
determined to be unacceptable, the Tender will not be rejected, but
the tenderer will be required to substitute an acceptable manufacturer
or subcontractor without any change to the Tender price.
33. Employer’s
Right to Accept
Any Tender, and
to Reject Any or
33.1 The Employer reserves the right to accept or reject any tender, and
to annul the Tendering process and reject all Tenders at any time
prior to contract award, without thereby incurring any liability to
tenderers. In case of annulment, all Tenders submitted and
specifically, Tender securities, shall be promptly returned to the
Part 1 - Section I: Instruction to Tenderers
All Tenders
14
tenderers.
G. Award of Contract
34. Award Criteria
34.1 The Employer shall award the Contract to the tenderer whose offer
has been determined to be the lowest evaluated Tender and is
substantially responsive to the Tender Document, provided further
that the tenderer is determined to be qualified to perform the Contract
satisfactorily.
35. Notification of
Award
35.1 Prior to the expiration of the period of Tender validity, the Employer
shall notify the successful tenderer, in writing, that its Tender has
been accepted.
35.2 Until a formal contract is prepared and executed, the notification of
award shall constitute a binding Contract.
35.3 At the same time, the Employer shall also notify all other tenderers of
the results of the Tendering, and shall publish in the Bank’s website
the results identifying the Tender and lot numbers and the following
information: (i) name of each tenderer who submitted a Tender; (ii)
Tender prices as read out at Tender opening; (iii) name and
evaluated prices of each Tender that was evaluated; (iv) name of
tenderers whose Tenders were rejected; and (v) name of the winning
tenderer, and the price it offered, as well as the duration and
summary scope of the contract awarded. After publication of the
award, unsuccessful tenderers may request in writing to the
Employer for a debriefing seeking explanations on the grounds on
which their Tenders were not selected. The Employer shall promptly
respond in writing to any unsuccessful tenderer who, after Publication
of contract award, requests a debriefing.
36. Signing of
Contract
36.1 Promptly upon notification, the Employer shall send the successful
tenderer the Contract Agreement.
36.2 Within twenty-eight (28) days of receipt of the Contract Agreement,
the successful tenderer shall sign, date, and return it to the Employer.
36.3 Upon the successful tenderer’s furnishing of the signed Contract
Agreement and Performance Security pursuant to ITT 37, the
Employer will discharge its tender security, pursuant to ITT 19.
37. Performance
Security
37.1 Within twenty-eight (28) days of the receipt of notification of award
from the Employer, the successful tenderer shall furnish the
performance security in accordance with the conditions of contract,
subject to ITT 31.2, using for that purpose the Performance Security
Form included in Section IX, Annex to the Particular Conditions Contract Forms, or another form acceptable to the Employer. If the
performance security furnished by the successful tenderer is in the
form of a bond, it shall be issued by a bonding or insurance company
that has been determined by the successful tenderer to be
acceptable to the Employer. A foreign institution providing a bond
shall have a correspondent financial institution located in the
Employer’s Country.
37.2 Failure of the successful tenderer to submit the above-mentioned
Performance Security or sign the Contract shall constitute sufficient
grounds for the annulment of the award and forfeiture of the tender
security. In that event the Employer may award the Contract to the
next lowest evaluated tenderer whose offer is substantially
responsive and is determined by the Employer to be qualified to
Part 1 - Section I: Instruction to Tenderers
perform the Contract satisfactorily.
15
Section II: Tender Data Sheet
Section II, Tender Data Sheet, provides the specific information in relation to corresponding
paragraphs in Section I, Instructions to Tenderers, and must be prepared by the Employer for
each specific procurement.
The Employer should specify in the Tender Data Sheet information and requirements specific to
the circumstances of the Employer, the processing of the procurement, the applicable rules
regarding tender prices and currency and the tender evaluation criteria that will apply to the
tenders. In preparing Section II, the following aspects should be checked:
(a)
(b)
Information that specifies and complements provisions of Section I must be incorporated.
Amendments and/or supplements, if any, to provisions of Section I, as necessitated by the
circumstances of the specific procurement, must also be incorporated.
Boxed guidance notes and provisions in italics font are illustrative provisions containing
instructions and guidance which the drafter should follow. They are not part of the text, and
should not be included in the final tender document. All reference numbers provided in this
Section shall be construed as reference numbers in Section I, Instruction to Tenderers (ITT).
Provisions entitled “EXAMPLE” in this Section are optional and may be revised, supplemented
and included in the final tender document at the Employer’s discretion.
A. Introduction
1.
Scope of Tender
1.1
The Employer is: [specify the name of the Employer ]
1.1
The name of the Tender process is: [insert complete name]
The identification number of the Tender process is: [insert identification number]
The number and identification of contracts for which the tender documents are issued:
[insert the number of contracts]
2.
Source of Funds
2.1
The Borrower is: [specify the name of the Borrower ]
2.1
The name of the Project is: [insert name of the Project]
4.
Eligible Tenderers
4.8
EXAMPLE:
The formation of a joint venture, consortium, or association (JVCA) after prequalification, and
any change in a pre-qualified JVCA, will be subject to the written approval of the Employer
prior to the deadline for submission of tenders. Such approval may be denied if (i) partners
withdraw from the JVCA and the remaining partners do not meet the qualifying requirements;
(ii) the level of participation by partners or the structure of the JVCA is substantially changed;
(iii) the new JVCA is not qualified; (iv) in the opinion of the Employer, a substantial reduction
in competition may result; or (v) request for a change in the prequalification status of the
Tenderer is received by the Employer after the date 28 days prior to the deadline for tender’s
submission.
The Employer will notify any changes in the list of pre-qualified Tenderers prior to the tenders’
opening.
Part 1 - Section III Evaluation and Qualification Criteria
17
B. Tender Document
7.
Clarification of Tender Document, Site Visit, Pre-tender meeting
7.1
For clarification purposes only, the Employer’s address is:
Attention: [insert full name of person, if applicable]
Street Address: [insert street address and number]
Floor/Room number: [insert floor and room number, if applicable]
City: [insert name of city or town]
Postal Code: [insert postal (ZIP) code, if applicable]
Country: [insert name of country]
Facsimile number: [insert phone number, with country and city codes]
Electronic mail address: [insert email address, if applicable]
The deadline for clarification requests would normally be set at the date no later than
28 days prior to the deadline for submission of Tenders
Requests for clarification shall be received by the Employer no later than [insert no. of
days], prior to the deadline for submission of Tenders.
7.4
Pre-tender meeting and site meeting, if any, would normally take place at least 28 days
prior to the deadline for tenders submission and coincide with the deadline for
clarification requests specified in ITT 7.1 above.
A Pre-Tender meeting [insert “will” or “will not”] take place.
If a Pre-Tender meeting will take place, it will be at the following date, time and place:
Date: [insert date, if applicable]
Time: [insert time, if applicable]
Place: [insert place, if applicable]
A site visit conducted by the Employer [insert “will” or “will not”] be organised.
If a Site Visit is organised, it will be at the following date, time and place:
Date: [insert date, if applicable]
Time: [insert time, if applicable]
Place: [insert place, if applicable]
C. Preparation of Tenders
10.
10.1
Language of Tender
In case of sovereign operations the tender documents, including all published
procurement notices, shall be prepared in one of the Bank’s working languages.
“Sovereign operations” are Bank-financed public sector operations which are
extended to, or guaranteed by, a recipient member country of the Bank. In the interest
of open competition as well as economy and efficiency, the Bank requires that the
Part 1 - Section III Evaluation and Qualification Criteria
18
tender documents also be prepared in the English language, which shall be specified
in the tender documents as the governing language. In addition, further sets of the
tender documentation may be prepared in the local language, in order to assist local
firms in tendering.
In the case of sub-Sovereign operations, the tender documentation, including all
published procurement notices, can be prepared in the local language or other
commercially accepted language, which can also be specified in the tender documents
as the governing language.
“Sub-Sovereign operations” are Bank-financed public sector operations other than
those extended to, or guaranteed by, a recipient member country of the Bank. All
procurement and contract documentation shall also be prepared and issued in the
English language. The Bank will determine on the basis of such English language
documentation whether procurement has been carried out in accordance with the
agreed procedures.
The language of the tender is: [insert language]
11.
Documents Comprising the Tender
11.1
The Tender shall comprise the following:
(a)
Letter of Tender and Appendix to Tender;
(b)
Completed Schedule of Prices / Bill of Quantities as provided in Section IV, Tender Forms
(h)
Employers often require tenderers to submit supplementary information, which would
normally be used to assess the Tenderer’s understanding of the complexity of the
Works and ultimately the Tenderer’s capability to perform the Contract satisfactorily.
Such supplementary information may include:
-
description of the construction arrangements and method statements;
-
equipment and personnel which the tenderer proposes to adopt for the execution
of the Works;
-
proposed subcontractors;
-
other information
If the supplementary information forms part of the Tender then a possibility arises that
any inability of the Tenderer to execute the Works in accordance with the information
provided therein e.g. method statement, equipment, etc, could give rise to a claim by
the Tenderer for a variation. Employers may therefore wish to clarify their intention and
the status of the supplementary information in the relation to the Tender and state that
if the information shall merely accompany, the Tenderer’s Tender or otherwise form
part thereof.
EXAMPLE:
Completed Schedule of Supplementary Information.
Schedule of Supplementary Information shall accompany, but not form part, of the Tender
and is required to be submitted in sufficient detail to demonstrate the Tenderer’s capability to
perform the Contract. Schedule of Supplementary Information shall be submitted using the
forms provided in Section IV, Tender Forms, and include the following information:
a)
Attachment 1 - Preliminary Programme
i)
Site organisation and Method statement;
ii)
Mobilisation and Construction Schedules;
Part 1 - Section III Evaluation and Qualification Criteria
b)
c)
13.
iii)
Contractor’s Equipment; and
iv)
Contractor’s Personnel.
19
Attachment 2 - Financial Information
i)
Financial Resources; and
ii)
Name and address of the bank, which will provide the Performance and Advance
Payment Securities.
Attachment 3 - Other Information
i)
List of Proposed Subcontractors;
ii)
Current commitments/works in progress; and
iii)
Name (s) and address (s) the insurer (s) and its/their principal terms for the
insurances required under the Contract.
Alternative Tenders
13.1
Alternative Tenders [insert “shall” or “shall not”] be permitted.
13.2
In the event that alternative times for completion are permitted, the Employer shall
specify the method for evaluating different times for completion in Section III,
Evaluation and Qualification criteria.
Alternative times for completion [insert “are” or “are not”]
permitted.
If alternative times for completion are permitted, the evaluation method will be as specified in
Section III, Evaluation and Qualification Criteria.
13.3
Where the Employer intends to permit alternative tenders and, in particular,
technical/design alternatives, the Employer shall take into account the implications
associated with the approval of the alternative design in accordance with the law
governing the Contract. There is therefore a risk that the construction permit for the
alternative design can either be denied or delayed by the local authorities and thereby
frustrate the execution of the contract if it is awarded based on the alternative design
and may lead to substantial time and cost overruns .
In addition to the information listed in ITT 13.3, the Tenderer must also provide its estimated
time schedule that would demonstrate the Tenderer’s ability to complete the Works within the
Time for Completion, taking into account the time that may be required to obtain the
necessary approvals of the Alternative Technical solutions in accordance with the law
governing the contract.
13.4
If the Employer permits the Contractor to design any part of the Permanent Works, the
Employer must ensure that the Contract provides an appropriate statement to this
effect and specifies the following:

the parts of the Permanent Works that may be designed by the Contractor;

the Employer’s requirements applicable to the Permanent Works that may be
designed by the Contractor; and

the procedures relating to the approval of the Contractor’s design by the
Employer, including:
-
permissions, if any, to be obtained by the Employer;
Part 1 - Section III Evaluation and Qualification Criteria
20
-
the documents to be submitted by the Contractor to the Engineer for
approval, as may be required by the Employer in accordance with the law
governing the Contract; and
-
Third parties, if any, to be involved in the design approval and the relevant
responsibilities of the parties to the contract
Alternative technical solutions shall be permitted for the following parts of the Works: [
specify parts of the Works]
If alternative technical solutions are permitted, the evaluation method will be as specified in
Section III, Evaluation and Qualification Criteria
14.
14.2 &
14.5
Tender Prices and Discounts
Price adjustment is mandatory for contracts which provide for time of completion
exceeding 18 months. It would be difficult, if not impossible, for any experienced
contractor to foresee the price escalation and/or undertake appropriate measures to
hedge the risk associated therewith during a period in excess of 18 months. Thus,
absence of price escalation arrangements for contracts with the time of completion in
excess of 18 months may result in the receipt of “gambling” prices from the Tenderers.
This may either result in uncompetitive tender prices, which would be inclusive of
substantial contingencies and/or claims for compensation after the contract award in
the event if the Tenderer’s rates transpire to be insufficient for the execution of the
Works.
The prices quoted by the Tenderer shall be: [insert “subject to adjustment during the
performance of the Contract in accordance with the provisions of the Conditions of
Contract.” or “fixed during the performance of the Contract”]
15.
Currencies of Tender
Option A - The currency of the Tender and the currency for payment shall be a single
currency
15.1
EXAMPLE for Option A:
The prices shall be quoted by the Tenderer entirely in [specify the currency of the tender].
All payments under the Contract shall be made in the currency of the Tender.
15.2
If the Contract Price is subject to adjustment during the performance of the Contract, in cases
where the currency index stated in the Appendix to Tender is not relevant to the currency in
which the Contract Price is payable, each index shall be converted into to relevant currency
of payment in accordance with the Contract
Option B - The currency of the Tender shall be the local currency and payments are
to be made in more than one currency
Part 1 - Section III Evaluation and Qualification Criteria
15.1
21
EXAMPLE for Option B:
The prices shall be quoted by the Tenderer entirely in the Local Currency.
A Tenderer expecting to incur expenditures in other currency for inputs to the Works, supplied
from outside the Employer’s country (referred to as “the Foreign currency requirement”) shall
indicate its expected Foreign currency requirements (excluding provisional sums) in the
Appendix to Tender in the manner and detail indicated therein.
The Foreign currency requirements can be quoted in [ specify the currency or currencies
in which the Foreign currency requirements can be quoted by the Tenderer ]
15.2
The rates of exchange to be used by the Tenderer in arriving at the local currency equivalent
and the percentage(s) mentioned in ITT 15.1 above shall be the selling rates for similar
transactions established by the central Bank of Employer’s country prevailing on the date
twenty-eight (28) days prior to the deadline for submission of tenders. These rates shall be
listed by the Tenderer in the Appendix to Tender and shall apply for calculating the payments
of the successful Tenderer’s Foreign currency requirements under the Contract. If the
Tenderer uses other rates of exchange, the provision of ITT 30 shall apply for the purpose of
the tenders’ evaluation. However, payments under the Contract will be computed, using the
rates of exchange quoted in the tender.
15.3
A Tenderer may be required by the Employer to clarify its Foreign and Local currency
requirements and to substantiate that the amounts included in the prices, and shown in the
Appendix to Tender, are reasonable and responsive to ITT 15.1, in which case a detailed
breakdown of its foreign currency requirements shall be provided by the Tenderer.
15.4
If the Contract Price is subject to adjustment during the performance of the Contract, in cases
where the currency index stated in the Appendix to Tender is not relevant to the currency or
currencies in which the Contract Price is payable, each index shall be converted into to
relevant currency of payment in accordance with the Contract.
16.
16.2
Documents Establishing the Qualifications of the Tenderer
EXAMPLE:
Manufacturer’s Authorisation shall be required for the following items: [specify
the items of plant and equipment for which the Employer requires Manufacturer’s
Authorisation form]
16.4
EXAMPLE:
Tenderers shall not be permitted to claim the experience and capability of their parent
companies for the purposes of meeting the minimum qualification requirements.
The Employer shall consider the experience and qualification of the Tenderers only on their
sole merits.
In the event if the Employer intends to permit Tenderers to claim the experience and
capability of their parent companies for the purposes of meeting the qualification
criteria, a clear statement to this effect must be made in the tender documents. The
tender documents shall also specify the minimum requirements for acceptance of the
Tenderers’ parent company guarantee by the Employer. The main purpose of such
parent company guarantee would be to ensure that the contract will be performed
satisfactorily i.e. the contractor’s parent company will provide the necessary resources
and is fully committed, along with its subsidiary, to ensuring such performance.
16.4
EXAMPLE:
If a Tenderer wishes to claim the experience and capability of its parent company for the
purposes of meeting the minimum qualification requirements, the Tenderer shall submit with
Part 1 - Section III Evaluation and Qualification Criteria
22
its tender an irrevocable guarantee from its parent company. The format of the parent
company guarantee shall be approved by the Employer prior to tender submission and shall
specify, as minimum:

the names of the parties to the parent company guarantee including the name of the
Employer, the Tenderer and its guarantor;

the name of the Contract relating to which the guarantee is provided;

the validity of the guarantee, which shall be consistent with the time for completion or
delivery required under the Contract;

the law governing the guarantee, which shall be the same as the law governing the
Contract; and

the cumulative limit of liability of the Guarantor under the guarantee which shall not be
less than the limit of liability of the Tenderer under the Contract
Failure to furnish suitable parent company guarantee may result in the rejection of the tender.
18.
18.1
Period of Validity of Tenders
Insert the number of days deemed appropriate by the Employer. The period should be
sufficient to permit completion of evaluation and comparison of tenders, review of the
evaluation report by the Bank (if so required), obtaining of all necessary approvals,
and notification of the award. Normally, the validity period should be 90 days. For
major and complex contracts, the validity period should be longer. A realistic period
should be specified in order to avoid the need for extensions.
The Tender validity period shall be [insert the number of days deemed appropriate] days.
19.
19.1
Tender Security
Insert the amount deemed appropriate by the Employer. The amount shall be
expressed as a fixed amount. Tender security will be normally in the range of 2-5 per
cent of the estimated cost of the Works.
A tender security [insert “is” or “is not”] required.
If a tender security is required, the amount and currency of the tender security shall be
[insert amount and currency].
19.7
JVCA Tenderers for works contracts are seldom long term, established corporate
entities with the existing bank accounts and credit history. JVCA Tenderers are often
formed for the purposes of the execution of the particular contract and may experience
difficulties in raising a conforming tender security in the name of the JVCA within the
deadline for tenders submission, especially, in the instances, where no
prequalification has been carried out prior to the invitation for tenders. The Employer
may therefore consider permitting JVCA Tenderers to submit the tender security by a
partner of the JVCA on condition the tender security would be issued for and on behalf
of the entire JVCA.
EXAMPLE:
The tender security of a JVCA can be in the name of a partner of the JVCA on condition that
the tender security clearly specifies the names of all partners of the JVCA and states that the
Part 1 - Section III Evaluation and Qualification Criteria
23
Security is submitted for and on behalf of the JVCA.
Failure to furnish a conforming tender security required by the Tender Document shall result
in the rejection of the Tender.
20.
Format and Signing of Tender
20.1
In addition to the original of the Tender, the number of copies is: [insert number of copies
required].
20.2
The written confirmation of authorisation to sign the Tenderer shall consist of: Power of
Attorney, duly authorised by a Notary Public, indicating that the person(s) signing the tender
have the authority to sign the tender and the tender is thus binding upon the Tenderer
21.
21.1
Submission, Sealing and Marking of Tenders
Employers wishing to use any electronic tendering application shall obtain preliminary
no objection from the Bank. The Employer shall afford sufficient time to enable the
Bank to arrange for an appropriate independent audit of the relevant software
application. The wording of the above paragraphs shall be agreed with the Bank on a
case by case basis pending on the outcome of the Bank’s audit.
Tenderers shall not have the option of submitting their tenders electronically.
D. Submission and Opening of Tenders
22.
22.1
Deadline for Submission of Tenders
For Tender submission purposes only, the Employer’s address is :
Attention: [insert full name of person, if applicable]
Street Address: [insert street address and number]
Floor/Room number: [insert floor and room number, if applicable]
City: [insert name of city or town]
Postal Code: [insert postal (ZIP) code, if applicable]
Country: [insert name of country]
The deadline for Tender submission is:
Date: [ insert the date ]
Time: [ insert the time ]
25.
25.1
Tender Opening
The Tender opening shall take place at:
Street Address: [insert street address and number]
Floor/Room number: [insert floor and room number, if applicable]
City: [insert name of city or town]
Postal Code: [insert postal (ZIP) code, if applicable]
Part 1 - Section III Evaluation and Qualification Criteria
24
Country: [insert name of country]
The date for tenders opening must be the same as for tender submission specified
under ITT 22.1 above. The time specified for tender opening should be the same as for
the deadline for tenders submission or promptly thereafter.
Date: [ insert the date ]
Time: [ insert the time ]
Part 1 - Section III Evaluation and Qualification Criteria
25
Section III: Evaluation and Qualification Criteria
Boxed guidance notes and provisions in italics font are illustrative provisions containing
instructions and guidance which the drafter should follow. They are not part of the text, and
should not be included in the final tender document. All reference numbers provided in this
Section shall be construed as reference numbers in Section I, Instruction to Tenderers.
Provisions entitled “EXAMPLE” in this Section are optional and may be included in the final
tender document at the Employer’s discretion.
This Section contains all the criteria that the Employer shall use to evaluate Tenders and qualify
Tenderers. In accordance with ITT 29.1 and ITT 32.1, no other factors, methods or criteria shall be
used. The Tenderer shall provide all the information requested in the forms included in Section IV,
Tender Forms.
Evaluation Criteria and Methodology
13
Alternative Tenders
13.1
Alternative Technical Proposals
If the Employer permits the Contractor to design any part of the Permanent
Works, the Employer shall take note of the square boxed recommendations and
guidance provided in the TDS with reference to ITT 13.4.
There are two options the Employer may apply to consider alternative tenders
design proposals:
a)
each on its own merits; or
b) only for the Tenderer determined as having submitted the lowest evaluated
substantially responsive tender.
1
The following to be used when technical alternatives are accepted, when option
(b) is applied.
EXAMPLE:
Tenderers wishing to offer technical alternatives to the technical requirements of the
tender documents must first price the Employer’s Requirements as provided in Part 2,
Section VI, of the tender documents and shall further provide all information necessary
for a complete evaluation of the alternative by the Employer, including, as appropriate,
drawings, design calculations, Technical Specifications, breakdown of prices, and
other relevant details. Only the technical alternatives, if any, of the lowest evaluated
responsive Tenderer shall be considered by the Employer.
The following to be used when technical alternatives are accepted, when
option (a) is applied.
Part 1 - Section III Evaluation and Qualification Criteria
26
EXAMPLE:
Tenderers wishing to offer technical alternatives to the requirements of the tender
documents must first price the Employer’s Requirements as provided in Part 2,
Section VI, of the tender documents and shall further provide all information
necessary for a complete evaluation of the alternative by the Employer, including, as
appropriate, drawings, design calculations, Technical Specifications, breakdown of
prices, and other relevant details. Technical alternatives which comply with the
Employer’s requirements for parts of the Works permitted by the Employer to be
designed by the Contractor shall be considered by the Employer on their own merits.
13.2
Alternative Time for Completion
EXAMPLE:
Alternative Time for Completion [insert “shall” or “shall not”] be permitted.
Evaluation methodology and criteria for Alternative Times for Completion shall be
specified with reference to ITT 31.1
The following to be used when alternative Times for Completion are not
permitted.
EXAMPLE:
The Employer requires the Works covered under these tender documents to be
completed within the Time for Completion specified in the Contract. Tenderers offering
completion beyond this time will be rejected as non-responsive. Equally, no benefits
will be given for early completion.
The following to be used when alternative Times for Completion are permitted.
The “adjustment” rate for the evaluation of earlier or later completion of the
works shall be the same or less than the rate of delay damages for later
completion of the works specified under Sub-clause 8.7 of the Contract. The
adjustment would normally be limited up to a maximum of 10 per cent of the
Tenderer’s tender. The adjustment can be either a percentage of the tender
price or a fixed amount, denominated in the currency used for the comparison
of tenders.
EXAMPLE:
The Employer requires the Works covered under these tender documents to be
completed within the Time for Completion specified in the Contract. An “adjustment”
will be calculated for each Tenderer offering completion of the Works beyond the Time
for Completion (base) stated in the Contract at (__) per cent of the Tenderer’s price for
the Works, exclusive of the Provisional Sums, for each week of delay beyond the base
and such adjustment will be added to the Tenderer’s Tender price for the evaluation
purposes up to a maximum of (___) per cent of the Tenderer’s tender. No credit will
be given for early completion.
14.
Discounts
The Employer will adjust the Tender Price, using the methodology prescribed by the
Tenderer in its Letter of Tender. Only those discounts will be taken into account for the
tender evaluation purposes that are read out during the Tenders Opening in
Part 1 - Section III Evaluation and Qualification Criteria
27
accordance with ITT Para 25.3.
In the event of any ambiguity in the Tenderer’s methodology, the benefit of the doubt
shall be given to the Employer. If a Tenderer does not accept the Employer’s
determination, its tender shall be declared non-responsive and its tender security shall
be forfeited.
28.
Determination of Responsiveness
28.7
Nonmaterial Deviations
Nonmaterial deviations (commercial and technical) in the tender will not constitute
cause for rejection but shall be reflected in the evaluation wherever practicable and
appropriate. The cost of all nonmaterial quantifiable deviations will be added or
deducted to or from the tender price as may be appropriate. A reasonable estimate of
the cost will be made by the Employer, taking into consideration the corresponding
quotations of other responsive Tenderers or other appropriate market prices. Such
costs will be at the Employer’s sole discretion. A Tenderer will not be requested or
permitted to offer a price adjustment for rectifying such nonmaterial deviations.
Deviations and other factors that are in excess of the requirements of the tender
documents or otherwise result in unsolicited benefits for the Employer shall not be
taken into account in tender evaluation.
29.
Correction of Mathematical Errors
29.2
30.
Correction of Mathematical Errors
(a)
Where there are errors between the total of the amounts given under the column
for the price breakdown and the amount given under the Total Price, the former
shall prevail and the latter will be corrected accordingly
(b)
If there is a discrepancy between the unit price and the total price that is
obtained by multiplying the unit price and quantity, the unit price shall prevail and
the total price shall be corrected, unless in the opinion of the Employer there is
an obvious misplacement of the decimal point in the unit price, in which case the
total price as quoted shall govern and the unit price shall be corrected;
(c)
If there is an error in a total corresponding to the addition or subtraction of
subtotals, the subtotals shall prevail and the total shall be corrected; and
(d)
If there is a discrepancy between words and figures, the amount in words shall
prevail, unless the amount expressed in words is related to an arithmetic error, in
which case the amount in figures shall prevail subject to (a) and (b) above.
Conversion to a Single Currency
30.1
Conversion to a Single Currency
Tenders will be evaluated as quoted in the currency of the tender specified in ITT
15.1.
If tenders are permitted to indicate their Foreign currency requirements and if a
Tenderer has used different exchange rates from those prescribed in ITT 15.2, for the
purposes of the tender evaluation, the tender will be first converted into the amounts
payable in different currencies, using the rates quoted in the tender, and then
reconverted to the currency of the tender using the exchange rates prescribed in ITT
Part 1 - Section III Evaluation and Qualification Criteria
28
15.2.
31.
Tender Adjustments
31.1
The adjustment shall be made using the following methodology:
EXAMPLE :
The adjustment shall be made using the following methodology:
In evaluating the tenders, the Employer will determine for each tender the evaluated
tender price by adjusting the tender price as follows:
32.
(a)
making any correction for errors pursuant to ITT Para 29.2 and Section III.
Evaluation and Qualification Criteria Clause 30.2
(b)
excluding provisional sums and the provision, if any, for contingencies in the
Price Schedules, but including Dayworks, where priced competitively;
(c)
making appropriate adjustments to reflect discounts or other price modifications
offered in accordance with ITT Para 14; and
(d)
making an appropriate adjustment for any other acceptable variations, deviations
in accordance with ITT 28.7 and Section III. Evaluation and Qualification Criteria
Clause 28.7
Qualification of the Tenderer
32.1
Post-qualification
Insert additional provision:
The Employer will determine to its satisfaction whether the Tenderer selected as
having submitted the lowest evaluated responsive tender meets the qualifying criteria
specified herein and on the basis of the Letter of Tender and any supplementary
information submitted has demonstrated that it is capable of performing the contract
satisfactorily.
34.
Award Criteria
34.1
This provision is to be used where tenders are invited for a number of
contracts/lots and Tenderers have been invited to offer discounts for the award
of more than one contract.
Subject to ITT 33, the Employer will award the contract(s) to the Tenderer(s) whose
tender(s) has been determined to be substantially responsive and the combination of
these tender prices which, including any discounts offered, yield the lowest total
evaluated price, provided further that the Tenderers are determined to be qualified to
perform the contract satisfactorily.
The contract award will be to a single Tenderer if its tender offers the lowest total
evaluated price and the Tenderer is determined to be qualified to perform the
Contract satisfactorily.
Part 1 - Section III Evaluation and Qualification Criteria
29
Option I - Qualification (Following Prequalification)
Table 2.1
Pre-qualified Tenderers shall update the relevant information used for prequalification to
confirm that they continue to comply with the qualification criteria and verify that the
information previously provided is still valid and correct. A Tenderer shall be disqualified
if it no longer meets the qualification requirements at the time of contract award.
Table 2.2
Financial Resources
The Tenderer shall complete Attachment 2, Financial Information, provided in Section IV,
Tender Forms, and demonstrate that the Tenderer continues to have access to, or
availability of, financial resources such as liquid assets, unencumbered real assets, lines
of credit, and other financial means, other than any contractual advance payments to
meet:
(i) the following cash-flow requirement: _____ and
(ii) the overall cash flow requirements for this contract and its current works
commitment.
Table 2.3
Personnel
The Tenderer must demonstrate that it has the personnel for the key positions that meet
the following requirements:
No.
Position
Total Work
Similar
Experience
(years)
In Similar Works
Experience
(years)
The Tenderer shall provide details of the proposed personnel and their experience
records in the relevant Information Forms included in Section IV, Tender Forms.
Table 2.4
Equipment
The Tenderer must demonstrate that it has the key equipment listed hereafter:
No.
Equipment Type and Characteristics
Minimum Number required
The Tenderer shall provide further details of proposed items of equipment using the
relevant Form in Section IV.
Part 1 - Section III Evaluation and Qualification Criteria
30
Option II - Qualification (Without Prequalification)
Boxed guidance notes and provisions in italics font are illustrative provisions containing
instructions and guidance which the drafter should follow. They are not part of the text, and
should not be included in the final tender document. All reference numbers tables provided in
this Section shall be construed as reference numbers tables provided below this Section.
When the invitation for tenders is issued for more than one contract i.e. the Works tendered on
a “slice and package” basis, the Employer shall specify appropriate capacity criteria for all
specific contracts /“slices”, any combination of contacts/”slices, and for the whole “package”.
Tenderers should be classified in accordance with their capacity in respect of the number of
contracts/”slices” they can be contracted.
To be qualified for contract award in accordance with ITT 34, the Tenderer must demonstrate to the
Employer that it substantially satisfies the requirements regarding eligibility, experience, personnel,
equipment, financial position and litigation history, specified below:
Table 2.1
Eligibility
Tenderers shall meet the eligibility requirements set forth in ITT Para 4 and Table 2.1,
Eligibility below.
Table 2.2
Historical non-performance
A consistent history of historical non-performance and/or litigation awards against the
Tenderer or any partner of a joint venture may result in rejection of the tender.
Table 2.3
2.3.1
Financial Situation
Historical financial performance
The audited balance sheets for the last [ specify number of years] years shall be
submitted and must demonstrate the soundness of the Tenderer’s financial position,
showing long-term profitability. Where necessary, the Employer will make inquiries with
the Tenderer's bankers.
Firms owned by individuals and partnerships may not be required to maintain
audited balance sheets by the laws of their countries of origin. In such cases, the
audit requirement may be relaxed by the Employer.
Audited balance sheets are usually required for five years, but this period may be
less in special country circumstances.
2.3.2
Average Annual Turnover
The Tenderer shall have an average annual turnover as prime contractor (defined as
billing for works in progress and completed) over the last [ specify number of years] *
Part 1 - Section III Evaluation and Qualification Criteria
31
years of not less than EURO[ specify amount] ** equivalent
2.3.3
*
This period is normally five years, but may be less if special circumstances
warrant it.
**
Usually not less than 2.5 times the estimated annual cash flow in the
proposed contract (based on a straight-line projection). The coefficient may
be smaller for very large or very small contracts, but not less than 1.5.
Financial Resources
The Tenderer shall complete Attachment 2, Financial Information, provided in Section IV,
Tender Forms, and demonstrate that it has access to, or has available, liquid assets,
unencumbered real assets, lines of credit, and other financial means sufficient to meet
the construction cash flow for the contract for a period of 4 (four) months, estimated as
not less than EURO [specify amount] *equivalent, taking into account the applicant's
commitments for other contracts.
*
Table 2.4
2.4.1
The Employer should calculate an estimated amount cash flow requirements
based on a number of months, which shall be determined taking into account
the total time needed by the Employer to pay a contractor's invoice, allowing
for (a) the time of construction, from the beginning of the month invoiced; (b)
the time needed by the engineer to issue the monthly certificate; (c) the time
needed by the Employer to pay the certified amount, and (d) a contingency
period of one to two months to allow for unforeseen delays. (One month
contingency is adequate when the total of (a) + (b) + (c) is three months or
less). The assessment should be based on a straight-line projection of the
estimated cash flow requirement, neglecting the effect of any advance
payments and retention monies.
Experience
Experience
The Tenderer shall demonstrate that it has successful experience as prime contractor in
the execution of at least three projects of a nature and complexity comparable to the
proposed contract within the last [specify number of years] *years; in addition, the
following specific experience: [specify required experience] **
*
This period is normally five years, but may be less providing that special
circumstances warrant it.
**
Indicate an annual production rate for the key construction activity (or
activities) in the proposed contract e.g., “one million m 3 of rock placed in
rockfill dams in one year”. The annual rate should be a percentage (say 80
percent) of the expected peak rate of construction for the key activity (or
activities) in the contract or works.
Table 2.5
Personnel
The Tenderer shall provide suitably qualified personnel to fill the following positions. For
Part 1 - Section III Evaluation and Qualification Criteria
32
each position the Tenderer will supply information (in table 2.5) on a first choice
candidate and an alternate, each of whom should meet the experience requirements
specified below:
No.
Position
Total Work
Similar
Experience
(years)
In Similar Works
Experience
(years)
List only key management and specialist positions. Do not include all principals
or head office personnel who are not key to the Project, and other non-specialist
personnel. In the event if the proposed contract provides for a part of the Works to
be designed by the Contractor, particular criteria should be specified for the
design personnel that may be proposed by the Tenderer.
Table 2.6
Equipment
The tenderer shall own, or have assured access to (through hire, lease, purchase
agreement, availability of manufacturing equipment, or other means), the following key
items of equipment in full working order, and must demonstrate that, based on known
commitments, they will be available for use in the proposed contract. The Tenderer may
also list alternative equipment which he would propose to use for the contract, together
with an explanation of the proposal.
No.
Equipment Type and Characteristics
Minimum Number required
Insert a list of the key equipment needs based on specific items or performance
criteria, as appropriate. The items listed shall be limited to major items of
equipment, which shall be critical for satisfactory performance of the contract, and
which may not readily be available for purchase, hire, or lease in the Employer’s
country within a reasonable timeframe.
Part 1 - Section III: Evaluation and Qualification Criteria
33
2. QUALIFICATION
TABLES
Factor
2.1 ELIGIBILITY
Criteria
Tenderer
Documentation Required
Sub-Factor
Requirement
Single Entity
Joint Venture, Consortium or Association
All partners
combined
Each partner
At least one
partner
2.1.1 Conflict of
Interest
No- conflicts of interests as described
in ITT 4.3.
Must meet
requirement
JVCA must
meet
requirement
Must meet
requirement
N/A
Letter of Tender
2.1.2 Bank
Ineligibility
Not ineligible by the Bank as described
in ITT 4.4.
Must meet
requirement
JVCA must
meet
requirement
Must meet
requirement
N/A
Letter of Tender
2.1.3 Government
Owned
Entity
Compliance with conditions of ITT 4.5
Must meet
requirement
Must meet
requirement
Must meet
requirement
N/A
Form ELI –1 and 2 with
attachments
2.1.4 Ineligibility
based on a
United
Nations
resolution
or
Borrower’s
country law
Not having been excluded as a result
of the Borrower’s country laws or official
regulations, or by an act of compliance
with UN Security Council resolution, in
accordance with ITT 4.7
Letter of Tender
Must meet
requirement
JVCA must
meet
requirement
Must meet
requirement
N/A
Part 1 - Section III. Evaluation and Qualification Criteria
Factor
34
2.2 HISTORICAL CONTRACT NON-PERFORMANCE
Criteria
Tenderer
Sub-Factor
Joint Venture, Consortium or Association
Requirement
Single Entity
2.2.1 History of
nonperforming
contracts
2.2.2 Pending
Litigation
Non-performance of a contract did not
occur within the last __________ (_) years
prior to the deadline for tenders
submission, based on all information on
fully settled disputes or litigation. A fully
settled dispute or litigation is one that has
been resolved in accordance with the
Dispute Resolution Mechanism under the
respective contract, and where all appeal
instances available to the Tenderer have
been exhausted.
All pending litigation shall in total not
represent more than ______________
percent (_____%) of the Tenderer’s net
worth and shall be treated as resolved
against the Tenderer.
All
partners
combined
Each partner
Documentation Required
At least one
partner
Form CON - 2
Must meet
requirement by
itself or as
partner to past
or existing
JVCA
Must meet
requirement by
itself or as
partner to past
or existing
JVCA
N/A
N/A
Must meet
requirement
by itself or
as partner to
past or
existing
JVCA
Must meet
requirement
by itself or as
partner to
past or
existing
JVCA
N/A
Form CON – 2
N/A
Part 1 - Section III. Evaluation and Qualification Criteria
Factor
35
2.3 FINANCIAL SITUATION
Criteria
Tenderer
Sub-factor
Joint Venture, Consortium, Association
Requirement
Single Entity
2.3.1
Historical
Financial
Performance
Submission of audited balance sheets
or if not required by the law of the
Tenderer’s country, other financial
statements
acceptable
to
the
Employer, for the last [insert number]
[ ] years to demonstrate the current
soundness of the Tenderers financial
position and its prospective long term
profitability.
(a) (criterion 1)
(b) (criterion 2)
Must meet
requirement
All partners
combined
Each
Partner
At least one
partner
N/A
Must meet
requirement
N/A
Documentation
required
Form FIN – 1 with
attachments
Part 1 - Section III. Evaluation and Qualification Criteria
2.3.2. Average
Annual
Turnover
2.3.3. Financial
Resources
Minimum average annual turnover of
__________________, calculated as
total certified payments received for
contracts in progress or completed,
within the last______( ) years
The Tenderer must demonstrate
access to, or availability of, financial
resources such as liquid assets,
unencumbered real assets, lines of
credit, and other financial means, other
than
any
contractual
advance
payments to meet:
i)
the
following
cash-flow
requirement: ……………………...
and
ii)
the
overall
cash
flow
requirements for this contract and
its current commitments.
36
Must meet
requirement
Must meet
requirement
Must meet
requirement
Must meet
requirement
Must meet
_________
percent
(_____%) of
the
requirement
Must meet
_________
percent
(_____%) of
the
requirement
Must meet
_________
percent
(_____%) of
the
requirement
Must meet
_________
percent
(_____%) of
the
requirement
Form FIN –2
Form FIN –3
Form FIN – 4
Part 1 - Section III. Evaluation and Qualification Criteria
Factor
37
2.4 EXPERIENCE
Criteria
Tenderer
Sub-Factor
Requirement
Single Entity
1.1
2.4.1General
Experience
Experience under contracts in the
role of contractor or management
contractor for the last________
[____] years prior to the tender
submission deadline, and with
activity in at least nine (9) months
in each year.
2.4.2
Specific Experience
(a) Participation as contractor or
management contractor in at least
_________ (___) contracts within
the last ________( ) years , each
with a value of at least
____________ (___), that have
been successfully and substantially
completed and that are similar to
the proposed Works. The similarity
shall be based on the physical size,
complexity, methods/technology or
other characteristics as described
in Section VI, Employer’s
Requirements.
Must meet
requirement
Must meet
requirement
Joint Venture, Consortium or Association
All partners Each partner At least one
combined
partner
N/A
Must meet
requirements
for all
characteristics
Must meet
requirement
N/A
N/A
N/A
Documentation
Required
Form EXP-4.1
Form EXP 2.4.2(a)
Part 1 - Section III. Evaluation and Qualification Criteria
Factor
38
2.4 EXPERIENCE
Criteria
Tenderer
Sub-Factor
Requirement
Single Entity
1.2
2.4.2
Specific
Experience
b) For the above or other contracts
executed
during
the
period
stipulated in 2.4.2(a) above, a
minimum experience in
the
following key activities:
A. …
Must meet
requirements
Joint Venture, Consortium or Association
All partners Each partner At least one
combined
partner
Must meet
requirements
N/A
N/A
Documentation
Required
Form EXP-2.4.2(b)
Part I - Section IV: Tender Forms
39
Section IV: Tender Forms
Table of Forms
Letter of Tender
Appendix to Tender
Schedules of Prices / Bill of Quantities
Form of Tender Security
Schedule of Supplementary Information
Part 1 - Section IV: Tender Forms
40
Letter of Tender
The Tenderer must prepare the Letter of Tender on stationery with its letterhead clearly
showing the Tenderer’s complete name and address.
Date: _______________
Tendering No.: _______________
Invitation for Tender No.: _______________
To:
We, the undersigned, declare that:
(a)
We have examined and have no reservations to the Tender Documents, including Addenda
issued in accordance with Instruction to Tenderers (ITT) Paragraph 8;
(b)
We offer to execute in conformity with the Tender Documents the following Works:
____________________________________________________________________;
(c)
The total price of our Tender, excluding any discounts offered in item (d) below is:
___________________________;
(d)
The
discounts
offered
and
the
methodology for
their
application
____________________________________________________________________;
(e)
Our Tender shall be valid for a period of ________ [insert validity period as specified in ITT
18.1.] days from the date fixed for the Tender submission deadline in accordance with the
Tender Documents, and it shall remain binding upon us and may be accepted at any time
before the expiration of that period;
(f)
We acknowledge that the Appendix forms part of this Letter of Tender.
(g)
If our Tender is accepted, we commit to obtain a performance security in accordance with
the Tender Document;
(h)
Our firm, including any subcontractors or suppliers for any part of the Contract, have
nationalities from eligible countries;
(i)
We, including any subcontractors or suppliers for any part of the contract, do not have any
conflict of interest in accordance with ITT 4.3;
(j)
We are not participating, as a Tenderer or as a subcontractor, in more than one Tender in
this Tendering process in accordance with ITT 4.3, other than alternative offers submitted in
accordance with ITT 13;
(k)
Our firm, its affiliates or subsidiaries and the Subcontractors or Suppliers or affiliates of the
Subcontractors or Suppliers, for any part of the contract, have not been declared ineligible
by the Bank, under the Employer’s country laws or official regulations or by an act of
compliance with a decision of the United Nations Security Council;
(l)
We are not a government owned entity / We are a government owned entity but meet the
1
requirements of ITT 4.5;
(m)
We have paid, or will pay the following commissions, gratuities, or fees with respect to the
2
Tendering process or execution of the Contract:
1
Use one of the two options as appropriate.
are:
Part 1 - Section IV: Tender Forms
Name of Recipient
41
Address
Reason
Amount
(n)
We understand that this Tender, together with your written acceptance thereof included in
your notification of award, shall constitute a binding contract between us, until a formal
contract is prepared and executed;
(o)
We understand that you are not bound to accept the lowest evaluated Tender or any other
Tender that you may receive; and
(p)
If awarded the contract, the person named below shall act as Contractor’s Representative:
________________________________________________________
Name:
In the capacity of:
Signed:
Duly authorised to sign
the Tender for and on
behalf of:
Date:
2
If none has been paid or is to be paid, indicate “none”.
Part 1 - Section IV: Tender Forms
42
Appendix to Tender
With the exception of those requirements for which the Employer’s requirements have been
inserted, the following information must be completed before the tender is submitted.
All reference Clauses and Sub-clauses provided in the Appendix to Letter of Tender shall be
construed as reference Clauses and Sub-clauses in Section VII, General Conditions of
Contract.
Conditions
Sub-Clause
Employer’s name and address
1.1.2.2 & 1.3
Contractor’s name and address
1.1.2.3 & 1.3
Engineer’s name and address
1.1.2.4 & 1.3
Bank’s name
1.1.2.11
Borrower’s name
1.1.2.12
Time for Completion
1.1.3.3
Data
European Bank
Development
for
Reconstruction
and
_____________days
If Sections of the Works are to be completed
within different Time for Completion, refer to
Table: Summary of Sections below
Defects Notification Period
1.1.3.7
365 days.
Sections
1.1.5.6
If Sections of the Works are to be used, refer to
Table: Summary of Sections below
Electronic transmission systems
1.3
Governing Law
1.4
Ruling language
1.4
Language for communications
1.4
Time for access to the Site
2.1
Not allowed
__________days after Commencement Date
Part 1 - Section IV: Tender Forms
43
Engineer’s Duties and Authority
3.1(b)(ii)
Performance Security
4.2
Normal working hours
6.5
Delay damages for the Works
Variations resulting in an increase of the
Accepted Contract Amount in excess of____%
shall require approval of the Employer.
The performance security will be in the form
of a demand guarantee in the amount(s) of
[insert related figure(s)] percent of the
Accepted Contract Amount and in the same
currency(ies) of the Accepted Contract
Amount.
8.7 &
14.15(b)
Maximum amount of delay
damages
8.7
If there are Provisional Sums:
Percentage adjustment of
Provisional Sums
13.5.(b)(ii)
If Sub-Clause 13.8 applies:
Adjustments for Changes in
Cost
13.8
% of the Contract Price per day.
If Sections of the Works are to be completed
within different Time for Completion, refer to
Table: Summary of Sections below
______% of the final Contract Price.
_______%
Schedule of Adjustment Data
Table A - Local Currency
Index
Code
Index
Description
Nonadjustable
Source of
Index *
—
Base Value
and Date
—
Total
Tenderer’s
Local Currency
Amount
—
Tenderer’s
Proposed
Weighting
A:
B:
C:
D:
E:
1.00
Table B - Foreign Currency
Name of Currency: _______________
If the Tenderer wishes to quote in more than one foreign currency, this table should be repeated for
each foreign currency.
Part 1 - Section IV: Tender Forms
Index
Code
Index
Description
Nonadjustable
44
Source of
Index
—
Base
Tenderer’s
Value and Currency in
Date
Type/Amount
—
—
Total
Total advance payment
14.2
Number and timing of
instalments
14.2
Currencies and proportions
14.2
Equivalent
in Foreign
Currency
Tenderer’s
Proposed
Weighting
A:
B:
C:
D:
E:
1.00
% Percentage of the Accepted Contract
Amount payable in the currencies and
proportions in which the Accepted Contract
Amount is payable
The advance payment shall be paid in the
currency or currencies and proportions in
which the Accepted Contract Amount is
payable to the Contractor according to Subclause 14.15.
_______% in _____________________
Start repayment of Advance
payment
14.2 (a)
When payments reach ___% of the Accepted
Contract Amount less Provisional Sums
Repayment amortization rate of
advance payment
14.2(b)
_______%
Percentage of Retention
14.3
_______%
Limit of Retention Money
14.3
_______% of the Accepted Contract Amount
If Sub-Clause 14.5 applies:
Plant and Materials
14.5(b)
Plant and Materials for payment when
shipped en route to the Site ______________
[list].
14.5(c)
Plant and Materials for payment when
delivered to the Site ___________________
[list].
14.6
[ insert fixed amount or percentage of the
Accepted Contract Amount which shall be
consistent with the minimum amount of loan
drawdown specified in the Loan agreement]
Minimum Amount of Interim
Payment Certificates
Part 1 - Section IV: Tender Forms
45
Option A - The currency of the Tender and the currency for payment shall be a single
currency
Currency/Currencies of Payment
Option B -
14.15
The Contract Price shall be paid in [ specify
the currency of payment]
The currency of the Tender shall be the local currency and payments to be
made in more the one currency
Currency/Currencies of Payment
14.15
Summary of Payment Currencies
[Separate tables may be required if the various sections of the Works (or of the Bill of Quantities) will
have substantially different foreign and local currency requirements. The Contractor should insert
the names of each Section of the Works.]
A
B
C
D
Rate
of
Local
currency
Percentage
of
Name of payment
Amount of
exchange
equivalent
Net
Tender
Price
currency
currency
(NTP)
(local currency
C=AxB
100xC
per unit of
foreign)
NTP
Local currency
1.00
Foreign currency
#1
Foreign currency
#2
Net Tender Price
Provisional sums
expressed in local
currency
100.00
[To be
entered by
the
Employer]
[To be entered by
the Employer]
TENDER PRICE
Periods for submission of
insurance:
18.1
[Insert period for submission of evidence of
insurance and policy. Period may be from 14
days to 28 days.]
a. evidence of insurance.
_____days
b. relevant policies
_____days
Part 1 - Section IV: Tender Forms
Maximum amount of deductibles
for insurance of the Employer's
risks
46
18.2(d)
[Insert maximum amount of deductibles]
Minimum amount of third party
insurance
18.3
[Insert amount of third party insurance]
The DAB shall be:
20.2
Either: ___ One sole member/adjudicator
Or: ___ a DAB of three members
The DAB shall be comprised of
20.2
Either: One sole Member
Or: Three Members
Appointment (if not agreed) to
be made by
20.3
[Insert name of the appointing entity or official]
20.6(a)
[Insert rules of arbitration if different from
those of the International Chamber of
Commerce and UNCITRAL]
Rules of arbitration
If there are Sections of the
Works
Definition of Sections
Description
(Sub-clause 1.1.5.6.)
Time for Completion
(Sub-clause 1.1.3.3.)
Delay Damages
(Sub-clause 8.7.)
Part 1 - Section IV: Tender Forms
47
Schedules of Prices / Bill of Quantities
These notes for preparing a Bill of Quantities are intended only as information for the
Employer or the person drafting the tender documents. They should not be included in the
final documents.
Objectives
The objectives of the Bill of Quantities are:
(a)
to provide sufficient information on the quantities of works to be performed to
enable tenders to be prepared efficiently and accurately; and
(b)
when a contract has been entered into, to provide a priced Bill of Quantities
for use in the periodic valuation of works executed.
In order to attain these objectives, works should be itemised in the Bill of Quantities in
sufficient detail to distinguish between the different classes of works, or between works of
the same nature carried out in different locations or in other circumstances which may give
rise to different considerations of cost. Consistent with these requirements, the layout and
content of the Bill of Quantities should be as simple and brief as possible.
Content
The Bill of Quantities should normally be divided into the following sections:
(a)
(b)
(c)
(d)
(d)
Preamble;
Work Items (grouped into parts);
Daywork Schedule (if necessary);
Provisional Quantities and Sums; and
Summary
Preamble
The preamble should indicate the inclusiveness of the unit prices and should state the
methods of measurement which have been adopted in the preparation of the Bill of Quantities
and which are to be used for the measurement of any part of the works.
Many national standard reference guides have been prepared on the subject. One such guide
is the Standard Method of Measurement of the UK Institution of Civil Engineers.
Rock
Where excavation, boring, or driving is included in the works, a comprehensive definition of
rock (often a contentious topic in contract administration), if not given the Technical
Specification, should be given in the preamble, and this definition should be used for the
purposes of measurement and payment.
Work items
The items in the Bill of Quantities should be grouped into sections to distinguish between
those parts of the works which by nature, location, access, timing, or any other special
characteristics may give rise to different methods of construction, or phasing of the works, or
considerations of cost. General items common to all parts of the works may be grouped as a
separate section in the Bill of Quantities. When a family of price adjustment formulae are
used, they should relate to appropriate sections in the Bill of Quantities.
Part 1 - Section IV: Tender Forms
48
Pricing
The pricing of the Bill of Quantities must be consistent with the pricing and currency
provisions in the rest of the document (e.g. Instructions to Tenderers, Tender Data, and
Conditions of Contract). There are two common methods of setting up a Bill of Quantities. In
the first, rates and prices are entered in the common currency of the tender (specified in the
Tender Data) only, with tenderers stating separately their proportionate requirements for
local and foreign currencies. In the second method, rates and prices are broken down for
each item into local and foreign currency components. The first method is administratively
more convenient and is more commonly used in works contracts.
Quantities
Quantities should be computed net from the drawings, unless directed otherwise in the
contract, and no allowance should be made for bulking, shrinkage, or waste. Quantities
should be rounded up or down where appropriate and spurious accuracy should be avoided.
Units of measurement
The metric system is recommended for use, unless other national units are mandatory in the
country of the Employer.
Ground and excavation levels
The commencing surface should be identified in the description of each item for work
involving excavation, boring, or driving, for which the commencing surface is not also the
original surface. The excavated surface should be identified in the description of each item
for work involving excavation for which the excavated surface is not also the final surface.
The depths of work should be measured from the commencing surface to the excavated
surface, as defined.
Daywork Schedule
A Daywork Schedule should be included if the probability of unforeseen work, outside the
items included in the Bill of Quantities, is relatively high. To facilitate checking by the
Employer of the realism of rates quoted by the tenderers, the Daywork Schedule should
normally comprise:
(a)
a list of the various classes of labour, materials, and construction plant for
which basic daywork rates or prices are to be inserted by the tenderer,
together with a statement of the conditions under which the contractor will be
paid for work executed on a daywork basis; and
(b)
a percentage to be entered by the tenderer against each basic daywork
subtotal amount for labour, materials, and plant representing the contractor’s
profit, overheads, supervision, and other charges.
A “Daywork Schedule” is commonly found in Contracts where the likely incidence of
unforeseen work cannot be covered by definitive descriptions and approximate quantities in
the Bill of Quantities. The preferred alternative is to value the additional work in accordance
with the Conditions of Contract. A Daywork Schedule normally has the disadvantage of not
being competitive among tenderers, who may therefore load the rates assigned to some or all
the items. If a Daywork Schedule is to be included at all in the tender documents, it is
preferable to include nominal quantities against the items most likely to be used, and to carry
the sum of the extended amounts forward into the Tender Summary in order to make the
basic Schedule of Daywork Rates competitive.
The total amount assigned to such competitive Daywork is normally three to five (3 5) per
cent of the estimated base Contract Price, and is regarded as a Provisional Sum for
contingencies to be expended under the direction and at the discretion of the Engineer. A
Part 1 - Section IV: Tender Forms
49
limitation on quantity should not apply, and the unit rate quoted should be invariable
whatever quantities of work are ordered.
Provisional Quantities and Sums
Provision for quantity contingencies in any particular item or class of work with a high
expectation of quantity overrun should be made by entering specific “Provisional Quantities”
or “Provisional Items” in the Bill of Quantities for the item or class of work in question, and
not by increasing the quantities for that item or class of work beyond those of the work
normally expected to be required. To the extent not covered above, a general provision for
physical contingencies (quantity overruns) can be made by including a “Provisional Sum” in
the Summary of the Bill of Quantities. Similarly, a contingency allowance for possible price
increases should be provided as a “Provisional Sum” in the Summary of the Bill of
Quantities. The amount assigned to such Provisional Sums should be based on a realistic
estimate of the likely increases. The use of these Provisional Sums should be monitored
very closely, and where the total value of such Provisional Sums exceeds fifteen (15) per cent
of the estimated base Contract Price, an audit of these Sums should be carried out when an
amount representing fifteen (15) per cent of the base Contract has been expended under
Provisional Sums.
The estimated cost of specialised work to be carried out, or of special goods to be supplied,
by a nominated subcontractor (reference Clause 59 or Part I) should be indicated in the
relevant part of the Bill of Quantities as a particular Provisional Sum with an appropriate brief
description. A separate tender procedure is normally carried out by the Employer to select
the specialists, who are then nominated as subcontractors to the main or prime contractor.
To provide an element of competition among the main tenderers (or prime contractors) in
respect of any facilities, amenities, attendance, etc., to be provided by the successful
tenderer as prime contractor for use and convenience of the specialist or nominated
subcontractor, each related Provisional Sum should be followed by an item in the Bill of
Quantities inviting a percentage (to be quoted by the main tenderer) payable on the actual
expenditure of the Provisional Sum.
Summary
The Summary should contain a tabulation of the separate parts of the Bill of Quantities
carried forward, with Provisional Sums for daywork, for physical (quantity) contingencies,
and for price contingencies (upward price adjustment) where applicable.
Part 1 - Section IV: Tender Forms
50
FORM OF TENDER SECURITY
All italicised text is for use in preparing this form and shall be deleted from the final product.
__________________________ [Bank’s Name, and Address of Issuing Branch or Office]
Beneficiary: __________________________ [Name and Address of Employer]
Date: __________________________
TENDER GUARANTEE No.: __________________________
We have been informed that __________________________ [name of the Tenderer] (hereinafter
called "the Tenderer") has submitted to you its Tender dated ___________ (hereinafter called "the
Tender") for the execution of ________________ [name of contract] under Invitation for Tenders No.
___________ (“the IFT”).
Furthermore, we understand that, according to your conditions, Tenders must be supported by a
Tender guarantee.
At the request of the Tenderer, we ____________________ [name of issuing bank] hereby
irrevocably undertake to pay you any sum or sums not exceeding in total an amount of ___________
[amount in figures] (____________) [amount in words] upon receipt by us of your first demand in
writing accompanied by a written statement stating that the Tenderer is in breach of its obligation(s)
under the Tender conditions, because the Tenderer:
(a)
has withdrawn its Tender during the period of Tender validity specified by the
Tenderer in the Letter of Tender; or
(b)
having been notified of the acceptance of its Tender by the Employer during the period
of Tender validity, (i) fails or refuses to execute the Contract Form, if required, or (ii)
fails or refuses to furnish the performance security, in accordance with the Tender
Document .
This guarantee will expire: (a) if the Tenderer is the successful Tenderer, upon our receipt of copies
of the contract signed by the Tenderer and the performance security issued to you upon the
instruction of the Tenderer; and (b) if the Tenderer is not the successful Tenderer, upon the earlier of
(i) our receipt of a copy your notification to the Tenderer of the name of the successful Tenderer; or
(ii) twenty-eight days after the expiration of the Tenderer’s Tender.
Consequently, any demand for payment under this guarantee must be received by us at the office on
or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
_________________________
[signature(s)]
Authorised for: [name of issuing bank]
Part 1 - Section IV: Tender Forms
51
SCHEDULE OF SUPPLEMENTARY INFORMATION
We acknowledge that this Schedule of Supplementary Information accompanies, but not forms part,
of our Tender. Any information provided herein shall be subject to adjustment in accordance with the
Contract. Schedule of Supplementary Information consist of the following information:
a) Attachment 1 - Preliminary Programme
i)
ii)
iii)
iv)
Site organisation and Method statement;
Mobilisation and Construction Schedules;
Contractor’s Equipment; and
Contractor’s Personnel.
b) Attachment 2 - Tenderers’ Qualifications
Option I Option II c)
Tenderers’ Qualifications Without Prequalification
Tenderers’ Qualifications Following Prequalification
Attachment 3 - Other Information
i)
ii)
iii)
List of Proposed Subcontractors;
Name (s) and address (s) the insurer (s) and its/their principal terms for the insurances
required under the Contract; and
Name and address of the bank, which will provide the Performance and Advance
Payment Securities.
Part 1 - Section IV: Tender Forms
ATTACHMENT 1 - PRELIMINARY PROGRAMME
52
Part 1 - Section IV: Tender Forms
SITE ORGANISATION AND METHOD STATEMENT
The Tenderer shall provide general description of the arrangements and method statement which
the Tenderer intends to adopt for the execution of the Works. The Tenderer’s arrangements and
method statement should demonstrate their adequacy for satisfactory execution of the Works in
conformity with the Tender Documents.
53
Part 1 - Section IV: Tender Forms
54
MOBILISATION AND CONSTRUCTION SCHEDULES
The Tenderer shall provide information and/or schedule showing the order in which the Tenderer
intends to carry out the Works including the anticipated timing of each stage of the performance of
the Contract including but not limited to:
a)
b)
c)
d)
mobilisation of the Contractor’s Plant and Equipment;
execution of each key construction activity including anticipated construction rates and
estimated timing for commencement and completion;
details relating to the sources of the key materials, estimated transportation distances for
the materials;
other information as the Tenderer deems relevant or appropriate.
Part 1 - Section IV: Tender Forms
55
CONTRACTOR’S EQUIPMENT
The Tenderer shall provide adequate information to demonstrate clearly that it has the capability to
meet the requirements for the key equipment listed in Section III (Evaluation and Qualification Criteria).
A separate Form shall be prepared for each item of equipment listed, or for alternative equipment
proposed by the Tenderer. The Tenderer shall provide all the information requested below, to the
extent possible. Fields with asterisk (*) shall be used for evaluation.
Type of Equipment*
Equipment
Information
Name of manufacturer
Model and power rating
Capacity*
Year of manufacture*
Current Status Current location
Details of current commitments
Source
Indicate source of the equipment
 Owned
 Rented
 Leased
 Specially manufactured
The following information shall be provided only for equipment not owned by the Tenderer.
Owner
Name of owner
Address of owner
Agreements
Telephone
Contact name and title
Fax
Telex
Details of rental / lease / manufacture agreements specific to the project
Part 1 - Section IV: Tender Forms
56
CONTRACTOR’S PERSONNEL
Proposed Personnel
Tenderers should provide the names of suitably qualified personnel to meet the specified requirements
for each of the positions listed in Section 3 (Evaluation and Qualification Criteria). The data on their
experience should be supplied using the Form below for each candidate.
1.
Title of position
Name
2.
Title of position
Name
3.
Title of position
Name
4.
Title of position
Name
5.
Title of position
Name
6.
Title of position
Name
etc.
Title of position
Name
Part 1 - Section IV: Tender Forms
57
Resume of Proposed Personnel
The Tenderer shall provide all the information requested below for each of the personnel listed the
schedule of the Contractor’s Personnel. Fields with asterix (*) shall be used for evaluation.
Position*
Personnel
information
Name *
Date of birth
Professional qualifications
Present
employment
Name of Employer
Address of Employer
Telephone
Contact (manager / personnel officer)
Fax
E-mail
Job title
Years with present Employer
Summarize professional experience in reverse chronological order. Indicate particular technical and
managerial experience relevant to the project.
From*
To*
Company, Project , Position, and Relevant Technical
Experience*
and Management
Part 1 - Section IV: Tender Forms
58
LIST OF PROPOSED SUBCONTRACTORS
Where the Tenderer proposes to use a named subcontractor (s) for the execution of any part of the
Works, the Tenderer shall provide the following information for each proposed subcontractor:

name, head office address; place of incorporation / registration; year of incorporation /
registration and contact details;

brief description and the estimated value of the part of the Works, which is intended to be
subcontracted;

description of the capability and resources of the named subcontractor (s) to perform the
proposed part of the Works including:
(a) experience and past performance on the execution of similar works;
(b) capabilities with respect to personnel, equipment, and construction; and
(c) financial position

appropriate justification of the need for the use of the proposed subcontractor for the execution
of the Works
Part 1 - Section IV: Tender Forms
ATTACHMENT 2 – TENDERERS QUALIFICATIONS
59
Part 1 - Section IV: Tender Forms
OPTION I - TENDERERS QUALIFICATION FOLLOWING PREQUALIFICATION
The Tenderer shall update the information given during the corresponding prequalification
exercise to demonstrate that he continues to meet the criteria used at the time of
prequalification.
For this purpose, the Tenderer shall use the relevant forms included in this Section.
60
Part 1 - Section IV: Tender Forms
61
Form ELI - 1: Tenderer Information Sheet
1.2.1.1.1
Tenderer Information
Tenderer’s legal name
In case of JVCA, legal
name of each partner
Tenderer’s country of
constitution
Tenderer’s year of
constitution
Tenderer’s legal
address in country of
constitution
Tenderer’s authorized
representative
(name, address,
telephone numbers, fax
numbers, e-mail
address)
Attached are copies of the following original documents.
 1. In case of single entity, articles of incorporation or constitution of the legal entity named above, in
accordance with ITT 4.1 and 4.2.
 2. Authorization to represent the firm or JVCA named in above, in accordance with ITT 20.2.
 3. In case of JVCA, letter of intent to form JVCA or JVCA agreement, in accordance with ITT 4.1.
 4. In case of a government-owned entity, any additional documents not covered under 1 above
required to comply with ITT 4.5.
Part 1 - Section IV: Tender Forms
62
Form ELI - 2: JVCA Information Sheet
Each member of a JVCA must fill in this form
1.2.1.1.2
JVCA / Specialist Subcontractor Information
Tenderer’s legal name
JVCA Partner’s or
Subcontractor’s legal
name
JVCA Partner’s or
Subcontractor’s
country of
constitution
JVCA Partner’s or
Subcontractor’s year
of constitution
JVCA Partner’s or
Subcontractor’s legal
address in country of
constitution
JVCA Partner’s or
Subcontractor’s
authorized
representative
information
(name, address,
telephone numbers,
fax numbers, e-mail
address)
Attached are copies of the following original documents.
 1. Articles of incorporation or constitution of the legal entity named above, in accordance with ITT
4.1 and 4.2.
 2. Authorization to represent the firm named above, in accordance with ITT 20.2.
 3. In the case of government-owned entity, documents establishing legal and financial autonomy
and compliance with commercial law, in accordance with ITT Sub-Clause 4.5.
Part 1 - Section IV: Tender Forms
63
Form CON – 2: Historical Contract Non-Performance
[The following table shall be filled in for the Tenderer and for each partner of a Joint Venture]
Tenderer’s Legal Name: ________________
Date: _______________
Joint Venture Party Legal Name: _______________
Tender Ref. and title: _______________
Page _______________ of _______________ pages
Non-Performing Contracts in accordance with Section III, Qualification Criteria and
Requirements

Contract non-performance did not occur during the ____ years specified in Section III, Qualification Criteria
and Requirements, Sub-Factor 2.1.

Contract(s) not performed during the ____ years specified in Section III, Qualification Criteria and
Requirements, requirement 2.1
Year
Non performed
portion of
contract
Contract Identification
Total Contract
Amount (current
value, EURO
equivalent)
Contract Identification:
Name of Employer:
Address of Employer:
Reason(s) for non performance:
Pending Litigation, in accordance with Section III, Qualification Criteria and Requirements

No pending litigation in accordance with Section III, Qualification Criteria and Requirements, Sub-Factor
2.2.

Pending litigation in accordance with Section III, Qualification Criteria and Requirements, Sub-Factor 2.2 as
indicated below.
Year
Outcome as
Percentage
of Total
Assets
Contract Identification
Contract Identification:
Name of Employer:]
Address of Employer:
Matter in dispute:
Total Contract Amount
(current value, EURO
equivalent)
Part 1 - Section IV: Tender Forms
64
Form FIN-1: Financial Situation
Each Tenderer or member of a JVCA must fill in this form
Financial Data for Previous 3 Years [EURO Equivalent]
Year 1:
Year 2:
Year 3:
Information from Balance Sheet
Total Assets
Total Liabilities
Net Worth
Current Assets
Current Liabilities
Information from Income Statement
Total Revenues
Profits Before Taxes
Profits After Taxes
 Attached are copies of financial statements (balance sheets including all related notes, and income
statements) for the last three years, as indicated above, complying with the following conditions.

All such documents reflect the financial situation of the Tenderer or partner to a JVCA, and not
sister or parent companies.

Historic financial statements must be audited by a certified accountant.

Historic financial statements must be complete, including all notes to the financial statements.

Historic financial statements must correspond to accounting periods already completed and
audited (no statements for partial periods shall be requested or accepted).
Part 1 - Section IV: Tender Forms
65
Form FIN-2: Average Annual Construction Turnover
Each Tenderer or member of a JVCA must fill in this form
Annual Turnover Data for the Last 3 Years (Construction only)
Year
Amount
Currency
Exchange
Rate
EURO
Equivalent
Average Annual Construction Turnover
The information supplied should be the Annual Turnover of the Tenderer or each member of a JVCA
in terms of the amounts billed to clients for each year for work in progress or completed, converted to
EUROs at the rate of exchange at the end of the period reported.
Part 1 - Section IV: Tender Forms
66
Form FIN-3: Financial Resources
Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of
credit, and other financial means, net of current commitments, available to meet the total
construction cash flow demands of the subject contract or contracts as indicated in Section III
(Evaluation and Qualification Criteria)
No.
1
2
3
Source of financing
Amount (EURO equivalent)
Part 1 - Section IV: Tender Forms
67
Form FIN-4: Current Contract Commitments / Works in Progress
Tenderers and each partner to a JVCA should provide information on their current commitments on all
contracts that have been awarded, or for which a letter of intent or acceptance has been received, or
for contracts approaching completion, but for which an unqualified, full completion certificate has yet to
be issued.
Name of contract
1.
2.
3.
4.
5.
etc.
Employer,
contact
address/tel/fax
Value of
outstanding work
(current EURO
equivalent)
Estimated
completion date
Average monthly
invoicing over last
six months
(EURO/month)
Part 1 - Section IV: Tender Forms
OPTION II - TENDERERS QUALIFICATION WITHOUT PREQUALIFICATION
To establish its qualifications to perform the contract in accordance with Section III (Evaluation
and Qualification Criteria) the Tenderer shall provide the information requested in the
corresponding Information Sheets included hereunder.
68
Part 1 - Section IV: Tender Forms
69
Form ELI – 1: Tenderer’s Information Sheet
1.2.1.1.3
Tenderer’s Information
Tenderer’s legal name
In case of JVCA, legal
name of each partner
Tenderer’s country of
constitution
Tenderer’s year of
constitution
Tenderer’s legal
address in country of
constitution
Tenderer’s authorized
representative
(name,
address,
telephone numbers, fax
numbers,
e-mail
address)
Attached are copies of the following original documents.
 1. In case of single entity, articles of incorporation or constitution of the legal entity named above, in
accordance with ITT 4.1 and 4.2.
 2. Authorization to represent the firm or JVCA named in above, in accordance with ITT 20.2.
 3. In case of JVCA, letter of intent to form JVCA or JVCA agreement, in accordance with ITT 4.1.
 4. In case of a government-owned entity, any additional documents not covered under 1 above
required to comply with ITT 4.5.
Part 1 - Section IV: Tender Forms
70
Form ELI – 2: JVCA Information Sheet
Each member of a JVCA must fill in this form
1.2.1.1.4
JVCA / Specialist Subcontractor Information
Tenderer’s legal name
JVCA Partner’s or
Subcontractor’s legal
name
JVCA Partner’s or
Subcontractor’s
country of
constitution
JVCA Partner’s or
Subcontractor’s year
of constitution
JVCA Partner’s or
Subcontractor’s legal
address in country of
constitution
JVCA Partner’s or
Subcontractor’s
authorized
representative
information
(name,
address,
telephone numbers, fax
numbers,
e-mail
address)
Attached are copies of the following original documents.
 1. Articles of incorporation or constitution of the legal entity named above, in accordance with ITT
4.1 and 4.2.
 2. Authorization to represent the firm named above, in accordance with ITT 20.2.
 3. In the case of government-owned entity, documents establishing legal and financial autonomy
and compliance with commercial law, in accordance with ITT 4.5.
Part 1 - Section IV: Tender Forms
71
Form CON – 2: Historical Contract Non-Performance
[The following table shall be filled in for the Tenderer and for each partner of a Joint Venture]
Tenderer’s Legal Name: ________________
Date: _______________
Joint Venture Party Legal Name: _______________
Tender Ref. and title: _______________
Page _______________ of _______________ pages
Non-Performing Contracts in accordance with Section III, Qualification Criteria and
Requirements

Contract non-performance did not occur during the ____ years specified in Section III, Qualification Criteria
and Requirements, Sub-Factor 2.1.

Contract(s) not performed during the ____ years specified in Section III, Qualification Criteria and
Requirements, requirement 2.1
Year
Non performed
portion of
contract
Contract Identification
Total Contract
Amount (current
value, EURO
equivalent)
Contract Identification:
Name of Employer:
Address of Employer:
Reason(s) for non performance:
Pending Litigation, in accordance with Section III, Qualification Criteria and Requirements

No pending litigation in accordance with Section III, Qualification Criteria and Requirements, Sub-Factor
2.2.

Pending litigation in accordance with Section III, Qualification Criteria and Requirements, Sub-Factor 2.2 as
indicated below.
Year
Outcome as
Percentage
of Total
Assets
Contract Identification
Contract Identification:
Name of Employer:]
Address of Employer:
Matter in dispute:
Total Contract Amount
(current value, EURO
equivalent)
Part 1 - Section IV: Tender Forms
72
Form FIN – 1: Financial Situation
Each Tenderer or member of a JVCA must fill in this form
Financial Data for Previous 3 Years [EURO Equivalent]
Year 1:
Year 2:
Year 3:
Information from Balance Sheet
Total Assets
Total Liabilities
Net Worth
Current Assets
Current Liabilities
Information from Income Statement
Total Revenues
Profits Before Taxes
Profits After Taxes
 Attached are copies of financial statements (balance sheets including all related notes, and income
statements) for the last three years, as indicated above, complying with the following conditions.

All such documents reflect the financial situation of the Tenderer or partner to a JVCA, and not
sister or parent companies.

Historic financial statements must be audited by a certified accountant.

Historic financial statements must be complete, including all notes to the financial statements.

Historic financial statements must correspond to accounting periods already completed and
audited (no statements for partial periods shall be requested or accepted).
Part 1 - Section IV: Tender Forms
73
Form FIN – 2: Average Annual Construction Turnover
Each Tenderer or member of a JVCA must fill in this form
Annual Turnover Data for the Last 3 Years (Construction only)
Year
Amount
Currency
Exchange
Rate
EURO
Equivalent
Average Annual Construction Turnover
The information supplied should be the Annual Turnover of the Tenderer or each member of a
JVCA in terms of the amounts billed to clients for each year for work in progress or completed,
converted to EUROs at the rate of exchange at the end of the period reported.
Part 1 - Section IV: Tender Forms
74
Form FIN – 3: Financial Resources
Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of
credit, and other financial means, net of current commitments, available to meet the total
construction cash flow demands of the subject contract or contracts as indicated in Section III
(Evaluation and Qualification Criteria)
Financial Resources
No.
1
2
3
Source of financing
Amount (EURO equivalent)
Part 1 - Section IV: Tender Forms
75
Form FIN – 4: Current Contract Commitments / Works in Progress
Tenderers and each partner to a JVCA should provide information on their current commitments on
all contracts that have been awarded, or for which a letter of intent or acceptance has been received,
or for contracts approaching completion, but for which an unqualified, full completion certificate has
yet to be issued.
Current Contract Commitments
1.2.2 1.2.3
o.
1
2
3
4
5
N
Name
Contract
1.2.4
of
Employer’s
Contact Address,
Tel, Fax
Value of
Outstanding
Estimated
Work
Completion
[Current EURO
Date
Equivalent]
Average Monthly
Invoicing Over
Last Six Months
[EURO/month)]
Part 1 - Section IV: Tender Forms
76
Form EXP – 1: General Construction Experience
Each Tenderer or member of a JVCA must fill in this form
General Construction Experience
Starting
Month
Year
Ending
Month
Year
Years
Contract Identification and Name
Name and Address of Employer
Brief Description of the Works Executed by
the Tenderer
Role of
Tenderer
Part 1 - Section IV: Tender Forms
77
Form EXP – 2(a): Specific Construction Experience
Fill up one (1) form per contract.
Contract of Similar Size and Nature
Contract No . . . . . . of
......
Contract Identification
Award Date
Role in Contract
Completion Date
Contractor
Total Contract Amount
If partner in a JVCA or
subcontractor, specify
participation of total
contract amount
Management
Contractor
Subcontractor
EURO
Percent of Total
Amount
Employer’s Name
Address
Telephone/Fax
Number
E-mail
Description of the similarity in accordance with Criteria 2.4.2(a) of Section III
Part 1 - Section IV: Tender Forms
78
Form EXP – 2(b): Specific Construction Experience in Key Activities
Fill up one (1) form per contract
Contract with Similar Key Activities
Contract No . . . . . . of
......
Contract Identification
Award Date
Role in Contract
Completion Date
 Contractor
Total Contract Amount
If partner in a JVCA or
subcontractor, specify
participation of total
contract amount
 Management
Contractor
 Subcontractor
EURO
Percent of Total
Amount
Employer’s Name
Address
Telephone Number
Fax Number
E-mail
Description of the key activities in accordance with Criteria 2.4.2(b) of Section III
Part 1 - Section IV: Tender Forms
ATTACHMENT 3 – OTHER INFORMATION
79
Part 1 - Section IV: Tender Forms
80
DETAILS OF PROPOSED INSURER (S)
The Tenderer shall provide name (s) and address (s) the insurer (s) and its/their principal terms
for the insurances required under the Contract
Part 1 - Section IV: Tender Forms
81
DETAILS OF PROPOSED BANK ISSUING
PERFORMANCE AND ADVANCE PAYMENT SECURITIES
The Tenderer shall provide the name and the address of the issuing bank, which will provide the
Performance and Advance Payment Securities. The Tenderer shall also provide information
about the current credit rating of the issuing bank by Moodys or Standard & Poors or other rating
agencies.
Part 1 - Section V: Eligible Countries
Section V: Eligible Countries
The Bank permits firms and individuals from all countries to offer goods, works and services for
Bank-financed projects regardless of whether the country is a member of the Bank.
Consistent with international law, the proceeds of the Bank’s loans, equity investment or
guarantees shall not be used for payment to persons or entities or for any import of goods, if such
payment or import is prohibited by a decision of the United Nations Security Council taken under
Chapter VII of the Charter of the United Nations. Persons or entities, or suppliers offering goods
and services, covered by such prohibition shall therefore not be eligible for the award of Bankfinanced contracts.
82
Part 1 - Section V: Eligible Countries
PART 2 – REQUIREMENTS
83
Part 2 – Section VI: Requirements
84
Section VI: Requirements
Contents
1.
Scope of Works..................................................................................................................... 2-4
2.
Specification ......................................................................................................................... 2-5
3.
Drawings................................................................................................................................ 2-6
4.
Supplementary Information ................................................................................................ 2-7
Part 2 – Section VI. Requirements.
85
Specification
Notes for preparing specifications
These notes for preparing specifications are intended only as information for the Employer or
the person drafting the tender documents. They should not be included in the final
documents.
Precise and clear specifications are a prerequisite for tenderers to respond realistically and
competitively to the requirements of the Employer without qualifying or conditioning their
tenders. In the context of open tendering, the specifications must be drafted to permit the
widest possible competition and, at the same time, present a clear statement of the required
standards of materials, plant, other supplies, and workmanship to be provided. Only if this is
done will the objectives of economy, efficiency, and equality in procurement be realised,
responsiveness of tenders be ensured, and the subsequent task of tender evaluation
facilitated. The specifications should require that all materials, plant, and other supplies to
be incorporated in the works are new, unused, of the most recent or current models, and
incorporate all recent improvements in design and materials unless provided otherwise in the
contract. The specifications should set out any specific requirements for the works as set out
in legal permits or legal documentation with the EBRD, where the Employer’s compliance
with applicable laws and/or legal agreements with the EBRD are dependent upon the
performance of third parties and , in particular, the Contractor and its sub-contractors. Such
specific requirements include, but are not limited to, environmental and social management
and mitigation provisions directly associated with the works as set out in the EBRD
Performance Requirements as well as in the Environmental and Social Action Plan agreed
between the Employer and the EBRD as part of the legal agreements. A clause setting out the
scope of the works is often included at the beginning of the specifications, and it is
customary to give a list of the drawings. Where the contractor is responsible for the design
of any part of the permanent works, the extent of his obligations must be stated.
Samples of specifications from previous similar projects in the same country are useful in
this respect. The use of metric units is encouraged by the Bank. Most specifications are
normally written specially by the Employer or Engineer to suit the contract works in hand.
There are no standard specifications for universal application in all sectors in all countries,
but there are established principles and practices which are reflected in these documents.
There are considerable advantages in standardising general specifications for repetitive
works in recognised public sectors, such as highways, ports, railways, buildings, irrigation,
and water supply, in the same country or region where similar conditions prevail. The
general specifications should cover all classes of workmanship, materials, and equipment
commonly involved in construction, although not necessarily to be used in a particular works
contract. Deletions or addenda should then adapt the General Specifications to the particular
works.
Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for materials, plant, other supplies, and workmanship, recognised
international standards should be used as much as possible. Where other particular
standards are used, whether national standards of the Employer’s country or other
standards, the specifications should state that materials, plant, other supplies, and
workmanship meeting other authoritative standards, and which ensure substantially equal
performance to the standards mentioned, will also be acceptable. The following clause may
be inserted in the Conditions of Particular Application or the specifications.
Sample clause: Equivalency of standards and codes
Wherever reference is made in the contract to specific standards and codes to be met by the
materials, plant, and other supplies to be furnished, and work performed or tested, the
provisions of the latest current edition or revision of the relevant standards and codes in
Part 2 – Section VI. Requirements.
86
effect shall apply, unless otherwise expressly stated in these documents. Where such
standards and codes are national, or relate to a particular country or region, other
authoritative standards which ensure a substantially equal or higher performance than the
standards and codes specified will be accepted subject to the Engineer’s prior review and
written approval. Differences between the standards specified and the proposed alternative
standards must be fully described in writing by the contractor and submitted to the Engineer
at least twenty-eight (28) days prior to the date when the contractor desires the Engineer’s
approval. In the event the engineer determines that such proposed deviations do not ensure
substantially equal performance, the contractor shall comply with the standards specified in
the documents.
Alternative technical proposals
The Employer should decide whether technical solutions to specified parts of the works are
to be permitted. Alternatives are appropriate in cases where obvious (and potentially less
costly) alternatives are possible to the technical solutions indicated in the tender documents
for certain elements of the works, taking into consideration the comparative specialised
advantage of potential tenderers. For example:











pile foundations (proprietary methods and different material)
bridge foundations (open well, caissons, piles, etc.)
columns, beams, decking (reinforced concrete, prestressed concrete, steel, etc.)
proprietary methods for post-tensioning concrete
lining of canals
pipeline materials, coating, jointing
road surfacing (asphalt, concrete, etc.)
transmission tower design and erection
street lighting
offshore foundations
offshore trestle spans.
The Employer should provide a description of the selected parts of the works with
appropriate references to drawings, specifications, Bill of Quantities, and design or
performance criteria, stating that the alternative solutions shall be at least structurally and
functionally equivalent to the basic design parameters and specifications.
Such alternative solutions shall be accompanied by all information necessary for a complete
evaluation by the Employer, including drawings, design calculations, technical
specifications, breakdown of prices, proposed construction methodology, and other relevant
details. Technical alternatives permitted in this manner shall be considered by the Employer
each on its own merits and independently of whether the tenderer has priced the item as
described in the Employer’s design included with the tender documents.
In more complex cases, a “turnkey” or “design-and-construct” approach may be more
appropriate, in which case a two-stage tender process is recommended in conformity with
other Bank standard tender documents.
Part 2 – Section VI. Requirements.
87
Drawings
These notes for preparing drawings are intended only as information for the Employer or the
persons preparing the tender documents. They should not be included in the final document.
It is customary to bind the drawings in a separate volume, which is often larger than the other
volumes of documents. The size will be dictated by the scale of the drawings, which must
not be reduced to the extent that details are rendered illegible.
A simplified map showing the location of the Site in relation to the local geography, including
major roads, posts, airports, and railroads, is helpful.
The construction drawings, even if not fully developed, must show sufficient details to enable
tenderers to understand the type and complexity of the work involved, and to price the Bill of
Quantities.
Part 2 – Section VI. Requirements.
88
Supplementary Information
This section shall be drafted in conjunction with ITT 11.1 (h). Employer must clearly specify
the information that shall form part of the tender and will eventually become contractual
documents and the information that shall accompany, but not form part, of the tenderer’s
tender. Employers should consult relevant notes and example provisions provided in the
Tender Data Sheet.
PART 3
CONDITIONS OF CONTRACT
AND
CONTRACT FORMS
Part 3 – Section VII: General Conditions of Contract
79
Guidance for Section VII: General Conditions of Contract (GCC)
These Standard Tender Documents have been designed for use with:
THE FIDIC CONDITIONS OF CONTRACT FOR CONSTRUCTION
FOR BUILDING AND ENGINEERING WORKS DESIGNED BY THE EMPLOYER
st
1 edition 1999
The “FIDIC” stands for the International Federation of Consulting Engineers (Fédération
Internationale des Ingénieurs-Conseils). While these tender documents have been
prepared with great care, taking into account international procurement and contracting
experience, the Bank does not assume any responsibility that the contract form,
including example provisions and guidance notes, contained in these Standard Tender
Documents are suitable, adequate and complete in respect of any particular project.
Parties wishing to use the above contract form are advised to seek their own legal
counsel for drafting conditions of contract which would reflect the specifics of the
particular project.
Although these tender documents have been designed to accommodate the FIDIC
Conditions of Contract for Construction, the choice of the contact form shall not be
construed as being mandatory for the use under the Bank funded project. According to
the EBRD Procurement Policies and Rules, wherever appropriate, standard forms of
contract incorporating generally accepted international conditions should be used. The
use of standard contract forms for building and civil works will ensure comprehensive
cover, general acceptability of its provisions, savings in cost and time in tender
preparation and review, and a solid background of legal case histories. The following
Conditions of Contract would be generally acceptable to the Bank though shall be
subject to the Bank’s no objection as part of its review of the project procurement plan:

The FIDIC-MDB Harmonised Edition of the Conditions of Contract for Construction,
March 2006
The Bank has entered into a licence agreement with the FIDIC. According to the
terms of the license agreement, it gives entities involved in the development,
tendering and implementation of EBRD-financed projects free access to the FIDICMDB Harmonised General Conditions of Contract for Construction through the FIDIC
and the Bank official Web Sites. Although the Bank supports the use of the FIDICMDB Harmonised General Conditions of Contract for Construction, this form of
contract is not mandatory for Bank financed projects.

Other Forms of Contract
-
Any of the contract forms prepared by the International Federation of Consulting
Engineers (Fédération Internationale des Ingénieurs-Conseils, or FIDIC)
Any other internationally recognised form of contract e.g. the Conditions of Contract
for Smaller Contracts in the World Bank’s Standard tender Bidding Documents Procurement of Works, Smaller Contracts, January 1995; New Engineering Contract
prepared by the Institute of Civil Engineers, UK
Part 3 – Section VII: General Conditions of Contract
80
Section VII: General Conditions of Contract (GCC)
[name of Employer]
[name of contract]
The Conditions of Contract, Part A: General Conditions shall be those forming Section VII of the
st
“Conditions of Contract for Construction” 1 edition 1999 prepared by the Fédération Internationale
des Ingénieurs-Conseils (FIDIC). These Conditions are subject to the variations and additions set
out in Section VIII hereof entitled “Part B: Particular Conditions of Contract” (PCC)
Add the following text if the tender documents, as issued, do not include a copy:
Copies of the FIDIC Conditions of Contract can be obtained from:
FIDIC Secretariat
P.O. Box 86
1000 Lausanne 12
Switzerland
Facsimile: 41 21 653 5432
Telephone: 41 21 653 5003
And the FIDIC official web site
WWW.FIDIC.ORG
Part 3 - Section VIII: Particular Conditions of Contract
82
Guidance for Section VIII.
Particular Conditions of Contract (PCC)
The Employer should use the Guidance for the Preparation of the Particular Conditions
st
provided as part of the “Conditions of Contract for Construction” 1 edition 1999 prepared by
the Fédération Internationale des Ingénieurs-Conseils (FIDIC). In addition, the following
clauses are intended for use by the Employer in preparing the Particular Conditions of
Contract (PCC). Use them to complement or replace the Particular Conditions published by
FIDIC. They are not a complete standard set of PCC provisions; country- or Project-specific
provisions for the PCC must also be prepared in each case.
The provisions of the PCC complement the General Conditions of Contract (GCC), specifying
contractual requirements linked to the special circumstances of the country, the Employer,
the Engineer, the sector, the overall project, and the contract Works. In preparing the PCC,
check that you have incorporated essential information to complete the provisions of the
PCC and amended and/or supplemented the provisions of the GCC as required or
recommended by the Bank or as necessitated by the circumstances of the specific Works.
Whoever drafts the PCC should be thoroughly familiar with the provisions of the GCC and
with any specific requirements of the Contract. Legal advice is recommended when
amending provisions or drafting new ones. Note that the PCC provisions take precedence
over those in the GCC.
Part 3 - Section VIII: Particular Conditions of Contract
83
Section VIII: Particular Conditions of Contract (PCC)
The following Particular Conditions of Contract shall supplement the GCC. Whenever there is a
conflict, the provisions herein shall prevail over those in the GCC.
Boxed guidance notes and provisions in italics font contain instructions and guidance which
the drafter should follow. They are not part of the text, and should not be included in the final
document.
All reference Clauses and Sub-clauses provided in the Particular Conditions of Contract shall
be construed as reference Clauses and Sub-clauses in Section VII, General Conditions of
Contract.
1.
General Provisions
1.1
Definitions
1.1.2
Parties and Persons
1.1.2.11
1.1.2.12
1.1.6.10
1.2
“Bank” means the financing institution (if any) named in the Appendix To
Tender
“Borrower” means the person (if any) named as the borrower in the
Appendix To Tender
“Notice of Dissatisfaction” means the notice given by either Party to the
other under Sub-Clause 20.4 [Obtaining Dispute Adjudication Board’s
Decision] indicating its dissatisfaction and intention to commence
arbitration.
Interpretation
Add the words (optional):
In these Conditions, provisions including the expression "Cost plus profit" require
this profit to be one-twentieth (5%) of this Cost.
1.12
Confidential Details
Replace Sub-clause (optional):
The Contractor’s and the Employer’s Personnel shall disclose all such confidential
and other information as may be reasonably required in order to verify the
Contractor’s compliance with the Contract and allow its proper implementation.
Each of them shall treat the details of the Contract as private and confidential,
except to the extent necessary to carry out their respective obligations under the
Contract or to comply with applicable Laws. Each of them shall not publish or
disclose any particulars of the Works prepared by the other Party without the
previous agreement of the other Party. However, the Contractor shall be permitted
to disclose any publicly available information, or information otherwise required to
establish his qualifications to compete for other projects.
Part 3 - Section VIII: Particular Conditions of Contract
84
According to the Bank's Procurement Policies and Rules, the Bank will have the right to
require that, in contracts financed by the Bank, a provision be included requiring suppliers,
contractors, concessionaires and consultants to permit the Bank to inspect their accounts
and records relating to the performance of the contract and to have them audited by auditors
appointed by the Bank.
Add the following Sub-clause (Mandatory):
1.15
Inspections and Audit by the Bank
The Contractor shall permit the Bank and/or persons appointed by the Bank to
inspect the Site and/or the Contractor’s accounts and records relating to the
performance of the Contract and to have such accounts and records audited by
auditors appointed by the Bank if required by the Bank.
2
The Employer
2.4
Employer’s Financial Arrangements
Add the words (Mandatory):
In addition, if the Bank has notified to the Borrower that the Bank has suspended
disbursements under its loan, which finances in whole or in part the execution of the
Works, the Employer shall give notice of such suspension to the Contractor with
detailed particulars, including the date of such notification, with a copy to the
Engineer, within 7 days of the Borrower having received the suspension notification
from the Bank. If alternative funds will be available in appropriate currencies to the
Employer to continue making payments to the Contractor beyond a date 60 days
after the date of Bank notification of the suspension, the Employer shall provide
reasonable evidence in his notice of the extent to which such funds will be available
3
The Engineer
3.1
Engineer’s Duties and Authority
Add the words (Mandatory):
(d)
any act by the Engineer in response to a Contractor’s request except as
otherwise expressly specified shall be notified in writing to the Contractor
within 28 days of receipt
The following provisions shall apply:
The Engineer shall obtain the specific approval of the Employer before taking action
under the-following Sub-Clauses of these Conditions:
(a)
Sub-Clause 4.12: Agreeing or determining an extension of time and/or
additional cost.
(b)
Sub-Clause 13.1: Instructing a Variation, except;
(i)
(ii)
in an emergency situation as determined by the Engineer, or
if such a Variation would increase the Accepted Contract Amount by
not more than any percentage specified in the Appendix To Tender
(c)
Sub-Clause 13.3: Approving a proposal for Variation submitted by the
Contractor in accordance with Sub Clause 13.1 or 13.2.
(d)
Sub-Clause 13.4: Specifying the amount payable in each of the applicable
currencies
Part 3 - Section VIII: Particular Conditions of Contract
85
Notwithstanding the obligation, as set out above, to obtain approval, if, in the opinion
of the Engineer, an emergency occurs affecting the safety of life or of the Works or
of adjoining property, he may, without relieving the Contractor of any of his duties
and responsibility under the Contract, instruct the Contractor to execute all such
work or to do all such things as may, in the opinion of the Engineer, be necessary to
abate or reduce the risk. The Contractor shall forthwith comply, despite the absence
of approval of the Employer, with any such instruction of the Engineer. The Engineer
shall determine an addition to the Contract Price, in respect of such instruction, in
accordance with Clause 13 and shall notify the Contractor accordingly, with a copy
to the Employer.
3.4
Replacement of the Engineer
Replace Sub-clause (optional):
If the Employer intends to replace the Engineer, the Employer shall, not less than 21
days before the intended date of replacement, give notice to the Contractor of the
name, address and relevant experience of the intended replacement Engineer. If the
Contractor considers the intended replacement Engineer to be unsuitable, he has
the right to raise objection against him by notice to the Employer, with supporting
particulars, and the Employer shall give full and fair consideration to this objection.
4
The Contractor
4.2
Performance Security
Add the words (mandatory):
The Performance Security shall be issued by a reputable bank or financial institution
selected by the Contractor, and shall be in the form annexed to the Particular
Conditions, as stipulated by the Employer in the Contract Data, or in another form
approved by
Add the words (optional):
Without limitation to the provisions of the rest of this Sub-Clause, whenever the
Engineer determines an addition or a reduction to the Contract Price as a result of a
change in cost and/or legislation or as a result of a Variation, amounting to more
than 25 percent of the portion of the Contract Price payable in a specific currency,
the Contractor shall at the Engineer's request promptly increase, or may decrease,
as the case may be, the value of the Performance Security in that currency by an
equal percentage.
4.3
Contractor’s Representative
Add the words (optional):
If the Contractor’s Representative’s delegates are not fluent in the said language,
the Contractor shall make competent interpreters available during all working hours
in a number deemed sufficient by the Engineer.
4.4
Subcontractors
Add the words (optional):
The Contractor shall ensure that the requirements imposed on the Contractor by
Sub-Clause 1.12 [Confidential Details] apply equally to each Subcontractor.
Where practicable, the Contractor shall give fair and reasonable opportunity for
contractors from the Country to be appointed as Subcontractors.
Part 3 - Section VIII: Particular Conditions of Contract
6
86
Staff and Labour
The legal agreements between the Employer and the EBRD covenant the Employer to comply
with and implement the EBRD's Environmental and Social Performance Requirement 2 as well
as any specific requirements set out in the Environmental and Social Action Plan included in
the legal agreements related to Labour and Working Conditions. It is the Employer’s
responsibility to ensure that third parties and non-employee workers engaged by the
Employer either directly or through contractors or other intermediaries to perform the works
meet these requirements. The specific wordings for PCCs below are provided as guidance to
the Employer to ensure that the Contract will require the Contractor to perform the contract
Works in compliance with these EBRD-specific requirements. The additional wordings below
that are “mandatory”, are required to supplement national law and GCC so as to meet EBRDspecific requirements. The additional wordings below that are “optional” are requirements
that are presumed to be covered by national law and GCC, but which are recommended to be
included in the Contract so as to facilitate the Employer’s monitoring and supervision of the
Contractor’s compliance with the EBRD-specific requirements, and thereby, the Employer’s
reporting to the EBRD to demonstrate its compliance with the EBRD-specific requirements
and legal covenants.
6.1
Engagement of Staff and Labour
Add the words (mandatory):
The Contractor shall document and communicate to all workers their working conditions
and terms of employment, including their entitlement to wages, hours of work, overtime
arrangements and overtime compensation, and any benefits (such as leave for illness,
maternity / paternity or holiday).
The Contractor is encouraged, to the extent practicable and reasonable, to employ
staff and labour with appropriate qualifications and experience from sources within
the Country.
6.2
Rates of Wages and Conditions of Labour
Add the words (mandatory)
Where the Contractor is party to a collective agreement or is otherwise bound by
it, the Contractor shall comply with its terms and conditions.
Deductions from wages for disciplinary measures shall not be permitted nor shall
any deductions from wages not provided for by national law be permitted without the
expressed permission of the worker concerned. Deductions must never lead to an
employee receiving less than the applicable minimum wage.
All workers shall be provided with clearly understandable verbal and written
information about the conditions in respect of wages before they enter employment
and of the particulars of their wages for the pay period concerned each time that
they are paid. Wages shall be paid in legal tender in full, on time and directly to the
workers concerned. The Contractor shall maintain records of all payments and
deductions made.
Add the words: (optional)
The Contractor shall inform the Contractor’s Personnel about their liability to pay
personal income taxes in the Country in respect of such of their salaries, wages,
allowances and any benefits as are subject to tax under the Laws of the Country for
the time being in force, and the Contractor shall perform such duties in regard to
such deductions thereof as may be imposed on him by such Laws.
Part 3 - Section VIII: Particular Conditions of Contract
6.4
87
Labour Laws
Add the words: (mandatory)
The Contractor shall ensure that obligations to staff and labour under labour, health
and safety and social security laws and regulations arising from the employment
relationship shall not be avoided through the use of labour-only contracting
arrangements.
6.5
Working Hours
Add the words: (optional)
Hours of work shall comply with applicable laws, collective agreements, and industry
standards. Overtime shall be voluntary wherever possible, shall not be demanded
on a regular basis and shall always be compensated at a premium rate.
6.6
Facilities for Staff and Labour
Add the words: (mandatory)
Where the Contractor provides living accommodation for workers, the
accommodation shall be appropriate for its location and be clean, safe and, at a
minimum, meet the basic needs of workers. The accommodation shall comply with
national legislation and, where possible, follow international good practice as set out
in the IFC / EBRD Public Guidance
The Contractor shall ensure that workers’ freedom of movement to and from the
accommodation is not unduly restricted.
6.7
Health and Safety
Add the words: (mandatory)
The Contractor shall provide the Employer with a written Health and Safety Policy
and a project-specific Health and Safety Plan before the commencement of work.
The Plan shall include details of the Contractor’s OHS management system,
including the Contractor’s plans to manage and monitor the health and safety risks
associated with all construction work under its control. The Plan shall be made
available to the lenders prior to the start of Construction.
Every contractor shall plan, manage and monitor construction work carried out by
him or under his control in a way which ensures that, so far as is reasonably
practicable, it is carried out without risks to health and safety.
The Contractor shall ensure that a safe and healthy working environment is
provided and that best occupational health and safety practice is promoted. The
Contractor shall take steps to prevent accidents, injury and disease arising in the
course of work by identifying and controlling risks to workers, as far as is reasonably
practicable. The Contractor shall ensure that all staff, labourers and persons entitled
to be on site receive the necessary supervision, information, instruction and training
to do their jobs safely. Where appropriate, the Contractor shall provide appropriate
equipment to minimise health and safety risks and enforce its use. The Contractor
shall put in place arrangements for emergency prevention, preparedness and
response.
Add the words (optional):
Part 3 - Section VIII: Particular Conditions of Contract
88
The Contractor shall develop and maintain throughout the execution of the Contract
preventative measures relating to worker health concerns, including providing
inoculations or other preventative treatments for disease that are either global in
nature or endemic in the project area. The Contractor shall undertake appropriate
measures to reduce the risk of transfer of STDs and HIV/AIDS among the
Contractor’s Personnel and the local community including providing condoms and
information for raising awareness among employees of sexually transmitted disease
and HIV/AIDS.
6.8
Contractor’s Superintendence
Add the words: (mandatory) :
The Contractor shall ensure that a grievance mechanism is available to all workers
and their organisations to use without fear of intimidation or retaliation. The
Contractor will ensure that employees are informed about the grievance mechanism
and that this is part of the training for new employees and information is posted in
relevant areas in the construction camp. The Contractor shall ensure that the
grievance mechanism involves an appropriate level of management and addresses
concerns promptly, using an understandable and transparent process that provides
feedback to those concerned without any retribution.
Add the following provisions 6.12 through to 6.24 (optional):
6.12
Foreign Personnel
The Contractor may bring in to the Country any foreign personnel who are necessary for
the execution of the Works to the extent allowed by the applicable Laws. The Contractor
shall ensure that these personnel are provided with the required residence visas and
work permits. The Employer will, if requested by the Contractor, use his best endeavours
in a timely and expeditious manner to assist the Contractor in obtaining any local, state,
and national or government permission required for bringing in the Contractor’s
personnel.
The Contractor shall be responsible for the return of these personnel to the place where
they were recruited or to their domicile. In the event of the death in the Country of any of
these personnel or members of their families, the Contractor shall similarly be
responsible for making the appropriate arrangements for their return or burial.
6.13
Supply of Foodstuffs
The Contractor shall arrange for the provision of a sufficient supply of suitable, culturally
appropriate food as may be stated in the Specification at reasonable prices for the
Contractor’s Personnel for the purposes of or in connection with the Contract.
6.14
Supply of Water
The Contractor shall, having regard to local conditions, provide on the Site an adequate
supply of drinking and other water for the use of the Contractor’s Personnel.
6.15
Measures against Insect and Pest Nuisance
The Contractor shall at all times take the necessary precautions to protect the
Contractor’s Personnel employed on the Site from insect and pest nuisance, and to
reduce the danger to their health. The Contractor shall comply with all the regulations of
the local health authorities, including use of appropriate insecticide.
Part 3 - Section VIII: Particular Conditions of Contract
6.16
89
Alcoholic Liquor or Drugs
The Contractor shall not, otherwise than in accordance with the Laws of the Country,
import, sell, give, barter or otherwise dispose of any alcoholic liquor or drugs, or permit or
allow importation, sale, gift, barter or disposal thereof by Contractor's Personnel.
6.17
Arms and Ammunition
The Contractor shall not give, barter, or otherwise dispose of, to any person, any arms or
ammunition of any kind, or allow Contractor's Personnel to do so.
6.18
Festivals and Religious Customs
The Contractor shall respect the Country's recognized festivals, days of rest and religious
or other customs.
6.19
Funeral Arrangements
The Contractor shall be responsible, to the extent required by local regulations, for
making any funeral arrangements for any of his local employees who may die while
engaged upon the Works.
6.20
Forced Labour
The Contractor shall not employ forced labour, which consists of any work or service, not
voluntarily performed, that is exacted from an individual under threat of force or penalty,
and includes any kind of involuntary or compulsory labour, such as involuntary prison
labour, indentured labour, bonded labour or similar labour contracting arrangements.
6.21
Child Labour
The Contractor shall not employ children in a manner that is economically exploitative, or
is likely to be hazardous, or to interfere with, the child's education, or to be harmful to the
child's health or physical, mental, spiritual, moral, or social development. Where the
relevant labour laws of the Country have provisions for employment of minors, the
Contractor shall follow those laws applicable to the Contractor. The Contractor shall put
in place a procedure to verify the ages of young workers. Children below the age of 18
years shall not be employed in dangerous work.
6.22
Employment Records of Workers
The Contractor shall keep complete and accurate records of the employment of
labour at the Site. The records shall include the names, ages, genders, hours
worked and wages paid to all workers. These records shall be summarized on a
monthly basis and submitted to the Engineer, and these records shall be available
for inspection by the Bank’s auditors during normal working hours. These records
shall be included in the details to be submitted by the Contractor under Sub-Clause
6.10 [Records of Contractor’s Personnel and Equipment].
6.23
Workers’ Organisations
In countries where the relevant labour laws recognize workers’ rights to form and to
join workers’ organisations of their choosing without interference and to bargain
collectively, the Contractor shall comply with such laws. Where the relevant labour
laws substantially restrict workers’ organisations, the Contractor shall enable
alternative means for the Contractor’s Personnel to express their grievances and
Part 3 - Section VIII: Particular Conditions of Contract
90
protect their rights regarding working conditions and terms of employment. In either
case described above, and where the relevant labour laws are silent, the Contractor
shall not discourage the Contractor’s Personnel from forming or joining workers’
organisations of their choosing or from bargaining collectively, and shall not
discriminate or retaliate against the Contractor’s Personnel who participate, or seek
to participate, in such organisations and bargain collectively. The Contractor shall
engage with such workers’ representatives. Workers’ organisations are expected to
fairly represent the workers in the workforce. The Contractor shall ensure that
workers’ representatives have access to all workplaces necessary to enable them to
carry out their representative functions.
6.24
Non-Discrimination and Equal Opportunity
The Contractor shall not make employment decisions on the basis of personal
characteristics unrelated to inherent job requirements. The Contractor shall base the
employment relationship on the principle of equal opportunity and fair treatment, and
shall not discriminate with respect to aspects of the employment relationship,
including recruitment and hiring, compensation (including wages and benefits),
working conditions and terms of employment, access to training, promotion,
termination of employment or retirement, and discipline. The Contractor shall ensure
equal remuneration for men and women for work of equal value. In countries where
the relevant labour laws provide for non-discrimination in employment, the
Contractor shall comply with such laws. When the relevant labour laws are silent on
non-discrimination in employment, the Contractor shall meet this Sub-Clause’s
requirements. Special measures of protection or assistance to remedy past
discrimination or promote local employment opportunities or selection for a
particular job based on the inherent requirements of the job shall not be deemed
discrimination.
8
Commencement, Delays and Suspension
8.1
Commencement of Works
Replace Sub-clause (optional):
Except as otherwise specified in the Particular Conditions of Contract, the
Commencement Date shall be the date at which the following precedent conditions
have all been fulfilled and the Engineer’s notification recording the agreement of
both Parties on such fulfilment and instructing to commence the Works is received
by the Contractor:
a)
signature of the Contract Agreement by both Parties, and if required, approval of
the Contract by relevant authorities in the Country;
b)
delivery to the Contractor of reasonable evidence of the Employer’s Financial
arrangements (under Sub-Clause 2.4 [Employer’s Financial Arrangements]);
c)
possession of the Site given to the Contractor together with such permission(s)
under (a) of Sub-Clause 1.13 [Compliance with Laws] as required for the
commencement of the Works;
d)
receipt by the Contractor of the Advance Payment under Sub-Clause 14.2
[Advance Payment] provided that the corresponding bank guarantee has been
delivered by the Contractor; and
If the above said Engineer’s instruction is not received by the Contractor
within 180 days from his receipt of the Letter of Acceptance, the Contractor
shall be entitled to terminate the Contract under Sub-Clause 16.2
[Termination by Contractor]
The Contractor shall commence the execution of the Works as soon as is
reasonably practicable after the Commencement Date, and shall then proceed with
the Works with due expedition and without delay.
Part 3 - Section VIII: Particular Conditions of Contract
13
91
Variations and Adjustments
13.7
Adjustments for Changes in Legislation
Add the words (optional):
Notwithstanding the foregoing, the Contractor shall not be entitled to an extension of
time if the relevant delay has already been taken into account in the determination
of a previous extension of time and such Cost shall not be separately paid if the
same shall already have been taken into account in the indexing of any inputs to the
table of adjustment data in accordance with the provisions of Sub-Clause 13.8
[Adjustments for Changes in Cost].
14
Contract Price and Payment
14.2
Advance Payment
Add the words (mandatory):
The advance payment guarantee shall be issued by a reputable bank or financial
institution selected by the Contractor and shall be in the form annexed to the
Particular Conditions or in another form approved by the Employer.
14.7
Payment
Replace Sub-clauses (optional):
(b)
the amount certified in each Interim Payment Certificate within 56 days after
the Engineer receives the Statement and supporting documents or, at a time
when the Bank’s loan or credit (from which part of the payments to the
Contractor is being made) is suspended, the amount shown on any
statement submitted by the Contractor within 14 days after such statement is
submitted, any discrepancy being rectified in the next payment to the
Contractor; and
(c)
the amount certified in the Final Payment Certificate within 56 days after the
Employer receives this Payment Certificate or, at a time when the Bank’s
loan or credit (from which part of the payments to the Contractor is being
made) is suspended, the undisputed amount shown in the Final Statement
within 56 days after the date of notification of the suspension in accordance
with Sub-Clause 16.2.
Replace Sub-clauses (mandatory):
The Contractor shall notify to the Employer, prior to any payment under the
Contract, details of the bank account (s) nominated by the Contractor for
payments for the currency or currencies specified in the Contract. All payments
of the amounts due to the Contractor shall be made into the bank account (s)
thus nominated by the Contractor.
14.9
Payment of Retention Money
Add the words (optional):
When the Taking-Over Certificate has been issued for the Works and the first half of
the Retention Money has been certified for payment by the Engineer, the Contractor
shall be entitled to substitute a guarantee, in the form annexed to these Particular
Conditions or in another form approved by the Employer and provided by an entity
approved by the Employer and issued by a reputable bank or financial institution
selected by the Contractor, for the second half of the Retention Money. The
Contractor shall ensure that the guarantee is in the amounts and currencies of the
Part 3 - Section VIII: Particular Conditions of Contract
92
second half of the Retention Money and is valid and enforceable until the Contractor
has executed and completed the Works and remedied any defects, as specified for
the Performance Security in Sub-Clause 4.2. On receipt by the Employer of the
required guarantee, the Engineer shall certify and the Employer shall pay the
second half of the Retention Money. The release of the second half of the Retention
Money against a guarantee shall then be in lieu of the release under the second
paragraph of this Sub-Clause. The Employer shall return the guarantee to the
Contractor within 21 days after receiving a copy of the Performance Certificate.
If the Performance Security required under Sub-Clause 4.2 is in the form of a
demand guarantee, and the amount guaranteed under it when the Taking-Over
Certificate is issued is more than half of the Retention Money, then the Retention
Money guarantee will not be required. If the amount guaranteed under the
Performance Security when the Taking-Over Certificate is issued is less than half of
the Retention Money, the Retention Money guarantee will only be required for the
difference between half of the Retention Money and the amount guaranteed under
the Performance Security.
14.15
Option A -
Currencies of Payment
The currency of the Contract and the currency for payment shall be a single
currency
Replace Sub-clause:
14.15
Option B -
Sub-clause 14.15 is inapplicable. The Contract Price shall be paid in [ insert the
named currency of payment ]
The currency of the Contract shall be the local currency and payments to be
made in more the one currency
Add the words:
14.15
15
The Contract Price is expressed in Local Currency. The Contract Price shall be paid
in the currencies stated in the Appendix to Tender.
Termination by Employer
The Bank requires that clients (including beneficiaries of Bank-financed operations), as well
as tenderers, suppliers, contractors, subcontractors, concessionaires and consultants under
Bank-financed contracts, observe the highest standard of transparency and integrity during
the procurement, execution and implementation of such contracts. Any occurrence, or
suspected occurrence, of a Prohibited Practice in the procurement, award or implementation
of a Bank-financed contract in the context of a Bank Project shall be dealt with in accordance
with the provisions of the Bank’s Enforcement Policy and Procedures.
Add the following Sub-clause (Mandatory):
15.6
Prohibited Practices
If the Employer determines, based on reasonable evidence, that the Contractor has
engaged in prohibited practices, in competing for or in executing the Contract, then
the Employer may, after giving 14 days notice to the Contractor, terminate the
Contract and expel him from the Site, and the provisions of Clause 15 shall apply as
Part 3 - Section VIII: Particular Conditions of Contract
93
if such termination had been made under Sub-Clause 15.2.
Should any employee or subcontractor of the Contractor be determined, based on
reasonable evidence, to have engaged in a prohibited practice during the execution
of the work then that employee shall be removed in accordance with Sub-Clause 6.9
[Contractor’s Personnel].
For the purpose of this Sub-Clause, the terms set forth below are defined as
prohibited practices:
(a) “coercive practice” means impairing or harming, or threatening to impair or
harm, directly or indirectly, any party or the property of the party to influence
improperly the actions of a party.
(b) “collusive practice” means an arrangement between two or more parties
designed to achieve an improper purpose, including influencing improperly the
actions of another party.
(c) “corrupt practice” means the offering, giving, receiving, or soliciting, directly or
indirectly, anything of value to influence improperly the actions of another party.
(d) “fraudulent practice” means any act or omission, including a misrepresentation,
that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit or to avoid an obligation.
16
Suspension and Termination by Contractor
16.2
17
Add the following Sub-clauses (optional):
Termination by Contractor
(h)
In the event the Bank suspends the loan or credit from which part or whole
of the payments to the Contractor are being made, if the Contractor has
not received the sums due to him upon expiration of the 14 days referred
to in Sub-Clause 14.7 [Payment] for payments under Interim Payment
certificates, the Contractor may, without prejudice to the Contractor's
entitlement to financing charges under Sub-Clause 14.8 [Delayed
Payment], take one of the following actions, namely (i) suspend work or
reduce the rate of work under Sub-Clause 16.1 above, or (ii) terminate
under the Contract by giving notice to the Employer, with a copy to the
Engineer, such termination to take effect 14 days after the giving of the
notice, or
(i)
the Contractor does not receive the Engineer’s instruction recording the
agreement of both Parties on the fulfilment of the conditions for the
Commencement of Works under Sub-Clause 8.1 [Commencement of
Works].
Risk and Responsibility
Add the following Sub-clauses (optional):
17.7
Use of Employer’s Accommodation/Facilities
The Contractor shall take full responsibility for the care of the Employer provided
accommodation and facilities, if any, as detailed in the Specification, from the
respective dates of hand-over to the Contractor until cessation of occupation (where
hand-over or cessation of occupation may take place after the date stated in the
Taking-Over Certificate for the Works).
If any loss or damage happens to any of the above items while the Contractor is
responsible for their care arising from any cause whatsoever other than those for
which the Employer is liable, the Contractor shall, at his own cost, rectify the loss or
damage to the satisfaction of the Engineer.
Part 3 - Section VIII: Particular Conditions of Contract
20.5
94
Amicable Settlement
Replace Sub-clause (optional):
Where a Notice of Dissatisfaction has been given under Sub-Clause 20.4 above,
both Parties shall attempt to settle the dispute amicably before the commencement
of arbitration. However, unless both Parties agree otherwise, the Party giving a
Notice of Dissatisfaction in accordance with Sub-Clause 20.4 above should move to
commence arbitration after the fifty-sixth day from the day on which a Notice of
Dissatisfaction was given, even if no attempt at an amicable settlement has been
made.
20.6
Arbitration
Replace Sub-clause (optional):
Any dispute between the Parties arising out of or in connection with the Contract
not settled amicably in accordance with Sub-Clause 20.5 above and in respect of
which the DAB’s decision (if any) has not become final and binding shall be finally
settled by arbitration. Arbitration shall be conducted as follows:
(a)
if the Contract is with foreign contractors, international arbitration(i)with
proceedings administered by the arbitration institution designated in the
Appendix to Tender, and conducted under the rules of arbitration of such
institution; or, if so specified in the Appendix to Tender, (ii) international
arbitration in accordance with the arbitration rules of the United nations
Commission on International Trade Law (UNCITRAL); or (iii) if neither an
arbitration institution nor UNCITRAL arbitration rules be specified in the
Appendix to Tender, with proceedings administered by the International
Chamber of Commerce (ICC) and conducted under the ICC Rules of
Arbitration; by one or more arbitrators appointed in accordance with said
arbitration rules.
The place of arbitration shall be the neutral location specified in the Appendix to
Tender, and the arbitration shall be conducted in the language for
communications defined in Sub-Clause 1.4 [Law and Language]
(b)
if the Contract is with domestic contractors, arbitration with proceedings
conducted in accordance with the laws of the Employer’s country.
The arbitrators shall have full power to open up, review and revise any certificate,
determination, instruction, opinion or valuation of the Engineer, and any decision of
the DAB, relevant to the dispute. Nothing shall disqualify representatives of the
Parties and the Engineer from being called as a witness and giving evidence before
the arbitrators on any matter whatsoever relevant to the dispute.
Neither Party shall be limited in the proceedings before the arbitrators to the
evidence or arguments previously put before the DAB to obtain its decision, or to
the reasons for dissatisfaction given in its Notice of Dissatisfaction. Any decision of
the DAB shall be admissible in evidence in the arbitration.
Arbitration may be commenced prior to or after completion of the Works. The
obligations of the Parties, the Engineer and the DAB shall not be altered by reason
of any arbitration being conducted during the progress of the Works.
Part 3 – Section IX: Annex to the PCC - Contract Forms
95
Section IX: Annex to the PCC –
Contract Forms
This Section contains Contract Forms which, once completed, will constitute part of the Contract.
The forms for Contract Agreement, Performance Security and Advance Payment Security and
Retention Money Security, when required, shall only be completed by the successful Tenderer, after
contract award
Part 3 – Section IX: Annex to the PCC - Contract Forms
96
LETTER OF ACCEPTANCE
[on letterhead paper of the Employer]
. . . . . . . [date]. . . . . . .
To: [name and address of the Contractor] . . . . . . . . . .
Subject: [Notification of Award Contract No]. . . . . . . . . . .
This is to notify you that your Tender dated . . . . [Insert date] . . . . for execution of the . . . . . . . . .
.[insert name of the contract and identification number] . . . . . . . . . . for the amount of . . . . . . . .
[insert amount (s) in figures and words and name(s) of currency(ies)], as corrected and
modified in accordance with the Instructions to Tenderers is hereby accepted by us.
You are requested to furnish the Performance Security in the amount of [insert amount (s) in
figures and words and name(s) of currency(ies)] within 28 days in accordance with the
Conditions of Contract, using for that purpose the Performance Security Form included in Section IX
(Contract Forms) of the Tender Document.
Authorised Signature: ....................................................................................................................................
Name and Title of Signatory: .........................................................................................................................
Name of Agency: ...........................................................................................................................................
Attachment: Contract Agreement
Part 3 – Section IX: Annex to the PCC - Contract Forms
97
CONTRACT AGREEMENT
THIS CONTRACT AGREEMENT is made on the [ insert:
[ insert: year ].
number ] day of
[ insert:
month ],
BETWEEN
(1)
[insert complete name of the Employer, a [insert description of type of legal entity, for
example, an agency of the Ministry of .... of the Government of {insert name of Country
of the Employer}, or corporation incorporated under the laws of { insert name of Country
of the Employer } ] and having its principal place of business at [ insert address of the
Employer ] (hereinafter called “the Employer”),
and
(2)
[insert name of the Contractor, a corporation incorporated under the laws of [insert:
country of Contractor] and having its principal place of business at [insert: address of
Contractor] (hereinafter called “the Contractor”).
WHEREAS the Employer invited tenders for the execution of the Works, described as [insert brief
description of the Works] and has accepted a Tender by the Contractor for the execution and
completion of these Works and the remedying of any defects therein, and the Employer agrees to
pay the Contractor the Contract Price or such other sum as may become payable under the
provisions of the Contract at the times and in the manner prescribed by the Contract.
The Employer and the Contractor agree as follows:
1. In this Agreement words and expressions shall have the same meanings as are respectively
assigned to them in the Contract documents referred to.
2. The following documents shall be deemed to form and be read and construed as part of this
Agreement. This Agreement shall prevail over all other Contract documents.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
the Letter of Acceptance
the Tender
the Addenda No.s . . . . . [insert addenda numbers if any]. . . . .
the Particular Conditions
the General Conditions
the Specification
the Drawings; and
the completed Schedules,
3. In consideration of the payments to be made by the Employer to the Contractor as indicated
in this Agreement, the Contractor hereby covenants with the Employer to execute the Works and
to remedy defects therein in conformity in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay the Contractor in consideration of the execution and
completion of the Works and the remedying of defects therein, the Contract Price or such other sum
as may become payable under the provisions of the Contract at the times and in the manner
prescribed by the Contract.
Agreement to be executed in accordance with the laws of . . . . . [name of the borrowing country] . . .
. . on the day, month and year indicated above.
Part 3 – Section IX: Annex to the PCC - Contract Forms
98
Signed by: ___________________________
Signed by: ___________________________
For and on behalf of the Employer in the
presence of __________________________
for and on behalf the Contractor in the presence
of __________________________
Witness:_____________________________
Name: ______________________________
Address:_____________________________
Date: _______________________________
Witness:_____________________________
Name: ______________________________
Address:_____________________________
Date: _______________________________
Part 3 – Section IX: Annex to the PCC - Contract Forms
99
PERFORMANCE SECURITY
[The bank, as requested by the successful Tenderer, shall fill in this form in accordance with the
instructions indicated. All italicized text is for guidance on how to prepare this demand guarantee and
shall be deleted from the final document.]
Date: [insert date (as day, month, and year)]
Tendering Process Reference: [insert no. and title of tendering process]
Bank’s Branch or Office: [insert complete name of Guarantor]
Beneficiary: [insert complete name of Employer]
PERFORMANCE GUARANTEE No.:
[insert Performance Guarantee number]
We have been informed that [insert complete name of the Contractor (hereinafter called "the
Contractor") has entered into Contract No. [insert number] dated [insert day and month], [insert year]
with you, for the [ execution and completion of [description of the Works]] and the remedying of any
defects therein (hereinafter called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract, a Performance
Guarantee is required.
At the request of the Contractor, we hereby irrevocably undertake to pay you any sum(s) not
1
exceeding [insert amount(s ) in figures and words] such sum being payable in the types and
proportions of currencies in which the Contract Price is payable, upon receipt by us of your first
demand in writing declaring the Contractor to be in default under the Contract, without cavil or
argument, or your needing to prove or to show grounds or reasons for your demand or the sum
specified therein.
2
This Guarantee shall expire no later than the [insert number] day of [insert month] [insert year], and
any demand for payment under it must be received by us at this office on or before that date. This
guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
. . . . . . . . . . . . . . [Seal of Bank and Signature(s)]. . . . . . . . . . . . ..
.................................................................................................................................................................
1
The issuing bank shall insert the amount(s) specified in the PCC and denominated, as specified in the
PCC, either in the currency(ies) of the Contract or a freely convertible currency acceptable to the
Employer.
2
Insert the date twenty-eight days after the expected completion date. The Employer should note that in
the event of an extension of the time for completion of the Contract, the Employer would need to request
an extension of this guarantee from the Guarantor. Such request must be in writing and must be made
prior to the expiration date established in the guarantee. In preparing this guarantee, the Employer might
consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor
agrees to a one-time extension of this guarantee for a period not to exceed [six months][one year], in
response to the Employer’s written request for such extension, such request to be presented to the
Guarantor before the expiry of the guarantee.”]
Part 3 – Section IX: Annex to the PCC - Contract Forms
100
ADVANCE PAYMENT SECURITY
[The bank, as requested by the successful Tenderer, shall fill in this form in accordance with the
instructions indicated. All italicized text is for guidance on how to prepare this demand guarantee and
shall be deleted from the final document.]
Date: [insert date (as day, month, and year)]
Tendering Process Reference: [insert no. and title of tendering process]
Bank’s Branch or Office: [insert complete name of Guarantor]
Beneficiary: [insert complete name of Employer]
ADVANCE PAYMENT GUARANTEE No.: [insert Advance Payment Guarantee no.]
We have been informed that . . . . . [name of the Contractor]. . . . . (hereinafter called “the
Contractor”) has entered into Contract No. . . . . . [reference number of the Contract]. . . . . dated . .
. . . . . .with you, for the execution of . . . . . . [name of contract and brief description of Works]
(hereinafter called “the Contract”).
Furthermore, we understand that, according to the Conditions of the Contract, an advance payment
1
in the sum . . . . . [name of the currency and amount in figures and words] is to be made against an
advance payment guarantee.
At the request of the Contractor, we …. [name of the Bank] hereby irrevocably undertake to pay you
any sum or sums not exceeding in total an amount of . . . . . [name of the currency and amount in
figures and words]. . . . . upon receipt by us of your first demand in writing accompanied by a written
statement stating that the Contractor is in breach of its obligation under the Contract because the
Contractor used the advance payment for purposes other than [… performing his obligations under
the Contract or the costs of mobilisation in respect of the Works].
It is a condition for any claim and payment under this guarantee to be made that the advance
payment referred to above must have been received by the Contractor on its account number . . . . .
[Contractor’s account number]. . . . . at . . . . . [name and address of the Bank]. . . .
The maximum amount of this guarantee shall be progressively reduced by the amount of the
advance payment repaid by the Contractor as indicated in copies of interim statements or payment
certificates which shall be presented to us. This guarantee shall expire, at the latest, upon our
receipt of a copy of the interim payment certificate indicating that eighty (80) percent of the Contract
2
Price has been certified for payment, or on the [insert number] day of [insert month] [insert year]. ,
whichever is earlier. Consequently, any demand for payment under this guarantee must be received
by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
. . . . . . . . . . . . . . [Seal of Bank and Signature(s)]. . . . . . . . . . . . ..
1
The Guarantor shall insert an amount representing the amount of the advance payment denominated
either in the currency(ies) of the advance payment as specified in the Contract, or in a freely convertible
currency acceptable to the Employer
2
Insert the expected expiration date of the Time for Completion. The Employer should note that in the
event of an extension of the time for completion of the Contract, the Employer would need to request an
extension of this guarantee from the Guarantor. Such request must be in writing and must be made prior
to the expiration date established in the guarantee. In preparing this guarantee, the Employer might
consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor
agrees to a one-time extension of this guarantee for a period not to exceed [insert number of months], in
response to the Employer’s written request for such extension, such request to be presented to the
Guarantor before the expiry of the guarantee.]
Part 3 – Section IX: Annex to the PCC - Contract Forms
101
RETENTION MONEY SECURITY
[The bank, as requested by the successful Tenderer, shall fill in this form in accordance with the
instructions indicated. All italicized text is for guidance on how to prepare this demand guarantee and
shall be deleted from the final document.]
Date: [insert date (as day, month, and year)]
Tendering Process Reference: [insert no. and title of tendering process]
Bank’s Branch or Office: [insert complete name of Guarantor]
Beneficiary: [insert complete name of Employer]
RETENTION MONEY GUARANTEE No.:
_________________
We have been informed that ________________ [name of Contractor] (hereinafter called "the
Contractor") has entered into Contract No. _____________ [reference number of the contract] dated
____________ with you, for the execution of _____________________ [name of contract and brief
description of Works] (hereinafter called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract, when the Taking-Over
Certificate has been issued for the Works and the first half of the Retention Money has been certified
for payment, payment of [insert the second half of the Retention Money or if the amount guaranteed
under the Performance Guarantee when the Taking-Over Certificate is issued is less than half of the
Retention Money, the difference between half of the Retention Money and the amount guaranteed
under the Performance Security] is to be made against a Retention Money guarantee.
At the request of the Contractor, we _______________ [name of Bank] hereby irrevocably
undertake to pay you any sum or sums not exceeding in total an amount of ___________ [amount in
1
figures] (
) [amount in words] upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Contractor is in breach of its obligation under
the Contract.
It is a condition for any claim and payment under this guarantee to be made that the payment of the
second half of the Retention Money referred to above must have been received by the Contractor on
its account number ___________ at _________________ [name and address of Bank].
This guarantee shall expire, at the latest, 21 days after the date when the Employer has received a
copy of the Performance Certificate issued by the Engineer. Consequently, any demand for
payment under this guarantee must be received by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
. . . . . . . . . . . . . . [Seal of Bank and Signature(s)]. . . . . . . . . . . . ..
1
The Guarantor shall insert an amount representing the amount of the second half of the Retention Money
or, if the amount guaranteed under the Performance Guarantee when the Taking-Over Certificate is
issued is less than half of the Retention Money, the difference between half of the Retention Money and
the amount guaranteed under the Performance Security and denominated either in the currency(ies) of
the second half of the Retention Money as specified in the Contract, or in a freely convertible currency
acceptable to the Employer.