Professional Documents
Culture Documents
Approved by Npa: Procurement of Works
Approved by Npa: Procurement of Works
ICTAD/SBD/03
VOLUME 1
(for Bidding purposes)
of
PROCUREMENT OF WORKS
MINOR CONTRACTS
ICTAD/SBD/03
Institute
Section -1
Notes:
Bidders are advised to consider the information printed in blue colour in the
document as a checklist, when preparing their bids. However, it is the
responsibility of the bidders to comply with all the requirements given in the
bidding document.
Table of Clauses
INSTRUCTIONS TO BIDDERS
A.
General, 9
D.
Submission of Bids, 13
1.
Scope of Bid, 9
19.
2.
Source of Funds. 9
20.
3.
4.
21.
Late Bids. 14
5.
6.
7.
Bidder, 9
One Bid per Bidder, 9
Cost of Bidding, 10
Site Visit, 10
E.
22.
Bid Opening, 14
B.
8.
9.
10.
Bidding Documents, 10
23.
Process to be Confidential, 14
24.
Clarification of Bids. 14
25.
of Responsiveness, 14
26.
Correction of Errors, 15
27.
C.
Preparation of Bids,//
F.
Award of Contract/6
Language of Bid, //
Documents Comprising the Bid, //
28.
Award of Criteria, 16
12
29.
13
Bid Prices, //
14
30.
31.
32.
33.
15
16
Declaration, 12
Pre-Bid Meeting, 13
Format and Signing of Bid, 13
Section
Instructions to Bidders
Instructions to Bidders
A
1. Scope of Bid
General
2. Source of Funds
3.
Ethics, Fraud
and Corruption
Parties
associated
with
procurement
actions,
namely,
suppliers/contractors and officials shall ensure that they maintain strict
confidentiality throughout the process;
Officials shall refrain from receiving any personal gain from any
Procurement Action. No gifts or inducement shall be accepted.
Suppliers/contractors are liable to be disqualified from the bidding
process if found offering any gift or inducement which may have an
effect of influencing a decision or impairing the objectivity of an
official.
The attention of the bidders is also drawn to the Sub-Clause 11.1 of the
Eligibility and
Qualification of
the Bidder
For domestic bidders, to qualify for the contract award the successful
bidder should have been registered and hold a valid registration from
^-the^deadline for submission of bids until the expiry of the original
validity of the bid, with the Institute for Construction Training and
All bidders shall meet (any other) requirement given in the Schedule.
5.
Bidder
Words appearing in bold inthe text ofthese ITB sub-clauses are defined in Clause 1.1 (Definitions) ofthe Section 3 Conditions ofContract.
6.
Cost of Bidding
Bidder shall bear all costs associated with the preparation and
submission of its bid;
Site Visit
to obtain all information that may be necessary for preparing the bid
and entering into a Contract for construction of the Works;
B.
8.
Content of
Bidding
Bidding Documents
Bidding documents consists of two volumes stated below and shall be read
in conjunction with any addenda issued in accordance with Clause 10:
Documents
Volume 1 -
Volume 2
Section 5 - Schedule
Section 6 - Specifications
Section 7 - Bills of Quantities
/ Section^ 8 - Drawings
9.
Bidding
Documents
Clarification of
_
10_
Institute for Construction Training and Development (ICTAD)
10. Amendment of
Bidding
Documents
C. Preparation of Bids
11. Language of Bid
The bid as well as all correspondence and documents relating to the bid
exchanged by the bidder and the Employer, shall be written in English
language.
12. Documents
Comprising the
Bid
Section 5 - Schedule;
(f).
Section 8 - Drawings;
. (b)
13. Bid Prices
Iif
'MFhe' bidder shall fill-in rates and prices for all items of the Works
described in the Bills of Quantities;
Items for which no rate or price is entered by the bidder will not be
paid for by the Employer when executed and shall be deemed
covered by the other rates and prices in the Bills of Quantities;
All duties, taxes, and other levies payable by the Contractor under
the Contract, or for any other cause, as of the date 14 Days prior to
the deadline for submission of bids, shall be included in the rates,
prices, and total Bid price submitted by the bidder;
Section
Instructions to Bidders
VAT shall not be included in the rates or prices but shall be shown
separately at the space provided in the BOQ;
Bids shall remain valid for the period stipulated in the Invitation for
Bids after the date of bid submission specified in Clause 20;
15. Period of
Validity of Bids
The Bidder shall furnish as part of its Bid, a bid security or a bid-securing
declaration as specified in the Schedule in the format given in the
Declaration
Section 9.
The bid security shall be in the amount specified in the Schedule and
shall be valid until the date specified in the Schedule, from an agency
acceptable to the Employer.
-hythe Employer.
(a)
\2_
(b)
if the bidder does not accept the correction of its bid price
pursuant to ITB Sub-Clause 26.
(c)
The bidder shall prepare one original of the documents comprising the
Signing of Bid
Submission of Bids
The bidder shall seal the original and the copy of the bid in two inner
separate envelopes and one outer envelope, duly marking the inner
envelopes as "ORIGINAL" and "COPY";
Bids
13
Any bid received by the Employer after the deadline for submission of
bids will be returned unopened to the bidder.
E.
22. Bid Opening
The Employer will open the bids, in the presence of the bidders'
The bidders' names, the bid prices, the total amount of each bid, any
discounts, and such other details as the Employer may consider
appropriate, will be announced by the Employer at the opening;
The Employer shall reseal all the opened envelopes in the presence of
the bidders representatives.
24. Clarification of
Bids
25. Examination of
Bids and
Determination of
Responsiveness
14
Errors
(a)
(b)
where there is a discrepancy between the unit rate and the line
item total resulting from multiplying the unit rate by the
quantity, the unit rate as quoted will govern, unless in the
opinion of the Employer there is an obviously gross
misplacement of the decimal point in the unit rate, in which ,
case the line item total as quoted will govern, and the unit rate
will be corrected;
(c)
(d)
"
if the bidder does not accept the corrected amount of bid, its
bid shall be rejected and the bid security may be forfeited
~"*\ or bid-securing declaration executed in accordance with
\ Clause 16.
Comparison of
SfflD)
Employer will evaluate and compare only the bids determined to be
..substantially responsive;
Bids
In evaluating the bids, Employer will determine for each bid the
Evaluated Bid Price by adjusting the Bid Price as follows:
(a)
(b)
(c)
15
(d)
or
deviation.
F.
28. Award Criteria
Award of Contract
Subject to Clause 29, Employer will award the Contract to the bidder
whose bid has been determined to be substantially responsive to the
bidding documents and who has offered the lowest evaluated Bid Price,
provided that such bidder has been determined to be:
(a)
(b)
Contract;
""-*'TKe Employer shall notify the successful bidder the date, time and
venue for the signing of the agreement;
16
SECOND EDITION, JANUARY 2007
33. Adjudicator
with the nomination, the bidder shall state so in the bid, in which
ICT/AiD/
Section -2
Letter ofAcceptance
Agreement
Performance Security
19
Note:
The bidders are advisedto use the information printedin blue in this volume as a check
list when submitting the bid. Failure to non compliance with any of them may be a
reason for rejection ofthe Bid.
Bidders should not complete the Form ofAgreement at the time ofpreparation
ofbids.
The successful bidder will be required to sign the Form ofAgreement, after the
award ofcontract.
The Letter ofAcceptance will be the basisfor formation ofthe Contract as described in Clause
30 of the Instructions to Bidders. This Form of Letter of Acceptance should befilled in and
sent to the successful bidder only after evaluation of Bids and after obtaining approvalfrom
the relevant authority.
To:
Contract).
./'.
Name of Agency :
// multiple currencies are involved indicate amounts under each currency separatedwith the word 'and'between them
Delete "corrected in accordance with ITB and/or " or "and/or modified by a Memorandum of Understanding", if not
applicable
FORM OF AGREEMENT
[day] of
[month] 200
[year], between
[name and address of Employer] (hereinafter called
and referred to as "the Employer"), of the one part, and
[name and address of Contractor} (hereinafter called and referred to as "the Contractor"), of the
other part:
1.
In this Agreement words and expressions shall have the same meanings as are respectivelyassigned to them in the Contract hereinafter referred to.
2.
3.
The Employer hereby covenants to pay the Contractor in consideration of the execute and
complete the Works and remedy any 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.
In Witness whereof the parties hereto have caused this Agreement to be executed the day and year
aforementioned, in accordance with laws of Sri Lanka.
COMMON SEAL
COMMON SEAL
I\ mm)
u^-'1J"""l-J j
Witnesses :
1.
vv
yx
Signature
Address
2.
Signature
Address
24
SECOND EDITION, JANUARY 2007
(Unconditional)
[name of Contractor]
Furthermore, we understand that, according to the conditions of the Contract, a performance guarantee
is required.
\ UKU UlrvLJ
[signature(s)]
25
Beneficiary:
Date:
Furthermore, we understand that, according to the conditions of the Contract, an advance payment in
the sum [amount in figures] (
) [amount in
words] is to be made against an advance payment guarantee.
At the request of the Contractor, we
- [name of issuing agency]
hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of
[amount in figures] (
receipt by us of your first demand in writing accompanied by a written statement stating that the
Contractor is in breach of its obligation in repayment of the advance payment under the Contract.
The maximum amount of this guarantee shall be progressively reduced by the amount of the advance
payment repaid by the Contractor.
Consequently, any demand fpjumentt under this guarantee must be received by us at this office on
or before that date.
! (CHT/iPJ
\
[signature(s)]
The Guarantor shall insert an amount representing the amount ofthe advance payment and denominated either in the
currency(ies) ofthe advance payment as specified in the Contract.
26
[Issuing Agency's
Beneficiary:
[Name andAddress
q/Employery
Date:
[name of Contractor]
[reference
[name of
Furthermore, we understand that, according to the conditions of the Contract, when the works have
being taken over and the first half of the Retention Money has been certified for payment, payment of
the second half of the Retention Money may be made against a Retention Money guarantee.
At the request of the Contractor, we
[name of agencyj
hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of
[amount in figures] (
) [amount in words5]
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 has not attended to
the defects in accordance with the Contract..
[signature(s)]
(mm)
'The Guarantor shall insert an amount representing the amount ofthe second halfofthe Retention Money
27
Section -3
Conditions of Contract
Conditions ofContract shall be read in conjunction with the
Section 5 - Schedule in Volume 2, which shall take precedence over the
Conditions of Contract
29
Table of Clauses
CONDITIONS OF CONTRACT
1.0
General Provisions
9.0
1.1 Definitions, 33
9.1
Right to Vary, 38
1.2 Interpretation, 34
1.3 Priority of Documents, 34
1.5 Communications, 35
9.2
9.3
9.4
9.5
Valuation of Variations, 38
Early Warning, 38
Right to Ciaim, 38
Variation and Claim Procedure, 39
1.4 Law, 35
2.1
2.2
2.3
2.4
Execution of Contract, 35
Provision of Site, 35
Engineer's Instructions, 35
Approvals, 35
4.1
4.2
4.3
4.4
General Obligations, 35
Contractor's Representative, 35
Subcontracting, 35
Performance Security, 36
11.1
11.2
11.3
11.4
6.1
6.2
6.3
6.4
Default by Contractor, 44
Default by Employer, 45
Insolvency, 45
Payment upon Termination, 45
13.1 Insurance
14.3 Arbitration, 49
31
Conditions of Contract
1.0
1.1 Definitions
General Provisions
In the Contract as defined below, the words and expressions defined shall
have the following meanings assigned to them, except where the context
requires otherwise:
The Contract
1.1.
1.1.2
in the Letter of
1.1.4
Acceptance.
Persons
1.1.5
1.1.6
1.1.7
.li
1.1.9
"Contractor" means the person(s) who's Bid to carry out the Works
" nas been accepted bythe Employer and named inthe Agreement.
\
iifi-j
with
Sub-Clause
14.2
for determination
of the
33
SECOND EDITION, JANUARY 2007
1.1.12
"Start Date" means the date 7 Days after the issue of Letter of
Acceptance or any other date agreed between the Employer and
Periods
Contractor.
1.1.13
1.1.14
1.1.15
Other Definitions
1.1.16
1.1.17
1.1.18
1.1.19
1.1.20
1.1.21
1.1.22
1.2 Interpretation
ramzations;
1.3 Priority of
Documents
5.
Schedule
6.
7.
8.
9.
the Specifications.
the Drawings.
the Bills of Quantities.
1.4 Law
1.5 Communications
2.0
2.1
Execution of
Contract
2.2 Provision
of Site
2.3 Engineer's
Instructions
2.4 Approvals
The Employer shall ensure that the Contract is executed within 14 Days
after the date of the Letter of Acceptance.
The Employer shall provide the Site and right of access to Site before the
Start Date.
The Contractor shall comply with all instructions given by the Engineer in
respect of the Works including the suspension of all or part of the Works.
No approval or consent or absence of comment by the Employer or the
Engineer shall affect the Contractor's obligations.
3.0
3.1 Engineer's
Decisions
Obligations
The Engineer
4.1 General
The Employer
The Contractor
All Materials and Plant on Site shall be deemed to be the property of the
Employer.
4.2 Contractor's
Representative
The Contractor shall submit to the Employer for consent the name and
particulars of the person authorized to receive instructions on behalf of the
Contractor.
4.3 Subcontracting
4.4
Performance
Security
The Contractor shall deliver to the Employer within 14 Days of the Letter
of Acceptance a Performance Security:
5.0
5.1 Employer's
Liabilities / Risks
any operation of the forces of nature affecting the Site and/or the
Works, which was unforeseeable or against which an experienced
contractor could not reasonably have been expected to take
precautions;
Force Majeure;
a suspension unless it is attributable to the Contractor's failure;
any failure of the Employer;
For purposes of this sub clause, Change in Law means the enactment
of any new Law or a change to existing legislation and the repeal of,
or modification of existing laws of the country, including any
regulations made, and/or directives issued thereunder, or a change in
the judicial interpretation and the application of any Law by a
competent Court as compared to such interpretation or application by a
Court prior to the date of this agreement, and which relates to taxation
losses arising out of the Employer's right to have the permanent work
executed on, over, under, in or through any land, and to occupy this
land for the permanent work; and
6.0
6.1 Execution of the
Works
The Contractor shall submit a programme for the Works to the Engineer:
H within 14 Days from the Start Date;
7.0
7.1 Completion
Taking-Over
The Contractor may notify the Engineer when he considers that the Works
are completed.
7.2 Taking-Over
/' nfcThe Engineer shall notify the Contractor when he considers that the
Notice
\
Alternatively, the Engineer may notify the Contractor that the Works,
although not fully complete, are ready for taking over, stating the date
accordingly;
The Employer shall take over the Works upon the issue of this notice;
The Contractor shall promptly complete any outstanding work and,
subject to Clause 8.0 clear the Site.
8.0
8.1 Remedying
Defects
Remedying Defects
The Engineer may at any time prior to the expiry of the period stated
in the Schedule calculated from the date of Taking-Over Notice under
Sub-Clause 7.2 notify the Contractor of any defects or outstanding
work;
37
SECOND EDITION, JANUARY 2007
9.2 Valuation of
Variations
/
9.3 Early Warning
considers appropriate.
f Wf}(fiB )
38
SECOND EDITION, JANUARY 2007
Claim Procedure
The Engineer shall check and if possible agree the value. In the
absence of agreement, the Engineer shall determine the value.
10.0
10.1 Monthly
Statements
a)
b)
c)
10.2 Valuation of
showing the value of the work executed less the cumulative amount
certified previously;
the Works
10.3 Interim
Payments
39
10.4 Payment at
Completion
The Contractor shall supply the Engineer with a detailed account of the
amount that the Contractor considers payable under the Contract within 21
Days after issuing of Taking Over Notice as per Sub-Clause 7.2. The
Engineer shall certify any payment that is due to the Contractor within 42
Days of receiving the Contractor's account if it is correct and complete. If it
is not, the Engineer shall issue within 14 Days a schedule that states the
scope of the corrections or additions that are necessary. If the account is still
unsatisfactory after it has been resubmitted, the Engineer shall decide on the
amount payable to the Contractor and issue a payment certificate. The
Employer shall pay the contractor the amount certified within 28 Days of
the issue of Engineer's certification on the amount due. The contractor will
be entitled to interest rate and in the same manner as stipulated in Clause
10.9 if payments as stipulated herein are delayed.
10.5 Payment of
First Half of
One half of the retention shall be paid by the Employer to the Contractor
within 14 Days after issuing the notice under Sub-Clause 7.2.
Retention
10.6 Payment of
Second Half of
Retention
Either:
After Taking Over of the completed Works in accordance with Sub clause
7.2 , and Contractor submitting a gurantee in the format given in Section 2
and valid up to 28 Days beyond the Defects Liability Period, from an
agency acceptable to the Employer.
10.7 Final Payment
1% FA '28/ Days after the submission of this final account, the Engineer
shall certify the amount due to the Contractor;
If the Engineer disagrees with any part of the Contractor's final account,
he shall specify his reasons for disagreement when making certification;
Employer shall pay to the Contractor the amount due, within 21 Days of
receipt of the certificate from the Engineer.
10.8 Currency
40
10.9 Delayed
Payment
Interest shall be calculated from the date by which the payment should
have been made up to the date when the late payment is made at the
prevailing rate of interest of 1% over the lending rate of the Central
Bank to Commercial Banks.
10.10 Price
Adjustment
OPTION A
F=
0.966 (V-V^
100
Px (JUs - U)
All inputs
lxb
Where:
(a)
F
V
Vna
=
=
=
Px
lx0
lXb
=
=
=
(i)
The work done under the BOQ items that shall not be
._--' considered for valuation of price adjustment which are listed
under Sub-Clause 10.10 in the Schedule;
(ii)
(iii)
(c)
(d)
(e)
"base indices" means the indices for the input, prevailing one month
prior to the latest date for submission of Bids;
(f)
In the case of first interim bill, the current indices for the purpose of
calculation of price adjustment shall be taken as the indices prevailing
on first month after the commencement of the contract. For any other
interim claim or for the final claim the current indices shall be taken
as the indices prevailing for the calendar month, one month after the
previous valuation was done;
(g)
If the Contractor fails to complete the Works within the time for
completion prescribed under Sub-Clause 6.1 or extended time in
accordance with Sub-Clause 6.3, the price adjustment for the work
performed after the due date of completion as described above shall
be made using the current indices prevailed at the due date for
completion;
(h)
The weightings for each of the Inputs of cost given in this Clause
shall be adjusted if, in the opinion of the Engineer, they have been
rendered unreasonable, unbalanced or inapplicable as a result of
varied or additional work already executed or instructed under SubClause 9.1 or for any other reason.
OPTION B
(i)
The work done under the BOQ items that shall not be
considered for valuation of price adjustment which are listed
under Sub-Clause 10.10 in the Schedule;
42
(ii)
(iii)
(c)
(d)
"base indices" means the indices for the input, prevailing one month
prior to the latest date for submission of Bids;
(e)
In the case of first interim bill, the current indices for the purpose of
calculation of price adjustment shall be taken as the indices prevailing
on first month after the commencement of the contract. For any other
interim claim or for the final claim the current indices shall be taken
as the indices prevailing for the calendar month, one month after the
previous valuation was done;
(f)
If the Contractor fails to complete the Works within the time for
completion prescribed under Sub-Clause 6.1 or extended time in
accordance with Sub-Clause 6.3, the price adjustment for the work
performed after the due date of completion as described above shall
be made using the current indices prevailed at the due date for
completion;
(g)
The weightings for each of the Inputs of cost given in this Clause
shall be adjusted if, in the opinion of the Engineer, they have been
rendered unreasonable, unbalanced or inapplicable as a result of
...vaqed or additional work already executed or instructed under SubClause^. 1 or for any other reason.
/
10.11 Subsequent
Legislation
sJd&te 14 Days prior to the latest date for submission of bids for
the Contract/
f.
which causes additional or reduced cost to the Contractor, other than under
Sub-Clause 10.10 above, in the execution of the Contract, such additional or
reduced cost shall, after due consultation with the Employer and the
Contractor, be determined by the Engineer and shall be added to or
deducted from the Contract Price and the Engineer shall notify the
Contractor accordingly, with a copy to the Employer.
43
The advance payment shall be repaid in full when the total certified
PaYment
"
The guarantee shall remain effective until the advance payment has
been repaid.
11.0
11.1 Default by
Contractor
Default
Engineer may give notice referring to this Sub-Clause and stating the default
of the Contractor:
If the Contractor has not taken ail practicable steps to remedy the default
The Contractor shall then demobilize from the Site leaving behind Materials
and Plant and any Contractor's Equipment which the Employer instructs in
his letter is to be used until the completion of the Works.
44
11.3 Insolvency
If a Party is declared insolvent under any applicable law, the other Party
may by notice terminate the Contract immediately;
'The Contractor shall then demobilize from the Site leaving behind, in
\^
45
d)
The net balance due shall be paid or repaid within 28 Days of the notice of
termination.
12.0
Care of the
The Contractor shall take full responsibility for the care of the Works
from the Start Date until the date of the Engineer's notice under Sub-
Works
Clause 7.2;
12.1 Contractor's
If any loss or damage happens to the Works during the above period,
the Contractor shall rectify such loss or damage so that the Works
conform with the Contract;
The failure of a Party to fulfill any of its obligations under the contract
shall not.be considered to be a breach of, or default under, this Contract
For the avoidance of doubt, Force Majeure shall not include the
inability of the Employer to make payments that are due to the
Contractor, under the terms of this Contract.
46
If the event continues for a period of 84 Days, either Party may then
give notice of termination which shall take effect 28 Days after the
giving of the notice;
After termination, the Contractor shall be entitled to payment of the
unpaid balance of the value of the Works executed and of the Materials
and Plant reasonably delivered to the Site, adjusted by the following:
(a) any sums to which the Contractor is entitled under Sub-Clause 9.4;
(b) the Cost of his suspension and demobilization;
(c) any sums to which the Employer is entitled.
The net balance due shall be paid or repaid within 28 Days of the notice
of termination.
13.0
13.1 Extent of Cover
Insurance
The Contractor shall, prior to commencing the Works, effect and thereafter
maintain insurances to the amounts given below, in the joint names of the
Employer and Contractor:
a)
110% of the Initial Contract Price, for loss and damage to the
Works, Materials and Plant;
the Schedule, per any event for liability of both Employer and the
Contraeter^and of any Employer's representative for death or injury to the
and pay the premiums due and recover the same with an additional charge
of 30% of the premiums paid, as a deduction from any other monies due to
the Contractor.
47
14.0
14.1 Dispute
Resolution of Disputes
Resolution
in Clause 14.2.
Adjudication
The Adjudicator's fee shall be agreed by both Parties and shall be borne
by both Parties in equal amounts.
48
SECOND EDITION, JANUARY 2007
r*
Replacement of Adjudicator
14.3 Arbitration
(c) Any award rendered by the arbitral tribunal shall determine the extent
to which the cost of arbitration is to be borne by each Party. The
arbitration centre charges (if any) and the compensation to the
arbitrator shall be equally shared by the Parties initially.
Composition of the Arbitral Tribunal:
nliHfe'ijn'ffl^Meriprovided as follows;
Selection Procedure :
The Party desiring arbitration shall nominate three arbitrators out of which
one to be selected by the other Party within 21 Days of the receipt of such
nomination. If the other Party does not select one to serve as Arbitrator
within the stipulated period then the Arbitrator shall be appointed in
accordance with the Arbitration Act No. 11 of 1995, or any amendments
thereof.