Marine and General Civil Works

for Ship Lift and Transfer System

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Contract No. :
Document No. :
Project Title : MARINE AND GENERAL CIVIL WORKS FOR SHIP LIFT & TRANSFER
SYSTEM AT KARACHI
Location : SLTS Project, Karachi Shipyard & Engineering works, West Wharf,
Karachi Pakistan
Client : KARACHI SHIPYARD & ENGINEERING WORKS LTD.(KSEW)

0 22nd Jan. 2019 FOR BID Obaid A. IN, Sungyoon KIM, Jangmook

Rev. Issue Date Reason for Issue Prp’d Chk’d App’d

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INVITATION TO BID

Dear Sirs,

POSCO Engineering & Construction Company Limited invites your company to bid
for Dredging & Scour Protection Works of MARINE AND GENERAL CIVIL WORKS
FOR SHIP LIFT & TRANSFER SYSTEM AT KARACHI PAKISTAN. You are
requested to submit a Proposal for the works mentioned above as well as the
followings.

- Bid Closing Date : 9th of April, 2019 AM 10:00 (Pakistan Local Time)

- Validity of Proposal : 60 Days after submission of quotation

In accordance with the requirements mentioned in this ITB, Bidder is requested to

estimate and provide the detailed bill of quantities in his proposal with unit price and
conditions.

We expect your kind endeavors to competitive quotation and appreciate any queries
from you to the undersigned.
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TABLE OF CONTENTS

1. DEFINITION.......................................................................................2
2. GENERAL..........................................................................................2
3. SUBMISSION OF PROPOSAL..........................................................2
4. TERMS OF PAYMENT.......................................................................2
5. DEVIATION FROM INQUIRY DOCUMENTS.....................................2
6. EVALUATION OF PROPOSAL..........................................................2
7. DISCLAIMER.....................................................................................2
8. FAMILIARIZATION WITH WORKING CONDITIONS.........................2
9. QUERIES...........................................................................................2
10. PROPOSED PRICE...........................................................................2
11. CONTENTS OF PROPOSAL.............................................................2
12. COST OF THE BIDS..........................................................................2
13. CONFIDENTIAL DATA AND INFORMATION.....................................2
14. TAXES AND DUTIES.........................................................................2
15. PUBLICITY.........................................................................................2
16. BID VALIDITY....................................................................................2
17. SITE INSPECTION AND INFORMATION...........................................2
18. ESCALATION.....................................................................................2
19. AWARD OF SUBCONTRACT............................................................2

APPECDIX A : Confidential Agreement

APPECDIX B : Master Schedule
APPECDIX C : Scope of Works
APPECDIX D : Project Specification
APPECDIX E : Design Drawings
APPECDIX F : Form of Price Breakdown(BOQ)
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1. DEFINITION
1.1 “OWNER” means KARACHI SHIPYARD & ENGINERING WORKS(KSEW)
1.2 “PMC” means NATIONAL ENGINEERING SERVICES PAKISTAN(NESPAK)
1.3 “PEC/EMPLOYER” means POSCO E&C Limited
1.4 “VENDOR/SUBCONTRACTOR” means successful Bidder

2. GENERAL
The Bidder is requested to submit to PEC a proposal based on the ITB
Documents for the work.

The Bidder's proposal must comply with all ITB Documents in all respects.

The Inquiry Documents consist of:

2.1 Instruction to Bidders and its attachment

- APPENDIX A : Confidential Agreement
- APPENDIX B : Master Schedule
- APPENDIX C : Scope of Works
- APPENDIX D : Project Specification
- APPENDIX E : Design Drawings
- APPENDIX F : Form of Price Breakdown(BOQ)
- APPENDIX G : Construction scheme of Rail Installation Work

The Bidder is requested to confirm that all applicable documents stated herein
are in his possession, and if any of them prove to be missing, to inform PEC
promptly in order to obtain the same.
No claim will be entertained on the ground that the Bidder failed to see or
understand any of the documents in whole or in part.

3. SUBMISSION OF PROPOSAL
3.1 Number of copies and addressee
One electric file of the Bidder's proposal duly signed by the Bidder's executive
shall be submitted to the sender of this ITB.
Attention :
Mr. Chilsung Kim
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Construction Contract Manager

POSCO Engineering Company Limited

1) Address : POSCO E&C TOWER, 241 Incheon tower-daero,

Yeonsu-gu, Incheon, Korea
2) E-mail : chilsung@poscoenc.com
3) Telephone : +82-32-748-3379

3.2 Bid closing date

The Bidder is requested to submit a proposal on or before the bid closing
date specified in the Invitation to Bid.

3.3 Language
The proposal and all related documents, including, such items as reports,
studies, correspondence, and drawings, shall be in the English language.

3.4 Return of ITB Documents

The unsuccessful Bidder shall immediately, upon receipt of PEC's notice,
return to PEC all ITB Documents.

4. TERMS OF PAYMENT
Terms of payment shall be according to the conditions specified in the
CONTRACT Agreement.

4.1 Payment
 Advance Payment : 20%
 Progress Payment : 75% (According to PEC’s Payment Schedule with
OWNER based on Milestone)
 Retention Payment : 5% (2.5% at issuance of completion certificate, 2.5%
at the end of Defect Liability Period)

4.2 Bond
 Advance Payment Bond : Full amount of advance payment
 Performance Bond : 10% of contract price
 Warranty Bond : 10% of contract price
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4.3 Liquidated Damage

 Max 10 % of contract Price
 0.5 % of contract Price for each day delayed

4.4 Warranty Period

 12 Months from the Completion Certificate from PEC.

5. DEVIATION FROM INQUIRY DOCUMENTS

Any deviation from the ITB conditions (commercial and technical) must be clearly
and specifically stated in one section (to be titled "Deviations") of the proposal.
PEC has no obligation to search for any deviations in other parts than the said
"Deviation" section. In the event that the Bidder is awarded the contract, it will be
on the basis only of those deviations and alterations included in such separate
"Deviations" section and accepted by PEC.

6. EVALUATION OF PROPOSAL
The evaluation of the Bidder's proposal will not be limited to price but also take
into account technical capability, working experienced in the related field, time
schedule of works, reliability of execution plan, etc. It is therefore essential
importance that all the information requested in "Scope of Work" herein below be
constrained in the Bidder's proposal. The evaluation will be conducted under
PEC's sole discretion and judgment.

7. DISCLAIMER
Neither the OWNER nor the PEC will be responsible for, or reimburse, any
expenses or losses incurred by a Bidder in the preparation and submittal of its
bid. The PEC reserves the right to accept or reject any bid, and to annul the
bidding process and reject all bids at any time prior to award of Subcontract
without thereby incurring any liability to the affected Bidder or Bidders, or any
obligation to inform the affected Bidder or Bidders of the grounds for the PEC’s
action or determination.

8. FAMILIARIZATION WITH WORKING CONDITIONS

It is the Bidder's responsibility to familiarize itself with the work to be performed in
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accordance with the ITB Documents, including but not limited to working
conditions, location of work, and all other requirements, such as local conditions,
applicable laws and regulations, labor condition, environmental aspects, etc., in
order to submit a firm and comprehensive proposal. The Bidder shall also check
and verify the local information contained in the ITB Documents and is expected
to have fully satisfied himself thereon before submitting his proposal.
The Bidder shall make his own arrangements and inquiries with regard to the
loading, unloading and transport of all equipment and material required for the
works. The Bidder shall make all necessary investigations as to the heaviest
loads that can be handled at ports or transported to the work site by road, railway
or river, in particular with regard to the weight-bearing capacity or all bridges and
culverts, and the Bidder shall comply with all relevant regulations of the
government departments in connection therewith.

9. QUERIES
The Bidder is advised to carefully study the contents of the ITB Documents and
to obtain all such information it may require to submit its bid. The Bidder shall be
deemed to have satisfied itself as to the correctness and sufficiency of the bid
documents before submitting the Bid. No claims whatsoever will be entertained
arising out of Bidder’s failure to study the whole contents of the ITB Documents
or to make his proposal itself. No Bidder shall be conditional upon the availability
of labour, staff, equipment, material, funds, facilities or anything whatsoever the
Bidder is required to provide.

Should the Bidder believe there are discrepancies in, or omission from, the PEC
Documents, or have any doubts as to the meaning of any part thereof, the Bidder
shall at once notify the ITB by email as detailed below.

The Bidder shall be solely responsible for submittal of all notifications/queries

and for their timely receipt by the PEC.

Any queries relating to the PEC Documents or submitting a bid must not be
raised by telephone or personal contact, but must be submitted by email, to
sender of this ITB:
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10. PROPOSED PRICE

10.1 Unit rates
The Bidder shall propose unit rates on a measured contract basis by filling
in the blanks of all tables contained in "Bill of Quantities” An amount to
absorb fluctuations in the costs of labor, equipment, materials, consumable
and applicable taxes shall be estimated at the Bidder's responsibility.

10.2 Currencies
The Bidder shall quote all prices in the currencies of PAKISTAN RUPEE.

11. CONTENTS OF PROPOSAL

The contents of the Bidder's proposal should be explicit so that PEC can fully
analyze the essence of the technical and commercial aspects. The Bidder's
proposal shall include, without limitation, the data and information set out below.

11.1 Prices
The Bidder shall fill in the blanks of "Bill of Quantities” in Contract Agreement.
Bidder shall not use own form. Native file should be submitted.

11.2 Work organization chart

The Bidder shall submit an organization chart for work activities. The
organization chart shall be accompanied by:
 A short description of responsibilities and scope of authority of various
personnel functions shall be shown
 Safety, quality assurance, and environmental protection functions shall be
clearly shown.

11.3 Detailed schedule

The Bidder is requested to develop the his detailed schedule based on
provided master schedule including all kind of works described in this ITB
Document.

11.4 Manpower mobilization schedule

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The Bidder shall submit a manpower schedule for the work, which shall be
accompanied by:
 Management & Supervisory Staff
The scheduled duration of assignment to site supervision for each
member describing local or foreigner shown in the Bidder's proposed
organization chart shall be shown in bar chart form.
 Direct & Indirect Labor
The numbers of personnel identifying local or foreigner, up to and
including foreman level, which will be employed monthly shall be shown in
tabulated form. Indirect labors are to be shown separately.

11.5 Equipment mobilization schedule

The Bidder shall submit a list of equipment which the Bidder will employ for
the performance of the work stating the source of supply (e.g. rental or
Bidder's own property and arranged locally or imported) and capacity &
dimensions of such equipment.

11.6 Experience on similar job

The Bidder shall submit a list of similar jobs executed by the Bidder for the
past years, indicating project name, location, Owner, value and period of
work, also stating clearly whether the Bidder carry out those job as a
contractor or a Subcontractor.

11.7 Information on the Bidder's volume of work in progress and current

commitments
The Bidder shall submit an analysis of the Bidder's projected workload for all
works in progress and in future. These works shall be individually identified
by project, location and Owner.

11.8 QA / QC management
The Bidder shall submit his policy and management system established for
Company's QA / QC as well as the virtual practice in the project site.

11.9 HSE & Safety management

The Bidder shall submit his policy and management system established for
Company's HSE(Health, Safety and Environment) and Safety Management
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as well as the virtual practice in the project site.

12. COST OF THE BIDS

The Bidder shall bear all necessary costs and expenses required for or in
connection with the preparation of the proposal and subsequent actions to be
taken by the Bidder up to the conclusion of the contract including site visits,
clarifications of the proposal and negotiations of the contract.

13. CONFIDENTIAL DATA AND INFORMATION

The Bidder shall keep the data and information contained in the Inquiry
Documents supplied by PEC strictly confidential.

14. TAXES AND DUTIES

The Bidder will be required to fully comply with the local tax laws and regulations.
To that end the Bidder is required to acquaint himself with the relevant laws and
regulations relating to the importation of materials and corporate and personal
income taxes, etc.

15. PUBLICITY
15.1 Releases
Publicity releases shall not be made to the media or any other parties by
vendors or subcontractors without the approval of OWNER/PMC.
The text of any proposed announcement together with any illustrations shall
be submitted by Bidder for written approval.

15.2 Advertising
Advertising in connection with the contract between PEC and vendors or
subcontractors shall not take place without the prior approval of
OWNER/PMC.
A copy of any proposed advertising shall be submitted by Bidder for written
approval.

16. BID VALIDITY

All bids are to remain open for acceptance by the PEC for the period stated in
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the Form of Bid. During this period no Bidder is to withdraw his bid, amend or
alter it or otherwise render it unsuitable for acceptance by the PEC.

17. SITE INSPECTION AND INFORMATION

The Bidder is to visit and inspect the site and acquaint himself with the local
conditions, means of access, availability of water, labour, materials, plant and
any other matters that may affect his bid.
The Bidder must clearly understand that any information provided by the PEC is
given expressly without guarantee as to its accuracy and Bidder must obtain his
own information regarding the nature of the work, conditions peculiar to the site
and all other matters affecting the execution of the proposed works.
The Bidder shall give a notice to the PEC for Bidder’s to visit and inspect the site
in advance and get the approval from the PEC.
The Bidder will release and indemnify the PEC and its personnel from and
against all liability in respect of site visit and will be solely responsible for death
or personal injury, loss of or damage to property and any other loss and damage
incurred as a result of the site visit.

18. ESCALATION
Bids shall be a Lump sum Price. The rates contained in the Schedule of Unit
Rates and lump sum price shall be fixed for the duration of the Subcontract
period and there shall be No Price Escalations considered for any reason
whatsoever.

19. NOTIFICATION OF AWARD FOR SUBCONTRACT

The PEC shall notify the successful Bidder its Bid has been accepted. This
Notification of Award shall be binding upon the successful Bidder and shall
constitute the formation of the Subcontract.
On the receipt of the notification of award, the successful Bidder shall sign the
Subcontract with the PEC.
Failure of the successful Bidder to comply with the requirement shall constitute a
breach of Subcontract. In such case, the PEC shall have the right to annul the
award and terminate the Subcontract Agreement.
No Bidder shall consider itself successful until receipt of written notice from the
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PEC and when such Bidder’s unconditional acknowledgement and acceptance

has been received by the PEC this shall constitute a binding notification between
PEC and the successful Bidder subject to formal completion and signing of the
Subcontract Agreement.
The successful Bidder shall execute, in duplicate, an agreement in the form set
out herein of the PEC Documents.