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FIDIC Tendering Procedures 1994 PDF
FIDIC Tendering Procedures 1994 PDF
procedures
according to
FIDIC
Contents
Foreword
Acknowledgements
Introduction
Procedural Flowchart
Procedure and Notes
\
1.1 Establishment of Procurement Mcthod
and Form of Tendering
1.2 Preparation of Programmes
4. J Opening of Tenders
5.0 Evaluation ofTendcrs
Appendices
The preparation was carried out under the general direction of the FIDIC
Contracts Committee comprising K.B. (Tony) Norris. Consulting
Engineer, UK; Michael Mortimer-Hawkins of SwcdPower AB. Sweden;
and John Bowcock of Sir Alexander Gibb & Partners Lid., UK.
FlOle wishes to record its appreciation of the time and effort devoted by
all the above.
The ultimate decision on the form and content of the document rests
with FIDIC.
Introduction
This document presents a systematic approach for tendering and
awarding of contracts for international construction projects. It is
intended to assist the employer/engineer to receive sound competitive
tenders in accordance with the tender documents so that they can be
quickly and efficiently assessed. At the same time, an effort has been
made to provide the opportunity and incentive to contractors to respond
easily to invitations to tender for projects which they are qualified to
implement. It is hoped that the adoption of this procedure will minimise
tendering costs and ensure that all tenderers receive a fair and equal
opportunity to submit their olTers on a reasonable and comparable basis.
The project strategy defines the way in which the project will be
implemented, determines the role of each party involved and, where
appropriate. specifics the way the project will operate. To a large degree
contractual relationships between the parties and their individual rights.
duties and risks arc therehy also determined by the project strategy.
As soon as the project strategy has been decided, the employer, assisted
by his engineer, should establish procurement methods and forms of
tendering to be used in the project.
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A COlllract may comprise design, delil'ery of plallt and machillery.
COIISII"Il("lioll 01" a ("olllhi'WliO/f of Ihes".
The award crill'ria should cover all elemems 011 which the employer
wishes the I('"derers to compete.
The factors other than price to be Itsed in the award crileria shollid
to the extellt practicable he expressed ill monetary terms.
Calling tenders ror a given part of the project should be carried out in
compliance with the overall programme.
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.':;\'l'11 as to what e,x!('w the lellder dOClInlelll.<; shollid be prepared alld agreed.
before the p,-('qualificalirJl/ doC/mu'nls call he fllla/iud alld isslled. This I/(J.t; 10 he
(/t'cickd jor (,tlch ;1II('I/(/(od cunlraCl. :tiilln' J.(.y i"jormatioll /rom ,11(' I('mh-,.
docllmems will 0/1('" hu\'{' 10 be ,ncO/porated ill the prequalificorioll doc-limc·III... ;1/
order 10 give adeq/lUll' i"formOlioll to 'hose see/.;;Il.S: prequalificotioll.
FillOI/C;lIg ;lIst;lu1iol/s H'ill gellerally require lime for scrutiny aud (11'/11'0\'01 of
tef/der documents.
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2.0 PREQUALIFICATION OF TENDERERS
2.1.1 General
It is fhe !,o/icy (}f SOniC jil/ll1U"ill.r: ills/illl/iol/s '"ar all ap/dicallls .....ho
po.t!ie,u· ,lie' cIIICllificllIion.'i to "{"I/orm ,hl' "ropo.w'd cOlltroct sIIo"ld h~
pUtlUllliju-d,
The I)('riot! "elll'('('11 f//(' notice of illl';((I/;O/l ffJ pn'quullfy (/1/(/ fl/l! laf('sf
(/af(' for ,II(' r('fl/rn of ('Ofllp/('rcd applicafioll."i should nor he 1(',\'5 tllalt
fo"r weeks.
For most pl"ojecf,\'. tIll' "m;c(' of illv;tatiOTl should fx· published hetween
tel1 to fifteell .....eeks h('!ore tile planned £/ate for tile issue of tender
documents (Iml ('ompleled prequalijrcoTioll applicaTion... should he
Slthmil1ell to The ~mt'loY(irlell.c:il1ee,.ftmr to ei,t::ht w~t!ks before {lEOf date.
.... The leHer of invitation 10 prcqualify should stale how the application is
10 be pat:k~lgcd am.! sent.
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2.6 Notification of Applicants
When the li!'>t of sclcctcu tcm.lcrers has hecn prcp'lfCu, ~u(.'(,..cssful
:Ipplicants should he nOli lieu 'Illd requestcd 10 conlirm Iheir iotention to
submil a tender. This should Cllsure, as far as possible, :.111 adequate
number of competitive tenders. If a polemial tenderer wishes to drop out
al (his stage, the next best-placed should be invited and asked 10 confirm
as above. Following this, all applicants should be notified of Ihe list of
selected tendcrers without giving explanation for the decisions.
Ir shoul,1 be l10redthat .. ;onu· fi"Ul1c;nt-: or other institutiotls require rhot
all contractor... po.. ;sessing the sfipula{(~d experience and resources
should he- prequalified ......ithout OilY restrictiOIl on the lotal numher.
3.1.1 General
The Sl.:UpC of the contract and:'1Il Olltline of the lender documents should
be prepared bcfurc the prcqualilication documents in on..lcr to achieve
consistency between these two sets of documents.
General
The inslructions 10 lemlcrers should stollC that the employer does not
hind himself 10 ;:lw<.lrd a conlract to any of the lenclercTS.
Documents
Alternative Tenders
TcndeJ'cr~should be informcd of whelher allernalive tenders will be
considered or no1. A complialll tender is nOffilully a precondition for
considering altcrlli.ltivc tendcrs.
Modification to Tenders
Th;: lcndel"Cr should hc illl'onncd lhal. if he has delivered. po!'tcd or
tlispi.ltched his tCllUCI" prior to the fonn~ll submission daLe he has the righl
to modify or tlwke (.;OITCCl.ioIlS lU il, provided thal any such
modi(i(';~ltions or corrections are rece.ived by the employer/engineer in
writing prior to the time speciried for submission of tenders. The
original tcnuer thus modified or corrected would then be considered as
the oflici~ll lender.
Financing Arrangements
Tendercrs should be l.IUvi:--cd of th~ source of fimmce and rcl~lIcd
contliti<.UlS.
Tender Securities
The requirements for a tender security, if :lOY. will be detennined by the
circumstances of each project. Jf a tender security is required, a form
should be included in the tender documents. A standard form of tender
security is shown in Appendix III. The amOllnt and cUlTency(ies) of the
security should be stated. In all cases the surety or sureties must be
sarisf'lctory to the employer. If a tender security has been requested, any
tender which ha~ not been so secured will he rejected.
a.
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th;u it shall remain in full force and effecl until the earliest of
b. subjec\ to this Bond being in full force ;md effect, fhe Surety shall
pay the rull amount specified in this Bond upon receipt of 3 wrinen
certilic.i1te from the Authority Slating fhat
Evaluation Criteria
The evalualion criteria. which will form the basis for the selection of the
lll()~t advantageous ICIH.lcr. should be speeilicd.
TI,e.H' Jilc·tor.\" shuJl h(', !o rhe eXfent proui('(.IbJe, ('.\pressed ill f1IO//('f<Jl)'
!erms or gil'clI (/ H'('i.~hl ill Ihe el'allla/;,,1/ prol'''.\·ioll of tile tender
dO('/fJlIl'J1!S.
Performance Securities
Checklist
3.1.5 Specification
The specification will define the scope and technical requirements of the
contract, including any requirements for training and the transfer of
technology. The quality of materials and the standards of workmanship
[0 be provided by the contractor must be clearly described. together with
requirements for quality assurance to be performed by the contractor
and the required safety, health and environmental measures to be
observed during the execution of the works. The extent, if any. to which
the contractor will be responsible for the design of the permanent works
should also be specified. Details should be included of samples to be
provided and tests to be carried out by the contractor during the course
of the contract. Any limitations on the contractor's freedom of choice in
the order. timing or methods of executing the work or sections of the
works should be clearly set ou( and any restrictions in his use of the site
of the works, such as interface requirements with other parts of the
work. or provision of access or space for other contractors, should be
given.
3.1.6 Drawings
The drawings included in the tender documents should provide
tenderers with suflicient detail to enable them, in conjunction with the
specification and the bill of quantities. to make an accurate assessment
of the nature and scope of the works included in the contract. The
drawings should be listed in the specification.
If the tenders arc based on lump sums, a break-down of such sums into
constituent parts should be provided by the tenderer.
3.2 Issue of Tender Documents
Tender documents should be issued by the employer/engineer to those
fimlS who have been selected to lender.
The primary purpose of the visit is to enable each tenderer to inspect the
site and obtain all relevant information required for the prepamtion of
his tender.
The ar1"QIl.t:cm,'IItS for the site visit .~holiid be determined so that equal
opportunities are ope" to all fenderers_ The visit shollid take pla,-e at
approximately 'he end of the first half of the ,ender period and should
i"c1ude a fe"derers' conferel/ce.
Tel1llerers should make flteir OWIl t1"Ql'{!llin1: al'l'lIlIgemellts alld hear tlte
costs, il/duding fares. ll('('ommotlmiOil and sllbs;slCllce al1(l tlley .\·lto//ld
h,' advis{'d of this ill tile illsfrtl(',iOll.f to tcnderer....
Correspondence Method
The lender period should 1101 he eXlcnded ullless the circumstances are
exceplimwl. III considering the need for extellsions which might arise.
eilher as the result of major amendmCIllS 10 Ihe render doeumems or as
a dire(:t request from olle or more lenderers, the following criteria
should be applied:
Is Ihere a cOl/villeil/g rca.wnfor granting (III extension?
Would rh,' rcfusal of WI e.r/Cl/siml rcduce Ihe numher of tenders 10 he
suhmiued?
Would an exlclIsion give preferelllial Ireatment to Ihose tenderers
who Url' /llIaMe 10 meet Ihe original lCllder .mhmissioll date?
Would all exlel/sion creale I/IJaecepwhle delay to Jhe project
programme?
The employer/engineer should mark all tenders with the time and date of
receipt and ensure that they arc kept secure and unopened until the date
and time appointed for the official opening.
If tenders are delivered by hand. tenderers should obtain a receipt from
the employer/engineer recording the date and time of delivery.
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4.0 OPENING OF TENDERS
The official opel/illg oJ fendl'rs may he carried ulII ill Of/e of two ways 00\"
upplvpriate to the c:;rc:umSf(.J1Ic:es.
/" Public: Tile date, lime and place of openill/-: should be adverrised
ill rhe press alld IIOfified ro renderers.
Resrricted: III rhe presellce afrhose renderers wishi"g ro affelld. all
hw'ing IJeell advised of rhe date. rime and place of rhe opening.
The employer should then make his decision on which tcnder to accept.
Unless there arc exceptional circumstances. the award should be made
to the tenderer submitling lhe lowest evaluated responsive tender.
The procedure for dealing with deviations will depend OIl the employer's
policy towards tellders which do lIot comply fully with the instructions to
telldl'rers. The procedure descrihed ahove is the olle recommended by
FIDIC as most likely /0 ensurefairlless to hOlh employers and tenderers
alld ill the lon,~ term to ensure that employers receive compliam
competitive tenders. Certai" employers. particularly those who recei\'e
a number of tenders ('ad, year. may "refer 10 adopt a stricter approach
and 10 reject all)' teJlllers u:hich cOlltaill deviatiolls, If this is the case. a
statemem to this effel·t should he im:luded i" the instructions to
tenderers and this prot_'i'dure should the" he strictly ohsern!d.
The appropriate key faclOrs and method uf evaluation should have been
established in tlte illstructiOlls /0 te"derers so that the sllhseqllell/
evaluatioll allll comparison of tenders leads to all objective judgement.
The evaluation of tenders can generolly be considered to hove three
components. The components may include:
Technical evaluation
conformity with .tpecification.t and drawinKs
comparison ofany proposed alternatives (if allowable) with the
requiremenf.'O of the tender documents
desiKn aspects for which the contractor is responsible
methods of construction and temporary works
environmental considerations
qualitya.t!illrance
pJ"{Igramme
Filllll/dol evaluatiol/
clIpital cost
discouwed cash flow and nett present value
pfogramme of paymel11s
fil/clJIc:ing arrangements
currencies
securities
i"terl'st rotes
lIOWI'pa)'In('lltslret"I'tions
day",ork rOtes
contract price adjustment proposals
III COl/ell/Ctill,1i ,\'1Iel1 lIegotiafiOlIS, rIle guieling prillciple mUM be /() ('11,\'11/'('
thai the colI}identiality alld faimess of lellderillK is preserved. III Ihe
event of a satisfaclory cOlI/raer /lot being negoliated, all tenelers may be
rejecled.
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6.0 AWARD OF CONTRACT
The leiter of acceplance should identify the contrnct and the works to be
executed by the contractor as well as the contract price which the
employer will pay to the contractor in accord~nce with the terms of the
COnlr~\ct. Where the contrilct includes FIOIC Conditions of Contract for
Works of Civil Engineering Construction, Fourth Edition. the general
terms of the insurance policies must be agreed with the selected tenderer
before the leiter of acceptance is issued.
The notification by the letter of acceptance will constitute the formal ion
of the contract.
The employer is then free to award the contmct to the next lowest
tenderer.