Supipuni Pinipadi

NDQS
 1) Common Standard Forms

 FIDIC document
 JCT standard Form
 NEC contracts
 ICC conditions of Contract
 ICTAD conditions
 All things are used for construction Industry in Sri Lanka.

FIDIC Document

FIDIC is short for the “Federation intemationale des ingenieurs- Conseils’’

(International Federation of counseling Engineers.)

The most commonly used standard forms of contract for intemational construction Project.

These forms of contractsn are used throughout the world.

Endorsed by may multilateral development banks (MDBS) , such as the world Bank.

FIDIC contracts are generally know by the colour of their corer the Red Book

Yellow Book

Sillver Book

Green Book

Pink Book

Gold Book

Blue Book and

White Book.
Choice of FIDIC document
Contractor design (the Provision of plant and for building or engineering Works on a design/
build basis) - Yellow Book

Turnkey Project - Sillver Book

Design, Build, Operate Project - Gold Book

Dredging and Reclamation works - Blue Book

Appoint Consultants to provide Services to the employer (Client / Consultant Model

servicesAgreement) - White Book

Yellow Book

Conditions of contract for plant and design – Build

 Detailed Design done bycontractor.

 Payment based on lump –sum

 Supervision by the “Engineer’’.

Sillver Book
Conditions of contract for Epc/ Turnkey Project

 Design done by Contractor.

 Payment based on lump –sum

 Supervision by the Contractor – but Employermain tainnas

Pre sence throught “ Employer’s Representive ’’ itappointed.

Gold Book

Conditions of contract for Design ,Build and operate Projects.

 Design done by Contractor.

 Payment passed on three lum –sums - one

For Design and Build

One for operation and one for Asset Replacement.

 Supervision by the Contractor – but Employermaintans presence through “Employer’s

Representative

Green Book

Short from of contract

Intended for project under us $ 500,000 and or < 6 months.

Desing can be by Employer or by crontractor.

Payment can be by Lump –sum , Remeasurement, cost Reimburesement or a combination .

 JCT standard Form of building Contract

 The joint Contracts Tribunal (JCT) publishes a suite of standard form building
Contracts.

 The most popular suite of Contract for the commercial property and development
sctor and its design and build form’s on large Project.

NEC contracts
The New Engineering Contracts (NCE) are in their third edition. Originally published in
theearly1990 s, the current edition is the NEC 3 Appril 2013 edition.

ICC conditions of Contract

The in trastructure conditions of Contract (ICC) replaced the ICE condition of Contract

(the ICE Contracts ) with effect from 1 Augost 2011.

 ICTAD

Standerd bidding document for procurement of works published by the institute

For construction training and development (ICTAD)

Standard forms used in Sri Lanka – published ICTAD

Standerd bidding document

ICTAD/SBD/01 - Standerd Bidding Document Procurement of works.

ICTAD/SBD/02 - Standerd Bidding Document Major Contracts.

ICTAD/SBD/03 - Standerd Bidding Document Mior Contracts.

ICTAD/SBD/04 - Standerd Bidding Document Desing Build Contracts.

 ICTAD/SBD/01
Recommeded for use on works Contracts Between Rs 10 million and Rs 100 million

May be used for works of higher Values, which are not of a complex nature

Used for Re- measurement Contracts.

ICTAD/SBD/02
Recommeded for use on works Contract Over Rs 100 million and for Contract s of a
lesser Value, which are of a complex nature.

Used for Re- measurement Contracts.

ICTAD/SBD/04
Recommeded to use for works Contract s where the contractor is responsible for the desing
and construction of the works on specifiedapprovals obtained from the Employet.

Used for design and build Contract s

Reference
Lefure note.
 2) Procurement method

The Various procurement methords that are available for procurement of Goods,
works,services and Informaition system.

It should be a fair and ressonable judgement that should be arrived considering the nature of
the particular procurement to local and foreign market Situations.

The following procurement methods use in Industry.

1. International / Competitive Bidding (ICB)

2. National Competitive Bidding (NCB)
3. Limited International Bidding (LIB)
4. Limited National Bidding (LNB)
5. Shopping (International and National)
6. Emergency procurement

The Selection of appropriate methhhhod of procurement depent.

I. The size, type, nature and availability of the good and services to be procured.
II. Value of the procurement.
III. Availability of in house labour ormanpower.

……….etc.
1. International competitive bidding (ICB)
When the Capacity of the domestic contractors, Suppliers and Service Providers are limited
for foregin founded Projects.

Bidding Opportunites must therefore be advertised worldwide to ensure maximum

participation in minimum of one international publications meant for advertising bidding
opportunities.

Bidding period is 42 days

(Reasonable time need to provide for complex procureme)

Example for ICB,

Forigen foundaed projects.

2. National Competitive Bidding (NCB)

National Competitive Bidding is the Competitive Bidding procedure that shall be applicable
for most Govemmntof Sri Lanka funded projects.

Invitation to bid is published by Local news papers and in relevant procurement Entrey
Websits and National Procurement Website.

Foreign funded project may be used with the agreement of the Foreign Funding Agency as
agreed in the agreement following point to be applied for foreign frems.

 Bidder should have the registated in appropriate category under the ICTAD
 Bid/ proposal on same conditions applicable to the domestic contractor / suppliers

Bidding period is 21 days

Ex:- Government fundaed projects. (Normaly)

3. Limited /Restricted International and National
Bidding (LIB / LNB)

Limited /Restricted bidding procedure is more appropriate when there are limited number of
Suppliers/ contractors.

The requests for Bids is directly addressed to a pre- Selected list of international or national
Suppliers international or national Suppliers or contractors.

Limited National Competive Bidding

Invitation to bid is direct addressed to pre Selected list of national (in Sri Lanka) Suppliers or
Contractors.

Ex:- Material Suppliers

(fine agreegate , coarse agreegate)

Bidding period is 14 days

Limited Internation Competive Bidding

Invitation for bid is directly address pre - Selected list of Intemational Suppliers or contra
ctors.

Ex:- Mi helicopters , Bell helicopters are brought in Sri Lanka.

Bidding period is 42 days

(Reasonable time need to provide far complex procurement.)

4. Shopping (International and National)

Shopping is an appropriate procurement method for procurement of Goods, works and

Services. Shopping (International and National) is a direct procurement process. Used for
small value and small amount.

Shopping – Goods and Services.

Bidding period is 15 days.

Shopping – Works

Bidding period is 14 days.

5. Emergency procurement

In a situation where Government has declared as an emergency, shall make procurement

decision up to LKR 50 million for Goods, works, Services and Information Systems.

Thefinanciaal limit may be enhanced by the Government depending on the disaster Situation.
This authority can be delegated down as appropriate.

Bidding period is the above period may be reasonable and practical depending on the event.

Reterance
Procurement Manual
Principle tendering method
 Open tendering
 Selective tendering
 Nomination

Other tendering method

 Two stage tendering

 Tow envelop tendering
 Serial tendering
 E-tendering

Open tendering

Stats with invitating the tenders by advertising in newspapers or in the technical publications.

The advertisement should be include

 The type scale and progarmme of the work

 The employer / client detail
[Nature of the client]
 The time period during which the tender documents are issued / collected
 The place where the tender documents are issued / colleted
 Tender colosing date
 Tender free - refundable and non – retoundable ect
 IETAD registration Ex- c4 or above (Grade is specially)
 As well as tender opening location and time
 As well as amount of the bid bond / bid security
 As well as free- bid meeting time and site visite.
 Tender opening proceeder

Ex:- Opening tendering

 At least last five yeare experience final capacity.

 Same time may be duty, contact person

Ex:- Tel number

 Opening tendering

Advatages

 No favoritism Over the tenderers.

 Opportunity is provided all capable tenderers.
 Can get the maximum benefit of competitivenes.

Dis advantages

 Lowest price may been submitted an inexperienced contractor.

 Little know about the tenderers.
 The selected contractor might not be the most suitable there fore more supervision
effort may require during the construction.
 Many good, capable and large scale contractor do not participate to open tenderers.
Selective tendering

Tenders are called upon from certain number of contractors who are already listed.

Process

Pre Qualification – prepare a list of suitable contractors.

 Contractors are submit their technical

Financial
Managerial
And other Qulifications.

 Evaluate the submitted Qulification and draw up list of suitable contractors.

 This list can be create, maintained and updating.
A short list is formulated based on some form of pre - Qulification catageries.
 The number of tenders for a project is typically limited (three to six)
 Each is then asked to provide a tender.
 pre - Qulification or pre- -registration is required
 Indicates the contractor’s ability in defind areas.

Types of Selective Tendering

1. Single stage selective Tendering

All the drawings are detailed and ask bidders to give a comprehensive BOQ

2. Two stage Selective Tendering

st
1 Stage – No detail design at the beginning and ask for an approximate BOQ
with Rates for main or Significant items only.

nd
2 Stage – Negotiations on detailed prices with the selectived Contractor’s
who participate in developing the design.
  The advantage of this method is about bringing the contractor in the project planning
and design and earlier start of construction.

Selective Tendering advantages and disadvantages.

 Advantages

 Only capable and approved firms are involved

 The cost of tendering is reduced
 Provides limited competition
 Considerd tenders are generally received

 Disadvantages

 Opportunities for collusion

 Missed Oppotrunities
 Industry complaints (those not Selected)
 Reduced Competition forces prices up.

Negotiation

Two main approaches

Single stage negotiation are two types of Negotiation

Single stage negotiation

Single contractor is selected without competition and a contract is negotiated.

Sometimes referred to as a strategic alliance.

Two stage negotiation

Invitation to register interst.

one contract is selected and negotiations become more detailed as the final agreement
is reached.
 Negotiation advantages and disadvantages.

 Advantages

 Expekted Quality and functions

Can be guaranteed.
 Speed up the entire process.

 Disadvantages.

 Non - competition high price

 Lack of Accountability

Other tendering methods

1. Two stage tendering

 This is a Variant of selective tendering.

 This is used when it is expected to bring the contractor on board earlier
than usual.
 Mostly used when tendering Specialized projects.
 Power plants.
 Manufacturing facilities.

Frist stage

Same as normal Selective tendering.

Tendering are informed of the second stage intention.

 Nature and extend of the contractor’s role
 Any special requirements.

Tendering is bassed on,

 Sedule of rates
 Prices of preliminaries
 % addtionfor over head and profite.

Second stage

Design, BOQ and shedules are finalized with consultantion of the contractor.

Rates and prices are negotiations and agreed work at site usually starts while negotiations are
ongoing.
Two envelop tendering
This is a combination of selective and open tendering.
Tenderers are invited to tender in the same manner as in open tendering.
However , the tenders have to submit their tender in two envelops.
 Technical proposal
 Financial proposal

1 Technical proposal
This includes the information regarding the tenderers tee technical, financial and managerial
capabilities.

Ex:- past financial records

2 Financial proposal
This includes the tenderers financial submission.
 Form of tender
 Priced BOQ

 Process

Technical proposals are open frist, evaluate and score according to a predetermind marking
scheme.

Draw up a list of only the technically qualitied tenderers based on the scores.

The financial proposal of only the technically.

3 Serial tendering
The contractor is selected through combination of selective tendering and nomination.
Used when the project can be carried out in successive phases.
The contractor is selected for the frist phase through selective tendering.
Rates and prices for the second phase will then be negotiated based on the rates and prices
agreed in the first phases.

Usually , a mechanism to adjust Rates for Successive phases are agreed in the first phase.

Main purpose of serial tendering is to get the benifit of continuity of works.

 Serial tendering advantages
 Main purpose of serial tendering is to get the benifit of continuity of works.
 As basic sitefacilities are already estabilished at the first phase, it is easier to start work
of Successive phases.
 Economical to have the same contractor continue rather than getting on board a new
contractor.

4 E- tendering
E- tendering can be defined as the electronic issusing and receipt of any tender
documentation in electronic format as part of the procurement process.

Information to be exchanged can be transmitted using electronic media as,

 Physical media
Ex:- CD , DVD and Memory Sticks.

 E-mail

 Web based technology

Advantages Disadvantages
Reduces paper use hence storage printing Uses advance technology
waste generation are limited
Fast and efficient Users must be familiar with the procedure.
Easy to evaluate

Referance
Lecture note