Bidding

Documents
BIDDING DOCUMENTS
Purpose:
Equal Information to ALL Bidders
What is to be Procured

Technical Requirements

How to Prepare a RESPONSIVE BID

Evaluation Criteria

Form of Contract
BIDDING DOCUMENTS
Impact of poorly drafted documents:

 Complaints from Bidders

 Selection of Poorly Qualified Firm

 Delays in Project Implementation

 Delays in Disbursements

 Lack of Credibility of Institutions

 Misprocurement

 Claims and Disputes

Standard Bidding Document
BID DOCUMENTS BASED ON:
Procurement Methods
ICB, NCB, Sealed Quotation, Direct Procurement,
User’s Group or Beneficiary Community

Process/Stages
Single Stage, Two Stage
Open Competition (with or without Pre-Qualification)

Type of Contract
Donor Guidelines
BIDDING DOCUMENT

The Bidding Documents should be; In case of

 clearly understandable, ambiguities
 specific, each party will
 complete, try to interpret
 correct, and the words in his
 unambiguous. favor.

In cases of ambiguities the court will interpret the

writing against the author (law of contrareferentum)

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WHAT ARE THE BID DOCUMENTS???
1. Preliminaries & Preambles Clauses Articles.
 Invitation for BIDS
 Instruction to Bidders.
 Bid Data Sheet
 Evaluation and Qualification Criteria
 Bid Form

2. Agreement & Condition of Contract.

3. Bank & Insurance guarantee form for performance bond & for the
advance payment.

4. Specification & Drawings.

5. Bill of Quantities.

6. Letter of Acceptance.

7. Letter of Intent.
1. Preliminaries & Preambles Clause Articles.
 INVITATION FOR BIDS
• The Invitation for Bids provides information that enables
potential bidders to decide whether to participate.

• Apart from a summary description of the works, the

Invitation for Bids should also indicate any important bid
evaluation criteria (for example, the application of a margin
of preference in bid evaluation) or qualification requirement
(for example, a requirement for a minimum level of
experience in similar works for which the Invitation for Bids
is issued).
 
• The Invitation for Bids form should be incorporated in the
bidding documents and should be consistent with the
information contained in Section II - Bid Data Sheet.
INSTRUCTION TO BIDDERS
• Instructions to Bidders, provides the information necessary
for bidders to prepare responsive bids in accordance with
the requirements of the Employer.

• It also gives information on bid submission, opening, and

evaluation, and on the award of the Contract.
 
• Instruction to Bidders includes provisions that are to be
used unchanged.

• Section II, Bid Data Sheet, consists of provisions that

supplement, amend, or specify information or changes to
Section I that are specific to each procurement.
INSTRUCTION TO BIDDERS (ITB)
 On composition of bidding documents and
preparation of bids,

 On bid submission, opening, evaluation, and award

of contract,

 Contents in ITB are to be changed as per project

requirement by BDS

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Instruction to Bidders (ITB)
 Information on whether alternative bids are
permitted or not, and if permitted What details are to
be given and how they will be evaluated to be clearly
mentioned,

 Information on whether the bidders are permitted to

submit the bid for part or not,

 Information on whether details of bid prices (rate

analysis) to be submitted or not ,
 Whether the prices are Fixed or Adjustable (as per
price adjustment formula),
 Currency acceptable in the bid price,
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Instruction to Bidders (ITB)
 Details of the Bid/ Performance/ Advance security
(Acceptable instruments, Formats indicating principal
terms and conditions, amount, and validity)

 Provision of Bid Withdrawal or Modification prior to

deadline for Bid submission (without forfeiture of bid
security),

 Procedure for seeking clarification, pre-bid meeting,

field visit etc,

 Validity of Bids and Bid Security,

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Instruction to Bidders (ITB)
 How the bids to be submitted (Sealed, Original, Copy,
Place, Deadline, etc.);

 Bid Opening (Place, Date, Time, Procedures);

 Criteria and Methodology for Bid Examination,
Comparison, and Evaluation (including the currency and
source/ date for exchange rate);

 Criteria and methodology for assessing Qualification of

Bidders;

 Agreeing for the proposed Dispute Settlement;

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Instruction to Bidders (ITB)
 Formalities to be fulfilled by the Bidder
before entering in to contract;

 Right to reject all bids or cancel the

proceedings without assigning any reasons;

 Title, Address, and Contact Persons of the

Employer;

 Bidder’s right to lodge complaint against

unlawful act/ decision and or procedures of
Employer;
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Bid Data Sheet
• The Bid Data Sheet (BDS) contains information and
provisions that are specific to a particular bidding process.

• The Employer must specify in the BDS only the

information that the ITB request be specified in the BDS.
All information shall be provided; no clause shall be left
blank.

• To facilitate the preparation of the BDS, its clauses are

numbered with the same numbers as the corresponding ITB
clause.
Evaluation and Qualification Criteria
• The bidders are required to be qualified by meeting
predefined, precise minimum requirements.

• The method entails setting pass-fail criteria, which, if not

met by the bidder, results in disqualification.

• It will therefore be necessary to ensure that a bidder’s risk

of having its bid rejected on grounds of qualification is
remote if due diligence is exercised by the bidder during bid
preparation.
 Evaluation and Qualification Criteria
 Clear-cut, fail-pass qualification criteria need to be
specified in order to enable bidders to make an informed
decision whether to pursue a specific contract and, if so,
either as a single entity or in joint venture.

 The criteria adopted must relate to characteristics that are

essential to ensure satisfactory execution of the contract,
and must be stated in unambiguous terms.
 Bidding Forms
• The Employer shall include in the BD all bidding forms that
the Bidder shall fill out and include in its bid.

• Bidding forms are the Bid Submission Sheet and relevant

Schedules, the Bid Security, the Bill of Quantities, the
Technical Proposal Form, and the Bidder’s Qualification
Information Form for which two options are attached.

• The Employer shall fill in all the required information in

each Bidding Form.
2. Agreement & Condition of Contract
 General Condition of Contracts
• The Conditions of Contract have been prepared for an
ad measurement (unit price or unit rate) type of
contract and cannot be used without major
modifications for other types of contract.

• The use of standard conditions of contract for all civil

Works will ensure comprehensiveness of coverage,
better balance of rights or obligations between
Employer and Contractor, general acceptability of its
provisions, and savings in time and cost for bid
preparation and review, leading to more economical
prices.
Special Condition of Contracts

• The SCC complement the General Conditions (GC) to

specify data and contractual requirements linked to the
special circumstances of the country, the Employer,
the Engineer, the sector, the overall project, and the
Works.

• While drafting SCC, one should be thoroughly familiar

with the provisions of the GC and with any specific
requirements of the Contract.

• Legal advice is recommended when amending

provisions or drafting new ones.
3. Bank and Insurance
Guarantee
A. Bid Bond (Bond Security)
 Bid Security Money
 The bid bond protects the project's owner if the bid is not
honored by the principal, such as a contractor.
 The owner is the obligee under the bond and has the right to
sue the principal and the surety (the issuer of the bond) to
enforce the bond.
 If the principal refuses to honor the bid, the principal and the
surety (the insurance company or bank issuer of the bond) are
liable for any additional costs incurred in contracting a second
time with a replacement contractor.
 Normally 2-3% of the total budget estimated or proposed as
specified by the employer.
B. Performance Bond
 A contractor, or principal, uses a performance bond to
guarantee that it will complete the contract in
accordance with its terms.
 If the principal defaults, the owner may call upon the
surety to complete the contract.
 In such a case, the surety will have to hand the contract
to a new contractor or pay the costs for the owner to
complete the contract.
 Need to submit after selection of the contractor.
 Validity Period= Contract Duration +DLP
 Determined by the price quoted by the contractor with
respect to the official estimate of the employer.
 Performance Bond
 1) For 15% below quote
 =Quoted price *0.05*VAT

 2) For >15% quote

=(((0.85*office estimation)-quoted
price))/2+(0.05*quoted price))* VAT
C. Additional Performance Bond
 Additional 8% of quoted price in case of front
loading or unbalanced quotation.
 For eg:
 Excavation- High
 Soling- High
 RCC-High
 Brick work-Low
 Plaster-Low
 Finishing-Low
D. Advance Payment Guarantee
 10% of quoted price is paid after work order or
contract signing.

 Rest 10% is paid only after performance evaluation

of the contract.

 Advance Payment Guarantee= 20% of the quoted

price.

 Needed for the security of the employer in case

of contractor cancel the work or stop performing.
4. Specification & Drawings
SPECIFICATIONS
 How the work should be executed.

 Technical guidelines normally.

 For eg-
 PCC Work- 1:2:4
 Concrete- M25, M40, M100 etc.
 Fe 400, Fe 500, Fe 500D etc.
 Specifications
• Precise and clear Specifications are a prerequisite for
bidders to respond realistically and competitively to the
requirements of the Employer without conditioning their
bids.

• In the context of international competitive bidding, 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 realized,
responsiveness of bids be ensured, and the subsequent
task of bid evaluation facilitated.
Specifications
• 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.

• 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.
Drawings
• It is customary to bind the drawings in a separate
volume, which is often larger than other volumes of the
contract documents.
• The size will be dictated by the scale of the drawings,
which must not be reduced to the extent that details are
reduced illegible.
 
• A simplified map showing the location of the Site in
relation to the local geography, indicating major roads,
posts, airports, and railroads, is helpful.
 
• The construction drawings, even if not fully developed,
must show sufficient details to enable bidders to
understand the type and complexity of the work
involved and the price the Bill of Quantities.
5. Bill of Quantities
The objectives of the Bill of Quantities are
(a) to provide sufficient information on the quantities of
Works to be performed to enable Bids 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.
Bill of Quantities
Bill of Quantities
The Bill of Quantities should be divided generally into the
following sections:

(a) Preamble;

(b) Work Items (grouped into parts);

(c) Day works Schedule;

(d) Provisional Sums; and

(e) Summary.
6. Letter of
Acceptance
Letter Of Acceptance
 After Selection of the contractor.

 Letter to be issued by the employer to

the winning form.

 Call for contract signing within

specified days.
7. Variation Order
Variation Order
 A variation (sometimes referred to as a
variation instruction, variation order (VO) or
change order), is an alteration to the scope of
works in a construction contract in the form of an
addition, substitution or omission from the original
scope of works.
VARIATION ORDER
 Formula discussion.
 Overall Variation:
 5%- Office Head (3rd Class officer)
 10%- Office Head (2nd Class Officer)
 15%- Department Head (DG)
 15-25 % - Secretary of Ministry
 25% >- Cabinet
8.Letter of Intent
LETTER OF INTENT

 Before Sending Letter of Acceptance, LOI is issued.

 Either in Newspaper or individual letter sent to the

bidders.

 Can be sent after technical evaluation also for any

claim and confusion clearance.

 Call within 7 days.

Precedence of Laws and Regulations

If any provisions of this document are

inconsistent with Public Procurement Act
(PPA), 2063 or Public Procurement
Regulations (PPR), 2064, the provision of
this document shall be void to the extent of
such inconsistency and the provision of PPA
and PPR shall prevail.

Clauses/Requirements of SBD to be Made Consistent With

the ACT and REGULATION
USE OF STANDARD BID DOCUMENT
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