15 Days Online Workshop on

Contract Methodology, Managing Disputes & Avoiding Construction Claims

Day 2 (03 March 2021)

02 March Onwards for 15 days

Via Online Platform Zoom
Organizer : One door Solution Pvt. Ltd. , Gairigaun, Tinkune, KTM
Course Facilitator:
Er. Abhushan Neupane
MSc. (TIM), B.E (Civil)-TU
NEC No: 3173 “A” Civil
https://www.linkedin.com/in/abhushanneupane/
Viber/Whatsapp: +9779841615007
Email: abhushan.neupane2020@gmail.com
Invitation for Bids shall Contain:
• The address of Public entity
• First date of Publication
• Source of Fund
• Work/Good/Service identification
• Experience required
• Bid Identification/its Bid
Security/Document fee etc
• Place of purchase and deadline to
purchase
• Bid validity
• Information of JV
• Site visit information
• Pre-bid meeting information
• Bid submission information
• Opening of Bids info
• Last date/Government holidays
• Right of the Employer to accept
or reject the bid wholly or
partially
• Contact information for additional
information regarding IFB
Approval Authority of Cost Estimates
Master Procurement Plan
Annual Procurement Plan
Procurement Implementation schedule/Control
Approval Authority for Works and Goods
(PPMO)
• Cost Estimate
• Up to 1 Crore III Class
• Up to 5 Crore II Class
• Up to 10 CroreI Class
• Above 10 Crore Department head

• NRS 20 lakhs above shall be done by Competitive bidding

• VAT/PAN/Company Registration is necessary for Competitive bidding
• Domestic Preference shall be given to Domestic bidders upto 15% more cost
• Works exceeding not more than 10 MN is carried out by Users’ Committee
Bid approval authority, PPMO
Outline
• Prequalification / Post qualification
• Procurement terminologies
• Types of Construction Procurement
• Procurement packaging
• Procurement cycle
• Procurement types
• Procurement risks
• Procurement planning and implementation
Tenders are usually conducted in
four stages: Prequalification; the
issue of tender documents;
receipt and review of tenders;
award of contract.
Prequalification of Bids
• Prequalification is a means of identifying contractors who indicate
that they are qualified and would be interested in tendering for a
potential project. Prequalification is not tendering; it is not always
used and it is not always necessary that it be used. Most contracts are
publicly advertised for tendering without the need for
prequalification. Prequalification is primarily applied for large,
complex projects that require specialised technical expertise.
Prequalification also allows for “Early Contractor Involvement“(ECI)
provides an efficient means of designing and planning infrastructure
projects in a cost-effective, more efficient and less adversarial
structure in which qualified contractors can offer their expertise prior
to the start of a project. (sample)
ADVANTAGES OF PREQUALIFICATION

• Prequalification saves the owner of the project time and

money by eliminating unqualified contractors from the start.
It short lists contractors which have the required
competence to comply with the terms of the contract and
the financial and technical ability to undertake the work.
In the case where prequalification is used, only contractors
which have been pre-qualified are eligible to bid on the
contract. Guidance on suitable forms for prequalification is
given by FIDIC.
Procurement facts and figures ( Nepal)
• 60-70 % of National budget is spent from Public
procurement
• About 7.23 % (2076/77) of GDP contribution by
Construction sector
• 2074-08 Bhadra , Bidhutiya Kharid Pranali Nirdesika
2074 in force which has facilitated e-GP system in Nepal
• Public Procurement Management system (PPMS) in
action in Nepal
Common Procurement
Terminologies

14
Common Procurement Terminologies

• Acceptance • Contractor’s Bid

• Compensation • Contract Price
events • Defect Notification
• Commencement Period
date • Employer
• Contract Data • Initial Contract Price
• Contractor • Intended Completion
• Bid Bond date
• Performance Bond
Common Procurement Terminologies

• Site • Liquidated Damage

• Site Investigation report • Advance Payment
• Subcontractor
• Retention Money
• Possession date
• Tax Deduction at
• Insurance
Source (TDS)
• Variation Orders
• Payment Certificates
• Price adjustment
• Taking over certificates • Day works Schedule
• Claims
Types of Construction Procurement
Procurement Package Selection
Procurement Package Selection
(Norwegian Practice)
Procurement Package Selection
Procurement Process
Procurement Cycle
Procurement Types

Local Competitive
bidding
Bidding Procedure
• Single stage single envelope (1S1E)
• Single stage double envelope
• Double stage single envelope
• Double stage Double envelope(2S2E)
Procurement Risks
• Pre Tender Risks
• Procurement Need
• Procurement planning and Budgeting
• Requirements for Procurement
• Procedure choice
• Tendering Risks
• Invitation for tendering
• Evaluation and Analysis
• Award
• Post Award
• Contract Management
• Order Payment
Procurement Planning

1. Master Procurement Plan

2. Annual Procurement Plan
3. Procurement Scheduling and Control
Assignment
• Doodhpokhari Chepe HPP, 8.8 MW HPP has received a fund of NRs.
200 MN for Rural Infrastructure Development and Rural Electrification
Scheme at Ajirkot Rural Municipality of Gorkha district, Gandaki
Provience, Nepal. The fund was provided by USAID and DFID.
• It intends to procure the works under National Competitive bidding as
stipulated by Public Procurement Regulation 2064 of Nepal
• The INVITATION FOR BID is very urgent to be prepared by assuming
2.5% Bid security amount of 90 days validity
• Let Everyone draft the IFB and send it over Viber Group. It shall be
Published by 02nd September 2020