B2 TRAINING ON

PROCUREMENT OF
WORKS AND
CONSULTANCY
SERVICES

IPFMRP – CDP Project

 Day 3-
Session I:

STANDARD BIDDING
DOCUMENT,BIDING
DOCUMENT
B2 TRAINING ON PROCUREMENT OF WORKS AND CONSULTANCY
SERVICES
PREPARATION,
BIDDER'S ELIGIBILITY, IPFMRP – CDP Project
QUALIFICATION AND
EVALUATION
CRITERIA
  Provision Relating to Bidding
 Bidding Document
 Qualification of Bidder
 Bidder's Eligibility Criteria
 Criteria for Qualification of a
Presentation Construction Entrepreneur
Outlines  Criteria of Qualification for JV
 Pre-Qualification of Bidders
 Bidders Evaluation Criteria
 Post-Qualification of Bid
Document
 Provision Relating to Bidding (Rule 31)
 Procurement to be Made through Bidding: A Public
Entity shall have to procure construction work valuing
above 20 million Rupees through a bid.
 In the conditions set forth for International Bidding
(Section 15) of the Act, construction works shall have
to be procured by inviting an open international level
bidding.
 Disclosures of Evaluation and Qualification Criteria is
an essential elements for transparancy in procurement
and also for competitive purpose.
 FAMILIARITY WITH THE RELEVANT KEY WORDS
“Bid” means a document setting out price, proposal or rate
submitted by a bidder in the format specified by a Public Entity as per
the notice published by that entity for procurement;
 “Bidder” means any person, firm, organization or company that
submits or may submit bid to take part in procurement proceedings;
 “Bidding Document” means a document prepared by the
concerned Public Entity making invitation to bid for submission by
bidders by filling up or preparing price or proposal or rate in such
document and this term also includes instructions to bidders,
specifications, drawing, design, terms of reference, schedule of work,
evaluation criteria, bill of quantities, conditions of contract and
similar other documents;
 “Procurement Contract” means a procurement contract entered
into between a Public Entity and a supplier or construction
5
entrepreneur or consultant or service provider
 BIDDING DOCUMENT CONTENTS (SEC. 13)

PPA has stated that Bidding Documents should be prepared prior to invitation to
bid.
As per PPA , a PE shall have to prepare the bidding documents and shall contain the
following matters:-
(a) The nature of procurement, time required for procurement and technical
specifications thereof,
(b) If prequalification (PQ), criteria for bidder qualification
(c) Site visit, information relating thereto,
(d) Pre-bid conference - prior to submission of bid, information relating to such
conference
 BIDDING DOCUMENT CONTENTS (SEC. 13)
(e) Instructions for preparing and submitting bids, the place and deadline for the
submission of bids and the place, date and time for the opening of bids,
(f) Component of price, the currency or currencies in which the bid price may be
stated, the currency and the source and date of the related exchange rate to be used
for comparison of bids,
(g) The criteria and methodology for the evaluation of bids and the selection of
bidder,
(h) The preferences to be given, if any, for domestic goods and local construction
entrepreneurs, provision relating thereto,
 BIDDING DOCUMENT CONTENTS (SEC. 13)
(q) Provision that any bidder may make an application, for review, against any error or
decision made by the Public Entity in carrying out bid proceedings,
(r) Provision that the documents proving technical capacity and financial proposal
(bid price) have be submitted in one
(s) Such other matters determined by the PPMO as to be involved in the PQ
documents or bidding documents.
 BIDDING DOCUMENT CONTENTS (SEC. 13)
The Public Entity shall make available the bidding documents upon collection of the
charges as prescribed to any person, firm, organization or company that requests for
the bidding documents in accordance with the notice for invitation to bids, and
where prequalification is required to participate in the procurement proceedings, to
those persons, firms, organizations or companies that have been pre-qualified and
request for such documents.
Public Procurement Monitoring Office,
website:ppmo.gov.np

10
 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
 Lack of Credibility of Institutions
 Claims and Disputes
 STANDARD BID DOCUMENT (WORKS)
Invitation for Bids
Part I: BIDDING PROCEDURES
Section I: Instructions to Bidders
Section II : Bid Data Sheet
Section III: Evaluation and Qualification Criteria
Section IV: Bidding Forms
Section V - Eligible Countries
Part II :BIDDING PROCEDURES
Section VI: Works Requirements
Section VI: Bill of Quantities
Part III: CONDITIONS OF CONTRACT AND CONTRACT FORMS
Section VIII: General Conditions of Contract
Section IX: Special Conditions of Contract
Section X: Contract Forms
13
 Invitation For Bids (IFB)

Provides information that enables potential Bidders to decide whether to participate.

Indicates any important bid evaluation criteria:
 Qualification requirement;
 Prequalification/Post Qualification;
 Minimum level of experience required
 Domestic preference;
Invitation for Bids is not a part of the Bidding Document and therefore it shall not be
included in the Bidding Document.

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 Invitation for Bid
 Publication of Procurement Notice
 Place and Period in Which the Bidding Documents are Made Available
 Date of Closing and Extensions, if any
 Pre-bid Conference
 Place of Submission of Bids
 Date and Time of Public Bid Opening

15
 Instruction to Bidders (ITB)
For bidders to prepare Responsive bid,
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
ITB will not be a part of contract,

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 Bid Data Sheet (BDS)
This section consists of provisions specific to each procurement and supplements the
information or requirements included in Instructions to Bidders (ITB)
BDS must refer to Instructions to Bidders (ITB) Clauses,
Bidding data is used to specify the ITB clauses by inserting specific data (name, days,
amount etc.) and required changes,
Bidding data replaces the ITB clauses, if changed,
Bidding data to be filled out by the Employer before issuance of the Bidding
documents.

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 Section I: Instructions to Bidders
A. General
1.1 In connection with the Invitation for Bids indicated in the Bid Data Sheet (BDS), the Employer, as
1.
Scope indicated in the BDS, issues this Bidding Document for the procurement of Works as specified in
of Bid Section VI (Works Requirements). The name, identification, and number of Contracts of the National
Competitive Bidding (NCB) are provided in the BDS.

1.2 Throughout this Bidding Document:

(a)the term “in writing” means communicated in written form and delivered against receipt;
(b) except where the context requires otherwise, words indicating the singular also include the
plural and words indicating the plural also include the singular; and
(c) “day” means calendar day.
2.1 GoN Funded: In accordance with its annual program and budget, approved by the GoN, the
2. Source
of implementing agency indicated in the BDS plans to apply a portion of the allocated budget to
Funds eligible payments under the contract(s) for which this Bidding Document is issued.
Or
Public Entities' own Resource Funded: In accordance with its annual program and budget, approved by
the public entity, the implementing agency indicated in the BDS plans to apply a portion of the
allocated budget to eligible payments under the contract(s) for which this Bidding Document is
issued.
Or
DP Funded: The GoN has applied for or received financing (hereinafter called “funds”) from the
Development Partner (hereinafter called “the DP”) indicated in the BDS toward the cost of the
project named in the BDS. The GoN intends to apply a portion of the funds to eligible payments
under the contract(s) for which this Bidding Document is issued. 18
 Section I: Instructions to Bidders
42.
Complaint 42.1 If a Bidder is dissatisfied with the Procurement proceedings or the
and Review
decision made by the Employer in opening of the price bid or the
intention to award the Contract, it may file an application to the Chief
of the Public Entity or Public Procurement Monitoring Office or office
established as per Clause 145(a) of the Public Procurement
Regulation within Seven (7) days of providing the notice under ITB
25.8 and ITB 39.1 by the Public Entity, for review of the proceedings
stating the factual and legal grounds.
42.2 Late application filed after the deadline pursuant to ITB 42.1 shall
not be processed.
42.3 The chief of Public Entity shall, within five (5) days after
receiving the application, give its decision with reasons, in writing
pursuant to ITB 42.1:
(a) whether to suspend the procurement proceeding and indicate the
procedure to be adopted for further proceedings; or
(b) to reject the application.
The decision of the chief of Public Entity shall be final for the Bid
amount up to the value as stated in 42.4. 19
 Section II: Bid Data Sheet
A. General
ITB 1.1 The number of the Invitation for Bids is: ………. [insert IFB Number]
ITB 1.1 The Employer is: ………[insert the name of Employer]
ITB 1.1 The number and identification of lots comprising this bidding process is: [insert the name
and contract number of the lots]
ITB 2.1 The name of the Project is… [insert the name of the project, if any]
The DP is… [insert the name of development partner, if any]
The implementing agency is…[insert the name of The implementing agency]
GoN Funded or DP Funded: ……....[insert GoN Funded or DP Funded or PE's own resource
funded]

ITB 3.3 (d) For DP Funded:Not Applicable

(For GoN funded delete this row)

ITB 4.1 (a) For GoN Funded:

Maximum number of partner in a joint venture shall be : 3 (three)
For DP Funded:
[select one options as per DPs Policy]
There is no limit on the number of members in a JV
or
Maximum number of partner in a joint venture shall be : [insert number]
20
ITB 4.4 For DP: [insert website address for the list of debarred firms]
 B. Bidding Document
For clarification purposes only, the Employer’s address is:
Attention: ______________________________
Address: _________________________
Telephone: : _____________________
Facsimile number: _____________________
Electronic mail address: __________________
A Pre-Bid meeting [insert “shall” or “shall not”] held. [If pre-Bid
meeting is going to be held, insert the following otherwise delete]
Pre-Bid Meeting will
Take place at the following date, time and place:
Date: ____________
Time: ____________
Place: ____________
A site visit [insert “shall be” or “shall not be”] organized by the
Employer.
Time for request: Requests for clarification should be received by the Employer no
later than 10 days prior to the deadline for submission of bids. 21
C. Preparation of Bids

22
 D. Submission and Opening of Bids
ITB 21.1 Bidders shall have the option of submitting their bids ____[insert option 1: "by electronic
only"
option 2: or "by electronic or by mail / by hand / by courier"
option 3: "by mail / by hand / by courier"]___ .
ITB 22.1
For bid submission purposes only, the Employer’s address is :
Attention : …………………………
Address : ………………………….
The deadline for bid submission is :
Date : …………………………..
Time : ………………………….. [Insert time that is immediately after submission
deadline]

ITB 25.1
The Technical Bid opening shall take place at :
Address : ………………………
Date : …………………………..
Time : ………………………….

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 E. Evaluation and Comparison of Bids
ITB 34.1
a) Contractor’s proposed subcontracting: Maximum percentage of
subcontracting permitted is: 25% of the total contract amount.
b) Sub-contractors’ qualification and experience will not be considered
for evaluation of the Bidder. The Bidder on its own (without taking into
account the qualification and experience of the sub-contractor) should
meet the qualification criteria.

ITB 35.5
The amount of the performance security be increased by 50 percent on
the original bank guarantee of 5 percent (if quotated amount is within 15
percent below of estimate) of the quoted amount between the between
85 percent and the quoted bid price.

ITB 41.4 For DP Funded: Not Applicable

[For GoN funded delete this row]

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Section III: Evaluation and Qualification Criteria
This Section contains all the criteria that the Employer shall use to evaluate bids
and qualify Bidders by post-qualification exercise. GoN/DP requires bidders to
be qualified by meeting predefined, precise minimum requirements. The
method sets pass-fail criteria, which, if not met by the bidder, results in
disqualification.
In accordance with ITB 32 and ITB 35, no other methods, criteria and factors
shall be used.
The Bidder shall provide all the information requested in the forms included in
Section IV (Bidding Forms).
1. Evaluation
In addition to the criteria listed in ITB 35.2 (a) - (e) the following criteria shall
apply:
Note:
Use the evaluation criteria listed below as appropriate and required for the
project.
1.1 Adequacy of Technical Proposal
the requirements stipulated in Section VI (Works Requirements).
1.2 Multiple Contracts
Multiple Contracts, if permitted under ITB 35.4, will be evaluated as follows:
Award Criteria for Multiple Contracts [ITB 35.4:
25
Bidders have the option to Bid for any one or more Contracts.
Section III: Evaluation and Qualification Criteria
.
Qualification Criteria for Multiple Contracts:
The criteria for qualification shall be the sum of the minimum requirements for respective individual contracts
Contract 1: N1 contracts, each of minimum value V1;
Contract 2: N2 contracts, each of minimum value V2;
Contract 3: N3 contracts, each of minimum value V3;
----etc.
and
•Total number of contracts is equal or less than N1 + N2 + N3 +--but the total value of all such
contracts is
• equal or more than N1 x V1 + N2 x V2 + N3 x V3 +---.
1.3In Case, other than Multiple Contracts
Bidders have the option to Bid for any one or more Contracts.
1.4 Completion Time
An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows:
[insert project specific requirements]
1.5 Alternative Technical Solutions
Alternative technical solutions, if permitted under ITB 13.4, will be evaluated as follows:
[insert project specific requirements]
1.6 Quantifiable Nonconformities and Omissions
Subject to ITB 14.2 and ITB 35.2, the evaluated cost of quantifiable nonconformities including
omissions, is determined as follows:
[Insert in bidding document: “Pursuant to ITB 31.3, the cost of all quantifiable nonmaterial
nonconformities shall be evaluated,
but excluding omission of prices in the BoQ.The Employer will make its own assessment of the cost
of any nonmaterial nonconformities
and omissions for the purpose of ensuring fair comparison of bids.”] 26
 Evaluation and Qualification
Qualification for Eligibility
Nationality
Conflict of Interest
Government/DP Eligibility
Government owned Entity
UN Eligibility
Other Eligibility
 Firm Registration Certificate
 Business Registration Certificate
 VAT and PAN Registration Certificate
 Tax Clearance Certificate/Tax return submission
 Evaluation and Qualification
 Pending Litigation
 Financial Situation

Historical Financial Performance

Average Annual Construction Turnover
Financial Resources
 Experience
General Construction Experience
Specific Construction Experience
Contract of Similar Size and Nature
Construction Experience in Key Activities
 Personnel
 Equipment
 Subcontractors
 Evaluation and Qualification: Pending Litigation

Criteria Compliance Requirement

Joint Venture

Requirement Single Entity All Partners

Each Partner One Partner
Combined

Pending Litigation
All pending litigation must meet not applicable must meet not applicable
shall be treated as requirement requirement by
resolved against the by itself or as itself or as
Bidder and so shall in partner to past partner to past
total not represent or existing JV or existing JV
more than …percnt of
the Bidder’s net worth.

29
 Evaluation and Qualification: Financial Situation
Criteria Compliance Requirement
Joint Venture
Single
Requirement All Partners Each
Entity One Partner
Combined Partner
Historical Financial Performance
Submission of audited balance must meet not applicable must meet not applicable
sheets and income requirement requirement
statements, for the last ……
years to demonstrate the
current soundness of the
Bidder’s financial position. As
a minimum, a Bidder's net
worth calculated as the
difference between total
assets and total liabilities
should be positive.
30
 Evaluation and Qualification: Financial
Situation
Criteria Compliance Requirement
Joint Venture
Single All
Requirement Each One
Entity Partners
Partner Partner
Combined
Average Annual Construction Turnover
Minimum average annual must meet must meet must meet must meet
construction turnover of requirement requirement . . . . . . . . . ........
NRs. ………………….,
of the of the
calculated as total
requirement requirement
certified payments
received for construction
contracts in progress or
completed, within best
three years out of last
ten years..
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 Evaluation and Qualification: Financial
Situation
Criteria Compliance Requirement
Joint Venture
Single
Requirement All Partners Each One
Entity
Combined Partner Partner
Financial Resources
Using Forms FIN – 3 and FIN must meet must meet must meet must meet
- 4 in Section IV (Bidding requirement requirement ......... ........
Forms) the Bidder must
demonstrate access to, or of the of the
availability of, financial requirement requirement
resources such as liquid assets,
unencumbered real assets,
lines of credit, and other
financial means, other than any
contractual advance payments
to meet its current contract
commitments, plus:
the following cash-flow
requirement NRs ………..……………
 Evaluation and Qualification: Experience

Criteria Compliance Requirement

Joint Venture
Single
Requirement All Partners Each
Entity One Partner
Combined Partner
General Construction Experience
Experience under construction must meet not applicable must meet not applicable
contracts in the role of requirement requirement
contractor, subcontractor, or
management contractor for at
least the last ……. years prior
to the applications submission
deadline.

33
 Evaluation and Qualification: Experience

Criteria Compliance Requirement

Joint Venture
Single
Requirement All Partners Each
Entity One Partner
Combined Partner

Specific Construction Experience: Contracts of Similar Size and Nature

Participation as Prime contractor, must meet must meet not applicable not applicable
management contractor, or requirement requirement
subcontractor, in at least .…. contracts
within the last ten (10) years, each with
a value of at least NRs ….…………... that
have been successfully or are
substantially completed and that are
similar to the proposed works. The
similarity shall be based on the physical
size, complexity, methods, technology
or other characteristics as described in
Section VI, Works Requirements.
 Evaluation and Qualification: Experience

Criteria Compliance Requirement

Joint Venture
Single
Requirement All Partners Each
Entity One Partner
Combined Partner

Specific Construction Experience: Construction Experience in Key Activities

For the above or other must meet must meet not applicable not applicable
contracts executed during all all requirements
the period stipulated in ...., requirements
a minimum construction
experience in the following
key activities:

??? ????
35
 Evaluation and Qualification: Personnel

Total Work Experience

No. Position Experience In Similar
[years] Works [years]
1
2
3

36
 Evaluation and Qualification: Equipment

Equipment Type and Minimum Number

No.
Characteristics Required

37
 Bidding Forms

Forms provided by the Employer that the Bidder must complete and include in
its Bid
Standard Bidding Forms are:
 Letter of Bid (Technical/Price)
 Bid Security / Bid-Securing Declaration
 Technical Proposal Format
 Personnel/Equipment Forms
 Bidder’s Qualification Forms

38
 Bidding Forms

Letter of Bid (Technical/Price)

Constitutes formal confirmation by bidder to execute and complete
the works specified
Bid Security: Form of unconditional bank guarantee
Purpose: To ensure that validity of bid will be maintained until
contract is awarded or until expiration of bid validity, and until
performance guarantee is furnished
Technical Proposal
PER – 1, PER – 2, Equipment, Site Organization, Method Statement,
Mobilization Schedule, Construction Schedule
Bidder’s Qualification Forms
ELI – 1, ELI – 2, LIT – 1, FIN – 1, FIN – 2, FIN – 3, FIN – 4, EXP – 1,
EXP – 2(a), EXP – 2(b).

39
 Preparation of Specs. and BOQ
 Precise and clear Technical Specification
 Permit widest possible competition
 Clear statement of the required standards of
materials, Plant, other supplies, and workmanship
 Specifications not to be restrictive
 Required quantity with cross reference to
specification

40
 General Conditions of Contract (GCC)
This Section of the Bidding Documents should provide:
 Information on Matters governing the performance of the Contractor
 Payments under the Contract
 Matters affecting the risks, rights, and obligations of the parties
If duplication of a subject is inevitable in the different sections of the documents,
care must be exercised to avoid contradictions between clauses dealing with the
same matter.

41
 General Conditions of Contract (GCC)
 To be read in conjunction with the Special Conditions of Contract and other
documents as listed in Bidding document,
 Should fairly express the Rights & Obligations of both parties,
 To be written in Simple language and Standard clauses with no change,
 Standard CoC can be different for Large, Medium, Small, admeasurement, lump
sum and design and build contracts

 GCC cannot be Changed /modified- Modification shall be made in SCC, If new

clauses is necessary then such clauses need to be added in SCC and the
information to this regard need to mention in GCC to that extent

42
 Special Conditions of Contract (SCC)
Special Conditions of Contract provides contract specific information in relation to
Clauses in CoC,
If provisions in CoC are not relevant to the Contract, those should be marked “NA”
(Not applicable).
If provisions in CoC are not sufficient to describe the contract specific information,
those clauses may be modified or some new provisions may be added, as needed.
Special Conditions of Contract to be filled by the Employer before issuance of Bidding
documents

43
 SCC: Content to Fill-refer GCC
GCC 1.1(q) The Employer is ...........................

GCC 1.1 (v) The Intended Completion Date for the whole of the Works shall be ...

GCC 1.1(bb) & The Project Manager is ... .... . [insert name of Project Manager]
10.1
The Project Manager and Engineer are synonyms.

GCC 1.1 (ee) The Site is located at ... [insert location] and is defined in drawings No.

GCC 1.1 (hh) The Start Date shall be ... .. [insert date]

GCC 1.1 (ll) The Works consist of ... ...... [insert the name of Works to be completed by the
Contractor].

GCC 2.2 Sectional Completions are: ... .... .. [insert detail if applicable]

44
 SCC: Content to Fill-refer GCC
GCC 2.3(i) The following documents also form part of the
Contract: ...............................
GCC 3.1 The language of the contract is ENGLISH/NEPALI
The law that applies to the Contract is the law of NEPAL.
GCC 11.1 The Project Manager …………. Delegate any of his duties and
responsibilities
GCC 14.1 Schedule of other contractors ……..[Insert details as appropriate]

GCC 19.1 The minimum insurance amounts and deductibles shall be:
1. The minimum cover for loss of or damage to the Works,
Plant and Materials is:
2. The maximum deductible for insurance of the Works and of
Plant and Materials is:
3. The minimum cover for loss or damage to Equipment is :

4. . The maximum deductible for insurance of Equipment is:

45
 SCC: Content to Fill-refer GCC
GCC 19.1 5. . The minimum for insurance of other property is:
with unlimited number of occurrences
6. . The maximum deductible for insurance of other property is :

7. The minimum cover for personal injury or death insurance

i. for the Contractor’s employees is that specified in the Labour act
of Nepal and
ii. for other people is : with an unlimited number of
occurrences
GCC 20.1 Site Investigation Reports are: .................................................

GCC 23.1 The following shall be designed by the Contractor: [insert as

appropriate]
GCC 26.1 The Site Possession Date(s) shall be:

GCC 30.1 The place of arbitration shall be: [insert place]

46
 SCC: Content to Fill-refer GCC

GCC 34.1 The Contractor shall submit for approval a Program for the Works within
…………… days from the date of the Letter of Acceptance.
GCC 34.3 The period between Program updates is ….............. days.
The amount to be withheld for late submission of an updated Program
is ...............

GCC 42.1 The Defects Liability Period is: ....... days.

GCC 49.1 [insert the prevailing interest rate …………..]

47
 SCC: Content to Fill-refer GCC

GCC 53.1 The Contract ................. subject to price adjustment in accordance

with GCC Clause 45.1, and the following information regarding
coefficients .................... apply.

GCC 53.6 Base Price of Construction Materials [to be listed]

GCC 53.7 The Price Adjustment amount shall be limited to a maximum [Insert
percent] percentage of the initial Contract Amount [normally 25 %]
GCC 54.1 The proportion of payments retained is: 5 (FIVE) PERCENT
GCC 55.1 The liquidated damages for the whole of the Works are 0.05% of the
final Contract Price per day. The maximum amount of liquidated
damages for the whole of the Works is 10 PERCENT of the final
Contract Price.

48
 SCC: Content to Fill-refer GCC

GCC 56.1 The Bonus for the whole of the Works is ........................ per day. The maximum
amount of Bonus for the whole of the Works is ........................of the final Contract
Price.
GCC 57.1 The Advance Payments shall be: ............................... and shall be paid to the
Contractor no later than .................................
GCC 57.3 Deductions from … Exceeds 30% .Deduction will be at …………completely repaid
prior to the end of 80% of the approved contract period.
GCC 58.1 The Performance Security amount is ...................................
[insert amount including an additional amount based on ITB 40.1 and/or
ITB 35.5 if the Employer has increased the Performance Security amount]

GCC 71.1 The date by which operating and maintenance manuals are required is .................
The date by which “as built” drawings are required is .....................

GCC 71.2 The amount to be withheld for failing to produce “as built” drawings and/or
operating and maintenance manuals by the date required in GCC 58.1
is ..........................
GCC 72.3 (i) The maximum number of days is: ......................
49
 Special Conditions of Contract
GCC 80 The Project Manager has to obtain the specific approval of the Employer for
taking any of the following actions:
a. Approving subcontracting of any part of the works under General
Conditions of Contract Clause 13;
b. Certifying additional costs determined under General Conditions of
Contract Clause 50;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under
General Conditions of Contract Clause 35;
e. Issuing a Variation under General Conditions of Contract Clause 1 and
46, except in an emergency situation, as reasonably determined by the
Engineer; emergency situation may be defined as the situation when
protective measures must be taken for the safety of life or of the works or
of adjoining property.
f. Adjustment of rates under General Conditions of Contract Clause 45;

50
 Points to Note:
 SBD's should be prepared as per the provisions made in the prevailing PPA/PPR
and Technical Guidelines / Directives of PPMO :
 PP Act in Force (2063 Poush 30, First Amendment on 2073 Asadh 30-
3 amendments upto now)
 PP Regulation (2064 Bhadra 3). Nineth amend- 2076 Poush
 Use PPMO’s model SBD (www.ppmo.gov.np)
 If no model document available then prepare considering professional and as per
the work requirement and legal provision and obtain consent from PPMO to use
for the purpose ( i.e. EPC-Engineering, Procurement and Construction Contract,
PPP etc.)
 Clauses/Requirements of SBD to be Made Consistent With the ACT and
REGULATION
 If Bidding Documents clauses/ provisions contradicted with PPA & PPR then the PP
Law apply

51
 Qualification of Bidder (Sec.10)
 Bids, pre-qualification proposals shall be evaluated only in
accordance with the criteria set forth in the bidding
documents, pre-qualification documents.
 The criteria shall equally be applicable to all bidders without
any discrimination.
 No qualification requirements shall be prescribed for the
procurement of a construction work the cost estimate of
which is less than twenty million rupees.
 The Public Entity may disqualify a bidder at any time if it finds
that the statement submitted by such bidder concerning the
qualifications was factually false or substantially incomplete.
 Minor errors can be corrected by seeking information from
the concerned bidder.
Qualification of Bidder (Sec.10) Contd..
 A bidder should fulfill qualification to obtain a
procurement contract.
 Depending nature of solicitation, bidder has to be fulfill
qualification.
 Bidder has to fulfill the qualification criteria set forth
in the bidding documents , if it is a bid or but if bidder
is applying for prequalification proceedings then the
qualification criteria set forth in the prequalification
documents should be fulfilled .
 Qualification of Bidder (Sec.10) Contd…
 Depending on the nature and complexity of the work the
following qualification criteria in the bidding documents
may be set forth: professional and technical
qualifications, equipment availability, past performance,
after-sale service arrangements, availability of spare parts,
legal capacity, financial resources and condition,
punishment for having committed professional offenses
and similar other criteria.
 Criteria set forth in the bidding / prequalification
document should not allow or to prevent only a particular
class of construction entrepreneur from participating in
the procurement process.
 Process and Stage of Bidding also be
considered while selecting Criteria (Sec 11)
PE should prepare criteria according to the process and
stage of the bidding, as follows:

•Inviting open bids by determining prequalification

•Inviting open bids without determining prequalification
•Open bid in a single stage
•Open bid in two stages
•National and International bidding
 Bidder's Eligibility Criteria (Rule 40)
 In the bidding /prequalification documents the following
criteria for a bidder's eligibility mentioned and copy of the
document to be submitted by the bidder to prove such
eligibility.
 Registration certificate of a firm, organization or company.
 Business registration license: means a certificate obtained
by a construction entrepreneur relating to construction
enterprises with the objective of carrying out a
construction business.
 Value Added Tax and Permanent Account Number (PAN)
registration certificate
 Bidder's Eligibility Criteria (Rule 40)
Contd..
 Tax clearance certificate or document of having submitted
tax returns from the Inland Revenue Office.
 A written declaration made by the bidder: Mentioning that
bidder is not ineligible to participate in the procurement
proceedings; has no conflict of interest in the proposed
procurement proceedings, and has not been punished for a
profession or business related offense.
 Other documents considered necessary by the Public Entity.

Case: If the public entity wants to include the blacklisting of

the bidder as the eligibility criteria, whether they can add it
there and can eliminate from the eligibility criteria ?
 Bidder's Eligibility Criteria (Rule 40) Contd..
 If the bidding documents omits to specify or does not specify
clearly about the documents or require amendment in some
respect, the Public Entity may state, clarify or amend such
documents by publishing a notice within the time for submission
of bids in a newspaper of national circulation and in the case of
international level bidding in an international media.
• Provided that ,in so publishing a notice, if the bidder requires
additional time to submit his/her bid, the deadline for
submission of bids shall also be extended.

Case: One construction entrepreneur in the bid document

submitted the copy of the eligible documents but have not
attested by bidder as informed in the procurement notice.
Whether on this basis the bidder can be eliminated from
further evaluation of their bid?
 Criteria for Qualification of a Construction
Entrepreneur (Rule-26):
 Qualification criteria for a bidder or a prequalified proponent of
a construction work above twenty million Rupees, any one or all
of the following matters according to necessity:
 General experience: carried out works solely as a prime contractor
or under management contract or partner in a joint venture or
sub-contractor (In the business from the year of establishment)
 A minimum average annual turnover : construction works of or
above the threshold completed solely or including the work
carried out as a partner in a joint venture .
 Provided that in cases where a national level open bidding is
invited, any three years maximum average turnover out of ten
years transaction shall be taken as criteria.
 Criteria for Qualification
 Special experience :
– Minimum Amount: monthly or annually a construction work
equivalent to the minimum amount set forth solely or by concluding a
management contract or as a partner of joint venture or sub-
contractor and
– Number of projects: completed successfully procurement contract of
the nature, complexity and construction technology similar to the
proposed contract in the number specified
 Economic and financial capacity: having or access to liquid assets, loan
facilities and other financial source (excluding advance payment under
any procurement contract) sufficient to meet the cash flow required to
complete the proposed construction work and other construction works
being carried out or committed to be carried out bidder or proponent, in
the event of stoppage or delays in payment of money required to start up
construction work under a procurement contract
 Criteria for Qualification
 Skilled manpower: set out in the bidding/ Prequalification
documents,
 Main equipment: In full working order of the ownership of
the bidder or proponent of pre-qualification or to be so
available through rent, lease, contract or other commercial
means as can be used freely during the procurement
contract period.
 Entrepreneur in the case of a national construction
entrepreneur, only the amount found after deducting the
amount for value added tax shall be computed and such
amount shall be adjusted according to up to dated price
index of the Nepal Rastra Bank.
 Criteria for Qualification
In asking documents that prove the technical competence of a
construction entrepreneur e, the Public Entity may ask from
the bidder /or the proponent any or all of the following
documents, according to the nature of construction work:

 (a) Details of the price, date and location of the

construction work completed by him/her during the
last ten years' period,
 (b) Proportion of the work intended by them to carry
out through a sub-contractor,
 (c) Details of the technical equipment and plant
available with him/her to complete the proposed
work.
 Criteria of Qualification for JV (Rule 28)
 Bidders may submit only one bid either as a partner of the joint venture
or as an individual (mutually exclusive)
 PE may specify in the bidding documents the minimum share of the
partners under the joint venture and the minimum qualification of the
principal partner and other partners. (40:25:25)
 Defining minimum share in respects of the partner under such venture:
 Average annual transaction turnover,
 Particular experience and the main work performed by them
 Cash flow available to carry out the construction work,
 Manpower capacity, and
 Tools or equipment capacity
 To ascertain a JV has fulfilled criteria for the minimum qualification as
specified in the bidding documents or not, the qualification of all partners
of such joint venture shall be calculated.
 Criteria of Qualification for JV..
 Individual qualification of a partner of a JV:
a) General experience in the concerned work,
b) Adequacy of resources required to complete the work being
carried out or to be carried out by them as per other contract,
c) Financial capacity , and
d) Past procurement litigation and result thereof.
 If a JV is selected for a procurement contract: After selection
JV has to be registered in the PAN & VAT in the Inland Revenue
Office as the partners of such joint venture to be jointly and
severally responsible.
 JV bid security must have been issued in the name of all the
partners with condition that all partners bear the liability.
 Documents Showing Economic and
Financial Capacity (Rule:29)
 Asking the documents to prove the economic and financial
capacity as per the nature of the construction work
• Bank statement,
• Financial statement of business related transaction,
• Balance sheet showing the statement of assets, liabilities and
profit and loss,
• Other matters showing his /her economic and financial status,
and
• Other matters
 In asking balance sheet of past two to five fiscal years period
may be asked according to the nature of the work.
 Provision Regarding Sub-contractor
(Rule-30)
 If a Public Entity is to invite a bid providing through a sub-
contractor , it shall have to specify the following:
• Statement causing the work to be carried out from a sub-
contractor,
• Maximum percentage of the work through a sub-contractor,
• Qualification criteria of the sub-contractor, according to
necessity.
 Bidder shall have to submit the documents that prove the
qualification criteria of the sub-contractor before
concluding the procurement contract.
 Pre-Qualification Criteria Required to be
Approved (Rule:33)

 Prior to inviting a PQ proposal , a Public Entity shall

have to get approved the PQ criteria as specified from
the Departmental chief.
 Matters to be Stated in Pre-Qualification
Documents (Rule:32)
a) Qualification required for the proposed work and in the case of a joint
venture, the qualification of the partners,
b) Documents /information to be submitted to prove qualifications and
eligibility,
c) If procurement requires separate lot or package of construction work,
such lot or package,
d) Method of preparing proposal,
e) Process of evaluating pre-qualification proposal,
f) Major conditions of procurement contract,
g) Matters specified from time to time by PPMO as required to be
included into the PQ documents, and
h) Method, place, deadline for submitting pre-qualification proposal.
 Bidders Examination and Evaluation
Criteria
Examination of Completeness of Bids Criteria (Rule 60):
Bidder as individual or as a partner of a JV in more than one
bid or not,
Disqualification Status and barred for participation in
procurement proceedings by PPMO for 1-3 years and blacklisted
for not paying a loan of a bank or financial institution for a
period of such blacklisting.
Bid submission in the bidding documents sold from the
concerned Public Entity or designated by it
 Bidder has filled in and submitted the same bidding
documents purchased by itself
 Evaluation of Bids (Rule 61)
 International level bidding: the bid price currencies,
exchange rate and currency
 Bids technical, commercial and financial aspect
 Bids minor deviations and material deviation with and
serious effect upon the scope, quality, characteristics,
conditions, performance or any other requirements
 Effect is caused to the cost
 An equal basis and adjusting price to the quoted price
of the bid.
 The evaluated price of a bid
 Evaluation Criteria of Financial Aspect
(Rule-64)
 Evaluation criteria applied after Technical and Financial aspects and following matters
need to set forth in the bidding documents:
(a) Inland transport cost,
(b) Technical features.
 Need to mention as evaluation criteria: minimum rate, capacity or output relating to
procurement set forth in the bidding documents.
 Domestic preference, if any ,to construction entrepreneur
 Instruction to Prepare and Submit Bid
(Rule 46)
Instructions in the bidding documents for preparing and submitting the bid,
provide instructions in respect of the following matters:
a)The language in which the bid is to be prepared,
b)Manner of expressing price in accordance with the International Commercial
Terms (INCOTERMS) to be used in International Trade,
c)Necessary information on joint venture,
d)A list of the documents to be submitted along with the bid by the bidder,
e)Sample of goods and number of samples to be submitted by the bidder to the
concerned Public Entity,
f)In the case of procurement of goods, whether there requires to be specified
the list of spare parts of such goods recommended by the manufacturer and the
quantity of stock with him/her of each spare parts, their per unit price and
whether the price of these spare parts will escalate or not after the expiry of the
contract or not,
 Instruction to Prepare and Submit Bid
(Rule 46)
g) Requirements that the bidder shall state in his/her bid the
manufacturer of the goods to be supplied, country of
manufacture, brand, model and catalog number,
h) The name, position and address of the contact employee
designated by the Public Entity to clarify any matters on
procurement proceedings if the bidder wants to inquire from it,
i) If the bidder has to provide training to the employees of the
Public Entity or transfer technology to such an entity as per the
procurement contract, matters relating thereto,
j) Statement that the Public Entity reserves the right to accept or
reject the submitted bid, and (k) Other matters as considered
necessary by the Public Entity.
 Bidding Documents to be Approved and
Document fee (Rule 48)
 Charges for Bidding Documents (Rule 48): Bidders interested to
purchase bidding documents shall obtain the bidding documents
signed by the chief of the concerned Public Entity or an employee
designated by him/her and having seal of the office, from that entity
or two or more entities specified by it, upon payment of the following
fee:
a) For an amount above two million but not exceeding twenty
million - Three thousand Rupees
b) For an amount above twenty million but not exceeding one
hundred million Rupees - Five thousand Rupees
c) For an amount above one hundred million but not exceeding
two hundred fifty million Rupees - Ten thousand Rupees
d) For any amount whatsoever above two hundred fifty million
Rupees - Twenty Thousand Rupees
 Bidding Document through post or
courier/ Cost Estimate
 If prospective bidders requests in writing by paying charges and
applicable fees for postage or courier to send the bidding
documents or proposal , the concerned Public Entity shall send
bidding document to such bidder/s.
 Provided that if, in so sending, such an individual, firm,
company or organization does not receive bidding
document in time, the Public Entity shall not be
responsible for it.
 Cost Estimate to be Specified in a Notice of Bidding ( Rule-49):
The cost estimate of a construction work of up to twenty million
Rupees shall be specified in the notice of invitation to bid.
B2 TRAINING ON PROCUREMENT OF WORKS AND CONSULTANCY
SERVICES

IPFMRP – CDP Project

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