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Tender Document No. : MNRCE/PRO/SQ/2017/065 Serial No : ...

Documents issued to:

Name :..

Address :..


Tender Deposit Received .. Receipt No of


Signature of Authorized
Issuing Officer

Date :


We, hereby agree to abide by the Terms and Conditions of the Tender for the supply, installation and successful
commissioning of PABX System for MNRCE, at the Maga Neguma Road Construction Equipment Company, No
81/4, New Nuge Road, Peliyagoda, Kelaniya

Witness :
Signature :.. Signature :..
Name :.. Name :..
Address :.. Address :..
... ..

Date : ....


Tender Document No:


Please declare submission of following documents by indicating a " " mark on relevant box.

i. Bid Form (refer to Part B. Section II)

ii. Bid Bond (refer to Part C. Annexure A)

iii. Statement of Compliance (refer to Part C. Annexure C)

iv. Power of Attorney

v. Supporting Documents
e.g. Catalogues, leaflets


a) Catalogues
b) Specification sheets
c) List of spares

Signature of Tenderer

Date :



The Chairman, Maga Neguma Road Construction Equipment Company invites sealed bids from eligible bidders
for the supply, installation and successful commissioning of PABX System for MNRCE.

Interested eligible bidders may obtain further information on the bid form and inspect the Bidding Document at the
office of the Maga Neguma Road Construction Equipment Company, No 81/4, New Nuge Road, Peliyagoda,
Kelaniya, Sri Lanka.

All Bids must be accompanied with a Bid Security to the value of Rs. 25,000.00 and valid for 180 days, and must
be delivered in accordance with the Instructions to Bidders on or before 2.00 p.m. on ---------------. The Bids will be
opened immediately thereafter.

Sealed tenders (Bids) may be dispatched either by registered post or hand delivered to the office of the General
Manager, Maga Neguma Road Construction Equipment Company, No 81/4, New Nuge Road, Peliyagoda,
Kelaniya, Sri Lanka, to be received before the closing time.

The General Manager, Maga Neguma Road Construction Equipment Company, will not be responsible for any
cost or expense incurred by bidders in connection with the preparation or delivery of their bids.

Any further information may be obtained from the Maintenance Manager, Maga Neguma Road Construction
Equipment Company, No 81/4, New Nuge Road, Peliyagoda, Kelaniya, Sri Lanka.




A. Introduction
1. Scope
2. Cost of Bidding

B. The bidding Documents

3. Bidding Document
4. Clarification of Bidding Documents
5. Amendments to Bidding Documents
6. Language of Bid

C. Preparation of Bids
7. Documents Comprising of the Bid
8. Bid Form
9. Bid Prices
10. Bid Currencies
11. Documents Establishing Eligibility of the Bidders and Goods
12. Documents Establishing the Bidders Qualifications to perform the Contract
13. Documents Establishing the conformity of Goods and Services to the Bidding Documents
14. Bid Security
15. Period of Validity of Bids
16. Format and Signing of Bid

D. Submission of Bids
17. Sealing and Marking of Bids
18. Deadline for submission of Bids
19. Late Bids
20. Modification and Withdrawal of Bids

E. Bid Opening and Evaluation

21. Opening of Bids by Purchaser
22. Clarification of Bids
23. Preliminary Examination
24. Evaluation and Comparison of Bids
25. Contacting the Purchaser
26. Purchaser's Right to Accept or Reject any or All Bids

F. Award of Contract
27. Post qualification and Award
28. Purchaser's Right to effect Variations at Time of Award
29. Notification of Award
30. Signing of Contract
31. Performance Security




A. Introduction

1. Scope

1.1 The General Manager, Maga Neguma Road Construction Equipment Company (hereinafter referred
to as the 'Purchaser') wishes to receive Bids for, the Supply, delivery, installation and commissioning
of the goods, materials, equipment, and services described in specification (Annexure C)
(hereinafter referred to as the 'Goods and Services') for the Maga Neguma Road Construction
Equipment Company (MNRCE), No 81/4, New Nuge Road, Peliyagoda, Kelaniya ; and provide
necessary training for operational and maintenance staff.

1.2 If the goods, to be incorporated in the tender, have to be imported then the act of importation
including the opening of irrevocable letter of credit is the sole responsibility of the supplier (Bidder)

1.3 All bids are to be completed and returned to the Purchaser in accordance with the Instructions to
1.4 One Bidder can submit alternative offers using a separate complete set of documents. A Bid Bond,
prepared according to Part B, Section I, C-14, should be valid for each alternative offer.

2. Cost of bidding

2.1 The Bidder shall bear all costs associated with the preparation and delivery of Bid(s), and the
Purchaser will not be responsible or liable for such costs.

B. The Bidding Document

3. Bidding Document

3.1 Business Registration.

The Bidder shall attach a true copy of the business registration certificate issued by the Registrar of
Companies, confirming to the relevant trade.

3.2 The Goods & Services, Bidding Procedures and Contract Terms are prescribed in the Bidding
Document. In addition to the Invitation for Bids, the Bidding Document includes:
Part B
I. Instructions to Bidders
II. Bid Form
III. Contract Form
IV. General Conditions of Contract
V. Special Conditions of Contract
Part c

A. Bid Bond Form

B. Performance Security Form
C. Statement of Compliance

3.3 The Bidder is expected to examine all Instructions, Forms, Terms, Specifications and the BOQ in the
Bidding Documents. Failure to furnish all information and requirements, required by the Bidding
Document or submission of a Bid, not substantially responsive to Bidding Documents in every
respect, may result in the rejection of the Bid.

4. Clarification of Bidding Document

4.1 Any prospective Bidder requiring any further information or clarification of the Bidding Document
may notify the Purchaser in writing or by fax at the Purchaser's mailing address, indicated in the
Invitation for Bids. The Purchaser will respond in writing to any request for information or clarification
of the Bidding Document, which will be received not later than fourteen (14) days prior to the
deadline for the submission of bids, prescribed by the Purchaser. Written copies of the Purchaser's
response (including an explanation of the query) will be sent to all prospective bidders who have
received the Bidding Documents.

5. Amendments to the Bidding Document

5.1 At any time prior to the deadline for submission of Bids, the Purchaser may, for any reason, whether
at its own initiative or in response to a clarification requested by a prospective Bidder, modify the
Bidding Document by an Amendment.

5.2 The Amendment shall be part of the Bidding Document pursuant to clause 5.1, and will be notified in
writing or by fax to all prospective Bidders who have been issued with the Bidding Document and will
be binding on them.

5.3 In order to afford the prospective bidders reasonable time to take the Amendment into account in
preparing their bids, the Purchaser may, at his own discretion, extend the deadline for the
submission of bids.

6. Language of Bid

6.1 The Bid, prepared by the Bidder, and all correspondence and documents, relating to the bid,
exchanged by the bidder and the Purchaser, shall be written in English Language. Any printed
literature furnished by the Bidder may be written in another language, provided that this literature is
accompanied by an English translation, in which case, for purposes of interpretation of the Bid, the
English translation shall govern.

C. Preparation of Bids

7. Documents Comprising of the Bid

7.1 The Bid prepared by the Bidder shall comprise of the following documents:

a. The Bid form, a duly filled up Statement of Compliance, (Annexure C Part I and II) completed in
accordance with the clauses 8, 9 & 10.

b. An Activity Time Schedule indicating the following;

1. Period for delivery of machinery at site from the date of signing of Contract Agreement.
2. Probable time for completing the erection of machinery and commissioning same.
3. Anticipated time for carrying out testing.
c. Documentary evidence establishing, in accordance with Clauses 11, that the bidder is eligible to

d. Documentary evidence establishing, in accordance with Clause 12 that the bidder is qualified to
perform the Contract, if the Bid is accepted,

e. Documentary evidence establishing, in accordance with Clause 13 that the Goods to be

supplied by the Bidder conform to the requirements under the Bidding Document,

f. Bid security furnished in accordance with Clause 14,

g. A list of Bidder's customers who had been supplied with similar machines during the last 5
years, indicating their respective contact persons and contact telephone numbers.

h. The Manufacturers technical literature and brochures pertaining to the machines and equipment
(Goods). Please note that, failure to send such documents with the tender may lead to
reject the offer

8. Bid Form

8.1 The Bidder shall complete an original and a duplicate of the Bid Form and the appropriate price
schedule furnished in the Bidding Document.

9. Bid Prices

9.1 The Bidder shall complete the appropriate Price Schedule, included therein, stating the total bid
prices of the Goods and Services to be supplied under the Contract.

9.2 Prices quoted in the Price Schedule should be entered clearly in the required format.

9.3 Prices quoted by the bidder shall remain fixed and valid until completion of the contract and will not
be subject to escalation on any account.

9.4 Goods to be supplied shall be new and shall carry manufacturer's test certificates at the time of

10. Bid Currencies

10.1 Prices shall only be quoted in SL Rupees :

a) For Goods and Services, which the Bidder will supply, the prices shall be quoted in Sri Lankan

11. Documents Establishing Eligibility of the Bidders and Goods

11.1 The Bidder shall furnish a copy with the original of business registration certificate issued by the
Registrar of Companies.

12. Documents establishing the Bidders qualifications to perform the Contract

12.1 The documentary evidence of the Bidders qualifications to perform the contract, in the event the Bid
is accepted, shall be established to the Purchaser's satisfaction:

a) The Bidder has to prove financial, technical and production capability necessary to perform the
Contract by providing company profile including financial status for the last 5 years.

b) The Bidder shall provide documentary proof that the Bidder, together with the Principal, are
equipped and able to carry out the erection, installation, commissioning, and repair, and to
maintain all obligations in respect of spare parts prescribed in the Contract.

13. Documents Establishing the conformity of Goods and services to the Bidding Document

13.1 The documentary evidence of the conformity of Goods and services supplied to the Bidding
Document may be in the form of literature, drawings, and data, and the Bidder shall furnish:

a) A detailed description of the Goods and vital technical performance characteristics;

b) A list giving full particulars, including available sources and current prices, of all material, spare
parts, special tools etc. necessary for the proper & continuing functioning of the Goods &
services supplied in the Contract.

c) A clause-by-clause commentary on the Specifications, demonstrating the compatibility of the

Goods and Services with those Specifications, or a statement of deviations and exemptions to
provisions of the Specifications.

14. Bid Security

14.1 Pursuant to Clause 07, the Bidder shall furnish, a Bank Guarantee or an Insurance Bond for, an
amount of Rupees Twenty Five Thousand only (Rs 25,000.00).

14.2 The bid security shall be denominated in Sri Lankan Rupees (Rs.), and shall be:

A bank guarantee issued by a bank located in the Purchaser's country in the name of the Purchaser,
in the form provided in the Bidding Document (Annexure A) and valid for 30 days beyond the validity
of the Bid:

14.3 Any Bid, not secured in accordance with Clauses, 14.1 and 14.2 above and the Bid Bond not
provided in the format of Annexure A, will be rejected by the Purchaser as a non responsive Bid, in
pursuant to Clause 23.

14.4 Unsuccessful bidders, except the three lowest/evaluated bidders, will be discharged as promptly as
possible upon the award of the Contract, but in any event not later than thirty (30) days after the
expiration of the period of bid validity prescribed by the Purchaser, pursuant to Clause 15. The bid
securities of the three lowest evaluated Bidders will be discharged/returned, once the successful

Bidder submits the Performance Security (Annexure B), pursuant to Clauses 31 & 32, and accepted
by the Purchaser.

14.5 The bid security may be forfeited:

a) If a Bidder withdraws his Bid during the period of validity specified by the Bidder on the Bid
form, or

b) In the case, the successful Bidder fails,

i) To sign the contract in accordance with Clause 31.

ii) To furnish the performance security in accordance with Clause 32

15. Period of Validity of Bids

15.1 Bids shall remain valid for hundred & fifty days (150) after the date of bid closing prescribed by the
Purchaser, pursuant to Clause 18.

15.2 The Purchaser may, at his discretion, extend the period of bid validity. If a Bidder agrees to the
extension requested, the validity of the Bid Security provided under Clause 14 shall also be suitably
extended. A Bidder may refuse the request without forfeiting his bid bond. A Bidder granting the
request will not be permitted to modify his bid.

16. Format and Signing of Bid

16.1 The original Bid Form and accompanying documents (as specified in Clause 7) clearly marked
"Original Bid", and "Duplicate" must be received by the Purchaser at the date, time and place
specified, pursuant to Clause 17 and 18. In the event of any discrepancy between the original and
the copies, the original shall govern.

16.2 The original and all copies of the Bid shall be typed or written in indelible ink and shall be signed by
the Bidder or a person duly authorized to sign on behalf of the Bidder. Such authorization shall be
indicated by a 'Power of Attorney' accompanying the Bid. All pages of the Bid, shall be initialed by
the person or persons signing the Bid. The name and position held by each person signing must be
typed or printed below the signature.

16.3 The Bid shall contain no interlineations, erasures or overwriting except as necessary to correct
errors made by the Bidder, in which case such corrections shall be initialed by the person or persons
signing the Bid.

D. Submission of Bids

17. Sealing and Marking of Bids

17.1 The Bidder shall seal the original and copy of the Bid separately in an inner and an outer envelopes,
duly marking the envelopes as "Original" and "Duplicate".

17.2 The inner and outer envelopes shall :

a) Be addressed to the Chairman, Tender Board at the following address.

General Manager
Maga Neguma Road Construction Equipment Company
No 81/4, New Nuge Road,,


In addition to the information required in sub clauses (a) and (b) above, the inner envelope shall
indicate the name and address of the bidder to enable the Bid to be returned unopened in case it is
declared Late.

18. Deadline for submission of Bids

18.2 specified in Clause 17.2 not later than 2.00 p.m. on --------------------

18.3 The Purchaser may at his discretion, extend the deadline for the submission of Bids by amending
the Bidding Document in accordance with Clause 5, in which case all rights and obligations of the
Purchaser and Bidders, subjected to the previous deadline, will thereafter be subjected to the
extended deadline.

19. Late Bids

19.1 Any Bid received by the Purchaser after the 'deadline for submission of Bids' prescribed by the
Purchaser, pursuant to Clause 18, will be rejected and be returned unopened to the Bidder.

20. Modification and Withdrawal of Bids

20.1 The Bidder may modify or withdraw its Bid after submission, provided that written notice of the
modification or withdrawal is received by the Purchaser prior to the deadline prescribed for
submission of Bids.

20.2 The Bidder's modification or withdrawal notice shall be prepared, sealed, marked and dispatched
according to the provisions of Clause 17. A withdrawal notice may also be sent by fax, but must be
followed up by a signed confirmation copy.

20.3 Subject to Clause 22, no Bid may be modified subsequent to the 'deadline for submission of Bids'.

20.4 No Bid may be withdrawn in the interval between the deadline for submission of Bids and the
expiration of the period of bid validity specified by the Bidder on the Bid Form.

E. Bid Opening and Evaluation

21. Opening of Bids by Purchaser

21.1 The Purchaser's duly appointed representative, will open Bids, in the presence of bidder's
representatives who choose to attend, and be present at 2.00 p.m. on ------------- at, Maga Neguma
Road Construction Equipment Company (MNRCE), No 81/4, New Nuge Road, Peliyagoda,
Kelaniya. The bidder's representatives, who are going to be present, shall sign a register evidencing
their attendance.

21.2 The Bidder's names and their total offered amounts (the total of the cost of new PABX System for
MNRCE), will be announced at the opening.

22. Clarification of Bids

22.1 To assist in the examination, evaluation and comparison of bids, the Purchaser may, at his own
discretion, ask any Bidder for a further clarification of his Bid. All responses to requests for
clarifications shall be in writing and no change in the price or substance of the Bid shall be sought,
offered or permitted.

23. Preliminary Examination

23.1 The Purchaser will examine the Bids to determine whether they are complete, whether they are from
eligible bidders, whether what have been offered are eligible goods, whether any computational
errors have been made, whether required securities have been furnished, whether the documents
have been properly signed, and whether the Bids are generally in order.

23.2 Arithmetical errors will be rectified on the following basis. If there is a discrepancy between the unit
price and the total price that is obtained by multiplying the unit price and quantity, the unit price shall
prevail and the total price will be corrected. If there is a discrepancy between words and figures, the
amount in words shall prevail.

23.3 Prior to detailed evaluation, pursuant to clause 25, the Purchaser will determine the substantial
responsiveness of each bid to the Bidding Document. A substantially responsive Bid is one which
conforms to all the terms and conditions of the Bidding Document without material deviation.

23.4 A Bid determined as not substantially responsive, will be rejected by the Purchaser totally, and may
not subsequently be made responsive by the Bidder by correction of the non-conformity.

24. Evaluation and Comparison of Bids

24.1 The Purchaser will evaluate only the substantially responsive bids determined as per Clause 23

24.2 The Purchasers evaluation of bids will take in to account, in addition to the bid price, the following

a) Bidders reputation in the supply, installation and maintenance of new PABX System for
MNRCE in Sri Lanka and his proven track record.

b) Period of proven usage of this particular make in Sri Lanka, together with the number of
machines in service.

c) Compliance of the specification of offered item with the offered specification.

d) Activity time schedule offered in the Bid.

e) Deviations in payment schedule from that specified in the Special Conditions of Contracts

f) The cost of components and services. (consumables etc)

g) The quality and adaptability of the equipment offered.

24.3 Whenever it is necessary the following factors will be taken into account at the time of evaluation.

a) The projected operating and maintenance costs for four years after the expiry of the

b) The performance and efficiency of the equipment offered.

25. Contacting the Purchaser

25.1 Subject to Clause 20 no Bidder shall contact the Purchaser on any matter relating to his bid, from
the bid opening to the time the Contract is awarded.

25.2 Any effort by a bidder to influence the Purchaser's decision in respect of bid evaluation, bid
comparison or contract award will result in the rejection of the particular Bidder's bid.

26. Purchaser's Right to Accept, or to Reject any or all bids

26.1 The Purchaser reserves the right to accept without notice or reject any bid or any part thereof or
annul the bidding process and reject all Bids at any time prior to award of Contract, without incurring
any liability to the affected bidder or bidders.

F. Award of Contract

27. Post qualification and Award

27.1 The Purchaser will determine to satisfaction whether the selected Bidder, as having submitted the
lowest evaluated and responsive Bid, is capable in performing the contract according to the
conditions of contracts and the detailed specifications.

27.2 The determination will take in to account the Bidder's financial and, technical capabilities and proven
past performances in providing Services and maintenance facilities. Assessment of the documentary
evidence of the Bidder, as well as such other information and requirements as the Purchaser deems
necessary and appropriate, will be the basis of this determination.

27.3 An affirmative determination will be a pre-requisite for the award of the Contract and a negative
determination will result in the rejection of the bid.

27.4 Eventually, the Purchaser will award the Contract to the successful bidder whose Bid has been
determined to be the lowest evaluated and responsive Bid, provided further that the bidder is
determined affirmatively as in Clause 27.1 and 27.2.
28. Purchaser's Right to effect Variations at Time of Award

28.1 The purchaser reserves the right to vary the extent of the Contract Works and Options may be
reduced according to the availability of funds.

29. Notification of Award

29.1 The Purchaser will notify the successful Bidder in writing by a registered letter or by fax to be later
confirmed in writing by registered post, that his Bid has been accepted and on which basis the Bid
has been accepted.

29.2 The notification of award will constitute the formation of contract, until the Contract has been effected
pursuant to clause 31

30. Signing of Contract

30.1 Subsequent to the notification of award, the successful Bidder (Supplier) shall make use of the
Contract Form, provided in the Bidding Document, which incorporates all agreements between the
parties for the signing of the Contract Agreement.

30.2 Within thirty (30) days of the receipt of notification of award, the successful Bidder, subsequent to
complying with all requirements in the Contract Form, shall sign the contract and return same to the
Chairman - MNRCE.

30.3 Stamp duty payable on this contract under the Stamp Duty Act of the Government of the Democratic
Socialist Republic of Sri Lanka shall be borne by the successful Bidder.

30.4 Registration of Contract :- the successful bidder shall register the Contract with the Registrar of
Public Contracts in accordance with Public Contract act No. 03 of 1987. The application for
registration should be done within sixty (60) days of award of contract (vide gazette extra ordinary
No. 508/7 of 0206.1988).

31. Performance Security

31.1 Within fifteen (15) days of the receipt of notification of award from the Purchaser, the successful
bidder shall furnish a Performance Security for 10% of the Contract value, in accordance with the
Conditions of Contract, in the form of the Performance Security given in Annexure B, provided in the
Bidding Document.

31.2 Failure of successful Bidder to comply with the requirement of Clause 31 shall constitute sufficient
grounds for the annulment of the award and forfeiture of the bid bond, in which event, the Purchaser
may take the award to the next affirmatively determined Bidder or call for new bids.

Section II


TO : The Chairman
Maga Neguma Road Construction Equipment Company
No 81/4, New Nuge Road,
Sri Lanka.

Having examined the Bidding Document for the above Contract, which includes the Conditions of Contract and
Detail Specifications, the receipt of which is duly acknowledged hereby, we, the undersigned, offer to supply,
deliver, install, and successfully commission and hand over of PABX System for MNRCE and provide relevant
training for operation and maintenance staff, as quoted herein, with the said Bidding Document, for the sum of SL
Rupees. ........................ .......... ......... .........
........................................................................... [Total bid amount to comprise of the cost of the item and
local charges inclusive of taxes, clearing, delivery, costs in installation and connection to the existing system and
commission of PABX System for MNRCE (in words and figures)] and for the sums as may be ascertained in
accordance with the price schedule attached hereto and made part of this bid.

We undertake, if our bid is accepted, to commence delivery of machinery within ........................................ and to
complete installation and commissioning of all the items specified in the Contract within .............. .. .... .... ....
............... calculated from the date of receipt of your notification of Award and in accordance with the Contract
Execution Schedule provided in the Special Conditions of Contract.

If our Bid is accepted, we will provide a performance security in the sum of an amount, equal to ten percent (10%)
of the Contract Price, valid up to the end of the defect liability period, for the due performance of the Contract.

We agree to abide by this bid for the period of hundred and fifty (150) days from the date fixed for bid closing
as per Clause 21 of the Instruction to Bidders, and it shall remain binding upon us and may be accepted at any
time before the expiration of that period.

Until a formal Contract Document is prepared and executed, this Bid, together with your written acceptance
thereof described in your Notification of Award, shall constitute a binding contract between us.

We understand that you are not bound to accept the lowest priced Bid that you may receive.

Dated this .................................................. day of .........................................


(In the Capacity of)

Duly Authorized to sign Bid for and on behalf


(Signature of Witness)

Witness : ....................................................
Address : ....................................................


Section III


THIS AGREEMENT has been made on the .................................................... day of ..................... 20....... between
............................................................(name of Purchaser) of ................................ (country of Purchaser)
(hereinafter the Purchaser) on one part and ................................. ............................ (name of Supplier) of
............................................................ (city & country of the Supplier) (hereinafter the Supplier) on the other part:

WHEREAS the Purchaser is desirous that certain Goods and Services should be provided by the Supplier, viz.
(brief description of Goods & Services) and has accepted a bid by the Supplier for the supply of those Goods and
Services in the sum of (Contract Price in Words and Figures) (hereinafter the Contract Price).


1. In this agreement words and expressions shall have the same meaning as are respectively assigned to
them in the Conditions of Contract and Annexures referred to.

2. The following documents shall be deemed to form and be read and construed as part of this Agreement

(a) Bid Form, the Price Schedule and the Performance Security submitted by the Bidder;

(b) Statement of compliance

(c) General Conditions of Contract and special conditions of contract;

(d) 3 Nos Annexures, containing Specifications and price schedule

(e) Purchasers Notification of Award

3. In consideration of the payments to be made by the Purchaser to the Supplier as hereinafter mentioned,
the Supplier hereby covenants with the Purchaser to provide the Goods and Services and to remedy
defects therein in conformity in all respect with the provisions of the Contract.

4. The Purchaser hereby covenants to pay the Supplier in consideration of the provision of the Goods and
Services and any due alteration or additions, the Contract Price and any additional sum as may become
payable under the provisions of the Contract at the time and in the manner prescribed by the Contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with their
respective laws the day and year first above written.

Signed, sealed and delivered by the
said ................................................................. (for the Purchaser)
in the presence of .................................................................................................

Signed, sealed and delivered by the

said ..................................................................... (for the Supplier)
in the presence of ........................................................................................





1. Use of Contract Documents and Information

2. Subcontracts
3. Inspection & Test
4. Patent Rights
5. Performance Security
6. Insurance
7. Warranty
8. Payment Schedule
9. Extensions in the Suppliers Performance
10. Termination for Default
11. Termination for Insolvency
12. Termination for Convenience
13. Resolution of Disputes
14. Applicable Law
15. Force Majeure
16. Assignment
17. Contract Language
18. Taxes & Duties
19. Headings
20. Waiver




1.0 Use of Contract Document and Information

1.1 The Supplier shall not, without the Purchasers prior written consent, disclose the Contract or any
provision thereof, or any specification, drawing, pattern, sample or information furnished by or on
behalf of Purchaser in connection therewith, to any person other than a person employed by the
Supplier in the performance of the Contract. Disclosure to any such employed person shall be
made in confidence and shall extend in so far as may be necessary for purposes of such

1.2 The supplier shall not, without the Purchasers prior written consent, make use of any document
or information specified in Clause 1.1 above, except for the purpose of performing the Contract.

1.3 Any document, other than the Contract itself, specified in Clause 1.1 above, shall remain the
property of the Purchaser and shall be returned (in all copies) to the Purchaser, on completion of
the Suppliers performance under the Contract, if so required by the Purchaser.

2.0 Subcontracts

2.1 The Supplier shall not subcontract all or any part of the Contract without the explicit prior approval
of the Purchaser in writing.

2.2 The Supplier shall guarantee that any and all subcontractors of the Supplier for the performance
of any part of the work under the Contract will comply fully with the terms of the Contract
applicable to such part of the work under the Contract.

3.0 Inspection and Tests

3.1 The supplier must ensure that the goods have to be delivered to the site with the test certificates
issued by the manufacturer of the item.

3.2 The Purchasers right to inspect, test and where necessary reject the Goods after the arrival of
Goods in the Purchasers premises, shall in no way be limited or waived due to the Goods been
previously inspected, tested and passed by the Purchaser or his representative.

3.3 Nothing in this Clause 3 shall, in any way, release the Supplier from any warranty or other
obligations under the Contract.

4.0 Patent Rights

4.1 The Supplier shall indemnify and hold the Purchaser harmless against all third-party claims of
infringement of patent, trademark or industrial design rights arising from use of the Goods or any
part thereof.

5.0 Performance Security

5.1 The Supplier shall cause performance security to be furnished to the Purchaser in the amount of
ten percent (10%) of the Contract Price. Such performance security shall be provided, within
fifteen (15) days after the Suppliers receipt of the notification of the award and should be valid up
to the end of the defect liability period, which is 12 months.

5.2 The proceeds of the performance security shall be payable to the Purchaser as compensation for
any loss resulting from the Suppliers failure to successfully complete and hand over the 'Goods
and Services' under the Contract, and loss resulting from faults during the Defects Liability
Period. The cover during the Defects Liability Period will be in supplement to the warranty
provided by the manufacturer of 'Goods' for the defects in manufacture.
The Supplier shall cause the validity period of the performance security to be extended for such
period(s) in accordance with the contract period, that may be extended, pursuant to Clause 11.2.

5.3 (a) The performance security shall be denominated in the currency of the Contract.

(b) A bank guarantee issued by a bank located in the Purchasers country in the name of the
Purchaser, and in the form provided in the Bidding Document (Annexure B) and valid up to
the end of the Defects Liability period, will stand as an acceptable form of Performance

5.4 The performance security will be discharged/returned by the Purchaser not later than fifteen (15)
days following the end of the Defects Liability period.

6.0 Insurance

6.1 All 'Goods and Services' supplied under the Contract, together with the execution of the contract
works, shall be exhaustively insured, by the supplier against all risks in the supply and delivery,
installation, testing and commissioning, as specified in the Conditions of Contract, and the

6.2 The sum insured in all such cases shall reflect the reinstatement value of the item concerned.

6.3 Adequate insurance cover shall be provided by the supplier for loss/damage or injury to the
Purchaser's property and his employees in the vicinity of the place of the execution of the
contract works.

6.4 All insurances shall be to the satisfaction of the Purchasers Representative

7.0 Warranty
7.1 The Supplier warrants to the Purchaser that the Goods supplied under the Contract will comply
strictly with the Contract, shall be brand new in every respect and shall be free from defects. The
Supplier further warrants to the Purchaser that all material, equipment and supplies incorporated
in the contract works will be new, merchantable of the most suitable grade, and fit for their
intended purposes.

All damages/ losses arising from the manufacturer's defects in the Goods supplied under the
contract, shall be covered for a minimum period of 12 months from the date of commissioning
under a specific Manufacturer's Warranty for such Goods, delivered along with the Goods.

7.2 The above warranties shall remain valid for twelve (12) months after the Goods, or any portion
thereof, as the case may be, have been delivered, installed, successfully commissioned, and
officially handed over, unless specified otherwise in the Special Conditions of Contract.

7.3 The Purchaser shall promptly notify the Supplier in writing of any claim arising under these

7.4 Upon receipt of such a notice, the Supplier shall repair or replace the defective Goods or parts
thereof, immediately without any cost to the Purchaser, during the warranty period.

7.5 Without prejudice to Clause 7.3 and 7.4 above, the Supplier shall promptly correct, at no cost to
the Purchaser, any defect in any work of correction performed pursuant to Clauses 7.3 and 7.4
above, upon receipt of written notice of such defect, within a period of twenty four (24) hours.

7.6 If the Supplier, having been notified, fails to remedy the defect(s) intimated in accordance with
Clause 7.3 and 7.5 above, the Purchaser may proceed to cause such remedial action, as may be
necessary, at the Suppliers expense. The Suppliers Warranty pursuant to the Clause 7 is
without prejudice to any other rights or remedies, which the Purchaser may have against the
Supplier under the Contract.

8.0 Payment

8.1 A mobilisation advance of 20% may be released to the supplier on submission of a suitable bank
guarantee for that amount, subsequent to signing of the contract agreement.

8.2 One stage of an interim payment up to the maximum of 60%(including the mobilisation advance)
may be made subsequent to the delivery of the goods to the site, subject to the manufactures
test certificates being forwarded along with the goods.

8.3 On satisfactory completion of commissioning and signing of the handing over synopsis of the
Goods and Services in contract, a payment, computed on the cumulative total of all payments
made, and subject to a retention of 5% of the contract price, shall be made.

8.4 On the completion of the defect liability period the 5 % retention will be released provided that no
defects appear on the suppliers work or the defects appeared are repaired or replaced to the
satisfaction of the Engineer.
If the Supplier does not attend to such repair/replacement then, the Purchaser will retain the right
to repair/replace same and deduct from the retention monies of 5% of contract price in the
custody of the purchaser.
In case the repair/ replacement cost is more than the retention then the supplier will be
considered as a debtor for the balance amount.

9.0 Extensions in Suppliers Performance

9.1 Delivery of the Goods shall be made by the Supplier in accordance with the Contract Execution
Schedule, pursuant to the Special Conditions of Contract.

9.2 The Supplier may claim for extension of time as set forth in the Contract Execution Schedule in
case of :

(a) Delay in the supply of any materials, drawings or services which are to be provided by the
Purchaser under the contract.

(b) Force Majeure pursuant to Clause 15 and

(c) Interruptions of work caused by written orders issued by the Purchaser.

The Supplier shall demonstrate to the satisfaction of the Purchaser that he has used his best
endeavours to avoid or overcome such causes for delay, and the parties will mutually agree upon
remedies to mitigate or overcome such causes of delay.

9.3 Notwithstanding Clause 9.2 above, the Supplier shall not be entitled to an extension of time
unless the Supplier, at the incidence of such circumstances, has immediately notified the
Purchaser, in writing, of any delay that he may claim, as per Clause 9.2 above. Thereafter, on
request by the Purchaser, the Supplier shall substantiate that the particular delay has been due to
the circumstances referred to.

10.0 Termination for Default

10.1 The Purchaser without prejudice to any other remedy for breach of Contract, by written notice of
default, specifying the nature of default(s), sent to the Supplier may terminate the Contract in
whole or in part, if;

(a) The Supplier fails to deliver any or all of the Goods within the time period(s) specified in
the Contract, or any extension thereof granted by the Purchaser, pursuant to Clause 9 or

(b) The Supplier fails to perform any other obligation(s) under the Contract and in either of
the above circumstances, if the Supplier does not restore progress to fall in line with the
Contract Execution Schedule or any Extension of Time granted thereof, and/or fulfil the
obligation(s) in question, within a period of ten (10) calendar days (or such longer period
as the Purchaser may authorise in writing) after receipt of the notice of default from the
Purchaser, the Purchaser may terminate the Supplier, without voiding the contract, or
releasing the Supplier from any of his obligations or liabilities under the contract.

10.2 In the event the Purchaser terminates the Contract, pursuant to Clause 10.1 above, the
Purchaser may procure, upon such terms and in such manner as Purchaser deems appropriate,
Goods and Services similar to those undelivered and not completed in the contract, and the
Supplier shall be liable to the Purchaser for all such excess costs for such similar Goods and
Services, procured subsequently.

11.0 Termination for insolvency

11.1 The Purchaser may at any time terminate the Contract by giving written notice to the Supplier,
without compensation to the Supplier, if the Supplier becomes bankrupt or otherwise insolvent.
Not-withstanding the above, such termination will not prejudice or affect any right of action or
remedy which has accrued or will accrue thereafter to the Purchaser against the Supplier.

12.0 Termination for Convenience

12.1 The Purchaser may, by written notice sent to the Supplier, terminate the Contract in whole or in
part at any time for convenience. The notice of termination shall specify that the termination is for
the Purchasers convenience, and the extent to which work under the Contract has been
performed, and the date upon which such termination becomes effective.

13.0 Resolution of Disputes

13.1 The Purchaser and the Supplier shall make every effort to resolve any disagreement or dispute
arising between them, under or in connection with the Contract, amicably by direct and informal

13.2 After sixty (60) days from the commencement of such informal negotiations, if the Purchaser and
the Supplier were unable to resolve a Contract dispute, amicably, either party may require that
the dispute be referred for resolution by arbitration by the mechanism described in the Special
Conditions of Contract. The award shall be final and binding on parties.

14.0 Applicable Law

14.1 The Contract shall be governed by and be interpreted in accordance with the laws of the
Purchasers country.

15.0 Force Majeure

15.1 In the event that the Supplier or any subcontractor or the Purchaser is delayed in performing any
of their respective obligations under the Contract, and such delay is caused by Force Majeure,
including, but not limited to war, civil insurrection, fires, floods, epidemics, earthquakes,
quarantine restrictions and freight embargoes, such delay may be excused as provided in Clause
9 and the period of such delay may be added to the time of performance of the obligation

15.2 If a Force Majeure situation arises, the Supplier shall promptly notify the Purchaser in writing of
such condition and the cause thereof. Unless otherwise directed by the Purchaser in writing the
Supplier shall continue to perform his obligations under the Contract as far as is reasonably
practicable, and shall seek all reasonable alternative means for performance not prevented by
the Force Majeure event.

16.0 Assignment

16.1 The Supplier shall not assign, in whole or in part, his obligations to perform under the Contract,
except with the Purchasers prior written consent.

17.0 Contract Language

17.1 The Supplier hereby represents that he has sufficient knowledge of the English Language to
understand the Contract, fully. The Contract shall be in the English Language and all
documentation related hereto will also be in the English Language, except if otherwise
specifically agree in writing between the parties.

17.2 The Supplier shall bear all costs of translation to English and all risks of the accuracy of such

18.0 Taxes and Duties

18.1 Supplier shall be entirely responsible for all taxes, stamp duties and other such levies imposed by
the implementation of the contract.

18.2 Taxes payable to the government of Sri Lanka :

The contract price shall be the total cost excluding taxes, which shall be indicated separately





1. Definitions
2. Engineers Decisions
3. Contract Execution Schedule
4. Liquidated Damages
5. Insurance Requirements
6. After-Sales Service
7. Arbitration
8. Jurisdiction
9. Pre-Delivery Inspection
10. Installation, Testing & Commissioning
11. Right to Operate and Use Unsatisfactory Equipment and Materials
12. Tropical Serviceability
13. Lubricants
14. Painting and Protection
15. Further Information.





1.0 Definitions
a) The Purchaser is the Chairman - MNRCE
b) The purchaser appoints the Maintenance Manager MNRCE, to act as his representetive for this

2.0 Purchasers Representetives Decision

2.1 The Purchaser appoints the Maintenance Manager MNRCE (herein after referred to as
representetive) to act as his representative to approve or disapprove any 'Goods and Services'
to be provided under the Contract, and conduct overall supervision on the execution of the
contract works and take decisions on the problems encountered, then and there.

Unless specially authorised by the Purchaser in writing, the representetive shall have no
authority, to relieve the Supplier of any of his duties or obligations under the Contract.

3.0 Contract Execution Schedule

3.1 The Supplier shall complete delivery of all items specified in the Contract within the stipulated
time schedule to the final destination, the final destination being;
Maga Neguma Road Construction Equipment Company
No 81/4, New Nuge Road,
3.2 The items shall be fully assembled, tested (accompanying a test certificate) and ready for
immediate installation and successful commissioning thereof.
3.3 At the commencement of testing the Supplier shall demonstrate to the Engineers representative
all the controls, adjustments and working of the machine.

3.4 The Supplier shall undertake to train adequately the nominated employees of MNRCE
(mentioned as per Clause 1.3), for carrying out the efficient operation of the machines. The
Supplier shall issue a certificate in this regard that indicating that the staff he had trained, are
competent to operate and maintain the machines efficiently, in keeping to the manufacturers

4.0 Liquidated Damages

4.1 If the Supplier shall fail to accomplish the contract works in full unit within the period specified and
in the absence of Force Majeure there shall be deducted from the Contract price as liquidated
damages (not as a penalty) a sum equivalent to one percent (1%) of the contract price for each
calendar week of delay or part thereof.

4.2 The amount of liquidated damages shall, however be subject to a maximum limitation of ten
percent (10%) of the contract price.

4.3 Delays in excess of 70 calendar days will be sufficient cause for termination of the Contract and
forfeiture of the Performance Security.

5.0 Insurance Requirements

5.1 Insurance shall be the responsibility of the Supplier who shall provide coverage for all Goods
and Services as specified in General Conditions of Contract, Section IV, Clause 6.

5.2 The insurance shall cover the entire period up to the end of the defects liability period, which
constitutes of 12 months from the official acceptance of the machines, subsequent to testing and

5.3 Erection All Risk cover shall be arranged for the full contract price to cover the installation, testing
and commissioning of the machine and with extensions on cross liability, existing structures and
surrounding property, and bodily injury for Rs. 500,000.00 subjected to a limit of Rs 1,000,000.00

6.0 After-sales Services

6.1 The Supplier, being the accredited Agent in Sri Lanka, should prove to the Purchaser on his
present status and ability :

(a) To provide specialised and technical services on call

(b) To maintain adequate stock holding of spare parts ex-stock, and to make available such
spare parts through his own outlets on demand by the Maga Neguma Road Construction
Equipment Company for future requirements. To Import & supply of any spare part not
found ex-stock, within forty five (45) calendar days from the date of a firm order.
(c) To meet the financial commitment on the above.
(d) To substantiate past performances on the supply of spare parts and regular maintenance
of similar equipment in government or semi-governments institutions.

7.0 Arbitration

7.1 Any dispute controversy or claim arising out of or relating to this Tender / Contract or the breach,
termination or invalidity thereof shall be settled by arbitration in accordance with the provisions of
Arbitration Act No. 11 of 1995.

7.2 Arbitration shall be held in Colombo, Sri Lanka.

8.0 Jurisdiction

8.1 The laws of Sri Lanka shall apply to this Contract.

9.0 Installation, Testing and Commissioning

9.1 Prior to the commencement of installation work, the supplier shall forward proof of adequate
insurance to cover the loss/ damage during the work of installation, testing and commissioning of
the machines, valid up to the point of taking over by the Purshasers Represetative, and to
suitably cover the Defects Liability period.

9.2 The machine shall be installed by the Supplier in accordance with the manufacturers
recommendations and conforming to the relevant current Standards and Codes of Practice of the
trade in Sri Lanka. The material and methods to be used shall carry the approval of the
Purshasers Represetative. The machine should be suitably located at the top of the conveyor belt
indicated in the drawing in annex D. The material requirements and methods shall be evaluated
in advance such that those additional costs can be incorporated in the cost of the installation, in
the Bid. The method of connection shall be forwarded on a working detailed drawing, and shall
carry the Purshasers Represetative sanction, prior to implementation.

9.3 On satisfactory completion of the installation work, the Supplier, with the concurrence of the
Purshasers Represetative, shall draw out a programme for testing to verify the soundness of the
installation and to prove the capacity and performance of the machines supplied.

9.4 The relevant instruments, apparatus and material shall be procured by the Supplier, at his own
cost, to carryout the testing programme.

9.5 All testing shall be done to the satisfaction of the Purshasers Represetative and this is a
prerequisite for the official taking over of the machines in the tender.

9.6 All test data and yielding results shall be recorded, and the supplier shall attach such records to
the handing over synopsis.

9.7 The use of a particular instrument or an apparatus shall be decided at the sole discretion of the
Purshasers Represetative. In case of rejection, the supplier shall immediately find replacement to
maintain continuity in the testing programme.

10.0 Right to Operate and Use Unsatisfactory Equipment and Material

11.1 If after delivery, installation, acceptance, the operation or use of a machine proves to be
unsatisfactory to the Purchaser within the guarantee period, he shall have the right to continue to
operate or use such items, until the correction of defects, errors or omissions by repair or by
replacement will be carried out without interfering with the Purchaser's operation.

11.0 Tropical Serviceability
11.1 All goods furnished under the Contract shall be suitable and, where necessary, treated and
processed for storage, delivery and use under tropical conditions of high temperature, high
humidity, mildew and fungus conducive environment.

12.0 Lubricants

12.1 All machines and equipment shall be delivered to the Purchaser in a fully assembled and ready for
operation condition. Trial runs of assembled equipment will be made prior to the acceptance. All
equipment shall be furnished, fully lubricated and greased. During trial runs that will be carried out
for testing purposes prior to taking over, the Supplier shall provide for all lubricants and
consumables at his own cost.

13.0 Painting and Protection

13.1 All metal surfaces not required to be bright shall be thoroughly cleaned to a white metallic
surface, protected with adequate anticorrosion paint and given finishing coats of paint suitable for
humid and high temperature conditions. The enclosures of machines and parts thereof, shall be
finished to the satisfaction of the Purshasers Represetative.

13.2 The enclosures of machines or protective guards shall be installed an finished to comply with the
engineers requirements.

14.0 Further Information.

14.1 Any additional information or clarification, or a visit to the site of work, can be arranged upon
application to the Maintenance Manager, Maga Neguma Road Construction Equipment Company
(MNRCE), No 81/4, New Nuge Road, Peliyagoda, Kelaniya. Telephone; 2914121, 2914122,



Annexure A - Bid Bond Form

Annexure B - Performance Security Form

Annexure C - Statement of Compliance Part I (Specifications)

Annexure D - Location of machines



By this Bond We ______________________________________________________________ (hereinafter
called "The Tenderer") and We (name of bank) whose registered office is at ______________________________
(hereinafter called "The Surety") are held and firmly bound unto ______________________________
(hereinafter called "The Authority") in the sum of __________________________________ for the payment of
which sum the tenderer and the Surety bind themselves their successors and assignee jointly and severally by
these presents.

Whereas the Authority has invited the Tenderer and other persons to complete tenders in similar for the
construction/supply and installation of __________________________________ and works associated therewith
(hereinafter called "The Works") and to submit the same for the consideration of the Authority, and the Tenderer
proposes to submit to the Authority a tender (hereinafter called "The Tender") in accordance with such invitation,
the Bond shall provide security to the Authority that the Tenderer will honour certain obligation to be undertaken
by him in the Tender in accordance with the following conditions.

Now the Conditions of this Bond are:

a) That it shall remain in full force and effect until the earliest of
(i) (Date), being ( ) days from (submission date), the date stipulated by the Authority for the
submission of tenders, or any prolongation of such date above notified to the Authority by the
Tenderer and the Surety in writing;
(ii) in the event of acceptance of the Tender by the Authority, the date upon which the Tenderer provides
a performance security to the Authority in accordance with the terms of the contract thereby made
between them, or
(iii) in the event of acceptance by the Authority of a tender for the works from a third party, the date upon
which such third party provides the relevant performance security.

b) Subject to this Bond being in full force and effect, the Surety shall pay the full amount specified in this Bond
upon receipt of first written demand from the Authority stating that.

(i) The Tenderer has withdrawn his Tender during the validity of this Bond, or

(ii) The Tenderer has failed to provide a performance security to the Authority in accordance with the
terms of the contract between them upon acceptance the Tender.

No alteration in the terms of the Tender, nor any forbearance or forgiveness in or in respect of any matter or
thing concerning the tender on the tender or on the part of the Authority, nor any objection from the tenderer
shall in any way release the Surety from any liability under this Bond.

The benefit of this Bond shall not be assignable by the Authority, and upon its ceasing to be in full force and
effect the Authority shall return the same to the Tenderer.

This bond shall be governed by the laws of Sri Lanka

I executed as a Deed this ( ) days of ( )

For and on behalf of the Tenderer

Signed by
In the capacity of
and by
in the capacity of
seal (where applicable)

For and on behalf of the Surety

Signed by
In the capacity of
and by
in the capacity of
seal (where applicable)



To (Name of Purchaser)
(Address of Purchaser)

WHEREAS (Name and Address

of Supplier) (hereinafter called "the Supplier") has undertaken in pursuance of Contract No __________________
dated, _____________________ 20__ to supply (Description of Goods and Services) hereinafter called "The

AND WHEREAS it has been stipulated by you in the said Contract that the Supplier shall furnish you with a Bank
Guarantee with Supplier's performance obligations in accordance with the Contract;

AND WHEREAS we have agreed to give the Supplier a Bank Guarantee:

NOW THEREFORE WE hereby affirm that we are Guarantors and responsible to you on behalf of the Supplier,
up to a total of ___________________________________ (Amount of the Guarantee in Words) such sum being
payable, and we Undertake to pay you, upon your first written demand declaring the Supplier to be in default
under the Contract and without cavil or argument, any sum or sums within the limits of _____________________
(Amount of Guarantee) as aforesaid, without your needing to prove or to show grounds or reasons for your
demand or the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the Supplier before presenting us with the

We further agree that no change or addition to or other modification of the terms of the supplier or of the works to
be performed thereunder or of any of the supply document which may be made between you and the Supplier
shall in any way release us from any liability under this guarantee, and hereby waive notice or any such change,
addition or modification.

This guarantee is valid until the _________________________ day of ________ 20__

Signature and Seal of the Guarantors