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Documente Profesional
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Users Guide
for
for the
Procurement of Works
January 2006
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 1 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
Table of Contents
Acronyms............................................................................................................................................
3
Guidance Notes on the use of Standard Bidding Documents and the User Guide.............................4
Purpose of the Standard Bidding Document ........................................................................................... 4
Purpose of the User Guide...................................................................................................................... 4
When to Use the Standard Bidding Document for Works ....................................................................... 4
Structure of the Standard Bidding Document ......................................................................................... 5
Rules for drafting Bidding Documents ................................................................................................... 6
Summary of the Bidding Process........................................................................................................7
Selection of Bidders ............................................................................................................................... 8
Preparation and Issue of Bidding Documents ......................................................................................... 8
Bidding Period and Bid Receipt ............................................................................................................. 9
Bid Opening .......................................................................................................................................... 9
Bid Evaluation ..................................................................................................................................... 10
Bid Acceptance and Contract Award and Placement ............................................................................ 11
Guidance Notes for the preparation of Invitation to Bid Notices or Letters.....................................12
Invitation to Bid Notices ...................................................................................................................... 12
Invitation to Bid Letters ....................................................................................................................... 14
Guidance Notes on the Preface Section............................................................................................16
Guidance Notes on Section 1. Instructions to Bidders.....................................................................17
Guidance Notes on Section 2. Bid Data Sheet.................................................................................18
Guidance Notes on Adjudication .......................................................................................................... 23
Guidance Notes on Section 3. Evaluation and Qualification Criteria..............................................25
1. Qualification Criteria ....................................................................................................................... 25
Guidance Notes on Section 4. Bidding Forms..................................................................................27
Guidance Notes on Section 5. Eligible Countries.............................................................................28
Guidance Notes on Section 6. Schedule of Requirements................................................................29
Scope of Works .................................................................................................................................... 29
Technical Specifications ...................................................................................................................... 29
Drawings ............................................................................................................................................. 31
Bill of Quantities or Activity Schedule ................................................................................................. 31
Guidance Notes on Section 7. General Conditions of Contract........................................................36
Guidance Notes on Section 8. Special Conditions of Contract........................................................37
Additional Optional Clauses ................................................................................................................ 43
Guidance Notes on Section 9. Contract Forms.................................................................................46
Agreement ........................................................................................................................................... 46
Contract Security and Advance Payment Security ................................................................................ 46
Guidance Notes on the Letter of Acceptance...................................................................................50
Guidance Notes on Letters to Unsuccessful Bidders.......................................................................52
Annex 1: Sample Bill of Quantities.................................................................................................53
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 2 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
Acronyms
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 3 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 4 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
For procurement using the Request for Quotations method, the Request for Quotations and
Construction Agreement Form documents should normally be used.
Type of Contract
This Document can be used when the Procuring Entity intends to place either an
Admeasurements contract (with a bill of quantities) or a Lump Sum contract (with an activity
schedule). It is essential that the type of contract is specified in the Bid Data Sheet and Special
Conditions of Contract in Sections 2 and 8 of the Bidding Document.
Admeasurements contracts should be used for roads, buildings and other forms of
construction, where the works may not be well defined and quantities cannot be accurately
determined and are subject to change in quantity or specifications resulting from site
conditions.
Lump sum contracts should be used for buildings and works, which are well defined and can
be accurately quantified prior to construction.
Scope and Value of Contract
This SBD is suitable for a standard contract, where the works have been fully designed by or
for the Procuring Entity (Employer), prior to bidding, and the Contractor will be responsible
for construction only.
It is suitable for works valued at up to US$10 million.
This SBD for the Procurement of Works is not suitable for the following situations:
Complex works under US$10 million, such as large water treatment plants;
Works over US$10 million;
Works designed by the Contractor, including turnkey contracts.
For any of these requirements, the Procuring Entity should find an alternative, more
appropriate document, such as an appropriate FIDIC standard form of contract.
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 6 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 7 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
The Public Procurement Proclamation of 2004 and the Procurement and Contracts Directives
detail the full procurement processes, rules and procedures and the procurement methods to
be followed by Procuring Entities. The Proclamation and Directives must be complied with at
all times.
The relevant parts of the bidding process are summarised here as follows:
Selection of Bidders;
Preparation and Issue of Bidding Documents;
Bidding Period and Bid Receipt;
Bid Opening;
Bid Evaluation; and
Bid Acceptance, Contract Award and placement.
Selection of Bidders
The method for selection of Bidders will depend on the procurement method being used and
whether or not a pre-qualification has been conducted.
Where Open Tendering is used without pre-qualification, the PE must publish an Invitation
to Bid notice, so that bidding is open to all interested bidders. A standard format, with
guidance notes on its completion, is provided later in this User Guide.
The notice must be published in at least one national newspaper of general circulation. Notices
should also be published on the Internet, wherever possible.
PEs should also ensure that bidding documents are finalised and approved before publishing
the Invitation to Bid notice, to avoid any delays in the process.
Where Open Tendering is used with pre-qualification, the bidders invited will be those
selected during the pre-qualification process. There is therefore no need to publish an
Invitation to Bid notice, but the bidding document should be accompanied by an Invitation to
Bid letter. A sample letter, and guidance notes on completing it, are included later in this User
Guide.
Where this document is used under Restricted Tendering, the bidders invited will be those
included on the shortlist, who should be selected from among contractors registered in the
contractors list. There is no need to publish an Invitation to Bid notice, but the bidding
document should be accompanied by an invitation to bid letter. However, the Procuring Entity
may advertise the opportunity, to invite companies to express interest in being invited to bid.
A sample letter and guidance notes on completing an invitation to bid letter are included later
in this User Guide.
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 8 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
submitting the bids. Procuring Entities are required to comply with the minimum bidding
periods given in the Directives.
Where a Bid Notice has been published, the PE must issue Bidding Documents promptly to all
Bidders who request them and pay any required fees. A record must be kept of the Bidders to
whom Bidding Documents have been issued. Receipts must be issued for all fees paid.
Where the Bidding Document is issued to pre-qualified or short-listed bidders, the documents
must be issued to all bidders at the same time and must be issued early enough to ensure
compliance with the minimum bidding period given in the Directives. A record must be kept of
the issue of all bidding documents.
Bid Opening
The Tender Committee is responsible for the Bid Opening, which is a critical event in the
bidding process. Procuring Entity staff must be aware that inappropriate procedures at Bid
Opening are usually irreversible and may require cancellation of the Bidding Process with the
consequent delays and waste of time and resources.
Best Bid-Opening Practices to Observe
The Tender Committee shall:
Conduct the Bid Opening strictly following the procedures specified in the ITB Sub-
Clause 23 for all bids received on or prior to the date and time of the bid submission
deadline. The term Bid Opening can be misleading because a bid for which a Bid
Withdrawal notice was received on time shall not be opened, but returned unopened
to the Bidder. The sequence in which bids are handled and opened is crucial.
Ensure that all bids that were received on time are accounted for, before starting
the Bid Opening, as bids that are not opened and read out at Bid Opening shall not be
further considered.
Not reject any bid at Bid Opening, except for late bids received after the date and
time of bid submission deadline. Technically, late bids should not reach the Bid
Opening, but in certain cases a Bidder may attempt to submit its bid at the Bid
Opening place after the deadline.
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Examine the bids at Bid Opening in accordance with the provisions of ITB Sub-
Clause 19. The Procuring Entity shall, verify at the Bid Opening the existence of the
documentation, confirming the validity of a bid withdrawal or modification (as
specified in ITB Sub-Clause 22). A withdrawn bid shall not be opened and in
consequence not read out and, therefore, they shall not be further considered by the
Procuring Entity. Similarly, a bid modification shall be opened and read out to amend
a bid that was received on time.
Bid Evaluation
The Tender Committee, assisted by a Technical Committee if required, is responsible for the
evaluation of all bids received. The Tender Committee must remember that mistakes
committed at bid evaluation may later prompt complaints from Bidders, requiring re-
evaluation of the bids, with the consequent delays and waste of time and resources.
The Tender Committee shall:
Maintain the bid evaluation process strictly confidential
Reject any attempts or pressures to distort the outcome of the evaluation, including
fraud and corruption
Strictly apply only and all of the evaluation and qualification criteria specified in the
Bidding Documents to determine the lowest evaluated bid and to make a
recommendation for award of contract to the Tender Committee.
In conducting the evaluation, the Tender Committee will be required to make appropriate
adjustments for acceptable variations, deviations or alternatives offers, as specified in ITB
Clause 29.2(c). In determining whether such variations, deviations or alternatives are
acceptable, the Tender Committee should take into account the definition of a material
deviation given in ITB Clause 26.2. Any variation, deviation or alternative which substantially
affects the scope, quality or performance of the Works, substantially alters the Employers
rights or the Bidders obligations or would give the Bidder an unfair competitive advantage
over other Bidders should not be considered as acceptable and the bid should be rejected.
In making adjustments for acceptable variations, deviations or alternatives, the Tender
Committee must try to quantity the effect of the change. For example:
Where Bidders request improved payment terms, the benefit should be calculated in
terms of their cash flow. The interest rate used may be one specified in the contract for
late payments.
Where a Bidder suggests the use of alternative materials (e.g. steel instead of
concrete), the increased or decreased cost of maintenance should be calculated.
Where a Bidder proposes a longer completion period, a penalty could be calculated
using the rates given in the contract for liquidated damages.
Where a Bidder proposes the use of alternative materials or a different design, the
difference in operational costs could be taken into account.
Where required, the Tender Committee should seek professional technical or financial advice
to assist in quantifying adjustments.
Upon completion of the Bid Evaluation, the Tender Committee shall be requested to make a
Contract Award recommendation to the head of the Procuring Entity. It is important to note
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
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that a Contract Award decision by the head of the Procuring Entity is not a contract; it is a
decision to award a contract to the bidder who submitted the lowest evaluated bid.
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Notes
1. A brief description of the Works should be provided, including the location of the
project, and other information necessary to enable potential bidders to decide whether
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Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
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User Guide for the Standard Bidding Document for Works (National Bidding)
Notes
1. A brief description of the Works should be provided, including the location of the
project and other information necessary to enable potential bidders to decide whether
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User Guide for the Standard Bidding Document for Works (National Bidding)
Bidding Document
for the
Procurement of Works
Date of Issue of Bidding: [Insert official issue date of the Bidding Document]
Document
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
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User Guide for the Standard Bidding Document for Works (National Bidding)
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
Document: User Guide Page 17 of 65 File Ref: Wks-SBD-NCB-UsrGd
User Guide for the Standard Bidding Document for Works (National Bidding)
Standard Bidding Document for the Procurement of Works issued by the PPA (Version 1, January 2006)
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User Guide for the Standard Bidding Document for Works (National Bidding)
A. General
ITB 3.2 A Bidder shall submit with its bid the documentary evidence specified
in ITB Clause 3.2. [Amend if no documentary evidence is required
e.g. if this has been verified during a pre-qualification exercise].
The documentary evidence required shall be amended as follows:
[amend if any alternative or additional documents are required].
ITB 3.2(a) The mandated public body for the registration of contractors is:
[insert public body responsible for contractor registration for the
works being purchased e.g. Ministry of Infrastructure or
Ministry of Water Resources].
ITB 7.2 The Employer [insert will or will not] hold a pre-bid meeting.
Date: [insert day, date, month and year of pre-bid meeting e.g.
Monday 15th November 2004]
Time: [insert time and identify if a.m. or p.m. e.g. 11.00 a.m.]
Date: [insert day, date, month and year of site visit e.g. Monday
15th November 2004]
Time: [insert time and identify if a.m. or p.m. e.g. 11.00 a.m.]
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Instructions to
Bidders (ITB) Data relevant to the ITB
reference
B. Bidding Documents
C. Preparation of Bids
ITB 12.1(f) The Bidder shall submit with its bid the following additional documents
or information: [insert any additional documents required e.g.
details of the Bidders insurance cover.]
ITB 13.3 The Bidder [insert shall or shall not] provide a breakdown of
rates and prices [for all items whose cost is greater than [insert
percentage or delete if not applicable] % of the Bid Price].
ITB 15.1 Bids shall remain valid for [insert number] days.
[The period must be sufficient for the Employer to evaluate bids,
obtain all approvals and award a contract. Usually this is
expressed as 60, 90 or 120 days. A minimum of 60 days is normally
used, with up to 120 days for high value and complex works
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Instructions to
Bidders (ITB) Data relevant to the ITB
reference
requiring detailed evaluation.]
ITB 15.3 The adjustment of Bid price shall be calculated on the basis of an
annual increase of [insert percentage] percent.
ITB 16.1 The amount of the bid security shall be ETB [insert amount]. [The
amount should be in accordance with the Procurement Directives
i.e.
A bidder may submit an alternative bid only with a bid for the
base case. The Purchaser shall only consider the alternative bids
offered by the Bidder whose bid for the base case was determined
to be the lowest-evaluated bid.
or
A bidder may submit an alternative bid with or without a bid for
the base case. The Purchaser shall consider bids offered for
alternatives as specified in the Schedule of Requirements. All bids
received, for the base case, as well as alternative bids meeting the
specified requirements, shall be evaluated on their own merits in
accordance with the same procedures, as specified in the ITB 29.]
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Instructions to
Bidders (ITB) Data relevant to the ITB
reference
requirements that the alternative is required to meet, which may
be in terms of technical performance parameters or other
conditions, such as operating costs or completion schedule.
Alternative bids can then be evaluated against these criteria, even
if they do not conform fully to the Bidding Document].
ITB 18.1 In addition to the original of the bid, the number of copies is: [insert
number, usually two, but more if essential] copies.
D. Submission of Bids
ITB 19.2(a) For bid submission purposes only, the Employers address is :
Attention: [insert full name of contact person]
Street Address: [insert street address and number]
Floor/Room number: [insert floor and room number, if applicable]
Town/City: [insert name of city or town]
PO Box No/Postal Code: [insert postal code, if applicable]
Country: [insert name of country]
F. Award of Contract
ITB 34.1 The Adjudicator proposed by the Employer is [insert name and
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Instructions to
Bidders (ITB) Data relevant to the ITB
reference
address. General guidance notes on the role and conduct of
adjudication are given below].
The hourly fee for this proposed Adjudicator shall be [insert currency
and amount].
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User Guide for the Standard Bidding Document for Works (National Bidding)
1. Qualification Criteria
This part must be drafted in conjunction with the standard instructions in Section 1,
Instructions to Bidders. It is used to modify the standard instructions and to provide figures
and other details for the qualification criteria, which are appropriate to the particular works
contract.
Where a pre-qualification has been conducted, the standard wording in this part should be
deleted and replaced with Not applicable. Pre-qualification information will be verified in
accordance with ITB Clause 4.2.
Where no pre-qualification has been conducted, the standard wording should be completed as
shown below. The criteria can be amended or deleted, if appropriate, and further criteria can
be added as required.
The information required from bidders in ITB Sub-Clause 4.3 is modified as follows: [list any
additions or deletions to the list of information and documents in ITB Sub-Clause 4.3 or
state no modifications].
The requirements for joint ventures in ITB Sub-Clause 4.4 are modified as follows: [list any
additions or deletions to the requirements in ITB Sub-Clause 4.4 or state no
modification].
To qualify for award of the Contract, in accordance with ITB Sub-Clause 4.5, bidders shall
meet the minimum qualifying criteria: [complete the details required for the criteria at (a)
to (e) below or delete or amend. Additional criteria may be added if required]
(a) Average annual volume of construction work over the past [insert number of years.
For major contracts, it is normally 5 years, for smaller contracts 3 years would be
sufficient] of at least [insert currency and amount. Ideally the minimum value of the
annual turnover of construction work should be set at not less than 2.5 times the
estimated annual cash flow for the Contract. For low risk works, this minimum could be
reduced to 2 times or less]
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(c) Proposals for the timely acquisition (own, lease, hire, etc.) of the following essential
equipment: [insert list of equipment. For smaller contracts, the list should be limited to
specialised items that are critical to the execution of the contract and that may be
difficult for the successful Bidder to obtain quickly]
(d) Personnel with the following qualifications and experience: [insert qualifications and
experience required for key personnel e.g. a Contract Manager with five years
experience in works of an equivalent nature and volume, including no less than three
years as Manager. Personnel requirements should be limited to key site management
and technical personnel, who will be responsible for major components e.g. site
superintendents, contract manager etc]
(e) Liquid assets and/or credit facilities, net of other contractual commitments and
exclusive of any advance payments which may be made under the Contract, of no less than
[insert amount. The successful Bidder must demonstrate that it has or has access to the
financial means sufficient to meet the construction cash flow requirements for the
contract. The minimum liquid assets and credit should normally be set as the estimated
payment flow over approximately 3 months at the average (straight lined)
construction rate.];
A consistent history of litigation or arbitration awards against the Applicant or any partner of a
Joint Venture may result in disqualification.
The figures for each of the partners of a joint venture shall be added together to determine the
Bidders compliance with the minimum qualifying criteria in (a) and (e) above; however, for a
joint venture to qualify, each of its partners must meet at least 25 percent of minimum criteria
(a), (b), and (e) above for an individual Bidder, and the partner in charge at least 40 percent of
those minimum criteria. Failure to comply with this requirement will result in rejection of the
joint ventures Bid.
Subcontractors experience and resources will not be taken into account in determining the
Bidders compliance with the qualifying criteria. [Amend if required].
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All countries are eligible except countries subject to the following provisions.
A country shall not be eligible if:
(a) As a matter of law or official regulation, the Government of the Federal Democratic
Republic of Ethiopia prohibits commercial relations with that country, provided that
the Government is satisfied that such exclusion does not preclude effective
competition for the provision of the works required; or
(b) By an act of compliance with a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations, the Government of the
Federal Democratic Republic of Ethiopia prohibits any procurement of works from
that country or any payments to persons or entities in that country.
The list of eligible countries may differ, where the procurement is funded by a donor or where
other restrictions are imposed by Government policy. In such cases, the Procuring Entity
should amend the text accordingly, inserting either a list of eligible countries or a list of
ineligible countries. The list of countries should be checked directly with the Government or
donor.
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Scope of Works
The Employer should provide a description of the works, including approximate quantities of
major items, which adequately describe the contract scope of work. Additional information
that may be included is:
Site location
Climate and weather information
Site investigation studies and reports
Topographical data
Access details
Details of other ongoing or future works to be carried out by other contractors during the
Contract period
Information regarding disposal, borrow and quarry areas including royalty payments as
applicable
Any other pertinent information regarding the site and the works
A description of approximately 1-2 pages would be appropriate for most contracts.
Technical Specifications
General Notes on Specifications
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A set of precise and clear specifications is a prerequisite for Bidders to respond realistically
and competitively to the requirements of the Employer without qualifying or conditioning their
bids. In the context of open tendering, the specifications must be drafted to permit the widest
possible competition and, at the same time, present a clear statement of the required standards
of workmanship, materials, and performance of the related goods and services to be procured.
Only if this is done will the objectives of economy, efficiency, and fairness in procurement be
realised, responsiveness of bids be ensured, and the subsequent task of bid evaluation
facilitated. The specifications should require that all goods and materials to be incorporated in
the Works be new, unused, of the most recent or current models, and incorporate all recent
improvements in design and materials unless provided otherwise in the Contract.
Samples of specifications from previous similar projects are useful in this respect. The use of
metric units is mandatory. Most specifications are normally written specially by the Employer
or its consultants to suit the specific works in hand. There is no standard set of Specifications
for universal application in all sectors and in all countries, but there are established principles
and practices, which are reflected in these documents.
There are considerable advantages in standardising General Specifications for repetitive Works
in recognised public sectors, such as highways, bridges, railways, urban housing, irrigation,
and water supply, in the same country or region where similar conditions prevail. The General
Specifications should cover all classes of workmanship, materials, and equipment commonly
involved in construction, although not necessarily to be used in a particular Works Contract.
Deletions or addenda should then adapt the General Specifications to the particular Works.
Equivalent Standards and Codes
Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for goods, materials, and workmanship, recognised international
standards should be used as much as possible. Where other particular standards are used,
whether Ethiopian or other standards, the specifications should state that goods, materials, and
workmanship that meet other authoritative standards, and which ensure substantially equal or
higher quality than the standards mentioned, will also be acceptable. The following clause may
be inserted in the Special Conditions or Specifications:
Equivalency of Standards and Codes
Wherever reference is made in the Contract to specific standards and codes to be met by
the goods and materials to be furnished, and work performed or tested, the provisions of
the latest current edition or revision of the relevant standards and codes in effect shall
apply, unless otherwise expressly stated in the Contract. Where such standards and
codes are national, or relate to a particular country or region, other authoritative
standards that ensure a substantially equal or higher quality than the standards and codes
specified will be accepted subject to the Employers prior review and written consent.
Differences between the standards specified and the proposed alternative standards shall
be fully described in writing by the Contractor and submitted to the Engineer at least 28
days prior to the date when the Contractor desires the Engineers consent. In the event
the Engineer determines that such proposed deviations do not ensure substantially equal
or higher quality, the Contractor shall comply with the standards specified in the
documents.
Terminology
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Care must be taken to use the same terminology in the Specifications as used in the remainder
of the bidding document, e.g. Engineer and not Engineer for the party administering and
supervising the contract.
Drawings
Generally the Employer will insert a list of the contract drawings, including site plans, in this
section of the Bidding Document, but will bind and issue the drawings themselves in a separate
volume, which is often larger than other volumes of the bidding Document. The size will be
dictated by the scale of the drawings, which must not be reduced to the extent that details are
rendered illegible. If drawings are to be issued in A1 or A2 format, they should be issued in a
separate volume. If the drawings are comparatively few in number and can be issued in A4 or
A3 size, then the drawings can be included in the Bidding Document itself.
Any notes on the drawings should use the same terminology as used in the rest of the bidding
documents.
A simplified map showing the location of the Site in relation to the local geography, including
major roads, posts, airports and railroads, is helpful.
The construction drawings, even if not fully developed, must show sufficient details to enable
bidders to understand the type and complexity of the work involved and to price the Bill of
Quantities.
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The works should be broken down by consideration of the nature of each activity and if
applicable by the location. The PE will have to determine the degree to which the Works need
to be broken down by consideration of the complexity of the Works and the stated time for
completion. Schedules can be provided for each different discrete element of the works. If the
works require plant and equipment to be provided, separate schedules for the supply only of
the plant and equipment may be provided.
Consistent with these requirements the Activity Schedule should be as simple and brief as
possible.
General
Care must be taken to use the same terminology in the Bill of Quantities (or Activity Schedule)
as used in the remainder of the bidding document, e.g. Engineer and not Engineer.
Content
The Bill of Quantities should generally have a Preamble and be divided into the following
sections:
General Items
Bills for each type of work or work in each location for example:
o Earthworks
o Road Pavements
o Drainage Structures
o Retaining Structures
o Culverts and Bridges
Day work Schedules
Summary Bill of Quantities
The Activity Schedule should generally have a Preamble. While a single Schedule may suffice
for some contracts, more than one Schedule may be required for complex works, especially if
performed in different locations. For example for a hospital complex these may cover the
following:
o Site Works
o Utilities
o Hospital Building Structure
o Medical Equipment
o Nurses' Accommodation
o Doctors' Accommodation
Day work Schedules (to be used for any minor variations)
Summary Activity Schedule
Preamble
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The Preamble should indicate the inclusiveness of the unit prices and should state the method
of measurement which has been adopted in the Preparation of the Bills of Quantities and
which is to be used for the measurement of the works.
The Preamble should state the objective and use of the Activity Schedule and shall contain
any pertinent instructions to Bidders regarding the inclusiveness of the prices, completing of
the schedules, currency of the prices, correction of errors, treatment of items not priced etc.
Work Items
The items in the Bills of Quantities should be grouped in sections to distinguish between parts
of the Works which by nature, location, access, timing or any other characteristic may give
rise to different methods of construction, phasing of the work or consideration of cost.
General items common to all parts of the works may be grouped as a separate section in the
Bills of Quantities.
The items in the Activity Schedule should be grouped in sections to distinguish between parts
of the Works which by nature, location, access, timing or any other characteristic may give
rise to different methods of construction, phasing of the work or consideration of cost.
General items common to all parts of the works may be grouped as a separate section in the
Activity Schedule.
Using the example of the hospital complex, the site works and utilities for the whole complex
may be grouped into separate Schedules, however the activities required for each of the
building should be detailed in a Schedule for that building. For example Sub Activities for
each building could include the following:
o Excavation
o Foundations
o Concrete or Steel Frame
o Roofing
o External Cladding and Windows
o Internal Floors and Walls
o Internal Finishes
o Water Supply System
o Drainage/Sewer System
o Power System
o Lighting System
o Communication/Call/Paging System, etc.
Quantities and Measurement (for Bill of Quantities)
Quantities should be stated in the metric system and computed net from the Drawings and no
allowances made for bulking, shrinkage or waste. The methods of measurement, if a standard
method is used, should be stated e.g. the UK Institution of Civil Engineers Standard Method
of Measurement. Alternatively, a description of the method of measurement for each work
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item may be included in the Technical Specification. Clear definition is required to avoid
disputes during execution of the contract.
Quantities should be rounded up or down as appropriate to a logical degree of accuracy and
spurious accuracy should be avoided.
The following units of measurement and abbreviations are recommended for use.
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sums or contingency allowances are used, the Special Conditions of Contract should state the
manner in which they will be used, and under whose authority.
The estimated cost of specialised work to be carried out, or of special goods to be supplied, by
other contractors (refer to Clause 8 of the Conditions of Contract) should be indicated in the
relevant part of the Bill of Quantities (or Activity Schedule) as a particular provisional sum
with an appropriate brief description. To provide payment to the Contractor for providing
administration, facilities, amenities, attendance, etc., each related provisional sum should be
accompanied by an item in the Bill of Quantities (or Activity Schedule) for the Bidders to
quote a sum or a percentage fee for services to be provided.
Summary
The Summary should contain a tabulation of each separate Bill (or Schedule), including the
Day work Schedule, and provisional set amounts for contingencies (e.g. for quantities and/or
price increases) and a summation for the Total Bid Price.
Sample Bill of Quantities
A Sample Bill of Quantities is provided in Annex 1 to this User Guide to provide an example
and format for Procuring Entities. This should be amended as required for each specific
Bidding Document.
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Confidentiality The Contractor shall treat the Contract and everything in connection
with it as private and confidential. In particular the Contractor shall not
publish or issue any information or photograph concerning the Works
and shall not use the site for any commercial purpose except with the
consent of the Engineer and subject to any conditions he may impose.
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Agreement
The completed Agreement will form part of any resulting Contract. However, the details
to be completed on the Agreement are specific to the successful Bidder and therefore should
be left blank for inclusion in the Bidding Document.
After notification of award, the Employer shall prepare the Agreement using the Agreement
Form and send it to the successful Bidder. It is rare that a major works contract is awarded on
the basis of only the bid, as negotiations are normally held with the best evaluated Bidder to
settle any minor matters arising from the bid or clarifications. It is good practice to conform
the contract document in accordance with any agreements reached during negotiations and any
modifications during evaluation. The Agreement prepared should therefore incorporate any
corrections or modifications to the Bid resulting from corrections of errors, selection of an
alternative offer, acceptable deviations, or any other mutually-agreeable changes allowed for in
the Conditions of Contract, such as changes in key personnel, subcontractors, scheduling etc.
The contracting parties will then sign the conformed document.
This Guide includes an Agreement format that summarises all the information to be provided
when preparing the Agreement at contract award stage.
The successful Bidder should sign the Agreement and return it to the Employer.
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contractors are permitted to submit a performance bond, in place of a bank guarantee, for the
contract security. Only bank guarantees are permitted for the advance payment guarantee.
As the Bidder would be required to complete these Forms in the event of a contract award, the
guidance notes in bold between square brackets provide assistance to the Bidder or financial
institution and should therefore not be deleted by the Employer prior to the issue of the
Bidding Document.
This User Guide is not intended for Bidders as all information that the Bidder is required to
provide should be detailed by the Employer in the Bidding Document. Therefore the
Performance Security and Advance Payment Security forms are not included in this User
Guide.
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Agreement
Procurement Reference No: [insert Procurement Reference number]
THIS AGREEMENT made the [insert day] day of [insert month], [insert year], between
the one part, and [insert name of Contractor] of [insert address of Contractor] (hereinafter
Whereas the Employer is desirous that the Contractor execute [insert brief description of
Works] (hereinafter called the Works) and the Employer has accepted the Bid by the
Contractor for the execution and completion of such Works and the remedying of any defects
therein for the Contract Price of the equivalent of Ethiopian Birr [insert contract price in
Ethiopian Birr in words and figures, ensuring it is the same as on any Letter of
Acceptance].
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement, words and expressions shall have the same meanings as are
respectively assigned to them in the Contract referred to.
2. In consideration of the payments to be made by the Employer to the Contractor as
hereinafter mentioned, the Contractor hereby covenants with the Employer to execute
and complete the Works and remedy any defects therein in conformity in all respects
with the provisions of the Contract.
3. The Employer hereby covenants to pay the Contractor in consideration of the
execution and completion of the Works and the remedying of defects therein the
Contract Price or such other sum as may become payable under the provisions of the
Contract, at the times and in the manner prescribed by the Contract.
4 The Contract Price or such other sum as may be payable shall be paid in Ethiopian
Birr.
IN WITNESS whereof the parties thereto have caused this Agreement to be executed in
accordance with the law specified in the Special Conditions of Contract on the day, month and
year indicated above.
Signed by [authorized signatory for the Employer to sign] (for the Employer)
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Name: ________________________________
Position: ______________________________
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The Letter of Acceptance does not form part of the Bidding Document. However, it is the
document normally used to accept a bid, and therefore to form a contract, so it is essential that
it is used correctly by Procuring Entities.
A Letter of Acceptance must not be issued prior to obtaining all required approvals, including
from the Tender Committee and head of the Procuring Entity and ensuring that sufficient
funds have been committed for the contract.
A sample wording for a Letter of Acceptance is included below. The letter should be signed
and the seal of the Procuring Entity should be affixed.
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Yours sincerely,
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Procuring Entities are required to inform unsuccessful Bidders that their bids have been
unsuccessful and to inform them of the successful Bidder and provide brief reasons why their
bid has failed. Unsuccessful Bidders must be informed of the successful Bidder at least five
working days prior to contract award.
A sample wording for a letter to an unsuccessful Bidder is included below. The letter should
be signed and the seal of the Procuring Entity should be affixed.
[Date]
Dear Sirs,
This is to notify you that your Bid dated [insert date] for [description of works and
procurement reference number] has been unsuccessful.
The successful Bidder was [name of successful Bidder] with a Contract Price of Ethiopian
Birr [insert amount]. A contract will be concluded with this Bidder, following the procedures
included in the Public Procurement Proclamation and Directives.
Your bid was unsuccessful because [insert brief reasons e.g. it was not technically compliant
with the specifications in the Bidding Document or your price was not the lowest evaluated
price,
Yours sincerely,
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2. Bidders shall price the Bill of Quantities in local currency only, and shall indicate in the
bid the percentage expected for payment in foreign currency or currencies.
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106 etc.
114 etc.
123 etc.
etc.
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(b) The additional percentage payment shall be quoted by the Bidder and applied to the
equivalent local currency payments made under (a) above;
(c) The cost of hauling materials for use on work ordered to be carried out as day
work from the store or stockpile on the Site to the place where it is to be used will
be paid in accordance with the terms for Labour and Construction in this schedule.
Day work Constructional Plant
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Amount
in ETB
1. Total for Day work: Labour
2. Total for Day work: Materials
3. Total for Day work: Constructional Plant
Total for Day work (provisional sum)
(Carried forward to Bid Summary)
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etc.
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Contract Name:
Contract No.:
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