PPMO Standar Bidding Document
PPMO Standar Bidding Document
PPMO Standar Bidding Document
Procurement of Works
Medium Contracts
Issued by:
Government of Nepal
Public Procurement Monitoring Office
Singha Durbar, Kathmandu
January 2009
Table of Contents
Introduction and Instructions ......................................................................................................... 1
Section III. Sample Forms of Bid, Qualification Information, Letter of Intention to Award,
Letter of Acceptance and Agreement ................................................................... 28
2. General Instructions
2.1 All documents listed in the table of contents, excluding these Introduction and
Instructions, are normally required for the procurement of works. However, they should
be adapted as necessary to the circumstances of each project
2.2 The italicized text in the Notes boxes, remarks in [ ] brackets and footnotes contain
instructions to the user and are not part of the SBD. They should be deleted from the
documents issued to bidders.
2.3 Each SBD contains standard Instructions to Bidders and General Conditions of Contract
which have been developed and proven in international applications over many years
and should remain unchanged. Users should add project-specific information or special
conditions of contract in the Bidding Data and Special Conditions of Contract as
applicable.
3. Additional Information on the SBD Procurement of Works – Medium
Contracts
3.1This SBD is prepared by Public Procurement Monitoring office and is based on the PWD,
Medium Contracts which has been revised and updated to incorporate the provisions of
the GoN, Public Procurement Act, 2007 and the Public Procurement Regulations
2007.The document is applicable to NCB/ICB for contracts valued up to NRs. 500
million.
3.2 Users should note that this SBD may be used with either pre-qualification or post-
qualification and the Instructions to Bidders need to be modified as required for selected
application.
3.3 Although designed for medium-sized contracts, the documents are complex. Project
Managers are advised to use experienced staff or consultants to prepare the bidding
documents for a particular project.
3.4 This Introduction and Instruction part of the SBD should not be incorporated into the
bidding documents of Public Entities (PEs) that may be issued to the Bidder as a part of
bid documents. This part is only for the use of the Employer in order to prepare a proper
bidding document.
3.5 If any provision of this document is inconsistent with Public Procurement Act (PPA).
2063 or Public Procurement Regulations (PPR), 2064, the provision of this document
shall be void to the extent of such inconsistency and the provision of PPA and PPR shall
prevail.
(b) placed in the website of the concerned Entity or that of the Public Procurement Monitoring
Office in case of a central level Public Entity and in case of District level Public Entity such
notice may be placed in the website of the concerned entity or that of the Public
Procurement Monitoring Office; and
(c) an advertisement displayed on the Notice Board of the office inviting the bids.
Its purpose is to supply information to enable potential Bidders to decide on their participation.
Apart from the essential items listed in the sample documents, the Invitation to Bids should also
indicate any important bid evaluation criteria.
The Invitation to Bids may be incorporated in the bidding documents for the record, or it may be
omitted. In either event, the information contained in the Invitation to Bids should conform to the
bidding documents and, in particular, to the relevant information in the SCC to be attached
herein.
Date: _______________
1 2
1. Government of Nepal has received a loan/credit/grant from [name of Donor Agency]
towards the cost of [name of Project] and intends to apply part of the funds to cover
3
eligible payments under the Contract for [name and identification number of Contract] .
Bidding is open to all eligible Nepalese and Foreign Bidders from all countries as defined
in [the name of the Donor Agency Guidelines].
2. The [name of Employer] invites sealed bids from registered contractors for the
construction of [brief description of the Works].
3. Eligible Bidders may obtain further information and inspect the bidding documents at the
office of [name, location, mailing address, telephone and facsimile numbers and email
address of project office].
4. Bidding documents may be purchased from the above office of [insert name and
address] and the office of [insert name and address] by eligible Bidders on the
submission of a written application and upon payment of a non-refundable fee of [insert
amount].4
5. Bids must be submitted to the above office of [name and address] on or before [time]
on [date]. Documents received after this deadline shall not be accepted
6. Bids shall be opened in the presence of Bidders' representatives who choose to attend at
[time and date] at the office of [address of appropriate office].Bids must be valid for a
period of 90 days after bid opening and must be accompanied by bid security, amounting
to a minimum of 2.5 % of the quoted Bid amount (inclusive of VAT), which shall be
valid for 30 days beyond the bid validity period.
7. If bidder wishes to submit the Bid Security in the form of cash, the cash should be
deposited in Deposit Account No.[insert Account details] at [inset name and address
of Bank] and submit the receipt of the deposited amount of cash along with the bid.
8. If the last date of purchasing, submission and opening falls on a government holiday then
the next working day shall be considered as the last day.
9. Bidders are advised to visit site and assess the actual site conditions before submitting
their bid.
10. Pre-Bid Meeting shall be held at the office of [name and address) on [ Time and Date]
11. Bidders Annual Turnover and Experience requirement are:
11.1 Average Annual Turnover of the best 3 years
over the last 10 years is : [enter Rs….……………….]
1
This provision is only for donor funded so should be deleted in case of project funded by Government’s resources
2
In case of Donor funded project.
3
See definitions in the Conditions of Contract (“the Contract”).
4
Insert amount as specified in the Public Procurement Regulations
13. [The Employer may add additional information as required. For example if several
contracts are to be bid under one project the following table should be included].
Contract Contract Name Price of Bidding Dead line for Dead line for
No. Document (NRs) Purchasing Bid. Doc. Bid Submission
Matters governing the performance of the Contractor, payments under the Contract, or matters
affecting the risks, rights, and obligations of the parties under the Contract are not normally
included in this Section, but rather under Section IV Conditions of Contract and/or Section V
SSC.. If duplication of a subject is inevitable in the different sections of the documents, care must
be exercised to avoid contradiction between clauses dealing with the same matter.
These Instructions to Bidders will not be part of the Contract and will cease to have effect once
the Contract is signed.
Instructions to Bidders
A. General
1. Scope of Bid 1.1 The Employer as defined in the Bidding Data invites Bids for the
construction of Works, as described in the Bidding Data. The name
and identification number of the Contract are provided in the
Bidding Data.
2. Source of 2.1 The Government of Nepal has made budgetary allocation or intends
Funds to apply part of the funds of a loan/credit/grant from the Donor
Agency, as defined in the Bidding Data towards the cost of the
Project, as defined in the Bidding Data, to cover eligible payments
under the Contract for the Works. Payments by the Donor Agency
will be made only at the request of GoN and upon approval by the
Donor Agency in accordance with the loan/credit/grant agreement,
and will be subject in all respects to the terms and conditions of that
agreement. Except as the Donor Agency may specifically
otherwise agree, no party other tha GoN shall derive any rights from
the loan/credit/grant agreement or have any rights to the
loan/credit/grant proceeds.
3. Eligible Bidders 3.1 This invitation for Bids is open to all registered Bidders with
qualifications as described in the Bidding Data.
3.2 All Bidders shall provide in Section III, Forms of Bid and
Qualification Information, a statement that the Bidder (including all
members of a joint venture and subcontractors) is not associated,
nor has been associated in the past, directly or indirectly, with the
consultant or any other entity that has prepared the design,
specifications and other documents for the Project or being
proposed as Project Manager for the Contract. A firm that has been
engaged by the Employer to provide consulting services for the
preparation or supervision of the Works, and any of its affiliates,
shall not be eligible to Bid.
4. Qualification of
the Bidder 4.1 All Bidders shall provide in Section III, Forms of Bid and
Qualification Information, a preliminary description of the proposed
work method and schedule, including drawings and charts, as
required in the Qualification Information.
4.5 To qualify for award of the Contract, Bidders shall meet the following
minimum qualifying criteria:
a. general Work Experience as a sole prime contractor or
management contractor or partner of joint venture association
or sub contractor as specified in Bidding Data.
b. average annual volume of construction work completed as a
sole prime contractor or management contractor or partner of
joint venture association or sub contractor in the last ten years
of at least the amount specified in the Bidding Data;5
c. successful specific experience as prime contractor or
management contractor or partner of joint venture association
or sub contractor in the construction of at least the number of
works, each with a value as specified in Bidding Data of a
nature and complexity equivalent to the Works in the last ten
years (to comply with this requirement, works cited shall be at
least 80 percent complete.
d. 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 the amount
specified in the Bidding Data6
e. a Contract Manager with five years’ experience in works of an
equivalent nature and volume, including no less than three
years as Contract Manager and other personnel as specified
in the Bidding Data; and
f. proposals for the timely acquisition (own, lease, hire, etc.) of
the essential equipment in working condition for the
contract duration listed in the Bidding Data ;
4a
To facilitate contract administration the number of JV partners is usually limited to 3.
5
This amount is usually not less than 1.5 times the estimated annual cash flow for the Contract.
6
Usually the equivalent of the estimated payments flow over 4-6 months at the average (straight line distribution)
construction rate. The actual period of reference will depend on the speed with which the Employer will pay the
Contractor’s monthly certificates.
4.6 The figures for each of the partners of a joint venture shall be
added together to determine the Bidder’s compliance with the
minimum qualifying criteria of ITB Sub-Clause 4.5 above. However,
for a joint venture to qualify, each of it’s partners must meet the
qualifying criteria of 4.5 (a); at least the percentage specified in
Bidding Data of minimum criteria 4.5(b) and (d) for an individual
Bidder and the partner in charge at least the percentage specified in
the Bidding Data of minimum criteria 4.5 (b); (c) and (d) Failure to
comply with this requirement will result in rejection of the joint
venture’s bid. Subcontractors’ experience and resources will not be
taken into account in determining the Bidder’s compliance with the
qualifying criteria, unless otherwise stated in the Bidding Data.
4.7 The values of Turnover and Specific work experiences pursuant to
Sub-Clause 4.5(b) and (c ) will be brought to the current value using
the annual inflation rate (National Urban Consumer Price Index;
Overall Index) published by Nepal Rastra Bank
5. One Bid per 5.1 Each Bidder shall submit only one bid, either individually or as a
Bidder partner in a joint venture. A Bidder who submits or participates in
more than one bid (other than as a subcontractor or in cases of
alternatives that have been permitted or requested) shall cause all
the proposals with the Bidder’s participation to be disqualified.
6. Cost of Bidding 6.1 The Bidder shall bear all costs associated with the preparation and
submission of his bid, and the Employer will in no case be
responsible or liable for those costs.
7. Site Visit 7.1 The Bidder, at the Bidder’s own responsibility and risk, is
encouraged to visit and examine the Site of Works and its
surroundings and obtain all information that may be necessary for
preparing the bid and entering into a contract for construction of the
Works. The costs of visiting the Site shall be at the Bidder’s own
expense.
B. Bidding Documents
8. Contents of 8.1 The set of Bidding documents provided by the Employer
Bidding comprises the documents listed in the table below and addenda
Documents issued in accordance with Clause 10:
7
Delete Sub-Clause 4.7 where not applicable (see Clause 30).
10. Amendment of 10.1 Before the deadline for submission of Bids, the Employer may
Bidding modify the Bidding documents by issuing addenda.
Documents
10.2 Any addendum thus issued shall be part of the Bidding documents
and shall be communicated in writing or by fax to all purchasers of
the Bidding documents.9 Prospective Bidders shall acknowledge
receipt of each addendum by fax to the Employer
C. Preparation of Bids
11. Language of Bid 11.1 All documents relating to the bid shall be in English.
12. Documents 12.1 The bid submitted by the Bidder shall comprise the following:
Comprising the
i. The bid (in the format indicated in Section III including SCC);
Bid
ii. Bid Security;
iii. Priced Bill of Quantities;
iv. Qualification Information Form and Documents;
v. Information on eligibility;
vi. Any other materials required to be completed and submitted by
Bidders, as specified in the Bidding Data.
8
It may be necessary to extend the deadline for submission of Bids if the Employer’s response results in substantial
changes to the Bidding Documents. See Clause 10 below.
9
It is therefore important that the Employer maintain a complete and accurate list of recipients of the Bidding
documents and their addresses.
13. Bid Prices 13.1 The Contract shall be for the whole Works, as described in Sub-
Clause 1.1, based on the priced Bill of Quantities submitted by the
Bidder.
13.2 The Bidder shall fill in rates and prices for all items of the Works
described in the Bill of Quantities. Items for which no rate or price
is entered by the Bidder will not be paid for by the Employer when
executed and shall be deemed covered by the other rates and
prices in the Bill of Quantities.
13.3 All duties, taxes and other levies payable by the Contractor under
the Contract, or for any other cause, as of the date 30 days prior to
the deadline for submission of Bids, shall be included in the rates,
prices and total Bid Price submitted by the Bidder.
13.4 The rates and prices quoted by the Bidder shall be subject to
adjustment during the performance of the Contract if provided for
in the Bidding Data and SCC and the provisions of Clause 46 of
the General Conditions of Contract. The Bidder shall submit with
the bid all the information required under the SCC and Clause 46
of the General Conditions of Contract.]
13.6 If a foreign Bidder in his Bid, has not provided the information
mentioned in Sub Clause 13.5 or has submitted his bid stating
that the Bidder does not have a local agent and later it is proved
that the bidder has a local agent or it is proved that the
commission mentioned in the Bid is less than the commission
received by the local agent then the Employer shall initiate
proceedings to black list such bidder.
14. Currencies of
Bid and Payment 14.1 The unit rates and prices shall be quoted by the Bidder entirely in
Nepalese Rupees. Foreign currency requirements of the Bidder, if
any, for import of equipment and materials not produced or not
available in Nepal shall be indicated as a percentage of the Bid
Price (excluding provisional sums) and shall be paid by the
Employer in the foreign currencies so specified by the Bidder as an
Advance Payment pursuant to Clause 50 of the General
Conditions of Contract up to a limit of 20% of the contract price.
Foreign currency shall be payable at the option of the Bidder in up
to three foreign currencies of any country acceptable to the
Employer.
15. Bid Validity 15.1 Bids shall remain valid for the period10 specified in the Bidding
Data.
10
As per the provision of Public procurement Regulations, the period is 90 days for Work estimate up to Rs. 100.00mil
and 120 days for estimated work beyond Rs.100.00mil.
15.3 In the case of contracts in which the Contract Price is fixed (not
subject to price adjustment), if the period of bid validity is extended
beyond 56 days, the amounts payable in local and foreign
currency to the Bidder selected for award shall be increased by
applying to both the local and the foreign11 currency component of
the payments, respectively, the factors specified in the Bidding
Data or in the request for extension, for the period of delay beyond
56 days after the expiry of the initial bid validity, up to the
notification of award. Bid evaluation will be based on the Bid
Prices without taking the above correction into consideration.
16. Bid Security 16.1 The Bidder shall furnish, as part of the bid, a Bid Security in
Nepalese Rupees in the amount specified in the Invitation for
Bids.12
16.2 The Bid Security shall, at the Bidder’s option, be in the form of
earnest money, bank draft or a bank guarantee from a reputable
bank in Nepal acceptable to the Employer or from a foreign bank
endorsed by the local bank in Nepal acceptable to the Employer.
The format of the bank guarantee shall be in accordance with the
form of Bid Security included in Section IX; other formats may be
permitted, subject to the prior approval of the Employer. The Bid
Security shall remain valid for a period of 30 days beyond the
original validity period for the bid and any period of extension
subsequently requested under Sub-Clause 15.2.
16.5 The Bid Security of the successful Bidder will be discharged when
the Bidder has signed the Agreement and furnished the required
Performance Security.
11
The value of the foreign currency factor should be based on, or comparable to, the expected annual increases in
international prices. The value of the local currency factor should be based on the projected inflation in the
Employer’s country for the period in question.
12
Public Procurement Regulations/2064 specifies not less than 2.5 percent of the price quoted by the Bidder.. .
17. Alternative 17.1 Bidders shall submit offers that comply with the requirements of
Proposals by the Bidding documents, including the basic technical design as
Bidders indicated in the Drawings and Specifications. Alternatives will not
be considered unless specifically allowed in the Bidding Data. If
so allowed, Sub-Clause 17.2 shall govern.
18. Format and 18.1 The Bidder shall prepare one original of the documents comprising
Signing of Bid the bid as described in Clause 12 of these Instructions to Bidders,
bound with the volume containing the form of bid, and clearly
marked “ORIGINAL.” In addition, the Bidder shall submit one copy
of the bid clearly marked as “COPY.” In the event of discrepancy
between them, the original shall prevail.
18.2 The original and a copy of the bid shall be typed or written in
indelible ink and shall be signed by a person or persons duly
authorised to sign on behalf of the Bidder. This authorization shall
consist of a written confirmation as specified in the Bidding Data
and shall be attached to the bid. The name and position held by
each person signing the authorization must be typed or printed
below the signature. All pages of the bid where entries or
amendments have been made shall be initialled by the person or
persons signing the bid.
18.3 The bid shall contain no alterations or additions, except those to
comply with instructions issued by the Employer, or as necessary
to correct errors made by the Bidder, in which case such
corrections shall be initialled by the person or persons signing the
bid.
18.4 The Bidder shall furnish information as described in the form of bid
on commissions or gratuities, if any, paid or to be paid to agents
relating to this bid, and to contract execution if the Bidder is
awarded the Contract.
D. Submission of Bids
19. Submission, 19.1 The Bidder shall seal the original and a copy of the bid in two inner
Sealing and envelopes and one outer envelope, duly marking the inner
Marking of Bids envelopes as “ORIGINAL” and “COPY”.
19.4 If the outer envelope is not sealed and marked as above, the
Employer will assume no responsibility for the misplacement or
premature opening of the bid.
20. Deadline for 20.1 Bids shall be delivered to the Employer at the address specified in
Submission of the Bidding Data no later than the time and date specified in the
Bids Bidding Data.
20.2 The Employer may extend the deadline for submission of Bids by
issuing an amendment in accordance with Clause 10, in which
case all rights and obligations of the Employer and the Bidders
previously subject to the original deadline will then be subject to
the new deadline.
21. Late Bids 21.1 Any bid received by the Employer after the deadline prescribed in
Clause 20 will be returned unopened to the Bidder.
22. Withdrawal, and 22.1 Bidders may withdraw or modify their Bids after it has been
Modification of submitted by giving a written notice, duly signed by an authorized
Bids representative and shall include a copy of the authorization in
accordance with Clause 18.2 before the deadline prescribed in
Clause 20.The corresponding modification of the bid must
accompany the respective written notice.
22.3 No bid may be modified after the deadline for submission of Bids.
22.5 Bidders may only offer discounts to, or otherwise modify the prices
of their Bids by submitting bid modifications in accordance with this
clause, or included in the original bid submission. Intended
discount offer should always be expressed in percentage to be
applied to each unit rate.
13
The receiving address should be an office that is staffed during normal working hours by personnel authorised to
certify time and date of receipt and assure safe-keeping until bid opening. A post office address is not satisfactory.
The address must be the same as the receiving address described in the Invitation for Bids.
23.3 The Bidders’ names, the Bid Prices, the total amount of each bid
and of any alternative bid (if alternatives have been requested or
permitted), any discounts, bid withdrawal and modification, the
presence or absence of Bid Security, difference of rate in words
and figures, quoted price for alternate technical specification if
proposed, weather the Bid Form has signature of the bidder or
authorized representative, corrections/effacement or obliteration in
bidding document, any remarks made by the bidder in the Bid
Form, details of rates if requested and such other details as the
Employer may consider appropriate will be announced by the
Employer at the bid opening.
23.4 The Employer will prepare minutes of the bid opening, including the
information disclosed to those present in accordance with Sub-
Clause 23.3.14
24. Process to Be 24.1 Information relating to the examination, clarification, evaluation and
Confidential comparison of Bids and recommendations for the award of contract
shall not be disclosed to Bidders or any other persons not officially
concerned with such process until the award to the successful
Bidder has been announced.
25. Clarification of 25.1 To assist in the examination, evaluation and comparison of Bids,
Bids and the Employer may, at the Employer’s discretion, ask any Bidder for
Contacting the clarification of the Bidder’s bid, including breakdowns of unit rates.
Employer The request for clarification and the response shall be in writing or
by facsimile, but no change in the price or substance of the bid shall
be sought, offered, or permitted except as required to confirm the
correction of arithmetic errors discovered by the Employer in the
evaluation of the Bids in accordance with Clause 27.
14
A copy of the minutes should be sent by the Employer to the Donor together with the bid evaluation report in case of
a Donor-assisted project.
so in writing.
26. Examination of 26.1 Prior to the detailed evaluation of Bids, the Employer will determine
Bids and whether each bid (a) meets the eligibility criteria defined in Clause
Determination of 3; (b) has been properly signed; (c) is accompanied by the required
Responsiveness securities; and (d) is substantially responsive to the requirements of
the Bidding documents.
27.2 The amount stated in the bid will be adjusted by the Employer in
accordance with the above procedure for the correction of errors
and, with the concurrence of the Bidder, shall be considered as
binding upon the Bidder. If the Bidder does not accept the
corrected amount, the bid will be rejected and the Bid Security may
be forfeited in accordance with Sub-Clause 16.6(b).
28. Currency for Bid 28.1 Bids will be evaluated as quoted in Nepalese Rupees in
Evaluation accordance with Sub-Clause 14.1, unless a Bidder has used
different exchange rates than those prescribed in Sub-Clause 14.2,
in which case the bid will be first converted into the amounts
payable in different currencies using the rates quoted in the bid and
then reconverted to Nepalese Rupees using the exchange rates
prescribed in Sub-Clause 14.2.
29. Evaluation and 29.1 The Employer will evaluate and compare only the Bids determined
Comparison of to be substantially responsive in accordance with Clause 26.
Bids
29.2 In evaluating the Bids, the Employer will determine for each bid the
29.4 If the bid, which results in the lowest Evaluated Bid price, is
unbalanced or frontloaded in relation to the Employer’s estimate of
the items of Work to be performed under the contract pursuant to
Sub- Clause 29.3, the Employer shall ask the bidder to give
clarification with detailed rate analysis for any or all items of the Bill
of Quantities. If the clarification is found satisfactory then the
Employer shall increase at the expense of the bidder the
performance security set forth in Clause 34 by an additional 8% of
the quoted amount to protect the Employer against financial loss in
the event of default of the successful bidder under the contract and
if the clarification is found unsatisfactory then the Employer may
reject such bid.
29.5 The Employer reserves the right to accept or reject any variation
deviation or alternative offer. Variations, deviations, and alternative
offers and other factors which are in excess of the requirements of
the Bidding documents or otherwise result in unsolicited benefits for
the Employer will not be taken into account in bid evaluation.
29.716
15
Daywork is work carried out following instructions of the Project Manager and paid for on the basis of time spent by
workers, and the use of materials and the Contractor’s equipment, at the rates quoted in the bid. For Daywork to be
priced competitively for bid evaluation purposes, the Employer must list tentative quantities for individual items to be
costed against Daywork (e.g., a specific number of tractor driver staff-days, or a specific tonnage of Portland
cement), to be multiplied by the Bidders’ quoted rates and included in the total Bid Price.
30. Preference for 30.1 Domestic Bidders shall provide all evidence necessary to prove that
Domestic they meet the following criteria to be eligible for a margin of
Bidders preference stated below in the comparison of their Bids with those
of Bidders who do not qualify for the preference.
30.2 Domestic Bidders which meet the following criteria shall be given a
preference as specified in the Bidding Data.
a. for an individual firm or joint venture of firms:
i. each firm is registered in Nepal;
ii. each firm has more than 50 percent ownership by
nationals of Nepal;
iii. will not subcontract more than 50 percent of the total value
of the Works to foreign contractors;
iv. satisfies any other criteria specified for the purpose of
domestic preference eligibility in the Bidding Data.
b. for a joint venture between domestic and foreign firms:
i. each domestic firm is eligible for the preference according
to the criteria stated in Clause 30.2 (a) above;
ii. at least 50 percent interest in the joint venture is held by
the Nepalese firms as demonstrated by the profit and loss
sharing provisions of the joint venture agreement;
iii. will not subcontract more than 50% of the total value of the
works to the foreign partner or other foreign firms;
iv. satisfies any other criteria specified for the purpose of
domestic preference eligibility in the Bidding Data..
F. Award of Contract
16
If the Bidding Documents include two or more lots, add Clause 29.7: “In the case of several lots, pursuant to Clause
29.2(b), the Employer will determine the application of discounts so as to minimize the combined cost of all the lots.”
31. Award Criteria 31.1 Subject to Clause 32, the Employer will select and award the Contract
and Intention to the Bidder whose bid has been determined to be substantially
to Award responsive to the Bidding documents and who has offered the lowest
evaluated Bid Price, provided that such Bidder has been determined
to be (a) eligible in accordance with the provisions of Clause 3 and
(b) qualified in accordance with the provisions of Clause 4.
31.2 The Employer shall notify it’s intention to award the Contract to the
selected bidder in accordance with Sub-Clause 31.1 within 7 days of
selection of his bid. Further, the employer shall also provide
information regarding the name, address and the contract amount of
the successful bidder to all the bidders who participated in the bid.
31.3 Any Bidder who is not satisfied with the procurement process or
Employer’s decision provided as per Sub - Clause 31.2 and believes
that the Employer has committed an error or breach of duty which
has or will result in loss to the bidder then the bidder may give an
application for review of the decision to the Employer with reference
to the error or breach of duty committed by the Employer. The review
application should be given within 7 days of receipt of information
regarding the issue of letter by the Employer notifying it’s intention to
award the contract to the successful bidder.
32. Employer’s 32.1 Notwithstanding Clause 31, the Employer reserves the right to accept
Right to or reject any bid, and to cancel the Bidding process and reject all
Accept any Bid Bids, at any time prior to the award of Contract, without thereby
and to Reject incurring any liability to the affected Bidder or Bidders or any
any or all Bids obligation to inform the affected Bidder or Bidders of the grounds for
the Employer’s action.
33. Notification of 33.1 The Bidder whose bid has been accepted in accordance with Sub-
Award and Clause 31.4 will be notified of the award by the Employer prior to
Signing of expiration of the bid validity period by facsimile confirmed by
Agreement registered letter. This letter (hereinafter and in the General Conditions
of Contract called the “Letter of Acceptance”) will state the sum that
the Employer will pay the Contractor in consideration of the execution,
completion and maintenance of the Works by the Contractor as
prescribed by the Contract (hereinafter and in the Contract called the
“Contract Price”).
33.2 The notification of award will constitute the formation of the Contract,
subject to the Bidder furnishing the Performance Security in
accordance with Clause 34 and signing the Agreement in accordance
with Sub-Clause 33.3.
33.3 The Agreement will incorporate all agreements between the Employer
and the successful Bidder. It will be signed by the Employer and sent
to the successful Bidder with the notification of award along with the
Letter of Acceptance. Within 15 days of receipt, the successful
Bidder shall sign the Agreement and deliver it to the Employer.
34. Performance 34.1 Within 15 days after receipt of the Letter of Acceptance, the
Security successful Bidder shall deliver to the Employer a Performance
Security in the amount stipulated in the SCC and in the form
stipulated in the Bidding Data, denominated in the type and
proportions of currencies in the Letter of Acceptance and in
accordance with the General Conditions of Contract.
34.3 [The Employer may use his own Performance Security form provided
it conforms to prevailing laws and regulations].
35. Advance 35.1 The Employer shall make an Advance Payment on the Contract Price
Payment and as stipulated in the General Conditions of Contract, subject to a
Security maximum amount17 as stated in the Bidding Data.
36. Additional 36.1 The Contractor shall provide additional Performance Security pursuant
Securities to Sub-clause 29.4. Failure to do so shall result in forfeiture of the Bid
17
This amount is 20 percent of the Contract Price as specified in PPR 2007.
37.Adjudicator/ 37.1 If any dispute arises between the Employer and the Contractor in
Dispute Resolution connection with the execution of the Contract, the parties shall attempt
Board to settle such dispute amicably. If the parties fail to resolve the dispute
amicably then the dispute may be referred to the Adjudicator or
Dispute Resolution Board (DRB) as specified in the Bidding Data by
either party in writing.
38. Corrupt or 38.1 The GoN requires that the Employer as well as Bidders observe the
Fraudulent highest standard of ethics during the procurement and execution of
Practices contracts. In pursuance of this policy, the GoN:
a. defines, for the purposes of this provision, the terms set forth
below as follows:
iii. “corrupt practice” means the offering, giving, receiving or
soliciting of any thing of value to influence the action of a
public official in the procurement process or in contract
execution; and
iv. “fraudulent practice” means a misrepresentation of facts in
order to influence a procurement process or the execution of
a contract to the detriment of the Employer, and includes
collusive practice among Bidders (prior to or after bid
submission) designed to establish Bid Prices at artificial non-
competitive levels and to deprive the Employer of the
benefits of free and open competition;
b. will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in corrupt or fraudulent
practices in competing for the contract in question; and
c. will declare a firm ineligible for a stated period of time, to be
awarded a GoN funded contract if it at any time determines that
the firm has engaged in corrupt or fraudulent practices in
competing for, or in executing, a GoN -funded contract.
39.1 The Bidder shall be responsible to fulfill his obligations as per the
39. Conduct of
requirement of the Contract Agreement, Bidding documents, GoN’s
Bidders Procurement Act and Regulations.
39.2 The Bidder shall not carry out or cause to carryout the following acts
with an intention to influence the implementation of the procurement
process or the procurement agreement :
a) give or propose improper inducement directly or indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent practice
40. Blacklisting 40.1 Without prejudice to any other right of the Employer under this
Bidder contract, GoN, Public Procurement Monitoring Office may blacklist a
bidder for his conduct up to three years on the following grounds
and seriousness of the act committed by the bidder:
G. Bidding Data
Instruction to Bidders Clause References
A. General
ITB 1.1 The Employer is: [insert name of the Employer]
The Works are: [insert name and brief description of the Works ]
ITB 2.1 The Source of Fund: [insert GoN or the name of the Donor Agency, as
appropriate],
The “Donor “means: [insert the name of the Donor Agency as appropriate] and
loan/credit/grant refers to an [insert Donor loan, credit
or grant as appropriate].
ITB 4.318 The information required from Bidders in Sub-Clause 4.3 is modified as follows:
[list any additions or deletions to list in Sub-Clause 4.3; otherwise list
“none”].
The qualification data required from Bidders in Sub-Clause 4.4 are modified as
follows: [list any additions or deletions to list in Sub-Clause 4.4; otherwise list
“none”].
ITB 4.518 The qualification criteria in Sub-Clause 4.5 are modified as follows: [list any
additions or deletions to list in Sub-Clause 4.5; otherwise list “none”].
ITB 4.5b18 For NCB contract Minimum average annual volume of construction work for the
best 3 years in the last 10 years: [enter amount in NRs excluding VAT.] or
For ICB contract Minimum average annual volume of construction work
18
Where prequalification has been conducted, the Employer may choose to omit or to request confirmation of any of
there qualification criteria.
ITB 4.5e18 Additional Personnel requirement (if any) : [ enter details of position,
qualification and experience of additional personnel required]
ITB 4.5f18 The minimum essential equipment requirement shall be as mentioned in Section III,
Qualification Information, Sub-clause 1.4.
ITB 9.1
Employer’s address for clarification purposes is: [ insert Name & Address]
ITB 13.4 The Contract [specify “is” or “is not”] subject to price adjustment 19in accordance
with Clause 46 of the Conditions of Contract.
ITB 14.1 The specified international trading currency shall be [any freely convertible
currency].
ITB 15.1 The period of bid validity shall be [insert 90 days for estimated value of bid up to
100million or 120 days for estimated value of work beyond 100million.] after
the deadline for bid submission.
ITB 15.3 The adjustment of Bid Price in accordance with Clause 15.3 shall be calculated on
the basis of an annual increase for foreign costs of [insert] percent and an annual
increase for local costs of [insert] percent.
ITB 16.1 The amount of Bid Security shall be NRs [insert an Amount equivalent to 2.5%
of the quoted bid amount inclusive of VAT ].
ITB 17.0 Alternative proposals to the requirements of the Bidding documents [insert “will”
or “will not,” as appropriate] be permitted with respect to [describe the
alternatives to be permitted, or delete, as appropriate].
ITB 18.2
The written confirmation of authorization to sign on behalf of the Bidder shall
indicate: [insert “
(a) The name and description of the documentation required to
demonstrate the authority of the signatory to sign the Bid such as a
18A
The minimum Percentage to be met by each partner shall not be less than 25%
18B
The minimum Percentage to be met by partner in charge shall not be less than 25%
19
Price adjustment is mandatory when the expected completion time exceeds 15 months.
ITB 19.2 The Employer’s address for the purpose of bid submission is [insert the address
for receiving the Bids provided in the Invitations to Bid]
ITB 20.1 The deadline for submission of Bids shall be [insert time and date; the date
should be the same and the time, in no event, earlier than that given in the
Invitation for Bids, or amended date pursuant to Sub-Clause 20.2].
ITB 23.1 The bid opening shall take place at: [insert precise address including room no.]
;Date: [insert date]; Time: [insert time]
ITB 30.1 Domestic contractors [insert “may” or “shall not,” as appropriate] receive a
margin of preference in Bid evaluation.
ITB 34.1 The Standard Form of Performance Security acceptable to the Employer shall be a
bank guarantee using the form provided in Section IX.
ITB 35.1 The Advance Payment shall be limited to [insert percent of the Contract Price] in
pursuant to Clause 50of the General Conditions of Contract.
ITB 37.1 Reference of Dispute to: “Adjudicator” if the Contract value is less than Rs100.00
Million and DRB if the Contract value is in excess of Rs.100.00 Million.
ITB 37.2 The Adjudicator proposed by the Employer is [insert name and address].
The hourly fee for this proposed Adjudicator shall be [insert amount in Nepalese
Rupees].
The biographical data of the proposed Adjudicator is as follows: [provide relevant
information, such as education, experience, age, nationality, and present
position; attach additional pages as necessary].
ITB 40.1 f) Additional acts as ground for black listing [insert if any].
Bid
Notes to Bidders
The Bidder shall fill in and submit this bid form with the bid. Additional details on the price should
be inserted if the bid is in various currencies. If the Bidder objects to the Adjudicator proposed
by the Employer in the Bidding documents, he should so state in his bid, and present an
alternative candidate, together with the candidate’s daily fees and biographical data, in
accordance with Clause 38 of the Instructions to Bidders.
Date:
We offer to execute the [name and identification number of Contract] in conformity with the
Bidding Documents for the Contract Price of [amount in numbers and words in Nepalese
Rupees].
Currency Percentage payable Rate of exchange: one Inputs for which foreign
in currency foreign equals one NRs currency is required
1. NRs. 1:1
2.
This bid and your written acceptance of it shall constitute a binding Contract between us. We
understand that you are not bound to accept the lowest or any bid you receive.
Commissions or gratuities, if any, paid or to be paid by us to agents relating to this bid, and to
contract execution if we are awarded the contract, are listed below:
Name and address of agents Amount and currency Purpose of commission or
gratuity
1.
2.
[if none, state “none”]
We hereby confirm that this bid complies with the bid validity and Bid Security required by the
Bidding documents and specified in the Bidding Data and/or Invitation for Bids.
Authorized Signature:
Name and Title of Signatory:
Name of Bidder:
Address:
20
This is applicable only when the Employer has proposed an Adjudicator.
Qualification Information
Notes to Bidders
The information to be filled in by Bidders in the following pages will be used for purposes of
post-qualification or for verification of pre-qualification as provided for in Clause 4 of the
Instructions to Bidders. This information will not be incorporated in the Contract. Attach
additional pages as necessary. Pertinent sections of attached documents if in languages
other than English or Nepali should be translated into English. If used for pre-qualification
verification, the Bidder should fill in updated information only.
All Bidders shall submit following documents as pre- requisites for eligibility:
1.2 Total annual volume of construction work performed in last Ten years, in Nepalese Rupees.
1.3 Work performed as prime Contractor or member of a joint venture on works of a similar
nature and volume over the last ten years. The values should be indicated in the same
currency used for Item 1.2 above. Also list details of work under way or committed,
including expected completion date.
2.
1.4 Major items of Contractor’s Equipment proposed for carrying out the Works. The equipment
shown in the table shall be required at the minimum. List all information requested below.
Refer also to Sub-Clause 4.3(d) of the Instructions to Bidders. If the equipment are to be
leased/hired, submit papers making specific arrangement for leasing/hiring.
2.
1.5 Qualifications and experience of key personnel proposed for site management,
administration and execution of the Contract. Attach bio-data and detailed curriculum vitae.
Refer also to Sub-Clause 4.3(e) and 4.5(e) of the Instructions to Bidders and Sub-Clause
9.1 of the General Conditions of Contract.
2.
1.6 Proposed subcontracts and firms involved. Refer to Clause 7 of General Conditions of
Contract.
2.
1.7 Financial reports for the last Ten years: balance sheets, Income statements, cash flow
statements, auditors’ reports, etc. List them below and attach copies.
1. Total assets
2. Current
assets
3. Total liabilities
4. Current
liabilities
5. Profit before
taxes
6. Profit after
taxes
1.8 Evidence of access to financial resources to meet the qualification requirements: cash in
hand, lines of credit, etc. List below and attach copies of support documents.
4.
1.9 Name, address, telephone and facsimile numbers of banks that may provide references if
contacted by the Employer.
2.
1.11 Statement of compliance with the requirements of Sub-Clause 3.1 and 3.2 of the Instructions
to Bidders.
1.12 Proposed Program (work method and schedule). Descriptions, drawings, and charts, as
necessary, to comply with the requirements of the Bidding documents. [Employer will
provide format details and content required]
2. Joint Ventures
2.1 The information listed in 1.1 - 1.11 above shall be provided for each partner of the joint
venture.
2.2 The information in 1.12 above shall be provided for the joint venture.
2.3 Attach the power of attorney of the signatory (ies) of the bid authorising signature of the bid
on behalf of the joint venture.
2.4 Attach the Agreement among all partners of the joint venture (and which is legally binding on
all partners), which shows that
(a) all partners shall be jointly and severally liable for the execution of the Contract in
accordance with the Contract terms;
(b) one of the partners will be nominated as being in charge, authorized to incur liabilities,
and receive instructions for and on behalf of any and all partners of the joint venture;
and
(c) the execution of the entire Contract, including payment, shall be done exclusively with
the partner in charge.
3. Additional Requirements
3.1 Bidders should provide any additional information required in the Bidding Data or to fulfil the
requirements of Sub-Clause 4.1 and Clause 30 of the Instructions to Bidders, if applicable.
Date:
This is to notify you in accordance with the Instruction to Bidders that it is our intention to award
the contract [name of the Contract and identification number, as given in the Contract Data and/or
SCC] to you as your Bid price of the equivalent,21 of [amount in numbers and words in Nepalese
Rupees], as corrected and modified 22in accordance with the Instructions to Bidders, is determined
to be substantially responsive and lowest evaluated Bid price.
Authorized Signature:__________________________________________________
Name of Agency:______________________________________________________
21
Delete “of the equivalent” if the Contract Price is expressed wholly in one currency.
22
Delete “corrected and” or “and modified” if not applicable. See Note on Agreement, next page.
Letter of Acceptance
[This letter should be in the letterhead paper of the Employer]
Date:
This is to notify you that your bid dated [date] for execution of the [name of the Contract and
identification number, as given in the Contract Data and/or SCC ] for the Contract Price of the
equivalent,23 of [amount in numbers and words in Nepalese Rupees], as corrected and modified
24
in accordance with the Instructions to Bidders is hereby accepted by our Agency.
(b) We do not accept that [name proposed by Bidder] be appointed as adjudicator, and by
sending a copy of this letter of acceptance to [insert the name of the Appointing
Authority], we are hereby requesting [name], the Appointing Authority, to appoint the
Adjudicator in accordance with Clause 38.1 of the Instructions to Bidders.26
You are hereby instructed to proceed with the execution of the said Works in accordance with the
Contract documents.
Authorized Signature:
Name and Title of Signatory:
Name of Agency:
Attachment: Agreement
23
Delete “of the equivalent” if the Contract Price is expressed wholly in one currency.
24
Delete “corrected and” or “and modified” if not applicable. See Note on Agreement, next page.
25
To be used only if the Contractor disagrees in the bid with the Adjudicator proposed by the Employer in the Instructions
to Bidders, and has accordingly offered another candidate. If the Employer does not accept the counterproposal, the
sentence should so state, and be followed by an additional sentence: “We therefore shall request the [name of
Appointing Authority as named in the Contract Data] to appoint the Adjudicator in accordance with Clause 36 of the
Instructions to Bidders.”
26
To be used only if the Contractor disagrees in the bid with the Adjudicator proposed by the Employer in the Instructions
to Bidders, and has accordingly offered another candidate. If the Employer does not accept the counterproposal, the
sentence should so state, and be followed by an additional sentence: “We therefore shall request the [name of
Appointing Authority as named in the Contract Data] to appoint the Adjudicator in accordance with Clause 36 of the
Instructions to Bidders.”
Agreement
Notes on Agreement
The Agreement should incorporate any corrections or modifications to the bid resulting from
corrections of errors (Instructions to Bidders, Clause 27), price adjustment during the evaluation
process (Instructions to Bidders Sub-Clause 15.3 or Clause 46 of the COC), selection of an
alternative offer (Invitation for Bids Sub-Clause 17.2), acceptable deviations (Invitation for Bids
Clause 26), or any other mutually-agreeable changes allowed for in the Conditions of Contract,
such as changes in key personnel, subcontractors, scheduling, and the like.
This Agreement, made the [day] day of [month], [year] between [name and address of
Employer] (hereinafter called “the Employer”) and [name and address of Contractor]
(hereinafter called “the Contractor”).
Whereas the Employer is desirous that the Contractor execute [name and identification number
of Contract] (hereinafter called “the Works”) and the Employer has accepted the bid for
_________________ [insert the amount in Nepalese Rupees in numbers and words] by the
Contractor for the execution and completion of such Works and the remedying of any defects
therein.
The form of General Conditions of Contract that follows has been developed on the basis of
considerable international experience in the drafting and management of contracts, bearing in
mind a trend in the construction industry towards simpler, more straightforward language.
The form can be used directly for medium admeasurement contracts and, with the modifications
noted in the footnotes, it can be adapted for lump sum contracts.
The use of standard Conditions of Contract for building and civil works will promote
comprehensiveness of coverage, general acceptability of its provisions, savings in cost and time
in bid preparation and review, and the development of a solid background of legal case histories.
The Defects Liability Period is the period named in the SCC and
calculated from the Completion Date.
The Employer is the party who employs the Contractor to carry out
the Works.
Plant is any integral part of the Works that shall have a mechanical,
electrical, chemical, or biological function.
The Project Manager is the person named in the SCC (or any other
competent person appointed by the Employer and notified to the
Contractor, to act in replacement of the Project Manager) who is
responsible for supervising the execution of the Works and
administering the Contract.
The Start Date is given in the SCC. It is the latest date when the
Contractor shall commence execution of the Works. It does not
necessarily coincide with any of the Site Possession Dates.
(1) Agreement,
(2) Letter of Acceptance,
(3) Contractor’s bid,
(4) Special Conditions of Contract,
(5) General Conditions of Contract,
(6) Specifications,
(7) Drawings,
(8) Bill of Quantities, and
(9) any other document listed in the SCC as forming part of the
Contract
3. Language and 3.1 The language of the Contract and the law governing the Contract
Law are stated in the SCC.
4. Project 4.1 Except where otherwise specifically stated, the Project Manager will
Manager’s decide contractual matters between the Employer and the
Decisions Contractor in the role representing the Employer fairly and
impartially.
5. Delegation 5.1 The Project Manager may delegate any of his duties and
responsibilities to other people, except to the Adjudicator, after
notifying the Contractor, and may cancel any delegation after
notifying the Contractor.
6.2 If a notice given pursuant to Sub Clause 6.1 fails to be delivered due
to failure to trace the address of the party then the notice shall be
published as public notice in a National daily newspaper and when
the notice is so published then the notice shall be considered to be
delivered to the concerned party.
7. Subcontracting 7.1 The Contractor may subcontract with the approval of the Project
Manager, but may not assign the Contract without the approval of
the Employer in writing. Subcontracting shall not alter the
Contractor’s obligations.
8. Other 8.1 The Contractor shall cooperate and share the Site with other
Contractors contractors, public authorities, utilities and the Employer between
the dates given in the Schedule of Other Contractors, as referred to
in the SCC. The Contractor shall also provide facilities and services
for them as described in the Schedule. The Employer may modify
the schedule of other Contractors and shall notify the Contractor of
any such modification.
9. Personnel 9.1 The Contractor shall employ either the key personnel named in the
Schedule of Key Personnel, as referred to in the SCC, to carry out
the functions stated in the Schedule or other personnel approved by
the Project Manager. The Employer on the Project Manager’s
recommendation will approve any proposed replacement of key
personnel only if their qualifications and abilities are substantially
9.2 If the Project Manager asks the Contractor to remove a person who
is a member of the Contractor’s staff or work force, stating the
reasons, the Contractor shall ensure that the person leaves the Site
within 7 days and has no further connection with the work in the
Contract.
9.3 A child who has not attained the age of fourteen years shall not be
employed in any work as a labourer.
9.4 During continuance of the Contract, the Contractor and his sub-
contractors shall abide at all times by all labour laws, including child
labour related enactments, and rules made there under.
10. Employer’s and 10.1 The Employer carries the risks which this Contract states are
Contractor’s Employer’s risks, and the Contractor carries the risks which this
Risks Contract states are Contractor’s risks.
11. Employer’s Risks 11.1 From the Start Date until the Defects Liability Certificate has been
issued, the following are Employer’s risks:
(a) The risk of personal injury, death, or loss of or damage to
property (excluding the Works, Plant, Materials, and
Equipment) which are due to
i. use or occupation of the Site by the Employer or for
the purpose of the Works, which is the unavoidable
result of the Works; or
ii. negligence, breach of statutory duty or interference
with any legal right by the Employer or by any person
employed by or contracted to him except the
Contractor.
(b) The risk of damage to the Works, Plant, Materials, and
Equipment to the extent that it is due to a fault of the
Employer or in the Employer’s design, or due to war or
radioactive contamination directly affecting the country
where the Works are to be executed.
11.2 From the Completion Date until the Defects Liability Certificate has
been issued, the risk of loss of or damage to the Works, Plant and
Materials is an Employer’s risk except loss or damage due to
a. a Defect which existed on the Completion Date;
b. an event occurring before the Completion Date, which was
not itself an Employer’s risk; or
c. the activities of the Contractor on the Site after the
Completion Date.
12. Contractor’s 12.1 From the Starting Date until the Defects Liability Certificate has been
Risks issued, the risks of personal injury, death and loss of or damage to
property (including, without limitation, the Works, Plant, Materials
and Equipment) which are not Employer’s risks are Contractor’s
risks.
13. Insurance 13.1 The Contractor shall provide, in the joint names of the Employer and
the Contractor, insurance cover from the Start Date to the end of the
Defects Liability Period, in the amounts and deductibles stated in the
SCC for the following events which are due to the Contractor’s
risks:
13.3 If the Contractor does not provide any of the policies and certificates
required, the Employer may effect the insurance which the
Contractor should have provided and recover the premiums the
Employer has paid from payments otherwise due to the Contractor
or, if no payment is due, the payment of the premiums shall be a
debt due.
13.5 Both parties shall comply with any conditions of the insurance
policies.
14. Site Investigation 14.1 The Contractor, in preparing the bid, may refer to any Site
Reports Investigation Reports stated in the SCC. In accordance with the
Instructions to Bidders, Bidders must make their own arrangements
to verify the availability and suitability of construction materials when
preparing their Bids.
15. Queries about 15.1 The Project Manager will clarify queries on the SCC.
the SCC
16. Contractor to 16.1 The Contractor shall construct and install the Works in accordance
Construct the with the Specifications and Drawings.
Works
17. The Works to Be 17.1 The Contractor may commence execution of the Works on the Start
Completed by Date and shall carry out the Works in accordance with the Program
the Intended submitted by the Contractor, as updated with the approval of the
Completion Date Project Manager, and complete them by the Intended Completion
Date.
18. Approval by the 18.1 The Contractor shall submit Specifications and Drawings showing
Project Manager the proposed Temporary Works to the Project Manager, who is to
approve them if they comply with the Specifications and Drawings.
18.3 The Project Manager’s approval shall not alter the Contractor’s
responsibility for design of the Temporary Works.
18.4 The Contractor shall obtain approval of third parties to the design of
the Temporary Works, where required.
18.5 All Drawings prepared by the Contractor for the execution of the
temporary or permanent Works, are subject to prior approval by the
Project Manager before this use.
19. Safety 19.1 The Contractor shall be responsible for the safety of all activities on
the Site.
21. Possession of 21.1 The Employer shall give possession of all parts of the Site to the
the Site Contractor. If possession of a part is not given by the date stated in
the SCC, the Employer will be deemed to have delayed the start of
the relevant activities, and this will be a Compensation Event.
22. Access to the 22.1 The Contractor shall allow the Project Manager and any person
Site authorised by the Project Manager access to the Site and to any
place where work in connection with the Contract is being carried
out or is intended to be carried out.
23. Instructions 23.1 The Contractor shall carry out all instructions of the Project Manager
which comply with the laws of Nepal.
23.2 The Contractor shall permit the Donor Agency to inspect the
Contractor’s accounts and records relating to the performance of the
Contractor and to have them audited by the auditors appointed by
the Donor Agency, if so required by the Donor Agency.
24. Appointment of 24.1 The Adjudicator shall be appointed jointly by the Employer and the
the Contractor, at the time of the Employer’s issuance of the Letter of
Adjudicator/DRB Acceptance or within 30 days of the Start date of the contract. If, in
members the Letter of Acceptance, the Employer does not agree on the
appointment of the Adjudicator or the parties cannot reach an
agreement on the appointment of the Adjudicator, the Employer will
request the Appointing Authority designated in the SCC, to appoint
the Adjudicator within 15 days of receipt of such request.
24.2 Should the Adjudicator resign or die, or should the Employer and
the Contractor agree that the Adjudicator is not functioning in
accordance with the provisions of the Contract; a new Adjudicator
shall be jointly appointed by the Employer and the Contractor. In
case of disagreement between the Employer and the Contractor,
within 30 days, the Adjudicator shall be designated by the
Appointing Authority at the request of either party, within 15 days of
receipt of such request
24.3 The DRB if specified in Bidding Data/ SCC shall be formed within 30
days of the Start date of the contract. The Dispute Resolution Board
(DRB) shall comprise of three members. Each Party shall appoint
one member each and the third party who shall act as the Chairman
shall be appointed by the two members appointed by the Parties.
25. Procedures for 25.1 If any dispute shall arise due to the decision taken by the Project
Disputes Manager, which the Contractor believes was either outside the
authority given to the Project Manager by the Contract or that the
decision was wrongly taken, then the parties shall attempt to settle
such dispute amicably within 15 days of the notification of the
Project Manager’s decision. However if the dispute is not settled
amicably or no attempt is made to settle the dispute amicably then
the decision shall be referred to the Adjudicator or DRB as specified
in Bidding Data/ SCC within 30 days of the notification of the Project
Manager’s decision.
25.3 The Adjudicator or the DRB Members shall be paid by the hour at the
rate specified in the SCC, together with reimbursable expenses of the
types specified in the SCC, and the cost shall be divided equally
between the Employer and the Contractor, whatever decision is
reached by the Adjudicator or DRB. Either party may refer a decision
of the Adjudicator or DRB to an Arbitrator within 30 days of the
Adjudicator’s or DRB’s written decision. If neither party, refers the
dispute to arbitration within the above 30 days, the Adjudicator’s or
the DRB’s decision will be final and binding.
B. Time Control
26. Program 26.1 Within the time stated in the SCC, the Contractor shall submit to the
Project Manager for approval a Program showing the general
methods, arrangements, order, and timing for all the activities in the
Works.
26.3 The Contractor shall submit to the Project Manager for approval an
updated Program at intervals no longer than the period stated in the
SCC. If the Contractor does not submit an updated Program within
this period, the Project Manager may withhold the amount stated in
the SCC from the next payment certificate and continue to withhold
this amount until the next payment after the date on which the
overdue Program has been submitted.
26.4 The Project Manager’s approval of the Program shall not alter the
Contractor’s obligations. The Contractor may revise the Program
and submit it to the Project Manager again at any time. A revised
Program shall show the effect of Variations and Compensation
Events.
27
For smaller contracts, this is usually an institution from the Employer’s country. For larger contracts, and contracts
that are likely to be awarded to international contractors, it is recommended that the arbitration procedure of an
international institution such as UNCITRAL (the United Nations Commission on International Trade Law), ICSID (the
International Centre for Settlement of Investment Disputes) or the ICC (International Chamber of Commerce) be
prescribed.
27. Extension of 27.1 The Project Manager shall extend the Intended Completion Date if a
the Intended Compensation Event occurs or a Variation is issued which makes it
Completion impossible for Completion to be achieved by the Intended
Date Completion Date without the Contractor taking steps to accelerate
the remaining work, which would cause the Contractor to incur
additional cost.
27.3 The Project Manager shall decide whether and by how much to
extend the Intended Completion Date within 21 days of the
Contractor asking the Project Manager for a decision upon the effect
of a Compensation Event or Variation and submitting full supporting
information. If the Contractor has failed to give early warning of a
delay or has failed to cooperate in dealing with a delay, the delay by
this failure shall not be considered in assessing the new Intended
Completion Date.
28. Acceleration 28.1 When the Employer wants the Contractor to finish before the
Intended Completion Date, the Project Manager will obtain priced
proposals for achieving the necessary acceleration from the
Contractor. If the Employer accepts these proposals, the Intended
Completion Date will be adjusted accordingly and confirmed by both
the Employer and the Contractor.
29. Delays Ordered 29.1 The Project Manager may instruct the Contractor to delay the start or
by the Project progress of any activity within the Works.
Manager
30. Management 30.1 Either the Project Manager or the Contractor may require the other to
Meetings attend a management meeting. The business of a management
meeting shall be to review the plans for remaining work and to deal
with matters raised in accordance with the early warning procedure.
31. Early Warning 31.1 The Contractor shall warn the Project Manager at the earliest
opportunity of specific likely future events or circumstances that may
adversely affect the quality of the work, increase the Contract Price
or delay the execution of the Works. The Project Manager may
require the Contractor to provide an estimate of the expected effect
of the future event or circumstance on the Contract Price and
Completion Date. The estimate shall be provided by the Contractor
as soon as reasonably possible.
31.2 The Contractor shall cooperate with the Project Manager in making
and considering proposals for how the effect of such an event or
circumstance can be avoided or reduced by anyone involved in the
C. Quality Control
32. Identifying 32.1 The Project Manager shall check the Contractor’s work and notify the
Defects Contractor of any Defects that are found. Such checking shall not
affect the Contractor’s responsibilities. The Project Manager may
instruct the Contractor to search for a Defect and to uncover and test
any work that the Project Manager considers may have a Defect.
33. Tests 33.1 If the Project Manager instructs the Contractor to carry out a test not
specified in the Specification to check whether any work has a Defect
and the test shows that it does, the Contractor shall pay for the test
and any samples. If there is no Defect, the test shall be a
Compensation Event.
34. Correction of 34.1 The Project Manager shall give notice to the Contractor of any Defects
Defects before the end of the Defects Liability Period, which begins at
Completion, and is defined in the SCC. The Defects Liability Period
shall be extended for as long as Defects remain to be corrected.
34.2 Every time notice of a Defect is given, the Contractor shall correct the
notified Defect within the length of time specified by the Project
Manager’s notice.
35. Uncorrected 35.1 If the Contractor has not corrected a Defect within the time specified in
Defects after the Project Manager’s notice, the Project Manager will assess the cost
Completion of having the Defect corrected, and the Contractor will pay this
Date amount.
D. Cost Control
36. Bill of 36.1 The Bill of Quantities shall contain items for the construction,
Quantities installation, testing and commissioning work to be done by the
Contractor.
36.2 The Bill of Quantities is used to calculate the Contract Price. The
Contractor is paid for the quantity of the work done at the rate in the
Bill of Quantities for each item.
37. Changes in 37.1 If the final quantity of the work done differs from the quantity in the Bill
the Quantities of Quantities for the particular item by more than 25 percent, provided
the change exceeds 1 percent of the Initial Contract Price, the Project
Manager shall adjust the rate to allow for the change.
37.2 The Project Manager shall not adjust rates from changes in quantities
if thereby the Initial Contract Price is exceeded by more than 10
percent, except with the prior approval of the Employer.
37.3 If requested by the Project Manager, the Contractor shall provide the
Project Manager with a detailed cost breakdown of any rate in the Bill
of Quantities.
38. Variations 38.1 All Variations shall be included in updated Programs produced by the
Contractor.
39. Payments for 39.1 The Contractor shall provide the Project Manager with a quotation for
Variations carrying out the Variation when requested to do so by the Project
Manager. The Project Manager shall assess the quotation, which
shall be given within seven days of the request or within any longer
period stated by the Project Manager and before the Variation is
ordered by him.
39.2 If the work in the Variation corresponds with an item description in the
Bill of Quantities and if, in the opinion of the Project Manager, the
quantity of work above the limit stated in Sub-Clause 37.1 or the timing
of its execution do not cause the cost per unit of quantity to change,
the rate in the Bill of Quantities shall be used to calculate the value of
the Variation. If the cost per unit of quantity changes, or if the nature
or timing of the work in the Variation does not correspond with items in
the Bill of Quantities, the quotation by the Contractor shall be in the
form of new rates for the relevant items of work.
39.4 If the Project Manager decides that the urgency of varying the work
would prevent a quotation being given and considered without
delaying the work, no quotation shall be given and the Variation shall
be treated as a Compensation Event.
39..5 The Contractor shall not be entitled to additional payment for costs that
could have been avoided by giving early warning.
40. Cash Flow 40.1 When the Program is updated, the Contractor shall provide the Project
Forecasts Manager with an updated cash flow forecast. The cash flow forecast
shall include different currencies, as defined in the Contract, converted
as necessary using the Contract exchange rates.
41. Payment 41.1 The Contractor shall submit to the Project Manager monthly
Certificates statements of the estimated value of the work executed less the
cumulative amount certified previously.
41.2 The Project Manager shall check the Contractor’s monthly statement
(bill) and certify the amount to be paid to the Contractor.
41.4 The value of work executed shall comprise the value of the quantities
of the items in the Bill of Quantities completed.
41.5 The value of work executed shall include the valuation of Variations
and Compensation Events.
41.6 The Project Manager may exclude any item certified in a previous
certificate or reduce the proportion of any item previously certified in
any certificate in the light of later information.
42. Payments 42.1 Payments shall be adjusted for deductions for advance payments and
retention. The Employer shall pay the Contractor the amounts certified
by the Project Manager within 30 days of the date of each certificate.
If the Employer makes a late payment, the Contractor shall be paid
interest on the late payment in the next payment. Interest shall be
calculated from the date by which the payment should have been
made up to the date when the late payment is made at the prevailing
rate of interest for commercial borrowing for each of the currencies in
which payments are made.
42.3 Unless otherwise stated, all payments and deductions will be paid or
charged in the proportions of currencies comprising the Contract Price.
42.4 Items of the Works for which no rate or price has been entered in will
not be paid for by the Employer and shall be deemed covered by other
rates and prices in the Contract.
43.4 The Contractor shall not be entitled to compensation to the extent that
the Employer’s interests are adversely affected by the Contractor’s not
having given early warning or not having cooperated with the Project
Manager.
44. Tax 44.1 The Project Manager shall adjust the Contract Price if taxes, duties,
and other levies are changed between the date 30 days before the
submission of Bids for the Contract and the date of the last Certificate
of Completion. The adjustment shall be the change in the amount of
tax payable by the Contractor, provided such changes are not already
reflected in the Contract Price or are a result of Clause 46.
45. Currencies 45.1 Where payments are made in currencies other than Nepalese Rupees,
the exchange rates used for calculating the amounts to be paid shall
be the exchange rates stated in the Contractor’s bid.
46. Price 46.1 Prices shall be adjusted for fluctuations in the cost of inputs only if
Adjustment provided for in the SCC. If so provided, the amounts certified in each
payment certificate, after deducting for Advance Payment, shall be
adjusted by applying the respective price adjustment factor to the
payment amounts due in each currency. A separate formula of the
type indicated below applies to each Contract currency:
Pc = Ac + Bc Imc/Ioc
where:
Pc is the adjustment factor for the portion of the Contract Price payable
in a specific currency “c”.
Imc is the index prevailing at the end of the month being invoiced and
Ioc is the index prevailing 30 days before bid opening for inputs
payable; both in the specific currency “c”.
28
The sum of the two coefficients Ac and Bc should be 1 (one) in the formula for each currency. Normally, both
coefficients will be the same in the formulae for all currencies, since coefficient A, for the nonadjustable portion of
the payments, is a very approximate figure (usually 0.15) to take account of fixed cost elements or other
nonadjustable components. The sum of the adjustments for each currency are added to the Contract Price.
46.2 If the value of the index is changed after it has been used in a
calculation, the calculation shall be corrected and an adjustment made
in the next payment certificate. The index value shall be deemed to
take account of all changes in cost due to fluctuations in costs.
46.4 The Price Adjustment amount shall be limited to a maximum `of 25% of
the initial Contract Amount unless otherwise is specified in the SCC.
46.5 The Price Adjustment provision shall not be applicable if the contract is
not completed in time due to the delay caused by the contractor or the
contract is a Lump sum Contract or a Fixed Budget Contract.
47. Retention 47.1 The Employer shall retain29 from each payment due to the Contractor
the proportion stated in the SCC until Completion of the whole of the
Works.
47.2 One half of the retention shall be repaid by the Employer to the
contractor within 15 days upon expiry of Defects Liability Period and
the Project Manager has certified that all Defects notified by the
Project Manager to the Contractor before the end of this period have
been corrected.
47.3 The remainder of the retention shall be paid by the Employer to the
contractor within 15 days after submission of an evidence document
issued by the concerned Internal Revenue Office that the contractor
has submitted his Income Returns.
29
The retention amount specified by.PPR2007 is 5% of bill amount.
48. Liquidated 48.1 The Contractor shall pay liquidated damages to the Employer at the
Damages rate per day stated in the SCC for each day that the Completion Date is
later than the Intended Completion Date. The total amount of
liquidated damages shall not exceed the amount defined in the SCC.
The Employer may deduct liquidated damages from payments due to
the Contractor. Payment of liquidated damages shall not affect the
Contractor’s liabilities.
49. Bonus 49.1 The Contractor shall be paid a bonus31 calculated at the rate per
calendar day stated in the SCC for each day (less any days for which
the Contractor is paid for acceleration) that the Completion is earlier
than the Intended Completion Date. The total amount of Bonus shall
not exceed the amount stated in the SCC. The Project Manager shall
certify that the Works are complete, although they may not be due to
be complete.
50. Advance 50.1 The Employer shall make advance payment to the Contractor of the
Payment amounts stated in the SCC by the date stated in the SCC, against
provision by the Contractor of an Unconditional Bank Guarantee in a
form and by a bank acceptable to the Employer in amounts and
currencies equal to the advance payment. The Guarantee shall remain
effective until the advance payment has been repaid, but the amount of
the Guarantee shall be progressively reduced by the amounts repaid by
the Contractor. Interest will not be charged on the advance payment.
50.2 The Contractor is to use the advance payment only to pay for
Equipment, Plant, Materials and mobilization expenses required
specifically for execution of the Contract. The Contractor shall
demonstrate that advance payment has been used in this way by
supplying copies of invoices or other documents to the Project
Manager.
51. Securities 51.1 The Performance Security shall be provided to the Employer no later
than the date specified in the Letter of Acceptance and shall be issued
in an amount, specified in the SCC, and form and by a bank
acceptable to the Employer, and denominated in the types and
proportions of the currencies in which the Contract Price is payable.
The Performance Security shall be valid until a date 30 days from the
date of issue of the Defects Liability Certificate in the case of a bank
guarantee.
30
Liquidated damages specified by PPR 2007 is 0.05 percent per day, and the total amount is not to exceed 10
percent of the Contract Price.
31
If early completion would provide benefits to the Employer, this clause should remain; otherwise delete. The bonus
specified by PPR2007 is numerically equal to the liquidated damages.
52. Dayworks 52.1 If applicable, the Dayworks rates in the Contractor’s bid shall be used
for small additional amounts of work only when the Project Manager
has given written instructions in advance for additional work to be paid
for in that way.
52.3 The Contractor shall be paid for Dayworks subject to obtaining signed
Dayworks forms.
52.4 The hiring charge for equipment other than those specified in the Bill of
Quantities shall be based on the standard method of calculation.
53. Cost of 54.1 Loss or damage to the Works or Materials to be incorporated in the
Repairs Works between the Start Date and the end of the Defects Liability
Period shall be remedied by the Contractor at the Contractor’s cost if
the loss or damage arises from the Contractor’s acts or omissions.
55. Taking Over 55.1 The Employer shall take over the Site and the Works within seven
days of the Project Manager’s issuing a Certificate of Completion.
56. Final Account 56.1 The Contractor shall supply the Project Manager with a detailed
account of the total amount that the Contractor considers payable
under the Contract before the end of the Defects Liability Period. The
Project Manager shall issue a Defects Liability Certificate and certify
any final payment that is due to the Contractor within 60 days of
receiving the Contractor’s account if it is correct and complete. If it is
not, the Project Manager shall issue within 60 days a schedule that
states the scope of the corrections or additions that are necessary. If
the Final Account is still unsatisfactory after it has been resubmitted,
the Project Manager shall decide on the amount payable to the
Contractor and issue a payment certificate.
57. Operating and 57.1 If “as built” Drawings and/or operating and maintenance manuals are
Maintenance required, the Contractor shall supply them by the dates stated in the
Manuals stated in the SCC.
57.2 If the Contractor does not supply the Drawings and/or manuals by the
dates stated in the stated in the SCC or the date instructed by the
Project Manager, or they do not receive the Project Manager’s
approval, the Project Manager shall withhold the amount stated in the
stated in the SCC from payments due to the Contractor.
58. Termination 58.1 The Employer or the Contractor may terminate the Contract if the other
party causes a fundamental breach of the Contract.
58.3 When either party to the Contract gives notice of a breach of Contract
to the Project Manager for a cause other than those listed under Sub-
Clause 58.2 above, the Project Manager shall decide whether the
breach is fundamental or not.
58.4 Notwithstanding the above, the Employer may terminate the Contract
for convenience.
59. Payment upon 59.1 If the Contract is terminated because of a fundamental breach of
Termination Contract by the Contractor, the Project Manager shall issue a
certificate for the value of the work done and Materials ordered less
advance payments received up to the date of the issue of the
certificate and less the percentage to apply to the value of the work not
completed, as indicated in the stated in the SCC. Additional Liquidated
Damages shall not apply. If the total amount due to the Employer
exceeds any payment due to the Contractor, the difference shall be a
debt payable to the Employer.
60. Property 61.1 All Materials on the Site, Plant, Equipment, Temporary Works and
Works shall be deemed to be the property of the Employer if the
Contract is terminated because of the Contractor’s default.
61. Release from 62.1 If the Contract is frustrated by the outbreak of war or by any other
Performance event entirely outside the control of either the Employer or the
Contractor, the Project Manager shall certify that the Contract has
been frustrated. The Contractor shall make the Site safe and stop
work as quickly as possible after receiving this certificate and shall be
paid for all work carried out before receiving it and for any work carried
out afterwards to which a commitment was made.
62. Suspension of 62.1 In the event that the Donor Agency suspends the loan/ credit/grant to
Donor Agency the Employer from which part of the payments to the Contractor are
Loan/Credit/ being made:
Grant a. the Employer is obligated to notify the Contractor of such
suspension within 7 days of having received the Donor
Agency's suspension notice; and
b. if the Contractor has not received sums due him within the 30
days for payment provided for in Sub-Clause 42.1, the
Contractor may immediately issue a 15-day termination notice.
F. Additional Clauses
63. Project 63.1 The Project Manager’s duty and authority are restricted to the extent as
Manager’s stated in the SCC.
Duties and
Authority
64. Quarries and 64.1 Any quarry operated as part of this Contract shall be maintained and
Spoil Dumps left in a stable condition without steep slopes and be either refilled or
drained and be landscaped by appropriate planting. Rock or gravel
taken from a river shall be removed over some distance so as to limit
the depth of material removed at any one location, not disrupt the river
flow or damage or undermine the river banks.
65. Safety, 65.1 The Contractor shall, throughout the execution and completion of the
Security and works and the remedying of any defects therein:
Protection of a. Have full regard for the safety of all persons entitled to be upon
the the site and keep the site (so as the same is under his control)
Environment and the works (so far as the same are not completed or
occupied by the Employer) in an orderly state appropriate to
the avoidance of danger to such persons.
b. Provide and maintain at his own cost all lights, guards, fencing,
warning signs and watching, when necessary or required by
the Project Manager or by any duly constituted authority, for
the protection pf the Works of for the safety and convenience of
the public or others.
d. Ensure that any cut or fill slopes are planted in grass or other
plant cover as soon as possible to protect them from erosion.
This planting shall follow the recommendations given in
manuals and handbooks such as “Vegetation structures for
stabilizing highway slopes – A manual for Nepal”, department
of Roads.
e. Any spoil or material removed from drains shall be disposed off
to designated stable tipping areas as directed by the Project
Manager.
f. Shall not use fuel wood as a means of heating during the
processing or preparation of any materials forming part of the
works.
g. The Project Manager shall have the power to disallow any
working practice or activity of the Contractor or direct that such
practices or activities be modified should the Project Manager
consider, on the advice of the relevant Government
Departments, that the practices or activities will be harmful to
wildlife.
66. Local Taxation 66.1 The prices tendered by the Contractor shall include all taxes that may
be levied in accordance to the laws and regulations in being in Nepal
on the date 30 days prior to the closing date for submissions of Bids on
the Contractor’s equipment, plant and materials acquired for the
purpose of the Contract and on the services performed under the
Contract. Nothing in the Contract shall relieve the Contractor from his
responsibility to pay any tax that may be levied in Nepal on profits
made by him in respect of the Contract.
67. Value Added 67.1 The Contract is not exempted from value added tax. An amount
Tax specified in the schedule of taxes shall be paid by the Contractor in the
concerned VAT office within time frame specified in VAT regulation.
68. Income Taxes 68.1 The Contractor’s staff, personnel and labour will be liable to pay
on Staff personal income taxes in Nepal in respect of their salaries and wages,
as are chargeable under the laws and regulations for the time being in
force, and the Contractor shall perform such duties in regard to such
deductions as may be imposed on him by such laws and regulations.
68.2 The issue of the Final Account Certificate pursuant to clause 56 shall
be made only upon submittal by the Contractor of a certificate of
income tax clearance from the Government of Nepal.
69. Duties, Taxes 69.1 Any element of royalty, duty or tax in the price of any goods including
and Royalties fuel oil, lubricating oil, cement, timber, iron and iron goods locally
procured by the Contractor for the works shall be included in the
Contract rates and prices and no reimbursement or payment in that
respect shall be made to the Contractor.
69.2 The Contractor shall familiarise himself with the rules and regulations
of Nepal with regard to customs, duties, taxes, clearing of goods and
equipment, immigration and the like, and it will be necessary for him to
follow the required procedures regardless of the assistance as may be
provided by the Employer wherever possible.
69.3 The Contractor shall pay and shall not be entitled to the reimbursement
of cost of extracting construction materials such as sand,
stone/boulder, gravel, etc. from the river beds or quarries. Such prices
will be levied by the local District Development Committee (DDC) as
may be in force at the time. The Contractor, sub-contractor(s)
employed directly by him and for whom he is responsible, will not be
exempted from payment of royalties, taxes or other kinds of
surcharges on these construction materials so extracted and paid for
to the DDC.
70. Member of 70.1 No member or officer of GoN or the Employer or the Project Manager
Government, or any of their respective employees shall be in any way personally
etc, not bound or liable for the act or obligations of the Employer under the
Personally Contract or answerable for any default or omission in the observance
Liable or performance of any of act, matter or thing which are herein
contained.
71. Approval of 71.1 No explosives of any kind shall be used by the Contractor without the
Use of prior consent of the Employer in writing and the Contractor shall
Explosives provide, store and handle these and all other items of every kind
whatsoever required for blasting operations, all at his own expense in
a manner approved in writing by the Employer.
72. Compliance 72.1 The Contractor shall comply with all relevant ordinances, instructions
with and regulations which the Government, or other person or persons
Regulations having due authority, may issue from time to time regarding the
for Explosives handling, transportation, storage and use of explosives.
73. Permission for 73.1 The Contractor shall at all times maintain full liaison with and inform
Blasting well in advance, and obtain such permission as is required from all
74. Records of 74.1 Before the beginning of the Defects Liability Period, the Contractor
Explosives shall account to the satisfaction of the Project Manager for all
explosives brought on to the Site during the execution of the Contract
and the Contractor shall remove all unused explosives from the Site on
completion of works when ordered by the Project Manager.
75. Traffic 75.1 The Contractor shall include the necessary safety procedures
Diversion regarding motorised and pedestrian traffic diversion that is needed in
execution of the works. The Contractor shall include in his costing of
works, any temporary works or diversion that are needed during the
construction period.
All traffic diversion should be designed for the safety of both the
motoring public and the men at work. It shall ensure the uninterrupted
flow of traffic and minimum inconvenience to the public during the
period concerned. As such, adequate warning signs, flagmen and
other relevant safety precautionary measures shall be provided to
warn motorists and pedestrians well ahead of the intended diversion
as directed by the Project Manager.
76.Conduct of
76.1 The Bidder shall be responsible to fulfill his obligations as per the
Bidders
requirement of the Contract Agreement, Bidding documents, GoN’s
Procurement Act and Regulations.
76.2 The Bidder shall not carry out or cause to carryout the following acts
with an intention to influence the implementation of the procurement
process or the procurement agreement :
a) give or propose improper inducement directly or indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent practice
d) interference in participation of other prospective bidders.
77. Blacklisting 77.1Without prejudice to any other right of the Employer under this contract
Bidder ,the GoN, Public Procurement Monitoring Office may blacklist a bidder
for his conduct up to three years on the following grounds and
seriousness of the act committed by the bidder:
Notes on SCC
Except where otherwise indicated, SCC should be filled in by the Employer prior to issuance of
the Bidding documents. Schedules and reports to be provided by the Employer should be
annexed.
1.1 The Site is located at [location] and is defined in Drawing No: [insert numbers]
The “Donor Agency” means [insert name of the Donor Agency as appropriate], and
“loan/credit/grant” refers to an [insert loan, credit or grant number as appropriate]32.
The name and identification number of the Contract is [insert name and number as
indicated in the Invitation for Bids (or Prequalification, if any)].
32
The above insertions should correspond to the information provided in the Invitation for Bids.
21.1 The Site Possession Date shall be [insert location(s) and date(s)]33.
24.1 Appointing Authority for the Adjudicator: [insert NEPCA or other appropriate
Authority]34.
25.3 Fees and types of reimbursable expenses to be paid to the Adjudicator or the DRB
members : [list details]
25.4 The Institution whose Arbitration procedures shall be used:[insert Nepal Council of
Arbitration (NEPCA) or other appropriate institution for ICB contract]
The place for Arbitration shall be : [insert place]
26.1 The Contractor shall submit a revised Program for the Works within [insert number in
days] from the date of the Letter of Acceptance.
46.1 The Contract [specify “is” or “is not”] subject to price adjustment36 in accordance with
Clause 46.1 of the General Conditions of Contract, and the following information
regarding coefficients [specify “does” or “does not”] apply.
33
If the Site is made available by section, the different dates should be listed here.
34
The Appointing Authority should preferably be an independent professional institution or an official of such an
institution.
35
The Defects Liability Period is usually limited to 12 months, but could be less in very simple cases.
36
Specify “yes” for time of completion exceeding 15 months. and “no” for time of completion up to 15 months.
The Index I for the specified international currency38 will be [enter index].
The Index I for currencies other than the local currency39 and the specified
international currency will be [enter index].
iii.Brick
a) Chimney NRs………./ No
b) Machine Made NRs………./ No
vi.Bitumen NRs………./ MT
vii.others
The base prices of the construction materials shall be taken as of 30 days before the
deadline for submission of the Bid. For the purpose of calculation of price adjustment,
the Ex-factory price of the same source shall be taken into consideration.
46.4 The price adjustment amount shall be limited to:[enter percent] of the initial contract
amount.
48.1 The liquidated damages for the whole of the Works are [insert percentage}40 of the
final Contract Price ] per day41.
The maximum amount of liquidated damages for the whole of the Works is [insert
percent] 42 of the final Contract Price.
37
These proxy indices will be specified by the Employer.
38
These proxy indices will be proposed by the Contractor, subject to acceptance by the Employer.
39
These proxy indices will be proposed by the Contractor, subject to acceptance by the Employer.
40
In general 0.05% of Contract Price per day
41
If Sectional Completion and liquidated damages per section have been agreed, the latter should be specified here.
42
10%* of sum stated in the Agreement
49.1 The bonus for the whole of the Works is [ insert percentage]43 of the final Contract
Price per day1.
The maximum amount of Bonus for the whole of the Works is [enter percent]44 percent
of the final Contract Price.
50.1 The Advance Payment shall be maximum [insert percent] of the initial contract price
excluding the provisional sums, day works and VAT and shall be made in two
instalments. The First instalment of ten percent shall be made to the contractor upon
submission of acceptable Bank Guarantee for advance payment and the second
instalment of five percent shall be made after the contractor completes full mobilization
at site and has fulfilled contractual obligations such as submission of insurance
policies, work program and acceptable bank guarantee to the Employer.
51.1 The Performance Security shall be for the following minimum amounts equivalent as a
percentage of the Contract Price: [enter percentage] and an additional amount of
8% of the Contract price if the Employer has increased the Performance Security
amount pursuant to ITB Sub Clause 29.4
The standard form(s) of Performance Security acceptable to the Employer shall be “an
Unconditional Bank Guarantee” acceptable to the Employer of the type presented in
Section IX of the Bidding Documents.
57.1 The date by which operating and maintenance manuals are required is [date].
57.2 The amount to be withheld for failing to produce “as built” drawings and/or operating
and maintenance manuals by the date required is [insert amount in local currency].
58.2(g) The maximum number of days is [insert number; consistent with clause 48.1 of
liquidated damages]
59.1 The percentage to apply to the value of the work not completed, representing the
Employer’s additional cost for completing the Works, is [insert percent].
43
In general 0.05% of Contract Price per day
44
10%* of sum stated in the Agreement
The Project Manager has to obtain the specific approval of the Employer for taking any of the
following actions:
a. Approving subcontracting of any part of the works under General Conditions of Contract
Clause 7;
b. Certifying additional costs determined under General Conditions of Contract Clause 43;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under General Conditions of
Contract Clause 27;
e. Issuing a Variation under General Conditions of Contract Clause 1 and 38, except in an
emergency situation, as reasonably determined by the Engineer; emergency situation may
be defined as the situation when protective measures must be taken for the safety of life or
of the works or of adjoining property.
f. Adjustment of rates under General Conditions of Contract Clause 37.
Samples of specifications from previous similar projects in the same country are useful in this
respect. The use of metric units is encouraged by the Donor Agency in case of Donor assisted
projects. Most specifications are normally written specially by the Employer or Project Manager
to suit the Contract Works in hand. There is no standard set of Specifications for universal
application in all sectors in all countries, but there are established principles and practices, which
are reflected in these documents.
There are considerable advantages in standardizing General Specifications for repetitive Works
in recognized public sectors, such as highways, ports, 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.
Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for goods, materials, and workmanship, recognized international
standards should be used as much as possible. Where other particular standards are used,
whether national standards of Nepal 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.
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
Project Manager’s 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 Project Manager at least 28 days prior to the date when the
Contractor desires the Project Manager’s consent. In the event the Project Manager determines
that such proposed deviations do not ensure substantially equal or higher quality, the Contractor
shall comply with the standards specified in the documents.
These Notes for Preparing Specifications are intended only as information for the Employer or
the person drafting the Bidding documents. They should not be included in the final documents.
Notes on Drawings
Insert here a list of Drawings. The actual Drawings, including site plans, should be attached to
this section or annexed in a separate folder.
(a) to provide sufficient information on the quantities of Works to be performed to enable Bids to
be prepared efficiently and accurately; and
(b) when a Contract has been entered into, to provide a priced Bill of Quantities for use in the
periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of Quantities in sufficient
detail to distinguish between the different classes of Works, or between Works of the same
nature carried out in different locations or in other circumstances which may give rise to different
considerations of cost. Consistent with these requirements, the layout and content of the Bill of
Quantities should be as simple and brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work, outside the
items included in the Bill of Quantities, is high. To facilitate checking by the Employer of the
realism of rates quoted by the Bidders, the Daywork Schedule should normally comprise the
following:
(a) A list of the various classes of labor, materials, and Constructional Plant for which basic
daywork rates or prices are to be inserted by the Bidder, together with a statement of the
conditions under which the Contractor will be paid for work executed on a daywork basis.
(b) Nominal quantities for each item of Daywork, to be priced by each Bidder at Daywork rates
as bid. The rate to be entered by the Bidder against each basic Daywork item should
include the Contractor’s profit, overheads, supervision, and other charges.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by including a
provisional sum in the Summary Bill of Quantities. Similarly, a contingency allowance for
possible price increases should be provided as a provisional sum in the Summary Bill of
Quantities. The inclusion of such provisional sums often facilitates budgetary approval by
avoiding the need to request periodic supplementary approvals as the future need arises. Where
such provisional sums or contingency allowances are used, the SCC should state the manner in
which they will be used, and under whose authority (usually the Project Manager’s).
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 General Conditions of Contract) should be indicated in
the relevant part of the Bill of Quantities as a particular provisional sum with an appropriate brief
description. A separate procurement procedure is normally carried out by the Employer to select
such specialized contractors. To provide an element of competition among the Bidders in
respect of any facilities, amenities, attendance, etc., to be provided by the successful Bidder as
prime Contractor for the use and convenience of the specialist contractors, each related
provisional sum should be followed by an item in the Bill of Quantities inviting the Bidder to quote
a sum for such amenities, facilities, attendance, etc.
45
In lump sum contracts, delete “Bill of Quantities” and replace with “Schedule of Activities” throughout this section.
The Unconditional (or “On-Demand”) Bank Guarantee has the merit of simplicity and of being
universally known and accepted by commercial banks.
46
Employers should state in the Bidding and SCC the acceptability of one or more of the alternatives and should
include in the Bidding documents Forms of Performance Bank Guarantee, Bid Security and Bank Guarantee for
Advance Payment.
Whereas, [name of Bidder] (hereinafter called “the Bidder”) has submitted his bid dated [date]
for the construction of [name of Contract] (hereinafter called “the bid”).
Know all people by these presents that We [name of Bank] of [name of country] having our
registered office at [address] (hereinafter called “the Bank”) are bound unto [name of Employer]
(hereinafter called “the Employer”) in the sum of [amount] for which payment well and truly to be
made to the said Employer, the Bank binds itself, its successors, and assigns by these
presents.
Sealed with the Common Seal of the said Bank this [day] day of [month], [year].
(1) If, after bid opening, the Bidder withdraws his bid during the period of bid validity specified
in the Form of Bid; or
(2) If the Bidder having been notified of the acceptance of his bid by the Employer during the
period of bid validity:
(a) fails or refuses to execute the Form of Agreement in accordance with the Instructions
to Bidders, if required; or
(b) fails or refuses to furnish the Performance Security, in accordance with the
Instruction to Bidders; or
(c) does not accept the correction of the Bid Price pursuant to Clause 27,
We undertake to pay to the Employer up to the above amount upon receipt of his first written
demand, without the Employer’s having to substantiate his demand, provided that in his
demand the Employer will note that the amount claimed by him is due to him owing to the
occurrence of one or any of the two conditions, specifying the occurred condition or conditions.
This Guarantee will remain in force up to and including the date [number] days after the
deadline for submission of Bids as such deadline is stated in the Instructions to Bidders or as it
may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived.
Any demand in respect of this Guarantee should reach the Bank not later than the above date.
Witness Seal
Whereas [name and address of Contractor] (hereinafter called “the Contractor”) has
undertaken, in pursuance of Contract No. [number] dated [date] to execute [name of Contract
and brief description of Works] (hereinafter called “the Contract”);
And whereas it has been stipulated by you in the said Contract that the Contractor shall furnish
you with a Bank Guarantee by a recognized bank for the sum specified therein as security for
compliance with his obligations in accordance with the Contract;
And whereas we have agreed to give the Contractor such a Bank Guarantee;
Now therefore we hereby affirm that we are the Guarantor and responsible to you, on behalf of
the Contractor, up to a total of [amount of Guarantee] [amount in words], such sum being
payable in the types and proportions of currencies in which the Contract Price is payable, and
we undertake to pay you, upon your first written demand 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 for the sum specified therein.
We hereby waive the necessity of your demanding the said debt from the Contractor before
presenting us with the demand.
We further agree that no change or addition to or other modification of the terms of the Contract
or of the Works to be performed there under or of any of the Contract documents which may be
made between you and the Contractor shall in any way release us from any liability under this
Guarantee, and we hereby waive notice of any such change, addition, or modification.
This Guarantee shall be valid until a date 30 days from the date of issue of the Certificate of
Completion.
Name of Bank
Address
Date
[name of Contract]
Madam/Gentlemen:
In accordance with the provisions of the General Conditions of Contract, Clause 50 (“Advance
Payment”) of the above-mentioned Contract, [name and address of Contractor] (hereinafter
called “the Contractor”) shall deposit with [name of Employer] a Bank Guarantee to guarantee
his proper and faithful performance under the said Clause of the Contract in an amount of
[amount of Guarantee] [amount in words]
We, the [Bank or Financial Institution], as instructed by the Contractor, agree unconditionally
and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to
[name of Employer] on his first demand without whatsoever right of objection on our part and
without his first claim to the Contractor, in the amount not exceeding [amount of Guarantee]
[amount in words].
We further agree that no change or addition to or other modification of the terms of the Contract
or of Works to be performed there under or of any of the Contract documents which may be
made between [name of Employer] and the Contractor, shall in any way release us from any
liability under this Guarantee, and we hereby waive notice of any such change, addition, or
modification.
The validity period of the guarantee shall be 30 days beyond the period scheduled for
repayment of the advance payment and the guarantee shall remain valid and in full effect from
the date of the advance payment under the Contract until the [name of Employer] receives full
repayment of the same amount from the Contractor.
Yours truly,