Ethiopian Roads Authority

Standard Bidding Document

and Users Guide for the
Procurement of
Micro Works

Federal Democratic Republic of Ethiopia

Ministry of Transport

PART A - Users Guide:

ERA Standard Bidding Documents for Micro Works

Ethiopian Roads Authority

Procurement of Micro Works

PART A - Users Guide

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Table of Contents
Acronyms and Definitions ..............................................................................................................4
Preface ..............................................................................................................................................5
Foreword ..........................................................................................................................................9
Acknowledgments..........................................................................................................................11
Introduction ...................................................................................................................................12
The Selection and use of Standard Bidding Documents for Road Works Projects ...................................12
Purpose of the Standard Bidding Document .............................................................................................16
Purpose of the Users Guide......................................................................................................................16
When to Use the SBD for Micro Works ...................................................................................................17

Summary of the Procurement Process........................................................................................17

Guidance Notes on the Standard Bidding Document for Micro Works ..................................19
Structure of the Document.........................................................................................................................19
Letter of Invitation for Bid (used under the shortlisting procedure)..........................................................19
Section A Information for Bidders ............................................................................................................19
Section B-Bid Submission Sheet...............................................................................................................20
Section CBill of Quantities or Activity Schedule, ...................................................................................22
Specifications, Drawings...........................................................................................................................22
Other Issues...............................................................................................................................................23

Guidance Notes on the Conditions of Contract ..........................................................................24

Guidance Notes on the Letter of Acceptance..............................................................................25
Structure of the Letter of Acceptance........................................................................................................25

Annex 1 Draft Letter of Invitation

Annex 2 Draft Invitation to Bid Notice
Annex 3Draft Letter of Acceptance
Annex 4Guidance on Qualification of Bidders
Annex 5Form of Conditional Bid Security
Annex 6.Standard Qualification Information Form
Annex 7.Form of Contract Agreement
Annex 8.Form of Conditional Performance Bond

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Acronyms and Definitions

AFCAP

African Community Access Programme

DFID

Department for International Development (UK)

ERA

Ethiopian Roads Authority

FIDIC

International Federation of Consulting Engineers

CC

Conditions of Contract

ICB

International Competitive Bidding

NCB

National Competitive Bidding

PE

Procuring Entity

PPA

Public Procurement and Property Administration

SBD

Standard Bidding Document

SCC

Special Conditions of Contract

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Preface
The Ethiopian Roads Authority is the custodian of the series of technical manuals, standard
specifications and bidding documents that are written for the practicing engineer in Ethiopia. The
series describe current and recommended practice and set out the national standards for roads and
bridges. They are based on national experience and international practice and are approved by the
Director General of the Ethiopian Roads Authority.
This Users Guide (Part A) and Standard Bidding Document (Part B) for the Procurement of Micro
Works 2011, is one volume of the Ethiopian Roads Authority series of Standard Bidding Documents
with associated Users Guides.
Companion documents and manuals include the Technical Manuals, Standard Technical
Specifications and Standard Detailed Drawings.
The complete series of documents, covering all roads and bridges in Ethiopia, are contained within
the series:
1. Geometric Design Manual 2011
2. Site Investigation Manual 2011
3. Geotechnical Design Manual for Slopes - 2011
4. Pavement Design Manual Volume I 2011 (Flexible and Unpaved Pavements)
5. Pavement Design Manual Volume II 2011 (Rigid Pavements)
6. Drainage Design Manual 2011
7. Bridge Design Manual 2011
8. Low Volume Roads Design Manual 2010
9. Standard Environmental Procedures Manual 2002
10. Standard Technical Specifications 2011
11. Standard Detailed Drawings 2011
12. Standard Bidding Documents for Works Contracts, and associated Users Guides A series of
Bidding Documents covering a full range from large scale projects unlimited in value to micro works
with an upper threshold of $300,000. The higher level documents have both Local Competitive
Bidding and International Competitive Bidding versions 2011
These documents are available to registered users through the ERA website: www.era.gov.et
Document Updates
Significant changes to criteria, procedures or any other relevant issues related to new policies or
revised laws of the land or that is mandated by the relevant Federal Government Ministry or Agency
should be incorporated into the Standard Bidding Document from their date of effectiveness.
Other minor changes that will not significantly affect the whole nature of the Standard Bidding
Document may be accumulated and made periodically. When changes are made and approved, new
page(s) incorporating the revision, together with the revision date, will be issued and inserted into the
relevant chapter.

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This version of the Standard Bidding Document is released in draft for a limited period during which
the industry at large is encouraged to put it into practice and to feed back to the ERA Director
General any suggestions for inclusion or improvement.
All suggestions to improve the draft Users Guide and Standard Bidding Document for the
Procurement of Micro Works should be made in accordance with the following procedures:
1. Users of the Guide and Standard Bidding Document must register on the ERA website:
www.era.gov.et
2. Proposed changes should be outlined on the Document Change Form and forwarded, in a hard
copy, with a covering letter explaining its need and purpose to the Director General of the
Ethiopian Roads Authority.
3. After completion of the draft review period, proposed modifications will be assessed by the
requisite authorities in ERA, in close consultation with the Peer Panels and the AFCAP project
team
4. Agreed changes will be approved by the Director General of the Ethiopian Roads Authority on
recommendation from the Deputy Director General (Engineering Operations).
5. All changes to the Draft Users Guide and Standard Bidding Document will be made prior to
release of the final version.
6. The release date will be notified to all registered users and authorities.

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ETHIOPIAN ROADS AUTHORITY

CHANGE CONTROL
USERS GUIDE AND STANDARD BIDDING DOCUMENT
This area to be completed by the ERA
Director of Quality Assurance

DOCUMENT CHANGE
Document Title:______________________
_________________________________

Section
Clause
Page

Explanation

CHANGE NO._____________
SECTION
_________________________

Suggested Modification

Submitted by: Name:____________________________________Designation:_______________________________

Company/Organisation Address ____________________________________________________________________
_______________________________________email:___________________________________Date:___________
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Document Change Action

Authority
Registration

Date

Signature Recommended Action

Approval

Director Quality Assurance

Directors Region
Deputy Director General
Engineering Operations
Approval / Provisional Approval / Rejection of Change:

Director General ERA:________________________________________________________

Date: _________________

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Foreword
Low volume roads in Ethiopia typically carry less than 300 vehicles per day and provide important
links from homes, villages and farms to markets and offer the public access to health, education and
other essential services. These roads also provide important links between Woreda Centres and the
Federal road network.
Many aspects of the design and construction of roads in Ethiopia, has stemmed from technology and
practices emanating from Europe and the USA some 40 years ago. These practices have to some
extent been modified in the intervening years, but the basic philosophy of road provision has
remained the same. While these standard approaches might still be appropriate for much of the
main trunk and link road network, they remain overly conservative, inappropriate and far too costly
for application on much of the countrys rural road network. In facing the challenges of improving
and expanding Ethiopias low volume rural road network, application of the traditional planning,
design, construction and maintenance approaches cannot provide the solution.
Many innovative practices and unconventional techniques, often developed and proved through years
of research, have not found the degree of application and implementation that they should.
Opportunities are missed that would provide better and lower cost engineering solutions and more
sustainable low volume roads.
There is a wealth of local and international information, experience and research that when utilised,
can change current practices and thinking and provide Ethiopia with an appropriate and affordable
low volume road network. To benefit fully from these advances and to see necessary improvements
implemented on the ground, ERA has developed its first comprehensive national road design manual,
technical specifications and bidding documents specifically for low volume roads. The task was
completed with the assistance of a team of international experts commissioned through DFIDs
Africa Community Access Programme (AFCAP).
Compilation of the documents was undertaken in close consultation with the local industry and
regional authorities. The Federal and Regional Roads Authorities, the contracting and consulting
industry, the universities, training schools, the road fund and other industry stakeholders all
participated in the formulation of the documentation. Local issues and experience on the geometric,
earthwork, drainage, pavement and surfacing design for low volume road were discussed and debated
at length. Of particular interest were aspects of better use of local materials; materials selection and
specification; testing and improvement of materials; construction methods and the utilisation of
approaches such as labour-based and intermediate equipment technology; route selection; works
specifications; and contracting of small works. Much of this debate and other resource materials
developed during the compilation of the manual and associated specifications and bidding documents
have been captured and are available from the ERA website: www.era.gov.et
Importantly, in supporting the preparation of the documents, a series of thematic peer review panels
were established that comprised local experts from the public and private sector who provided
guidance and review for the project team. Mainstreaming of social and cross-cutting aspects received
special attention and a peer panel of local experts developed a welcome addition to the design
process in terms of complementary interventions.

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On behalf of the Ethiopian Roads Authority I would like to take this opportunity to thank DFID,
Crown Agents and the AFCAP team for their cooperation, contribution and support in development
of the low volume roads manual and supporting documents for Ethiopia. I would also like to extend
my gratitude and appreciation to all of the industry stakeholders and participants who contributed
their time, knowledge and effort during the development of the documents. Special thanks are
extended to the members of the various Peer Panels whose active support and involvement guided
the lead authors and the process.
I trust that the low volume road manual and associated specifications and bidding documents will
provide the essential information needed to guide our design engineers in the provision of appropriate
and sustainable low volume roads.

Ato Zaid Gebriel

Director General of the Ethiopian Road Authority

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Acknowledgments

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Introduction
The Selection and use of Standard Bidding Documents for Road Works Projects
Background
There are considerable advantages to all parties in the consistent use of Standard Bidding Documents
(SBD) in the procurement of works.
The key issues in a procurement exercise are to ensure there is value for money for the employer
and/or the funding agency and that the employers requirements are fully met. This means that the
works have to be completed to the required standard, on time and ideally within budget. It is
generally accepted that this can best be achieved through competitive bidding. For a successful
outcome bidders must understand fully their obligations and responsibilities, and associated risks
when pricing their bid. SBDs create an environment of greater certainty for the bidder which should
be reflected in the bid price. Later the Conditions of Contract and other documents setting out the
employers requirements within the SBDs are the basis for the management and administration of
the implementation phase.
Generally contractors are employed following a competitive bidding procurement process. This can
be open tendering following advertisement. Potential tenderers (bidders) may be required to prequalify, or be subject to a process of post- qualification to ensure they have the resources and
capability to undertake the work. Alternatively potential bidders can be selected from a list where
they may already have undergone a process of pre-qualification and registration. These alternatives
and the general procedure to be adopted by the client organisation is generally set out in a Users
Guide associated with the SBD. There are also general procurement procedures set out in the
Proclamation mentioned below.
These Users Guides are aimed at staff of employer organisations planning a road sector project and
the design consultants they may employ, and are intended to describe a series of SBDs which are
appropriate for use for procurement of a wide range of road sector projects, including construction,
rehabilitation or maintenance of low volume roads, and this introduction in brief, discusses criteria
which may be applied for the selection of the best option.
Legal Requirements
Proclamation 649/2009 The Ethiopian Federal Government Procurement and Property
Administration Proclamation was issued in September 2009. Subsequently a Directive has also been
published. The proclamation and directive cover all public procurement funded by the Federal
Government. Although the regions have considerable autonomy in procurement matters it is
anticipated that the SBDs recommended below are appropriate for use by the regional procurement
agencies or Woredas in the procurement of works, and by other employers.
Criteria for Selection of Bidding Document
Following discussions at Workshops under the AFCAP programme in early 2010 four specific
SBDs are being recommended for use within the road sector. For two of the documents there are
versions suitable for National Competitive Bidding and International Competitive Bidding.
The chart below mentions SBDs developed by funding bodies. Under some agreements with
international funding agencies for funding of a road sector project it is a requirement to use the
funding agencies own SBD. The Procurement Proclamation allows for this eventuality.
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The chart sets out a framework for selection of the appropriate SBD mainly based on value of project
thresholds. Such thresholds are to some extent arbitrary and should not be regarded as mandatory
unless the employer is mandated to apply particular criteria from the current procurement
proclamation and Directive.
For employment of Ethiopian contractors it is useful to consider such criteria in relation to
registration classification. Part of any procurement approach is to consider how a project or projects
are to be packaged. To create greater competition, or to take account of a policy to develop small
and medium size enterprises may require smaller contract packages. Smaller contract packages,
suitable say for Contractors of Class 4 and below, may lead to a decision on simpler documentation.
Other criteria to consider could include complexity of work, rather than just value, and decisions on
the SBD to be used and the classification of contractor to be targeted need to be arrived at following
some thoughtful analysis.
One key criterion is that the SBD, forming the basis of a procurement exercise, is not in conflict with
legal requirements.
Standard Bidding Documents for Road Works projects: Proposed Options
Funding Bodies own Standard Bidding Document
The best known funding body documents are those employed by the development banks, e.g. the
World Bank or the African Development Bank. If the funding agreement for a road sector project
includes a requirement for the use of the funding bodies own documentation then this becomes
mandatory.
SBD for Procurement of Major Works (ICB)
This SBD initially produced in 2008 has many similarities to the World Bank (Harmonised) SBD
current at the time and includes, as its core Conditions of Contract, the FIDIC 1999 International
Conditions.
SBD for Procurement of Major Works (NCB)
This National Competitive Bidding version of the above document also includes FIDIC 1999
Conditions of Contract
SBD for the Procurement of Intermediate Works (ICB)
This document is modified from a SBD that was originally developed for the PPA in 2006, and
incorporates its own Conditions of Contract, based on a World Bank Smaller Works form of
contract.
SBD for the Procurement of Intermediate Works (NCB)
A National Competitive Bidding version of the above document.
SBD for Procurement of Minor Works
This is based on a SBD developed by the African Development Bank. It utilises Conditions of
Contract which are a simplified version of the PPA Conditions mentioned above.
SBD for Procurement of Micro Works
This is a modified version of the Simple Request for Quotations (for Works) (PPA 2006)
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The original documents were developed by the PPA at the same time as their Works SBDs. The
approach provides the option, if this is the wish of the Employer, to use what is sometimes called a
local shopping procedure with a minimum of 3 quotations. The bidding documentation is very
brief. Procedurally it is likely to be easier and more rapid to employ than when using the SBDs
above. However even for this relatively low value work there may still be a requirement for standard
or contract drawings and reference to standard specifications ERA Standard Technical
Specifications, Maintenance Specifications or Labour Based Specifications.

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Chart outlining the main procurement options for road sector projects
Category
of Funding
Road Project
Bodies
own
SBD

SBD for SBD for SBD for

Major
Major
Interme
Works
Works
Works
(ICB)
(NCB)
(ICB)

SBD for
Interme
Works
(NCB)

SBD
for
Minor
Works

SBD
for
Micro
Works

Externally
funded
projects

Locally funded
Projects over
US$10million
in value
Locally funded
projects under
US$10million
in value
Locally funded
projects under
US$3million
in value
Locally funded
projects under
$300,000 in
value

Note: the above chart shows the main options with heavy shading. The thresholds shown are upper
limits so it is possible for example to use the Intermediate SBD for works below US $3million or the
Minor Works SBD for works below US $300,000. These options are shown with pale shading.

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Purpose of the Standard Bidding Document

The Standard Bidding Document for Micro Works forms part of the suite of standard documents to
be used in public procurement of works in Ethiopia.
The purpose of the Standard Bidding Documents (SBDs) is to provide Procuring Entities (PEs) with
standardised documents to be used as models for preparing invitation and contract documents for
individual procurement requirements. They contain basic contractual provisions and procedural
instructions which are required by the Government of the Federal Democratic Republic of Ethiopia in
the use of public funds through public procurement and which assist PEs to comply with the Public
Procurement Proclamation and Directives.
The purpose of the SBD for Micro Works is the same as the larger bidding and contract documents,
but the documents are designed for simple, lower value procurement, where the main SBDs would be
too long and complex. The SBD for Micro Works format can be used to invite bids, or quotations
the Request for Quotations approach from a minimum of three Contractors, and the contractual
Letter of Acceptance is similar in format to a Purchase Order commonly used for supplies contracts.
A second option is a restricted bidding process with a minimum of five bidders. For Quotations or
Restricted bidding the bidding Contractors are selected from an approved list. Alternatively the SBD
can be used in an open bidding procedure, where the Letter of Acceptance, in line with the
requirements of the Procurement Directive, would be supplemented by a Form of Agreement. Note
that for federally funded works projects there are contract value thresholds for the simplified
approaches mentioned. Currently projects up to a value of 250,000 birr can be procured using a
quotations approach and up to 2 million birr for restricted bidding. Above 2 million birr the PE
should use an Open Bidding procedure.
The SBD for Micro Works has been designed to:
(i)
(ii)

Simplify the drafting by Procuring Entities;

Minimise the time required by the Tender Committee or other authority to approve
documents prior to release;
(iii) Reduce Bidders time and effort in the preparation of bids; and
(iv) Facilitate and simplify the evaluation and comparison of bids and contract award by the PE.

A key feature of the SBD documents is that they have been designed for use together. They have also
been designed so that they can be prepared with minimum input, enabling simple, low value
procurement to be conducted quickly and efficiently, while still when appropriate ensuring adherence
to the Proclamation and Directives and ensuring adequate contractual protection for the PE.
The SBD document contains guidance notes for the PE preparing the documentation [in italics within
square brackets] and general notes for Bidders to assist in completing their submissions. This User
Guide contains further explanations and notes necessary for PEs to use the standard documents.
It is important that PEs always use the original master documents to commence drafting Bidding
Documents for each new procurement requirement to ensure that incorrect details are not included
from a previous use of the document.

Purpose of the Users Guide

This Users Guide has been prepared to provide guidance, to public officials and consultants who
may be employed to do the design and prepare the bidding documents, in the correct use of the
Standard Bidding Document for Micro Works.
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The information in this Users Guide is not legally binding, but Procuring Entities for Federally
funded projects must comply at all times with the Proclamation and Directives.
This Users Guide is not intended for use by Bidders. Notes intended for Bidders are included in the
Standard Bidding document itself. These notes are in italics and should not be deleted when drafting
the particular Bidding Document.

When to Use the SBD for Micro Works

The documents are suitable for use when the procurement requirement is relatively low value and
simple. The relationship between this document and other road sector documents has been set out
briefly in the Preface. The recommended thresholds for the use of each document are also set out in
the Introduction.

Summary of the Procurement Process

The Proclamation and Directives detail the procurement methods and the full procurement process
and rules for each method, and PEs that are Federal organisations must comply with these.
The relevant parts of the procurement process for Micro Works are summarised here as follows:
1. Selection of Bidders;
2. Preparation and Issue of Bidding Documents;
3. Bidding Period and Receipt of Bids;
4. Evaluation; and
5. Contract Award and Placement.

1. Selection of Bidders
Under the Micro Works approach, the bidders invited to submit bids can be included on a shortlist,
prepared from the Employers pre-qualified list, or selected from a listing of Contractors who are
registered in the appropriate category. The general rule on shortlists is to include sufficient numbers
to ensure effective competition. The Short Listing (Quotations) approach that can be used with this
SBD requires a minimum of 3 responsive bidders. A restricted bidding approach generally has a
minimum shortlist of 5 Contractors but more commonly between 6 and 8.
If a full Open Bidding procedure is agreed for a particular project then there will be a requirement to
publish an invitation for bids notice. This invitation will be widely circulated in a national
newspaper. A standard format is shown in annex 2 to this Guide.

2. Preparation and Issue of Bidding Document

The Procuring Entity is responsible for the preparation and issue of the Bidding Document and must
use the standard document for this purpose.
In deciding the deadline for submission of bids, the PE should allow Bidders sufficient time for
studying the Document, preparing a responsive bid and submitting the bid.
When following the short listing approach the document must be issued to all short-listed bidders at
the same time and a record must be kept of the issue of documents.
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ERA Standard Bidding Documents for Micro Works

Bidding Period and Receipt of Bids

The Bidder is responsible for preparation and submission of its priced bid. As the Micro Works
approach is used for relatively simple, low value procurement, there should not normally be any
requests for clarification from Bidders or any need to amend the bidding document. However, during
the bidding period, the PE must ensure that it responds promptly to any requests for clarification
from Bidders.
The PEs main responsibility during the bidding period is to:

Receive and record bids from Bidders up to the deadline for submission ;

Close bidding at the precise date and time of the deadline and ensure that no late bids are
received;

Keep all bids received secure and ensure that information contained in bids is kept
confidential.

4. Evaluation
The Tender Committee, assisted by a Technical Committee if required, is responsible for the
evaluation of all bids received and the preparation of an evaluation report. The evaluation must for a
Federally funded project be conducted in accordance with the Directives and must strictly apply only
and all of the evaluation criteria specified in the Bidding Document. The evaluators must maintain
confidentiality throughout the evaluation process and reject any attempts to distort the outcome of the
evaluation.
Following completion of the evaluation, the evaluation report should be submitted to the head of the
Procuring Entity, with a recommendation for contract award to the bidder who submitted the lowest
priced, responsive bid.

5. Contract Award and Placement

Following approval of the evaluation report and the contract award decision, the Procuring Entity
must prepare a Letter of Acceptance, attaching relevant supporting documentation. The Letter of
Acceptance to the successful Bidder will normally constitute contract award and formation. The
current procurement directive clearly states that the contract is not in place until the subsequent form
of Contract Agreement is signed by both parties. A standard format of a Letter of Acceptance is
included in an Annex to this Guide.
PEs should note that the Letter of Acceptance should not contain any provisions or conditions which
vary from those in the Bidding Document, or the Bidders submission, or any subsequent
clarifications. Any such modifications should be agreed by the Bidder in writing before a contract
award decision is made.
It is important that PEs check the legal requirements in current procurement proclamations and
directives with regard to procedures for contract award.

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Guidance Notes on the Standard Bidding Document for Micro

Works
Structure of the Document
The SBD consists of the following parts, all of which must be used when drafting an individual SBD
for Micro Works:
Letter of Invitation for Bid/or if open tendering an Invitation for Bids notice
Section A

Information for Bidders

Section B

Bid Submission Sheet

Section C

A statement of requirements in the form of:

A Bill of Quantities or Activity Schedule for Works for the Bidder to price

Specifications

Drawings

It is usual practice to include the applicable Conditions of Contract within bidding documents. Since
the CC are relatively brief for Micro Works projects they should be included.

Letter of Invitation for Bid (used under the shortlisting procedure)

This is basically a very short standard letter, with the opening paragraph informing Bidders that they
are being requested to submit a bid, and of the procedures that will regulate the procurement process.
A separate letter must be prepared for each short-listed Bidder, but each letter should be identical
except for the name and address of the Bidder.
The letter may be used in the original format provided, or printed on the PEs letterhead, using the
standard wording provided, completing the following details:

the procurement reference number;

the name and address of the Bidder (one letter for each Bidder);

the date of issue of the document;

The letter is combined with the project Bidding Document (Sections A B and C) and ideally the
Conditions of Contract for Micro Works are also included, or copies are readily available for
distribution to Bidders if requested. The CC contains standard provisions that have been designed to
remain unchanged and to be used without modifying their text.
Note that in an Open Bidding procedure there will be a published Invitation for Bids. Potential
Bidders will purchase documents and there is no requirement for the letter of invitation.

Section A Information for Bidders

The Information for Bidders section provides Bidders with detailed instructions on preparing their
bid. Information which needs to be completed by the PE is indicated [in italics in square brackets].
This includes:

A brief description of the procurement and the place of delivery or performance, the
commencement and completion dates for performance of the works;

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The defects liability period, if applicable;

The requirement for a bid security, if applicable. If applied this should be in the range 0.5% to
2% of estimated contract value;

The period of validity required for bids;

The contact name and address for any queries and for submission of the Bidders Quotation;

Eligibility and Qualification documentation that may be required;

A note of any other requirements;

The name and position of the person signing the letter.

Each copy of the letter should be signed by the authorised signatory for the PE.

Section B-Bid Submission Sheet

The Bid Submission Sheet provides a standard format for Bidders to complete and return as part of
their bid.
During initial preparation of the document by the PE, the name of the Procuring Entity and the
Procurement Number are required to be entered in the header.
The Requirement in paragraph 5) must be completed before issue of the SBD to list the documents to
be submitted by the Bidder with its Bid Submission Sheet. This will normally be:
i. Section C of the SBD completed and signed;
ii. A copy of the certificate of registration from the relevant authority [the PE should amend the
relevant registration body specified , if required];
iii. A copy of trading licence;
iv. A copy of tax clearance certificate and VAT registration, if required;
v.The Bid Security (if applicable);
vi. [List any additional documents which are required with the bid.. This could include documents
required as evidence of the Bidders eligibility or qualifications, e.g. list of recent
Government contracts performed.] Any listing here should include any standard format
documentation under B2 and B3.
All other detailed information required on the Bid Submission Sheet is to be completed by Bidders.
The Procuring Entity should not make input to or change any information in the Bid Submission
Sheet other than in the header and the content of paragraph 5).
Note that should there be any aspect of the qualification requirements, or factors which may be used
in evaluation which may be unclear from the requirements of paragraph 5) and elsewhere, then it is
good practice to include a separate Annex to Section B. This should clearly set out all the
qualification and evaluation criteria which will be used by the PE in determining the successful
bidder.
If a Standard Form of Bid Security or Standard Qualification Information Forms are required to be
submitted with the bid then this should be attached. Such standard forms are included with SBDs for
larger scale projects.
Instructions to the Bidders on completing the form are given at the top of the form in italics and
should not be deleted by the PE.
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Note that although there is an option in B4 and B5 to include a Standard Form of Contract
Agreement and Form of Performance Bond, these are for the bidding Contractors
information and will only apply at a later stage to the successful bidder.

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Section CBill of Quantities or Activity Schedule,

Specifications, Drawings
Section C fulfils two purposes. It provides a listing of the works required by the PE and it also
provides a format in which the Bidder should enter his prices. See the key note on payment options
below.
Section C must inform Bidders of precisely what the Procuring Entity wishes to procure, including
the quantities and specifications of all items. This must be carefully prepared and if necessary
specialist technical assistance may be required for the drafting of detailed specifications or design
drawings. The Section C completed by the successful bidder will form part of the Contract.
Section C should provide sufficient information to enable Bidders to prepare bids that are realistic
and competitive and which meet the PEs needs. It should be complete, precise, and clear.
Incomplete, imprecise, or unclear details in Section C may prompt bidders to request clarifications
from the Procuring Entity or to submit conditional bids or bids that may be based on different
understandings of the Procuring Entitys requirements.
Section C is to be drafted in a manner permitting the widest practical competition, without using
brand names or specifications applicable to only one supplier wherever possible. The required
standards of performance, workmanship, compliance with national or international standards, and the
characteristics of materials must be clearly defined. Specifications should be based on the minimum
criteria that will be acceptable to the Procuring Entity. For a small scale road sector project with very
few activities it may be advantageous to include extracts from bulky General Technical
Specifications, or use very specific references, rather than just refer to the whole document.
Where additional specification of the requirement is necessary for the sake of clarity, for example,
detailed specifications, drawings, technical data or terms of reference, these should be appended to
Section C and formally listed as attachments.
The Unit Rate and Price columns in C1 must be left blank, to be completed by the Bidder.
The exception to this is if there are any Provisional Sum items included. In such cases the PE briefly
describes the activity covered by the Provisional Sum and includes the estimated price.
There can be a number of Provisional Sum Items (The table only shows one)
Payment Options
The SBD Micro Works document is suitable for contracts with two main payment options:
Civil Engineering contracts are generally re-measure forms, where the bill of quantity items
are approximate and all works are subject to re-measure.
Some works contracts are Lump Sum where the total price (not including provisional sums)
is the amount the contractor expects to be paid and the quantities in the Bill of Quantities or
Activity Schedule are indicative.
These options are briefly described in the Conditions of Contract but it is important that the PE
includes the correct option here.
Provisional Sum Items
A Provisional Sum item is an item included in a contract for the execution of any part of the works,
or for the supply of goods or materials, plant or services, or for contingencies, which sum may be
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used, in whole or in part, or not at all, on the instructions of the Employer. The Employer can issue
an instruction to the Contractor for the execution or supply, or to instruct the Contractor to employ a
Nominated Subcontractor.
The purpose of a Provisional Sum item or items is to give the Employer the flexibility to include
within the works contract specialized inputs, perhaps associated with desirable Complementary
Interventions. Examples are the provision of a specialist sub-contractor for a bio-engineering
solution to a slope stability problem, or an HIV/AIDS prevention programme. The Provisional Sum
item, or items, require a brief description and have to be priced by the PE before the bidding
documents are sent to Contractors for pricing. In Section C there is provision for the Contractor to
enter a percentage for adjustment of Provisional Sum items which will be a sum paid to the
Contractor for ancillary works associated with administering the Provisional Sum item.

Other Issues
Complementary Interventions
For many road sector projects, away from urban centres, there are opportunities to provide, through
the contract, additional services, works or supplies for local communities.
Complementary interventions are:
Actions that can, if desired, be included in and implemented through the roads project or the
road works contract.

Targeted toward the communities that lie within the influence corridor of the road and are
affected by the road itself, by road users or by the road works.

Intended to optimise the benefits brought by the road and to extend positive, and mitigate
negative, impacts of road projects on local communities

Not mandatory. They are included at the discretion of the client.

Not designed to remove or replace the responsibilities of the contractor, client or other
authorities or institutions.

The concept of complementary interventions is motivated by opportunity. In its simplest terms

complementary interventions take advantage of the presence of the road project to build in aspects
that will enhance the social, environmental and safety situation of communities affected by the road.
These are additional to the normal social, environmental and safety obligations of the contractor and
do not replace or share the contractors normal obligations.
ERA has recently published a Design Manual for Low Volume Roads that includes a section on
Complementary Interventions. The main issues in delivering such non conventional components
within a contract are those of specification, measurement and payment. These aspects are considered
further in the Design Manual.
Choice of Technology
Micro Works projects in the road sector can often be efficiently undertaken using labour-based
technologies. Implementing strategies that encourage labour-based technologies contributes to
employment, and provides the opportunities for much needed income generation in the vicinity of the
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project. The Design Manual for Low Volume Roads includes many construction methods that utilize
labour based technologies.
Within the procurement process there is a general principle that the standards of the finished product
are defined, mainly by the drawings and specifications, but that the bidder decides on the best
methods to employ in order to achieve the standards. If there is a policy of encouraging labour-based
methods it is the usual practice to have a margin of preference for bidders who demonstrated in their
bid a predominately labourbased approach. This has the benefit of providing an incentive for labourbased contractors without unduly moving the contractual risks associated with method in the
direction of the employer.
A strategy for encouraging labour-based methods will also include packaging of projects into small
contracts where contractors, say from Class 5 or lower are eligible. Such contractors are not required
to own much equipment and will usually adopt labour-based methods. Of course in an Open
Tendering situation the eligibility requirement will state, for example, Class 5 and above, and means
that a contractor in a higher class may still become a bidder.

Guidance Notes on the Conditions of Contract

The Conditions of Contract for Micro Works are intended to remain unaltered when included as part
of a Bidding Document for a works project. There are no direct references in the CC to a set of
Special Conditions or to Contract Data sheets. Note however that in Section B1 the Bid Submission
Sheet clause 6 refers to the Conditions of Contract which will always be interpreted to include any
Special Conditions.
For a relatively small scale project following a quotations approach to procurement then it may be
possible for the Letter of Acceptance to be sufficient to form the contract. In this case it is
recommended that the Letter of Acceptance sets out the information which in other forms of
Bidding Document may be included in the Special Conditions or in a Contract Data Sheet. An
appropriate form for the Letter of Acceptance is set out below.
If the procurement procedure requires a signed form of Contract Agreement then this Agreement can
include Contract Data (sometimes as an Annex or Appendix).
If a preferred option is to include Special Conditions as part of the initial Bidding Documents then
some of the areas where the drafting of suitable Special Conditions may be applicable are:
Clause 1e. The Employers Representative. The duties and responsibilities can be set out here
rather than notified later.
Clause 3 Inspections and Tests The Contract shall specify any inspections and tests the
Employer requires and where they are to be conducted. For small works contracts the transport of
samples and payment for testing at laboratories can be a large overhead for a Contractor so it may be
desirable to set out in Special Conditions the location of the approved laboratory, or any other
inspection and testing approach that the Employer believes to be necessary under clause 3.

Clause 5 Payment for Materials on site clarification is required as to how this aspect would
be paid, if applicable.
Clause 5 Provision for Advance Payment if required and not clearly set out elsewhere a subclause could be added that would also include the repayment schedule.

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Clause 5 A sub-clause can be added covering payment of interest on payments delayed by the
Employer
Clause 7 Contract Amendments clarification is required concerning responsibility and
procedures for Variation Orders
Clause 9 If not clearly stated elsewhere the type and value of Contract Security can be
included in the Special Conditions.
Clause 16 Settlement of Disputes alternative procedures can be considered if not in conflict
with the Procurement Proclamation and Directive
Clause 19 Governing Language stated as Amharic. If documents are all in English then this
can lead to problems unless amended.

Guidance Notes on the Letter of Acceptance

Structure of the Letter of Acceptance
The Standard Letter of Acceptance consists of a single page, designed to be used with the standard
header format completed, or to be issued on the Procuring Entitys headed paper.
However, for smaller scale works using a quotations procurement approach the basic Letter of
Acceptance can be supplemented by attaching other relevant documentation, particularly:

The completed Section C of the successful Bidder;

The Conditions of Contract for Micro Works; and

Any other documents such as drawings, terms of reference, or detailed specifications

which are agreed between the PE and the winning Bidder.
Very little original work should be involved in drafting the Letter of Acceptance, since all
information required is contained in the Standard Bidding Document as issued and in the successful
bid. In most cases, it should be possible to attach a copy of the bid submission without any
modification.

The Letter of Acceptance should be completed by the PE. It is important that the required funds are
confirmed to be available before it is issued.
A format for a Letter of Acceptance is shown in Annex 3.
The Letter of Acceptance must be signed by an officer authorised to sign on behalf of the Procuring
Entity.
The Contractor is requested to confirm receipt of the Letter of Acceptance in writing.
It can be argued that legally the submission and receipt of a Letter of Acceptance forms the contract.
However the current procurement directive clearly states the need to complete a form of Agreement.
This will be mandatory for Federally funded works procurement. Should this be the case then it is
recommended that a standard form be used. (for example the Standard Form of Agreement included
in the SBD for the Procurement of Intermediate Works 2011)

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ANNEX 1
DRAFT LETTER of INVITATION

To:

Date:..

The Procuring Entity named above invites you to submit your priced bid for carrying out the works as
described herein. Any resulting contractual agreement shall be subject to the Conditions of Contract
for Micro Works except where modified by this Bidding Document.
Contractors receiving this Letter of Invitation are:
___________________________________________________
___________________________________________________
___________________________________________________
___________________________________________________
[Include a full list of Contractors invited]

[The above letter is part of the Selected Short-list procedure where a minimum of 3 Contractors
are invited to bid. If the PE follows a full Open Tendering procedure the above section must be
deleted. Open Tendering requires an Invitation for Bids notice in accordance with the Procurement
Proclamation. An Invitation for Bids format is included as Annex 2]

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ANNEX 2
INVITATION FOR BIDS Standard Format
[PE Letterhead]
Invitation to Bidders [Brief Description of the Project]
[Date]
[Reference Number]
1. The [PE insert name] invites interested contractors to submit sealed Bids for construction of the
_____________________________[Insert name of the project], divided in _____ separate contracts.
[delete if not applicable]
2. To be eligible for Bidding for this project, the contractor must be duly registered as such with the
Ministry of __________, in category ________, class ________, and above with a valid license for
the year ________.
3. Inspection and acquisition of the Bidding documents and further information can be obtained from
our office:
_____________________________________________________________________
_____________________________________________________________________
Tel: ________________________
Fax:________________________
4. A complete set of the Bidding documents may be purchased by interested, eligible Bidders at the
above office, on submission of a written application and upon payment of a non refundable fee of
__________________ Ethiopian birr [insert amount in words and in figures] per contract.[delete if
not applicable]
5. All Bids must be accompanied by a security, in the form and amount specified in the Bidding
documents [delete if not applicable]), and all required Bidding documents must be delivered to:
_________________________________
_________________________________
_________________________________
[insert name and address]
at the above address not later than _________ on _______ [insert time and date].
6. Bids will be opened immediately thereafter in the presence of the Bidders representatives who
choose to attend as indicated in the Bidding Document.
7. The PE [insert name] reserves the right to reject any or all Bids.
[PE Letterhead or stamp] ____________________[Authorized signature] [name and title]

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ANNEX 3
[PE Letterhead]
LETTER OF ACCEPTANCE Standard Format
[Note: this format is suitable for micro works contracts following a quotations procurement
procedure. If the Letter of Acceptance will be followed by both parties signing a Form of Contract
Agreement then it is common for many of the Specific Terms and attachments not to be included
in the Letter of Acceptance but be attached to the Form of Contract Agreement]
Procurement Number: .

Title.

To: {Name and Address of Contractor}

.......................................................................................................................................................
.......................................................................................................................................................
Your bid, reference [reference number] dated [date of bid submission] is accepted and you are
required to perform the works as detailed in the listed attachments against the terms contained in this
Letter of Acceptance. This contract is placed subject to the attached Conditions of Contract for Micro
Works, except where modified by the terms stated below.
SPECIFIC TERMS OF THIS CONTRACT:
1) Contract Sum: The Contract Sum is [state contract sum and currency].
2) Completion Period: The works are to be performed within days/weeks/months from the
date of this Letter of Acceptance. [If the procurement procedure includes a Form of Contract
Agreement then it should be made clear here that the Completion Period dates from the date of
Contract Agreement or alternatively an agreed commencement date]
3) Defects Liability: The defects liability period is: months.
4) Location of Works: The works are to be provided at [physical address]

5) Contact Person: Enquiries and documentation should be addressed to [name and position of
individual] at [address] ...
Telephone Number:.. Fax Number .
6) Payment to Contractor:
Payment will be made in accordance with the following payment terms [state agreed payment
terms].
The following documentation must be supplied for payments to be made:
i). An original and two copies of an Invoice;
ii). A completion certificate signed by [Authority responsible for certifying satisfactory
completion, or partial completion for interim payment where applicable];
iii). [List other documents required ]
7) [Add any other specific terms of contract appropriate to the Letter of Acceptance e.g. in
relation to Contract Security, Bank Guarantee or Performance Bond where applicable].
8) The following documents attached as appendices form part of this Contract:
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Conditions of Contract for Micro Works;

Section C of the Standard Bidding Document for Micro Works
[List any other such documents e.g. Specifications, Drawings]
9) Please confirm your receipt of this Letter of Acceptance in writing.
Letter of Acceptance Authorised by:
Signature:.. Name:..
Position:. Date:

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ANNEX 4
Guidance on Qualification of Bidders
Purpose of Qualification
The purpose of any system of qualification of Contractors is to ensure that in a competitive bidding
situation the winning bidder has the financial, technical and human resources available to
successfully complete the works. The qualification process should be designed to ensure that the
contractors whose bids are being evaluated in detail are all capable. The outcome will be to minimise
the risk to the Employer of an unsuccessful project.
Qualification Criteria
There are some principles which have to be followed when establishing the detailed criteria for a
particular project.
Clearly the level of risk is higher for a large scale or technically complex project. Such projects are
likely to have stringent qualification criteria.
For small scale projects of limited complexity there may be a policy of supporting the development
of new contractors. The use of minimal qualification criteria will lead to an increase in risk to the
success of the project and to both parties. The risk of failure by a contractor is often linked with cash
flow problems. If there is a strategy for the development of national contractors then there may be a
strategy of relaxation of stringent qualification criteria associated with adjusted payment terms (e.g.
level of advance payment, retention etc)
Qualification criteria generally cover the following aspects:
Legal Status
Eligibility/Registration
Financial Status
Equipment
Staffing
Experience and References
- General
- Specific
Historical contract non-performance
Qualification Thresholds
Many of the qualification requirements are not seeking a yes or no answer, but require a quantitative
response. The qualification document will normally set out these thresholds, which should be
developed on a project by project basis to reflect the scope and nature of the project and the status
and capability of potential contractors.
Approaches to Qualification
A major Employer can adopt one of 3 approaches to qualification:
1. Pre-Qualification
2. Post Qualification
3. Pre Qualification to an approved list
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1. Project Pre-qualification is not applicable to Micro projects except that for a Quotations or
Restricted bidding procedure there will be a general pre-qualification process that is a prerequisite for a Contractor to be on an approved list. This is discussed in 3 below.
2. Post qualification is when all the qualification documentation forms part of the main bidding
document. This is generally the case under a full open procedure where all interested contractors
can submit their qualification details and proposals. The evaluation is done in stages where only
those contractors passing the first evaluation of their qualification information can then have their
full bid evaluated. The stages can be Administrative, Technical and Financial, and may include a
two envelope system with the financial envelope not being opened unless a Contractor has been
successful in the earlier stages of the evaluation. This broadly is the procedure followed by ERA
for nationally funded projects.
3. A short listing procedure based on an approved list is only really suitable for National Competitive
Bidding. Periodically, say every 3 years or so, Contractors are required to submit qualification
information for each category and scale of work. Following evaluation by the Employer the
eligible and successful contractors go onto an approved list. Only contractors on this list can then
bid for each respective category of work and the listing is used by the Employer in order to select
the short list for any particular project. Major Employers will generally develop their own
approved list, with Contractor registration being a pre-requisite. If the Contractor registration
system is robust then an Employer could short list Contractors directly from appropriate categories
of registered Contractors.
What follows is a table providing some guidance on evaluation criteria to be considered as a
minimum for each of the new suite of Bidding Documents.
The listing in the table is based on current practice in ERA where some of the headings are very
specifically relevant for a post qualification approach.
Note: for a particular project there are many factors to consider and the Employer and his
Engineering staff or advisors must apply commercial and engineering judgment when setting
out the relevant qualification criteria and the thresholds which will apply.

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Major
Works
SBD
ICB/NCB

Criteria

Intermed
Works
SBD
ICB/NCB

Minor
Works
SBD

Micro
Works
SBD

Legal Status
Major Equipment
Requirements for Qualification
Experience of Key Personnel
Proposal for Subcontracting

and

Proposal of Work Methods

and programs
History of non-performing contracts
Pending litigation
Historical financial Performance
Annual Construction Turnover
General Construction Experience
Specific Construction Experience in Key
Activities
Declaration
of
Site
Visit
and
Understanding of the Work

KEY
A normal qualification requirement

An optional requirement

Not a usual requirement

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ANNEX 5
Form of Conditional Bid Security from Insurance/Bonding
Institution
Policy No:
Date of Bid:
Works:
Invitation to bid:
Contractor :
Surety:
Bid Bond executed on:
Bond Amount:
Know all men by these presents that we, the principal and the surety, above named are held and
firmly bound unto [the Employers name] (Hereinafter Called The Client) in the bond amount
stated above for the payment of which sum well and truly to be made we bind ourselves, our heirs,
executors, administrators, successors and assigns jointly and severally by these presents.
At the request of the bidder, we ------------------------------ hereby undertake to pay you any sum or
sums not exceeding in the total amount Birr --------------------(----------------------) accompanied by a
written statement stating that the bidder is in breach of its obligation (s) under the bid conditions
because the bidder:a) has withdrawn its bid during the period of bid validity specified by the bidder in the form of
bid; or
b) having been notified of the acceptance of its bid by the employer during the period of bid
validity, (i) fails or refuses to execute the contract form, if require or (ii) fails or refuses to
furnish the performance security, in accordance with the instructions to bidders and (iii)
refuses to accept the Arithmetic correction of error in his bid
This guarantee will expire: (a) if the bidder is the successful bidder, upon our receipt of copies of the
contract signed by the bidder and the performance security issued to you upon the instruction of the
bidder; or (b) if the bidder is not the successful bidder, upon the earlier of (i) our receipt of a copy of
your notification to the bidder of the name of the successful bidder; (ii) twenty eight days after the
expiration of the bidders bid.
Consequently, any demand for payment under the guarantee must be recovered by us at the office on
or before that date.

PRINCIPAL

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ANNEX 6
Standard Qualification Information Form
(The information below shall be filled in by Bidders in accordance with the instructions to Bidders (ITB).
This information will be used during bid evaluation and will not be incorporated in the Contract).
1.

Individual Bidders or Individual members of a Joint Venture

1.1

Constitution or Legal Status of Bidder [attach copy]:

Place of Registration: [insert]
.
Principal Place of Business: [insert]
.
Power of Attorney of signatory of Bid: [attach]

1.2

Work performed as Contractor on works of a similar nature and volume over the last ..(insert
number) years. Also list details of work underway or committed, including expected completion date.
Contract Name

1.3

Name of Employer
and Contact Person

Type of Work Performed

and Year of Completion

Value of Contract

Major items of Contractors Equipment proposed for carrying out the Works. List all information
requested below.
Item of
Equipment

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Description including
capacity, make,
and Age (years)

Condition (new, good,

poor) and number
available

Owned, leased (from

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1.4

Qualifications and experience of key personnel proposed for administration and execution of the
Contract.
Position

1.5

Name

Years of
Experience

Years of Experience in
Proposed Position

Subcontractor
(Name and Address)

Experience in
Similar Works

Proposed subcontractors and firms involved.

Sections of
The Work

1.6

ERA Standard Bidding Documents for Micro Works

Value of
Subcontract

Information on current litigation in which the Bidder is involved.

Other Party(ies)

Cause of Dispute

Amount involved

1.7

Evidence of access to financial resources to meet the needs of the contract: cash in hand, lines of
credit etc. [List below and provide supporting documentation.]

1.8

Current and planned contract commitments [List below and describe briefly]
................................................................................................................
...
.

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1.9

Proposed Work Programme (work method and schedule). Descriptions, drawings, charts, etc, as
necessary, to comply with the requirements of the bidding documents. [submit required details]

2.

Joint Venture Information

2.1

The information listed in paragraphs 1.1 to 1.6 shall be provided for each partner in a Joint Venture.

2.2

The information in 1.7 and 1.8 above shall be provided for the Joint Venture.

2.3

Attach the power of attorney of the signatory(ies) of the Bid, authorizing 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 Joint Venture Agreement), 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 Sections 1 and 2.

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ANNEX 7
No Input of Information is required for inclusion in the Bidding Document.
Input of Information will be completed by the Employer at contract award
stage.

Contract Agreement
Procurement Reference No: [insert Procurement Reference number]

THIS AGREEMENT made the [insert day] day of [insert month], [insert year], between
[insert name of Employer] of [insert address of Employer] (hereinafter the Employer),
of the one part, and [insert name of Contractor] of [insert address of Contractor]
(hereinafter the Contractor), of the other part:
Whereas the Employer is desirous that the Contractor execute [insert brief description of
Works] (hereinafter called the Works) and the Employer has accepted the Bid by the
Contractor for the execution and completion of such Works and the remedying of any defects
therein for the Contract Price of the equivalent of Ethiopian Birr [insert contract price in
Ethiopian Birr in words and figures, ensuring it is the same as on any Letter of
Acceptance].
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1.

In this Agreement, words and expressions shall have the same meanings as are
respectively assigned to them in the Contract referred to.

2.

In consideration of the payments to be made by the Employer to the Contractor as

hereinafter mentioned, the Contractor hereby covenants with the Employer to execute
and complete the Works and remedy any defects therein in conformity in all respects
with the provisions of the Contract.

3.

The Employer hereby covenants to pay the Contractor in consideration of the

execution and completion of the Works and the remedying of defects therein the
Contract Price or such other sum as may become payable under the provisions of the
Contract, at the times and in the manner prescribed by the Contract.

The Contract Price or such other sum as may be payable shall be paid in Ethiopian
Birr.

IN WITNESS whereof the parties thereto have caused this Agreement to be executed in
accordance with the law specified in the Contract Data on the day, month and year indicated
above.

Signed by [authorized signatory for the Employer to sign] (for the Employer)
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Name: [insert name of authorized signatory]

Position: [insert position of authorized signatory]

Signed by _____________________________ (for the Contractor)

Name: ________________________________
Position: ______________________________

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ANNEX 8
[If included with the Bidding Document it is only provided for
information of the bidder The Performance Bond will only be
required following notification of Contract Award]
Performance Insurance/Bank Guarantee/Bond (Conditional)
To: [The Employer, name and address]

________________________ [name of project]

day of
THIS AGREEMENT is made on the
20
between [name of insurance] of
[address of insurance] (hereinafter called the Guarantor) of the one part and [name of
Employer] of [address of Employer] (hereinafter called the Employer) of the other part.
WHEREAS
(1)

this Agreement is supplemental to a contract (hereinafter called the Contract)

made between [name of Contractor] of [address of Contractor] (hereinafter
called the Contractor) of the one part and the Employer of the other part
whereby the Contractor agreed and undertook to Design and execute the Works of
[name of Contract and brief description of the Works] for the sum of [amount in
Contract currency] being the Contract Price; and

(2)

the Guarantor has agreed to guarantee the due performance of the Contract in the
manner hereinafter appearing.

NOW, THEREFORE, the Guarantor hereby agrees with the Employer as follows:
(a)

If the Contractor (unless relieved from the performance by any clause of the
Contract or by statute or by the decision of a tribunal of competent
jurisdiction) shall in any respect fail to Design and execute the Contract or
commit any breach of his obligations there under, then the Guarantor will
indemnify and pay the Employer the sum of [amount of Guarantee],
[amount in words], provided that the Employer or his authorized
representative has notified the Guarantor to that effect and has made a claim
against the Guarantor before a date 28 days after the issue date of the
Taking-Over Certificate.

(b)

The Guarantor shall not be discharged or released from his guarantee by an

arrangement between the Contractor and the Employer, with or without the
consent of the Guarantor, or by any alteration in the obligations undertaken
by the Contractor, or by any forbearance on the part of the Contractor,

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whether as to the payment, time, performance, or otherwise, and any notice

to the Guarantor of any such arrangement, alteration, or forbearance is
hereby expressly waived.
This Guarantee shall be valid until a date 28 days from the date of issue of the TakingOver Certificate.
Given under our hand on the date first mentioned above.
SIGNED BY
for and on behalf of the Guarantor in the presence of:

(Witness)

SIGNED BY
For and on behalf of the Employer in the presence of:

(Witness)

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