CE 4221 Civil Engineering Practices, Quality and Legislation

Tutorial 6B: Procurement/Tendering (ICTAD Bidding documents)

Define following items as per ICTAD/SBD/01 and bidding and

contract data

Bid Security

Performance Security

Advance Payment

Retention

Liquidated Damages

Bid Security
Clause 16.1 of ICTAD SBD01 Instructions to Bidders
The bidder shall furnish as part of its Bid, a bid security or a securing declaration as
specified in the Bidding data in the form given in section 9.
Clause 16.2 of ICTAD SBD01 Instructions to Bidders
If a bid security is selected under 16.1 above, the bid security shall be in the amount
specified in the Bidding Data and shall be valid up to the date specified in the
Bidding Data, from an agency acceptable to the Employer.
Bidding Data 16.1: Two Options available. Bid Security or Bid-Securing Declaration
Bidding Data 16.2: Security should be the same as provided in the Invitation to Bid
Bidding Data Foot Note: Not specified: Generally 1% of Contract Sum

Performance Security
Clause 34 of ICTAD SBD01 Instructions to Bidders
Within 14 days after receipt of the letter of Acceptance, the successful bidder shall
deliver to the Employer a performance security from an agency acceptable to the
Employer in the form of an unconditional guarantee and in the amount specified in
Bidding Data.
Bidding Data Foot Note 35: Generally 5% of Initial Contract Sum
Clause 52.1 of ICTAD SBD01 Conditions of Contract
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
Contract Data and in the form of an unconditional guarantee acceptable to the
Employer.
Contract Data Foot Note 57: Generally 5% of Initial Contract Sum

Advance payment
Clause 51.1 of ICTAD SBD01 Conditions of Contract
The Employer shall make advance payment to the Contractor in an amount
equivalent to 20% of the Initial Contract Price excluding provisional sums and
contingencies, within 14 days after furnishing of an unconditional guarantee in a form
and by a bank or a company acceptable to the Employer.

1
Retention
Clause 48.1 of ICTAD SBD01 Conditions of Contract
The Employer shall retain from each payment due to the Contractor the proportion
stated in the Contract Data subject to the limit of retention stated in the Contract
Data.
Contract Data Foot Note 53: Retention: Generally 10% of the Certified Work Done
Contract Data Foot Note 54: Limit of Retention: Generally 5% of Initial Contract Sum

Liquidated Damages LDs)

Clause 49.1 of ICTAD SBD01 Conditions of Contract
The Contractor shall pay LDs to the Employer at the rate per Day stated in the
Contract Data for each Day that the Completion Date is later than the Intended
Completion Date.
The Total amount of LDs shall not exceed the amount defined in the Contract Data.
Contract Data Foot Note 55: LD per day: Depends on the urgency of the project:
Generally 0.05% of Initial Contract Sum
Contract Data Foot Note 56: Maximum amount of LD: = Generally 10% of Initial
Contract Sum