Section - 7 - Form of Bid Security - Appendix

Addis Ababa – Gohatsion Road Upgrading and Overlay Project,
Contract 3: Fiche – Gohatsion Road Overlay project (km 102+000 – 177+147) Ethiopian Roads Authority
Section VII:
Form of Bid, Appendix to Bid and Bid Security
Bidding Document Section VII: Form of Bid, Appendix to Bid and Bid Security
Contract 3: Fiche – Gohatsion Road Overlay project (km 102+000 – 177+147) Ethiopian Roads Authority-VII - 1
Form of Bid
Name of Contract: Addis Ababa – Gohatsion Road Upgrading and Overlay Project,
Contract 3: Fiche – Gohatsion Road Overlay project (km 102+000 – 177+147)
To: Ethiopian Roads Authority

P.O.Box 1770
Ras Abebe Aregay Street
Addis Ababa
Gentlemen:
1. In accordance with the Conditions of Contract, Specification, Drawings, and Bill of

Quantities and Addenda Nos. [insert Addenda Nos.] for the execution of the above-
named Works we, the undersigned, offer to construct and install such Works and
remedy any defects therein in conformity with the Conditions of Contract,
Specifications, Drawings, Bill of Quantities, and Addenda for the sum of (i) Our bid
price, excluding any discounts offered in item (d) below, is composed of the
following components:
Description Amount Amount

(in numbers) (in Words)
(A) Periodic Overlay WORKS [as per BOQ] in an
amount of
(B) LUMP SUM PRICE FOR THE CONTRACT
WORKS [Management and Maintenance
Services] an amount of
TOTAL = (A) + (B)
VAT applied to TOTAL
BID PRICE = (A) + (B) + VAT
For the purpose of calculating payments, the total bid Price for the Contract Works
tendered in Part (i) above shall be apportioned to the following Output Categories
(refer to Payment Schedules) using the percentages in the following table:
Percentages of the Lump Sum

Output Category Bid Price to be Apportioned to
Contract Payments
Total (to be)
Periodic Overlay Maintenance Works 70%
Management and Maintenance Services 30%
2. We acknowledge that the Appendix forms part of our Bid.
3. We undertake, if our Bid is accepted, to commence the Works as soon as is reasonably

possible after the receipt of the Engineer’s notice to commence but not later than the
date specified in the Appendix to Bid, and to complete the whole of the Works
comprised in the Contract within the time stated in the Appendix to Bid.
4. We agree to abide by this Bid until the date 120 days from date of bid submission
specified in the Bidding Data and it shall remain binding upon us and may be accepted
at any time before that date.
5. Unless and until a formal Agreement is prepared and executed, this Bid, together with
your written acceptance thereof, shall constitute a binding Contract between us.
6. We understand that you are not bound to accept the lowest or any bid you may
receive.
7. We certify/confirm that we comply with the eligibility requirements as per ITB Clause 3
of the bidding documents.
8. 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 Amount and Purpose of commission or

agent currency gratuity
(if none, state “none”)
9. We hereby certify that we have taken steps to ensure that no person acting for us or
on our behalf will engage in bribery.
Dated this day of 20
Signature in the capacity of

duly authorized to sign bids for and on behalf of
[in block capitals or typed]
Address:
Witness:
Address:
Occupation
Appendix to Bid
Bidders should fill in all the appropriate blank spaces. Bidders are required to sign each page
of the Appendix to Bid.
Conditions of Contract Sub-Clause
Definitions 1.1 (a) The Employer is Ethiopian Roads Authority

(i)
1.1 (a) The Engineer is : [To be notified latter]

(iv)
Limit of 4.3 The value of subcontracting shall be at least 20% of the

Subcontracting contract price and maximum of 40% of the contract price.
Language and Law 5.1 (a) The language is English
5.1 (b) The law in force is that of the Federal Democratic Republic of
Ethiopia
Priority of Contract 5.2 Other documents forming part of the contract document are:-
Documents
 Anti-Bribery Pledge Form,
 Performance Guarantee,
 Forms Advance Payment Guarantee, Forms of
Advance Payment Disbursement Agreement and
Advance Payment Disbursement Schedule (if
applicable)and
 Disputes Settlement Procedure
Performance 10.1 The performance security will be in the form of bank/insurance
Security guarantee in the amount of ten (10) percent of the Contract
price.
Access to Data 11.2 Data made available by the Employer under Sub-Clause 11.1 is
open for inspection at the Engineering Procurement
Directorate; Ethiopian Roads Authority; ERA Building, 2nd floor,
Room No. 207, Ras Abebe Aregay Street Addis Ababa; Ethiopia.
Program to Be 14.1 Within 42 (Forty two) days of receipt of the Letter of

Submitted Acceptance.
Cash Flow Estimate 14.3 Within 42 (Forty two) days of receipt of the Letter of
Acceptance.
Country of the 16.4 The country of the Employer is the Federal Democratic Republic
Employer of Ethiopia
Minimum Amount of 23.2 1,000,000 (one million) Birr per occurrence, with the number of
Third-Party occurrences unlimited.
Insurance
Time for Issue of the 41.1 Within 35 (Thirty Five) days of receipt of the Letter of
Notice to Acceptance.
Commence
Time for Completion 43.1 The Completion time for the Contract is ten (10)calendar years
from the Start Date of the Contract under which the first three
(3) years will be for undertaking of Overlay Woks from the
start date and the remaining 7 (Seven) Years will be for Road
Asset Management And Maintenance Period as per Separable
Portions detailed below:
Separable Portion 1: One (1) calendar year from the Start Date
of the Contract (Year 1)
Separable Portion 2: One (1) calendar year from the End Date
of Year 1
of Year 2
of Year 3
of Year 4
of Year 5
of Year 6
of Year 7
of Year 8
of Year 9
The annual Asphalt Overlay Works required to be executed

during the Contract is shown in the table below.
Contract Year Total Length of I Asphalt

Overlay Works (km)
1 15.0
2 30.0
3 30.0
4 0
5 0
6 0
7 0
8 0
9 0
10 0
The completion time for the periodic overlay Works for each
Separable Portion is as defined in the Specifications – PART A.
Periodic Overlay Works that failed to achieve verified
substantial completion within these time frames will have
liquidated damaged applied in accordance with GC Clause 47.1
Amount of 47.1 0.1% of the value of the works not taken over per day.
Liquidated Damages
Limit of Liquidated 47.1 10 (ten) percent of the Contract Price.
Damages
Amount of Bonus for 47.3 Not Applicable

Early Completion
Limit of Bonus 47.3 Not Applicable
Defects Liability 49.1 365 days from the issue of the Taking Over Certificate of the last
Period section under Clause 48.
49.5 Non Applicable
Minimum Amount of 60.2 1,000,000 ( one million) Birr

Interim Payment
Certificates
Retention Money 60.5 5 (five) percent of Interim Payment Certificates, up to a

maximum of 5 (five) percent of the Contract Price less
Provisional Sums
Retention money may be replaced by unconditional Bank

Guarantee of an equal amount.
Maximum Amount 60.7 Maximum Amount of advance payment shall be 20% (twenty
of Advance Payment percent) of the of the sum of Apportioned Values for Periodic
overlay maintenance Works and Management and Maintenance
Services under the Contract, with the associated amount of VAT
less Contingencies, Provisional Sum and Day works fulfilling the
following conditions;
 The contactor shall sign advance payment disbursement

agreement and submit details of advance payment
disbursement schedule.
 ERA will pay 50 % (Fifty Percent) of the advance payment,
in a maximum of five installments, directly to the supplier
on behalf of the Contractor for purchasing of equipment or
construction material depending on the purchasing
agreement made between the Contractor and the supplier.
 ERA will pay the remaining 50 % (Fifty Percent) of the
advance payment in cash in four equal installments”
Advance payment 60.7 The advance payment guarantee will be in the form of
Guarantee conditional/unconditional guarantee in the amount equal to the
Advance payment. Conditional guarantee is allowed for local
bidders only.
Start Repayment of 60.7 After certification of 30 (thirty) percent of the Contract Price
Advance Payment less Contingencies, Specified Provisional Sum and Day works.
Monthly Recovery of 60.7 40 (forty) percent of the amount of monthly Interim Payment
Advance Payment Certificates less Contingencies, Specified Provisional Sum and
Day works.
Number of Copies of 60.1 5 (five).

monthly Statement 60.10
and statements of 60.11
Completion and
Final Statement
Settlement of 67.1 The appointing authority shall be:
Disputes
Addis Ababa Chamber of Commerce and Sectoral Associations
Arbitration Institute
Rules of procedure 67.3.2 Addis Ababa Chamber of Commerce and Sectoral Associations
Arbitration Institute Rules
Arbitration shall take place in Addis Ababa
Notice to Employer 68.2 The Employer’s address is:
and Engineer
The Director General
Ethiopian Roads Authority
Ras Abebe Aregay Street
P.O.Box 1770
Addis Ababa
Ethiopia
The Engineer’s address is:

To be notified later by the Employer
The items on the following pages are to be filled in by the bidder as part of its bid,
Rate of Interest 60.8 1 (one) percent above the National Bank of Ethiopia
upon Unpaid Sums lending rate.
Approximate 70.3 [See table immediately below]

Weightings for
Price Adjustment
Formulae
Schedule of Adjustment Data
In Tables A, bidders shall (a) indicate their amounts of payment, (b) indicate their proposed
source and base price /indices for the different elements of cost, (c) derive their proposed
weightings for payment as indicated below.
1. Sources of cost price adjustment indices shall be from recognized relevant national
organizations and shall be acceptable to the Employer.
2. The Base Values of indices shall be those prevailing at the date 28 days prior to the
latest date for submission of Bids and shall be substantiated by Bidders by appending
copies of the relevant publication.
3. General part of the priced Bill of Quantities, Bill I – General Provision is a non
adjustable portion.
Table A. Local Currency
Table A1: Weightings Applicable for Series 1000 – General (Non adjustable)
Total amount of Bidder’s related currency amount (ETB)
Table A2: Weightings Applicable for Series 2000 – Site Clearance
Bidder’s Bidder’s
Index Index Source of Base value related proposed
code description index and date currency weighting
amount
- Non-adjustable — — — a:15%
E Equipment b:60%
B Bitumen c:
F Fuel d:20%
Reinforcing
S e:
Steel
C Cement f:
Total 100%
Table A3: Weightings Applicable for Series 3000 – Drainage
amount
E Equipment b:30%
B Bitumen c:
F Fuel d:5%
Reinforcing
S e:15%
Steel
C Cement f :35%
Total 100%
Table A4: Weightings Applicable for Series 4000 – Earthworks
amount
E Equipment b:70%
B Bitumen c:
F Fuel d:15%
Reinforcing
S e:
Steel
C Cement f:
Total 100%
Table A5: Weightings Applicable for Series 5000 – Sub Base, Road Base & Gravel Wearing
Course
amount
E Equipment b:75%
B Bitumen c:
F Fuel d:10%
Reinforcing
S e:
Steel
C Cement f:
Total 100%
Table A6: Weightings Applicable for Series 6000 – Bituminous Surfacing and Road Bases
Index Source of Base value related proposed
Index description
code index and date currency weighting
amount
E Equipment b:50%
B Bitumen c:25%
F Fuel d:10%
S Reinforcing Steel e:
C Cement f:
Total 100%
Table A7: Weightings Applicable for Series 8000 – Structures
Index description
amount
E Equipment b:30%
B Bitumen c:
F Fuel d:5%
S Reinforcing Steel e:15%
C Cement f :35%
Total 100%
Table A8: Weightings Applicable for Series 9000 – Ancillary Works
Index description
amount
E Equipment b:20%
B Bitumen c:
F Fuel d:5%
S Reinforcing Steel e:40%
C Cement f :20%
Total 100%
Table A9: Weightings Applicable for D – Day Works (Non adjustable)
Total amount of Bidder’s related currency amount (ETB)
Table B. Permitted Ranges of Weightings
Surfacing and Road Bases

Series 4000 – Earthworks
Series 6000 – Bituminous
Series 8000– Structures

Series 5000 – Sub Base,
Series 9000 – Ancillary

Series 3000– Drainage
Road Base & Gravel

Index description
Series 2000– Site
Wearing Course
ndex code
Clearance
Works
Non-
- 15% 15% 15% 15% 15% 15% 15%
adjustable
E Equipment 55 - 65% 25 - 35% 55-70% 55 -80% 50 - 60% 25 - 35% 15 -20%
B Bitumen - - - - 15 - 30% - -
F Fuel 15 - 25% 2 - 5% 10 - 15% 15 - 25% 10 - 15% 2 - 5% 2 - 5%

Reinforcing
S - 10 - 20% - - - 10 - 20% 30-40%
Steel
C Cement - 30 - 40% - - - 30 - 40% 10 -20%
Schedule of Named Specialist Subcontractorsa
Item Element of work Approximate value Name and Statement of

address of similar works
subcontractor executed
a. The bidder shall enter in this schedule a list of the specialized works and approximate value
of the work for which he proposes to use specialist subcontractors, together with the names
and addresses of the proposed subcontractors.
FORM OF BID SECURITY (BANK GUARANTEE)
WHEREAS, ______________________ Name of Bidder (hereinafter called the “Bidder” has

submitted his bid dated date ____________________ for the Construction of Addis Ababa –
Gohatsion Road Upgrading and Overlay Project, Contract 3: Fiche – Gohatsion Road Overlay
project (km 102+000 – 177+147) (hereinafter called “the Bid”)
KNOW ALL PEOPLE by these presents that
We ________________________________ Name of Bank  having our office at

____________________full Address] (hereinafter called “ the Bank”) are bound unto the
Ethiopian Roads Authority(hereinafter called “ the Employer”) in the sum of
_______________________________ for which payment well and truly to be made to the
said Employer the Bank binds himself, his successors and assigns by these presents.
SEALED WITH THE Common Seal of the said Bank this______ day of ________, 20__.
THE CONDITIONS OF this obligation are:
1. if the Bidder withdraws his bid during the period of bid validity specified in the Form
of bid
OR
2. if the Bidder refuses to accept the correction of errors in his Bid.
OR
3. 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 Instruction to
Bidders
(b) Fails or refuses to furnish the performance security in accordance with the Instruction to
Bidders.
We undertake to pay to the Employer up to the above amount upon receipt of his first
written demand, without the Employer having to substantiate his demand, provided that in
his demand the Employer will note that the amount claimed by him due to him is owing to
the occurrence of one or more of the above conditions, specifying the occurred condition or
conditions.
This Guarantee will remain in force up to and including the date 28 days after the date of
expiration of the bid validity, as stated in the Instruction 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.
DATE____________________
SIGNATURE OF THE BANK ________________________
WITNESS 1 _________________ SEAL ____________
(Signature, Name, and Address)
WITNESS 2 _________________ SEAL ____________
(Signature, Name, and Address)
Form of Conditional Bid Security from Insurance/Bonding Institution
Policy No: –––––––––––––––––––––––––

Date of Bid: ––––––––––––––––––––––––
Works: Construction of Addis Ababa – Gohatsion Road Upgrading and

Overlay Project, Contract 3: Fiche – Gohatsion Road Overlay
project (km 102+000 – 177+147)
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 Ethiopian Roads Authority (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 bidder’s bid.
Consequently, any demand for payment under the guarantee must be recovered by us at the
office on or before that date.
–––––––––––––––––––––– –––––––––––––––––––––
Principal Surety

Section - 7 - Form of Bid Security - Appendix

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Section - 7 - Form of Bid Security - Appendix

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Addis Ababa – Gohatsion Road Upgrading and Overlay Project,

To: Ethiopian Roads Authority

1. In accordance with the Conditions of Contract, Specification, Drawings, and Bill of

Description Amount Amount

Percentages of the Lump Sum

2. We acknowledge that the Appendix forms part of our Bid.

3. We undertake, if our Bid is accepted, to commence the Works as soon as is reasonably

8. Commissions or gratuities, if any, paid or to be paid by us to agents relating to this Bid,

Name and address of Amount and Purpose of commission or

(if none, state “none”)

Dated this day of 20

Signature in the capacity of

[in block capitals or typed]

Conditions of Contract Sub-Clause

Definitions 1.1 (a) The Employer is Ethiopian Roads Authority

1.1 (a) The Engineer is : [To be notified latter]

Limit of 4.3 The value of subcontracting shall be at least 20% of the

Language and Law 5.1 (a) The language is English

Program to Be 14.1 Within 42 (Forty two) days of receipt of the Letter of

The annual Asphalt Overlay Works required to be executed

Contract Year Total Length of I Asphalt

Limit of Liquidated 47.1 10 (ten) percent of the Contract Price.

Amount of Bonus for 47.3 Not Applicable

Limit of Bonus 47.3 Not Applicable

49.5 Non Applicable

Minimum Amount of 60.2 1,000,000 ( one million) Birr

Retention Money 60.5 5 (five) percent of Interim Payment Certificates, up to a

Retention money may be replaced by unconditional Bank

 The contactor shall sign advance payment disbursement

Number of Copies of 60.1 5 (five).

The Engineer’s address is:

Approximate 70.3 [See table immediately below]

Schedule of Adjustment Data

Table A. Local Currency

Total amount of Bidder’s related currency amount (ETB)

Table A2: Weightings Applicable for Series 2000 – Site Clearance

Table A3: Weightings Applicable for Series 3000 – Drainage

Table A4: Weightings Applicable for Series 4000 – Earthworks

Table A7: Weightings Applicable for Series 8000 – Structures

Table A8: Weightings Applicable for Series 9000 – Ancillary Works

S Reinforcing Steel e:40%

Table A9: Weightings Applicable for D – Day Works (Non adjustable)

Total amount of Bidder’s related currency amount (ETB)

Table B. Permitted Ranges of Weightings

Surfacing and Road Bases

Series 6000 – Bituminous

Series 8000– Structures

Series 9000 – Ancillary

Road Base & Gravel

Series 2000– Site

F Fuel 15 - 25% 2 - 5% 10 - 15% 15 - 25% 10 - 15% 2 - 5% 2 - 5%

Schedule of Named Specialist Subcontractorsa

Item Element of work Approximate value Name and Statement of

FORM OF BID SECURITY (BANK GUARANTEE)

WHEREAS, ______________________ Name of Bidder (hereinafter called the “Bidder” has

KNOW ALL PEOPLE by these presents that

We ________________________________ Name of Bank  having our office at

THE CONDITIONS OF this obligation are:

2. if the Bidder refuses to accept the correction of errors in his Bid.

SIGNATURE OF THE BANK ________________________

WITNESS 1 _________________ SEAL ____________

(Signature, Name, and Address)

WITNESS 1 _____ SEAL

WITNESS 2 _____ SEAL