KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY

COLLEGE OF ART AND BUILT ENVIRONMENT

FACULTY OF BUILT ENVIRONMENT
DEPARTMENT OF PLANNING

PL 452: METROPOLITAN MANAGEMENT WORKSHOP

ASSIGNMENT 6: CONDUCTING PROJECT PROCUREMENTS

PRESENTED BY:
IVY OPPONG ADOMAA
3594715

WORKSHOP TUTORS
DR. GYLBET KAMINTA-BAEZIE
PROF. D. K. B. INKOOM
ASSISTED BY
IDDRISU ZURIKANEN

MAY 2019
 TABLE OF CONTENTS
CONTENT PAGE NUMBER
Title Page………………………………………………………………………………………….i

Table of Contents…………………………………………………………………………………ii
List of Tables…………………………………………………………………………………….iv
CHAPTHER ONE

GENERAL INTRODUCTION

1.1 Introduction..............................................................................................................................3

1.2 Objectives.................................................................................................................................3

1.3 Scope.........................................................................................................................................4

1.3.1 Geographical Scope................................................................................................................4

1.3.2 Contextual Scope....................................................................................................................4

1.4 Methodology.............................................................................................................................4

1.5 Organization of Report...........................................................................................................4

CHAPTER TWO

PREPARATION OF A PROCUREMENT PLAN

2.1 Introduction..............................................................................................................................5

2.2 Project Overview/Description.................................................................................................5

2.3 Problem Description................................................................................................................6

2.3.1 Project Budget........................................................................................................................6

2.3.2 Implementation Arrangements...............................................................................................7

2.4 Procurement Package and Method........................................................................................7

2.4.3 Procurement Body and their Roles.........................................................................................9

2.5 Procurement Calendar............................................................................................................9

2.7 Make or Buy Decision...........................................................................................................10

CHAPTER THREE

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 PREPARATION OF RELEVANT INVITATION DOCCUMENTS

3.1 Introduction............................................................................................................................11

3.2 Bill of Quantities or Detailed Statement of Work...............................................................11

3.3 Tender Application Forms....................................................................................................12

3.4 Qualification of Tenderers....................................................................................................13

3.5 Source Selection Process and Criteria.................................................................................14

3.5 Extension of Tender Closing Date........................................................................................16

3.6 Opening and Evaluation of Tenders....................................................................................16

3.7 Entry into Force of Procurement Contract.........................................................................18

3.9 Award Notification to Successful Contractor.....................................................................18

3.10 Contract Management, Supervision and Administration................................................19

CHAPTER FOUR

PREPARATION OF PROCUREMENT NOTICE

4.1 Introduction............................................................................................................................20

4.2 Profile of the Procurement Entity........................................................................................20

4.4 Task for Selected Vendor......................................................................................................20

4.5 Declaration.............................................................................................................................20

4.6 Conclusion..............................................................................................................................21

REFERENCES............................................................................................................................22

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 LIST OF TABLES
Table 2.1 Project Description

Table 2.2 Budget

Table 2.3 Implementation Arrangements

Table 2.4 Procurement Packages

Table 2.5 Draft of a Tender Notice

Table 3.8 Pre-qualification Criteria

Table 3. 10 Report of the Evaluation Process

Table 3.12 Notification of Award of Contract

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 CHAPTHER ONE
GENERAL INTRODUCTION

1.1 Introduction
Procurement, is the acquisition of both goods works and services with the sole aim of achieving
value for money. The definition embraces not only buying goods, but also the hiring of
contractors and consultants. The process by which government institutions acquire goods, works
and services using public fund is referred to as public procurement. The process entails planning,
inviting offers, evaluating offers, awarding contracts and managing contracts.

MMDA’s spend a lot of money on goods and services needed for public consumption. To
achieve value for money (VFM) for the taxpayer, effectively managed procurements, which are
properly planned and executed are essential. To achieve this, the MMDA’s are required by the
procurement Act 914 to go through the procurement process in acquiring goods, works and
services for public consumption. The procurement process spans a life cycle from identification
of the need, through the selection of suppliers, to post-contract award management, including
disposal.

This assignment is a continuation of the previous assignment “Project Proposal”. It is of the

assumption that the proposal prepared was winnable and funds have been released by the donor
agency. This assignment then continues to prepare a procurement plan to construct a 1n0. 20 Bed
Space Capacity Ward at Maternal and Child Health Hospital at Pampaso -Kumasi. This will be
in accordance with the procedures outlined in the Public Procurement Act 914.

1.2 Objectives
The assignment seeks to achieve the following objectives;
 To deepen the theoretical understanding of procurement process and the legal and
institutional framework of public procurement at the district level as provided for in the
Public Procurement Act 914.
 To help acquire the basic knowledge and skills needed to carry out the initial preparatory
work that needs to be done before actual procurements are conducted

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  To help in the determining and preparation of relevant procurement invitation documents
that need to be made available to prospective vendors during the procurement process;
and
 To acquire knowledge and skills needed to prepare and disseminate a procurement notice
to prospective vendors.

1.3 Scope
The scope of the assignment is in two folds; thus, the contextual and geographical scope.

1.3.1 Geographical Scope

The project will be constructed within Kumasi Metropolitan Assembly specifically at the
Maternal and Child Health Hospital at Pampaso

1.3.2 Contextual Scope

The assignment entails the preparation of a procurement plan for the construction of a 1no. 20
bed space capacity ward at Maternal and Child Health Hospital at Pampaso within the Kumasi
Metropolis.

1.4 Methodology
Various steps were undertaken to complete the assignment. An introductory lecture was given to
deepen student’s understanding about the specific requirement in developing a procurement plan.
After this, the Public Procurement Act 914 was read to familiarize student’s understanding about
the legal requirements and institutions that are involved in undertaking procurement at the local
level. Also, the additional notes provided were also read to help students appreciate the concept
of developing a project proposal. A project was then selected from the Medium-Term
Development Plan of the Kumasi Metropolitan Assembly and procurement was conducted for it.

1.5 Organization of Report

The report in phased out into four chapters. The first chapter titled “General Introduction” deals
with issues such as the introduction, objectives, scope and the assignment’s methodology. The
second chapter dubbed “Preparation of a Procurement Plan” among other issues highlights
the project description, procurement packages, make or buy analysis and type of invitation to
tender. The third chapter captioned identification and preparation of relevant invitation

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documents spells out the detailed statement of work, tender application forms, qualification of
vendors and the selection process and criteria. The last chapter dubbed Preparation of a
Procurement Notice deals with the identity of the procurement entity, task of vendors and the
qualification of tenderers.
CHAPTER TWO
PREPARATION OF A PROCUREMENT PLAN

2.1 Introduction
The process by which government institutions acquire goods, works and services using public
fund is referred to as public procurement. The process entails planning, inviting offers,
evaluating offers, awarding contracts and managing contracts. In the process of acquiring goods,
works and services the procurement function aims at obtaining goods and services of the right
quality, at the right time, delivered to the right place, in the right quantity, at the right price, and
from the right source.

2.2 Project Overview/Description

The project seeks to increase access to improve quality maternal, neonatal, child and adolescence
health service in the Metropolis by expanding health facilities through the provision of a 20-bed
space capacity ward. The ward will be constructed at the Maternity and Child Health hospital in
Pampaso with 90% of the funds from MTN and 10% from the metropolis. Thich project will be
constructed within a year with an estimated amount of GHC 308,000. Targeted beneficiaries are
the women and children living at and around Pampaso. Table 2.1 describes the project briefly.

Table 2.1 Project Description

Project Location Actual Actual Source Implementing M&E
Title Completio Cost of Agency Arrangement
n (GHC) Funding
Constructio Pampaso 13/11/2018 308,000 MTN Department of MOH
n of 1no. IGF Health MPCU
20-bed
capacity
ward at

3
 Maternal
and Child
health
Hospital
Source: KMA, MMTDP, May 2019.

2.3 Problem Description

To ensure a healthy and productive human resource, it is the vision of every government that
everyone has access to quality healthcare and nutrition services irrespective of their gender,
geographical location in the country and financial status. The assembly in its quest to achieve
this vision has been constructing health facilities including clinics, hospitals etc. in addition to
the addition provision of logistics to improve health facilities in the metropolis. There are 176
health facilities (public and private) within the metropolis with only 37 out of them as maternity
homes. This has put pressure on the few available ones leaving pregnant women with no choice
than to sleep on floors within and outside the wards and on the corridors. Those who don’t get
space in any of the areas will have to make a trip everyday which is costly. Due to this, the
project seeks to (Goal) increase access to improve quality maternal, neonatal, child and
adolescence health service in the Metropolis by (Objective)expanding health facilities (Strategy)
through the provision of a 20-bed space capacity ward.

2.3.1 Project Budget

The detail budget for this project is presented in Table 2.2.

Table 2.2 Budget

Activity Amount (GHC)
Formation of Project Team 300
Work Plan and Building Permit 3000
Mobilization of Funds 500
Site feasibility studies 2,500
Tendering and award of contract 2000
Construction of the ward 196,000
Furnishing 72,700

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 Monitoring and Evaluation 3000
Contingency 28,000
Total 308,000
Source: Author’s Construct, May 2019

2.3.2 Implementation Arrangements

Table 2.3 Implementation Arrangements

Project Activities Mar Apr May Jun July Aug Sep Oct Nov Dec
Formation of Project Team
and community
sanitization
Mobilization of Funds
Work Plan and Building
Permit
Site feasibility studies and
preparation
Tendering and award of
contract
Construction of the ward
Furnishing
Monitoring and Evaluation
Handing Over
Source: Author’s Construct, May 2019.

2.4 Procurement Package and Method

A procurement package refers to a well-defined bundle of goods, works or services intended to
be acquired in a single procurement.

Table 2.4 Procurement Packages

Procurement Package Package Number Estimate Type of Procurement
Package Description d Cost Invitation method
(GH¢) to Tender
Construction A contractor will be AR/KMA/WK/0001/2019 308,000 Tender National

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 of 1no. 20- required to Notice Competitive
bed capacity undertake this Tendering
ward package.
Source: Authors Construct, May 2019
Tender Notice is chosen as the type of invitation because it is more appropriate for civil and
constructional works and it will help to deliver tender opportunities to respective companies,
dramatically reducing the amount of time spent looking for these tenders. The information will be
communicated through Radio and Newspapers. The table below is a draft of the tender notice that
will be made available.
Table 2.5 Draft of a Tender Notice

KUMASI METROPOLITAN ASSEMBLYASSEMBLY

PROCUREMENT OF WORKS/SERVICES
Invitation for Tenders (IFT)
NATIONAL COMPETITIVE TENDERING
The Kumasi Metropolitan Assembly of the Republic of Ghana has been allocated funds as part of its District
Assemblies Common Fund (DACF), District Development Facility (DDF) and Internally Generated Fund (IGF)
budgetary allocations and intends to apply part of these funds to cover eligible payments for the works/goods
contracts whose requirements are indicated in the below Table:
Procurement Package Package Number Tender Completion/Delivery
Security Period
Amount
(GHc)

Construction of 1no AS/KMA/WK/0002/2019 I54,000 Seven (7) Months

Maternity ward
The Kumasi Metropolitan Assembly now invites sealed Tenders from eligible contractors for the construction of
the works indicated in the table above. Tendering will be conducted through the National Competitive
Tendering (NCT) procedures specified in the Public Procurement (Amendment) Act, 2016 (Act 914) and the
Guidelines of the Public Procurement Authority of the Republic of Ghana
3. Tender documents may be purchased at the address1 stated below for a non-refundable fee of Two hundred
Ghana Cedis (GH¢200.00) only, for each set. The document will be obtained personally and with an application
letter. Tenderers are advised to use the address1 stated below for obtaining information, inspection and purchase
of Tender Document.
4. Tenders shall be valid for a period of 120 days after Tender opening and must be accompanied by security
of amounts stated in the table above for each package and shall be delivered to the address2 specified below on or
before 22nd March, 2016 at 10:00 hours GMT, at which time they will be opened in the presence of the Tenderers
or their representatives who wish to attend.
Address1: For inspecting and purchasing Tender Documents
Name of Office: Metropolitanl Co-ordinating Director
Kumasi Metropolitan Assembly

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 Postal Address: P. O. Box 9
City: Kumasi
Telephone Number: (+233-3223) 22083 / 22005,
FAX NO: (+233-3220) 61681
Address 2: For Tender submission and opening
Name: The Secretary, Entity Tender Committee
Kumasi Metropolitan Assembly
Postal Address: P. O. Box 9
City: Adum

Justification for Procurement Method

 This method will create competition among contractor in order to select the best for this
project.
 The estimated cost falls within the threshold amounts of the works/service.
 The market value of the works/service is also known.
 Will ensure competitiveness and promote value for money

2.4.3 Procurement Body and their Roles

Table 2.6 Role Casting

Item Bodies responsible Expected role of bodies
Evaluate Tender security Metropolitan Tender Ensure sound judgment in
Committee procurement decisions and
ensure that all proceedings in
according to Act 914.
Submission of tender Front Desk Officer Ensure the collection of all
document tender document and also
present them to the DTC
Publicity Metropolitan Implementation Ensure educational talks in
Committee (MIC) simple terms that is
understandable to the locals
Source: Author’s Construct, May 2019

2.5 Procurement Calendar

Table 2.7 Procurement Calendar

Procurement Tender Tender Evaluation Signing of Commencemen Completion of
package Invitation Closing of tenders contract t contract
Date of contract

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 Construction
of 1no. 20
bed space 1/04/19 22/04/19 22/04/19 24/04/19 25/04/19 28/02/20
Maternity
Ward
Source: Author’s Construct, May 2019
The procurement unit of KMA will initially organize a pre-qualification proceeding to engage all
prospective contractors and select the best or qualified before the submission of tenderers. The
qualified contractors will be notified and will be made to submit their tender documents to
further partake in the tender review of their submitted documents by the tender review
committee. The deadline for the submission of tenders by contractors will be inscribed in the
tender documents. The qualified contractors will be notified and will be made to submit their
tender documents to further partake in the tender review of their submitted documents by the
tender review committee. The deadline for the submission of tenders by contractors will be
inscribed in the tender documents. Tenders submitted by the contactors will go through an
evaluation process to select the best or qualified contractor to enter into force of the procurement
contract in accordance with the criteria for selection as established in the procurement act. The
purchase of contract or contract document will be signed by the head of entity (MCE) and
submitted to the contractor who is expected to write an acceptance letter to the procurement unit.
Failure to submit an acceptance letter will lead to the annulment of contract. Signatories of
contractor and that of the procurement unit are entered to commence the projector purchase of
goods. In other circumstances, the contractor attaches a performance security form. Example of
the form is provided in the box below.
CONTRACT DOCUMENT TO CONSTRUCT A 20 BED SPACE CAPACITY WARD

Address of Contractor Kumasi Metropolitan Assembly

P.O. Box 5 Kumasi- Ashanti Region
Telephone: 050-000-1750
25/07/2010

This document certified that Kumasi Metropolitan Assembly and [firms Name] has entered
into a contractual agreement pertaining to the construction of a 20 bed-space capacity ward.
Per appending of signature by the two parties to this document, it means that all contract
conditions have been agreed. Here, parties will append their signature to contract without
duress.

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 Signature of Contractor Signature of MCE
……………………….. …………………………..
Name Name:
(Position and Organizations’ name) Kumasi Metropolitan Assembly
Source: Author’s Construct, May 2019
2.7 Make or Buy Decision
Construction of the ward will be provided in Partnership because KMA do not have the available
resources and the capability to undertake this package. The will therefore hire a contractor to do
this package.
CHAPTER THREE
PREPARATION OF RELEVANT INVITATION DOCCUMENTS

3.1 Introduction
This section of the report deals with the preparation of the most relevant invitation documents. It
looks into details the bill of quantities, tender application forms, qualification of the vendors and
the criteria for selection of tenders. The terms of condition and agreement shall not change with
respect to the conditions of contract referred to. The tenderers shall submit the following
documents for review by the procurement unit as part of this agreement.

3.2 Bill of Quantities or Detailed Statement of Work

The bill of quantities, in other terms referred to as the detailed statement of work gives a detailed
description of the nature, quantity and location of the delivery of goods as indicated in the Public
Procurement Act ,2016, Act 914. The detail statement of work is stated below
 Environment Impact Assessment
An EIA will be conducted before the project commence in order to check the environmental
impact of the project to people living within the buffer zone.
 Clearing of Sites
Clearing of the sites involve making the space available for construction. The site would be
cleared of all economic activities and weed cleared if any. In this activity, grass, light bush
and other obstacles would be removed. The needed equipment needed for this would include
the bulldozers and some level of weeding.
 Digging of foundation

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 This requires the removal of all irrelevant materials from the cleared land to gain the require
height, the width of the roads would be 8meters. There is going to be the need for the
construction of foundation for the structure to be built on with the site and building plan
providing as the medium of reference.
 Construction
The structure will be made up of a 20-bed space capacity ward.

3.3 Tender Application Forms

A tenderer in public procurement is expected to possess the necessary professional and technical
qualifications and competence. The tender application form should contain the necessary
provisions to be filled by the tenderer and submitted to the procurement unit of the KMA for
necessary evaluation. Evaluation will be done on each tenderer or contractor with respect to the
information provided on the tender application forms using the criteria that was provided on the
invitation document. Below is a tender application form for the construction of a 20 bed-space
capacity ward.

DOCUMENTATION FOR INVITING TENDERS FOR CONSTRUCTION OF A 20

BED-SPACE CAPACITY WARD.

Subject: Construction of a 20 Bed-Space Capacity Ward.

Reference no. of tender:

Documentation reference:

Name and address of organization inviting tenders for supply of goods

Date of supply: 1st June, 2019 until 30th June, 2019

Closing date of tender: 04:00 hrs on 18th May, 2019

Tenders are hereby beseeched for construction of a 20 bed-space capacity ward in accordance

10
 with the specifications and conditions listed, during the period from 1st June, 2019 to 30th
June, 2019 to Kumasi Metropolitan Assembly.

Interested eligible tenderers may obtain further information from procurement unit of KMA] at
Adum from [09:00 hrs to 17:00 hrs]. forms will be available at the procurement office of
KMA

The fee (non-refundable) for each set of documents is [amount].

Tenders submitted, with supporting documentation and undertakings, must be in a sealed

envelope with the reference number of the tender clearly marked on the envelope. Tenders must
be delivered to the [location and address of office] at or before [time], local time, on [date] and
be placed in the box reserved for that purpose. Tenders received later than the specified time will
not be accepted and will be returned unopened to the tenderer.

3.4 Qualification of Tenderers

This facet of the report details out the prerequisite requirements needed for bidding of soon-to-be
vendors of the procurement packages. A set of criteria will be used which will serve as grounds
for eventual evaluation and selection of a bidder to whom the contract will be awarded to. A
tenderer in public procurement shall possess the following:

1 (a) professional and technical qualifications and competence;

- Financial resources;
- managerial capability, reliability, experience in the procurement object and reputation
(b) Have the legal capacity to enter the contract;
(c) have fulfilled its tax obligations and social security contribution and paid any
compensation for damage caused to property
2. Tenderers may be required to submit appropriate documentary evidence or other
information that it considers useful to satisfy itself

In relation to the above established selections that qualifies an entity or tenderer for prospective
awarding of contract, it is incumbent on the part of the supplier or prospective awardee to submit
a relevant document as stated in section 3 of the Public Procurement Act, 2016, Act 914. The

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additional information or relevant information that a tenderer is expected to submit include any
but not limited to the following:

 A company profile detailing out the size, address, number of employed staff, vision,
mission, experience in supplying of goods and years of operation;
 Documents on tenderers business registration certifying the legal status of the company;
 Documents on the company’s tax obligations;
 Relevant information on the producer who is in production of the goods to be procured;
 Financial statement of the company detailing out its profit and cash-flow statements
 Vital information on the personnel and technical staff of the tenderer’s company (names,
contract details and experience)
 A prospective Tenderer requiring any clarification of the Tender documents may notify
the Employer in writing or by cable. Response will be given before 28 days.
 Tenderers who wish to modify or withdraw tenders must do so before deadline for
submission of tenders
 All documents from Tenders should be submitted in a sealed brown enveloped in person
or representatives.
 All documents relating to the Tender shall be in English
 The price shall be quoted by the Tenderer entirely in Ghana cedi
 The Tender Security shall, at the Tenderer’s option, be in the form of a certified check,
bank draft, letter of credit, or a bank guarantee from a reputable bank located in Ghana

3.5 Source Selection Process and Criteria

This section of the report sets out the required processes that will be employed in selecting the
best vendor out of the lot for the project. Below is the procedure and criteria that will be used to
select the best tenderer or appropriate vender. The procurement entity will communicate to
vendors or tenderers who have been selected for prequalification proceedings. Those who have
been rejected by the procurement entity and reasons for their rejection are not disclosed and they
do not incur liabilities towards the tenderer.

 Work Plan
A work plan is an important tool that helps a project to assign tasks, manage workflow and track
the various components and milestone deadlines. Without work plans team members will work

12
blindly without purpose. It outlines the set of goals and processes by which a team/person can
accomplish those goals and offering a reader a better understanding of the scope of the project.
Tenderers are required to provide a detailed work plan.
 Cost Analysis
Analysis on costs of the various tenderers are reviewed by the Metropolitan Tender Committee
to ascertain the various costs proposed by the tenderers. Decision is therefore made on the cost
which gives maximum benefit and cost relief. Thus, rationality on cost is taken into maximum
consideration.
 Experience, Reputation and Managerial competence
This criterion is given maximum cognition by the procurement unit or tender. Details on
reliability, professional and managerial competence of tenderers or providers of the services.
History on the tenderer’s capacity, efficient management practices and delivery capability are as
well looked at.
 Past Performance of Tenderers
Another most important criterion employed during the selection and evaluation process of
tenderers or bidders will be their records on past performances. A vendor or tenderer that has and
will be able to show or provide relevant and convincing performance records will be selected by
the tender evaluation committee. Performance on quality and efficient delivery of services by
tenderers will be considered.

Following this, tenderers are expected to submit together with the above stated documents any
additional instructions for preparing tenders.

Table 3.8 Pre-qualification Criteria

PRE-QUALIFICATION CRITERIA
Profile of Firm indicating the size, physical and business address, number of staff, overall
organizational structure, core areas of expertise and experience, number of years in the
business, product range and relevance to the advertised procurement exercise.
Past undertaking of Similar Works: The firm should have at least 5-year experience in
construction works.
Performance under previous Contracts: Assessment of documents of previous contracts
awarded to the firms.

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 Related Experience of the firm: Previous works of similar nature conducted by the firm.
Details of personnel and technical staff of the subcontractor or local agent, who will be
dedicated to this project (names, contact details and past experience (CV) are desired).
Language and Currency: The extent of clarity and understanding of tenders submitted by
firms would be assessed. Aside this, the accepted currency within which cost items must be
stated is the Ghana Cedis GH¢.
Registration and Licensing: The firm must be registered to the authorized body mandated
by government or laws of the country. Here, the registration and licensing number and
certified documents of the firms would be checked.

Financial Resources: the financial standings of the Firms will be assessed pertaining to
bank statements, assets owned, balance sheet, cash account, audit report firms would be
assessed.
Source: Author’s Construct, May 2019

Under the prequalification proceedings, the procurement entity of the KMA shall engage in the
process to identify contractors who are qualified before submission of tenders. Selected
contractors will be notified and will be made to further participate in the procurement
proceeding. The above stated criteria will be used during the pre-qualification.

3.5 Extension of Tender Closing Date

The scheduled date for submission of the tender documents by the selected contractors will be
extended on the grounds that a tenderer may seek for further clarification in his tender
documents. In this regard, the initial date for final submission of 18/05/2019 will be extended to
25/05/2019.

3.6 Opening and Evaluation of Tenders

The tendered documents by the selected contractors or vendors will be opened for evaluation.
The tenderers are expected to submit their tender documents at the scheduled location and date
on the 18/05/2019 or 25/05/2019 (if clarification is opted for). The procurement unit of the KMA
will open all tendered documents by contractors and evaluated using the evaluation criteria in the
procurement act in the presence of all contractors. The final results of the evaluation process will

14
be made known and vendors who were not awarded will be issued letters. Reasons for the
rejection of their tender documents will not be made known to them.

Table 3. 10 Report of the Evaluation Process

REPORT OF THE EVALUATION PROCESS
Kumasi Metropolitan Assembly
Procurement Number: KMA/AS/2010/003 P.O. Box 5, Kumasi- Ashanti Region
Telephone: 050-000-1750

The evaluation process conducted from 25-05-2019 to 01-06-2019 for procurement package
“20 bed-space capacity ward” with Procurement number KMA/AS/2019/001 was successful.
The assessment revealed that firm [Name of selected Firm] with serial number [number] has
been selected for the execution of the project. This selection was bas based on lowest price
quoted by firms.

In light of this, a purchase order/ contract conditions will be issued to the selected firm for
subsequent actions to be taken.
Yours faithfully,
…………………
Mr Adoma Yeboah
Head of Procurement Unit, Kumasi Metropolitan Assembly
Source: Author’s construct, May 2019

PERFROMANCE SECUTRITY FORM

To: Kumasi Metropolitan Assembly

Procurement Unit
First Floor, Assembly Block
Kumasi, Ashanti Region

Guarantee No.:

Currency & Amount:

Date of Expiry:

At the request of [name and address of Supplier], we hereby guarantee you irrevocably for the
above maximum amount to secure that they fulfil their obligations to supply [description of
goods] in accordance with KMA/PU Purchase Order No. [ref] dated [date],

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 Your claim(s), if any, duly made and presented to us under the guarantee will be honoured on
your first demand also stating that [name of Supplier] has not fulfilled their above obligations
towards you.

Where we have received no such claim by [date] at the latest, we stand released from our
liability under this guarantee.

We will reduce the guarantee amount by any such amount, as we have had to pay in order to
meet your claim(s) duly made and presented under the guarantee.

[Note: PU does not normally return performance security originals on expiry.]

Yours faithfully

SIGNATURE AND SEAL OF THE GUARANTOR

Date:

3.7 Entry into Force of Procurement Contract

The procurement contract will be signed by the head of entity of the procurement unit of the
KMA and the contractor which will proceed the contract to enter into force on the
commencement on the scheduled date of the contract.

Table 3.12 Entry into Force of Procurement Contract

CONTRACT DOCUMENT FOR ENTRY INTO FORCE OF CONSTRUCTION OF 20
BED-SPACE CAPACITY EARD

Address of Contractor Kumasi Metropolitan Assembly

Ashanti Region
Telephone: 050-000-1750
01/06/2019

This document certified that KMA and [firms Name] has entered into a contractual
agreement pertaining to construction of 20 bed-space capacity ward (KMA/AS/2019/001).
Per appending of signature by the two parties to this document, it means that all contract
conditions have been agreed. Here, parties will append their signature to contract without
duress.

Signature of Contractor Signature of MCE

……………………….. …………………………..
Name Name:
(Position and Organizations’ name) Kumasi Metropolitan Assembly

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Source: Author’s Construct, May 2019

3.9 Award Notification to Successful Contractor

The KMA upon evaluation of the tenders of the vendors or contractors, shall submit to the
procurement entity of the selected contractor to whom the contract will be awarded to. This will
be done in 30 days after the signing of the contract between the procurement board of the KMA
and the selected contractor.

Table 3.12 Notification of Award of Contract

NOTIFICATION OF AWARD OF CONTRACT
Procurement number: KMA/AS/2019/001
Name of Contractor:
Description of Works: Construction of 20 Bed-space Capacity Ward (KMA/AS/2019/001)

Contract Sum: GH¢ 308,000

Duration of Contract: The contract duration is 3 months 01-06-2019 to 30-06-2019

Source: Author’s construct, 2019

3.10 Contract Management, Supervision and Administration

The provisions within the contract document would have to be followed to ensure effective
management, supervision and management of the contract. Contractual obligations would have
to be followed if there is the need to ensure effectiveness. Also, the contractor is expected to
submit an advice payment security form. A project manager is expected ensure contract
supervision and administration in consultation with the procurement unit and works department.
Administration of the contract would ensure that the necessary legal connotations to the contract

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is adhered to. Termination of a contract also forms part of the administrative functions per the
contract.

CHAPTER FOUR
PREPARATION OF PROCUREMENT NOTICE

4.1 Introduction
The next phase of the report takes a look at issuing of a procurement notice to the general public
for prospective vendors or tenderers to bid for. This section of the report outlines the details of
the procurement entity, task of vendor, and timelines.

4.2 Profile of the Procurement Entity

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Broad Metropolitan Goal
To create a human settlement that attracts, accelerates and sustains private sector development as
well as meets the socio-economic needs of residents without compromising the ability of the
future generation to meet their development needs
Vision
The Kumasi Metropolitan Assembly is committed to become a first-class service provider for
citizenry
Mission
To provide quality and reliable essential public services to improve the quality of life of the
people and ensure total sustainable development
Legislative Instrument
Kumasi Metropolitan Assembly was established by Legislative Instrument 1614

4.4 Task for Selected Vendor

Construct a 1no. 20 bed-space capacity ward at the Maternal and Child health hospital at
Pampaso in accordance with the provisions made herein the procurement evaluation.

4.5 Declaration
The Kumasi Metropolitan Assembly located in the Ashanti region of Ghana hereby gives notice
for the procured services of the selected firm for the construction of a 20 bed-space capacity
ward for maternal and child health hospital at pampaso.

4.6 Conclusion
Ensuring value for money is one of the ultimate aims of the PPA. With regards to its essence or
importance to rationalistic and accurate decision making on the use of public funds, the
bureaucratic nature of the entire process does not auger well for quick project implementation,
especially if all projects in the MTDP are to go through these stages of the procurement process.

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REFERENCES

Procurement Act 2016 (Act 914). (2016). Manuals - Public Procurement Act, 2016 (Act 914) 1,
2016(Act 914), 1–132.

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