CE 403 PROFESSIONAL PRACTICES & COMMUNICATION

PROCUREMENT LAW & REGULATIONS 1-1

Act vs. Regulation

 Act (Law) and Regulation are the two legislative terms.

 An Act is a law that has been directly passed by the House(s)

of the Legislature and has been assented to by the Head of the
State.

 An Act in Bangladesh is passed by the National Parliament,

which has absolute sovereignty and is supreme over all other
government institutions, including executive or judicial
bodies.

 An Act of the Parliament is the primary law of the land.

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Act vs. Regulation (Contd.)

 Regulations are rules (having the force of law) formulated by
the body to which the Parliament has delegated the power to
make such rules.

 A Regulation is a form of secondary legislation. These aren’t

nearly as powerful as an Act of the Parliament. These are
rules in writing adopted by the department in charge of
overseeing the act.

 A Regulation sets out the way by which an Act will be

implemented and enforced. Although it does not have the
equal force of an Act, it is enforceable because it tells how a
law will be implemented.
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Act vs. Regulation (Contd.)

 Regulations sit under the act and are enacted by the Minister
or Authority responsible. That way a Regulation can be
altered without the need for it to be passed by the
parliament.

All the Laws of Bangladesh are available online at

bdlaws.minlaw.gov.bd

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Procurement Law & Regulation

Legal Framework for Public Procurement in Bangladesh:

 The Public Procurement Act, 2006 (Act No. XXIV of 2006)

Commonly referred to as PPA 2006
 The Public Procurement Rules, 2008
Commonly referred to as PPR 2008

Central Procurement Technical Unit (CPTU) is the administering

authority for PPA 2006 and PPR 2008

Website: http://www.cptu.gov.bd/

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Central Procurement Technical Unit (CPTU)

Visit the CPTU website http://www.cptu.gov.bd/ and download the
following:

Home > Click to Download

• Procurement Act
• Amendment to Act
• Procurement Rules
• Amendment to Rules
• Standard Tender Documents
• Request for Proposal
• Procurement Flow Chart

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Terminology Used in Contract Documentation

Parties:
• Employer: The person or body that commissions the works
• Contractor: The firm that has been contracted to construct
the works. Prior to signing of the contract the firm shall be
referred to as bidder/tenderer
• Subcontractor: A firm that has a contract with the main
Contractor to provide labor, materials or services.
• Client’s Representative: The person appointed by the
Employer to liaise with the Contractor and the Project
Manager
• Adjudicator: The person who gives ruling on Employer-
Contractor disputes and is preferably a different person than
the Project Manager

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Terminology Used in Contract Documentation

Arbitrator: The Arbitrator is a person to whom the Employer
and the Contractor can refer their disputes to and be bound
by the Arbitrator’s decision. The Arbitrator cannot be the
same person as the Project Manager.

Documents:
• Contract Documentation:
 Prequalification, Tender and Contract Documents
collectively
 This term includes all documents prepared by the
design team

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Terminology Used in Contract Documentation

• Prequalification Documents:
 Prequalification documents exchanged between the
Employer/Designer and potential tenderers prior to
selection of list of tenderers.
• Tender Documents:
 The Documents sent to the selected tenderers to
enable them to price the construction.
• Instruction to Tenderers:
 The term is self explanatory. Instruction to Tenderers
only covers procedures up to Acceptance of Tender,
therefore it’s not a contract document.

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Terminology Used in Contract Documentation

• Tender:
 The documents that have been completed by a
tenderer and then returned to the Employer for
consideration (i.e. evaluation)

 Bid: US equivalent to Tender. Normally not used in

Contract documentation, since contract documentation
deals with written offer. The word ‘Bid’ in UK English is
used to describe both written and verbal offers.

 Offer: Another alternative to Tender. Not normally

used in Contract Documentation for the same reason as
Bid.
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Terminology Used in Contract Documentation

• Bill of Quantities:
 A document used in tendering in which materials,
parts, and labor (and their costs) are itemized. Considered
as the most important item in a Tender Document.

• Addenda:
 Changes to tender documents after they have been
sent to the tenderers and prior to acceptance of tender.

• Variation Order:
 Project Manager’s orders for alternations, additions
and omissions to the works.

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Tender Documents: Essential Elements

Section 1. Instruction to Tenderers (ITT)
Section 2. Tender Data Sheet (TDS)
Section 3. General Conditions of Contract (GCC)
Section 4. Particular Conditions of Contract (PCC)
Section 5. Tender and Contract Forms
Section 6, Bill of Quantities (BOQ)
Section 7. General Specifications
Section 8. Particular Specifications
Section 9. Drawings

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Section 1. Instruction to Tenderer (ITT)

The Purpose of this section is to instruct the tenderer or bidder
about the general rules and regulations. It stays the same for all
tenders.
It should not mention any specifics, for example, here it shall be
mentioned that the tenderer has to submit tender security but
the amount shall not be mentioned.
Section 2. Tender Data Sheet (TDS)
The ITT provides generalized information whereas the Tender
Data Sheet offers particulars. For example, the amount of the
tenderer has to submit as security deposit shall be mentioned
here. Also the amount of required turnover the tenderer is
supposed to fulfill is specifically mentioned.
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Conditions of Contract
Condition of Contract define the conditions under which the
Contractor executes the Contract including the rights,
responsibilities and relationships of the parties involved.
Standard Conditions of Contract are available for different
applications/contracts. International Federation of Consulting
Engineers (FIDIC) Conditions of Contract is commonly used in our
country.
General Conditions – These are core clauses that are generally
applicable to most projects.
Particular Conditions (or Special Conditions or Supplementary
Conditions) – These are optional clauses required for a particular
project or particular circumstances.
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Section 3. General Conditions of Contract (GCC)

This section is kept unchanged for all tenders. Here, only general
conditions are written, no specific conditions relating to the project
are mentioned. Some clauses from the GCC are-

▫ Key Definitions ▫ Performance Bond

▫ Arbitrator
▫ Provisions for JVCA
▫ Provision of price escalation
▫ Compensation Events
▫ Performance Security
▫ Required Equipment
▫ Required Key Personnel
▫ Advanced payment to Contractor
▫ Multiple Currencies
▫ Sectional Completion
▫ Retention
▫ Bonus for early completion
▫ Delay Damages (Liquidated Damage)
▫ Changes in the Law

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Section 4. Particular Conditions of Contract (PCC)

 It is specifically written to expand on GCC to suit
particular project/situation.
 The project specific information relevant to GCC are
given here; say the amount of compensation, the
performance security are clearly stated here.
 List and qualification of key personnel
 Any modification to relevant GCC clauses are also
specified here.

Section 5. Tender and Contract Forms

 It varies from tender to tender.

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Section 6. Bill of Quantities

 The purposes of preparing the BOQ are :
- To assist accurate preparation of tenders, by providing
measurement of quantities uniformly
- To provide a basis for the financial control of a project,
in accordance with the Conditions of Contract.
 BOQ contains all items for works and supplies for
construction, testing, commissioning to be done by the
contractor.
 It is used to calculate the contract price.
 The contractor is paid for each item of work done at a rate as
quoted in the BOQ

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Section 6. Bill of Quantities

 The purposes of preparing the BoQ are :
- To assist accurate preparation of tenders, by providing
measurement of quantities uniformly
- To provide a basis for the financial control of a project,
in accordance with the Conditions of Contract.
 BoQ contains all items for works and supplies for
construction, testing, commissioning to be done by the
contractor.
 It is used to calculate the contract price.
 The contractor is paid for each item of work done at a rate as
quoted in the BoQ

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Section 6. Bill of Quantities (Contd.)

 A BoQ is divided into individual work items, each of which is
given a quantity calculated by the design team.

 The tenderers instructed to quote a unit rate for each work

item and multiply it by the estimated quantity.
 When the work is completed actual quantities are measured
and the contractor is paid according to the quoted unit rate.

As the single most important item in both the Tender Document and
the submitted tender, BoQ is labeled as the HEART of the Tender

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Section 7. General Specifications

General specifications contain :
• General items of site facilities
• Safety and security measures
• Environmental protection and disposal of wastes
• Preparing the site for work etc.
Section 8. Particular Specifications
Particular specifications contains specifics. Each item should also
contain basis of measurement and payment. For example :
• Strength and other properties of Steel and Concrete
• Specification of bricks
• Specification of electrical items etc.
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Section 9. Drawings
This portion contains project specific drawings along with their
detailing.

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Assignment 1
Roads and Highways Department is to build a bridge with an
estimated cost of BDT 200 crore. The bridge has a total length of
250m with five equal spans of 50m each. For tendering of the work,
prepare the Tender Data Sheet (TDS). Include at least five items.

Assignment 2
Prepare a Bill of Quantities (BOQ) for the concreting work of a mat
foundation of a building 10m x 15m in plan.

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