B2 TRAINING ON

PROCUREMENT OF
WORKS AND
CONSULTANCY
SERVICES

IPFMRP – CDP Project

 Day 3-

SESSION II & III:

PREPARATION OF
BIDDING
B2 TRAINING ON PROCUREMENT OF WORKS AND CONSULTANCY
DOCUMENT- SERVICES

EXAMPLE AND IPFMRP – CDP Project

EXERCISE
 Section II: A.Bid Data Sheet
General
ITB 1.1 The number of the Invitation for Bids is: ………. [insert IFB Number]
ITB 1.1 The Employer is: ………[insert the name of Employer]
ITB 1.1 The number and identification of lots comprising this bidding process is: [insert
the name and contract number of the lots]
ITB 2.1 The name of the Project is… [insert the name of the project, if any]
The DP is… [insert the name of development partner, if any]
The implementing agency is…[insert the name of The implementing agency]
GoN Funded or DP Funded: ……....[insert GoN Funded or DP Funded or PE's own
resource funded]

ITB 3.3 (d) For DP Funded:Not Applicable

(For GoN funded delete this row)
ITB 4.1 (a) For GoN Funded:
Maximum number of partner in a joint venture shall be : 3 (three)
For DP Funded:
[select one options as per DPs Policy]
There is no limit on the number of members in a JV, or
or
Maximum number of partner in a joint venture shall be : [insert number]
3
ITB 4.4 For DP: [insert website address for the list of debarred firms]
 B. Bidding Document
For clarification purposes only, the Employer’s address is:
Attention: ______________________________
Address: _________________________
 
Telephone: : _____________________
Facsimile number: _____________________
Electronic mail address: __________________
A Pre-Bid meeting [insert “shall” or “shall not”] held. [If pre-Bid
meeting is going to be held, insert the following otherwise delete]
Pre-Bid Meeting will
Take place at the following date, time and place:
Date: ____________
Time: ____________  

Place: ____________
A site visit [insert “shall be” or “shall not be”] organized by the
Employer.
Time for request: Requests for clarification should be received by the Employer no
later than 10 days prior to the deadline for submission of bids. 4
C. Preparation of Bids

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 D. Submission and Opening of Bids
ITB 21.1 Bidders shall have the option of submitting their bids ____[insert option 1: "by
electronic only"
option 2: or "by electronic or by mail / by hand / by courier"
option 3: "by mail / by hand / by courier"]___ .
ITB 22.1
For bid submission purposes only, the Employer’s address is :
Attention : …………………………
Address : ………………………….
The deadline for bid submission is :
Date : …………………………..
Time : ………………………….. [Insert time that is immediately after
submission deadline]
ITB 25.1
The Technical Bid opening shall take place at :
Address : ………………………
Date : …………………………..
Time : ………………………….
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 E. Evaluation and Comparison of Bids
ITB 34.1
a) Contractor’s proposed subcontracting: Maximum
percentage of subcontracting permitted is: 25% of the total
contract amount.
b) Sub-contractors’ qualification and experience will not be
considered for evaluation of the Bidder. The Bidder on its
own (without taking into account the qualification and
experience of the sub-contractor) should meet the
qualification criteria.
ITB 35.5
The amount of the performance security be increased by .......
percent of the quoted bid price.

ITB 41.4 For DP Funded: Not Applicable

[For GoN funded delete this row]
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 Evaluation and Qualification
Qualification
Eligibility
Nationality
Conflict of Interest
Government/DP Eligibility
Government owned Entity
UN Eligibility
Other Eligibility
Firm Registration Certificate
Business Registration Certificate
VAT and PAN Registration Certificate
Tax Clearance Certificate/Tax return submission\
 Evaluation and Qualification
 Pending Litigation
 Financial Situation
Historical Financial Performance
Average Annual Construction Turnover
Financial Resources
 Experience
General Construction Experience
Specific Construction Experience
Contract of Similar Size and Nature
Construction Experience in Key Activities
 Personnel
 Equipment
 Subcontractors
 Exercise

 A Work is to be completed within a

period of 12 months.
 The Estimated Cost of the Work is NRs.
120 million.
 Prepare Evaluation & Qualification
Criteria and SCC

10
 Evaluation and Qualification: Pending
Litigation
Criteria Compliance Requirement

Joint Venture
Single All
Requirement Each
Entity Partners One Partner
Partner
Combined
Pending Litigation
All pending must meet not applicable must meet not applicable
litigation shall be requirement requirement
treated as resolved by itself or by itself or
against the Bidder as partner to by every
and so shall in total past or partner to
not represent more existing JV past or
50 percent
than …..……. existing JV
of the Bidder’s net
worth. Range is 50 to 100% 11
 Evaluation and Qualification: Financial
Situation
Criteria Compliance Requirement
Joint Venture
Single
Requirement All Partners Each One
Entity
Combined Partner Partner
Historical Financial Performance
Submission of audited must meet not applicable must meet not applicable
balance sheets and income requirement requirement
statements, for the last
5 years to demonstrate
……
the current soundness of
the Bidder’s financial
position. As a minimum, a
Bidder's net worth
calculated as the
difference between total Range is 5 to 10 Years
assets and total liabilities
should be positive. 12
 Evaluation and Qualification: Financial
Situation
Criteria Compliance Requirement
Joint Venture
Single All
Requirement Each Lead/One
Entity Partners
Partner Partner
Combined
Average Annual Construction Turnover
Minimum average annual must meet must meet must meet must meet
construction turnover of requirement requirement . . 25%
....... .40%
.......
NRs. 180 million
………………….,
of the of the
calculated as total
requirement requirement
certified payments
received for construction
contracts in progress or
completed, within best
three years out of last
ten years..
Normally 1.5 times V/T, where V is Estimated Cost13
and T is
Contract Duration in Years.
 Evaluation and Qualification: Financial
Situation
Criteria Compliance Requirement
Joint Venture
Single
Requirement All Partners Each One
Entity
Combined Partner Partner
Financial Resources
Using Forms FIN – 3 and FIN must meet must meet must meet must meet
- 4 in Section IV (Bidding requirement requirement . . . 25%
...... . . .40%
.....
Forms) the Bidder must
demonstrate access to, or of the of the
availability of, financial requirement requirement
resources such as liquid assets,
unencumbered real assets,
lines of credit, and other Not to Exceed Cash Flow requirement for
financial means, other than any six month based on Straight Line
contractual advance payments Projection. Range is generally 4 to 6
to meet its current contract month.
commitments, plus:
the following cash-flow
40 million
requirement NRs ………..……………
 Evaluation and Qualification: Experience
Criteria Compliance Requirement
Joint Venture
Single
Requirement All Partners Each One
Entity
Combined Partner Partner
General Construction Experience
Experience under must meet not applicable must meet not applicable
construction contracts in requirement requirement
the role of contractor,
subcontractor, or
management contractor
5
for at least the last …….
years prior to the
applications submission
deadline.
Time Period is normally 3-5 Years, according to nature of the works.
15
 Evaluation and Qualification: Experience
Criteria Compliance Requirement
Joint Venture
Single All
Requirement Each One
Entity Partners
Partner Partner
Combined
Specific Construction Experience: Contracts of Similar Size and Nature
Participation as Prime contractor, must meet must meet not applicable not applicable
management contractor, or requirement requirement
subcontractor, in at least ….…. 1
contracts within the last ten (10)
years, each with a value of at least
NRs 96….…………...
million that have been
successfully or are substantially
completed and that are similar to
the proposed works. The similarity
shall be based on the physical size,
complexity, methods, technology Range is 1 to 2 Contracts
or other characteristics as
described in Section VI, Works Usually 80% of the Estimated value of the
Requirements. Contract
 Evaluation and Qualification: Experience
Criteria Compliance Requirement
Joint Venture
Single All
Requirement Each One
Entity Partners
Partner Partner
Combined
Specific Construction Experience: Construction Experience in Key Activities
For the above or other must meet must meet not not applicable
contracts executed all all applicable
during the period requirements requirements
stipulated in 2.4.2(a)
above, a minimum
construction experience
in the following key
activities:

Brickwork:
Concrete work: 17
Evaluation and Qualification: Personnel
Total Work Experience
No. Position Experience In Similar
[years] Works [years]
1 Contract Manager/Engineer-1 10 5
2 Sub-Engineer -2 5 3
3 Lab-technician-1 5 3

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Evaluation and Qualification: Equipment

Equipment Type and Minimum Number

No.
Characteristics Required

1 Level ? 1
2 Needle Vibrator? 1
3 Excavator ? 1

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 Bidding Forms
Forms provided by the Employer that the Bidder
must complete and include in its Bid
Standard Bidding Forms are:
– Letter of Bid (Technical/Price)
– Bid Security / Bid-Securing Declaration
– Technical Proposal Format
– Personnel/Equipment Forms
– Bidder’s Qualification Forms

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 Bidding Forms
Letter of Bid (Technical/Price)
Constitutes formal confirmation by bidder to execute and complete
the works specified
Bid Security: Form of unconditional bank guarantee
Purpose: To ensure that validity of bid will be maintained until
contract is awarded or until expiration of bid validity, and until
performance guarantee is furnished
Technical Proposal
PER – 1, PER – 2, Equipment, Site Organization, Method Statement,
Mobilization Schedule, Construction Schedule
Bidder’s Qualification Forms
ELI – 1, ELI – 2, LIT – 1, FIN – 1, FIN – 2, FIN – 3, FIN – 4, EXP – 1, EXP –
2(a), EXP – 2(b).

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Preparation of Specs. and BOQ
• Precise and clear Technical Specification
• Permit widest possible competition
• Clear statement of the required standards of
materials, Plant, other supplies, and workmanship
• Specifications not to be restrictive
• Required quantity with cross reference to
specification

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 General Conditions of Contract (GCC)
This Section of the Bidding Documents should provide:
– Information on Matters governing the performance
of the Contractor
– Payments under the Contract
– Matters affecting the risks, rights, and obligations of
the parties
If duplication of a subject is inevitable in the different
sections of the documents, care must be exercised to
avoid contradictions between clauses dealing with the
same matter.
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 General Conditions of Contract (GCC)
 To be read in conjunction with the Special Conditions of
Contract and other documents as listed in Bidding
document,
 Should fairly express the Rights & Obligations of both
parties,
 To be written in Simple language and Standard clauses
with no change,
 Standard CoC can be different for Large, Medium, Small,
admeasurement, lump sum and design and build contracts
 GCC cannot be Changed /modified- Modification shall be
made in SCC, If new clauses is necessary then such
clauses need to be added in SCC and the information to
this regard need to mention in GCC to that extent
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 Special Conditions of Contract (SCC)
Special Conditions of Contract provides contract specific
information in relation to Clauses in CoC,
If provisions in CoC are not relevant to the Contract, those
should be marked “NA” (Not applicable).
If provisions in CoC are not sufficient to describe the
contract specific information, those clauses may be modified
or some new provisions may be added, as needed.
Special Conditions of Contract to be filled by the Employer
before issuance of Bidding documents

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 Special Conditions of Contract
GCC 19.1 5. . The minimum for insurance of other property is:
with unlimited number of occurrences NRs. 1,000,000.00
6. . The maximum deductible for insurance of other property is :
NRs. 50,000.00
7. The minimum cover for personal injury or death insurance
i. for the Contractor’s employees is that specified in the Labour act of Nepal
and
ii. for other people is : NRs. 1,000,000.00 with an unlimited number of
occurrences
Depend upon the type of property needed and the rate of insurance
companies need to be verified

GCC 20.1 Site Investigation Reports are: .................................................

GCC 23.1 The following shall be designed by the Contractor: [insert as appropriate]

GCC 26.1 The Site Possession Date(s) shall be: 15 days?

GCC 30.1 The place of arbitration shall be: [insert place]
Kathmandu, Nepal
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 Special Conditions of Contract
GCC 1.1(q) The Employer is ........(name..)...................

GCC 1.1 (v) The Intended Completion Date for the whole of the Works shall be ...
12 months

GCC 1.1(bb) & The Project Manager is Mr./Ms A/B [insert name of Project Manager]
10.1
The Project Manager and Engineer are synonyms.

GCC 1.1 (ee) The Site is located at ... [insert location] and is defined in drawings No.

GCC 1.1 (hh) The Start Date shall be ... .. [insert date]

GCC 1.1 (ll) The Works consist of ... ...... [insert the name of Works to be completed by the
Contractor].

GCC 2.2 Sectional Completions are: ... .... .. [insert detail if applicable]

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 Special Conditions of Contract
GCC 2.3(i) The following documents also form part of the Contract: ...............................

GCC 3.1 The language of the contract is ENGLISH / NEPALI

The law that applies to the Contract is the law of NEPAL.

GCC 11.1 The Project Manager ……….

may Delegate any of his duties and responsibilities

GCC 14.1 Schedule of other contractors ……..[Insert details as appropriate]

GCC 19.1 The minimum insurance amounts and deductibles shall be:
1. The minimum cover for loss of or damage to the Works, Plant and
Materials is: 110 % of the Contract Amount
2. The maximum deductible for insurance of the Works and of Plant and
Materials is: NRs. 100,000.00
3. The minimum cover for loss or damage to Equipment is :
NRs. 1,000,000.00
4. . The maximum deductible for insurance of Equipment is:
NRs. 50,000.00

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 Special Conditions of Contract
GCC 34.1 The Contractor shall submit for approval a Program for the Works
15/30 days from the date of the Letter of Acceptance.
within ……………
GCC 34.3 60/90
The period between Program updates is …...... ........ days.
The amount to be withheld for late submission of an updated
NRs. 100,000.00?
Program is ...............

GCC 42.1 365

The Defects Liability Period is: ....... days.

GCC 49.1 [insert the prevailing interest rate …………..] Ten percent?

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 Special Conditions of Contract
is not

does not

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Contract IS subject to PA in accordance with clause 53.6 in our case.
 Special Conditions of Contract
GCC 56.1 The Bonus for the whole of the Works is ........................ per day. The maximum
amount of Bonus for the whole of the Works is ........................of the final
Contract Price. 0.05 % BUT only when time fixed properly
GCC 57.1 The Advance Payments shall be: .................. and shall be paid to the
20%??
Contractor no later than ......in two installments............................
30 days?, if not paid: Compensation Event
GCC 57.3 Deductions from invoice : when bill amount Exceeds 30% / Deduction will be
at …………completely repaid prior to the end of 80% of the approved contract
5%
period.
GCC 58.1 The Performance Security amount is .....
Performance Security Amount = [(0.85 x Cost Estimate –Bid
.............................. Price) x 0.5] + 5% of Bid Price.
[insert amount including an additional amount based on ITB 40.1 and/or
ITB 35.5 if the Employer has increased the Performance Security
amount] Not Applicable ???
GCC 71.1 The date by which operating and maintenance manuals are required
is .................
30 days after completion?? DLP ??
The date by which “as built” drawings are required is .....................
GCC 71.2 The amount to be withheld for failing to produce “as built” drawings and/or
operating and maintenance manuals by the date required in GCC 58.1
is ..........................
NRs. 10,00,000.00???
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200 days
 Special Conditions of Contract
GCC 80 The Project Manager has to obtain the specific approval of the Employer for
taking any of the following actions:
a. Approving subcontracting of any part of the works under General Conditions
of Contract Clause 13;
b. Certifying additional costs determined under General Conditions of Contract
Clause 50;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under General
Conditions of Contract Clause 35;
e. Issuing a Variation under General Conditions of Contract Clause 1 and 46,
except in an emergency situation, as reasonably determined by the Engineer;
emergency situation may be defined as the situation when protective
measures must be taken for the safety of life or of the works or of adjoining
property.
f. Adjustment of rates under General Conditions of Contract Clause 45;

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 Exercise
Bid Document Preparation
A National competitive bidding was solicited by a Project (PE) for
the construction of a Modern Office building complex.

The work has to be completed in 12 months’ time.

The estimated cost of the works is 120 million.

On the basis of given information prepare the BDS-Qualification

criteria and Special Conditions of the Contract for the Bidding
Documents for construction works.

Exercise Document
B2 TRAINING ON PROCUREMENT OF WORKS AND CONSULTANCY
SERVICES

IPFMRP – CDP Project

34