Bidding Documents

Soji Gbayesola
1
Importance of Procurement

 Critical to project implementation

 Large amount involved and Packaging
 Perception of fairness

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Pre-qualification of Bidders

 Limit invitation to firms capable of providing

goods/works in the required quantity, quality and time.

 for domestic preferences with same capability & finance

 Criteria:
 Track record

 experience

 financial position

 after-sales service.

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Standard Pre-qualification
 INVITATION FOR PRE-QUALIFICATION
 Requirements
 Certificate of registration….CAC
 Evidence of current tax clearance
 Audited Account for last 3years
 Evidence of similar job executed in the last 3 years
(should be verifiable)
 Evidence of financial capability &Bank support
 Name & address of Banker
 Company profile, Names, Qualifications of
key personnel
 Evidence of maintenance capability and after
sales services
 Evidence of registration of staff of the company
under the National Pension Scheme

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Standard Pre-qualification Document
 INVITATION FOR PRE-QUALIFICATION
 INSTRUCTIONS TO APPLICANTS
 Description of Works/Goods
 Type of Contract
 Clarification
 QUALIFICATION CRITERIA
 General Experience
 Personnel/Equipment Capabilities
 Financial Position
 Litigation/Arbitration Record
 JOINT VENTURES
 UPDATING INFORMATION
 DOMESTIC PREFERENCE
 APPLICATION/INFORMATION FORMS
ONLY PREQUALIFIED FIRMS ARE INVITED TO BID

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Bidding Documents
Purpose
 Instructions to Bidders on
procedure
 Description of
Good/works/service to be
procured
 Inform criteria for evaluation
 Define conditions of contracts
including method of payment
 ensure that selected bidder has
required experience and
capacity.

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Components
 Notification/Invitation for bids
adverts- general or special coverage
 Instructions to bidders
 Conditions of contract (general/special)
 Technical specifications
 Bill of Quantities/Schedule of activities
 Bid form, contract form, security formats
 Clarification of bidding documents
 Amendment of bidding documents

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Standard Bid Documents
 CONTENTS
SECTION SUBJECT
 Invitation for Bids (IFB)
 Instructions To Bidders (ITB)
 Bidding Data Sheet
 General Conditions of Contract (GCC)
 Special Conditions of Contracts (SCC)
 Technical Specifications/Schedule of Requirements
 Bid form/Bill of Quantities/Price Schedules
 Contract/bid security and performance security forms
 Bank guarantee form
 Explanatory Notes
 Post-qualification
 Disputes Resolution Procedure

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Instructions to Bidders

 Works/ Goods Description & Completion Time

 Eligibility & Capability Qualifications
 Procedure for Clarifications
 Bid Preparation – Format, Copies
 Bid Submission Procedures
 Language
 Pricing and Currencies
 Price Adjustment Provisions (If Any)
 Modification and Withdrawal

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Instructions to Bidders

 Bid Securities, Sureties, etc.

 Closing Date
 Bid Opening Time, Date, Place
 Corrections
 Bid Evaluation Criteria and Procedures
 Domestic Preferences
 Bid Validity
 Procedures for Contract Award

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General Conditions of Contract

 Definition of Terms
 Rights and Obligations of Both Parties
 Procedure for Issuance/Documentation and Supervision
 Procedure for Measurement
 Procedure for Variations (Change of Payment)
 Price Adjustment Procedure
 Procedure, Terms and Currencies of Payment

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General Conditions of Contract

 Procedure, Terms and Currencies of Payment

 Procedure for Performance Securities
 Force Majeure
 Procedure for Damages, Penalties for Delay
 Procedure for Termination
 Mode and Forum for Settling Disputes
 Applicable Language & Law

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Special Conditions of Contract
(Complementary/Modify the GCOC)

 Particular Definition of
Employer/Engineer/Contractor
 Specific Amount of Performance Security
 Specific Procedures for Supervision
 Special Requirements for Insurance
 Specific Payments Terms/Currency
 Price Adjustment Mechanism
 Other Deletions/Additions to General Conditions
 Many Special Conditions Cab Be Standardized
Within Country

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Technical Documents
• SPECIFICATIONS
 Standards of Materials, Workmanship, Performance
 Sufficiently Specific to Elicit Responsive Bids
 Not Prejudice Participation By Any Qualified Bidder
 Merit in Country Standardization
• MEASUREMENT OF WORKS PROGRESS
 Bill of Quantities (Define Method)
 Schedule of Activities/Components/Milestones
• DRAWINGS
 Fully Detailed or Outline According to Type of Contract
 Site Survey, Soil Studies, Bore-holes, Samples

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Preparation of Bids
 Language
 Documentation
 Bid form
 Bid Price
 Bid Currency
 Eligibility & Qualification
 Eligibility & Conformity
 Bid Security
 Period of Validity
 Format & Signature

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Submission of Bids

 Sealing & Marking of Bids

 Deadline for Submission
 Lateness
 Modification & Withdrawal

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Two Stage Bidding

 Projects With Different Technical Solutions (e.g.

Industrial Plants, Major Bridges)
 First Stage
 Invite Technical Proposals
 Discuss and Finalize Technical
Specifications
 Second Stage
 Invite Financial proposal on
Revised Specifications

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Watch out!!!
 UNACCEPTABLE DEVIATIONS
• Late Bid Submission
• Ineligible Bidder
• Unsigned Bid
• Unacceptable Bid Security
• Bidder/JV Not As Pre-qualified
• Price Adjustment Vs Fixed Price
• Unacceptable Alternative Design
• Non-conforming Time Phasing
• Unacceptable Subcontracting
• Qualification of Arbitration Rules, Location, etc.

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 DEBATABLE DEVIATIONS
• Different Payment Terms
• Noncompliance Local Regulations
- Labour, Imports, Duties, Taxes, etc.
• Completion/Maintenance Periods
• Special Methods of Construction
• Questionable Subcontracting
• Omission of (Minor) Works/Items
• Limited Liabilities
• Modified Liquidated Damages
• Different Codes/Standards
- Materials, Workmanship, Design, etc.

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Post Qualification
 ONLY FOR SELECTED BIDDER
 CRITERIA (GOODS)
- Capacity
- Technical Capability
- Product Reputation
- Financial Resources
- Parts and Service
- Past Performance
 CRITERIA (WORKS)
- Past Experience (Size/Complexity)
- Personnel Resources
- Equipment Resources
- Financial Capacity
- Litigation/Arbitration History
If there was Pre-qualification, Confirm that Bidder's Status
is Substantially the Same as at Pre-qualification

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Processing Issues
 Registration of Contractors
 Procurement plans…..release of funds
 Required bid security
 Performance bank guarantee
 Mobilisation fee
 Interest on delay payment
 Services of international agents

Tenders splitting a serious offence!!!!!!!

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