PWD Vol-2, Chapter-9, Step 3

Step 3. Preparation of Bidding Documents

The project office shall prepare the bidding documents with in-house staff or by employing a consultant. It is common practice for the scope of work of the engineering design consultant to include assisting the implementing agency to slice the project into appropriate contract packages and to prepare the bidding documents.

The SBDs contained in PWD Part III shall be used for the procurement of all construction works where the design has been prepared by the implementing agency. Special bidding documents (not included in PWD Part III) should be used in design-build, turnkey or BOT contracts. The bidding documents shall furnish all information necessary for a perspective bidder to prepare a bid for the works to be provided. While the detail and complexity of these documents vary with the type of standard bidding document selected. They generally include:

1. Notice of Invitation for Bids
   
2. Letter of Invitation for Bids
   
3. Instruction to Bidders
   
4. Form of Bid
   
5. Form of Agreement
   
6. Conditions of Contract, both General and Particular
   
7. Specification and Drawings
   
8. Bill of Quantities, or Schedule of Prices
   
9. Bidding Data sheet or Appendix
   
10. Bid Security form
    
11. Performance Security form
    
12. Bank Guarantee form for advance payment
    
13. List of additional information required from bidders
    
14. Qualification form and instructions to bidders, where post-qualification is used.
    

PPA 2007, Chapter 3, Section 13

13. Bidding Documents to be Prepared:

(1) Prior to invitation to bid, the Public Entity shall have to prepare the bidding documents.

(2) The bidding documents under Sub-section (1) shall contain the following matters:-

(a) The nature of procurement, time required for procurement and technical specifications thereof,

(b) Where bids are invited without carrying out prequalification, the criteria for qualification of bidders, as referred to in Section 10,

(c) Where there is provision of site visit, information relating thereto,

(d) If any bid conference has to be held prior to submission of bid, information relating to such conference,

(e) Instructions for preparing and submitting bids, the place for the submission of bids, the deadline for the submission of bids and the place, date and time for the opening of bids,

(f) Component of price, the currency or currencies in which the bid price may be stated, the currency and the source and date of the related exchange rate to be used for comparison of bids,

(g) The criteria and methodology for the evaluation of bids and the selection of bidder,

(h) The preferences to be given, if any, for domestic goods and local construction entrepreneurs, provision relating thereto,

(i) Where any goods or construction works are to be procured by making separate lots and packages, such lots and packages and the manner of evaluation thereof,

(j) Where alternatives to the technical specifications are also invited, the manner of evaluation of such alternatives,

(k) Where a bid can be submitted even only for a portion of the goods, construction works or services to be procured, a description of such portion or portions,

(l) The validity period of bid,

(m) The amount, type, acceptable form and validity period of security to be furnished for bid, performance or other necessary matters,

(n) Where a bid security is required, provision that the period of that security shall exceed by thirty days to the validity period of bid,

(o) The terms and conditions of the procurement contract under Section 52 and the modality of coming for the entry into force of that contract,

(p) Information that bids shall not be processed in the event of conflict of interest or information relating to legal action for fraud or corruption,

(q) Provision that any bidder may make an application, for review, against any error or decision made by the Public Entity in carrying out bid proceedings,

(r) Provision that the documents proving technical capacity and financial proposal (bid price) have to be submitted in one envelope, and

(s) Such other matters determined by the Public Procurement Monitoring Office as to be involved in the prequalification documents or bidding documents.

(3) The Public Entity shall make available the bidding documents upon collection of the charges as prescribed to any person, firm, organization or company that requests for the bidding documents in accordance with the notice for invitation to bids, and where prequalification is required to participate in the procurement proceedings, to those persons, firms, organizations or companies that have been pre-qualified and request for such documents.

PPR - 2007: Chapter 5

37. Matters to be Stated in Bidding Documents:

The Public Entity may state the following matters, in addition to the matters referred to in Section 13 of the Act, in the bidding documents according to necessity:-

• Plan, drawing of the proposed work,
  
• Bill of quantities,
  
• Quantity of goods,
  
• Incidental work to be done by the bidder,
  
• Time of supplying goods, completing construction work,
  
• Provision regarding warranty and repair and maintenance,
  
• Type and quantity of necessary training and supervision to be provided by the bidder,
  
• Provision that the goods or spare parts to be supplied must be new and original,
  
• Source of financing required for proposed procurement.
  

• Name and address of the agent,
  
• Figure of commission which the agent is to receive, the type of currency and the mode of payment,
  
• Any other terms and conditions with the agent,
  
• If s/he is a local agent, the attested copy of his/her Permanent Account Number Registration Certificate and a letter of acceptance by him/her to become agent,
  

• Registration certificate of firm, organization or company,
  
• Business registration license,
  

Explanation: For the purpose of this clause the term "business registration license" means a certificate obtained by a construction entrepreneur pursuant to prevailing law relating to construction enterprises with the objective of carrying out a construction business.

• Value Added Tax registration certificate and Permanent Account Number (PAN) registration certificate,
  
• Tax clearance certificate or the document of having submitted tax returns of the period specified by the Public Entity obtained from the Inland Revenue Office,
  
• A written declaration made by the bidder with a statement that s/he is not ineligible to participate in the procurement proceedings; has no conflict of interest in the proposed procurement proceedings, and has not been punished for a profession or business related offense.
  
• Other documents considered necessary by the Public Entity.
  

• Plan, drawing and design of the proposed work,
  
• Bill of quantities,
  
• Relevant physical and chemical properties and anticipated performance characteristics of goods,
  
• Technical configuration,
  
• Whether the spare parts and the specified services required during the life span of goods will be available or not,
  
• Descriptive booklet or sample of goods to be submitted together with the bid,
  
• Description of the guarantee of anticipated performance and quality,
  
• Provision for warranty and maintenance,
  
• If the goods cause any environmental impact, such impact and measures to be taken to mitigate such impact,
  
• The criteria and method to be applied to test whether the supplied goods are in compliance with the specifications set forth in the bidding documents or not, and
  
• Other necessary matters prescribed by the Public Entity.
  

43. Matters to be Stated in Technical Specifications of Construction Works: In stating technical specifications of a construction work in the bidding documents, the Public Entity shall, according to necessity, state the following matters:-

• The scope and objectives of the proposed construction work,
  
• Physical nature and condition of the construction site,
  
• Description of such work as design, construction, erection of equipment, production, installation of the proposed construction work,
  
• Bill of quantities containing the estimated quantity of each item of the construction work,
  
• If the construction work causes environmental impact, its description and the measures to be taken to mitigate such impact,
  
• If the work also involves the mechanical, sanitary and plumbing and electricity installation works, special technical specifications thereof,
  
• Detailed description of the equipment and spare parts to be supplied,(h) Description of the guarantee of anticipated performance or quality,
  
• Inspection and test to be carried out at various stages of construction work,
  
• Work completion test,
  
• The technical document, as built drawings, the operating manual according to necessity required to be provided by the construction entrepreneur upon completion of the construction work,
  
• The inspection and performance test to be carried out by the Public Entity for acceptance of the construction work,
  
• Schedule of time for commencing and completing the construction work, and
  
• Other necessary matters prescribed by the concerned Public Entity.
  

44. Matters to be Stated in Specifications of Other Services: In stating the specifications of other services, the bidding document shall state the following matters according to necessity:-

• The purpose and scope of the service,
  
• Anticipated performance, the work and services to be discharged by the service provider,
  
• The descriptive booklet or a sample to be provided by the bidder together with bid,
  
• Terms and conditions to be complied by the service provider,
  
• Criteria and method to evaluate the services provided by the service provider,
  
• Quality testing and inspection of the work or service,
  
• Description of the guarantee of performance and quality,
  
• Type and quantity of the training to be provided and supervision to be made by the service provider, and
  
• Other necessary matters prescribed by the Public Entity.
  

45. Documents to be Included in Bidding Documents: A Public Entity shall have to include the following documents in the bidding documents according to necessity by taking into consideration the nature of the goods, construction work and other services to be procured:-

• Instructions to bidders and bid form,
  
• Format of bid security,
  
• Format of performance security,
  
• Format of advance payment security,
  
• The conditions and the sample of procurement contract,
  
• Specifications and drawings,
  
• Schedule of commencement and completion of work, currency of payment, source from which and place where materials may be available, and
  
• Other necessary documents.
  

46. Instruction to Prepare and Submit the Bid: (1) In providing instructions in the bidding documents for preparing and submitting the bid, a Public Entity may provide instructions in respect of the following matters:-

• The language in which the bid is to be prepared,
  
• Manner of expressing price in accordance with the International Commercial Terms (INCOTERMS) used in International Trade,
  
• Necessary information on joint venture,
  
• List of the documents to be submitted along with bid by the bidder,
  
• The sample of goods and number of samples to be submitted by the bidder to the concerned Public Entity,
  
• For procurement of goods, whether or not there requires to be stated the list of spare parts of such goods recommended by the manufacturer and the quantity of stock with him/her of each spare parts, their per unit price and indication of whether the price of these spare parts will escalate or not after the expiry of the contract,
  
• Requirements for the bidder to state in his/her bid the manufacturer of the goods to be supplied, country of manufacture, brand, model and catalog number,
  
• The name, position and address of the employee designated by the Public Entity to clarify any matters on procurement proceedings the bidder wants to inquire from it,
  
• If the bidder has to provide training to the employees of the Public Entity or transfer technology to such entity as per the procurement contract, matters relating thereto,
  
• Statement that the Public Entity reserves the right to accept or reject the submitted bids; and
  
• Other matters considered necessary by the Public Entity.
  

Sample of Bidding Document for Bridge Works/ Sunkoshi Bridge Bill of Quantities

Refer Appendix Sunkoshi Bridge ICB

 

SBD (For medium contract for construction of bridge) Section III Heading C Preparation of Bids clause 11 to 18

C. Preparation of Bids

11. Language of Bid

11.1 All documents relating to the bid shall be in English.

12. Documents Comprising the Bid

12.1 The bid submitted by the Bidder shall comprise the following:
i. The bid (in the format indicated in Section III including SCC);
ii. Bid Security;
iii. Priced Bill of Quantities;
iv. Qualification Information Form and Documents;
v. Information on eligibility;
vi. Any other materials required to be completed and submitted by Bidders, as specified in the Bidding Data.

13. Bid Prices

13.1 The Contract shall be for the whole Works, as described in Sub-Clause 1.1, based on the priced Bill of Quantities submitted by the Bidder.

13.2 The Bidder shall fill in rates and prices for all items of the Works described in the Bill of Quantities. Items for which no rate or price is entered by the Bidder will not be paid for by the Employer when executed and shall be deemed covered by the other rates and prices in the Bill of Quantities.

13.3 All duties, taxes and other levies payable by the Contractor under the Contract, or for any other cause, as of the date 30 days prior to the deadline for submission of Bids, shall be included in the rates, prices and total Bid Price submitted by the Bidder.

13.4 The rates and prices quoted by the Bidder shall be subject to adjustment during the performance of the Contract if provided for in the Bidding Data and SCC and the provisions of Clause 46 of the General Conditions of Contract. The Bidder shall submit with the bid all the information required under the SCC and Clause 46 of the General Conditions of Contract.]

13.5 Local Agent: Statement and disclosure of Local Agent. A foreign Bidder wishing to have or already having a local agent should state the following:

a. Name and address of the agent/representative.
b. The agent/representative providing type of services.
c. Amount of commission the agent/representative is entitled to receive, currency of payment and procedure of payment.
d. Other agreement with agent/representative, if any.
e. In case the agent/representative is a Nepali citizen or firm then the attested copy of PAN and letter of acceptance to be the local agent
f. The Bidder should certify as follows:

 

“We certify that the statement and disclosure made by us on the above are complete and true to the best of our knowledge and belief”.

If the agent has not been appointed:

a. Source of information about tender invitation,
15 The remuneration given to the individual or firm/company or organization to work on his behalf for submitting tender, representation in the bid opening and other required action in connection with the tender,
b. Transfer or handover an evidence of foreign currency exchanged which required to be submitted with the tender,
c. If the bank account of any Nepali citizen has been used for the exchange of foreign currency specify the name of the individual and his address. If the foreign currency has been exchanged by self then the certificate of currency exchanged issued by the bank.

 

13.6 If a foreign Bidder in his Bid, has not provided the information mentioned in Sub Clause 13.5 or has submitted his bid stating that the Bidder does not have a local agent and later it is proved that the bidder has a local agent or it is proved that the commission mentioned in the Bid is less than the commission received by the local agent then the Employer shall initiate proceedings to black list such bidder.

13.7 Discount: If the Bidder intends to offer any discount, it should always be expressed in percentage and that will be applicable to each unit rate

14. Currencies of Bid and Payment

14.1 The unit rates and prices shall be quoted by the Bidder entirely in Nepalese Rupees. Foreign currency requirements of the Bidder, if any, for import of equipment and materials not produced or not available in Nepal shall be indicated as a percentage of the Bid Price (excluding provisional sums) and shall be paid by the Employer in the foreign currencies so specified by the Bidder as an Advance Payment pursuant to Clause 50 of the General Conditions of Contract up to a limit of 20% of the contract price. Foreign currency shall be payable at the option of the Bidder in up to three foreign currencies of any country acceptable to the Employer.

14.2 The rates of exchange to be used by the Bidder in arriving at the local currency equivalent and the percentage(s) mentioned in Sub-Clause 14.1 above shall be the selling exchange rates used for similar transactions as published by Nepal Rastra Bank prevailing on the date 28 days prior to the latest deadline for submission of Bids. These exchange rates shall apply for all payments including Advance Payment to be made by the Employer pursuant to Clause 50 of the General Conditions of Contract so that no exchange risk will be borne by the Bidder. If the Bidder uses other rates of exchange, the provisions of Sub-Clause 28.1 shall apply. In any case, payments will be computed using the rates quoted in the bid.

14.3 Bidders shall indicate details of their expected foreign currency requirements in the bid.

14.4 Bidders may be required by the Employer to clarify their foreign currency requirements and to substantiate that the amounts included in the rates and prices and in the SCC are reasonable and responsive to Sub-Clause 14.1.

15. Bid Validity

15.1 Bids shall remain valid for the period10 specified in the Bidding Data.

15.2 In exceptional circumstances, the Employer may request that the Bidders extend the period of validity for a specified additional period. The request and the Bidders’ responses shall be made in writing or by fax. A Bidder may refuse the request without forfeiting the Bid Security. A Bidder agreeing to the request will not be required or permitted to otherwise modify the bid, but will be required to extend the validity of Bid Security for the period of the extension, and in compliance with Sub-Clause 16 in all respects.

15.3 In the case of contracts in which the Contract Price is fixed (not subject to price adjustment), if the period of bid validity is extended beyond 56 days, the amounts payable in local and foreign currency to the Bidder selected for award shall be increased by applying to both the local and the foreign11 currency component of the payments, respectively, the factors specified in the Bidding Data or in the request for extension, for the period of delay beyond 56 days after the expiry of the initial bid validity, up to the notification of award. Bid evaluation will be based on the Bid Prices without taking the above correction into consideration.

16. Bid Security

16.1 The Bidder shall furnish, as part of the bid, a Bid Security in Nepalese Rupees in the amount specified in the Invitation for Bids.12

16.2 The Bid Security shall, at the Bidder’s option, be in the form of earnest money, bank draft or a bank guarantee from a reputable bank in Nepal acceptable to the Employer or from a foreign bank endorsed by the local bank in Nepal acceptable to the Employer. The format of the bank guarantee shall be in accordance with the form of Bid Security included in Section IX; other formats may be permitted, subject to the prior approval of the Employer. The Bid Security shall remain valid for a period of 30 days beyond the original validity period for the bid and any period of extension subsequently requested under Sub-Clause 15.2.

16.3 Any bid not accompanied by an acceptable Bid Security shall be rejected by the Employer. The Bid Security of a joint venture must define as “Bidder” all joint venture partners and list them in the following manner: a joint venture consisting of “______,” “______,” and “______”.

16.4 The Bid Security of unsuccessful Bidders will be returned within 30 days of the end of the bid validity period specified in Sub-Clause 15.1.

16.5 The Bid Security of the successful Bidder will be discharged when the Bidder has signed the Agreement and furnished the required Performance Security.

16.6 The Bid Security may be forfeited

a. if the Bidder withdraws the bid after bid opening during the period of bid validity; or

b. if the Bidder does not accept the correction of the Bid Price, pursuant to Clause 27; or

c. in the case of a successful Bidder, if the Bidder fails within the specified time limit to

(i) sign the Agreement; or
(ii) furnish the required Performance Security.

17. Alternative Proposals by Bidders

17.1 Bidders shall submit offers that comply with the requirements of the Bidding documents, including the basic technical design as indicated in the Drawings and Specifications. Alternatives will not be considered unless specifically allowed in the Bidding Data. If so allowed, Sub-Clause 17.2 shall govern.

17.2 If so allowed in the Bidding Data, Bidders wishing to offer technical alternatives to the requirements of the Bidding documents must also submit a bid that complies with the requirements of the Bidding documents, including the basic technical design as indicated in the Drawings and Specifications. In addition to submitting the basic bid, the Bidder shall provide all information necessary for a complete evaluation of the alternative by the Employer, including design calculations, technical specifications, breakdown of prices, proposed construction methods and other relevant details. Only the technical alternatives, if any, of the lowest evaluated Bidder conforming to the basic technical requirements shall be considered by the Employer.

18. Format and Signing of Bid

18.1 The Bidder shall prepare one original of the documents comprising the bid as described in Clause 12 of these Instructions to Bidders, bound with the volume containing the form of bid, and clearly marked “ORIGINAL.” In addition, the Bidder shall submit one copy of the bid clearly marked as “COPY.” In the event of discrepancy between them, the original shall prevail.

18.2 The original and a copy of the bid shall be typed or written in indelible ink and shall be signed by a person or persons duly authorised to sign on behalf of the Bidder. This authorization shall consist of a written confirmation as specified in the Bidding Data and shall be attached to the bid. The name and position held by each person signing the authorization must be typed or printed below the signature. All pages of the bid where entries or amendments have been made shall be initialled by the person or persons signing the bid.

18.3 The bid shall contain no alterations or additions, except those to comply with instructions issued by the Employer, or as necessary to correct errors made by the Bidder, in which case such corrections shall be initialled by the person or persons signing the bid.

18.4 The Bidder shall furnish information as described in the form of bid on commissions or gratuities, if any, paid or to be paid to agents relating to this bid, and to contract execution if the Bidder is awarded the Contract.