Section 2. Special Instructions To Tenderers

Clause

A.      General

[the Employer is the unit or subdivision of the Procuring Entity which will issue the Notification of Award and sign the Contract Agreement with the successful Tenderer. Frequently the Employer is represented by a Chief Engineer, Superintending Engineer, Executive Engineer, project director or other assigned person. See Regulations for definition of a Procuring Entity.]

The number and identification of lots comprising the Tender lot are:

[if there is more than one lot, individual lots are to be identified in conformity with Section 6: Schedule of Works].

Option A: Restricted Tendering method:

The Invitation for Tenders is open to all Tenderers enlisted with [name of Employer]. Option B: Open Tendering method

All Tenderers regardless of whether enlisted or not enlisted with the Employer may submit Tenders providing they otherwise qualify.

The required average annual turnover shall be greater than Naira [insert amount] over the last [insert number] years:

As a guide, the required average annual turn over should be at least equal to the estimated annual cash flow for the Contract. (It is preferable to be more), and the period should be about 5 years minimum.

Example 1:

Estimated Contract Value:                   Naira 10 million

Contract period:                                  3 months

Monthly Cash flow: 30m N:3 =                       Naira 3.3 million

Estimated Annual Cash Flow:  12 x 3.3 m = Naira 39.6 M

[Required Average annual turnover would be Naira 40 million, using a multiplier of 1.0 as a minimum and rounding the figure, however it is not recommended to exceed a multiplier of 1.5].

Example 2:

Estimated Contract Value:                   Naira 5 million

Contract Period:                                  2 months

Monthly Cash flow: 5m N:2 =             Naira 2.5 million

Estimated Annual Cash Flow: 12 x 2.5 million = Naira  30 million

 [Required Average annual turnover would be Naira 30 million, using a multiplier of 1.0 as a minimum, however it is not recommended to exceed a multiplier of 1.5].                    

The required number of similar contracts completed shall be [insert number] over a period of [insert number] years.

[the minimum number will depend upon the size and type of construction work, and the Employer should make its own judgement based upon its experience in the sector and construction industry. For small contracts, it could be (1) similar work during the past 3 or 5 years].

The minimum amount of liquid assets and/or credit facilities net of other contractual commitments of the Tenderer shall be [insert amount].

[usually the required liquid assets are the equivalent of 2-6 months payment flow at the average construction rate (straight line distribution).  The actual period will depend on the speed with which the Employer will pay the Contractor’s monthly certificate, allowing time to prepare an invoice, for the Engineer’s time to certify it, and contingency period for preparing the cheque and making actual payment].

Example:

Contract Value:                                   Naira 10 million

Contract period:                                  3 months

Monthly payment: 10:3 =        Naira 3.3 million

Assuming work time:                            1 month

Invoice period:                                                0.5 month

Certification Time:                               0.5 month

Contingency Time:                               1 month

                                                            ————

                                                            3 months

Therefore, the minimum required liquid assets will be 3 x 3.3 m = Naira 9.9 million, 3 months cash flow based on the above assumptions.

B.      Tender Document

Attention:

Address:

Telephone:

Facsimile number:

Electronic mail address:

C.      Preparation of Tenders

[list the additional documents required]

[list the additional documents required].

[normally 45 to 60 days for Works of such a simple nature]

OR

A Tender Security will not be required:

[delete whichever is not required]

.  The Tender Security amount should be expressed as a fixed amount (around 2% and in no case exceeding 5% of the estimated contract value) for each lot. OR

A Tender Security shall not be required (this may be considered in the case of small works)]

[usually only two copies are needed, ask for more only if they are essential].

D.      Submission of Tenders

[indicate any markings that are required on inner and outer envelopes

Attention:

Address:

The deadline for the submission of Tenders is:

Time & Date

E.      Tender Opening and Evaluation

Address:

Time & Date:

[Tenders shall be opened immediately only in one place, but in no case more than one hour, after the deadline for submission of Tenders.]

F.      Award of Contract

[It should not be less than five (5) percent and not exceed ten (10) percent of the Contract Price. If, in addition, Retention Money is applied, the percentages of the Performance Security and the Retention Money combined should not exceed fifteen (15) percent . Higher percentages will require a more costly financing arrangement between the Tenderer and its Bank or financial provider, and will only increase the cost of the Tenders]

[The Performance Security shall be issued by a reputable bank or financial institution selected by the Tenderer and acceptable to the Employer. A Tenderer may request the Employer in advance if a particular issuing entity of a security is acceptable. If an issuing entity is foreign but the security is otherwise in conformity with the requirements in the Tender Document, the Employer shall not reject the security.]

Section 3.  General Conditions of Contract

1.         Definitions

(a)                Completion Certificate means the Certificate issued by the Engineer as evidence that the Contractor has executed the Works in all respects as per drawing, specifications, and Conditions of Contract.

(b)               The Completion Date is the date of completion of the Works as certified by the Engineer, in accordance with GCC Clause 18.

(c)                Contract means the Agreement entered into between the Employer and the Contractor to execute, complete and maintain the Works.

(d)               Contractor means the person or corporate body whose Tender to carry out the Works has been accepted by the Employer and is named as such in the SCC.

(e)                Contract Price means the price payable to the Contractor as specified in the Contract Agreement.

(f)                The Contractor’s Tender is the completed Tender Document including the priced offer submitted by the Contractor to the Employer.

(g)                Days means calendar days.

(h)               A Defect is any part of the Works not completed in accordance with the Contract.

(i)                 The Employer is the party named in the SCC who employs the Contractor to carry out the Works.

(j)                 The Engineer is the person named in the SCC, who is responsible for supervising the execution of the works and administering the Contract.

(k)               The Intended Completion Date is the date specified in the SCC on which the Contractor shall complete the Works and may be revised if extension of time or an acceleration order is issued by the Engineer.

(l)                 The Site is the area defined as such in the SCC.

(m)             The Works are what the Contract requires the Contractor to construct, install, and hand over to the Employer, as defined in the SCC.

2.      Interpretation & Documents forming the Contract

(a)                the signed Contract Agreement.

(b)               the letter of Notification of Award.

(c)                the completed Tender Submission Sheet as submitted by the Tenderer.

(d)  the priced Schedule of Works including the Technical Specifications as submitted by the Tenderer.

(g)  the Technical Specifications

(h)  the Drawings,

3.         Corrupt, Fraudulent, Collusive, Coercive or Obstructive Practices

(a)          exclude the Contractor from participation in the procurement proceedings concerned or reject a proposal for award; and

(b)          declare a Contractor ineligible, either indefinitely or for a stated period of time, from participation in procurement proceedings under public fund;

(c)          if it at any time determines that the Contractor has engaged in corrupt, fraudulent, collusive or coercive practices in competing for, or in executing, a Contract under public fund.

(a)  “corrupt practice” means offering, giving, or promising to give, directly or indirectly, to any officer or employee of a Procuring Entity or other governmental/private authority or individual a gratuity in any form, an employment or any other thing or service of value, as an inducement with respect to an act or decision of, or method followed by, a Procuring Entity in connection with the procurement proceeding;

(b) “fraudulent practice” means a misrepresentation or omission of facts in order to influence a procurement proceedings or the execution of a Contract to the detriment of the Employer;

(c)  “collusive practice” means a scheme or arrangement among two or more Tenderers with or without the knowledge of the Employer (prior to or after proposal submission) designed to establish Tender prices at artificial, non-competitive levels and to deprive the Employer of the benefits of free, open and genuine competition; and

(d) “coercive practice” means harming or threatening to harm, directly or indirectly, persons or their property to influence the procurement proceedings, or affect the execution of a Contract.

(e)     obstructive practice which means

i.      deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede relevant authorities’  investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or

ii.      acts intended to materially impede the exercise of the relevant authorities’ inspection and audit rights provided for under par. 3.2 (c) above.

4.         Governing Language and Law

5.         Engineer’s Decision

6.         Delegation

7.         Communications and Notices

8.         Sub- Contracting & Assigning

9.         Contractor’s Personnel

10.     Welfare of Labourers and wages

11.     Safety, Security and Protection of the Environment

(a)            have full regard for the safety of all persons entitled to be upon the Site and keep the Site and the Works in an orderly state;

(b)           provide and maintain at the Contractors own cost all lights, guards, fencing, warning signs and watching for the protection of the Works or for the safety on-site; and

(c)            (c) take all reasonable steps to protect the environment on and off the Site and to avoid damage or nuisance to persons or to property of the public or others resulting from pollution, noise or other causes arising as a consequence of the Contractors methods of operation.

12.     Access to the Site

13.     Documents, Information.

14.     Property

15.     Insurance

(a)            loss of or damage to the Works, Plant and Materials

(b)           loss of or damage to Equipment;

(c)            loss of or damage to property (except the Works, Plant, Materials and Equipment) in connection with the Contract; and

(d)           personal injury or death.

16.     Possession of the Site

17.     Commencement of Works

18.     Completion of Works

19.     Programme of Works

20.     Early Warning

21.     Compens- ation Events

(a)    the Employer does not give access to the Site or part of the Site by the Site Possession Date stated in the SCC; and

(b)    if the payment is delayed pursuant to Clause 25.1.

22.     Non-Scheduled Items of Works

23.  Contract Price

23.3   The Contractor shall be entirely responsible for all taxes, duties, license fees, and other such levies. The Engineer shall adjust the Contract Price if taxes, duties, and other levies are changed between the date 28 days before the submission of bids for the Contract and the date of the last Completion Certificate.

24.     Payment Certificates

25.     Payments and Currency

26.     Retention

27.     Liquidated Damages

28.     Performance Security

29.     Cost of Repairs

30.     Completion

31.     Correction of Defects

32.     Taking Over

33.     Final Account

34.     Termination

(a)            the Contractor stops work for more than twenty-eight (28) days when no stoppage of work is shown on the current Programme and the stoppage has not been authorised by the Engineer;

(b)           the Engineer gives notice that failure to correct a particular defect is a fundamental breach of Contract and the Contractor fails to correct it within a reasonable period of time determined by the Engineer;

(d)           the Contractor, in the judgment of the Employer, has engaged in corrupt or fraudulent practices, as defined in GCC Clause 3, in competing for or in executing the Contract; or

(e)            a payment certified by the Engineer is not paid to the Contractor by the Employer within seventy (70) days of the date of the Engineer’s certificate.

35.     Payment upon Termination

36.     Release from Performance

37.     Settlement of Disputes