FIDIC contracts and BEST PROCUREMENT PRACTI CE w fair apportioning of risks, rights and obligations between the parties w well TRIED long case history for earlier contracts w. Clear and complete conditions; time limits; provisions for adjudication Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate.
FIDIC contracts and BEST PROCUREMENT PRACTI CE w fair apportioning of risks, rights and obligations between the parties w well TRIED long case history for earlier contracts w. Clear and complete conditions; time limits; provisions for adjudication Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate.
FIDIC contracts and BEST PROCUREMENT PRACTI CE w fair apportioning of risks, rights and obligations between the parties w well TRIED long case history for earlier contracts w. Clear and complete conditions; time limits; provisions for adjudication Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate.
wj geI p|bj da aye Ministry of Electricity and Dams Dams Implementation Unit Contracts Directorate Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate FIDIC CONTRACTS CONSTRUCTI ON
PLANT AND DESI GN-BUI LD /
EPC/TURNKEY PROJ ECTS
SHORT FORM OF CONTRACT
CLI ENT/CONSULTANT MODEL SERVI CES AGREEMENT
Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate CONDITIONS OF CONTRACT Guide published 2001 published 1999 Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate CONTRACT CONTINUITY Employer / consultant design Contractor design Various formats Uniform format and contents Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate WHICH BOOK TO USE? STRAIGHTFORWARD PROJECT ? EMPLOYER DESIGN ? CONTRACTOR DESIGN plant and/or high unforeseen risks fixed price - lump sum little employer involvement no major unforeseen risks no no no DISCUSS IN DETAIL Employer s requirements with the Contractor, and negotiate a modified FIDIC contract no yes yes yes yes Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate FEATURES AND ADVANTAGES
fair apportioning of risks, rights and obligations between the parties BALANCED
WELL TRI ED
long case history for earlier contracts ACCEPTED
known and recognised; in wide use for international contracts SUPPORTED
recommended or required by development banks, etc. EFFECTI VE
clear and complete conditions; time limits; provisions for adjudication Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Key points: CONSTRUCTION Employer designs Engineer, working for the Employer Bill of Quantities Payments based upon measurements Certification of payments by Engineer Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Key points: PLANT& DESIGN-BUILD Contractor designs Engineer, working for the Employer Lump sum pricing Payments according to progress Certification of payments by Engineer Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Key points: EPC/TURNKEY PROJECTS Contractor designs and takes full responsibility Employer may appoint a Representative Fixed price, to cover risks taken on by Contractor Payments according to progress No certification of payments Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Key points: SHORT FORM Simple projects Design by either Employer may appoint a Representative Valuation as appropriate; to be agreed Payments according to value of Works executed and Materials and Plant delivered to site No certification of payments Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Key points: CLIENT/CONSULTANT Agreed Scope of Services: Appendix A Normal, Additional and Exceptional Services Normal Services priced as agreed Additional and Exceptional Services at rates agreed Payment schedule as agreed Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate FIDIC GUIDES The FIDIC Contracts Guide The White Book Guide Guide for the preparation of particular conditions (in the major contracts) Notes for Guidance (in the Short Form of Contract) Tendering Procedure and Pre-qualification forms Consultant Selection Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate USE OF FIDIC CONTRACTS Match contract and project Decide early on type of contract Draft by professionals Do not touch the General Conditions Buy originals Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate PRINCIPLES OF PROCUREMENT Effectiveness Economy Efficiency Accountability Transparency / confidentiality / Strong competition Publicity, wide participation Fair and equal conditions Standard procedures Standard documentation Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate PROCUREMENT CATEGORIES Goods Works Consultant services Other services Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate TENDERING PROCEDURES Development bank / public procurement procedures Open tendering / International Competitive Bidding Local tendering / National Competitive Bidding Restricted tendering / Limited Bidding Single source Two stage tendering Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate SELECTION PROCEDURES/CRITERIA Criteria defined and published in advance Economically most advantageous offer Quality based selection Quality and cost based selection Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Establishment Of Project Strategy Comprising: Procurement method Form of tendering Time schedules FIDIC TENDERING PROCEDURE( FOR CONSTRUCTION CONTRACTS) 1.0 ESTABLISHMENT of PROJECT STRATEGY Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Prepare Prequalification Documents Comprising: Letter of Invitation Information about prequalification procedure Project information Prequalification application 2.1 PREPARATION of PREQUALIFICATION DOCUMENTS Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 2.2 INVITATION TO PREQUALIFY Place Prequalification Advertisement In Press, Embassies etc. as appropriate stating: Employer & Engineer Outline of project (scope, location, programme, source of finance) Dates for issue of tender documents, & submission of tenders Instruction for applying for prequalification Minimum requirements for prequalification Submission date for contractors prequalification data Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 2.3 ISSUE & SUBMISSION OF PREQUALIFICATION DOCUMENTS Issue prequalification documents & Questionnaires requesting from each company/joint venture: Organisation & structure Experience in the intended type of work & the region Resources: - Managerial - Technical - Labour - Plant Financial Statement Current contract commitments Litigation history Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 2.4 ANALYSIS OF PREQUALIFICATION APPLICATIONS Analysis Prequalification Applications Data: Company/joint venture structure Experience Resources Financial Capability : Annual Turnover, Working Capital= Ratio of Current Assets to Current Liabilities ( > 1.0 ) General suitability Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 2.5 SELECTION OF TENDERERS Prepare List of Tenderers Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 2.6 NOTIFICATION OF APPLICANTS Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Notify all selected tenderers 3.1 PREPARATION OF TENDER DOCUMENTS Prepare Tender Documents: Letter of Invitation to tender Instructions to tenderers Condition of Contract Form of tender and appendices Drawings Bill of Quantities Schedule of additional information Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 3.2 ISSUE OF TENDER DOCUMENTS Issue tender documents to contractors on list of tenderers Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 3.3 VISIT TO SITE BY TENDERERS Arrange Date and Time for Visit to Site Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 3.4 TENDERERS QUERIES A) CORRESPONDENCE METHOD B) TENDERERS CONFERENCE METHOD A) Prepare replies A) Inform tenders present of queries and replies submitted in writing replies to queries at conference Send Minutes to all Tenderers ( Parity of Tendering) Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 3.5 ADDENDA TO TENDER DOCUMENTS Issue Addenda Including Replies to queries to all tenderers Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 3.6 SUBMISSION AND RECIPT OF TENDERS Record date and time of receipt Acknowledge receipt or return unopened tenders received late Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 4.1 OPENING OF TENDERS Tender opening by public or restricted opening: announce and record the names of tenderers and price, including price for alternative tenders if appropriate announce and record the names of tenderer (if any) disqualified due to late or non arrival of tenders Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 5.1 REVIEW OF TENDERS Establish conformity and completeness of tenders: Reject Substantially Unresponsive Tenders Establish conformity and completeness of tenders: Reject Substantially Unresponsive Tenders Establish conformity and completeness of tenders: Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 5.2 TENDERS CONTAINING DEVIATIONS Evaluate Deviations, Seek Clarifications Evaluate Deviations, Seek Clarification Evaluate Deviations Seek Clarification Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 5.3 ADJUDICATION OF TENDERS Assess tenders in accordance with evaluation criteria . Raise further points requiring clarification, if any. Complete evaluation. Check with funding agency. Reject non- conforming tenders & advise tenderer(s) concerned. Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 6.0 AWARD OF CONTRACT Decide on contract award, if necessary after pre- award discussion Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 6.1 ISSUE LETTER OF ACCEPTANCE Issue Letter of Acceptance Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 6.2 PERFORMANCE SECURITY Obtain Performance Security From Contractor Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 6.3 PREPARATION OF CONTRACT AGREEMENT Prepare Contract Documents Signing of Contract Ministry of Electricity and Dams - Dams Implementation Unit -Contracts Directorate 6.4 NOTIFICATION OF UNSUCCESSFUL TENDERERS Advise Unsuccessful Tenderers And Return Tender Security (If Provided) F
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FIDIC Tendering Procedure FIDIC Standard Prequalification Form for Contractors