Professional Documents
Culture Documents
procedures
according to
FIDIC
Contents
Foreword
Acknowledgements
Introduction
Procedural Flowchart
Procedure and Notes
1.0
\
Project Strategy
1.1
1.2
2.0
Prequalificalion of Tenderers
2.1
2.2
2.3
2.4
2.5
2.6
3.0
Obtaining Tcndcrs
3.1
3.2
3.3
3.4
3.5
3.6
4.0
Opening of Tenders
4. J
Opening of Tenders
Review ofTendcrs
Tcnders containing Deviations
Adjudication ofTenders
Rejection of all Tenders
6.l
6.2
6.3
6.4
Appendices
I Modcls for Implcmcntation of Projects
II Prcqualilication Form for Contractors
III Form ofTendcr Security
Foreword
The International Federation of Consulting Engineers (FIDIC)
published the first edition of Tendering Procedure in 1982. The first
edition primarily addressed procedures which FIDIC recommended for
the selection of tenderers and the preparation and evaluation of tenders
for civil engineering contracts. The document reflected the provisions of
the then current (third edition) of the FIDIC Conditions of Contract
(International) for Works of Civil Engineering Construction.
Acknowledgements
FIDIC extends special thanks to Lars Holten Petersen and Carsten
International
comments.
Bar
Association,
all
of whom
provided
valuable
The preparation was carried out under the general direction of the FIDIC
FlOle wishes to record its appreciation of the time and effort devoted by
all the above.
The ultimate decision on the form and content of the document rests
with FIDIC.
Introduction
This document presents a systematic approach for tendering and
awarding of contracts for international construction projects. It is
intended to assist the employer/engineer to receive sound competitive
tenders in accordance with the tender documents so that they can be
quickly and efficiently assessed. At the same time, an effort has been
made to provide the opportunity and incentive to contractors to respond
easily to invitations to tender for projects which they are qualified to
implement. It is hoped that the adoption of this procedure will minimise
tendering costs and ensure that all tenderers receive a fair and equal
opportunity to submit their olTers on a reasonable and comparable basis.
Experience has shown that for projects involving international
tendering, prequalification is desirable since it enables the
employer/engineer to establish the competence of companies
subsequently invited to tender. It is also in the interest of contractors
since, if prequalified, they will know that they are competing against a
limited number of other firms, all of whom possess the required
competence and capability.
The model procedure described in the text is accompanied by notes
which, for ease of reference, follow each clause. The notes, in italics, are
added to the text in order to expand upon the more important aspects of
each clause and, where appropriate, give alternative courses of action
that may have to be considered according to circumstances. The text is
illustrated by a flow chart which follows this introduction and serves as
a summary. Both the text and the notes have been kept as brief as
possible in order that the booklet can be easily used as a working
document.
The procedure is suitable for tendering for most international
construction works, but it may be adapted to suit the particular
requirements occasioned by the size and complexity of a project, and
any special conditions imposed by the established procedures of the
employer or the financing institutions. It reflects good current practice.
FIDIC recommends its use by employers, engineers, contractors and
others involved in the international construction industry.
The procedure is related to FIDIC's "Conditions of Contract for Works
of Civil Engineering Construction" and "Conditions of Contract for
Electrical and Mechanical Works" but can be readily adapted to any
acceptable contract form.
PROJECT STRATEGY
1.1
Appendix L Which strategy is best suited for the purpose depends on,
for example, the nature and complexity of the project, the access to
finance. life cycle costs of the project, the technical and administrative
The project strategy defines the way in which the project will be
implemented, determines the role of each party involved and, where
appropriate. specifics the way the project will operate. To a large degree
contractual relationships between the parties and their individual rights.
duties and risks arc therehy also determined by the project strategy.
At the implementation stage of a project, len<.kring serves as a method
to ensure that the work is procured al competitive terms.
process, resulting in claims, disputes and extra costs for all concerned.
Any part of a project which can be covered by a separate contract may
i)
COIISII"Il("lioll
ii)
01"
a ("olllhi'WliO/f of Ihes".
v)
a fair alld
ll'ndcrs. The
be used for
i11lerllariollal
,
1.2
Preparation of Programmes
The tendering procedure. as described in this document, implies that
certain activities have 10 be carried oul in connection with each part of
the project for which a separate tender is to be called.
It is important Ihat these activities are carried oul in a systematic and
timely manner. They should therefore be planned carefully and
procedure
- design
- construction
- taking-over
and should eSlablish all milestones of significance
each phase.
In
connection wilh
Calling tenders ror a given part of the project should be carried out in
compliance with the overall programme.
In order to ensure this compliance, derailed programmes should be made
for implemelliing the tendering procedure for each part of the project.
As a minimum. these programmes should specify duration and
deadlines for the following l.\clivities in connection wilh each potential
contract.
- Prcp<lnllion or lender documenls
- Prcparalion of prequalilication documents
- Prcqualific:ltion of tenderers
- Oblnining tenders
- Opening of lenders
- Evaluation of tenders
- Award of contract
Time should be allowed in each programme for the employer to make
necessaI'y decisions and give required approvals.
Further information about content and scope of each of these activities
is given in the following sections of Ihis document.
\Vhen prcparing the prograllU1l1' for each (;ontraet. it is important to
C'usurc /IUlt thc _\'C'l/ucnC{' ofoctil'ities is s/lch tllat alll1eCl'ssary data lind
illfOl"lllotioll ar{' C/l-oi/ah/e whell {'C/cll (lC'/iI-it)' i.\ to In' carried out_ This
applil's ill particular to till' order in which the activities forming
"Preparation
of tellder
do{'uments"
aud
"Preparation
of
preqllalUicotioll dOCUnI{'l1tS" are carried Ol/t. Consideratiol1 sIIould he
,
"
.':;\'l'11 as to what e,x!('w the lellder dOClInlelll.<; shollid be prepared alld agreed.
before the p,-('qualificalirJl/ doC/mu'nls call he fllla/iud alld isslled. This I/(J.t; 10 he
(/t'cickd jor (,tlch ;1II('I/(/(od cunlraCl. :tiilln' J.(.y i"jormatioll /rom ,11(' I('mh-,.
docllmems will 0/1('" hu\'{' 10 be ,ncO/porated ill the prequalificorioll doc-limcIII... ;1/
order 10 give adeq/lUll' i"formOlioll to 'hose see/.;;Il.S: prequalificotioll.
FillOI/C;lIg ;lIst;lu1iol/s H'ill gellerally require lime for scrutiny aud (11'/11'0\'01 of
tef/der documents.
2.0
PREQUALIFICATION OF TENDERERS
2.1
2.1.1
General
Prcquillific.:4Ilion is rccommen<Jcd to ensure lh:-al lenders ~lrc sought only
from contr:.lctors whom the employer/engineer has alre<.ldy cstahli ...hed
si.\ti~f:tctorily.
2.1.2
p,.equalification Documents
Prequ;'llific3tion documents should give information about ~hc project,
the tendering procedure and the prequalification procedure. TIley should
also specify what dala is required from conlractors wishing 10
prequOJlify.
The documents ;lrc prcp;.lI"cd by Ihe cmployer/engineer and will
normally include the following:
Leiter of invitalion to prcqualify
Infonnalion about the prequ:llilic:lliOIl procedufC
.... V'
Project informal ion
Prcqualilic:lti<m :'lpplic:'ltioll ,
ur IClldcrs.
The number of
sUbmitted.
copic.~s
of prequalilieation applications to be
2.2
Invitation to Prequalify
The employer/engineer should publish a notice invlllOg interested
conlraCtors 10 :Ipply for prequ<llificCllinll documents, stating that tcnder
'.
lenders.
Inslruclions (or applying for prcqualificalion documents.
Dale hy whit:h applicalions
10
2.3
.... The leHer of invitation 10 prcqualify should stale how the application is
10 be pat:k~lgcd am.! sent.
The employer/cngineer should acknowledge receipT of the completed
prcqualilication applil.::.uions from lhc contri.lCIOrs.
2.4
which it is to be unucl1akcn.
Available resources, in tenus or management capability. technical
staff. (;onsu'ucliuJl <.IUO fabrication facilities, maintenance and
training filcilities, or other relevant factors.
Qualily assurance procedures ami environmental pulicy.
c.lI.tr.:nt tu whidl .my work woulcJ be likely to be subcontracted.
Fill~Ull.:i'll stahility
2.5
Selection of Tenderers
If ~hc resulting lis!. afler those linns wll(l were found unsuitable have
heen excluded. excccd~ six pUICllli,,1 tcndercrs and there arc no special
regul;ttions OJ' conditions imposed 011 Ihc cmploycl', thc sclection
proceuure SllOUld be conlinueu 10 eliminate the less well-qualified in
order to alTive at ~ mlln~ Ihan si.ll..
'.
2.6
Notification of Applicants
When the li!'>t of sclcctcu tcm.lcrers has hecn prcp'lfCu, ~u(.'(,..cssful
:Ipplicants should he nOli lieu 'Illd requestcd 10 conlirm Iheir iotention to
submil a tender. This should Cllsure, as far as possible, :.111 adequate
number of competitive tenders. If a polemial tenderer wishes to drop out
al (his stage, the next best-placed should be invited and asked 10 confirm
as above. Following this, all applicants should be notified of Ihe list of
selected tendcrers without giving explanation for the decisions.
3.0
OBTAINING TENDERS
3.1
3.1.1
General
Instructions 1O lcnderers.
Tender form ;lOd appendices.
Conditions of l:onlracl (ParIs 1 anu II) lOgether with any requisite
forms.
Spcdlkalioll.
Drawings.
Bill of quantities or schedule of prices.
Information dul".
3.1.2
Receipt form for the tender documents (10 be signed and returned by
the tcndcrers)
Instruction 10 infonn the employer/engineer, in writing. of Clny
significant l.:hunges to the data supplied in the prequalific<l1ion
appl ication.
Dale and plal.:c
3.1.3
Instructions to Tenderers
General
Instructions (0 I,cndcrcrs should be prepared by IhecmpJoycr/engincer 10
meet the pal1icuktr requirements of individual contracts. The purpose of
the document is (0 convey information and instructions that will govern
the prepi.lralion, submission and evaluation of tcnders.
tenders taking into nccount the size. complexity :l.nd location of the
project in question.
Tcmlcrcrs should he notified of the number of copies of their Icnder that
arc required. slipulming that one set of the dOcumeoti<; should be clearly
marked "Original Tender" .md the others (which should be pho\ocopies) marked "Copy" and that, in the event of discrepancy. Ihe
"Origin;:11 Tendcr" shall t<.lke precedence.
lf a power of ollorncy is required. details of the precise requirements
be given.
~hollid
The inslructions 10 lemlcrers should stollC that the employer does not
hind himself 10 ;:lw<.lrd a conlract to any of the lenclercTS.
If remunenuion is 10 be made (0 tencJerers who submit responsive
lendc:rs. the sum should he advised. If 110(, it !'ihould he stipulated (hnt ,Ill
costs ;:lOd cxpen!'iCs ;:1!'isoci~lIcd with thc preparation <:Ind submission of
tenders shall be: borne by the tcnderers.
Documents
The inslnlctions 10 lendcrers should conwin a list of the documents
required 10 form a complctc lender.
Tendercni should be infolmcd lhal a tender will be rejected unless it is
substanlially re.'iponsivc.
Alternative Tenders
TcndeJ'cr~
Modification to Tenders
Th;: lcndel"Cr should hc illl'onncd lhal. if he has delivered. po!'tcd or
tlispi.ltched his tCllUCI" prior to the fonn~ll submission daLe he has the righl
to modify or tlwke (.;OITCCl.ioIlS lU il, provided thal any such
modi(i(';~ltions or corrections are rece.ived by the employer/engineer in
writing prior to the time speciried for submission of tenders. The
original tcnuer thus modified or corrected would then be considered as
the oflici~ll lender.
Financing Arrangements
Tendercrs should be l.IUvi:--cd of
th~
rcl~lIcd
contliti<.UlS.
Where LenderCl"S ~ll'C requircd lO provide linancing Ihey should be
inslru.:lcd to provide information l.IS to soun.;c of liuance and Ihe
(.;olldiliuns whkh will l.tpply.
Domestic Preferences
Tender Securities
The requirements for a tender security, if :lOY. will be detennined by the
circumstances of each project. Jf a tender security is required, a form
should be included in the tender documents. A standard form of tender
security is shown in Appendix III. The amOllnt and cUlTency(ies) of the
security should be stated. In all cases the surety or sureties must be
sarisf'lctory to the employer. If a tender security has been requested, any
tender which ha~ not been so secured will he rejected.
Tenderers should be advised of the period of validity which is required
for the tender security. ;\Od the events which will entitle the employer to
call the security. The terms reflected in the standard Fonn of Tender
Security shown in Appendix III are as follows::
a.
th;u it shall remain in full force and effecl until the earliest of
i. {datet being r
J days from rsubmission dateJ. the date
stipulated by the Authority for the suomission of tenders. or any
prolong.uion of such date above notified to the Authority by the
Tenderer and the SurelY in wriling;
subjec\ to this Bond being in full force ;md effect, fhe Surety shall
pay the rull amount specified in this Bond upon receipt of 3 wrinen
certilic.i1te from the Authority Slating fhat
i.
lhe Tenderer has wilhdrawn his Tender during the validity of
this Bond. or
Evaluation Criteria
The evalualion criteria. which will form the basis for the selection of the
lll()~t advantageous ICIH.lcr. should be speeilicd.
If a spcdlk mcthod of evaluation is 10 be used in selecling the
successful lender. the method should be described in the in:-;lructions to
Icnucrcrs.
While adjudic~lIi()n gencrally will be primarily on the basis of tt:nder
price. other fa...:lors which lIlay he relevant include:
lillIe for COlllplclilm
sllit~\hiliIY of
technology
Performance Securities
If ~\ security (gllar;\I11ec or hond) for pcrf"orilwllCC is rCtluired. the Iype
mllJ h.:nns should be spccilkd in the conditions or contract. The terms
should indlilic the periotl of validity of the sCl:urity, the procedure 10 he
followcd if lhe security is forfeit. arrangements for its release iJlHJ. the
currency of .:lny 1110netary tmnsaclit}11S illVolvcll.
Checklist
The following checklist is illclullcu to assist in the prcptlration of
instructions to tenderers and shows subjects which should be covered:
The bngllagc
or the tCllder.
or allOrney f()r
dllli~s
and other
Procedure for inspecting any sped;,l documenls not issued with the
lender (\oCtlmelUS (e.g. site invesligation repons).
Circumslances under which altemative offers may be submilled.
Conlidellti.llity of tendcr documents.
Pmcedure for (he return of tender dOClllncnts hy unsuccessful
lenderers (if requircd).
lim~
by
Icnderers.
Armngclllcllts for thc opening of tenders.
PrOl;edurc for deating with :lTithmctic errors found in lenders dllTing
evaluatioll.
Rules rclaling to disqualification/rejeclion of tenders (e.g. !<.lte
arrivals ...!tercd ligures, incomplelc submission.,; and devialions)..
Any unusual ("cillures of the particular lendering process.
Infonnation about the cvalualion criteria
3.1.4
Conditions of Contract
The conditions of contT~ll;t should be based on widely rccognised
conditions of contract such as "Conditions of Contraci for Works of
Civil Engineering Construction" and "Conditions of ContraCI for
Electric'll and Mech.mical Works" puhlished by FIDIC.
T"'.~('
doci/mell/s ("olllp,.i.\':
or
Proccdurc for inspecting any special documents not issued with lhe
tcnder documcnts (e.g. site invcstigation rcports).
Circumstances under which alternative offers may be submitted.
Confidentiality of Icnder documents.
Proccdure for the return of tender documents by unsuccessful
tenderers (if required).
Procedure for dealing with requests for extension of time by
tenderers.
Arrang~mcnts for
3.1.4
Conditions of Contract
The condilions of contract should be based on widely recognised
conditions of contract such as "Conditions of Contract for Works of
Civil Engineering Construction" and "Conditions of Contract for
Electrical and Mechanical Works" published by FIDIC.
These documents comprise:
ParI I: General Condilions (and Preamhle. ifapplicahle).
Par/II: Condilions of Particular Application or Special Conditions.
Tel/del" form.
Agl"CClIll'lIl form
3.1.5
Specification
The specification will define the scope and technical requirements of the
contract, including any requirements for training and the transfer of
technology. The quality of materials and the standards of workmanship
[0 be provided by the contractor must be clearly described. together with
requirements for quality assurance to be performed by the contractor
and the required safety, health and environmental measures to be
observed during the execution of the works. The extent, if any. to which
the contractor will be responsible for the design of the permanent works
should also be specified. Details should be included of samples to be
provided and tests to be carried out by the contractor during the course
of the contract. Any limitations on the contractor's freedom of choice in
the order. timing or methods of executing the work or sections of the
works should be clearly set ou( and any restrictions in his use of the site
of the works, such as interface requirements with other parts of the
work. or provision of access or space for other contractors, should be
given.
The specification shall promote the broadest possible competition and as
far as possible follow international standards such as those issued by
ISO.
3.1.6
Drawings
The drawings included in the tender documents should provide
tenderers with suflicient detail to enable them, in conjunction with the
specification and the bill of quantities. to make an accurate assessment
of the nature and scope of the works included in the contract. The
drawings should be listed in the specification.
3.1.7
3.2
the employer/el/gineer Oil rhe due despatch dale. Tenderers should IJ(!
asked whelher they wish (0 col/eu lhe documents and instructed us to
the rime (lnd place jor (.'ollecriol1.
3.3
The primary purpose of the visit is to enable each tenderer to inspect the
site and obtain all relevant information required for the prepamtion of
his tender.
Tel1llcr,',.s .\-hould be ucll'ised of fhe pmooble duratioll of the visit, the
period durillg which the visit may be made alld the maximum number of
pcrsrJ/lS from each tendera allowed to participate.
The ar1"QIl.t:cm,'IItS for the site visit .~holiid be determined so that equal
opportunities are ope" to all fenderers_ The visit shollid take pla,-e at
approximately 'he end of the first half of the ,ender period and should
i"c1ude a fe"derers' conferel/ce.
Tel1llerers should make flteir OWIl t1"Ql'{!llin1: al'l'lIlIgemellts alld hear tlte
costs, il/duding fares. ll('('ommotlmiOil and sllbs;slCllce al1(l tlley .\lto//ld
h,' advis{'d of this ill tile illsfrtl(',iOll.f to tcnderer....
It is tile respol/sibility of tlte employer/engincer to make Dilly tllose
arrangements f/{!ce.uary for the actllal inspection of the site_
Tile employerh'l1gille('r should make a record of tenderers'
represematit"s \li.\-itil1':: the site_
3.4
Tenderers' Queries
Tenderers' queries can be handled by correspondence or by tcnderers'
conference or by a combination of these methods.
The intended method or methods should be described in the instructions
to Icndercrs.
Correspondence Method
be
given
by
the
3.5
(III
extension?
, 3.6
4.0
OPENING OF TENDERS
4.1
Opening of Tenders
At the dale and time fixed for the official opening. the employerl
engineer should check and display the scaled condition of each tender
prior to its being opened.
IS
Tenderer's name
Tender price.
Price of allcmativc lcnders. if appropriate.
Tender security
Following this, the employer/engineer should announce the names of
any tenderers disqualilied duc (0 late or non-receipt of Icnders.
The foregoing information should be recorded on a suitable fonn signed
The official opel/illg oJ fendl'rs may he carried ulII ill Of/e of two ways 00\"
upplvpriate to the c:;rc:umSf(.J1Ic:es.
/" Public: Tile date, lime and place of openill/-: should be adverrised
ill rhe press alld IIOfified ro renderers.
Resrricted: III rhe presellce afrhose renderers wishi"g ro affelld. all
hw'ing IJeell advised of rhe date. rime and place of rhe opening.
\.
5.0
EVALUATION OF TENDERS
5.1
Review of Tenders
Following the opening, lenders should be checked by the
employer/engineer to establish that they are arithmetically correct, are
responsive without errors and omissions and consistent with the
invitation to tender.
5.2
5.3
Adjudication of Tenders
If the lowest evaluated tcnder as clarified still contains deviations which
are unacceptable to the employer/engineer. the tenderer should be
notified and given the opportunity of withdrawing such deviations in
writing. The tenderer In:..ly do so only if he conlirms in writing that the
withdrawal makes no change to the tender price. If no such confirmation
is received the tcnder should be rejected and the next lowest evaluated
tcnder as clarified should be considered. and so on.
The employer should then make his decision on which tcnder to accept.
The procedure for dealing with deviations will depend OIl the employer's
policy towards tellders which do lIot comply fully with the instructions to
telldl'rers. The procedure descrihed ahove is the olle recommended by
FIDIC as most likely /0 ensurefairlless to hOlh employers and tenderers
alld ill the lon,~ term to ensure that employers receive compliam
competitive tenders. Certai" employers. particularly those who recei\'e
a number of tenders ('ad, year. may "refer 10 adopt a stricter approach
and 10 reject all)' teJlllers u:hich cOlltaill deviatiolls, If this is the case. a
statemem to this effelt should he im:luded i" the instructions to
tenderers and this prot_'i'dure should the" he strictly ohsern!d.
5.4
i~'
6.0
AWARD OF CONTRACT
6.1
the lender as non-responsive and which have not been dealt with under
clause 5.3. it is normally necessary for the employer/engineer and
tenderer 10 meet. prior to ,my decision being made concerning the award
of the comraet. in order to determine and agree whether such deviations
are acceptabl.c and shall be incorporated in the contract, or whether they
shall be withdrawn by the tenderer.
6.2
Performance Security
It is normally a reljuircment of the contract that the contractor shall