Who shall participate in the preparation of the Bidding Documents?
The following must participate in the preparation of the bidding documents:
1. Consultants, if any
2. The end-user unit/ Consumers
3. The Secretariat / Procurement Unit.
When should you prepare the Bidding Documents?
The bidding documents must be prepared in time for presentation at the tender or procurement committees. After the advertisement and/or posting of the Invitation to Tender, it should be ascertained that these documents will be ready and available for issuance to prospective bidders on the day the procuring entity first advertised.
What various types and sizes of contracts may be provided in the Bidding Documents?
Subject to the regulations, a successful tenderer shall submit a performance security equivalent to not more than 10% (Ten per cent) of the contract amount before signing of the contract. In case the contract is not fully or well executed, the performance security shall unconditionally be fully seized by the procuring entity as a compensation without prejudice to other penalties provided for by the Act.
Provisions under this section shall not apply to consultant related services, works and supplies where their estimated value does not exceed a threshold established by the procurement regulations, or work and supplies reserved for women, youth, persons with
disabilities and other disadvantaged groups, and for those categories, the performance securities that may be waived of fixed at not more than one percent of the contract price.
The bidding documents should clearly state the type of contract to be entered into and contain the proposed contract provisions appropriate therefore. The most common types of contracts provide for payments on the basis of a lump sum, unit price, or combinations The size and scope of individual contracts will depend on the magnitude, nature, and location of the project, for example:
- For projects requiring a variety of goods and works, separate contracts may be awarded for the supply and/or installation of different items of equipment and plant(―plant‖ refers to installed equipment, as in a production facility) and for the works.
- For a project requiring similar but separate items of equipment or works, bids may be invited under alternative contract options that would attract the interest of both small and large firms, which could be allowed, at their option, to bid for individual contracts (items) or for a group of similar contracts (package). All bids and combinations of bids should be received by the same deadline and opened and evaluated simultaneously so as to determine the bid or combination of bids offering the lowest calculated cost to the Procuring Entity.
Nature of performance security
The performance security may not generate security interest and it shall be determined in accordance with the form provided for in the tendering document and may be paid in form of a bank guarantee, issues by an authorized financial institution of an irrevocable letter of credit.
- The tender document shall provide for, if necessary forms of performance security that may be requested from the successful tenderer.
- The bank or authorized financial institution shall be obliged to give to the procuring entity all the amount of the performance security upon claim by the latter.
- The bank or authorized financial institution shall also be obliged to pay an additional interest of 1% for every day of payment delay after 10 working days from the receipt of the claim provided this requirement is disclosed in the performance security and if it is necessary to take the matter to courts, and that the courts rules in favour of the procuring entity, this interest shall continue to accrue up to the time the court‘s decision is executed.
- If the contractor is foreign, the guarantee shall be issued by a local bank
