CIVIL AVIATION AUTHORITY OF NEPAL

TRIBHUVAN INTERNATIONAL AIRPORT CIVIL AVIATION OFFICE

CIVIL ENGINEERING DIVISION
GAUCHER, KATHMANDU, NEPAL

BIDDING DOCUMENT

FOR

Renovation of Domestic Terminal Building at TIA.

Contract No.: TIACAO/CED/09/072-73

Estimated Amount NRs. 39,32,797.37 ( Excluding VAT)

Issued by:
CIVIL AVIATION AUTHORITY OF NEPAL
TRIBHUVAN INTERNATIONAL AIRPORT CIVIL AVIATION OFFICE
CIVIL ENGINEERING DIVISION
GAUCHER, KATHMANDU, NEPAL

January 2016

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Section I. Invitation to Bids

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Instructions to Bidders
A. General
1. Scope of The Employer invites bids for the contraction of works as detailed in
Works attached specifications, drawings and the bill of quantities provided
herein. The successful Bidder is expected to complete the works as
mentioned in the Bidding Data.

2. Eligible Bidder This Invitation for Bids is open to all registered Bidders with
qualifications as described in the Bidding Data.

3.One Bid per Each Bidder shall submit only one bid, either individually or as a
Bidder partner in a joint venture. A Bidder who submits or participates in
more than one bid shall cause all the proposals with the Bidder’s
participation to be disqualified. A firm may participate in more than
one bid only as a subcontractor.

4. Cost of The Bidder shall bear all costs associated with the preparation and
Bidding submission of his bid and the Employer shall in no case be liable for
those costs.

5. Site Visit The Bidder at his own cost, responsibility and risk may visit the site
of the works and acquire all necessary information for preparing the
bid and entering into a contract for construction of the works.

B. Bidding Documents
6. Content of The Bidding Documents comprise the documents listed below:
Bidding Section
Documents I. Invitation for Bids
II. Instructions to Bidders
III. Sample Forms of Bid, Letter of Acceptance and Agreement
IV. General Conditions of Contract (GCC)
V. Special Conditions of Contract (SCC)
VI. Technical Specifications
VII. Drawings
VIII. Bill of Quantities
IX. Sample Forms of Securities

7. Clarification of A prospective Bidder may request clarification on the bidding

Bidding documents in writing and the Employer shall respond to such
Documents request. Copies of the response shall be forwarded to all the
purchasers of the bidding documents.

C. Preparation of Bids
8. Language of All documents relating to the bid shall be in English or in Nepali.
Bid

9. Documents The bid by the Bidder shall comprise the following:

Comprising
a. Bid and Qualification/ Eligibility Information
Bid
b. Bid Security
c. Priced Bill of Quantities

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 d. Rate Analysis (optional at request of Employer)

10. Bid Prices The contract shall be for the whole works described in scope of
works based on the priced Bill of Quantities submitted by the Bidder.
The Bidder shall fill in rates and prices for all items of the works in
Nepali Rupees. Items for which no rate or price is entered shall be
deemed covered by the other rates and prices in the Bill of
Quantities and shall not be paid by the Employer.

All duties, taxes and other levies payable by the contractor under the
contract shall be included in the rates, prices and total Bid Price
submitted by the Bidder.

11. Bid Validity The bid shall remain valid for the period specified in the Bidding
Data.

12. Bid Security The Bidder shall furnish a Bid Security in Nepali Rupees in the
amount specified in the Bidding Data. The Bid Security shall remain
valid for a period of 30 days beyond the original validity period for
bid and any period of extension subsequently requested by the
employer.

The Bid Security shall be in the form of a bank guarantee from a

bank acceptable to the Employer or a cash voucher deposited in the
Bank Account of the Employer specified in the Bidding Data.

13. Format and One original and one duplicate copy of the bid shall be typed or
Signing of written in indelible ink and shall be signed by a person or persons
Bids 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. Any entries or amendments including
alternations, additions or corrections made shall be initialled by the
same authorized person.

D. Submission of Bids
14. Sealing and The Bidder shall submit one original and a duplicate copy of the bid.
Marking of These bids shall be placed in sealed envelopes. Both the sealed
Bids envelopes shall be placed in an outer envelope which shall also be
sealed. The inner envelopes shall duly be marked as ‘Original’ and
‘Copy’. The envelopes shall be addressed to the Employer at the
address provided in the Bidding Data and bear the name and
identification number of the contract.

15. Pre-Bid A Pre-Bid meeting if provided for in the Bidding Data shall be held at
Meeting least 10 days before the bid submission date at the place, date and
time as mentioned in the Bidding Data. Any amendment to be made
in the Bid subsequent to the Pre-bid meeting shall be issued within 5
days of the meeting and the Addendum shall be circulated to all the
purchasers of the Bidding Document, The Addendum thus issued
shall be a part of the Bidding document.

16. Deadline for Bids shall be delivered to the Employer at the address no later than
Submission of the time and date specified in the Bidding Data.
Bids

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17. Late Bids Any bid received by the Employer after the deadline shall not be
accepted and shall be returned unopened to the Bidder.

18. Modification 18.1 Bidders may modify or withdraw their Bids after it has been
and submitted by giving a written notice, duly signed by an
Withdrawal of authorized representative and shall include a copy of the
Bids authorization in accordance with Clause 13 before the deadline
prescribed in Clause 16. The corresponding modification of the
bid must accompany the respective written notice.

18.2 Each Bidder’s modification or withdrawal notice shall be

prepared, sealed, marked, and delivered in accordance with
Clauses 16 with the outer and inner envelopes additionally
marked “MODIFICATION” or “WITHDRAWAL,” as appropriate.

18.3 No bid may be modified after the deadline for submission of

Bids.

E. Bid Opening and Evaluation

19. Bid Opening The Employer shall open the bids in the presence of the Bidders'
representatives who choose to attend at the time and in the place
specified in the Bidding Data.

The Bidders' names, the Bid Prices, the total amount of each bid,
any discounts, bid modifications and withdrawals, the presence or
absence of Bid Security, difference of rate in words and figures,
quoted price for alternate technical specification if proposed,
whether the Bid Form has signature of the bidder or authorized
representative, corrections/effacement or obliteration in bidding
document, any remarks made by the bidder in the Bid Form, details
of rates if requested and such other details as the Employer may
consider appropriate shall be announced by the Employer at the
opening.
The Employer shall prepare and provide minutes of the bid opening
including the information disclosed to those present.

20. Process to be Information relating to the examination, clarification, evaluation and

Confidential comparison of bids and recommendations for the award of a
contract shall not be disclosed to Bidders or any other persons not
officially concerned with such process until the award to the
successful Bidder has been announced.

21. Clarification of 21.1 To assist in the examination, evaluation and comparison of

Bids and Bids, the Employer may, at the Employer’s discretion, ask any
Contacting the Bidder for clarification of the Bidder’s bid, including
Employer breakdowns of unit rates. The request for clarification and the
response shall be in writing or by facsimile, but no change in
the price or substance of the bid shall be sought, offered, or
permitted except as required to confirm the correction of
arithmetic errors discovered by the Employer in the evaluation
of the Bids in accordance with Clause 23.

21.2 Subject to Sub-Clause 21.1, no Bidder shall contact the

Employer on any matter relating to his bid from the time of the
bid opening to the time the contract is awarded. If the Bidder

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 wishes to bring additional information to the notice of the
Employer, he should do so in writing.

21.3 Any efforts by the Bidder to influence the Employer in the

Employer’s bid evaluation, bid comparison or contract award
decisions may result in the rejection of the Bidder’s bid.

22. Examination of 22.1 Prior to the detailed evaluation of Bids, the Employer shall
Bids and determine whether each bid (a) meets the eligibility criteria
Determination of defined in Clause 2; (b) has been properly signed; (c) is
Responsiveness accompanied by the required securities; and (d) is substantially
responsive to the requirements of the Bidding documents.

22.2 A substantially responsive bid is one which conforms to all the

terms, conditions, and specifications of the Bidding documents,
without material deviation or reservation. A material deviation
or reservation is one (a) which affects in any substantial way
the scope, quality, or performance of the Works; (b) which
limits in any substantial way, inconsistent with the Bidding
documents, the Employer’s rights or the Bidder’s obligations
under the Contract; or (c) whose rectification would affect
unfairly the competitive position of other Bidders presenting
substantially responsive Bids.

22.3 If a bid is not substantially responsive, it shall be rejected by

the Employer, and may not subsequently be made responsive
by correction or withdrawal of the nonconforming deviation or
reservation.

23. Correction of 23.1 Bids determined to be substantially responsive shall be

Errors checked by the Employer for any arithmetic errors. Errors shall
be corrected by the Employer as follows:
a where there is a discrepancy between the amounts in
figures and in words, the amount in words shall govern;
and
b where there is a discrepancy between the unit rate and
the line item total resulting from multiplying the unit rate by
the quantity, the unit rate as quoted shall govern, unless in
the opinion of the Employer there is an obviously gross
misplacement of the decimal point in the unit rate, in which
case the line item total as quoted shall govern, and the unit
rate shall be corrected.

23.2 The amount stated in the bid shall be adjusted by the Employer
in accordance with the above procedure for the correction of
errors and, with the concurrence of the Bidder, shall be
considered as binding upon the Bidder. If the Bidder does not
accept the corrected amount, the bid shall be rejected and the
Bid Security may be forfeited.

24. Evaluation and 24.1 The Employer shall evaluate and compare only the Bids
Comparison of determined to be substantially responsive in accordance with
Bids Clause 23.
24.2 Further the employer shall evaluate :
Whether the construction work plan, work performance schedule and

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 mobilization period is consistent with the requirement of the
bidding document or not,
Whether the quoted item unit rates in the Bill of quantities are reliable
or not,
Whether or not the quoted price is unbalanced due to unnaturally
high rates quoted by the bidder for work items to be completed
in the initial stages of the contract or for work items whose
quantities are assumed by the bidder to be underestimated.

24.3 In evaluating the Bids, the Employer shall determine for each
bid the evaluated Bid Price by adjusting any corrections for
errors pursuant to Clause 23;

24.4 The Employer reserves the right to accept or reject any

variation deviation or alternative offer. Variations, deviations,
and alternative offers and other factors which are in excess of
the requirements of the Bidding documents or otherwise result
in unsolicited benefits for the Employer will not be taken into
account in bid evaluation.

24.5 If the bid, which results in the lowest Evaluated Bid price, is
unbalanced or frontloaded in relation to the Employer’s
estimate of the items of Work to be performed under the
contract pursuant to Sub - Clause 24.2 ,the Employer shall ask
the bidder to give clarification with detailed rate analysis for
any or all items of the Bill of Quantities. If the clarification is
found satisfactory then the Employer shall increase at the
expense of the bidder the performance security set forth in
clause 28 by additional 8% of the quoted amount to protect the
Employer against financial loss in the event of default of the
successful bidder under the contract and if the clarification is
found unsatisfactory then the Employer may reject such bid.
.

F. Award of Contract
25. Award of The Employer shall award the contract to the Bidder who has
Contract offered the lowest evaluated Bid Price, provided that such Bidder
has been determined to be eligible in accordance with the provisions
of Clause2.

26. Employer's The Employer reserves the right to accept or reject any bid and to
Right to Accept cancel the bidding process and reject all bids, at any time prior to
any Bid and to the award of the contract, without assigning any reasons whatsoever
Reject any or and without thereby incurring any liability to the affected Bidder or
all Bids Bidders.

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27. Notification of 27.1 The Employer shall notify it’s intention to award the Contract
Award and to the successful bidder in accordance with Clause 25 prior
Signing of to the expiration of the bid validity period and within 7 days of
Agreement acceptance of his bid. This notification (called the “Letter of
Acceptance”) shall state the sum that the Employer shall pay
the Bidder in consideration of the execution, completion, and
maintenance of the works as described by the contract. The
employer shall also provide information regarding the name,
address and the contract amount of the successful bidder to
all bidders who participated in the bid.

27.2 Any Bidder who is not satisfied with the procurement process
or Employer’s decision as per Sub - Clause 27.1 and believes
that the Employer has committed an error or breach of duty
which has or will result in loss to the bidder then the bidder
may give an application for review of the decision to the
Employer with reference to the error or breach of duty
committed by the Employer. The review application should be
given within 7 days of receipt of information regarding issue of
Letter of Acceptance by the Employer to the successful
bidder.

27.3 If the review application is not received by the Employer as per

clause 27.2 then the bid of the Bidder selected as per clause
25 shall be accepted by the Employer and the successful
bidder shall be notified by the Employer to submit
Performance security as per clause 28, within 15 days for
signing of an Agreement.

27.4 If the successful bidder fails to deliver the Performance

Security and sign the Agreement pursuant to Sub - Clause
27.3 then the Employer shall forfeit the Bid Security of the
bidder and accept the bid of immediately next lowest
evaluated substantially responsive bidder.

28. Performance Within 15 days after receipt of the Letter of Acceptance, the
Security successful Bidder shall deliver to the Employer a Performance
Security in acceptable format to the Employer as specified in
Section IX and equal to five percent (5%) of the contract Agreement
Amount.

29. Advance Payment The Employer may provide an Advance Payment on the Initial
Contract Price as stipulated in the Letter of Acceptance, subject to a
maximum amount as stated in the Bidding Data.

30. Additional The Contractor shall provide additional Performance Security

Securities pursuant to Sub -Cause 24.5

31. Adjudicator The Employer proposes the person named in the Bidding Data to be
appointed as Adjudicator under the Contract, at the hourly fee
specified in the Bidding Data, plus reimbursable expenses. If the
Bidder disagrees with this proposal, the Bidder should so state in his
Bid. If, in the Letter of Acceptance, the Employer does not agree on
the appointment of the Adjudicator, the Employer will request the
Appointing Authority designated in the Contract Data at the request
of either party.

32. Conduct of
32.1 The Bidder shall be responsible to fulfil his obligations as per

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 Bidders the requirement of the Contract Agreement, Bidding
documents, GoN’s Procurement Act and Regulations.
32.2 The Bidder shall not carry out or cause to carry out the
following acts with an intention to influence the implementation
of the procurement process or the procurement agreement :
a) give or propose improper inducement directly or indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent practice
d) Interference in participation of other prospective bidders.
e) coercion or threatening directly or indirectly to cause harm to
the person or the property of any person to be involved in the
procurement proceedings,
f) collusive practice among bidders before or after submission
of bids for distribution of works among bidders or fixing
artificial/uncompetitive bid price with an intention to deprive
the Employer the benefit of open competitive bid price..
g) Contacting the Employer with an intention to influence the
Employer with regards to the bid or interference of any kind
in examination and evaluation of the bids during the period
after opening of bids up to the notification of award of
contract

33. Blacklisting 33.1 Without prejudice to any other right of the Employer under this
Bidder Contract, GoN, Public Procurement Monitoring Office may
blacklist a bidder for his conduct up to three years on the
following grounds and seriousness of the act committed by
the bidder:
a) if it is proved that the bidder committed acts pursuant to the
Sub - Clause 32.2,
b) if the bidder fails to sign an agreement pursuant to Sub -
Clause 27.4,
c) if it is proved later that the bidder/contractor had committed
substantial defect in implementation of the contract or had
not substantially fulfilled his obligations under the contract
or the completed work is not of the specified quality as per
the contract ,
d) if convicted by a court of law in a criminal offence which
disqualifies the bidder from participating in the contract.
e) if it is proved that the contract agreement signed by the
bidder was based on false or misrepresentation of bidder’s
qualification information,
f) other acts mentioned in the Bidding Data

33.2 A firm declared blacklisted and ineligible by the GoN shall be

ineligible to bid for a contract during the period of time
determined by the PPMO.

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 G. Bidding Data
Instruction to Bidders Clause References
A. General
ITB 1 The Employer is: Tribhuvan International Airport Civil Aviation Office,
Gauchar, Kathmandu.
The Scope of Work: Renovation of Domestic Terminal Building at TIA.

ITB 2 Bidder’s Eligibility Requirement:

a) Registration Certificate
b) Business Registration Licence
c) VAT and PAN Registration Certificates
d) Tax Clearance Certificate or
Submissions of Tax Returns up to FY 2071/72
e) A written declaration made by the Bidder stating that the Bidder is
not ineligible to participate in the Bid; has no conflict of interest in
the proposed bid procurement proceedings and has not been
punished for the profession or businesses related offence.
f) Joint Venture Authorization/ Agreement (if any)
g) Power of Attorney

B. Bidding Documents
ITB 7
Employer’s address for clarification purposes is: Tribhuvan
International Airport Civil Aviation Office, Civil Engineering
Division, Gauchar, Kathmandu.
Requests for clarification should be received by the Employer no later
than: 20 days.

C. Preparation of Bids
ITB 8 The language of the bid is: Nepali or English

ITB 11 The bid validity period shall be: 120 days from the date of opening Bid.

ITB 12 Amount of Bid Security shall be: 1,10,000.00

The bid security validity period shall be: 30 days after Bid Validity date.
The Bank Account of the Employer: Account No; 70, Rastriya Banijjya
Bank, Airport Branch, Gauchar, Kathmandu.

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ITB 13 The written confirmation of authorization to sign on behalf of the Bidder shall indicate: [insert “
(a) The name and description of the documentation required to demonstrate the authority
of the signatory to sign the Bid such as a Power of Attorney; and
(b) In the case of Bids submitted by an existing or intended JV an undertaking signed by all
parties (i) stating that all parties shall be jointly and severally liable, and (ii) nominating a
Representative who shall have the authority to conduct all business for and on behalf of
any and all the parties of the JV during the bidding process and, in the event the JV is
awarded the Contract, during contract execution.”]

D. Submission of Bids
ITB 15 A Pre-Bid meeting shall not place.

ITB 16 The Employer’s address for bid submission purposes is: Tribhuvan
International Airport Civil Aviation Office, Civil Engineering Division,
Gauchar, Kathmandu.
The deadline for bid submission is:
Date: 2072/11/10
Time: 12.00 hrs

E. Bid Opening and Evaluation

ITB 19 The bid opening shall take place at: Tribhuvan International Airport Civil
Aviation Office, Civil Engineering Division, Gauchar, Kathmandu.
Date: 2072/11/10
Time: 14.00 hrs

F. Award of Contract
ITB 29 The Advance Payment amount shall be: 20 % of Contract Price

ITB 31 The Adjudicator proposed by the Employer is: Will be decided later.
The hourly fee for this proposed Adjudicator shall be: Will be decided
later.
Brief biographical data of the proposed Adjudicator is as follows: NA

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Section III. Sample Forms of Bid, Qualification
Information, Letter of Acceptance and
Agreement

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Bid

We have examined the documents and offer to execute the Works in conformity with the
Contract for the sum of ……………………. ………………………….. (in words)
……………………………(in figures) or such other sum as may be ascertained under the
contract.

This bid is submitted in one original and one duplicate copy. We accept the appointment of
[______________name proposed in Bidding Data] as the Adjudicator

[or]

We do not accept the appointment of [name proposed in Bidding Data] as the Adjudicator,
and propose instead that [name] be appointed as Adjudicator, whose daily fees and
biographical data are attached.

This bid shall remain binding until ____________________ [date]. This bid and your written
acceptance of it shall constitute a binding contract between us.

We understand that the Employer is not bound to accept the lowest or any offer received for the
Works.

Signature _____________________________ Date: _________________________________

Name : _______________________________

Designation: ______________________

Authorised to sign on behalf of (organisation name): _______________________________

Office Stamp of the Organisation: ____________________________________

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Eligibility Information

Notes to Bidders

The information to be filled in by Bidders in the following pages shall be used for purposes of
eligibility as provided for in Clause 2 of the Instructions to Bidders. This information shall not
be incorporated in the Contract. Attach additional pages as necessary.

1. Eligibility Requirements:

All Bidders shall submit following documents as pre- requisites for eligibility:

a) Registration Certificate [ attach copy]

b) Place of Registration [ insert ]
c) Principal place of Business [insert address]
d) Business Registration Licence [attach copy]
e) VAT and PAN Registration Certificates [attach copy]
f) Tax Clearance Certificate or Submissions of
Tax Returns as specified in Bidding Data [attach copies]
g) A written declaration made by the Bidder stating that the Bidder is not ineligible to
participate in the Bid; has no conflict of interest in the proposed bid procurement
proceedings and has not been punished for the profession or businesses related
offence.
h) Joint Venture Authorization/ Agreement (if any)
i) Power of Attorney

2. Joint Ventures Requirements (if any)

2.1 Attach the power of attorney of the signatory (ies) of the bid authorising signature of the
bid on behalf of the joint venture.

2.2 Attach the Agreement among all partners of the joint venture (and which is legally binding
on all partners), which shows that

(a) all partners shall be jointly and severally liable for the execution of the Contract in
accordance with the Contract terms;

(b) one of the partners will be nominated as being in charge, authorized to incur
liabilities, and receive instructions for and on behalf of any and all partners of the
joint venture; and

(c) execution of the entire Contract, including payment, shall be done exclusively with
the partner in charge.
(d) each joint venture partners shall provide details as per information listed in 1 above.

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Letter of Intention to Award
[This letter should be in the letterhead paper of the Employer]

Notes on Letter of Intention to Award

The issue of Letter of Intention to Award will be the basis acceptance of bid by the Employer
for issue of letter of Acceptance to the lowest evaluated Bidder and for providing information
to other unsuccessful bidders who participated in the bid as regards to the outcome of the
procurement process. This standard form of Letter of Intention to Award should be filled in
and sent to the successful Bidder only after evaluation of Bids has been completed but before
final acceptance of the Bid.

Date:

To: [name and address of the Contractor]

This is to notify you in accordance with the Instruction to Bidders that it is our intention to award
the contract [name of the Contract and identification number, as given in the Contract Data
1
and/or SCC] to you as your Bid price of the equivalent, of [amount in numbers and words in
2
Nepalese Rupees], as corrected and modified in accordance with the Instructions to Bidders, is
determined to be substantially responsive and lowest evaluated Bid price.

Authorized Signature:__________________________________________________

Name and Title of Signatory:_____________________________________________

Name of Agency:______________________________________________________

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Letter of Acceptance
[Letterhead of the Employer]

Date: ________________________

To: [name and address of the contractor]

This is to notify you that your bid dated [date] for execution of the [name of the Contract and
identification number, as given in the Invitation to Bid] for the Contract Price of [insert the
3
amount in Nepalese Rupees in numbers and words] as corrected and modified in accordance
with the Instructions to Bidders is hereby accepted by our Agency.

You are hereby instructed to contact our office [Office address] to sign the formal agreement on
[date] at [time]. As per the Instructions to Bidders you are also required to submit Performance
Security, as specified in the SCC, consisting of a Bank Guarantee in an approved format or
cash deposit voucher in favour of the Employer in the Employer's Bank account as specified in
the SCC.

The Employer shall forfeit the bid security, in case you fail to furnish the Performance Security
and to sign the contract.

Please convey your unconditional acceptance by signing on the original of this letter and submit
the required Performance Security, at the time of formal agreement.

Authorised Signature:

Name:

Designation: :______________________________________________________

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Agreement

This Agreement, made the [day] day of [month], [year] between [name and address of
Employer] (hereinafter called “the Employer”) and [name and address of contractor] (hereinafter
called “the contractor”) of the other part.

Whereas the Employer is desirous that the contractor execute [name and identification number
of contract] (hereinafter called “the Works”) and the Employer has accepted the bid for
________________ [insert the amount in Nepalese Rupees in numbers and words] by the
contractor for the execution and completion of such Works and the remedying of any defects
therein.

Now this Agreement witnesseth as follows:

1. In this Agreement, words and expressions shall have the same meanings as are
respectively assigned to them in the Conditions of Contract hereinafter referred to, and
they shall be deemed to form and be read and construed as part of this Agreement.

2. In consideration of the payments to be made by the Employer to the contractor as

hereinafter mentioned, the contractor hereby covenants with the Employer to execute and
complete the Works and remedy any defects therein in conformity in all respects with the
provisions of the Contract.

3. The Employer hereby covenants to pay the contractor in consideration of the execution
and completion of the Works and the remedying of defects wherein, the Contract Price or
such other sum as may become payable under the provisions of the Contract at the times
and in the manner prescribed by the Contract.

In Witness whereof the parties thereto have caused this Agreement to be executed the day and
year first before written.

The Common Seal of

was hereunto affixed in the presence of:

Signed, Sealed, and Delivered by the said

in the presence of:

Binding Signature of Employer

Binding Signature of Contractor __________________________________________________

[Addendum showing the corrections if any made during the bid evaluation should be attached
with this agreement]

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Section IV. General Conditions of Contract (GCC)
1. General Provisions
1.1 Definitions In the Contract as defined below, the words and expressions
defined shall have the following meanings assigned to them,
except where the context requires otherwise:

The Contract 1.1.1 “Contract” means the Agreement signed between the
Employer and the contractor and the other documents
listed in the Special Conditions of Contract (SCC).

1.1.2 “Specification” means the document as listed in the

SCC, including Employer’s requirements in respect of
design to be carried out by the contractor, if any, and any
variation to such document.

1.1.3 “Drawings” means the Employer’s drawings of the Works

as listed in the SCC, and any variation to such drawings.

1.1.4 “Bill of Quantities” means the priced and completed bill

of quantities forming part of the Tender.

1.1.5 “Bid or Tender” means the contractor’s priced offer to the

Employer for the execution and completion of the Works
and the remedying of any defects therein in accordance
with the provisions of the Contract, as accepted by the
Letter of Acceptance.

1.1.6 “Letter of Acceptance” means the formal acceptance by

the Employer of the bid or Tender.

Persons 1.1.7 “Employer” means the person named in the Agreement

and the legal successors in title to this person, but not
(except with the consent of the contractor) any assignee.

1.1.8 “Contractor” means the person named in the Agreement

and the legal successors in title to this person, but not
(except with the consent of the Employer) any assignee.

1.1.9 “Party” means either Employer or the contractor.

Date, Times 1.1.10 "Commencement Date" means the date 14 days after
and Periods the date the Agreement comes into effect or any other
date agreed between the Parties.

1.1.11 "Day" means a calendar day.

1.1.12 "Time for Completion" means the time for completing

the Works as stated in the SCC (or as extended under
Sub-Clause 7.3), calculated from the Commencement
Date.

Money and 1.1.13 "Cost" means all expenditure properly incurred (or to be
Payments incurred) by the contractor, whether on or off the Site,
including overheads and similar charges, but does not
include profit.

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 1.1.14 “Contract Price”is the price stated in the letter of
Acceptance and thereafter as adjusted in accordance with
the provisions of the Contract.

1.1.15 “Retention Money” means the aggregate of all monies

retained by the Employer pursuant to Sub-Clause 11.3.

Other 1.1.16 “Contractor's Equipment" means all apparatus,

Definitions machinery, vehicles, facilities and other things required
for the execution of the Works but does not include
Materials or Plant.

1.1.17 "Country" means Nepal.

1.1.18 "Employer's Liabilities" means those matters listed in

Sub-Clause 6.1.

1.1.19 "Force Majeure" means an exceptional event or

circumstance: which is beyond a Party's control; which
such Party could not reasonably have provided against
before entering into the Contract; which, having arisen,
such Party could not reasonably have avoided or
overcome; and, which is not substantially attributable to
the other Party.

1.1.20 "Materials" means things of all kinds (other than Plant)

intended to form or forming part of the permanent work.

1.1.21 "Plant" means the machinery and apparatus intended to

form or forming part of the Permanent Works.

1.1.22 "Site" means the places provided by the Employer where

the Works are to be executed, and any other places
specified in the Contract as forming part of the Site.

1.1.23 "Variation" is an instruction given by the Employer which

varies the Works pursuant to Sub-Clause 10.1
1.1.24 "Works" means all the work and design (if any) to be
performed by the contractor including temporary work and
any Variation.

1.1.25 “Permanent Works” means the permanent works to be

executed (Including Plant) in accordance with the
Contract.

1.1.26 “Temporary Works” means all temporary works of every

kind (other than contractor’s Equipment) required in or
about the execution and completion of the Works and the
remedying of any defects therein.

1.1.27 “Adjudication” means the procedure to be adopted by

the contractor and the Employer in solving the dispute if it
is not solved amicably pursuant to Sub-Clause 15.1.

1.2 Interpretation Words importing persons or parties shall include firms and
organisations. Words importing singular or one gender shall
include plural or the other gender where the context requires.

1.3 Priority of The documents forming the Contract shall to be taken as mutually

18
 Documents explanatory of one another. If an ambiguity or discrepancy is
found in the documents, the Employer shall issue any necessary
instructions to the contractor, and the priority of the documents
shall be in accordance with the order as listed in the SCC.

1.4 Law The law of the Contract is stated in the SCC.

1.5 Communications Where provision is made for the giving or issue of any notice,
instruction, or other communication by any person, unless
otherwise specified such communication shall be written in the
language stated in the SCC as shall not be unreasonably withheld
or delayed.
If a notice given pursuant to Sub-Clause 1.5 fails to be delivered
due to failure to trace the address of the party then the notice
shall be published as public notice in a National daily newspaper
and when the notice is so published then the notice shall be
considered to be delivered to the concerned party.

1.6 Statutory The contractor shall comply with the laws of the countries where
Obligations activities are performed. The contractor shall give all notices and
pay all fees and other charges in respect of the Works.

2. The Employer
2.1 Provision of The Employer shall provide the Site and right of access thereto at
Site the times stated in the SCC.

2.2 Permits and The Employer shall, if requested by the contractor, assist him in
Licenses applying for permits, licences or approvals which are required for
the Works.

2.3 Employer's The contractor shall comply with all instructions given by the
Instructions Employer in respect of the Works including the suspension of all
or part of the Works.

2.4 Approvals No approval or consent or absence of comment by the Employer

or the Employer's representative shall affect the contractor's
obligations.

3. Employer's Representatives
3.1 Authorised One of the Employer's personnel shall have authority to act for
Person him. This authorised person shall be as stated in the SCC, or as
otherwise notified by the Employer to the contractor.

3.2 Employer's The Employer may also appoint a firm or individual to carry out
Representative certain duties. The appointee may be named in the SCC, or
notified by the Employer to the contractor from time to time. The
Employer shall notify the contractor of the delegated duties and
authority of this Employer's representative.

4. The Contractor
4.1 General The contractor shall carry out the Works properly and in
Obligations accordance with the Contract. The contractor shall provide all
supervision, labour, Materials, Plant and contractor's Equipment
which may be required. All Materials and Plant on Site shall be
deemed to be the property of the Employer.

19
 During continuance of the of the contract, the contractor and his
sub-contractors shall abide at all times by all labour laws,
including child labour related enactments, and rules made there
under.

A child who has not attained the age of fourteen (14) years shall
not be employed in any work as a labourer.

4.2 Contractor's The contractor shall submit to the Employer for consent the name
Representative and particulars of the person authorised to receive instructions on
behalf of the contractor.

4.3 Subcontracting The contractor shall not subcontract the whole of the Works. The
contractor shall not subcontract any part of the Works without the
consent of the Employer.

4.4 Performance As stated in the SCC, the Contractor shall deliver to the Employer
Security no later than the date specified in the Letter of Acceptance.

5. Design by Contractor
5.1 Contractor's The contractor shall carry out design to the extent specified, as
Design referred to in the SCC. The contractor shall promptly submit to the
Employer all designs prepared by him. Within 15 days of receipt,
the Employer shall notify any comments or, if the design
submitted is not in accordance with the Contract, shall reject it
stating the reasons. The contractor shall not construct any
element of the permanent work designed by him within 15 days
after the design has been submitted to the Employer or where the
design for that element has been rejected. Design that has been
rejected shall be promptly amended and resubmitted. The
contractor shall resubmit all designs commented on taking these
comments into account as necessary.

5.2 Responsibility The contractor shall remain responsible for his tendered design
for Design and the design under this Clause, both of which shall be fit for the
intended purposes defined in the Contract and he shall also
remain responsible for any infringement of any patent or copyright
in respect of the same. The Employer shall be responsible for the
Specification and Drawings.

6. Employer's Liabilities
6.1 Employer’s In this Contract, Employer's Liabilities mean:
Liabilities
a. war, hostilities (whether war be declared or not), invasion, act
of foreign enemies, within the Country,
b. rebellion, terrorism, revolution, insurrection, military or
usurped power, or civil war, within the Country,
c. riot, commotion or disorder by persons other than the
contractor's personnel and other employees, affecting the
Site and/or the Works,
d. ionising radiations, or contamination by radio-activity from
any nuclear fuel, or from any nuclear waste from the
combustion of nuclear fuel, radio-active toxic explosive, or
other hazardous properties of any explosive nuclear

20
 assembly or nuclear component of such an assembly, except
to the extent to which the contractor may be responsible for
the use of any radio-active material,
e. pressure waves caused by aircraft or other aerial devices
travelling at sonic or supersonic speeds,
f. use or occupation by the Employer of any part of the Works,
except as may be specified in the Contract,
g. design of any part of the Works by the Employer's personnel
or by others for whom the Employer is responsible,
h. any operation of the forces of nature affecting the Site and/or
the Works, which was unforeseeable or against which an
experienced contractor could not reasonably have been
expected to take precautions,
i. Force Majeure,
j. a suspension under Sub-Clause 2.3 unless it is attributable to
the contractor's failure,
k. any failure of the Employer,
l. physical obstructions or physical conditions, other than
climatic conditions, encountered on the Site during the
performance of the Works, which obstructions or conditions
were not reasonably foreseeable by an experienced
contractor and which the contractor immediately notified to
the Employer,
m. any delay or disruption caused by any Variation,
n. any change to the law of the Contract after the date of the
contractor's offer as stated in the Agreement,
o. losses arising out of the Employer's right to have the
permanent work executed on, over, under, in or through any
land, and to occupy this land for the permanent work, and
p. damage which is an unavoidable result of the contractor's
obligations to execute the Works and to remedy any defects.

7. Time for Completion

7.1 Execution of The contractor shall commence the Works on the
the Works Commencement Date and shall proceed expeditiously and
without delay and shall complete the Works within the Time for
Completion.

7.2 Programme The contractor shall submit to the Employer a programme for the
Works within the time stated in the SCC

7.3 Extension of Subject to Sub-Clause 10.3, the contractor shall be entitled to an

Time extension to the Time for Completion if he is or shall be delayed
by any of the Employer's Liabilities.
The contractor shall submit an application to the Employer for
extension of time, stating the causes for delay, 7 days before the
expiry of the Contract completion date.On receipt of an application
from the contractor, the Employer shall consider all supporting
details provided by the contractor and shall extend the Time for
Completion as appropriate.

21
7.4 Liquidated If the contractor fails to complete the Works within the Time for
Damages for Completion, the contractor's only liability to the Employer for such
Delay failure shall be to pay the amount stated in the SCC for each day
for which he fails to complete the Works. The total amount of
Liquidated damages shall not exceed the amount stated in the
SCC.

7.5 Bonus The Contractor shall be paid a Bonus calculated at the rate per
calendar day stated in the SCC for each day that the Completion
is earlier than the date for Time of Completion. The Employer
shall certify that the Works are complete, although they may not
be due to be complete. The total amount of Bonus shall not
exceed the amount stated in the SCC.

8. Taking-Over
8.1 Completion The contractor may notify the Employer when he considers that
the Works are complete.

8.2 Taking-Over The Employer shall notify the contractor when he considers that
Notice the contractor has completed the Works stating the date
accordingly. Alternatively, the Employer may notify the contractor
that the Works, although not fully complete, are ready for taking
over, stating the date accordingly.

The Employer shall take over the Works upon the issue of this
notice. The contractor shall promptly complete any outstanding
work and, subject to Clause 9, clear the Site.

9. Remedying Defects
9.1 Remedying The Employer may at any time prior to the expiry of the period
Defects stated in the SCC, notify the contractor of any defects or
outstanding work. The contractor shall remedy at no cost to the
Employer any defects due to the contractor's design, materials,
plant or workmanship not being in accordance with the Contract.

The cost of remedying defects attributable to any other cause

shall be valued as a Variation. Failure to remedy any defects or
complete outstanding work within a reasonable time of the
Employer's notice shall entitle the Employer to carry out all
necessary work at the contractor's cost.

9.2 Uncovering The Employer may give instruction as to the uncovering and/or
and Testing testing of any work. Unless as a result of any uncovering and/or
testing it is established that the contractor's design, materials,
plant or workmanship are not in accordance with the Contract, the
Contractor shall be paid for such uncovering and/or testing as a
Variation in accordance with Sub-Clause 10.2.

10. Variations and Claims

10.1 Right to Vary The Employer may instruct Variations to increase or decrease the
quantity of work or addition of new items or substitution of items
included in the contract, if determined necessary due to technical
reason during implementation of the contract.

22
10.2 Valuation of Variations shall be valued as follows:
Variations
a. where appropriate, at rates in the Contract, or
b. in the absence of appropriate rates, the rates in the Contract
shall be used as the basis for valuation,
c. at appropriate new rates, as may be agreed or which the
Employer considers appropriate, or
d. if the Employer so instructs, at daywork rates set out in the
SCC for which the contractor shall keep records of hours of
labour and contractor's Equipment, and of Materials used.

10.3 Early Warning A Party shall notify the other as soon as he is aware of any
circumstance which may delay or disrupt the Works, or which may
give rise to a claim for additional payment. The contractor shall
take all reasonable steps to minimise these effects.

The contractor's entitlement to extension to Time for Completion

or additional payment shall be limited to the time and payment
which would have been due if he had given prompt notice and has
taken all reasonable steps.

10.4 Right to Claim If the contractor incurs cost as a result of any of the Employer's
Liabilities, the contractor shall be entitled to the amount of such
cost. If as a result of any of the Employer's Liabilities, it is
necessary to change the Works, this shall be dealt with as a
Variation.

10.5 Variation and The contractor shall submit the Employer an itemised make-up of
Claim the value of Variations and claims within 30 days of the instruction
Procedure or of the event giving rise to the claim. The Employer shall check
and if possible agree the value. In the absence of agreement, the
Employer shall determine the value.

11. Contract Price and Payment

11.1 Valuation of The Works shall be valued as provided for in the SCC, subject to
the Works Clause 10.

11.2 Monthly The contractor shall be entitled to be paid at monthly intervals:

Statements
a. the value of the Works executed,
b. the percentage stated in the SCC of the value of Materials
and Plant delivered to the Site at a reasonable time,

subject to any additions or deductions which may be due.

The contractor shall submit each month to the Employer a

statement showing the amounts to which he considers himself
entitled.

11.3 Interim Within 30 days of acceptance of each statement, the Employer

Payments shall pay to the contractor the amount shown in the contractor's
statement less retention at the rate stated in the SCC, and less
any amount for which the Employer has specified his reasons for
disagreement. The Employer shall not be bound by any sum
previously considered by him to be due to the contractor.

23
11.4 Payment of One half of the retention and any such other retention shall be
First Half of paid by the Employer to the contractor within 15 days upon expiry
Retention of Defects Liability Period.

11.5 Payment of The remainder of the retention shall be paid by the Employer to
Second Half of the contractor within 15 days after submission of evidence
Retention document from the concerned Internal Revenue Office that the
contractor has submitted his Income Returns.

11.6 Final Payment Within 45 days of the latest of the expiry of the defects liability
period, the contractor shall submit a final account to the Employer
together with any documentation reasonably required to enable
the Employer to ascertain the final contract value.

Within 30 days after the submission of this final account, the

Employer shall pay to the contractor any amount due. If the
Employer disagrees with any part of the contractor's final account,
he shall specify his reasons for disagreement when making
payment

11.7 Currency Payment shall be in the currency stated in the SCC.

11.8 Delayed The contractor shall be entitled to interest at the rate stated in the
Payment SCC for each day the Employer fails to pay beyond the prescribed
payment period.

11.9 Advance a The Employer may make advance payment to the contractor
Payment of the amounts stated in the SCC within 15 days, against
provision by the contractor of an Unconditional Bank
Guarantee in a form and by a bank acceptable to the
Employer in amounts and currencies equal to the advance
payment. The Guarantee shall remain effective until the
advance payment has been repaid, but the amount of the
Guarantee shall be progressively reduced by the amounts
repaid by the contractor. Interest shall not be charged on
the advance payment.

b The contractor is to use the advance payment only to pay

for Equipment, Plant, Materials and mobilization expenses
required specifically for execution of the Contract. The
contractor shall demonstrate that advance payment has
been used in this way by supplying copies of invoices or
other documents to the Employer/ Engineer.

c Unless otherwise stated in the SCC, the advance payment

shall be repaid through percentage deductions from the
monthly certified statements in accordance with this clause.
Deductions shall commence in the next monthly statement
in which the value of work executed exceeds thirty (30%)
percent of the initial Contract Amount less provisional sums,
day works and VAT. Deduction shall be made at the
amortization rate of thirty (30%) percent of the amount of
each monthly statement until such time as the advance
payment has been repaid completely, provided that the
advance payment shall be completely repaid prior to the end
of 90 % of the approved contract period.

11.10. Price a) The Contract is subject to price adjustment only for

Adjustment construction material in accordance with this clause. If the

24
 Contract Agreement is concluded following the Invitation for
National Level Bidding and after the signing of the Contract
Agreement if the price of the construction materials stated in
the SCC increase or decrease in an unexpected manner in
excess of ten (10%) percent in comparison to the base price
stated in the SCC, then the price adjustment for the increase
or decrease of price of the construction material beyond 10%
shall be made by applying the following formulas:

For unexpected increase in price

P =[R1 –(R0 ×1,10)]× Q

For unexpected decrease in price

P =[R1 –(R0 ×0.90)]× Q

Where:
“ P” is price adjustment amount
“ R1” is the present price of the construction material
”
“ R0 is the base price of the construction material
“ Q “ is quantity of the construction material consumed in
construction during the period of price adjustment
consideration
(b) The Price Adjustment amount pursuant to the clause will be
limited to a maximum of 25% of the initial Contract Amount
unless otherwise is specified in the SCC

c) The Price Adjustment provision pursuant to Clause 11.10 (a)

shall not be applicable if the contract is not completed in time
due to the delay caused by the contractor or the contract is a
Lump sum Contract or a Fixed Budget Contract.

11.11 Local a. The prices tendered by the Contractor shall include all
Taxation & taxes that may be levied in accordance to the laws and
Value Added regulations in being in Nepal on the date 30 days prior to
Tax the closing date for submissions of Bids on the
Contractor’s equipment, plant and materials acquired for
the purpose of the Contract and on the services performed
under the Contract. Nothing in the Contract shall relieve
the Contractor from his responsibility to pay any tax that
may be levied in Nepal on profits made by him in respect
of the Contract.

b. The Contract is not exempted from value added tax. An

amount specified in the schedule of taxes shall be paid by
the Contractor in the concerned VAT office within time
frame specified in VAT regulation.

12. Termination of Contract

12.1 Default by If the contractor abandons the Works, refuses or fails to comply
Contractor with a valid instruction of the Employer or fails to proceed
expeditiously and without delay or is, despite a written complaint,
in breach of the Contract, the Employer may give notice referring
to this Sub-Clause and stating the default.

If the contractor has not taken all practicable steps to remedy the
default within 15 days after the contractor's receipt of the
Employer's notice, the Employer may, by a second notice given
within a further 22 days, terminate the Contract. The Contractor

25
 shall then demobilize from the Site leaving behind Materials and
Plant and any contractor's Equipment which the Employer
instructs in the second notice to be used until the completion of
the Works.

12.2 Default by If the Employer fails to pay in accordance with the Contract, or is,
Employer despite a written complaint, in breach of the Contract, the
contractor may give notice referring to this Sub-Clause and stating
the default. If the default is not remedied within 7 days after the
Employer's receipt of this notice, the contractor may suspend the
execution of all or parts of the Works.

If the default is not remedied within 30 days after the Employer's

receipt of the contractor's notice, the contractor may, by a second
notice given within a further 22 days, terminate the Contract. The
contractor shall then demobilise from the Site.

12.3 Insolvency If a Party is declared insolvent under any applicable law, the other
Party may by notice terminate the Contract immediately. The
contractor shall then demobilise from the Site leaving behind, in
the case of the contractor's insolvency, any contractor's
Equipment which the Employer instructs in the notice is to be
used until the completion of the Works.

12.4 Termination Notwithstanding the above, the Employer shall be entitled to

by terminate the Contract in public interest, at any time at the
Convenience Employer’s convenience, by giving notice of such termination to
the contractor.

12.5 Payment upon After termination, the contractor shall be entitled to payment of the
Termination unpaid balance of the value of the Works executed and of the
Materials and Plant reasonably delivered to the Site, adjusted by
the following:
a. any sums to which the contractor is entitled under Sub-
Clause 10.4,
b. any sums to which the Employer is entitled,
c. if the Employer has terminated under Sub-Clause 12.1 or
12.3, the Employer shall be entitled to a sum equivalent to
20% of the value of those parts of the Works not executed at
the date of the termination,
d. if the contractor has terminated under Sub-Clause 12.2 or
12.3, the contractor shall be entitled to the Cost of his
suspension and demobilisation together with a sum
equivalent to 10% of the value of those parts of the Works not
executed at the date of termination

The net balance due shall be paid or repaid within 30 days of the
notice of termination.

13. Risk and Responsibility

13.1 Contractor's The contractor shall take full responsibility for the care of the
Care of the Works from the Commencement Date until the date of the
Works Employer's notice under Sub-Clause 8.2. Responsibility shall
then pass to the Employer. If any loss or damage occurs to the
Works during the above period, the contractor shall rectify such

26
 loss or damage so that the Works conform to the Contract.

Unless the loss or damage occurs as a result of an Employer's

Liability, the contractor shall indemnify the Employer, the
Employer's contractors, agents and employees against all loss or
damage happening to the Works and against all claims or
expense arising out of the Works caused by a breach of the
Contract, by negligence or by other default of the contractor, his
agents or employees.

13.2 Force Majeure If a Party is or shall be prevented from performing any of its
obligations by Force Majeure, the Party affected shall notify the
other Party immediately. If necessary, the contractor shall
suspend the execution of the Works and, to the extent agreed
with the Employer, demobilise the contractor's Equipment.

If the event continues for a period of 90 days, either Party may

then give notice of termination which shall take effect 30 days
after the giving of the notice.

After termination, the contractor shall be entitled to payment of the

unpaid balance of the value of the Works executed and of the
Materials and Plant reasonably delivered to the Site, adjusted by
the following:

a. any sums to which the contractor is entitled under Sub-

Clause 10.4,
b. the Cost of his suspension and demobilisation,
c. any sums to which the Employer is entitled.

The net balance due shall be paid or repaid within 30 days of the
notice of termination.

14. Insurance
14.1 Extent of The contractor shall, prior to commencing the Works, effect and
Cover thereafter maintain insurances in the joint names of the Parties:
a. for loss and damage to the Works, Materials, Plant and the
contractor's Equipment,
b. for liability of both Parties for loss, damage, death or injury to
third parties or their property arising out of the contractor's
performance of the Contract, including the contractor's liability
for damage to the Employer's property other than the Works,
and
c. for liability of both Parties and of any Employer's
representative for death or injury to the contractor's personnel
except to the extent that liability arises from the negligence of
the Employer, any Employer's representative or their
employees.

14.2 Arrangements All insurances shall conform with any requirements detailed in the
SCC. The policies shall be issued by insurers and in terms
approved by the Employer. The contractor shall provide the
Employer with evidence that any required policy is in force and
that the premiums have been paid.

27
 All payments received from insurers relating to loss or damage to
the Works shall be held jointly by the Parties and used for the
repair of the loss or damage or as compensation for loss or
damage that is not to be repaired.

14.3 Failure to If the contractor fails to effect or keep in force any of the
Insure insurances referred to in the previous Sub-Clauses, or fails to
provide satisfactory evidence, policies or receipts, the Employer
may, without prejudice to any other right or remedy, effect
insurance for the cover relevant to such default and pay the
premiums due and recover the same as a deduction from any
other monies due to the contractor.

15. Resolution of Disputes

15.1 Adjudication If any dispute shall arises out of or in connection with the
Contract, including any valuation or other decision of the
Employer, then the parties shall attempt to settle such dispute
amicably within 15 days of the notification of the Employer’s
decision. However if the dispute is not settled amicably or no
attempt is made to settle the dispute amicably then the dispute
shall be referred by either Party to adjudication in accordance with
the attached Rules of Adjudication (“The Rules”). The adjudicator
shall be any person agreed by the Parties. In the event of
disagreement, the adjudicator shall be appointed in accordance
with the Rules.

15.2 Notice of If a Party is dissatisfied with the decision of the adjudicator or if no

Dissatisfaction decision is given within the time set out in the Rules, the Party
may give notice of dissatisfaction referring to this Sub-Clause
within 30 days of receipt of the decision or the expiry of the time
for the decision. If no notice of dissatisfaction is given within the
specified time, the decision shall be final and binding on the
Parties.

15.3 Arbitration A dispute which has been the subject of a notice of

dissatisfaction, as per sub clause 15.2 shall be referred to a single
arbitrator under the rules specified in the SCC. In the absence of
agreement, the arbitrator shall be designated by the appointing
authority specified in the SCC. Any hearing shall be held at the
place specified in the SCC and in the language referred to in Sub-
Clause 1.5.

16.Conduct of
16.1 The Bidder shall be responsible to fulfil his obligations as
Bidders
per the requirement of the Contract Agreement, Bidding
documents, GoN’s Procurement Act and Regulations.
16.2 The Bidder shall not carry out or cause to carryout the
following acts with an intention to influence the
implementation of the procurement process or the
procurement agreement :
a) give or propose improper inducement directly or
indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent
practice

28
 d) interference in participation of other prospective bidders.
e) coercion or threatening directly or indirectly to cause
harm to the person or the property of any person to be
involved in the procurement proceedings,
f) collusive practice among bidders before or after
submission of bids for distribution of works among
bidders or fixing artificial/uncompetitive bid price with an
intention to deprive the Employer the benefit of open
competitive bid price..
g) contacting the Employer wit an intention to influence the
Employer with regards to the bid or interference of any
kind in examination and evaluation of the bids during the
period after opening of bids up to the notification of
award of contract

17. Blacklisting 17.1 Without prejudice to any other right of the Employer under this
Bidder Contract, GoN, Public Procurement Monitoring Office may
blacklist a bidder for his conduct up to three years on the
following grounds and seriousness of the act committed by
the bidder:
a) if it is proved that the bidder committed acts pursuant to the
Sub - Clause 16.2,
b) if the bidder fails to sign an agreement pursuant to ITB Sub
– Clause 27.4,
c) if it is proved later that the bidder/contractor had committed
substantial defect in implementation of the contract or had
not substantially fulfilled his obligations under the contract
or the completed work is not of the specified quality as per
the contract ,
d) if convicted by a court of law in a criminal offence which
disqualifies the bidder from participating in the contract.
e) if it is proved that the contract agreement signed by the
bidder was based on false or misrepresentation of bidder’s
qualification information,
f) other acts mentioned in the Bidding Data

33.2 A firm declared blacklisted and ineligible by the GoN shall be

ineligible to bid for a contract during the period of time
determined by the PPMO.

29
Section V Special Conditions of Contract (SCC)
This SCC forms part of the Agreement

[Note: with the exception of the items for which the Employer's requirements have been
inserted, the Bidder shall complete the following information before submitting his bid.]

Item Clause Data

Documents forming the Contract 1.1.1 Document (delete if not applicable)

listed in the order of priority
a. The Agreement
b. Special Conditions of Contract
c. General Conditions of Contract
d. The Technical Specifications
e. The Drawings
f. The contractor's tendered design (if any)
g. The Bill of Quantities
h. …………………………...(if any)
Time for Completion 1.1.12 Aashad 30, 2073
Law of Contract 1.4 Applicable Law of Nepal
Language 1.5 English or Nepali
Provision of Site 2.1 On the commencement date*
Authorised person 3.1 Will be Informed later.
Name and address of Employer's Civil Engineering Division
representative (if known) 3.2
Performance security :
Amount 4.4 5 % of the contract price
Form 4.4 Attached in section X
Requirements for contractor’s 5.1 Specification Clause No’s…….
design (if any)
Time for the submission of 7.2 Within 14 days* of the commencement date
programme
Liquidated Damages for Delay 7.4 0.05% of Contract Price per day up to a maximum
of 10%* of sum stated in the Agreement
Bonus or early completion (if any) 7.4 Not Applicable
Period for notifying defects 9.1 365 days* calculated from the date stated in the
notice under Sub-Clause 8.2.

Daywork rates (if any) 10.2 (e) Not Applicable

30
 Valuation of the Works* 11.1 [insert “Ad measurement with bid bill of quantities” or
“Lump Sum price in case of Lump sum contract”]

Percentage of value of 11.2 (b) Not Applicable

Materials and Plant Not Applicable

Percentage of retention 11.3 5% of each Payment made to the Contractor

Currency of payment 11.7 Nepalese Rupees

Rate of interest 11.8 …………. % per annum

Advance Payment 11.9 20 % of the contract price

Price Adjustment 11.10. Construction Base Source

Base Price
Material Price (Ex-factory ) (factory)
I. Cement NRs………../ MT
ii. Steel
a)Reinforcement NRs………./ MT
iii.Brick
a) Chimney NRs………./ No
b) Machine Made NRs………./ No
iv. Others
The base prices of the construction materials shall be taken
as of 30 days before the deadline for submission of the Bid.
For the purpose of calculation of price adjustment, the Ex-
factory price of the same source shall be taken into
consideration.
Type of Cover Amount to Cover
Insurances 14.2 The Works. Material. Plant The Sum stated in the
And Fees Agreement plus 15%

Contractor’s Equipment Full Replacement Cost

Third Party injury to persons and
damage to property Insert amount per
person, number of persons
Workers and number of occurrences

As per Labour Act of

Nepal

Adjudication 15.1 Appointing Authority: Nepal Council of Arbitration (NEPCA}

Arbitration 15.3 Arbitration Rules : Nepal Council of Arbitration(NEPCA}

Appointing Authority: Nepal Council of Arbitration (NEPCA}

Place of Arbitration: [insert place]

Language; English ,Nepali

31
Section VI. Technical Specification

32
 SECTION 100

GENERAL REQUIREMENTS
101. BID DOCUMENTS
The Specifications and Bills of Quantities shall be read in conjunction with the other Bid
Documents. All the documents and drawings are to be regarded as mutually explanatory. In the
event of any discrepancy or assumed discrepancy being found between them, the Contractor
shall immediately inform the Chief Officer, Civil Engineering Division about the matter in
writing and the Chief Officer of CED will issue his instructions in the matter in accordance with
the Conditions of Contract.
Notes: Engineer means Civil Engineering Division, Tribhuvan International Airport Civil
Aviation Office,
Engineer's Representative means Representative from Civil Engineering Division,
Tribhuvan International Airport Civil Aviation Office,

102. STANDARDS
All standards referred to in the Bid Documents or on any Contract Documents or Contract
Drawings or instructions forming part of the Contract or issued under the provisions of the
Contract shall refer to the editions in effect on the date of issue of the Tender Documents, or any
superseding Standard, including all amendments published thereto unless some other edition is
specially referred to herein or referred to in instructions issued subsequent to the signing of the
Contract.

The following references to standards shall be interpreted as follows:

BS Standard by British Standards Institute

CP Code of Practice by British Standards Institute
IS Standard by Indian Standards Institute
ASTM Standard by American Society for Testing and Materials
NSM Standard by Nepal Bureau of Standard and Metrology
Equivalent internationally recognized standards would be accepted as meeting the requirements
of the specification subject to approval of the Engineer.

Where it is unclear which specific provisions of a Standard are intended to apply, or where
Standards may conflict in their requirements, the matter shall be referred to the Engineer who
shall make a determination, which shall not constitute a variation to the contract.

The Contractor shall maintain a complete set of Standards referred to in the specification, and
those deemed equivalent, on site for review by the Engineer upon request.

103. APPROVAL
The terms “approved”, “directed”, “instructed”, “satisfactory”, and “required’ shall mean to
the approval, direction, instruction, satisfaction or requirement of the Engineer or the it’s
Representative.

104. LOCATION
The site is located at Tribhuvan International Airport Gauchar, Kathmandu. The airport is
located at 4390 ft or 1338 m above mean sea level. The airport is located at latitude of 850 21’

33
28” and longitude of 270 41’ 50”N. The average temperature is 27.8 Celsius Degree.

105 DESCRIPTION OF WORKS

Tribhuvan International Airport (TIA)

a. Under this contract package major works comprise:

Renovation of Domestic Terminal Building at TIA.

106 RESTRICTIONS ON THE CONTRACTOR, METHOD OF WORK AND
SAFETY PROCEDURES

The Contractor shall take account of the restrictions, method of work, sequence of work and
other conditions detailed in the following sub-clauses of this clause.

106.1 Definitions

The definitions of the terms used in this clause of the Specification are as follows:

a. “Passenger Area” means any area of the terminal, and associated apron areas used for
the processing of embarking and disembarking passengers.

b. “Public Areas” means those areas in and adjacent the terminals where there is no
restriction on public access.

c. “Restricted Public Area” means any area of the terminal where public access is
permitted by payment of fee.

d. “Staff Area” means any area accessible to airport, airline and other airport workers with
suitable passes, but which is restricted to public or passenger access.

e. “Civil Aviation Authority of Nepal (CAAN)” means, for the purposes of this
Specification the official or officials within Department of Civil aviation who has/have
been so designated in writing to the Contractor and to the Engineer to issue instructions
and to give directions as to the manner in which the works are to be carried out within
the Movement Area.

f. “ATC” means Air Traffic Control.

g. "CED" means Civil Engineering Division.

h. "TIACAO" means Tribhuvan International Airport Civil Aviation Office.

106.2 Contractor’s Responsibility

he Contractor shall be solely responsible for all the equipment and personnel employed directly
or indirectly and shall be responsible for ensuring that the requirements and restrictions imposed
by this specification are understood and adhered to by all personnel engaged under this contract
in the execution of the works.

106.3 General Safety

During the continuance of the Works the airport as well as domestic apron area will be in
operational use and the Contractor must be all times ensure his work does not cause a hazard to
flying operations and to aircraft on the ground. He must also ensure the safety of all persons
including the public, passengers, airport and airline staff and his own labor force at all times.

34
Special consideration for minimum disruptions and safety of air traffic, travelers, and public and
operation staff shall be paramount during construction.

A detailed safety management plan for airport and site safety during construction shall be
established by the Contractor and adhered to for all aspects of the work with special emphasis
on airport operations and public interfaces. The minimum standard of site safety will be as per
standard code for occupational health and safety act and regulations for construction projects.
The Contractor shall submit construction safety code for Engineer's approval.

106.4 Liaison

For the purpose of complying with the requirements of this section of the specification and for
exchanging information on flying operations, terminal operations and day-to-day restrictions
which may be imposed on the Works the Contractor shall designate a member of his staff to be
called the Contractor’s Liaison Officer who shall be solely responsible for the receipt of
instructions from the Civil Engineering Division, Tribhuvan International Airport Civil Aviation
Office.

The Contractor’s Liaison Officer shall be a senior member of the Contractor’s supervisory staff
and he shall have a good understanding of civil aviation and operational aspects of the airport.
He shall be fluent both in Nepalese and English languages. The Contractor’s Liaison Officer
shall also be responsible for maintaining and posting an up to date list of telephone numbers of
key personnel of the Civil Engineering Division TIACAO and the Contractor, who should be
contacted in the event of difficulties or emergencies while the Works are in progress.
106.5 Airport Passes
All employees of the Contractor and Sub-contractors (if any) must visibly display an airport
Identity pass on their person while working in the Movement Area or airfield area. Passes may
be obtained on application to the General Manager, TIACAO stating the name, address and
position or occupation of the member of staff together with two recent visa size photographs.
The Contractor shall be responsible for ensuring that all staff is in possession of valid passes.
The validity period for each card will be determined by the General Manager and expired cards
shall be returned to the General Manager with applications for renewed cards. On termination of
employment of any member of staff the Contractor shall be held responsible for returning such
person’s pass to the Airport Manager.

The Civil Engineering Division of the Airport reserves the right to permanently remove from
the site any member of the Contractor’s staff who is found not to be in possession of a valid
Airport Identity Pass. Mobile equipment not displaying a valid airport permit shall under no
circumstances be permitted to enter the airside and/or the Movement Area.
106.6 Security Barriers

Security barriers, such as fences, walls, gates, doors, locks and door hardware, between security
zones of the Airport which are required to be opened, removed or otherwise breached for
purposes of completing the work, shall be reinstated as soon as possible and at the end of each
working day. If it is necessary to remove barriers for extended periods, equivalent temporary
barriers shall be provided and located so as to maintain security. If it is impractical to reinstate
barriers at the end of the working day, alternative arrangement shall be made by the Contractor
in consultation with the Airport Security Police and Airport CED Manager.

The position and construction of temporary security barriers shall be subject to approval of the
Engineer. Should the Contractor fail to reinstate such barriers as required, other forced
arrangement may be made to do so with any resulting costs being recovered from the
Contractor?

35
When it is necessary to remove or breach security barriers to gain access for construction, the
Contractor shall supply an uniformed security guard to control access to authorized personnel
bearing suitable passes. Access control procedures will be established and monitored by the
Airport Security Police. If required the Contractor shall be responsible for the cost of any
security personnel required in excess of normal airport requirements.

106.7 Airport Operating Schedule

The Contractor shall, as may be required, familiarize himself with the schedule of aircraft
movements at the airport, and take account of consequent operating requirements, and peak
times of activity when planning daily, weekly, and seasonal plans of work.

106.8 Hours of Work

Further to requirements of the Conditions of Contract, it is hereby acknowledged that out of

hours work will be required to complete the contract, in order to minimize disruption to and
comply with airport operating requirements. The extent of out of hours work shall be approved
by the Engineer for each activity and phase of work. The Contractor will provide to CED Chief
Officer of the airport, the Airport Security Police and the Engineer on a weekly basis a schedule
of proposed hours of work. Should changes be required, notification to the same parties will be
made immediately.

106.9 Brief Description of Construction Package, Sequence of Work and Constraints

The following clauses define the general sequence of construction for the Contract Package and
describe the limitations on work in each area for operational reasons. The Civil Engineering
Division TIACAO may from time to time require variations to the work areas or place
additional or lift some restrictions or limitations on the areas. The Contractor shall take account
of such variations in his Tender and shall not be entitled to any additional payment in the event
of such variations.
In accordance with the Conditions of Contract the Contractor shall submit a detailed program
showing the order in which individual sections of the work are to be constructed and in doing
shall take account of the constraints and restrictions described in this Section of the
specifications and restrictions and limitations of the contract package and work area described
below.
The Contractor shall also examine the site for additional information on various constraints that
may apply.
1. General

The Contractor shall generally be allowed to work on airfield, subject to the security and safety
conditions of clause 105 of this specification and only if the workforce are fully supervised and
do not enter any aircraft maneuvering areas. If the Contractor cannot demonstrate that the works
will be carried out in manner that is satisfactory to the CED, TIACAO further restrictions will
be imposed to ensure the safety of airport operation and the Contractor shall not have any
recourse to additional compensation.

2. Access to Work Yard and Site

Contractor may obtain access to the works at various points subject to the security, safety and
coordination. Access to site will be provided by CED, TIACAO through existing entry points or
gates subjected to security checking.

36
107 COORDINATION WITH OTHER CONTRACTORS
The contractor will work in conjunction with other contractors working in the same location so
as to avoid conflicts in movements and progress of works. The contractor shall pay
compensation to other contractors if his activities are found to cause negative impact or delay on
progress of works by other contractors.

108 SUBMITALS
108.1 General Requirements

The Contractor will maintain an approved system of recording and tracking submissions
indicating dates, status (i.e. approved, not approved, approved subject to conditions), quantities,
and other details as required. Copies of all approved submissions will be retained securely and
properly filed on site, available for reference by the Employer at any time.
108.2 Program of Work

As soon as possible after the Letter of Acceptance and before signing of the Contract
Agreement, the Contractor shall submit in triplicate the program and particulars required under
clause 27 of the Conditions of Contract. In the program and particulars the Contractor shall
provide details of how he proposes to carry out the Works including:
1. A Critical Path analysis showing all major activities, trades and phases of works. Detail
shall be sufficient and to the satisfaction of the Engineer to demonstrate the relationships
and interdependencies between all aspects of the work. The Critical Path Analysis shall
identify off-site as well as on-site activities including delivery lead times, shop drawing
production and approval, materials testing, samples submission and preparation of mock-
ups. The Critical path Analysis shall be prepared by a competent and experienced
construction programmer using a computer program approved by the Engineer. It shall be
prepared so as to permit revisions, inclusion of additional detail and regular updates as the
work progress. The Critical Path analysis shall include sufficient time for contingencies.

2. A detailed Statement of Construction Management Procedures the Contractor proposes to

adopt. The Contractor shall also state his intentions regarding shift work. In all respects he
shall pay particular attention to the security and operational requirements of the airport and
to seasonal rainfall and to the construction sequencing and restrictions identified for the
Contract Package.

108.3 Samples

The Engineer may at his discretion request or take samples of any material or product intended
for use in the Works. Where samples are requested in the specification they shall be submitted
in the number requested or if not specified then as directed by the Engineer.

Samples will be of the type and size specified and be fully representative of the materials
proposed to be used. Samples will be indelibly and clearly marked with the date of submission,
material reference and any other data required to determine the source and kind of sample.

One or more samples of each kind submitted will either be returned marked “ACCEPTED” and
signed by a representative of the Engineer or the Contractor will be requested to provide new
samples and be notified of deficiencies present in the submitted samples.

One or more “accepted” samples will be retained by the Engineer for comparison with materials
and workmanship supplied and will form the standard of acceptance.

37
One or more “accepted” samples shall be retained at the Contractor’s site office and be available
for reference on request.

The Engineer may reject any materials and goods which in his opinion are inferior to the
samples thereof previously approved and the Contractor shall promptly remove such materials
and goods from the Site.

108.4 Copies of Orders

The Contractor shall provide the Engineer with one copy of all orders for the supply of materials
and goods required in connection with the Works as the Engineer may require.
108.5 Photographic Record of Existing Condition

A complete photographic record of existing site conditions shall be undertaken by the

Contractor before commencing any work on site. The record shall include existing pavement,
drainage and site areas affected by the work in sufficient detail to clearly portray all existing
conditions of structures, finished, surfaces, fixtures and fittings. Submit one copy of 100 x 150
mm colour prints with negatives for Engineer’s approval. No work shall be undertaken prior to
receiving approval.
108.6 Photographic Progress Record

The Contractor shall provide a photographic record of the execution of the works by having
photographs taken at weekly intervals from such points as the Engineer may specify. The
Contractor shall supply three copies of 100 x 150 mm colour prints together with the negative of
each photograph to the Engineer within five days of the end of the month. Two sets of the
aforementioned prints shall be captioned, and a type-written label indicating the caption, date
and signature of the Contractor and the Engineer’s Representative shall be affixed to the back of
each photograph. One copy of such prints will be returned to the Contractor.

109 CONTRACT DRAWINGS

The Contractor shall be issued with one copy of each of the Contract Drawings.

110 CONSTRUCTION DRAWINGS

The Contractor shall prepare and submit construction drawings for details of construction work.

The construction drawings shall show at a suitable scale all the particulars of the work including
dimension, materials, finishes, lines, levels, tolerances and other details to show compliance
with the specification, the suitability of item for its compliance.

The Engineer and its representatives will review the drawings only for their general compliance
with the intent of the drawings and specifications. Responsibility for accuracy of dimensions,
technical design, performance and suitability for intended purpose of the items shall remain with
the Contractor.

Three (3) copies of each construction drawing are to be submitted in sufficient time to allow for
review, possible revisions and resubmission for approval prior to ordering materials, fabricating,
installing and coordinating all affected and contingent work without delay to the schedule of
construction.

Two copies of all construction drawings will be retained by the Engineer. The remainder copies
will be returned to the Contractor signed by a representative of the Engineer and marked
“REVIEWED” with either:

a. a request for resubmission and notes as to deficiencies;

38
 b. a note indicating the drawing has been reviewed but is subject to conditions noted or
listed, and does not require resubmission; or

c. a note indicating the drawing has been reviewed and is considered to meet the intent of
the design and does not require resubmission.

The drawings shall be submitted at least two weeks before the commencement of construction
of work for which these drawings are intended.

The construction should not commence until construction drawings have been reviewed and
are returned under the Conditions of Contract except where instructed by the Engineer.

111 QUALITY OF MATERIAL AND LABOUR

All materials incorporated in the Works shall be new, of the best quality of their respective
kinds and entirely suitable for their intended purpose and conditions of services. The
Workmanship in every case shall be of the best character and the whole shall be subject to the
approval of the Engineer.

112 APPROVAL OF SUPPLIERS OF MATERIALS

Before entering into any Sub-contract for the supply of any materials or goods the Contractor
shall obtain the Engineer’s approval in writing of the Sub-contractor from whom he proposes to
obtain such materials or goods. Should the Engineer at any time be dissatisfied with such
materials or goods or with the methods of operations carried out at such Sub-contractor’s works
or place of business, he shall be empowered to cancel his previously given approval of such
Sub-contractor and to specify any other supplier and the Contractor shall bear any additional
cost thereof.

113 WEATHER CONDITIONS

Without limiting his liabilities under the Contract, the Contractor shall make suitable
arrangements to protect the Works, Temporary Works and Constructional Plant against the
effects of weather. Unless otherwise specified all Works are to be carried out in the dry and they
shall be kept free from water coming from any source whatsoever to the satisfaction of the
Engineer and at the Contractor’s expense. All materials shall be stored on Site in a manner
approved by the Engineer’s Representative and the Contractor shall carefully protect from the
weather all work and materials which may be affected thereby.

114 UNITS OF MEASUREMENT

In general, the units of measurement to be used in connection with the Contract are the
International System of Units (SI).

115 PROVISIONAL SUMS

Provisional sums are identified in the Bill of Quantities. The Bill of Quantities also provides the
amounts of all provisional sums. Expenditure of Provisional Sums will be at the direction of the
Engineer in accordance with the General Conditions of the Contract Agreement and shall not be
specifically limited by the scope identified.

116 ASSISTANCE FOR THE ENGINEER’S REPRESENTATIVE

The Contractor shall provide at all times during the continuance of the Contract all such junior
survey staff including chainmen, staff men and laborers for the exclusive use of the Engineer’s
Representative and his staff as the Engineer may deem to be necessary for carrying out his
duties in connection with the Contract. The workmen shall be selected for their intelligence and
knowledge of the English language and so far as is possible the same staff shall be provided
throughout the period of the Contract.

39
GENERAL SPECIFICATION FOR CIVIL WORKS

The Work shall be carried out according to these Specifications whether specifically mentioned
elsewhere or not. No extra in any form will be paid unless it is definitely stated as an item in the
Bill of Quantities.

Whenever the Specifications are not given or when the Specifications are ambiguous, the
relevant Nepal Standard or Indian Standards or British Standards and further amendments will
be considered as final and binding.

All Works shall be carried out simultaneously with electrical, plumbing, sanitary and other
services and in co-operation with the Contractors the above services. The Work shall be carried
on till it is completed satisfactorily along with the completion of other essential services. The
building Contractor shall keep the other Contractors informed of the proposed programme of
Work, well in advance, so that the building Work is not hindered. The Contractor shall further
cooperate with other Contractors in respect of any facility required by them e.g. making holes in
shuttering for sanitary, pipes, electric conduits, fan hook etc. However, no extra payment shall
be admissible to him for such reasonable assistance and facilities afforded to other Contractors
and the building Contractors shall be deemed to have taken these factors into consideration
while quoting his rates.
The Work shall be related to the drawings, which the Contractor is presumed to have studied.
Nothing extra will be paid for any item because of its shape, location or other difficult
circumstances, even if the schedule makes no distinction, as long as the item is shown in the
drawings.

The source of materials stated in the Specifications is those from which materials are generally
available. However, materials not conforming to Specifications shall be rejected even if they
come from the stated sources. The Contractor should satisfy himself that sufficient quantity of
materials of acceptable Specification is available form the stated or other sources.

GENERAL:
1. Office accommodation and WC :
The Contractor shall provide at his own expense adequate temporary accommodation and toilet
facilities for his Workmen and keep the same in good conditions. This may be done to suit Site
conditions with the approval of Project Engineer. The above mentioned temporary structures
shall be removed on the completion of Works at Contractor's own cost. All materials shall
belong to the Contractor.

2. Drawing, Instructions, Measurements:

All the Work shall be done according to the drawings and instructions of the Project Engineer
and the Contractor shall arrange to test materials and/or portions of the Work at his own cost in
order to prove their soundness and sufficiency. If after any such test, and in the opinion of the
Project Engineer, any Work or position of Work is found to be defective or unsound, the
Contractor shall pull down or re-execute the same at his own cost. Such rejected materials shall
be removed from the Site immediately.

3. Preparing and cleaning the Site:

The Site described and shown on the plans plus 6 M (20ft.) all around the building shall be
cleared of all obstructions, loose stones and materials, rubbish of all kinds as well as
brushwood. All holes or hollows whether originally existing or produced by removal of loose
stone or brushwood shall be carefully filled up with earth, well rammed and levelled off as
directed. Also the Contractor shall dress the Site 6 M (20ft.) all around the buildings after
completions, maximum cutting or filling being 30cm (12 inches). This shall be as per bill of
Quantities.

40
5. Measuring Materials:
Materials requiring measuring shall be measured separately in boxes of appropriate sizes
before being mixed as directed by Project Engineer.

6. Temporary Protections:
All trenches, walls newly laid concrete or other Work requiring protection from weather or
accidental injury shall be protected by means of tarpaulin or in any other way so as to keep the
Work safe from damage. Nothing extra shall be paid for on this matter.

7. Quality of Work:
Materials, tools and plants, and Workmanship shall be the best of several kinds obtainable in
the market and as approved by the Project Engineer.

8. Leave clean:
On completion, all Work must be cleaned down, rubbish removed and the Works and land
cleared of rubbish, surplus materials, debris and other accumulations and everything left in a
clean and orderly conditions.

9. Samples:
Samples of each class of Work required and materials shall be submitted by the Contractor for
the approval of the Project Engineer and after such approval, these samples shall be deposited
at a place chosen by the Project Engineer. The Contractor will be required to perform all Work
under the Agreement in accordance with these approved samples.

10. Provisional Items:

All provisional Work items in the schedule shall be carried out at the discretion of the Project
Engineer, and may or may not form part of the Agreement. If such provisional items are carried
out by the Contractor, the rates shall be settled as for extra items as stated in the conditions of
Agreement.

11. Storage:
Safe, dry and proper storage shall be provided for all materials, particularly cement. For
installed at the Site of Work the Project Engineer may reduce the capacity of storage.

12. Water:
Water shall be clean and free from oil, waste, acid or other organic matter in solution or
suspension. Water shall be from municipal main or tank or well water. Storage for the water
shall be of sufficient size and as directed by the Project Engineer. The Contractor shall make his
own arrangements for water supply.

13. Earth:
Earth for filling and terracing shall be free from all rubbish, organic or vegetable growth including
roots, weeds etc. All clods shall be first broken-down.

14. Sand:
Sand shall be clean from river and of approved quality and free from salt, earth, dust or other
impurities. If required by the Project Engineer, it shall be washed with clean water and not more
than 5% of fine materials (clay, dust and silt) will be allowed, as tested by the settlement in
water. The sand may contain particle size up to 5mm and should be well graded. Coarse sand
for concrete Work shall be from local rivers or from any other place as approved by the Project
Engineer and shall conform to cement concrete specification.

15. Portland Cement:

N.S. or I.S. mark awarded Ordinary Portland Cement should be used. Cement shall of fine
quality with its chemical composition, consistency, tensile and compressive strength,
soundness, setting time according to I.S. It should be free from lumps. It should be stored in a
weatherproof building on a floor at least 30cm high from floor level. It should be stacked 60cm
clear from the walls, and stored in such manner that permits easy access for inspection. It

41
should also be stacked in not more than 6 layers high to prevent bursting of bottom bags. The
Project Engineer may order testing of cement if required. In no case cement of grade less than
43 shall be used.

16. Stone:
Stone for rubble masonry shall be of the best of its kind. It shall be strong, angular, and free
from flakes and must be of quality approved by the Project Engineer. No earthy or discoloured,
weather or water worn stone shall be used.

17. Cement Mortar:

Cement mortar shall be of proportions specified for each type of Work. It shall be composed of
Portland Cement and Sand. The ingredients shall be accurately gauged by measure and shall
be well and evenly mixed together; care being taken not to add more water than is required. No
mortar that has begun to set shall be used. If hand mixing is allowed then it shall be done in
brick tanks. The gauged materials shall be put in the tank and mixed dry. Water will then be
added and the whole mixed again until it is homogeneous and of uniform colour. Required
quantity of cement shall be mixed at one time and shall not be such as to exceed mortar amount
that can be consumed within 30 minutes of its mixing.

18. Aggregate:
Aggregate shall be from hard stone of size as specified under item of Work. In general 30mm
(1.25") maximum gauge aggregate shall be used for mass concrete in foundation and 19mm
(3/4") and down gauge i.e. 13mm (1/2”) in average, graded aggregate broken from stone
crusher or pebbles for RCC Work. The Project Engineer shall approve the quality of the
aggregate and if not shall be deported from the Site. The aggregate shall be brought to the Site
from same approved quarry and crusher, in any condition if Contractor wants to change the
quarry, the further approval shall require. In general, the other specification relating to
aggregate shall follow standard practice of Department of Urban Development and Building
Construction.

19. Bricks:
All bricks shall be of first class quality, approved by the Project Engineer. The bricks shall be
free from grit and other impurities such as lime, iron and other deleterious salts, well burnt,
copper coloured, sound, hard, square with sharp edges and shall give ringing sound when
struck with a mallet. Machine made bricks shall be of best quality. Chimney made local bricks
shall be of first class quality available, satisfying above-mentioned properties. Every lot the
quality of the bricks shall be checked by the Project Engineer to ensure the quality of it.

20. Steel:
The reinforcement shall be cold twisted deformed steel or TMT as per schedule, as approved by
the Project Engineer. The reinforcement shall be free from fillings, loose rust, mill scale, paint,
oil, grease, adhering earth or any other material that, in the opinion of the Project Engineer may
impair the bond between the concrete and the reinforcement or that causes corrosion of the
reinforcement or disintegration of the concrete.
Test certificates may be required from the suppliers, and in addition, the Contractor must
undertake tensile and bending tests on random samples of the reinforcement delivered to the
Site. All steel, which is represented by a sample, which fails to reach the minimum requirements
as per standard code of practice is to be removed from the Site immediately.

21. Tiles:

Tiles shall be of smooth surface, durable and of sizes and colours as per schedule. The sample
should be approved by the Project Engineer before commencement of flooring work.

22. Scaffolding:
Scaffolding shall consist of well seasoned Sal wood planks or water proof plywood or steel plate
with necessary battens, planks and metal props with accessories. All the scaffolding members
shall be checked before installation for their strength and stiffness and tied up properly. It shall

42
be fixed and tied together. In case of finished Work such as plastering, painting and
distempering, no part of the scaffolding should touch the structure. Where ladders are used,
gunny bags shall be tied up at the ends to prevent any damage to Work by sliding or tipping.

23. Timber:
Sal wood shall be used in general if otherwise specified and shall be of the best quality
available, perfectly dry, free from knots, cracks, shakes other defects and any appearance of
rot.

24. Glass:
Glass shall be of approved make of thickness as stated in the schedule of quantities and
visually clear when viewed from any direction. It shall be free from bubbles, waves and all other
defects.

25. Oil Paints and Primers:

These shall be only of ready mixed type in sealed tins of approved makes as specified by
Project Engineer.

26. Distempers and Primers:

These shall be only of ready mixed type sealed tins of approved makes as specified as
specified by Project Engineer.

27. Cement Paints:

These shall be of approved brand in sealed tins or packages as specified as specified by
Project Engineer.

28. Aluminium Work

All Aluminium shall be extruded aluminium section (Al. Mg. Si.) and shall conform to IS- 63400,
AA-6063 unless otherwise directed. Aluminium sections shall be anodised and the anodic film
shall be 12-15 microns. The colours shall be as directed.

29. Special Material:

If materials of a particular brand are specified in the Bill of Quantities, these shall be produced
accordingly from the particular manufacture. These shall include materials such as bricks, tiles,
bitumen and bituminous compounds, water proofing compounds, hardening compounds,
special paints, acoustic and insulating boards and other finishing materials of approved makes.
The responsibility for the use of these materials lies with the Contractor and he should avail
himself of necessary guarantees from the manufacturer. Such guarantees as may be required
by the Project Engineer shall be obtained by the Contractor and given to the Project Engineer.
Specific brand names have been avoided, wherever possible. Where brand names have been
used, they have been used merely to describe the nature of the desired materials and not used
to endorse or indicate an preference for a particular product or manufacturer. Goods which have
similar characteristics and provide performance and quality at least equal to those specified and
conforming to IS standards are acceptable.

30. Test of Materials:

The Contractor shall at his own cost arrange and carry out the tests of materials to be used in
the Works or any other tests as deemed necessary by the Project Engineer.

43
Section VII. Drawings

44
Section VIII. Bill of Quantities

45
Section IX. Forms of Securities

Notes on Forms of Securities

Samples of acceptable forms of Bid, Performance, and Advance Payment Guarantees are
provided herewith. Bidders should not complete the Performance and Advance Payment
Guarantee forms at this time. Only the successful Bidder shall be required to provide
Performance and Advance Payment Guarantees in accordance with one of the forms or in a
similar form acceptable to the Employer.

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Bid Security (Bank Guarantee)

Whereas, [name of Bidder] (hereinafter called “the Bidder”) has submitted his bid dated [date] for the
improvement of east side surface drain at TIA (hereinafter called “the bid”).

Know all people by these presents that We [name of Bank] of [name of country] having our registered
office at [address] (hereinafter called “the Bank”) are bound unto Tribhuvan International Airport Civil
Aviation Office(TIACAO),Civil Maintenance Division, Gauchar, Kathmandu (hereinafter called “the
Employer”) in the sum of ................... for which payment well and truly to be made to the said Employer,
the Bank binds itself, its successors, and assigns by these presents.

Sealed with the Common Seal of the said Bank this [day] day of [month], [year].

The conditions of this obligation are:

(1) If, after bid opening, the Bidder withdraws his bid during the period of bid validity specified in the
Form of Bid; or

(2) If the Bidder having been notified of the acceptance of his bid by the Employer during the period of
bid validity:

(a) fails or refuses to execute the Form of Agreement in accordance with the Instructions to
Bidders, if required; or

(b) fails or refuses to furnish the Performance Security, in accordance with the Instruction to
Bidders; or

(c) does not accept the correction of the bid,

we undertake to pay to the Employer up to the above amount upon receipt of his first written demand,
without the Employer’s having to substantiate his demand, provided that in his demand the Employer will
note that the amount claimed by him is due to him owing to the occurrence of one or any of the three
conditions, specifying the occurred condition or conditions.
2
This Guarantee will remain in force up to and including the date [number] days after the deadline for
submission of bids as such deadline is stated in the Instructions to Bidders or as it may be extended by the
Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this
Guarantee should reach the Bank not later than the above date.

Date Signature of the Bank ____________________________________

Witness Seal ____________________________________

________________________________________________________________________
[signature, name, and address]

47
Performance Bank Guarantee

To:

Tribhuvan International Airport Civil Aviation Office(TIACAO)

Civil Engineering Division
Gauchar, Kathmandu

Whereas [name and address of contractor] (hereinafter called “the contractor”) has undertaken, in
pursuance of Contract No.............. dated .......................[date] to execute [name of Contract and brief
description of Works] (hereinafter called “the Contract”);

And whereas it has been stipulated by you in the said Contract that the contractor shall furnish you with a
Bank Guarantee by a recognized bank for the sum specified therein as security for compliance with his
obligations in accordance with the Contract;

And whereas we have agreed to give the contractor such a Bank Guarantee;

Now therefore we hereby affirm that we are the Guarantor and responsible to you, on behalf of the
contractor, up to a total of....................................................................... [amount of Guarantee] [amount in
words] such sum being payable in the types and proportions of currencies in which the Contract Price is
payable, and we undertake to pay you, upon your first written demand and without cavil or argument, any
sum or sums within the limits of [amount of Guarantee] as aforesaid without your needing to prove or to
show grounds or reasons for your demand for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the contractor before presenting us
with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract or of the
Works to be performed there under or of any of the Contract documents which may be made between you
and the contractor shall in any way release us from any liability under this Guarantee, and we hereby
waive notice of any such change, addition, or modification.

This Guarantee shall be valid for at least 30 days beyond the date of issue of Defects Liability Certificate.

Signature and seal of the Guarantor

Name of Bank
Address
Date

48
Bank Guarantee for Advance Payment

To:

Tribhuvan International Airport Civil Aviation Office(TIACAO)

Civil Engineering Division
Gauchar, Kathmandu

[Name of Contract :]
Gentlemen:

In accordance with the provisions of the Conditions of Contract, Sub clause 11.9(“Advance Payment”) of
the above-mentioned Contract, [name and address of contractor] (hereinafter called “the contractor”) shall
deposit with Tribhuvan International Airport Civil Aviation Office(TIACAO), Civil Maintenance Division,
Gauchar, Kathmandu, a Bank Guarantee to guarantee his proper and faithful performance under the said
Clause of the Contract in an amount of [amount of Guarantee] [amount in words]

We, the [Bank or Financial Institution], as instructed by the contractor, agree unconditionally and
irrevocably to guarantee as primary obligator and not as Surety merely, the payment to Tribhuvan
International Airport Civil Aviation Office(TIACAO), Civil Maintenance Division, Gauchar, Kathmandu, on
his first demand without whatsoever right of objection on our part and without his first claim to the
contractor, in the amount not exceeding [amount of Guarantee] [amount in words]

We further agree that no change or addition to or other modification of the terms of the Contract or of
Works to be performed there under or of any of the Contract documents which may be made between
Tribhuvan International Airport Civil Aviation Office(TIACAO), Civil Maintenance Division, Gauchar,
Kathmandu, and the contractor, shall in any way release us from any liability under this Guarantee, and we
hereby waive notice of any such change, addition, or modification.

The validity period of the guarantee shall be 30 days beyond the period scheduled for repayment of the
advance payment and the guarantee shall remain valid and in full effect from the date of the advance
payment under the Contract until the [name of Employer] receives full repayment of the same amount from
the Contractor.

Yours truly,

Signature and seal:

Name of Bank/Financial Institution:

Address:

Date:

49
Section X. Rules for Adjudication
Referred to in GCC Sub-Clause 15.1

General 1. Any reference in the Conditions of Contract to the Rules for

Adjudication shall be deemed to be a reference to these
Rules.

2. Definitions in the Contract shall apply in these Rules.

Appointment of 3. The Parties shall jointly ensure the appointment of the

Adjudicator Adjudicator. The Adjudicator shall be a suitably qualified
person.

4. If for any reason the appointment of the Adjudicator is not

agreed at the latest within 15 days of the reference of a
dispute in accordance with these Rules, then either Party
may apply, with a copy of the application to the other Party,
to any appointing authority named in the Contract or, if none,
to the President of Nepal Council of Arbitration (NEPCA) or his
nominee, to appoint an Adjudicator, and such appointment
shall be final and conclusive.

5. The Adjudicator's appointment may be terminated by mutual

agreement of the Parties. The Adjudicator's appointment
shall expire when the Works have been completed or when
any disputes referred to the Adjudicator shall have been
withdrawn or decided, whichever is the later.

Terms of 6. The Adjudicator is to be, and is to remain throughout his

Appointment appointment, impartial and independent of the Parties and
shall immediately disclose in writing to the Parties anything
of which he becomes aware which could affect his
impartiality or independence.

7. The Adjudicator shall not give advice to the Parties or their

representatives concerning the conduct of the project of
which the Works form part other than in accordance with
these Rules.

8. The Adjudicator shall not be called as a witness by the

Parties to give evidence concerning any dispute in
connection with, or arising out of, the Contract.

9. The Adjudicator shall treat the details of the Contract and all
activities and hearings of the Adjudicator as confidential and
shall not disclose the same without the prior written consent
of the Parties. The Adjudicator shall not, without the
consent of the Parties, assign or delegate any of his work
under these Rules or engage legal or technical assistance.

10. The Adjudicator may resign by giving 30 days' notice to the

Parties. In the event of resignation, death or incapacity,
termination or a failure or refusal to perform the duties of
Adjudicator under these Rules, the Parties shall agree upon
a replacement Adjudicator within 15 days or Rule 4 shall
apply.

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 11. The Adjudicator shall in no circumstances be liable for any
claims for anything done or omitted in the discharge of the
Adjudicator's duties unless the act or omission is shown to
have been in bad faith.

12. If the Adjudicator shall knowingly breach any of the

provisions of Rule 6 or act in bad faith, he shall not be
entitled to any fees or expenses hereunder and shall
reimburse each of the Parties for any fees and expenses
properly paid to him if, as a consequence of such breach
any proceedings or decisions of the Adjudicator are
rendered void or ineffective.

Payment 13. The Adjudicator shall be paid the fees and expenses set out
in the Adjudicator's Agreement.

14. The retainer fee, if applicable, shall be payment in full for:

(a) being available, on 30 days' notice, for all hearings

and Site visits;
(b) all office overhead expenses such as secretarial
services, photocopying and office supplies incurred in
connection with his duties;
(c) all services performed hereunder except those
performed during the days referred to in Rule 15.

15 The daily fee shall be payable for each working day

preparing for or attending Site visits or hearings or preparing
decisions including any associated travelling time.

16. The retainer and daily fees shall remain fixed for the period
of tenure of the Adjudicator.

17. All payments to the Adjudicator shall be made by the

contractor who will be entitled to be reimbursed half by the
Employer. The contractor shall pay invoices addressed to
him within 30 days of receipt. The Adjudicator's invoices for
any monthly retainer shall be submitted quarterly in advance
and invoices for daily fees and expenses shall be submitted
following the conclusion of a Site visit or hearing. All
invoices shall contain a brief description of the activities
performed during the relevant period. The Adjudicator may
suspend work if any invoice remains unpaid at the expiry of
the period for payment, provided that 7 days prior notice has
been given to both Parties.

18. If the contractor fails to pay an invoice addressed to it, the

Employer shall be entitled to pay the sum due to the
Adjudicator and recover the sum paid from the contractor.

Procedure for 19. A dispute between the Parties may be referred in writing by
Obtaining either Party to the Adjudicator for his decision, with a copy to
Adjudicator's the other Party. If the Adjudicator has not been agreed or
Decision appointed, the dispute shall be referred in writing to the
other Party, together with a proposal for the appointment of
an Adjudicator. A reference shall identify the dispute and

51
 refer to these Rules.

20. The Adjudicator may decide to visit the Site. The

Adjudicator may decide to conduct a hearing in which event
he shall decide on the date, place and duration for the
hearing. The Adjudicator may request that written
statements from the Parties be presented to him prior to, at
or after the hearing. The Parties shall promptly provide the
Adjudicator with sufficient copies of any documentation and
information relevant to the Contract that he may request.

21. The Adjudicator shall act as an impartial expert, not as an

arbitrator, and shall have full authority to conduct any
hearing as he thinks fit, not being bound by any rules or
procedures other than those set out herein. Without limiting
the foregoing, the Adjudicator shall have power to:

(a) decide upon the Adjudicator's own jurisdiction, and as

to the scope of any dispute referred to him,
(b) make use of his own specialist knowledge, if any,
(c) adopt an inquisitorial procedure,
(d) decide upon the payment of interest in accordance
with the Contract,
(e) open up, review and revise any opinion, instruction,
determination, certificate or valuation, related to the
dispute,
(f) refuse admission to hearings to any persons other
than the Employer, the contractor and their respective
representatives, and to proceed in the absence of any
Party who the Adjudicator is satisfied received notice
of the hearing.

22. All communications between either of the Parties and the

Adjudicator and all hearings shall be in the language of the
Adjudicator's Agreement. All such communications shall be
copied to the other Party.

23. No later than the sixty days after the day on which the
Adjudicator received a reference or, if later, the day on
which the Adjudicator's Agreement came into effect, the
Adjudicator shall give written notice of his decision to the
Parties. Such decision shall include reasons and state that
it is given under these Rules.

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Adjudicator's Agreement
Identification of Project:

(the "Project")

Name and address of the Employer:

(the "Employer")

Name and address of contractor:

(the "contractor")

Name and address of Adjudicator:

(the "Adjudicator")

Whereas the Employer and the contractor have entered into a contract ("the Contract")
for the execution of the Project and wish to appoint the Adjudicator to act as adjudicator
in accordance with the Rules for Adjudication ["the Rules"].

The Employer, Contractor and Adjudicator agree as follows:

1. The Rules and the dispute provisions of the Contract shall form part of this
Agreement.

2. The Adjudicator shall be paid:

A retainer fee of ________________________________________ per calendar

month
(where applicable)

A daily fee of __________________________________________

Expenses (including the cost of telephone calls, courier charges, faxes and telexes
incurred in connection with his duties; all reasonable and necessary travel
expenses, hotel accommodation and subsistence and other direct travel
expenses).

Receipts will be required for all expenses.

53
3. The Adjudicator agrees to act as adjudicator in accordance with the Rules and has
disclosed to the Parties any previous or existing relationship with the Parties or
others concerned with the Project.

4. This Agreement shall be governed by the law of Nepal.

5. The language of this Agreement shall be English [or in Nepali if both parties
agrees].

SIGNED BY _________________________________________

for and on behalf of the Employer in the presence of

Witness _____________________________________

Name ___________________________________________

Address ___________________________________________

Date ___________________________________________

SIGNED BY ____________________________________

for and on behalf of the contractor in the presence of

Witness ___________________________________________

Name ___________________________________________

Address ___________________________________________

Date ___________________________________________

SIGNED BY ________________________________________

for and on behalf of the Adjudicator in the presence of

Witness ___________________________________________

Name ___________________________________________

Address ___________________________________________

Date _________________________________________

54
 Table of Contents

Section I. Invitation to Bids 1

Section II. Instruction to Bidders 2

Bidding Data 9

Section III. Sample Forms of Bid, Letter of Acceptance

and Agreement 11

Section IV. General Conditions of Contract (GCC) 17

Section V. Special Conditions of Contract (SCC) 30

Section VI. Technical Specification 32

Section VII. Drawings 39

Section VIII.Bill of Quantities 40

Section IX. Sample Forms of Securities 41

Section X. Rules for Adjudication 45

55