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STANDARD FORM OF BIDDING DOCUMENTS FOR PROCUREMENT OF WORKS (For Small Contracts)

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STANDARD FORM OF BIDDING

DOCUMENTS FOR PROCUREMENT


OF WORKS

(For Small Contracts)

Available on PEC website (www.pec.org.pk)


and PPRA website (www.ppra.org.pk)

(Harmonized with PPRA Rules)

June 15, 2013

PAKISTAN ENGINEERING COUNCIL


ISLAMABAD

PAKISTAN ENGINEERING COUNCIL


ii

ACKNOWLEDGEMENT

Pakistan Engineering Council extends deep appreciations and acknowledges the contribution in
developing and finalizing this document by the following experts of the Pakistan Engineering
Council (PEC):

1. Engr. Mazhar-ul-Islam, CEO, PICC, Lahore Convener

2. Engr. Muhammad Hanif, General Manager (Central Contracts Expert


Cell), WAPDA

3. Engr. Nasir Hanif, Chief Engineer (Civil), Central Contracts Expert


Cell, WAPDA

4. Engr Dilshad Hussain Siddiqui, General Manager Contracts Expert


Division, NESPAK

5. Engr. Neguib Sohail Kidwai, GM (Construction Management Expert


Division), NESPAK

6. Engr. Imtiaz-ur-Rehman, Sr. GM (Contracts) Expert


M/s Habib Rafique (Pvt.) Ltd.,
7. Engr. Jawaid Akhtar Latif, Director (Contracts), C&M Water, Expert
WAPDA

8. Ch. Foad Hussain, Director NDC Expert

9. Engr. Osaf Mahmood Malik, Deputy Registrar PEC Expert

Appreciation is also placed to the following Experts who reviewed the Draft of this
document and rendered useful advice:
1. Engr. Mushtaq Mahmmod, ADB Expert

NOTIFICATION NO. 8(60) WR/PC/2008 DATED 12th FEBRUARY, 2008


PLANNING & DEVELOPMENT DIVISION
GOVERNMENT OF PAKISTAN

PAKISTAN ENGINEERING COUNCIL


iii

PAKISTAN ENGINEERING COUNCIL


iv

TABLE OF CONTENTS

PREFACE......................................................................................................................vi

INSTRUCTIONS TO USERS OF THIS DOCUMENT................................................ix

INVITATION FOR BIDS...............................................................................................1

INSTRUCTIONS TO BIDDERS...................................................................................5

BIDDING DATA..........................................................................................................19

LETTER OF BID AND SCHEDULES TO BID....... ………………………………..23

CONDITIONS OF CONTRACT ………………………….....………………………39

CONTRACT DATA.....................................................................................................55

STANDARD FORMS...................................................................................................61

PAKISTAN ENGINEERING COUNCIL


v

PAKISTAN ENGINEERING COUNCIL


vi

PREFACE
1. Pakistan Engineering Council (PEC) being the statutory regulatory body has been
entrusted to regulate the engineering profession in Pakistan. It has carried out
standardization of “country specific” documents to regulate and streamline hiring of
engineering consultancy services and procurement of works. Standard Form of Bidding
Documents for Procurements of Works (For Small Contracts) is one such document
prepared by a team of experts comprising employers, constructors and consultants in line
with the advice by Planning Commission, Government of Pakistan in 1996. With the
passage of time, this document was developed into a complete bidding document which
was notified for implementation by Government of Pakistan. On the basis of feedback
received from the users of this document and comments from PPRA in September 2005,
it is revised upto June 15, 2013. It is expected that use of this document will provide an
equitable and just basis of contract agreements for procurement of works in line with the
international practice and relevant PEC Bye-laws thus minimizing ambiguities and likely
contractual disputes.

2. This document is primarily based on Bidding Documents for National Competitive


Bidding (NCB) Pakistan, and the Short Form of Contract prepared by FIDIC and
comprises Instructions to Bidders, Bidding Data, Conditions of Contract, Contract Data
and sample Schedules required for bidding.

3. This document is to be used for smaller contracts/projects with estimated value of not
more than Rs. 50 Million. Current revision of this document is based on Public
Procurement Rules, 2004 and users’ feedback:

4. This document has been approved by ECNEC in its meeting on _____________. The
document has been notified by Planning Commission, Government of Pakistan vide
Notification No. ________________________. It is, therefore, mandatory for all
engineering organizations and departments at Federal and Provincial level and district
governments to use this document for procurement of civil works funded locally and/or
through donor agencies.

5. Any suggestions for improvement shall be appreciated. These may be addressed to


Registrar, PEC, Ataturk Avenue, G-5/2, Islamabad (email: registrar@pec.org.pk)

PAKISTAN ENGINEERING COUNCIL


vii

PAKISTAN ENGINEERING COUNCIL


Instructions to Users of this document ix

INSTRUCTIONS TO
USERS OF THIS DOCUMENT

PAKISTAN ENGINEERING COUNCIL


xInstructions to Users of this document

PAKISTAN ENGINEERING COUNCIL


Instructions to Users of this document xi

INSTRUCTIONS TO USERS OF THIS DOCUMENT


(Not to be included in Bidding Documents)

A. Basis of Documents
These Documents have been prepared as a global document intended to be used by
different agencies/users according to their requirements. This document is envisaged for
National Competitive Bidding (NCB), meant for use for Works costing not more than Rs.
50 Million. These documents may be tailored according to the scope of works as well as
in case of contracts on International Competitive Bidding (ICB) basis, funded by
international financial institutions/donors, with payments in foreign currencies. The users
are then to tailor the relevant clauses to suit their requirements including appropriate
modifications in the relevant sections of the documents in the light of PEC Bidding
Documents for Large Works
The Employer is expected to manage the Contract himself. The role of a
Consultant/Engineer may be added by the Users, if the Employer wishes to engage the
Consultant/Engineer. The role of the Consultant/Engineer with specific delegated powers
under various clauses of Instructions to Bidders such as for clarifications of Bid
Documents, Amendment of Bid Documents, and evaluation of Bids etc. and to administer
the Contract under various clauses of Conditions of Contract should have been specified.
The Employer will be required to set out in the Specifications and Drawings the full
scope of work including the extent of design to be done by the Contractor, if any.

B. Contents of Documents
As stated in Clause IB.4 of Instructions to Bidders, the complete Bidding Documents in
addition to Invitation for Bids shall comprise items listed therein including any addendum
to Bidding Documents issued in accordance with Clause IB.6. The Standard Form of
Bidding Documents (For Small Contracts) includes the following:
1. Instructions to Bidders & Bidding Data
2. Form of Bid & Schedules to Bid
3. Conditions of Contract & Contract Data
4. Standard Forms
5. Specifications
6. Drawings, if any
In addition, Instructions to users are also provided at various locations of this document
within parenthesis or as a Note (s). Users are expected to edit or finalise this document
accordingly, by filling all the blank spaces & forms, deleting all notes and instructions
intended to help the users.
The user is required to prepare the following for completion of the Bidding Documents:
i) Invitation for Bids
ii) Bidding Data
iii) Schedules to Bid (Samples)
iv) Schedule of Prices (Format)
v) Contract Data
vi) Specifications
vii) Drawings, if any
The User’s attention is drawn to the following while finalising the Bidding Documents.
PAKISTAN ENGINEERING COUNCIL
xii Instructions to Users of this document

C. Invitation for Bids


The “Invitation for Bids” is meant for publication in the newspapers and PEC Website as
well as on PPRA Website in case of Federal Procuring Agencies as notice for calling of
bids.
The blank spaces wherever shown are required to be filled by the Employer before
issuance of Bidding Documents:
1. The Employer may modify para 1 of Invitation for Bids as per his requirement
except the requirement of Pakistan Engineering Council therein.
2. The notice should be published so as to give the prospective bidders sufficient
working period for preparation and submission of bids which may be from 15 to 50
days depending on the size of the Works. However, under no circumstances the
response time shall be less than 15 days for national competitive bidding and 30 days
for international competitive bidding from the date of publication of advertisement or
notice.
3. The eligible bidders are defined in Clause 2 of Instructions to Bidders. The text of
Clause can be amended by the Employer as deemed appropriate.
4. The non-refundable fee for the sale of Bidding Documents should be nominal so as
to cover printing/reproduction and mailing costs and to ensure that only bona-fide
bidders will apply.
5. The amount of Bid Security should be a lump sum figure or a percentage of bid price
ranging from 1% to 3% of the likely cost of the Works and should not be more than
5% in any case and in accordance with Sub-Clause 13.1 of Instructions to Bidders.
6. If the venue of receipt of bids and the opening of bids is the same, the times for
receipt and opening of bids are to be entered in last para of the Invitation to Bidders,
otherwise indicate the name, address and exact location for the opening of bids.
However, the date for the receipt and the opening of bids shall be same.

D. Instructions to Bidders
These Instructions to Bidders will not be part of Contract and will cease to have effect
once the Contract is signed.

The Instructions to Bidders can be used as given. Users may have to make changes under
Bidding Data (hereinafter referred to as “to works”).

E. Bidding Data
This Bidding Data will not be part of Contract and will cease to have effect once the
Contract is signed.
The blank spaces wherever shown in Bidding Data are required to be filled by the
Consultant/Engineer/Employer before issuance of Bidding Documents.
1. Sub Clause- 10.3 of Instructions to Bidders may be retained or modified by the
Employer.
2. Employer should insert required experience in Sub Clause- 11.2.
3. Referring to Sub Clause- 14.1 of Instructions to Bidders, the period of bid validity
may range from 56 to 100 days depending upon the size of the Works. Number of
days would be filled in as per Employer’s requirements.

PAKISTAN ENGINEERING COUNCIL


Instructions to Users of this document xiii

4. Sub-Clause 16.3 to 16.9 of Instructions to Bidders may be retained or modified by


the Employer in accordance with his requirements, particularly Sub Clause- 16.8
may be modified in case deviation in payment schedule is acceptable.
5. The Employer shall decide the provision of Adjudicator.

F. Schedules to Bid
Specimen of Schedules to Bid including format of Schedule of Prices are provided in this
document. The Employer can add/delete/modify as per his requirement.
The blank spaces wherever shown are required to be filled by the Consultant
/Engineer/Employer before issuance of Bidding Documents except those required to be
provided by the Contractor.

G. Conditions of Contract

The User’s attention is drawn to the Preface and it is once again emphasized that while
preparing Contract Data, no Clause of Conditions of Contract should be deleted and that
the changes included in Contract Data should be such as not to change the spirit of the
document. Any adjustment or change in clauses of Conditions of Contract to meet
specific project features shall be made with care and incorporated in Contract Data.

H. Contract Data
The blank spaces wherever shown are required to be filled by the Consultant
/Engineer/Employer before issuance of Bidding Documents.
1. Referring to Sub-Clause 1.1.1 of Conditions of Contract, the Consultant
/Engineer/Employer may add, in order of priority, such other documents as form part
of the Contract, in Sub-Clause 1.3 of the Contract Data.
2. The Employer’s Representative, if any, shall exercise powers of the Employer under
and in connection with Sub-Clause 1.3, 2.3, 4.2, 4.3, 5.1, 7.3, 8.2, 9.1, 9.2, 10.1, 10.2.
10.5, 11.1,11.5, 12.1, 13.2 and 14.1 of the Conditions of Contract. In case a
Consultant/Engineer has been appointed by the Employer, the aforesaid may be
modified accordingly by the Employer.
3. The sum insured for different insurances including minimum amount of third party
insurance should be assessed by the Consultant/Engineer/Employer and entered in
Contract Data.
4. The time for completion of the whole of the Works should be assessed by the
Consultant/Engineer/Employer and entered in the Contract Data.
5. The Conditions of Contract contain no overall limit on the Contractor’s liability. The
amount of delay damages per day of delay shall be entered by the Consultant
/Engineer/Employer in Contract Data. Usually the delay damages are set between
0.05 percent and 0.10 percent per day and the maximum limit as 10 percent.
6. The Employer, under the contract shall decide:
a) the provision of Adjudicator;
b) the provision of PEC Rules of Conciliation and Arbitration; and
c) the venue of Arbitration should be within the country where the project is located
7. Any amendment and/or additions to the Conditions of the Contract that are specific to
a given work should be included by the User. This may include but not be limited to
the provisions regarding the following:
PAKISTAN ENGINEERING COUNCIL
xiv Instructions to Users of this document

a) Terms of Payment should be prepared and incorporated in Contract Data by the


Consultant/Engineer/Employer.
b) The Consultant/Engineer/Employer to make sure that all taxes and duties are
included by the Bidders in their prices.

I. Specifications
To be prepared and incorporated by the Engineer/Employer

J. Drawings
To be prepared and incorporated by the Engineer/Employer, if required.

PAKISTAN ENGINEERING COUNCIL


Invitation for Bids 1

INVITATION FOR BIDS

PAKISTAN ENGINEERING COUNCIL


2 Invitation for Bids

PAKISTAN ENGINEERING COUNCIL


Invitation for Bids 3

INVITATION FOR BIDS


Date: ______________
Bid Reference No.: ______________

1. The Employer, ________________________________ [enter name of the procuring


agency], invites sealed bids from eligible firms or persons licensed by the Pakistan
Engineering Council in the appropriate category and duly qualified with the Employer
for the Works, __________________________________________[enter title, type
and financial volume of work], which will be completed in __________ [enter
appropriate time period] days.

2. A complete set of Bidding Documents may be purchased by an interested eligible


bidder on submission of a written application to the office given below and upon
payment of a non-refundable fee of Rupees _______________ (Insert Amount).
Bidders may acquire the Bidding Documents from the Office of the Employer,
at_________________________________________ (Mailing Address).

3. All bids must be accompanied by a Bid Security in the amount of Rs. _____________
(Rupees ________________________________________ ) and must be delivered to
_________________________________________________ (Indicate Address and
Exact Location) at or before ________ hours, on ______________ (Date). Bids will
be opened at _______ hours on the same day in the presence of bidders’
representatives who choose to attend, at the same address [indicate the address if it
differs].

4. Bidders wishing to offer discounts in case they are awarded the contract will be allowed
to do so, provided those discounts are included in the Letter of Bid.”

[Note: 1. The Employer to enter the requisite information in blank spaces.


2. The bid shall be opened at least thirty minutes after the deadline for submission
of bids.]

PAKISTAN ENGINEERING COUNCIL


4 Invitation for Bids

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 5

INSTRUCTIONS TO BIDDERS

PAKISTAN ENGINEERING COUNCIL


6 Instructions to Bidders

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 7

INSTRUCTIONS TO BIDDERS
Table of Clauses

A. General 9
1. Scope & Source of Funds 9
2. Eligible Bidders 9
3. Cost of Bidding..................................................................................................9

B. Bidding Documents 9
4. Contents of Bidding Documents 9
5. Clarification of Bidding Documents 10
6. Amendment of Bidding Documents 10

C. Preparation of Bids 11
7. Language of Bid 11
8. Documents Comprising the Bid 11
9. Sufficiency of Bid 11
10. Bid Prices, Currencies of Bid and Payment ……………………………….... 11
11. Documents Establishing Bidder’s Eligibility and Qualifications 12
12. Documents Establishing Works’ Conformity to Bidding Documents 12
13. Bid Security ………………….……………………………………………... 12
14. Validity of Bids, Format, Signing and Submission of Bid 13

D. Submission of Bids 13
15. Deadline for Submission, Modification & Withdrawal of Bids 13

E. Bid Opening and Evaluation 14


16. Bid Opening, Clarification and Evaluation 14
17. Process to be Confidential 16

F. Award of Contract 16
18. Post Qualification 16
19 Award Criteria & Employer’s Right …………………………………………17
20. Notification of Award& Signing of Contract Agreement 17
21. Performance Security.. ……………………………………………………… 17
22 Integrity Pact…………………………………………………………………18
23. Adjudicator ………………………….……………………………………….18

PAKISTAN ENGINEERING COUNCIL


8 Instructions to Bidders

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 9

INSTRUCTIONS TO BIDDERS
(Note: These Instructions to Bidders along with Bidding Data not be the part of Contract
and will cease to have effect once the contract is signed.)

A. GENERAL

IB.1 Scope of Bid & 1.1 Scope of Bid


Source of Funds
The Employer as defined in the Bidding Data (hereinafter
called “the Employer”) wishes to receive bids for the Works
summarised in the Bidding Data (hereinafter referred to as the
“Works”).
The successful bidder will be expected to complete the Works
within the time specified in the Contract Data.
The Employer intends to engage the Consultants as named in
the Bidding Data.

1.2 Source of Funds


The Employer has applied for or received financing from the
sources indicated in Bidding Data. The Employer intends to
apply a portion of the funds to eligible payments under the
contract(s) for which the Bidding Documents are issued.

IB.2 Eligible Bidders 2.1 This Invitation for Bids is open to all bidders meeting the
following requirements:
a) Duly licensed by the Pakistan Engineering Council (PEC)
in the category relevant to the value of the Works.
b) Duly prequalified / enlisted by the Employer, where
required.
2.2 Each bidder shall submit only one bid either by himself, or as a
partner in a joint venture. A bidder who submits or participates
in more than one bid will be disqualified.

IB.3 Cost of Bidding 3.1 The bidders shall bear all costs associated with the
preparation and submission of their respective bids and the
Employer will in no case be responsible or liable for those
costs, regardless of the conduct or outcome of the bidding
process.

B. BIDDING DOCUMENTS

IB.4 Contents of 4.1 In addition to Invitation for Bids, the Bidding Documents are
Bidding those stated below, and should be read in conjunction with any
Documents Addendum issued in accordance with Sub-Clause IB.6.1.
1. Instructions to Bidders & Bidding Data.
2. Form of Bid & Schedules to Bid.
Schedules to Bid comprise the following:
(i) Schedule A: Schedule of Prices

PAKISTAN ENGINEERING COUNCIL


10 Instructions to Bidders

(ii) Schedule B: Specific Works Data


(iii) Schedule C: Works to be Performed by
Subcontractors
(iv) Schedule D: Proposed Programme of Works
(v) Schedule E: Method of Performing Works
(vi) Schedule F: Integrity Pact
3. Conditions of Contract & Contract Data.
4. Standard Forms:
(i) Form of Bid Security
(ii) Form of Performance Security
(iii) Form of Contract Agreement
(iv) Form of Bank Guarantee for Advance Payment.
5. Specifications.
6. Drawings if any.

IB.5 Clarification of 5.1 A prospective bidder requiring any clarification(s) in respect of


Bidding the Bidding Documents may notify the Consultant / Engineer /
Documents Employer at the Consultant’s / Employer’s / Engineer’s address
indicated in the Bidding Data.
5.2 The Consultant / Engineer / Employer will respond to any
request for clarification which it receives earlier than ten (10)
days prior to the deadline for the submission of Bids. Copies of
the Consultant’s/Engineer’s/Employer’s response will be
forwarded to all prospective bidders, at least five (5) days prior
to dead line for submission of Bids, who have received the
Bidding Documents including a description of the enquiry but
without identifying its source.

IB.6 Amendment of 6.1 At any time prior to the deadline for submission of Bids, the
Bidding Employer may, for any reason, whether at his own initiative or
Documents in response to a clarification requested by a prospective bidder,
modify the Bidding Documents by issuing addendum.
6.2 Any addendum thus issued shall be part of the Bidding
Documents pursuant to Sub-Clause 6.1 hereof, and shall be
communicated in writing to all purchasers of the Bidding
Documents. Prospective bidders shall acknowledge receipt of
each addendum in writing to the Employer.
6.3 To afford prospective bidders reasonable time in which to
take an addendum into account in preparing their Bids, the
Employer may at its discretion extend the deadline for
submission of Bids.

C. PREPARATION OF BIDS

IB.7 Language of 7.1 The bid prepared by the bidder and all correspondence and
Bid documents relating to the Bid, exchanged by the bidder and the
Employer shall be written in the English language, provided
that any printed literature furnished by the bidder may be

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 11

written in another language so long as accompanied by an


English translation of its pertinent passages in which case, for
purposes of interpretation of the Bid, the English translation
shall govern.
IB.8 Documents 8.1 The bid prepared by the bidder shall comprise the following
Comprising the components:
Bid (a) Covering Letter;
(b) Documentary evidence in accordance with Clause IB.11;
(c) Documentary evidence in accordance with Clause IB.12;
(d) Bid Security furnished in accordance with Clause IB.13;
(e) Letter of Bid duly filled, signed and sealed, in accordance
with Sub-Clause IB.14.3;
(f) Schedules (A to F) to Bid duly filled and initialed, in
accordance with the instructions contained therein & in
accordance with Sub-Clause IB14.3;
(g) Power of Attorney in accordance with Sub-Clause IB
14.5, and
(h) Any other document indicated in the Bidding Data.

IB.9 Sufficiency of 9.1 Each bidder shall satisfy himself before Bidding as to the
Bid correctness and sufficiency of his Bid and of the rates and
prices entered in the Schedule of Prices, which rates and prices
shall except in so far as it is otherwise expressly provided in the
Contract, cover all his obligations under the Contract and all
matters and things necessary for the proper completion of the
Works.
9.2 The bidder is advised to obtain for himself at his own cost
and responsibility all information that may be necessary for
preparing the bid and entering into a Contract for execution of
the Works.

IB.10 Bid Prices, 10.1 The bidder shall fill up the Schedule of Prices (Schedule A to
Currency of Bid Bid) indicating the unit rates and prices of the Works to be
and Payment performed under the Contract. Prices in the Schedule of Prices
shall be entered keeping in view the instructions contained in
the Preamble to Schedule of Prices.
10.2 Unless otherwise stipulated in the Conditions of Contract, prices
quoted by the bidder shall remain fixed during the bidder’s
performance of the Contract and not subject to variation on any
account.
10.3 The unit rates and prices in the Schedule of Prices shall be
quoted by the bidder in the currency as stipulated in Bidding
Data.
10.4 All duties, taxes, and other levies payable by the Contractor
under the Contract, or for any other cause shall be deemed to
be included in the rates, prices, and total Bid price submitted by
the Bidder, unless otherwise provided elsewhere

PAKISTAN ENGINEERING COUNCIL


12 Instructions to Bidders

IB.11 Documents 11.1 Pursuant to Clause IB.8, the bidder shall furnish, as part of its
Establishing bid, documents establishing the bidder’s eligibility to bid and
Bidder’s its qualifications to perform the Contract if its bid is accepted:
Eligibility and
11.2 Bidder/Manufacturer must possess and provide evidence of its
Qualifications
capability and the experience as stipulated in Bidding Data and
the Qualification Criteria stipulated in the Bidding Documents.

IB.12 Documents 12.1 The documentary evidence of the Works’ conformity to the
Establishing Bidding Documents may be in the form of literature, drawings
Works’ and data and the bidder shall furnish documentation as set out
Conformity to in Bidding Data
Bidding
12.2 The bidder shall note that standards for workmanship, material
Documents
and equipment, and references to brand names or catalogue
numbers, if any, designated by the Employer in the Technical
Provisions are intended to be descriptive only and not
restrictive.

IB.13 Bid Security 13.1 Each bidder shall furnish, as part of his bid, at the option of the
bidder, a Bid Security in the amount stipulated in Bidding Data
in Pak. Rupees in the form of Deposit at Call or a Bank
Guarantee issued by a Scheduled Bank in Pakistan or an
insurance company having alteast AA rating from
PACRA/JCR in favour of the Employer valid for a period up to
twenty eight (28) days beyond the bid validity date. The Bid
Security of Joint Venture must be in the name of Joint Venture
submitting the bid.
13.2 Any bid not accompanied by an acceptable Bid Security shall
be rejected by the Employer as non-responsive.
13.3 The bid securities of unsuccessful bidders will be returned
upon award of contract to the successful bidder or on the expiry
of validity of Bid Security whichever is earlier.
13.4 The Bid Security of the successful bidder will be returned when
the bidder has furnished the required Performance Security,
pursuant to Clause IB.21 and signed the Contract Agreement,
pursuant to Sub-Clauses IB.20.2 & 20.3.
13.5 The Bid Security may be forfeited:
(a) if a bidder withdraws his bid during the period of bid
validity; or
(b) if a bidder does not accept the correction of his Bid Price,
pursuant to Sub-Clause 16.4 (b) hereof; or
(c) in the case of a successful bidder, if he fails to:
(i) furnish the required Performance Security in
accordance with Clause IB.21, or
(ii) sign the Contract Agreement, in accordance with
Sub-Clauses IB.20.2 & 20.3.

IB.14 Validity of 14.1 Bids shall remain valid for the period stipulated in the Bidding
Bids, Format, Data after the date of bid opening.

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 13

Signing and 14.2 All Schedules to Bid are to be properly completed and signed.
Submission of
14.3 No alteration is to be made in the Form of Bid except in filling
Bid
up the blanks as directed. If any alteration be made or if these
instructions be not fully complied with, the bid may be
rejected.
14.4 Each bidder shall prepare Original and number of copies
specified in the Bidding Data of the documents comprising the
bid as described in Clause IB.8 and clearly mark them
“ORIGINAL” and “COPY” as appropriate. In the event of
discrepancy between them, the original shall prevail.
14.5 The original and all copies of the bid shall be typed or written
in indelible ink and shall be signed by a person or persons duly
authorized to sign (in the case of copies, Photostats are also
acceptable). This shall be indicated by submitting a written
Power of Attorney authorising the signatory of the bidder to act
for and on behalf of the bidder. All pages of the bid shall be
initialed and official seal be affixed by the person or persons
signing the bid.
14.6 The Bid shall be delivered in person or sent by registered mail
at the address to Employer as given in Bidding Data.

D. SUBMISSION OF BIDS

IB.15 Deadline for 15.1 Bids must be received by the Employer at the address/provided
Submission, in Bidding Data not later than the time and date stipulated
Modification & therein.
Withdrawal of
15.2 Bids submitted through telegraph, telex, fax or e-mail shall not
Bids
be considered.
15.3 Any bid received by the Employer after the deadline for
submission prescribed in Bidding Data will be returned
unopened to such bidder.
15.4 Any bidder may modify or withdraw his bid after bid
submission provided that the modification or written notice of
withdrawal is received by the Employer prior to the deadline
for submission of bids.
15.5 Withdrawal of a bid during the interval between the deadline
for submission of bids and the expiration of the period of bid
validity specified in the Form of Bid may result in forfeiture of
the Bid Security pursuant to Sub-Clause IB.13.5 (a).

E. BID OPENING AND EVALUATION

IB.16 Bid Opening, 16.1 The Employer will open the bids, in the presence of bidders’
Clarification representatives who choose to attend, at the time, date and
and Evaluation location stipulated in the Bidding Data.
16.2 The bidder’s name, Bid Prices, any discount, the presence or
absence of Bid Security, and such other details as the Employer
at its discretion may consider appropriate, will be announced
by the Employer at the bid opening. The Employer will record
the minutes of the bid opening. Representatives of the bidders
PAKISTAN ENGINEERING COUNCIL
14 Instructions to Bidders

who choose to attend shall sign the attendance sheet.


Any Bid Price or discount which is not read out and recorded at
bid opening will not be taken into account in the evaluation of
bid.
16.3 To assist in the examination, evaluation and comparison of
Bids the Consultant/Engineer/Employer may, at its discretion,
ask the bidder for a clarification of its Bid. The request for
clarification and the response shall be in writing and no change
in the price or substance of the Bid shall be sought, offered or
permitted.
16.4 (a) Prior to the detailed evaluation, pursuant to Sub-Clauses
IB.16.7 to 16.9, the Consultant/ Engineer/Employer will
determine the substantial responsiveness of each bid to the
Bidding Documents. For purpose of these Clauses, a
substantially responsive bid is one which conforms to all
the terms and conditions of the Bidding Documents
without material deviations. It will include determining the
requirements listed in Bidding Data.
(b) Arithmetical errors will be rectified on the following
basis:
If there is a discrepancy between the unit price and total
price that is obtained by multiplying the unit price and
quantity, the unit price shall prevail and the total price
shall be corrected. If there is a discrepancy between the
words and figures the amount in words shall prevail. If
there is a discrepancy between the Total Bid price entered
in Form of Bid and the total shown in Schedule of Prices-
Summary, the amount stated in the Form of Bid will be
corrected by the Employer in accordance with the
Corrected Schedule of Prices.
If the bidder does not accept the corrected amount of Bid,
his Bid will be rejected and his Bid Security forfeited.
16.5 A Bid determined as substantially non-responsive will be
rejected and will not subsequently be made responsive by the
bidder by correction of the non-conformity.
16.6 Any minor informality or non-conformity or irregularity in a
Bid which does not constitute a material deviation may be
waived by Employer, provided such waiver does not prejudice
or affect the relative ranking of any other bidders.
16.7 The Consultant/Engineer/Employer will evaluate and compare
only the bids previously determined to be substantially
responsive pursuant to Sub-Clauses IB.16.4 to 16.6 as per
requirements given hereunder. Bids will be evaluated for
complete scope of works. The prices will be compared on the
basis of the Evaluated Bid Price pursuant to Sub-Clause 16.8
herein below:
(a) Technical Evaluation
It will be examined in detail whether the Works offered by
PAKISTAN ENGINEERING COUNCIL
Instructions to Bidders 15

the bidder complies with the Technical Provisions of the


Bidding Documents. For this purpose, the bidder’s data
submitted with the bid in Schedule B to Bid will be
compared with technical features/criteria of the Works
detailed in the Technical Provisions. Other technical
information submitted with the bid regarding the Scope of
Work will also be reviewed.
(b) Commercial Evaluation
It will be examined in detail whether the bids comply with
the commercial/contractual conditions of the Bidding
Documents. It is expected that no material
deviation/stipulation shall be taken by the bidders.

Evaluated Bid Price 16.8 In evaluating the bids, the Consultant/Engineer/Employer will
determine for each bid in addition to the Bid Price, the
following factors (adjustments) in the manner and to the extent
indicated below to determine the Evaluated Bid Price:
(i) making any correction for arithmetic errors pursuant to
Sub-Clause 16.4 hereof.
(ii) making an appropriate price adjustment for any other
acceptable variation or deviation.
(iii) making an appropriate price adjustment for Deviations in
terms of Payments (if any and acceptable to the
Employer).
(iv) discount, if any, offered by the bidders as also read out
and recorded at the time of bid opening.
Evaluation Methods 16.9 Pursuant to Sub-Clause 16.8, Para (ii), and (iii) following
evaluation methods for price adjustments will be followed:
(i) Price Adjustment for Technical Compliance
The cost of making good any deficiency resulting from
technical non compliance will be added to the Corrected
Total Bid Price for comparison purposes only. The
adjustments will be applied taking the highest price quoted
by other bidders being evaluated in detail in their original
Bids for corresponding item. In case of non availability of
price from other bidders, the price will be estimated by the
Consultant/Engineer/Employer.
(ii) Price Adjustment for Commercial Compliance
The cost of making good any deficiency resulting from
any quantifiable variations and deviations from the Bid
Schedules and Conditions of Contract, as determined by
the Consultant/Engineer/Employer will be added to the
Corrected Total Bid Price for comparison purpose only.
Adjustment for commercial compliance will be added to
the Corrected Total Bid Prices.
(iii) Price Adjustment for Deviation in Terms of Payments
Refer to Bidding Data.
IB.17 Process to be 17.1 Subject to Sub-Clause IB.16.3 heretofore, no bidder shall
PAKISTAN ENGINEERING COUNCIL
16 Instructions to Bidders

Confidential contact the Consultant/Engineer/Employer on any matter


relating to its Bid from the time of the Bid opening to the time
the bid evaluation result is announced by the Employer. The
evaluation result shall be announced at least ten (10) days prior
to award of Contract. The announcement to all bidders will
include table(s) comprising read out prices, discounted prices,
price adjustments made, final evaluated prices and
recommendations against all the bids evaluated.
17.2 Any effort by a bidder to influence the
Consultant/Engineer/Employer in the Bid evaluation, Bid
comparison or Contract Award decisions, may result in the
rejection of his Bid.
A bidder feeling aggrieved may lodge a written complaint not
later than fifteen (15) days after the announcement of the bid
evaluation result, however, mere fact of lodging a complaint
shall not warrant suspension of procurement process. The
Employer will respond the complaint within 10 days of its
receipt.

F. AWARD OF CONTRACT

IB.18. Post 18.1 The Employer, at any stage of the bid evaluation, having
Qualification credible reasons for or prima facie evidence of any defect in
supplier’s or contractor’s capacities, may require the suppliers
or contractors to provide information concerning their
professional, technical, financial, legal or managerial
competence whether already pre-qualified or not:

Provided that such qualification shall only be laid down after


recording reasons therefor in writing. They shall form part of
the records of that bid evaluation report.
18.2 The determination will take into account the bidder’s financial
and technical capabilities. It will be based upon an examination
of the documentary evidence of the bidders’ qualifications
submitted under Clause IB.11, as well as such other
information required in the Bidding Documents.
IB.19 Award Criteria 19.1 Subject to Sub-Clause IB.19.2, the Employer will award the
& Employer’s Contract to the bidder whose bid has been determined to be
Right substantially responsive to the Bidding Documents and who
has offered the lowest evaluated Bid Price, provided that such
bidder has been determined to be qualified to satisfactory
perform the Contract in accordance with the provisions of
Clause IB.18.
19.2 Notwithstanding Sub-Clause IB.19.1, the Employer reserves
the right to accept or reject any bid, and to annul the bidding
process and reject all bids, at any time prior to award of
Contract, without thereby incurring any liability to the affected
bidders or any obligation to inform the affected bidders of the
grounds for the Employer’s action except that the grounds for
its rejection of all bids shall upon request be communicated, to

PAKISTAN ENGINEERING COUNCIL


Instructions to Bidders 17

any bidder who submitted a bid, without justification of the


grounds. Notice of the rejection of all the bids shall be given
promptly to all the bidders.
IB.20 Notification of 20.1 Prior to expiration of the period of bid validity prescribed by
Award& the Employer, the Employer will notify the successful bidder in
Signing of writing (“Letter of Acceptance”) that his bid has been accepted.
Contract
20.2 Within seven (7) days from the date of furnishing of acceptable
Agreement
Performance Security under the Conditions of Contract, the
Employer will send the successful bidder the Form of Contract
Agreement provided in the Bidding Documents, incorporating
all agreements between the parties.
20.3 The formal Agreement between the Employer and the
successful bidder shall be executed within seven (7) days of the
receipt of Form of Contract Agreement by the successful
bidder from the Employer.
IB.21 Performance 21.1 The successful bidder shall furnish to the Employer a
Security Performance Security in the form and the amount stipulated in
the Conditions of Contract within a period of fourteen (14)
days after the receipt of Letter of Acceptance.
21.2 Failure of the successful bidder to comply with the
requirements of Sub-Clauses IB.20.2 & 20.3 or 21.1 or Clause
IB.22 shall constitute sufficient grounds for the annulment of
the award and forfeiture of the Bid Security.

IB.22 Integrity Pact The Bidder shall sign and stamp the Form of Integrity Pact provided
at Schedule-F to Bid in the Bidding Document for all Federal
Government procurement contracts exceeding Rupees ten (10)
million. Failure to provide such Integrity Pact shall make the bid non-
responsive.

IB.23 Adjudicator Disputes shall be referred to an Adjudicator for decision. The Parties
to the contract, the Employer and the Contractor shall appoint an
Adjudicator by the date stated in the Contract Data. The remuneration
of the Adjudicator shall also be mutually agreed upon by the Parties
when agreeing the terms of appointment. In case of disagreement by
any of the Parties, regarding appointment of the Adjudicator, or
function/performance of the Adjudicator, the matter shall be referred
to the Appointing Authority designated in the Contract Data.

PAKISTAN ENGINEERING COUNCIL


18 Instructions to Bidders

PAKISTAN ENGINEERING COUNCIL


Bidding Data 19

BIDDING DATA

PAKISTAN ENGINEERING COUNCIL


Bidding Data 20

PAKISTAN ENGINEERING COUNCIL


Bidding Data 21

BIDDING DATA
(This section should be filled in by the Consultabt/Engineer/Employer before issuance of the
Bidding Documents. The following specific data for the Works to be tendered shall complement,
amend, or supplement the provisions in the Instructions to Bidders. Wherever there is a conflict,
the provisions herein shall prevail over those in the Instructions to Bidders.)

IB Clause Bidding Data


Reference

1.1 a) Name of the Employer:______________________________________


[Insert name of the Employer]

b) Brief Description of the Work: _______________________________


___________________________________________________________
[Insert brief Description of the Work.]

c) Name of the Consultant: ____________________________________


[Insert name of the Consultants, if applicable]

1.2 Source of Funds: _____________________________________________


[Insert source of financing the work]

5.1 a) Employer’s address: _______________________________________


[Insert address of the Employer with telex/fax no.]

b) Consultant/Engineer’s address: ______________________________


___________________________________________________________
[Insert address of the Consultant/Engineer with telex/fax no.]

10.3 Bid shall be quoted entirely in Pak. Rupees. The payment shall be made in Pak.
Rupees.

11.2 The bidder has the financial, technical and production capability necessary to
perform the Contract as follows: _______________________________
____________________________________________________________
____________________________________________________________
[The Employer may specify the required data.]

12.1 [(a) A detailed description of the Works, essential technical and


performance characteristics.
(b) Complete set of technical information, description data, literature and
drawings as required in accordance with Schedule B to Bid, Specific
Works Data. This will include but not be limited to a sufficient number
of drawings, photographs, catalogues, illustrations and such other
information as is necessary to illustrate clearly the significant
characteristics such as general construction dimensions and other
relevant information about the works to be performed.]

13.1 Amount of Bid Security: ________________

PAKISTAN ENGINEERING COUNCIL


22 Bidding Data

[Fill in lump sum amount or in %age of bid amount ranging from 1 to 3%]

IB Clause Bidding Data


Reference

14.1 Period of Bid Validity: _________________


[Fill in “number of days” ranging from 56 to 100, as required.]

14.4 Number of Copies of the Bid to be Submitted: One original plus


_________copies
[Usually one original and two copies]

14.6 Employer's address for the purpose of Bid submission: ________________


____________________________________________________________
[Insert postal address or location of bid box for delivery by hand.]

15.1 Deadline for submission of bids: 11:00 AM on _____________________

16.1 Venue, time, and date of Bid opening:


Venue: __________________________
Time: __________________________
Date: __________________________

16.4 Responsiveness of Bids:


i) the Bid is valid till required period,
(ii) the Bid prices are firm during currency of contract (if it is a fixed
price bid)
(iii) completion period offered is within specified limits,
(iv) the Bidder is eligible to Bid and possesses the requisite experience,
capability and qualification.
(v) the Bid does not deviate from basic technical requirements and
(vi) the Bids are generally in order, etc.
16.9 Evaluation Methods
(iii) Price Adjustment for Deviations in Terms of Payment:
If a bid deviates from the terms of payment/payment conditions as
specified in the Conditions of Contract and if such deviation is
considered acceptable to the Employer, mark-up earned for any
earlier payments involved in the terms outlined in the Bid as
compared to those stipulated in the Conditions of Contract shall be
calculated at the mark-up rate of KIBOR + 2% and shall be added to
the Corrected Total Bid Price for comparison purposes only.

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 23

LETTER OF BID
AND
SCHEDULES TO BID

PAKISTAN ENGINEERING COUNCIL


24 Letter of Bid and Schedules to Bid

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 25

LETTER OF BID
Bid Reference No. ________________________
(Name of Contract/Works)

To:
_______________________________
_______________________________

Gentleman,

1. Having examined the Bidding Documents including Instructions to Bidders, Bidding


Data, Conditions of Contract, Specifications, Drawings and Bill of Quantities and
Addenda Nos. _________________________________for the execution of the above-
named Works, we, the undersigned, offer to execute and complete such Works and
remedy any defects therein in conformity with the Conditions of Contract.
Specifications, Drawings, Bill of Quantities and Addenda for the sum of
Rs.______________ (Rupees______________________________________________)
or such other sum as may be ascertained in accordance with the said Documents.

2. We understand that all the Appendices attached hereto form part of this Bid.

3. As security for due performance of the undertakings and obligations of this Bid, we
submit herewith a Bid Security in the amount of Rupees _______________________
(Rs. __________________________________) drawn in your favour or made payable
to you and valid for a period of twenty eight (28) days beyond the period of validity of
Bid.

4. We undertake, if our Bid is accepted, to commence the Works and to complete the whole
of the Works comprised in the Contract within the time stated in Contract Data.

5. We agree to abide by this Bid for the period of ______ days from the date fixed for
receiving the same and it shall remain binding upon us and may be accepted at any time
before the expiration of that period.

6. Unless and until a formal Agreement is prepared and executed, this Bid, together with
your written acceptance thereof, shall constitute a binding contract between us.

7. We undertake, if our Bid is accepted, to execute the Performance Security referred to in


Conditions of Contract for the due performance of the Contract.

8. We understand that you are not bound to accept the lowest or any bid you may receive.

9. We do hereby declare that the Bid is made without any collusion, comparison of figures
or arrangement with any other person or persons making a bid for the Works
Dated this ___________day of________________20______
Signature: ________________________
in the capacity of _____________________duly authorized to sign Bids for and on behalf of

___________________________________________________________________________
(Name of Bidder in Block Capitals)
(Seal)
PAKISTAN ENGINEERING COUNCIL
26 Letter of Bid and Schedules to Bid

Address:____________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Witness:
Signature: _____________________________
Name: ________________________________
Address. _____________________________________
_____________________________________
Occupation____________________________________

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 27

Schedule -A to Bid

SCHEDULE OF PRICE

Sr. No. Description Page No.

1. Preamble to Schedule of Prices…………………………... 29

2. Schedule of Prices……………………………………….. 31

*(a) Summary of Bid Prices ……………………………. 31

*(b) Detailed Schedule of Prices ……………………….. 32

* [To be prepared by the Consultant/Engineer/Employer]

PAKISTAN ENGINEERING COUNCIL


28 Letter of Bid and Schedules to Bid

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 29

Schedule -A to Bid

SCHEDULE OF PRICE

Preamble
1. General
1.1 The Schedule of Prices shall be read in conjunction with the Conditions of
Contract, Contract Data together with the Specifications and Drawings, if any.
1.2 The Contract shall be for the whole of the Works as described in these Bidding
Documents. Bids must be for the complete scope of works.

2. Description
2.1 The general directions and descriptions of works and materials are not necessarily
repeated nor summarized in the Schedule of Prices. References to the relevant
sections of the Bidding Documents shall be made before entering prices against
each item in the Schedule of Prices.

3. Units & Abbreviations


3.1 Units of measurement, symbols and abbreviations expressed in the Bidding
Documents shall comply with the Systeme Internationale d’ Unites (SI Units).
______________________________
______________________________
[Note:The abbreviations to be used in the Schedule of Prices to be defined by the
Employer]

4. Rates and Prices


4.1 Except as otherwise expressly provided under the Conditions of Contract, the
rates and amounts entered in the Schedule of Prices shall be the rates at which the
Contractor shall be paid and shall be the full inclusive value of the works set forth
or implied in the Contract; except for the amounts reimbursable, if any to the
Contractor under the Contract.
4.2 Unless otherwise stipulated in the Contract Data, the rates and prices entered
by the bidder shall not be subject to adjustment during the performance of the
Contract.
4.3 All duties, taxes and other levies payable by the Contractor shall be included
in the rates and prices.
4.4 The whole cost of complying with the provisions of the Contract shall be
included in the items provided in the Schedule of Prices, and where no items are
provided, the cost shall be deemed to be distributed among the rates and prices
entered for the related items of the Works and no separate payment will be made
for those items.
The rates, prices and amounts shall be entered against each item in the Schedule
of Prices. Any item against which no rate or price is entered by the bidder will not
be paid for by the Employer when executed and shall be deemed covered by the
rates and prices for other items in the Schedule of Prices.

PAKISTAN ENGINEERING COUNCIL


30 Letter of Bid and Schedules to Bid

Schedule -A to Bid

4.5 (a) The bidder shall be deemed to have obtained all information as to and all
requirements related thereto which may affect the bid price.
*(b) The Contractor shall be responsible to make complete arrangements for
the transportation of the Plant to the Site.
*[Employer may modify as appropriate]

5. Bid Prices
5.1 Break-up of Bid Prices
The various elements of Bid Prices shall be quoted as detailed by the Employer in
the format of Schedule of Prices.
The bidder shall recognize such elements of the costs which he expects to incur
the performance of the Works and shall include all such costs in the rates and
amounts entered in the Schedule of Prices.
5.2 Total Bid Price
The total of bid prices in the Schedule of Prices shall be entered in the Summary
of Bid Prices.

6. Provisional Sums
6.1 Provisional Sums included and so designated in the Schedule of Prices if any,
shall be expended in whole or in part at the direction and discretion of the
Engineer/Employer. The Contractor will only receive payment in respect of
Provisional Sums if he has been instructed by the Engineer/Employer to utilise
such sums.

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 31

Schedule -A to Bid

SCHEDULE OF PRICE

Summary of Bid Prices

Bill
Description Amount (Rs.)
No

Total Bid Price

(In words) ______________________________________________________________

[The amount to be entered in Paragraph-1 of the Letter of Bid.]

PAKISTAN ENGINEERING COUNCIL


32 Letter of Bid and Schedules to Bid

Schedule -A to Bid

SCHEDULE OF PRICE
Bill No. 1
Rate
Item Amount
Description Unit Quantity Rupees in Rupees in words
No Rupees
figures
1 2 3 4 5 6

Total for Bill No. 1____________________________ (Carried forward to Summary Page)

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 33

Schedule -A to Bid

SCHEDULE OF PRICE
Bill No. 2
Rate
Item Amount
Description Unit Quantity Rupees in Rupees in words
No Rupees
figures
1 2 3 4 5 6

Total for Bill No. 2____________________________ (Carried forward to Summary Page)

PAKISTAN ENGINEERING COUNCIL


34 Letter of Bid and Schedules to Bid

Schedule -B to Bid

SPECIFIC WORKS DATA

[Note:
To be prepared and incorporated by the Employer.
The Employer shall spell out the information & data required to be filled out by the
bidder and to furnish complementary information.]

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 35

Schedule -C to Bid

WORKS TO BE PERFORMED BY SUBCONTRACTORS

The bidder will do the work with his own forces except the work listed below which
he intends to sub-contract:
Statement of similar
Items of Works Name and address of
works previously
to be Sub-Contracted Sub-Contractors
executed (attach evidence)

Note:
1. No change of Sub-Contractors shall be made by the Contractor without prior
approval of the Employer.
2. The truthfulness and accuracy of the statement as to the experience of Sub-
Contractors is guaranteed by the bidder. The Employer’s judgment shall be final as
to the evaluation of the experience of Sub-Contractors submitted by the bidder.
3. Statement of similar works shall include description, location & value of works,
year completed and name & address of the clients.

PAKISTAN ENGINEERING COUNCIL


36 Letter of Bid and Schedules to Bid

Schedule -D to Bid

PROPOSED PROGRAMME OF WORKS

[Bidder shall provide a programme in a bar-chart showing the sequence of work items by which
he proposes to complete the Works of the entire Contract. The programme should indicate the
sequence of work items and the period of time during which he proposes to complete the Works
including the activities like designing, schedule of submittal of drawings, ordering and
procurement of materials, manufacturing, delivering, construction of civil works, erection, testing
and commissioning of Works to be supplied under the Contract.]

PAKISTAN ENGINEERING COUNCIL


Letter of Bid and Schedules to Bid 37

Schedule -E to Bid

METHOD OF PERFORMING WORKS

[The bidder is required to submit a narrative outlining the method of performing the Works.
The narrative should indicate in detail and include but not be limited to:
• The sequence and methods in which he proposes to carry out the Works, including the
number of shifts per day and hours per shift, he expects to work.
• A list of all major items of constructional and erectional plant, tools and vehicles
proposed to be used in delivering/carrying out the Works at Site
• The procedure for installation of equipment and transportation of equipment and
materials to the site.
• Organisation chart indicating head office & field office personnel involved in
management, supervision and engineering of the Works to be done under the
Contract.]

PAKISTAN ENGINEERING COUNCIL


38 Letter of Bid and Schedules to Bid

Schedule -F to Bid

INTEGRITY PACT
DECLARATION OF FEES, COMMISSION AND BROKERAGE ETC.
PAYABLE BY THE SUPPLIERS OF GOODS, SERVICES & WORKS IN
CONTRACTS WORTH RS. 10.00 MILLION OR MORE

Contract No.________________ Dated __________________


Contract Value: ________________
Contract Title: _________________

………………………………… [name of Supplier] hereby declares that it has not obtained or


induced the procurement of any contract, right, interest, privilege or other obligation or benefit
from Government of Pakistan (GoP) or any administrative subdivision or agency thereof or any
other entity owned or controlled by GoP through any corrupt business practice.

Without limiting the generality of the foregoing, [name of Supplier] represents and warrants that
it has fully declared the brokerage, commission, fees etc. paid or payable to anyone and not given
or agreed to give and shall not give or agree to give to anyone within or outside Pakistan either
directly or indirectly through any natural or juridical person, including its affiliate, agent,
associate, broker, consultant, director, promoter, shareholder, sponsor or subsidiary, any
commission, gratification, bribe, finder’s fee or kickback, whether described as consultation fee
or otherwise, with the object of obtaining or inducing the procurement of a contract, right,
interest, privilege or other obligation or benefit in whatsoever form from GoP, except that which
has been expressly declared pursuant hereto.

[name of Supplier] certifies that it has made and will make full disclosure of all agreements and
arrangements with all persons in respect of or related to the transaction with GoP and has not
taken any action or will not take any action to circumvent the above declaration, representation or
warranty.

[name of Supplier] accepts full responsibility and strict liability for making any false declaration,
not making full disclosure, misrepresenting facts or taking any action likely to defeat the purpose
of this declaration, representation and warranty. It agrees that any contract, right, interest,
privilege or other obligation or benefit obtained or procured as aforesaid shall, without prejudice
to any other rights and remedies available to GoP under any law, contract or other instrument, be
voidable at the option of GoP.

Notwithstanding any rights and remedies exercised by GoP in this regard, [name of Supplier] agrees
to indemnify GoP for any loss or damage incurred by it on account of its corrupt business practices
and further pay compensation to GoP in an amount equivalent to ten time the sum of any commission,
gratification, bribe, finder’s fee or kickback given by [name of Supplier] as aforesaid for the purpose
of obtaining or inducing the procurement of any contract, right, interest, privilege or other obligation
or benefit in whatsoever form from GoP.

Name of Buyer: ……………… Name of Seller/Supplier: ………………


Signature: …………………… Signature: …………………………….
[Seal] [Seal]

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 39

CONDITIONS OF CONTRACT

PAKISTAN ENGINEERING COUNCIL


40 Conditions of Contract

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 41

CONDITIONS OF CONTRACT

TABLE OF CONTENTS

Clause No. Description Page No.

1. General Provisions …………………………….……… 43

2. The Employer ………………………………………... 45

3. Consultant/Engineer’s/Employer’s Representatives …. 45

4. The Contractor ……………………………………….. 45

5. Design by Contractor…………………………………. 46

6. Employer’s Risks…………………………………….. 46

7. Time for Completion…………………………………. 47

8. Taking Over………………………………………….. 48

9. Remedying Defects………………………………….. 48

10. Variations And Claims………………………………. 48

11. Contract Price And Payment………………………… 49

12. Default………………………………………………. 51

13. Risks And Responsibilities…………………………… 52

14. Insurance……………………………………………… 52

15. Resolution of Disputes……………………………….. 53

16 Integrity Pact…………………………………………. 54

PAKISTAN ENGINEERING COUNCIL


42 Conditions of Contract

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 43

CONDITIONS OF CONTRACT

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 Contract Agreement and the other documents
listed in the Sub Clause 1.3 below.

1.1.2 “Specifications” means the document as listed in the Contract Data,


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 Contract Data, and any Variation to such drawings.

Persons

1.1.4 “Employer” means the person named in the Contract Data and the
legal successors in title to this person, but not (except with the consent
of the Contractor) any assignee.

1.1.5 “Contractor” means the person named in the Contract Data and the
legal successors in title to this person, but not (except with the consent
of the Employer) any assignee.

1.1.6 “Party” means either the Employer or the Contractor

Dates, Times and Periods

1.1.7 “Commencement Date” means the date 14 days after signing of the
Contract Agreement.

1.1.8 “Day” means a calendar day.

1.1.9 “Time for Completion” means the time for completing the Works as
stated in the Contract Data (or as extended under Sub-Clause 7.3),
calculated from the Commencement Date.

Money and Payments

1.1.10 “Contract Price” means the amount stated in the Letter of Acceptance
for execution, completion of works and the remedying of any defects
including adjustments in accordance with the contract.

1.1.11 “Cost” means all expenditure properly incurred (or to be incurred) by


the Contractor, whether on or off the Site, including overheads and
similar charges but does not include any allowance for profit.

PAKISTAN ENGINEERING COUNCIL


44 Conditions of Contract

Other Definitions

1.1.12 “Contractor’s Equipment” means all machinery, apparatus and other


things required for the execution of the Works but does not include
Materials or Plant intended to form part of the Works.

1.1.13 “Country” means the Islamic Republic of Pakistan.

1.1.14 “Employer’s Risks” means those matters listed in Sub-Clause 6.1.

1.1.15 “Force Majeure” means an event or circumstance which makes


performance of a Party’s obligations illegal or impracticable and
which is beyond that Party’s reasonable control.

1.1.16 “Materials” means things of all kinds (other than Plant) to be supplied
and incorporated in the Works by the Contractor.

1.1.17 “Plant” means the machinery and apparatus intended to form or


forming part of the Works.

1.1.18 “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.

1.1.19 “Variation” means a change which is instructed by the


Engineer/Employer under Sub-Clause 10.1.

1.1.20 ‘Works” means any or all the works whether Supply, Installation,
Construction etc. and design (if any) to be performed by the
Contractor including temporary works and any variation thereof.

1.1.21 “Engineer” means the person notified by the Employer to act as


Engineer for the purpose of the Contract and named as such in
Contract Data.

1.1.22 “Taking-Over Certificate" means a certificate issued pursuant to


Clause 8.

1.1.23 “Performance Certificate” means a certificate issued pursuant to


Clause 9.

1.1.24 “Defects Notification Period” is the period pursuant to Sub-Clause 9.1


and calculated from the date of issue of the Taking Over Certificate.

1.1.25 “Adjudicator” means the person appointed jointly by the Employer


and the Contractor to resolve disputes in the first instance, as provided
for in Clause 15, [Resolution of Disputes].

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 are to be taken as mutually
Documents explanatory of one another. If an ambiguity or discrepancy is found in
the documents, the priority of the documents shall be in accordance

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 45

with the order as listed in the Contract Data.

1.4 Law The law of the Contract is the relevant Law of Islamic Republic of
Pakistan.

1.5 Communications All Communications related to the Contract shall be in English


language.

1.6 Statutory The Contractor shall comply with the Laws of Islamic Republic of
Obligations Pakistan and shall give all notices and pay all fees and other charges
in respect of the Works.

2. THE EMPLOYER

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

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

2.3 Engineer’s / The Contractor shall comply with all instructions given by the
Employer’s Employer or the Engineer, in respect of the Works including the
Instructions suspension of all or part of the Works.

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


Engineer/Employer shall affect the Contractor’s obligations.

3. ENGINEER’S/EMPLOYER’S REPRESENTATIVES

3.1 Authorised Person The Employer shall appoint a duly authorized person to act for him
and on his behalf for the purposes of this Contract. Such authorized
person shall be duly identified in the Contract Data or otherwise
notified in writing to the Contractor as soon as he is so appointed. In
either case the Employer shall notify the Contractor, in writing, the
precise scope of the authority of such authorized person at the time of
his appointment.

3.2 Engineer’s The name and address of Engineer’s Representative is given in


Representative Contract Data. However the Contractor shall be notified by the
Engineer, the delegated duties and authority before the
Commencement of Works.

3.3 Engineer’s The Engineer appointed by the Employer, named in the Contract
Authority Data, or notified by the Employer to the Contractor from time to time,
shall obtain prior approval of the Employer before exercising powers
of the Employer, under or in connection with the Sub Clauses: 4.3,
5.1, 7.3, 8.2, 9.1, 10.1, 10.2, 12.1, 12.3, 12.4, 13.2, 14.2, and 15.1 to
15.5.

4. THE CONTRACTOR

4.1 General The Contractor shall carry out the Works properly and in accordance
Obligations with the Contract. The Contractor shall provide all supervision,
labour, Materials, Plant and Contractor’s Equipment which may be
PAKISTAN ENGINEERING COUNCIL
46 Conditions of Contract

required.

4.2 Contractor’s The Contractor shall appoint a representative at site on full time basis
Representative to supervise the execution of work and to receive instructions on
behalf of the Contractor but only after obtaining the consent of the
Employer for such appointment which consent shall not be
unreasonable withheld by the Employer. Such authorized
representative may be substituted/replaced by the Contractor at any
time during the Contract Period but only after obtaining the consent of
the Employer as aforesaid.

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 The Contractor shall furnish to the Employer within fourteen (14)
Security days after receipt of Letter of Acceptance a Performance Security at
the option of the bidder, in the form of Bank Draft or Bank Guarantee
from a Scheduled Bank or an Insurance Company having alteast AA
rating from PACRA/JCR for the amount and validity specified in
Contract Data.
The Performance Security of a Joint Venture must be in the name of
Joint Venture submitting the Bid. The cost of complying with
requirements of this Sub Clause- shall be borne by the Contractor.

5. DESIGN BY CONTRACTOR

5.1 Contractor’s The Contractor shall carry out design to the extent specified, as
Design referred to in the Contract Data. The Contractor shall promptly submit
to the Engineer/Employer all designs prepared by him. Within
fourteen (14) days of receipt the Engineer/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 Works designed by him within fourteen
(14) days after the design has been submitted to the
Engineer/Employer or which 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 for The Contractor shall remain responsible for his bided design and the
Design 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 Engineer/Employer shall be responsible for the Specifications
and Drawings.

6. EMPLOYER’S RISKS

6.1 The Employer’s The Employer’s Risks are:


Risks
a) war, hostilities (whether war be declared or not), invasion, act of
foreign enemies, within the Country;

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 47

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 including the
personnel and employees of Sub-Contractors, 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 assembly or nuclear
component of such an assembly, except to the extent to which the
Contractor/Sub-Contractors 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) late handing over of sites, anomalies in drawings, late delivery of
designs and drawings of any part of the Works by the Employer’s
personnel or by others for whom the Employer is responsible;
h) a suspension under Sub-Clause 2.3 unless it is attributable to the
Contractor’s failure;
i) physical obstructions or physical conditions other than climatic
conditions, encountered on the Site during the performance of the
Works, for which the Contractor immediately notified to the
Employer and accepted by the Employer; and
j) any change to the law of the Contract after the date of the
Contractor's offer as stated in the Agreement.
7. TIME FOR COMPLETION

7.1 Execution of the The Contractor shall commence the Works on the Commencement
Works Date and shall proceed expeditiously and without delay and shall
complete the Works, subject to Sub-Clause 7.3 below, within the
Time for Completion.

7.2 Programme Within the time stated in the Contract Data, the Contractor shall
submit to the Engineer/Employer a programme for the Works in the
form stated in the Contract Data.

7.3 Extension of Time The Contractor shall, within 7 days, notify the Employer/Engineer of
any event(s) falling within the scope of Sub Clause - 6.1 or 10.3 of
these Conditions of Contract and request the Employer/Engineer for a
reasonable extension in the time for the completion of Works. The
Employer/Engineer shall determine such reasonable extension of time
as may be justified in the light of the details/particulars supplied by
the Contractor. Further in connection with the such determination by
the Employer/Engineer, the Employer shall extend the Time for
Completion.

7.4 Late Completion If the Contractor fails to complete the Works within the Time for
PAKISTAN ENGINEERING COUNCIL
48 Conditions of Contract

Completion, the Contractor’s only liability to the Employer for such


failure shall be to pay the amount stated in the Contract Data for each
day for which he fails to complete the Works.
8. TAKING-OVER

8.1 Completion The Contractor may notify the Engineer/Employer when he considers
that the Works are complete.

8.2 Taking-Over Within fourteen (14) days of the receipt of the said notice of
Notice completion from the Contractor the Employer/Engineer shall either
takeover the completed Works and issue a Taking Over Certificate of
Completion to that effect or shall notify the Contractor his reasons for
not taking-over the Works. While issuing the Taking Over Certificate
of Completion as aforesaid, the Employer/Engineer may identify any
outstanding items of work which the Contractor shall undertake
during the Defects Notification Period.

9. REMEDYING DEFECTS

9.1 Remedying The Contractor shall during Defects Notification Period stated in the
Defects Contract Data from the date of issue of the Taking Over Certificate
carry out, at no cost to the Employer, repair and rectification work
which is necessitated by the earlier execution of poor quality of work
or use of below specifications material in the execution of Works and
which is so identified by the Employer/Engineer in writing within
such period. Upon expiry of such period, and subject to the
Contractor’s fulfillment of aforesaid obligations, the
Employer/Engineer shall issue a Performance Certificate whereupon
all obligations of the Contractor under this Contract shall come to an
end.
Failure to remedy any such defects or complete outstanding work
within a reasonable time shall entitle the Employer to carry out all
necessary works at the Contractor’s cost. However, the cost of
remedying defects not attributable to the Contractor shall be valued as
a Variation.

9.2 Uncovering and The Engineer/Employer may give instruction as to the uncovering
Testing and/or testing of any work. Unless as a result of an 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/Engineer may issue Variation Order(s) in writing.
Where for any reason it has not been possible for the
Employer/Engineer to issue such Variations Order(s), the Contractor
may confirm any verbal orders given by the Employer/Engineer in
writing and if the same are not refuted/denied by the
Employer/Engineer within seven (7) days of the receipt of such
confirmation the same shall be deemed to be a Variation Orders for

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Conditions of Contract 49

the purposes of this Sub-Clause.

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, or failing which
c) at appropriate new rates, as may be agreed or which the
Engineer/Employer considers appropriate, or
d) at a lump sum price agreed between the Parties.

10.3 Early Warning The Contractor shall notify the Engineer/Employer in writing
promptly within 7 days as he is aware of any event or 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 minimize these effects.
Within 28 days of giving above notice, the Contractor shall send to
the Engineer/Employer an account giving detailed particulars of
entitlement to extension of time for completion, the amount claimed
and the grounds upon which the claim is based.
If the Contractor fails to comply with any of the above provisions of
this Sub Clause in respect of any claim which he seeks to make, his
entitlement to extension of time and payment in respect thereof or any
cost claim, shall not exceed such extension of time and amount as the
Engineer/Employer so determines.

10.4. Valuation of If the Contractor incurs Cost as a result of any of the Employer’s
Claims Risks, the Contractor shall be entitled to the amount of such Cost. If
as a result of any Employer’s Risk, it is necessary to change the
Works, this shall be dealt with as a Variation subject to Contractor’s
notification for intention of claim to the Engineer/Employer within
fourteen (14) days of the occurrence of cause.

10.5 Variation and The Contractor shall submit to the Engineer/Employer an itemised
Claim Procedure make-up of the value of variations and claims within twenty eight
(28) days of the instruction or of the event giving rise to the claim.
The Engineer/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 Terms of Payments The amount due to the Contractor under any Interim Payment
Certificate issued by the Engineer pursuant to this Sub Clause, or to
any other terms of the Contract, shall, subject to Sub Clause 7.4, be
paid by the Employer to the Contractor after such Interim Payment
Certificate has been Certified by the Engineer, or, in the case of the
Final Certificate referred to in Sub Clause11.5, after such Final
Payment Certificate has been Certified by the Engineer. In the event
of the failure of the Employer to make payment within the specified,
the Employer shall pay to the Contractor compensation at the one
month rate of KIBOR+2% per annum, upon all sums unpaid from the
PAKISTAN ENGINEERING COUNCIL
50 Conditions of Contract

date by which the same should have been paid. The provisions of this
Sub Clause are without prejudice to the Contractor’s entitlement
under Sub Clause 12.2.

11.2 Valuation of The Works shall be valued as provided for in the Contract Data.
the Works

11.3 Works to be The Engineer shall, except as otherwise stated, ascertain, measure
measured and determine the value of the Works in accordance with the above
Sub Clause, subject to Contract Clause 10, and the Contractor shall
be paid accordingly.
The Works shall be measured net, notwithstanding any general or
local custom, except where otherwise provided for in the Contrac.

11.4 Monthly The Contractor shall be entitled to be paid at monthly intervals the
Statements value of works executed.
The Contractor shall submit each month to the Engineer/ Employer a
statement showing the amounts to which he considers himself
entitled, and Progress of work executed during the month.

11.5 Interim Payments Within a period not exceeding seven (7) days from the date of
submission of a statement for interim payment by the Contractor, the
Engineer shall verify the same and within a period not exceeding
thirty (30) days from the said date of submission by the Contractor,
the Employer shall pay to the Contractor the sum verified by the
Engineer less retention money at the rate stated in the Contract Data.

11.6 Retention Money One half of the retention shall be paid by the Employer to the
Contractor within 14 days after issuing the Taking Over Certificate
under Sub Clause 8.2. The balance amount of the retention shall be
paid by the Employer to the Contractor within 14 days after issuance
of Performance Certificate.

11.7 Final Payment Within twenty one (21) days from the date of issuance of the
Performance Certificate the Contractor shall submit a final account to
the Engineer to certify and the Engineer shall certify the same within
fourteen (14) days from the date of submission and forward the same
to the Employer together with any documentation reasonably required
to enable the Employer to ascertain the final contract value.
Within sixty (60) days from the date of receipt of the certified final
account from the Engineer, the Employer shall pay to the Contractor
any amount due to the Contractor. While making such payment the
Employer may, for reasons to be given to the Contractor in writing,
withhold any part or parts of the certified amount.

11.8 Currency Payment shall be made in the Pak. Rs.

11.9 Advance payment a) An interest-free Advance stated in Contract Data shall be paid by
the Employer to the Contractor upon submission by the Contractor
the Performance Security and an Advance Guarantee for the full
amount of the Advance in the specified form from a Scheduled
Bank acceptable to the Employer, within 14 days after signing of

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 51

the Contract Agreement or date of receipt of Engineer’s Notice to


Commence.

b) This Advance shall be recovered within scheduled completion


period on basis of equal monthly installments.

11.10 Price Adjustment The Employer may where required shall include Price Adjustments
Provisions in accordance with Clause 13 of PEC Standard Bidding
Documents for Civil Works.

12. DEFAULT

12.1 Default by If the Contractor abandons the Works, refuses or fails to comply with
Contractor a valid instruction of the Engineer/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 fourteen (14) days after receipt of the Employer’s
notice, the Employer may by a second notice given within a further
twenty one (21) days, terminate the Contract. The Contractor shall
then demobilise from the Site leaving behind any Contractor’s
Equipment which the Employer instructs, in the second notice, to be
used for the completion of the Works at the risk and cost of the
Contractor.

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 fourteen (14) 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 twenty eight (28) days after the
Employer’s receipt of the Contractor’s notice, the Contractor may by
a second notice given within a further twenty one (21) 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 for the
completion of the Works.

12.4 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,

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52 Conditions of Contract

c) if the Employer has terminated under Sub-Clause 12.1 or 12.3, the


Employer shall be entitled to a sum equivalent to twenty percent
(20%) of the value of parts of the Works not executed at the date
of the termination, and
d) if the Contractor has terminated under Sub-Clause 12.2 or 12.3,
the Contractor shall be entitled to the cost of his demobilisation
together with a sum equivalent to ten percent (10%) of the value
of parts of the Works not executed at the date of termination.
The net balance due shall be paid or repaid within twenty eight (28)
days of the notice of termination.

13. RISKS AND RESPONSIBILITIES

13.1 Contractor’s Care Subject to Sub-Clause 9.1, the Contractor shall take full responsibility
of the Works for the care of the Works from the Commencement Date until the date
of the Employer’s/Engineer’s issuance of Taking Over Certificate of
Completion under Sub-Clause 8.2. Responsibility shall then pass to
the Employer. If any loss or damage happens to the Works during the
above period, the Contractor shall rectify such loss or damage so that
the Works conform with the Contract.

13.2 Force Majeure If a Party is or will be prevented from performing any of its
obligations by Force Majeure, the Party affected shall notify the other
Party immediately. If necessary, the Contractor may 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 eighty four (84) days, either
Party may then give notice of termination which shall take effect
twenty eight (28) 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 demobilisation, and
c) less any sums to which the Employer is entitled.
The net balance due shall be paid or repaid within thirty five (35) days
of the notice of termination.

14. INSURANCE

14.1 Arrangements The Contractor shall, prior to commencing the Works, effect
insurances of the types, in the amounts and naming as insured the
persons stipulated in the Contract Data except for items (a) to (e) and
(i) of the Employer’s Risks under Sub-Clause 6.1. The policies shall
be issued by insurers and in terms approved by the Employer. The
Contractor shall provide the Engineer/Employer with evidence that
any required policy is in force and that the premiums have been paid.

PAKISTAN ENGINEERING COUNCIL


Conditions of Contract 53

14.2 Default If the Contractor fails to effect or keep in force any of the insurances
referred to in the previous Sub-Clause, 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 as a default and pay the premiums due and recover the same plus
a sum in percentage given in Contractor Data from any other amounts
due to the Contractor.

15. RESOLUTION OF DISPUTES

15.1 Adjudicator’s Unless settled amicably, any dispute or difference which arises
Decision between the Contractor and the Engineer/Employer out of or in
connection with the contract, including any valuation or other
determination of the Engineer/Employer, the matter in dispute shall be
referred in writing to the Adjudicator, with a copy to the other party
pursuant to this Sub Clause. No later than the twenty eight (28) days
after the day on which he received such reference, the Adjudicator
shall give notice of his decision to the Employer and the Contractor.

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 Sub-Clause 15.1
hereabove, the Party may give notice of dissatisfaction referring to
this Sub-Clause within fourteen (14) 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. If notice of dissatisfaction is given within the specified
time, the decision shall be binding on the Parties who shall give effect
to it without delay unless and until the decision of the Adjudicator is
revised by arbitral award.

15.3 Appointment of The Parties to the contract, the Employer and the Contractor shall
the Adjudicator appoint an Adjudicator by the date stated in the Contract Data. The
Adjudicator shall be fluent in the language for communication defined
in the Contract and a professional experienced in the type of
construction involved in the Works and with the interpretation of
contractual documents.
The remuneration of the Adjudicator shall also be mutually agreed
upon by the Parties when agreeing the terms of appointment. Each
Party shall be responsible for paying one-half of this remuneration.
In case of disagreement by any of the Parties, regarding appointment
of the Adjudicator, or function/performance of the Adjudicator, the
matter shall be referred to the Appointing Authority designated in the
Contract Data.
The appointment of the Adjudicator may be terminated by mutual
agreement of both Parties. Unless otherwise agreed by both Parties,
the appointment of the Adjudicator shall expire after 14 days of the
issuance of Performance Certificate referred to in Sub-Clause 9.1.

15.4 Expiry of If there is no Adjudicator in place, whether by reason of the expiry of


Adjudicator’s the Adjudicator’s appointment or otherwise, the dispute may be
Appointment referred directly to arbitration under Sub-Clause 15.5 [Arbitration].

15.5 Arbitration Any dispute between the Parties arising out of or in connection with
PAKISTAN ENGINEERING COUNCIL
54 Conditions of Contract

the Contract not settled amicably and in respect of which the


Adjudicator’s decision (if any) has not become final and binding shall
be finally settled by arbitration, specified in the Contract Data.

16 INTEGRITY PACT

16.1 Integrity Pact If the Contractor, or any of his Sub-Contractors, agents or servants is
found to have violated or involved in violation of the Integrity Pact
signed by the Contractor as Schedule-F to his Bid, then the Employer
shall be entitled to:
(a) recover from the Contractor an amount equivalent to ten times the
sum of any commission, gratification, bribe, finder’s fee or
kickback given by the Contractor or any of his Sub-Contractors,
agents or servants;
(b) terminate the Contract; and
(c) recover from the Contractor any loss or damage to the Employer
as a result of such termination or of any other corrupt business
practices of the Contractor or any of his Sub-Contractors, agents
or servants.
On termination of the Contract under Sub-Para (b) of this Sub-Clause,
the Contractor shall demobilize from the Site leaving behind
Contractor’s Equipment which the Employer instructs, in the
termination notice, to be used for the completion of the Works at the
risk and cost of the Contractor. Payment upon such termination shall
be made under Sub-Clause 12.4, in accordance with Sub-Para (c)
thereof, after having deducted the amounts due to the Employer under
Sub-Para (a) and (c) of this Sub-Clause.

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Contract Data 55

CONTRACT DATA

PAKISTAN ENGINEERING COUNCIL


56 Contract Data

PAKISTAN ENGINEERING COUNCIL


Contract Data 57

CONTRACT DATA

[Note: Except where otherwise indicated, all Contract Data should be filled in by the Employer
prior to issuance of the Bidding Documents.]

Conditions Ref. COC Data

Specifications 1.1.2 [To be mentioned by the Employer including


Employer’s requirements, if any]

Employer’s Drawings 1.1.3 [ if any, to be listed by the Employer]

The Employer means 1.1.4


_____________________________________

The Contractor means 1.1.5


_____________________________________

Time for Completion 1.1.7 ___________ days


[The time for completion of the whole of the
Works should be assessed by the Employer]

The Engineer means 1.1.21 _____________________________________


_____________________________________

Priority of Documents 1.3 Documents forming the Contract listed in the


order of priority;
(a) The Contract Agreement,( if completed)
(b) Letter of Acceptance
(c) The completed Form of Bid
(d) Contract Data
(e) Conditions of Contract
(f) The completed Schedules to Bid excluding
the Schedule of Prices
(g) The Specifications
(h) The Drawings, if any
(i) The Schedule of Prices
(j) ________________________________
[The Employer may add, in order of priority, such
other documents as form part of the Contract.
Delete the document, if not applicable]

Provision of Site 2.1 [On the Commencement Date*]

Employer’s authorised 3.1 _________________________


Person
___________

PAKISTAN ENGINEERING COUNCIL


58 Contract Data

Conditions Ref. COC Data

Engineer’s representative 3.2

Performance Security 4.4 Amount __________, 10% of Contract Price


which shall remain fixed during the currency of
Contract, irrespective of Variations & Extension
of Time.
Validity ___________, 14 days after issuance of
Performance Certificate.
[Form: As provided under Standard Forms* of
these Documents]

Requirements for 5.1 Specification Clause No’s _________________


Contractor’s design [if any]

Programme 7.2 Time for submission: Within fourteen (14) days*


of the Commencement Date.
Form of programme: ___________________
[Bar Chart or other as acceptable to the
Engineer/Employer]

Late Completion 7.4 Delay Damages: _______ % per day* up to a


maximum of (10%) of sumstated in the Letter of
Acceptance.
[Usually the Delay Damages are set between 0.05
percent and 0.10 percent per day].

Period for remedying defects 9.1 _________ days.

Valuation of the Works 11.2 Admeasurement with Bill of Quantities:


A sum subject to remeasurement at the rates
entered by the Contractor in the Schedule of
Price prepared by the Employer.
Or
Lump sum Price:
A lump sum offer without any supporting
details. This would be used for minor works
where Variations are not anticipated and the
Works will be completed in a short period
requiring payments to the Contractor based
on few deliverables.
[The Employer shall delete one of the above
options whichever is not applicable]
Retention Money 11.6 5% of the amount of Interim Payment Certificate,
upto 5% of Contract Price.

PAKISTAN ENGINEERING COUNCIL


Contract Data 59

Conditions Ref. COC Data

Advance payment 11.9 10% of Contract Price less provisional sum stated
in LOA.

Price Adjustment 11.10 [The Employer may mention “Not Applicable”


if the provisions of Price Adjustments is not
required]

Insurances 14.1 Extent of cover


Type of cover Amount of cover
i) The Works/Plant: Premium plus 10%
ii) Contractor’s
equipment:
iii) Third Party-injury Full replacement Cost.
to person and
damage to property:
[The minimum
amount of third
party shall be
assessed by the
Employer and
entered]
iv) Workmen
Compensation:
[Under this cover,
Contractor’s
personnel engaged
for the Contract
shall be included]
Note:
In each case (i) & (iii) name of insured is
Contractor & Employer.
Appointment of the 15.3 14 days after the Commencement date.
Adjudicator
Appointment (if not agreed) to be made by
Pakistan Engineering Council (PEC).

Arbitration 15.5 PEC Rules of Conciliation and Arbitration.


Place of Arbitration:_________________

* Employer to specify as appropriate

PAKISTAN ENGINEERING COUNCIL


Standard Forms 60

STANDARD FORMS

PAKISTAN ENGINEERING COUNCIL


Standard Forms 61

PAKISTAN ENGINEERING COUNCIL


62 Standard Forms

FORM OF BID SECURITY


(Bank / Insurance Company Guarantee)
Security Executed on _________________________________________________________
(Date)
Name of Surety (Bank/Insurance Company) with Address: ___________________________
___________________________________________________________________________
(Scheduled Bank / Insurance Company Rating-AA in Pakistan)
Name of Principal (Bidder) with Address _________________________________________
___________________________________________________________________________
Penal Sum of Security Rupees. ______________ (Rs. ______________________________)
Bid Reference No. ___________________________________________________________

KNOW ALL MEN BY THESE PRESENTS, that in pursuance of the terms of the Bid and at
the request of the said Principal (Bidder) we, the Surety above named, are held and firmly
bound unto _________________________________________________________________
(hereinafter called the 'Employer') in the sum stated above for the payment of which sum well
and truly to be made, we bind ourselves, our heirs, executors, administrators and successors,
jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the Bidder has
submitted the accompanying Bid dated __________ for Bid No. __________
for __________________________ (Particulars of Bid) to the said Employer; and

WHEREAS, the Employer has required as a condition for considering said Bid that the
Bidder furnishes a Bid Security in the above said sum to the Employer, conditioned as under:
(1) that the Bid Security shall remain valid for a period of twenty eight (28) days beyond
the period of validity of the bid;
(2) that in the event of;
a) the Principal withdraws his Bid during the period of validity of Bid, or
b) the Principal does not accept the correction of his Bid Price, pursuant to Sub-
Clause 16.4 (b) of Instructions to Bidders, or
c) failure of the successful bidder to
(i) furnish the required Performance Security, in accordance with Sub-
Clause IB-21.1 of Instructions to Bidders, or
(ii) sign the proposed Contract Agreement, in accordance with Sub-Clauses
IB-20.2 & 20.3 of Instructions to Bidders.
(3) that the entire sum be paid immediately to the said Employer for delayed completion
and not as penalty for the successful bidder's failure to perform.

NOW THEREFORE, if the successful bidder shall, within the period specified therefore, on
the prescribed form presented to him for signature enter into a formal Contract Agreement
with the said Employer in accordance with his Bid as accepted and furnish within fourteen
(14) days of receipt of Letter of Acceptance, a Performance Security with good and sufficient
surety , as may be required, upon the form prescribed by the said Employer for the faithful

PAKISTAN ENGINEERING COUNCIL


Standard Forms 63

performance and proper fulfilment of the said Contract or in the event of non-withdrawal of
the said Bid within the time specified then this obligation shall be void and of no effect, but
otherwise to remain in full force and effect.

PROVIDED THAT the Surety shall forthwith pay the Employer the said sum upon first
written demand of the Employer (without cavil or argument) and without requiring the
Employer to prove or to show grounds or reasons for such demand, notice of which shall be
sent by the Employer by registered post duly addressed to the Surety at its address given
above.

PROVIDED ALSO THAT the Employer shall be the sole and final judge for deciding
whether the Principal (Bidder) has duly performed his obligations to sign the Contract
Agreement and to furnish the requisite Performance Security within the time stated above, or
has defaulted in fulfilling said requirements and the Surety shall pay without objection the
said sum upon demand from the Employer forthwith and without any reference to the
Principal (Bidder) or any other person.

IN WITNESS WHEREOF, the above bounden Surety has executed the instrument under its
seal on the date indicated above, the name and seal of the Surety being hereto affixed and
these presents duly signed by its undersigned representative pursuant to authority of its
governing body.

SURETY (Bank/ Insurance Company)

WITNESS:          Signature

1.          Name
         Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)

2. ____ _______
________________________
Name, Title & Address

PAKISTAN ENGINEERING COUNCIL


64 Standard Forms

FORM OF PERFORMANCE SECURITY


(Bank / Insurance Company Guarantee)
Guarantee No.___________________
Executed on ____________________
Expiry date _____________________
[Letter by the Guarantor to the Employer]
Name of Guarantor (Bank/Insurance Company) with address: _________________________
___________________________________________________________________________
((Scheduled Bank / Insurance Company Rating-AA in Pakistan)
Name of Principal (Contractor) with address:_______________________________________
_____________________________________________________________________________
Penal Sum of Security (express in words and figures) ________________________________
_____________________________________________________________________________
Letter of Acceptance No. _____________________________________Dated ______________
KNOW ALL MEN BY THESE PRESENTS, that in pursuance of the terms of the Bidding
Documents and above said Letter of Acceptance (hereinafter called the Documents) and at the
request of the said Principal we, the Guarantor above named, are held and firmly bound unto the
____________________________________________________________ (hereinafter called
the Employer) in the penal sum of the amount stated above for the payment of which sum well
and truly to be made to the said Employer, we bind ourselves, our heirs, executors, administrators
and successors, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that whereas the Principal has accepted
the Employer's above said Letter of Acceptance for _________________________________
________________________________ (Name of Contract) for the _______________
______________________________________________ (Name of Project).
NOW THEREFORE, if the Principal (Contractor) shall well and truly perform and fulfill all the
undertakings, covenants, terms and conditions of the said Documents during the original terms of
the said Documents and any extensions thereof that may be granted by the Employer, with or
without notice to the Guarantor, which notice is, hereby, waived and shall also well and truly
perform and fulfill all the undertakings, covenants terms and conditions of the Contract and of
any and all modifications of said Documents that may hereafter be made, notice of which
modifications to the Guarantor being hereby waived, then, this obligation to be void; otherwise to
remain in full force and virtue till all requirements of Clause 9, Remedying Defects, of
Conditions of Contract are fulfilled.
Our total liability under this Guarantee is limited to the sum stated above and it is a condition of
any liability attaching to us under this Guarantee that the claim for payment in writing shall be
received by us within the validity period of this Guarantee, failing which we shall be discharged
of our liability, if any, under this Guarantee.
We, _________________________________________________ (the Guarantor), waiving all
objections and defences under the Contract, do hereby irrevocably and independently guarantee
to pay to the Employer without delay upon the Employer's first written demand without cavil or
arguments and without requiring the Employer to prove or to show grounds or reasons for such

PAKISTAN ENGINEERING COUNCIL


Standard Forms 65

demand any sum or sums up to the amount stated above, against the Employer's written
declaration that the Principal has refused or failed to perform the obligations under the Contract
which payment will be effected by the Guarantor to Employer’s designated Bank & Account
Number.
PROVIDED ALSO THAT the Employer shall be the sole and final judge for deciding whether
the Principal (Contractor) has duly performed his obligations under the Contract or has defaulted
in fulfilling said obligations and the Guarantor shall pay without objection any sum or sums up to
the amount stated above upon first written demand from the Employer forthwith and without any
reference to the Principal or any other person.
IN WITNESS WHEREOF, the above-bounden Guarantor has executed this Instrument under its
seal on the date indicated above, the name and corporate seal of the Guarantor being hereto
affixed and these presents duly signed by its undersigned representative, pursuant to authority of
its governing body.

Guarantor (Bank/ Insurance Company)

WITNESS:          Signature

1.          Name
         Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)

2. ____ _______
________________________
Name, Title & Address

PAKISTAN ENGINEERING COUNCIL


66 Standard Forms

FORM OF CONTRACT AGREEMENT

THIS CONTRACT AGREEMENT (hereinafter called the “Agreement”) made on the


_________ day of __________ (month) 20_____ between ____________________________
___________________________________________________(hereafter called the “Employer”)
of the one part and __________________________________________________ (hereafter
called the “Contractor”) of the other part.

WHEREAS the Employer is desirous that certain Works, viz _______________ should be
executed by the Contractor and has accepted a Bid by the Contractor for the execution and
completion of such Works and the remedying of any defects therein.

NOW this Agreement witnessed 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.

2. The following documents after incorporating addenda, if any, except those parts relating to
Instructions to Bidders shall be deemed to form and be read and construed as part of this
Agreement:
a) Letter of Acceptance
b) The Completed form of Bid
c) Contract Data
d) Conditions of Contract
e) The Completed Schedules to Bid excluding the Schedule of Prices
f) The Specifications
g) The Drawings, if any
h) The Schedule of Prices
i) any other Documents forming part of the Contract.

3. 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 defects therein in conformity and in all respects with the provisions of the
Contract.

4. The Employer hereby covenants to pay the Contractor, in consideration of the execution and
completion of the Works as per provisions of the Contract, 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.

PAKISTAN ENGINEERING COUNCIL


Standard Forms 67

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the
day, month and year first before written in accordance with their respective laws.

Signature of the Contactor Signature of Employer

(Seal) (Seal)

Signed, Sealed and Delivered in the presence of:

Witness Witness

(Name, Title and Address) (Name, Title and Address)

PAKISTAN ENGINEERING COUNCIL


68 Standard Forms

FORM OF BANK GUARANTEE FOR ADVANCE PAYMENT

Guarantee No._________________________________________ Date _________________

WHEREAS _____________________________________ (hereinafter called the 'Employer')

has entered into a Contract for __________________________________________________


(Particulars of Contract)
with _____________________________________ (hereinafter called the "Contractor').

AND WHEREAS, the Employer has agreed to advance to the Contractor, at the Contractor's
request, an amount of Rupees _________________________ (Rs _________ ) which amount
shall be advanced to the Contractor as per provisions of the Contract.

AND WHEREAS the Employer has asked the Contractor to furnish Guarantee to secure the
advance payment for the performance of his obligations under the said Contract.

AND WHEREAS, ___________________________________________________________


(Scheduled Bank in Pakistan acceptable to the Employer)
(hereinafter called the “Guarantor”) at the request of the Contractor and in consideration of
the Employer agreeing to make the above advance to the Contractor, has agreed to furnish the
said Guarantee.

NOW, THEREFORE, the Guarantor hereby guarantees that the Contractor shall use the
advance for the purpose of above mentioned Contract and if he fails and commits default in
fulfilment of any of his obligations for which the advance payment is made, the Guarantor
shall be liable to the Employer for payment not exceeding the aforementioned amount.

Notice in writing of any default, of which the Employer shall be the sole and final judge, on
the part of the Contractor, shall be given by the Employer to the Guarantor, and on such first
written demand, payment shall be made by the Guarantor of all sums then due under this
Guarantee without any reference to the Contractor and without any objection.

This Guarantee shall come into force as soon as the advance payment has been credited to the
account of the Contractor.

This Guarantee shall expire not later than __________________ by which date we must have
received any claims by registered letter, telegram, telex or telefax.

This Guarantee shall remain valid up to the aforesaid date and shall be null and void after the
aforesaid date or earlier if the advance made to the Contractor is fully adjusted against
payments from Interim Payment Certificates of the Contractor provided that the Guarantor
agrees that the aforesaid period of validity shall be deemed to be extended if on the above
mentioned date the advance payment is not fully adjusted.

PAKISTAN ENGINEERING COUNCIL


Standard Forms 69

It is understood that you will return this Guarantee to us on expiry or after settlement of the total
amount to be claimed hereunder.

Guarantor (Scheduled Bank)

WITNESS:          Signature

1.          Name
         Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)

2. ____ _______
________________________
Name, Title & Address

PAKISTAN ENGINEERING COUNCIL


70 Standard Forms

LIST OF PEC BIDDING/CONTRACT DOCUMENTS

Sr.
Documents
Nr.

1. Standard Form of Bidding Documents (Civil Works)

2. Standard Form of Bidding Documents for Procurement of Works (E&M)

3 Standard Form of Bidding Documents for Procurement of Works (For Small


Contracts)
4. Standard Form of Contract for Engineering Consultancy Services (For Large
Projects) – Time Based Assignments
5. Standard Form of Contract for Engineering Consultancy Services (For Large
Projects) – Lump Sum Assignments
6. Standard Form of Contract For Engineering Consultancy Services (For Smaller
Projects)
7. Standard Procedure for Pre-qualifications of Constructors

8. Standard Procedure for Evaluation of Bids for Procurement of Works

9. Standard Procedure for Pre-qualifications of Consultants

10. Standard Procedure for Evaluation of Proposals for Procurement of


Engineering Services
11. Standard Procedure and Formula for Price Adjustment

12. Rules of Conciliation and Arbitration

13. Standard Form of Bidding Documents for Procurement of Works on BOT Basis

14. Standard Form of Bidding Documents for Operation and Maintenance Contracts

15. Standard Form of Joint Venture/Consortium Agreements and Memorandum of  


Understandings
16. Standard Form of Bidding Documents for Procurement of Works on Design and
Build Basis
17. Standard Form of Bidding Documents for Procurement of Civil Works (SSTE)

18. Standard Form of Bidding Documents for EPC/Turnkey Contracts

19. Standard Form of Bidding Documents for procurement of Goods

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Standard Forms 71

PAKISTAN ENGINEERING COUNCIL

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