STANDARD FORM OF BIDDING DOCUMENTS FOR PROCUREMENT OF WORKS (For Small Contracts)
STANDARD FORM OF BIDDING DOCUMENTS FOR PROCUREMENT OF WORKS (For Small Contracts)
STANDARD FORM OF BIDDING DOCUMENTS FOR PROCUREMENT OF WORKS (For Small Contracts)
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):
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
TABLE OF CONTENTS
PREFACE......................................................................................................................vi
INSTRUCTIONS TO BIDDERS...................................................................................5
BIDDING DATA..........................................................................................................19
CONTRACT DATA.....................................................................................................55
STANDARD FORMS...................................................................................................61
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.
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.
INSTRUCTIONS TO
USERS OF THIS DOCUMENT
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
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.
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
I. Specifications
To be prepared and incorporated by the Engineer/Employer
J. Drawings
To be prepared and incorporated by the Engineer/Employer, if required.
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.”
INSTRUCTIONS TO BIDDERS
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
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
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.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
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
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
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.
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).
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
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
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:
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.
BIDDING DATA
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.)
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.]
[Fill in lump sum amount or in %age of bid amount ranging from 1 to 3%]
LETTER OF BID
AND
SCHEDULES TO BID
LETTER OF BID
Bid Reference No. ________________________
(Name of Contract/Works)
To:
_______________________________
_______________________________
Gentleman,
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.
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____________________________________
Schedule -A to Bid
SCHEDULE OF PRICE
2. Schedule of Prices……………………………………….. 31
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.
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.
Schedule -A to Bid
SCHEDULE OF PRICE
Bill
Description Amount (Rs.)
No
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
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
Schedule -B to Bid
[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.]
Schedule -C to Bid
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.
Schedule -D to Bid
[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.]
Schedule -E to Bid
[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.]
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
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.
CONDITIONS OF CONTRACT
CONDITIONS OF CONTRACT
TABLE OF CONTENTS
3. Consultant/Engineer’s/Employer’s Representatives …. 45
5. Design by Contractor…………………………………. 46
6. Employer’s Risks…………………………………….. 46
8. Taking Over………………………………………….. 48
9. Remedying Defects………………………………….. 48
12. Default………………………………………………. 51
14. Insurance……………………………………………… 52
16 Integrity Pact…………………………………………. 54
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.
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.
1.1.7 “Commencement Date” means the date 14 days after signing of the
Contract Agreement.
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.
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.
Other Definitions
1.1.16 “Materials” means things of all kinds (other than Plant) to be supplied
and incorporated in the Works by the Contractor.
1.1.18 “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.
1.1.20 ‘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.
1.2 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
1.4 Law The law of the Contract is the relevant Law of Islamic Republic of
Pakistan.
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.
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.
3.3 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
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
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.
10.1 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
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.
11.1 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.
11.9 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
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,
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.
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.
15.1 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.
15.3 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.
15.5 Arbitration Any dispute between the Parties arising out of or in connection with
PAKISTAN ENGINEERING COUNCIL
54 Conditions of Contract
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.
CONTRACT DATA
CONTRACT DATA
[Note: Except where otherwise indicated, all Contract Data should be filled in by the Employer
prior to issuance of the Bidding Documents.]
Advance payment 11.9 10% of Contract Price less provisional sum stated
in LOA.
STANDARD FORMS
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
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.
1. Name
Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)
2. ____ _______
________________________
Name, Title & Address
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.
1. Name
Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)
2. ____ _______
________________________
Name, Title & Address
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.
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.
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.
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.
(Seal) (Seal)
Witness Witness
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.
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.
It is understood that you will return this Guarantee to us on expiry or after settlement of the total
amount to be claimed hereunder.
1. Name
Title
Corporate Secretary (Seal) Corporate Guarantor (Seal)
2. ____ _______
________________________
Name, Title & Address
Sr.
Documents
Nr.
13. Standard Form of Bidding Documents for Procurement of Works on BOT Basis
14. Standard Form of Bidding Documents for Operation and Maintenance Contracts