Conditions of contreact table of contents

Conditions of contreact table of contents The Contractor shall be responsible for the professional and technical competence of its employees and will select, for work under this Contract, reliable individuals who will perform effectively in the implementation of this Contract, respect the local customs, and conform to a high standard of moral and ethical conduct.

Table of Contents 1

Conditions of Contract Table of Contents

Preface

Sample Format for Invitation For Bids

Section I Instruction to Bidders (ITB)

A.GENERAL 7

B BIDDING DOCUMENTS 10

C.PREPARATION OF BIDS 11

D.SUBMISSION OF BIDS 13

E.BID OPENING AND EVALUATION 14

F.AWARD OF CONTRACT 17

Section II Bid Data Sheet (BDS)

GENERAL

BIDDING DOCUMENTS

PREPARATION OF BIDS

Section III Form of Contract

AGREEMENT (OFFER,ACCEPTANCE,APPENDIX)

GENERAL CONDITIONS

Section IV Particular Conditions

Section V Notes for Guidance

INSTRUCTIONS TO BIDDERS AND BID DATA SHEET

OFFER AND ACCEPTANCE

CONDITIONS OF CONTRACT AND APPENDIX

Preface 2

PREFACE

This trial edition of Sample Bidding Documents for Simple Works (SABD-SW) has been

prepared by the World Bank for use by its borrowers It is intended to serve as a model for the procurement of works of a simple nature and complexity that are contracted under National Competitive Bidding procedures Use of this SABD-SW is not mandatory, but the procedures and practices presented have been developed through broad experience, and represent the state of the art in the contracting of simple works Local customs and regulations play a large part in the procurement of simple works and the documents should

be adapted as necessary to the requirements of the specific works to be procured More complex works or works to be contracted under ICB procedures should be procured using the Bank’s “Standard Bidding Documents, Procurement of Works” or the “Standard Bidding Documents, Smaller Contracts”

These SABD-SW are intended to be used where the proposed works are of simple nature, small value (say less than US$1.0 million), short contract duration (less than a year), and where the magnitude of the potential risks involved is small for both the Employer and the Contractor

The General Conditions of Contract of the SABD-SW are based on the first edition, 1999 of the International Federation of Consulting Engineers’ (FIDIC) “Short Form of Contract”, and the balance of the document on the Bank’s experience This approach has introduced a contrast in the style between Section III, where the Short Form of Contract has been fully integrated, and the remainder of the document which is based on existing Bank documentation

A particular feature of the SABD-SW is the single form of Agreement containing Offer and Acceptance, which, together with the documents listed in the accompanying Appendix, constitute the Contract

Details to be entered by the Employer prior to the release of the bidding documents for a particular project are limited to the Bid Data Sheet (BDS), the proposed Agreement, and the Particular Conditions Details not entered by the Employer are the responsibility of the Bidder In addition, the Employer provides the Specification, Drawings, and Bill of Quantities or Schedule of Payment(when necessary)

Whoever prepares the bidding documents should be thoroughly familiar with the Instructions

to Bidders and Conditions of Contract included in the SABD-SW, as well as with the law applicable to the contract and any specific requirements of the specific contract Where the user has little experience in writing bidding documents or where complicated circumstances apply, expert advice should be sought

In drafting these SABD-SW an effort was made to:

• keep in mind that the documentation needs to be tailored to the specific characteristics of the market place where the Contractors and Employers are established;

• include provisions which were considered applicable to most cases;

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• keep the need for cross-referencing between clauses to a minimum;

• avoid repetition of requirements

Except for the agreement, no standard forms such as forms for qualification of bidders, have been included as many Employers have standard forms containing their own requirements Furthermore, sample forms are included in the Bank’s “Standard Bidding Documents, Procurement of Works” that can be adapted as needed

Since the intention is that these SABD-SW should only be used for contracts of short duration and of low risk, there is neither a provision for price adjustment nor for foreign currency payments Furthermore, there is no reference to an impartial “Engineer” or “Project Manager” but the Employer must appoint an authorized person to act for him, and if he wishes to engage a consultant to administer the contract, he may appoint a representative with specific delegated duties and authority

The use of bid and performance securities is optional in these SABD-SW A decision to require such securities should be part of the overall approach to risk management and should take into account available measures to reduce the risk of contractor’s default

The brevity and simplicity of the SABD-SW is, however, more apparent than real because its implementation depends to a large extent on the manner in which the applicable law will be applied in implementing the contract

This edition of SABD-SW has been identified as a “Trial Edition” The Bank intends to publish a “First Edition” during the first part of year 2001 and welcomes comments on this Trial Edition Any feedback and comments should be directed to the Procurement Policy and Services Group of the World Bank, Pdocuments@worldbank.org

The charts on the next two pages illustrate the sequence of events during contract award and execution

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Signed agreement is received

by Contractor (contract comes into effect)

Period of validity of bids

42 to 56 days

Bid submission (bidders sign the offer part of the agreement)

35 to 42 days1

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Deleted: to

Simple Works

Principal Events During Execution of the Contract

Final payment (11.6)

Payment of ½ Retention (11.5)

Submission of final account (11.6)

End of defects liability period

Payment of ½ Retention (11.4) Completion

taking over date (8)

Commencement

date (1.1.7)

Agreement

effected

14 days Time for completion (1.1.9) Defects liability period (9.1) 42 days 28 days

Submission of Work Program

(Up to 12 months) 12 months (App 9.1, 11.5)

Sample Form for Invitation for Bids 6

SAMPLE FORMAT FOR INVITATION FOR BIDS

Date: [of issue of invitation]

Contract Identification No: _ World Bank Loan/Credit No: _

World Bank Loan/Credit Name

1 The [name of Borrower] has received1 a loan from the World

Bank towards the cost of [name of Project] and intends to apply part of the funds to cover eligible payments under the Contract for [name and identification number of Contract] Bidding is open to all bidders from eligible source countries as defined in the Guidelines: Procurement under IBRD Loans and IDA Credits

2 The [name of Employer and statement of its relationship to the Borrower, if different from the Borrower] invites sealed bids from eligible bidders for the construction of [brief description of the Works 2 ] The time for completion is [No of weeks/days or dates ].

3 Bidding documents (and additional copies) may be purchased at

[name and address of office] for a nonrefundable fee of _ [amount in local currency],3 for each set Interested bidders may obtain further information at the same address.4

4 Bids shall be delivered to [name and full address of receiving office] on or before _ [time and date of bid closing] and shall

be valid for a period of _ [days] after bid submission Late

bids will be rejected Bids will be opened in the presence of the bidder’s representatives

who choose to attend at [time and date of bid opening] at [full address of office for bid opening] 5

1

Substitute “has applied for” , if appropriate

2 A brief description of the works should be provided, including quantities, location of project, and other information necessary to enable potential bidders to decide whether or not to respond to the invitation Bidding documents may require bidders to have specialized experience or capabilities; such requirements should also be included in this paragraph

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Section I Instructions to Bidders 7

Section I Instructions to Bidders

(a) Scope of Bid 1.1 The Employer,6as named in the Agreement form, invites bids

for the construction of Works as summarized in the Bid Data

Sheet (BDS) The name and identification number of the

Contract is provided in the BDS

1.2 The successful bidder will be expected to complete the Works within the Time for Completion stated in the Appendix section

of the Agreement, hereinafter referred to as the Appendix The

Time for Completion shall be calculated from the Commencement Date

1.3 Throughout these Bidding Documents, the term “writing”means any hand-written, type-written, or printedcommunication, including telex, cable and facsimiletransmission, and “day” means calendar day Singular alsomeans plural The word “bids” is synonymous to “tender”andthe words “bidding documents” synonymous to “tenderdocuments”

2 Source of Funds 2.1 The Employer intends to apply a part of the proceeds of a loan

from the World Bank to eligible payments under the Contract

for which these Bidding Documents are issued

2.2 Payments made by the Employer will be reimbursed by the

Bank only at the request of the Borrower, in accordance withthe terms and conditions of the Loan Agreement

3 Fraud and Corruption

3.1 The attention of the bidders is drawn to the Country

regulations on the prevention of fraud and corruption, and toSub-Clause 12.1.1 of the Particular Conditions (Section IV)which shall apply also to any bidder

4 Eligibility 4.1 Bidders shall be legally incorporated in a member country of

the World Bank, and shall provide materials, plant and servicesfrom such countries only Government-owned enterprises in

the Country may participate only if they are independent and

operate under commercial law

Section I Instructions to Bidders 8

5 Qualification of the Bidder

5.1 Bidders shall include the following information and documents with their bids unless otherwise stated in the BDS:

(a) General Information: copies of documents defining the constitution or legal status, place of registration, and principal place of business; written power of attorney of the signatory of the bid to commit the bidder;

(b) General Construction Experience Record: total annual turnover in the civil works construction business expressed as total of payment certificates for work performed in each of the last three years;

(c) Particular Construction Experience Record: experience on works of a similar nature and complexity over the last five years, and details of work under way or contractually committed; clients who may be contacted for further information on those contracts;

(d) Equipment Capabilities: major items of construction equipment proposed to carry out the Contract;

(e) Personnel Capabilities: qualifications and experience of key site management and technical personnel proposed for the Contract;

(f) Financial Capabilities: reports on the financial standing of the bidder, such as profit and loss statements and auditor’s reports for the past three years;

(g) Evidence of adequacy of cash flow for this Contract (access to line(s) of credit and/or availability of other financial resources);

(h) Authority to seek references from the bidder’s bankers; (i) Business Record: information regarding any litigation, current or during the last five years, in which the bidder is involved, the parties concerned, and disputed amount;

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5.2 After evaluation of all responsible bids, and prior to award of

the Contract, the successful bidder shall meet the following

qualifying criteria:

(a) average annual turnover of construction work in the lastthree years greater than the amount specified in the BDS; (b) experience in the construction of works of a nature and

complexity similar to the Works of no less than the

number of projects specified in the BDS, in the last fiveyears;

(c) availability of the essential equipment listed in the BDS

or alternative equipment proposed by the bidder andproposals for its timely acquisition (own, lease, hire,rental, loan, etc.);

(d) suitably key site management and technical personnel tofill the positions, qualifications and experiencerequirements specified in the BDS;

(e) a sound financial position for the past three years asconfirmed by audited balance sheets or other financial

statements acceptable to the Employer;

(f) liquid assets and/or credit facilities (net of othercontractual commitments and exclusive of any advance

payments which may be made under the Contract), for

not less than the amount specified in the BDS

A consistent history of litigation or arbitration awardsagainst the bidder or any partner of a joint venture mayresult in disqualification

6 One Bid per Bidder

6.1 A firm shall submit only one bid either individually or as apartner of a joint venture A firm which submits or participates

as a bidder in more than one bid will cause all the proposalswith the firm’s participation to be disqualified A firm mayparticipate in more than one bid only as a subcontractor

7 Cost of Bidding 7.1 The bidder shall bear all costs associated with the preparation

and submission of its bid, and the Employer will in no case be

responsible or liable for those costs, regardless of the conduct oroutcome of the bidding process

8 Site Visit 8.1 The bidder, at the bidder’s own responsibility and risk, is

encouraged to visit and examine the Site , and its surroundings

where the Works are to be executed and obtain all information

that may be necessary for preparing the bid and entering into a

contract for construction of the Works

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Deleted: and its surroundings

Section I Instructions to Bidders 10

9 Content of Bidding Documents

9.1 The Bidding Documents are those stated below and should be read in conjunction with any Addenda issued in accordance with Clause 11:

(a) Instruction to Bidders (Section I) (b) Bid Data Sheet (Section II) (c) All the documents listed in the Appendix (Section III) (d) Any other document listed in the BDS as forming part of the Bidding Documents

9.2 The “Invitation for Bids” is included as a reference only In case of discrepancies between the Invitation for Bids and the Bidding Documents listed in the preceding sub-clause, said documents will take precedence

10 Clarification of Bidding

Documents

10.1 A prospective bidder requiring any clarification of the Bidding

Documents shall contact the Employer in writing at the Employer’s address indicated in the BDS The Employer will

respond in writing to any request for clarification received no later than seven (7) calendar days prior to the deadline for submission of bids Copies of the Employer’s response shall be forwarded to all purchasers of the Bidding Documents, including a description of the inquiry, but without identifying its source

11 Amendment of Bidding Documents

11.1 At any time prior to the deadline for submission of bids, the

Employer may amend the Bidding Documents by issuing

Addenda

11.2 Any Addendum thus issued shall be part of the Bidding Documents and shall be communicated in writing to all purchasers of the Bidding Documents

11.3 To give prospective bidders reasonable time in which to take the amendment into account in preparing their bids, the

Employer may extend the deadline for submission of bids

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C P REPARATION OF B IDS

12 Language of Bid

12.1 The bid as well as all correspondence and documents relating to

the bid exchanged by the bidder and the Employer, shall be

written in the language specified in the Appendix

13 Documents Comprising the Bid

13.1 The bid submitted by the bidder shall comprise the original andone copy of the following:

(a) Duly filled-in Offer and Appendix sections of theAgreement;

(b) Priced Bill of Quantities or priced Schedule of Rates; (c) Alternative offers, at the bidder’s option when invited; (d) Written power of attorney authorizing the signatory of thebid to commit the bidder;

(e) Information on qualification of the bidder;

(f) Any additional information required to be completed andsubmitted by bidders as specified in the BDS

14 Bid Prices 14.1 The Contract shall be for the whole Works, summarized in the

BDS, and based on the priced Bill of Quantities or pricedSchedule of Activities submitted by the bidder

14.2 The attention of the bidder is drawn to Sub-Clauses 11.1.1 and11.7 of the Particular Conditions (Section IV) on taxation andcurrency respectively

14.3 The Contract does not include a price adjustment clause and,

rates and amounts quoted by the bidder shall be firm for the

duration of the Contract

15 Currency of Bid 15.1 Prices shall be quoted by the bidder entirely in the currency of

the Country

16 Period of Validity of Bids

16.1 Bids shall remain valid for the period stipulated in the BDSafter the date of bid submission specified in Sub-Clause 20.1

A bid valid for a shorter period shall be rejected by the

Employer as nonresponsive

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Section I Instructions to Bidders 12

16.2 In exceptional circumstances, prior to expiry of the period of

validity of bids, the Employer may request that the bidders

extend the period of validity for a specified additional period The request and the responses thereto shall be made in writing

A bidder may refuse the request A bidder agreeing to the request will not be required or permitted to modify its bid

indicated in the Drawings and Specification Alternatives will

not be considered, unless specifically allowed in the BDS

18 Format and

Signing of Bid

18.1 The bidder shall prepare one original of the documents comprising the bid as described in Clause 13 and clearly marked “ORIGINAL” In addition, the bidder shall submit one copy of the bid, clearly marked as “COPY” In the event of discrepancy between them, the original shall prevail

18.2 The original and the copy of the bid shall be typed or written in indelible ink and shall be signed by a person or persons duly authorized to sign on behalf of the bidder All pages of the bid shall be numbered sequentially and initialed by the person or persons signing the bid

18.3 Bids shall be submitted strictly in accordance with the Bidding Documents Any amendments or qualifications made by the bidder, except those to comply with instructions issued by the

Employer, may result in rejection of the bid

D S UBMISSION OF B IDS

19 Sealing and Marking of Bids

19.1 The bidder shall seal the original and the copy of the bid in twoinner envelopes and one outer envelope, duly marking the innerenvelopes as “ORIGINAL” and “COPY”

19.2 The inner and outer envelopes shall:

(a) be addressed to the Employer at the address provided in

the BDS;

(b) bear the name and identification number of the Contract

in accordance with Sub-Clause 1.1; and (c) provide a warning not to open before the specified timeand date for bid opening as defined in the Sub-Clause23.1

19.3 In addition to the identification required above, the innerenvelopes shall indicate the name and address of the bidder toenable the bid to be returned unopened in case it is declaredlate

19.4 If the outer envelope is not sealed and marked as above, the

Employer will assume no responsibility for the misplacement

or premature opening of the bid

20 Deadline for Submission of Bids

20.1 Bids shall be delivered to the Employer at the address

specified above no later than the time and date specified in theBDS

20.2 The Employer may extend the deadline for submission of bids

by issuing an Addendum, in which case all rights, and

obligations of the Employer and the bidders previously subject

to the original deadline will then be subject to the new deadline

21 Late Bids 21.1 Any bid received by the Employer after the deadline for

submission of bids will be returned unopened to the bidder

22 Modification and Withdrawal

‘WITHDRAWAL’, as appropriate

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Section I Instructions to Bidders 14

22.3 No bid may be modified after the deadline for submission of bids

22.4 Bidders may only offer discounts to, or otherwise modify the prices of their bids by submitting bid modifications in accordance with this clause, or by including such modifications in the original bid submission

E B ID O PENING AND E VALUATION

23 Bid Opening 23.1 The Employer will open the bids, including modifications, in

the presence of the bidders’ representatives who choose to attend at the time and in the place specified in the BDS

23.2 Notices of “WITHDRAWAL” shall be opened and read out first Bids for which an acceptable notice of withdrawal has been submitted shall be returned unopened to the bidders

23.3 The bidders’ names, the bid prices, the total amount of each bid and of any alternative bid (if alternatives have been requested or permitted), any discounts, bid modifications and

withdrawals, and such other details as the Employer may consider appropriate, will be announced by the Employer at

the opening

23.4 The Employer will prepare minutes of the bid opening,

including the information disclosed to those present

23.5 Bids not opened and read out at bid opening shall not be further considered for evaluation, irrespective of the circumstances

24 Process to Be Confidential

24.1 Information relating to the examination, clarification, evaluation, and comparison of bids and recommendations for the award of a contract shall not be disclosed to bidders or any other persons not officially concerned with such process until the award to the successful bidder has been announced

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25 Clarification of

Bids

25.1 To assist in the examination, evaluation, and comparison of

bids, the Employer may, at the Employer’s discretion, ask any

bidder for clarification of the bidder’s bid, including breakdowns of prices The request for clarification and the response shall be in writing or by cable, telex, or facsimile, but

no change in the price or substance of the bid shall be sought, offered, or permitted except as required to confirm the

correction of arithmetic errors discovered by the Employer in

the evaluation of the bids in accordance with Clause 28

26 Contacting the

Employer

26.1 No bidder shall contact the Employer on any matter relating

to its bid from the time of the bidding opening to the time the

Contract is awarded If the bidder wishes to bring additional

information to the notice of the Employer, it should do so in

writing

26.2 Any effort by the bidder to influence the Employer in the

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

27.1 Prior to the detailed evaluation of bids, the Employer will

determine whether each bid (a) meets the eligibility criteria; (b) has been properly signed; and (c) is substantially responsive to the requirements of the Bidding Documents

27.2 A substantially responsive bid is one which conforms to all the terms, conditions, and specifications of the Bidding Documents, without material deviation or reservation A material deviation or reservation is one (a) which affects in any substantial way the scope, quality, or performance of the

Works; (b) which limits in any substantial way, inconsistent

with the bidding documents, the Employer’s rights or the

bidder’s obligations under the Contract; or (c) whose

rectification would affect unfairly the competitive position of other bidders presenting substantially responsive bids

27.3 If a bid is not substantially responsive, it will be rejected by

the Employer, and may not subsequently be made responsive

by correction or withdrawal of the nonconforming deviation or reservation

Section I Instructions to Bidders 16

28 Correction of Errors

28.1 Bids determined to be substantially responsive will be checked

by the Employer for any arithmetic errors Errors will be corrected by the Employer as follows:

(a) where there is a discrepancy between the amounts in figures and in words, the amount in words will govern; and

(b) if a Bill of Quantities is used and there is a discrepancy between the unit rate and the line item total resulting from multiplying the unit rate by the quantity, the unit rate as quoted will govern, unless in the opinion of the

Employer there is an obviously gross misplacement of

the decimal point in the unit rate, in which case the line item total as quoted will govern, and the unit rate will be corrected

(c) if there is an error in a total corresponding to the addition

or subtraction of subtotals, the subtotals shall prevail and the totals shall be corrected

28.2 The amount stated in the bid will be adjusted by the Employer

in accordance with the above procedure for the correction of errors and, with the concurrence of the bidder, shall be considered as binding upon the bidder If the bidder does not accept the corrected amount, its bid will be rejected

29 Evaluation and Comparison of Bids

29.1 The Employer will evaluate and compare only the bids

determined to be substantially responsive

29.2 In evaluating the bids, the Employer will determine for each

bid the Evaluated Bid Price by adjusting the Bid Price as follows:

(a) making any correction for errors;

(b) excluding the provision, if any, for contingencies, but including daywork, if any, where priced competitively; (c) making an appropriate adjustment for any other acceptable variations, deviations, or alternative offers submitted in accordance with Clause 17; and

(d) making appropriate adjustments to reflect discounts or other price modifications offered in accordance with Sub-Clause 22.4

Formatted: Bullets and

Numbering

29.3 The Employer reserves the right to accept or reject any

variation, deviation, or alternative offer Variations, deviations, and alternative offers and other factors which are in excess of the requirements of the Bidding Documents or

otherwise result in unsolicited benefits for the Employer will

not be taken into account in bid evaluation

F A WARD OF C ONTRACT

30 Award

Criteria

30.1 Subject to Clause 31 the Employer will award the Contract

to the bidder whose bid has been determined to be substantially responsive to the Bidding Documents and who has offered the lowest Evaluated Bid Price, provided that such bidder has been determined to be (a) eligible in accordance with the provisions of Clause 4, and (b) qualified in accordance with the provisions of Sub-Clause 5.2

31 Employer’s

Right to Accept

any Bid and to

Reject any or all

Bids

31.1 The Employer reserves the right to accept or reject any bid,

and to cancel the bidding process and reject all bids, at any

time prior to the award of Contract, without thereby incurring

any liability to the affected bidder

32 Award and

Signing of

Agreement

32.1 Having decided which bid to accept, the Employer will sign

the original and the copy of the Acceptance section of the Agreement and will return a complete copy of the Agreement

to the bidder whose bid has been accepted The Contract will

come into effect upon receipt by the bidder of his copy

33 Debriefing 33.1 The Employer will promptly notify the name of the winning

bidder to each unsuccessful bidder

33.2 If after notification of award, a bidder wishes to ascertain the grounds on which its bid was not selected, it should address its

request in writing to the Employer The Employer will

promptly respond in writing to the unsuccessful bidder

34 Securities 34.1 If stated in the BDS, the bidder shall furnish a bid security as

part of its bid

34.2 The attention of the bidders is drawn to Sub-Clause 4.4 of the General Conditions in regard to the requirements, if any, for

performance security under the Contract

34.3 The attention of the bidders is also drawn to Sub-Clauses 11.3,

11.4, 11.5 in regard to retention under the Contract

Section I Instructions to Bidders 18

Section II Bid Data Sheet (BDS) 19

Section II Bid Data Sheet

1.1, 14.1 Summary of Works _

Name of Contract _Identification number of the

Contract

_

5.1 Qualification of the bidders;

Information and documents, if different from those listed in ITB clause 5.1

_

5.2 Qualifying criteria for bidders:

(a) average annual turnover in

construction work during the last three years

_

(b) number of projects of nature

and complexity similar to the Works, executed within the last five years

_

(c) essential equipment to execute

the Works

_ (d) positions and experience of key

Site management and technical personnel

Position _

_

_

Qualification _

_

_

Experience _ (f) minimum required cash flow

Section II Bid Data Sheet (BDS) 20

B B IDDING D OCUMENTS

9.1(d) Additional documents forming part

of the Bidding Documents

_10.1 Employer’s address for the purpose

of clarification of Bidding Documents

_

Date: _

E B ID O PENING AND E VALUATION

23.1 Venue, time, and date of bid

F A WARD OF C ONTRACT

34.1 Bid Security if any:

Amount Form

Section II Bid Data Sheet (BDS) 22

Section III FIDIC’s Short Form of Contract

G ENERAL C ONDITIONS

The Agreement, including Offer, Acceptance and Appendix, and the General Conditions, shall be those forming part of the “Short Form of Contract”, first edition, 1999, prepared by the Féderation Internationale des Ingénieurs-Conseils (FIDIC) The General Conditions are subject to the variations and additions set out in Section IV hereof entitled “Particular Conditions”

The following text shall be added if the bidding documents, as issued, do not include a copy:

“Copies of the FIDIC Conditions of Contract can be obtained from:

FIDIC Secretariat P.O Box 86 CH-Lausanne 12 Switzerland Facsimile: 41 21 653 5432 Telephone: 41 21 654 4411 E-mail: fidic@pobox.com Website: http:\\www.fidic.org

Deleted: FIDIC's Short

FEDERATION INTERNATIONALE DES INGENIEURS-CONSEILS

INTERNATIONAL FEDERATION OF CONSULTING ENGINEERS

INTERNATIONALE VEREINIGUNG BERATENDER INGENIEURE

FEDERACION INTERNACIONAL DE INGENIEROS CONSOLTORES

JAN 2000 – FOR PUBLICATION ONLY

AGREEMENT

GENERAL COND

SHORT FORM of Contract RULES FOR ADJ

First Edition 1999 ISBN 2-88432-024-5

NOTES FOR GU

JAN 2000 – FOR PUBLICATION ONLY S

ACKNOWLEDGEMENTS

The Fédération Internationale des Ingénieurs-Conseils (FIDIC) extends sp following members of its Task Group: Philip Jenkinson (Task Group Leade AEJ (Tony) Sanders, Mouchel, UK; and Edward Corbett, Corbett & Co other active Task Groups was provided by Peter L Booen, GIBB Ltd, UK The preparation was carried out under the general direction of the FIDIC C comprising John B Bowcock (Chairman), Consulting Engineer, UK; M Hawkins, SwedPower, Sweden; Axel-Volkmar Jaeger, Schmidt Reuter Par

KB (Tony) Norris (Special Adviser), Consulting Engineer, UK

Drafts were commented on by the following persons and organi Ahmad, NESPAK, Pakistan; Peter Batty, Post Buckley Internation Bunni, Consulting Engineer, Ireland; Kathryn Josephine T dela C Industry Authority of the Philippines; Michael Dudley, UNOPS; Hans Asea Brown Boveri Ltd, Switzerland; Mark Griffiths, Griffiths & Armou Hawker, Consulting Engineer and Barrister, UK; Adam K Heine, Con Poland; HS Kwong, Secretary for Works, Hong Kong; Jan Cees Ove Wijers, DHV Beheer BV, The Netherlands; Marek Rdultowski, Cosm Poland; J G Rees, Binnie Black & Veatch, UK; Asian Development Bank for Reconstruction and Development; Inter-American De International Association of Dredging Companies; Inter-Pacific ORGAnisme de Liaison Industries Métalliques Européennes (“ORGA World Bank Acknowledgement of reviewers does not mean that organizations approve the wording of all clauses

FIDIC wishes to record its appreciation of the time and effort devoted The ultimate decision on the form and content of the document rests

FOREWORD

These Conditions of Contract have been prepared by the Fédération Internation Conseils (FIDIC) and are recommended for engineering and building wo capital value However, depending on the type of work and the circumsta may be suitable for contracts of greater value They are considered most lik fairly simple or repetitive work or work of short duration without the nee contracts

The main aim has been to produce a straightforward flexible document which i commercial provisions and which may be used for all types of engineerin with a variety of administrative arrangements Under the usual arrangem contract, the Contractor constructs the Works in accordance with des Employer or by his representative (if any) However, this form may also be which include, or wholly comprise, contractor-designed civil, mechanical an

In addition, the Employer has a choice of valuation methods Furthermore, reference to an impartial Engineer, the Employer may appoint an indepen impartially, should he wish to do so

The form is recommended for general use, though modifications m some jurisdictions FIDIC considers the official and authentic text to the English language

The intention is that all necessary information should be provided the Agreement, the latter incorporating the tenderer's offer and its simple document The General Conditions are expected to cov contracts Nevertheless, users will be able to introduce Particular wish, to cater for special cases or circumstances The General C Particular Conditions will together comprise the Conditions govern obligations of the parties

To assist in the preparation of tender documents using these Co Guidance are included These Notes will not become one of the d the Contract Finally, applicable Rules for Adjudication are also inclu

The attention of users is drawn to the FIDIC publication "Tendering Procedu systematic approach to the selection of tenderers and the obtaining and evaluation of tenders.

Short Form of Contract JAN 2000 – FOR PUBLICATION ONLY a

CONTENTS

Agreement

Offer Acceptance Appendix

General Conditions

1 G E N E R A L P R O V I S I O N S

1.1 Definitions

The Contract Persons Dates, Times and Periods Money and Payments Other Definitions

1.4 Law 1.5 Communications

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4.1 General Obligations 4.2 Contractor's Representative

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5 DESIGN BY CONTRACTOR

5.1 Contractor's Design 5.2 Responsibility for Design

6 EMPLOYER’S LIABILITIES

6.1 Employer's Liabilities

7 TIME FOR COMPLETION

10 VARIATIONS AND CLAIMS

10.1 Right to Vary 10.2 Valuation of Variations 10.3 Early Warning 10.4 Right to Claim 10.5 Variation and Claim Procedure

11 CONTRACT PRICE AND PAYMENT

11.1 Valuation of the Works 11.2 Monthly Statements 11.3 Interim Payments 11.4 Payment of First Half of Retention 11.5 Payment of Second Half of Retention 11.6 Final Payment

11.7 Currency 11.8 Delayed Payment

12 DEFAULT

12.1 Default by Contractor 12.2 Default by Employer 12.3 Insolvency

12.4 Payment upon Termination

13 RISK AND RESPONSIBILITY .

13.1 Contractor's Care of the Works 13.2 Force Majeur

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14 INSURANCE 9

14.1 Extent of Cover 14.2 Arrangements 14.3 Failure to Insure

15.1 Adjudication 15.2 Notice of Dissatisfaction 15.3 Arbitration

INDEX

Particular Conditions

Rules for Adjudication

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or such other sum as may be ascertained under the Contract

This offer, of which the Contractor has submitted two signed originals, may be accepted Employer by signing and returning one original of this document to the Contractor befor The Contractor understands that the Employer is not bound to accept the lowest or any for the Works

Capacity:

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APPENDIX

This Appendix forms part of the Agreement

[ Note: with the exception of the items for which the Employer's requirem been inserted, the Contractor shall complete the following information be submitting his offer ]

Documents forming the Contract listed in the order of priority 1.1.1

Document (delete if not

applicable)

Document Ide

(a) The Agreement (b) Particular Conditions (c) General Conditions (d) The Specification

design (g) The bill of quantities (h) (i) Time for Completion 1.1.9 Law of the Contract 1.4 Law of the Co

Language 1.5 Provision of Site 2.1 Authorised person 3.1 Name and address of Employer's

representative (if known)

3.2

Performance security (if any):

Amount 4.4 Form 4.4

* Employer to amend as appropriate

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Requirements for Contractor's design (if any)

7.2

Amount payable due to failure

to complete

7.4

to a maximum of 10%*

in the Agreement Period for notifying defects

9.1 & 11.5 365 days* calculated fr

stated in the notice und Clause 8.2

Variation procedure Daywork rates

10.2

Valuation of the Works*

Lump sum Price

11.1 Lump sum price with

schedules of rates

11.1

Lump sum price with bill of quantities

11.1

Remeasurement with tender bill of quantities

11.1

Cost reimbursable

11.1

Percentage of value of Materials and Plant

11.2

Materials Plant

* Employer to amend as appropriate

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Percentage of retention 11.3 Currency of payment 11.7

Rate of interest 11.8 Insurances 14.1

Type of cover* Amount of cover* Exclusions*

The Works, Materials, Plant and fees

The sum stated in the Agreement plus 15%

Contractor’s Equipment

Full replacement cost Third Party injury to

persons and damage

to property Workers Other cover*

Arbitration Rules 15.3 UNCITRAL Arbitrati

Appointing authority 15.3 President of FIDIC o

Section III FIDIC’s Short Form of Contract 5

The Contract 1.1.1 "Contract" means the Agreement and the other documents

the Appendix

1.1.2 "Specification" means the document as listed in the A

including Employer's requirements in respect of design to be out by the Contractor, if any, and any Variation to such docum 1.1.3 "Drawings" means the Employer's drawings of the Works

in the Appendix, and any Variation to such drawings

Persons 1.1.4 "Employer" means the person named in the Agreement

legal successors in title to this person, but not (except consent of the Contractor) any assignee

1.1.5 "Contractor" means the person named in the Agreement

legal successors in title to this person, but not (except 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 the

Agreement comes into effect or any other date agreed betw Parties

1.1.8 "day" means a calendar day

1.1.9 "Time for Completion" means the time for completing the W

stated in the Appendix (or as extended under Sub-Clau calculated from the Commencement Date

Money and Payments 1.1.10 "Cost" means all expenditure properly incurred (or to be in

by the Contractor, whether on or off the Site, including ov and similar charges, but does not include profit

Other Definitions 1.1.11 "Contractor's Equipment" means all apparatus, ma

vehicles, facilities and other things required for the executio Works but does not include Materials or Plant

1.1.12 "Country" means the country in which the Site is located

1.1.13 "Employer's Liabilities" means those matters listed in Sub

6.1

Section III FIDIC’s Short Form of Contract 6

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1.1.14 "Force Majeure" means an exceptional event or circumsta

which is beyond a Party's control; which such Party could reasonably have provided against before entering into the Cont which, having arisen, such Party could not reasonably have avo

or overcome; and, which is not substantially attributable to the o Party

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

form or forming part of the permanent work

1.1.16 "Plant" means the machinery and apparatus intended to form

forming part of the permanent work

1.1.17 "Site" means the places provided by the Employer where the W

are to be executed, and any other places specified in the Contrac forming part of the Site

1.1.18 "Variation" means a change to the Specification and /or Drawing

any) which is instructed by the Employer under Sub-Clause 10.1 1.1.19 "Works" means all the work and design (if any) to be performe

the Contractor including temporary work and any Variation

1.2

Interpretation Words importing persons or parties shall include firms and organisati

Words importing singular or one gender shall include plural or the other ge where the context requires

1.3

Priority of Documents The documents forming the Contract are to be taken as mutually explana

of one another If an ambiguity or discrepancy is found in the documents Employer shall issue any necessary instructions to the Contractor, and priority of the documents shall be in accordance with the order as listed in Appendix

1.4

Law The law of the Contract is stated in the Appendix

1.5

Communications Wherever provision is made for the giving or issue of any notice, instructio

other communication by any person, unless otherwise specified s communication shall be written in the language stated in the Appendix shall not be unreasonably withheld or delayed

1.6

Statutory Obligations The Contractor shall comply with the laws of the countries where activities

performed The Contractor shall give all notices and pay all fees and o charges in respect of the Works

The Employer

Deleted: Section II Bid

Data Sheet (BDS)