sstdsmallworksfinalversion

Ministry of Foreign Affairs Danida

Sample Standard Tender Document for Smaller Contracts for Works

September 2004

Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30

INTRODUCTION

1. Background

This Sample Standard Tender Document (SSTD) has been developed for use in tendering and award of smaller works Contracts with Danida as Contracting Authority in connection with the preparation and implementation of development activities.

The Danish Government decided in February 2003 that all procurement financed by Danida from 1 January 2004 (i.e. advertised from 1 January 2004 and onwards) should be carried out in accordance with the European Council Directives ("the Council Directives") for procurement of public services, public works, and public supply contracts where these Directives are applicable.

This implies in practical terms that award of most contracts for works, where Danida is the Contracting Authority (in the following called the Employer) and where the total contract sum is above a certain threshold (for the years 2004 and 2005 approx. 44 million DKK), shall be carried out following the Council Directives.

Larger contracts for construction are, therefore, defined as contracts with a total contract sum above the threshold.

Tendering and award of such contracts shall take place in accordance with the newly developed Practical Guide for Tendering and Award of Larger Contracts by Danida, (January 2004) and carried out by Danida headquarters assisted by the appointed Consultant.

Tendering and award of smaller works contracts (contracts where the total contract amount is below the threshold) may be carried out by the Recipient or another local entity, or by Danida, based on this SSTD for Smaller Works Contracts and the Practical Guide for Tendering and Award of Smaller Contracts by Danida (being developed).

2. Terminology and definitions

In this SSTD, the following terms shall have the meanings assigned to them:

"SSTD" means the Sample Standard Tender Document (Template for the Tender Dossier).

"Tender Dossier" means the invitation and documents issued to the Tenderers in connection with the tendering.

"Tender" or "Tender Document" means the document forming the Tender submitted by the Tenderer.

Other terms shall have the meanings assigned to them in the Invitation, the Instructions to Tenderers and the Contract Documents.

In this SSTD, the following principles have been adopted for the convenience of users:

Introduction


Square brackets "[ ]" enclosing text in normal font indicate optional and/or alternative wording. The "[ ]" must not appear in the Tender Dossier.

Square brackets and the italicised text within the "[ ]" are intended to assist the writers of, and must not appear in, the Tender Dossier.

Round brackets "( )" enclosing text in normal font indicate text which is to be included (within round brackets) in the Tender Dossier.

Round brackets "( )" enclosing italicised text are to be included (within round brackets) in the Tender Dossier as notes for the Tenderers.

3. Contents

This SSTD is applicable to contracts for construction and where the Contractor constructs the works in accordance with designs and details, most (or all) of which are provided by (or on behalf of) the Employer and where payments are usually based on a schedule.

When the Employer takes over the completed Works, these Works are simultaneously transferred to the Recipient.

The Users' Guide and the SSTD comprise the following documents:

Users' Guide: Introduction The Tender Process The Contract Taking-over Notices/Final Inspections

SSTD: Introduction

Invitation 1Instructions to Tenderers 1Annex A: Form of Tender Security 2Annex B: Evaluation Criteria 1Form of Agreement 2, 3

Appendix to the Agreement 1, 2

General Conditions (Short Form of Contract, 1999, FIDIC) Particular Conditions Annex A: Form of Performance Security 3Annex B: Form of Advance Payment Guarantee 3

1 to be amended or filled in by the Employer before issue to the Tenderers 2 to be completed by the Tenderer 3 to be completed by the Employer with the acceptance 4 to be completed by the Parties to the Agreement

Introduction


INVITATION

[For the Employer to issue to each prequalified contracting entity]

[Name and address of prospective Tenderer]

For the attention of [Relevant contact name or department]

[Date]

Subject: Invitation to tender for [name of Contract] [Name of Program/Component/Project]

Ref. No.: [ref. No]

We are pleased to notify you that you have been prequalified for the above Contract. We enclose, for your information, a complete list of the prospective Tenderers.

[OR: [If Tenderers were selected from a pre-existing list of approved contractors, and were therefore not prequalified, replace the above paragraph by the following sentence.] We are pleased to notify you that, as an approved contractor, you are approved as a prospective Tenderer for the above Contract. OR [if the procedure is an open procedure] We are pleased to invite you to submit a Tender for the above Contract. The Tender shall include qualification information as follows

-

-

-

]

Following a request from the Government of [insert name of the Country], the Contract is intended to be financed through a Danish grant, which will also cover other contracts included in the project. Part of this grant shall be used for the payments to the Contractor under this Contract.

The maximum budget for this Contract is DKK [if a maximum budget is mandatory, fill in the amount excluding contingencies, otherwise add N/A]

We now enclose the Tender Documents listed in Clause 1 of the Instructions to Tenderers, and invite you to submit a Tender to us in accordance with these Instructions, which form the first part of these Tender Documents. In the Instructions, the following details are stated to be included in this Letter of Invitation:

(a) Clause 2 refers to the eligibility of the above-named entity, to whom this letter is addressed;

(b) Clause 3 refers to requests for clarification being sent to the person who is authorised to act for the Employer, who is … [insert name and address, unless the same as the letterhead];

Invitation

Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 (c) Clause 4 refers to the need for you to visit and examine the site, but we do not intend to

arrange a joint site visit for all Tenderers. [OR: Clause 4 refers to a joint site visit by representatives of the Tenderers. You should send either one or two representatives to the site for this visit. It will commence at … [add further details as necessary, describing what arrangements have been made, what each Tenderer has to arrange, where Tenderers’ representatives are expected to travel/meet/etc] ]

(d) Clause 6 refers to the submission of your Tender, which must be delivered by hand to the address stated in the Clause not later than 10:00 on the Tender submission date of [insert date].

(e) Clause 7 refers to the opening of Tenders in the presence of representatives of the Tenderers, which will commence at 12:00 hours on the Tender submission date stated above.

Please confirm, within a week of receiving this letter, that you have received all the Tender Documents and advise us whether you will submit a Tender in accordance with the Instructions to Tenderers.

Invitation


INSTRUCTIONS TO TENDERERS

1. Introduction

1.1 These Instructions to Tenderers (“these Instructions”) relate to a Letter of Invitation (“the Invitation”), in which a prospective Tenderer is invited to submit a Tender to the Royal Danish Ministry of Foreign Affairs (Danida). The Invitation, which (in the event of ambiguity) takes precedence over these Instructions, specifies:

(a) the company or joint venture, who/which is considered to be eligible as described in Clause 2 of these Instructions and who/which is thus invited to submit a Tender;

(b) the person who is authorised to act for the Employer and to whom requests for clarification may be sent as described in Clause 3 of these Instructions;

(c) details of how to participate in the site visit by Tenderers (or how to obtain such details), if such a visit is being arranged under Clause 4 of these Instructions;

(d) the time by which Tenders are to be submitted in accordance with Clause 6 of these Instructions (the “Tender submission date”); and

(e) the time when Tenders are to be opened as described in Clause 7 of these Instructions.

1.2 The Tender Documents, as issued to each Tenderer in accordance with the Invitation, comprise:

(a) A bound volume containing these Instructions, the Agreement, the Conditions of Contract, and the Specification;

(b) Drawings Nos. …

[Amend the list as appropriate. Ensure consistency with 5.2.]

[The following documents have also been issued to each Tenderer for information:

(c) ] [for example, the reports prepared by other parties detailing their site investigations]

[These documents have been made available for information only, and the Tenderer should not rely on the accuracy of these documents.] These [documents and the] Instructions to Tenderers shall not form part of the Tenderer’s offer, nor part of the “Contract”. These Instructions prescribe the procedures to be followed until the Employer either enters into a Contract with the Tenderer or advises him that the Employer does not intend to do so.

1.4 Words and expressions defined in the Conditions of Contract shall have the same meanings in these Instructions. These defined words include the “Employer” who takes over the completed Works, and the “Recipient” to whom the completed Works are simultaneously transferred. The word “Tender” means the set of Tender Documents which the Tenderer has completed and submits to the Employer in accordance with these Instructions.

1.5 The Tenderer shall bear all costs incurred in the preparation and submission of the Tender, including visits and other actions mentioned or implied in these Instructions.

1.6 The Employer will not be responsible or liable for such costs, regardless of the conduct or outcome of the tendering process. The Employer reserves the right to accept or reject any Tender, or to annul the tendering process and reject all Tenders, without incurring liability to any Tenderer and without notifying any Tenderer of the reasons for the Employer’s action.

1.7 Tender procedures are subject to the law of the country of the Employer.

Instructions to Tenderers

Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 2. Eligibility of the Tenderer

2.1 The Invitation names the company or joint venture whom/which the Employer considered to be eligible to submit a Tender. Nothing in these Instructions entitles any other entity, company or joint venture to submit a Tender.

2.2 Each Tenderer shall notify the Employer, as soon as practicable, of any change in the data submitted for the purpose of the qualification. Any significant change in such data shall be deemed to invalidate the Tenderer’s qualification, but the company or joint venture may request the Employer’s permission to reapply for qualification. If (at his sole discretion) the Employer grants such permission, the Tenderer’s application for prequalification must be received by the Employer not less than 28 days before the Tender submission date specified in Clause 6 of these Instructions.

[If Tenderers were selected from a pre-existing list of approved contractors, and were therefore not prequalified, it may be appropriate to replace the above paragraph by one requiring Tenderers to submit qualification information]

2.3 In these Instructions, the expression “joint venture” includes a consortium and any other unincorporated grouping of two or more legal entities. In order that such a joint venture of two or more legal entities is to be acceptable as eligible:

(a) these entities shall have nominated a leader with authority to bind the joint venture and each of these entities; and this leader shall be authorised to incur liabilities and receive instructions for and on behalf of any and all these entities;

(b) evidence of this authorisation shall be attached to the Offer in the form of a power of attorney signed by legally authorised signatories of all these entities;

(c) the Offer contained in the Agreement shall be signed so as to be legally binding on each of these entities;

(d) a copy of the agreement entered into by these entities shall be submitted with the Tender. This agreement shall state (i) each such entity’s percentage participation in the joint venture, and (ii) that these entities shall be jointly and severally liable to the Employer for the performance of the Contract.

2.4 No such entity or sole Tenderer shall participate in the preparation of another Tenderer’s Tender for the same Contract. If any entity is found to have participated in two or more Tenders, other than alternative Tenders from the same Tenderer, all such Tenders will be rejected.

2.5 However, any entity may be proposed as a prospective subcontractor by more than one Tenderer in addition to being either a sole Tenderer or a participant in one joint venture Tenderer.

3 The Tender Documents

3.1 The Tender shall be responsive to the complete set of Tender Documents which comprise the documents listed in Clause 1 above and any Addenda to Tender Documents which may be issued as described in this Clause 3. The Tenderer shall scrutinise each document immediately upon receiving it and shall promptly give notice to the Employer of any pages which appear to be missing.

3.2 The Tenderer must carefully examine all Tender Documents. Failure to comply with these Instructions or with any other tendering requirements will be at the Tenderer’s risk.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 3.3 If the Tenderer requires any clarification of the Tender Documents, he may give notice to the

Employer. The notice shall be written (which includes by facsimile transmission) in the English language, and shall be sent to the address stated in the Invitation as soon as practicable.

3.4 The Employer shall respond to the notice by issuing (i) the text of the question or request for clarification and (ii) the clarification from (or on behalf of) the Employer. This response shall be in writing and shall give no indication of the identity of the Tenderer who requested clarification. These requests for clarification and responses shall be sent to all prospective Tenderers who received the Tender Documents, but shall not constitute amendments to the Tender Documents. However, if a notice is received less than 21 days before the Tender submission date, there may be no response.

3.5 If amendments are to be made to the Tender Documents, arising from a notice or otherwise, the Employer shall issue an Addendum to Tender Documents. Each Addendum to Tender Documents shall be sent to all prospective Tenderers who received the Tender Documents, and shall be binding upon them. The Tenderer shall promptly acknowledge receipt of each Addendum to Tender Documents by written notice to the Employer, and shall attach a copy to his Offer.

3.6 At any time, the Employer may similarly issue an Addendum to Tender Documents which postpones the Tender submission date. In this event, all rights and obligations of the Employer and the Tenderers previously related to the original date shall thereafter be subject to the amended date.

3.7 If a prospective Tenderer is dissatisfied with the Tender Documents or tendering procedures, for reasons which may be applicable to other Tenderers, he may give written notice of his reasons for dissatisfaction to the Employer, and request that a Pre-Tender Meeting of all Tenderers be convened to discuss these reasons. If the Employer considers that a Pre-Tender Meeting of all Tenderers is appropriate, the Employer shall conduct it and prepare minutes, which shall be sent to all prospective Tenderers who received the Tender Documents. If the Employer considers that a Pre-Tender Meeting of all Tenderers is inappropriate, he may nevertheless send an observer to attend any meeting which is convened by Tenderers.

4 Site Visit

4.1 The Tenderer should visit and examine the Site and its surroundings, and must obtain for himself on his own responsibility all information which may be necessary for preparing the Tender and entering into a Contract.

4.2 The Tenderer and any of his personnel or agents will be granted conditional permission by the Recipient to enter upon the Site. The permission shall be deemed to have been based upon the Tenderer, his personnel and agents indemnifying the Recipient and his personnel and agents from and against all liability and upon the Tenderer being responsible for personal injury (whether fatal or otherwise), loss of or damage to property and any other loss, damage, costs and expenses (however caused) which would not have arisen other than due to the exercise of such permission.

4.3 If a joint site visit is to be arranged for all Tenderers, details are given in the Invitation.

4.4 Such a joint visit is intended to supplement, and not to replace, the individual inspections carried out by each Tenderer. The Employer accepts no responsibility for providing any indication of relevant aspects, or access to appropriate areas, which a competent Tenderer may consider necessary for the preparation of a Tender.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 4.5 The Employer shall not be bound by any oral representations which may be made, whether

by the Employer’s, Recipient’s or diplomatic personnel or by others; and whether during a formal meeting or otherwise. In order to minimise the possibility of misunderstanding, Tenderers should present any requests for clarification in writing. In accordance with Clause 3 of these Instructions, a record of the formal meeting, requests, clarifications and/or Addendum to Tender Documents shall be sent to all prospective Tenderers who received the Tender Documents.

5 Preparation of the Tender

5.1 The Tender and all communications between the Tenderer and the Employer shall be typed or written in indelible ink in the English language. Supporting documentation submitted by the Tenderer may be in another language if he also submits an appropriate translation of all its relevant passages into English.

5.2 The Tender Documents to be submitted by each Tenderer shall comprise the bound volume described in Clause 1 of these Instructions and the documents described in this Clause 5.

5.3 The Tender Documents issued to the Tenderer, including any amendments instructed in an Addendum to Tender Documents, shall be used without further amendment.

5.4 The Tenderer shall also submit the following supplementary information accompanying, but not forming part of, his Tender:

(a) information required under Clause 2 of these Instructions, if applicable to the Tenderer; [

(b) name and address of the bank or other entity which will provide the performance security; and a letter from such entity acknowledging having received a copy of the form annexed to the Conditions of Contract and undertaking to provide this security in accordance with the exact wording of the Annex (if the entity requests minor changes, they must be specified exactly);] [delete if no performance security is required]

(c) name and address of the insurers and their principal terms for the insurances required by Clause 14 of the Conditions of Contract;

(d) details of the arrangements and methods which the Tenderer proposes to adopt for the execution of the Works, in sufficient detail to demonstrate their adequacy to achieve the requirements of the Contract including maintaining the health and safety of Contractor’s personnel; and

(e) any proposals for subcontracting elements of the Works.

(f) The Tenderer shall price the whole of the Works, and submit a Tender, in accordance with the Tender Documents. A Tender which excludes part of the Works may be rejected as unresponsive.

5.5 The Bill of Quantities shall be fully priced, with a rate entered for each item. Each amount shall be carried forward to the Summary, the total of which shall be carried forward to the Offer. All rates and prices shall be entered in the same currency as that which is named in the Offer. If any item is not priced, there shall be no payment for the work described in the item, which shall be deemed covered by other rates and/or prices.

5.6 The Tenderer shall submit, as part of his Tender, the following documents:

(a) each Addendum to Tender Documents under Clause 3 of these Instructions, if any;

(b) …



[Amend the list as appropriate. The Tender Documents may include tables and/or questionnaires for the Tenderers to enter technical information on any works designed by the Tenderer. If a Tender Security is required, for example because Tenderers were not prequalified, the following item should be added:] [

(c) a tender security, which shall be in the form annexed to these Instructions or in another form approved by the Employer. The company actually issuing the performance security shall be registered in the country of the Employer as a bank or an insurance company, or as a branch thereof. ]

5.8 The completed Tender shall not have any alterations or erasures, except any which may be specified in an Addendum to Tender Documents issued under Clause 3 of these Instructions. However, if alterations are necessary to correct errors made by the Tenderer, these corrections shall be endorsed with the signature of the person signing the Offer.

5.9 Only one Tender may be submitted by each Tenderer, except for any alternative offers.

5.10 In addition to a compliant Tender, the Tenderer may offer technical or other alternatives to the requirements of the Tender Documents, which may include reasonable deviations or other proposals. Each alternative Tender shall include all information necessary for its complete evaluation by the Employer, including any relevant calculations, specifications, construction methods, timing implications, breakdowns of prices, and other relevant details. The Employer reserves the right to accept or reject alternative offers.

6 Submission of the Tender

6.1 The Tenderer shall prepare one original set and three photocopy sets of the documents comprising the Tender and supplementary information, as described in Clause 5 of these Instructions. Each such set shall be submitted in an inner envelope within an outer envelope, with each document and each envelope being clearly marked “ORIGINAL” or “COPY” as appropriate. In the event of any discrepancy between them, the ORIGINAL shall prevail.

6.2 The original and copies of the Tender shall be signed (after copying) by a person or persons duly authorised to bind the Tenderer. Proof of authorisation, in the form of a written power of attorney, shall be annexed to the Offer.

6.3 The inner and outer envelopes shall be addressed to:

Contracts Department, ERH Royal Danish Ministry of Foreign Affairs 2 Asiatisk Plads DK-1448 København K Denmark

and shall bear the following identification:

For attention of: [the person who signed the Invitation]

Tender for [Name of project/contract]

6.4 The inner envelopes shall indicate the name and address of the Tenderer to enable the Tender to be returned unopened in the event of it being declared “late”. The outer envelopes shall give no indication of the Tenderer.

6.5 If a Tender is misplaced or opened prematurely because an envelope was not sealed and marked as instructed above, the Employer shall not be responsible and the Tender may be rejected.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 6.6 The original and copies of the Tender must be delivered to the address specified above no

later than the time, on the Tender submission date, stated in the Invitation. Tenders received by the Employer thereafter will be returned unopened.

The Tenderer may modify or withdraw his Tender after submitting it, if the modification or notice of withdrawal is received in writing before such prescribed time for submission of Tenders but not thereafter. The Tenderer’s modification or notice of withdrawal shall be prepared, sealed, marked and delivered in accordance with the provisions of this Clause 6, with the inner and outer envelopes additionally marked "MODIFICATION" or "WITHDRAWAL", as appropriate. In particular, the modification or notice of withdrawal shall be signed by a person or persons duly authorised to bind the Tenderer, and proof of authorisation shall be annexed.

6.7 A Tender submitted other than as described in this Clause 6 may be rejected by the Employer and returned to the Tenderer.

6.8 The Tender shall remain valid and open for acceptance for the period of [180] days from the Tender submission date. The Tenderer shall calculate the date on which validity expires and insert this expiry date in the second paragraph of the Offer. Prior to this expiry date, the Employer may by written notice request the Tenderer to extend the validity period. The Tenderer may refuse the request, but shall not modify his Tender other than by extending its validity.

7 Tender Opening

7.1 Tenders and other submissions, which are in accordance with Clause 6 of these Instructions, will be opened at the date and time stated in the Invitation in the presence of Tenderers’ representatives who choose to attend at the address stated in Clause 6.3 of these Instructions.

7.2 Tenderers’ representatives at this opening shall sign an attendance register.

7.3 Tenders for which the Employer has received a valid notice of withdrawal in accordance with Clause 6 of these Instructions shall not be opened.

7.4 The Employer will examine Tenders to determine whether they appear to be complete, properly signed, and generally in order. For each Tender, the Employer will announce the name of the Tenderer, the sum offered, any apparent reservations or alternative offers stated therein, and such other details as the Employer may consider appropriate.

7.5 After this Tender opening, information relating to the processes of examination, clarification, evaluation and comparison of Tenders and the award of a contract shall not be disclosed, other than to those officially concerned with such processes. Any effort by a Tenderer to influence the Employer in these processes may result in the rejection of the Tenderer’s Tender.

8 Tender Evaluation

8.1 Prior to the detailed evaluation of Tenders, the Employer will determine whether each Tender is substantially responsive to the requirements of the Tender Documents.

8.2 If a Tender is not substantially responsive to the requirements of the Tender Documents, it will be rejected by the Employer.

8.3 The Employer will only evaluate and compare the Tenders which have been determined to be substantially responsive to the requirements of the Tender Documents. Responsive Tenders will first be checked by the Employer for any arithmetic errors in computation and summation, and any errors will be corrected as follows:

(a) The amount entered in the Offer may be considered acceptable without any of the



corrections and adjustments described in these sub-paragraphs. If there is any discrepancy between amounts in figures and in words, the amount in words will take precedence.

(b) If there is a discrepancy between the amount entered in the Offer and the equivalent sum computed on the basis of the Bill of Quantities, the Employer may make corrections and/or adjustments, applying the principles described in these sub-paragraphs. The Tenderer shall be notified accordingly, specifying each error, correction and adjustment. If the Tenderer does not accept these notified corrections and adjustments, his Tender may be rejected.

(c) If there is a substantial discrepancy between a stated amount and the correct amount calculated by multiplying the stated unit rate by the quantity, and the rate seems to have been stated in error (inconsistent with the Tenderer’s likely intentions), the stated unit rate shall be amended and the stated amount will be binding.

(d) If there is a discrepancy between a stated amount and the correct amount calculated by multiplying the stated unit rate by the quantity, and either the discrepancy is not substantial or it is reasonable to assume that the stated rate is consistent with the Tenderer’s intentions, the stated unit rate will be binding and the stated amount shall be amended.

(e) For lump sum items, the stated amounts will be binding (“unit” rates will be disregarded).

(f) No discount will be considered unless the discount is carried to the Offer.

8.4 For the purpose of evaluating Tenders, the Employer will determine for each Tender the Evaluated Tender Amount as follows:

(a) making any correction for errors as described above; and

(b) making an appropriate adjustment for any acceptable variations, deviations, discounts or other alternative offers not reflected in the submitted amount or these corrections.

8.5 The evaluation of the Tenders shall be based upon the principles outlined in the Evaluation Criteria annexed to these Instructions. Unless specifically stated, no criterion will take precedence over any other criteria, and Tender evaluation shall be based on an overall consideration.

8.6 To assist in the examination, evaluation and comparison of Tenders, the Employer may ask any Tenderer for clarification of his Tender, including breakdowns of unit rates and lump sum prices. The request for clarification and the response shall be in writing. No change in the price or substance of the Tender shall be sought, offered or permitted except as required to confirm the correction of arithmetic errors discovered by the Employer during the evaluation of the Tenders.

9 Award of the Contract

9.1 The Employer intends (i) to award the Contract to the Tenderer who appears to have the capability and resources to carry out the Contract effectively, whose Tender has been determined to be responsive to the Tender Documents and who has offered (all taken into consideration) the most favourable Tender; or (ii) to reject compliant Tenders and accept an alternative Tender. The Employer reserves his right to reject any or all Tenders.

9.2 Having decided which Tender to accept, the Employer will sign the original and a copy of the Acceptance section of the Agreement, and will return a complete signed copy of the Agreement to the successful Tenderer.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 9.3 If the Employer considers it necessary, prior to signing the Acceptance, he may request the

preferred Tenderer to clarify or supplement the Tender which the Tenderer has submitted. Such requests and detailing shall be given in writing or at joint discussions with minutes prepared by the Employer.

Thereafter, the Employer may seek the Tenderer’s agreement to a Memorandum of Under-standing recording the outcome of their joint discussions of the Tender. This Memorandum of Understanding will constitute the agreed basis upon which a contract could be concluded, and/or may include clarification of any alternative proposals which the Tenderer may have submitted. This Memorandum of Understanding (if any) (i) shall be binding on the Tenderer as an acceptable clarification and/or amendment of his Tender until its validity expires, (ii) shall be wholly subject to a subsequent contract agreement, and (iii) shall not bind the Employer nor commit him to entering into any contract under any terms.

9.4 After signing the Agreement, the Employer will promptly notify the other Tenderers that their Tenders have been unsuccessful, unless he had already done so.

9.5 No offer, payment, consideration, or benefit of any kind, which constitutes illegal or corrupt practices, shall be made, either directly or indirectly, as an inducement or reward in relation to:

(a) the tendering,

(b) the award of the contract, or

(c) the execution of the contract.

Any such practice will be grounds for the immediate cancellation of the Contract and for such additional actions (civil and/or criminal) as may be appropriate. At the discretion of the Royal Danish Ministry of Foreign Affairs, a further consequence of any such practice can be the definite exclusion from any tendering for Danida-funded projects.



Annex A: Form of Tender Security

To: The Royal Danish Ministry of Foreign Affairs

2 Asiatisk Plads DK-1448 København K Denmark

Tender Guarantee No.

In the event of

(Contractor’s name & address)

withdrawing his Offer for (brief description of Contract) after the latest time specified for its submission and before the expiry of its period of validity, or

refusing to accept the correction of errors in his Offer in accordance with your conditions of invitation, or

failing, after having been awarded the contract, to deliver a performance security accordingly,

we, (name of bank, insurance company, etc.), hereby guarantee, as primary obligor and not merely as a surety, on behalf of (name of Contractor), without cavil or argument the payment to you upon receipt of your first written demand of the amount

(in words & figures) of ______________________________________________________________

_________________________________________________________________________________

_______________________________ Danish Kroner (DKK ______________________________ )

Any such amount will be payable to you without any right of objection on our part.

This Tender Guarantee shall be valid and in full force and effect for a period of thirty weeks from ___ (the Tender submission date), or until any earlier date on which the Employer either receives the performance security from the successful Tenderer or abandons his intention to award the contract.

This Guarantee shall be governed by the laws of Denmark. Place of venue: Copenhagen.

Date ______________________ Signature(s) _____________________________________________

Annex A: Form of Tender Security


Annex B: Evaluation Criteria

Award will be made to the [economically most advantageous Tender OR: Tender with the lowest total price]. Tenders will be evaluated taking both the technical part and the price part of the Tender into consideration giving the technical part a weight of [normally 10-20%] and the price part a weight of [normally 80-90%].

(i) The criteria and sub-criteria shall comprise

Criterion/sub-criterion Weights

Technical quality. 100% 5-10%

[- adequacy of proposed construction method, work plan and time schedule

depending on the assignment

- description of the proposed organisation including the detailed measures to ensure quality and business integrity in carrying out this assignment


- availability of maintenance programmes, service and spare parts depending on the assignment

- related training and transfer of know-how depending on the assignment

- safety and environmental benefits depending on the assignment

- operation and maintenance benefits] depending on the assignment

Qualifications of the Contractor's key personnel (e.g. site manager and five other key personnel) each to be specified with weights

100% 10-15%

[- general qualifications: general education and training, length of experience, positions held, time with the contractor as staff, experience in developing countries, etc.


- specific qualifications: education, training, and experience in the specific sector, field, subject, etc., relevant to the particular assignment


- experience in the region: knowledge of the local language, culture, administrative system, government organisation etc.]


Weighted technical part 10-20%

Weighted price part 80-90%

Total 100%

The weights of the main criteria should be adjusted within the ranges indicated and the sub-criteria and the weights depending on the type of supplies, the character and size of the contract and the relative importance for success.

(ii) The level of responsiveness for each technical criterion and sub-criterion shall be rated on a scale of 0-100 points using the following grades

- poor: 40 points - satisfactory: 70 points - good: 90 points - very good: 100 points



The rating of each criterion and sub-criterion shall then be weighted and added to give the total score.

A Tender shall be considered unsuitable if the technical part does not comply with the Specifications or fails to achieve a technical score of 80% out of the maximum score.

(iii) The Evaluated Price and the other capitalised costs shall be added and the Tender with the lowest cost will be given a score of 100 points and other Tenders' scores inversely proportional to their costs.

(iv) The total score shall be obtained by weighting the technical and price scores and adding them.

The Tenderer obtaining the highest total score shall be invited to finalise a contract.



AGREEMENT

The Employer is: Royal Danish Ministry of Foreign Affairs, represented by [Name of department or diplomatic mission, address, representative, telephone no., fax no., e-mail address]

The Contractor is: [Name, address, representative, telephone no., fax no., e-mail address]

The Employer desires the execution of certain Works known as [insert short description].

OFFER

The Contractor has examined the documents listed in the Appendix which forms part of this Agreement and offers to execute the Works in conformity with the Contract for the sum (in words & figures) of

___________________________________________________________________________________

_______________________________________ DKK

or such other sum as may be ascertained under the Contract.

This offer, of which the Contractor has submitted an original plus three signed copies, may be accepted by the Employer by signing and returning a signed copy of this document to the Contractor by ____________________________________________________________________________(date)

The Contractor understands that the Employer is not bound to accept the lowest or any other offer.

Signature:_________________________________ Date:____________________________________

Name: ___________________________________authorised to sign on behalf of: (Name of Contractor)

in the capacity of: __________________________

[If qualification information has been submitted earlier by the Contractor, insert:] [The Contractor confirms that the qualification information submitted earlier for pre- or post-qualification is still valid and will on request of the Employer produce an update of such information (in the event of any changes the Contractor should attach to the Offer an update of such information)].

ACCEPTANCE

The Employer has, by signing below, accepted the Contractor’s offer and agrees that in consideration for the execution of the Works by the Contractor, the Employer shall pay the Contractor in accordance with the Contract. This Agreement comes into effect on the date when the Contractor receives this document signed by the Employer.

Signature:_________________________________ Date:____________________________________

Name: ___________________________________ authorised to sign on behalf of: [Name of Employer]

in the capacity of: __________________________

Unless established otherwise, the Contractor shall be deemed to have received this signed Agreement five days after the above date of signature of the Acceptance.

Agreement


APPENDIX

This Appendix forms part of the Agreement

(Note: with the exception of the items for which the Employer’s requirements have been inserted, the Contractor shall complete the following information before submitting his Offer)

Subject Sub-Clause Data

Documents forming the Contract listed in the order of priority

1.1(a) & 1.2 [(a) Agreement (b) Memorandum of Understanding (to be

attached if prepared and agreed prior to acceptance)

(c) Appendix (d) Amendments to the Contract Documents

issued as addenda (e) Particular Conditions (attached) (f) General Conditions (part of the Short Form

of Contract, 1999, FIDIC) (g) Specifications (separate attachment dated

[date]) (h) Drawings (separate attachment dated

[date]) (g) Bill of Quantities (separate attachment

dated [date]) (m) Performance security] [amend as appropriate with correct and identifiable document names]

Time for Completion 1.1.9 [Insert number] days from Commencement Date

Recipient’s name and address 1.1.20 [Insert Recipient's name and address]

Law of the Contract 1.4 The Law of Denmark

Language for communications 1.5 The English language

Provision of Site 2.1 [On the Commencement Date]

Authorised person 3.1 [Insert name, address, phone no., fax no. and e-mail address of the person authorised by the Employer]

Name and address of Employer’s Representative (if known)

3.2

[Insert name, address, phone no., fax no. and e-mail address of the Employers Representative (if any)]

Performance Security 4.4

Amount [Not Required] [OR: [10%] of the sum stated in the Agreement, and in the same currency]

Appendix



Form Annexed to Conditions of Contract

Requirements for Contractor’s design (if any)

5.1 [Specification Clause No.: [Clause No.]] [OR: None]

Programme 7.2

Time for Submission Within [14] days of the Commencement Date

Form of programme [No specified form]

Amount payable due to failure to complete

7.4 [0.05%] per day of the sum stated in the Agreement, up to a maximum of 10% of the sum stated in the Agreement

Period for notifying defects 9.1 & 11.5

[365] days calculated from the date stated in the notice under Sub-Clause 8.2

Variation procedure Daywork rates

10.2 [insert details]

Valuation of the Works [Lump sum Price [with schedules of rates][with bill of quantities]] [Re-measurement with tender bill of quantities] [Cost reimbursable]

11.1 [insert details]

Percentage of value of Materials & Plant

11.2 Materials: [75%] Plant: [80%]

Percentage of retention 11.3 4%

Currency of payment 11.7 As stated in the Agreement

Rate of interest 11.8 3% per annum plus the discount rate of the central bank in the country of the currency of payment

Advance Payment (if any) 11.9

Amount [Not Applicable] [OR: [10%] of the sum stated in the Agreement, and in the same currency]

Form Annexed to Conditions of Contract

Insurances 14.1

The Works, Materials, Plant and fees

Amount of cover: The sum stated in the Agreement plus 15%. Exclusions: [insert exclusions OR: None]

Appendix



Contractors Equipment Amount of cover: Full replacement cost. Exclusions: [insert exclusions OR: None]

Third party injury to persons and damage to property

Amount of cover: [DKK 100 million] Exclusions: [insert exclusions OR: None]

Workers Amount of cover: Under the Country's laws Exclusions: [insert exclusions OR: None]

Other cover [None] Exclusions: [insert exclusions OR: None]

Arbitration 15.1

Rules [Danish Rules of Conciliation and Arbitration]

Appointing authority [Voldgiftsnævnet for Bygge- og Anlægsvirksomhed]

Place of Arbitration Copenhagen

Appendix


GENERAL CONDITIONS

The Conditions of Contract comprise the “General Conditions”, which form part of the “Short Form of Contract” First Edition 1999 published by the Fédération Internationale des Ingénieurs-Conseils (FIDIC), and the following “Particular Conditions”, which include amendments and additions to such General Conditions.

General Conditions


PARTICULAR CONDITIONS

Subject Sub-Clause

Definitions 1.1 Insert the following additional definitions:

1.1.20 “Recipient” means the person named as recipient in the Appendix and the legal successors in title to this person.

“Government Project Agreement” means the inter-governmental agreement between the Country and Denmark.

Insert new Sub-Clauses 1.7 and 1.8: Labour 1.7 The Contractor shall ensure that no one under 14 years of age or the

age of the end of compulsory schooling in that area, whichever is higher, is engaged on the Works. The Contractor shall respect the rights of freedom of association, right to freedom from forced labour, right to freedom from discrimination on the basis of race, colour, sex, religion, political opinion and the social origin as these principles are defined in the relevant Conventions of the International Labour Organisation.

Joint and Several Liability

1.8 If the Contractor is a joint venture, consortium or other unincorp-orated grouping of two or more persons, they shall be deemed to be jointly and severally liable to the Employer for the performance of the Contract, and shall give notice to the Employer of the person who has authority to bind the Contractor and each of these persons. The Contractor’s composition or legal status shall not be altered without the prior consent of the Employer.

Provision of Site 2.1 Delete “Employer” and substitute “Recipient” Permits and Licences

2.2 Delete “Employer” and substitute “Recipient”

Insert new Sub-Clause 2.5: The Recipient 2.5 The Employer shall require the Recipient to carry out the duties

assigned to him in the Contract. The Recipient shall have no authority to amend the Contract, to issue instructions under it, or to assign any part of the Contract or any benefit or interest in or under the Contract, except as may be agreed by both Parties.

Whenever the Employer takes over the Works under Clause 8, they are simultaneously transferred to the Recipient.

The Parties acknowledge that, for the purposes of considering any rights or obligations arising from the Contract or Works, the Employer and the Recipient are deemed to be the joint beneficiaries of the completed Works.

Particular Conditions

Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 Subject Sub-Clause [If a performance security is not required, omit this 4.4] Performance Security

4.4 Insert at the end of Sub-Clause 4.4:

The third party issuing the performance security shall be incorporated in a member country of the European Union as a bank or an insurance company. The company actually issuing the performance security shall be registered in the Employer’s country as a bank or an insurance company or as a branch thereof.

The Contractor shall not be entitled to receive any payments under the Contract until the Employer has received the performance security.

The Employer shall not make a claim under the performance security, except for amounts to which the Employer is entitled in the event of failure by the Contractor to comply with the Contract.

The Employer shall return the performance security to the Contractor when payment of the second half of retention is due under Sub-Clause 11.5.

Delayed Payment 11.8 Insert at the end of Sub-Clause 11.8:

The Contractor shall also be entitled to suspend (or reduce the rate of) work until he receives the payment due. The Employer’s failure to pay within the prescribed period and such suspension (or reduction) shall be Employer’s Liabilities.

Insert new Sub-Clauses 11.9 and 12.5:

Advance Payment

11.9 If stated in the Appendix, the Employer shall make an advance payment when the Contractor delivers to the Employer a guarantee in a form and from a third party approved by the Employer.

The third party issuing the guarantee shall be incorporated in a member country of the European Union as a bank or an insurance company. The company actually issuing the guarantee shall be registered in the Employer’s country as a bank or an insurance company or as a branch thereof.

The advance payment shall be repaid to the Employer through proportional deductions from the payments due under Sub-Clause 11.2, such that the advance shall be fully repaid when the Works have been completed.

If the advance payment has not been repaid prior to payment of the first half of retention becoming due under Sub-Clause 11.4 or prior to the Contract being terminated for any reason, the Contractor shall then pay all of the outstanding balance to the Employer.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 Subject Sub-Clause

Anti-Corruption 12.5 No offer, payment, consideration, or benefit of any kind, which constitutes illegal or corrupt practices, shall be made, either directly or indirectly by the Contractor, as an inducement or reward in relation to the tendering, award or execution of the Contract. Any such practice will be grounds for the immediate termination of the Contract and for such additional actions (civil and/or criminal) as may be appropriate. At the discretion of the Employer, a further consequence of any such practice can be the definite exclusion from the Employer’s projects.

Delete Clause 15 entirely and insert new Clauses 15 and 16:

Arbitration 15.1 Unless settled amicably, any dispute or difference which arises between the Contractor and the Employer out of or in connection with the Contract shall be finally settled by a single arbitrator under the rules specified in the Appendix. In the absence of agreement, the arbitrator shall be designated by the appointing authority specified in the Appendix. Any hearing shall be held at the place specified in the Appendix and in the English language, unless the Parties agree otherwise.

Litigation 15.2 If no arbitration rules are specified in the Appendix, Sub-Clause 15.1 shall not apply, and the Courts of the law stated in Sub-Clause 1.4 shall have full jurisdiction to resolve any dispute or difference between the Parties.

Exemption for Goods

16

16.1

Local Duties and Taxes

In this Clause, “Goods” means Contractor’s Equipment, Materials, Plant Temporary Works, and fuel and lubricants required for the Contractor’s Equipment, or any of them as appropriate.

The Goods imported by the Contractor into the Country for the Works shall be exempt from customs and other import duties and taxes.

The Contractor shall prepare the necessary exemption and other documents in accordance with the Laws of the Country, the requirements of customs and other legally constituted authorities, and any other reasonable requirements of the Recipient.

The Contractor shall be entirely responsible for the presentation of documentation in order to clear the Goods through the customs authorities, and shall be deemed to have been satisfied (before submitting the Offer) as to all relevant procedures.

Other Duties and Taxes

16.2 All imported Goods, which are not incorporated in or expended in connection with the Works, shall be exported on completion of the Contract. If not exported, or if used in connection with other contracts, the Goods will be assessed for duties (as applicable to the Goods involved) in accordance with the Laws of the Country, and the Contractor shall pay such duties accordingly.


Danida Tender for [Name of Contract] [Name of Program/Component/Project] of 30 Subject Sub-Clause

The Contractor shall not be entitled to exemption from:

(a) port dues, quay dues and similar charges, and

(b) any element of duty or tax inherent in the price of goods or services procured in the Country.

Responsibility of the Recipient

16.3 The Recipient shall be responsible for exemptions under Sub-Clause 16.1, except to the extent that non-exemption is attributable to a failure by the Contractor to comply with the relevant procedures.

In the event that exemption is not granted, the Contractor shall endeavour to minimise the disruption to the progress of the Works, including paying the duties and/or taxes. The Recipient shall then pay to the Contractor the amount of such duties and taxes as were due and paid and to which the Contractor was entitled to exemption under Sub-Clause 16.1, in the currency in which the duties and/or taxes were paid by the Contractor.

Responsibility of the Employer

16.4 In order to facilitate the Contractor’s applications for exemptions, the Employer shall issue to the Contractor, prior to the Commencement Date, a copy of the relevant parts of the Government Project Agreement.

If the Recipient fails to make payment of any amount due under Sub-Clause 16.3 by the date when payment of the remainder of the retention is due under Sub-Clause 11.5, other than by reason of a failure by the Contractor to provide the appropriate documentation entitling him to payment of the amount due under Sub-Clause 16.3, the Employer shall pay such amount.



Annex A: FORM OF PERFORMANCE SECURITY

To: The Royal Danish Ministry of Foreign Affairs 2 Asiatisk Plads DK-1448 København K Denmark

Performance Guarantee No.

In the event of


failing his obligation to meet the requirement of proper and faithful performance of the Contract between (name of Contractor) and The Royal Danish Ministry of Foreign Affairs, covering:

(brief description of Contract)

and therefore becoming liable in whole or in part of the amount of total liability we, (name of bank, insurance company, etc.), hereby guarantee, as primary obligor and not merely as a surety, on behalf of (name of Contractor), without cavil or argument the payment to you upon receipt of your first written demand of any amount, for which you state that he has become liable, up to the maximum,

(in words & figures) of ____________________________________________________________________

___________________________________________________________________________________

________________________________ Danish Kroner (DKK________________________________)

Any such amount will be payable to you without any right of objection on our part.

We further acknowledge and agree to modifications of terms of the Contract or work to be performed thereunder, which may mutually be agreed upon between (name of Contractor) and you.

This Performance Guarantee shall be valid and in full force and effect until sixty weeks after we receive a copy of the taking-over notice issued in accordance with sub-clause 8.2 of the conditions of Contract, after which this Guarantee shall expire.

The amount of the Guarantee will be reduced automatically by any amount we may have to pay under the Guarantee.

This Guarantee shall be governed by the laws of Denmark. Place of venue: Copenhagen

Date ______________________ Signature(s) _____________________________________________

Form of Performance Security


Annex B: FORM OF ADVANCE PAYMENT GUARANTEE

To: The Royal Danish Ministry of Foreign Affairs 2 Asiatisk Plads DK-1448 København K Denmark

Advance Payment Guarantee No.

At the request and for account of


we, (name of bank, insurance company, etc.), hereby issue our irrevocable guarantee in favour of The Royal Danish Ministry of Foreign Affairs for an amount of

(in words & figures) of ____________________________________________________________________

___________________________________________________________________________________

________________________________ Danish Kroner (DKK________________________________)

in security of a possible refund of an advance payment in connection between (name of Contractor) and you, covering

(brief description of Contract)

The guarantee shall be payable to you on your first demand against your written request without any right of objection on our part.

The guaranteed amount shall be reduced by the amounts of the advance payment repaid to you. The guarantee expires when it has been written down to nil, after which it shall be considered null and void.

This Guarantee shall be governed by the laws of Denmark. Place of venue: Copenhagen.

Date ______________________ Signature(s) _____________________________________________

Form of Advance Payment Security

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