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Terminology used in Contract Documentation

Parties

Employer : The person or body that commissions the construction

Clients Representative : The person appointed by the Employer to liaise with the Design Team and Project Manager.

Adjudicator : The person who gives rulings on Employer Contractor disputes and is preferably a different person to the Project Manager.

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Parties Contractor : The firm that has been contracted

to construct the Works Subcontractor : A firm that has a contract with

the main Contractor to provide labor, materials or products.

Arbitrator : The Arbitrator is the person to whom the

Employer and Contractor can refer their disputes to and be bound by the Arbitrators decision.

The Arbitrator cannot be the same person as the Project Manager.

Documents

Contract Documentation : Pre-qualification, Tender and Contract

Documents collectively.

This term includes all documents prepared by the Design Team.

Prequalification Documents : Prequalification documents exchanged between

the Employer/Designer and potential tenderers prior to selection of list of tenderers.

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Documents

Tender Documents : The Documents sent to the selected tenderers to

enable them to price the construction.

Also termed as Invitation to Tender.

Instructions to Tenderers : The term is self-explanatory but only covers

procedures up to Acceptance of Tender.

For this reason, it is not a Contract Document.

Documents

Tender : The documents that have been completed by a tenderer and are then returned to the Employer for consideration

(i.e Evaluation). Bid : US equivalent to Tender. Normally not used

in Contract documentation, since contract documentation deals with written offer. The word Bid in UK English tends to be used to describe both verbal and written offers.

Offer : Another alternatives to Tender not normally used in contract documentation for the same reason as Bid

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Documents

Bill Of Quantities : Civil Engineers and designers using the FIDIC

Conditions and the UK building designers use the term Bill Of Quantities.

Addenda : Changes to tender Documents after they have

been sent to the tenderers and prior to Acceptance.

Variation Order : Project Managerss order for alternations,

additions and omissions to the Works

Tender Document :Essential Elements

1. Instructions to Tenderer(ITT)

2. Tender Data Sheet(TDS)

3. General Conditions of Contract(GCC)

4. Particular Conditions of Contract(PCC)

5. Tender Form

6. Bill Of Quantities(BOQ)

7. General Specification

8. Particular Specification

9. The Drawings

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The purpose of this section is to instruct the tenderer or bidder about general rules and regulation.

It is almost same for all tender.

It should not have any details, for example, here it is said to deposit tender security, but the amount of tender security is not written here.

Instructions to Tenderer(ITT)

The ITT provides generalized information the particular data (information) is provided TDS.

Here the amount of tender security is written (say, 2-3% of project cost)

Amount of required turnover that the tenderer is to fulfill is specifically mentioned.

Tender Data Sheet(TDS)

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It is almost same for all tender

Here general conditions are written only, not particularly/specifically

Some items of GCC clause are- Definitions

Arbitrators

JVCA

Risk

Compensation Events

Performance Security etc.

General Conditions Of Contract(GCC)

Particular Conditions Of Contract(PCC)

It varies from tender to tender.

The specific rules of GCC are given here; say the amount of compensation, the performance security is written here.

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Tender Form

It varies from tender to tender.

Bill of Quantities(BOQ)

BOQ contains all items for works and supplies for construction, testing, commissioning to be done by the contractor.

It is used to calculate the contract price.

The contractor is paid for each item of work done at a rate as quoted in the BOQ

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BoQ provides sufficient information on the quantities of Works to be performed to enable Tenders to be prepared efficiently and accurately;

BoQ provides a priced BOQ for use in the periodic valuation of Works executed.

General Specifications

General specification are written

General Specification may include:

General site requirement

Health and safety

Measures against environmental pollution

Security measures

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Particular Specification

It contains particular specificaion.

Example : Strength and other properties of steel

Strength of concrete

Specification of bricks

Specification of electrical items

Etc.

The Drawings

This portion contains drawing work.

It gives detailing for the task.

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Flow Chart of Tendering Process

Tender Notice

Interested bidder buy

tender documents

Tender Submission

Tender Evaluation by

Tender Evaluating Committee

Outcome of Tender Evaluation

Rejected Tenderer

Non-Response Tenderer

Substantially Responsive Tenderer

Responsive Tenderer

(Cont. to next page)

Obtain clarification and make responsive or nonresponsive

Lowest Bidder/Tenderer

Invited to ContractNOA

Contractor

ContractSign

(cont. from prev. page)

No

Yes

Approval from

HOPE

Cancel the process& Arrange Re-tender

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Criteria for Tender Evaluation

Preliminary Security

Tender and goods are eligible

Minimum general experience

Minimum similar contract type experience

Minimum liquid asset

VAT & IT related certificate

Valid trade license

Criteria for Tender Evaluation

Preliminary Security

All pages duly signed

Price schedule

Tender validity period

Completed tender submission sheet

Tender security

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Criteria for Tender Evaluation

Detailed Examinations Check for qualification and experience of key

personnel.

Check for adequacy of plants and equipments

Check for general experience

Check for similar contract type experience

Check for bank certificate for liquid asset

Check for annual average turnover from audit report

Check for arithmatic correction of prices quotted

Check for credit facility available