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STANDARD TENDER DOCUMENTS - WORKS K.N. Venkata Raman Procurement Consultant, World Bank.

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Presentation on theme: "STANDARD TENDER DOCUMENTS - WORKS K.N. Venkata Raman Procurement Consultant, World Bank."— Presentation transcript:

1 STANDARD TENDER DOCUMENTS - WORKS K.N. Venkata Raman Procurement Consultant, World Bank

2 2 Provisions in KPWD Code Para 167(1) of KPWD Code Volume I specifies that contracts of value more than Rs.25,000 should be prepared on PWG-65; Para 167 (3) specifies that contracts of value less than Rs.25,000 should be prepared on PWG-65 or Piece Work Form PWG-64 at the discretion of EE; Para 168 states the Form for Lump sum contract shall be PWG-65 (a).

3 3 Commercial Conditions as per KTPP Rules The tender documents (TD) shall require all tenderers to pay an earnest money at the rates as per departmental rules by means of demand draft, banker’s cheque, specified small savings instruments or where the procurement entity deems fir irrevocable bank guarantee in a specified form of the departments. The TD shall clearly state that any tender submitted without the earnest money deposit be summarily rejected; Provided that any category of tenderers specifically exempted by the Government from the payment of EMD will not be required to make a deposit.

4 4 Commercial Conditions as per KTPP Rules (contd) The TDs shall specify the period for which the tenderer should hold the prices offered in the tender valid; Provided that the initial period of validity shall not be less than 90 days; The TDs shall require that as a guarantee of the tenderer’s performance of the contract, a security deposit be taken from the successful tenderer as per departmental rules; The TDs and the contract shall include a Clause for payment of liquidated damages and penalty payable by the tenderer in the event of non-fulfillment of any of the terms or whole of the contract.

5 5 Tender Documents – Current Practices Contract Form No.PWG-65 with little or no modification is widely used by all government departments (PWD, Irrigation, NH, RD, Panchayat Raj; Also by PSUs (KBJNL, KNNL, KSRTC, BWSSB, KUWS&DB, KSSIDC, KHB, KRDCL) Municipal Corporations (BMP); KPCL, KPTCL, have made considerable changes in PWG-65; but they are maintaining the serial numbers of PWG-65; PWG-65 with ample modifications is being used for Turn key contracts also; The departments and PSUs are devising their own PQ documents in the absence of standard.

6 6 Tender Documents- Result of Review No standard form of NIT; No explicit instructions to tenderers detailing procedure for obtaining TDs;documents to be submitted for establishing eligibility and qualification; procedures for preparation and submission of tenders including late tenders; modification and withdrawal of tenders; tender security; period of validity of tenders; procedure for receipt of tenders; clarifications to be obtained; correction of arithmetical errors;preliminary examination for determining responsiveness; evaluation and comparison of tenders; post qualification (in absence of pre- qualification); award criteria; notification of award; signing of contract; submission of performance security etc.

7 7 Tender Documents – Result of Review (contd) General Conditions of Contract is not orderly; comprehensive; share risks between the Engineer and Contractor; does not cover liquidated damages; does not define the powers of Employer and Engineer, fundamental breaches of contract and compensation events; does not provide for adjudication, arbitration, price adjustment for period of completion less than two years and for contracts of value less than Rs.5 M in case of Road and Communication works and Rs.10M in case of Irrigation works; does not prescribe the forms of unconditional bank guarantee for security; does not prescribe the formats for submitting qualification information etc.etc.

8 8 Tender Documents – Result of Review (contd) No standard Special Conditions of Contract; There are variations in the documents used by the various implementing agencies for pre-qualification of contractors for works leading to subjective decisions; Procurement process is not transparent and subjective in most cases.

9 9 Tender Documents – SPAR Recommendations The quality of tender document which includes the contract format and conditions decides the level of competition, the transparency of the process, the risks imposed on the tenderer and consequently the prices; Prepare and publish a set of standard tender documents and mandate its use by all procurement entities government departments, PSUs, Local Bodies, Universities in the State; User entities should not change the GCC, but may add any unique requirements or modification through ‘Special Conditions’; Contract Specific data to be entered in the Contract Data.

10 10 Tender Documents – Action Taken Six STDs (generally based on the tender documents approved by GOI Task Force and agreed with World Bank )were finalized and approved by the Sub-Committee of Standing Committee and were posted on the web site of the FD during September 2003. Secretaries to Government/HODs were informed of this and comments were sought. Very few comments received; Six documents have been approved by Standing Committee and Government orders for mandating their use is under process.

11 11 Standard Tender Documents – K/W-1 Item Rate Contract; For Contracts of value more than Rs.5 lakhs, but less than Rs.20 lakhs; Registration in appropriate class is required; There are no other qualification requirements to be satisfied except that of available tender capacity; Single cover as per KTPP Act and Rules; No Price Adjustment; No specific provision for settlement of disputes which by default goes to Courts of Law.

12 12 Standard Tender Documents – K/W-2 For simple works – Item Rate; For contracts of value more than Rs.20 lakhs, but less than Rs.50 lakhs; Minimum qualification criteria along with the criteria for available tender capacity specified; Single cover as KTPP Act and Rules; No Price Adjustment, No Joint Venture; No specific provision for settlement of disputes which by default goes to Courts of Law.

13 13 Standard Tender Documents – K/W-3 For works of value more than Rs.50 lakhs, but less than Rs100 lakhs; Item Rate Contract; Two cover tender system as per KTPP Act and Rules; Minimum qualification criteria along with the criteria for available tender capacity specified; No Price Adjustment, No Joint Venture; No specific provision for settlement of disputes which by default goes to Courts of Law.

14 14 Standard Tender Documents – K/W-4 For works of value more than Rs.100 lakhs, but less than Rs1000 lakhs; Item Rate Contract; Two cover tender system as per KTPP Act and Rules; Minimum qualification criteria along with the criteria for available tender capacity specified; Provision for Price Adjustment, No Joint Venture; Arbitration as per Arbitration and Conciliation Act of India.

15 15 Standard Tender Documents – K/W-5 Pre-qualification document for normal works of value more than Rs10 crores or 100 M; Minimum qualification criteria specified, available tender capacity to be checked. Threshold for other works may be appropriately fixed by HODs/MDs of PSUs depending on the nature of the works Joint Venture not Permitted.

16 16 Standard Tender Document – K/W-6 Pre-qualification document for normal works of value more than Rs.10 crores or Rs.100 M; Minimum qualification criteria specified, available tender capacity to be checked; Threshold for other works may be appropriately fixed by HODs/MDs of PSUs depending on the nature of the works; Joint Venture permitted

17 17 Standard Tender Documents – yet to be prepared Works estimated to cost more than Rs.10 crores; Tenders from pre-qualified firms; BOO, BOT and BOOT documents


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