1. UNDERSTANDING THE IMPORTANCE TENDER DOCUMENTS

2. PRESENTION OUTLINE Introduction: Problems to be circumvented
Keeping in mind what is to make a good contact
The List of Tender Documents
Arrangement of Sections
Some of the Important Clauses
Technical Specifications
Schedule of Requirements
Price Schedule (s)
Standard Forms

3. DEFINITIONS
“Standard” means a level of quality or excellence that is accepted as the norm or by which actual attainments are judged
“Tender” means an offer in writing by a tenderer to supply at a price goods, services or works, pursuant to an invitation to tender by a procuring entity
“Tender Documents” means the documents provided by the procuring entity to tenderers as a basis for preparation of their tenders
“Standard Tender Documents” means the documents prepared in a level of quality determined by PPOA, and distributed to PE’s for the purpose of customization and providing them to tenderers as a basis for preparation of their tenders

4. STANDARD TENDER DOCUMENTS
Why Standard Documents?
Applicable Law
To avoid misinterpretation of obligations
Suppliers Bidding Strategy
Supplier proposing a low price only to win the contract and seek variances once the contact is signed
Change of ownership of management
The company sold to a third party
The level of trust and or evaluated capability may change
Changed circumstances
Example: Drastic economic changes beyond the control of the parties.

5. Why Standard Documents?
Currency fluctuation
May affect cash flow of the parties
May result to non-performance
Delays
The supplier not able to avail goods
In time at required place.
Dominance
Purchaser or supplier dictating terms to either party. Incomplete or incorrect specifications
Language
Parties all thinking erroneously that they understand what was intended.

6. What to keep in mind Know what you what to obtain and what to avoid
Know what your option are when things go wrong.
Know your suppliers
Seek references if you do know them
Create a win-win situation by envisaging a longer term relationship
Do not allow someone to promise what you suspect cannot be accomplished.
E.g.: Allowing unverified qualification or capability
Avoiding ambiguous terms
Ambiguity leads to misinterpretations and disagreements

7. Keeping technology in mind
What to Keep in mind
Keeping technology in mind
Leave your options open as much and as long as possible
Keeps industrial and intellectual property in mind
E.g. ensuring that knowledge developed in programs remain the property of the company.
Or you are accorded protection by the supplier acting as an agent against prosecution by patent right holder
Have a clear dispute resolution clause to let all parties know the procedures for getting relief or remedy if something goes wrong. Part of risk management

8. Thinking of consequences of that termination
What to Keep in mind
Having clear termination clause
Thinking of consequences of that termination
E.g. return of proprietary documentation
Avoid clauses that foresee termination by agreement.

9. Standard Tender Documents
Standard tender document for design construction, supply, installation, testing commissioning and handing over of plant/project (turnkey project.)
Standard tender document for supply installation and commissioning of plant and equipment.
Standard tender document for prequalification of procurement candidates/suppliers.
Standard tender document for procurement of works (Roads, Bridges, Water and other Civil Engineering works).
Standard tender document for procurement of works (small works)

10. THE PUBLIC PROCUREMENT PROCESS
6. Standard tender document for procurement of Works (Buildings and associated civil engineering Works)
7. Standard tender document for procurement of works. (Electrical and mechanical works)
8. Standard tender document for procurement of goods. Standard tender document for procurement of insurance services
Standard tender document for procurement of services

11. THE PUBLIC PROCUREMENT PROCESS
Standard tender document for letting, leasing, licensing, tenancy, franchise and management contracting.
Standard request for proposals (RFP) (Selection of consultants)
Standard tender document for Request for Proposals (RFP) (selection of individual professional consultants
Standard tender document for sale of boarded stores and equipment.
The standard tender documents are usually customized by purchasers.

12. ARRANGEMENT OF SECTIONS
General arrangement of the standard tender documents:
The cover (To be customized by Procuring entities(
Introduction (Information to PEs about the document)
Section I: Invitation to tender
Section II: Instructions to tenderers
Section III – General conditions of contract
Section IV – Special conditions of contract

13. ARRANGEMENT OF SECTIONS
Section V – Technical Specifications/Scope of Works /TOR
Section VI – Schedule of Requirements
-Section VII- Price Schedule
Section VIII –Standard Forms

14. Section I: Invitation to Tender
Instruction to bidders on procedures for submission of bids
Desirable goods or works to be procured
Criteria for evaluation of bids
Definitions of conditions of the proposed contract
Clear information to enable tender decide to tender or not.
Any other tender requirements.

15. Section II: Instructions to Bidders
Important clauses:
Eligible Tenderer
Eligible goods
Cost of tendering
Contents of tender document
Clarification of tender documents
Amendment of tender document

16. Section II: Instructions to Bidders cont’d
Language of tender
Documents compromising of tender
Instruction on how to complete Tender forms
Tender prices( with or excluding TAX, Incoterms)
Tender currencies (Multi-currency or single Currency

17. Section II: Instructions to Bidders Cont’d
Tenderer’s qualifications
Tender security/tender securing declaration
Validity of tender
Format of signing of contract
Sealing and marking of tenders
Deadline for submission of tender
Notification and withdrawal of tender
Opening of tenders
Clarification of tenders

18. Section II: Instructions to Bidders
Evaluation of Tenders and Award of contract
Preliminary examination
Technical Evaluation
Financial Evaluation
Conversions to single currency ( for multiple-currency tenders)
Award of contract and Communication to bidders
Signing of contract

19. Section II: Instructions to Bidders
Procuring entity’s right to vary quantity
Procuring entity's right to accept or reject any or all tenders
Performance Security.
Caution on corrupt or fraudulent practices (Declaration form to be completed)

20. Section III :General Conditions of Contract
Not be amended-Clarification under Special Conditions of Contract section
Definitions (terms and Acronyms)
Applicable law, Country of origin and Standards
Patent right (Contractor to indemnify PE against third party claims of infringement)
Inspection and tests and Insurance( can be clarified through INCOTERMS)

21. Section III :General Conditions of Contract
Payments (terms and duration e.t.c) and Prices (include issues regarding conditions for variations, adjustments)
Assignments to other parties ( no assigning of obligation without PEs consent)
Sub-contracts( conditions for engagements) and Termination of contract

22. Section III :General Conditions Of Contract cont’d
Liquidated damages
Resolution of disputes
Governing Language
Force majoure

23. Section IV: Special Conditions of Contract
To be prepared by the procuring entity
Should not contradict the general conditions of contracts
They complement the general conditions of contracts
The General and Special conditions of contract will become the conditions of the contract when it is finally signed

24. Section V-Technical Specifications
To include but not limited to;
Scope of works .Bill of Materials. Quantities( for works or services as appropriate)
Terms of Reference (for Request for Proposals)
Drawings( for works)
Testing /Inspection (works and goods)
Standards (National/International)
Accepted Quality Levels
Note: Specifications to be performance based preferably (No restrictive titles)

25. Section VI – Schedule of Requirements
Brief Description of Requirements
Quantity( may be as and when required or fixed)
Delivery Schedule (shipment) e.g. selected Incoterms.
Note: The starting delivery date will be specified
That date should either be the date of the contract award or date of contract signature
Or the date of opening of letter of credit
Or the date of confirmation of Letter of Credit

26. Section VII-Price Schedule (s)
Contains:
Item
Description
Country of Origin
Quantity
Unit Price
Total Amount
INCOTERM e.g. CIF,CFR,EXW, e.t.c

27. Section VIII – Standard Forms
Form of tender
Confidential Business Questionnaire Form
Tender Security Form
Contract Form
Performance Security form
Bank Guarantee for Advance payment
Manufacturer’s Authorization form
Declaration form

28. BENEFITS OF STD’s
Promotes harmonization and standardization of procurement practices
Facilitates a uniform understanding among practitioners and end-users of the their rights and obligations
Promotes increased capacity by promulgating best practices and facilitating predictability in procurement proceedings
Enhances and promotes transparency

29. BENEFITS OF STD’s
Clarity of tender requirements-provides information that enables procuring entities to achieve value for money in a procurement process
Helps to avoid/minimizes cost overruns/variation orders
Avoids/minimizes disputes in Contract Administration -delayed projects
Flexibility -Allows PE to customize the bid documents and state all conditions of the tender
Helps to minimize risk in public procurement
Ensures award to lowest evaluated bidder

30. Thank You and God Bless