Procurement of Smaller Works

8/10/2019 Procurement of Smaller Works

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User Guide

Procurement ofSmaller Works

National Competitive Bidding

Public Procurement Regulatory AuthorityP.O. Box 49,

Dar es Salaam.

July, 2007


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Table of Contents Acronyms..............................................................................................................................................iii1.0 Guidance Notes on the use of the Standard Bidding Document and User Guide ........... 11.1 Purpose of the Standard Bidding Document. 11.2 Purpose of the User Guide 11.3 When to Use the Standard Bidding Document for Smaller Works for Lump Sum.. 21.4 Structure of the Standard Bidding Document 21.5 Availability of electronic Standard Bidding Documents.. 61.6 Customizing Standard Bidding Document 71.7 How to Draft an individual Bidding Document 71.8 Rules for drafting Bidding Documents... 82.0 Summary of the Bidding Process ..................................... ........................................... ........... 112.1 Legal Framework...................... ........................................... ........... 112.2 Selection of Method of Procurement 112.3 Preparation and Issue of Bidding Documents. 122.4 Bidding Period and Bid Receipt. 122.5 Bid Opening.. 132.6 Bid Evaluation.. 132.7 Bid Acceptance, Contract Award and Contract Coming into Force. 143.0 Guidance Notes for the preparation of Invitation for Bids ............................................ .... 164.0 Guidance Notes on Instructions to Bidders.. 205.0 Guidance Notes on Bid Data Sheet ..................................... ........................................... ........216.0 Guidance Notes on General Conditions of Contract......................................... .................. 287.0 Guidance Notes on Special Conditions of Contract .......................................... .................. 298.0 Guidance Notes on Specifications ........................................... ........................................... .... 359.0 Guidance Notes on the Drawings ........................................... ........................................... .... 3710.0 Guidance Notes on Bills of Quantities.............. ............................................ ......................... 3811.0 Guidance Notes on the Preparation of Forms - Bid................. ....................................... .... 4011.1 Form of Bid and Appendix to Bid................................... ....................................... ............... 4111.2 Form of Qualification Information............................................. ......................................... .. 47

11.3 Standard Form of Letter of Acceptance............................................... ................................. 5211.4 Standard Form of Agreement .......................................... ........................................... ........... 5511.5 Guidance Notes on the Preparation of Securities ...................................... ......................... 5612.0 Undertaking by Bidder on Anti-Bribery Policy/Code of Conduct and

Compliance Programme ....................................... ........................................... ...................... 63


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Acronyms

Act Public Procurement Act 2004

BOQ Bill of Quantities

DRG Drawings

GCC General Conditions of Contract

ITB Instructions to Bidders

PE Procuring Entity

PMU Procurement Management Unit

PPAA Public Procurement Appeal Authority

PPRA Public Procurement and Regulatory Authority

Regulations Public Procurement Regulations

SCC Special Conditions of Contract

SPECS Specifications

SBD Standard Bidding Document

TD Bidding Document

BDS Bid Data Sheet


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1.0 Guidance Notes on the use of the Standard Bidding Documentand User Guide

1.1 Purpose of the Standard Bidding DocumentThe purpose of the SBD is to provide Procuring Entities with one common

standard draft containing basic contractual provisions and safeguards which arerequired by the Government of Tanzania in the execution of public procurementand the use of public funds.

The Standard Bidding Document for the Procurement of Smaller Works has beendesigned to:

(i) simplify the drafting of a specific Bidding document for Procurement ofSmaller Works by Procurement Management Units;

(ii) minimize the time required by the Tender Boards to approve BiddingDocuments prior to release.

(iii) reduce Bidders time and effort in the preparation of Bids; and(iv) facilitate and simplify the evaluation and comparison of Bids and

Contract award; by the Procuring Entity.

The key feature of the SBD is that it can be used with minimum changes, as itdoes not contain explanations, footnotes or examples that should not form part ofthe Bidding Document. The SBDs contain completion notes only for Bidders;these are primarily in the Bidding Forms. This User Guide contains all theexplanations and notes necessary for PEs to use the SBDs.

1.2 Purpose of the User GuideThis User Guide has been prepared to provide guidance to public officials in thecorrect use of the Standard Bidding Document (SBD) for Smaller Works as amodel for preparing an individual Bidding Document.

Users should ensure that the correct User Guide is referred to. Different UserGuides have been produced for each SBD including those for the Procurement ofgoods and works. Users should refer to the header and footer of each page of theUser Guide to ascertain this.

The User Guide is not legally binding but Procuring Entities must comply at all

times with the Public Procurement Act and Regulations.Guidance notes intended for Bides (or Financial Institutions) are included in theSBD itself mainly in Section VIII. All such notes are found between squarebrackets in italics e.g. [ insert name of ..]. These guidance notes should not bedeleted from the Bidding Document when drafting.

This User Guide contains guidance notes for Procuring Entities in the use of theSBD and how to complete and issue the SBDs. Such notes are shown betweensquare brackets in italic; e.g. [insert general description of Services]. Where


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recommended or suggested wording or text is provided this is shown betweeninverted commas e.g. Documentation requirements are:

The User Guide is not intended for issue with the Bidding Document and is notpart of the Bidding Document.

1.3 When to Use the Standard Bidding Document for Smaller Works for Lump Sum

1.3.1 Procurement MethodThis SBD for the Procurement of Smaller Works is suitable for use under Open orNational Bidding method of procurement with or without pre-qualification. It isalso suitable for the Restricted National Bidding methods of procurement.

The SBD may also be used for procurement under the Direct Procurementmethod with appropriate modifications to the documents.

1.3.2 Scope and Type of ContractThe SBD is suitable for any scope of intended contract where the services are pre-defined and the period of the Services are fixed enabling a total lump sumamount to be calculated representing the total amount payable under theContract. This document is the only SBD for Smaller Works, as time basedcontracts would not normally be appropriate for Smaller Works.

1.4 Structure of the Standard Bidding DocumentThe SBD is divided into ten separate Sections and a Preface. Procuring Entitiesare required to use all Sections of the Standard Bidding Document to produce anindividual Bidding Document for issue to Bidders. The Standard BiddingDocument comprises:

a) Section I: Invitation for Bids

This section provides relevant information that enables potential Bidders todecide whether or not to participate in the Bid process. The Invitation forBids should also include, specific details such as the name of the ProcuringEntity and address for Bid submission, scope of service to be provided,deadline for Bid submission. Likewise information on how the Biddingdocuments are to be obtained by prospective Bidders and the minimumlevel of experience required by Bidders to be eligible should be furnished inthe Invitation for Bids. The final document should contain neither blankspaces nor options.


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b) Section II: Instruction to Bidders

This section provides relevant information to help Bidders prepareresponsive Bids in accordance with the requirements of the Procuring

Entity. It also provides information on the submission, opening andevaluation of Bids, the award of contracts and on submitting complaintsregarding the Bid process. This section contains provisions that are to beused without modification. The Instructions to Bidders will not be part ofthe Contract and will cease to have effect once the Contract is signed.

c) Section III: Bid Data Sheet

This section consists of provisions that are specific to each procurement andthat supplement the information or requirements included in section II Instructions to Bidders. Amendments, if any, to the Instructions to Bidders

should be made through the Bid Data Sheet (BDS). If duplication of a subjectis inevitable in the different sections of the document, care must be exercisedto avoid contradiction between clauses dealing with the same matter.

d) Section IV: General Conditions of Contract

This section contains the general clauses to be applied to all contracts. TheGeneral Conditions of Contract form a complete document expressing allthe rights and obligations of the parties during the execution of the contract.The text of the clauses in this section shall not be modified.

e) Section V: Special Conditions of Contract

This section contains clauses specific to each contract that modify orsupplement Section IV General Conditions of Contract. Amendments, ifany, to the General Conditions of Contract, should be made through theSpecial Conditions of Contract. The Special Conditions of Contract shouldbe filled out by the Procuring Entity prior to issuance of the Biddingdocuments.

f) Section VI: Specifications

This section should be completed with details of the requirement by the

Procuring Entity. The specifications must be provided by the ProcuringEntity prior to the issuance of the bidding documents.

g) Section VII: Drawings

This section contains the list of drawings that describe the works and relatedservices to be provided. The drawings should be prepared and furnished bythe Procuring Entity prior to the issuance of the bidding documents.


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h) Section VIII: Bill of Quantities (BoQs)

This section contains the description of the various elements of the works inthe form o f Bill of Quantities. The Bill of Quantities should be prepared and

be furnished by the Procuring Entity prior to the issuance of the biddingdocuments.

i) Section VIII: Bid Forms

This section provides the Form of Bid and Appendix to Bid which must befilled out by each Bidder and Qualification Information which must beprovided by each Bidder. In addition this section contains a Standard Formof Letter of Acceptance which will be issued by the Employer to thesuccessful Bidder and a Standard Form of Contract which will be signed bythe Employer and the successful Bidder at a later stage.

j) Section IX: Security Forms

This section contains the security forms for the Bid security, Bid securingdeclaration, performance security, and advance payment security. The Bidsecurity or Bid securing declaration, where required, must be furnished byeach Bidder while the performance security and advance payment security,where required, should be furnished by the successful Bidder only.

k) Section X. Undertaking by Bidder on Anti - Bribery Policy / Code ofConduct and Compliance Program.

This section contains the undertaking to be made by each Bidder on anti-bribery policy/code of conduct and compliance program. Each Bidder mustsubmit, together with its Bid a statement as provided for under this section.Bids which do not conform to the requirements under this section shall notbe considered. The text of this section shall not be modified.

Care should be taken to check the relevance of the provisions of the SBD againstthe requirements of the specific services to be procured. The following generaldirections should be observed when using the documents. In addition, eachsection is prepared with notes intended only as information for the Procuring

Entity or the person drafting the Bidding documents. They shall not be includedin the final documents, except for the notes introducing Section VIII, Forms,where the information is useful for the Bidder.

(i) Specific details, such as the name of the Procuring Entity and addressfor Bid submission, should be furnished in the Invitation for Bids, in theBid Data Sheet, and in the Special Conditions of Contract. The finaldocuments should contain neither blank spaces nor options.


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ii) Amendments, if any, to the Instructions to Bidders and to the General

Conditions of Contract should be made through the Bid Data Sheet andthe Special Conditions of Contract, respectively.

iii) Footnotes or notes in italics included in the Invitation for Bids, Bid DataSheet, Special Conditions of Contract, and in the Schedule of Requirementsare not part of the text of the document, although they contain instructionsthat the Procuring Entity should strictly follow. The final documentsshould contain no footnotes.

iv) The criteria for Bid evaluation and the various methods of evaluation inthe Instructions to Bidders should be carefully reviewed. Only those thatare selected to be used for the procurement in question should be retainedand expanded, as required, in the Bid Data Sheet or in the TechnicalSpecifications, as appropriate. The criteria that are not applicable shouldbe deleted from the Bid Data Sheet.

v) Clauses included in the Special Conditions of Contract are illustrative ofthe provisions that should be drafted specifically by the Procuring Entityfor each procurement.

vi) The forms provided in Section VIII should be completed by the Bidders orthe Supplier; the footnotes in these forms should remain, since theycontain instructions which the Bidder or the Supplier should follow.

The Public Procurement Regulatory Authority welcomes any feedback or

experience from the use of this Bidding documents from Bidders and others aswell.


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1.5 Availability of electronic Standard Bidding Documents1.5.1 General

All Standard Bidding Document are issued electronically by the PPRA on CD ROM.The CD ROM contains the following main directories:

Goods with the following sub -directory Goods Healthy Sector Goods Frame works Contracts

Supply and installation of Plant and Equipment Works with the following sub -directory

Smaller Works Medium and Larger Works

Non Consultant Services Consultant Services

The Smaller Works sub-directory contains the following Microsoft Word documentfiles:

SWK-IFT.doc SWK -ITB.doc SWK -BDS.doc SWK -GCC.doc SWK -SCC.doc SWK -SPECS.doc SWK -DRG.doc SWK -BOQ.doc SWK -FORMS.doc FORMS BID.doc

FORMS SECURITY.doc SWK -INTEGRITY.doc

Each file corresponds to the section of the SBD removing the difficulties of draftinglong documents. Collation of the Sections is accomplished by reading the Preface (5pages) and manually inserting the relevant Sections into each Part of the Prefacepages.


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This User Guide is also contained in this Directory but is not intended for issue toBidders as part of the Standard Bidding Document.

1.6 Customizing Standard Bidding Document

The PPRA issues Standard Bidding Document to all Procuring Entities. On receiptof these SBDs, the PE is permitted to customise the SBDs for use by its PMU. Theareas that require customisation by the PE are shown in curly brackets e.g. {Insertname and logo of Procuring Entity}. This customisation should be a one off functionto enter on the master SBD the following details prior to general issue and usewithin the PE;

- the entry of the Procuring Entitys contact details (e.g name, address,telephone and fax numbers, email address etc) that will not change;

- the addition of any official logo or any other form of identification of the PE.

When customising documents, a PE shall not alter or amend the content orsubstance of the standard documentation, including the style and format of thedocuments, without the prior written approval of the Authority.

The customised standard documents shall be approved by the Tender Board for useby the Procuring Entity. The customised standard documents should be availablefrom the Procurement Management Unit.

The customised standard documents shall be used for drafting documents forindividual procurement requirements.

The users of the SBDs should understand that:

Drafting means the process of modifying customised standard

documentation to make it suitable for a particularprocurement or disposal requirement.

Customisation means the process of completing identification details in thestandard documentation issued by the Authority to make itsuitable for drafting by the procuring entity;

1.7 How to Draft an individual Bidding DocumentProcuring Entities are advised always to use the original customized StandardBidding Document to commence drafting a new Bidding Document for each newprocurement requirement. Once customized, the original SBD should not beamended in any way.

When drafting an individual Bidding Document, the first task therefore is toelectronically copy the contents of the SBD directory into a new electronic directory.It is recommended that the new directory is given a name including the uniquenumber from the procurement reference number as shown in the procurement planand a relevant description e.g. P0012006/07 Construction of Works. This newdirectory will be the working directory for the individual Bidding Document and its


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files can be amended to suit the individual requirement. The User Guide does notneed to be copied to the new directory, as it does not form part of the BiddingDocument.

An example of the directory structure is shown below:

P0012006/07 Construction of Works. SWK- COVER PAGE AND PREFACE.doc SWK -IFT.doc SWK -ITB.doc SWK -BDS.doc SWK -GCC.doc SWK -SCC.doc SWK-SPECS.doc

SWK -DWG.doc SWK -BOQ.doc SWK -FORMS.doc

FORMS BID.doc FORMS SECURITY.doc

SWK -INTEGRITY.doc

P0012006/07 Construction of WorksComprising files SWK COVER PAGE AND PREFACE.docto SWK -INTEGRITY.doc

Once the original SBD has been copied to become the individual Bidding Document,the relevant sections can be amended in accordance with the rules below and theguidance notes on each section contained in this User Guide.

1.8 Rules for drafting Bidding Documents

The SBDs have been designed to require the minimum of input or changes to thedocument so that a final Bidding Document can be produced with minimum time andeffort.

Most importantly the provisions in

Section II Instructions to Bidders and

Section IV General Conditions of Contract

must be used with their text unchanged .


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Any data or information that Sections II or IV require are to be included respectivelyin

Section III Bid Data Sheet and

Section V Special Conditions of Contract.

Data and information contained in the remaining Sections should be modified asfollows:

Section VI Specifications:

This Section should be completed with details of the requirementby the Procuring Entity. The specifications must be provided by theProcuring Entity prior to the issuance of the Bidding documents.

Section VII Drawings:

This section contains the list of drawings that describe the worksand related services to be provided. The drawings should beprepared and furnished by the Procuring Entity prior to theissuance of the Bidding documents.

Section VIII BOQ:

This section contains the description of the various elements of theworks in the form of Bill of Quantities. The Bill of Quantitiesshould be prepared and be furnished by the Procuring Entityprior to the issuance of the Bidding documents.

Section IX Forms of Bid: The Form of Bid, Appendix to Bid and theForm of Qualification Information in this Section should becompleted by the Bidder. No changes to these standard formsshould be made by the PE.

Letter of Acceptance should be filled in and sent to thesuccessful Bidder only after evaluation of Bids has beencompleted, subject to any review by the appropriate approvingauthorities.

Form of Agreement should be included in the BiddingDocument, but details need not be completed until after thecontract award stage, when it will be signed by the Employer andthe successful Bidder.

Section X Security Forms: The Bid Security or Bid SecuringDeclaration , where required, must be furnished by each Bidder.

Performance Security and Advance Payment Guarantee ,where required, should be furnished by the successful Bidderonly.


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Section XI Undertaking by Bidder on Anti - Bribery Policy / Code ofConduct and Compliance Program: This Section should becompleted, signed and submitted together with the Bid by eachBidder without modifying the text.

This User Guide contains a section corresponding to each section of the SBD. It also

includes an initial section on how to prepare the Bid Notice or Invitation for Bidsletter.

In drafting Bidding Documents using the SBDs, Users should not:

a) delete any Section or page breaks,

b) make any changes to the headers of the SBD, or

c) make any changes to the footers of the SBD.

In order to avoid deleting any section or page breaks, you should ensure that theShow All command is switched on, so that the section and page breaks can be seenon screen. The Show All command is shown by an icon with the following symbol:

.If this icon does not appear on your screen, you can add it by using the followingcommands: click on Tools menu, click on Customize, select the Commands tab, selectthe View category and scroll to find the Show All command. Add the icon bydragging it onto your toolbar.


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2.0 Summary of the Bidding ProcessThe Act and Regulations detail the full procurement processes, rules andprocedures and the procurement methods to be followed by Procuring Entities. TheAct and Regulations must be complied with at all times.

The relevant parts of the Bidding process are summarized here as follows:

a) Selection of Method of Procurement

b) Preparation and Issue of Bidding Documents;

c) Bidding Period and Bid Receipt;

d) Bid Opening;

e) Bid Evaluation; and

f) Bid Acceptance, Contract Award.

2.2 Selection of Method of ProcurementThe method for selection of Bidders will depend on the procurement method beingused and whether or not a pre-qualification has been conducted.

Where Open (National or International) Bidding without pre-qualification isused, the PE must publish a Bid Notice, so that Bidding is open to all interestedBidders. This must use the standard format provided in the Regulations. Guidancenotes on completing the Bid Notice are included later in this User Guide. The BidNotice must be approved by the Tender Board before publication.

The notice must be published in at least one widely read national newspaper or a

publication of wide international circulation, depending on whether Bidding isnational or international. It must also be displayed on the Authoritys website andon the PEs own notice board.

PEs must comply with the minimum advertising period given in the Regulationsbefore the issue of bidding documents. They should also ensure that Biddingdocuments are finalised and approved before publishing the Bid Notice, to avoidany delays in the process.

Where Open National Bidding with pre-qualification is used, the Bidders invitedwill be those selected during the pre-qualification process. There is therefore noneed to publish a Bid Notice, but the Bidding document should be accompanied by

an invitation to Bid letter. A sample letter and guidance notes on completing it areincluded later in this User Guide. The letter should be approved by the TenderBoard, at the same time as the Bidding document.

Where Restricted National Bidding is used, the Bidders invited will be thoseincluded on the shortlist. There is therefore no need to publish a Bid Notice, but theBidding document should be accompanied by an invitation to Bid letter. A sampleletter and guidance notes on completing it are included later in this User Guide. The


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letter should be approved by the Tender Board, at the same time as the Biddingdocument.

The shortlist must be developed in accordance with the Regulations and includesufficient Bidders to ensure effective competition. The shortlist must be approvedby the Tender Board before issue of the Bidding documents.

2.3 Preparation and Issue of Bidding DocumentsThe Procurement Management Unit is responsible for the preparation and issue ofthe Bidding Document.

The Procuring Entity must use the appropriate SBD issued by the PPRA, as this is amandatory requirement for contracts to be funded by the Government of Tanzania.

In deciding the deadline for Bid submission the Procuring Entity shall allow Bidderssufficient time for obtaining and studying the Bidding Document, preparing

complete and responsive Bids and submitting the Bids. Procuring and DisposingEntities are required to comply with the minimum Bidding periods given in theRegulations.

Where a Bid Notice has been published, the PE must issue Bidding Documentspromptly to all Bidders who request them and pay any required fees. A record mustbe kept of the Bidders to whom Bidding Documents have been issued. Receiptsmust be issued for all fees paid.

Where the Bidding Document is issued to pre-qualified or short-listed Bidders, thedocuments must be issued to all Bidders at the same time and must be issued earlyenough to ensure compliance with the minimum Bidding period given in theRegulations. A record must be kept of the issue of all Bidding documents.

2.4 Bidding Period and Bid ReceiptThe Bidder is responsible for Bid preparation and the submission of its Bid. Duringthe Bidding period, the Procuring Entity shall:

a) Hold any pre Bid meeting and issue minutes promptly;

b) Promptly respond to requests for clarifications from Bidders;

c) Amend the Bidding Documents if necessary (only with the Tender

Boards prior approval);d) Receive and record sealed Bids from Bidders or make a Bid Box

available up to the deadline for Bid submission as required by theRegulations;

e) Close Bidding at the precise date and time of the deadline and ensurethat no late Bids are received;

f) Keep all Bids received secure until the time for Bid opening.


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2.5 Bid OpeningThe Procuring Entity is responsible for the Bid Opening, which is a critical event inthe Bidding process. The Secretary of the Tender Board (accompanied by a TenderBoard member to witness proceedings) will conduct the Bid Opening. ProcuringEntity staff must be aware that inappropriate procedures at Bid Opening are usually

irreversible and may require cancellation of the Bidding Process, with theconsequent delays and waste of time and resources. The Bid Opening must followthe rules and procedures given in the Regulations and the SBD.

2.5.1 Best Bid-Opening Practices to Observe

The Procuring Entity, in observance of the Regulations and best practices, shall: Conduct the Bid Opening strictly following the procedures specified in the

ITB Clause 25 for all Bids received on or prior to the date and time of the Bidsubmission deadline. The term Bid Opening can be misleading because a

Bid for which a Bid Withdrawal or Substitution notice was received on timeshall not be opened, but returned unopened to the Bidder. The sequence inwhich Bids are handled and opened is crucial.

Ensure that all Bids that were received on time are accounted for, beforestarting the Bid Opening, as Bids that are not opened and read out at BidOpening shall not be further considered.

Not reject any Bid at Bid Opening, except for late Bids received after thedate and time of Bid submission deadline. Technically, late Bids should notreach the Bid Opening, but in certain cases a Bidder may attempt to submitits Bid at the Bid Opening place after the deadline.

In accordance with the provisions of ITB Clause 25, The Procuring Entityshall verify at the Bid Opening the existence of the documentationconfirming the validity of a Bid withdrawal or Bid modification orsubstitution. A withdrawn Bid shall not be opened and in consequence notread out and, therefore, they shall not be further considered by theProcuring Entity. Similarly, a Bid replacement shall be opened and read outto replace a Bid that was received on time. This also applies to the financialBid opening.

2.6 Bid EvaluationThe Evaluation Committee is responsible for the evaluation of all Bids received. Inappointing an Evaluation Committee, the Procuring Entity must remember thatmistakes committed at Bid evaluation may later prompt complaints from Bidders,requiring re-evaluation of the Bids, with the consequent delays and waste of timeand resources.

The Procuring Entity, in observance of the Regulations and best practices, shall:


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Maintain the Bid evaluation process strictly confidential; Reject any attempts or pressures to distort the outcome of the evaluation,

including fraud and corruption; Strictly apply only and all of the evaluation and qualification criteria

specified in the Bidding Documents to determine the Lowest EvaluatedBidder and to make a recommendation for award of contract to the TenderBoard. (The Evaluation Report may recommend also that negotiations beheld with the recommended Bidder).

Conduct any negotiations recommended in the Evaluation Report.

Upon completion of the Bid Evaluation, and any negotiations, the Tender Boardshall be requested to make a Contract Award decision. It is important to note that aContract Award decision is not a contract, but a decision to award a contract to theLowest Evaluated Bidder.

2.7 Bid Acceptance, Contract Award and Contract Coming into ForceBid acceptance, award and contract coming into force (placement) can be confusingfor both parties if there is not a precise and specified procedure for award ofcontracts. The procedure specified in the Regulations provides a sequence of eventsbased on the need to recognize Bidders rights to appeal against the conduct of theevaluation and the need for a contract to be in force as soon as is practical after adecision to award has been approved. The following procedure is required underthe Regulations:

The Tender Board approves an Evaluation Report (and the result of any

negotiations) and in doing so makes a contract award decision. The Procuring Entity will notify of the award to the Bidder whose Bid has

been accepted in accordance with the ITB Clause 39 and the notice ofacceptance of the Bid shall be given by the Procuring Entity promptly to theSupplier, Contractor or Consultant who submitted the Bid, offer orproposal.

A contract may come into force by:

(i) issuing a Letter of Acceptance followed (and confirmed by a ContractDocument), or

(ii) issuing a Contract Document without a Letter of Acceptance havingbeen issued first.

Contract formation occurs either at the issue of a Letter of Bid Acceptance describedin sub paragraph (i) above, or the issue of a Contract Document described in subparagraph (ii) above.

Procuring Entities should note that the Letter of Acceptance or the ContractDocument should not contain any provisions or conditions which vary from thosein the Bidding Document, or the Bidders Bid, or any subsequent clarifications or


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negotiations. Any such modifications should be agreed by the Bidder in writingbefore a contract award decision is made.

Procuring Entities should note that there is no provision for a Letter of Intent toPlace a Contract as there is much legal ambiguity surrounding the use of suchdocuments.

The Contract Document includes the Form of Agreement contained in Section VIIIof the Bidding Document and it is at the stage of contract award that the Agreementform can be completed with details of the successful Bidder.


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3.0 Guidance Notes for the preparation of Invitation for Bids

The Invitation for Bids (see Regulation 80 of the Public Procurement (Goods, Works,Non-Consultant Services and Disposal of Public Assets by Tender) Regulations,

2005 - Government Notice No. 97 of 15th

April, 2005) shall be issued as:-

(a) an advertisement at least twice in one or more newspapers of nationalwide circulation 1

(b) a letter addressed to interested contractors who, following thepublication of the General Procurement Notice, have expressed interest inBidding for the Works.

Its purpose is to supply information to enable potential Bidders to decide on theirparticipation. Apart from the essential items listed in the sample documents, the

Invitation for Bids should also indicate any important or unusual Bid evaluationcriteria (for example, the application of a margin of preference or exclusivepreference in Bid evaluation).

If pre-qualification is used, the above notifications advertise a Request for Pre-qualification. After the pre-qualification process, only the pre-qualified applicantswill receive the Invitation for Bids.

The Invitation for Bids may be incorporated in the Bidding documents merely forthe record, or it may be omitted. In either event, the information contained in theInvitation for Bids should conform to the Bidding documents, and in particular, to

the relevant information in the Bid Data Sheet and Special Conditions of Contract .


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[ Insert Name of Procuring Entity ]

[ Insert logo ]

Bid No. .for

[ Insert title or brief description of the works ]

Invitation for Bids

Date: .

1. This Invitation for Bids follows the General Procurement Notice for thisProject which appeared in [ insert media] Issue no.[ insert the issue No] dated[insert dates of issue of GPN ]1.

2. The Government of Tanzania has set aside funds for the operation of the[insert the name procuring entity] during the financial year ( insert the year under financing). It is intended that part of the proceeds of the fund will be used tocover eligible payment under the contract for the [ insert the name of thecontract]

orThe [ insert name of Procuring Entity ] has received/has applied for/intends toapply for a [ loan/credit /grant ] from the [ name of financing institution ] towardsthe cost of [ insert name of project], and it intends to apply part of the proceedsof this [loan/credit/grant] to cover eligible payments under the contract for[insert name. of the contract]2.

3. The [Insert the name of the procuring entity ] now invites sealed Bids fromeligible[ insert National if exclusive preference is applicable) contractorsregistered in (Insert Classes of the contractor) for construction of [ insert briefdescription of the works to be procured]3

1 Day, month, year; for example, 30 th July 2005. This should be skipped where no GPN was issued. 2 [Insert if applicable]. Occasionally, Contracts may be financed out of special funds that would further restricteligibility to a particular group of member countries. When this is the case, it should be mentioned in thisparagraph. Also indicate any margin of preference that may be granted as specified in the Loan or CreditContract and set forth in the Bidding documents. 3 A brief description of the type(s) of 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 theinvitation. Bidding documents may require Bidders to have specific experience or capabilities; suchrestrictions should also be included in this paragraph.


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4. Bidding will be conducted through the [ insert method of procurement]4

procedures specified in the Public Procurement (Goods, Works, NonConsultant Service and Disposal of Public Assets by Tender) Regulations,2005 Government Notice No. 97 and is open to national Bidders only asdefined in the Regulations 5 unless otherwise stated in the Bid Data Sheet .

5. Interested eligible Bidders may obtain further information from and inspectthe Bidding Documents at the office of the [ Insert the Physical, and postaladdress of the Tender Board Secretary of the procuring entity] from [start and endof working hours] on Mondays to Fridays inclusive except on public holidays.

6. A complete set of Bidding Document(s) in [ insert language of the Bid document]and additional sets may be purchased by interested Bidders on thesubmission of a written application to the address given under paragraph 5above and upon payment of a non-refundable fee 6 of [insert the currency andamount]. Payment should either be by Cash, Bankers Draft, or BankersCheque, payable to [ state organ to which payments are to be made].

7. All Bids must be accompanied by a Bid security 7 [if Bid security is required] inan acceptable form in the amount of [ insert the amount in local currency ] orfreely convertible currencies in case of foreign Bidders.

or

All Bids must be accompanied by a Bid securing declaration 8 in the formatprovided in the Bidding documents.

8. All Bids in one original plus [ Insert the number of copies required9 ], properlyfilled in, and enclosed in plain envelopes must be delivered to the addressbelow [state address at the end of document] at or before [insert time and date] .Bids will be opened promptly thereafter in public and in the presence ofBidders representatives who choose to attend in the opening at the [ insert the physical address of the place for Bid opening]10.

4 Method should be National Competitive Bidding unless justified otherwise.5 Works of value below 1,000,000,000/= Tshs are reserved for national Bidders as per Schedule for of theRegulations;6 The fee, to defray printing and mailing/shipping costs, should be nominal; 7 The amount of Bid security should be stated as a fixed amount or as a percentage between 1 and 3 of the Bidprice. It is recommended using fixed amount in place of a percentage.

8 Bid Securing Declaration shall apply only where Section 50 of PPA 2004 is applicable, that is exclusivepreference to local firms and persons.The limits for application of bid securing declaration shall be the thresholds for project values below whichexclusive preference will be applied as the Fourth Schedule (c) of GN97.

9 Number of copies should range from 3 5. 10 The office for Bid opening may not necessarily be the same as that for inspection or issuance of documents or

for Bid submission. If they differ, each address must appear at the end of paragraph 7 and be numbered; as,for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and


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9. Late Bids, portion of Bids, electronic Bids, Bids not received, Bids not opened

and not read out in public at the Bid opening ceremony shall not be acceptedfor evaluation irrespective of the circumstance.

SECRETARY

[Insert the Tender Board of the procuring entity ]

its address may be specified for submission of Bids, and this location should be as close as possible to theplace where Bids will be opened to shorten the time between Bid submission and Bid opening.


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4.0 Guidance Notes on the Instructions to Bidders (ITB)

This section of the Bidding documents should provide the information necessaryfor Bidders to prepare responsive Bids, in accordance with the requirements of theprocuring entity. It should also give information on Bid submission, opening andevaluation, the award of Contract and how to handle complaints from bidders.

Matters governing the performance of the Bidder, payments under the Contract, ormatters affecting the risks, rights, and obligations of the parties under the Contractshould not be included in this Section, but rather under Section IV, GeneralConditions of Contract, and /or Section V, Special Conditions of Contract. Ifduplication of a subject is inevitable in the different sections of the documents, caremust be exercised to avoid contradiction between clauses dealing with the samematter.

These Instructions to Bidders will not be part of the Contract and will cease to haveeffect once the Contract is signed.


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5.0 Guidance Notes on Bid Data Sheet

This section is intended to assist the Procuring Entity in providing the specificinformation in relation to corresponding clauses in the Instructions to Biddersincluded in Section II, and has to be prepared for each specific procurement.

The Procuring Entity should specify in the Bid Data Sheet information andrequirements specific to the circumstances of the Procuring Entity, the processing ofthe procurement, the applicable rules regarding Bid price and currency, and the Bidevaluation criteria that will apply to the Bids. In preparing Section III, the followingaspects should be checked:

(a) Information that specifies and complements provisions of Section II must beincorporated.

(b) Amendments and/or supplements, if any, to provisions of Section II as

necessitated by the circumstances of the specific procurement, must also beincorporated.


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5.1 Input of Information to be completed by Procuring Entity in the

Section III: Bid Data Sheet (BDS)

BDSClauseNumber

ITBClauseNumber

Amendments of, and Supplements to, Clauses in theInstruction to Bidders

A. Introduction

1. 1.1 The Procuring Entity is [ insert thename of the procuring entity]

2. 1.1 Name of Project is

...[insert name and summary description of the Project]

3. 1.2 The expected completion date of the works is. [insert the expected completion date for the works].

4. 2.1 Name of financing institution is.. [insert name if any]Name of the Procuring is

Financial Year ( Insert FY ).

Describe works under the contracts.

5. 2.2 The loan/ credit number is .[insert number if available].


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6. 3.1 Only Bidders registered as [insert whether Civil Engineering or Building Contractors ] inClass [ insert relevant class of registration] with theContractors Registration Board are eligible.This Bid is: .[indicate whether exclusively reserved for national contractors ornot] 11.

7. 6.3 Pre-Bid meeting will take place at .[insert venue] on .. [insert date and time]

Or

Pre-Bid meeting shall not be held.[Delete whichever is applicable]

8. 6.6 The minutes of the pre-Bid meeting will be transmitted within[state the time]

B. Bidding Documents

9. 7.2 The number of copies to be completed and returned with theBid is [insert number of copies - minimumnumber of copies should be three and maximum should be five].

10. 8.1 Address for clarification of Bidding Document is [ insert fulladdress]

11. 8.2 Period to respond to request for clarification by the ProcuringEntity [insert number of days]

Period prior to deadline for submission of Bids for bidders torequest clarification [insert number of days]

C. Preparation of Bids

12. 10.1 Language of Bid and all correspondence shall be [Insert language]

13. 12.3 Other information or materials required to be completed andsubmitted by Bidders :

a) Copies of original documents defining the constitution orlegal status, place of registration, and principal, place of

11 As per regulations, exclusive reservation applies for projects of not more that 1,000,000,000/=. This is subjectto revision by the Minister of Finance. However, if there are no national contractors who can undertake theworks then exclusive preference shall be waived.


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business; written power of attorney authorizing thesignatory of the Bid to commit the Bidder.

a) The minimum required annual volume of construction workfor the successful Bidder in any of the last 2 years 12 shall be:[Insert figure in the currency specified in].

b) Experience as prime contractor in the construction of at leastone project of a nature and complexity equivalent to theWorks the last 2 years or the period stated in a) above (tocomply with this requirement, works cited should be at least70 percent complete) 13.

c) The essential equipment to be made available for theContract by the successful Bidder (proposals for timelyacquisition or own, lease, hire, etc) shall be:

i) ...(insert).

ii) ...(insert).

iii) ...(insert).

iv) ...(insert).

d) A Site Manager with years experience in works of anequivalent nature and volume. [ insert number of years].

e) Evidence of adequate working capital for this contract.

f) Information regarding litigation, current.................................................................................................

14. 12.4 In the case of joint venture each partner shall submit informationrequired under Clause ITB Clause 12.4. In addition the Biddershall furnish the following ,

a) b) .c) ...

15. 15.4 The price shall be [ insert fixed or adjustable] 14

16. 16.1 The currency in which the prices shall be quoted shall be [insert

12 This requirement may be waived for small projects of routine nature.13 This requirement may also be waived for small projects of routine nature.14 Price adjustment is recommended for contracts which provide for time for completion exceeding

18 months.


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currency(s)]

17. 16.2 The authority for establishing the rates of exchange shall be Bankof Tanzania.

18. 17.1 The Bid validity period shall be .. days.

19. 18.1 The amount of Bid Security shall be (. % of the Bid amount orTShs .

Or a Bid Securing Declaration

20. 19.1 Alternative Bids are [insert allowed or not allowed] in this Bid.

21. 19.2 Alternative time for completion [ indicate if applicable/ or notapplicable]

22. 20.1 In addition to the original of the Bid, the Bidder should submit..copies of the Bid [minimum number of copies should bethree and maximum should be five].

23. 20.2 Written confirmation of authorization are. [ list][Normally power of attorney is provided]

D. Submission of Bids

24. 21.2 a) Bids shall be submitted to [Specify below]: .Street Address ..Building/Plot No. Floor/Room No. ..City/Town [Address of the Secretary of the appropriate Tender Board]

25. 21.2 b) Project name

Bid Number....

Time and date for submission..

26. 22.1 The deadline for Bid submission isa) Day b) Datec) Time ..


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27. 22.3 The extension of the deadline for submission of Bids shall bemade not later than [insert numberof days; normally not more than seven days] before the expiry of theoriginal deadline.

E. Opening and Evaluation of Bids

28. 25.1 The Bids opening shall take place at:

Street address .Building/Plot No. .Floor/Room No. City/Town ..Country .

29. 32..1 a) Domestic preference shall be [insert applicable or notapplicable]

b) If a margin of preference applies, the application methodologyshall be

30. 34.1 Post- qualification will [ insert be undertaken or not beundertaken ].

31. 38.1 Percentage for quantities increase or decrease is ( insert percentage)[This should not exceed 15 percent]

F. Award of Contract

32. 41.1 The amount of performance security shall be [insert amountbetween 10% and 15% of the contract price]

33. 42.1 The Advance Payment shall be [limited to amaximum of fifteen (15) percent of the Contract Price].

34. 43.1 The proposed adjudicator for the project is:

[insert name of the proposed adjudicator] whose hourly rate shallbe [insert proposed hourly rate].

G. Right to Review

35. 49.1 The address to submit complaints:


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Chief Executive Officer,Public Procurement Regulatory Authority (PPRA)PPF Tower 8th Floor,P.O. Box 49,DAR ES SALAAM.Tel: 2133466, 2121236/7Fax: 2121238email: [email protected] Website: www.ppra.go.tz

36. 49.3 Fee for administrative review shall be ten thousand Tanzanianshillings15.

37. 51.2 The address for Appeal to PPAA:The Secretary,Public Procurement Appeals Authority,

Sukari House 1 st Floor,P.O. Box 9310,DAR ES SALAAM.Tel: 2120451

15 The amount of fees as per 5 th Schedule of the Public Procurement (Goods, Works, Non-Consultant Servicesand Disposal of Public Assets by Tender) Regulation, 2005 is subject to review.


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6.0 Guidance Notes on General Conditions of Contract

The General Conditions of Contract, read in conjunction with the Special Conditions ofContract and other documents listed therein, should be a complete document expressingfairly the rights and obligations of both parties.

The form of General Conditions of Contract that follows has been developed on the basisof considerable international experience in the drafting and management of contracts,bearing in mind a trend in the construction industry towards simpler, morestraightforward language.

The form can be used directly for smaller admeasurements contracts and, with themodifications noted in the footnotes, it can be adapted for lump sum contracts.

The use of standard General Conditions of Contract for building and civil works in thecountry will promote comprehensiveness of coverage, general acceptability of itsprovisions, savings in cost and time in Bid preparation and review, and the developmentof a solid background of legal case histories.


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7.0 Guidance Notes on Special Conditions of Contract

Similar to the Bid Data Sheet in Section III, the clauses in this Section V are intendedto assist the Employer in providing Contract-specific information in relation tocorresponding clauses in the General Conditions of Contract (GCC).

The provisions of Section V complement the GCC included in Section IV, specifyingcontractual requirements linked to the special circumstances of the Employer andthe United Republic of Tanzania

This Special Condition of Contract will form part of any resulting contract.


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7.1 Input of Information to be completed by Procuring Entity in the

Section V: Special Conditions of Contract

The following Special Conditions of Contract (SCC) shall supplement the GeneralConditions of Contract (GCC). Whenever there is a conflict, the provisions hereinshall prevail over those in the GCC.

SCCClause

GCCClause

Description

A. General

1. 1.1The Employer is [Name, address, and name of authorizedrepresentative].

The Adjudicator is [ insert name]

The Defects Liability Period is [number] days.

The Project Manager is [Name, address, and name ofauthorized representative].

The name and identification number of the Contract is[insert name and number as indicated in the Invitation for Bids(or Pre-qualification, if any)].

The Works consist of [insert brief summary of the works ,including relationship to other Contracts under the Project].

The Start Date shall be [insert date].

The Intended Completion Date for the whole of theWorks shall be [insert date].16

The following documents also form part of the Contract:[list documents]

The Site is located at [insert location] and is defined indrawings No: [insert numbers].

16 If different dates are specified for completion of the Works by section (sectional completion), these datesshould be listed here .


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2. 2.2 Indicate whether there is section completion is specified[specified/not specified].

3. 2.3(9) List other documents that form part of the contract if any:a)..b)..c)..etc.

4. 3.1 The language of the Contract documents is [insertlanguage].The law that applies to the Contract is the TanzanianLaw.

5. 9.1 Include the Schedule of Other Contractors, if any.[give list of other contractors]

6. 10.1 Include the Schedule of Key Personnel.[Give list of key personnel]

7. 14.1 The minimum insurance covers shall be:

The minimum insurance covers shall be:

(a) loss of or damage to the Works, Plant, andMaterials [insert amount] ;

(b) loss of or damage to Equipment [insert amount] ;

(c) loss of or damage to property (except theWorks, Plant, Materials, and Equipment) inconnection with the Contract [insert amount] ;and

(d) personal injury or death [insert amount] .

8. 15.1 Site Investigation Reports available to the Bidder are:a)..b)..c)..

9. 22.4 The other measures include:a. Minimizing the number of migrant workers

employed on the project and household in the sitecamp

b. Providing access to voluntary counseling andtesting (VCT)


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c. Providing psychological support and health careincluding prevention and treatment ofopportunistic infections for workers infected andaffected, as well as their families

d. Providing condoms (male and female) to workers

10. 24.1 & 47.1 The Site Possession Date shall be [insert date].17

11. 28.2 Hourly rate of Fees payable to the Adjudicator is: [ inserthourly fee in Tshs.]

Types of reimbursable expenses to be paid to theAdjudicator include: [ insert types of reimbursable expenses].a)..b)..c)..

12. 28.3 Arbitration will take place at [insert the place] inaccordance with rules and regulations published by.. [state the institutions ] and [insertrules and regulations]

13. 29.1 Appointing Authority for the Adjudicator: [insert the nameof Authority]

B. Time Control

14. 30.1 The Contractor shall Submit a Programme for the Workswithin [ number ] days of delivery of the Letter ofAcceptance.

15. 30.3 The period between Programme updates is [number] days.

16. 30.3 The amount to be withheld by the Project Manager in thecase the contractor does not submit an updatedprogramme is: [State amount].

C. Quality Control

17. 38.1 The Defects Liability Period is [number] days.

17 If the Site is made available by section, the different dates should be listed here.


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D. Cost Control

18 45.1 The interest rate shall be ..% above prevailinginterest rate for commercial borrowing from thecontractors bank

19 45.7 Minimum amount of Interim Payment Certificate will be[insert figure or percent of contract price]

20. 47.1(a) The Site Possession Date shall be [insert date].18

21. 50 The contract [insert is or is not] 19 subject to subject toprice adjustment in accordance with Clause 50 of theGeneral Condition of Contract.

22. 51.1 The amount of retention is [ state the percent] 20 of value ofworks of Interim Payment Certificate.

Limit of retention will be [insert percent] of contract price.

23 52.1 The amount of liquidated damages is [ Insert percent]

[Should be between 0.1 and 0.15 percent of contract priceper day]

The maximum amount of liquidated damages must be

equivalent to the amount of the performance security[Insert amount]

24. 53.1 The bonus 21 for early completion is [ state the amount ].

25. 54.1 The amount of advance payment 22 shall be . percent of the contract sum payable by [insert date].

Monthly recovery of advance payment: ..percentof amount of Interim of Payment of Certificate.

26. 55.1. The Performance Security shall be a minimum amountequivalent to 10 to 15 percent of the contract price.

18 If the Site is made available by section, the different dates should be listed here.19 Price adjustment is recommended for contracts which provide for time for completion exceeding 18 months.20 The retention amount is usually close to 5 percent and in no case exceeds 10 percent.21 If early completion would provide benefits to the Employer, this clause should remain; otherwise delete. The

Bonus is usually numerically equal to the liquidated damages. 22 Amount of advance payment shall not exceed 15 percent of the contract sum.


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E. Finishing the Contract

27. 611 As built drawings shall be supplied by the contractor by. [insert date if applicable].

Operating manual shall be supplied by the contractor by. [insert date if applicable].

28. 61.2 The amount to be withheld by the Project Manager in thecase the contractor does not submit as built drawingsis:. [State amount if applicable].

The amount to be withheld by the Project Manager in thecase the contractor does not submit operating manualis:. [State amount if applicable].

29. 62.2 (g) Number of days for which the maximum amount ofliquidated damages can be paid is . [ Insertnumber of days].

30. 63.1 The percentage to apply to the value of the work notcompleted, representing the Employer's additional costfor completing the Works, is [percent].


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8.0 Guidance Notes on Specifications

A set of precise and clear specifications is a prerequisite for Bidders to respondrealistically and competitively to the requirements of the Employer without

qualifying or conditioning their Bids. In the context of competitive Bidding, thespecifications must be drafted to permit the widest possible competition and, at thesame time, present a clear statement of the required standards of workmanship,materials, and performance of the goods and services to be procured. Only if this isdone will the objectives of economy, efficiency, and fairness in procurement berealized, responsiveness of Bids be ensured, and the subsequent task of Bidevaluation facilitated. The specifications should require that all goods and materialsto be incorporated in the Works be new, unused, of the most recent or currentmodels, and incorporate all recent improvements in design and materials unlessprovided otherwise in the Contract.

Samples of specifications from previous similar projects are useful in this respect.The use of metric units is encouraged by the Government of Tanzania. Mostspecifications are normally written specially by the Employer or Project Manager tosuit the Contract Works in hand. There is no standard set of Specifications foruniversal application in all sectors in Tanzania, but there are established principlesand practices, which are reflected in these documents.

There are considerable advantages in standardizing General Specifications forrepetitive Works in recognized public sectors, such as highways, ports, railways,urban housing, irrigation, and water supply, in the same country or region wheresimilar conditions prevail. The General Specifications should cover all classes of

workmanship, materials, and equipment commonly involved in construction,although not necessarily to be used in a particular Works Contract. Deletions oraddenda should then adapt the General Specifications to the particular Works.

Care must be taken in drafting specifications to ensure that they are not restrictive.In the specification of standards for goods, materials, and workmanship, recognizedinternational standards should be used as much as possible. Where other particularstandards are used, whether national standards of the Tanzania or other standards,the specifications should state that goods, materials, and workmanship that meetother authoritative standards, and which ensure substantially equal or higherquality than the standards mentioned, will also be acceptable. The following clause

may be inserted in the Special Conditions or Specifications.

Sample Clause: Equivalency of Standards and CodesWherever reference is made in the Contract to specific standards and codes to bemet by the goods and materials to be furnished, and work performed or tested, theprovisions of the latest current edition or revision of the relevant standards andcodes in effect shall apply, unless otherwise expressly stated in the contract. Wheresuch standards and codes are national, or relate to a particular country or region,


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9.0 Guidance Notes on the Drawings

Insert here a list of Drawings. The actual Drawings, including site plans, should be attached to this

section or annexed in a separate folder.


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10.0 Guidance Notes on Bill of Quantities 23

Objectives

The objectives of the Bill of Quantities are:

(a) to provide sufficient information on the quantities of Works to beperformed to enable Bids to be prepared efficiently and accurately; and

(b) when a Contract has been entered into, to provide a priced Bill ofQuantities for use in the periodic valuation of Works executed.

In order to attain these objectives, Works should be itemized in the Bill of Quantitiesin sufficient detail to distinguish between the different classes of Works, or betweenWorks of the same nature carried out in different locations or in other circumstanceswhich may give rise to different considerations of cost. Consistent with theserequirements, the layout and content of the Bill of Quantities should be as simpleand brief as possible.

Daywork Schedule

A Daywork Schedule should be included only if the probability of unforeseen work,outside the items included in the Bill of Quantities, is high. To facilitate checking bythe Employer of the realism of rates quoted by the Bidders, the Daywork Scheduleshould normally comprise the following:

(a) A list of the various classes of labour, materials, and Constructional Plantfor which basic daywork rates or prices are to be inserted by the Bidder,together with a statement of the conditions under which the Contractor willbe paid for work executed on a daywork basis.

(b) Nominal quantities for each item of Daywork, to be priced by each Bidderat Daywork rates as Bid. The rate to be entered by the Bidder against eachbasic Daywork item should include the Contractors profit, overheads,supervision, and other charges.

Provisional Sums

A general provision for physical contingencies (quantity overruns) may be made byincluding a provisional sum in the Summary Bill of Quantities. Similarly, a

23 In lump sum contracts, delete Bill of Quantities and replace with Schedule of Activities throughout thissection.


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contingency allowance for possible price increases should be provided as aprovisional sum in the Summary Bill of Quantities. The inclusion of suchprovisional sums often facilitates budgetary approval by avoiding the need torequest periodic supplementary approvals as the future need arises. Where suchprovisional sums or contingency allowances are used, the Special Conditions ofContract should state the manner in which they will be used, and under whoseauthority (usually the Project Managers).

The estimated cost of specialized work to be carried out, or of special goods to besupplied, by other contractors (refer to Clause 8 of the Conditions of Contract)should be indicated in the relevant part of the Bill of Quantities as a particularprovisional sum with an appropriate brief description. A separate procurementprocedure is normally carried out by the Employer to select such specializedcontractors. To provide an element of competition among the Bidders in respect ofany facilities, amenities, attendance, etc., to be provided by the successful Bidder asprime Contractor for the use and convenience of the specialist contractors, eachrelated provisional sum should be followed by an item in the Bill of Quantitiesinviting the Bidder to quote a sum for such amenities, facilities, attendance, etc.

These Notes for Preparing a Bill of Quantities are intended only as information for theEmployer or the person drafting the Bidding documents. They should not be included in the final documents.


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11.0 Guidance Notes on the Preparation of Forms

The purpose of including these forms in the Bidding Document is to notify theBidders of the type and detail of the Contract they would receive in the event of an

award. No input is required by the PE when drafting the Bidding Document.


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11.1 Form of Bid and Appendix to Bid

The Bidder shall fill in and submit this Bid form and appendix to bid with the Bid.Additional details on the price should be inserted if the Bid is in various currencies.If the Bidder objects to the Adjudicator proposed by the Employer in the Biddingdocuments, he should so state in its Bid, and present an alternative candidate,together with the candidates daily fees and biographical data, in accordance withClause 43 of the Instructions to Bidders.


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1. Form of Bid 24 [date]

To: [name and address of Employer ]

We offer to execute the [ name and identification number of contract] in accordance withthe Conditions of Contract accompanying this Bid for the Contract Price of [amountin numbers], [amount in words] [name of currency].

The Contract shall be paid in the following currencies:

Currency Percentage payablein currency

Rate of exchange: oneforeign equals [ insert

local]

Inputs for whichforeign currency is

required(a)

(b)

The advance payment required is:-

Amount Currency (a)

(b)

We accept the appointment of [ name proposed in Bid Data Sheet] as the adjudicator.

orWe do not accept the appointment of [ name proposed in Bid Data Sheet ] as theAdjudicator, and propose instead that [ name] be appointed as Adjudicator, whosedaily fees and biographical data are attached.

We are not participating, as Bids, in more than one Bid in this Bidding process otherthan alternative Bids in accordance with the Bidding documents.

Our firm, its affiliates or subsidiaries, including any subcontractors or suppliers forany part of the contract has not been declared ineligible by the Government of theUnited Republic of Tanzania under Tanzania's laws or any other official regulations.

This Bid and your written acceptance of it shall constitute a binding Contractbetween us.

We understand that you are not bound to accept the lowest or any Bid you receive.

24 The Bid Form must be completed without any alterations and no substitute shall be accepted.


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We hereby confirm that this Bid complies with the Bid validity and Bid securityrequired by the Bidding documents and specified in the Bid Data Sheet.

Authorized Signature:

Name and Title of Signatory:

Name of Bidder:

Address:


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Appendix to Bid 25

Schedule of Adjustment Data

[In Tables A, B, and C, below, the Bidder shall (a) indicate its amount of localcurrency payment, (b) indicate its proposed source and base values of indices forthe different foreign currency elements of cost, (c) derive its proposed weightingsfor local and foreign currency payment, and (d) list the exchange rates used in thecurrency conversion. In the case of very large and/or complex works contracts, itmay be necessary to specify several families of price adjustment formulaecorresponding to the different works involved.]

Table A. Local Currency

Indexcode Indexdescription Sourceofindex

Basevalueand date

Biddersrelatedcurrencyamount

Range ofweightingProposed by theProcuring Entity

Biddersproposedweighting

Nonadjustable a: *26

b: ----- to -----* 27

c: ------- to-------*

d: ------- to------*

e: ------- to ------*

etc.

a: *

b: 28

c:

d:

e:

etc.Total 1.00

Table B. Foreign Currency

State type: ....................... [If the Bidder wishes to quote in more than one foreigncurrency, this table should be repeated for each foreign currency.]

25 The Appendix to Bid shall be filled by the bidders and submit this with the bid if the contract is subject toprice adjustment in accordance with GCC Clause 50. Price adjustment is recommended for contracts whichprovide for time for completion exceeding 18 months.

26 Procuring Entity should enter non-adjustable factor a: _____*, where there is part of the contractorsexpenditures that will not be subject to fluctuation in cost (for example, stamp duties and other expensesincurred in formalizing the contract) or to compensate for the unreliability of some indices. a shouldnormally not exceed 0.1.

27 Procuring Entity should enter the range of weighting proposed i.e b ____ to ____* and for other inputs subjectto fluctuation for both local and foreign currency.

28 Bidders proposed weighting i.e b: ______ shall be proposed by Bidders from the range giving by theProcuring Entity.


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Indexcode

Indexdescription

Sourceof

index

Basevalueanddate

Biddersrelatedsource

currency intype/amount

Equivalentin ForeignCurrency 1

Range ofweighting

Proposed by theProcuring Entity

Biddersproposedweighting

Nonadjustable a: *

b: ----- to -------*

c: ------ to -------*

d: ------ to ------*

e:------- to -------*

etc.

a: *

b:

c:

d:

e:

etc.

Total 1.00


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11.2 Form of Qualification Information

The information to be filled in by Bidders in the form of qualification informationwill be used for purposes of post-qualification or for verification of pre-qualificationas provided for in Clause 12 of the Instructions to Bidders. This information willnot be incorporated in the Contract. Attach additional pages as necessary.Pertinent sections of attached documents should be translated into English. If usedfor pre-qualification verification, the Bidder should fill in updated information only.


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2. Form of Qualification Information

1 IndividualBidders orIndividualMembers of

joint Ventures

1.1 Constitution or legal status of Bidder: [ attach copy]

Place of registration: [ insert]

Principal place of business: [insert]

Power of attorney of signatory of Bid: [ attach]

Registration certificate [attach] current BusinessLicense [ attach]

1.2 Total annual volume of construction workperformed in two years, in Tanzanian shillings asspecified in the Bid Data Sheet; [insert]

1.3 Work performed as prime Contractor on works of asimilar nature and volume over the last two years oras specified in the Bid Data Sheet in TanzanianShillings. Also list details of work under way orcommitted, including expected completion dates.

Project nameand country

Name of clientand contact

person

ContractorsParticipation

Type of workperformed and

year ofcompletion

Value ofcontract

(a)

(b)

1.4 Major items of Contractors Equipment proposed forcarrying out the works. List all informationrequested below. Refer also to sub-Clause 12.3 ofthe Instructions to Bidders.

Item ofequipment Description,make, and age(years)

Condition (new,good, Poor) and

number available

Owned, leased(from whom?) orto be purchased(from whom?)

(a)

(b)

(c)


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Other party(ies) Cause of dispute Amount involved(a)

(b)

1.11 Statement of compliance with the requirements ofsub-Clause 3.2 of the Instructions to Bidders.

1.12 Proposed Program (work method and schedule).Descriptions, drawings, and charts, as necessary, tocomply with the requirements of the Biddingdocuments.

2. Joint Ventures 2.1 The information listed in 1.1 1.11 above shall beprovided for each partner of the joint venture.

2.2 The information in 1.12 above shall be provided forthe joint venture.

2.3 Attach the power of attorney of the signatory(ies) ofthe Bid authorizing signature of the Bid on behalf ofthe joint venture.

2.4 Attach the Agreement among all partners of the jointventure (and which is legally binding on all partners),which shows that:-

(a) all partners shall be jointly and severallyliable for the execution of the Contract inaccordance with the Contract terms;

(b) one of the partners will be nominated asbeing in charge, authorized to incur

liabilities, and receive instructions for and onbehalf of any and all partners of the jointventure; and

(c) the execution of the entire Contract,including payment, shall be done exclusivelywith the partner in charge.

3. Additional 3.1 Bidders should provide any additional information


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Requirements required in the Bid Data Sheet or to fulfill therequirements of sub-Clauses 12.1 of the Instructionsto Bidders, if applicable.


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11.3 Standard Form of Letter of Acceptance

The Letter of Acceptance will be the basis for formation of the Contract as described

in Clauses 37, 38 and 39 of the Instructions to Bidders. This Standard Form of Letterof Acceptance should be filled in and sent to the successful Bidder only afterevaluation of Bids has been completed, subject to any review by the appropriateapproving authorities.


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11.4 Standard Form of Contract

The Agreement should incorporate any corrections or modifications to the Bidresulting from corrections of errors (Instructions to Bidders, Clause 29, priceadjustment during the evaluation process (Clause 50 of the General Conditions ofContract), selection of an alternative offer (Instructions to Bids Clause 19),acceptable deviations (Instructions to Bids Clause 28), or any other mutuallyagreeable changes allowed for in the Conditions of Contract, such as changes in keypersonnel, subcontractors, scheduling, and the like.


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4. Form of Contract

This Agreement, made the [ day] day of [ month], [year ] between [ name and address of Employer ](hereinafter called the Employer) and [ name and address of Contractor ] (hereinafter calledthe Contractor) of the other part.

Whereas the Employer is desirous that the Contractor execute [ name andidentification number of contract] (hereinafter called the Works) and the Employerhas accepted the Bid by the Contractor for the execution and completion of suchworks and the remedying of any defects therein in the sum of [contract price in wordsand figures}hereinafter called (the Contract Price).

Now this Agreement witnesseth as follows:

1. In this Agreement, words and expressions shall have the same meanings asare respectively assigned to them in the Conditions of Contract hereinafterreferred to, and they shall be deemed to form and be read and construed aspert of this Agreement.

2. In consideration of the payments to be made by the Employer to theContractor as hereinafter mentioned, the Contractor hereby covenants withthe Employer to execute and complete the Works and remedy any defectstherein in conformity in all respects with the provisions of the Contract.

3. the Employer hereby covenants to pay the Contractor in consideration of theexecution and completion of the Works and the remedying of defectswherein the Contract Price or such other sum as may become payable underthe provisions of the Contract at the times and in the manner prescribed bythe Contract.

In Witness whereof the parties thereto have caused this Agreement to be executedthe day and year first before written.

The Common Seal of

Was hereunto affixed in the presence of:

Signed, Sealed, and Delivered by the said

In the presence of:

Biding Signature of Employer

Binding Signature of Contractor


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11.5 Guidance Notes on the Preparation of Forms -Security

Forms of Securities

Samples of acceptable forms Bid-Securing Declaration, Performance, and Advance PaymentSecurities are annexed. Bidders should not complete the Performance and AdvancePayment Security forms at this time. Only the successful Bidder will be required to providePerformance and Advance Payment Securities in accordance with one of the forms or in asimilar form acceptable to the Employer.


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1. Bid-Securing Declaration

[The Bidder shall fill in this Form in accordance with the instructions indicated.]

Date: [insert date (as day, month and year)] Bid No.: [insert number of bidding process ]

Alternative No.: [insert identification No if this is a Bid for an alternative ]

To: [insert complete name of Procuring Entity ]

We, the undersigned, declare that:

We understand that, according to your conditions, Bids must be supported by a Bid-Securing Declaration.

We accept that we will automatically be suspended from being eligible for Biddingin any contract with the Purchaser for the period of time of [insert number of monthsor years ] starting on [insert date ], if we are in breach of our obligation(s) under theBid conditions, because we:

(a) have withdrawn our Bid during the period of Bid validity specified in theForm of Bid; or

(b) having been notified of the acceptance of our Bid by the Purchaser during theperiod of Bid validity, (i) fail or refuse to execute the Contract, if required, or(ii) fail or refuse to furnish the Performance Security, in accordance with theInstruction to Bidders.

We understand this Bid Securing Declaration shall expire if we are not thesuccessful Bidder, upon the earlier of (i) our receipt of your notification to us of thename of the successful Bidder; or (ii) twenty-eight days after the expiration of ourBid.

Signed: [insert signature of person whose name and capacity are shown] in the capacity of[insert legal capacity of person signing the Bid Securing Declaration]

Name: [insert complete name of person signing the Bid Securing Declaration ]

Duly authorized to sign the Bid for and on behalf of: [insert complete name ofBidder ]

Dated on ____________ day of __________________, _______ [insert date of signing ]Corporate Seal (where appropriate)

[Note: In case of a Joint Venture, the Bid Securing Declaration must be in the name of all partners tothe Joint Venture that submits the Bid.]


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2(a). Performance Bank Guarantee [Unconditional]

[The bank/successful Bidder providing the Guarantee shall fill in this form in accordancewith the instructions indicated in brackets, if the Employer requires this type of security.]

[insert banks name, and address of issuing branch or office]

Beneficiary: [insert name and address of Employer]

Date: [insert date]

PERFORMANCE GUARANTEE No.: [insert Performance Guarantee number]

We have been informed that [insert name of Contractor] (hereinafter called "theContractor") has entered into Contract No. [insert reference number of the Contract]dated with you, for the execution of [insert name of Contract and brief description ofWorks] (hereinafter called "the Contract").

Furthermore, we understand that, according to the conditions of the Contract, aperformance guarantee is required.

At the request of the Contractor, we [insert name of Bank] hereby irrevocablyundertake to pay you any sum or sums not exceeding in total an amount of [insertamount in figures] ([insert amount in words]) ,34 such sum being payable in the typesand proportions of currencies in which the Contract Price is payable, upon receiptby us of your first demand in writing accompanied by a written statement statingthat the Contractor is in breach of its obligation(s) under the Contract, without yourneeding to prove or to show grounds for your demand or the sum specified therein.

This guarantee shall expire no later than twenty-eight days from the date ofissuance of the Taking-Over Certificate, calculated based on a copy of suchCertificate which shall be provided to us, or on the [ insert number day of [insertmonth], [insert year],35 whichever occurs first. Consequently, any demand forpayment under this guarantee must be received by us at this office on or before thatdate. _____________________[signature(s) of an authorized representative(s) of the Bank ]

34 The Guarantor (bank) shall insert an amount representing the percentage of the Contract Price specified in theContract and denominated either in the currency(ies) of the Contract or a freely convertible currency acceptableto the Employer. 35 Insert the date twenty-eight days after the expected Completion date. The Employer should note that inthe event of an extension of the time for completion of the Contract, the Employer would need to request anextension of this Guarantee from the Guarantor. Such request must be in writing and must be made prior to theexpiration date established in the Guarantee. In preparing this Guarantee, the Employer might consider addingthe following text to the form, at the end of the penultimate paragraph: The Guarantor agrees to a one-timeextension of this Guarantee for a period not to exceed [six months][one year], in response to the Employerswritten request for such extension, such request to be presented to the Guarantor before the expiry of theGuarantee.


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2(b). Performance Bond

[The Surety/successful Bidder providing the Bond shall fill in this form in accordance withthe instructions indicated in brackets, if the Employer requires this type of security]

By this Bond, [insert name and address of Contractor] as Principal (hereinafter calledthe Contractor) and [insert name, legal title, and address of surety, bonding company,or insurance company] as Surety (hereinafter called the Surety), are held and firmlybound unto [insert name and address of Employer] as Obligee (hereinafter called theEmployer) in the amount of [insert amount of Bond] [insert amount of Bond inwords],36 for the payment of which sum well and truly to be made in the types andproportions of currencies in which the Contract Price is payable, the Contractor andthe Surety bind themselves, their heirs, executors, administrators, successors, andassigns, jointly and severally, firmly by these presents.

Whereas the Contractor has entered into a Contract with the Employer dated 37 the[insert number] day of [insert month] , [insert year] for [insert name of Contract] inaccordance with the documents, plans, specifications, and amendments thereto,which to the extent herein provided for, are by reference made part hereof and arehereinafter referred to as the Contract.

Now, therefore, the Condition of this Obligation is such that, if the Contractor shallpromptly and faithfully perform the said Contract (including any amendmentsthereto), then this obligation shall be null and void; otherwise it shall remain in fullforce and effect. Whenever the Contractor shall be, and declared by the Employerto be, in default under the Contract, the Employer having performed the Employersobligations thereunder, the Surety may promptly remedy the default, or shallpromptly:

(1) complete the Contract in accordance with its terms and conditions; or

(2) obtain a Bid or bids from qualified bidders for submission to theEmployer for completing the Contract in accordance with its terms andconditions, and upon determination by the Employer and the Surety ofthe lowest responsive Bidder, arrange for a Contract between such Bidderand Employer and make available as work progresses (even though thereshould be a default or a succession of defaults under the Contract or

Contracts of completion arranged under this paragraph) sufficient fundsto pay the cost of completion less the balance of the Contract Price; butnot exceeding, including other costs and damages for which the Suretymay be liable hereunder, the amount set forth in the first paragraphhereof. The term Balance of the Contract Price, as used in this

36 An amount is to be inserted by the Surety, representing the percentage of the Contract Price specified in theContract Data, and denominated either in the currency(ies) of the Contract or in a freely convertible currency oftype and amount acceptable to the Employer. 37 Date of Letter of Acceptance or Agreement.


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paragraph, shall mean the total amount payable by the Employer to theContractor under the Contract, less the amount properly paid by theEmployer to the Contractor; or

(3) pay the Employer the amount required by the Employer to complete theContract in accordance with its terms and conditions up to a total notexceeding the amount of this Bond.

The Surety shall not be liable for a greater sum than the specified penalty of thisBond.

Any suit under this Bond must be instituted before the expiration of one year fromthe date of issuance of the Certificate of Completion.

No right of action shall accrue on this Bond to or for the use of any person orcorporation other than the Employer named herein or the heirs, executors,administrators, successors, and assigns of the Employer.

In testimony whereof, the Contractor has hereunto set its hand and affixed its seal,a