1. Bidding Document Preparation
Welcome
Public Procurement :
Bidding Document Preparation
Suresh Pradhan
NASC,

2. Session Coverage Bid, Bidder, Bidding Document, Procurement Contract
Provisions of PPA/ PPR about preparation of Bidding Document
Bidding Document: Impact, Based on, Types of Contract
Bidding Document :
Information to the Bidder (ITB) -Bid Data Sheet (BDS), Qualification and Evaluation Criteria
General Conditions of Contract (GCC) and Special Conditions of Contract (SCC): content and filling of SCC

3. Bid, Bidder, Bidding Document, Procurement Contract
“Bid” means a document setting out price, proposal or rate submitted by a bidder in the format specified by a Public Entity as per the notice published by that entity for procurement;
“Bidder” means any person, firm, organization or company that submits or may submit bid to take part in procurement proceedings;
“Bidding Document” means a document prepared by the concerned Public Entity making invitation to bid for submission by bidders by filling up or preparing price or proposal or rate in such document and this term also includes instructions to bidders, specifications, drawing, design, terms of reference, schedule of work, evaluation criteria, bill of quantities, conditions of contract and similar other documents;
“Procurement Contract” means a procurement contract entered into between a Public Entity and a supplier or construction entrepreneur or consultant or service provider

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9. Public Procurement Monitoring Office, website:ppmo.gov.np

10. Equal Information to ALL Bidders What is to be Procured
Bidding documents
Purpose:
Equal Information to ALL Bidders
What is to be Procured
Technical Requirements
How to Prepare a RESPONSIVE BID
Evaluation Criteria
Form of Contract
PROJECT LAUNCH WORKSHOP – MODULE 9

11. Bidding documents Impact of poorly drafted documents:
Complaints from Bidders
Selection of Poorly Qualified Firm
Delays in Project Implementation
Lack of Credibility of Institutions
Claims and Disputes
PROJECT LAUNCH WORKSHOP – MODULE 9

12. Bid Documents Based on:
Procurement Methods : ICB, NCB, Sealed Quotation, Direct Procurement, User’s Group or Beneficiary Community
Process/Stages : Single Stage, Two Stage
Open Competition (with or without Pre-Qualification)
Type of Contract
Donor Guidelines

13. Types of Contract (Clause 22, Appendix 4 of the Regulation)
Types of Civil Works Contract :
Unit Rate Contract
Lump-sum Contract
Cost Reimbursable Contract
Time and Material Rate Contract
Design and Build Contract
Management Contract
Performance Based Maintenance Management Contract
Piecework Contract
Goods and Consultancy Procurement-Contracts

14. Standard Bid Document (Works)
Invitation for Bids
Part I: BIDDING PROCEDURES
Section I: Instructions to Bidders
Section II : Bid Data Sheet
Section III: Evaluation and Qualification Criteria
Section IV: Bidding Forms
Section V - Eligible Countries
Part II :BIDDING PROCEDURES
Section VI: Works Requirements
Section VI: Bill of Quantities
Part III: CONDITIONS OF CONTRACT AND CONTRACT FORMS
Section VIII: General Conditions of Contract
Section IX: Special Conditions of Contract
Section X: Contract Forms

15. Invitation For Bids (IFB)
Provides information that enables potential Bidders to decide whether to participate.
Indicates any important bid evaluation criteria:
Qualification requirement;
Prequalification/Post Qualification;
Minimum level of experience required
Domestic preference;
Invitation for Bids is not a part of the Bidding Document and therefore it shall not be included in the Bidding Document.

16. Invitation for Bid Publication of Procurement Notice
Place and Period in Which the Bidding Documents are Made Available
Date of Closing and Extensions, if any
Pre-bid Conference
Place of Submission of Bids
Date and Time of Public Bid Opening

17. Instruction to Bidders (ITB)
For bidders to prepare Responsive bid,
On composition of bidding documents and preparation of bids,
On bid submission, opening, evaluation, and award of contract,
Contents in ITB are to be changed as per project requirement
ITB will not be a part of contract,

18. Bid Data Sheet (BDS)
This section consists of provisions that are specific to each procurement and supplements the information or requirements included in Instructions to Bidders (ITB)

19. Bid Data Sheet (BDS)
Bidding Data must refer to Instructions to Bidders (ITB) Clauses,
Bidding data is used to specify the ITB clauses by inserting specific data (name, days, amount etc.) and required changes,
Bidding data replaces the ITB clauses, if changed,
Bidding data to be filled out by the Employer before issuance of the Bidding documents.

20. Instruction to Bidders (ITB)
Table of Clauses
A. General 10
1. Scope of Bid 10
2. Source of Funds 10
3. Fraud and Corruption 10
4.Eligible Bidders 13
5. Eligible Materials, Equipment and Services 15
B. Contents of Bidding Documents 15
6. Sections of Bidding Document 15
7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting 15
8. Amendment of Bidding Document 16
9. Cost of Bidding 16
10. Language of Bid 17
11. Documents Comprising the Bid 17
12. Letter of Bid and Schedules 17
13. Alternative Bids 18
14. Bid Prices and Discounts 18
15. Currency of Bid and Payment 19
16. Documents Comprising the Technical Proposal 19
17. Documents Establishing theQualifications ofthe Bidder 19
18. Period of Validity of Bids 19
19. Bid Security 19
20. Format and Signing of Bid 21
D. Submission and Opening of Bids 21
21. Sealing and Marking of Bids 21
22. Deadline for Submission of Bids 24
23. Late Bids 24
24. Withdrawal, and Modification ofBids 24
25. Bid Opening 25

21. Instruction to Bidders (ITB)
E. Evaluation and Comparison of Bids 27
26. Confidentiality 27
27. Clarification of Bids 27
28. Deviations, Reservations, and Omissions 28
29. Examination of Technical Bid 28
30. Determination of Responsiveness of Technical Bid 28
31. Nonconformities Errors, andOmissions 29
32 Qualification of the Bidder 29
33. Correction of Arithmetical Errors 30
34 Subcontractors 30
35. Evaluation of Price Bids 30
36. Comparison of Bids 31
37. Employer’s Right to Accept Any Bid, and to Reject Any or All Bids 31
38. Award Criteria 32
39. Letter of Intent to Award the Contract/Notification of Award 32
40. Performance Security 32
41 Signing of Contract 33
42. Complaint and Review 33

22. Section I: Instructions to Bidders
A. General
1. Scope of Bid
1.1 In connection with the Invitation for Bids indicated in the Bid Data Sheet (BDS), the Employer, as indicated in the BDS, issues this Bidding Document for the procurement of Works as specified in Section VI (Works Requirements). The name, identification, and number of Contracts of the National Competitive Bidding (NCB) are providedin the BDS.
1.2 Throughout this Bidding Document:
(a)the term “in writing” means communicated in written form and delivered against receipt;
(b) except where the context requires otherwise, words indicating the singular also include the plural and words indicating the plural also include the singular; and
(c) “day” means calendar day.
2. Source of Funds
2.1 GoN Funded: In accordance with its annual program and budget, approved by the GoN, the implementing agency indicated in the BDS plans to apply a portion of the allocated budget to eligible payments under the contract(s) for which this Bidding Document is issued. Or
Public Entities' own Resource Funded: In accordance with its annual program and budget, approved by the public entity, the implementing agency indicated in the BDS plans to apply a portion of the allocated budget to eligible payments under the contract(s) for which this Bidding Document is issued.
DP Funded: The GoN has applied for or received financing (hereinafter called “funds”) from the Development Partner (hereinafter called “the DP”) indicated in the BDS toward the cost of the project named in the BDS. The GoN intends to apply a portion of the funds to eligible payments under the contract(s) for which this Bidding Document is issued.

23. Section I: Instructions to Bidders
42. Compl aint and Review
42.1 If a Bidder is dissatisfied with the Procurement proceedings or thedecision made by the Employer in opening of the price bid or the intention to award the Contract, it may file an application to the Chief of the Public Entity or Public Procurement Monitoring Office or office established as per Clause 145(a) of the Public Procurement Regulation within Seven (7) days of providing the notice under ITB 25.8 and ITB 39.1 by the Public Entity, for review of the proceedings stating the factual and legal grounds.
42.2 Late application filed after the deadline pursuant to ITB 42.1 shall not be processed.
42.3 The chief of Public Entity shall, within five (5) days after receiving the application, give its decision with reasons, in writing pursuant to ITB 42.1:
(a) whether to suspend the procurement proceeding and indicate the procedure to be adopted for further proceedings; or
(b) to reject the application.
The decision of the chief of Public Entity shall be final for the Bid amount up to the value as stated in 42.4.

24. Section II: Bid Data Sheet
A. General
ITB 1.1
The number of the Invitation for Bids is: ………. [insert IFB Number]
The Employer is: ………[insert the name of Employer]
The number and identification of lots comprising this bidding process is: [insert the name and contract number of the lots]
ITB 2.1
The name of the Project is… [insert the name of the project, if any]
The DP is… [insert the name of development partner, if any]
The implementing agency is…[insert the name of The implementing agency]
GoN Funded or DP Funded: ……....[insert GoN Funded or DP Funded or PE's own resource funded]
ITB 3.3 (d)
For DP Funded:Not Applicable
(For GoN funded delete this row)
ITB 4.1 (a)
For GoN Funded:
Maximum number of partner in a joint venture shall be : 3 (three)
For DP Funded:
[select one options as per DPs Policy]
There is no limit on the number of members in a JV or
Maximum number of partner in a joint venture shall be : [insert number]
ITB 4.4
For DP: [insert website address for the list of debarred firms]

25. For clarification purposes only, the Employer’s address is:
B. Bidding Document
For clarification purposes only, the Employer’s address is:
Attention: ______________________________
Address: _________________________
Telephone: : _____________________
Facsimile number: _____________________ Electronic mail address: __________________
A Pre-Bid meeting [insert “shall” or “shall not”] held. [If pre-Bid meeting is going to be held, insert the following otherwise delete] Pre-Bid Meeting will
Take place at the following date, time and place:
Date: ____________
Time: ____________ Place: ____________
A site visit [insert “shall be” or “shall not be”] organized by the Employer.
Time for request: Requests for clarification should be received by the Employer no later than 10 days prior to the deadline for submission of bids.

26. C. Preparation of Bids ITB 10.1
The language of the bid is: English / Nepali
ITB 11.2 (h)
The Bidder shall submit with its Technical Bid the following additional documents:[insert if any additional documents required, ]
ITB 11.3 (b)
In accordance with ITB 12 and ITB 14, the following schedules shall be submitted with the bid, including the priced Bill of Quantities for Unit Rate Contracts and Schedule of Prices for lump sum contracts: _______[Insert schedules, if any]
11.3 (d)
The Bidder shall submit with its Price Bid the following additional documents:
[insert if any additional documents required]
ITB 13.1
Alternative bids [insert “shall be” or “shall not be”] permitted.
ITB 13.2
Alternative times for completion [insert “shall be” or “shall not be”]permitted.
If alternative times for completion are permitted, the evaluation method will be as specified in Section III (Evaluation and Qualification Criteria).
ITB 13.4
Alternative technical solutions shall be permitted for the following parts of the Works: ……………… [if alternative technical solution is permitted, Insert the part of the work]
If alternative technical solutions are permitted, the evaluation method will be as specified in Section III (Evaluation and Qualification Criteria).
ITB 14.6
The prices quoted by the Bidder [insert “shall be” or “shall not be”] subject to adjustment during the performance of the Contract [insert the following text, in case price adjustment is applicable
“Bidder shall submit the Table of Price Adjustment Data as a part of price bid."]
ITB 18.1
The bid validity period shall be: …… [Insert Ninety or One Hundred Twenty (90/120) days].
ITB 19.1
The Bidder shall furnish a bid security, from Commercial Bank or Financial Institution eligible to issue Bank Guarantee as per prevailing Law with a minimum of [insert amount (2 to 3 % of estimated amountexclusive VAT)], which shall be valid for 30 days beyond the validity period of the bid.
ITB 19.2 (b)
Office Name:
Bank Name: ………………
Bank Address: ……………….
Account Number: …………………
Office Code: ………………….
ITB 20.1
In addition to the original of the bid, the number of copy/ies is/are: [insert "Not Applicable when additional copy is not required and insert number of copy/ies when copy/ies is/are required]

27. D. Submission and Opening of Bids
ITB 21.1
Bidders shall have the option of submitting their bids ____[insert option 1: "by electronic only"
option 2: or "by electronic or by mail / by hand / by courier"
option 3: "by mail / by hand / by courier"]___ .
ITB 22.1
For bid submission purposes only, the Employer’s address is :
Attention : …………………………
Address : ………………………….
The deadline for bid submission is : Date : …………………………..
Time : ………………………….. [Insert time that is immediately after submission deadline]
ITB 25.1
The Technical Bid opening shall take place at :
Address : ……………………… Date : …………………………..
Time : ………………………….

28. E. Evaluation and Comparison of Bids
ITB 34.1
a) Contractor’s proposed subcontracting: Maximum percentage of subcontracting permitted is: 25% of the total contract amount.
b) Sub-contractors’ qualification and experience will not be considered for evaluation of the Bidder. The Bidder on its own (without taking into account the qualification and experience of the sub-contractor) should meet the qualification criteria.
ITB 35.5
The amount of the performance security be increased by Eight (8) percent of the quoted bid price.
ITB 41.4
For DP Funded: Not Applicable
[For GoN funded delete this row]

29. Section III: Evaluation and Qualification Criteria
This Section contains all the criteria that the Employer shall use to evaluate bids and qualify Bidders
by post-qualification exercise. GoN/DP requires bidders to be qualified by meeting predefined, p
recise minimum requirements. The method sets pass-fail criteria, which, if not met by the bidder, results in disqualification.
In accordance with ITB 32 and ITB 35, no other methods, criteria and factors shall be used. The Bidder shall provide all the information requested in the forms included in Section IV (Bidding Forms).
1. Evaluation
In addition to the criteria listed in ITB 35.2 (a) - (e) the following criteria shall apply:
Note:
Use the evaluation criteria listed below as appropriate and required for the project.
1.1 Adequacy of Technical Proposal
the requirements stipulated in Section VI (Works Requirements).
1.2 Multiple Contracts
Multiple Contracts, if permitted under ITB 35.4, will be evaluated as follows:
Award Criteria for Multiple Contracts [ITB 35.4:
Bidders have the option to Bid for any one or more Contracts.
Qualification Criteria for Multiple Contracts:
The criteria for qualification shall be the sum of the minimum requirements for respective individual contracts
Contract 1: N1 contracts, each of minimum value V1;
Contract 2: N2 contracts, each of minimum value V2;
Contract 3: N3 contracts, each of minimum value V3;
----etc.
and
Total number of contracts is equal or less than N1 + N2 + N3 +--but the total value of all such contracts is
equal or more than N1 x V1 + N2 x V2 + N3 x V
1.3In Case, other than Multiple Contracts
1.4 Completion Time
An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows:
[insert project specific requirements]
1.5 Alternative Technical Solutions
Alternative technical solutions, if permitted under ITB 13.4, will be evaluated as follows:
1.6 Quantifiable Nonconformities and Omissions
Subject to ITB 14.2 and ITB 35.2, the evaluated cost of quantifiable nonconformities including omissions, is determined as follows:
[Insert in bidding document: “Pursuant to ITB 31.3, the cost of all quantifiable nonmaterial nonconformities shall be evaluated,
but excluding omission of prices in the BoQ.The Employer will make its own assessment of the cost of any nonmaterial nonconformities
and omissions for the purpose of ensuring fair comparison of bids.”]

30. Bid Security Bank Guarantee
Bank’s Name, and Address of Issuing Branch or Office (On Letter head of the Commercial bank or any Financial Institution eligible to issue Bank Guarantee as per prevailing Law)
Beneficiary: name and address of Employer ………………………………
Date: ……………………………………………Bid Security No.:
We have been informed that. …………. [insert name of the Bidder] (hereinafter called “the Bidder”)intends to submit its bid (hereinafter called “the Bid”) to you for the execution of …………...name of Contract . …………… under Invitation for Bids No. ……………… (“the IFB”).
Furthermore, we understand that, according to your conditions, bids must be supported by a bid guarantee.
At the request of the Bidder, we…………………. . name of Bank ……………….. hereby irrevocably undertake to pay you any sum or sums not exceeding in total an amount of . . ………...amount in figures ………………………. (. …………..amount in words ……………….) upon receipt by us of your first demand in writing accompanied by a written statement stating that the Bidder is in breach of its obligation(s) under the bid conditions, because the Bidder:
(a) has withdrawn or modifies its Bid:
i) during the period of bid validity specified by the Bidder on the Letter of Technical and PriceBid, in case of electronic submission
(ii) from the period twenty-four hours prior to bid submission deadline up to the period of bid validity specified by the Bidder on the Letter of Technical Bid and Price Bid, in case of hard copy submission; or
(b) does not accept the correction of errors in accordance with the Instructions to Bidders (hereinafter “the ITB”); or
(c) changes the prices or substance of the bid while providing information pursuant to clause of ITB; or
(d) having been notified of the acceptance of its Bid by the Employer during the period of bid validity, (i) fails or refuses to execute the Contract Agreement, or (ii) fails or refuses to furnish the performance security, in accordance with the ITB.
(e) is involved in fraud and corruption in accordance with the ITB
This guarantee will remain in force up to and including the date ………number…………days after the deadline for submission of Bids as such deadline is stated in the instructions to Bidders or as it may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived. Any demand in respect of this guarantee should reach the Bank not letter than the above date.
This Bank guarantee shall not be withdrawn or released merely upon return of the original guarantee by the Bidder unless notified by you for the release of the guarantee.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
. . .Bank’s seal and authorized signature(s) . . .
Note:
The bid security of ………..……………. has been counter guaranteed by the Bank ……..………..…… on
………… ……..………. (Applicable for Bid Security of Foreign Banks).

31. Evaluation and Qualification
Eligibility
Nationality
Conflict of Interest
Government/DP Eligibility
Government owned Entity
UN Eligibility
Other Eligibility
Firm Registration Certificate
Business Registration Certificate
VAT and PAN Registration Certificate
Tax Clearance Certificate/Tax return submission
PROJECT LAUNCH WORKSHOP – MODULE 9

32. Evaluation and Qualification
Pending Litigation
Financial Situation
Historical Financial Performance
Average Annual Construction Turnover
Financial Resources
Experience
General Construction Experience
Specific Construction Experience
Contract of Similar Size and Nature
Construction Experience in Key Activities
Personnel
Equipment
Subcontractors
PROJECT LAUNCH WORKSHOP – MODULE 9

33. Exercise A Work is to be completed within a period of 12 months.
The Estimated Cost of the Work is NRs. 12 million.
Prepare Evaluation & Qualification Criteria and SCC

34. Evaluation and Qualification: Pending Litigation
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Pending Litigation
All pending litigation shall be treated as resolved against the Bidder and so shall in total not represent more than …..……. percent of the Bidder’s net worth.
must meet requirement by itself or as partner to past or existing JV
not applicable
must meet requirement by itself or as partner to past or existing JV 50
Range is 50 to 100%
PROJECT LAUNCH WORKSHOP – MODULE 9

35. Evaluation and Qualification: Financial Situation
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Historical Financial Performance
Submission of audited balance sheets and income statements, for the last …… years to demonstrate the current soundness of the Bidder’s financial position. As a minimum, a Bidder's net worth calculated as the difference between total assets and total liabilities should be positive.
must meet requirement
not applicable 3
Range is 3 to 5 Years
PROJECT LAUNCH WORKSHOP – MODULE 9

36. Evaluation and Qualification: Financial Situation
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Average Annual Construction Turnover
Minimum average annual construction turnover of NRs. …………………., calculated as total certified payments received for construction contracts in progress or completed, within best three years out of last ten years..
must meet requirement
must meet
of the requirement
25%
40%
18 million
Normally 1.5 times V/T, where V is Estimated Cost and T is Contract Duration in Years.
PROJECT LAUNCH WORKSHOP – MODULE 9

37. Evaluation and Qualification: Financial Situation
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Financial Resources
Using Forms FIN – 3 and FIN in Section IV (Bidding Forms) the Bidder must demonstrate access to, or availability of, financial resources such as liquid assets, unencumbered real assets, lines of credit, and other financial means, other than any contractual advance payments to meet its current contract commitments, plus:
the following cash-flow requirement NRs ………..……………
must meet requirement
must meet
of the requirement
25%
40%
Not to Exceed Cash Flow requirement for six month based on Straight Line Projection. Range is generally 4 to 6 month.
4 million
PROJECT LAUNCH WORKSHOP – MODULE 9

38. Evaluation and Qualification: Experience
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
General Construction Experience
Experience under construction contracts in the role of contractor, subcontractor, or management contractor for at least the last ……. years prior to the applications submission deadline.
must meet requirement
not applicable 5
Time Period is normally 5 Years or more, BUT may be reduced to 3 Years, according to nature of the works.
PROJECT LAUNCH WORKSHOP – MODULE 9

39. Evaluation and Qualification: Experience
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Specific Construction Experience: Contracts of Similar Size and Nature
Participation as Prime contractor, management contractor, or subcontractor, in at least ….…. contracts within the last ten (10) years, each with a value of at least NRs ….…………... that have been successfully or are substantially completed and that are similar to the proposed works. The similarity shall be based on the physical size, complexity, methods, technology or other characteristics as described in Section VI, Works Requirements.
must meet requirement
not applicable 1
9.6 million
Range is 1 to 2 Contracts
Usually 80% of the Estimated value of the Contract
PROJECT LAUNCH WORKSHOP – MODULE 9

40. Evaluation and Qualification: Experience
Criteria
Compliance Requirement
Requirement
Single Entity
Joint Venture
All Partners Combined
Each Partner
One Partner
Specific Construction Experience: Construction Experience in Key Activities
For the above or other contracts executed during the period stipulated in 2.4.2(a) above, a minimum construction experience in the following key activities:
must meet
all requirements
all requirements
not applicable
not applicable
??? ????
PROJECT LAUNCH WORKSHOP – MODULE 9

41. Evaluation and Qualification: Personnel
No.
Position
Total Work
Experience [years]
Experience
In Similar Works [years] 1
Contract Manager/Engineer? 10 5 2
Lab Technician? 3
PROJECT LAUNCH WORKSHOP – MODULE 9

42. Evaluation and Qualification: Equipment
No.
Equipment Type and Characteristics
Minimum Number Required 1
Level 2
Needle Vibrator? 3
PROJECT LAUNCH WORKSHOP – MODULE 9

43. Standard Bidding Forms are:
Forms provided by the Employer that the Bidder must complete and include in its Bid
Standard Bidding Forms are:
Letter of Bid (Technical/Price)
Bid Security / Bid-Securing Declaration
Technical Proposal Format
Personnel/Equipment Forms
Bidder’s Qualification Forms

44. Bidding Forms Letter of Bid (Technical/Price)
Constitutes formal confirmation by bidder to execute and complete the works specified
Bid Security: Form of unconditional bank guarantee
Purpose: To ensure that validity of bid will be maintained until contract is awarded or until expiration of bid validity, and until performance guarantee is furnished
Technical Proposal
PER – 1, PER – 2, Equipment, Site Organization, Method Statement, Mobilization Schedule, Construction Schedule
Bidder’s Qualification Forms
ELI – 1, ELI – 2, LIT – 1, FIN – 1, FIN – 2, FIN – 3, FIN – 4, EXP – 1, EXP – 2(a), EXP – 2(b).

45. Preparation of Specs. and BOQ
Precise and clear Technical Specification
Permit widest possible competition
Clear statement of the required standards of materials, Plant, other supplies, and workmanship
Specifications not to be restrictive
Required quantity with cross reference to specification

46. General Conditions of Contract (GCC)
This Section of the Bidding Documents should provide:
Information on Matters governing the performance of the Contractor
Payments under the Contract
Matters affecting the risks, rights, and obligations of the parties
If duplication of a subject is inevitable in the different sections of the documents, care must be exercised to avoid contradictions between clauses dealing with the same matter.
PROJECT LAUNCH WORKSHOP – MODULE 9

47. General Conditions of Contract (GCC)
To be read in conjunction with the Special Conditions of Contract and other documents as listed in Bidding document,
Should fairly express the Rights & Obligations of both parties,
To be written in Simple language and Standard clauses with no change,
Standard CoC can be different for Large, Medium, Small, admeasurement, lump sum and design and build contracts
GCC cannot be Changed /modified- Modification shall be made in SCC, If new clauses is necessary then such clauses need to be added in SCC and the information to this regard need to mention in GCC to that extent

48. Special Conditions of Contract (SCC)
Special Conditions of Contract provides contract specific information in relation to Clauses in CoC,
If provisions in CoC are not relevant to the Contract, those should be marked “NA” (Not applicable).
If provisions in CoC are not sufficient to describe the contract specific information, those clauses may be modified or some new provisions may be added, as needed.
Special Conditions of Contract to be filled by the Employer before issuance of Bidding documents

49. Special Conditions of Contract
GCC 1.1(q)
The Employer is
GCC 1.1 (v)
The Intended Completion Date for the whole of the Works shall be ...
GCC 1.1(bb) & 10.1
The Project Manager is [insert name of Project Manager]
The Project Manager and Engineer are synonyms.
GCC (ee)
The Site is located at ... [insert location] and is defined in drawings No.
GCC (hh)
The Start Date shall be [insert date]
GCC 1.1 (ll)
The Works consist of [insert the name of Works to be completed by the Contractor].
GCC 2.2
Sectional Completions are: [insert detail if applicable]
12 months
PROJECT LAUNCH WORKSHOP – MODULE 9

50. Special Conditions of Contract
GCC 2.3(i)
The following documents also form part of the Contract:
GCC 3.1
The language of the contract is English/Nepali
The law that applies to the Contract is the law of NEPAL.
GCC 11.1
The Project Manager …………. Delegate any of his duties and responsibilities
GCC 14.1
Schedule of other contractors ……..[Insert details as appropriate]
GCC 19.1
The minimum insurance amounts and deductibles shall be:
1. The minimum cover for loss of or damage to the Works, Plant and Materials is:
2. The maximum deductible for insurance of the Works and of Plant and Materials is:
3. The minimum cover for loss or damage to Equipment is :
4. . The maximum deductible for insurance of Equipment is:
may
110 % of the Contract Amount
NRs. 100,000.00
NRs. 1,000,000.00
NRs. 50,000.00
PROJECT LAUNCH WORKSHOP – MODULE 9

51. Special Conditions of Contract
GCC 19.1
5. . The minimum for insurance of other property is:
with unlimited number of occurrences
6. . The maximum deductible for insurance of other property is :
7. The minimum cover for personal injury or death insurance
i. for the Contractor’s employees is that specified in the Labour act of Nepal and
ii. for other people is : with an unlimited number of occurrences
GCC 20.1
Site Investigation Reports are:
GCC 23.1
The following shall be designed by the Contractor: [insert as appropriate]
GCC 26.1
The Site Possession Date(s) shall be:
GCC 30.1
The place of arbitration shall be: [insert place]
NRs. 1,000,000.00
NRs. 50,000.00
NRs. 1,000,000.00
15 days?
PROJECT LAUNCH WORKSHOP – MODULE 9

52. Special Conditions of Contract
GCC 34.1
The Contractor shall submit for approval a Program for the Works within …………… days from the date of the Letter of Acceptance.
GCC 34.3
The period between Program updates is … days.
The amount to be withheld for late submission of an updated Program is
GCC 42.1
The Defects Liability Period is: days.
GCC 49.1
[insert the prevailing interest rate …………..]
15/30
60/90
NRs. 100,000.00?
365
Ten percent?
PROJECT LAUNCH WORKSHOP – MODULE 9

53. Special Conditions of Contract
is not
GCC 53.1
The Contract subject to price adjustment in accordance with GCC Clause 45.1, and the following information regarding coefficients apply.
The coefficients and indices for adjustment of prices in Nepalese Rupees shall be as specified in the Table of Adjustment Data submitted by the bidder together with the Letter of Price Bid which is approved by the Project Manager.
GCC 53.6
Base Price of Construction Materials [to be listed]
GCC 53.7
The Price Adjustment amount shall be limited to a maximum [Insert percent] percentage of the initial Contract Amount [normally 25 %]
GCC 54.1
The proportion of payments retained is: 5 (FIVE) PERCENT
GCC 55.1
The liquidated damages for the whole of the Works are % of the final Contract Price per day. The maximum amount of liquidated damages for the whole of the Works is 10 PERCENT of the final Contract Price.
does not
Contract IS subject to PA in accordance with clause 53.6 in our case.
PROJECT LAUNCH WORKSHOP – MODULE 9

54. Special Conditions of Contract
GCC 56.1
The Bonus for the whole of the Works is per day. The maximum amount of Bonus for the whole of the Works is of the final Contract Price.
GCC 57.1
The Advance Payments shall be: and shall be paid to the Contractor no later than
GCC 57.3
Deductions from … Exceeds 30% .Deduction will be at …………completely repaid prior to the end of 80% of the approved contract period.
GCC 58.1
The Performance Security amount is
[insert amount including an additional amount based on ITB 40.1 and/or ITB 35.5 if the Employer has increased the Performance Security amount]
GCC 71.1
The date by which operating and maintenance manuals are required is
The date by which “as built” drawings are required is
GCC 71.2
The amount to be withheld for failing to produce “as built” drawings and/or operating and maintenance manuals by the date required in GCC is
GCC 72.3 (i)
The maximum number of days is:
0.05 % BUT only when time fixed properly
20%??
30 days?, if not paid: Compensation Event
40 %
5 %
Not Applicable
30 days after completion?? DLP ??
NRs. 100,000.00???
200 days
PROJECT LAUNCH WORKSHOP – MODULE 9

55. Special Conditions of Contract
GCC 80
The Project Manager has to obtain the specific approval of the Employer for taking any of the following actions:
a. Approving subcontracting of any part of the works under General Conditions of Contract Clause 13;
b. Certifying additional costs determined under General Conditions of Contract Clause 50;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under General Conditions of Contract Clause 35;
e. Issuing a Variation under General Conditions of Contract Clause 1 and 46, except in an emergency situation, as reasonably determined by the Engineer; emergency situation may be defined as the situation when protective measures must be taken for the safety of life or of the works or of adjoining property.
f. Adjustment of rates under General Conditions of Contract Clause 45;
PROJECT LAUNCH WORKSHOP – MODULE 9

56. Points to Note:
Be aware to recent procurement Act provisions and Bidding Document Preparation:
PP Act in Force (2063 Paush 30, First Amendment on 2073 Asadh 30)
PP Regulation (2064 Bhadra 3). Eighth amendment on 2076 Shrawan 16
Use PPMO’s model SBD (
Clauses/Requirements of SBD to be Made Consistent With the ACT and REGULATION
If Bidding Documents clauses/ provisions contradicted with PPA & PPR then the PP Law apply

57. Thank You email: suresh.pradhan74@yahoo.com Cell: 9841399752