Ak contract management

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Types of Contracts used in
Highway Sector
CONTRACT FOR CIVIL WORKS
 Engineering Project Construction (EPC) contracts
 Item Rate Contract
 Lump Sum Contract
 Build Operate Transfer (BOT) contracts
 BOT (Toll) contracts
 BOT (Annuity) contracts
CONTRACT FOR SERVICES
 Consultancy contracts for DPR
 Consultancy contracts for Supervision (EPC)
 Consultancy contracts for Independent Engineer (BOT)
 Consultancy contracts of specialized nature—studies, financial advice, management
matters, database, etc.
 Minimum cost,QCB,QCBS,etc

Standard Bidding Documents
 India has large number of construction
organizations under the Central Government, State
Governments and other public bodies in addition to
the private bodies. Each organization has its own
bidding document.
 Standard Bidding documents, enable understanding
of the conditions by the parties for reacting uniformly
and expeditiously, making them know the
responsibilities, duties and risks involved
clearly. The same facilitates training of personnel
also.

Standard Bidding Documents
 FIDIC conditions of contract are universally
used as standard bidding documents
throughout the world. In India, however, these
have become prevalent only in the past 2–3
decades, which needs to be taken further.

FIDIC is the French acronym for the “International Federation of
Consulting Engineers”
FIDIC, founded in 1913, to promote professional interests of the
member associations & to disseminate information on contract
conditions
Today FIDIC membership includes associations of consulting
Engineers from 80 countries
1

International competitive bidding has become a norm in Indian
infrastructure project development
Familiarisation with international contract conditions is important
for all concerned
FIDIC has developed many standard conditions of contract for
construction & project development
Document universally accepted
World Bank, ADB insist on FIDIC for Indian jobs
Suitable for Domestic Contracts as well.

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PART 1 – BIDDING PROCEDURES
Invitation for Bids
Section 1 : Instructions to Bidders (ITB)
Section 2 : Bid Data Sheet (BDS)
Section 3 : Evaluation & Qualification Criteria
Section 4 : Bidding Forms
Bill of Quantities
Section 5 : Eligible Countries

8
PART 2 – Works Requirements
 Section 6 – Works Requirements
PART 3 – Conditions of Contracts
 Section 7 – General Conditions of Contract
(G C C)
 Section 8 – Particular Conditions of Contract
(P C C)

9
SECTION I -- INSTRUCTIONS TO
BIDDERS
(I T B)
(Important Provisions)

SECTION I -- INSTRUCTIONS TO
BIDDERS
 This Section provides relevant information to
help Bidders prepare their bids. Information is
also provided on the submission, opening, and
evaluation of bids and on the award of
Contracts. Section I contains provisions that
are to be used without modification.
10

Section II. Bid Data Sheet (BDS)
 This Section consists of provisions that are
specific to each procurement and that
supplement the information or requirements
included in Section I, Instructions to Bidders.
11

Section III. Evaluation and
Qualification Criteria
 This Section contains the criteria to determine
the lowest evaluated bid and to ascertain the
continued qualification of the Bidder to perform
the contract.
12

Section IV: Bidding Forms
 This Section contains the forms which are to
be completed by the Bidder and submitted as
part of his Bid.
13

Section V. Eligible Countries
 This Section contains information regarding
eligible countries.
 Section VI. Works Requirements
 This Section contains the Specification, the
Drawings, and supplementary information that
describe the Works to be procured.
14

15
Section VII. General Conditions
(GC)
This Section contains the general clauses to
be applied in all contracts. The text of the
clauses in this Section shall not be modified.
 Section VIII. Particular Conditions
(PC)
 This Section consists of Part A, Contract Data,
which contains data, and Part B, Specific
Provisions, which contains clauses specific to
each contract. The contents of this Section
supplement the General Conditions and shall
be prepared by the Employer.

Section 1: Instructions to Bidders
A. General
Scope of Bid, Source of funds,Fraud & corruption,
Eligible Bidders etc
B. Contents of Bidding Document
Sections of Bidding Document
Clarification, Site Visit , Pre-Bid Meeting
Amendment of Bidding Document
C. Preparation of Bids
D. Submission and Opening of Bids
E. Evaluation and Comparison of Bids
F. Award of Contracts 16

17
General
(Important Clauses)
 “Corrupt practice” means offering, giving, receiving, or
soliciting to influence action in procurement process or in
contract execution 3.1
 “Fraudulent practice”
is any act or omission, including a misrepresentation,
that knowingly or recklessly misleads, or attempts to
mislead, a party to obtain a financial or other benefit or
to avoid an obligation;
3.1

 ―collusive practice‖ is an arrangement
between two or more parties designed to
achieve an improper purpose, including to
influence improperly the actions of another
party 3.1
 ―coercive practice‖ is impairing or harming, or
threatening to impair or harm, directly or
indirectly, any party or the property of the party
to influence improperly the actions of a party
3.1
18

 obstructive practice‖ is
deliberately destroying, falsifying, altering or
concealing of evidence material to the investigatio
or making false statements to investigators in orde
to materially impede a Bank investigation into
allegations of a corrupt, fraudulent, coercive or
collusive practice; and/or threatening, harassing o
intimidating any party to prevent it from disclosing
its knowledge of matters relevant to the
investigation or from pursuing the investigation

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. B. Contents of Bidding Document
 Bidder to contact Employer in writing
for clarification 7.1
 Raise questions in pre-bid meeting 7.4
 Employer will respond & inform all Bidders 7.6
& if necessary amend Bidding Document.
Amendment of Bidding Document 8.1-8.3

C. Preparation of Bids
Cost of Bidding 9.1
Language of Bid 10
21

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Some Important Provisions
 Duties & Taxes etc payable by Contractor as of 28 days prior
to dead line for submission of bid (Base Date) to be included
in his prices. 14.6
 Currencies of Bid and Payment 15.1
 Technical proposal to include work methods, equipment &
personnel statements etc. 16.1
 Furnish information to establish fulfillment of Qualification
Criteria 17.1
Period of Validity 18.1
Bid Security 19.1

23
D. Submission & opening of Bids 21.1-25.4
E. Evaluation & Comparison of Bids
Bids of Bidder’s meeting qualifying
criteria only would be opened.
Unopened Price Bids would be returned.
F. Award of Contract
26.1-34.5
32.3

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 Within 28 days Contractor to furnish
Performance Security 41.1
 Employer to forfeit bid security & (may) award
to next lowest if Performance Security not
submitted 41.2

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Section 2- Bid Data Sheet(BDS)
 Contains name of Employer, date, time
& place of pre-bid meeting & opening of bids
amendments etc.

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Section 3 - Evaluation &
Qualification Criteria
 Technical Proposal
Methodology, capacity to mobilize key equipment
& personnel
 Non performing contracts
 Financial performance & financial resources
 Construction experience
 Key personnel & equipment indicated

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Section 4 - Bidding Forms
Section 5 - Eligible Countries
Section 6 - Employer’s Requirements
Specifications, Drawings &
Supplementary Information
Section 7 - Conditions of Contract
Section 8 - Particular Conditions of Contract

28
Why FIDIC (MDB 2010Edition) Conditions
of Contract?
International Federation of Consulting Engineers
 80 Member Countries representing 15 Lacs
professionals
 Formed in 1913
 Keeps updating at regular intervals
 Assists in Project Execution

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1st Edition in 1957
2nd Edition in1969
3rd Edition in 1977
4th Edition in 1987
5th Edition in 1999
May,2010(Revision)
Aug,2010(Revision)

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 Employer to pay Contractor’s IPC within 56
days of receipt of Contractor’s Statement by
Engineer
 Employer to give notice to Contractor before
making deductions.

36
 Designer’s risks are; Design failure leading to
forfeiture of Performance security,
Performance indemnity insurance, Retention
money and last but not the least, loss of
Professional reputation

40
– Contingency Planning by identifying risks &
preparing multiple detailed plan to handle
– Accept a Risk not done where consequences are
severe

43
 Provide nil or minimum amendments in
Conditions of Contract/ (Particular Conditions
of Contract)

48
 Employer’s Personnel means Engineer,
assistants & other staff of Employer &
Engineer 1.1.2.6
 Engineer means person appointed by Employer
as mentioned in Contract Data 1.1.2.4

52
 Performance Certificate
– Issued by Engineer within 28 days after
expiry of latest Defects Notification
Period. Will mean acceptance of Works &
end of Contractor’s obligations (11.9)
1.1.3.8

57
 Unforeseeable
– Not reasonably foreseeable by
experienced Contractor by Base Date
 Section
– Part of Works as specified in
Contract Data
.Variation
-Any change to the work
1.1.6.8
1.1.5.6
1.1.6.9

72
 Contractor responsible for care of Works
from Commencement Date to issue of
Taking-Over Certificate. Thereafter
Employer is responsible 17.2

80
– Quality Assurance & monitoring system
– (Quality & Safety Officer designated by Engineer out of his
team)
– Maintenance Manual by Engineer

85
 Make advance payment to Contractor for
mobilization & cash flow support as per
Contract Data
 Pay IPC within 56 days after receipt of
Statement by Engineer
14.2
14.7

96
 Employer to inform Contractor if any
change in Engineer’s authority
 Employer deemed to have given approval to
Engineer whenever he exercises authority
where prior approval is to be taken
3.1
3.1

109
 Remove any Defects during Defects
Notification Period
 Obtain Performance Certificate & payment
against Final Payment Certificate.

111
 Notify Engineer if Works are likely to be
delayed for want of drawings/ instructions
 Further notify Engineer for more time &
cost if warranted
1.9

113
 Comply with applicable laws & pay
taxes & duties
 Notify Employer name of authorized
leader in case of joint venture
1.13
1.14

118
 Monthly progress reports to be furnished
to Engineer (6 copies) within 7 days of
next month
4.21

125
 Only Performance Certificate will mean
acceptance of Works 11.9
 Remove equipment surplus material etc.
within 28 days of issue of Performance
Certificate. 11.11

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