Procurement of Small Works: Standard Bidding Document
Procurement of Small Works: Standard Bidding Document
For the
Procurement of
Small Works
May 2011
Notice to Users
1. This Standard Bidding Document (SBD) has been prepared by the Bureau of Public
Procurement for the Procurement of Small Works and Related Services under National
Competitive Tendering (NCT) when financed by the National Budget and to enable a
Procuring Entity to select the lowest evaluated tender.
2. This STD dated ……is in accordance with the Procurement Act, and the policies and
procedures of the Regulations for Goods and Works, among others paragraphs 10-12
regarding the eligibility of Tenderers, and has been adapted to the needs of Nigeria
from internationally acceptable model formats. The STD when properly completed will
provide all the information that a Tenderer needs in order to prepare and submit a
Tender. This should provide a sound basis on which the Procuring Entity can fairly,
transparently and accurately carry out a Tender evaluation process on the Tenders
submitted by the Tenderers.
3. For small, lower value works usually no pre-qualification process takes place before the
Tender Document is issued. This document may be used for the Open Tendering method
and for the Selective Tendering method (“Shopping”), whereby Tenders are invited from
a list of pre-selected Tenderers.
4. This STD is for lump sum type Contracts priced against an activity schedule, listing the
main activities. A Breakdown of Lump Sum Prices showing rates and prices for all
items of the Works described in the Schedule of Works, including the delivery of
materials to the Site is provided separately to give a basis for processing progress
payments to the Contractor
Lump sum contracts are used for buildings, rehabilitation and other forms of construction
where the Works are well defined and are unlikely to change in quantity or specification,
and where encountering difficult or unforeseen site conditions (for example, hidden
foundation problems) is unlikely.
5. The following guidelines apply for the Procuring Entity when using this STD:
(a) check the relevance of the provisions of the STD against the requirements of
the specific Works to be procured;
(b) tailor the document to the circumstances of the particular Project. The
Procuring Entity should only introduce such adjustments in the Sections of the
STD which are specifically designed for this purpose: Section 2: the Special
Instructions to Tenderers (SIT); Section 4: the Special Conditions of Contract
(SCC); Section 6: Schedule of Works, including Specifications, and Section 7:
Drawings. Those details not filled by the Procuring Entity are the
responsibility of the Tenderer;
(c) but never change the Instructions to Tenderers;
(d) provide the specific information needed in the italicized notes inside brackets
and boxes. These notes should also specify where the Tenderer should provide
information. Footnotes and boxes solely prepared for the use of the
Procuring Entity are not part of the final STD to be issued and should be
removed from the final version;
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(e) retain the other notes and boxes which specify that they are guidance to the
Tenderers.
(f) indicate the name of the project, the contract number, the name of the
Procuring Entity and the date of issue on the cover of the document;
6. The Standard Tender Document for the Procurement of Works has the following
contents:
IFT Invitation for Tender (IFT): This is a repeat of the IFT which was published
in the media and on the website of the Procuring Entity announcing the Tender
and providing the essential information to prospective Tenderers to invite
them to participate. It is reprinted here for reference purposes only
Section 1 Instructions to Tenderers (ITT): The ITT are standard instructions which
guide the Tenderers how to prepare their tenders. Standard instructions mean
that they cannot be modified by the Procuring Entity. The ITT are based on
the Procurement Law and the Regulations for Goods and Works, from which
the procedures for tender submission, opening, evaluation and Contract award
have been derived. They clarify the general evaluation criteria for the selection
of the lowest evaluated responsive tenderer and describe the basic
qualifications of the Tenderer needed for contract execution. This Section
cannot be changed under any circumstances.
Section 2 Special Instructions to Tenderers (SIT). In this Section the Procuring Entity
supplements or adapts the relevant clauses of the ITT to the specific tender
information or project requirements where needed (name of the Procuring
Entity, tender submission date, specific evaluation criteria, amount of tender
security (if applicable), tender validity period, alternative tenders permitted or
not, fixed price contract or contract subject to price adjustment, works
completion date, level of performance security and advance payment
guarantee (if required) to be provided at contract signature, etc). Modifications
to the Instructions to Tenderers cannot change the Law or the Regulations.
Section 3 General Conditions of Contract (GCC). The GCC define the conditions of
contract for Works in Nigeria and are also based on the Procurement Law and
the Regulations for Goods and Works. Like the ITT, the GCC cannot be
modified or adapted by the Procuring Entity except through the Special
Conditions of Contract.
Section 4 Special Conditions of Contract (SCC). The SCC supplement or adapt the
relevant clauses of the GCC to the specific requirements of the contract (in
particular with respect to the starting date, description of the Works, insurance
requirements, percentage of advance payment, payment schedule, price
adjustment formula, subcontracting provisions, relationship with the
supervising engineer, percentage of retention money and/or performance
guarantee (security), liquidated damages, bonus and penalty provisions,
arbitration rules, etc.).
Section 5 Standard Tender and Contract Forms. This Section provides the standard
format for the Tender Submission Sheet, (Form W-1), Tenderer
Information Sheet (Form W-2) and Tender Security (Form W-3), if
required, to be submitted by the Tenderer.
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This Section also contains the form of the Notification of Award (Form W-
4) and the Contract Agreement (Form W-5) which, when completed,
incorporates any corrections or modifications to the accepted Tender relating
to amendments permitted by the Instructions to Tenderers, the General
Conditions of Contract (GCC), and the Special Conditions of Contract (SCC).
The forms for Performance Security (Form W-6) and Advance Payment
Security (Form W-7) (when required) are to be completed by the successful
Tenderer after Contract award and these forms must be submitted by the
successful Tenderer as a condition of contract signature.
Section 6 Schedule of Works including Specifications: This Section provides the
items and estimated quantities of Works and Related Services to be performed,
as well as the detailed Technical Specifications that describe the Works to be
procured and must be carefully prepared by a Procuring Entity for each object
of procurement.
Section 7 Drawings: This Section contains any Drawings that supplement the Schedule
of Works including Specifications for the Works and Related Services to be
procured.
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FEDERAL REPUBLIC OF NIGERIA
[enter here the nature of the works and related services to be procured]
1.2 The successful Tenderer will be required to complete the Works within the
Time for Completion stated in the Special Conditions of Contract (SCC).
2. Source of 2.1 The Employer has been allocated public funds as indicated in the SIT and
Funds intends to apply a portion of the funds to eligible payments under the
Contract for which this Tender Document is issued
2.2 For the purpose of this provision, “public funds” means any monetary
resources appropriated to procuring entities under Government budget, or
revenues generated by statutory bodies and corporations, or aid grants and
credits put at the disposal of procuring entities by the development
partners through the Government.
3. Corrupt 3.1 The Government requires that Employers, as well as Tenderers and
Fraudulent Contractors shall observe the highest standard of ethics during the
Collusive, implementation of procurement proceedings and the execution of Contracts
Coercive or under public funds
Obstructive
Practices
3.3 Should any corrupt, fraudulent, collusive or coercive practice of any kind
come to the knowledge of the Employer, it shall, in the first place, allow the
Tenderer/Contractor to provide an explanation and shall, take actions as
above only when a satisfactory explanation is not received.
4. Eligible 4.1 [Tenderers of the categories specified in the SIT are eligible to participate in
Tenderers the Tender.]
4.4 When there are no enlisted contractors of the Employer to enable the use of
the Restricted Tendering method, and the Employer shall invite Tenders
using the Open Tendering Method (National Competitive Tendering), the
Tenderers shall provide satisfactory information to the Employer of their
capability and adequacy of resources to carry out the Contract effectively
and shall meet the following minimum qualifying criteria:
(a) average annual volume of construction turnover as specified in the SIT
during the period specified in the SIT;
(b) experience as prime Contractor or subcontractor in the construction of
at least the number of completed Contracts stated in the SIT of a nature
and complexity similar to the proposed work over the period stated in
the SIT; and
(c) liquid assets/ availability of funds and/or credit facilities from its
Banker’s to successfully complete the Contract, as specified in the SIT.
5. Site Visit 5.1 The Tenderer, at the Tenderer’s own responsibility and risk, is
encouraged to visit and examine the Site and obtain all information that may be
necessary for preparing the Tender and entering into a Contract for
performance of the Works. The costs of visiting the Site shall be at the
Tenderer’s own expense.
B. Tender Document
6. Sections of 6.1 The sections comprising the Tender Document are listed below and should
the Tender be read in conjunction with any Amendment issued in accordance with ITT
Document Clause 9:
Section 1: Instructions to Tenderers
Section 2: Special Instructions To Tenderers
Section 3: General Conditions of Contract
Section 4: Special Conditions of Contract
Section 5: Tender and Contract Forms
Section 6: Schedule of Works & Technical Specifications
Section 7: Drawings
8. Amendment 8.1 At any time prior to the deadline for submission of Tenders, the Employer
of the Tender for any reason, on its own initiative or in response to a clarification
Document: request in writing from a Tenderer, having purchased the Tender
Document, may amend the Tender Document by issuing an amendment.
8.2 Any amendment issued shall become an integral part of the Tender
Document and shall be communicated in writing to all those who have
purchased the Tender Document.
C. Tender Preparation
9. Only one 9.1 A Tenderer shall submit only one (1) Tender for each lot. A Tenderer
Tender who submits or participates in more than one (1) Tender will cause all the
Tenders with that Tenderers participation to be rejected.
10. Preparation 10.1 The Tenderer shall bear all costs associated with the
Costs of the preparation and submission of its Tender, and the Employer shall not be
Tender responsible or liable for those costs, regardless of the conduct or outcome
of the Tendering process.
11. Tender 11.1 The Tender, as well as all correspondence and documents relating to the
Language Tender shall be written in the English language.
12. Contents of 12.1 For the Restricted Tendering method using enlisted Contractors, the
the Tender Tender prepared by the Tenderer shall comprise the following:
(a) the Tender Submission Sheet (Form W-1);
(b) the completed Schedule of Works including Technical
Specifications (Section 6);
(c) the Tender Security in accordance with ITT Cub-Clause 15.2;
(d) the completed Tenderer Information Sheet (Form W-2);
(e) any other documents as specified in the SIT.
12.2 For the Open Tendering method (National Competitive Tendering), the
Tender prepared by the Tenderer shall comprise the following:
(a) the Tender Submission Sheet (Form W-1);
(b) the completed Schedule of Works (section 6);
(c) the Tender Security in accordance with ITT Sub-Clause 15.2;
(d) the documentary evidence in accordance with ITT Sub-Clause 4.4
establishing Tenderer’s eligibility to Tender, including the
14.3 The Tenderer shall fill in a lump sum price for each component of the
Works identified in the Schedule of Works. In addition, the Tenderer
shall provide a breakdown of the lump sum price(s) showing rates and
prices for all items of the Works described in the Schedule of Works.
14.4 The price to be quoted in the Tender Submission Sheet shall be the total
price of the Tender, excluding any discounts offered. In the case of a
discrepancy between the Tender Price quoted in figures and words the
Tender Price quoted in words shall prevail.
15. Validity and 15.1 Tenders shall remain valid for the period specified in the SIT after the
Security of date of Tender submission prescribed by the Employer, pursuant to ITT
Tenders Clause 18. A Tender valid for a shorter period shall be rejected by the
Employer as non-responsive.
15.2 The Tender Security shall at the Tenderer’s option, be either in the form of a bank
draft, pay order or an unconditional bank guarantee (Form W-3) issued by a
commercial Bank of Nigeria.
16. Tender 16.1 The Tenderer shall prepare one (1) original of the documents comprising
Format and the Tender as described in ITT Clause 12 and clearly mark it
Signing “ORIGINAL.” In addition, the Tenderer shall prepare the number of
copies of the Tender, as specified in the SIT and clearly mark each of
them “COPY.” In the event of any discrepancy between the original and
the copies, the original shall prevail.
D. Tender Submission
17. Tender 17.1 The Tenderer shall enclose the original in one (1) envelope and
Sealing and all the copies of the Tender in another envelope, duly marking the
Marking envelopes as “ORIGINAL” and “COPY.” These two (2) envelopes shall
then be enclosed in one (1) single outer envelope.
17.3 If all envelopes are not sealed and marked as required by ITT Sub-Clause
17.2, the Employer will assume no responsibility for the misplacement or
premature opening of the Tender
18. Tender 18.1 Tenders must be received by the Employer at the address specified in the
Submission SIT not later than the date and time specified in the SIT.
Deadline
18.2 Tenders may be hand delivered, posted by registered mail or sent by
courier. The Employer shall, on request, provide the Tenderer with a
receipt showing the date and time when its Tender was received.
18.3 The Employer may, at its discretion, extend the deadline for the
submission of Tenders by amending the Tender Document in accordance
with ITT Clause 8, in which case all rights and obligations of the
Employer and Tenderers previously subject to the deadline shall
thereafter be subject to the new deadline as extended.
19. Late Tenders 19.1 Any Tender received by the Employer after the deadline for submission
of Tenders in accordance with ITT Clause 18 shall be declared late, will
be rejected, and returned unopened to the Tenderer.
21. Tender Opening 21.1 The Employer shall open the Tenders in public, including
modifications or substitutions made pursuant to ITT Clause 20, at the
time, on the date and only at the one place specified in the SIT. Tenders
for which an acceptable notice of withdrawal has been submitted
pursuant to ITT Clause 20 shall not be opened. Tenderers or their
authorised representatives shall be allowed to attend and witness the
opening of Tenders, and shall sign a register evidencing their
attendance.
21.3 Minutes of the Tender opening shall be made by the Employer and
furnished to any Tenderer upon receipt of a written request. The
minutes shall include, as a minimum, the name of the Tenderer and
whether there has been a withdrawal, substitution or modification; the
Tender Price including any discounts and the presence or absence of a
Tender Security, if one was required.
21.4 Tenders not opened and read out at the Tender opening shall not be
considered, irrespective of the circumstances, and shall be returned
unopened to the Tenderer.
21.5 No Tender shall be rejected at the Tender opening, except for late
Tenders, which shall be returned unopened to the Tenderer pursuant to
ITT Clause 19
22. Confidentiality 22.1 After the opening of Tenders, information relating to the examination,
clarification, and evaluation of Tenders and recommendations for
award shall not be disclosed to Tenderers or other persons not officially
concerned with the evaluation process until after the award of the
Contract is announced.
24. Tenderer 24.1 Following the opening of Tenders and until the Contract is signed no
Contacting the Tenderer shall make any unsolicited communication to the Employer
Employer or try in any way to influence the Employer’s examination and
evaluation of Tenders.
24.3 Notwithstanding ITT Sub Clause 24.1, from the time of Tender
opening to the time of Contract award, if any Tenderer wishes to
contact the Employer on any matter related to the tendering process, it
should do so in writing.
27. Evaluation and 27.1 The Employer shall evaluate and compare only those Tenders
Comparison of determined to be substantially responsive to the requirements of the
Tenders Tender Document. Substantially responsive tenders are those which
fulfil the requirements of ITT Clauses 4 and 12.
27.2 The evaluation will take into account the corrected Tender Price and
discounts (if any).
27.3 The Employer will check substantially responsive Tenders for any
arithmetical errors including in the computation of the breakdown of
lump sum price(s). Where there is a discrepancy between the amounts
in figures and words, the amount in words will govern. If a Tenderer
refuses to accept the correction, its Tender shall be rejected. The
Employer shall correct arithmetical errors on the following basis :
(a) if there is a discrepancy between the unit price and the line item
total, the unit price shall prevail and the total price shall be
corrected, unless in the opinion of the Employer there is an obvious
misplacement of the decimal point in the unit price, in which case
the total price, as quoted, shall govern and the unit price shall be
corrected ; and
(b) where there is a discrepancy between the amounts in figures and
words, the amount in words will govern.
28. No Negotiations 28.1 No Negotiations shall be held with the lowest or any other Tenderer. A
Tenderer shall not be required, as a condition for award, to undertake
responsibilities not stipulated in the Tender document, to change its
price or otherwise modify its Tender.
29. Employer’s Right 29.1 The Employer reserves the right to accept any Tender, to annul the
to Accept or Reject Tender proceedings, or to reject any or all Tenders, at any time prior to
any or all Tenders Contract award, without thereby incurring any liability to Tenderers, or
any obligation to inform Tenderers of the grounds for the Employer’s
actions.
F. Contract Award
30. Award Criteria 30.1 The Employer shall award the Contract to the Tenderer whose offer is
substantially responsive to the Tender Document and that has been
determined to be the lowest evaluated Tender, provided that the Tenderer
is determined to be qualified to perform the Contract satisfactorily.
31. Notification of 31.1 Prior to the expiration of the period of Tender validity, the Employer
Award shall notify the successful Tenderer, in writing that its Tender has been
accepted.
33. Contract Signing 33.1 At the same time as the employer issues the notification of award, the
employer shall send the contract agreement and all documents forming the
contract to the successful tenderer.
33.2 Within twenty-one (21) days of receipt of the contract agreement, the
successful tenderer shall sign, date and return it to the employer.
33.3 Failure of the successful Tenderer to submit the Performance Security,
pursuant to ITT Sub-Clause 32.1, or sign the Contract, pursuant to ITT Sub-
Clause 33.2, shall constitute sufficient grounds for the annulment of the
award and forfeiture of the Tender Security. In that event, the Employer may
award the Contract to the next lowest evaluated responsive Tenderer at their
quoted price (corrected for arithmetical errors), who is assessed by the
Employer to be qualified to perform the Contract satisfactorily.
33.4 Immediately upon receipt of the signed Contract Agreement and Performance
Security from the successful Tenderer, the Employer shall discharge and
return the successful Tenderer’s Performance Security.
34. Information to
Tenderers.
34.1 Upon the successful Tenderer’s furnishing of the Performance Security
pursuant to ITT Clause 32, and signing of the Contract pursuant to ITT Clause
33, the Employer shall also notify all other Tenderers that their Tenders have
been unsuccessful.
34.2 The Employer shall promptly respond in writing to any unsuccessful
Tenderer who, after notification in accordance with ITT Sub-Clause xx.1,
requests in writing for the Employer to communicate the grounds on which its
Tender was not selected.
35.Tenderer’s Right
to Complain 35.1 Any Tenderer has the right to complain if it has suffered or may suffer loss
or damage in accordance with paragraphs 23-27 of the current Public
Procurement Regulations for Goods and Works.
35.2 The complaint shall firstly be processed through an administrative review
following the procedures set out in paragraph 24 of the Public Procurement
Regulations for Goods and Works. The place and address for the first step in
the submission of complaints to the Administrative Authority is provided in
the SIT.
35.3 If not satisfied with the outcome of the administrative review, the Tenderer
may complain to the BPP pursuant to paragraph 25 of the Public
Procurement Regulations for Goods and Works.
ITT Amendment of, and Supplements to, Clauses in the Instructions to Tenderers
Clause
A. General
ITT 1.1 The Employer is [state name of Employer] represented by [state name of
representative].
[the Employer is the unit or subdivision of the Procuring Entity which will issue the
Notification of Award and sign the Contract Agreement with the successful Tenderer.
Frequently the Employer is represented by a Chief Engineer, Superintending
Engineer, Executive Engineer, project director or other assigned person. See
Regulations for definition of a Procuring Entity.]
The number and identification of lots comprising the Tender lot are:
[if there is more than one lot, individual lots are to be identified in conformity with
Section 6: Schedule of Works].
ITT 2.1 The source of public funds is [state source FGN, or other source of funds]
ITT 2.3 The name of the Development Partner is [state name of Development Partner or
“None” as applicable].
ITT 4.1 [Choose option A or B, whichever is applicable, and delete the other option].
Option A: Restricted Tendering method:
The Invitation for Tenders is open to all Tenderers enlisted with [name of
Employer]. Option B: Open Tendering method
All Tenderers regardless of whether enlisted or not enlisted with the Employer may
submit Tenders providing they otherwise qualify.
ITT 4.4 [The following qualification criteria are only applicable for use with the Open
Tendering method. When adopting the Restricted Tendering method using enlisted
contractors, these criteria should not be used]
(b) Experience:
The required number of similar contracts completed shall be [insert number] over a
period of [insert number] years.
[the minimum number will depend upon the size and type of construction work, and
the Employer should make its own judgement based upon its experience in the sector
and construction industry. For small contracts, it could be (1) similar work during
the past 3 or 5 years].
B. Tender Document
ITT 7.1 For clarification of Tenders purposes only, the Employer’s address is:
Attention:
Address:
Telephone:
Facsimile number:
Electronic mail address:
C. Preparation of Tenders
ITT 12.1(e) Additional documents to be submitted by Tenderers are:
[list the additional documents required]
ITT 16.1 In addition to the original of the Tender, [ ] copies shall be submitted.
[usually only two copies are needed, ask for more only if they are essential].
D. Submission of Tenders
ITT 17.2 The inner and outer envelopes shall bear the following additional identification
marks:
[indicate any markings that are required on inner and outer envelopes
ITT 17.2 For Tender submission purposes only, the Employer’s address is:
Attention:
Address:
The deadline for the submission of Tenders is:
Time & Date
ITT 34.2 The name and address of the office where complaints to the Procuring Entity are to
be submitted under paragraph 21 of the Public Procurement Regulations for Goods
and Works is:
2. Interpretation 2.1 In interpreting the GCC, singular also means plural, male also means female
& Documents or neuter, and the other way around. Headings in the GCC shall not be
forming the deemed part thereof or be taken into consideration in the interpretation or
Contract construance of the Contract. Words have their normal meaning under the
language of the Contract unless specifically defined.
3.3 Should any corrupt, fraudulent, collusive or coercive practice of any kind
referred to in GCC Sub-Clause 3.4 come to the knowledge of the Employer, it
shall, in the first place, allow the Contractor to provide an explanation and shall,
take actions as stated in GCC Sub-Clause 3.2 only when a satisfactory
explanation is not received. Such exclusion and the reasons thereof, shall be
recorded in the record of the procurement proceedings and promptly
communicated to the Contractor concerned. Any communications between the
Contractor and the Employer related to matters of alleged corrupt, fraudulent,
collusive or coercive practices shall be in writing.
3.5 The Government requires that the Client’s personnel have an equal obligation
not to solicit, ask for and/or use coercive methods to obtain personal benefits in
connection with the said proceedings.
4.1 The Contract as well as all correspondence and documents relating to the
4. Governing
Contract exchanged by the Contractor and the Employer, shall be written in
Language and
English.
Law
4.2 The Contract shall be governed by and interpreted in accordance with the laws of
the Federal Republic of Nigeria.
5. Engineer’s 5.1 Except where otherwise specifically stated in the SCC, the Engineer will decide
Decision Contractual matters between the Employer and the Contractor in the role as
representative of the Employer.
6. Delegation 6.1 The Engineer may delegate any of his duties and responsibilities to his
representative, after notifying the Contractor, and may cancel any delegation,
without retroactivity, after notifying the Contractor.
8. Sub- 8.1 The Contractor shall not be permitted to subcontract any part of the Works,
Contracting nor shall the Contractor be allowed to assign the Contract in whole or in part.
& Assigning
9. Contractor’s 9.1 The Contractor shall employ the key personnel named in the Schedule of
Personnel Key Personnel, as referred to in the SCC, to carry out the functions stated in
the Schedule, or other personnel approved by the Engineer.
9.2 If the Engineer asks the Contractor to remove a person who is a member of
the Contractor’s staff or work force from the Site, he shall state the reasons,
and the Contractor shall ensure that the person leaves the Site within three (3)
days and has no further connection with the work in the Contract.
10. Welfare of 10.1 The Contractor shall provide proper accommodation to his labourers and
Labourers arrange proper water supply, conservancy and sanitation arrangements at the
and wages site in accordance with relevant regulations, rules and orders of the
government.
10.2 The Contractor shall pay reasonable wages to his labourers, and pay them
in time. [In the event of delay in payment the Employer may effect payments
to the labourers and recover the cost from the Contractor.]
11. Safety, 11.1 The Contractor shall throughout the execution and completion of the Works
Security and and the remedying of any defects therein :
Protection of
(a) have full regard for the safety of all persons entitled to be upon the
the
Site and keep the Site and the Works in an orderly state;
Environment
(b) provide and maintain at the Contractors own cost all lights, guards,
fencing, warning signs and watching for the protection of the Works or
for the safety on-site; and
(c) (c) take all reasonable steps to protect the environment on and off
the Site and to avoid damage or nuisance to persons or to property of
the public or others resulting from pollution, noise or other causes
arising as a consequence of the Contractors methods of operation.
12. Access to the 12.1 The Contractor shall allow the Engineer and any person authorised by the
Site Engineer access to the Site and to any place where work in connection with
the Contract is being carried out or is intended to be carried out.
13. Documents, 13.1 The Contractor shall furnish to the Engineer all information, schedules,
Information. calculations and supporting documentation that may be requested of it.
14. Property 14.1 All materials on the Site, Plant, Equipment, Temporary Works and Works
shall be deemed to be the property of the Employer if the Contract is
terminated because of the Contractor’s default.
15.2 The Contractor shall deliver policies and certificates of insurance to the
Engineer, for the Engineer’s approval, before the Start Date.
15.3 If the Contractor does not provide any of the policies and certificates
required, the Employer may effect the insurance which the Contractor
should have provided and recover the premiums the Employer has paid
from payments otherwise due to the Contractor or, if no payment is due, the
payment of the premiums shall be a debt due.
15.4 Alterations to the terms of insurance shall not be made without the approval
of the Engineer.
15.5 Both parties shall comply with conditions of the insurance policies.
16. Possession of 16.1 The Employer shall give possession of the Site, or parts of the Site, to the
the Site Contractor on the date(s) specified in the SCC.
17. Commencem 17.1 The Contractor may commence execution of the Works on the Start Date,
ent of Works or other such date as specified in the SCC, and shall carry out the Works in
an expeditious manner.
17.2 If the Contractor fails to commence the works within the above stated
period, the Employer may, at his sole discretion, terminate the Contract and
forfeit the Performance Security, if any.
18. Completion 18.1 The Contractor shall complete the Works within the number of days stated
of Works in the SCC from the date of commencing the Works on the Site.
19. Programme 19.1 Within the time stated in the SCC, the Contractor shall submit to the
of Works Engineer for approval a Programme showing the general methods,
arrangements, order and timing for all the activities of the Works.
19.2 The Contractor shall submit to the Engineer for approval an updated
Programme at intervals no longer than the period stated in the SCC.
20.1 The Contractor shall notify the Engineer in writing at the earliest opportunity
20. Early
of specific likely future events or circumstances that may adversely affect the
Warning
quality of the work, result in increase to the Contract Price or delay in the
execution of the Works.
21. Compens- 21.1 The following shall be Compensation Events:
ation Events (a) the Employer does not give access to the Site or part of the Site by
the Site Possession Date stated in the SCC; and
(b) if the payment is delayed pursuant to Clause 25.1.
21.2 If a Compensation Event would cause additional cost or would prevent the
work being completed before the Intended Completion Date, the Contract
Price shall be increased and/or the Intended Completion Date shall be
extended, as appropriate, by the Engineer.
22. Non- 22.1 The Contractor shall be paid for non-scheduled items of works only when
Scheduled the Engineer approves such works and at the rates and in the manner stated
Items of in the SCC.
Works
22.2 The priced Schedule of Works shall contain the priced activities for the
Works to be performed by the Contractor. The Schedule of Works is used to
monitor and control the performance of activities on which basis the Contractor
will be paid. If payment for Materials on Site shall be made separately, the
Contractor shall show delivery of Materials to the Site separately on the
Schedule of Works.
23. Schedule of 23.1 The priced Schedule of Works shall contain the priced activities for the Works
Works to be performed by the Contractor. The Schedule of Works is used to monitor
and control the performance of activities on which basis the Contractor will be
paid. If payment for Materials on Site shall be made separately, the Contractor
shall show delivery of Materials to the Site separately on the Schedule of
Works.
23.3 The Contractor shall be entirely responsible for all taxes, duties, license fees,
and other such levies. The Engineer shall adjust the Contract Price if taxes,
duties, and other levies are changed between the date 28 days before the
submission of bids for the Contract and the date of the last Completion
Certificate.
24.2 The Engineer shall check the Contractor’s monthly statement and certify
the amount to be paid to the Contractor.
24.4 The value of work executed shall comprise the value of the completed
activities in the Schedule of Works.
24.5 The value of work executed shall include the valuation of Compensation
Events.
24.6 The Engineer may exclude any item certified in previous certificates or
reduce the proportion of any item previously certified in any certificate in
the light of later information.
25. Payments and 25.1 The Employer shall pay the Contractor the amounts certified by the
Currency Engineer within twenty-eight (28) days of the date of each certificate. All
payments shall be made in Naira.
25.2 The Employer shall make Advance Payment to the Contractor of the
amounts and by the dates stated in the SCC against provision by the
Contractor of an unconditional Bank Guarantee, (Form W-7).
25.3 The Contractor is to use the advance payment only to pay for Equipment,
Plant, Materials, and mobilisation expenses required specifically for the
execution of the Contract. The Contractor shall demonstrate that the
advance payment has been used in this way by supplying copies of invoices
or other documents to the Employer.
26. Retention 26.1 The Employer shall retain from each payment due to the Contractor the
proportion stated in the SCC until the completion of the whole of the
Works.
26.2 On completion of the whole of the Works, half the total amount retained
shall be repaid to the Contractor, the remaining half shall be repaid when
the Defects Liability Period has passed and the Engineer has certified that
all Defects notified by the Engineer to the Contractor before the end of this
period have been corrected.
27. Liquidated 27.1 The Contractor shall pay liquidated damages to the Employer at the rate per
Damages day stated in the SCC for each day that the Completion Date is later than
the Intended Completion date for the works or for any part thereof.
29. Cost of 29.1 Loss or damage to the Works or Materials to be incorporated in the Works
Repairs between the Start Date and the end of the Defects Correction periods shall
be remedied by the Contractor at the Contractor’s cost if the loss or damage
arises from the Contractor’s acts or omissions
30. Completion 30.1 The Contractor shall request the Engineer to issue a Certificate of
Completion of the Works, and the Engineer will do so upon deciding that
the work is completed.
31. Correction of 31.1 The Engineer shall give notice to the Contractor of any Defects before the
Defects end of the Defects Liability Period, which begins at Completion, and is
defined in the SCC. The Defects Liability Period shall be extended for as
long as the Defects remain to be corrected.
31.2 If the Contractor has not corrected a Defect within the time specified in the
Engineer’s notice, the Engineer will assess the cost of having the Defect
corrected, and the Contractor will pay this amount.
32. Taking Over 32.1 The Employer shall take over the Site and the Works within seven (7) days
of the Engineer issuing a Certificate of Completion.
33. Final Account 33.1 The Contractor shall supply the Engineer a detailed account of the total
amount that the Contractor considers payable under the Contract. The
Engineer shall certify any final payment that is due to the Contractor within
twenty-one (21) days of receiving the Contractor’s account if it is correct
and complete.
33.2 The Employer shall effect payment of the final account within twenty-eight
(28) days from the date of certification by the Engineer.
34. Termination 34.1 The Employer or the Contractor by giving twenty-eight (28) days written
notice of default to the other party, may terminate the Contract in whole or
in part if the other party causes a fundamental breach of Contract.
34.3 The Employer and the Contractor may at any time terminate the Contract
by giving notice to the other party if either of the parties becomes bankrupt
or otherwise insolvent. In such event, termination will be without
compensation to any party provided that such termination will not prejudice
or affect any right of action or remedy that has accrued or will accrue to the
other party.
34.4 Notwithstanding the above, the Employer may terminate the Contract for
convenience.
35. Payment 35.1 If the Contract is terminated because of a fundamental breach of Contract
upon by the Contractor, the Engineer shall issue a certificate for the value of the
Termination work done and Plant and Materials ordered less advance payments received
up to the date of the issue of the certificate and less the percentage to apply
to the value of the work not completed, as indicated in the SCC. Additional
Liquidated Damages shall not apply. If the total amount due to the
Employer exceeds any payment due to the Contractor, the difference shall
be a debt payable to the Employer.
36. Release from 36.1 If the Contract is frustrated by the outbreak of war or by any other event
Performance entirely outside the control of either the Employer or the Contractor, the
37. Settlement of 37.1 The Employer and the Contractor shall use their best efforts to settle
Disputes amicably all disputes arising out of or in connection with this Contract or its
interpretation.
37.2 Any dispute between the parties to the Contract that may not be settled
amicably will be referred to Arbitration at the initiative of either of the
parties.
37.3 The arbitration shall be conducted in accordance with the [Arbitration Act
(Act No of…..) of Nigeria] as at present in force and in the place shown in
the SCC.
Instructions for completing the Special Conditions of Contract are provided, as needed, in the notes
in italics mentioned for the relevant GCC Clauses.
Clause Amendments of, and Supplements to, Clauses in the General Conditions of
Contract
Ref
GCC 1.1(d) The Contractor is [name, address and name of authorised representative].
GCC 1.1(i) The Employer is [name, address and name of authorised representative].
GCC 1.1(m) The Works are [enter the name of the Works]
GCC 2.2(h) The additional documents forming part of this Contract are:
[if there are no additional documents state “No additional documents”.]
GCC 5.1 The Engineer shall obtain specific approval of the Employer before taking any of the
following actions:
GCC 15.1 For insurance purposes the type of cover required shall be:
Workers
GCC 17.1 Commencement of work shall be within [ ] days from the date of handing over
possession of the Site.
GCC 18.1 Completion of works shall be within [ ] days from the date of commencing the
works on the site.
GCC 19.1 The Contractor shall submit the first Programme of Works [….] days after signing
the Contract, and shall update the Programme every [……..] weeks during the period
& 19.2
of the Contract.
GCC 22.1 [ Enter here the agreed rates for non-scheduled items of work if known, if not known
then make the statement “The rates for non-scheduled items of works shall be
determined by the Engineer”.
GCC 25.2 An advance payment of 15 % of the Contract Price will be made to the Contractor
within (14) days of Contract signing date.
[usually, an advance payment is made for mobilisation, if admissible to the
Employer considering the nature of the works. The recommended maximum advance
is 15% of the Contract Price against an unconditional bank guarantee (Form W-7).
The procuring entity should amend this clause as required for the particular
procurement.]
GCC 26.1 The Retention shall be [insert percentage]% of the Contract Price.
(The retention should not exceed 5% if a performance guarantee is also required)
GCC 27.1 The liquidated damages for the whole of the Works are [percentage of the final
Contract Price] per day.
The maximum amount of liquidated damages for the whole of the Works is [insert
number] percent of the final Contract Price.
[usually, liquidated damages are set between 0.05 of one percent and 0.10 of one
percent per day (or half of one percent per week of delay) and the total amount is not
to exceed 10 percent of the Contract Price.]
A performance Security is required in the amount of [insert amount or percentage of
GCC 28.1 contract price]”
Or
A performance Security is not required.
Tender Forms
Contract Forms
Forms W1-W3 comprise part of the Tender Format and should be completed as stated in ITT Clause
12.
To:
We, the undersigned, offer to execute in conformity with the Conditions of Contract and associated
Contract Documents, the following Works and Related Services, viz:
Our Tender shall be valid for the period stated in the Special Instructions To Tenderers and it shall
remain binding upon us and may be accepted at any time before the expiration of that period. A
Tender Security in the amount stated in the Special Instructions To Tenderers is attached in the form
of a [bank draft, pay order, bank guarantee] valid for a period of 28 days beyond the Tender validity
date. [include this sentence only if a Tender Security is required].
If our Tender is accepted, we commit to obtaining a Performance Security in the amount stated in the
Special Instructions To Tenderers and valid for a period of 28 days beyond the issue of the Certificate
of Completion of Works.
We declare that we, and any subcontractors or Contractors for any part of the Contract have not been
declared ineligible by the Government of Nigeria on charges of engaging in corrupt, fraudulent,
collusive or coercive practices. Furthermore, we are aware of ITT Clause 3 concerning this and pledge
no not to indulge in such practices in competing for or in executing the Contract.
We are not participating as Tenderers in more than one Tender in this tendering process. We
understand that your written Notification of Award shall constitute the acceptance of our Tender and
shall become a binding Contract between us, until a formal Contract is prepared and executed.
We understand that you are not bound to accept the lowest evaluated Tender or any other Tender that
you may receive.
Signed
All Tenderers shall include the following information and documents with their Tenders:
Notes on Tenderer Information Sheet
The information to be filled in by Tenderers in the following pages will be used for purposes of
verification of eligibility and qualification of the Tenderer as provided for in relevant Clauses of the
Instructions to Tenderers.
The Tenderer, if prequalified earlier, should fill in updated information only.
Additional pages may be attached as necessary.
This information will not be incorporated in the Contract.
Tender No:
Invitation for Tender No:
2. Works in Hand
3. The Tenderer should list the Equipment deemed essential for carrying out the Works.
4. Evidence of financial capability to perform this Contract. The Tenderer should list cash in hand,
lines of credit, and attach supporting documentary evidence
1
2
3
4
5
6. Status of Enlistment:
_______________________________
[Signature and Seal of the Tenderer]
Name: _______________________
Address:______________________
_____________________________
_____________________________
_____________________________
Date: _________________
[this is the format for the Tender Security to be issued by a commercial Bank
of Nigeria in accordance with ITT Clause 15]
To:
We have been informed that [name of Tenderer] (hereinafter called “the Tenderer”) intends to submit to you its
Tender dated [date of Tender] (hereinafter called “the Tender”) for the execution of the Works of [description
of works] under the above Invitation for Tenders (hereinafter called “the IFT”).
Furthermore, we understand that, according to your conditions tenders must be supported by a Tender
Guarantee.
At the request of the Tenderer, we [name of bank] hereby irrevocably undertake to pay you, without cavil or
argument, any sum or sums not exceeding in total an amount of Naira [insert amount in figures and words]
upon receipt by us of your first written demand accompanied by a written statement that the Tenderer is in
breach of its obligation(s) under the Tender conditions, because the Tenderer:
(a) has withdrawn its Tender during the period of Tender validity specified by the Tenderer in the Form of
Tender; or
(b) does not accept the correction of errors in accordance with the Instructions to Tenderers ITT; or
(c) having been notified of the acceptance of the Tender by the Employer during the period of Tender
validity, (i) fails or refuses to furnish the performance security in accordance with the ITT, or (ii) fails
or refuses to execute the Contract Form,
(a) if the Tenderer is the successful Tenderer, upon our receipt of a copy of the Performance Security and a
copy of the Contract signed by the Tenderer as issued by you; or
(b) if the Tenderer is not the successful Tenderer, twenty eight days after the expiration of the Tenderer’s
Tender validity period, being [date of expiration of the Tender].
Consequently, we must receive at the above-mentioned office any demand for payment under this guarantee on
or before that date.
Signature Signature
To:
This is to notify you that your Tender dated [insert date] for the execution of the Works for [name of
project / Contract] for the Contract Price of Naira [amount in figures and in words], as corrected and
modified in accordance with the Instructions to Tenderers is hereby accepted by [name of the
Employer].
You are requested to proceed with the execution of the Works on the basis that this Notification of
Award shall constitute the formation of a Contract, which shall become binding upon you furnishing a
Performance Security within fourteen (14) days, in accordance with ITT Clause 32, and the signing
the Contract Agreement within twenty-one (21) days, in accordance with ITT Clause 33.
We attach the Contract Agreement and Special Conditions of Contract for your perusal and signature.
Signed
Date:
THIS AGREEMENT, made the [day] of [month] [year] between [name and address of Employer] (hereinafter
called “the Employer”) of the one part and [name and address of Contractor] (hereinafter called “the
Contractor”) of the other part.
WHEREAS, the Employer invited Tenders for certain Works, viz, [brief description of the Works] and has
accepted a Tender by the Contractor for the execution of those works in the sum of Naira [insert amount in
figures and words], hereinafter called “the Contract Price.
1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to
them in the General Conditions of Contract hereinafter referred to.
2. The documents forming the Contract shall be interpreted in the following order of priority:
4. The Employer hereby covenants to pay the Contractor in consideration of the execution and completion
of the Works and the remedying of defects therein, the Contract Price or such other sum as may
become payable under the provisions of the Contract at the times and in the manner prescribed by the
Contract.
IN WITNESS whereof the Parties thereto have caused this Agreement to be executed in accordance with the
laws of Nigeria on the day month and year first before written.
Signature
Print Name
Title
In the presence of
(Name)
Address
To:
We have been informed that [name of Contractor] (hereinafter called “the Contractor”) has
undertaken, pursuant to Contract No [reference number of Contract] dated [date of Contract]
(hereinafter called “the Contract”), the execution of works [description of works] under the Contract.
At the request of the Contractor, we [name of bank] hereby irrevocably undertake to pay you, without
cavil or argument, any sum or sums not exceeding in total an amount of Naira [insert amount in
figures and in words] upon receipt by us of your first written demand accompanied by a written
statement that the Contractor is in breach of its obligation(s) under the Contract conditions, without
your needing to prove or show grounds or reasons for your demand of the sum specified therein.
This guarantee is valid until [date of validity of guarantee], consequently, we must receive at the
above-mentioned office any demand for payment under this guarantee on or before that date.
Signature Signature
To:
We have been informed that [name of Contractor] (hereinafter called “the Contractor”) has
undertaken, pursuant to Contract No [reference number of Contract] dated [date of Contract]
(hereinafter called “the Contract”), the execution of works [description of works] under the Contract.
Furthermore, we understand that, according to your conditions, Advance Payments must be supported
by a bank guarantee.
At the request of the Contractor, we [name of bank] hereby irrevocably undertake to pay you, without
cavil or argument, any sum or sums not exceeding in total an amount of Naira [insert amount in
figures and in words] upon receipt by us of your first written demand accompanied by a written
statement that the Contractor is in breach of its obligation(s) under the Contract conditions, without
you needing to prove or show grounds or reasons for your demand of the sum specified therein.
We further agree that no change, addition or other modification of the terms of the Contract to be
performed, or of any of the Contract documents which may be made between the Employer and the
Contractor, shall in any way release us from any liability under this guarantee, and we hereby waive
notice of any such change, addition or modification.
This guarantee is valid until [date of validity of guarantee], consequently, we must receive at the
above-mentioned office any demand for payment under this guarantee on or before that date.
Signature Signature
Item Specification Brief Description of Works Unit of Works Quantity of Unit Rate (in Total Amount
No. Clause Number Works Naira) (in Naira)
1 2 3 4 5 6 7 = 5x6
(a) to provide sufficient information on the quantities of Works to be performed to enable Tenders to be prepared efficiently and accurately; and
(b) when a Contract has been entered into, to provide a priced Schedule for use in the periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the above schedule in sufficient detail to distinguish between the different classes of Works, or between
Works of the same nature carried out in different locations or in other circumstances that may give rise to different considerations of cost. Consistent with these
requirements, the layout and content of the Schedule should be as simple and brief as possible. If required the Technical Specifications for particular items or classes of work
should be specified in more detail in the form of notes attached to this Section.
Notes on 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. The Drawings shall be dated, numbered and show the
revision number.