UE-321 - Lecture # 9 - Bids

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Civil Works Quantity and Cost

Estimation
UE-321
Week # 10, Lecture # 9

T.E URBAN
Batch 2017

Course Instructor: Dr. Sana Muqeem


• SUBMISSION AND OPENING OF BIDS
• Sealing and Marking of Bids
26.1 The Bidder shall seal the Technical Proposal and Financial Proposal, in pursuant to Clauses IB 16.1 and 25.1
in separate envelopes, which must bear the signature of the Bidder’s authorised representative.
26.2 The original and 5 (five) copies of Part-1 of the Bid shall be sealed into an envelope and shall be:
addressed to the Employer; and
bear the following identification:
i. PART-1 (TECHNICAL PROPOSAL)
ii. BID FOR [mention name of the Project]
iii. REF. No [mention the same number as on Notice for Expression of Interest]
iv. The Words “DO NOT OPEN BEFORE [mention date and time of Bid Opening for Technical Proposal]”
26.3 The original and 5 (five) copies of Part-2 Financial Proposal of the Bid shall be sealed into an envelope and
shall:
be addressed to the Employer; and
bear the following identification:

i. PART 2 (FINANCIAL PROPOSAL)


ii. BID FOR [mention name of the Project]
iii. REF. No [mention the same number as on Notice for Expression of Interest]
iv. The Words “DO NOT OPEN BEFORE [mention date and time of Bid Opening for Financial Proposal]”
• Bid Submission Date
Bids for Part-1 and Part-2 for Technical and Financial Proposals, must be
received by the Employer at the address specified in the Bidding Data not
later than the date (s) and time (s) specified in the Bidding Data in
accordance with type of Bidding procedure as mentioned in the Bidding
Data.
The Employer may, at its discretion, extend the deadline for the submission
of Bids through the issue of an Amendment in accordance with Clause 15,
in which case all rights and obligations of the Employer and the Bidders
previously subject to the deadline will thereafter be subjected to the
deadline as extended.
• Late Bids
Any Bid received by the Employer after the specified Bid Submission Date
and Time will be returned unopened to the Bidder.
• Modifications and Withdrawal of Bids
The Bidder may modify and withdraw its Bid after submission, provided that
written notice of the modification or withdrawal is received by the Employer
prior to the prescribed deadline for submission of Bids.
The Bidder’s modification or withdrawal notice shall be prepared, sealed,
marked and dispatched in accordance with the provision for the submission of
Bids. A withdrawal notice may also be sent by telex, cable or facsimile but
followed by a signed confirmation copy, postmarked not later than the
deadline for submission of Bids.
• No Bid may be modified subsequent to the deadline for submission of Bids.
• No Bid may be withdrawn in the interval between the Bid Submission Date
and the expiration of the period of Bid Validity. Withdrawal of a Bid during
this interval may result in the forfeiture of the Bid Security.
• Subsequent to the expiration of the period of validity of Bids prescribed by the
Employer, a Bidder that has not been notified by the Employer of the award of
a Concession may withdraw its Bid without penalty.
• Opening of Bids
The Employer will open the Bids in two stages, Stage-1 Technical Proposal and
Stage-2 Financial Proposal in the presence of Bidders’ representatives. The
Bidders’ representatives who are present shall sign a register evidencing their
attendance.
The Employer will examine the Bids to determine whether they are complete,
whether the requisite Bid Securities have been furnished, whether the documents
have been properly signed, and whether the Bids are generally in order.
The Bidder’s names, bid modifications or withdrawals (if any), the presence of
the requisite Bid Security and such other details as the Employer at its discretion
may consider appropriate, will be announced at the Bid Opening.
• ASSESSMENT OF BIDS
Determination of Conformity
• Prior to the detailed evaluation of Bids, the Employer will determine whether
each Conforming (Bona Fide) Bid is substantially responsive to the
requirements of the Bidding Documents.
• For the purpose of this Clause, a substantially responsive Bid is one that
conforms to all the terms, conditions and specifications of the Bidding
Documents without material deviation or reservation. A material deviation or
reservation is one that affects in any substantial way, relative to the
requirements of the Bidding Documents, the:
• form, scope, quality, completion or timing of the Construction Phase of the
proposed Concession; or
• administration, maintenance and operating regime for the Operation Phase of
the proposed Concession; or
• Consideration of Non-Conforming Bids
The Employer may, at its discretion, take forward any Non-Conforming
Bid for evaluation, provided that such Bids are determined by the
Employer to satisfy all the requirements.

• Clarification of Bids
To assist in the examination, evaluation and comparison of Bids, the
Employer may ask Bidders individually for clarification of any element
of their Bid(s). The request for clarification and the response shall be in
writing or cable, telex or facsimile, but no change in the financial
aspects or substance of the Bid shall be sought, offered or permitted
except as required to confirm the correction of arithmetical errors
discovered by the Employer during the evaluation of the Bids.
• Bidders will be obliged to respond promptly to all requests for clarification and to
provide all clarifications requested within the period mentioned in the requests failing
which the Bid may be rejected.
• Correction of Arithmetical Errors
Bids determined to be substantially responsive and, subject to the discretion of the
Employer, Non-Conforming Bids that are determined to satisfy the requirements of
Clause 24 will be checked by the Employer for any arithmetical errors in computation and
summation.
Errors will be corrected by the Employer as follows:
• Where there is a discrepancy between amounts in figures and in words, the amount
in words will govern; and
• Where there is a discrepancy between the unit monetary values and the total amount
derived from either summation or through the multiplication of the unit monetary value
by a factoring value, the unit monetary value as quoted will normally govern unless in
the opinion of the Employer there is an obviously gross misplacement of the decimal
point in the unit monetary value, in which event the total amount as quoted will govern.
• If a Bidder does not accept the correction of errors as above, its Bid will be
rejected.
• Presentation by the Bidders
• To assist the evaluation of Bids, each Bidder will be required to present its
Technical Proposals to the Employer in a meeting to be arranged at time and date
as stated in Bidding Data. These meetings must be attended by the Bidder and its
engineers/consultants. The main purpose of these meetings will be:
• to provide the Bidder with the opportunity to present the details and merits of the
technical and operational aspects of its Bid to the Employer; and
• to allow the Employer to seek clarification on any technical and operational
matters.
• No commercial aspects of the Bid will be discussed at these presentations and no
negotiations will take place.
• The Technical Scope of the Project will be discussed and Updated during the
course of meeting.
• DETAILED BID EVALUATION
Two Stages Process
The detailed evaluation of the Bids will be carried out as a Two-Stage
process with scores being assigned to each Bid during each Stage of the
evaluation. Those Bids that, in the view of the Employer, fail to satisfy
minimum requirements during the Stage-1 of the evaluation will not be
taken forward to Stage-2 of the evaluation process.
• Stage- 1 - Bidder’s Capability and Technical Proposal
• The aim of the Stage-1 evaluation will be to determine the ability of the
Bidder to finance, construct and manage the Project, and to evaluate the
level of competence shown by the Bidder, in terms of its understanding
of the engineering, operational and maintenance aspects of the Project.
• The assessment will consider the Bidder’s previous experience in
projects of this complexity and magnitude. Particular credit will be
given to those Bidders who have in-house experience in the engineering
design, financing, construction and management of public sector
infrastructure projects, and particular emphasis will be placed on the
robustness of the proposed Works Programme, the Project Appreciation
Statement and the appropriateness of the proposed operating and
maintenance regimes that will be employed during the Concession
Period.
• The Technical Proposals are opened at the date and time specified in the
Bidding Data. The Technical Proposals shall be evaluated and discussed
with the Bidders.
• Stage- 2 - The Financial Proposal
• The Revised Technical Proposals and Financial Proposals are opened at
the date and time informed by the Employer. [In setting the date the
Employer should allow sufficient time for Bidders to incorporate the
changes involved in the Technical Proposals and prepare Financial
Proposals.]
• The Financial Proposals and Revised Technical Proposals are evaluated
by the Employer and its advisers in strict confidence. Subject to Sub-
Clause 31.1, the Employer will not provide the assessment results or
reasons in support of its assessments to any Bidders or third party.
• Assessment Process
• The assessment process will be carried out by the Employer and its
advisers in strict confidence. Subject to Sub-Clause IB 31.1, the
Employer will not provide the assessment results or reasons in support
of its assessments to any Bidder or third party.
• Bidders should note that the Employer is not bound to accept any Bid
and may at any time, by notice in writing to any Bidders, terminate the
bidding and assessment process in relation to their Bids or any
proposals contained therein.
• Award of Concession Contract
• Subsequent to the detailed evaluation of the Financial Proposals and Revised
Technical Proposals, the Employer will award the Concession Contract to the
successful Bidder, on the basis of being most beneficial to the Employer.
• Upon selection by the Employer the successful Bidder will be required, within a
period of 45 (forty five) days or as stated in the Bidding Data, to enter into a
Concession Contract Agreement with the Employer, having previously secured a
Performance Security for Construction Phase to the value of 15 percent, or as
stated in the Bidding Data, of the value of the construction costs. The successful
Bidder will be required to achieve Financial Close within a period of 90 (ninety)
days, or as stated in the Bidding Data, from the Effective Date of the Concession
Agreement.
• Failure to fulfil any of the above requirements within the specified time will,
unless otherwise agreed by both parties, result in the forfeiture of the Bidder’s
Bid Security.

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