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SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, March 23, 2013
No. 326/BQL-DA2 Sub: To complete Bidding Doc CPA003 Construction of Elevated Section
To: GC Pursuant to General Consulting Contract no. HRB-L2-001 signed on 13/03/2011 between MRB and GC; Pursuant to your letter no. GCL2/MRB/DW/2012-642, 648 dated 24/12 & 28/12/2012 about submission of Bidding Docs of CPA003 and CPA005; After reviewing the submitted documents, MRB would like to have following ideas: The contents of Bidding Documents should be in accordance with JICAs Sample Bidding Documents, June 2009 and Guidelines for Procurement under Japanese ODA Loans, March 2009. Please refer to the attached document for MRBs comments on specific contents. GC is requested to quickly supplement and complete any missing items. If you have any questions regarding to the documents, please contact PMD2 for details.
Receivers:
Appendix attached to letter no. 326/BQL-DA2 dated 28/3/2013 No. JICAs Sample Bidding Document June 2009 Bidding Documents prepared by GC Package name: Construction Contract Package CPA003: Elevated Section-3 Stations and Viaducts Construction Contract Package CPA005 DEPOT Infrastructure and Buildings Letter of Bidding Invitation Vietnamese Regulations MRBs opinions GCs Responses 4 April 2013 Agreed package name shall be in accordance with approved Tendering Plan
Package CPA003: Construction of Elevated Section Package CPA005: Construction of Depot Please add this letter same as JICAs Sample Bidding Document
Will be updated
4. Eligible Bidders
6. Sections of Bidding Documents 7. Clarification of Bidding Documents, Site Visit, Pre-Bid Meeting 11. Documents Comprising the Bid
Item 1.2 was modified by GC, comparing with JICAs Sample Bidding Documents Item 4.1 was modified by GC, comparing with JICAs Sample Bidding Documents Item 6 was modified by GC to fit the composition of the Bidding Document prepared by GC Item 7.1 was modified by GC, comparing with JICAs Sample Bidding Documents Item 11 was modified by GC, comparing with JICAs Sample Bidding Documents
GC is requested to follow JICAs Sample Bidding Documents GC is requested to follow JICAs Sample Bidding Documents Agreed
Will be updated Will be updated Noted This was amended and included in ITB at MRB request to be discussed Will be updated
GC is requested to follow JICAs Sample Bidding Documents GC is requested to follow JICAs Sample Bidding Documents
No.
Bidding Documents prepared by GC Item 13 was modified by GC, comparing with JICAs Sample Bidding Documents Item 14.5 and 14.6 were modified by GC, comparing with JICAs Sample Bidding Documents Item 19.4 and 19.6 were modified by GC, comparing with JICAs Sample Bidding Documents Item 38 was modified by GC, comparing with JICAs Sample Bidding Documents
Vietnamese Regulations
MRBs opinions
GCs Responses 4 April 2013 Will be updated Will be updated No. JICA sample quotes incorrect - GC documents correct the error JICA sample does not specify contract discussion before Notification of Award, however, Vietnamese regulation requires such process before signing the contract. GC has modified this clause to make it in accordance with Vietnamese regulation. ITB will be updated and GC will add negotiation requirements to BDS
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38.
Award Criteria
GC is requested to follow JICAs Sample Bidding Documents GC is requested to follow JICAs Sample Bidding Documents GC is requested to follow JICAs Sample Bidding Documents GC is requested to follow JICAs Sample Bidding Documents
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The name of the ICB (International Competitive Bid) is: Construction Contract Package CPA003 Elevated Section-3 Stations and Viaducts. The name of the ICB (International Competitive Bid) is: Construction Contract Package CPA005 DEPOT Infrastructure and Buildings 2
Please revise the name of packages according the approved Tendering Plan
Will be updated
No.
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Vietnamese Regulations
MRBs opinions
GCs Responses 4 April 2013 GC normally contact with MRB by this email address. Please give detail instruction so GC can modify accordingly. Will be updated
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ITB 7.4
A site visit conducted by the Employer will be organized after the Pre-bid Meeting.
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ITB 18.1 The bid validity period shall be more than 120 days.
The bid validity period shall be 210 (two hundred and ten) days.
Item c Article 8 Chapter I Decree no. 85/2009/ND-CP dated 15/10/2009 states The bid validity period must be defined in Bid Proposals but not exceeding 180 days since the Closing Date
Please revise : A site visit conducted by the Employer will be organized after the Pre-bid Meeting (if Bidders request) The bid validity period shall be more than 180 days.
Will be updated
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ITB 18.3
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If the bid validity period is extended beyond fifty-six (56) days, the fixed portion of the Contract price shall not be adjusted. A Bid Security shall be required. The amount and currency of the Bid Security shall be Japanese Yen 200,000,000 (two hundred million) or its equivalent amount in United States Dollars or Vietnamese Dong.
Not necessary, as GC say there will be no adjustment irrespective of the days In GC opinion, value of Bid Security should be fixed based on estimated contract price, not proposed contract price. The percentage (1% or 2%) of the estimated contract price should be further discussed for conclusion. JPY 200M is approx 2%
Item 2 Article 27 Tender Law no. 61/2005/QH11 states The amount of Bid Security shall be defined in Bidding Documents based on characteristics of specific package but not exceeding 3% of the approved package price 3
No.
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Vietnamese Regulations
MRBs opinions Please clarify Daywork items. According to JICAs Guidelines, this is a provisional sum equivalent to contingencies of Vietnam. However, according to FIDIC, this is a sum paid for minor variation, which has been included in other direct costs as required under Vietnam regulation.
GCs Responses 4 April 2013 Day work items shall be executed as Physical Contingency, should it be separated from Physical Contingency or not should be further discussed for conclusion. Other direct Expense shall be included under Pay Items by the Contractor, together with overhead, taxes, and markup, direct costs (labor, materials, and equipment). Daywork Items shall be executed for minor Variation Order initiated by the Engineer. It is executed as Unit Price with Provisional Quantities for scheduled items only. To be discussed Will be updated Will be updated The method of measurement is included with the BQ not with the Specification. The BQ and payment conditions are in accordance with the
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Please delete ITB 35.4 N/A Please delete ITB 39.1 N/A Section III. EVALUATION AND QUALIFICATION CRITERIA Please consider and complete the EVALUATION AND QUALIFICATION CRITERIA in compliance with Vietnamese Regulations (Article 28, 35 Tender Law, Article 29 Decree 85/2009/ND-CP) Bill of Quantity There are not efficient basis to review the Bill of Quantity. It will be reviewed based on Quantity Calculation documents and Quantity payment and measurement method in the Specification. GC should notice to follow the payment conditions applied to contract types approved by JICA and the approved Tendering Plan
No.
Vietnamese Regulations
MRBs opinions
GCs Responses 4 April 2013 Contract It is not required to be part of the works requirements. General Condition shall be obtained by the Bidder, not provided by the Employer. MRB have been given copies of the GCC (Pink) previously
Part 2: Works Requirements There is no Quantity Calculation Method and Payment Basis This part is under review by PMD2 for comments. General Conditions of Not yet submitted Contract
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Section VIII Particular Conditions Of Contract Part A: Contract Data Sub- Clause 1.1.3 .3: Time for Completion of the Works Sub-Clause 1.2: Profit (none)
The whole of the Works shall be completed within one hundreds and sixty-five (165) weeks. One-twentieth (5%) of the Cost as described in GCC
Revise to 38 months
Will be updated
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Article 11, Clause 3, English and Vietnamese Sub-clause 1, Decree No. 48/2010/ND-CP specifies Languages to be used in a construction contract involving a foreign party are Vietnamese and English Sub-Clause 1.6 Time for Within twenty eight (28) days after Please clarify this point. Parties to enter into the Contractor receives the Letter of 5
This can be deleted and is still applicable GC considers that this maybe a misunderstanding. The ruling language should be English, and the language used for communication shall be both English and Vietnamese.
No.
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JICAs Sample Bidding Document June 2009 Contract Agreement (none) Sub-Clause 3.1 (B) (ii) Engineers Duties and Authority (none)
Bidding Documents prepared by GC Acceptance. Variations resulting in an increase or decrease of the Accepted Contract Amount shall require approval in writing from the Employer. The changes to the quantities of any items of works included in the Contract that are to be re-measured do not constitute a Variation.
Vietnamese Regulations
MRBs opinions
GCs Responses 4 April 2013 unless stated otherwise in the letter of acceptance. GC considers the two mentioned Article of Decree 15 are applied for Design Service and Supervision Works separately. The concept of Engineer under FIDIC is different. Should the GC contract already taken into account all Vietnam regulations, therefore, duties and authority of the Engineer should be in accordance with this contract. Will be updated Delay damages shall be included in submitted Bid Price to cover all related risks by the Bidders. GC considers it should be used as incentive rather than penalty, thus, the Contract Price shall be reduced. This is typical for major international projects
Article 27, Decree No. 15/2013/ND-CP dated 6/2/2013 specifying Engineers Duties and Authority
GC is requested to move Sub-Clause 3.1 (B) to Part B: Specific Provisions. Move the sentence The changes to the quantitiesa Variation to Sub-Clause 3.5
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There is no maximum limit proportionately in levying of delay damages for delays in individual key dates. However, the maximum amount for cumulative delay damages for the Contract for all key dates and completion of the whole of the Works shall not exceed ten percent (10%) of the Accepted Contract Amount less Value Added Tax.
Article 41 Decree No.48/2010/ND-CP specifies The bonus level must not exceed 12% of the saved contract value and the fine level must not exceed 12% of the breached contract value
According to GCs proposal, the progress can be delayed for 2 years but maximal delay damages only account for 10% of the Contract; this will bring a disadvantage to the Project Owner. GC is requested to further study and propose.
No.
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JICAs Sample Bidding Document June 2009 Sub-Clause 14.2 : Number of Instalments, Amount and Currencies of Advance Payment
Bidding Documents prepared by GC One instalment of twenty percent (20%) of the Accepted Contract Amount less Provisional Sums, Physical and Price Contingencies, and Value Added Tax in the respective currencies in which the Contract Price is payable.
Vietnamese Regulations Article 17, Decree No. 48/2010/ND-CP specifies: The minimum advance level is prescribed as follows: a/ For consultancy contracts, it is 25% of the contract price; b/ For work construction contracts, it is: - 10% of the contract price, for contracts valued at over VND 50 billion: - 15% of the contract price, for contracts valued at between VND 10 billion and 50 billion: - 20%; of the contract price, for contracts valued at below VND 10 billion. Article 17, Decree No. 48/2010/ND-CP specifies: Advance amounts shall be retrieved right at the first contract payment. The advance amount to 7
MRBs opinions
GC is requested to modify as To be discussed. GC believe follows: should remain at 20% One instalment of ten percent (10%) of the Accepted Contract Amount less Provisional Sums, Physical and Price Contingencies, and Value Added Tax in the respective currencies in which the Contract Price is payable.
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Sub-Clause 14.2(a): The deduction shall commence in the Commence Repayment next interim Payment Certificate of Advance Payment following that in which the total of all certified interim payments (excluding the advance payment, deductions and repayment of retention and Value Added Tax)
GC is requested to modify as Will be updated to take follows: Advance amounts effect at first payment after shall be retrieved right at the advance. first contract payment.
No.
Bidding Documents prepared by GC exceeds thirty percent (30%) of the Accepted Contract Amount less Provisional Sums, Physical and Price Contingencies and Value Added Tax in each currency of the Advance Payment.
Vietnamese Regulations be retrieved upon each payment shall be agreed upon by the contracting parties and indicated in the contract. The retrieval shall be completed when the paid value reaches 80% of the contract price
MRBs opinions
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Sub-Clause 14.2(b): Thirty-five percent (35%) Repayment Amortization of Advance Payment Sub-Clause 14.6: Minimum Amount of Interim Payment Certificates Sub-Clause 18.2 (d): Maximum Amount of Deductibles for Insurance of the Employers Risks Sub-Clause 18.3: Minimum Amount of Ten percent (10%)
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Maximum Amount of Deductibles for Insurance of the Employers Risks is United States Dollars One Hundred Thousand (USD 100,000).
GC has been misquoted and have minimum payment at 0.3%. to be discussed, but this clause can be omitted if no minimum is acceptable Please clarify bases of the Based on similar projects Maximum Amount of Deductibles of USD 100,000. Please clarify this point.
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Not less than United States Dollars ten million (USD 10 million) for any one incident, with the number of 8
Please clarify bases of the Based on similar projects insurance amount? Insurance companies operating in
No.
JICAs Sample Bidding Document June 2009 Third Party Insurance Sub-Clause 20.6 Place of Arbitration Attachment-1: Schedule of key dates and delay damages
Vietnamese Regulations
MRBs opinions
Vietnam is a must. In Vietnam GC contend the venue should be neutral, not Vietnam
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Attachment-2: Time for granting right of access to and possession of the site Attachment-3: Schedule of insurances
GC is requested to re- GC will review determine key dates; the Elevated Section can be divided into subsections from the beginning point of the line to C2 and from C2 to end of the Elevated Section. GC is requested to re- GC will review determine Access Dates Please clarify calculation Based on similar projects bases of insurance amount of each kind. Article 3, Decree 15/2013/ND-CP provides a definition of Specification, Article 7 of the same Decree specifies Specification. GC is requested to review the definition of Specification in Article 3 and 7, Chapter I of the Decree 15/2013/NDCP dated 6/2/2013. Technical Specification has been prepared based on the requirements under Article 3 and Article 7. The definition should refer to the document itself and specify allowable amendment to it.
Part B: Specific Provisions 37 Sub-Clause 1.1.1: Delete the existing Sub-Clause 1.1.1.5 and replace with the Definitions/The following: Contract 1.1.1.5 Specification and Technical Specification means the document entitled Works Requirements Specifications, as included in the Contract, and any
No.
Bidding Documents prepared by GC additions and modifications to the specifications in accordance with the Contract. Such document specifies the Works. After Sub-Clause 1.1.2.12, add the following: 1.1.2.13 Interface Contractor shall mean persons undertaking the Interface Works. After Sub-Clause 1.1.2.13, add the following: 1.1.2.14 Related Works Contractor shall mean any person or persons undertaking the Related Works including Interface Contractors. After inserted Sub-Clause 1.1.2.14 above, add the following: 1.1.2.15 Independent Design Verifier means a qualified person appointed by the Contractor and accepted by the Engineer, as an independent design verifier. After Sub-Clause 1.1.5.8, add the following: 1.1.5.9 Interface Works shall mean works and/or services performed or undertaken by the
Vietnamese Regulations
MRBs opinions
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GC is requested to clarify the It is defined elsewhere in the definition of Interface particular conditions Contractor.
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GC is requested to clarify the It is defined elsewhere in the definition of Related Works particular conditions Contractor.
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GC is requested to clarify May be required for which design stage will contractor temporary works require Independent Design Verifier.
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this
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No.
Bidding Documents prepared by GC Interface Contractors of the Employer or any contractor employed by him in conjunction with the Contract Packages CPA001, CPA002, CPA004 and CPA005.
Vietnamese Regulations
MRBs opinions
42
After Sub-Clause 1.1.5.9, add the following: 1.1.5.10 Related Works shall mean works, other than the Works under this Contract but including Interface Works, performed or undertaken by the Employer or other contractor or suppliers of the Employer... After Sub-Clause 1.1.6.10, add the following:
Please clarify the definition To discuss. GC believe already clear of Related Works
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Sub-Clause 1.1.6: Definitions/Other Definitions Sub-Clause 1.1.6: Definitions/Other Definitions Clause Employer 2 The
Re-check After Sub-Clause GC is not sure what is being 1.1.6.10, add the following asked. Re-check After inserted GC is not sure what is being Sub-Clause 1.1.6.11 above, asked. add the following
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Article 24, Decree Please review and add the It is the Loan Agreement, in 15/2013/ND-CP Employers responsibility in which the Employer is 11
No.
Vietnamese Regulations
MRBs opinions
specifies the Employers accordance with Article 24, identified as Line of Agency. responsibility Decree 15/2013/ND-CP. Article 24 only mention the Employers responsibilities related to quality issues, not financial issues.
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Clause 3 The Engineer Sub-Clause 3.1: None Engineers Duties and Authority
Article 27, 28 Decree 15/2013/ND-CP specifies the Engineers Duties and Authority
Please review and add the As mentioned Engineers Duties and section No.25. Authority in accordance with Article 27, 28 Decree 15/2013/ND-CP.
above
in
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Article 25, 26 Decree Please review and add the 15/2013/ND-CP Contractors responsibility in specifies the accordance with Article 25, Contractors 26 Decree 15/2013/ND-CP responsibility Please check the paragraph If the Contract specifies that verification by an Independent Design Verifier on the design provided by the Contractor or his design subcontractor. Is this applicable to CPA003 & 12
No.
JICAs Sample Bidding Document June 2009 Sub-Clause 4.2 Performance Security
Vietnamese Regulations
MRBs opinions
49
Delete the existing second Paragraph and replace with the following Paragraphs: (b) by a foreign bank through and confirmed by a bank located in the Country. The both banks shall have a back to back guarantee between them. Article 46 Decree 48/2010/ND-CP specifies Subcontract Article 29 Decree 15/2013/ND-CP specifies safety management during construction
CPA005? Revise b to The foreign GC believes original wording bank must operate in the correct and allows country of the Employer contractors to get security from their usual source
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Sub-Clause 4.4 Subcontractors Sub-Clause 4.22 Security Delete the existing Sub-Clause 4.22 of the Site and replace with the following Paragraphs: The Contractor shall be responsible for the security of the Site throughout the duration of his possession of the Site
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Please review and add Article 46 of Decree 48/2010/ND-CP. GC is requested to review and add as per Article 29 Decree 15/2013/ND-CP
FIDIC is in accordance with this Article. It is specified under Outline Site Safety Plan, the Contractor shall have full responsibility to develop this outline plan in accordance with relevant law and regulation, such has been specified under the outline site safety plan.
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Sub-Clause 4.23 At the end of Sub-Clause 4.23 first Contractors Paragraph, add the following new Operation on Site Paragraph: All work-sites used by the 13
GC is requested to revise: Will be updated All work-sites used by the Contractor outside the Rightof-Way shall require the
No.
Bidding Documents prepared by GC Contractor outside the Right-of-Way shall require the Employers approval.
Vietnamese Regulations
Competent approval.
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4.28 After new Sub-Clause 4.27, add the Utility following new Sub-Clause 4.28: The details of existing utilities, facilities, drains and sewer shown in the Specification and /or the Employers Drawings have been extracted from the records of utilities companies and relevant authorities. Such details are provided only for information and their accuracy is not warranted
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GC is requested to explain the paragraph The details of existing utilities, facilities, drains and sewer... Such details are provided only for information and their accuracy is not warranted GC has carried out utilities survey, building conditions survey; therefore, GC is responsible for accuracy of such surveys performed by GC. 8.1 Delete the existing first Paragraph Article 6, Decree GC is requested to review of and replace with the following 48/2010/ND-CP and update in accordance Paragraphs: stipulating validity and with Decree 48/2010/NDThe Commencement Date shall be legal base of CP. the date specified in the notice to construction contract commence the Works issued by the Engineer to the Contractor pursuant to this Sub-Clause which will be prepared when the following 14
This clause make no conflict with all requirements under Article 6. However, some requirements under Article 6 has been satisfied at PQ and Tender stage. To be reviewed
No.
Vietnamese Regulations
MRBs opinions
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precedent conditions have all been fulfilled.: (a) signature of the Contract Agreement by both Parties and concurrency of the Bank; (b) receipt by the Engineer of the confirmation of the Employer that the designated area associated with construction of all parts of Viaducts and Stations at Nguyen Van Huyen Road (designated as Access Date ADE 1 in Attachment-2 attached to Part A Contract Data of Particular Conditions of Contract) is ready to hand over to the Contractor, (c) receipt by the Contractor of the Advance Payment under Sub-Clause 14.2 [Advance Payment] provided that the corresponding bank guarantee has been delivered by the Contractor. The Engineer shall give the Contractor not less than seven (7) days notice of the Commencement Date. Delete Sub-Paragraph 14.1(d), and Article 18, Clause 3, GC is requested to add Sub-Clause 14.2 specify replace with the following; Decree 48/2010/ND-CP conditions of payment conditions of payment for stipulating payment for corresponding to Contract Unit Price contract, which is The Contractor shall submit to the 15
No.
Vietnamese Regulations
MRBs opinions
Engineer, with 28 days after the construction contract Commencement Date, a proposed breakdown of each lump sum price item included in the Bill of Quantities. The Engineer may take account of the breakdown when preparing Payment Certificates, but shall not be bound by it.
type specified in the approved Tendering Plan and in compliance with Article 18, Clause 3, Decree 48/2010/ND-CP.
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At the end of Sub-Clause 14.7, add the following new Paragraph; Disbursement procedures of JICA ODA Loans shall be applied for disbursement of the proceeds of JICA ODA Loans for eligible payment under the Contract. All payments to the Contractor for the Local Currency portionVietnamese Dong will be made by the Transfer Procedure under the Loan Agreement dated March 31st 2009 between the Bank and the 16
ruled under Article 19, Clause 2b: The Documents to be submitted by the Contractor for payment: Acceptance Agreement signed by Contractor, GC and Employer. List of Variation Orders (if any). Request for Payment (this request is equal to Statement in FIDIC, subclause 14.2). The Employer shall not pay The Employer needs to place for any bank charges. exact funds into specific accounts. The banks cannot deduct fees or charges from payments made, so any costs to get the payments into said bank accounts must be borne by the Employer not the Contractor
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Bidding Documents prepared by GC Borrower. The payment shall be made into the bank account designated by the Contractor. All bank charges shall be borne by the Employer. All payments to the Contractor for the Foreign Currency portionJapanese Yen shall be made by the Commitment Procedure under the Loan Agreement dated March 31st 2009 between the Bank and the Borrower through a Letter of Credit (L/C). A Letter of Credit shall be established in favour of the Contractor by VIETCOMBANK through the Bank of TokyoMitsubishi UFJ Co., Ltd. All bank charges shall be borne by the Employer. The charges towards confirmation (if required by the Contractor) shall be borne by the Contractor. Extension of validity of L/C need is not envisaged. However, should validity of L/C need to be extended, for reasons solely attributable to the Contractor, the charges for such extension will be borne by the Contractor. In all other
Vietnamese Regulations
MRBs opinions
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No.
Bidding Documents prepared by GC cases, L/C charges for extension or otherwise shall be borne by the Employer. The Employer shall transfer an amount (in Vietnamese Dong) equivalent to the VAT for the Contractor of the particular month to the bank account designated by the Contractor within thirty (30) days after the issuing of Interim Payment Certificate by the Engineer for that month in accordance with SubClause 14.6 of the Conditions of Contract and within sixty (60) days after the Employer receives the Final Payment Certificate.
Vietnamese Regulations
MRBs opinions
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GC is requested to add an This is in the ITB and is a appendix of Principles of bidding issue not a ethical behavior in bidding. contractual issue
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