A

Presentation
on
Bidding, Contract drafting,
Contracting And Contract
administration
 Definition
Contract Agreement :
A Contract Agreement is an written agreement
between two or more people or Organization. In a
contract Agreement, each party agrees to do or
not do something in exchange for value.
 Types of Contract
Bill of Quantity (BOQ) Contract
Engineering Procurement Construction (EPC)
contract

We are following BOQ based contract

 Methods of Tendering
Contract for big amount
Two Type
Pre qualification process
Post qualification Process

We are following Pre Qualification Process

Pre- Qualification Notes
of UPCL
 Guidelines of Contact
Public Procurement Monitoring Office, Nepal
(PPMO)
World Bank
Asian Development Bank
FIDIC Contract

We are following guidelines of PPMO

 Bidding Document
1. Letter of Invitation for Bids
2. Bidding Document
Instruction to Bidder
Bill of Quantity
Technical Specification of work
Drawings
Condition of Contract
Forms of Contract

3. Bid Security
4. Evaluation and Qualification
 Bidding Process
Invitation of Pre Qualification
1

Evaluation of technical and

2 financial status of the Contractors

Short list the Contractors and

3 Inform them
 Bidding Process
Request the bid on basis of bidding
document from short listed Contractors
4 along with bid security

Technical Clarification Meeting on bidding

document with bidders
5

Evaluate the Bid submitted

6
 Bidding Process
Technical Discussion on
7 submitted bid

Financial Negotiation
8

Select Best Bidder

9
 Bidding Process
Issue letter of Acceptance and return bid
security and asked for performance
10 Guarantee

Return bid Security of Unsuccessful bidder

11

Upon receiving the performance security,

sign the Contract Agreement
12
 Contract Document
1. Agreement
2. Letter of Acceptance
3. Condition of Contract
4. Bill of Quantity
5. Meeting Minute, if any
6. Performance Bank Guarantee
7. Advance Bank Guarantee
8. Memorandum of Understanding, if any
9. Addendum, if any
And any document at are part of Contract
 Condition of Contracts
Clauses
List of Abbreviation

A. General
Contract Data
o 1. Definitions
o 2. Interpretation
o 3. Language and Law
o 4. Project Managers Decisions
o 5. Delegation
o 6. Communications
o 7. Subcontracting
o 8. Other Contractors
o 9. Personnel
o 10.Employers and Contractors Risks
o 11.Employers Risks
o 12.Contractors Risks
A. General
o 13.Insurance
o 14.Site Investigation Reports
o 15.Queries about the Contract Data
o 16.Contractor to Construct the Works
o 17.The Works to Be Completed by the Intended
Completion Date
o 18.Approval by the Project Manager
o 19.Safety
o 20.Discoveries
o 21.Possession of the Site
o 22.Access to the Site
o 23.Instructions
o 24.Appointment of DRB members
o 25. Procedures for Disputes
B. Time Control
o 26.Program
o 27.Extension of the Intended Completion Date
o 28.Acceleration
o 29.Delays Ordered by the Project Manager
o 30.Management Meetings
o 31.Early Warning Procedure
C. Quality Control
o 32.Identifying Defects
o 33.Tests
o 34.Correction of Defects
o 35. Uncorrected Defects after Completion Date
D. Cost Control
o 36.Bill of Quantity (BoQ)
o 37.Changes in the Quantities
o 38.Variations
o 39.Payments for Variations
o 40.Cash Flow Forecasts
o 41.Payment Certificates
o 42.Payments
o 43.Compensation Events
o 44.VAT, Customs and other Duties
o 45.Currencies
o 46.Price Adjustment
o 47.Retention
o 48.Liquidated Damages
o 49.Bonus
o 50.Advance Payment
o 51.Securities
o 52.Day works
o 53.Cost of Repairs
E. Finishing the Contract
o 54.Completion
o 55.Taking Over
o 56.Account
o 57.As-Built Drawing, Testing & Commissioning Procedure and
Operating & Maintenance Manuals
o 58.Termination
o 59.Payment upon Termination
o 60.Property
o 61.Release from Performance
o 62.Suspension of Loan/Credit/ Grant
F. Additional Clauses
o 63.Project Mangers Duties and Authority
o 64.Quarries and Spoil Dumps
o 65. Safety, Security and Protection of the Environment
o 66.Local Taxation
o 67.Value Added Tax
o 68.Income Taxes on Staff
o 69.Duties, Taxes and Royalties
o 70.Member of Government, etc, not Personally Liable
o 71.Approval of Use of Explosives
o 72.Compliance with Regulations for Explosives
o 73.Permission for Blasting
o 74.Records of Explosives
o 75.Traffic Diversion
o 76. Conduct of Contractors
o 77. Contractor's General Responsibilities
While monitoring the
Contract execution following
clauses are not followed by
the Contractor
Clauses no. 9. Personnel
The Contractors are unviable to provided any List of Key personal.
The Contractors had not inform in writing the changes in his personnel.
Clause no. 21. Possession of site
The Contractors are fails to posses the site within the days specified in the
clause.
This may cause the delay in project completion time

Clause no. 24. Appointment of DRB members

Till date for any contract, DRB members not appointed as per the clause
Clause no. 26. Program
The Contractors are fails to provided the updated Schedule
within the date as specified in the Clause.
This may cause difficulties to control the time.
Clause no. 31 Early warning
The Contractors had not summited any early warning in writing till
ate that may cause the delay due the delay in submission of
construction drawing.
Clause no. 32 Identifying Defects
The Contractors had not mention of record of defect found in
work in their progress report.
Clause no. 34 Correction Defect
The Contractors had not mention of correction of Defect detail in
progress report.

Clause no. 50 Advance Payment

The Contractors are unable to provide he Advance
Payment Guarantee in time.
This cause late mobilization to site.
Clause no. 40. Cash Flow Forecasts
The Contractors are fails to update the Cash Flow Forecasts
in accordance to updated schedule as per the clause
Clause no. 65. Safety, Security, Protection of the
Environment.
Whatever written in this clause, the Contractor
are careless to Safety procedures.
Clause. No. 51 Security
The Contractor are providing performance
guarantee of period 1 years only . But as it shall
be valid the up to defect reliability periods as per
this clause.
Improvement that need
to made in Contract
Clause. No. 24 Appointment of DRB members
It is better to pay the DRB members on hourly basis instead of Salary.

Clause no 47. Retention

It is better to add sub clause, release of retention amount
prior to time against the undemand bank guarantee valid
until 30 form contract Completion date.
Clause. No. 50 Advance Payment
The Advance Payment Guarantee shall be valid until 30
day from the contract completion date. So, remaining due
can be adjust with the Contractor.
Clause. No. 51 Security
Likewise, The Performance Guarantee shall be valid until 30 day
from defect liability periods.
Clause. No. 52 Day works
In some Contract there is provision of Day works but Rate has not
been finalized. So, It is best to finalize before contract signing.
Clause no 74. Records of Explosive
The Contractor responsible to record used and remaining
explosive. Instead of this, the Contractor shall be responsible to
record the brought, used and remained explosive at blasting
point.
 Challenges in Drafting
Contract
1. Payment Terms (need to analysis type of works).
2. Advance Payment (need to analysis type of works,
how to recover the Advance)
3. Duration of defect reliability periods
4. % tage of performance guarantee and Advance
Payment.
5. Define, the scope of works
6. Duration of Contract Duration
Thank You