UNDERSTANDING THE
IMPORTANCE TENDER
DOCUMENTS
PRESENTION OUTLINE
 Introduction: Problems to be circumvented
 Keeping in mind what is to make a good
contact
 The List of Tender Documents
 Arrangement of Sections
 Some of the Important Clauses
 Technical Specifications
 Schedule of Requirements
 Price Schedule (s)
 Standard Forms
DEFINITIONS
 “Standard”
means a level of quality or
excellence that is accepted as the norm or by
which actual attainments are judged
 “Tender” means an offer in writing by a tenderer
to supply at a price goods, services or works,
pursuant to an invitation to tender by a procuring
entity
 “Tender Documents” means the documents
provided by the procuring entity to tenderers as a
basis for preparation of their tenders
 “Standard Tender Documents” means the
documents prepared in a level of quality
determined by PPOA, and distributed to PE’s for
the purpose of customization and providing them
to tenderers as a basis for preparation of their
STANDARD TENDER DOCUMENTS
Why Standard Documents?
 Applicable Law
 To avoid misinterpretation of obligations
 Suppliers Bidding Strategy
 Supplier proposing a low price only to
win the contract and seek variances
once the contact is signed
 Change of ownership of management
 The company sold to a third party
 The level of trust and or evaluated
capability may change
 Changed circumstances
 Example: Drastic economic changes
beyond the control of the parties.
Why Standard Documents?
 Currency fluctuation
 May affect cash flow of the parties
 May result to non-performance
 Delays
 The supplier not able to avail goods
In time at required place.
 Dominance
 Purchaser or supplier dictating terms to either party.
Incomplete or incorrect specifications
 Language
 Parties all thinking erroneously that they
understand what was intended.
What to keep in mind
 Know what you what to obtain and what to avoid
 Know what your option are when things go wrong.
 Know your suppliers
 Seek references if you do know them
 Create a win-win situation by envisaging a longer
term relationship
 Do not allow someone to promise what you
suspect cannot be accomplished.
 E.g.: Allowing unverified qualification or
capability
 Avoiding ambiguous terms
 Ambiguity leads to misinterpretations and
disagreements
What to Keep in mind
 Keeping technology in mind
 Leave your options open as much and as long as
possible
 Keeps industrial and intellectual property in mind
 E.g. ensuring that knowledge developed in
programs remain the property of the company.
 Or you are accorded protection by the supplier
acting as an agent against prosecution by patent
right holder
 Have a clear dispute resolution clause to let all
parties know the procedures for getting relief or
remedy if something goes wrong. Part of risk
management
What to Keep in mind

Having clear termination clause
 Thinking of consequences of that
termination
oE.g. return of proprietary
documentation
 Avoid clauses that foresee termination
by agreement.
Standard Tender Documents
1. Standard tender document for design
construction, supply, installation, testing
commissioning and handing over of
plant/project (turnkey project.)
2. Standard tender document for supply
installation and commissioning of plant and
equipment.
3. Standard tender document for prequalification
of procurement candidates/suppliers.
4. Standard tender document for procurement of
works (Roads, Bridges, Water and other Civil
Engineering works).
5. Standard tender document for procurement of
works (small works)
THE
PUBLIC
PROCUREMENT
PROCESS
6. Standard tender document for procurement
of Works (Buildings and associated civil
engineering Works)
7. Standard tender document for procurement
of works. (Electrical and mechanical works)
8. Standard tender document for procurement
of goods. Standard tender document for
procurement of insurance services
9. Standard tender document for procurement of
services
THE PUBLIC PROCUREMENT PROCESS
9.
Standard tender document for letting,
leasing, licensing, tenancy, franchise and
management contracting.
10. Standard request for proposals (RFP)
(Selection of consultants)
11. Standard tender document for Request
for Proposals (RFP) (selection of
individual professional consultants
12. Standard tender document for sale of
boarded stores and equipment.
 The standard tender documents are
usually customized by purchasers.
ARRANGEMENT OF SECTIONS
General arrangement of the standard tender
documents:
 The cover (To be customized by Procuring
entities(
 Introduction (Information to PEs about the
document)
 Section I: Invitation to tender
 Section II: Instructions to tenderers
 Section III – General conditions of contract
 Section IV – Special conditions of contract
ARRANGEMENT OF SECTIONS
 Section V – Technical Specifications/Scope
of Works /TOR
 Section VI – Schedule of Requirements
 -Section VII- Price Schedule
 Section VIII –Standard Forms
Section I: Invitation to Tender
Instruction to bidders on procedures
for submission of bids
Desirable goods or works to be
procured
Criteria for evaluation of bids
Definitions of conditions of the
proposed contract
Clear information to enable tender
decide to tender or not.
Any other tender requirements.
Section II: Instructions to Bidders
Important clauses:
Eligible Tenderer
Eligible goods
Cost of tendering
Contents of tender document
Clarification of tender documents
Amendment of tender document
Section II: Instructions to Bidders cont’d
Language of tender
Documents compromising of tender
Instruction on how to complete
Tender forms
Tender prices( with or excluding
TAX, Incoterms)
Tender currencies (Multi-currency or
single Currency
Section II: Instructions to Bidders Cont’d
Tenderer’s qualifications
Tender security/tender securing
declaration
Validity of tender
Format of signing of contract
Sealing and marking of tenders
Deadline for submission of tender
Notification and withdrawal of tender
Opening of tenders
Clarification of tenders
Section II: Instructions to Bidders
Evaluation of Tenders and Award of
contract
 Preliminary examination
 Technical Evaluation
 Financial Evaluation
 Conversions to single currency ( for
multiple-currency tenders)
 Award of contract and Communication
to bidders
 Signing of contract
Section II: Instructions to Bidders
Procuring entity’s right to vary
quantity
Procuring entity's right to accept or
reject any or all tenders
Performance Security.
Caution on corrupt or fraudulent
practices (Declaration form to be
completed)
Section III :General Conditions of Contract
 Not be amended-Clarification under Special
Conditions of Contract section
 Definitions (terms and Acronyms)
 Applicable law, Country of origin and
Standards
 Patent right (Contractor to indemnify PE
against third party claims of infringement)
 Inspection and tests and Insurance( can be
clarified through INCOTERMS)
Section III :General Conditions of Contract
 Payments (terms and duration e.t.c) and
Prices (include issues regarding conditions
for variations, adjustments)
 Assignments to other parties ( no assigning
of obligation without PEs consent)
 Sub-contracts( conditions for engagements)
and Termination of contract
Section III :General Conditions Of Contract
cont’d
Liquidated damages
Resolution of disputes
Governing Language
Force majoure
Section IV: Special Conditions of Contract
To be prepared by the procuring
entity
Should not contradict the general
conditions of contracts
They complement the general
conditions of contracts
The General and Special
conditions of contract will become
the conditions of the contract
when it is finally signed
Section V-Technical Specifications
To include but not limited to;
 Scope of works .Bill of Materials.
Quantities( for works or services as
appropriate)
 Terms of Reference (for Request for
Proposals)
 Drawings( for works)
 Testing /Inspection (works and goods)
 Standards (National/International)
 Accepted Quality Levels
Note: Specifications to be performance based
preferably (No restrictive titles)
Section VI – Schedule of Requirements
 Brief Description of Requirements
 Quantity( may be as and when required or
fixed)
 Delivery Schedule (shipment) e.g. selected
Incoterms.
 Note: The starting delivery date will be
specified
 That date should either be the date of
the contract award or date of contract
signature
 Or the date of opening of letter of credit
 Or the date of confirmation of Letter of
Credit
Section VII-Price Schedule (s)
Contains:
Item
Description
Country of Origin
Quantity
Unit Price
Total Amount
INCOTERM e.g. CIF,CFR,EXW, e.t.c
Section VIII – Standard Forms
Form of tender
Confidential Business Questionnaire
Form
Tender Security Form
Contract Form
Performance Security form
Bank Guarantee for Advance
payment
Manufacturer’s Authorization form
Declaration form
BENEFITS OF STD’s
•
Promotes
harmonization
and
standardization
of
procurement
practices
•
Facilitates a uniform understanding
among practitioners and end-users of
the their rights and obligations
•
Promotes increased capacity by
promulgating best practices and
facilitating
predictability
in
procurement proceedings
•
Enhances and promotes transparency
BENEFITS OF STD’s
• Clarity of tender requirements-provides
information that enables procuring entities to
achieve value for money in a procurement
process
• Helps
to
avoid/minimizes
overruns/variation orders
• Avoids/minimizes disputes in
Administration -delayed projects
cost
Contract
• Flexibility -Allows PE to customize the bid
documents and state all conditions of the
tender
• Helps to minimize risk in public procurement