FIDIC Tendering Procedures

International Federation of Consulting Engineers*

*Procedural Flow ChartsRecommended Procedure for the Prequalification of TenderersSectionEmployer/EngineerContractors1.0ESTABLISHMENT OF PROJECT STRATEGY ESTABLISH PROJECT STRATEGY COMPRISING:PROCUREMENT METHODFORM OF TENDERINGTIME SCHEDULES (Slide 24)2.0PREPARATION OF PRE-QUALIFICATION DOCUMENTSPREPARE PREQUALIFICATION DOCUMENTS COMPRISING:LETTER OF INVITATION INFORMATION ABOUT PREQUALIFICATION PROCEDUREPROJECT INFORMATIONPREQUALIFICATION APPLICATION

*SectionEmployer/EngineerContractors2.2INVITATION TO PREQUALIFYPLACE PREQUALIFICATION ADVERTISEMENT IN PRESS, EMBASSIES, ETC. AS APPROPRIATE STATING:EMPLOYER & ENGINEEROUTLINE OF PROJECT (SCOPE, LOCATION, PROGRAMME, SOURCE OF FINANCE)DATES FOR ISSUES OF TENDER DOCUMENTS & SUBMISSION OF TENDERSINSTRUCTIONS FOR APPLYING FORPREQUALIFICATION 'MINIMUM REQUIREMENTS FOR PREQUALIFICATIONSUBMISSION DATE FOR CONTRACTORS' PREQUALIFICATION DATA

*SectionEmployer/EngineerContractors2.3ISSUE & SUBMISSION OF PRE-QUALIFICATION DOCUMENTSPREQUALIFICATION DOCUMENTS & QUESTIONNAIRES REQUESTING FROM EACH COMPANY/JOINT VENTURE:ORGANISATION & STRUCTUREEXPERIENCE IN THE INTENDED TYPE OF WORK & THE REGIONRESOURCES:-MANAGERIAL-TECHNICAL- LABOUR- PLANTFINANCIAL STATEMENTSCURRENT CONTRACT COMMITMENTSLITIGATION HISTORYACKNOWLEDGEMENTRECEIPT REQUEST PREQUALIFICATON DOCUMENTSCOMPLETE & SUBMIT PQ DOCUMENTS & QUESTIONNAIRE

*SectionEmployer/EngineerContractors2.4ANALYSIS OF PREQUALIFICATION APPLICATIONSANALYSE PREQUALIFICATION DATA:COMPANY/JOINT VENTURE STRUCTUREEXPERIENCERESOURCESFINANCIAL CAPABILITY SUITABL1TY2.5SELECTION OF TENDERERSPREPARE LIST OF TENDERERS2.6NOTIFICATION OF APPLICANTSNOTIFY ALL SELECTED TENDERERSACKNOWLEDGE & CONFIRM INTENTION TO SUBMIT TENDER

*RECOMMENDED PROCEDURE FOR OBTAINING TENDERSSectionEmployer/EngineerContractors3.1PREPARATION OF TENDER DOCUMENTSPREPARE TENDER DOCUMENTS LETTER OF INVITATION TO TENDER INSTRUCTIONS TO TENDERERS CONDITIONS OF CONTRACT FORM OF TENDER AND APPENDICES DRAWINGSBILL OF QUANTITIESSCHEDULE OF ADDITIONAL INFORMATIONINFORMATION DATA

*SectionEmployer/EngineerContractors3.2ISSUE OF TENDER DOCUMENTSISSUE TENDER DOCUMENTS TO CONTRACTORS ON LIST OF TENDERERSACKNOWLEDGEMENTRECEIPT 3.3VISIT TO SITE BY TENDERERSARRANGE DATE AND TIME FOR VISIT TO SITEAPPLY FOR VISIT TO SITE IF REQUIREDVISIT(S) TO SITE BY TENDERERS ACCOMPANIED BY EMPLOYER/ENGINEER

*SectionEmployer/EngineerContractors3.4 TENDERERS' QUERIESA) PREPARE REPLIESA)CORRESPONDENCE METHODB) TENDERERS' CONFERENCE METHODINFORM TENDERERS PRESENT OF QUERIES AND REPLIES SUBMITTED IN WRITINGREPLIES TO QUERIES RAISED AT CONFERENCE SUBMIT QUERIES IN WRITING BY GIVEN DATESEND MINUTES TO ALL TENDERERSACKNOWLEDGERECEIPT

*SectionEmployer/EngineerContractors3.5ADDENDA TO TENDER DOCUMENTS ISSUE ADDENDA INCLUDING REPLIES TO QUERIES TO ALL TENDERERSACKNOWLEDGERECEIPT RECORD DATE AND TIME OF RECEIPTSUBMIT TENDERS3.6 SUBMISSION AND RECEIPT OF TENDERS ACKNOWLEDGE RECEIPT OR RETURN UNOPENED TENDERS RECEIVED LATE

*RECOMMENDED PROCEDURE FOR THE OPENING AND EVALUATION OF TENDERSSectionEmployer/EngineerContractors4.1OPENING OF TENDERSTENDER OPENING BY PUBLIC OR RESTRICTED OPENING ANNOUNCE AND RECORD THE NAMES OF TENDERERS AND PRICES. INCLUDING PRICES FOR ALTERNATIVE TENDERS IF APPROPRIATEANNOUNCE AND RECORD NAMES OF TENDERERS (IF ANY) DISQUALIFIED DUE TO LATE OR NON-ARRIVAL OF TENDERSATTEND PUBLIC/RESTRICTED OPENING IF DESIGRED

*SectionEmployer/EngineerContractors5.1REVIEW OF TENDERS ESTABLISH CONFORMITY AND COMPLETENESS OF TENDERS REJECT SUBSTANTIALLY UNRESPONSISIVE TENDERS 5.2 TENDERS CONTAINING DEVIATIONSEVALUATE DEVIATIONS, SEEK CLARIFICATION & RANK TENDERS AS EVALUATEDPROVIDE CLARIFICATION

*SectionEmployer/EngineerContractors5.3 ADJUDICATION OF TENDERS ASSESS TENDERS IN ACCORDANCE WITH EVALUATION CRITERIA RAISE FURTHER POINTS REQUIRING CLARIFICATION, IF ANY, COMPLETE EVALUATION CHECK WITH FUNDING AGENCYREJECT NON-CONFORMING TENDERS & ADVISE TENDERERS CONCERNED5.4 REJECTION OFALL TENDERS PROVIDE CLARIFICATION

*SectionEmployer/EngineerContractors6.0AWARD OF CONTRACTDECIDE ON CONTRACT AWARD, IF NECESSARY AFTER PRE-AWARD DISCUSSIONS6.1ISSUE LETTER OF ACCEPTANCE6.2PERFORMANCE SECURITYATTEND PRE-AWARD DISCUSSIONS, IF REQUIREDISSUE LETTER OF ACCEPTANCEPROVIDE PERFORMANCE SECURITY6.3 PREPARATION OF CONTRACT AGREEMENT6.4 NOTIFICATION OF UNSUCCESSFUL TENDERERS OBTAIN PERFORMANCE SECURITY FROM CONTRACTORPREPARE CONTRACT DOCUMENTS SIGNING OF CONTRACTADVISE UNSUCCESSFUL TENDERERS AND RETURN TENDER SECURITY (IF PROVIDED)ACKNOWLEDGEMENTRECEIPT SIGNING OF CONTRACT UNSUCCESSFUL TENDERERS ACKNOWLEDGE RECEIPT

*Methods of Bid LettingDirect Order.Tendering.Contest.Own Work Force.

*1. Direct OrderIt is mentioned in the Egyptian law (89 fir year 98) in clauses (50) , (51) and it is used for different reasons such as:Complicated contracts: (which have a relatively high risk factor) so that the estimation of their costs will be high unless they are done by well experienced contractors, such as off shore works.Military projects: Which require secrecy, and are also urgent in their nature.Urgent cases: Especially in sudden failure of infra- structures, networks, etc. (e.g. repairing after earthquake).

*2. Tendering.This method is indicated in law (89/98).A tender is the method used by the owner to select the most appropriate proposal from prospective bidders.

*Types of TenderOpen Tender.Selective Tender.Negotiated Tender.Serial Tender.

*Main Types of Contracts in Construction according to Pricing Method

Lump SumFixed PriceUnit PriceSchedule of RatesCost PlusFixed Price with escalationTarget Cost

Award CriteriaOne envelope SystemDouble envelope systemBracketing System 3 Phase SystemA+BLane RentalOthers*

*Tender (Bid) DocumentsInvitation to bid. (Slide 20)Instruction to bidder. (Slide 21)Bid Form. (See Sample)Agreement. (See Sample)General Conditions. (FIDIC, Egyptian, )Supplementary Conditions.Work included in contract.Drawings.Specifications and Bill of QuantitiesAddenda*Construction Schedule *

*Invitation to Bid See SampleObjective: Attract a reasonable number of bidders to ensure competitive bidding.

Contents: - Project Title and Location- Owner data- Contact Person- Place and date of getting tender documents- Brief description of the project- Value of Bid Bond- Expected dates of construction- Source of financing, if applicable- Others

*Instructions to BiddersSee SampleThe Instruction to bidders shows the following:

Description of workPreparation of Bids: How to prepare bids, forms to be filled, documents needed, Submission of Bids: Place to be submitted, no. of copies, method (one envelope, two envelopes, ...)Examination of documents and siteInterpretation of Documents: Questionnaires, pre-bid meeting, Award of contractRejection of bidBid evaluationOthers

*Contract DocumentsTender documents.Letter of acceptance.(See Sample)AddendumAny Corresponding letters.

Note:Notice that contract documents have its relative importance depending upon the type of contract, e.g. in lump-sum contracts, the B.O.Q. is considered as a guide only, while in the unit price contracts it is considered of great importance.

Time Schedule*

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