Vol 1
Vol 1
Vol 1
A Component of
Electricity Grid Modernization Project
BIDDING DOCUMENT
FOR
Design, Supply, Installation, Testing and Commissioning of 132 kV Borang - Lapang
and 220 kV Lapang - Naubise (Ratmate) 220 kV Transmission Line and Associated
Substations
(Procurement of Plant)
VOLUME:- I OF III
March 2021
Borang - Naubise (Ratmate) 220 kV Transmission Line Project
Project Management Directorate
Kharipati, Bhaktapur, Nepal
Telephone: +977-01-6620421
Email address: bn220kv@nea.org.np
Preface
This Bidding Document for Procurement of Plant – Design, Supply, and Installation, has
been prepared by Nepal Electricity Authority and is based on the Standard Bidding Document for
Procurement of Plant – Design, Supply, and Installation (SBD Plant) issued by the Asian
Development Bank dated June 2018.
ADB’s SBD Plant has the structure and the provisions of the Master Procurement Document
entitled “Procurement of Plant – Design, Supply, and Installation”, prepared by multilateral
development banks and other public international financial institutions except where ADB-specific
considerations have required a change.
Table of Contents - Summary Description
PART II REQUIREMENTS
Section 6 - Employer’s Requirements (ERQ) ------------------------------------------ 6-1
This section contains the Scope of Supply of Plant and Services,Specifications, the Drawings, and
Supplementary Information that describe the Facilitiesto be procured, Personnel Requirements,
Equipment Requirements, Certificates, and Change Orders.
Table of Clauses
A. General......................................................................................................................... 1-3
A. General
1. Scope of Bid 1.1 In connection with the Invitation for Bids (IFB) indicated in the Bid Data
Sheet (BDS), the Employer, as indicated in the BDS, issues this Bidding
Document for the procurement of plant and services as specified in Section
6 (Employer’s Requirements). The name, identification, and number of lot/s
(contract/s) of the opencompetitive bidding (OCB) are provided in the BDS.
2. Source of 2.1 The Borrower or Recipient (hereinafter called “Borrower”) indicated in the
Funds BDS has applied for or received financing (hereinafter called “funds”) from
the Asian Development Bank (hereinafter called “ADB”) toward the cost of
the project named in the BDS. The Borrower intends to apply a portion of
the funds to eligible payments under the contract(s) for which this Bidding
Document is issued.
2.2 Payments by ADB will be made only at the request of the Borrower and
upon approval by ADB in accordance with the terms and conditions of the
Financing Agreement between the Borrower and ADB (hereinafter called
”Financing Agreement”), and will be subject in all respects to the terms and
conditions of that Financing Agreement. No party other than the Borrower
shall derive any rights from the Financing Agreement or have any claim to
the funds.
3.2 All Bidders, consultants, contractors, suppliers, and other third parties
engaged or involved in ADB-related activities have a duty to cooperate
1
Whether as a Contractor, Subcontractor, Consultant, Manufacturer or Supplier, or Service Provider; or in any other capacity
(different names are used depending on the particular Bidding Document).
4.2 A Bidder, and all partners constituting the Bidder, shall have the nationality
of an eligible country, in accordance with Section 5 (Eligible Countries). A
Bidder shall be deemed to have the nationality of a country if the Bidder is
4.3 A Bidder shall not have a conflict of interest. All Bidders found to have a
conflict of interest shall be disqualified. A Bidder may be considered to be
in a conflict of interest with one or more parties in this bidding process if
any of, including but not limited to, the following apply:
(a) they have controlling shareholders in common; or
(b) they receive or have received any direct or indirect subsidy from any of
them; or
(c) they have the same legal representative for purposes of this bid; or
(d) they have a relationship with each other, directly or through common
third parties, that puts them in a position to have access to material
information about or improperly influence the bid of another Bidder, or
influence the decisions of the Employer regarding this bidding process;
or
(e) a Bidder participates in more than one bid in this bidding process,
either individually or as a partner in a Joint Venture, except for
alternative offers permitted under ITB 13. This will result in the
disqualification of all Bids in which it is involved. However, subject to
any finding of a conflict of interest in terms of ITB 4.3 (a) - (d) above,
this does not limit the participation of a Bidder as a subcontractor in
another Bid or of a firm as a subcontractor in more than one Bid; or
(f) a Bidder, Joint Venture partner, associates, parent company or any
affiliated entity, participated as a consultant in the preparation of the
design or technical specifications of the plant and services that are the
subject of the Bid; or
(g) a Bidder was affiliated with a firm or entity thathas been hired (or is
proposed to be hired) by the Employer or Borrower as Project
Manager for the Contract; or
(h) a Bidder would be providing goods, works, or nonconsulting services
resulting from or directly related to consulting services for the
preparation or implementation of the project specified in the BDS ITB
2.1 that it provided or were provided by any affiliate that directly or
indirectly controls, is controlled by, or is under common control with
that firm.
4.4 A firm shall not be eligible to participate in any procurement activities under
an ADB-financed, -administered, or -supported project while under
temporary suspension or debarment by ADB pursuant to its Anticorruption
Policy (see ITB 3), whether such debarment was directly imposed by ADB,
or enforced by ADB pursuant to the Agreement for Mutual Enforcement of
Debarment Decisions. A bid from a temporary suspended or debarred firm
will be rejected.
4.9 In case a prequalification process has been conducted prior to the bidding
process, this bidding is open only to prequalified Bidders.
5. Eligible 5.1 The plant and services to be supplied under the Contract shall have their
Plantand origin in eligible source countries as defined in ITB 4.2 and all expenditures
Services under the Contract will be limited to such plant and services.
5.2 For purposes of ITB 5.1 above, “origin” means the place where the plant,
or component parts thereof are mined, grown, produced, or manufactured,
and from which the services are provided. Plant components are produced
when, through manufacturing, processing, or substantial or major
assembling of components, a commercially recognized product results that
is substantially in its basic characteristics or in purpose or utility from its
components.
6.3 The Employer is not responsible for the completeness of the Bidding
Document and its addenda, if they were not obtained directly from the
source stated by the Employerin the IFB.
6.4 The Bidder is expected to examine all instructions, forms, terms, and
specifications in the Bidding Document. Failure to furnish all information or
documentation required by the Bidding Document may result in the
rejection of the Bid.
7. Clarification of 7.1 A prospective Bidder requiring any clarification on the Bidding Document
Bidding shall contact the Employer in writing at the Employer’s address indicated in
Document, Site the BDS, or raise inquiries during the pre-bid meeting if provided for in
Visit, Pre-Bid accordance with ITB 7.4. The Employer will respond to any request for
Meeting clarification, provided that such request is received no later than 21 days
prior to the deadline for submission of bids. The Employer’sresponse shall
be in writing with copies to all Bidders who have acquired the Bidding
Document in accordance with ITB 6.3, including a description of the inquiry
but without identifying its source. Should the Employer deem it necessary
to amend the Bidding Document as a result of a request for clarification, it
shall do so following the procedure under ITB 8 and ITB 24.2.
7.2 The Bidder is advised to visit and examine the site where the plant is to be
installed and its surroundings and obtain for itself on its own responsibility
all information that may be necessary for preparing the Bid and entering
into a contract for the provision of plant and services. The costs of visiting
the site shall be at the Bidder’s own expense.
7.3 The Bidder and any of its personnel or agents will be granted permission
by the Employer to enter its premises and lands for the purpose of such
visit, but only upon the express condition that the Bidder, its personnel,
and agents, will release and indemnify the Employer and its personnel and
agents from and against all liability in respect thereof, and will be
responsible for death or personal injury, loss of or damage to property, and
any other loss, damage, costs, and expenses incurred as a result of the
inspection.
7.5 The Bidder is requested to submit any questions in writing, to reach the
Employer not later than 1 week before the pre-bid meeting.
7.6 Minutes of the pre-bid meeting, including the text of the questions raised,
without identifying the source, and the responses given, together with any
responses prepared after the meeting, will be transmitted promptly to all
Bidders who have acquired the Bidding Document in accordance with ITB
6.3. Any modification to the Bidding Document that may become
necessary as a result of the pre-bid meeting shall be made by the
Employer exclusively through the issue of an addendum pursuant to ITB 8
and not through the minutes of the pre-bid meeting.
8. Amendment of 8.1 At any time prior to the deadline for submission of Bids, the Employer may
Bidding amend the Bidding Document by issuing addenda.
Document
8.2 Any addendum issued shall be part of the Bidding Document and shall be
communicated in writing to all who have obtained the Bidding Document
from the Employerin accordance with ITB 6.3.
C. Preparation of Bids
9. Cost of Bidding 9.1 The Bidder shall bear all costs associated with the preparation and
submission of its Bid, and the Employer shall in no case be responsible or
liable for those costs, regardless of the conduct or outcome of the bidding
process.
10. Language of 10.1 The Bid, as well as all correspondence and documents relating to the bid
Bid exchanged by the Bidder and the Employer, shall be written in the
languagespecified in the BDS. Supporting documents and printed literature
that are part of the Bid may be in another language provided they are
accompanied by an accurate translation of the relevant passages into the
languagespecified in the BDS, in which case, for purposes of interpretation
of the Bid, such translation shall govern.
11. Documents 11.1 The Bid shall comprise two envelopes submitted simultaneously, one
Comprising the containing the Technical Bid and the other the Price Bid, both envelopes
Bid enclosed together in an outer single envelope.
11.2 The Technical Bid submitted by the Bidder shall comprise the following:
(a) Letter of Technical Bid;
(b) Bid Security or Bid-Securing Declaration, in accordance with ITB 21;
(c) alternative Bids, if permissible, in accordance with ITB 13;
(d) written confirmation authorizing the signatory of the Bid to commit the
Bidder, in accordance with ITB 22.2;
(e) documentary evidence in accordance with ITB 14.1, that the plant and
services offered by the Bidder in its Bid or in any alternative Bid, if
permitted, are eligible;
(f) documentary evidence in accordance with ITB 15, the Bidder’s
eligibility and qualifications to perform the contract if its Bid is
accepted;
(g) Technical Proposal in accordance with ITB 17.
(h) documentary evidence in accordance with ITB 16, that the plant and
services offered by the Bidder conform to the Bidding Document;
(i) in the case of a bid submitted by a Joint Venture, the Bid shall include
a copy of the Joint Venture Agreemententered into by all partners.
Alternatively, a Letter of Intent to execute a Joint Venture Agreement in
the event of a successful bid shall be signed by all partners and
submitted with the Bid, together with a copy of the proposed
agreement;
11.3 The Price Bid submitted by the Bidder shall comprise the following:
(a) Letter of Price Bid;
(b) completed schedules as required, including Price Schedules, in
accordance with ITB 12 and ITB 18;
(c) alternative price Bids, if permissible, in accordance with ITB 13; and
(d) any other document required in the BDS.
12. Letter of Bid 12.1 The Letters of Technical Bid and Price Bid, and the Schedules, and all
and Schedules documents listed under ITB 11, shall be prepared using the relevant forms
furnished in Section 4 (Bidding Forms). The forms must be completed
without any alterations to the text, and no substitutes shall be accepted. All
blank spaces shall be filled in with the information requested and as
required in the BDS.
13. Alternative 13.1 The BDS indicates whether alternative Bids are allowed. If they are
Bids allowed, the BDS will also indicate whether they are permitted in
accordance with ITB 13.3, or invited in accordance with ITB13.2 and/or ITB
13.4.
13.2 When alternatives to the Time Schedule are explicitly invited, a statement
to that effect will be included in the BDS, and the method of evaluating
different time schedules will be described in Section 3 (Evaluation and
Qualification Criteria).
13.3 Except as provided under ITB 13.4 below, Bidders wishing to offer
technical alternatives to the Employer’s requirements as described in the
Bidding Document must also provide: (i) a price at which they are prepared
to offer a plant meeting the Employer’s requirements;and (ii) all information
necessary for a complete evaluation of the alternatives by the Employer,
including drawings, design calculations, technical specifications,
breakdown of prices, and proposed installation methodology and other
relevant details. Only the technical alternatives, if any, of the lowest
evaluated Bidder conforming to the basic technical requirements shall be
considered by the Employer.
13.4 When Bidders are invited in the BDS to submit alternative technical
solutions for specified parts of the facilities, such parts shall be described
in Section 6 (Employer’s Requirements). Technical alternatives for the
specific parts of the facilities that comply with the performance and
technical criteria specified for the plant and services shall be considered by
the Employer on their own merits, pursuant to ITB 32.
14. Documents 14.1 To establish the eligibility of the plant and services in accordance with ITB
Establishing 5, Bidders shall complete the Country of Origin Declaration Formincluded
the Eligibility of in Section 4 (Bidding Forms).
Plant and
Services
15. Documents 15.1 To establish its eligibility and qualifications to perform the Contract in
Establishing accordance with Section 3 (Evaluation and Qualification Criteria), the
the Eligibility Bidder shall provide the information requested in the corresponding
and information sheets included in Section 4 (Bidding Forms).
Qualifications
15.2 Domestic Bidders, individually or in Joint Ventures, applying for eligibility
of the Bidder
for domestic preference shall supply all information required to satisfy the
criteria for eligibility as described in ITB 38.
16. Documents 16.1 The documentary evidence of the conformity of the plant and services to
Establishing the Bidding Document may be in the form of literature, drawings and data,
Conformity of and shall furnish:
the Plant and
(a) a detailed description of the essential technical and performance
Services
characteristics of the plant and services, including the functional
guarantees of the proposed plant and services, in response to the
Specification;
(b) a list giving full particulars, including available sources, of all spare
partsand special toolsnecessary for the proper and continuing
functioning of the plant for the period named in the BDS, following
completion of plant and services in accordance with provisions of the
contract; and
(c) a commentary on the Employer’s Specifications and adequate
evidence demonstrating the substantial responsiveness of the plant
and services to those specifications. Bidders shall note that standards
for workmanship, materials and equipment designated by the
Employer in the Bidding Document are intended to be descriptive
(establishing standards of quality and performance) only and not
restrictive. The Bidder may substitute alternative standards, brand
names and/or catalog numbers in its Bid, provided that it demonstrates
to the Employer’s satisfaction that the substitutions are substantially
equivalent or superior to the standards designated in the
Specifications.
17. Technical 17.1 The Bidder shall furnish a Technical Proposal including a statement of
Proposal, work methods, equipment, personnel, schedule and any other information
Subcontractors as stipulated in Section 4 (Bidding Forms), in sufficient detail to
demonstrate the adequacy of the Bidders’ proposal to meet the work
requirements and the completion time.
17.2 For major items of plant and services as listed by the Employer in Criterion
2.5 of Section 3 (Evaluation and Qualification Criteria), which the Bidder
intends to purchase or subcontract, the Bidder shall give details of the
name and nationality of the proposed Subcontractors, including
Manufacturers, for each of those items. In addition, the Bidder shall include
in its Bid information establishing compliance with the requirements
specified by the Employer for these items. Bidders are free to list more
than one Subcontractor against each item of the plant and services.
Quoted rates and prices will be deemed to apply to whichever
Subcontractor is appointed, and no adjustment of the rates and prices will
be permitted.
17.3 The Bidder shall be responsible for ensuring that any Subcontractor
proposed complies with the requirements of ITB 4, and that any plant, or
services to be provided by the Subcontractor comply with the requirements
of ITB 5 and ITB 15.1
18. Bid Prices and 18.1 Unless otherwise specified in the BDS and/or Section 6 (Employer’s
Discounts Requirements), bidders shall quote for the entire plant and services on a
“single responsibility” basis such that the total Bid price covers all the
Contractor’s obligations mentioned in or to be reasonably inferred from the
Bidding Document in respect of the design, manufacture, including
procurement and subcontracting (if any), delivery, construction, installation,
and completion of the plant. This includes all requirements under the
Contractor’s responsibilities for testing, pre-commissioning and
commissioning of the plant and, where so required by the Bidding
Document, the acquisition of all permits, approvals, and licenses, etc.; the
operation, maintenance, and training services and such other items and
services as may be specified in the Bidding Document, all in accordance
with the requirements of the General Conditions. Items against which no
price is entered by the Bidder will not be paid for by the Employer when
executed and shall be deemed to be covered by the prices for other items.
18.2 Bidders are required to quote the price for the commercial, contractual and
technical obligations outlined in the Bidding Document.
18.3 Bidders shall give a breakdown of the prices in the manner and detail
called for in the Price Schedules included in Section 4 (Bidding Forms).
Where no different Price Schedules are included in the Bidding Document,
Bidders shall present their prices in the following manner: Separate
numbered Schedules included in Section 4 (Bidding Forms) shall be used
for each of the following elements. The total amount from each Schedule
(Nos. 1 to 4) shall be summarized in a Grand Summary (Schedule No. 5)
giving the total bid price(s) to be entered in the Letter of Price Bid.
Absence of the total bid price in the Letter of Price Bid may result in the
rejection of the Bid.
Schedule No. 1: Plant and Mandatory Spare Parts Supplied from Abroad
Schedule No. 2: Plant and Mandatory Spare Parts Supplied from Within
the Employer’s Country
Schedule No. 3: Design Services
Schedule No. 4: Installation and Other Services
Schedule No. 5 Grand Summary (Schedule Nos. 1 to 4)
Schedule No. 6: Recommended Spare Parts
Bidders shall note that the plant and mandatory spare parts included in
Schedule Nos. 1 and 2 above exclude materials used for civil, building,
and other construction works. All such materials shall be included and
priced under Schedule No. 4, Installation and Other Services.
18.4 In the Schedules, Bidders shall give the required details and a breakdown
of their prices as follows:
(a) Plant to be Supplied from Abroad (Schedule No. 1):
(i) the price of the plant shall be quoted carriage and insurance paid
(CIP)-named place of destination basisspecified in the BDS;
(ii) all customs duties and other taxes paid or payable in the
Employer’s country on the plant if the contract is awarded to the
Bidder; and
(iii) the total price for the plant.
(b) Plant Supplied from Within the Employer’s Country (Schedule No. 2):
(i) the price of the plant shall be quoted on an EXW Incoterm basis
(ex works, ex factory, ex warehouse, ex showroom, as
applicable), including all customs duties and sales and other
taxes already paid or payable on the components and raw
material used in the manufacture or assembly of plant quoted ex
works or ex factory, or on the previously imported plant of foreign
origin quoted ex warehouse, ex showroom;
(ii) sales tax and other taxes payable in the Employer’s country on
the plant if the contract is awarded to the Bidder, and
(iii) the total price for the plant.
(c) Design Services. (Schedule No. 3). Rates or prices shall include all
taxes, duties, levies, and charges payable in the Employerʼs country as
of 28 days prior to the deadline for submission of Bids.
(d) Installation and Other Services (Schedule No. 4)shall be quoted
separately and shall include rates or prices for local transportation,
insurance, and other services incidental to delivery of the plant, all
labor, contractor’s equipment, temporary works, materials,
consumables, and all matters and things of whatsoever nature,
including operations and maintenance services, the provision of
operations and maintenance manuals, training, etc., where identified in
the Bidding Document, as necessary for the proper execution of the
installation and other services, including all taxes, duties, levies, and
charges payable in the Employer’s country as of 28 days prior to the
deadline for submission of bids.
18.6 The prices shall be either fixed or adjustable as specified in the BDS.
(a) In the case of Fixed Price, prices quoted by the Bidder shall be fixed
during the Bidder’s performance of the contract and not subject to
variation on any account. A Bid submitted with an adjustable price
quotation will be treated as nonresponsive and rejected.
(b) In the case of Adjustable Price, prices quoted by the Bidder shall be
subject to adjustment during performance of the contract to reflect
changes in the cost elements such as labor, material, transport, and
contractor’s equipment in accordance with the procedures specified in
the corresponding appendix to the Contract Agreement. A Bid
submitted with a fixed price quotation will be treated as nonresponsive
and be rejected. The Bidder shall furnish the indexes (e.g. for labor
and materials), their weightings and source in the Tables of
Adjustment Data included in Section 4 (Bidding Forms). The Employer
may require the Bidder to justify its proposed indexes and weightings.
Any bid that omits indexes and weightings shall be subject to
18.7 If so indicated in BDS 1.1, Bids are being invited for individual lots
(contracts) or for any combination of lots (packages). Bidders wishing to
offer any price reduction (discount) for the award of more than one contract
shall specify in their Letter of Price Bid the price reductions applicable to
each package, or alternatively, to individual contracts within the package,
and the manner in which the price reductions will apply.
19. Currencies of 19.1 The currency(ies) of the bid shall be, as specified in the BDS.
Bid and
Payment
20. Period of 20.1 Bids shall remain valid for the period specified in the BDS after the bid
Validity of Bids submission deadline date prescribed by the Employer. A bid valid for a
shorter period shall be rejected by the Employer as nonresponsive.
20.2 In exceptional circumstances, prior to the expiration of the bid validity period,
the Employer may request Bidders to extend the period of validity of their Bids.
The request and the responses shall be made in writing. If a bid security is
requested in accordance with ITB 21, it shall also be extended 28 days
beyond the deadline of the extended bid validity period. A Bidder may
refuse the request without forfeiting its bid security. A Bidder granting the
request shall not be required or permitted to modify its Bid.
21. Bid Security/ 21.1 Unless otherwise specified in the BDS, the Bidder shall furnish as part of
Bid Securing its Bid, in original form, either a Bid-Securing Declaration or a bid
Declaration securityas specified in the BDS. In the case of a bid security, the amount
and currency shall be as specified in the BDS.
21.2 If a Bid-Securing Declaration is required pursuant to ITB 21.1, it shall use
the form included in Section 4 (Bidding Forms). The Employer will declare
a Bidder ineligible to be awarded a Contract for a specified period of time,
as indicated in the BDS, if a Bid-Securing Declaration is executed.
21.3 If a bid security is specified pursuant to ITB 21.1, the bid security shall
be,at the Bidder’s option, in any of the following forms:
(a) an unconditional bank guarantee,
(b) an irrevocable letter of credit,
(c) a cashier’s or certified check,or
(d) SWIFT message in the form of MT760.
allfrom a reputable source from an eligible countryas described in Section
5 (Eligible Countries).In the case of a bank guarantee,the bid security shall
be submitted using either the Bid Security Form included in Section 4
(Bidding Forms) or another form acceptable to the Employer. The form
must include the complete name of the Bidder. The bid security shall be
valid for 28 days beyond the original validity period of the Bid, or beyond
any period of extension if requested under ITB 20.2.
21.4 Unless otherwise specified in the BDS, any Bid not accompanied by a
substantially compliant bid security or Bid-Securing Declaration, if one is
required in accordance with ITB 21.1,shall be rejected by the Employer as
nonresponsive.
21.5 If a bid security is specified pursuant to ITB 21.1, the bid security of the
unsuccessful Bidder shall be returned promptly upon the successful
Bidder’s furnishing of the performance security pursuant to ITB 46.
21.6 If a bid security is specified pursuant to ITB 21.1, the bid security of
successful Bidders shall be returned promptly once the successful Bidder
has signed the Contract and furnished the required performance security.
22. Format and 22.1 The Bidder shall prepare one original set of the Technical Bid and one
Signing of Bid original set of the Price Bidcomprising the Bid as described in ITB 11 and
clearly mark it “ORIGINAL - TECHNICAL BID” and “ORIGINAL - PRICE
BID”. Alternative bids, if permitted in accordance with ITB 13, shall be
clearly marked “ALTERNATIVE”. In addition, the Bidder shall submit
copies of the Bid, in the number specified in the BDS and clearly mark
each of them “COPY.” In the event of any discrepancy between the
original and the copies, the original shall prevail.
22.2 The original and all copies of the Bid shall be typed or written in indelible ink
and shall be signed by a person duly authorized to sign on behalf of the
Bidder. This authorization shall consist of a written confirmation as specified in
the BDS and shall be attached to the Bid. The name and position held by
each person signing the authorization must be typed or printed below the
signature. If a Bidder submits a deficient authorization, the Bid shall not be
rejected in the first instance. The Employer shall request the Bidder to
submit an acceptable authorization within the number of days as specified
in the BDS. Failure to provide an acceptable authorization within the period
stated in the Employer’s request shall cause the rejection of the Bid.If
either the Letter of Technical Bid or Letter of Price Bid or the Bid-Securing
23.3 The outer envelopes and the inner envelopes containing the Technical Bid
shall bear a warning not to open before the time and date for the opening
of Technical Bid, in accordance with ITB 27.1.
23.4 The inner envelopes containing the Price Bid shall bear a warning not to
open until advised by the Employer in accordance with ITB 27.7.
23.6 If all envelopes are not sealed and marked as required, the Employer will
assume no responsibility for the misplacement or premature opening of the
Bid.
24. Deadline for 24.1 Bids must be received by the Employer at the address and no later than the
Submission of date and time indicated in the BDS.
Bids
24.2 The Employer may, at its discretion, extend the deadline for the submission of
bids by amending the Bidding Document in accordance with ITB 8, in which
case all rights and obligations of the Employer and Bidders previously subject
to the deadline shall thereafter be subject to the deadline as extended.
25. Late Bids 25.1 The Employer shall not consider any Bid that arrives after the deadline for
submission of Bids, in accordance with ITB 24. Any Bid received by the
Employer after the deadline for submission of Bids shall be declared late,
rejected, and returned unopened to the Bidder.
26. Withdrawal, 26.1 A Bidder may withdraw, substitute, or modify its Bid after it has been submitted
Substitution, by sending a written notice, duly signed by an authorized representative, and
and shall include a copy of the authorization in accordance with ITB 22.2 (except
Modification of for withdrawal notices, which do not require copies). The corresponding
Bids substitution or modification of the Bid must accompany the respective written
notice. All notices must be:
(a) prepared and submitted in accordance with ITB 22 and ITB 23 (except
for withdrawal notices, which do not require copies), and in addition,
the respective envelopes shall be clearly marked “WITHDRAWAL,”
“SUBSTITUTION,” “MODIFICATION;” and
(b) received by the Employer prior to the deadline prescribed for
submission of Bids, in accordance with ITB 24.
26.2 Bids requested to be withdrawn in accordance with ITB 26.1 shall be returned
unopened to the Bidders.
26.3 No Bid may be withdrawn, substituted, or modified in the interval between the
deadline for submission of Bids and the expiration of the period of bid validity
specified by the Bidder on the Letter of TechnicalBid or any extension thereof.
27. Bid Opening 27.1 The Employer shall open the Technical Bids in public at the address, on the
date, and time specified in the BDS in the presence of Bidder’s designated
representatives and anyone who choose to attend. Any specific electronic bid
opening procedures required if electronic bidding is permitted in accordance
with ITB 23.1, shall be as specified in the BDS.The Price Bids will remain
unopened and will be held in custody of the Employer until the specified
time of their opening. If the Technical Bid and the Price Bid are submitted
together in one envelope, the Employer may reject the entire Bid.
Alternatively, the Price Bid may be immediately resealed for later
evaluation.
27.2 First, envelopes marked “WITHDRAWAL” shall be opened and read out
and the envelope with the corresponding Bid shall not be opened, but
returned to the Bidder. No bid withdrawal shall be permitted unless the
corresponding withdrawal notice contains a valid authorization to request
the withdrawal and is read out at bid opening.
27.5 All other envelopes holding the Technical Bids shall be opened one at a
time, and the following read out and recorded:
(a) the name of the Bidder;
(b) whether there is a modification or substitution;
(c) the presence of a bid securityor a Bid-Securing Declaration, if
required; and
(d) any other details as the Employer may consider appropriate.
Only Technical Bids and alternative Technical Bids read out and recorded
at bid opening shall be considered for evaluation. Unless otherwise
specified in the BDS, all pages of the Letter of Technical Bid are to be
initialed by at least three representatives of the Employer attending the bid
opening.No Bid shall be rejected at the opening of Technical Bids except
for late Bids, in accordance with ITB 25.1.
27.6 The Employer shall prepare a record of the opening of Technical Bids that
shall include, as a minimum: the name of the Bidder and whether there is a
withdrawal, substitution, or modification; and alternative Bids; and the
presence or absence of a bid security or a Bid-Securing Declaration, if one
was required. The Bidders’ representatives who are present shall be
requested to sign the record. The omission of a Bidder’s signature on the
record shall not invalidate the contents and effect of the record. A copy of
the record shall be distributed to all Bidders who submitted Bids on time,
and posted online when electronic bidding is permitted.
27.7 At the end of the evaluation of the Technical Bids, the Employer will invite
bidders who have submitted substantially responsive Technical Bids and
who have been determined as being qualified for award to attend the
opening of the Price Bids. The date, time, and location of the opening of
Price Bids will be advised in writing by the Employer. Bidders shall be
given reasonable notice of the opening of Price Bids.
27.8 The Employer will notify Bidders in writing who have been rejected on the
grounds of their Technical Bids being substantially nonresponsive to the
requirements of the Bidding Document and return their Price Bids
unopened.
27.9 The Employer shall conduct the opening of Price Bids of all Bidders who
submitted substantially responsive Technical Bids, in the presence of
Bidders` representatives who choose to attend at the address, on the date,
and time specified by the Employer. The Bidder’s representatives who are
present shall be requested to sign a register evidencing their attendance.
27.10 All envelopes containing Price Bids shall be opened one at a time and the
27.11 The Employer shall prepare a record of the opening of Price Bids that shall
include, as a minimum: the name of the Bidder, the Bid Price (per lot if
applicable), any discounts, and alternative offers. The Bidders’
representatives who are present shall be requested to sign the record.
The omission of a Bidder’s signature on the record shall not invalidate the
contents and effect of the record. A copy of the record shall be distributed
to all Bidderswho submitted Bids on time, and posted online when
electronic bidding is permitted.
28. Confidentiality 28.1 Information relating to the evaluation of Bids and recommendation of contract
award, shall not be disclosed to Bidders or any other persons not officially
concerned with such process until publication ofContract award.
28.2 Any attempt by a Bidder to influence the Employer in the evaluation of the
Bids or Contract award decisions may result in the rejection of its Bid.
28.3 Notwithstanding ITB 28.2, from the time of bid opening to the time of Contract
award, if any Bidder wishes to contact the Employer on any matter related to
the bidding process, it should do so in writing.
29. Clarification of 29.1 To assist in the examination, evaluation, and comparison of the Technical and
Bids Price Bids, and qualification of the Bidders, the Employer may, at its
discretion, ask any Bidder for a clarification of its Bid. Any clarification
submitted by a Bidder that is not in response to a request by the Employer
shall not be considered. The Employer’s request for clarification and the
response shall be in writing. No change in the substance of the Technical
Bid or prices in the Price Bid shall be sought, offered, or permitted, except to
confirm the correction of arithmetic errors discovered by the Employer in the
evaluation of the Bids, in accordance with ITB 36.
29.2 If a Bidder does not provide clarifications of its Bid by the date and time set in
the Employer’s request for clarification, its Bid may be rejected.
30. Deviations, 30.1 During the evaluation of Bids, the following definitions apply:
Reservations,
and Omissions (a) “Deviation” is a departure from the requirements specified in the
Bidding Document;
(b) “Reservation” is the setting of limiting conditions or withholding from
31. Examination 31.1 The Employer shall examine the Technical Bid to confirm that all
of Technical documents and technical documentation requested in ITB 11.2 have been
Bids provided, and to determine the completeness of each document submitted.
If any of these documents or information is missing, the Bid may be
rejected.
31.2 The Employer shall confirm that the following documents and information
have been provided in the Technical Bid. If any of these documents or
information is missing, the offer shall be rejected.
(a) Letter of Technical Bid;
(b) written confirmation of authorization to commit the Bidder;
(c) Bid Security or Bid-Securing Declaration, if applicable; and
(d) Technical Proposal in accordance with ITB 17.
32. Responsivenes 32.1 The Employer’s determination of a bid’s responsiveness is to be based on the
s of Technical contents of the Bid itself, as defined in ITB11.
Bid
32.2 A substantially responsive Technical Bidis one that meets the requirements of
the Bidding Document without material deviation, reservation, or omission. A
material deviation, reservation, or omission is one that,
(a) if accepted, would:
(i) affect in any substantial way the scope, quality, or performance of
the plant and services specified in the Contract; or
(ii) limit in any substantial way, inconsistent with the Bidding
Document, the Employer’s rights or the Bidder’s obligations under
the proposed Contract; or
(b) if rectified, would unfairly affect the competitive position of other
Bidders presenting substantially responsive Bids.
32.3 The Employer shall examine the technical aspects of the Bid submitted in
accordance with ITB 17, Technical Proposal, in particular to confirm that all
requirements of Section 6 (Employer’s Requirements) have been met without
any material deviation, reservation, or omission.
33. Nonmaterial 33.1 Provided that a Bid is substantially responsive, the Employer may waive any
Nonconformities nonconformities in the Bid that do not constitute a material deviation,
reservation, or omission.
33.2 Provided that a Bidis substantially responsive, the Employer may request
that the Bidder submit the necessary information or documentation, within
a reasonable period of time, to rectify nonmaterial nonconformities in the
Bidrelated to documentation requirements. Requesting information or
documentation on such nonconformities shall not be related to any aspect
of the Price Bid. Failure of the Bidder to comply with the request may result
in the rejection of its Bid.
33.3 Provided that a Bidis substantially responsive, the Employer shall rectify
quantifiable nonmaterial nonconformities related to the Bid Price. To this
effect, the Bid Price shall be adjusted, for comparison purposes only, to
reflect the price of a missing or nonconforming item or component. The
adjustment shall be made using the method indicated in Section 3
(Evaluation and Qualification Criteria).
34. Detailed 34.1 The Employer will carry out a detailed technical evaluation of the Bids not
Evaluation of previously rejected as being substantially nonresponsive, to determine
Technical Bids whether the technical aspects are in compliance with the Bidding
Document. The Bid that does not meet minimum acceptable standards of
completeness, consistency, and detail, and the specified minimum and/or
maximum requirements for specified functional guarantees, will be treated
as nonresponsive and hence rejected. To reach such a determination, the
Employer will examine and compare the technical aspects of the bids on
the basis of the information supplied by the Bidders, taking into account
the following:
(a) overall completeness and compliance with the Employer’s
Requirements; deviations from the Employer’s Requirements;
conformity of the plant and services offered with specified performance
criteria; suitability of the plant and services offered in relation to the
environmental and climatic conditions prevailing at the site; and
quality, function and operation of any process control concept included
in the Bid. The Bid that does not meet minimum and/or maximum
acceptable standards of completeness, consistency, and detail will be
rejected for nonresponsiveness;
(b) type, quantity, and long-term availability of mandatory and
recommended spare parts and maintenance services; and
(c) other relevant factors, if any, listed in Section 3 (Evaluation and
Qualification Criteria).
34.2 Where alternative technical solutions have been allowed in accordance with
ITB 13, and offered by the Bidder, the Employer will make a similar evaluation
of the alternatives. Where alternatives have not been allowed but have been
offered, they shall be ignored.
36. Correction of 36.1 During the evaluation of Price Bids, the Employer shall correct arithmetical
Arithmetical errors on the following basis:
Errors
(a) where there are errors between the total of the amounts given under
the column for the price breakdown and the amount given under the
Total Price, the amounts given under the column for the price
breakdownshall prevail and the Total Price will be corrected
accordingly;
(b) where there are errors between the total of the amounts of Schedule
Nos. 1 to 4 and the amount given in Schedule No. 5 (Grand
Summary), the total of the amounts of
Schedule Nos. 1 to 4 shall prevail and the Schedule No. 5
(Grand Summary) will be corrected accordingly;
(c) if there is a discrepancy between the grand total price given in
Schedule No. 5 (Grand Summary) and the bid amount in item (c) of the
Letter of Price Bid, the grand total price given in Schedule No. 5
(Grand Summary) will prevail and the bid amount in item (c) of the
Letter of Price Bid will be corrected; and
(d) if there is a discrepancy between words and figures, the amount in
words shall prevail, unless the amount expressed in words is related to
an arithmetical error, in which case the amount in figures shall prevail
subject to (a), (b), and (c) above.
36.2 If the Bidder that submitted the lowest evaluated Bid does not accept the
correction of errors, its Bid shall be disqualified and its bid security may be
37. Conversion to 37.1 For evaluation and comparison purposes, the currency(ies) of the Bid shall be
Single converted into a single currency as specified in the BDS.
Currency
38. DomesticPrefer 38.1 Unless otherwise specified in the BDS, domestic preference shall not apply.
ence
39. Evaluation and 39.1 The Employer shall use the criteria and methodologies listed in this clause.
Comparison of No other evaluation criteria or methodologies shall be permitted.
Price Bids
39.2 I. To evaluate a Price Bid, the Employer shall consider the following:
(a) the bid price, excluding provisional sums and the provision, if any, for
contingencies in the Price Schedules;
(b) price adjustment for correction of arithmetical errors in accordance with
ITB 36.1;
(c) price adjustment due to discounts offered in accordance with ITB 18.7;
(d) price adjustment due to quantifiable nonmaterial nonconformities in
accordance with ITB 33.3;
(e) converting the amount resulting from applying (a) to (c) above, if
relevant, to a single currency in accordance with ITB 37;
(f) assessment whether the bid is abnormally low in accordance with ITB
40; and
(g) the evaluation factors indicated in Section 3 (Evaluation and
Qualification Criteria).
II. The Employer’s evaluation of a Bid will exclude and not take into account,
(a) in the case of Plant and Mandatory Spare Parts (Schedule No. 1)
supplied from abroad, all taxes and duties, applicable in the
Employer’s country and payable on the Plant and Mandatory Spare
Parts if the Contract is awarded to the Bidder; and
(b) in the case of Plant and Mandatory Spare Parts (Schedule No. 2)
supplied from within the Employer’s country, sales and other taxes,
applicable in the Employer’s country and payable on the Plant and
Mandatory Spare Parts if the Contract is awarded to the Bidder.
39.3 If price adjustment is allowed in accordance with ITB 18.6, the estimated effect
of the price adjustment provisions of the Conditions of Contract, applied over
the period of execution of the Contract, shall not be taken into account in bid
evaluation.
39.4 If this Bidding Document allows Bidders to quote separate prices for different
lots (contracts), and the award to a single Bidder of multiple lots (contracts),
the methodology to determine the lowest evaluated price of the lot (contract)
combinations, including any discounts offered in the Letter of Price Bid, is
specified in Section 3 (Evaluation and Qualification Criteria).
39.5 If the Bid, which results in the lowest Evaluated Bid Price, is seriously
unbalanced or front loaded in the opinion of the Employer, the Employer may
require the Bidder to produce detailed price analyses for any or all items of the
Price Schedules, to demonstrate the internal consistency of those prices with
the methods and time schedule proposed. After evaluation of the price
analyses, taking into consideration the terms of payments, the Employer may
require that the amount of the performance security be increased at the
expense of the Bidder to a level sufficient to protect the Employer against
financial loss in the event of default of the successful Bidder under the
Contract.
39.6 The Employer shall compare all substantially responsive Bids to determine the
lowest evaluated Bid, in accordance with ITB 39.2.
40. Abnormally
40.1 An abnormally low bid is one where the bid price, in combination with other
Low Bids
elements of the bid, appears to be so low that it raises concerns as to the
capability of the Bidder to perform the contract for the offered bid price.
40.2 When the offered bid price appears to be abnormally low, the Employer
shall undertake a three-step review process as follows:
(a) identify abnormally low costs and unit rates by comparing them with the
engineer’s estimates, other substantially responsive bids, or recently
awarded similar contracts;
(b) clarify and analyze the bidder’s resource inputs and pricing, including
overheads, contingencies and profit margins; and
(c) decide whether to accept or reject the bid.
40.3 With regard to ITB 40.2 (b) above, the Employer will seek a written explanation
from the bidder of the reasons for the offered bid price, including a detailed
analysis of costs and unit prices, by reference to the scope, proposed
methodology, schedule, and allocation of risks and responsibilities. This may
also include information regarding the economy of the manufacturing process;
the services to be provided, or the construction method to be used; the
technical solutions to be adopted; and any exceptionally favorable conditions
available to the bidder for the works, equipment or services proposed.
40.4 After examining the explanation given and the detailed price analyses
presented by the bidder, the Employer may:
(a) accept the bid, if the evidence provided satisfactorily accounts for the
low bid price and costs, in which case the bid is not considered
abnormally low;
(b) accept the bid, but require that the amount of the performance security
be increased at the expense of the bidder to a level sufficient to protect
the Employer against financial loss. The amount of the performance
security shall generally be not more than 20% of the contract price; or
(c) reject the bid if the evidence provided does not satisfactorily account for
the low bid price, and make a similar determination for the next ranked
bid, if required.
41. Employer’s 41.1 The Employer reserves the right to accept or reject any Bid, and to annul the
Right to Accept bidding process and reject all Bids at any time prior to contract award, without
Any Bid, and to thereby incurring any liability to Bidders. In case of annulment, all Bids
Reject Any or submitted and specifically, bid securities, shall be promptly returned to the
All Bids Bidders.
42. Notice of 42.1 If Standstill provisions apply as specified in the BDS, the standstill period
Intention for shall be defined in the BDS to specify the duration subsequent to
Award of notification of intention for award of contract (before making the actual
Contract contract award) within which any unsuccessful bidder can challenge the
proposed award.
F. Award of Contract
43. Award Criteria 43.1 The Employer shall award the Contract to the Bidder whose offer has been
determined successful in line with ITB 34 toITB 40 aboveto be the lowest
evaluated Bid and is substantially responsive to the Bidding Document,
provided further that the Bidder is determined to be eligible and qualified to
perform the Contract satisfactorily.
44. Notification of 44.1 Prior to the expiration of the period of bid validity and upon expiry of the
Award standstill period specified in ITB 42.1, or upon satisfactory resolution of a
complaint filed within standstill period, if applicable, the Employer shall
transmit the Notification of Award using the form included in Section 9
(Contract Forms) to the successful Bidder, in writing, that its Bid has been
accepted. At the same time, the Employer shall also notify all other Bidders
of the results of the bidding.
44.2 Unless standstill period applies, upon notification of award, unsuccessful
Bidders may request in writing to the Employer for a debriefing seeking
explanations on the grounds on which their Bids were not selected. The
Employer shall promptly respond in writing and/or in a debriefing meeting
to any unsuccessful Bidder who, after publication of contract award,
requests a debriefing.
44.3 Until a formal contract is prepared and executed, the notification of award
shall constitute a binding Contract.
44.4 Within 2 weeks of the award of contract or expiry of the standstill period,
where such period applies, or, if a complaint has been filed within the
standstill period, upon receipt of ADB’s confirmation of satisfactory
resolution of the complaint, the borrower shall publish in an English
language newspaper or widely known and freely accessible website the
results identifying the bid and lot or package numbers, as applicable and
the following information:
(a) name of each Bidder who submitted a bid;
(b) bid prices as read out at bid opening;
(c) name and evaluated prices of each bid that was evaluated;
(d) name of Bidders whose Bids were rejected and the reasons for their
rejection; and
(e) name of the winning Bidder, and the price it offered, as well as the
duration and summary scope of the contract awarded.
45. Signing of 45.1 Promptly after notification, the Employer shall send the successful Bidder the
Contract Contract Agreement.
45.2 Within 28 days of receipt of the Contract Agreement, the successful Bidder
shall sign, date, and return it to the Employer.
46. Performance 46.1 Within 28 days of the receipt of notification of award from the Employer, the
Security successful Bidder shall furnish the performance security in accordance with
the conditions of contract, subject to ITB 39.5 and ITB 40.4, using for that
purpose the Performance Security Form included in Section 9 (Contract
Forms), or another form acceptable to the Employer. If the institution issuing
the performance security is located outside the country of the employer, it shall
have a correspondent financial institution located in the country of the
employer to make it enforceable.
46.2 Failure of the successful Bidder to submit the abovementioned
Performance Security or sign the Contract shall constitute sufficient
grounds for the annulment of the award and forfeiture of the bid security or
execution of the Bid-Securing Declaration. In that event, the Employer
may award the Contract to the next lowest evaluated Bidder whose offer is
substantially responsive and is determined by the Employer to be qualified
to perform the Contract satisfactorily.
47. Bidding- 47.1 The procedures for dealing with Bidding-Related Complaints arising out of this
Related bidding process are specified in the BDS.
Complaints
A. General
ITB 7.1 For clarification purposes only, the Employer’s address is:
Attention:
Mr. Laxmi Narayan Mukhiya, Project Manager
Borang - Naubise (Ratmate) 220 kV Transmission Line Project
Project Management Directorate
City: Bhaktapur
Country: Nepal
Telephone: +977-01-6620421
E-mail: bn220kv@nea.org.np
ITB 7.4 A Pre-Bid meeting will take place. If a Pre-Bid meeting will take place, date, time
and place are as follows:
Date: 04th April, 2021
Time: 12:00 Hours (Nepal Standard Time)
Place: NEA Training Centre, Kharipati, Bhaktapur, Nepal
C. Preparation of Bids
ITB 11.2 (k) The Bidder shall submit with its Technical Bid the following additional documents:
None
ITB 11.3 (d) The Bidder shall submit with its Price Bid the following additional documents:
None
ITB 12.1 The units and rates in figures entered into the Price Schedules should be
typewritten or if written by hand, must be in print form. Price Schedules not
presented accordingly may be considered nonresponsive.
ITB 13.4 Alternative technical solutions shall be permitted for the following parts of the
plant and services: None
ITB 16.1 (b) The period following completion of plant and services in accordance with
provisions of the contract shall be 3 years
ITB 17.4 “Technical Proposal shall also include a Health and Safety COVID-19 Plan (HS-
C19 Plan), in accordance with the relevant government regulations and guidelines
on COVID-19 prevention and control the Employer, or in the absence thereof, to
international good practice guidelines the Employer, such as World Health
Organization. 2020. Considerations for public health and social measures in the
workplace in the context of COVID-19. Geneva. Available here:
https://www.who.int/publicationsdetail/considerations-for-public-health-and-social-
measures-in-the-workplace-in-thecontext-of-covid-19.
Any bid not accompanied by the HS-C19 Plan shall be rejected by the Employer
as nonresponsive. If a Bidder submits a HS-C19 Plan that does not provide
sufficient information in accordance to the required submission information listed
in the bidding document by the Employer, the Employer shall issue a clarification
to request for further information from the Bidder. The Bidder must submit the
requested information within 5 working days of receiving such a request. Failure
to provide a satisfactory response to the request for further information within the
prescribed period of receiving such a request shall cause the rejection of the Bid”.
ITB 18.1 Bidders shall quote for the entire plant and services on a single responsibility
basis.
IT 18.4(a)(i) The Incoterm for quoting plant to be supplied from abroad is: CIP - Project Site
Dhading District
“The formula for adjusting the prices and explanatory details are specified in the
Special Conditions of Contract (SCC) Clause 11.2 and Appendix 2 of Contract
Agreement. Bidder shall fill out the Tables of Adjustment Data in Section 4(
Bidding Forms)”
(a) The prices shall be quoted either in the currency of the Bidder's home
country, or in any fully convertible currency/(ies).
(d) Bidders may be required by the Employer to clarify their local and foreign
currency requirements, and to substantiate that the amounts included in the
Price Schedules are reasonable and responsive to ITB 18.1 in which case a
detailed breakdown of its foreign currency requirements shall be provided
by the Bidder
(e) During the performance of the contract, the foreign currency portions of the
outstanding balance of the Contract Price may be adjusted by agreement
between the Employer and the Contractor to reflect any changes in foreign
currency requirements for the contract. Any such adjustment shall be
effected by comparing the amounts quoted in the bid with the amounts
already used in the Facilities and the Contractor's future needs for imported
items.
ITB 21.1 The Bidder shall furnish a bid security in the amount of: USD 749,000.00 or an
equivalent amount in Nepalese Rupees (NRs.)
ITB 21.4 Subject to the succeeding sentences, any bid not accompanied by an irrevocable
and callable bid security shall be rejected by the Employer as nonresponsive. If a
Bidder submits a bid security that (i) deviates in form, amount, and/or period of
validity, or (ii) does not provide sufficient identification of the Bidder (including,
without limitation, failure to indicate the name of the Joint Venture or, where the
Joint Venture has not yet been constituted, the names of all future Joint Venture
Partners), the Employer shall request the Bidder to submit a compliant bid
security within 14 days of receiving such a request. Failure to provide a compliant
bid security within the prescribed period of receiving such a request shall cause
the rejection of the Bid.
ITB 22.1 In addition to the original Bid, the number of copies is: Two (2)
ITB 22.2 The written confirmation of authorization to sign on behalf of the Bidder shall
consist of
An organizational document, board resolution or its equivalent, or power of
attorney specifying the representative’s authority to sign the Bid on behalf of, and
to legally bind, the Bidder.
If the Joint Venture has not yet been formed, also include evidence from all
proposed Joint Venture partners of their intent to enter into a Joint Venture in the
event of a contract award in accordance with ITB 11.2.
ITB 22.2 The Bidder shall submit an acceptable authorization within 14 (fourteen) days.
ITB 23.1 Bidders shall not have the option of submitting their bids electronically.
ITB 23.1 (b) If Bidders shall have the option of submitting their bids electronically, the
electronic bidding submission procedures shall be: Not Applicable
Attention:
Mr. Laxmi Narayan Mukhiya, Project Manager
Borang - Naubise (Ratmate) 220 kV Transmission Line Project
Project Management Directorate
City: Bhaktapur
Country: Nepal
Telephone:+977-01-6620421
E-mail: bn220kv@nea.org.np
ITB 27.1 The bid opening of Technical Bids shall take place at
City: Bhaktapur
Country: Nepal
ITB 27.1 Electronic bid opening procedure shall be as follows: Not Applicable
ITB 27.5 The Letter of Technical Bid shall be initialed by 3 (Three) representatives of the
Employer attending Technical Bid opening.
ITB 27.10 The Letter of Price Bid and Price Schedulesshall be initialed by 3 (Three)
representatives of the Employer attending the Price Bid opening.
ITB 35.2 The qualifications of other firms such as the Bidder’s subsidiaries, parent entities,
affiliates, Subcontractors shall not be permitted.
ITB 37.1 The currency that shall be used for bid evaluation and comparison purposes to
convert all bid prices expressed in various currencies into a single currency is:
Nepalese Rupees
The source of the selling exchange rate shall be: Nepal Rastra Bank (Central
Bank of Nepal)
The date for the selling exchange rate shall be: The Date of Technical Bid
Opening
ITB 42.1 Standstill provisions shall apply. The duration of standstill period will be 7
(seven) days from the date of notice of intention for award of contract.
The Employer shall, at the start of the standstill period, notify in writing each
Bidder that submitted a bid, of its intention to award a contract to the successful
Bidder at the end of standstill period. The notification using the form included in
Section 9 (Contract Forms) shall include the following information:
For the attention: Managing Director, NEA through the Project Manager
Title/position: Managing Director
Employer: Nepal Electricity Authority
Email address: info@nea.org.np
Mobile number: +977-01-4153051
Table of Criteria
1. Evaluation
Evaluation of the Bidder’s Technical Proposal will include an assessment of the Bidder’s
technical capacity to mobilize key equipment and personnel for the contract consistent with
its proposal regarding work methods, scheduling, and material sourcing in sufficient detail
and fully in accordance with the requirements stipulated in Section 6 (Employer’s
Requirements).
The Employer will take into account the quality of the Health and Safety COVID -19 Plan (‘the
Plan’) attached to the Technical Proposal in its evaluation of the Adequacy of the Technical
Proposal.
The bidder should demonstrate in the Plan the health and safety measures they will put in
place on site in relation to COVID-19 prevention and controls, including but not limited to,
PPE requirements, site set up, training, induction and mobilization of new personnel,
equipment and plants cleaning and other hazard management measures while undertaking
site work activities, site visitor’s health and safety protocols, as well as the approach to the
monitoring and reporting of the Plan. The Plan should be fit for purpose for the particular
construction works of this contract and be aligned with any relevant government regulations
and guidelines on COVID-19 prevention and controls, as well as workplace safety
requirements, or in the absence thereof, to international good practice guidelines [ the
Employer to insert, such as World Health Organization. 2020. Considerations for public
health and social measures in the workplace in the context of
• Note: Evaluation guidance – the Employer should evaluate the adequacy of technical
responsiveness of the COVID-19 Health and Safety Management Plan in accordance with
their country specific requirement and local regulations on COVID-19 H&S prevention and
controls, and/or international good practices that are listed as the basis of evaluation in the
bidding document. EA should seek support from the Engineer/PMC/H&S consultant in
reviewing the plan if they do not have in-house expertise.
Technical alternatives, if permitted under ITB 13.4, will be evaluated as follows: Not
Applicable
In addition to the criteria listed in ITB 39.2 I (a)–(f), other relevant factors are as follows:
Adjustments in price that result from the procedures outlined below shall be added, for
purposes of comparative evaluation only, to arrive at an “Evaluated Bid Price.” Bid prices
quoted by Bidders shall remain unaltered.
Pursuant to ITB 33.3, the cost of all quantifiable nonmaterial nonconformities or omissions
from the contractual and commercial conditions shall be evaluated. The Employer will make
its own assessment of the cost of any nonmaterial nonconformities and omissions for the
purpose of ensuring fair comparison of Bids.
The O&M cost factors for calculating the life cycle cost are as follows:
Loss capitalization: When evaluating the individual bid received from various Bidders, the loss of
power/autotransformer and station transformer shall be capitalized at the rate specified below:
a. Transformer loss
The Bidder shall furnish guaranteed no load and full load loss value a rated full load
capacity of the transformers along with the bid for all rating of power and station
transformers (in the "Form FUNC." attached in Section - 4 "Bidding Forms").Failure to
submit or furnish the Loss figures may result in rejection of the bid.
[None]
(a) The preference margin shall not be applied to the whole facility but only to the eligible
domestically produced Plant and Equipment within the contract.
(b) Plant and Mandatory Spare Parts supplied from abroad shall be quoted CIP (Section 4
[Bidding Forms], Schedule No. 1). Plant and Mandatory Spare Parts supplied from
within the Employer’s country shall be quoted EXW (ex works, ex factory, ex
warehouse, ex showroom, or off-the-shelf, as applicable) free of sales and similar taxes
(Section 4 [Bidding Forms], Schedule No. 2).
(c) All other cost components for services and works such as costs for design, local
handling, transportation, storage, installation, and commissioning shall be quoted
separately. See Section 4 (Bidding Forms), Schedule No. 3 - Design Services and
Schedule No. 4 - Installation and Other Services.
(d) In the comparison of Bids, only the CIP price component of each Bid for the Plant and
Equipment offered from outside the Employerʼs country shall be increased by 15%.
(e) No domestic preference shall be applied to any of the services or works included in the
contract.
(f) Bidders shall not be permitted or required to modify the mix of local and foreign Plant
and Equipment after bid opening.
[Not Applicable]
2. Qualification
2.1 Eligibility
Joint Venture
Single Submission
Requirement All Partners Each One
Entity Requirements
Combined Partner Partner
2.1.1 Nationality
Nationality in accordance with Must meet Must meet Must meet Not Forms
requirement requirement requirement applicable
ITB 4.2. ELI - 1; ELI - 2
with attachments
Nonperformance of a contract Must meet Must meet Must meet Not Form CON-1
requirement requirement requirement applicable
did not occur as a result of
contractor default since 1st
January, 2015.
Not under suspension based on Must meet Must meet Must meet Not Letter of Technical
requirement requirement requirement applicable Bid
execution of a Bid Securing
Declaration pursuant to ITB 4.6.
Submission of audited financial Must meet Not Must meet Not Form FIN - 1 with
requirement applicable requirement applicable attachments
statements or, if not required by
the law of the Bidder’s country,
other financial statements
acceptable to the Employer, for
the last three (3) years to
demonstrate the current
soundness of the Bidder’s
financial position. As a
minimum, the Bidder’s net worth
for the last year calculated as
the difference between total
assets and total liabilities should
be positive.
Minimum average annual Must meet Must meet Must meet Must meet Form FIN - 2
requirement requirement 40% of the
turnover of US$ 26.20 Million 25% of the
requirement requirement
calculated as total certified
payments received for contracts
in progress or completed, within
the last three (3) years.
Participation as a Must meet must meet Must have not Form EXP – 1
contractor, Joint requirement
requirement as applicable
completed or
Venture Partner or follows: substantially
Subcontractor, in at
Either one partner completed one
least 2 (two)
must meet (1) Contract of
Contracts that have
requirement Design,
been successfully
or substantially OR Supply,
completed within Any two partners Installation,
the last 10 (Ten) and
must each
years and that are Commissioning
demonstrate one
similar to the of 132 kV or
proposed Contract, (1) successfully or higher voltage
where the value of substantially overhead
the Bidder’s completed Contract Transmission
participation under of Design, Supply, Line and/or
each Contract 132 kV or
Installation and
exceeds US$ 30.00 higher voltage
Million. The Commissioning of Substations in
similarity of the 220 kV or higher last 10 (ten)
Bidder’s voltage overhead Years with
participation shall Transmission Line contract value
be based on not less than
and/or 220 kV or
Design, Supply, US$ 7.50
Installation and higher voltage
Million.
Commissioning of Substations and/or
220 kV or higher 220 KV TL and
Voltage substation combine
Transmission Line
contract having
and/or 220 kV or
higher voltage Contract value not
Substations and or less than US $
220 kV TL and 30.00 Million.
substation
combined contract.
Out of the above
Out of the above two Contracts,
two one should have
Contracts, one been executed
should have been outside the
executed outside
Bidder’s or JV
the Bidder’s home
country. partner's home
country
Table A
Criteria Compliance Requirements Documents
Submission
Requirement Single Entity Joint Venture
Requirements
For the above or other contracts executed Must meet Must meet Form EXP – 2
during the period stipulated in 2.4.1, a requirement requirement
minimum experience in the following key
activities:
1. One Contract of Design,
Supply, Installation, Testing and
Commissioning of at least 20 Km. of
220 kV or higher voltage overhead
transmission Line within last 10 years.
2. One Contract of Design , Supply ,
Installation, Testing and Commissioning
of a new 132 kV or higher voltage Air
Insulated Substation within last 10
years.
3. One Contract of Design, Supply ,
Installation, Testing and Commissioning
of a new 220 kV or higher voltage Gas
Insulated Switchgear (GIS) Substation
within last 10 years.
4. One contract involving Installation and
Commissioning of Power Transformer of
220 kV or higher voltage with minimum
capacity of 160 MVA within last 10
years .
NOTE: To substantiate the above qualification, the Bidder must submit certificate (notarized) from
clients (end-user certificates) for all number of projects specified as above clearly indicating
the Contract amount, project size, scope of work. The bidder is required to submit the
notarized translation of the copy, if the document submitted is in language other than bidding
language.
2.5 Subcontractors
Subcontractors or Manufacturers for the following major items of plant and services must meet the
following minimum qualification criteria, herein listed for a Subcontractor for that item. Failure to
comply with this requirement will result in rejection of the Subcontractor but not the Bidder.
Documents
Item Description
Minimum Criteria to be met Submission
No. of Item
Requirements
1 Power i) Must have manufacturing experience of at least 7(Seven) Form EXP-3
Transformer years.
(220 kV, 132
ii) Must have designed, manufactured and supplied power 1.Bidder(s) must
kV and 33 kV transformer of capacity 200 MVA or above, 220 kV or higher submit all the
voltage class) Voltage Class, at least twice the bid quantity as a main
supplier over last five (5) years period ending on the date
necessary documents
ofbid submission. Out of supplied quantity, a minimum of required to prove the
half the bid quantity shall have been in operation above specified legal
satisfactorily to the end users for at least Two (2) Years as status, Valid ISO
on the date of bid opening.
Certificate,
iii) Must hold a valid ISO9001:2000 (including design in experience
scope of registration) certifications. eligibility
requirements
iv) Must have successfully carried out the complete type (substantiated by end
test including Dynamic Short Circuit (DSC) test as per users certificate) and
IEC over last 10 (ten) years period as on the originally
scheduled date of bid opening in Short-Circuit Testing type test report.
Liaison (STL) - Accredited Laboratory OR must have
successfully completed type test including DSC test 2.For Equipment
conducted as per IEC over last 10 (ten) years period as proposed
on the originally scheduled date of Bid opening in any from the preferred
internationally accredited Laboratory in the presence of
STL representative and certified the same by STL list as per
representative as indicated below : Annexure …., the
bidder
- Type Test on 220 kV voltage class, three need not submit the
phase 200 MVA (or single phase 6 X 33.33
MVA) and DSC test on similar type of 220 kV qualification
Voltage level Transformer. document,
- Type test on 132 kV voltage class, three phase except the
30 MVA and DSC Test on similar type of 132 Authorization
kV Voltage level Transformer.
certificate and type
- Type test on 33 kV voltage class, three phase test
8 MVAand DSC Test on similar type of 33
certificate. For
kV Voltage level Transformer.
equipment
However, IF from manufacturer
the Bidder/Manufacturer has not conducted the
complete type tests including DSC in Short-Circuit
other than
Testing Liaison (STL) - Accredited Laboratory OR the preferred list, the
has not conducted complete type test including bidder
DSC test in the presence of STL representative in must submit all
an Internationally accredited laboratory as
mentioned above within last 10 (ten) years
qualification
documents for the
THEN manufacturer.
the bidder has to submit an undertaking letter
along with the bid to carry out the complete type
test on the above mentioned ratings of
transformers including DSC in Short-Circuit
Testing Liaison (STL)-Accredited Laboratory OR to
carry out the complete type test along with the
DSC in the presence of STL representative and
NEA representative in any international accredited
laboratory without any extra cost to the employer
(iii) Must have successfully carried out the complete type test
as per IEC in Short-Circuit Testing Liaison (STL) -
Accredited Laboratory on 220 kV voltage class GIS
Switchgears (Circuit Breaker, Disconnectors, Grounding
Switches, Instrument Transformers, SF6/Air & Oil Bushing
etc.;).
(iii) Must have successfully carried out the complete type test
as per IEC in Short-Circuit Testing Liaison (STL) -
Accredited Laboratory on 132 kV voltage class GIS
Switchgears (Circuit Breaker, Disconnectors, Grounding
Switches, Instrument Transformers, SF6/Air & Oil Bushing
etc.;).
(iv) Must submit the type test report (separately for 132 kV and 33
kV) carried out in
Internationally accredited independent testing laboratory
during last 7 (seven) years period.
(iv) Must submit the type test report (separately for 132 kV and 33
kV) carried out in
Internationally accredited independent testing laboratory
during last 7 (seven) years period.
(iv) Must submit the type test report (Separately for 132 kV and
33 kV) carried out in
Internationally accredited independent testing laboratory
during last 7 (seven) years period.
(iv) Must submit the type test report of 90kN, 120kN, 160kN and
210 kN or above electro-mechanical strength insulators
carried out in Internationally accredited independent testing
laboratory during last 7 (seven) years period.
In the case of a Bidder who offers to supply and install major items of plant under the contract, which
the Bidder did not manufacture or otherwise produce, the Bidder shall provide the Manufacturer’s
authorization, using the form provided in Section 4 (Bidding Forms), showing that the Bidder has been
duly authorized by the Manufacturer or producer of the related plant and equipment or component to
supply and install that item in the Employer’s country. Failure to submit the Manufacturer’s
authorization at the first instance is considered a minor, nonmaterial omission and shall be subject to
clarification. However, failure to submit the omitted authorization within Fourteen (14) days after
receiving the Employer’s notice may lead to rejection of the Subcontractor or Manufacturer of the item
under evaluation in accordance with ITB 35.4
If the bidder submits the type test report of higher rated equipment, the bidder must provide the
commitment that the type test will be performed for the offered rating without any extra cost to
employer.
NOTE: To substantiate the above qualification, the Bidder must submit certificate (notarized) from
clients(end-user certificates for all number of projects. The bidder is required to submit the
notarized translation of the copy, if the document submitted is in language other than bidding
language.
Table of Forms
Letter of TechnicalBid
-- Note –
The Bidder must accomplish the Letter of Technical Bid on its letterhead clearly showing the Bidder’s complete name
and address.
Date: ..................................................
OCB No.: ..................................................
Invitation for Bid No.: ..................................................
(a) We have examined and have no reservations to the Bidding Documents, including Addenda
issued in accordance with Instructions to Bidders (ITB) 8.
(b) We offer to design, manufacture, test, deliver, install, pre-commission, and commission in
conformity with the Bidding Document the following Plant and Services:[insert narrative]
(c) Our Bid consisting of the Technical Bid and the Price Bid shall be valid for a period of [insert bid
validity period as specified in ITB 20.1 of the BDS] days from the date fixed for the bid submission
deadline in accordance with the Bidding Documents, and it shall remain binding upon us and
may be accepted at any time before the expiration of that period.
(d) We, including any Subcontractors or Manufacturers for any part of the Contract, have or will
have nationalities from eligible countries, in accordance with ITB4.2.
(e) We, including any Subcontractors or Suppliers for any part of the Contract, do not have any
conflict of interest in accordance with ITB 4.3.
(f) We are not participating, as a Bidder, either individually or as partner in a Joint Venture, in more
than one bid in this bidding process in accordance with ITB 4.3(e), other than alternative offers
submitted in accordance with ITB 13.
(g) Our firm, Joint Venture partners, associates, parent company, its affiliates or subsidiaries,
including any Subcontractors or Suppliers for any part of the contract, are not subject to, or not
controlled by any entity or individual that is subject to, a temporary suspension or a debarment
imposed by the Asian Development Bank or a debarment imposed by the Asian Development
Bank in accordance with the Agreement for Mutual Enforcement of Debarment Decisions
between the Asian Development Bank and other development banks.1
1These institutions include African Development Bank, European Bank for Reconstruction and Development (EBRD), Inter-American
Development Bank (IADB), and the World Bank Group. According to paragraph 9 of the Agreement, other international financial
institutions may join upon the consent of all Participating Institutions and signature of a Letter of Adherence by the international
financial institution substantially in the form provided (Annex B to the Agreement). Upon adherence, such international financial
(h) Our firm, Joint Venture partners, associates, parent company, affiliates or subsidiaries,
including any Subcontractors or Suppliers for any part of the Contract, are not, or have never
been, temporarily suspended, debarred, declared ineligible, or blacklisted by the Employer’s
country, any international organization, and other donor agency.
(i) Our firm’s, Joint Venture partners, associates, parent company’s affiliates or subsidiaries,
including any Subcontractors or Suppliers key officers and directors have not been [charged or
convicted] of any criminal offense (including felonies and misdemeanors) or infractions and/or
violations of ordinance which carry the penalty of imprisonment.
(j) We understand that it is our obligation to notify ADB should our firm, Joint Venture partners,
associates, parent company, affiliates or subsidiaries, including any Subcontractors or
Suppliers, be temporarily suspended, debarred or become ineligible to work with ADB or any
other MDBs, the Employer’s country, international organizations, and other donor agencies, or
any of our key officers and directors be charged or convicted of any criminal offense or
infractions/violations of ordinance which carry the penalty of imprisonment.
(k) Our firm, Joint Venture partners, associates, parent company, affiliates or subsidiaries,
including any Subcontractors or Suppliers, are not from a country which is prohibited to export
goods to or receive any payments from the Employer’s country by an act of compliance with a
decision of the United Nations Security Council taken under Chapter VII of the Charter of the
United Nations.
(l) [We are not a government-owned enterprise] / [We are a government-owned enterprise but
meet the requirements of ITB4.5].2
(m) We have not been suspended nor declared ineligible by the Employer based on execution of a
Bid-Securing Declaration in accordance with ITB 4.6.
institution shall become a Participating Institution for purposes of the Agreement. Bidders are advised to check www.adb.org/integrity
for updates.
2
Use one of the two options as appropriate.
(n) We agree to permit ADB or its representative to inspect our accounts and records and other
documents relating to the bid submission and to have them audited by auditors appointed by
ADB.
(o) If our Bid is accepted, we commit to mobilizing key equipment and personnel in accordance
with the requirements set forth in Section 6 (Employer’s Requirements) and our technical
proposal, or as otherwise agreed with the Employer.
(p) We understand that any misrepresentation that knowingly or recklessly misleads, or attempts to
mislead may lead to the automatic rejection of the Bid or cancellation of the contract, if
awarded, and may result in remedial actions, in accordance with ADB’s Anticorruption Policy
(1998, as amended to date) and Integrity Principles and Guidelines (2015, as amended from
time to time).
Name .................................................................................................................................................
In the capacity of ...............................................................................................................................
Signed ...............................................................................................................................................
Duly authorized to sign the Bid for and on behalf of .........................................................................
Date ....................................................................................................................................................
Date: ..................................................
OCB No.: ..................................................
Invitation for Bid No.: ..................................................
(a) We have examined and have no reservations to the Bidding Document, including Addenda
issued in accordance with Instructions to Bidders (ITB) 8.
(b) We offer to design, manufacture, test, deliver, install, pre-commission, and commission in
conformity with the Bidding Document the following Plant and Services:[insert narrative]
(c) The total price of our Bid, excluding any discounts offered in item (d) below is the sum of
[amount of foreign currency in words], [amount in figures], and [amount of local currency in words], [amount
in figures]
The total bid price from the Grand Summary (Schedule No. 5) should be entered by the Bidder inside this
(d) Tbox.Absence of the total bid price in the Letter of Price Bid may result in the rejection of the bid.
h
e discounts offered and the methodology for their application are as follows: [insert discounts and
methodology for their application if any]
(e) Our Bid shall be valid for a period of [insert bid validity period as specified in ITB 20.1 of the BDS]days
from the date fixed for the submission deadline in accordance with the Bidding Documents, and
it shall remain binding upon us and may be accepted at any time before the expiration of that
period.
(f) If our Bid is accepted, we commit to obtain a performance security in accordance with the
Bidding Document.
(g) We have paid, or will pay the following commissions, gratuities, or fees with respect to the
bidding process or execution of the Contract: 3
(h) We understand that this bid, together with your written acceptance thereof included in your
notification of award, shall constitute a binding contract between us, until a formal contract is
prepared and executed.
(i) We understand that you are not bound to accept the lowest evaluated bid or any other bid that
you may receive.
(j) We agree to permit ADB or its representative to inspect our accounts and records and other
documents relating to the bid submission and to have them audited by auditors appointed by
ADB.
Name .................................................................................................................................................
In the capacity of ...............................................................................................................................
Signed ...............................................................................................................................................
Duly authorized to sign the Bid for and on behalf of .........................................................................
Date ....................................................................................................................................................
3
If none has been paid or is to be paid, indicate “None.”
Price Schedules
(Refer Volume III)
PREAMBLE
General
1. The Price Schedules are divided into separate Schedules as follows:
Schedule No. 1: Plant and Mandatory Spare Parts Supplied from Abroad
Schedule No. 2: Plant and Mandatory Spare Parts Supplied from within the Employer’s Country
Schedule No. 3: Design Services
Schedule No. 4: Installation and Other Services
Schedule No. 5: Grand Summary
Schedule No. 6: Recommended Spare Parts
2. The Schedules do not generally give a full description of the plant to be supplied and the services
to be performed under each item. Bidders shall be deemed to have read the Employer’s
Requirements and other sections of the Bidding Document and reviewed the Drawings to
ascertain the full scope of the requirements included in each item prior to filling in the rates and
prices. The entered rates and prices shall be deemed to cover the full scope as aforesaid,
including overheads and profit.
3. If Bidders are unclear or uncertain as to the scope of any item, they shall seek clarification in
accordance with ITB 7 prior to submitting their bid.
Pricing
4. The units and rates in figures entered into the Price Schedules should be typewritten or if written
by hand, must be in print form. Price Schedules not presented accordingly may be considered
nonresponsive. Any alterations necessary due to errors, etc., shall be initialed by the Bidder.
As specified in the Bid Data Sheet and Special Conditions of Contract, prices shall be fixed and
firm for the duration of the Contract, or prices shall be subject to adjustment in accordance with
the corresponding Appendix (Price Adjustment) to the Contract Agreement.
5. Bid prices shall be quoted in the manner indicated and in the currencies specified in the
Instructions to Bidders in the Bidding Document.
For each item, Bidders shall complete each appropriate column in the respective Schedules,
giving the price breakdown as indicated in the Schedules.
Prices given in the Schedules against each item shall be for the scope covered by that item as
detailed in Section 6 (Employer’s Requirements) or elsewhere in the Bidding Document.
6. Payments will be made to the Contractor in the currency or currencies indicated under each
respective item.
7. When requested by the Employer for the purposes of making payments or part payments, valuing
variations or evaluating claims, or for such other purposes as the Employer may reasonably
require, the Contractor shall provide the Employer with a breakdown of any composite or lump
sum items included in the Schedules.
8. The bid price is inclusive of all Environmental, Health and Safety management and compliance
cost.
Schedule No. 1:Plant and Mandatory Spare Parts Supplied from Abroad
Taxes and
Unit Pricea Total Pricea Duties
Country
Item Description Quantity
of Origin Foreign Foreign Local
CIP
Currency Currency Currency
1 2 3 4 5 6 7=4x6 8
Name of Bidder
Signature of Bidder
a
Specify currencies in accordance with ITB 19.1 of the BDS.Create additional columns for foreign currencies if so
required.
Schedule No. 2: Plant and Mandatory Spare Parts Supplied from Within the Employer’s Country
Unit Pricea
1 2 3 4 5 6=3x5 7
Name of Bidder
Signature of Bidder
a
Specify currency in accordance with ITB 19.1 of the BDS.
b
Column 5 EXWPrice shall include all customs duties and sales and other taxes already paid or payable on the components and
raw materials used in the manufacture or assembly of the item or the customs duties and sales and other taxes already paid
on previously imported items.
1 2 3 4 5 6=3x4 7=3x5
Name of Bidder
Signature of Bidder
a
Specify currency in accordance with ITB19.1 of the BDS.
1 2 3 4 5 6=3x4 7=3x5
1 .....
2 .....
3 .....
4 .....
5 .....
etc .....
Name of Bidder
Signature of Bidder
a
Specify currency in accordance with ITB19.1 of the BDS.
b
As described in SCC 22.2.7.
Total Pricea
Schedule
Title
No.
Foreign Local
3 Design Services
Name of Bidder
Signature of Bidder
a
Specify currency in accordance with ITB19.1 of the BDS. Create additional columns forforeign currencies if so required.
b
Taxes and/or duties from Schedules 1 and 2 may be added to the contract price in accordance with GCC 14 (Taxes and
Duties) but excluded from bid evaluation in accordance with ITB 39.2.
EXW CIP
Item Description Quantity Local Imported Local Foreign
Parts Parts Currency Currency
Portion Portion
Local Foreign
Currency Currency
1 2 3 4 5 6=3x4 7=3x5
TOTAL
Name of Bidder
Signature of Bidder
a
Specify currency in accordance withITB 19.1 of the BDS.
Bidder’s Bidder’s
Index Base Value
Index Description Source of Index Local Currency Proposed
Code and Date
Amount Weighting
Total 1.00
Bidder’s Bidder’s
Index Source of Base Value and Equivalent in
Index Code Currency in Proposed
Description Index Date FC1
Type/Amount Weighting
Total 1.00
- Note -
The base date shall be the date 28 days prior to the deadline for submission of the bid.
Tables of Adjustment Data shall only be included if prices are to be quoted as adjustable prices in accordance with ITB
18.6.
Bid Security
Bank Guarantee
We have been informed that [name of the Bidder] (hereinafter called "the Bidder") has submitted to you
its bid dated [insert date] (hereinafter called "the Bid") for the execution of [name of contract] under
Invitation for Bids No. [insert IFB number] (“the IFB”).
Furthermore, we understand that, according to your conditions, bids must be supported by a bid
guarantee.
At the request of the Bidder, we [name of Bank]hereby irrevocably undertake to pay you any sum or
sums not exceeding in total an amount of [amount in words][amount in figures]upon receipt by us of your
first demand in writing accompanied by a written statement stating that the Bidder is in breach of its
obligation(s) under the bid conditions, because the Bidder:
(a) has withdrawn its Bid during the period of bid validity specified by the Bidder in the Letters of
Technical and Price Bid; or
(b) does not accept the correction of errors in accordance with the Instructions to Bidders (hereinafter
“the ITB”); or
(c) having been notified of the acceptance of its Bid by the Employer during the period of bid validity,
(i) fails or refuses to execute the Contract Agreement, or (ii) fails or refuses to furnish the
Performance Security, in accordance with the ITB.
This guarantee will expire (a) if the Bidder is the successful Bidder, upon our receipt of copies of the
Contract Agreement signed by the Bidder and the Performance Security issued to you upon the
instruction of the Bidder; or (b) if the Bidder is not the successful Bidder, upon the earlier of (i) our
receipt of a copy of your notification to the Bidder of the name of the successful Bidder, or (ii) 28 days
after the expiration of the Bidder’s bid.
Consequently, any demand for payment under this guarantee must be received by us at the office on
or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 758.
4
All italicized text is for use in preparing this form and shall be deleted from the final document.
Technical Proposal
Site Organization
Method Statement
Mobilization Schedule
Construction Schedule
Plant
Personnel
Equipment
Manufacturer’s Authorization
Time Schedule
Site Organization
Method Statement
Mobilization Schedule
Construction Schedule
Plant
Personnel
Form PER – 1: Proposed Personnel
Bidders should provide the details of proposed personnel and their experience record in the relevant
Information Forms below for each of the candidate.
1. Title of position
Name
2. Title of position
Name
3. Title of position
Name
4. Title of position
Name
Name
-- Note --
All titles of positions will be aslisted in Section 6 (Employer’s Requirements).
The Bidder shall provide all the information requested below. Use one form for each position.
Position
Professional qualifications
Address of employer
Fax E-mail
Summarize professional experience in reverse chronological order. Indicate particular technical and
managerial experience relevant to the project.
Equipment
Form EQU: Equipment
The Bidder shall provide adequate information and details to demonstrate clearly that it has the capability
to meet the equipment requirements indicated in Section 6 (Employer’s Requirements), using the Forms
below. A separate Form shall be prepared for each item of equipment listed, or for alternative equipment
proposed by the Bidder.
Item of Equipment
Address of owner
Fax Telex
The following Subcontractors and/or Manufacturers are proposed for carrying out the item of the
facilities indicated based on Criterion 2.5 of Section 3 (Evaluation and Qualification Criteria). Bidders
are free to propose more than one for each item.
Manufacturer's Authorization
Date: [insert date (as day, month and year) of bid submission]
WHEREAS
We [insert complete name of the manufacturer or manufacturer’s authorized agent], who are official manufacturers
or agent authorized by the Manufacturer of [insert type of goods manufactured], having factories at [insert full
address of manufacturer’s factories], do hereby authorize [insert complete name of the Bidder] to submit a bid the
purpose of which is to provide the following goods, manufactured by us [insert name and/or brief description
of the goods], and to subsequently negotiate and sign the Contract.
We hereby extend our full guarantee and warranty in accordance with Clause 27 of the General
Conditions of Contract, with respect to the goods offered by the above firm.
Duly authorized to sign this Authorization on behalf of [insert complete name of the manufacturer]
-- Note --
The bidder shall require the manufacturer to fill out this form in accordance with the instructions indicated. This letter
of authorization should be signed by a person with the proper authority to sign documents that are binding on the
manufacturer. The bidder shall include it in its bid, if so indicated in the BDS.
____________________________________________________________________________________
[together with successors and assigns].
We have been informed that [name of Contractor] (hereinafter called the “Contractor”) is submitting an offer for
the above-referenced Contract in response to your invitation, and that the conditions of your invitation require
its offer to be supported by an affiliate company guarantee.
In consideration of you, the Employer, awarding the Contract to the Contractor, we [ name of affiliated company]
irrevocably and unconditionally guarantee to you, as a primary obligation, that (i) throughout the duration of
the Contract, we will make available to the Contractor our financial, technical capacity, expertise and
resources required for the Contractor’s satisfactory performance of the Contract; and (ii) we are fully
committed, along with the Contractor, to ensuring a satisfactory performance of the Contract.
If the Contractor fails to so perform its obligations and liabilities and comply with the Contract, we will
indemnify the Employer against and from all damages, losses and expenses (including legal fees and
expenses) which arise from any such failure for which the Contractor is liable to the Employer under the
Contract.
This guarantee shall come into full force and effect when the Contract comes into full force and effect. If the
Contract does not come into full force and effect within a year of the date of this guarantee, or if you
demonstrate that you do not intend to enter into the Contract with the Contractor, this guarantee shall be void
and ineffective. This guarantee shall continue in full force and effect until all the Contractor’s obligations and
liabilities under the Contract have been discharged, when this guarantee shall expire and shall be returned to
us, and our liability hereunder shall be discharged absolutely.
This guarantee shall apply and be supplemental to the Contract as amended or varied by the Employer and
the Contractor from time to time. We hereby authorize them to agree on any such amendment or variation,
the due performance of which and compliance with which by the Contractor are likewise guaranteed
hereunder. Our obligations and liabilities under this guarantee shall not be discharged by any allowance of
time or other indulgence whatsoever by the Employer to the Contractor, or by any variation or suspension of
the works to be executed under the Contract, or by any amendments to the Contract or to the constitution of
the Contractor or the Employer, or by any other matters, whether with or without our knowledge or consent.
This guarantee shall be governed by the law of the same country (or other jurisdiction) that governs the
Contract and any dispute under this guarantee shall be finally settled under the [ Rules or Arbitration provided in
the Contract]. We confirm that the benefit of this guarantee may be assigned subject only to the provisions for
assignment of the Contract.
Date:……………………………………………
-- Note --
If permitted in accordance with ITB 35.2 of the BDS, the Bidder shall fill out the Affiliate Company Guarantee Form for each
subsidiary, parent entity, affiliate, subcontractor, etc. that the Bidder submits for consideration of the Employer in determining
its qualifications.
Time Schedule
To be used by Bidder when alternative Time for Completion is invited in ITB 13.2.
The Bidder shall copy on the left column of the table below, the identification of each functional guarantee
required in the Specification and stated by the Employer in EQC 1.3.4 of Section 3, Evaluation and
Qualification Criteria, and on the right column, provide the corresponding value for each functional guarantee
of the proposed plant and equipment.
Bidder’s Qualification
To establish its qualifications to perform the contract in accordance with Section 3 (Evaluation and
Qualification Criteria) the Bidder shall provide the following information requested in the corresponding
Information Sheets.
Bidder’s Information
Bidder’s country of
constitution
Bidder’s year of
constitution
Bidder’s authorized
representative
(name, address, telephone
number(s), fax number(s), e-
mail address)
1. In case of a single entity, articles of incorporation or constitution of the legal entity named above, in accordance with ITB
4.1 and ITB 4.2
2. Authorization to represent the firm or Joint Venture named above, in accordance with ITB 22.2
3. In case of a Joint Venture, a letter of intent to form a Joint Venture or Joint Venture agreement, in accordance with ITB 4.1
4. In case of a government-owned enterprise, any additional documents not covered under 1 above required to comply with
ITB 4.5
Each member of theJoint Venture must fill out this formseparately. Subcontractor must fill out this form.
Subcontractors are those listed in Technical Proposal – Proposed Subcontractors and/or Manufacturers for
Major Items of Plant and Services.
Each Bidder must fill out this formin accordance with Criteria 2.2.1 and 2.2.3 of Section 3 (Evaluation and
Qualification Criteria) to describe any history of nonperforming contracts andpending litigation or arbitration
formally commenced against it.
In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the
Joint Venture Partner’s name:
- Note -
Table 2 of this form shall only be included if Criterion 2.2.3 of Section 3 (Evaluation and Qualification Criteria) is applicable.
In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the
Joint Venture Partner’s name:
NetWorth = TA-TL
Total Revenues
Attached are copies of financial statements (balance sheets including all related notes, and income statements) for the last
_____ years, as indicated above, complying with the following conditions.
Unless otherwise required by Section 3 of the Bidding Documents, all such documents reflect the financial situation of
the legal entity or entities comprising the Bidder and not the Bidder’s parent companies, subsidiaries or affiliates.
Historical financial statements must be audited by a certified accountant.
Historical financial statements must be complete, including all notes to the financial statements.
Historical financial statements must correspond to accounting periods already completed and audited (no statements for
partial periods shall be requested or accepted).
The information supplied should be the Annual Turnover of the Bidder or each member of a Joint Venture
in terms of the amounts billed to clients for each year for work in progress or completed, converted to US
dollars at the rate of exchange at the end of the period reported.
In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the
Joint Venture Partner’s name:
Bidders must demonstrate sufficient financial resources, usually comprising of Working Capital supplemented
by credit line statements or overdraft facilities and others to meet the Bidder’s financial requirements for
In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the Joint
Venture Partner’s name:
Financial Resources
No. Source of financing Amount ($ equivalent)
2 Credit Linea
Bidders (or each Joint Venture partner) should provide information on their current commitments on all
contracts that have been awarded, or for which a letter of intent or acceptance has been received, or for
contracts approaching completion, but for which an unqualified, full completion certificate has yet to be
issued.
In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the Joint
Venture Partner’s name:
a Remaining outstanding contract values to be calculated from 28 days prior to the bid submission deadline ($
equivalent based on the foreign exchange rate as of the same date).
b Remaining contract period to be calculated from 28 days prior to bid submission deadline.
Form FIN - 5: Self-Assessment Tool for Bidder’s Compliance to Financial Resources (Criterion 2.3.3
of Section 3)
This form requires the same information submitted in Forms FIN-3 and FIN-4. All conditions of
“Available Financial Resources Net of CCC ≥ Requirement for the Subject Contract” must be
satisfied to qualify.
_________ ...........
(Name of Bidder)
____________ ...........
(Name of Partner)
Each Partner:
_____________ ...........
(Name of Partner 1)
_____________ ...........
(Name of Partner 2)
_____________ ...........
(Name of Partner 3)
- Note -
Form FIN – 5 is made available for use by the bidder as a self-assessment tool, and by the Employer as an evaluation work
sheet, to determine compliance with the financial resources requirement as stated in 2.3.3. Failure to submit Form FIN - 5 by
the Bidder shall not lead to bid rejection.
The exchange rate to be used to calculate the value of the contract for conversion to a specific currency
shall be the selling rate of the Borrower’s national bank on the date of the contract.
Employer’s name
Address
Telephone number
Fax number
E-mail
Description of the Similarity in Accordance with Criterion 2.4.1 of Section 3 (Evaluation and
Qualification Criteria)
If complied by Specialist Subcontractor, each Specialist Subcontractor must fill out this form and provide
the Specialist Subcontractor’s name:
Employer’s name
Address
Telephone number
Fax number
E-mail
Description of the Key Activities in Accordance with Criterion 2.4.2 of Section 3 (Evaluation and
Qualification Criteria)
Employerʼsname
Address
Telephone number
Fax number
E-mail
Description of the Major Items in Accordance with Criterion 2.5 of Section 3 (Evaluation and
Qualification Criteria)
Table of Contents
2. Specifications
(Refer Volume II)
The bidders shall submit the Site Specific Environmental Management Plan (SSEMP) under which
the Site Specific Health and Safety Management Plan (SSHSMP) is attached. The SSHSMP is to be
submitted to the Engineer and a confirmation of no objection of the SSHSMP should be obtained
from the Engineer prior to commence of site work.
4. Supplementary Information
(Refer Volume II)
The bidders should follow the rules, regulations, guidelines regulated by Government of Nepal
regarding COVID – 19 prevention and controls, and worksite safety measures, or in the absence
thereof, the applicable international good practices on Health and Safety.
5. Certificates
Date: .....................................
Certificate No.: .....................................
Pursuant to GCC Clause 24 (Completion of the Facilities) of the General Conditions of the Contract
entered into between yourselves and the Employer dated [. . . ..insertdate. . . . . ], relating to the [. . .
.brief description of the Facilities . . . .], we hereby notify you that the following part(s) of the Facilities
was (were) complete on the date specified below, and that, in accordance with the terms of the
Contract, the Employer hereby takes over the said part(s) of the Facilities, together with the
responsibility for care and custody and the risk of loss thereof on the date mentioned below.
However, you are required to complete the outstanding items listed in the attachment hereto as soon
as practicable.
This letter does not relieve you of your obligation to complete the execution of the Facilities in
accordance with the Contract nor of your obligations during the Defect Liability Period.
[. . . .Signature . . . .]
Project Manager
Date: .....................................
Certificate No.: .....................................
Pursuant to GCC Subclause 25.3 (Operational Acceptance) of the General Conditions of the Contract
entered into between yourselves and the Employer dated [. . .date. . .], relating to the [. . .brief
description of the facilities. . .], we hereby notify you that the Functional Guarantees of the following
part(s) of the Facilities were satisfactorily attained on the date specified below.
This letter does not relieve you of your obligation to complete the execution of the Facilities in
accordance with the Contract nor of your obligations during the Defect Liability Period.
[. . . .Signature . . . .]
Project Manager
6. Change Orders
6.1.1 General
This section provides samples of procedures and forms for implementing changes in the
Facilities during the performance of the Contract in accordance with GCC Clause 39 (Change
in the Facilities) of the General Conditions.
The Contractor shall keep an up-to-date Change Order Log to show the current status of
Requests for Change and Changes authorized or pending. Entries of the Changes in the
Change Order Log shall be made to ensure that the log is up-to-date. The Contractor shall
attach a copy of the current Change Order Log in the monthly progress report to be submitted
to the Employer.
(1) Request for Change as referred to in GCC Clause 39 shall be serially numbered CR-X-
nnn.
(2) Estimate for Change Proposal as referred to in GCC Clause 39 shall be serially
numbered CN-X-nnn.
(4) Change Proposal as referred to in GCC Clause 39 shall be serially numbered CP-X-
nnn.
(5) Change Order as referred to in GCC Clause 39 shall be serially numbered CO-X-nnn.
Note:
(a) Requests for Change issued from the Employer’s Home Office and the Site
representatives of the Employer shall have the following respective references:
(b) The above number “nnn” is the same for Request for Change, Estimate for Change
Proposal, Acceptance of Estimate, Change Proposal and Change Order.
[Employer’sletterhead]
With reference to the captioned Contract, you are requested to prepare and submit a Change
Proposal for the Change noted below in accordance with the following instructions within [ number]
days of the date of this letter[or on or before (date)].
[ Contractor’sletterhead ]
With reference to your Request for Change Proposal, we are pleased to notify you of the approximate
cost to prepare the below-referenced Change Proposal in accordance with GCC Subclause 39.2.1 of
the General Conditions. We acknowledge that your agreement to the cost of preparing the Change
Proposal, in accordance with GCC Subclause 39.2.2, is required before estimating the cost for
change work.
[Contractor'sname]
[Signature]
[Name of signatory]
[Title of signatory]
[Employer’s letterhead]
We hereby accept your Estimate for Change Proposal and agree that you should proceed with the
preparation of the Change Proposal.
[Employer’sname]
[Signature]
[Name of signatory]
[Title of signatory]
[ Contractor’sletterhead]
In response to your Request for Change Proposal No. [Number], we hereby submit our proposal as
follows:
[Contractor'sname]
[Signature]
[Name of signatory]
[Title of signatory]
[Employer’sletterhead]
We approve the Change Order for the work specified in the Change Proposal (No. [ number]), and
agree to adjust the Contract Price, Time for Completion, and/or other conditions of the Contract in
accordance with GCC Clause 39 of the General Conditions.
5. Authorized Price:
Ref. No.: [Number] Date: [Date]
Foreign currency portion [Amount] plus Local currency portion [Amount]
[Employer’sletterhead]
We instruct you to carry out the work in the Change Order detailed below in accordance with GCC
Clause 39 of the General Conditions.
5. Facilities and/or Item No. of equipment related to the requested Change: [ Facilities]
[Employer’sname]
[Signature]
[Name of signatory]
[Title of signatory]
[ Contractor’sletterhead]
We hereby propose that the work mentioned below be treated as a Change in the Facilities.
8. Appendix:
[Contractor'sname]
[Signature]
[Name of signatory]
[Title of signatory]
7. Personnel Requirements
Using Form PER-1 and PER-2 in Section 4 (Bidding Forms), the Bidder must demonstrate that it has
personnel who meet the following requirements:
Experience In
Total Work
No. Position Similar Work
Experience [years]
[years]
1 Project Manager 12 6
2 Electrical Engineer 10 5
3 Civil Engineer 10 5
4 Electrical Engineer: GIS 10 5
5 Surveyor 10 5
8. Equipment Requirements
Using Form EQU in Section 4 (Bidding Forms), the Bidder must demonstrate that it has the key
equipment listed below:
1 5 KV Megger 2
2 Transformer Oil Filter Machine 1
3 Secondary Injection Kit (>= 5 Amp) 2
4 Primary Injection Kit (>= 800 Amp) 1
5 Theodolite 2
6 DGPS 2
7 Concrete Mixture 3
8 Crane 5 Ton 2
9 Tension Stringing Equipment 10 Tons 1
10 Cable Compression Tools 2
11 Vibrator 3
12 Soil Resistivity Testing Meter 2
13 Multi-meters 3
Table of Clauses
1. Definitions 1.1 The following words and expressions shall have the meanings hereby
assigned them:
3. Interpretation 3.1 In the Contract, except where the context requires otherwise,
(a) words indicating one gender include all genders;
(b) words indicating the singular also include the plural and words
indicating the plural also include the singular;
(c) provisions including the word “agree,” “agreed,” or “agreement”
require the agreement to be record in writing;
(d) the word “tender” is synonymous with “bid,” “tenderer” with
“Bidder,” and “tender documents” with “Bidding Documents;”
and
(e) “written” or “in writing” means handwritten, typewritten, printed
The marginal words and other headings shall not be taken into
consideration in the interpretation of these Conditions.
3.2 Incoterms
3.4 Amendment
No amendment or other variation of the Contract shall be effective
unless it is in writing, is dated, expressly refers to the Contract, and is
signed by a duly authorized representative of each party hereto.
3.6 Non-Waiver
3.6.1 Subject to GCC Subclause 3.6.2 below, no relaxation,
forbearance, delay, or indulgence by either party in enforcing
any of the terms and conditions of the Contract or the granting
of time by either party to the other shall prejudice, affect, or
restrict the rights of that party under the Contract, nor shall any
waiver by either party of any breach of Contract operate as
waiver of any subsequent or continuing breach of Contract.
waived.
3.7 Severability
If any provision or condition of the Contract is prohibited or rendered
invalid or unenforceable, such prohibition, invalidity, or unenforceability
shall not affect the validity or enforceability of any other provisions and
conditions of the Contract.
4.Communications 4.1 Wherever these Conditions provide for the giving or issuing of
approvals, certificates, consents, determinations, notices, requests,
and discharges, these communications shall be
(a) in writing and delivered against receipt; and
(b) delivered, sent, or transmitted to the address for the recipient’s
communications as stated in the Contract Agreement.
When a certificate is issued to a Party, the certifier shall send a copy to
the other Party. When a notice is issued to a Party, by the other Party
or the Project Manager, a copy shall be sent to the Project Manager or
the other Party, as the case may be.
5. Law and 5.1 The Contract shall be governed by and interpreted in accordance with
Language laws of the country specified in the SCC.
5.2 The ruling language of the Contract shall be that stated in the SCC.
5.3 The language for communications shall be the ruling language unless
otherwise stated in the SCC.
6. Fraud and
6.1 ADB’s Anticorruption Policy (1998, as amended to date) requires
Corruption
Borrowers (including beneficiaries of ADB-financed activity), as well
as Contractors, Subcontractors, manufacturers, and Consultants
under ADB-financed contracts, observe the highest standard of ethics
during the procurement and execution of such contracts. In pursuance
of this policy, ADB
(a) defines, for the purposes of this provision, the terms set forth
below as follows:
(i) “corrupt practice” means the offering, giving, receiving, or
soliciting, directly or indirectly, anything of value to
influence improperly the actions of another party;
(ii) “fraudulent practice” means any act or omission, including
a misrepresentation, that knowingly or recklessly misleads,
or attempts to mislead, a party to obtain a financial or other
1
Whether as a Contractor, Subcontractor, Consultant, Manufacturer or Supplier, or Service Provider; or in any other capacity
(different names are used depending on the particular Bidding Document).
9.4 The Contractor shall comply with all laws in force in the country where
the Facilities are to be implemented. The laws will include all local,
state, national, or other laws that affect the performance of the
Contract and bind upon the Contractor. The Contractor shall indemnify
and hold harmless the Employer from and against any and all
liabilities, damages, claims, fines, penalties, and expenses of whatever
nature arising or resulting from the violation of such laws by the
Contractor or its personnel, including the Subcontractors and their
personnel, but without prejudice to GCC Subclause 10.1 hereof.
9.5 Any plant and services that will be incorporated in or be required for
the Facilities and other supplies shall have their origin as specified
under GCC Clause 1 (Country of Origin). Any Subcontractors retained
by the Contractor shall be from a country as specified in GCC Clause 1
(Country of Origin).
9.6 The Contractor shall permit ADB to inspect the Contractor’s accounts
and records relating to the performance of the Contractor and to have
them audited by auditors appointed by ADB, if so required by ADB.
10. Employer’s 10.1 All information and/or data to be supplied by the Employer as
Responsibilities described in the Appendix (Scope of Works and Supply by the
Employer) to the Contract Agreement shall be deemed to be accurate,
except when the Employer expressly states otherwise.
10.2 The Employer shall be responsible for acquiring and providing legal
and physical possession of the Site and access thereto, and for
providing possession of and access to all other areas reasonably
required for the proper execution of the Contract, including all requisite
rights of way, as specified in the Appendix (Scope of Works and
Supply by the Employer) to the Contract Agreement. The Employer
shall give full possession of and accord all rights of access thereto on
or before the date(s) specified in that Appendix.
10.3 The Employer shall acquire and pay for all permits, approvals, and/or
licenses from all local, state, or national government authorities, or
public service undertakings in the country where the Site is located
which (a) such authorities or undertakings require the Employer to
obtain in the Employer’s name, (b) are necessary for the execution of
the Contract, including those required for the performance by both the
Contractor and the Employer of their respective obligations under the
Contract, and (c) are specified in the Appendix (Scope of Works and
Supply by the Employer) to the Contract Agreement.
10.4 If requested by the Contractor, the Employer shall use its best
endeavors to assist the Contractor in obtaining in a timely and
expeditious manner all permits, approvals, and/or licenses necessary
for the execution of the Contract from all local, state, or national
government authorities, or public service undertakings that such
authorities or undertakings require the Contractor or Subcontractors or
the personnel of the Contractor or Subcontractors, as the case may be,
to obtain.
10.6 The Employer shall be responsible for the continued operation of the
Facilities after Completion, in accordance with GCC Subclause 24.8,
and shall be responsible for facilitating the Guarantee Test(s) for the
10.7 All costs and expenses involved in the performance of the obligations
under this GCC Clause 10 shall be the responsibility of the Employer,
except those incurred by the Contractor with respect to the
performance of Guarantee Tests, in accordance with GCC Subclause
25.2.
10.8 In the event that the Employer shall be in breach of any of his
obligations imposed by the Contract, then the additional cost
reasonably incurred by the Contractor in consequence thereof shall be
added to the Contract Price.
C. Payment
11. Contract Price 11.1 The Contract Price shall be as specified in Article 2 (Contract Price and
Terms of Payment) of the Contract Agreement.
11.2 Unless an adjustment clause is provided for in the SCC, the Contract
Price shall be a firm lump sum not subject to any alteration, except in
the event of a Change in the Facilities or as otherwise provided in the
Contract.
11.3 Subject to GCC Subclauses 9.2, 10.1, and 35 hereof, the Contractor
shall be deemed to have satisfied itself as to the correctness and
sufficiency of the Contract Price, which shall, except as otherwise
provided for in the Contract, cover all its obligations under the Contract.
12. Terms of 12.1 The Contract Price shall be paid as specified in Article 2 (Contract
Payment Price and Terms of Payment) of the Contract Agreement and in the
Appendix (Terms and Procedures of Payment) to the Contract
Agreement, which also outlines the procedures to be followed in
making application for and processing payments.
12.3 In the event that the Employer fails to make any payment by its
respective due date or within the period set forth in the Contract, the
Employer shall pay to the Contractor interest on the amount of such
delayed payment at the rate(s) shown in the Appendix (Terms and
Procedures of Payment) to the Contract Agreement for the period of
delay until payment has been made in full, whether before or after
judgment or arbitrage award.
14. Taxes and 14.1 Except as otherwise specifically provided in the Contract, the
Duties Contractor shall bear and pay all taxes, duties, levies, and charges
assessed on the Contractor, its Subcontractors, or their employees by
all municipal, state, or national government authorities in connection
with the Facilities in and outside of the country where the Site is
located.
14.2 Notwithstanding GCC Subclause 14.1 above, the Employer shall bear
and promptly pay all customs and import duties as well as other local
taxes like, e.g., a value-added tax (VAT), imposed by the law of the
country where the Site is located on the Plant specified in Price
Schedule No. 1 and that are to be incorporated into the Facilities.
14.4 For the purpose of the Contract, it is agreed that the Contract Price
specified in Article 2 (Contract Price and Terms of Payment) of the
Contract Agreement is based on the taxes, duties, levies, and charges
prevailing at the date 28 days prior to the date of bid submission in the
country where the Site is located (hereinafter called “Tax” in this GCC
Subclause 14.4). If any rates of Tax are increased or decreased, a
new Tax is introduced, an existing Tax is abolished, or any change in
interpretation or application of any Tax occurs in the course of the
performance of Contract, which was or will be assessed on the
Contractor, Subcontractors, or their employees in connection with
performance of the Contract, an equitable adjustment of the Contract
Price shall be made to fully take into account any such change by
addition to the Contract Price or deduction therefrom, as the case may
be, in accordance with GCC Clause 36 hereof.
D. Intellectual Property
15. License/Use of 15.1 For the operation and maintenance of the Plant, the Contractor hereby
Technical grants a non-exclusive and nontransferable license (without the right
Information to sublicense) to the Employer under the patents, utility models, or
other industrial property rights owned by the Contractor or by a third
party from whom the Contractor has received the right to grant
licenses thereunder, and shall also grant to the Employer a
nonexclusive and nontransferable right (without the right to
sublicense) to use the know-how and other technical information
disclosed to the Employer under the Contract. Nothing contained
herein shall be construed as transferring ownership of any patent,
utility model, trademark, design, copyright, know-how, or other
intellectual property right from the Contractor or any third party to the
Employer.
16. Confidential 16.1 The Employer and the Contractor shall keep confidential and shall not,
without the written consent of the other party hereto, divulge to any
Information third party any documents, data or other information furnished directly
or indirectly by the other party hereto in connection with the Contract,
whether such information has been furnished prior to, during, or
following termination of the Contract. Notwithstanding the above, the
Contractor may furnish to its Subcontractor(s) such documents, data,
and other information it receives from the Employer to the extent
required for the Subcontractor(s) to perform its work under the
Contract, in which event the Contractor shall obtain from such
Subcontractor(s) an undertaking of confidentiality similar to that
imposed on the Contractor under this GCC Clause 16.
16.2 The Employer shall not use such documents, data, and other
information received from the Contractor for any purpose other than the
operation and maintenance of the Facilities. Similarly, the Contractor
shall not use such documents, data, and other information received
from the Employer for any purpose other than the design, procurement
of Plant, construction, or such other work and services as are required
for the performance of the Contract.
16.3 The obligation of a party under GCC Subclauses 16.1 and 16.2 above,
however, shall not apply to that information, which
(a) now or hereafter enters the public domain through no fault of that
party;
(b) can be proven to have been possessed by that party at the time
of disclosure and which was not previously obtained, directly or
indirectly, from the other party hereto; and
16.4 The above provisions of this GCC Clause 16 shall not in any way
modify any undertaking of confidentiality given by either of the parties
hereto prior to the date of the Contract in respect of the Facilities or any
part thereof.
16.5 The provisions of this GCC Clause 16 shall survive termination, for
whatever reason, of the Contract.
17.2.2 The Contractor’s Representative shall represent and act for the
Contractor at all times during the performance of the Contract
and shall give to the Project Manager all the Contractor’s
notices, instructions, information, and all other communications
under the Contract.
All notices, instructions, information, and all other
communications given by the Employer or the Project Manager
to the Contractor under the Contract shall be given to the
Contractor’s Representative or, in its absence, its deputy,
except as herein otherwise provided.
The Contractor shall not revoke the appointment of the
Contractor’s Representative without the Employer’s prior written
consent, which shall not be unreasonably withheld. If the
Employer consents thereto, the Contractor shall appoint some
other person as the Contractor’s Representative, pursuant to the
procedure set out in GCC Subclause 17.2.1.
18.5 Procedures
The Contract shall be executed in accordance with the Contract
Documents including the procedures given in the Forms and
Procedures of the Employer’s Requirements.
The Contractor may execute the Contract in accordance with its own
standard project execution plans and procedures to the extent that they
do not conflict with the provisions contained in the Contract.
19.Subcontracting 19.1 The Appendix 5 (List of Major Items of Plant and Services and List of
Approved Subcontractors) to the Contract Agreement specifies major
items of plant and services and a list of approved Subcontractors
against each item, including manufacturers. Insofar as no
Subcontractors are listed against any such item, the Contractor shall
prepare a list of Subcontractors for such item for inclusion in such list.
The Contractor may from time to time propose any addition to or
deletion from any such list. The Contractor shall submit any such list
or any modification thereto to the Employer for its approval in sufficient
time so as not to impede the progress of work on the Facilities. Such
approval by the Employer for any of the Subcontractors shall not
relieve the Contractor from any of its obligations, duties, or
responsibilities under the Contract.
19.2 The Contractor shall select and employ its Subcontractors for such
major items from those listed in the lists referred to in GCC Subclause
19.1.
19.3 For items or parts of the Facilities not specified in the Appendix (List of
Major Items of Plant and Services and List of Approved
Subcontractors for Major Items) to the Contract Agreement, the
Contractor may employ such Subcontractors as it may select, at its
discretion.
19.4 Each subcontract shall include provisions which would entitle the
Employer to require the sub-contract to be assigned to the Employer
If the Project Manager fails to take such action within the said 14
days, then the said document shall be deemed to have been
approved by the Project Manager.
parties.
22.2 Labor
(b) The Contractor shall provide and employ on the Site in the
installation of the Facilities such skilled, semi-skilled, and
unskilled labor as is necessary for the proper and timely
execution of the Contract. The Contractor is encouraged
to use local labor that has the necessary skills.
be unreasonably withheld.
Such Site regulations shall include, but shall not be limited to, rules in
respect of security, safety of the Facilities, gate control, sanitation,
medical care, and fire prevention.
23. Test and 23.1 The Contractor shall at its own expense carry out at the place of
Inspection manufacture and/or on the Site all such tests and/or inspections of the
Plant and any part of the Facilities as are specified in the Contract.
23.3 Whenever the Contractor is ready to carry out any such test and/or
inspection, the Contractor shall give a reasonable advance notice of
such test and/or inspection and of the place and time thereof to the
Project Manager. The Contractor shall obtain from any relevant third
party or manufacturer any necessary permission or consent to enable
the Employer and the Project Manager or their designated
representatives to attend the test and/or inspection.
23.4 The Contractor shall provide the Project Manager with a certified report
of the results of any such test and/or inspection.
23.5 The Project Manager may require the Contractor to carry out any test
and/or inspection not required by the Contract, provided that the
23.6 If any Plant or any part of the Facilities fails to pass any test and/or
inspection, the Contractor shall either rectify or replace such Plant or
part of the Facilities and shall repeat the test and/or inspection upon
giving a notice under GCC Subclause 23.3.
23.7 If any dispute or difference of opinion shall arise between the parties in
connection with or arising out of the test and/or inspection of the Plant
or part of the Facilities that cannot be settled between the parties within
a reasonable period of time, it may be referred to an Dispute Board for
determination in accordance with GCC Subclause 45.3.
23.8 The Contractor shall afford the Employer and the Project Manager, at
the Employer’s expense, access at any reasonable time to any place
where the Plant are being manufactured or the Facilities are being
installed, in order to inspect the progress and the manner of
manufacture or installation, provided that the Project Manager shall
give the Contractor a reasonable prior notice.
23.9 The Contractor agrees that neither the execution of a test and/or
inspection of Plant or any part of the Facilities, nor the attendance by
the Employer or the Project Manager, nor the issue of any test
certificate pursuant to GCC Subclause 23.4, shall release the
Contractor from any other responsibilities under the Contract.
24. Completion of 24.1 As soon as the Facilities or any part thereof has, in the opinion of the
the Facilities Contractor, been completed operationally and structurally and put in a
tight and clean condition as specified in the Employer’s Requirements,
24.2 Within 7 days after receipt of the notice from the Contractor under GCC
Subclause 24.1, the Employer shall supply the operating and
maintenance personnel specified in the Appendix (Scope of Works and
Supply by the Employer) to the Contract Agreement for Pre-
commissioning of the Facilities or any part thereof.
24.5 The Project Manager shall, within 14 days after receipt of the
Contractor’s notice under GCC Subclause 24.4, either issue a
Completion Certificate in the form specified in the Employer’s
Requirements (Forms and Procedures), stating that the Facilities or
that part thereof have reached Completion as of the date of the
Contractor’s notice under GCC Subclause 24.4, or notify the Contractor
in writing of any defects and/or deficiencies.
24.6 If the Project Manager fails to issue the Completion Certificate and fails
to inform the Contractor of any defects and/or deficiencies within 14
days after receipt of the Contractor’s notice under GCC Subclause 24.4
or within 7 days after receipt of the Contractor’s repeated notice under
GCC Subclause 24.5, or if the Employer makes use of the Facilities or
part thereof, then the Facilities or that part thereof shall be deemed to
24.7 As soon as possible after Completion, the Contractor shall complete all
outstanding minor items so that the Facilities are fully in accordance
with the requirements of the Contract, failing which the Employer will
undertake such completion and deduct the costs thereof from any
monies owing to the Contractor.
24.8 Upon Completion, the Employer shall be responsible for the care and
custody of the Facilities or the relevant part thereof, together with the
risk of loss or damage thereto, and shall thereafter take over the
Facilities or the relevant part thereof.
25.3.2 At any time after any of the events set out in GCC Subclause
25.3.1 have occurred, the Contractor may give a notice to the
Project Manager requesting the issue of an Operational
Acceptance Certificate in the form provided in the Employer’s
Requirements (Forms and Procedures)in respect of the
Facilities or the part thereof specified in such notice as of the
date of such notice.
25.3.3 The Project Manager shall, after consultation with the Employer,
and within 7 days after receipt of the Contractor’s notice, issue
an Operational Acceptance Certificate.
Certificate.
25.5.4 When the Contractor is notified by the Project Manager that the
plant is ready for Pre-commissioning, the Contractor shall
proceed without delay in performing all the specified activities
and obligations under the contract.
26.2 If the Contractor fails to attain Completion of the Facilities or any part
thereof within the Time for Completion or any extension thereof under
GCC Clause 40, the Contractor shall pay to the Employer liquidated
damages in the amount specified in the SCC as a percentage rate of
the Contract Price or the relevant part thereof. The aggregate amount
of such liquidated damages shall in no event exceed the amount
specified as “Maximum” in the SCC as a percentage rate of the
Contract Price. Once the “Maximum” is reached, the Employer may
consider termination of the Contract, pursuant to GCC Subclause
42.2.2.
Save for liquidated damages payable under this GCC Subclause 26.2,
the failure by the Contractor to attain any milestone or other act, matter
or thing by any date specified in the Appendix (Time Schedule) to the
Contract Agreement and/or other program of work prepared pursuant
to GCC Subclause 18.2 shall not render the Contractor liable for any
loss or damage thereby suffered by the Employer.
26.3 If the Contractor attains Completion of the Facilities or any part thereof
before the Time for Completion or any extension thereof under GCC
Clause 40, the Employer shall pay to the Contractor a bonus in the
amount specified in the SCC. The aggregate amount of such bonus
shall in no event exceed the amount specified as “Maximum” in the
SCC.
27. Defect Liability 27.1 The Contractor warrants that the Facilities or any part thereof shall be
free from defects in the design, engineering, materials, and
workmanship of the Plant supplied and of the work executed.
27.2 The Defect Liability Period shall be 540 days from the date of
Completion of the Facilities (or any part thereof) or 1 year from the
date of Operational Acceptance of the Facilities (or any part thereof),
whichever first occurs, unless specified otherwise in the SCC pursuant
to GCC Subclause 27.10.
If during the Defect Liability Period any defect should be found in the
design, engineering, materials, and workmanship of the Plant supplied
or of the work executed by the Contractor, the Contractor shall
promptly, in consultation and agreement with the Employer regarding
appropriate remedying of the defects, and at its cost, repair, replace, or
otherwise make good as the Contractor shall determine at its
discretion, such defect as well as any damage to the Facilities caused
by such defect. The Contractor shall not be responsible for the repair,
replacement, or making good of any defect or of any damage to the
Facilities arising out of or resulting from any of the following causes:
(a) improper operation or maintenance of the Facilities by the
Employer,
(b) operation of the Facilities outside specifications provided in the
Contract, or
(c) normal wear and tear.
27.3 The Contractor’s obligations under this GCC Clause 27 shall not apply
to:
(a) any materials that are supplied by the Employer under GCC
Subclause 21.2, are normally consumed in operation, or have a
normal life shorter than the Defect Liability Period stated herein;
(b) any designs, specifications or other data designed, supplied, or
specified by or on behalf of the Employer or any matters for
which the Contractor has disclaimed responsibility herein; or
(c) any other materials supplied or any other work executed by or on
behalf of the Employer, except for the work executed by the
Employer under GCC Subclause 27.7.
27.4 The Employer shall give the Contractor a notice stating the nature of
any such defect together with all available evidence thereof, promptly
following the discovery thereof. The Employer shall afford all
reasonable opportunity for the Contractor to inspect any such defect.
27.5 The Employer shall afford the Contractor all necessary access to the
Facilities and the Site to enable the Contractor to perform its
obligations under this GCC Clause 27.
The Contractor may, with the consent of the Employer, remove from
the Site any Plant or any part of the Facilities that are defective if the
nature of the defect, and/or any damage to the Facilities caused by the
defect, is such that repairs cannot be expeditiously carried out at the
Site.
If such part fails the tests, the Contractor shall carry out further repair,
replacement or making good, as the case may be, until that part of the
Facilities passes such tests. The tests shall be agreed upon by the
Employer and the Contractor.
27.8 If the Facilities or any part thereof cannot be used by reason of such
defect and/or making good of such defect, the Defect Liability Period of
the Facilities or such part, as the case may be, shall be extended by a
period equal to the period during which the Facilities or such part
cannot be used by the Employer because of any of the aforesaid
reasons.
27.9 Except as provided in GCC Clauses 27 and 33, the Contractor shall be
under no liability whatsoever and howsoever arising, and whether
under the Contract or at law, in respect of defects in the Facilities or
any part thereof, the Plant, design, or engineering, or work executed
that appear after Completion of the Facilities or any part thereof,
except where such defects are the result of the gross negligence,
fraud, criminal, or willful action of the Contractor.
27.10 In addition, any such component of the Facilities and during the period
of time as may be specified in the SCC shall be subject to an extended
Defect Liability Period. Such obligation of the Contractor shall be in
addition to the Defect Liability Period specified under GCC Subclause
27.2.
28. Functional 28.1 The Contractor guarantees that during the Guarantee Test, the
Guarantees Facilities and all parts thereof shall attain the Functional Guarantees
specified in the Appendix (Functional Guarantees) to the Contract
Agreement, subject to, and upon the conditions therein specified.
28.2 If, for reasons attributable to the Contractor, the minimum level of the
Functional Guarantees specified in the Appendix (Functional
Guarantees) to the Contract Agreement are not met either in whole or
in part, the Contractor shall at its cost and expense make such
changes, modifications, and/or additions to the Plant or any part
thereof as may be necessary to meet at least the minimum level of
such Guarantees. The Contractor shall notify the Employer upon
completion of the necessary changes, modifications, and/or additions,
and shall request the Employer to repeat the Guarantee Test until the
29. Patent 29.1 The Contractor shall, subject to the Employer’s compliance with GCC
Indemnity Subclause 29.2, indemnify and hold harmless the Employer and its
employees and officers from and against any and all suits, actions, or
administrative proceedings, claims, demands, losses, damages, costs,
and expenses of whatsoever nature, including attorney’s fees and
expenses, which the Employer may suffer as a result of any
infringement or alleged infringement of any patent, utility model,
registered design, trademark, copyright, or other intellectual property
right registered or otherwise existing at the date of the Contract by
reason of (a) the installation of the Facilities by the Contractor or the
use of the Facilities in the country where the Site is located, and (b) the
sale of the products produced by the Facilities in any country.
Such indemnity shall not cover any use of the Facilities or any part
thereof other than for the purpose indicated by or to be reasonably
inferred from the Contract, any infringement resulting from the use of
the Facilities or any part thereof, or any products produced thereby in
association or combination with any other equipment, plant, or
materials not supplied by the Contractor, pursuant to the Contract
Agreement.
29.2 If any proceedings are brought or any claim is made against the
Employer arising out of the matters referred to in GCC Subclause 29.1,
the Employer shall promptly give the Contractor a notice thereof, and
the Contractor may at its own expense and in the Employer’s name
conduct such proceedings or claim and any negotiations for the
If the Contractor fails to notify the Employer within 28 days after receipt
of such notice that it intends to conduct any such proceedings or claim,
then the Employer shall be free to conduct the same on its own behalf.
Unless the Contractor has so failed to notify the Employer within the
28-day period, the Employer shall make no admission that may be
prejudicial to the defense of any such proceedings or claim.
29.3 The Employer shall indemnify and hold harmless the Contractor and its
employees, officers, and Subcontractors from and against any and all
suits, actions or administrative proceedings, claims, demands, losses,
damages, costs, and expenses of whatsoever nature, including
attorney’s fees and expenses, which the Contractor may suffer as a
result of any infringement or alleged infringement of any patent, utility
model, registered design, trademark, copyright, or other intellectual
property right registered or otherwise existing at the date of the
Contract arising out of or in connection with any design, data, drawing,
specification, or other documents or materials provided or designed by
or on behalf of the Employer.
G. Risk Distribution
31. Transfer of 31.1 Ownership of the Plant (including spare parts) to be imported into the
Ownership country where the Site is located shall be transferred to the Employer
upon loading on to the mode of transport to be used to convey the
Plant from the country of origin to that country.
31.2 Ownership of the Plant (including spare parts) procured in the country
where the Site is located shall be transferred to the Employer when the
Plant are brought on to the Site.
its Subcontractors in connection with the Contract shall remain with the
Contractor or its Subcontractors.
31.4 Ownership of any Plant in excess of the requirements for the Facilities
shall revert to the Contractor upon Completion of the Facilities or at
such earlier time when the Employer and the Contractor agree that the
Plant in question are no longer required for the Facilities.
32. Care of Facilities 32.1 The Contractor shall be responsible for the care and custody of the
Facilities or any part thereof until the date of Completion of the
Facilities pursuant to GCC Clause 24 or, where the Contract provides
for Completion of the Facilities in parts, until the date of Completion of
the relevant part, and shall make good at its own cost any loss or
damage that may occur to the Facilities or the relevant part thereof
from any cause whatsoever during such period. The Contractor shall
also be responsible for any loss or damage to the Facilities caused by
the Contractor or its Subcontractors in the course of any work carried
out, pursuant to GCC Clause 27. Notwithstanding the foregoing, the
Contractor shall not be liable for any loss or damage to the Facilities or
that part thereof caused by reason of any of the matters specified or
referred to in paragraphs (a), (b) and (c) of GCC Subclauses 32.2 and
38.1.
32.2 If any loss or damage occurs to the Facilities or any part thereof or to
the Contractor’s temporary facilities by reason of
(a) insofar as they relate to the country where the Site is located,
nuclear reaction, nuclear radiation, radioactive contamination,
pressure wave caused by aircraft or other aerial objects, or any
other occurrences that an experienced contractor could not
reasonably foresee, or if reasonably foreseeable could not
reasonably make provision for or insure against, insofar as such
risks are not normally insurable on the insurance market and are
mentioned in the general exclusions of the policy of insurance,
including War Risks and Political Risks, taken out under GCC
Clause 34 hereof; or
(b) any use or occupation by the Employer or any third party other
than a Subcontractor, authorized by the Employer of any part of
the Facilities; or
(c) any use of or reliance upon any design, data, or specification
provided or designated by or on behalf of the Employer, or any
such matter for which the Contractor has disclaimed
responsibility herein,
the Employer shall pay to the Contractor all sums payable in respect of
the Facilities executed, notwithstanding that the same be lost,
destroyed, or damaged, and will pay to the Contractor the replacement
value of all temporary facilities and all parts thereof lost, destroyed, or
damaged. If the Employer requests the Contractor in writing to make
32.3 The Contractor shall be liable for any loss of or damage to any
Contractor’s Equipment, or any other property of the Contractor used
or intended to be used for purposes of the Facilities, except (i) as
mentioned in GCC Subclause 32.2 with respect to the Contractor’s
temporary facilities, and (ii) where such loss or damage arises by
reason of any of the matters specified in GCC Subclauses 32.2 (b) and
(c) and 38.1.
32.4 With respect to any loss or damage caused to the Facilities or any part
thereof or to the Contractor’s Equipment by reason of any of the
matters specified in GCC Subclause 38.1, the provisions of GCC
Subclause 38.3 shall apply.
33. Loss of or 33.1 Subject to GCC Subclause 33.3, the Contractor shall indemnify and
Damage to hold harmless the Employer and its employees and officers from and
Property; against any and all suits, actions, or administrative proceedings,
Accident or Injury claims, demands, losses, damages, costs, and expenses of
to Workers; whatsoever nature, including attorney’s fees and expenses, in respect
Indemnification of the death or injury of any person or loss of or damage to any
property other than the Facilities whether accepted or not, arising in
connection with the supply and installation of the Facilities and by
reason of the negligence of the Contractor or its Subcontractors, or
their employees, officers, or agents, except any injury, death, or
property damage caused by the negligence of the Employer, its
contractors, employees, officers, or agents.
33.2 If any proceedings are brought or any claim is made against the
Employer that might subject the Contractor to liability under GCC
Subclause 33.1, the Employer shall promptly give the Contractor a
notice thereof and the Contractor may at its own expense and in the
Employer’s name conduct such proceedings or claim and any
negotiations for the settlement of any such proceedings or claim.
If the Contractor fails to notify the Employer within 28 days after receipt
of such notice that it intends to conduct any such proceedings or claim,
then the Employer shall be free to conduct the same on its own behalf.
Unless the Contractor has so failed to notify the Employer within the
28-day period, the Employer shall make no admission that may be
prejudicial to the defense of any such proceedings or claim.
33.3 The Employer shall indemnify and hold harmless the Contractor and its
33.4 The party entitled to the benefit of an indemnity under this GCC Clause
33 shall take all reasonable measures to mitigate any loss or damage
which has occurred. If the party fails to take such measures, the other
party’s liabilities shall be correspondingly reduced.
34. Insurance 34.1 To the extent specified in the Appendix (Insurance Requirements) to
the Contract Agreement, the Contractor shall at its expense take out
and maintain in effect, or cause to be taken out and maintained in
effect, during the performance of the Contract, the insurances set forth
below in the sums and with the deductibles and other conditions
specified in the said Appendix. The identity of the insurers and the
form of the policies shall be subject to the approval of the Employer,
who should not unreasonably withhold such approval.
(a) Cargo Insurance During Transport
Covering loss or damage occurring while in transit from the
Contractor’s or Subcontractor’s works or stores until arrival at the
Site, to the Plant (including spare parts therefor) and to the
Contractor’s Equipment.
(b) Installation All Risks Insurance
Covering physical loss or damage to the Facilities at the Site,
occurring prior to Completion of the Facilities, with an extended
maintenance coverage for the Contractor’s liability in respect of
any loss or damage occurring during the Defect Liability Period
while the Contractor is on the Site for the purpose of performing
its obligations during the Defect Liability Period.
34.5 The Employer shall at its expense take out and maintain in effect
during the performance of the Contract those insurances specified in
theAppendix (Insurance Requirements) to the Contract Agreement, in
the sums and with the deductibles and other conditions specified in the
said Appendix. The Contractor and the Contractor’s Subcontractors
shall be named as co-insureds under all such policies. All insurers’
rights of subrogation against such co-insureds for losses or claims
arising out of the performance of the Contract shall be waived under
such policies. The Employer shall deliver to the Contractor satisfactory
evidence that the required insurances are in full force and effect. The
policies shall provide that not less than 21 days’ notice shall be given
to the Contractor by all insurers prior to any cancellation or material
modification of the policies. If so requested by the Contractor, the
Employer shall provide copies of the policies taken out by the
Employer under this GCC Subclause 34.5.
34.6 If the Contractor fails to take out and/or maintain in effect the
insurances referred to in GCC Subclause 34.1, the Employer may take
out and maintain in effect any such insurances and may from time to
time deduct from any amount due the Contractor under the Contract
any premium that the Employer shall have paid to the insurer, or may
otherwise recover such amount as a debt due from the Contractor. If
the Employer fails to take out and/or maintain in effect the insurances
referred to in GCC 34.5, the Contractor may take out and maintain in
effect any such insurances and may from time to time deduct from any
amount due the Employer under the Contract any premium that the
Contractor shall have paid to the insurer, or may otherwise recover
such amount as a debt due from the Employer. If the Contractor fails
to or is unable to take out and maintain in effect any such insurances,
the Contractor shall nevertheless have no liability or responsibility
towards the Employer, and the Contractor shall have full recourse
against the Employer for any and all liabilities of the Employer herein.
34.7 Unless otherwise provided in the Contract, the Contractor shall prepare
and conduct all and any claims made under the policies effected by it
pursuant to this GCC Clause 34, and all monies payable by any
insurers shall be paid to the Contractor. The Employer shall give to the
Contractor all such reasonable assistance as may be required by the
Contractor. With respect to insurance claims in which the Employer’s
interest is involved, the Contractor shall not give any release or make
any compromise with the insurer without the prior written consent of
the Employer. With respect to insurance claims in which the
Contractor’s interest is involved, the Employer shall not give any
release or make any compromise with the insurer without the prior
written consent of the Contractor.
35. Unforeseen 35.1 If, during the execution of the Contract, the Contractor shall encounter
Conditions on the Site any physical conditions other than climatic conditions, or
artificial obstructions that could not have been reasonably foreseen
prior to the date of the Contract Agreement by an experienced
contractor on the basis of reasonable examination of the data relating
to the Facilities including any data as to boring tests, provided by the
Employer, and on the basis of information that it could have obtained
from a visual inspection of the Site if access thereto was available, or
other data readily available to it relating to the Facilities, and if the
Contractor determines that it will in consequence of such conditions or
obstructions incur additional cost and expense or require additional
time to perform its obligations under the Contract that would not have
been required if such physical conditions or artificial obstructions had
not been encountered, the Contractor shall promptly, and before
performing additional work or using additional Plant or Contractor’s
Equipment, notify the Project Manager in writing of
(d) the additional cost and expense that the Contractor is likely to
incur.
On receiving any notice from the Contractor under this GCC Subclause
35.1, the Project Manager shall promptly consult with the Employer
and Contractor and decide upon the actions to be taken to overcome
the physical conditions or artificial obstructions encountered. Following
such consultations, the Project Manager shall instruct the Contractor,
35.2 Any reasonable additional cost and expense incurred by the Contractor
in following the instructions from the Project Manager to overcome
such physical conditions or artificial obstructions referred to in GCC
Subclause 35.1 shall be paid by the Employer to the Contractor as an
addition to the Contract Price.
36. Change in Laws 36.1 If, after the date 28 days prior to the date of Bid submission, in the
and Regulations country where the Site is located, any law, regulation, ordinance, order
or by-law having the force of law is enacted, promulgated, abrogated,
or changed, which shall be deemed to include any change in
interpretation or application by the competent authorities, that
subsequently affects the costs and expenses of the Contractor and/or
the Time for Completion, the Contract Price shall be correspondingly
increased or decreased, and/or the Time for Completion shall be
reasonably adjusted to the extent that the Contractor has thereby been
affected in the performance of any of its obligations under the Contract.
Notwithstanding the foregoing, such additional or reduced costs shall
not be separately paid or credited if the same has already been
accounted for in the price adjustment provisions where applicable, in
accordance with the SCC, pursuant to GCC Subclause 11.2.
37. Force Majeure 37.1 “Force Majeure” shall mean any event beyond the reasonable control
of the Employer or of the Contractor, as the case may be, and which is
unavoidable notwithstanding the reasonable care of the party affected,
and shall include, without limitation, the following:
37.3 The party who has given such notice shall be excused from the
performance or punctual performance of its obligations under the
Contract for so long as the relevant event of Force Majeure continues
and to the extent that such party’s performance is prevented, hindered,
or delayed. The Time for Completion shall be extended in accordance
with GCC Clause 40.
37.4 The party or parties affected by the event of Force Majeure shall use
reasonable efforts to mitigate the effect thereof upon its or their
performance of the Contract and to fulfill its or their obligations under
the Contract, but without prejudice to either party’s right to terminate
the Contract under GCC Subclauses 37.6 and 38.5.
(b) give rise to any claim for damages or additional cost or expense
occasioned thereby, subject to GCC Subclauses 32.2, 38.3 and
38.4
37.7 In the event of termination pursuant to GCC Subclause 37.6, the rights
and obligations of the Employer and the Contractor shall be as
specified in GCC Subclauses 42.1.2 and 42.1.3.
37.8 Notwithstanding GCC Subclause 37.5, Force Majeure shall not apply
to any obligation of the Employer to make payments to the Contractor
herein.
38. War Risks 38.1 “War Risks” shall mean any event specified in paragraphs (a) and (b)
of GCC Subclause 37.1 and any explosion or impact of any mine,
bomb, shell, grenade, or other projectile, missile, munitions or
explosive of war, occurring or existing in or near the country (or
countries) where the Site is located.
38.5 If during the performance of the Contract anywar risks shall occur that
financially or otherwise materially affect the execution of the Contract
by the Contractor, the Contractor shall use its reasonable efforts to
execute the Contract with due and proper consideration given to the
safety of its and its Subcontractors’ personnel engaged in the work on
the Facilities, provided, however, that if the execution of the work on
the Facilities becomes impossible or is substantially prevented for a
single period of more than sixty (60) days or an aggregate period of
more than one hundred and twenty (120) days on account of any war
risks, the parties will attempt to develop a mutually satisfactory
solution, failing which either party may terminate the Contract by giving
a notice to the other.
(c) advise the Contractor that the Employer does not intend to
proceed with the Change.
39.2.6 Upon receipt of the Change Proposal, the Employer and the
Contractor shall mutually agree upon all matters therein
contained. Within 14 days after such agreement, the Employer
shall, if it intends to proceed with the Change, issue the
Contractor with a Change Order.
40. Extension of Time 40.1 The Time(s) for Completion specified in the SCC shall be extended if
for Completion the Contractor is delayed or impeded in the performance of any of its
obligations under the Contract by reason of any of the following:
(c) any suspension order given by the Employer under GCC Clause
41 hereof or reduction in the rate of progress pursuant to GCC
Subclause 41.2; or
40.3 The Contractor shall at all times use its reasonable efforts to minimize
any delay in the performance of its obligations under the Contract.
In all cases where the Contractor has given a notice of a claim for an
extension of time under GCC 40.2, the Contractor shall consult with the
Project Manager in order to determine the steps (if any) which can be
taken to overcome or minimize the actual or anticipated delay. The
Contractor shall there after comply with all reasonable instructions,
which the Project Manager shall give in order to minimize such delay. If
compliance with such instructions shall cause the Contractor to incur
extra costs and the Contractor is entitled to an extension of time under
GCC 40.1, the amount of such extra costs shall be added to the
Contract Price.
41. Suspension 41.1 The Employer may request the Project Manager, by notice to the
Contractor, to order the Contractor to suspend performance of any or all
of its obligations under the Contract. Such notice shall specify the
obligation of which performance is to be suspended, the effective date
of the suspension and the reasons therefor. The Contractor shall
thereupon suspend performance of such obligation, except those
obligations necessary for the care or preservation of the Facilities, until
ordered in writing to resume such performance by the Project Manager.
41.2 If
(a) the Employer has failed to pay the Contractor any sum due under
the Contract within the specified period, has failed to approve any
invoice or supporting documents without just cause pursuant to
the Appendix (Terms and Procedures of Payment) to the
Contract Agreement, or commits a substantial breach of the
Contract, the Contractor may give a notice to the Employer that
requires payment of such sum, with interest thereon as stipulated
in GCC Subclause 12.3, requires approval of such invoice or
supporting documents, or specifies the breach and requires the
Employer to remedy the same, as the case may be. If the
Employer fails to pay such sum together with such interest, fails to
approve such invoice or supporting documents or give its reasons
for withholding such approval, or fails to remedy the breach or
take steps to remedy the breach within 14 days after receipt of the
Contractor’s notice; or
(b) the Contractor is unable to carry out any of its obligations under
the Contract for any reason attributable to the Employer, including
but not limited to the Employer’s failure to provide possession of
or access to the Site or other areas in accordance with GCC
Subclause 10.2, or failure to obtain any governmental permit
necessary for the execution and/or completion of the Facilities,
then the Contractor may by 14 days’ notice to the Employer suspend
performance of all or any of its obligations under the Contract, or reduce
the rate of progress.
rate of progress is reduced pursuant to this GCC Clause 41, then the
Time for Completion shall be extended in accordance with GCC
Subclause 40.1, and any and all additional costs or expenses incurred
by the Contractor as a result of such suspension or reduction shall be
paid by the Employer to the Contractor in addition to the Contract Price,
except in the case of suspension order or reduction in the rate of
progress by reason of the Contractor’s default or breach of the Contract.
41.4 During the period of suspension, the Contractor shall not remove from
the Site any Plant, any part of the Facilities or any Contractor’s
Equipment, without the prior written consent of the Employer.
(a) cease all further work, except for such work as the
Employer may specify in the notice of termination for the
sole purpose of protecting that part of the Facilities already
executed, or any work required to leave the Site in a clean
and safe condition;
42.2.4 The Employer may enter upon the Site, expel the Contractor,
and complete the Facilities itself or by employing any third party.
The Employer may, to the exclusion of any right of the Contractor
over the same, take over and use with the payment of a fair
rental rate to the Contractor, with all the maintenance costs to
the account of the Employer and with an indemnification by the
(a) the Employer has failed to pay the Contractor any sum due
under the Contract within the specified period, has failed to
approve any invoice or supporting documents without just
cause pursuant to the Appendix (Terms and Procedures
of Payment) to the Contract Agreement, or commits a
substantial breach of the Contract, the Contractor may give
a notice to the Employer that requires payment of such
sum, with interest thereon as stipulated in GCC Subclause
12.3, requires approval of such invoice or supporting
documents, or specifies the breach and requires the
Employer to remedy the same, as the case may be. If the
Employer fails to pay such sum together with such interest,
42.4 In this GCC Clause 42, the expression “Facilities executed” shall include
all work executed, Installation Services provided, and all Plant acquired,
or subject to a legally binding obligation to purchase, by the Contractor
and used or intended to be used for the purpose of the Facilities, up to
and including the date of termination.
42.5 In this GCC Clause 42, in calculating any monies due from the Employer to
the Contractor, account shall be taken of any sum previously paid by the
Employer to the Contractor under the Contract, including any advance
payment paid pursuant to the Appendix (Terms and Procedures of
Payment) to the Contract Agreement.
43. Assignment 43.1 Neither the Employer nor the Contractor shall, without the express prior
written consent of the other party which consent shall not be
unreasonably withheld, assign to any third party the Contract or any part
thereof, or any right, benefit, obligation or interest therein or thereunder,
except that the Contractor shall be entitled to assign either absolutely or
by way of charge any monies due and payable to it or that may become
due and payable to it under the Contract.
The Contractor shall also submit any other notices, which are required
by the Contract, and supporting particulars for the claim, all as relevant
to such event or circumstance.
Within 42 days after the Contractor became aware (or should have
become aware) of the event or circumstance giving rise to the claim, or
within such other period as may be proposed by the Contractor and
approved by the Project Manager, the Contractor shall send to the
Project Manager a fully detailed claim, which includes full supporting
particulars of the basis of the claim and of the extension of time and/or
additional payment claimed. If the event or circumstance giving rise to
the claim has a continuing effect,
(c) the Contractor shall send a final claim within 28 days after the
end of the effects resulting from the event or circumstance, or
within such other period as may be proposed by the Contractor
and approved by the Project Manager.
Each payment certificate shall include such amounts for any claim as
have been reasonably substantiated as due under the relevant
provision of the Contract. Unless and until the particulars supplied are
sufficient to substantiate the whole of the claim, the Contractor shall
only be entitled to payment for such part of the claim as he has been
able to substantiate.
The Project Manager shall agree with the Contractor or estimate: (i) the
extension (if any) of the Time for Completion (before or after its expiry)
in accordance with GCC Clause 40, and/or (ii) the additional payment
In the event that the Contractor and the Employer cannot agree on any
matter relating to a claim, either party may refer the matter to the
Dispute Board pursuant to GCC 45 hereof.
The Dispute Board shall comprise, as stated in the SCC, either one or
three suitably qualified persons (“the members”), each of whom shall be
fluent in the language for communication defined in the Contract and
shall be a professional experienced in the type of activities involved in the
performance of the Contract and with the interpretation of contractual
documents. If the number is not so stated and the Parties do not agree
otherwise, the Dispute Board shall comprise three persons, one of
whom shall serve as chairman.
If the Parties have not jointly appointed the Dispute Board 21 days
before the date stated in the SCC and the Dispute Board is to comprise
three persons, each Party shall nominate one member for the approval
of the other Party. The first two members shall recommend and the
Parties shall agree upon the third member, who shall act as chairman.
The agreement between the Parties and either the sole member or
each of the three members shall incorporate by reference the General
Conditions of Dispute Board Agreement contained in the Appendix to
these General Conditions, with such amendments as are agreed
between them.
The terms of the remuneration of either the sole member or each of the
three members, including the remuneration of any expert whom the
Dispute Board consults, shall be mutually agreed upon by the Parties
when agreeing the terms of appointment of the member or such expert
(as the case may be). Each Party shall be responsible for paying one-
half of this remuneration.
(a) the Parties fail to agree upon the appointment of the sole
member of the Dispute Board by the date stated in the first
paragraph of GCC Subclause 45.1;
(b) either Party fails to nominate a member (for approval by the other
Party) of a Dispute Board of three persons by such date;
(c) the Parties fail to agree upon the appointment of the third
member (to act as chairman) of the Dispute Board by such date;
or
then the appointing entity or official named in the SCC shall, upon the
request of either or both of the Parties and after due consultation with
both Parties, appoint this member of the Dispute Board. This
appointment shall be final and conclusive. Each Party shall be
responsible for paying one-half of the remuneration of the appointing
entity or official.
Both Parties shall promptly make available to the Dispute Board all
such additional information, further access to the Site, and appropriate
facilities, as the Dispute Board may require for the purposes of making
a decision on such dispute. The Dispute Board shall be deemed to be
45.5 Arbitration
Unless settled amicably, any dispute in respect of which the Dispute
Board’s decision (if any) has not become final and binding shall be
finally settled by international arbitration. Unless otherwise agreed by
both Parties,
APPENDIXA
1 Definitions
(c) the “Member” who is defined in the Dispute Board Agreement as being
(i) the sole member of the "Dispute Board" and, where this is the case, all references to the
“Other Members” do not apply; or
(ii) one of the three persons who are jointly called the “Dispute Board”(or “dispute board”)
and, where this is the case, the other two persons are called the “Other Members”.
The Employer and the Contractor have entered (or intend to enter) into a contract, which is called the
"Contract" and is defined in the Dispute Board Agreement, which incorporates this Appendix. In the
Dispute Board Agreement, words and expressions which are not otherwise defined shall have the
meanings assigned to them in the Contract.
2 General Provisions
Unless otherwise stated in the Dispute Board Agreement, it shall take effect on the latest of the
following dates:
(b) when the Employer, the Contractor and the Member have each signed the Dispute Board
Agreement; or
(c) when the Employer, the Contractor and each of the Other Members (if any) have respectively
each signed a dispute board agreement.
This employment of the Member is a personal appointment. At any time, the Member may give not
less than 70 days’ notice of resignation to the Employer and to the Contractor, and the Dispute Board
Agreement shall terminate upon the expiry of this period.
3 Warranties
The Member warrants and agrees that he/she is and shall be impartial and independent of the
Employer, the Contractor and the Project Manager. The Member shall promptly disclose, to each of
them and to the Other Members (if any), any fact or circumstance which might appear inconsistent
with his/her warranty and agreement of impartiality and independence.
When appointing the Member, the Employer and the Contractor relied upon the Member’s
representations that he/she is
(a) experienced in the work, which the Contractor is to carry out under the Contract,
(a) have no interest financial or otherwise in the Employer, the Contractor or the Project Manager,
nor any financial interest in the Contract except for payment under the Dispute Board
Agreement;
(b) not previously have been employed as a consultant or otherwise by the Employer, the
Contractor, or the Project Manager, except in such circumstances as were disclosed in writing
to the Employer and the Contractor before they signed the Dispute Board Agreement;
(c) have disclosed in writing to the Employer, the Contractor, and the Other Members (if any),
before entering into the Dispute Board Agreement and to his/her best knowledge and
recollection, any professional or personal relationships with any director, officer, or employee of
the Employer, the Contractor, or the Project Manager, and any previous involvement in the
overall project of which the Contract forms part;
(d) not, for the duration of the Dispute Board Agreement, be employed as a consultant or otherwise
by the Employer, the Contractor, or the Project Manager, except as may be agreed in writing by
the Employer, the Contractor, and the Other Members (if any);
(e) comply with the annexed procedural rules and with GCC Subclause 45.3;
(f) not give advice to the Employer, the Contractor, the Employer’s Personnel, or the Contractor’s
Personnel concerning the conduct of the Contract, other than in accordance with the annexed
procedural rules;
(g) not while a Member enter into discussions or make any agreement with the Employer, the
Contractor, or the Project Manager regarding employment by any of them, whether as a
consultant or otherwise, after ceasing to act under the Dispute Board Agreement;
(h) ensure his/her availability for all site visits and hearings as are necessary;
(i) become conversant with the Contract and with the progress of the Facilities (and of any other
parts of the project of which the Contract forms part) by studying all documents received, which
shall be maintained in a current working file;
(j) treat the details of the Contract and all the Dispute Board’s activities and hearings as private
and confidential, and not publish or disclose them without the prior written consent of the
Employer, the Contractor, and the Other Members (if any); and
(k) be available to give advice and opinions on any matter relevant to the Contract when requested
by both the Employer and the Contractor, subject to the agreement of the Other Members (if
any).
The Employer, the Contractor, the Employer’s Personnel and the Contractor’sPersonnel shall not
request advice from or consultation with the Member regarding theContract, otherwise than in the
normal course of the Dispute Board’s activities under the Contract and the Dispute Board Agreement.
The Employer and the Contractor shall be responsible for compliance with this provision, by the
Employer’s Personnel and the Contractor’s Personnel respectively.
The Employer and the Contractor undertake to each other and to the Member that the Member shall
not, except as otherwise agreed in writing by the Employer, the Contractor, the Member and the
Other Members (if any)
(b) be called as a witness to give evidence concerning any dispute before arbitrator(s) appointed
for any arbitration under the Contract; or
(c) be liable for any claims for anything done or omitted in the discharge or purported discharge of
the Member’s functions, unless the act or omission is shown to have been in bad faith.
The Employer and the Contractor hereby jointly and severally indemnify and hold the Member
harmless against and from claims from which he is relieved from liability under the preceding
paragraph.
Whenever the Employer or the Contractor refers a dispute to the Dispute Board under GCC
Subclause 45.3, which will require the Member to make a site visit and attend a hearing, the
Employer or the Contractor shall provide appropriate security for a sum equivalent to the reasonable
expenses to be incurred by the Member. No account shall be taken of any other payments due or
paid to the Member.
6 Payment
The Member shall be paid as follows, in the currency named in the Dispute Board Agreement:
(a) a retainer fee per calendar month, which shall be considered as payment in full for
(i) being available on 28 days’ notice for all site visits and hearings;
(ii) becoming and remaining conversant with all project developments and maintaining
relevant files;
(iii) all office and overhead expenses including secretarial services, photocopying and office
supplies incurred in connection with his duties; and
(iv) all services performed hereunder except those referred to in sub-paragraphs (b) and (c)
of this Clause.
The retainer fee shall be paid with effect from the last day of the calendar month in which the
Dispute Board Agreement becomes effective; until the last day of the calendar month in which
the Taking-Over Certificate is issued for the whole of the Works.
With effect from the first day of the calendar month following the month in which Taking-Over
Certificate is issued for the whole of the Works, the retainer fee shall be reduced by one-third.
This reduced fee shall be paid until the first day of the calendar month in which the Member
resigns or the Dispute Board Agreement is otherwise terminated.
(i) each day or part of a day up to a maximum of 2 days’ travel time in each direction for the
journey between the Member’s home and the site, or another location of a meeting with
the Other Members (if any);
(ii) each working day on site visits, hearings, or preparing decisions; and
(c) all reasonable expenses, including necessary travel expenses (air fare in less than first class,
hotel and subsistence and other direct travel expenses) incurred in connection with the
Member’s duties, as well as the cost of telephone calls, courier charges, facsimiles, and
telexes, and use of the internet: a receipt shall be required for each item in excess of 5%of the
daily fee referred to in sub-paragraph (b) of this Clause;
(d) any taxes properly levied in the Country on payments made to the Member (unless a national
or permanent resident of the Country) under this Clause 6.
The retainer and daily fees shall be as specified in the Dispute Board Agreement. Unless it
specifies otherwise, these fees shall remain fixed for the first 24 calendar months, and shall
thereafter be adjusted by agreement between the Employer, the Contractor and the Member, at
each anniversary of the date on which the Dispute Board Agreement became effective.
If the parties fail to agree on the retainer fee or the daily fee, the appointing entity or official
named in the SCC shall determine the amount of the fees to be used.
The Member shall submit invoices for payment of the monthly retainer and air fares quarterly in
advance. Invoices for other expenses and for daily fees shall be submitted following the
conclusion of a site visit or hearing. All invoices shall be accompanied by a brief description of
activities performed during the relevant period and shall be addressed to the Contractor.
The Contractor shall pay each of the Member’s invoices in full within 56 calendar days after
receiving each invoice and shall apply to the Employer (in the Statements under the Contract)
for reimbursement of one-half of the amounts of these invoices. The Employer shall then pay
the Contractor in accordance with the Contract.
If the Contractor fails to pay to the Member the amount to which he/she is entitled under the
Dispute Board Agreement, the Employer shall pay the amount due to the Member and any
other amount which may be required to maintain the operation of the Dispute Board; and
without prejudice to the Employer’s rights or remedies. In addition to all other rights arising from
this default, the Employer shall be entitled to reimbursement of all sums paid in excess of one-
half of these payments, plus all costs of recovering these sums and financing charges
calculated at the rate specified in accordance with GCC Subclause 12.3.
If the Member does not receive payment of the amount due within 70 days after submitting a
valid invoice, the Member may (i) suspend his/her services (without notice) until the payment is
received, and/or (ii) resign his/her appointment by giving notice under Clause 7.
7 Termination
At any time: (i) the Employer and the Contractor may jointly terminate the Dispute Board Agreement
by giving 42 days’ notice to the Member, or (ii) the Member may resign as provided for in Clause 2.
If the Member fails to comply with the Dispute Board Agreement, the Employer and the Contractor
may, without prejudice to their other rights, terminate it by notice to the Member. The notice shall take
effect when received by the Member.
If the Employer or the Contractor fails to comply with the Dispute Board Agreement, the Member may,
without prejudice to his other rights, terminate it by notice to the Employer and the Contractor. The
notice shall take effect when received by them both.
Any such notice, resignation and termination shall be final and binding on the Employer, the
Contractor and the Member. However, a notice by the Employer or the Contractor, but not by both,
shall be of no effect.
If the Member fails to comply with any of his obligations under Clause 4 concerning his impartiality or
independence in relation to the Employer or the Contractor, he/she shall not be entitled to any fees or
expenses hereunder and shall, without prejudice to their other rights, reimburse each of the Employer
and the Contractor for any fees and expenses received by the Member and the Other Members (if
any), for proceedings or decisions (if any) of the Dispute Board which are rendered void or ineffective
by the said failure to comply.
9 Disputes
Any dispute or claim arising out of or in connection with this Dispute Board Agreement, or the breach,
termination or invalidity thereof, shall be finally settled by institutional arbitration. If no other arbitration
institute is agreed, the arbitration shall be conducted under the Rules of Arbitration of the International
Chamber of Commerce by one arbitrator appointed in accordance with these Rules of Arbitration.
1. Unless otherwise agreed by the Employer and the Contractor, the Dispute Board shall visit the
site at intervals of not more than 140 days, including times of critical construction events, at the
request of either the Employer or the Contractor. Unless otherwise agreed by the Employer, the
Contractor, and the Dispute Board, the period between consecutive visits shall not be less than
70 days, except as required to convene a hearing as described below.
2. The timing of and agenda for each site visit shall be as agreed jointly by the Dispute Board, the
Employer, and the Contractor, or in the absence of agreement, shall be decided by the Dispute
Board. The purpose of site visits is to enable the Dispute Board to become and remain
acquainted with the progress of the Works and of any actual or potential problems or claims,
and, as far as reasonable, to prevent potential problems or claims from becoming disputes.
3. Site visits shall be attended by the Employer, the Contractor, and the Project Manager and
shall be coordinated by the Employer in cooperation with the Contractor. The Employer shall
ensure the provision of appropriate conference facilities and secretarial and copying services.
At the conclusion of each site visit and before leaving the site, the Dispute Board shall prepare
a report on its activities during the visit and shall send copies to the Employer and the
Contractor.
4. The Employer and the Contractor shall furnish to the Dispute Board one copy of all documents
which the Dispute Board may request, including Contract documents, progress reports,
variation instructions, certificates, and other documents pertinent to the performance of the
Contract. All communications between the Dispute Board and the Employer or the Contractor
shall be copied to the other Party. If the Dispute Board comprises three persons, the Employer
and the Contractor shall send copies of these requested documents and these communications
to each of these persons.
5. If any dispute is referred to the Dispute Board in accordance with GCC Subclause 45.3, the
Dispute Board shall proceed in accordance with GCC Subclause 45.3 and these Guidelines.
Subject to the time allowed to give notice of a decision and other relevant factors, the Dispute
Board shall
(a) act fairly and impartially as between the Employer and the Contractor, giving each of
them a reasonable opportunity of putting his case and responding to the other’s case;
and
(b) adopt procedures suitable to the dispute, avoiding unnecessary delay or expense.
6. The Dispute Board may conduct a hearing on the dispute, in which event it will decide on the
date and place for the hearing and may request that written documentation and arguments from
the Employer and the Contractor be presented to it prior to or at the hearing.
7. Except as otherwise agreed in writing by the Employer and the Contractor, the Dispute Board
shall have power to adopt an inquisitorial procedure, to refuse admission to hearings or
audience at hearings to any persons other than representatives of the Employer, the
Contractor, and the Project Manager, and to proceed in the absence of any party who the
Dispute Board is satisfied received notice of the hearing; but shall have discretion to decide
whether and to what extent this power may be exercised.
8. The Employer and the Contractor empower the Dispute Board, among other things, to
(b) decide upon the Dispute Board’s own jurisdiction, and as to the scope of any dispute
referred to it;
(c) conduct any hearing as it thinks fit, not being bound by any rules or procedures other
than those contained in the Contract and these Guidelines;
(d) take the initiative in ascertaining the facts and matters required for a decision;
(f) decide upon the payment of financing charges in accordance with the Contract;
(g) decide upon any provisional relief such as interim or conservatory measures;
(h) open up, review and revise any certificate, decision, determination, instruction, opinion or
valuation of the Project Manager, relevant to the dispute; and
(i) appoint, should the Dispute Board so consider necessary and the Parties agree, a
suitable expert at the cost of the Parties to give advice on a specific matter relevant to the
dispute.
9. The Dispute Board shall not express any opinions during any hearing concerning the merits of
any arguments advanced by the Parties. Thereafter, the Dispute Board shall make and give its
decision in accordance with GCC Subclause 45.3, or as otherwise agreed by the Employer and
the Contractor in writing. If the Dispute Board comprises three persons
(a) it shall convene in private after a hearing, in order to have discussions and prepare its
decision;
(b) it shall endeavour to reach a unanimous decision: if this proves impossible the applicable
decision shall be made by a majority of the Members, who may require the minority
Member to prepare a written report for submission to the Employer and the Contractor;
and
(c) if a Member fails to attend a meeting or hearing, or to fulfil any required function, the
other two Members may nevertheless proceed to make a decision, unless
(i) either the Employer or the Contractor does not agree that they do so, or
(ii) the absent Member is the chairman and he/she instructs the other Members to not
make a decision.
Table of Clauses
1. Definitions ....................................................................................................................................8-2
1. Definitions
The Employer is: Nepal Electricity Authority
The Project Manager is: Laxmi Narayan Mukhiya, Project Management Directorate
The Bank is: Asian Development Bank
Country of Origin: Most recent list of eligible countries obtainable from
www.adb.org/about/members
5.1 The Contract shall be interpreted in accordance with the laws of: Nepal
7. Scope of Facilities
7.3 The Contractor agrees to supply spare parts for a period of years: 5 years
8.1 The Contractor shall commence work on the Facilities within 30 days from the Effective
Date for determining Time for Completion as specified in the Contract Agreement.
8.2 The Time for Completion of the whole of the Facilities shall be 3 years from the Effective
Date as described in the Contract Agreement.
9. Contractor Responsibilities:
“9.8 (c ) Within 28 days of the Commencement Date the Contractor shall submit a
detailed Site Specific Environmental Management Plan (SSEMP) for the Engineer’s no
objection showing how he/she intends to comply with environmental laws and regulations
and other specific requirements prescribed in the Contract, addressing all the monitoring
and mitigation measures set forth in the Environmental Impact Assessment (“EIA”) and the
Environmental Management Plan (“EMP”) of the project attached in Section 6- Employer’s
Requirements. Work shall not commence on the Site until the no objection of SSEMP has
been obtained from the Engineer and is being implemented. Such acceptance by the
Engineer shall not relieve the Contractor of any of his obligations or responsibilities under
the Contract.
The Contractor shall (a) establish an operational system for managing environmental
impacts, (b) comply with the approved SSEMP and any corrective or preventative actions
set out in safeguards monitoring reports that the Employer will prepare from time to time to
monitor the implementation of the project EMP through the SSEMP, (c) allocate the budget
required to ensure that such measures, requirements and actions are carried out, (d)
submit semi-annual reports on the compliance of such measures to the Employer.
Where unanticipated environmental risks or impacts become apparent during the Contract,
the Contractor is required to update the SSEMP to outline the potential impacts to site
works and associated mitigation measures for the Engineer’s approval”.
11.2 The Contract Price shall be adjusted in accordance with the provisions of Appendix 2
(Price Adjustment) to the Contract Agreement.
13. Securities
13.3.1 The amount of performance security, as a percentage of the Contract Price for the
Facility or for the part of the Facility for which a separate Time for Completion is
provided, shall be: 10% of the Contract Price and , if required , additional amount due to
seriously unbalanced of frontloaded bid(in accordance with ITB 39.5) and/or abnormally
low bid (In accordance with ITB 40.4)
13.3.2 The performance security shall be in the form of the Bank Guarantee issued as per form
included in Section 9 (Contract Forms). Bank Guarantee issued by a bank outside
Nepal must be counter guaranteed by a Commercial Bank in Nepal.
13.3.3 During the Defect Liability Period, the performance security as per clause 13.3.1 shall
not be reduced on the date of the Operational Acceptance.
13.3.3 During the extended defect liability period, the performance security shall be reduced to
10% of the value of the component covered by the extended defect liability to cover the
Contractor’s extended defect liability in accordance with the provision in the SCC,
pursuant to GCC Sub clause 27.10.
duties and other charges imposed outside the Employer's country on the
production, manufacture, sale and transport of the Contractor's Equipment, Plant,
Materials and supplies to be used on or furnished under the Contract, and on the
services performed under the Contract.
2. In Nepal
General:
(a) Unless otherwise specifically declared in the contract documents, the prices
bid by the Contractor and its suppliers and subcontractors shall include
business taxes and other taxes that may be levied in accordance with the
laws and regulations in force or in effect in Nepal as of 28 days prior to the
closing date for submission of tenders in the Employer's country on the
Equipment, Plant, Materials and Supplies (permanent, temporary and
consumables) acquired for the purpose of the Contract and on the services
performed under the Contract. Whatsoever provisions made in the Contract
document shall not relieve the Contractor, its suppliers and subcontractors
from their responsibility to pay income tax that may be levied in the
Employer's country on profits made by the Contractor, its suppliers and
subcontractors in respect of the Contract.
(b) Value Added Tax (VAT): the Contractor, sub-contractor or its nominated sub-
contractor shall be eligible for refund on all imported equipment and
materials to be supplied and delivered exclusively for use in the Project.
Import License:
The Contractor shall inform the Employer and the Project Manager in writing
the details of the equipment and materials to be imported into Nepal for use
on the Works at least 56 days prior to arrival of shipment at disembarkation
port, and shall submit a formal written request for assistance from the
Employer for importation processing. The Employer will assist the Contractor
to obtain necessary permits for import of such equipment and materials into
Nepal. Import license fees or any other charges shall be at the cost of the
Contractor. The Contractor shall be responsible for transport from the Port of
disembarkation to the Site or location of the Works. The Contractor shall be
fully responsible to determine these rates and the amount payable at the time
of preparing tender document and include such costs in its bids. In failing to
do so, the Employer shall not be liable to pay such costs and the Contractor
shall pay such charges as local or any customs authorities en-route may
impose, which will not be an eligible item for refund from the Employer.
(b) Any plant, materials or supplies imported by the Contractor for the
performance of the Works but not incorporated in the Works shall be
taken out of Nepal within 90 (Ninety) days from the date of issuance of
the Performance Certificate. If the Contractor disposes off or consumes
any equipment, spare parts, materials or supplies within Nepal, it shall
pay all customs duties, VAT, income tax on the sales proceeds and taxes
applicable on such items under the laws and regulation of Nepal in force.
(c) Equipment, plant, materials and supplies, imported by the Contractor for
execution of the Works, shall be subject to payment of customs duty at a
special rate of one percent (1%) or as per the prevailing laws, rules and
regulations of Nepal of CIP or Customs entry point value. This customs
duty shall be paid by the Contractor at the time of import and will be
reimbursed by the Employer to the Contractor upon submission of the
original receipt issued by the Customs Department. VAT shall be
exempted on all imported materials & equipment purchased for the use in
the Works (shall be reimbursed by the Employer in case the Employer is
unable to avail exempt facility)
(f) Income tax assessed in accordance with the prevailing Income Tax Act of
Nepal and as per the provision of any specific Double Taxation
Agreement, shall be imposed on the Contractor, its sub-contractors and
nominated sub- contractors. An advance income tax as per the prevailing
income Tax Act and Finance Act shall be deducted from the monthly
progress payment of the Contractor.
(g) The Contractor shall pay all duties, taxes, fees and contributions levied in
Nepal in Nepalese Rupees as directed by the relevant governmental
department or office, or any other local statutory agency or body in
accordance with the relevant rules and regulations.
(j) Other local fees and charges (toll taxes) shall be applied in accordance
with the prevailing laws and regulations of Nepal.
22. Installation
22.2 Labor
22.2.4 Rates of Wages and Conditions of Labor
Add the following sub item 22.2.4 (c):
(c) The Contractor shall follow all applicable labor laws of Nepal. The Contractor shall (a)
not use children as labor; (b) follow legally mandated provisions of labor, health, safety,
sanitation, and welfare and working conditions; and (c) take steps to ensure priority
employment for female headed households. The Contractor shall provide enabling
working conditions for women workers. Breach of these provisions by the Contractor
shall cause termination of the contract." Add the following sub item 22.2.4 (d)
(d) The Contractor shall not differentiate wages between men and women for work of equal
value. The Contractor shall not make employment decisions based upon personal
characteristics unrelated to job requirements. The Contractor shall base the
employment relationship upon equal opportunity and fair treatment, and shall not
discriminate with respect to aspects of the employment relationship, including
recruitment and hiring, compensation (including wages and benefits), working
conditions and terms of employment discipline
22.2.5 Working Hours
(a) Normal working hours are: 10 am to 5 pm except on Saturday (Off Day)
however depending upon the circumstances and criticality of the work nature,
working hours may be changed. The proposed different or extended or
extended working hours shall, at all times, be compliant with the Country’s
Labor Legislation
The Contractor shall include in the program to be submitted for the execution of
the Facilities under Subclause 18.2 an alleviation program for Site staff and labor
and their families in respect of STI and STD including HIV/AIDS. The STI, STD
and HIV/AIDS alleviation program shall indicate when, how and at what cost the
Contractor plans to satisfy the requirements of this Subclause and the related
specification. For each component, the program shall detail the resources to be
provided or utilized and any related subcontracting proposed. The program shall
also include provision of a detailed cost estimate with supporting documentation.
Payment to the Contractor for the preparation and implementation this program
shall not exceed the amount dedicated for this purpose.
(e) The Contractor shall conduct awareness campaign on anti-human trafficking, shall
develop information and print material on anti-human trafficking, and shall
distribute to all construction workers and the community in the Project areas
throughout the Project implementation period.
(f) The Contractor is responsible for establishment of preventive and emergency
preparedness and response measures to avoid, and where avoidance is not
possible, to minimize, adverse impacts and risks of the construction site work to
the health and safety of local communities.
Within 28 days of the Commencement Date the Contractor shall submit a detailed
Site Specific Health and Safety Management Plan (SSHSMP) for the Engineer’s
no objection showing how he/she intends to comply with the local Health and
Safety laws and regulations and other specific requirements prescribed in the
Contract, taking into account the Supplementary Information in Section 6-
Employer’s Requirements. Work shall not commence on the Site until the
confirmation of no objection of the SSHSMP has been obtained from the Engineer
and is being implemented. Such confirmation of no objection by the Engineer
shall not relieve the Contractor of any of his/her obligations or responsibilities
under the Contract.
Where unanticipated health and safety hazards or risks become apparent during
the Contract, the Contractor is required to update the SSHSMP to outline the
potential impacts to site works and associated mitigation measures for the
Engineer’s no objection.
The Contractor shall comply with the approved SSHSMP and any corrective or
preventative actions set out in safeguards monitoring reports that the Employer
will prepare from time to time to monitor the implementation of the project EMP
through the SSHSMP.
In particular, the Contractor is required to provide all personnel on site including
Employer’s Personnel and visitors with personal protective equipment, including
protection for feet (safety boots), head, eyes, ears (safety helmets) and hands,
etc. in accordance with the Contractor’s SSHSMP. The Contractor should ensure
that his Page 7 of 7 Subcontractors comply with the SSHSMP and provide all
such necessary equipment to their personnel.
The Contractor shall bear the costs to ensure that such measures, requirements
and actions are carried out.
The Contractor shall submit semi-annual reports on the compliance of such
measures to the Employer.
26.3 No bonus will be given for earlier Completion of the Facilities or part thereof.
27.10 The critical components covered under the extended defect liability are GIS,
Power/Autotransformers, Substation Automation System (SAS) and the period shall be
three (3) years.
31.5 In the fourth line, replace " Completion of the Facilities" by "Operational Acceptance of
the Facilities"
45.1 The Dispute Board shall be appointed within 28 days after the Effective Date.
The Dispute Board shall be one sole member.
List of potential Dispute Board members is: None
45.2 Appointment (if not agreed) to be made by: Nepal Council of Arbitration (NEPCA)
(b) Contracts with contractors being nationals of the Employer’s country: As per
procedures of NEPCA
46. Eligibility
46.1 The Contractor shall have the nationality of an ADB member country. The Contractor
shall be deemed to have the nationality of a country if the Contractor is a citizen or is
constituted, incorporated, or registered, and operates in conformity with the provisions
of the laws of that country. This criterion shall also apply to the determination of the
nationality of proposed subcontractors or suppliers for any part of the Contract including
related services.
46.2 The materials, equipment and services to be supplied under the Contract shall have
their origin in eligible source countries and all expenditures under the Contract will be
limited to such materials, equipment, and services. At the Employer’s request, the
Contractor may be required to provide evidence of the origin of materials, equipment
and services.
46.3 For purposes of SCC 46.2, “origin” means the place where the materials and equipment
are mined, grown, produced or manufactured, and from which the services are
provided. Materials and equipment are produced when, through manufacturing,
processing, or substantial or major assembling of components, a commercially
recognized product results that differs substantially in its basic characteristics or in
purpose or utility from its components.
47.1(a) “The Contractor shall comply with all applicable national, provincial, and local environment
laws and regulations. The Contractor shall (a) establish an operational system for
managing environmental impacts, (b) carry out all of the monitoring and mitigation
measures set forth in the Initial Environmental Examination ("IEE") and Environmental
Management Plan ("EMP") (c) comply with any corrective or preventative actions set out in
safeguards monitoring reports that the Employer will prepare from time to time to monitor
implementation of the initial environmental examination and the environmental
management plan, and (d) allocate the budget required to ensure that such measures are
carried out. The Contractor shall submit semi-annual reports on the carrying out of such
measures to the Employer.
(b) The Contractor shall comply with (i) the measures and requirements set forth in the
Resettlement and Indigenous Peoples Plan (RIPP) to the extent it concerns impacts on
affected people during construction; and (ii) any corrective or preventive actions set out in
safeguards monitoring reports that the Employer will prepare from time to time to monitor
implementation of the resettlement plan. The Contractor shall allocate a budget for
compliance with these measures, requirements and actions.
(c) The Contractor shall provide the Employer with a written notice of any unanticipated
environmental, resettlement or indigenous people risks or impacts that arise during
construction, implementation or operation of the Project that were not considered in the
IEE, the EMP and the RIPP.
(d) The Contractor shall adequately record the condition of the roads, agricultural land, and
other infrastructure prior to starting to transport materials and construction; and
(e) Upon the completion of construction, the Contractor shall fully reinstate pathways, other
local infrastructure, and agricultural land to at least their pre-project condition as recorded
by the Contractor in consonance with its obligation in the subparagraph (d).
Table of Forms
[date of notification]
This is to notify you of our intention to award the contract [ insert name of the contract and identification
number, as given in the Bid Data Sheet]. You have [insert number of days as specified in ITB 42.1 of the BDS] days,
from the date of this notification to (i) request for a debriefing in relation to the evaluation of your Bid,
and/or (ii) submit a bidding-related complaint in relation to the intention for award of contract, in
accordance with the procedures specified in ITB 47.1.
1. List of Bidders
Bid Price as Read Out at
Name of Bidder Evaluated Bid Price
Opening
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………
Notification of Award
[Employer's letterhead]
Letter of Acceptance
[date]
This is to notify you that your Bid dated [date] for execution of the [name of the contract and identification
number, as given in the Bid Data Sheet] for the Contract Price in the aggregate of [ amounts in words and figures]
[name of currency], as corrected and modified in accordance with the Instructions to Bidders is hereby
accepted by our Agency.
You are requested to furnish the Performance Security within 28 days in accordance with the
Conditions of Contractand any additional security required as a result of the evaluation of your bid,
using for that purpose one of the Performance Security Forms included in Section 9 (Contract Forms)
of the Bidding Document.
Authorized Signature:
Name of Agency:
Contract Agreement
THIS AGREEMENT made on the [insert number] day of [insert month], [insert year],
BETWEEN
(1) [name of the employer], a corporation incorporated under the laws of [country of the Employer] and
having its principal place of business at [address of the Employer] (hereinafter called “the Employer”),
and (2) [name of the contractor], a corporation incorporated under the laws of [country of the contractor]
and having its principal place of business at [address of the contractor] (hereinafter called “the
Contractor”).
WHEREAS the Employer desires to engage the Contractor to design, manufacture, test, deliver,
install, complete and commission certain Facilities, viz. [list of facilities] (“the Facilities”) and the
Contractor have agreed to such engagement upon and subject to the terms and conditions
hereinafter appearing.
1
Tables of Adjustment Data may be added if the contract provides for price adjustment (see GCC 11).
In the event that the amount payable under Schedule No. 1 is adjusted
in accordance with GCC 11.2 or with any of the other terms of the
Contract, the Employer shall arrange for the documentary credit to be
amended accordingly
(a) This Contract Agreement has been duly executed for and on
behalf of the Employer and the Contractor.
(c) The Employer has paid the Contractor the advance payment.
(d) The Contractor has been advised that the documentary credit
referred to in Article 2.2 above has been issued in its favor.
Each party shall use its best efforts to fulfill the above conditions for
which it is responsible as soon as practicable.
3.2 If the conditions listed under 3.1 are not fulfilled within 2 months from
the date of this Contract notification because of reasons not
attributable to the Contractor, the parties shall discuss and agree on an
equitable adjustment to the Contract Price and the Time for
Completion and/or other relevant conditions of the Contract.
_________________________________
2
Or Uniform Customs and Practice for Documentary Credits 2007 Revision, ICC Publication No. 600 (or the latest version).
3.3 If conditions 3.1 (c) is not fulfilled 2 months from the date of Contract
notifications due to reasons attributable to the Contractor, the sixty first
day after Contract notification shall be the Contract Effective Date"
Article 4 4.1 The address of the Employer for notice purposes, pursuant to GCC 4.1
Communications is: [Employer's address].
4.2 The address of the Contractor for notice purposes, pursuant to GCC
4.1 is: [Contractor's address].
Article 5. 5.1 The Appendixes listed in the attached List of Appendixes shall be
Appendixes deemed to form an integral part of this Contract Agreement.
5.2 Reference in the Contract to any Appendix shall mean the Appendixes
attached hereto, and the Contract shall be read and construed
accordingly.
IN WITNESS WHEREOF the Employer and the Contractor have caused this Agreement to be duly
executed by their duly authorized representatives the day and year first above written.
[Signature]
[Title]
in the presence of
[Signature]
[Title]
[Signature ]
[ Title]
in the presence of
[Signature ]
[ Title]
APPENDIXES
In accordance with the provisions of GCC Clause 12 (Terms of Payment), the Employer shall pay the
Contractor in the following manner and at the following times, based on the Price Breakdown given in
the section on Price Schedules. Payments will be made in the currencies quoted by the Bidder
unless otherwise agreed between the parties. Applications for payment in respect of part deliveries
may be made by the Contractor as work proceeds.
Schedule No. 1 - Plant and Mandatory Spare Parts Supplied from Abroad
In respect of plant and mandatory spare parts supplied from abroad, the following payments shall be
made:
Ten percent (10%) of the total CIP amount as an advance payment against receipt of invoice and an
irrevocable advance payment security for the equivalent amount made out in favor of the Employer.
The advance payment security may be reduced in proportion to the value of the plant and mandatory
spare parts delivered to the site, as evidenced by delivery documents.
Seventy Five percent (75%) of the total or pro rata CIP amount upon Incoterms “CIP” within forty-five
(45) days after receipt of invoice and shipping documents(Site Delivery Certificate, Bill of lading,
Performa invoice etc and other document indicated in the Letter of Credit or other document). In the
event that shipping is delayed upon the written instruction of the Employer for more than twenty-eight
(28) days beyond the date shown in the Program of Performance provided in accordance with GCC
Sub-Clause 18.2, the Contractor may make application for this part of the payment against
warehouse receipts, provided always that the plant and equipment are ready for shipment on the date
shown in the said Program.
Ten percent (10%) of the total or pro rata CIP or amount upon issue of the Completion Certificate,
within 45 days after receipt of invoice.
Five percent (5%) of the total or pro rata CIP or amount upon issue of the Operational Acceptance
Certificate, within 45 days after receipt of invoice.
Schedule No. 2 - Plant and Mandatory Spare Parts Supplied from Within the Employer’s
Country
In respect of plant and mandatory spare parts supplied from within the Employer’s country, the
following payments shall be made:
Ten percent (10%) of the total EXW amount as an advance payment against receipt of invoice, and
an irrevocable advance payment security for the equivalent amount made out in favor of the
Employer. The advance payment security may be reduced in proportion to the value of the plant and
mandatory spare parts delivered to the site, as evidenced by delivery documents.
Seventy five percent (75%) of the total or pro rata EXW amount upon Incoterm “Ex-Works,” upon
delivery to the site within 45 days after receipt of invoice.
Ten percent (10%) of the total or pro rata EXW amount upon issue of the Completion Certificate,
within 45 days after receipt of invoice.
Five percent (5%) of the total or pro rata EXW amount upon issue of the Operational Acceptance
Certificate, within 45 days after receipt of invoice.
Ten percent (10%) of the total design services amount as an advance payment against receipt of
invoice and an irrevocable advance payment security for the equivalent amount made out in favor of
the Employer.
Ninety percent (90%) of the total or pro rata design services amount upon acceptance of design by
the Project Manager within 45 days after receipt of invoice.
Ten percent (10%) of the total installation and other services amount as an advance payment against
receipt of invoice and an irrevocable advance payment security for the equivalent amount made out in
favor of the Employer. The advance payment security may be reduced in proportion to the value of
work performed by the Contractor as evidenced by the invoices for installation services.
Seventy five percent (75%) of the measured value of work performed by the Contractor, as identified
in the said Program of Performance, during the preceding month, as evidenced by the Employer’s
authorization of the Contractor’s application, will be made monthly within 45 days after receipt of
invoice.
Ten percent (10%) of the total or pro rata value of installation services performed by the Contractor as
evidenced by the Employer’s authorization of the Contractor’s monthly applications, upon issue of the
Completion Certificate, within 45 days after receipt of invoice.
Five percent (5%) of the total or pro rata value of installation services performed by the Contractor as
evidenced by the Employer’s authorization of the Contractor’s monthly applications, upon issue of the
Operational Acceptance Certificate, within 45 days after receipt of invoice.
In the event that the Employer fails to make any payment on its respective due date, the Employer
shall pay to the Contractor interest on the amount of such delayed payment at the rate of 0.25 % per
month for period of delay until payment has been made in full.
The procedures to be followed in applying for certification and making payments shall be as follows:
a. Local Currency
Eligible claims for local currency payment shall be made through withdrawal application (WA).
Invoices shall be submitted to the Project Office which shall verify the completed jobs/works and
certify the invoice for payment. The Project Office shall then recommend certified invoice for their
payment to Project Management Directorate Office, which shall thenforward to ADB for payment.
b. Foreign Currency
Foreign Currency payment shall be made through Letter of Credit (L/C). The charges for
establishment of letter of credit within the territory of Nepal shall be borne by the Employer, and
outside Nepal shall be borne by the Contractor.
c. Invoices
The Contractor shall submit the invoices (original) in triplicate to the Project Office whenever an
invoice is required to be submitted as per provision of the Contract. Invoices should be duly certified
by Project Manager.
1.2 Also, since advance payment will be made to the Contractor, price adjustment will not be allowed on
this amount and accordingly, price adjustment shall be permitted for 90% (if 10% advance is taken)
cost of the Material only.
1.3 The Base date for indices, for the purpose of price adjustment, shall be taken as 28 days prior to the
deadline for submission of the Bid.
For final date for indices, for price adjustment, the same will be governed by 60 days prior to the
date of dispatch of different lot, which is committed by the Contractor for various plants in the bar
chart (work Schedule) and approved & accepted by the employer at the time of signing of contract
agreement.
The date of adjustment shall be the midpoint of the period of manufacture or installation of the
component or Plant.
Prices payable to the Contractor, in accordance with the Contract, shall be subject to adjustment
during performance of the Contract to reflect changes in the cost of labor and material components, in
accordance with the following formula:
C1 F1
P1 P0 (a b c ) P0
C0 F0
in which:
Power Transformer 64 29 7
Price Indexes:
C0, C1 = LME price of Copper Wire bars as applicable on the base date and the date for
adjustment, respectively
F0, F1= LME price of Steel bars as applicable on the base date and the date for adjustment,
respectively
Al 1 S1
P1 P0 (a b c ) P0
Al 0 S0
in which:
Transmission Line
Conductor (ACSR
25 55 20
"BEAR" and ACSR
"MOOSE")
Price Indexes:
Al0, Al1 = Average LME price of aluminium as applicable on the base date and the date for
adjustment, respectively
S0, S1= Average LME price of Steel bars as applicable on the base date and the date for
adjustment, respectively
S1 Zn1
P1 P0 (a b c ) P0
S0 Zn0
in which:
Transmission Line
34 57 9
Tower
Price Indexes:
S0, S1 = Average LME price of Steel bars as applicable on the base date and the date for
adjustment, respectively
Zn0, Zn1= Average LME price of zinc as applicable on the base date and the date for adjustment,
respectively
(a) Price adjustment will be applied only if the resulting increment or decrement is more
than 10% of the base material Price of the Copper and Steel for Power Transformer,
Aluminium and Steel for the Transmission Line Conductor and Steel and Zinc for the
Transmission Line Tower. And the price will be adjusted by deducting 10% of
increased or decreased amount from the base material price.
(b) No price adjustment shall be payable on the portion of the Contract Price paid to the
contractor as Advance payment as indicated above in clause 1.2.
(c) No price increase will be allowed beyond the original dispatch date of different
lots of equipment unless covered by an extension of time awarded by the
Employer under the terms of the Contract. No price increase will be allowed for
periods of delay for which the Contractor is responsible. The Employer will,
however, be entitled to any price decrease occurring during such periods of
delay.
(d) If the currency in which the Contract price, P0, is expressed is different from the
currency of the materials indexes, a correction factor will be applied to avoid
incorrect adjustments of the Contract price. The correction factor shall
correspond to the ratio of exchange rates between the two currencies on the
base date and the date for adjustment as defined above.
In accordance with the provisions of GCC Clause 34, the Contractor shall at its expense take out and
maintain in effect, or cause to be taken out and maintained in effect, during the performance of the
Contract, the types of insurance set forth below in the sums and with the deductibles and other
conditions specified. The identity of the insurers and the form of the policies shall be subject to the
approval of the Employer, such approval not to be unreasonably withheld.
(a)Cargo Insurance
Covering loss or damage occurring, while in transit from the supplier’s or manufacturer’s works or
stores until arrival at the Site, to the Facilities (including spare parts therefore) and to the construction
equipment to be provided by the Contractor or its Subcontractors.
(*) Excess 5% of claimed amount subject to minimum of NRs. 20,000 for Normal and NRs. 80,000 for
act of God perils and collapse.
(*) Excess 5% of claimed amount subject to minimum of NRs. 10,000 for Normal and NRs. 30,000 for
testing period.
(e)Workers’ Compensation
In accordance with the statutory requirements applicable in any country where the Facilities or any
part thereof is executed.
(f)Employer’s Liability
In accordance with the statutory requirements applicable in any country where the Facilities or any
part thereof is executed.
(g)Other Insurance
The Employer shall be named as co-insured under all insurance policies taken out by the Contractor
pursuant to GCC Sub clause 34.1, except for the Third Party Liability, Workers’ Compensation, and
Employer’s Liability Insurance, and the Contractor’s Subcontractors shall be named as co-insureds
under all insurance policies taken out by the Contractor pursuant to GCC Sub clause 34.1, except for
the Cargo, Workers’ Compensation and Employer’s Liability Insurance. All insurer’s rights of
subrogation against such co-insureds for losses or claims arising out of the performance of the
Contract shall be waived under such policies.
Appendix 5:List of Major Items of Plant and Services and List of Approved
Subcontractors
The following Subcontractors and Manufacturers are approved for carrying out the item of the
facilities indicated. Where more than one Subcontractor is listed, the Contractor is free to choose
between them, but it must notify the Employer of its choice in good time prior to appointing any
selected Subcontractor. In accordance with GCC Subclause 19.1, the Contractor is free to submit
proposals for Subcontractors for additional items from time to time. No Subcontracts shall be placed
with any such Subcontractors for additional items until the Subcontractors have been approved in
writing by the Employer and their names have been added to this list of Approved Subcontractors.
The following personnel, facilities, works, and supplies will be provided or supplied by the Employer,
and the provisions of GCC Clauses 10, 21, and 24 shall apply as appropriate.
All personnel, facilities, works, and supplies will be provided by the Employer in good time so as not
to delay the performance of the Contractor, in accordance with the approved Time Schedule and
Program of Performance pursuant to GCC Subclause 18.2.
Unless otherwise indicated, all personnel, facilities, works, and supplies will be provided free of
charge to the Contractor.
Pursuant to GCC Subclause 20.3.1, the Contractor shall prepare, or cause its Subcontractor to
prepare, and present to the Project Manager in accordance with the requirements of GCC Subclause
18.2 (Program of Performance), the following documents for
(A) Approval
1. Work Program
2. Work Procedure
(B) Review
1. None
1. General
This Appendix sets out
(b) the preconditions to the validity of the functional guarantees, either in production and/or
consumption, set forth below
(d) the formula for calculating liquidated damages for failure to attain the functional
guarantees.
2. Preconditions
The Contractor gives the functional guarantees (specified herein) for the facilities, subject to the
following preconditions being fully satisfied:
3. Functional Guarantees
Subject to compliance with the foregoing preconditions, the Contractor guarantees as follows:
3.1 Production Capacity
3.2 Raw Materials and Utilities Consumption
(a) production capacity of the Facilities attained in the guarantee test: 95% of the
guaranteed production capacity
and/or
(b) average total cost of consumption of all the raw materials and utilities of the
Facilities: 105% of the guaranteed figures.
Performance Security
[Bank’s name, and address of issuing branch or office]
We have been informed that [name of the contractor](hereinafter called “the Contractor”) has entered
into Contract No. [reference number of the contract]dated [date] with you, for the execution of [name of
contract and brief description of plant and services](hereinafter called "the Contract").
...................................
[Signature(s) and seal of bank (where appropriate)]
-- Note toBidder --
If the institution issuing the performance security is located outside the country of the Employer, it shall have a
correspondent financial institution located in the country of the Employer to make it enforceable.
1
The guarantor shall insert an amount representing the percentage of the contract price specified in the contract and denominated
either in the currency(ies) of the contract or a freely convertible currency acceptable to the Employer.
2
Or the same or similar to this clause specified in the Uniform Rules for Demand Guarantees, ICC Publication No. 758, where
applicable.
We have been informed that [name of the contractor](hereinafter called "the Contractor") has entered
into Contract No. [reference number of the contract]dated [date]with you, for the execution of [name of
contract and brief description of plant and services](hereinafter called "the Contract").
Furthermore, we understand that, according to the Conditions of the Contract, an advance payment in
the sum [name of the currency and amount in words]1[amount in figures] is to be made against an advance
payment guarantee.
At the request of the Contractor, we [name of the bank]hereby irrevocably undertake to pay you any sum
or sums not exceeding in total an amount of [name of the currency and amount in words]2[amount in figures]
upon receipt by us of your first demand in writing accompanied by a written statement stating that the
Contractor is in breach of its obligation under the Contract because the Contractor:
(a) used the advance payment for purposes other than the costs of mobilization and cash flow
support in respect of the Works; or
(b) has failed to repay the advance payment when it has become due and payable in accordance
with the conditions of the Contract, specifying the amount payable by the Contractor.
It is a condition for any claim and payment under this guarantee to be made that the advance
payment referred to above must have been received by the Contractor on its account number
[contractorʼs account number]at [name and address of the bank].
The maximum amount of this guarantee shall be progressively reduced by the amount of the advance
payment repaid by the Contractor as indicated in copies of interim statements or payment certificates,
which shall be presented to us. This guarantee shall expire, at the latest, upon our receipt of a copy of
the interim payment certificate, indicating that 80% of the Contract Price has been certified for
payment, or on the [date] day of [month], [year],3 whichever is earlier. Consequently, any demand for
payment under this guarantee must be received by us at this office on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458 [or
ICC Publication No. 758 as applicable].
......................................
[Signature(s) and seal of bank (where appropriate)]
-- Note to Bidder --
If the institution issuing the advance payment security is located outside the country of the Employer, it shall have
a correspondent financial institution located in the country of the Employer to make it enforceable.
1
The guarantor shall insert an amount representing the amount of the advance payment denominated either in the currency(ies) of
the advance payment as specified in the contract, or in a freely convertible currency acceptable to the Employer.
2
Footnote 1.
3
Insert the expected expiration date of the time for completion. The Employer should note that in the event of an extension of the
time for completion of the contract, the Employer would need to request an extension of this guarantee from the guarantor. Such
request must be in writing and must be made prior to the expiration date established in the guarantee. In preparing this guarantee,
the Employer might consider adding the following text to the form, at the end of the penultimate paragraph: “The Guarantor agrees
to a one-time extension of this guarantee for a period not to exceed [6 months][1 year], in response to the Employer’s written
request for such extension, such request to be presented to the Guarantor before the expiry of the guarantee.”