User’s Guide to Procurement of Works—Small Contracts

Standard Bidding Document—December 2016

This User’s Guide is intended to provide guidance to borrowers on how to prepare a bidding document for unit
price or lump-sum types of small works contracts that incorporate postqualification, and how to evaluate bids
and award contracts based on the Asian Development Bank’s Standard Bidding Document for the Procurement
of Works, Small Contracts.

About the Asian Development Bank

User’s Guide to Procurement of Works—Small Contracts

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries
reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains
home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic
growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping
its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and
technical assistance.

USER’S GUIDE
TO PROCUREMENT
OF WORKS
SMALL CONTRACTS
STANDARD Bidding DOCUMENT
December 2016

ISBN 978-92-9257-693-6

Asian Development Bank

6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK
www.adb.org
USER’S GUIDE
TO PROCUREMENT
OF WORKS
SMALL CONTRACTS
STANDARD Bidding DOCUMENT
December 2016

ASIAN DEVELOPMENT BANK

Creative Commons Creative Commons Attribution-NonCommercial-NoDerivs 3.0 IGO license
(CC BY-NC-ND 3.0 IGO)

© 2016 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines
Tel +63 2 632 4444; Fax +63 2 636 2444
www.adb.org

Some rights reserved. Published in 2016.

Printed in the Philippines.

ISBN 978-92-9257-693-6 (Print), 978-92-9257-694-3 (e-ISBN)

Publication Stock No. TIM168383-2

Cataloging-In-Publication Data

Asian Development Bank.

User’s guide to procurement of works—Small contracts: Standard bidding document.
Mandaluyong City, Philippines: Asian Development Bank, 2016.

1. Procurement. 2. Bidding. I. Asian Development Bank.

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies
of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any
consequence of their use. The mention of specific companies or products of manufacturers does not imply that they
are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term “country”
in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 IGO license
(CC BY-NC-ND 3.0 IGO) http://creativecommons.org/licenses/by-nc-nd/3.0/igo/. By using the content of this
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This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed
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ADB cannot be held liable for any claims that arise as a result of your use of the material.

Attribution—You should always acknowledge ADB as the source using the following format:
[Author]. [Year of publication]. [Title of the work in italics]. [City of publication]: [Publisher]. © ADB.
[URL or DOI] [license].

Please contact [email protected] if you have questions or comments with respect to content, or if you wish
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Notes:
In this publication, “$” refers to US dollars.
Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda

Printed on recycled paper

iii

Contents
Abbreviations ...................................................................................................................................................................iv

Introduction...................................................................................................................................................................... 1

The Bidding Process......................................................................................................................................................... 3

Invitation for Bids............................................................................................................................................................. 5

Section 1 Instructions to Bidders (ITB)................................................................................................................. 8

This Section specifies the procedures Bidders should follow when preparing and submitting their Bids.
Information is also provided on the submission, opening, evaluation of bids, and on the award of contract.

Section 2 Bid Data Sheet (BDS)........................................................................................................................... 27

This Section consists of provisions that are specific to each procurement, and supplement the information or
requirements included in Section 1 – Instructions to Bidders.

Section 3 Evaluation and Qualification Criteria (EQC).................................................................................... 33

This Section contains the criteria to determine the lowest evaluated bid and the qualifications of the Bidder to
perform the contract if the bidding were not preceded by a prequalification exercise.

Section 4 Bidding Forms (BDF)............................................................................................................................ 46

This Section contains the forms, which are to be completed by the Bidder and submitted as part of its Bid if the
bidding were not preceded by a prequalification exercise.

Section 5 Eligible Countries (ELC)....................................................................................................................... 83

This Section contains the list of eligible countries.

Section 6 Employer’s Requirements (ERQ)........................................................................................................ 84

This Section contains the Specifications, Drawings, Supplementary Information that describe the Works to be
procured, Personnel Requirements, and Equipment Requirements.

Section 7 General Conditions of Contract (GCC)............................................................................................. 90

This Section contains the general clauses to be applied in all contracts. These Conditions are subject to the
variations and additions set out in Section 8 (Particular Conditions of Contract).

Section 8 Particular Conditions of Contract (PCC).........................................................................................120

This Section contains provisions that are specific to each contract and that modify or supplement the GCC.
Whenever there is a conflict, the provisions herein shall prevail over those in the GCC.

Section 9 Contract Forms (COF)........................................................................................................................125

This Section contains forms, which, once completed, will form part of the Contract. The forms for Performance
Security and Advance Payment Security, when required, shall only be completed by the successful Bidder after
contract award.
iv

Abbreviations
ADB............................. Asian Development Bank

BDF............................. Bidding Forms

BDS............................. Bid Data Sheet

COF............................. Contract Forms

ELC.............................. Eligible Countries

ELI................................ Eligibility Form

EQC............................. Evaluation and Qualification Criteria

EQU............................ Equipment Form

ERQ............................. Employer’s Requirements

EXP.............................. Experience Form

FIN............................... Financial Data Form

GCC............................ General Conditions of Contract

ICB............................... International Competitive Bidding

IFB................................ Invitation for Bids

ITB............................... Instructions to Bidders

LIT............................... Pending Litigation Form

NCB............................ National Competitive Bidding

PCC............................. Particular Conditions of Contract

PER.............................. Personnel Form

SBD............................. Standard Bidding Document

1

Introduction
The Standard Bidding Document for the Procurement of Works–Small Contracts (SBD Works-Small) has been
prepared by the Asian Development Bank (ADB) for use in contracts involving “smaller” contracts—valued
at generally less than $10 million by international competitive bidding (ICB), though it may also be adapted
to national competitive bidding (NCB). It is based on the Master Document for Procurement of Small Works,
prepared by the multilateral development banks and international financing institutions. It reflects the structure
and the provisions of the master document, except where specific considerations within ADB have required
a change.

The SBD Works-Small follows a postqualification procedure that requires bidders to submit the information
pertaining to their qualification together with their bids. In this event, it will be necessary to ensure that a bidder’s
risk of having its bid rejected on grounds of qualification is remote if due diligence is exercised by the bidder during
bid preparation. For that purpose, clear-cut, fail–pass qualification criteria need to be specified by the employer
in both the Invitation for Bids as well as the Bidding Document to enable bidders to make an informed decision
on whether to pursue a specific contract and, either to do so as a single entity or in joint venture. Postqualification
criteria, requirements, and relevant forms for submission are covered in Section 3 (Evaluation and Qualification
Criteria) and Section 4 (Bidding Forms).

The SBD Works-Small can also be used in cases where prequalification has been undertaken, with relatively
minor modifications. However, the SBD does not address the bidder prequalification process per se. Details of
the prequalification procedure used under ADB-financed contracts are provided in ADB’s Standard Procurement
Document, Prequalification of Bidders.

The SBD Works-Small is intended, as a default, for lump sum (activity schedule) types of contract, which are the
most common in civil works contracting. Lump sum contracts are used particularly for building construction and
other forms of construction where the works are well defined and are unlikely to change in quantity or specification,
and where it is unlikely to encounter difficult or unforeseen site conditions (for example, hidden foundation
problems).

The SBD Works-Small can also be used for admeasurement (unit prices in a bill of quantities) contracts. The
main text is applicable to both types of contracts (lump sum and admeasurement). If it is necessary to distinguish
between the two, however, alternative text is found in Section 2 (Bid Data Sheet) and Section 8 (Particular
Conditions of Contract). Employers must exercise care in selecting the alternative clauses. In admeasurement
contracts, fixed prices are provided as a default, unless price adjustment is allowed and indicated in Section 2.

An important feature of the SBD Works-Small, which is only available in electronic format on the ADB website,
is that it can be used with minimum changes, as it does not contain explanations, footnotes, or examples that
should not form part of the Bidding Document. The provisions in Section 1 (Instructions to Bidders) and Section 7
(General Conditions of Contract) must be used with their text unchanged.

This user’s guide is provided to guide employers in preparing a bidding document based on the SBD Works-Small.
This guide includes the Bidding Process and the Invitation for Bids, which are not part of the Bidding Document.
2 User’s guide to procurement of works—SMALL CONTRACTS

ADB welcomes any feedback or experiences from both borrowers and bidders on the use of its SBD. For information
on procurement under ADB-financed projects, contact

Operations Services and Financial Management Department (OSFMD)

Asian Development Bank
6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines
E-mail: [email protected]
Tel +63 2 632 2444
Fax +63 2 636 2444 [Attn: Director General, OSFMD]
www.adb.org
3

The Bidding Process

The international competitive bidding (ICB) process includes six main phases: (i) advertisement and notification,
(ii) preparing and issuing the Bidding Document, (iii) bid preparation and submission, (iv) bid opening,
(v) bid evaluation, and (vi) contract award.

Advertisement and Notification

Following ICB procedure, the Invitation for Bids (IFB) shall be advertised on the Asian Development Bank (ADB)
website, as well as in (i) a newspaper of general circulation in the borrower’s country, or (ii) an internationally known
and freely accessible website in English. A copy of the Invitation for Bids shall be submitted to ADB for approval and
for publication on the ADB website in accordance with ADB’s Procurement Guidelines.

Preparing and Issuing a Bidding Document

The Employer is responsible for preparing and issuing the Bidding Document for a specific contract.

The Bidding Document shall be prepared by the Employer based on the appropriate SBD issued by ADB, as this is
a mandatory requirement for contracts to be financed by ADB. The following ADB-issued SBDs are published on
the ADB website:

• SBD Works (Small Contracts) Single-Stage: One Envelope

• SBD Works (Small Contracts) Single-Stage: Two Envelope

The Employer shall prepare the Bidding Document using the published version of the SBD without suppressing
or adding text to the sections of the document that must be used without modification, which are Section 1
(Instructions to Bidders) and Section 7 (General Conditions of Contract). All information and data particular
to each individual bidding process must be provided by the Employer in the following sections of the
Bidding Document:

• Section 2 Bid Data Sheet

• Section 3 Evaluation and Qualification Criteria
• Section 4 Bidding Forms
• Section 5 Eligible Countries
• Section 6 Employer’s Requirements
• Section 8 Particular Conditions of Contract
• Section 9 Contract Forms

The following directions should be observed by the Employer when finalizing the Bidding Document:

• In preparing the Bidding Document, the Employer should refer to this User’s Guide to Procurement of Works –
Small Contracts as it contains guidance and instructions for the Employer.
• Specific details, such as name of the Employer, address for bid submissions, qualification requirements, etc.
should be provided in the spaces indicated by italicized notes in bracket.
• The “italicized notes,” giving guidance and instructions for the Employer, except those that apply to forms to
be filled out by Bidders or instructions to Bidders, should be deleted from the actual Bidding Document.
4 User’s guide to procurement of works—SMALL CONTRACTS

• Where alternative clauses or text are shown, the Employer shall select the most appropriate for the particular
works and discard the unused clauses or text.

The Employer shall allow Bidders sufficient time (generally, not less than 6 weeks from the issuance or publication
date of the Invitation for Bids or the date of availability of Bidding Documents, whichever is later) to study the
Bidding Document, prepare complete and responsive Bids, and submit their Bids.

Bid Preparation and Submission

The Bidder is solely responsible for the preparation and submission of its Bid. During this stage, the Employer shall

• promptly respond to requests for clarifications from Bidders and amend the Bidding Document as needed, and
• amend the Bidding Document only with prior approval of ADB.

Bid Opening
The Employer is responsible for the Bid Opening, which is a critical event in the bidding process. The Employer
shall appoint experienced staff to conduct the Bid Opening, as inappropriate procedures at Bid Opening are usually
irreversible and may require cancellation of the bidding process with consequent delays and waste of resources.

The Employer, in observance of best practices, shall perform the following checks:

• Conduct the Bid Opening strictly following the procedures as specified in the Instructions to Bidders for all
Bids received not later than the date and time of the bid submission deadline. The term “Bid Opening” should
be understood in the context of the ITB because, as provided in the ITB, a Bid for which a Bid Withdrawal
or Bid Substitution notice was received on time shall not be opened, but returned unopened to the Bidder.
The sequence in which Bids are handled, opened, and recorded is crucial.
• Ensure that all Bids that were received on time are accounted for, before starting the Bid Opening, as Bids
that are not opened and read out at Bid Opening shall not be considered further.
• Not reject any Bid at Bid Opening, except for late bids received after the date and time of the bid submission
deadline. Technically, late bids should not reach the Bid Opening, but in certain cases a Bidder may attempt
to submit its bid at the Bid Opening place after the deadline. This late bid shall also not be considered.
• Examine the Bids at Bid Opening in accordance with the provisions of the Instructions to Bidders. The Employer
shall, however, verify at Bid Opening the validity of the documentation such as Power of Attorney or other
acceptable equivalent document as specified in the Instructions to Bidders, confirming the validity of a bid
modification, bid withdrawal, or bid substitution, because a withdrawn or substituted Bid shall not be opened
and consequently not read out and, therefore, shall not be considered by the Employer. Similarly, a bid
modification shall be opened, read out, and recorded to modify a Bid that was received on time.

Bid Evaluation and Contract Award

The Employer is responsible for bid evaluation and contract award. The Employer shall appoint experienced staff
to conduct the evaluation of the Bids. Mistakes committed at bid evaluation may later prompt complaints from
Bidders, requiring reevaluation of the Bids, with consequent delays and waste of resources.

The Employer, in observance of best practices, shall

• keep the bid evaluation process strictly confidential;

• reject any attempts or pressures to distort the outcome of the evaluation, including fraud and corruption; and
• strictly apply only and all of the evaluation and qualification criteria specified in the Bidding Document.
5

Invitation for Bids

The Invitation for Bids (IFB) provides information that enables potential Bidders to decide whether to participate.
Apart from the essential items listed in the Standard Bidding Document, the IFB should also indicate any
important bid evaluation criteria, such as the application of a margin of preference in bid evaluation, or qualification
requirements, such as a requirement for a minimum level of experience in contracts of a similar size and nature
for which the IFB is issued.

The IFB is not a part of the Bidding Document and therefore it shall not be included in the Bidding Document.

Following ICB and NCB procedures, the IFB shall be advertised on the ADB website, as well as in (i) a newspaper
of general circulation in the borrower’s country, or (ii) an internationally known and freely accessible website
in English and in a local language. A copy of the Invitation for Bids in English shall be submitted to ADB for approval
and for publication on the ADB website in accordance with ADB’s Procurement Guidelines.
6 User’s guide to procurement of works—SMALL CONTRACTS

Standard Format for Invitation for Bids

[Letterhead of the employer]

Date.................................................................................................................................................................
Loan/Grant No. and Title.....................................................................................................................
Contract No. and Title............................................................................................................................
Deadline for Submission of Bids.......................... [insert closing date and time]..............................

1. The . . . . . [insert name of the borrower or recipient] . . . . . has received1 financing from the Asian Development Bank
(ADB) toward the cost of . . . . . [insert name of the project] . . . . . Part of this financing will be used for payments
under the Contract2 named above. Bidding is open to Bidders3 from eligible source countries of ADB.4

2. The . . . . . [insert name of the employer] . . . . . (“the Employer”) invites sealed bids from eligible Bidders3 for
the construction and completion of . . . . . [insert brief description of the Works and statement of the principal quantities
involved] . . . . .5 (“the Works”).

3. International competitive bidding6 will be conducted in accordance with ADB’s . . . . . [insert appropriate bidding
procedure] . . . . .7 procedure and is open to all Bidders from eligible countries as described in the Bidding
Document.8

4. Only eligible Bidders with the following key qualifications9 should participate in this bidding:
. . . . . [insert key experience requirement] . . . . .
. . . . . [insert key financial requirement] . . . . .

1
Substitute with “has applied for” if appropriate.
2
Substitute “contracts” where bids are called concurrently for multiple contracts. Add a new para. 2 and renumber paras. 2–8
as follows: “Bidders may bid for one or several contracts, as further defined in the bidding document. Bidders wishing to offer
discounts in case they are awarded more than one contract will be allowed to do so, provided those discounts are included in
the Letter of Bid.”
3
Insert “prequalified” if the bidding is preceded by a prequalification exercise.
4
Add if applicable: “This contract will be jointly financed by . . . . . insert name of cofinancing agency . . . . . The eligibility rules and
procedures of ADB will govern the bidding process.”
5
A brief description of the type(s) of works should be provided, including principal quantities, location of project, and other
information necessary to enable potential bidders to decide whether to respond to the invitation.
6
Substitute by “National competitive bidding” if appropriate.
7
Insert one of the bidding procedures adopted by ADB, which are (a) Single-Stage: One-Envelope, and (b) Single-Stage:
Two-Envelope.
8
The list of eligible countries will be specified in Section 5 of the Bidding Document.
9
Insert clear-cut, fail–pass qualification criteria to enable bidders to make an informed decision on whether to pursue a specific
contract and, to do so either as a single entity or in joint venture. Omit this paragraph and renumber the rest if the bidding is
preceded by a prequalification exercise.
Invitation for Bids 7

5. To obtain further information and inspect the bidding documents, Bidders should contact:
. . . . . [insert employer’s office] . . . . .10
. . . . . [insert name of the officer] . . . . .
. . . . . [insert postal address or street address, include zip code] . . . . .
. . . . . [insert telephone number including country code] . . . . .
. . . . . [insert e-mail address] . . . . .
. . . . . [insert fax number] . . . . .

6. To purchase the bidding documents in English, eligible Bidders should

• write to address above requesting the bidding documents for . . . . . [insert number and title of the contract] . . . . .
• pay a nonrefundable fee11 of . . . . . [insert amount and currency] . . . . . by . . . . . [insert method of payment] . . . . .12

7. Deliver your bid

• to the address above
• on or before the deadline: . . . . . [insert closing date and time] . . . . .
• together with a Bid Security/Bid-Securing Declaration as described in the Bidding Document

Bids will be opened immediately after the deadline for bid submission in the presence of Bidders’
representatives who choose to attend.

8. When comparing Bids, ADB’s Domestic Preference Scheme will be applied in accordance with the
provisions stipulated in the Bidding Document.13

10
The borrower and the employer may be the same or different entities. The text of the Invitation for Bids and the text of the other
associated documents must indicate which agency will act as the employer.
11
The fee chargeable should be only nominal to cover reproduction and mailing costs.
12
For example, cashier’s check, direct deposit to a specified account number, etc.
13
Include para. 8 only if Domestic Preference has been expressly provided in the Financing Agreement and is included in the
Instructions to Bidders. Domestic Preference may be applied only in International Competitive Bidding.
8

Section 1 – Instructions to Bidders

This section specifies the procedures to be followed by Bidders when preparing and submitting their Bids.
Information is also provided on the submission, opening, evaluation of bids, and on the award of contract.

Table of Clauses
A. General.................................................................................................................................................................... 10

1. Scope of Bid.......................................................................................................................................................................................... 10

2. Source of Funds.................................................................................................................................................................................. 10

3. Fraud and Corruption....................................................................................................................................................................... 10

4. Eligible Bidders.................................................................................................................................................................................... 12

5. Eligible Materials, Equipment, and Services............................................................................................................................ 13

B. Contents of Bidding Document............................................................................................................................ 14

6. Sections of Bidding Document..................................................................................................................................................... 14

7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting...................................................................................... 14

8. Amendment of Bidding Document............................................................................................................................................. 15

C. Preparation of Bids................................................................................................................................................. 15

9. Cost of Bidding.................................................................................................................................................................................... 15

10. Language of Bid.................................................................................................................................................................................. 15

11. Documents Comprising the Bid................................................................................................................................................... 16

12. Letter of Bid and Schedules........................................................................................................................................................... 16

13. Alternative Bids................................................................................................................................................................................... 16

14. Bid Prices and Discounts................................................................................................................................................................. 17

15. Currencies of Bid and Payment.................................................................................................................................................... 17

16. Documents Comprising the Technical Proposal.................................................................................................................... 17

17. Documents Establishing the Qualifications of the Bidder................................................................................................. 18

Instructions to Bidders 9

18. Period of Validity of Bids.................................................................................................................................................................. 18

19. Bid Security/Bid-Securing Declaration..................................................................................................................................... 18

20. Format and Signing of Bid............................................................................................................................................................... 19

D. Submission and Opening of Bids......................................................................................................................... 20

21. Sealing and Marking of Bids........................................................................................................................................................... 20

22. Deadline for Submission of Bids................................................................................................................................................... 20

23. Late Bids................................................................................................................................................................................................ 20

24. Withdrawal, Substitution, and Modification of Bids............................................................................................................ 20

25. Bid Opening......................................................................................................................................................................................... 21

E. Evaluation and Comparison of Bids..................................................................................................................... 22

26. Confidentiality..................................................................................................................................................................................... 22

27. Clarification of Bids........................................................................................................................................................................... 22

28. Deviations, Reservations, and Omissions................................................................................................................................ 22

29. Determination of Responsiveness............................................................................................................................................... 22

30. Nonmaterial Nonconformities..................................................................................................................................................... 23

31. Correction of Arithmetical Errors................................................................................................................................................ 23

32. Conversion to Single Currency..................................................................................................................................................... 24

33. Margin of Preference........................................................................................................................................................................ 24

34. Evaluation of Bids............................................................................................................................................................................... 24

35. Comparison of Bids........................................................................................................................................................................... 25

36. Qualification of the Bidder............................................................................................................................................................. 25

37. Employer’s Right to Accept Any Bid, and to Reject Any or All Bids............................................................................... 25

F. Award of Contract.................................................................................................................................................. 25

38. Award Criteria..................................................................................................................................................................................... 25

39. Notification of Award....................................................................................................................................................................... 25

40. Signing of Contract............................................................................................................................................................................ 26

41. Performance Security....................................................................................................................................................................... 26

10 User’s guide to procurement of works—SMALL CONTRACTS

Section 1 – Instructions to Bidders

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 the Works as specified in Section 6 (Employer’s
Requirements). The name, identification, and number of contracts of this
bidding are provided in the BDS.

1.2 Throughout this Bidding Document,

(a) the term “in writing” means communicated in written form and delivered
against receipt;

(b) except where the context requires otherwise, words indicating the
singular also include the plural and words indicating the plural also
include the singular; and

(c) “day” means calendar day.

2. Source of Funds 2.1 The Borrower or Recipient (hereinafter called “Borrower”) indicated in the
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. Fraud and 3.1 ADB’s Anticorruption Policy requires Borrowers (including beneficiaries of
Corruption ADB-financed activity), as well as Bidders, Suppliers, and Contractors 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 benefit or
to avoid an obligation;
Instructions to Bidders 11

(iii) “coercive practice” means impairing or harming, or threatening to

impair or harm, directly or indirectly, any party or the property of
the party to influence improperly the actions of a party;

(iv) “collusive practice” means an arrangement between two or more

parties designed to achieve an improper purpose, including
influencing improperly the actions of another party;

(v) “obstructive practice” means (a) deliberately destroying,

falsifying, altering, or concealing of evidence material to an ADB
investigation; (b) making false statements to investigators in order
to materially impede an ADB investigation; (c) failing to comply
with requests to provide information, documents, or records
in connection with an Office of Anticorruption and Integrity
(OAI) investigation; (d) threatening, harassing, or intimidating
any party to prevent it from disclosing its knowledge of matters
relevant to the investigation or from pursuing the investigation; or
(e) materially impeding ADB’s contractual rights of audit or access
to information; and

(vi) “integrity violation” is any act which violates ADB’s Anticorruption

Policy, including (i) to (v) above and the following: abuse, conflict
of interest, violations of ADB sanctions, retaliation against
whistleblowers or witnesses, and other violations of ADB’s
Anticorruption Policy, including failure to adhere to the highest
ethical standard.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has, directly or through an agent, engaged in
corrupt, fraudulent, collusive, coercive, or obstructive practices or other
integrity violations in competing for the Contract;

(c) will cancel the portion of the financing allocated to a contract if it

determines at any time that representatives of the Borrower or of a
beneficiary of ADB financing engaged in corrupt, fraudulent, collusive,
coercive, or obstructive practices or other integrity violations during the
procurement or the execution of that contract, without the Borrower
having taken timely and appropriate action satisfactory to ADB to
remedy the situation;

(d) will impose remedial actions on a firm or an individual, at any time, in

accordance with ADB’s Anticorruption Policy and Integrity Principles
and Guidelines (both as amended from time to time), including declaring
ineligible, either indefinitely or for a stated period of time, to participate1
in ADB-financed, -administered, or -supported activities or to benefit
from an ADB-financed, -administered, or -supported contract, financially
or otherwise, if it at any time determines that the firm or individual has,
directly or through an agent, engaged in corrupt, fraudulent, collusive,
coercive, or obstructive practices or other integrity violations; and

1
Whether as a Contractor, Nominated Subcontractor, Consultant, Manufacturer or Supplier, or Service Provider; or in any
other capacity (different names are used depending on the particular Bidding Document). A Nominated Subcontractor is one
that either has been (i) included by the Bidder in its prequalification application or bid because it brings specific and critical
experience and know-how that are accounted for in the evaluation of the bidder’s prequalification application or the bid; or
(ii) appointed by the Employer.
12 User’s guide to procurement of works—SMALL CONTRACTS

(e) will have the right to require that a provision be included in bidding
documents and in contracts financed by ADB, requiring Bidders,
suppliers, and contractors to permit ADB or its representative to inspect
their accounts and records and other documents relating to the bid
submission and contract performance and to have them audited by
auditors appointed by ADB.

3.2 Furthermore, Bidders shall be aware of the provisions of GCC 28.3 and 73.2(i).

4. Eligible Bidders 4.1 A Bidder may be a natural person, private entity, or government-owned
enterprises subject to ITB 4.5—or any combination of them with a formal
intent to enter into an agreement or under an existing agreement in the form
of a Joint Venture. In the case of a Joint Venture:

(a) all partners shall be jointly and severally liable; and

(b) the Joint Venture shall nominate a Representative who shall have the
authority to conduct all business for and on behalf of any and all the
parties of the Joint Venture during the bidding process and, in the event
the Joint Venture is awarded the Contract, during contract execution.

4.2 A Bidder, and all parties 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 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.

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 of the Bidding Document. 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
Instructions to Bidders 13

(f) a Bidder or any affiliated entity, participated as a Consultant in the

preparation of the design or technical specifications of the works that
are the subject of the Bid; or

(g) a Bidder was affiliated with a firm or entity that has been hired (or is
proposed to be hired) by the Employer or Borrower as Engineer for
the Contract.

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.

4.5 Government-owned enterprises in the Employer’s country shall be eligible

only if they can establish that they (i) are legally and financially autonomous,
(ii) operate under commercial law, and (iii) are not a dependent agency of the
Employer.

4.6 Bidders shall provide such evidence of their continued eligibility satisfactory
to the Employer, as the Employer shall reasonably request.

4.7 Firms shall be excluded if 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, the Borrower’s country prohibits any import of goods or
contracting of works or services from that country or any payments to persons
or entities in that country.

4.8 In case a prequalification process has been conducted prior to the bidding
process, this bidding is open only to prequalified Bidders.

5. Eligible Materials, 5.1 The materials, equipment, and services to be supplied under the Contract
Equipment, and shall have their origin in eligible source countries as defined in ITB 4.2 and all
Services expenditures under the Contract will be limited to such materials, equipment,
and services. At the Employer’s request, Bidders may be required to provide
evidence of the origin of materials, equipment, and services.

5.2 For purposes of ITB 5.1 above, “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.
14 User’s guide to procurement of works—SMALL CONTRACTS

B. Contents of Bidding Document

6. Sections of 6.1 The Bidding Document consist of Parts I, II, and III, which include all the
Bidding sections indicated below, and should be read in conjunction with any addenda
Document issued in accordance with ITB 8.

PART I Bidding Procedures

• Section 1 Instructions to Bidders (ITB)
• Section 2 Bid Data Sheet (BDS)
• Section 3 Evaluation and Qualification Criteria (EQC)
• Section 4 Bidding Forms (BDF)
• Section 5 Eligible Countries (ELC)

PART II Requirements
• Section 6 Employer’s Requirements (ERQ)

PART III Conditions of Contract and Contract Forms

• Section 7 General Conditions of Contract (GCC)
• Section 8 Particular Conditions of Contract (PCC)
• Section 9 Contract Forms (COF)

6.2 The IFB issued by the Employer is not part of the Bidding Document.

6.3 The Employer is not responsible for the completeness of the Bidding
Document and their addenda, if they were not obtained directly from the
source stated by the Employer in 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 7.1 A prospective Bidder requiring any clarification on the Bidding Document
of Bidding shall contact the Employer in writing at the Employer’s address indicated in
Document, the BDS or raise his inquiries during the pre-bid meeting if provided for in
Site Visit, accordance with ITB 7.4. The Employer will respond in writing to any request
Pre-Bid Meeting for clarification, provided that such request is received prior to the deadline
for submission of bids, within a period given in the BDS. The Employer shall
forward copies of its response 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 22.2.

7.2 The Bidder is advised to visit and examine the Site of Works and its
surroundings and obtain for itself, on its own risk and responsibility,
all information that may be necessary for preparing the Bid and entering into
a contract for construction of the Works. The costs of visiting the Site shall be
at the Bidder’s own expense.
Instructions to Bidders 15

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.

7.4 The Bidder’s designated representative is invited to attend a pre-bid meeting,

if provided for in the BDS. The purpose of the meeting will be to clarify issues
and to answer questions on any matter that may be raised at that stage.

7.5 The Bidder is requested to submit any questions in writing, to reach the
Employer not later than 1 week before the 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.

7.7 Nonattendance at the pre-bid meeting will not be a cause for disqualification
of a Bidder.

8. Amendment 8.1 At any time prior to the deadline for submission of Bids, the Employer may
of 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 Employer in accordance with ITB 6.3.

8.3 To give prospective Bidders reasonable time in which to take an addendum

into account in preparing their Bids, the Employer may, at its discretion,
extend the deadline for the submission of Bids, pursuant to ITB 22.2.

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 Bid 10.1 The Bid, as well as all correspondence and documents relating to the bid
exchanged by the Bidder and the Employer, shall be written in the language
specified 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 in the language specified
in the BDS, in which case, for purposes of interpretation of the Bid,
such translation shall govern.
16 User’s guide to procurement of works—SMALL CONTRACTS

11. Documents 11.1 The Bid shall comprise the following:

Comprising
the Bid (a) Letter of Bid;

(b) completed Schedules, in accordance with ITB 12 and ITB 14, or as

stipulated in the BDS;

(c) Bid Security or Bid-Securing Declaration, in accordance with ITB 19;

(d) alternative Bids, at Bidder’s option and if permissible, in accordance

with ITB 13;

(e) written confirmation authorizing the signatory of the Bid to commit the
Bidder, in accordance with ITB 20.2;

(f) documentary evidence in accordance with ITB 17, establishing the

Bidder’s qualifications to perform the contract;

(g) Technical Proposal in accordance with ITB 16;

(h) Any other document required in the BDS.

11.2 In addition to the requirements under ITB 11.1, Bids submitted by a Joint
Venture shall include a copy of the Joint Venture Agreement entered 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.

12. Letter of Bid 12.1 The Letter of Bid, Schedules, and all documents listed under Clause 11,
and Schedules shall be prepared using the relevant forms in Section 4 (Bidding Forms), if so
provided. 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 Bids 13.1 Unless otherwise indicated in the BDS, alternative Bids shall not be
considered.

13.2 When alternative times for completion are explicitly invited, a statement
to that effect will be included in the BDS, as will the method of evaluating
different times for completion.

13.3 When specified in the BDS pursuant to ITB 13.1, and subject to ITB 13.4
below, Bidders wishing to offer technical alternatives to the requirements of
the Bidding Document must first price the Employer’s design as described
in the Bidding Document and shall further provide all information necessary
for a complete evaluation of the alternative by the Employer, including
drawings, design calculations, technical specifications, breakdown of prices,
and proposed construction 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 specified in the BDS, Bidders are permitted to submit alternative
technical solutions for specified parts of the Works. Such parts will be
identified in the BDS and described in Section 6 (Employer’s Requirements).
The method for their evaluation will be stipulated in Section 3 (Evaluation
and Qualification Criteria).
Instructions to Bidders 17

14. Bid Prices and 14.1 The prices and discounts quoted by the Bidder in the Letter of Bid and in the
Discounts Schedules shall conform to the requirements specified below.

14.2 The Bidder shall submit a bid for the whole of the works described in ITB 1.1
by filling in prices for all items of the Works, as identified in Section 4 (Bidding
Forms). In case of admeasurement contracts, the Bidder shall fill in rates and
prices for all items of the Works described in the Bill of Quantities. Items
against which no rate or price is entered by the Bidder will not be paid for by
the Employer when executed and shall be deemed covered by the rates for
other items and prices in the Bill of Quantities.

14.3 The price to be quoted in the Letter of Bid shall be the total price of the Bid,
excluding any discounts offered. Absence of the total bid price in the
Letter of Bid may result in the rejection of the Bid.

14.4 The Bidder shall quote any discounts and the methodology for their
application in the Letter of Bid, in accordance with ITB 12.1.

14.5 Unless otherwise provided in the BDS and the Conditions of Contract,
the prices quoted by the Bidder shall be fixed. If the prices quoted by the
Bidder are subject to adjustment during the performance of the Contract in
accordance with the provisions of the Conditions of Contract, the Bidder shall
furnish the indexes and weightings for the price adjustment formulas in the
Table(s) of Adjustment Data in Section 4 (Bidding Forms) and the Employer
may require the Bidder to justify its proposed indexes and weightings.

14.6 If so indicated in ITB 1.1, bids are invited for individual contracts or for any
combination of contracts (packages). Bidders wishing to offer any price
reduction for the award of more than one Contract shall specify in their
bid the price reductions applicable to each package, or alternatively, to
individual Contracts within the package. Price reductions or discounts shall be
submitted in accordance with ITB 14.4, provided the Bids for all contracts are
submitted and opened at the same time.

14.7 All duties, taxes, and other levies payable by the Contractor under the
Contract, or for any other cause, as of the date 28 days prior to the deadline
for submission of bids, shall be included in the rates and prices and the total
bid price submitted by the Bidder.

15. Currencies 15.1 The currency(ies) of the Bid and payment shall be as specified in the BDS.
of Bid and
Payment 15.2 Bidders may be required by the Employer to justify, to the Employer’s
satisfaction, their local and foreign currency requirements, and to substantiate
that the amounts included in the prices shown in the appropriate form(s)
of Section 4, in which case a detailed breakdown of the foreign currency
requirements shall be provided by Bidders.

16. Documents 16.1 The Bidder shall furnish a Technical Proposal including a statement of work
Comprising methods, equipment, personnel, schedule, and any other information as
the Technical stipulated in Section 4 (Bidding Forms), in sufficient detail to demonstrate
Proposal the adequacy of the Bidders’ proposal to meet the work requirements and the
completion time.
18 User’s guide to procurement of works—SMALL CONTRACTS

17. Documents 17.1 To establish its qualifications to perform the Contract in accordance with
Establishing the Section 3 (Evaluation and Qualification Criteria), the Bidder shall provide the
Qualifications of information requested in the corresponding information sheets included in
the Bidder Section 4 (Bidding Forms).

17.2 Domestic Bidders, individually or in joint ventures, applying for eligibility

for domestic preference shall supply all information required to satisfy the
criteria for eligibility as described in ITB 33.

18. Period of 18.1 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.

18.2 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 19, 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.

19. Bid Security/ 19.1 Unless otherwise specified in the BDS, the Bidder shall furnish as part of its
Bid-Securing Bid, in original form, either a Bid-Securing Declaration or a bid security as
Declaration specified in the BDS. In the case of a bid security, the amount and currency
shall be as specified in the BDS.

19.2 If a Bid-Securing Declaration is required pursuant to ITB 19.1, 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.

19.3 If a bid security is specified pursuant to ITB 19.1, 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, or

(c) a cashier’s or certified check,

all from a reputable source from an eligible country as described in Section 5

(Eligible Countries). In the case of a bank guarantee, the bid security shall be
submitted either using 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 18.2.

19.4 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 19.1, shall be rejected by the Employer as
nonresponsive.
Instructions to Bidders 19

19.5 If a bid security is specified pursuant to ITB 19.1, the bid security of
unsuccessful Bidders shall be returned as promptly as possible upon the
successful Bidder’s furnishing of the performance security pursuant to ITB 41.

19.6 If a bid security is specified pursuant to ITB 19.1, the bid security of the
successful Bidder shall be returned as promptly as possible once the
successful Bidder has signed the Contract and furnished the required
performance security.

19.7 The bid security may be forfeited or the Bid-Securing Declaration executed,

(a) if a Bidder withdraws its bid during the period of bid validity specified by
the Bidder on the Letter of Bid, except as provided in ITB 18.2; or

(b) if the successful Bidder fails to

(i) sign the Contract in accordance with ITB 40;

(ii) furnish a performance security in accordance with ITB 41;

(iii) accept arithmetical corrections in accordance with ITB 31; or

(iv) furnish a domestic preference security, if applicable, in accordance

with ITB 41.

19.8 The bid security or the Bid-Securing Declaration of a Joint Venture shall be in
the name of the Joint Venture that submits the Bid. If the Joint Venture has
not been legally constituted at the time of bidding, the bid security or the Bid-
Securing Declaration shall be in the names of all future partners as named in
the letter of intent mentioned in ITB 4.1.

20. Format and 20.1 The Bidder shall prepare one original set of the documents comprising
Signing of Bid the Bid as described in ITB 11 and clearly mark it “ORIGINAL.” 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.

20.2 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.
All pages of the Bid, except for unamended printed literature, shall be signed
or initialed by the person signing the bid. 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 prescribed period of receiving such a request shall
cause the rejection of the Bid.

20.3 Any amendments such as interlineations, erasures, or overwriting shall be

valid only if they are signed or initialed by the person signing the Bid.
20 User’s guide to procurement of works—SMALL CONTRACTS

D. Submission and Opening of Bids

21. Sealing and 21.1 Bidders may always submit their Bids by mail or by hand. When so specified in
Marking of Bids the BDS, Bidders shall have the option of submitting their Bids electronically.
Procedures for submission, sealing, and marking are as follows:

(a) Bidders submitting Bids by mail or by hand shall enclose the original
and each copy of the Bid, including alternative Bids, if permitted in
accordance with ITB 13, in separate sealed envelopes, duly marking
the envelopes as “ORIGINAL,” “ALTERNATIVE,” and “COPY.”
These envelopes containing the original and the copies shall then be
enclosed in one single envelope. The rest of the procedure shall be
in accordance with ITB 21.2 and ITB 21.3.

(b) Bidders submitting Bids electronically shall follow the electronic bid
submission procedures specified in the BDS.

21.2 The inner and outer envelopes shall

(a) bear the name and address of the Bidder;

(b) be addressed to the Employer as provided in BDS 22.1;

(c) bear the specific identification of this bidding process indicated in

BDS 1.1; and

(d) bear a warning not to open before the time and date for bid opening.

21.3 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.

22. Deadline for 22.1 Bids must be received by the Employer at the address and no later than the
Submission date and time indicated in the BDS.
of Bids
22.2 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.

23. Late Bids 23.1 The Employer shall not consider any Bid that arrives after the deadline for
submission of bids, in accordance with ITB 22. Any Bid received by the
Employer after the deadline for submission of Bids shall be declared late,
rejected, and returned unopened to the Bidder.

24. Withdrawal, 24.1 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 Modification and shall include a copy of the authorization in accordance with ITB 20.2,
of Bids (except that withdrawal notices do not require copies). The corresponding
substitution or modification of the Bid must accompany the respective written
notice. All notices must be

(a) prepared and submitted in accordance with ITB 20 and ITB 21 (except
that withdrawal notices do not require copies), and in addition,
the respective envelopes shall be clearly marked “WITHDRAWAL,”
“SUBSTITUTION,” “MODIFICATION;” and
Instructions to Bidders 21

(b) received by the Employer prior to the deadline prescribed for submission
of Bids, in accordance with ITB 22.

24.2 Bids requested to be withdrawn in accordance with ITB 24.1 shall be returned
unopened to the Bidders.

24.3 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 Bid or any extension thereof.

25. Bid Opening 25.1 The Employer shall open the Bids in public at the address, on the date, and time
specified in the BDS in the presence of Bidders’ designated representatives and
anyone who choose to attend. Any specific electronic bid opening procedures
required if electronic bidding is permitted in accordance with ITB 21.1, shall be
as specified in the BDS.

25.2 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. Next, envelopes marked “SUBSTITUTION”
shall be opened and read out and exchanged with the corresponding Bid being
substituted, and the substituted Bid shall not be opened, but returned to
the Bidder. No bid substitution shall be permitted unless the corresponding
substitution notice contains a valid authorization to request the substitution
and is read out at bid opening. Envelopes marked “MODIFICATION” shall be
opened and read out with the corresponding Bid. No bid modification shall be
permitted unless the corresponding modification notice contains a valid
authorization to request the modification and is read out at bid opening.
Only envelopes that are opened and read out at bid opening shall be considered
further.

25.3 All other envelopes shall be opened one at a time, reading out the name of
the Bidder; the Bid Price(s), including any discounts and alternative bids and
indicating whether there is a modification; the presence of a bid security or
Bid-Securing Declaration, if required; and any other details as the Employer
may consider appropriate. Only discounts and alternative offers read out at bid
opening shall be considered for evaluation. Unless otherwise specified in the
BDS, all pages of the Letter of Bid and Schedules are to be initialed by at least
three representatives of the Employer attending the bid opening. No Bid shall
be rejected at bid opening except for late Bids, in accordance with ITB 23.1.

25.4 The Employer shall prepare a record of the bid opening that shall include,
as a minimum, the name of the Bidder and whether there is a withdrawal,
substitution, or modification; the Bid Price, per contract if applicable,
including any discounts and alternative offers; 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.
22 User’s guide to procurement of works—SMALL CONTRACTS

E. Evaluation and Comparison of Bids

26. Confidentiality 26.1 Information relating to the examination, evaluation, comparison, and
postqualification of Bids and recommendation of contract award, shall not
be disclosed to Bidders or any other persons not officially concerned with
such process until information on the Contract award is communicated to all
Bidders.

26.2 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.

26.3 Notwithstanding ITB 26.2, 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 may do so in writing.

27. Clarification 27.1 To assist in the examination, evaluation, and comparison of the bids, and
of Bids 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
prices or substance of the 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 31.

27.2 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.

28. Deviations, 28.1 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

complete acceptance of the requirements specified in the Bidding
Document; and

(c) “Omission” is the failure to submit part or all of the information or

documentation required in the Bidding Document.

29. Determination of 29.1 The Employer’s determination of a Bid’s responsiveness is to be based on the
Responsiveness contents of the Bid itself, as defined in ITB 11.

29.2 A substantially responsive Bid is 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 Works 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
Instructions to Bidders 23

(b) if rectified, would unfairly affect the competitive position of other

Bidders presenting substantially responsive Bids.

29.3 The Employer shall examine the technical aspects of the Bid submitted in
accordance with ITB 16, 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.

29.4 If a Bid is not substantially responsive to the requirements of the Bidding

Document, it shall be rejected by the Employer and may not subsequently
be made responsive by correction of the material deviation, reservation,
or omission.

30. Nonmaterial 30.1 Provided that a Bid is substantially responsive, the Employer may waive
Nonconformities any nonconformities in the Bid that do not constitute a material deviation,
reservation, or omission.

30.2 Provided that a Bid is 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
Bid related to documentation requirements. Requesting information or
documentation on such nonconformities shall not be related to any aspect of
the price of the Bid. Failure of the Bidder to comply with the request may result
in the rejection of its Bid.

30.3 Provided that a Bid is substantially responsive, the Employer shall rectify
quantifiable nonmaterial nonconformities related to the Bid Price. To this
effect, the Bid Price may 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 methods indicated in Section 3 (Evaluation and
Qualification Criteria).

31. Correction of 31.1 Provided that the Bid is substantially responsive, the Employer shall correct
Arithmetical arithmetical errors on the following basis:
Errors
(a) Only for unit price contracts, if there is a discrepancy between the unit
price and the total price that is obtained by multiplying the unit price and
quantity, the unit price shall prevail and the total price shall be corrected,
unless in the opinion of the Employer there is an obvious misplacement of
the decimal point in the unit price, in which case the total price as quoted
shall govern and the unit price shall be corrected.

(b) If there is an error in a total corresponding to the addition or subtraction

of subtotals, the subtotals shall prevail and the total shall be corrected.

(c) If there is a discrepancy between the bid price in the Summary of Bill of
Quantities and the bid amount in item (c) of the Letter of Bid, the bid
price in the Summary of Bill of Quantities will prevail and the bid amount
in item (c) of the Letter of Bid will be corrected.

(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
arithmetic error, in which case the amount in figures shall prevail subject
to (a), (b) and (c) above.
24 User’s guide to procurement of works—SMALL CONTRACTS

31.2 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
forfeited, or its Bid-Securing Declaration executed.

32. Conversion to 32.1 For evaluation and comparison purposes, the currency(ies) of the Bid shall be
Single Currency converted into a single currency as specified in the BDS.

33. Margin of 33.1 Unless otherwise specified in the BDS, a margin of preference shall not apply.
Preference

34. Evaluation 34.1 The Employer shall use the criteria and methodologies listed in this Clause.
of Bids No other evaluation criteria or methodologies shall be permitted.

34.2 To evaluate a Bid, the Employer shall consider the following:

(a) the bid price, excluding Provisional Sums and the provision, if any, for
contingencies in the Summary Bill of Quantities for admeasurement
contracts, or Activity Schedule for lump sum contracts, but including
Daywork items, where priced competitively;

(b) price adjustment for correction of arithmetic errors in accordance with

ITB 31.1;

(c) price adjustment due to discounts offered in accordance with ITB 14.4;

(d) converting the amount resulting from applying (a) to (c) above,
if relevant, to a single currency in accordance with ITB 32;

(e) adjustment for nonconformities in accordance with ITB 30.3; and

(f) application of all the evaluation factors indicated in Section 3 (Evaluation

and Qualification Criteria).

34.3 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.

34.4 If this Bidding Document allows Bidders to quote separate prices for different
contracts, and to award multiple contracts to a single Bidder, the methodology
to determine the lowest evaluated price of the contract combinations,
including any discounts offered in the Letter of Bid, is specified in Section 3
(Evaluation and Qualification Criteria).

34.5 If the Bid for an admeasurement contract, which results in the lowest
Evaluated Bid Price, is seriously unbalanced, front loaded or substantially
below updated estimates in the opinion of the Employer, the Employer may
require the Bidder to produce detailed price analyses for any or all items of
the Bill of Quantities, to demonstrate the internal consistency of those prices
with the construction methods and schedule proposed. After evaluation
of the price analyses, taking into consideration the schedule of estimated
Contract 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.
Instructions to Bidders 25

35. Comparison 35.1 The Employer shall compare all substantially responsive Bids to determine the
of Bids lowest evaluated Bid, in accordance with ITB 34.2.

36. Qualification of 36.1 The Employer shall determine to its satisfaction whether the Bidder that
the Bidder is selected as having submitted the lowest evaluated and substantially
responsive Bid meets the qualifying criteria specified in Section 3 (Evaluation
and Qualification Criteria).

36.2 The determination shall be based upon an examination of the documentary

evidence of the Bidder’s qualifications submitted by the Bidder, pursuant to
ITB 17.1.

36.3 An affirmative determination shall be a prerequisite for award of the Contract

to the Bidder. A negative determination shall result in disqualification of the
Bid, in which event the Employer shall proceed to the next lowest evaluated
bid to make a similar determination of that Bidder’s qualifications to perform
satisfactorily.

37. Employer’s Right 37.1 The Employer reserves the right to accept or reject any Bid, and to annul
to Accept Any Bid, the bidding process and reject all Bids at any time prior to contract award,
and to Reject Any without thereby incurring any liability to Bidders. In case of annulment, all Bids
or All Bids submitted and specifically, bid securities, shall be promptly returned to the
Bidders.

F. Award of Contract
38. Award Criteria 38.1 The Employer shall award the Contract to the Bidder whose offer has been
determined to be the lowest evaluated Bid and is substantially responsive to
the Bidding Document, provided further that the Bidder is determined to be
qualified to perform the Contract satisfactorily.

39. Notification 39.1 Prior to the expiration of the period of bid validity, the Employer shall notify the
of Award successful Bidder, in writing, that its Bid has been accepted.

39.2 At the same time, the Employer shall also notify all other Bidders of the results
of the bidding. The Employer will publish in an English language newspaper
or well-known freely accessible website the results identifying the bid and lot
numbers and the following information: (i) name of each Bidder who submitted
a Bid; (ii) bid prices as read out at bid opening; (iii) name and evaluated prices
of each Bid that was evaluated; (iv) name of bidders whose bids were rejected
and the reasons for their rejection; and (v) name of the winning Bidder, and
the price it offered, as well as the duration and summary scope of the contract
awarded. After publication of the 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 to any unsuccessful Bidder who, after publication of contract award,
requests a debriefing.

39.3 Until a formal contract is prepared and executed, the notification of award
shall constitute a binding Contract.
26 User’s guide to procurement of works—SMALL CONTRACTS

40. Signing of 40.1 Promptly after notification, the Employer shall send the successful Bidder the
Contract Contract Agreement.

40.2 Within 28 days of receipt of the Contract Agreement, the successful Bidder
shall sign, date, and return it to the Employer.

41. Performance 41.1 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 34.5, using for that purpose the
Performance Security Form included in Section 9 (Contract Forms), or another
form acceptable to the Employer.

41.2 Failure of the successful Bidder to submit the above-mentioned Performance

Security or to sign the Contract Agreement 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.

41.3 The above provision shall also apply to the furnishing of a domestic preference
security, if so required.
27

Section 2 – Bid Data Sheet

This section consists of provisions that are specific to each procurement and supplement the information or
requirements included in Section 1 – Instructions to Bidders.

A. General
ITB 1.1 The number of the Invitation for Bids (IFB) is: . . . . . [insert name and IFB number] . . . . .

ITB 1.1 The Employer is: . . . . . [insert complete name of the employer] . . . . .

ITB 1.1 The name of the bidding process is: . . . . . [insert complete name] . . . . .
The identification number of the bidding process is: . . . . . [insert identification number] . . . . .
The number and identification of lots comprising this bidding process is: . . . . . [if there are no
lots, insert “None.” If there are lots, insert a list of lots identifying each lot by number and title] . . . . .

ITB 2.1 The Borrower is: . . . . . [insert complete name of the borrower] . . . . .

ITB 2.1 The name of the Project is: . . . . . [insert name of the project] . . . . .

B. Contents of Bidding Documents

ITB 7.1 For clarification purposes only, the Employer’s address is:
Attention: . . . . . [insert full name of the person, if applicable] . . . . .
Street address: . . . . . [insert street address and number] . . . . .
Floor/Room number: . . . . . [insert floor and room number, if applicable] . . . . .
City: . . . . . [insert name of the city or town] . . . . .
ZIP code: . . . . . [insert postal (ZIP) code, if applicable] . . . . .
Country: . . . . . [insert name of country] . . . . .
Telephone: . . . . . [insert telephone number, including country and city codes] . . . . .
Fax: . . . . . [insert fax number, with country and city codes] . . . . .
E-mail: . . . . . [insert e-mail address, if applicable] . . . . .
Requests for clarification should be received by the Employer no later than: . . . . . [insert number
of days, between 7 days for NCB and other very small contracts to 21 days for ICB contracts] . . . . ..
28 User’s guide to procurement of works—SMALL CONTRACTS

ITB 7.4 A Pre-Bid meeting . . . . . [insert “shall” or “shall not”] . . . . . take place.

. . . . . [if a pre-bid meeting takes place, insert date, time, and place below] . . . . .

Date:

Time:

Place:

A site visit conducted by the Employer . . . . . [insert “will” or “will not be”] . . . . . organized.

C. Preparation of Bids
ITB 10.1 The language of the Bid is: . . . [insert “English” for ICB, or either “English” or local language for NCB] . . .

ITB 11.1(b) In accordance with ITB 12 and ITB 14, the following schedules shall be submitted with
the Bid, including the priced Bill of Quantities for admeasurement contracts and Activity
Schedule for lump sum contracts: . . . . . [insert schedules such as schedule of equipment, key personnel
and subcontractors, and data on financial resources for meeting the required financial resources requirement
that must be submitted with the Bid together with the price schedules] . . . . .

ITB 11.1(h) The Bidder shall submit with its Bid the following additional documents: . . . . . [insert type of any
additional documents not already listed in ITB 11.1 that must be submitted with the Bid] . . . . .

ITB 12.1 [Choose one of the following options as appropriate.]

[For admeasurement contracts:]

The units and rates in figures entered into the Bill of Quantities and Daywork Schedule should
be typewritten or if written by hand, must be in print form. Bill of Quantities and Daywork
Schedule not presented accordingly may be considered nonresponsive.

Or

[For lump sum contracts:]

The units and rates in figures entered into the Activity Schedule should be typewritten or if
written by hand, must be in print form. Activity Schedule not presented accordingly may be
considered nonresponsive.

ITB 13.1 Alternative Bids . . . . . [insert “shall be” or “shall not be”] . . . . . permitted.

ITB 13.2 Alternative times for completion . . . . . [insert “shall be” or “shall not be”] . . . . . permitted.

If alternative times for completion are permitted, the evaluation method will be as specified in
Section 3 (Evaluation and Qualification Criteria).

ITB 13.4 Alternative technical solutions shall be permitted for the following parts of the Works:
. . . . . [insert parts of the Works] . . . . .

If alternative technical solutions are permitted, the evaluation method will be as specified in
Section 3 (Evaluation and Qualification Criteria).
Bid Data Sheet 29

ITB 14.5 The prices quoted by the Bidder . . . . . [insert either “shall be fixed” or “shall be adjustable”] . . . . .

[If prices are to be adjustable, insert: “The formula for adjusting the prices and explanatory details
are specified in the GCC Clause 54.1. Bidder shall fill out the Tables of Adjustment Data in
Section 4 (Bidding Forms).”]

[Use ”Adjustable” where the contract period exceeds 18 months as required by the Procurement Guidelines.
Prices payable to the Contractor shall be subject to price adjustment during the performance of the Contract.]

[If prices shall be fixed, the Tables of Adjustment Data in Section 4 (Bidding Forms) shall be removed.]

ITB 15.1 [Choose one of the following options as appropriate.]

[In case of ICB]:

(a) The prices shall be quoted by the Bidder in: . . . . . [insert the currency]. . . . . A Bidder
expecting to incur expenditures in other currencies for inputs to the Works
supplied from outside the Employer’s country (referred to as the “foreign currency
requirements”) and wishing to be paid accordingly, shall indicate up to three foreign
currencies of their choice expressed as a percentage of the bid price, together with
the exchange rates used in the calculations in the Schedule of Payment Currencies
included in Section 4 (Bidding Forms).

(b) The rates of exchange to be used by the Bidder for currency conversion during bid
preparation shall be the selling rates for similar transactions prevailing on the date
28 days prior to the deadline for submission of Bids published by . . . . . [Employer to
indicate here the source of the exchange rates, i.e., Central Bank of the Borrower’s country, or commercial
bank, or internationally circulated newspaper] . . . . . If exchange rates are not so published
for certain currencies, the Bidder shall state the rates used and the source. Bidders
should note that for the purpose of payments, the exchange rates confirmed by . . . . .
[Employer to indicate here the source of the exchange rates, i.e., Central Bank of the Borrower’s country,
or commercial bank, or internationally circulated newspaper] . . . . . as the selling rates prevailing
28 days prior to the deadline for submission of bids shall apply for the duration of the
Contract so that no currency exchange risk is borne by the Bidder.

(c) Foreign currency requirements indicated by the Bidders in the Schedule of Payment
Currencies shall include but not limited to the specific requirements for

• expatriate staff and labor employed directly on the Works;

• social, insurance, medical, and other charges relating to such expatriate staff
and labor, and foreign travel expenses;
• imported materials, both temporary and permanent, including fuels, oil, and
lubricants required for the Works;
• depreciation and usage of imported Plant and Contractor’s Equipment,
including spare parts, required for the Works;
• foreign insurance and freight charges for imported materials, Plant and
Contractor’s Equipment, including spare parts; and
• overhead expenses, fees, profit, and financial charges arising outside the
Employer’s country in connection with the Works.
30 User’s guide to procurement of works—SMALL CONTRACTS

(d) Bidders may be required by the Employer to clarify their foreign currency
requirements, and to substantiate that the amounts included in the unit rates
and prices and shown in the Schedule of Payment Currencies are reasonable and
responsive to item (c) above, in which case a detailed breakdown of its foreign
currency requirements shall be provided by the Bidder.

(e) Bidders should note that during the progress of the Works, the foreign currency
requirements of the outstanding balance of the Contract Price may be adjusted
by agreement between the Employer and the Contractor in order to reflect any
changes in foreign currency requirements for the Contract, in accordance with
Subclause 54.1 of the Conditions of Contract. Any such adjustment shall be
effected by comparing the percentages quoted in the bid with the amounts already
used in the Works and the Contractor’s future needs for imported items.

[or]

[In case of NCB]

The prices shall be quoted by the Bidder and shall be paid in: [insert the local currency].

ITB 18.1 The bid validity period shall be . . . . . [insert the number of days deemed appropriate] . . . . . days.

[The period should be sufficient to permit completion of evaluation and comparison of bids, review of the
recommended selection by the ADB (if so required), acquire all necessary approvals, and notify the successful
Bidder of the award. Normally, the validity period should not exceed 120 days.]

ITB 19.1 [Choose one of the following options as appropriate.]

Neither a bid security nor a Bid-Securing Declaration is required.

[or]

The Bidder shall furnish a bid security in the amount of . . . . . [insert amount and currency.
The amount of the bid security should be stated as a fixed amount, normally computed as 1% to 2% of the
estimated contract value.] . . . . .

[or]

The Bidder shall furnish a Bid-Securing Declaration.

ITB 19.2 The ineligibility period will be . . . . . [insert number of years] . . . . .

ITB 19.4 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 . . . . . [insert number of days; normally 14 days] . . . . . 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 20.1 In addition to the original Bid, the number of copies is: . . . . [insert number of copies required] . . . .
Bid Data Sheet 31

ITB 20.2 The written confirmation of authorization to sign on behalf of the Bidder shall consist of:
. . . . . [insert the name and description of the documentation required to demonstrate the authority of
the signatory to sign the bid. Employer may wish to consider the following language: “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 Bidder is an intended or an existing joint
venture, the power of attorney should be signed by all partners and specify the authority of the named
representative of the Joint Venture to sign on behalf of, and legally bind, the intended or existing Joint Venture.
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 20.2 The Bidder shall submit an acceptable authorization within . . . . . [insert number of days, normally
14 days] . . . . . days.

D. Submission and Opening of Bids

ITB 21.1 Bidders . . . [insert “shall” or “shall not”] . . . have the option of submitting their Bids electronically.

ITB 21.1(b) If Bidders shall have the option of submitting their Bids electronically, the electronic bidding
submission procedures shall be: . . . . . [insert a description of the electronic bidding submission
procedures] . . . . .

ITB 22.1 For bid submission purposes only, the Employer’s address is: . . . . . [insert all required and
applicable information] . . . . .

Attention:
Street address:
Floor/Room number:
City:
ZIP code:
Country:
The deadline for bid submission is:
Date:
Time:

ITB 25.1 The bid opening shall take place at: . . . . . [insert all required and applicable information] . . . . .
Street address:
Floor/Room number:
City:
Country:
Date:
Time:

ITB 25.1 If electronic bid submission is permitted in accordance with ITB 21.1, the specific bid
opening procedures shall be: . . . . . [insert description of the procedures] . . . . .

ITB 25.3 The Letter of Bid and Schedules shall be initialed by . . . . . [insert number of initials] . . . . .
representatives of the Employer attending the Bid opening.
32 User’s guide to procurement of works—SMALL CONTRACTS

E. Evaluation and Comparison of Bids

ITB 32.1 [Pursuant to ITB 15.1, choose one of the following options as appropriate.]

[In case of ICB]

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:

[insert the name of the currency]

The source of the selling exchange rate shall be: . . . . . [insert the name of the source of the exchange
rates, which should be the Central Bank in the Employer’s country or specify another institution that carries
out the function of a central bank] . . . . .

The date for the selling exchange rate shall be: . . . . . [specify any date (day/month/year) not earlier
than 28 days prior to the deadline for submission of the bids or later than the original date for the expiry of bid
validity, which may, for example, be the date of the deadline for submission of bids] . . . . .

Or

[In case of NCB]

Not applicable.

ITB 33.1 A margin of preference . . . . . [insert “shall” or “shall not”] . . . . . apply.

[If a margin of preference applies, insert “The application methodology shall be as stipulated in
Section 3 (Evaluation and Qualification Criteria)”.]
33

Section 3 – Evaluation and

Qualification Criteria
Note

This section contains the criteria that the employer shall use to evaluate bids and qualify bidders if the bidding was not preceded
by a prequalification exercise and postqualification is applied. ADB requires bidders to be qualified by meeting predefined, precise
minimum requirements. The method entails setting pass–fail criteria, which, if not met by the bidder, results in disqualification.
It will therefore be necessary to ensure that a bidder’s risk of having its bid rejected on grounds of qualification is remote if due
diligence is exercised by the bidder during bid preparation. For that purpose, clear-cut, fail-pass qualification criteria need to be
defined and indicated in the Invitation for Bids and the Bidding Document to enable bidders to make an informed decision whether
to pursue a specific contract and, if so, whether to pursue it as a single entity or in joint venture. The criteria adopted must relate to
characteristics that are essential to ensure satisfactory execution of the contract, and must be stated in clear terms. In accordance
with ITB 34 and ITB 36, no other methods, criteria and factors shall be used. The bidder shall provide all the information requested
in the forms included in Section 4 (Bidding Forms).
In case the bidding was preceded by a prequalification process, updating of information pertaining to a bidder’s eligibility, pending
litigation and arbitration (if it was indicated as an applicable criterion), and financial situation will be necessary during bidding.

Table of Criteria
1. Evaluation................................................................................................................................................................ 35
1.1 Adequacy of Technical Proposal................................................................................................................ 35
1.2 Completion Time ......................................................................................................................................... 35
1.3 Technical Alternatives................................................................................................................................. 35
1.4 Quantifiable Nonconformities and Omissions........................................................................................ 35
1.5 Margin of Preference.................................................................................................................................... 36
1.6 Multiple Contracts........................................................................................................................................ 37

2. Qualification............................................................................................................................................................ 38
2.1 Eligibility......................................................................................................................................................... 38
2.1.1 Nationality................................................................................................................................................................... 38
2.1.2 Conflict of Interest................................................................................................................................................... 38
2.1.3 ADB Eligibility............................................................................................................................................................. 38
2.1.4 Government-Owned Enterprise......................................................................................................................... 38
2.1.5 United Nations Eligibility...................................................................................................................................... 38
34 User’s guide to procurement of works—SMALL CONTRACTS

2.2 Pending Litigation and Arbitration............................................................................................................ 39

2.2.1 Pending Litigation and Arbitration..................................................................................................................... 39
2.3 Financial Situation........................................................................................................................................ 40
2.3.1 Historical Financial Performance........................................................................................................................ 40
2.3.2 Average Annual Construction Turnover.......................................................................................................... 41
2.3.3 Financial Resources ................................................................................................................................................. 42
2.4 Construction Experience............................................................................................................................. 44
2.4.1 Contracts of Similar Size and Nature................................................................................................................ 44
2.4.2 Construction Experience in Key Activities...................................................................................................... 45
Evaluation and Qualification Criteria 35

1. Evaluation
In addition to the criteria listed in ITB 34.2 (a)–(e), other relevant factors are as follows:

NOTE The employer shall include only the applicable criteria from those listed below.

1.1 Adequacy of Technical Proposal

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).

Noncompliance with equipment and personnel requirements described in Section 6 (Employer’s

Requirements) shall not normally be a ground for bid rejection, and such noncompliance will be subject to
clarification during bid evaluation and rectification prior to contract award.

Note

The employer shall refer to the appropriate forms in Section 4 to be filled out, if provided. The employer shall assess
whether proposed site organization, method statement, mobilization, and construction schedule described in Section 4
(Bidding Forms) are presented in consistent manner and comply with requirements stipulated in Section 6 (Employer’s
Requirements) without material deviation, reservation, or omission.

1.2 Completion Time

An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows:

NOTE The employer shall describe how this factor will be evaluated.

1.3 Technical Alternatives

Technical alternatives, if permitted under ITB 13.4, will be evaluated as follows:

NOTE The employer shall describe how this factor will be evaluated.

1.4 Quantifiable Nonconformities and Omissions

Subject to ITB 14.2 and ITB 34.2, the evaluated cost of quantifiable nonconformities including omissions,
is determined as follows:

[Insert in bidding document: “Pursuant to ITB 30.3, the cost of all quantifiable nonmaterial nonconformities
shall be evaluated, including omissions in Daywork where competitively priced but excluding omission of
prices in the Bill of Quantities. 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.”]
36 User’s guide to procurement of works—SMALL CONTRACTS

Note

The cost of minor omissions or missing items should be added to the bid price to allow for bid comparison on an equal basis.
Omissions in Daywork, if priced competitively, are covered by the price adjustment as provided in ITB 34.2(a), but missing
unit prices for items in the Bill of Quantities are excluded as provided in ITB 14.2. The price adjustment should be based on
a reasonable estimate of the cost by the executing agency, engineer, consultant, or bid evaluation committee, taking into
consideration the corresponding quoted prices from other conforming bids. The price adjustment should be based on the
fair price of the omitted item. The most frequently used method is to use the price equal to the highest price quoted for the
same item by the other responsive bidders.

1.5 Margin of Preference (Applicable for ICB only)

1.5.1 In comparing domestic bids with foreign bids, a margin of preference will be granted to eligible
domestic contractors, as defined below, in accordance with the following provisions:

(a) F or application of domestic preference, all responsive bids will first be classified into the
following two Groups:

(i) Group A: bids offered by Domestic Contractors and Joint Ventures eligible for the
preference in accordance with the criteria described below; and

(ii) Group B: bids offered by other Contractors.

(b) T
he lowest evaluated Bid of each group will then be determined by comparing all evaluated
Bids in each group among themselves.

(c) S uch lowest evaluated Bids will next be compared with each other and if, as a result of this
comparison, a Bid from Group A is found to be the lowest, it will be selected for the award of
contract.

(d) I f, however, as a result of the comparison under (c) above, the lowest Bid is found to be from
Group B, it will be further compared with the lowest evaluated Bid from Group A. For the
purpose of this further comparison only an upward adjustment will be made to the lowest
evaluated bid price of Group B by adding an amount equal to seven and one-half percent
(7.5%) of the bid price. If, after such comparison, the Group A bid is determined to be the
lowest, it will be selected for the award of contract; if not, the lowest evaluated Bid from
Group B will be selected.

1.5.2 D
omestic Contractors and Joint Venture firms must meet the following minimum criteria for
eligibility under the domestic preference scheme.

(i) Domestic Contractors

• are incorporated or established under the laws of the borrower’s country,

• have majority ownership by nationals of the borrower, and

• will not subcontract more than 50% of the total value of the work to foreign contractors.

(ii) A
Joint Venture between a Domestic Contractor and its foreign partner is eligible for the
preference only if

• the Domestic Partner(s) is individually eligible for the preference according to the criteria
stated in 1.5.2(i);
Evaluation and Qualification Criteria 37

• the Domestic Partner(s) would not qualify for the work on technical or financial grounds
without the foreign participation; and

• the Domestic Partner(s), under the arrangements proposed, carry out at least fifty percent
(50%) of the value of the work.

1.5.3 C
ontractors applying for the preference provide information with their bids, including details of
ownership. This is to determine if, under the applicable criteria, a particular firm or group of firms
qualifies for the preference.

1.5.4 If the Contract is awarded to a Bidder who has received the preference pursuant to the foregoing
provisions, such Contractor shall not subcontract to foreign contractors more than fifty percent
(50%) of the total value of their work.

1.5.5 C
omparison of Bids will only be made between Bids that conform fully to the specifications.
In the event that the alternative Bid does not conform to the specifications, if any, of the Bidder
whose main Bid conforms to the specifications and is the lowest evaluated, but is considered
more advantageous than its main Bid, such alternative Bid may be considered.

1.5.6 A
Joint Venture that is awarded the Contract as a result of the application of the above domestic
preference provisions, shall furnish the Employer, together with the Performance Security,
a “Domestic Preference Security” to guarantee that the profit and loss distribution and work-sharing
arrangements with which the joint venture satisfied the criteria of Subclause 1.5.2 (ii) will not be
modified throughout the execution of the Contract. The domestic preference security shall be in
the form of an unconditional on-demand bank guarantee or standby letter of credit acceptable
to the Employer, for an amount in a convertible currency equivalent to the difference between
the Joint Venture’s bid price and the bid price of the lowest foreign bid. The domestic preference
security shall be issued either (a) by a bank located in the country of the Employer, or (b) directly by
a foreign bank acceptable to the Employer. The domestic preference security shall be valid until the
Contractor has substantially completed the Works and a Certificate of Completion of the Works has
been issued by the Project Manager in accordance with the provisions of GCC 69 and such security
shall be returned to the Contractor together with the Certificate of Completion of the Works.

1.6 Multiple Contracts

Works are grouped in multiple contracts and pursuant to ITB 34.4, the Employer shall evaluate and compare
Bids on the basis of a contract, or a combination of contracts, or as a total of contracts in order to arrive at
the least-cost combination for the Employer by taking into account discounts offered by Bidders in case of
award of multiple contracts.

If a Bidder submits several successful (lowest evaluated substantially responsive) bids, the evaluation
will also include an assessment of the Bidder’s capacity to meet the following aggregated requirements as
presented in the bid:

• Average annual construction turnover, Note

• Financial resources,
The employer shall refer to the applicable
• Equipment to be allocated, and qualification requirement(s) for each
contract in Part 2 of this section.
• Personnel to be fielded.
38 User’s guide to procurement of works—SMALL CONTRACTS

2. Qualification
It is the legal entity or entities comprising the Bidder, and not the Bidder’s parent companies, subsidiaries,
or affiliates, that must satisfy the qualification criteria described below.

2.1 Eligibility

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

2.1.1 Nationality

Nationality in accordance with must meet must meet must meet not Forms
ITB Subclause 4.2. requirement requirement requirement applicable ELI – 1; ELI – 2
with attachments

2.1.2 Conflict of Interest

No conflicts of interest must meet must meet must meet not Letter of Bid
in accordance with requirement requirement requirement applicable
ITB Subclause 4.3.

2.1.3 ADB Eligibility

Not having been declared must meet must meet must meet not Letter of Bid
ineligible by ADB, as described requirement requirement requirement applicable
in ITB Subclause 4.4.

2.1.4 Government-Owned Enterprise

Bidder required to must meet must meet must meet not Forms
meet conditions of requirement requirement requirement applicable ELI – 1; ELI – 2
ITB Subclause 4.5. with attachments

2.1.5 United Nations Eligibility

Not having been excluded by an must meet must meet must meet not Letter of Bid
act of compliance with a United requirement requirement requirement applicable
Nations Security Council
resolution in accordance with
ITB Subclause 4.7.
Evaluation and Qualification Criteria 39

2.2 Pending Litigation and Arbitration

Pending litigation and arbitration criterion shall not apply.1

2.2.1 Pending Litigation and Arbitration

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

All pending litigation and must meet not must meet not Form LIT – 1
arbitration, if any, shall be requirement applicable requirement applicable
treated as resolved against the by itself or by itself or
Bidder and so shall in total not as partner as partner
represent more than . . . . . . . . . . to past or to past or
. . . . . . .a percent of the Bidder’s existing Joint existing Joint
net worth calculated as the Venture Venture
difference between total assets
and total liabilities.

a
If the criterion is applied, the employer should indicate a percentage within the range of 50%–100% of a bidder’s net worth

1
The employer may choose to apply this criterion on an exceptional basis. If the employer chooses to apply this criterion, it should
indicate “shall apply” and use the table below.
40 User’s guide to procurement of works—SMALL CONTRACTS

2.3 Financial Situation

2.3.1 Historical Financial Performance

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

Submission of audited financial must meet not must meet not Form FIN – 1 with
statements or, if not required requirement applicable requirement applicable attachments
by the law of the Bidder’s
country, other financial
statements acceptable to the
Employer, for the last . . . . . .
. . . . . .a 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.

a
Indicate time period between three (3) years and five (5) years.

Note

The financial information provided by the bidder should be reviewed in its entirety to allow a truly informed judgment, and the
pass–fail decision on the financial position of the bidder should be given on this basis. Any abnormal features that may lead to
financial problems should alert the employer to seek expert professional advice for further review and interpretation.
Evaluation and Qualification Criteria 41

2.3.2 Average Annual Construction Turnover

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

Minimum average annual must meet must meet must meetc must meetd Form FIN – 2
construction turnover of requirement requirement .......... ........
$ . . . . . . . . . . .a calculated of the of the
as total certified requirement requirement
payments received for
contracts in progress or
completed, within the
last . . . . . . . .b years.

a
he amount stated should normally not be less than two times the annualized value of the subject contract, expressed as
T
2 x V/T; where V is the employer’s estimated cost (including contingencies), T is the contract duration in years. For contract
duration of up to 1 year, T of “1” should be used. The multiplier of 2 may be reduced for very large contracts but should not
be less than 1.5.
b
Insert number of years in words and figures and indicate time period between three (3) years and five (5) years.
c
The employer is to define this value based on the minimum amount required that all partners of the joint venture must meet
taking joint and several liability into account, usually at least 25%.
d
The employer is to define this value based on the minimum amount required that one partner of the joint venture must meet,
usually at least 40%.
42 User’s guide to procurement of works—SMALL CONTRACTS

2.3.3 Financial Resources1

If the bid evaluation process and the decision for the award of the Contract takes more than one (1) year from
the date of bid submission, Bidders may be asked to resubmit their current contract commitments and latest
information on financial resources supported by latest audited accounts/audited financial statements, or if
not required by the law of the Bidder’s country, other financial statements acceptable to the Employer, and the
Bidders’ financial capacity will be reassessed on this basis.

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

For Single Entities: must meet not not not Form FIN – 3
requirement applicable applicable applicable and
The Bidder must Form FIN – 4
demonstrate that its
financial resources defined
in Form FIN – 3, less
its financial obligations
for its current contract
commitments defined
in Form FIN – 4, meet
or exceed the total
requirement for the Subject
Contract of . . . . . . . . . . .a

For Joint Ventures: not not not must meet Form FIN – 3
applicable applicable applicable requirement and
(1) O
ne partner must Form FIN – 4
demonstrate that its
financial resources
defined in Form
FIN – 3, less its
financial obligations for
its own current contract
commitments defined
in Form FIN – 4,
meet or exceed its
required share of . . . .
. . . . . . .b from the total
requirement for the
Subject Contract.

AND

1
The employer has the option to move this criterion from Section 3 (Evaluation and Qualification Criteria) to Section 6
(Employer’s Requirements), in which case:
(a) the employer shall confirm compliance with the financial resources prior to award of contract in accordance with ITB 38.1
Award Criteria; and
(b) in place of the Financial Resources criterion, the employer shall require the bidder to submit together with its bid, and for
confirmation during bid evaluation, a Letter of Undertaking to comply with the financial resources given in Section 6 prior
to award of contract.
Evaluation and Qualification Criteria 43

(2) E
ach partner must not not must meet not Form FIN – 3
demonstrate applicable applicable requirement applicable and
that its financial Form FIN – 4
resources defined in
Form FIN – 3, less its
financial obligations for
its own current contract
commitments defined
in Form FIN – 4, meet
or exceed its required
share of . . . . . . . . . . .c
from the total
requirement for the
Subject Contract.

AND

(3) T
he joint venture not must meet not not Form FIN – 3
must demonstrate applicable requirement applicable applicable and
that the combined Form FIN – 4
financial resources of
all partners defined
in Form FIN – 3, less
all the partners’ total
financial obligations for
the current contract
commitments defined
in Form FIN – 4, meet
or exceed the total
requirement for the
Subject Contract of
. . . . . . . . . . .a

a
The employer is to specify the total requirement for the Subject Contract based on the following calculation:
3 (or 4) x Estimated Contract Value (Inclusive of Taxes and Duties)
Completion Period in Months
b
he employer is to define this value based on the minimum amount one partner of the joint venture must meet, usually
T
at least 40% of the total requirement for the Subject Contract. This value is to be carried forward to Form FIN – 5B when
it is used.
c
The employer is to define this value based on the minimum amount each partner of the joint venture must meet, usually
at least 25% of the total requirement for the Subject Contract. This value is to be carried forward to Form FIN – 5B when
it is used.

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.
44 User’s guide to procurement of works—SMALL CONTRACTS

2.4 Construction Experience

2.4.1 Contracts of Similar Size and Nature1

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

Participation in at least must meet not not must meet Form EXP – 1
one contract that has been requirement applicable applicablec requirement
successfully or substantially
completed within the last . . . . .a
years and that is similar to the
proposed works, where the value
of the Bidder’s participation
exceeds $ . . . . . . . .b The similarity
of the Bidder’s participation shall
be based on the physical size,
nature of works, complexity,
methods, technology, or other
characteristics as described
in Section 6 (Employer’s
Requirements).

Or

Participation in at least two must meet must meet not not Form EXP – 1
contracts that have been requirement requirement as applicablec applicable
successfully or substantially follows:
completed within the last . . . . .a Either one partner
years and that are similar to the must meet
proposed works, where the value requirement
of the Bidder’s participation Or
exceeds $ . . . . .b The similarity of any two partners
the Bidder’s participation shall must each
be based on the physical size, demonstrate one
nature of works, complexity, (1) successfully
methods, technology, or other or substantially
characteristics as described completed
in Section 6 (Employer’s contract of similar
Requirements). size and nature

a
Insert number of years in words and figures. The range is normally five (5) years to ten (10) years.
b
Usually 80% of the estimated value of the subject contract. In case of repetitive and contiguous works (e.g., transmission lines,
water pipeline), the employer has the option of specifying a value that is between 50% and 80% of the subject contract value.
c
In case of complex works, the employer may require each partner to demonstrate one successfully or substantially completed
contract of similar nature where such partner’s value of participation exceeds 25% of the subject contract value.

1
The employer has the option of requiring either one or two contracts of similar size and nature and should choose the appropriate
language below.
Evaluation and Qualification Criteria 45

2.4.2 Construction Experience in Key Activities2

(May be complied with by specialist subcontractors. The employer shall require evidence of the subcontracting
agreement from the bidder. A specialist subcontractor is a specialist enterprise engaged for highly specialized
processes, which the main contractor cannot provide.)

Criteria Compliance Requirements Documents

Joint Venture

All Partners Each One Submission

Requirement Single Entity Combined Partner Partner Requirements

For the above or other contracts must meet must meet not not Form EXP – 2
executed during the period requirements requirementsa applicable applicable
stipulated in 2.4.1, a minimum
construction experience in the
following key activities:

a
I n the case of a joint venture bidder, at least one of the partners must have the experience in the key activity if the bidder
itself (not its subcontractor) will carry out the relevant activity.

These requirements for experience in key activities may be waived in simple contracts.

2
Key activities criterion should only test the bidder’s experience in performing highly specialized construction activities (e.g.,
tunneling, dredging, and bridge construction) rather than achievement of specified production rates.
46

Section 4 – Bidding Forms

This section contains the forms to be completed by the Bidder and submitted as part of its Bid.

Table of Forms
Letter of Bid.................................................................................................................................................................... 47

Schedules........................................................................................................................................................................ 49
Schedule of Payment Currencies................................................................................................................................................... 49
Table(s) of Adjustment Data........................................................................................................................................................... 50
Activity Schedule.................................................................................................................................................................................. 51
Bill of Quantities................................................................................................................................................................................... 54

Bid Security..................................................................................................................................................................... 66

Bid-Securing Declaration.............................................................................................................................................. 67

Technical Proposal......................................................................................................................................................... 68
Personnel................................................................................................................................................................................................. 68
Form PER – 1: Proposed Personnel..................................................................................................................................... 68
Form PER – 2: Resumé of Proposed Personnel............................................................................................................... 69
Equipment............................................................................................................................................................................................... 70
Site Organization.................................................................................................................................................................................. 71
Method Statement............................................................................................................................................................................... 71
Mobilization Schedule........................................................................................................................................................................ 71
Construction Schedule...................................................................................................................................................................... 71

Bidder’s Qualification.................................................................................................................................................... 72
Form ELI – 1: Bidder’s Information Sheet................................................................................................................................... 73
Form ELI – 2: Joint Venture Information Sheet........................................................................................................................ 74
Form LIT – 1: Pending Litigation and Arbitration.................................................................................................................... 75
Form FIN – 1: Historical Financial Performance...................................................................................................................... 76
Form FIN – 2: Average Annual Construction Turnover........................................................................................................ 77
Form FIN – 3: Availability of Financial Resources.................................................................................................................... 78
Form FIN – 4: Financial Requirements for Current Contract Commitments............................................................... 79
Form FIN – 5: Self-Assessment Tool for Bidder’s Compliance to Financial Resources............................................ 80
Form EXP – 1: Contracts of Similar Size and Nature ............................................................................................................. 81
Form EXP – 2: Construction Experience in Key Activities................................................................................................... 82
Bidding Forms 47

Letter of Bid
Note

The bidder must accomplish the Letter of Bid on its letterhead clearly showing the bidder’s complete name and address.

Date: .............................................................
ICB/NCB No.: .............................................................
Invitation for Bid No.: .............................................................

To: . . . . . [insert complete name of the employer] . . . . .

We, the undersigned, declare that:

(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 execute in conformity with the Bidding Documents the following Works: . . . . . [insert narrative] . . . . .

(c) The total price of our Bid, excluding any discounts offered in item (d) below is:

[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 Summary of Bill of Quantities for admeasurement contracts or Activity Schedule for
lump sum contracts should be entered by the bidder inside this box. Absence of the total bid price in the Letter of
Bid may result in the rejection of the bid.

(d) The 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 18.1 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.

(f) If our bid is accepted, we commit to obtain a performance security in accordance with the Bidding Document.

(g) Our firm, including any Subcontractors or Suppliers for any part of the Contract, have nationalities from
eligible countries in accordance with ITB 4.2.

(h) 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.

(i) We are not participating, as a Bidder 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.
48 User’s guide to procurement of works—SMALL CONTRACTS

(j) Our firm, its affiliates or subsidiaries, including any Subcontractors or Suppliers for any part of the contract,
has not been declared ineligible by ADB, under the Employer’s country laws or official regulations or by an act
of compliance with a decision of the United Nations Security Council.

(k) [We are not a government-owned enterprise] / [We are a government-owned enterprise but meet the
requirements of ITB 4.5].1

(l) We have paid, or will pay the following commissions, gratuities, or fees with respect to the bidding process or
execution of the Contract:2

Name of Recipient Address Reason Amount

__________________ __________________ __________________ __________________

__________________ __________________ __________________ __________________

(m) 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.

(n) We understand that you are not bound to accept the lowest evaluated Bid or any other Bid that you may
receive.

(o) 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.

(p) 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.

Name: . . . . . [insert complete name of person signing the bid] . . . . .

In the capacity of . . . . . [insert legal capacity of person signing the bid] . . . . .
Signed: . . . . . [insert signature of person whose name and capacity are shown above] . . . . .
Duly authorized to sign the Bid for and on behalf of . . . . . [insert complete name of the bidder] . . . . .
Date: . . . . . [insert date of signing] . . . . .

1
Use one of the two options as appropriate.
2
If none has been paid or is to be paid, indicate “None.”
Bidding Forms 49

Schedules

Schedule of Payment Currencies

For . . . . . [insert name of Section of the Works] . . . . .

Separate tables may be required if the various sections of the Works (or of the Bill of Quantities) will have
substantially different foreign and local currency requirements. In such a case, the Employer should prepare
separate tables for each Section of the Works.

A B C D

Percentage of Net
Local Currency Bid Price (NBP)
Name of Payment Amount of Rate of Exchange Equivalent 100 × C
Currency Currency to Local Currency C=A×B NBP

Local Currency 1.00

________________

Foreign Currency #1

________________

Foreign Currency #2

________________

Foreign Currency #3

________________

Net Bid Price 100.00

Provisional Sums To be entered by 1.00 To be entered by

Expressed in the Employer the Employer
Local Currency

BID PRICE

Note

The rates of exchange shall be the selling rates 28 days prior to the deadline for submission of bids published by the source specified
in BDS 15.
50 User’s guide to procurement of works—SMALL CONTRACTS

Table(s) of Adjustment Data

Table A – Local Currency

To be entered by the bidder

To be entered by the employer

Index Source of Base Value Bidder’s Local Bidder’s Proposed

Index Code Description Index and Date Currency Amount Weighting

}
Nonadjustable — — — 0.10 ~ 0.20
a: ___________
b: ___________
c: ___________
d: ___________
e: ___________

Total 1.00

Table B – Foreign Currency

Name of Currency: . . . . . [insert name of currency. If the bidder wishes to quote in more than one foreign currency, but in no case more
than three, this table should be repeated for each foreign currency] . . . . .

To be entered by the employer

To be entered by the bidder

Bidder’s Bidder’s
Index Index Source Base Value Currency in Equivalent Proposed
Code Description of Index and Date Type/Amount in FC1 Weighting

0.10 ~ 0.20

}
Nonadjustable — — — a: ___________
b: ___________
c: ___________
d: ___________
e: ___________

Total 1.00

Note

“Base Date” means the date 28 days prior to the deadline for submission of bids.
Tables of Adjustment Data shall only be included if prices are to be quoted as adjustable prices in accordance with ITB 14.5.
Bidding Forms 51

Activity Schedule
[Schedules of Prices – Lump Sum Contract]

The Employer shall indicate the list of major activities comprising the works and the number of measurement units
consistent with the description of works, drawings, and specifications in Section 6 (Employer’s Requirements).
Each work item shall be described in sufficient detail to provide clear guidance to Bidders with respect to the type
of works, their scope and complexity, and compliance with the required standards.

Bidders are required to enter the prices against each work item on a lump sum basis. Work items against which
no lump sum price is entered by the Bidder will not be paid by the Employer when executed and shall be deemed
covered by other work items against which the lump sum prices were entered. The sum of prices entered against
each work item will represent the total bid price.

The whole cost of complying with the provisions of the Contract shall be included in the Items provided in the
Activity Schedule, and where no Items are provided, the cost shall be deemed to be distributed among the Amounts
for the related Items of Work.

Sample Activity Schedule

Construction of Building Structure

Item no. Description Unit Amount

A. Substructure

1 Earth Work

1.1 Excavation works (1,250 m3)

1.2 Backfilling (1,415 m3)

2 Concrete Works

2.1 Concrete for footing (350 m3)

2.2 Column necks (360 m3)

3 Waterproofing Works

B. Superstructure

4 Ground Floor

4.1 Ground Floor Columns (310 m3)

4.2 Ground Floor Slab and Stairs (785 m3)

52 User’s guide to procurement of works—SMALL CONTRACTS

Item no. Description Unit Amount

5 First Floor

5.1 First Floor Columns (310 m3)

5.2 First Floor Slab and Stairs (785 m3)

etc.

C. Rough Finishes

6 Ground Floor

6.1 Masonry Works (1,055 m2)

6.2 Ceramic Tiles (1,925 m2)

7 First Floor

7.1 Masonry Works (1,055 m2)

7.2 Ceramic Tiles (1,925 m2)

etc.

D. Final Finishes

8 Ground Floor

8.1 Paint Works (3,655 m2)

8.2 Doors and Windows (165)

9 First Floor

9.1 Paint Works (3,655 m2)

9.2 Doors and Windows (165)

etc.

E. Electrical Works

10 Ground Floor

10.1 Panel boards, Wiring Devices, and Circuit Breaker Installations

10.2 Socket Outlets, Lighting Fixtures, and Switches

Bidding Forms 53

Item no. Description Unit Amount

11 First Floor

11.1 Panel boards, Wiring Devices, and Circuit Breaker Installations

11.2 Socket Outlets, Lighting Fixtures, and Switches

etc.

F. Mechanical Works

12 Ground Floor

12.1 Pipes and Fittings (1,415 m)

12.2 Plumbing

12.3 Cooling System

13 First Floor

13.1 Pipes and Fittings (1,250 m)

13.2 Plumbing

13.3 Cooling System

G. Other Works

14 Elevator System

15 Security System (CCTV, etc.)

16 Generator System

17 Fencing

18 Landscaping

etc.

TOTAL BID PRICE to be carried forward to Letter of Bid

NOTE In case of Admeasurement Contract, use “Bill of Quantities.”

54 User’s guide to procurement of works—SMALL CONTRACTS

Bill of Quantities
[Admeasurement Contract]

Objectives

The objectives of the Bill of Quantities are

(a) to provide sufficient information on the quantities of Works to be performed to enable bids to be prepared
efficiently and accurately; and
(b) when a contract has been entered into, to provide a priced Bill of Quantities for use in the periodic valuation
of Works executed.

To attain these objectives, Works should be itemized in the Bill of Quantities in sufficient detail to distinguish
between the different classes of Works, or between Works of the same nature carried out in different locations or
in other circumstances that may give rise to different considerations of cost. Consistent with these requirements,
the layout and content of the Bill of Quantities should be as simple and brief as possible.

Content

The Bill of Quantities should be divided generally into the following sections:

(a) Preamble,
(b) Work Items (grouped into parts),
(c) Daywork Schedule, and
(d) Summary.

Preamble

The Preamble should indicate the inclusiveness of the unit prices, and should state the methods of measurement
that have been adopted in the preparation of the Bill of Quantities and that are to be used for the measurement of
any part of the Works.

Rock

Where excavation, boring, or driving is included in the Works, a comprehensive definition of rock (always a
contentious topic in contract administration), if not given in the Technical Specification, should be given in the
Preamble, and this definition should be used for the purposes of measurement and payment.

Work Items

The items in the Bill of Quantities should be grouped into sections to distinguish between those parts of the
Works, which by nature, location, access, timing, or any other special characteristics may give rise to different
methods of construction, phasing of the Works, or considerations of cost. General items common to all parts
of the Works may be grouped as a separate section in the Bill of Quantities. When families of Price Adjustment
Formulas are used, they should relate to appropriate sections in the Bill of Quantities.
Bidding Forms 55

Quantities
Quantities should be computed net from the Drawings, unless directed otherwise in the Contract, and no allowance
should be made for bulking, shrinkage, or waste. Quantities should be rounded up or down where appropriate,
and spurious accuracy should be avoided.

Units of Measurement

The following units of measurement and abbreviations are recommended for use unless other national units are
mandatory in the country of the Employer.

Unit Abbreviation Unit Abbreviation

cubic meter m3 or cu m metric ton t

hectare ha (1,000 kg)
hour h millimeter mm
kilogram kg month mon
kilowatt kW number nr
lump sum sum square meter m2 or sq m
meter m square millimeter mm2 or sq mm
week wk

Ground and Excavation Levels

The commencing surface should be identified in the description of each item for work involving excavation, boring,
or driving, for which the commencing surface is not also the original surface. The excavated surface should be
identified in the description of each item for work involving excavation for which the excavated surface is not also
the final surface. The depths of work should be measured from the commencing surface to the excavated surface,
as defined.

Daywork Schedule

A Daywork Schedule should be included if the probability of unforeseen work, outside the items included in the
Bill of Quantities, is relatively high. To facilitate checking by the Employer of the realism of rates quoted by the
bidders, the Daywork Schedule should normally comprise:

(a) a list of the various classes of labor, materials, and Contractor’s Equipment for which basic Daywork rates
or prices are to be inserted by the bidder, together with a statement of the conditions under which the
Contractor will be paid for work executed on a Daywork basis; and
(b) a percentage to be entered by the bidder against each basic Daywork Subtotal amount for labor, materials,
and plant representing the Contractor’s profit, overheads, supervision, and other charges.
56 User’s guide to procurement of works—SMALL CONTRACTS

Provisional Quantities and Sums

Provision for quantity contingencies in any particular item or class of work with a high expectation of quantity
overrun should be made by entering specific “Provisional Quantities” or “Provisional Items” in the Bill of Quantities,
and not by increasing the quantities for that item or class of work beyond those of the work normally expected to
be required. To the extent not covered above, a general provision for physical contingencies (quantity overruns)
should be made by including a “Provisional Sum” in the Summary of the Bill of Quantities. Similarly, a contingency
allowance for possible price increases should be provided as a “Provisional Sum” in the Summary of the Bill of
Quantities. The inclusion of such Provisional Sums often facilitates budgetary approval by avoiding the need to
request periodic supplementary approvals as future needs arise.

The estimated cost of specialized work to be carried out, or of special goods to be supplied, by a Nominated
Subcontractor should be indicated in the relevant part of the Bill of Quantities as a particular Provisional Sum
with an appropriate brief description. A separate bidding procedure is normally carried out by the Employer to
select the specialists, who are then nominated as subcontractors to the main or prime contractor. To provide an
element of competition among the main bidders (or prime contractors) in respect of any facilities, amenities,
attendance, etc., to be provided by the successful bidder as prime contractor for the use and convenience of the
specialist or nominated subcontractor, each related Provisional Sum should be following by an item in the Bill of
Quantities inviting a percentage (to be quoted by the main bidder) payable on the actual expenditure from the
Provisional Sum.

Summary

The Summary should contain a tabulation of the separate parts of the Bill of Quantities carried forward,
with provisional sums for Daywork, for physical (quantity) contingencies, and for price contingencies (upward
price adjustment) where applicable.

NOTE In the case of Lump Sum Contract, use the Activity Schedule.
Bidding Forms 57

Sample Bill of Quantities

A. Preamble

1. The Bill of Quantities shall be read in conjunction with the Instructions to Bidders, General and Particular
Conditions of Contract, Technical Specifications, and Drawings.

2. The quantities given in the Bill of Quantities are estimated and provisional, and are given to provide
a common basis for bidding. The basis of payment will be the actual quantities of work ordered and
carried out, as measured by the Contractor and verified by the Project Manager and valued at the rates
and prices bid in the priced Bill of Quantities, where applicable, and otherwise at such rates and prices as
the Project Manager may fix within the terms of the Contract.

3. The rates and prices bid in the priced Bill of Quantities shall, except as otherwise provided under the
Contract, include all construction equipment, labor, supervision, materials, erection, maintenance,
insurance, profit, taxes, and duties, together with all general risks, liabilities, and obligations set out or
implied in the Contract.

4. A rate or price shall be entered against each item in the priced Bill of Quantities, whether quantities are
stated or not. The cost of items against which the Contractor has failed to enter a rate or price shall be
deemed covered by other rates and prices entered in the Bill of Quantities. The units and rates in figures
entered into the Bill of Quantities should be typewritten or if written by hand, must be in print form.
Bill of Quantities not presented accordingly may be considered nonresponsive.

5. The whole cost of complying with the provisions of the Contract shall be included in the Items provided in
the priced Bill of Quantities, and where no items are provided, the cost shall be deemed to be distributed
among the rates and prices entered for the related Items of Work.

6. General directions and descriptions of work and materials are not necessarily repeated or summarized in
the Bill of Quantities. References to the relevant sections of the Contract documentation shall be made
before entering prices against each item in the priced Bill of Quantities.

7. Provisional Sums included and so designated in the Bill of Quantities shall be expended in whole or in part
at the direction and discretion of the Project Manager in accordance with the Conditions of Contract.

8. The method of measurement of completed work for payment shall be in accordance with . . . . . [insert the
name of a standard reference guide, or full details of the methods to be used. The method of measurement should be spelled out
precisely in the Preamble to the Bill of Quantities, describing for example the allowances (if any) for timbering in excavation, etc.
Many national standard reference guides have been prepared on the subject, and one such guide is the Civil Engineering Standard
Method of Measurement of the Institution of Civil Engineers in the United Kingdom.] . . . . .

9. Arithmetic errors will be corrected by the Employer as follows:

(a) If there is a discrepancy between the unit price and the total price that is obtained by multiplying
the unit price and quantity, the unit price shall prevail and the total price shall be corrected, unless
in the opinion of the Employer there is an obvious misplacement of the decimal point in the unit
price, in which case the total price as quoted shall govern and the unit price shall be corrected.
58 User’s guide to procurement of works—SMALL CONTRACTS

(b) If there is an error in a total corresponding to the addition or subtraction of subtotals, the subtotals
shall prevail and the total shall be corrected.
(c) If there is a discrepancy between the bid price in the Summary of Bill of Quantities and the bid
amount in item (c) of the Letter of Bid, the bid price in the Summary of Bill of Quantities will prevail
and the bid amount in item (c) of the Letter of Bid will be corrected.
(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 arithmetic error, in which case the amount in figures shall
prevail subject to (a), (b), and (c) above.

10. Rock is defined as all materials that, in the opinion of the Project Manager, require blasting, or the use of
metal wedges and sledgehammers, or the use of compressed air drilling for their removal, and that cannot
be extracted by ripping with a tractor of at least 150 brake horsepower with a single, rear-mounted, heavy-
duty ripper.
Bidding Forms 59

B. Work Items

1. The Bill of Quantities usually contains the following part Bills, which have been grouped according to the
nature or timing of the work:

Bill No. 1 – General Items;

Bill No. 2 – Earthworks;
Bill No. 3 – Culverts and Bridges;
Bill No. 4 – etc., as required;
Daywork Schedule; and
Summary Bill of Quantities.

2. Bidders shall price the Bill of Quantities in local currency only and shall indicate in the Schedule of Payment
Currencies the percentage expected for payment in foreign currency or currencies. The example given
illustrates one of the two alternative methods of setting up a Bill of Quantities, in which rates and prices
are entered in local currency only, with bidders stating separately their proportionate requirements in
different types and amounts of foreign currencies. The second method is where rates and prices are broken
down for each item into local and foreign currency components. The first method is administratively more
convenient and hence is more commonly used in Works contracts.

Bill No. 1: General Items

Item no. Description Unit Quantity Rate Amount

101 Performance Bond/Guarantee sum item —

102 Insurance of the Works sum item —

103 Insurance of Contractor’s Equipment sum item —

104 Third-Party Insurance sum item —

105 Allow for maintenance of Works for 12 months after completion month 12

106 —etc.—

112 Provide and equip Project Manager’s offices nr 2

113 Maintain Project Manager’s offices for 24 months, month 24

including services

114 —etc.—

121 Provide diversion road sum item —

122 Provide for traffic control and maintenance of diversion road month 24 —

123 —etc.—

132 Provide for cleaning up the Site on completion sum item —

—etc.—

Total for Bill No. 1 ________

(carried forward to Summary, p. _______)

60 User’s guide to procurement of works—SMALL CONTRACTS

Bill No. 2: Earthworks

Item no. Description Unit Quantity Rate Amount

201 Excavate topsoil to maximum depth of 25 cm and stockpile for m3 95,000

reuse, maximum haul distance 1 km
202 Excavate topsoil to maximum depth of 25–50 cm, and dispose m3 15,000

203 —etc.—

206 Excavate fill material from cuttings or approved borrow pits, m3 258,000
haul up to 1 km, deposit, shape, and compact to fill
207 Excavate rock in cuttings and dispose, any depth m3 25,000

208 —etc.—

Total for Bill No. 2 ________

(carried forward to Summary, p. _______)

Bill No. 3: Culverts and Bridges

Item no. Description Unit Quantity Rate Amount

301 Excavate in all materials other than rock from ground level to m3 18,500
underside of foundations, maximum depth of 5 m, and dispose
302 Excavate in all materials other than rock, depth of 5 m to 7.5 m m3 2,500

303 Provisional Item m3 500

As Item 302, depth of 7.5 m to 10 m
304 —etc.—

311 Concrete class B in abutments m3 18,500

312 —etc.—

318 Mild steel reinforcement in abutments and piers up to t 370

20 mm diameter

319 —etc.—

Total for Bill No. 3 ________

(carried forward to Summary, p. _______)

Bidding Forms 61

C. Daywork Schedule

Note

A “Daywork Schedule” is commonly found in contracts where the likely incidence of unforeseen work cannot be covered by definitive
descriptions and approximate quantities in the Bill of Quantities. The preferred alternative is to value the additional work in
accordance with the provisions of Subclause 47.6 and Clause 60 of the General Conditions of Contract. A Daywork Schedule
normally has the disadvantage of not being competitive among bidders, who may therefore load the rates assigned to some or all the
items. If a Daywork Schedule is to be included at all in the bidding documents, it is preferable to include nominal quantities against
the items most likely to be used, and to carry the sum of the extended amounts forward into the Bid Summary in order to make the
basic Schedule of Daywork Rates competitive.
The total amount assigned to such competitive daywork is normally 3% to 5% of the estimated base Contract Price and is regarded
as a Provisional Sum for contingencies to be expended under the direction and at the discretion of the Project Manager. A limitation
on quantity should not apply, and the unit rate quoted should be invariable whatever quantities of work are ordered.

General

1. Work shall not be executed on a Daywork basis except by written order of the Project Manager.
Bidders shall enter basic rates for Daywork items in the Schedules, which rates shall apply to any quantity
of Daywork ordered by the Project Manager. Nominal quantities have been indicated against each item
of Daywork, and the extended total for Daywork shall be carried forward as a Provisional Sum to the
Summary Total Bid Amount. Unless otherwise adjusted, payments for Daywork shall be subject to price
adjustment in accordance with the provisions in the Conditions of Contract.

Daywork Labor

2. In calculating payments due to the Contractor for the execution of Daywork, the hours for labor will be
reckoned from the time of arrival of the labor at the job site to execute the particular item of Daywork
to the time of return to the original place of departure, but excluding meal breaks and rest periods.
Only the time of classes of labor directly doing work ordered by the Project Manager and for which they
are competent to perform will be measured. The time of gangers (charge hands) actually doing work with
the gangs will also be measured but not the time of foremen or other supervisory personnel.

3. The Contractor shall be entitled to payment in respect of the total time that labor is employed on Daywork,
calculated at the basis rates entered by him in the Schedule of Daywork Rates: 1. Labor. The rates for
labor shall be deemed to cover all costs to the Contractor, including (but not limited to) the amount
of wages paid to such labor, transportation time, overtime, subsistence allowances, and any sums paid
to or on behalf of such labor for social benefits in accordance with (Country of Borrower) law, as well
as Contractor’s profit; overheads; superintendence; liabilities and insurance and allowance to labor;
timekeeping and clerical and office work; the use of consumable stores water, lighting, and power; the
use and repair of stagings, scaffolding workshops and stores portable power tools; manual plant and tools;
supervision by the Contractor’s staff, foremen, and other supervisory personnel; and charges incidental to
the foregoing. The rates shall be stated in the local currency, but payments will be made in the following
currency proportions:

(i) foreign: _________ percent [The bidder shall state the percentage in a common foreign currency equivalent required
for payment and the exchange rates and official sources used]

(ii) local: _________ percent [To be stated by bidder]

62 User’s guide to procurement of works—SMALL CONTRACTS

Daywork Materials

4. The Contractor shall be entitled to payment in respect of materials used for Daywork (except for materials
for which the cost is included in the percentage addition to labor costs as detailed heretofore), at the rates
entered by him in the Schedule of Daywork Rates: 2. Materials and shall be deemed to include overhead
charges and profit as follows;

(a) the rates for materials shall be calculated on the basis of the invoiced price, freight, insurance,
handling expenses, damage, losses, etc., and shall provide for delivery to store for stockpiling at the
Site. The rates shall be stated in local currency but payment will be made in the following currency
proportions:
(i) foreign: ________ percent [The bidder shall state the percentage in a common foreign currency equivalent
required for payment and the exchange rates and official sources used]

(ii) local: _________ percent [To be stated by bidder]

(b) the cost of hauling materials for use on work ordered to be carried out as daywork from the store or
stockpile on the Site to the place where it is to be used will be paid in accordance with the terms for
Labor and Constructional Plant in this Schedule.

Daywork Contractor’s Equipment

5. The Contractor shall be entitled to payments in respect of Contractor’s Equipment already on Site and
employed on Daywork at the basic rental rates entered by him in the Schedule of Daywork Rates:
3. Contractor’s Equipment. The said rates shall be deemed to include due and complete allowance for
depreciation, interest, indemnity and insurance, repairs, maintenance, supplies, fuel, lubricants, and
other consumables, and all overhead profit and administrative costs related to the use of such equipment.
The cost of drivers, operators, and assistants will be paid for separately as described under the section on
Daywork Labor.

6. In calculating the payment due to the Contractor’s Equipment employed on daywork, only the actual
number of working hours will be eligible for payment, except that where applicable and agreed with the
Project Manager, the traveling time from the part of the Site where the Construction Plant was located
when ordered by the Project Manager to be employed on Daywork and the time for return journey thereto
shall be included for payment.

7. The basic rental rates for Contractor’s Equipment employed on Daywork shall be stated in local currency
but payments to the Contractor will be made in currency proportions as follows:

(i) foreign: _________ percent [The bidder shall state the percentage in a common foreign currency equivalent required
for payment and the exchange rates and official sources used]

(ii) local: _________ percent [To be stated by bidder]

Bidding Forms 63

Schedule of Daywork Rates: 1. Labor

Nominal Extended
Item no. Description Unit Quantity Rate Amount

D100 Ganger hour 500

D101 Laborer hour 5,000

D102 Bricklayer hour 500

D103 Mason hour 500

D104 Carpenter hour 500

D105 Steelwork Erector hour 500

D106 —etc.— hour

D113 Driver for vehicle up to 10 tons hour 1,000

D114 Operator for excavator, dragline, shovel, or crane hour 500

D115 Operator for tractor with dozer blade or ripper hour 500

D116 —etc.— hour

Total for Daywork: Labor ____________

(carried forward to Daywork Summary, p. _______)

Schedule of Daywork Rates: 2. Materials

Nominal Extended
Item no. Description Unit Quantity Rate Amount

D201 Cement, ordinary Portland, or equivalent in bags t 200

D202 Mild steel reinforcing bar up to 16 mm diameter to t 100

BS 4449 or equivalent

D203 Fine aggregate for concrete as specified in Clause m3 1,000

D204 —etc.—

D222 Gelignite (Nobel Special Gelatine 60%, or equivalent) t 10

including caps, fuse, wire, and requisite accessories

Total for Daywork: Materials ____________

(carried forward to Daywork Summary, p. _______)
64 User’s guide to procurement of works—SMALL CONTRACTS

Schedule of Daywork Rates: 3. Contractor’s Equipment

Nominal
quantity Basic Hourly Extended
Item no. Description (hours) Rental Rate Amount

D301 Excavator, face shovel, or dragline:

.1 Up to and including 1 m3 500

.2 Over 1 m3 to 2 m3 400

.3 Over 2 m3 100

D302 Tractor, including bull or angle dozer:

.1 Up to and including 150 kW 500

.2 Over 150 kW to 200 kW 400

.3 Over 200 kW to 250 kW 200

D303 Tractor with ripper:

.1 Up to and including 200 kW 400

.2 Over 200 kW to 250 kW 200

D304 —etc.—

Total for Daywork: Contractor’s Equipment _______________

(carried forward to Daywork Summary, p. _______)

Daywork Summary

Amount
[local currency] % Foreign

1. Total for Daywork: Labor

2. Total for Daywork: Materials

3. Total for Daywork: Contractor’s Equipment

Total for Daywork (Provisional Sum) _______________ _______________

(carried forward to Bid Summary, p. _______)
Bidding Forms 65

Summary of Specified Provisional Sums

Bill no. Item no. Description Amount

2 2.8 Supply and install equipment in pumping station 1,250,000

4 4.32 Provide for ventilation system in subway tunnel 3,500,000

etc.

Total for Specified Provisional Sums 4,750,000

(carried forward to Grand Summary [B], p. _______)

Summary of Bill of Quantities

General Summary Page Amount

Bill No. 1: Preliminary Items

Bill No. 2: Earthworks

Bill No. 3: Drainage Structures

—etc.—

Subtotal of Bills (A)

Total for Daywork (B)

Specified Provisional Sums included in Subtotal of Bills (C) 4,750,000

Total of Bills plus Provisional Sums (A + B + C) (D)

Add Provisional Sum for Contingency (E)

Bid Price (D + E) to be carried forward to Letter of Bid (F)

All provisional sums are to be expended in whole or in part at the direction and discretion of the project manager in accordance
with the Conditions of Contract.
The amount for (C) Specified Provisional Sums included in Subtotal of Bills, if any, is to be entered by the employer,
which is the total amount from the table, Summary of Specified Provisional Sums. Alternatively, the employer may use only
(E) Provisional Sum for Contingency described below.
The amount for (B) Daywork needs to be included only when the Daywork Schedule is made competitive by the introduction
of nominal quantities of work to be extended at the rates quoted. If not competitive, it should be included in (E) Provisional
Sum for Contingencies and excluded from evaluation.
For (E) Provisional Sum for Contingency, covering unforeseen physical quantities of work, it is recommended to insert a
predetermined percentage to provide for unforeseen physical quantities of work (usually 5%–15% of base cost, that is of the
subtotal of bills) and, if included in the contract, for price escalation adjustments (commonly 6%–12% per annum on estimated
annual payments). The resulting total bid price is then a more realistic estimated final contract value for the purposes of
budgetary approval. As an alternative to the percentage addition for contingencies, a fixed amount can be predetermined by
the employer, based on the estimated contract amount, and inserted as a common figure in the “Amount” column.
For evaluation purposes, daywork, if priced competitively, will be included but provisional sums will be excluded.
66 User’s guide to procurement of works—SMALL CONTRACTS

Bid Security
Bank Guarantee

[Bank’s name, and address of issuing branch or office]1

Beneficiary: ...................................................................... [Name and address of the employer] .....................................................................

Date:.........................................................................................................................................................................................................................
Bid Security No.: ................................................................................................................................................................................................

We have been informed that . . . . . [name of the bidder] . . . . . (hereinafter called “the Bidder”) has submitted to you its
bid dated . . . . . (hereinafter called “the Bid”) for the execution of . . . . . [name of contract] . . . . . under Invitation for Bids
No. . . . . . (“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 Letter of 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, or (iii) fails or refuses to furnish the domestic preference security, if required.

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. 458.2

. . . . . . . . . . . . Authorized signature(s) and bank’s seal (where appropriate) . . . . . . . . . .

NOTE In case of a joint venture, the bid security must be in the name of all partners to the joint venture that submits the bid.

1
All italicized text is for use in preparing this form and shall be deleted from the final document.
2
Or 758 as applicable.
Bidding Forms 67

Bid-Securing Declaration

Date: . . . . . [insert date (as day, month and year)] . . . . .

Bid No.: . . . . . [insert number of bidding process] . . . . .
Alternative No.: . . . . . [insert identification number if this is a bid for an alternative] . . . . .

To: . . . . . [insert complete name of the employer] . . . . .

We, the undersigned, declare that:

We understand that, according to your conditions, Bids must be supported by a Bid Securing Declaration.

We accept that we will automatically be suspended from being eligible for bidding in any contract with the Borrower
for the period of time of . . . . . [insert the number of years as indicated in ITB 19.2 of the BDS] . . . . . starting on the date that we
receive a notification from the Employer, if we are in breach of our obligation(s) under the bid conditions, because we

(a) have withdrawn our Bid during the period of bid validity specified in the Letter of Bid; or

(b) do not accept the correction of errors in accordance with the Instruction to Bidders (hereinafter “the ITB”);
or

(c) having been notified of the acceptance of our Bid by the Employer during the period of bid validity, (i) fail or
refuse to execute the Contract, if required; (ii) fail or refuse to furnish the Performance Security, in accordance
with the ITB; or (iii) fail or refuse to furnish the Domestic Preference Security, if required.

We understand that this Bid-Securing Declaration shall expire if we are not the successful Bidder, upon the earlier
of (i) our receipt of your notification to us of the name of the successful Bidder; or (ii) 28 days after the expiration
of our Bid.

Signed: . . . . . [insert signature of person whose name and capacity are shown] . . . . .
In the capacity of . . . . . [insert legal capacity of person signing the Bid-Securing Declaration] . . . . .
Name: . . . . . [insert complete name of person signing the Bid-Securing Declaration] . . . . .
Duly authorized to sign the bid for and on behalf of . . . . . [insert complete name of the bidder] . . . . .
Dated on ________________ day of __________________, _______
Corporate Seal . . . . . [where appropriate] . . . . .

Note

In case of a joint venture, the Bid-Securing Declaration must be in the name of all partners to the joint venture that submits the bid.
68 User’s guide to procurement of works—SMALL CONTRACTS

Technical Proposal
Personnel
Form PER – 1: Proposed Personnel

Bidder should provide the details of the proposed personnel and their experience record in the relevant Information
Forms below for each candidate:

1. Title of position*

Name

2. Title of position*

Name

3. Title of position*

Name

4. Title of position*

Name

5. Title of position*

Name

6. Title of position*

Name

etc. Title of position*

Name

* As listed in Section 6 (Employer’s Requirements).

Bidding Forms 69

Form PER – 2: Resumé of Proposed Personnel

The Bidder shall provide all the information requested below. Use one form for each position.

Position

Personnel Name Date of birth

information

Professional qualifications

Present Name of employer

employment

Address of employer

Telephone Contact (manager/personnel officer)

Fax E-mail

Job title Years with present employer

Summarize professional experience in reverse chronological order. Indicate particular technical and managerial
experience relevant to the project.

From To Company/Project/Position/Relevant Technical and Management Experience

70 User’s guide to procurement of works—SMALL CONTRACTS

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

Equipment Name of manufacturer Model and power rating

Information

Capacity Year of manufacture

Current Current location

Status

Details of current commitments

Source Indicate source of the equipment

• Owned • Rented • Leased • Specially manufactured

Omit the following information for equipment owned by the Bidder.

Owner Name of owner

Address of owner

Telephone Contact name and title

Fax Telex

Agreements Details of rental/lease/manufacture agreements specific to the project

Bidding Forms 71

Site Organization

Method Statement

Mobilization Schedule

Construction Schedule

Note

The employer shall assess whether proposed site organization, method statement, mobilization, and construction schedule
described in Section 4 (Bidding Forms) are presented in consistent manner and comply with requirements stipulated in Section 6
(Employer’s Requirements) without material deviation, reservation, or omission.
72 User’s guide to procurement of works—SMALL CONTRACTS

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 information requested in the corresponding Information Sheets included
hereunder.
Bidding Forms 73

Form ELI – 1: Bidder’s Information Sheet

Bidder’s Information

Bidder’s legal name

In case of a Joint Venture,

legal name of each partner

Bidder’s country of
constitution

Bidder’s year of
constitution

Bidder’s legal address in

country of constitution

Bidder’s authorized
representative
(name, address, telephone
number(s), fax number(s),
e-mail address)

Attached are copies of the following documents.

• 1. I n 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 20.2.
• 3. I n 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. I n case of a government-owned enterprise, any additional documents not covered under 1 above
required to comply with ITB 4.5.
74 User’s guide to procurement of works—SMALL CONTRACTS

Form ELI – 2: Joint Venture Information Sheet

Each member of the Joint Venture and Specialist Subcontractor must fill out this form separately.

Joint Venture/Specialist Subcontractor Information

Bidder’s legal name

Joint Venture Partner’s or

Specialist Subcontractor’s
legal name

Joint Venture Partner’s or

Specialist Subcontractor’s
country of constitution

Joint Venture Partner’s or

Specialist Subcontractor’s
year of constitution

Joint Venture Partner’s or

Specialist Subcontractor’s
legal address in country of
constitution

Joint Venture Partner’s or

Specialist Subcontractor’s
authorized representative
information
(name, address, telephone
number(s), fax number(s),
e-mail address)

Attached are copies of the following documents:

• 1. A
rticles 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 named above, in accordance with ITB 20.2.
• 3. I n the case of a government-owned enterprise, documents establishing legal and financial autonomy and
compliance with commercial law, in accordance with ITB 4.5.

A Specialist Subcontractor is a specialist enterprise engaged for highly specialized processes that cannot be
provided by the main Contractor.
Bidding Forms 75

Form LIT – 1: Pending Litigation and Arbitration

Each Bidder must fill out this form if so required under Criterion 2.2 of Section 3 (Evaluation and Qualification
Criteria) to describe any pending 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 below:

Joint Venture Partner: ___________________

Pending Litigation and Arbitration

Choose one of the following:

• No pending litigation and arbitration.
• B
elow is a description of all pending litigation and arbitration involving the Bidder (or each Joint Venture
member if Bidder is a Joint Venture).

Value of Pending Claim

Value of Pending Claim as a Percentage of
Year Matter in Dispute in $ Equivalent Net Worth

NOTE This form shall only be included if Criterion 2.2 of Section 3 (Evaluation and Qualification Criteria) is applicable.
76 User’s guide to procurement of works—SMALL CONTRACTS

Form FIN – 1: Historical Financial Performance

Each Bidder must fill out this form.

In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the Joint Venture
Partner’s name below:

Joint Venture Partner: ___________________

Financial Data for Previous 3 Yearsa [$ Equivalent]

Year 1: Year 2: Year 3:

Information from Balance Sheet

Total Assets (TA)

Total Liabilities (TL)

Net Worth = TA – TL

Current Assets (CA)

Current Liabilities (CL)

Working Capital = CA – CL

Most Recent Working Capital To be obtained for most recent year and carried forward
to FIN – 3 Line 1; in case of Joint Ventures, to the
corresponding Joint Venture Partner’s FIN – 3.

Information from Income Statement

Total Revenues

Profits Before Taxes

Profits After Taxes

• A
ttached are copies of financial statements (balance sheets including all related notes and income statements) for the
last three (3) years,b as indicated above, complying with the following conditions:
• U
nless otherwise required by Section 3 of the Bidding Document, 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.
• H
istorical financial statements must correspond to accounting periods already completed and audited (no statements
for partial periods shall be requested or accepted).

a
I f the time period indicated under Criterion 2.3.1 of Section 3 (Evaluation and Qualification Criteria) is either four (4) years
or five (5) years, then the table columns above should be expanded accordingly.
b
he time period stated here should be the same as the time period indicated under Criterion 2.3.1 of Section 3 (Evaluation
T
and Qualification Criteria).
Bidding Forms 77

Form FIN – 2: Average Annual Construction Turnover

Each Bidder must fill out this form.

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 below:

Joint Venture Partner: ___________________

Annual Turnover Data for the Last . . . . Yearsa (Construction only)

Amount Exchange
Year Currency Rate $ Equivalent

Average Annual Construction Turnoverb

a
The employer should insert the period described in Criterion 2.3.2 of Section 3 (Evaluation and Qualification Criteria).
b
o determine the average annual construction turnover, the employer shall divide the sum of each year’s annual turnover by
T
the number of years, for which such information was requested.
78 User’s guide to procurement of works—SMALL CONTRACTS

Form FIN – 3: Availability of Financial Resources

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

(a) its current contract commitments, and

(b) the subject contract.

In case of a Joint Venture, each Joint Venture Partner must fill out this form separately and provide the Joint Venture
Partner’s name below:

Joint Venture Partner: ___________________

Financial Resources

No. Source of financing Amount ($ equivalent)

1 Working Capital (to be taken from FIN – 1)

2 Credit Linea

3 Other Financial Resources

Total Available Financial Resources

a
To be substantiated by a letter from the bank issuing the line of credit.
Bidding Forms 79

Form FIN – 4: Financial Requirements for Current Contract Commitments

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 below:

Joint Venture Partner: ___________________

Current Contract Commitments

Employer’s
Contact Contract Outstanding Remaining Monthly Financial
Name of (Address, Completion Contract Value Contract Period Resources Requirement
No. Contract Tel, Fax) Date (X)a in months (Y)b (X/Y)

Total Monthly Financial Requirements for Current Contract Commitments $ ………………………………………

a
emaining outstanding contract values to be calculated from 28 days prior to the bid submission deadline ($ equivalent
R
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.
80 User’s guide to procurement of works—SMALL CONTRACTS

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.

Form FIN – 5A: For Single Entities

Total Available Total Monthly Financial Available Results:

Financial Requirement for Current Financial Requirement Yes or No
Resources Contract Commitments Resources for the Subject [D must be greater
For Single Entities: from FIN – 3 (CCC) from FIN – 4 Net of CCC Contract than or equal to E]
(A) (B) (C) D = (B – C) (E) (F)

_______________ .................a
(Name of Bidder)

Form FIN – 5B: For Joint Ventures

Total Available Total Monthly Financial Available Results:

Financial Requirement for Current Financial Requirement Yes or No
Resources Contract Commitments Resources for the Subject [D must be greater
For Joint Ventures: from FIN – 3 (CCC) from FIN – 4 Net of CCC Contract than or equal to E]
(A) (B) (C) D = (B – C) (E) (F)

One Partner:

_______________ .................b
(Name of Partner)
Each Partner:

_______________ .................c
(Name of Partner 1)

_______________ .................c
(Name of Partner 2)

_______________ .................c
(Name of Partner 3)
∑D = Sum of available financial resources
All partners
net of current contract commitments ∑D = .................a
combined
for all partners
a
he employer should insert here the total requirement for the Subject Contract (for both, single entity and all partners
T
combined) as defined in Criterion 2.3.3 of Section 3.
b
The employer should insert here the required share for one partner as defined in Criterion 2.3.3 of Section 3.
c
The employer should insert here the required share for each partner as defined in Criterion 2.3.3 of Section 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.
Bidding Forms 81

Form EXP – 1: Contracts of Similar Size and Nature

Fill out one (1) form per contract.

Contract of Similar Size and Nature

Contract No. . . . . . of . . . . . . Contract Identification

Award Date Completion Date

Total Contract Amount $

If partner in a Joint Venture or

subcontractor, specify participation Percent of Total Amount
of total contract amount

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)

Note

The employer should insert here

contract size, complexity, methods,
technology, or other characteristics
as described in Criterion 2.4.1 of
Section 3 against which the bidder
demonstrates similarity in the box on
the right-hand side.
82 User’s guide to procurement of works—SMALL CONTRACTS

Form EXP – 2: Construction Experience in Key Activities

Fill out one (1) form per contract.

Contract with Similar Key Activities

Contract No. . . . . . of . . . . . . Contract Identification

Award Date Completion Date

Total Contract Amount $

If partner in a Joint Venture or

subcontractor, specify participation Percent of Total Amount
of total contract amount

Employer’s name
Address
Telephone number
Fax number
E-mail

Description of Key Activities in Accordance with Criterion 2.4.2 of Section 3

(Evaluation and Qualification Criteria)

Note

The employer should insert here

the highly specialized construction
activities listed under Criterion 2.4.2
of Section 3 against which the bidder
demonstrates similarity in the box on
the right-hand side.
83

Section 5 – Eligible Countries

This section shall contain the list of eligible countries. Please choose one of the following cases and follow the
instructions as appropriate.

Notes

For Contracts to be financed by loans/grants from:

ADB’s ordinary capital resources (OCR), without cofinancing resources: Unless a waiver of ADB member country
A.
procurement eligibility restrictions was approved by the ADB Board of Directors, please insert the most recent list of
ADB member countries obtainable from the ADB Business Opportunities webpage at www.adb.org/about/members
Asian Development Fund (ADF) resources, without cofinancing resources: Unless a waiver of ADB member country
B.
procurement eligibility restrictions was approved by the ADB Board of Directors, please insert the most recent list of
ADB developed member countries that have contributed to ADF resources, and all developing member countries.
OCR and cofinancing resources from any one of the Asian Clean Energy Fund, e-Asia and Knowledge Partnership Fund,
C.
Investment Climate Facilitation Fund, Japan Fund for Poverty Reduction, and Japan Fund for the Joint Credit
Mechanism: Unless a waiver of ADB member country procurement eligibility restrictions was approved by
the ADB Board of Directors, please insert the most recent list of ADB member countries obtainable from the
ADB Business Opportunities or ADB’s webpage at www.adb.org/about/members
ADF resources AND cofinancing resources from any one of the Asian Clean Energy Fund, e-Asia and Knowledge
D.
Partnership Fund, Investment Climate Facilitation Fund, Japan Fund for Poverty Reduction, Japan Fund for Public Policy
Training, and Japan Fund for Information and Communication Technology: Unless a waiver of ADB member country
procurement eligibility restrictions was approved by the ADB Board of Directors, please insert the most recent list of
ADB developed member countries that have contributed to the ADF resources, and all developing member countries.
OCR OR ADF resources AND any other cofinancing (or joint financing) resources other than those listed in paragraph C
E.
above (in the case of OCR) or in paragraph D above (in the case of ADF resources): Please state “No nationality
restrictions apply, other than any restrictions arising from ITB 4.7.”
84

Section 6 – Employer’s Requirements

This section contains the Specifications, Drawings, Supplementary Information that describe the Works to be
procured, Personnel Requirements, and Equipment Requirements.

Table of Contents
Specifications.................................................................................................................................................................. 85

Drawings.......................................................................................................................................................................... 86

Supplementary Information Regarding Works to Be Procured............................................................................... 87

Personnel Requirements............................................................................................................................................... 88

Equipment Requirements............................................................................................................................................. 89
Employer’s Requirements 85

Specifications

Notes

1. Precise and clear specifications are a prerequisite for Bidders to respond realistically and competitively to the requirements
of the employer without qualifying or conditioning their bids. In the context of international competitive bidding, the
specifications must be drafted to permit the widest possible competition and, at the same time, present a clear statement
of the required standards of materials, plant, other supplies, and workmanship to be provided. Only if this is done will
the objectives of economy, efficiency, and equality in procurement be realized, responsiveness of bids be ensured, and the
subsequent task of bid evaluation facilitated. The specifications should require that all materials, plant, and other supplies to
be incorporated in the works are new, unused, of the most recent or current models, and incorporate all recent improvements in
design and materials unless provided otherwise in the contract. A clause setting out the scope of the works is often included at
the beginning of the specifications, and it is customary to give a list of the drawings. Where the contractor is responsible for the
design of any part of the permanent works, the extent of his obligations must be stated. (Ref. GCC Subclause 23.1 Designs by
Contractor and Approval by the Project Manager)
2. Samples of specifications from previous similar projects in the same country are useful in this respect. ADB encourages the use
of metric units. Most specifications are normally written specially by the employer or project manager to suit the contracts for
the works in hand. There are no standard specifications for universal application in all sectors in all countries, but there are
established principles and practices that are reflected in these documents.
3. There are considerable advantages in standardizing general specifications for repetitive works in recognized public sectors,
such as highways, ports, railways, urban housing, irrigation, and water supply, in the same country or region where similar
conditions prevail. The general specifications should cover all classes of workmanship, materials, and equipment commonly
involved in construction, although not necessarily to be used in a particular works contract. Deletions or addenda should then
adapt the general specifications to the particular works.
4. Care must be taken in drafting specifications to ensure that they are not restrictive. In the specification of standards for
materials, plant, other supplies, and workmanship, recognized international standards should be used as much as possible.
Where other particular standards are used, whether national standards of the borrower’s country or other standards, the
specifications should state those materials, plant, other supplies, and workmanship meeting other authoritative standards,
and which ensure substantially equal performance, as the standards mentioned, will also be acceptable.
5. Employers should decide whether alternative technical solutions to specified parts of the works are to be permitted.
Alternatives are appropriate in cases where obvious (and potentially less costly) alternative solutions are possible to the
technical solutions indicated in the bidding documents for certain elements of the Works, taking into consideration the
comparative specialized advantage of potential Bidders. For example:
• pile foundations (proprietary methods and different material)
• bridge foundations (open well, caissons, piles, etc.)
• columns, beams, decking (reinforced concrete, prestressed concrete, steel, etc.)
• proprietary methods for post-tensioning concrete
• lining of canals
• pipeline materials, coating, jointing
• road surfacing (asphalt, concrete, etc.)
• transmission tower design and erection
• street lighting
• offshore foundations
• offshore trestle spans
6. The employer should provide a description of the selected parts of the Works with appropriate references to drawings,
specifications, bill of quantities, and design or performance criteria, stating that the alternative solutions shall be at least
structurally and functionally equivalent to the basic design parameters and specifications.
7. Such alternative solutions shall be accompanied by all information necessary for a complete evaluation by the employer,
including drawings, design calculations, technical specifications, breakdown of prices, proposed construction methodology,
and other relevant details.
86 User’s guide to procurement of works—SMALL CONTRACTS

Drawings

Notes

1. It is customary to bind the drawings in a separate volume, which is often larger than other volumes of the contract documents.
The size will be dictated by the scale of the drawings, which must not be reduced to the extent that details are rendered
illegible.
2. A simplified map showing the location of the Site in relation to the local geography, including major roads, ports, airports, and
railroads, is helpful.
3. The construction drawings, even if not fully developed, must show sufficient details to enable Bidders to understand the type
and complexity of the work involved and to price the bill of quantities or activity schedule.
Employer’s Requirements 87

Supplementary Information
Regarding Works to Be Procured
88 User’s guide to procurement of works—SMALL CONTRACTS

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:

Total Work Experience in

Experience Similar Work
No. Position [years] [years]

Notes

The managerial and technical competence of a contractor is largely related to key personnel on site. The extent to which the
bidder should demonstrate having staff with extensive experience should be limited to those requiring critical operational or
technical skills. The personnel requirement should therefore refer to a limited number of such key personnel, for instance, the
project or contract manager and those superintendents working under the project manager who will be responsible for major
components (e.g., superintendents specialized in dredging, piling, tunneling, or earthworks, as required for each particular project).
Requirements should specify
(a) the minimum number of years of experience in similar position; and
(b) the minimum number of years of experience and/or number of comparable projects carried out in a specified number of
preceding years.
The requirement of education and academic qualifications is normally unnecessary for such positions, as contractors often employ
competent staff who have learned their profession “on the job” rather than through academic training. It is appropriate to specify
that certain positions are filled by individuals who have held posts of comparable authority for, say, 3 years with the bidder, so that
key staff in executive site positions have sufficient knowledge of the bidder’s management, policy, procedures, and practices to act
with confidence and authority within that framework.
Employer’s Requirements 89

Equipment Requirements
Using Form EQU in Section 4 (Bidding Forms), the Bidder must demonstrate that it has the key equipment listed
below:

No. Equipment Type and Characteristics Minimum Number Required

Notes

The employer should only specify bulky or specialized items that are critical for the type of project to be implemented, and which
may be difficult for the contractor to obtain quickly. Examples may include items such as heavy lift cranes and piling barges,
dredgers, tunnel boring machines, or asphalt mixing plant.
An inventory of construction equipment represents a high capital cost overhead to a contractor. Consequently, not all competent
potential bidders will maintain an inventory of high-value items that are in suitable condition for major contracts. This is
particularly so with management contractors, who undertake construction projects mainly by subcontracting. In most cases,
bidders can readily purchase, lease, or hire equipment; examples may include items such as heavy lift cranes and piling barges, etc.
Even in such cases, contractors may not own the specialized items of equipment, and may rely on specialist subcontractors or
equipment–hire firms. The availability of such subcontractors and of the specified equipment should be subject to verification prior
to contract award. The terms of any lease or hire agreement for equipment should preferably include a provision that the equipment
will remain on the site (or be vested in the employer) in the event of default of the contractor, thereby ensuring more timely
continuity of work by a replacement contractor.
90

Section 7 – General Conditions

of Contract
The General Conditions of Contract (GCC), read in conjunction with the Particular Conditions of Contract (PCC)
and other documents listed therein should be a complete document expressing fairly the rights and obligations
of both parties. The standard text of the GCC must be retained intact to facilitate its reading and interpretation
by Bidders and its review by ADB. Any amendments and additions to the GCC, specific to the contract in hand,
should be introduced in Section 8 – PCC.

The use of standard conditions of contract for all building and civil works throughout a country will ensure
comprehensiveness of coverage, general acceptability of its provisions, savings in cost and time in bid preparation
and review, and the development of a solid background of legal case histories.

The form of Conditions of Contract that follows has been developed on the basis of considerable international
experience in the drafting and management of contracts, bearing in mind a trend in the construction industry
toward simpler, more straightforward language.

The GCC in this bidding document provides for the usual arrangement where the Contractor constructs the Works
in accordance with design provided by the Employer, and also for contracts that include, or wholly comprise,
contractor-designed civil, mechanical or electrical works. Section 7 is generally based on the Conditions of Contract
of the World Bank’s Standard Bidding Documents for Procurement of Works, Smaller Contracts, December 2012.

The GCC can be used for lump sum contracts and, with the modifications recommended in the PCC, also for
small unit price contracts. Design work by the contractor is also provided for in these Conditions.

For relatively simple contracts, the Short Form of Contract, First Edition, 1999 prepared by the Fédération
Internationale des Ingénieurs-Conseils (FIDIC) is recommended to be used.
General Conditions of Contract 91

Table of Clauses
A. General.................................................................................................................................................................... 94
1. Definitions................................................................................................................................................................................... 94
2. Interpretation............................................................................................................................................................................. 96
3. Language and Law.................................................................................................................................................................... 97
4. Contract Agreement................................................................................................................................................................ 97
5. Assignment.................................................................................................................................................................................. 97
6. Care and Supply of Documents........................................................................................................................................... 98
7. Confidential Details................................................................................................................................................................. 98
8. Compliance with Laws............................................................................................................................................................ 98
9. Joint and Several Liability....................................................................................................................................................... 99
10. Project Manager’s Decisions................................................................................................................................................ 99
11. Delegation................................................................................................................................................................................... 99
12. Communications...................................................................................................................................................................... 99
13. Subcontracting........................................................................................................................................................................... 99
14. Other Contractors.................................................................................................................................................................... 99
15. Personnel and Equipment..................................................................................................................................................... 99
16. Employer’s and Contractor’s Risks...................................................................................................................................100
17. Employer’s Risks......................................................................................................................................................................100
18. Contractor’s Risks...................................................................................................................................................................100
19. Insurance....................................................................................................................................................................................101
20. Site Investigation Reports....................................................................................................................................................101
21. Contractor to Construct the Works.................................................................................................................................101
22. The Works to be Completed by the Intended Completion Date.........................................................................101
23. Designs by Contractor and Approval by the Project Manager..............................................................................101
24. Safety...........................................................................................................................................................................................102
25. Discoveries................................................................................................................................................................................102
26. Possession of the Site............................................................................................................................................................102
27. Access to the Site...................................................................................................................................................................102
28. Instructions, Inspections, and Audits.............................................................................................................................102
29. Appointment of the Adjudicator......................................................................................................................................103
30. Procedure for Disputes.........................................................................................................................................................103

B. Staff and Labor.....................................................................................................................................................103

31. Forced Labor.............................................................................................................................................................................103
32. Child Labor................................................................................................................................................................................103
33. Workers’ Organizations........................................................................................................................................................104
34. Nondiscrimination and Equal Opportunity..................................................................................................................104
92 User’s guide to procurement of works—SMALL CONTRACTS

C. Time Control.........................................................................................................................................................104
35. Program......................................................................................................................................................................................104
36. Extension of the Intended Completion Date...............................................................................................................105
37. Acceleration..............................................................................................................................................................................105
38. Delays Ordered by the Project Manager........................................................................................................................105
39. Management Meetings........................................................................................................................................................105
40. Early Warning...........................................................................................................................................................................105

D. Quality Control.....................................................................................................................................................106
41. Identifying Defects.................................................................................................................................................................106
42. Tests.............................................................................................................................................................................................106
43. Correction of Defects...........................................................................................................................................................106
44. Uncorrected Defects.............................................................................................................................................................106

E. Cost Control..........................................................................................................................................................106
45. Contract Price..........................................................................................................................................................................106
46. Changes in the Contract Price...........................................................................................................................................107
47. Variations...................................................................................................................................................................................107
48. Cash Flow Forecasts..............................................................................................................................................................108
49. Payment Certificates.............................................................................................................................................................108
50. Payments....................................................................................................................................................................................108
51. Compensation Events...........................................................................................................................................................109
52. Tax................................................................................................................................................................................................110
53. Currencies.................................................................................................................................................................................110
54. Price Adjustment....................................................................................................................................................................110
55. Retention...................................................................................................................................................................................110
56. Liquidated Damages..............................................................................................................................................................111
57. Bonus...........................................................................................................................................................................................111
58. Advance Payment...................................................................................................................................................................111
59. Securities....................................................................................................................................................................................112
60. Dayworks....................................................................................................................................................................................112
61. Cost of Repairs.........................................................................................................................................................................112

F. Force Majeure........................................................................................................................................................112
62. Definition of Force Majeure................................................................................................................................................112
63. Notice of Force Majeure......................................................................................................................................................113
64. Duty to Minimize Delay........................................................................................................................................................113
65. Consequences of Force Majeure......................................................................................................................................113
66. Force Majeure Affecting Subcontractor........................................................................................................................114
67. Optional Termination, Payment, and Release.............................................................................................................114
68. Release from Performance..................................................................................................................................................114
General Conditions of Contract 93

G. Finishing the Contract.........................................................................................................................................115

69. Completion...............................................................................................................................................................................115
70. Taking Over...............................................................................................................................................................................115
71. Final Account...........................................................................................................................................................................115
72. Operating and Maintenance Manuals............................................................................................................................115
73. Termination...............................................................................................................................................................................115
74. Fraud and Corruption............................................................................................................................................................116
75. Payment upon Termination................................................................................................................................................118
76. Property......................................................................................................................................................................................118
77. Release from Performance..................................................................................................................................................118
78. Suspension of ADB Loan or Credit..................................................................................................................................118
79. Eligibility.....................................................................................................................................................................................118
94 User’s guide to procurement of works—SMALL CONTRACTS

General Conditions of Contract

A. General
1. Definitions 1.1 Boldface type is used to identify defined terms.

(a) The Accepted Contract Amount means the amount accepted in the
Letter of Acceptance for the execution and completion of the Works
and the remedying of any defects.

(b) The Activity Schedule is a schedule of the activities comprising the

construction, installation, testing, and commissioning of the Works
in a lump sum contract. It includes a lump sum price for each activity,
which is used for valuations and for assessing the effects of Variations
and Compensation Events.

(c) The Adjudicator is the person appointed jointly by the Employer and
the Contractor to resolve disputes in the first instance, as provided
for in GCC 29.1 [Appointment of Adjudicator] hereunder.

(d) Bank means the financing institutions named in the Particular

Conditions of Contract (PCC).

(e) Bill of Quantities means the priced and completed Bill of Quantities
forming part of the Bid.

(f) Compensation Events are those defined in GCC 51.1 [Compensation

Events] hereunder.

(g) The Completion Date is the date of completion of the Works as

certified by the Project Manager, in accordance with GCC 69.1
[Completion].

(h) The Contract is the Contract between the Employer and the
Contractor to execute, complete, and maintain the Works. It consists
of the documents listed in GCC 2.3 below.

(i) The Contractor is the party whose Bid to carry out the Works has
been accepted by the Employer.

(j) The Contractor’s Bid is the completed bidding document submitted

by the Contractor to the Employer.

(k) The Contract Price is the Accepted Contract Amount stated in the
Letter of Acceptance and thereafter as adjusted in accordance with
the Contract.

(l) Days are calendar days; months are calendar months.

(m) Dayworks are varied work inputs subject to payment on a time

basis for the Contractor’s employees and Equipment, in addition to
payments for associated Materials and Plant.
General Conditions of Contract 95

(n) A Defect is any part of the Works not completed in accordance with
the Contract.

(o) The Defects Liability Certificate is the certificate issued by the

Project Manager upon correction of defects by the Contractor.

(p) The Defects Liability Period is the period calculated from the
Completion Date where the Contractor remains responsible for
remedying defects.

(q) Drawings include calculations and other information provided or

approved by the Project Manager for the execution of the Contract.

(r) The Employer is the party who employs the Contractor to carry out
the Works, as specified in the PCC.

(s) Equipment is the Contractor’s machinery and vehicles brought

temporarily to the Site to construct the Works.

(t) Force Majeure means an exceptional event or circumstance: which is

beyond a Party’s control; which such Party could not reasonably have
provided against before entering into the Contract; which, having
arisen, such Party could not reasonably have avoided or overcome;
and, which is not substantially attributable to the other Party.

(u) In writing or written means handwritten, typewritten, printed or

electronically made, and resulting in a permanent record.

(v) The Initial Contract Price is the Contract Price listed in the
Employer’s Letter of Acceptance.

(w) The Intended Completion Date is the date on which it is intended

that the Contractor shall complete the Works. The Intended
Completion Date is specified in the PCC. The Intended Completion
Date may be revised only by the Project Manager by issuing an
extension of time or an acceleration order.

(x) Letter of Acceptance means the formal acceptance by the Employer

of the Bid and denotes the formation of the Contract at the date of
acceptance.

(y) Materials are all supplies, including consumables, used by the

Contractor for incorporation in the Works.

(z) Party means the Employer or the Contractor, as the context requires.

(aa) PCC means Particular Conditions of Contract.

(bb) Plant is any integral part of the Works that shall have a mechanical,
electrical, chemical, or biological function.
96 User’s guide to procurement of works—SMALL CONTRACTS

(cc) The Project Manager is the person named in the PCC (or any
other competent person appointed by the Employer and notified
to the Contractor, to act in replacement of the Project Manager)
who is responsible for supervising the execution of the Works and
administering the Contract.

(dd) Retention Money means the aggregate of all monies retained by the
Employer pursuant to GCC 55.1 [Retention].

(ee) Schedules means the document(s) entitled schedules, completed

by the Contractor and submitted with the Letter of Tender, as
included in the Contract. Such document may include the Bill of
Quantities, data, lists, and schedules of rates and/or prices.

(ff) The Site is the area defined as such in the PCC.

(gg) Site Investigation Reports are those that were included in the
bidding documents and are factual and interpretative reports about
the surface and subsurface conditions at the Site.

(hh) Specification means the Specification of the Works included in the

Contract and any modification or addition made or approved by the
Project Manager.

(ii) The Start Date is given in the PCC. It is the latest date when the
Contractor shall commence execution of the Works. It does not
necessarily coincide with any of the Site Possession Dates.

(jj) A Subcontractor is a person or corporate body who has a Contract

with the Contractor to carry out a part of the work in the Contract,
which includes work on the Site.

(kk) Temporary Works are works designed, constructed, installed, and

removed by the Contractor that are needed for construction or
installation of the Works.

(ll) A Variation is an instruction given by the Project Manager, which

varies the Works.

(mm) The Works are what the Contract requires the Contractor to
construct, install, and turn over to the Employer, as defined in the
PCC.

2. Interpretation 2.1 In interpreting these GCC, singular also means plural, male also means
female or neuter, and the other way around. Headings have no significance.
Words have their normal meaning under the language of the Contract
unless specifically defined. The Project Manager shall provide instructions
clarifying queries about these GCC.

2.2 If sectional completion is specified in the PCC, references in the GCC to

the Works, the Completion Date, and the Intended Completion Date apply
to any Section of the Works (other than references to the Completion Date
and Intended Completion Date for the whole of the Works).
General Conditions of Contract 97

2.3 The documents forming the Contract shall be interpreted in the following
order of priority:

(a) Contract Agreement,

(b) Letter of Acceptance,

(c) Letter of Bid,

(d) Particular Conditions of Contract,

(e) the List of Eligible Countries that was specified in Section 5 of the
bidding document,

(f) General Conditions of Contract,

(g) Specifications,

(h) Drawings,

(i) Completed Activity Schedules or Bill of Quantities, and

(j) any other document listed in the PCC as forming part of the Contract.

3. Language 3.1 The language of the Contract and the law governing the Contract are stated
and Law in the PCC.

3.2 Throughout the execution of the Contract, the Contractor shall comply
with the import of goods and services prohibitions in the Employer’s
country when

(a) 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, the Employer’s Country prohibits any import of goods from,
or any payments to, a particular country, person, or entity. Where
the borrower’s country prohibits payments to a particular firm or
for particular goods by such an act of compliance, that firm may be
excluded.

4. Contract 4.1 The Parties shall enter into a Contract Agreement within 28 days after
Agreement the Contractor receives the Letter of Acceptance, unless the Particular
Conditions establish otherwise. The Contract Agreement shall be based
upon the attached Contract forms in Section 8. The costs of stamp duties
and similar charges (if any) imposed by law in connection with entry into the
Contract Agreement shall be borne by the Employer.

5. Assignment 5.1 Neither Party shall assign the whole or any part of the Contract or any
benefit or interest in or under the Contract. However, either Party

(a) may assign the whole or any part with the prior agreement of the
other Party, at the sole discretion of such other Party; and

(b) may, as security in favor of a bank or financial institution, assign its

right to any moneys due, or to become due, under the Contract.
98 User’s guide to procurement of works—SMALL CONTRACTS

6. Care and Supply 6.1 The Specification and Drawings shall be in the custody and care of
of Documents the Employer. Unless otherwise stated in the Contract, two copies of
the Contract and of each subsequent Drawing shall be supplied to the
Contractor, who may make or request further copies at the cost of the
Contractor.

6.2 Each of the Contractor’s Documents shall be in the custody and care of the
Contractor, unless and until taken over by the Employer. Unless otherwise
stated in the Contract, the Contractor shall supply to the Engineer six copies
of each of the Contractor’s Documents.

6.3 The Contractor shall keep, on the Site, a copy of the Contract, publications
named in the Specification, the Contractor’s Documents (if any), the
Drawings and Variations and other communications given under the
Contract. The Employer’s Personnel shall have the right of access to all
these documents at all reasonable times.

6.4 If a Party becomes aware of an error or defect in a document which was

prepared for use in executing the Works, the Party shall promptly give
notice to the other Party of such error or defect.

7. Confidential Details 7.1 The Contractor’s and the Employer’s Personnel shall disclose all such
confidential and other information as may be reasonably required in order
to verify the Contractor’s compliance with the Contract and allow its
proper implementation.

7.2 Each of them shall treat the details of the Contract as private and
confidential, except to the extent necessary to carry out their respective
obligations under the Contract or to comply with applicable Laws. Each of
them shall not publish or disclose any particulars of the Works prepared
by the other Party without the previous agreement of the other Party.
However, the Contractor shall be permitted to disclose any publicly
available information, or information otherwise required to establish his
qualifications to compete for other projects.

7.3 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 under this Clause.

8. Compliance 8.1 The Contractor shall, in performing the Contract, comply with applicable
with Laws Laws.

8.2 Unless otherwise stated in the Particular Conditions,

(a) 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 [Employer’s Country or country
where the Site is located] which (i) such authorities or undertakings
require the Employer to obtain in the Employer’s name, and (ii) 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;
General Conditions of Contract 99

(b) the Contractor 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 [Employer’s Country or country
where the Site is located] which such authorities or undertakings
require the Contractor to obtain in its name and which are necessary
for the performance of the Contract, including, without limitation,
visas for the Contractor’s and Subcontractor’s personnel and entry
permits for all imported Contractor’s Equipment. The Contractor shall
acquire all other permits, approvals, and/or licenses that are not the
responsibility of the Employer under Subclause 8.2(a) hereof and that
are necessary for the performance of the Contract. 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 Employer or its personnel, including the Subcontractors and their
personnel, but without prejudice to Subclause 8.1 hereof.

9. Joint and 9.1 If the Contractor is a joint venture of two or more persons, all such persons
Several Liability shall be jointly and severally liable to the Employer for the fulfillment of the
provisions of the Contract, and shall designate one of such persons to act
as a leader with authority to bind the joint venture. The composition or
the constitution of the joint venture shall not be altered without the prior
consent of the Employer.

10. Project Manager’s 10.1 Except where otherwise specifically stated, the Project Manager shall
Decisions decide contractual matters between the Employer and the Contractor in
the role representing the Employer.

11. Delegation 11.1 The Project Manager may delegate any of his duties and responsibilities
to other people, except to the Adjudicator, after notifying the Contractor,
and may cancel any delegation after notifying the Contractor.

12. Communications 12.1 Communications between parties that are referred to in the Conditions
shall be effective only when in writing. A notice shall be effective only when
it is delivered.

13. Subcontracting 13.1 The Contractor may subcontract with the approval of the Project Manager,
but may not assign the Contract without the approval of the Employer in
writing. Subcontracting shall not alter the Contractor’s obligations.

14. Other 14.1 The Contractor shall cooperate and share the Site with other contractors,
Contractors public authorities, utilities, and the Employer between the dates given in the
Schedule of Other Contractors, as referred to in the PCC. The Contractor
shall also provide facilities and services for them as described in the
Schedule. The Employer may modify the Schedule of Other Contractors,
and shall notify the Contractor of any such modification.

15. Personnel and 15.1 The Contractor shall employ the key personnel and use the equipment
Equipment identified in its Bid, to carry out the functions stated in the Schedule or
other personnel and equipment approved by the Project Manager. The
Project Manager shall approve any proposed replacement of key personnel
and equipment only if their relevant qualifications or characteristics are
substantially equal to or better than those proposed in the Bid.
100 User’s guide to procurement of works—SMALL CONTRACTS

15.2 If the Project Manager asks the Contractor to remove a person who is a
member of the Contractor’s staff or work force, stating the reasons, the
Contractor shall ensure that the person leaves the Site within 7 days and
has no further connection with the work in the Contract.

15.3 If the Employer, Project Manager, or Contractor determines, that any

employee of the Contractor be determined to have engaged in corrupt,
fraudulent, collusive, coercive, or other prohibited practices during
the execution of the Works, then that employee shall be removed in
accordance with Clause 15.2 above.

16. Employer’s and 16.1 The Employer carries the risks which this Contract states are Employer’s
Contractor’s Risks risks, and the Contractor carries the risks which this Contract states are
Contractor’s risks.

17. Employer’s Risks 17.1 From the Start Date until the Defects Liability Certificate has been issued,
the following are Employer’s risks:

(a) The risk of personal injury, death, or loss of or damage to property

(excluding the Works, Plant, Materials, and Equipment), which are
due to

(i) use or occupation of the Site by the Works or for the purpose of
the Works, which is the unavoidable result of the Works, or

(ii) negligence, breach of statutory duty, or interference with any

legal right by the Employer or by any person employed by or
contracted to him except the Contractor.

(b) The risk of damage to the Works, Plant, Materials, and Equipment to
the extent that it is due to a fault of the Employer or in the Employer’s
design, or due to war or radioactive contamination directly affecting
the country where the Works are to be executed.

17.2 From the Completion Date until the Defects Liability Certificate has been
issued, the risk of loss of or damage to the Works, Plant, and Materials is an
Employer’s risk except loss or damage due to

(a) a Defect which existed on the Completion Date,

(b) an event occurring before the Completion Date, which was not itself
an Employer’s risk, or

(c) the activities of the Contractor on the Site after the Completion Date.

18. Contractor’s 18.1 From the Starting Date until the Defects Liability Certificate has been
Risks issued, the risks of personal injury, death, and loss of or damage to
property (including, without limitation, the Works, Plant, Materials, and
Equipment), which are not Employer’s risks, are Contractor’s risks.
General Conditions of Contract 101

19. Insurance 19.1 The Contractor shall provide, in the joint names of the Employer and the
Contractor, insurance cover from the Start Date to the end of the Defects
Liability Period, in the amounts and deductibles stated in the PCC for the
following events, which are due to the Contractor’s risks:

(a) loss of or damage to the Works, Plant, and Materials;

(b) loss of or damage to Equipment;

(c) loss of or damage to property (except the Works, Plant, Materials,

and Equipment) in connection with the Contract; and

(d) personal injury or death.

19.2 Policies and certificates for insurance shall be delivered by the Contractor
to the Project Manager for the Project Manager’s approval before the
Start Date. All such insurance shall provide for compensation to be
payable in the types and proportions of currencies required to rectify the
loss or damage incurred.

19.3 If the Contractor does not provide any of the policies and certificates
required, the Employer may effect the insurance, which the Contractor
should have provided and recover the premiums the Employer has paid
from payments otherwise due to the Contractor or, if no payment is due,
the payment of the premiums shall be a debt due.

19.4 Alterations to the terms of an insurance shall not be made without the
approval of the Project Manager.

19.5 Both parties shall comply with any conditions of the insurance policies.

20. Site Investigation 20.1 The Contractor, in preparing the Bid, shall rely on any Site Investigation
Reports Reports referred to in the PCC, supplemented by any information available
to the Contractor.

21. Contractor to 21.1 The Contractor shall construct and install the Works in accordance with
Construct the Works the Specifications and Drawings.

22. The Works to be 22.1 The Contractor may commence execution of the Works on the Start Date
Completed by and shall carry out the Works in accordance with the Program submitted by
the Intended the Contractor, as updated with the approval of the Project Manager, and
Completion Date complete them by the Intended Completion Date.

23. Designs by 23.1 The Contractor shall carry out design to the extent specified in the PCC.
Contractor and The Contractor shall promptly submit to the Employer all designs prepared
Approval by the by him. Within 14 days of receipt, the Employer shall notify any comments.
Project Manager The Contractor shall not construct any element of the permanent work
designed by him within 14 days after the design has been submitted to the
Employer or where the design for that element has been rejected. Design
that has been rejected shall be promptly amended and resubmitted.
The Contractor shall resubmit all designs commented on, taking these
comments into account as necessary.
102 User’s guide to procurement of works—SMALL CONTRACTS

23.2 The Contractor shall submit Specifications and Drawings showing the
proposed Temporary Works to the Project Manager, who is to approve
them if they comply with the Specifications and Drawings.

23.3 The Contractor shall be responsible for design of Temporary Works.

23.4 The Project Manager’s approval shall not alter the Contractor’s responsibility
for design of the Temporary Works.

23.5 The Contractor shall obtain approval of third parties to the design of the
Temporary Works, where required.

23.6 All Drawings prepared by the Contractor for the execution of the
temporary or permanent Works, are subject to prior approval by the
Project Manager before this use.

24. Safety 24.1 The Contractor shall be responsible for the safety of all activities on the Site.

25. Discoveries 25.1 Anything of historical or other interest or of significant value unexpectedly
discovered on the Site shall be the property of the Employer. The
Contractor shall notify the Project Manager of such discoveries and carry
out the Project Manager’s instructions for dealing with them.

26. Possession 26.1 The Employer shall give possession of all parts of the Site to the Contractor.
of the Site If possession of a part is not given by the date stated in the PCC, the
Employer shall be deemed to have delayed the start of the relevant activities,
and this shall be a Compensation Event.

27. Access to the Site 27.1 The Contractor shall allow the Project Manager and any person authorized
by the Project Manager access to the Site and to any place where work
in connection with the Contract is being carried out or is intended to be
carried out.

28. Instructions, 28.1 The Contractor shall carry out all instructions of the Project Manager,
Inspections, which comply with the applicable laws where the Site is located.
and Audits
28.2 The Contractor shall keep, and shall make all reasonable efforts to cause
its Subcontractors and subconsultants to keep accurate and systematic
accounts and records in respect of the Works in such form and details as
will clearly identify relevant time changes and costs.

28.3 The Contractor shall permit ADB to inspect the Contractor’s accounts,
records, and other documents relating to the submission of bids and
contract performance and to have them audited by auditors appointed
by ADB. The Contractor shall maintain all documents and records related
to the Contract for a period of three (3) years after completion of the
Works. The Contractor shall provide any documents necessary for the
investigation of allegations of fraud, collusion, coercion, or corruption and
require its employees or agents with knowledge of the Contract to respond
to questions from ADB.
General Conditions of Contract 103

29. Appointment of 29.1 The Adjudicator shall be appointed jointly by the Employer and the
the Adjudicator Contractor, at the time of the Employer’s issuance of the Letter of
Acceptance. If, in the Letter of Acceptance, the Employer does not agree
on the appointment of the Adjudicator, the Employer will request the
Appointing Authority designated in the PCC, to appoint the Adjudicator
within 14 days of receipt of such request.

29.2 Should the Adjudicator resign or die, or should the Employer and the
Contractor agree that the Adjudicator is not functioning in accordance
with the provisions of the Contract, a new Adjudicator shall be jointly
appointed by the Employer and the Contractor. In case of disagreement
between the Employer and the Contractor, within 30 days, the Adjudicator
shall be designated by the Appointing Authority at the request of either
party, within 14 days of receipt of such request.

30. Procedure for 30.1 If the Contractor believes that a decision taken by the Project Manager was
Disputes either outside the authority given to the Project Manager by the Contract
or that the decision was wrongly taken, the decision shall be referred to
the Adjudicator within 14 days of the notification of the Project Manager’s
decision.

30.2 The Adjudicator shall give a decision in writing within 28 days of receipt of
a notification of a dispute.

30.3 The Adjudicator shall be paid by the hour at the rate specified in the
PCC, together with reimbursable expenses of the types specified in the
PCC, and the cost shall be divided equally between the Employer and the
Contractor, whatever decision is reached by the Adjudicator. Either party
may refer a decision of the Adjudicator to an Arbitrator within 28 days of
the Adjudicator’s written decision. If neither party refers the dispute to
arbitration within the above 28 days, the Adjudicator’s decision shall be
final and binding.

30.4 The arbitration shall be conducted in accordance with the arbitration

procedures published by the institution named and in the place specified
in the PCC.

B. Staff and Labor

31. Forced Labor 31.1 The Contractor shall not employ forced labor, which consists of any work
or service, not voluntarily performed, that is exacted from an individual
under threat of force or penalty. This covers any kind of involuntary or
compulsory labor, such as indentured labor, bonded labor, or similar labor-
contracting arrangements.

32. Child Labor 32.1 The Contractor shall not employ children in a manner that is economically
exploitative, or is likely to be hazardous, or to interfere with, the child’s
education, or to be harmful to the child’s health or physical, mental,
spiritual, moral, or social development. Where national laws have provisions
for employment of minors, the Contractor shall follow those laws applicable
to the Contractor. Children below the age of 18 years shall not be employed
in dangerous work.
104 User’s guide to procurement of works—SMALL CONTRACTS

33. Workers’ 33.1 In countries where national law recognizes workers’ rights to form and to
Organizations join workers’ organizations of their choosing without interference and to
bargain collectively, the Contractor shall comply with national law. Where
national law substantially restricts workers’ organizations, the Contractor
shall enable alternative means for the Contractor’s Personnel to express
their grievances and protect their rights regarding working conditions and
terms of employment. In either case described above, and where national
law is silent, the Contractor shall not discourage the Contractor’s Personnel
from forming or joining workers’ organizations of their choosing or from
bargaining collectively, and shall not discriminate or retaliate against the
Contractor’s Personnel who participate, or seek to participate, in such
organizations and bargain collectively. The Contractor shall engage with
such workers representatives. Worker organizations are expected to fairly
represent the workers in the workforce.

34. Nondiscrimination 34.1 The Contractor shall not make employment decisions on the basis of
and Equal personal characteristics unrelated to inherent job requirements. The
Opportunity Contractor shall base the employment relationship on the principle of 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, access to training, promotion, termination of
employment or retirement, and discipline. In countries where national law
provides for nondiscrimination in employment, the Contractor shall comply
with national law. When national laws are silent on nondiscrimination in
employment, the Contractor shall meet this Subclause’s requirements.
Special measures of protection or assistance to remedy past discrimination
or selection for a particular job based on the inherent requirements of the
job shall not be deemed discrimination.

C. Time Control
35. Program 35.1 Within the time stated in the PCC, after the date of the Letter of Acceptance,
the Contractor shall submit to the Project Manager for approval a Program
showing the general methods, arrangements, order, and timing for all the
activities in the Works. In the case of a lump sum contract, the activities in
the Program shall be consistent with those in the Activity Schedule.

35.2 An update of the Program shall be a program showing the actual progress
achieved on each activity and the effect of the progress achieved on the
timing of the remaining work, including any changes to the sequence of the
activities.

35.3 The Contractor shall submit to the Project Manager for approval an
updated Program at intervals no longer than the period stated in the PCC.
If the Contractor does not submit an updated Program within this period,
the Project Manager may withhold the amount stated in the PCC from
the next payment certificate and continue to withhold this amount until
the next payment after the date on which the overdue Program has been
submitted. In the case of a lump sum contract, the Contractor shall provide
an updated Activity Schedule within 14 days of being instructed to by the
Project Manager.
General Conditions of Contract 105

35.4 The Project Manager’s approval of the Program shall not alter the
Contractor’s obligations. The Contractor may revise the Program and
submit it to the Project Manager again at any time. A revised Program shall
show the effect of Variations and Compensation Events.

36. Extension of 36.1 The Project Manager shall extend the Intended Completion Date if
the Intended a Compensation Event occurs or a Variation is issued which makes it
Completion Date impossible for Completion to be achieved by the Intended Completion
Date without the Contractor taking steps to accelerate the remaining work,
which would cause the Contractor to incur additional cost.

36.2 The Project Manager shall decide whether and by how much to extend the
Intended Completion Date within 21 days of the Contractor asking the
Project Manager for a decision upon the effect of a Compensation Event or
Variation and submitting full supporting information. If the Contractor has
failed to give early warning of a delay or has failed to cooperate in dealing
with a delay, the delay by this failure shall not be considered in assessing the
new Intended Completion Date.

37. Acceleration 37.1 When the Employer wants the Contractor to finish before the Intended
Completion Date, the Project Manager shall obtain priced proposals for
achieving the necessary acceleration from the Contractor. If the Employer
accepts these proposals, the Intended Completion Date shall be adjusted
accordingly and confirmed by both the Employer and the Contractor.

37.2 If the Contractor’s priced proposals for an acceleration are accepted by

the Employer, they are incorporated in the Contract Price and treated as a
Variation.

38. Delays Ordered by 38.1 The Project Manager may instruct the Contractor to delay the start or
the Project Manager progress of any activity within the Works.

39. Management 39.1 Either the Project Manager or the Contractor may require the other to
Meetings attend a management meeting. The business of a management meeting
shall be to review the plans for remaining work and to deal with matters
raised in accordance with the early warning procedure.

39.2 The Project Manager shall record the business of management meetings
and provide copies of the record to those attending the meeting and to
the Employer. The responsibility of the parties for actions to be taken shall
be decided by the Project Manager either at the management meeting or
after the management meeting and stated in writing to all who attended
the meeting.

40. Early Warning 40.1 The Contractor shall warn the Project Manager at the earliest opportunity
of specific likely future events or circumstances that may adversely affect
the quality of the work, increase the Contract Price, or delay the execution
of the Works. The Project Manager may require the Contractor to provide
an estimate of the expected effect of the future event or circumstance on
the Contract Price and Completion Date. The estimate shall be provided by
the Contractor as soon as reasonably possible.
106 User’s guide to procurement of works—SMALL CONTRACTS

40.2 The Contractor shall cooperate with the Project Manager in making and
considering proposals for how the effect of such an event or circumstance
can be avoided or reduced by anyone involved in the work and in carrying
out any resulting instruction of the Project Manager.

D. Quality Control

41. Identifying 41.1 The Project Manager shall check the Contractor’s work and notify the
Defects Contractor of any Defects that are found. Such checking shall not affect
the Contractor’s responsibilities. The Project Manager may instruct the
Contractor to search for a Defect and to uncover and test any work that the
Project Manager considers may have a Defect.

42. Tests 42.1 If the Project Manager instructs the Contractor to carry out a test not
specified in the Specification to check whether any work has a Defect and
the test shows that it does, the Contractor shall pay for the test and any
samples. If there is no Defect, the test shall be a Compensation Event.

43. Correction of 43.1 The Project Manager shall give notice to the Contractor of any Defects
Defects before the end of the Defects Liability Period, which begins at Completion,
and is defined in the PCC. The Defects Liability Period shall be extended
for as long as Defects remain to be corrected.

43.2 Every time notice of a Defect is given, the Contractor shall correct the
notified Defect within the length of time specified by the Project Manager’s
notice.

44. Uncorrected 44.1 If the Contractor has not corrected a Defect within the time specified in
Defects the Project Manager’s notice, the Project Manager shall assess the cost of
having the Defect corrected, and the Contractor shall pay this amount.

E. Cost Control

45. Contract Price 45.1 In the case of an admeasurement contract, the Bill of Quantities shall
contain priced items for the Works to be performed by the Contractor. The
Bill of Quantities is used to calculate the Contract Price. The Contractor
will be paid for the quantity of the work accomplished at the rate in the Bill
of Quantities for each item.

45.2 In the case of a lump sum contract, the Activity Schedule shall contain
the priced activities for the Works to be performed by the Contractor.
The Activity Schedule is used to monitor and control the performance
of activities on which basis the Contractor will be paid. If payment for
Materials on Site shall be made separately, the Contractor shall show
delivery of Materials to the Site separately on the Activity Schedule.
General Conditions of Contract 107

46. Changes in the 46.1 In the case of an admeasurement contract:

Contract Price
(a) If the final quantity of the work done differs from the quantity in the
Bill of Quantities for the particular item by more than 25%, provided
the change exceeds 1% of the Initial Contract Price, the Project
Manager shall adjust the rate to allow for the change.

(b) The Project Manager shall not adjust rates from changes in quantities
if thereby the Initial Contract Price is exceeded by more than 15%,
except with the prior approval of the Employer.

(c) If requested by the Project Manager, the Contractor shall provide the
Project Manager with a detailed cost breakdown of any rate in the Bill
of Quantities.

46.2 In the case of a lump sum contract, the Activity Schedule shall be amended
by the Contractor to accommodate changes of Program or method of
working made at the Contractor’s own discretion. Prices in the Activity
Schedule shall not be altered when the Contractor makes such changes to
the Activity Schedule.

47. Variations 47.1 All Variations shall be included in updated Programs, and, in the case
of a lump sum contract, also in the Activity Schedule, produced by the
Contractor.

47.2 The Contractor shall provide the Project Manager with a quotation for
carrying out the Variation when requested to do so by the Project Manager.
The Project Manager shall assess the quotation, which shall be given within
seven (7) days of the request or within any longer period stated by the
Project Manager and before the Variation is ordered.

47.3 If the Contractor’s quotation is unreasonable, the Project Manager may

order the Variation and make a change to the Contract Price, which shall be
based on the Project Manager’s own forecast of the effects of the Variation
on the Contractor’s costs.

47.4 If the Project Manager decides that the urgency of varying the work would
prevent a quotation being given and considered without delaying the
work, no quotation shall be given and the Variation shall be treated as a
Compensation Event.

47.5 The Contractor shall not be entitled to additional payment for costs that
could have been avoided by giving early warning.

47.6 In the case of an admeasurement contract, if the work in the Variation

corresponds to an item description in the Bill of Quantities and if, in the
opinion of the Project Manager, the quantity of work above the limit stated
in GCC 46.1 [Changes in the Contract Price] or the timing of its execution
do not cause the cost per unit of quantity to change, the rate in the Bill
of Quantities shall be used to calculate the value of the Variation. If the
cost per unit of quantity changes, or if the nature or timing of the work
in the Variation does not correspond with items in the Bill of Quantities,
the quotation by the Contractor shall be in the form of new rates for the
relevant items of work.
108 User’s guide to procurement of works—SMALL CONTRACTS

48. Cash Flow 48.1 When the Program, or, in the case of a lump sum contract, the Activity
Forecasts Schedule, is updated, the Contractor shall provide the Project Manager
with an updated cash flow forecast. The cash flow forecast shall include
different currencies, as defined in the Contract, converted as necessary
using the Contract exchange rates.

49. Payment 49.1 The Contractor shall submit to the Project Manager monthly statements
Certificates of the estimated value of the work executed less the cumulative amount
certified previously.

49.2 The Project Manager shall check the Contractor’s monthly statement and
certify the amount to be paid to the Contractor.

49.3 The value of work executed shall be determined by the Project Manager.

49.4 The value of work executed shall comprise,

(a) in the case of an admeasurement contract, the value of the quantities

of work in the Bill of Quantities that have been completed; or

(b) in the case of a lump sum contract, the value of work executed shall
comprise the value of completed activities in the Activity Schedule.

49.5 The value of work executed shall include the valuation of Variations and
Compensation Events.

49.6 The Project Manager may exclude any item certified in a previous certificate
or reduce the proportion of any item previously certified in any certificate in
the light of later information.

50. Payments 50.1 Payments shall be adjusted for deductions for advance payments and
retention. The Employer shall pay the Contractor the amounts certified by
the Project Manager within 28 days of the date of each certificate. If the
Employer makes a late payment, the Contractor shall be paid interest on
the late payment in the next payment. Interest shall be calculated from the
date by which the payment should have been made up to the date when
the late payment is made at the prevailing rate of interest for commercial
borrowing for each of the currencies in which payments are made.

50.2 If an amount certified is increased in a later certificate or as a result of an

award by the Adjudicator or an Arbitrator, the Contractor shall be paid
interest upon the delayed payment as set out in this clause. Interest shall
be calculated from the date upon which the increased amount would have
been certified in the absence of dispute.

50.3 Unless otherwise stated, all payments and deductions shall be paid or
charged in the proportions of currencies comprising the Contract Price.

50.4 Items of the Works for which no rate or price has been entered in shall not
be paid for by the Employer and shall be deemed covered by other rates
and prices in the Contract.
General Conditions of Contract 109

51. Compensation 51.1 The following shall be Compensation Events:

Events
(a) The Employer does not give access to a part of the Site by the Site
Possession Date pursuant to GCC 26.1 [Possession of the Site].

(b) The Employer modifies the Schedule of Other Contractors in a way

that affects the work of the Contractor under the Contract.

(c) The Project Manager orders a delay or does not issue Drawings,
Specifications, or instructions required for execution of the Works
on time.

(d) The Project Manager instructs the Contractor to uncover or to carry

out additional tests upon work, which is then found to have no
Defects.

(e) The Project Manager unreasonably does not approve a subcontract

to be let.

(f) Ground conditions are substantially more adverse than could

reasonably have been assumed before issuance of the Letter of
Acceptance from the information issued to Bidders (including the
Site Investigation Reports), from information available publicly and
from a visual inspection of the Site.

(g) The Project Manager gives an instruction for dealing with an

unforeseen condition, caused by the Employer, or additional work
required for safety or other reasons.

(h) Other contractors, public authorities, utilities, or the Employer

does not work within the dates and other constraints stated in the
Contract, and they cause delay or extra cost to the Contractor.

(i) The advance payment is delayed.

(j) The effects on the Contractor of any of the Employer’s Risks.

(k) The Project Manager unreasonably delays issuing a Certificate of

Completion.

51.2 If a Compensation Event would cause additional cost or would prevent the
work being completed before the Intended Completion Date, the Contract
Price shall be increased and/or the Intended Completion Date shall be
extended. The Project Manager shall decide whether and by how much
the Contract Price shall be increased and whether and by how much the
Intended Completion Date shall be extended.

51.3 As soon as information demonstrating the effect of each Compensation

Event upon the Contractor’s forecast cost has been provided by the
Contractor, it shall be assessed by the Project Manager, and the Contract
Price shall be adjusted accordingly. If the Contractor’s forecast is deemed
unreasonable, the Project Manager shall adjust the Contract Price based on
the Project Manager’s own forecast. The Project Manager shall assume that
the Contractor shall react competently and promptly to the event.
110 User’s guide to procurement of works—SMALL CONTRACTS

51.4 The Contractor shall not be entitled to compensation to the extent that
the Employer’s interests are adversely affected by the Contractor’s not
having given early warning or not having cooperated with the Project
Manager.

52. Tax 52.1 The Project Manager shall adjust the Contract Price if taxes, duties, and
other levies are changed between the date 28 days before the submission
of bids for the Contract and the date of the last Completion certificate.
The adjustment shall be the change in the amount of tax payable by
the Contractor, provided such changes are not already reflected in the
Contract Price or are a result of GCC 54.1 [Price Adjustment].

53. Currencies 53.1 Where payments are made in currencies other than the currency of the
Employer’s country specified in the PCC, the exchange rates used for
calculating the amounts to be paid shall be the exchange rates stated in
the Contractor’s Bid.

54. Price Adjustment 54.1 Prices shall be adjusted for fluctuations in the cost of inputs only if provided
for in the PCC. If so provided, the amounts certified in each payment
certificate, before deducting for Advance Payment, shall be adjusted by
applying the respective price adjustment factor to the payment amounts
due in each currency. A separate formula of the type indicated below
applies to each Contract currency:

Pc = Ac + Bc Imc/Ioc

where:

Pc is the adjustment factor for the portion of the Contract Price payable in
a specific currency “c.”

Ac and Bc are coefficients1 specified in the PCC, representing the

nonadjustable and adjustable portions, respectively, of the Contract Price
payable in that specific currency “c;” and

Imc is a consolidated index prevailing at the end of the month being

invoiced and Ioc is the same consolidated index prevailing 28 days before
Bid opening for inputs payable; both in the specific currency “c.”

54.2 If the value of the index is changed after it has been used in a calculation,
the calculation shall be corrected and an adjustment made in the next
payment certificate. The index value shall be deemed to take account of all
changes in cost due to fluctuations in costs.

55. Retention 55.1 The Employer shall retain from each payment due to the Contractor the
proportion stated in the PCC until Completion of the whole of the Works.

1
The sum of the two coefficients Ac and Bc should be 1 (one) in the formula for each currency. Normally, both coefficients
shall be the same in the formulas for all currencies, since coefficient A, for the nonadjustable portion of the payments, is a very
approximate figure (usually 0.10 ~ 0.20) to take account of fixed cost elements or other nonadjustable components. The sum
of the adjustments for each currency is added to the Contract Price.
General Conditions of Contract 111

55.2 Upon the issue of a Certificate of Completion of the Works by the Project
Manager, in accordance with GCC 69.1 [Completion], half the total
amount retained shall be repaid to the Contractor and half when the
Defects Liability Period has passed and the Project Manager has certified
that all Defects notified by the Project Manager to the Contractor before
the end of this period have been corrected. The Contractor may substitute
retention money with an “on demand” bank guarantee.

56. Liquidated 56.1 The Contractor shall pay liquidated damages to the Employer at the rate
Damages per day stated in the PCC for each day that the Completion Date is later
than the Intended Completion Date. The total amount of liquidated
damages shall not exceed the amount defined in the PCC. The Employer
may deduct liquidated damages from payments due to the Contractor.
Payment of liquidated damages shall not affect the Contractor’s liabilities.

56.2 If the Intended Completion Date is extended after liquidated damages

have been paid, the Project Manager shall correct any overpayment of
liquidated damages by the Contractor by adjusting the next payment
certificate. The Contractor shall be paid interest on the overpayment,
calculated from the date of payment to the date of repayment, at the rates
specified in GCC 50.1 [Payments].

57. Bonus 57.1 The Contractor shall be paid a Bonus calculated at the rate per calendar
day stated in the PCC for each day (less any days for which the Contractor
is paid for acceleration) that the Completion is earlier than the Intended
Completion Date. The Project Manager shall certify that the Works are
complete, although they may not be due to be complete.

58. Advance Payment 58.1 The Employer shall make advance payment to the Contractor of the
amounts stated in the PCC by the date stated in the PCC, against provision
by the Contractor of an unconditional bank guarantee in a form and by a
bank acceptable to the Employer in amounts and currencies equal to the
advance payment. The guarantee shall remain effective until the advance
payment has been repaid, but the amount of the guarantee shall be
progressively reduced by the amounts repaid by the Contractor. Interest
shall not be charged on the advance payment.

58.2 The Contractor is to use the advance payment only to pay for Equipment,
Plant, Materials, and mobilization expenses required specifically for
execution of the Contract. The Contractor shall demonstrate that advance
payment has been used in this way by supplying copies of invoices or other
documents to the Project Manager.

58.3 The advance payment shall be repaid by deducting proportionate amounts

from payments otherwise due to the Contractor, following the schedule of
completed percentages of the Works on a payment basis. No account shall
be taken of the advance payment or its repayment in assessing valuations of
work done, Variations, price adjustments, Compensation Events, Bonuses,
or Liquidated Damages.
112 User’s guide to procurement of works—SMALL CONTRACTS

59. Securities 59.1 The Performance Security shall be provided to the Employer no later than
the date specified in the Letter of Acceptance and shall be issued in an
amount specified in the PCC, by a bank acceptable to the Employer, and
denominated in the types and proportions of the currencies in which the
Contract Price is payable. The Performance Security shall be valid until a
date 28 days from the date of issue of the Certificate of Completion in the
case of a bank guarantee.

60. Dayworks 60.1 If applicable, the Dayworks rates in the Contractor’s Bid shall be used
for small additional amounts of work only when the Project Manager has
given written instructions in advance for additional work to be paid for in
that way.

60.2 All work to be paid for as Dayworks shall be recorded by the Contractor
on forms approved by the Project Manager. Each completed form shall
be verified and signed by the Project Manager within 2 days of the work
being done.

60.3 The Contractor shall be paid for Dayworks subject to obtaining signed
Dayworks forms.

61. Cost of Repairs 61.1 Loss or damage to the Works or Materials to be incorporated in the Works
between the Start Date and the end of the Defects Correction periods
shall be remedied by the Contractor at the Contractor’s cost if the loss or
damage arises from the Contractor’s acts or omissions.

F. Force Majeure
62. Definition of 62.1 In this Clause, “Force Majeure” means an exceptional event or
Force Majeure circumstance,

(a) which is beyond a Party’s control;

(b) which such Party could not reasonably have provided against before
entering into the Contract;

(c) which, having arisen, such Party could not reasonably have avoided
or overcome; and

(d) which is not substantially attributable to the other Party.

62.2 Force Majeure may include, but is not limited to, exceptional events or
circumstances of the kind listed below, so long as conditions (a) to (d)
above are satisfied:

(a) war, hostilities (whether war be declared or not), invasion, act of

foreign enemies;

(b) rebellion, terrorism, sabotage by persons other than the Contractor’s

Personnel, revolution, insurrection, military or usurped power, or
civil war;
General Conditions of Contract 113

(c) riot, commotion, disorder, strike or lockout by persons other than the
Contractor’s Personnel;

(d) munitions of war, explosive materials, ionizing radiation or

contamination by radio-activity, except as may be attributable to
the Contractor’s use of such munitions, explosives, radiation, or
radioactivity; and

(e) natural catastrophes such as earthquake, hurricane, typhoon, or

volcanic activity.

63. Notice of 63.1 If a Party is or will be prevented from performing its substantial obligations
Force Majeure under the Contract by Force Majeure, then it shall give notice to the
other Party of the event or circumstances constituting the Force Majeure
and shall specify the obligations, the performance of which is or will be
prevented. The notice shall be given within 14 days after the Party became
aware, or should have become aware, of the relevant event or circumstance
constituting Force Majeure.

63.2 The Party shall, having given notice, be excused performance of its
obligations for so long as such Force Majeure prevents it from performing
them.

63.3 Notwithstanding any other provision of this Clause, Force Majeure shall
not apply to obligations of either Party to make payments to the other Party
under the Contract.

64. Duty to 64.1 Each Party shall at all times use all reasonable endeavours to minimize any
Minimize Delay delay in the performance of the Contract as a result of Force Majeure.

64.2 A Party shall give notice to the other Party when it ceases to be affected by
the Force Majeure.

65. Consequences of 65.1 If the Contractor is prevented from performing its substantial obligations
Force Majeure under the Contract by Force Majeure of which notice has been given
under GCC Subclause 63 [Notice of Force Majeure], and suffers delay
and/or incurs Cost by reason of such Force Majeure, the Contractor shall
be entitled subject to GCC Subclause 30.1 [Procedure for Disputes] to

(a) an extension of time for any such delay, if completion is or will be

delayed, under GCC Subclause 36 [Extension of the Intended
Completion Date]; and

(b) if the event or circumstance is of the kind described in sub-

paragraphs (a) to (d) of GCC Subclause 62.2 [Definition of Force
Majeure] and, in the case of subparagraphs (b) to (d), occurs in the
Country, payment of any such Cost, including the costs of rectifying
or replacing the Works and/or Goods damaged or destructed by
Force Majeure, to the extent they are not indemnified through the
insurance policy referred to in GCC Subclause 19 [Insurance].

65.2 After receiving this notice, the Project Manager shall proceed in
accordance with GCC Subclause 10 [Project Manager’s Decisions] to
agree or determine these matters.
114 User’s guide to procurement of works—SMALL CONTRACTS

66. Force Majeure 66.1 If any Subcontractor is entitled under any contract or agreement relating
Affecting to the Works to relief from force majeure on terms additional to or
Subcontractor broader than those specified in this Clause, such additional or broader
Force Majeure events or circumstances shall not excuse the Contractor’s
nonperformance or entitle him to relief under this Clause.

67. Optional 67.1 If the execution of substantially all the Works in progress is prevented for a
Termination, continuous period of 84 days by reason of Force Majeure of which notice
Payment, and has been given under GCC Subclause 63 [Notice of Force Majeure], or for
Release multiple periods which total more than 140 days due to the same notified
Force Majeure, then either Party may give to the other Party a notice of
termination of the Contract. In this event, the termination shall take
effect 7 days after the notice is given, and the Contractor shall proceed in
accordance with GCC Subclause 73.5 [Termination].

67.2 Upon such termination, the Project Manager shall determine the value of
the work done and issue a Payment Certificate, which shall include

(a) the amounts payable for any work carried out for which a price is
stated in the Contract;

(b) the Cost of Plant and Materials ordered for the Works which have
been delivered to the Contractor, or of which the Contractor is liable
to accept delivery: this Plant and Materials shall become the property
of (and be at the risk of) the Employer when paid for by the Employer,
and the Contractor shall place the same at the Employer’s disposal;

(c) other Costs or liabilities which in the circumstances were reasonably

and necessarily incurred by the Contractor in the expectation of
completing the Works;

(d) the Cost of removal of Temporary Works and Contractor’s Equipment

from the Site and the return of these items to the Contractor’s works
in his country (or to any other destination at no greater cost); and

(e) the Cost of repatriation of the Contractor’s staff and labor employed
wholly in connection with the Works at the date of termination.

68. Release from 68.1 Notwithstanding any other provision of this Clause, if any event or
Performance circumstance outside the control of the Parties (including, but not limited
to, Force Majeure) arises, which makes it impossible or unlawful for either
or both Parties to fulfill its or their contractual obligations or which, under
the law governing the Contract, entitles the Parties to be released from
further performance of the Contract, then upon notice by either Party to
the other Party of such event or circumstance,

(a) the Parties shall be discharged from further performance, without

prejudice to the rights of either Party in respect of any previous breach
of the Contract; and

(b) the sum payable by the Employer to the Contractor shall be the same
as would have been payable under GCC Subclause 67 [Optional
Termination, Payment and Release] if the Contract had been
terminated under GCC Subclause 67.
General Conditions of Contract 115

G. Finishing the Contract

69. Completion 69.1 The Contractor shall request the Project Manager to issue a certificate
of Completion of the Works, and the Project Manager shall do so upon
deciding that the work is completed.

70. Taking Over 70.1 The Employer shall take over the Site and the Works within 7 days of the
Project Manager’s issuing a certificate of Completion.

71. Final Account 71.1 The Contractor shall supply the Project Manager with a detailed account of
the total amount that the Contractor considers payable under the Contract
before the end of the Defects Liability Period. The Project Manager shall
issue a Defects Liability Certificate and certify any final payment that is due
to the Contractor within 56 days of receiving the Contractor’s account if it
is correct and complete. If it is not, the Project Manager shall issue within
56 days a schedule that states the scope of the corrections or additions that
are necessary. If the Final Account is still unsatisfactory after it has been
resubmitted, the Project Manager shall decide on the amount payable to the
Contractor and issue a payment certificate.

72. Operating and 72.1 If “as built” Drawings and/or operating and maintenance manuals are
Maintenance required, the Contractor shall supply them by the dates stated in the PCC.
Manuals
72.2 If the Contractor does not supply the Drawings and/or manuals by the
dates stated in the PCC pursuant to GCC 72.1, or they do not receive the
Project Manager’s approval, the Project Manager shall withhold the amount
stated in the PCC from payments due to the Contractor.

73. Termination 73.1 The Employer or the Contractor may terminate the Contract if the other
party causes a fundamental breach of the Contract.

73.2 Fundamental breaches of Contract shall include, but shall not be limited to,
the following:

(a) the Contractor stops work for 28 days when no stoppage of work
is shown on the current Program and the stoppage has not been
authorized by the Project Manager;

(b) the Project Manager instructs the Contractor to delay the progress
of the Works, and the instruction is not withdrawn within 28 days;

(c) the Employer or the Contractor is made bankrupt or goes into

liquidation other than for a reconstruction or amalgamation;

(d) a payment certified by the Project Manager is not paid by the

Employer to the Contractor within 84 days of the date of the Project
Manager’s certificate;

(e) the Project Manager gives Notice that failure to correct a particular
Defect is a fundamental breach of Contract and the Contractor fails
to correct it within a reasonable period of time determined by the
Project Manager;
116 User’s guide to procurement of works—SMALL CONTRACTS

(f) the Project Manager gives two consecutive Notices to update the
Program and accelerate the works to ensure compliance with GCC
Subclause 22.1 [The Works to be Completed by the Intended
Completion Date] and the Contractor fails to update the Program and
demonstrate acceleration of the works within a reasonable period of
time determined by the Project Manager;

(g) the Contractor does not maintain a Security, which is required;

(h) the Contractor has delayed the completion of the Works by the
number of days for which the maximum amount of liquidated
damages can be paid, as defined in the PCC; and

(i) if the Contractor, in the judgment of the Employer has engaged in

corrupt or fraudulent practices in competing for or in executing the
Contract, pursuant to GCC 74.1 [Fraud and Corruption].

73.3 When either party to the Contract gives notice of a breach of Contract to
the Project Manager for a cause other than those listed under GCC 73.2
above, the Project Manager shall decide whether the breach is fundamental
or not.

73.4 Notwithstanding the above, the Employer may terminate the Contract for
convenience.

73.5 If the Contract is terminated, the Contractor shall stop work immediately,
make the Site safe and secure, and leave the Site as soon as reasonably
possible.

74. Fraud and 74.1 ADB’s Anticorruption Policy requires Borrowers (including beneficiaries
Corruption 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 benefit
or to avoid an obligation;

(iii) “coercive practice” means impairing or harming, or threatening

to impair or harm, directly or indirectly, any party or the property
of the party to influence improperly the actions of a party;
General Conditions of Contract 117

(iv) “collusive practice” means an arrangement between two or more

parties designed to achieve an improper purpose, including
influencing improperly the actions of another party;

(v) “obstructive practice” means (a) deliberately destroying,

falsifying, altering, or concealing of evidence material to an
ADB investigation; (b) making false statements to investigators
in order to materially impede an ADB investigation; (c) failing
to comply with requests to provide information, documents,
or records in connection with an Office of Anticorruption and
Integrity (OAI) investigation; (d) threatening, harassing, or
intimidating any party to prevent it from disclosing its knowledge
of matters relevant to the investigation or from pursuing the
investigation, or (e) materially impeding ADB’s contractual
rights of audit or access to information; and

(vi) “integrity violation” is any act which violates ADB’s

Anticorruption Policy, including (i) to (v) above and the
following: abuse, conflict of interest, violations of ADB
sanctions, retaliation against whistleblowers or witnesses,
and other violations of ADB’s Anticorruption Policy, including
failure to adhere to the highest ethical standard.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has, directly or through an agent, engaged
in corrupt, fraudulent, collusive, coercive, or obstructive practices or
other integrity violations in competing for the Contract;

(c) will cancel the portion of the financing allocated to a contract if

it determines at any time that representatives of the borrower or
of a beneficiary of ADB-financing engaged in corrupt, fraudulent,
collusive, coercive, or obstructive practices or other integrity
violations during the procurement or the execution of that contract,
without the borrower having taken timely and appropriate action
satisfactory to ADB to remedy the situation; and

(d) will impose remedial actions on a firm or an individual, at any time,

in accordance with ADB’s Anticorruption Policy and Integrity
Principles and Guidelines (both as amended from time to time),
including declaring ineligible, either indefinitely or for a stated
period of time, to participate2 in ADB-financed, -administered,
or -supported activities or to benefit from an ADB-financed,
-administered, or -supported contract, financially or otherwise, if
it at any time determines that the firm or individual has, directly or
through an agent, engaged in corrupt, fraudulent, collusive, coercive,
or obstructive practices or other integrity violations.

2
Whether as a Contractor, Nominated Subcontractor, Consultant, Manufacturer or Supplier, or Service Provider; or in any
other capacity (different names are used depending on the particular Bidding Document). A Nominated Subcontractor is one
which either has been (i) included by the Bidder in its prequalification application or bid because it brings specific and critical
experience and know-how that are accounted for in the evaluation of the bidder’s prequalification application or the bid; or
(ii) appointed by the Employer.
118 User’s guide to procurement of works—SMALL CONTRACTS

75. Payment upon 75.1 If the Contract is terminated because of a fundamental breach of Contract
Termination by the Contractor, the Project Manager shall issue a certificate for the value
of the work done and Materials ordered less advance payments received
up to the date of the issue of the certificate and less the percentage to
apply to the value of the work not completed, as indicated in the PCC.
Additional Liquidated Damages shall not apply. If the total amount due to
the Employer exceeds any payment due to the Contractor, the difference
shall be a debt payable to the Employer.

75.2 If the Contract is terminated for the Employer’s convenience or because

of a fundamental breach of Contract by the Employer, the Project
Manager shall issue a certificate for the value of the work done, Materials
ordered, the reasonable cost of removal of Equipment, repatriation
of the Contractor’s personnel employed solely on the Works, and the
Contractor’s costs of protecting and securing the Works, and less advance
payments received up to the date of the certificate.

76. Property 76.1 All Materials on the Site, Plant, Equipment, Temporary Works, and Works
shall be deemed to be the property of the Employer if the Contract is
terminated because of the Contractor’s default.

77. Release from 77.1 If the Contract is frustrated by the outbreak of war or by any other event
Performance entirely outside the control of either the Employer or the Contractor,
the Project Manager shall certify that the Contract has been frustrated.
The Contractor shall make the Site safe and stop work as quickly as
possible after receiving this certificate and shall be paid for all work carried
out before receiving it and for any work carried out afterward to which a
commitment was made.

78. Suspension 78.1 In the event that ADB suspends the Loan or Credit to the Employer, from
of ADB Loan which part of the payments to the Contractor are being made,
or Credit
(a) the Employer is obligated to notify the Contractor, with copy to the
Project Manager, of such suspension within 7 days of having received
ADB’s suspension notice.

(b) if the Contractor has not received sums due it within the 28 days for
payment provided for in GCC 50.1 [Payments], the Contractor may
immediately issue a 14-day termination notice.

79. Eligibility 79.1 The Contractor shall have the nationality of an eligible country as
specified in Section 5 [Eligible Countries] of the bidding document.
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.
General Conditions of Contract 119

79.2 The materials, equipment, and services to be supplied under the Contract
shall have their origin in eligible source countries as specified in Section 5
[Eligible Countries] of the bidding document 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.

79.3 For purposes of GCC 79.2, “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.
120

Section 8 – Particular Conditions

of Contract
The Particular Conditions of Contract (PCC) complements the General Conditions of Contract (GCC), specifying
data and contractual requirements linked to the special circumstances of the country, the Employer, the Project
Manager, the sector, the overall project, and the Works. The PCC complements the GCC in the same way the Bid
Data Sheet complements the Instructions to Bidders.

The PCC has more detailed terms and conditions, which the Employer will apply in administering the specific
contract. These provisions do not constitute a complete standard set of provisions. Employers should prepare
country- or project-specific provisions for the PCC, and these should be developed into standard provisions.

Whoever drafts the PCC should be thoroughly familiar with the provisions of the GCC and with any specific
requirements of the Contract. Legal advice is recommended when amending provisions or drafting new ones.
Note that clause numbers in the PCC correspond to those in the GCC, but the PCC provisions take precedence
over those in the GCC.
Particular Conditions of Contract 121

Particular Conditions of Contract

Except where otherwise indicated, all PCC forms should be filled out by the Employer prior to issuance of the
Bidding Documents. Schedules and reports to be provided by the Employer should be annexed.

A. General
GCC 1.1(d) The financing institution is: Asian Development Bank

GCC 1.1(r) The Employer is . . . . . [insert name, address, and name of authorized representative] . . . . .

GCC 1.1(w) The Intended Completion Date for the whole of the Works shall be . . . . . [insert date] . . . . .

[If different dates are specified for completion of the Works by section (“sectional completion” or milestones),
these dates should be listed here]

GCC 1.1(cc) The Project Manager is . . . . . [insert name, address, and/or name of authorized representative] . . . . .

GCC 1.1(ff) The Site is located at . . . . . [insert address of Site] . . . . . and is defined in drawings No. . . . . . [insert
numbers] . . . . .

GCC 1.1(ii) The Start Date shall be . . . . . [insert date] . . . . .

GCC 1.1(mm) The Works consist of . . . . . [insert brief summary, including relationship to other contracts under the
Project] . . . . .

GCC 2.2 Sectional Completions are: . . . . . [insert nature and dates, if appropriate] . . . . .

GCC 2.3(j) The following documents also form part of the Contract: . . . . . [list documents] . . . . .

GCC 3.1 The language of the contract is . . . [insert name of the language. The language shall be that of the bid] . . .

The law that applies to the Contract is the law of . . . . . [insert name of country] . . . . .

GCC 11.1 The Project Manager . . . . . [insert “may” or “may not”] . . . . . delegate any of his duties and
responsibilities.

GCC 14.1 Schedule of other contractors: . . . . . [insert Schedule of Other Contractors, if appropriate] . . . . .

GCC 19.1 The minimum insurance amounts and deductibles shall be

(a) for loss or damage to the Works, Plant and Materials: . . . . . [insert amounts] . . . . .

(b) for loss or damage to Equipment: . . . . . [insert amounts] . . . . .

(c) f or loss or damage to property (except the Works, Plant, Materials, and Equipment)
in connection with Contract . . . . . [insert amounts] . . . . .

(d) for personal injury or death:

(i) of the Contractor’s employees: . . . . . [insert amount] . . . . .

(ii) of other people: . . . . . [insert amount] . . . . .

122 User’s guide to procurement of works—SMALL CONTRACTS

GCC 20.1 Site Investigation Reports are: . . . . . [list site investigation reports] . . . . .

GCC 23.1 The following shall be designed by the Contractor:

[list if appropriate]

GCC 26.1 The Site Possession Date(s) shall be: . . . . . [insert location(s) and date(s)] . . . . .

GCC 29.1 Appointing Authority for the Adjudicator: . . . . . [insert name of authority] . . . . .

[The appointing authority should be a person or an entity that is independent of the employer/project
executing agency/project implementing agency.]

GCC 30.3 The Adjudicator shall be paid by the hour at the rate of: . . . . . [insert rate] . . . . .

The reimbursable expenses are: . . . . . [insert reimbursable expenses] . . . . .

GCC 30.4 Institution whose arbitration procedures shall be used: . . . . . [select from below] . . . . .

(a) Contracts with foreign contractors:

International arbitration shall be conducted in accordance with the rules of . . . . . [insert

here the preferred international arbitration rules] . . . . . If no rules have been specified, then
Rules of the Singapore International Arbitration Centre (SIAC) shall apply.

Arbitration shall be administered by . . . . . [insert institution here] . . . . . If no institution has

been specified, then SIAC shall be the institution to administer the arbitration.

The place of arbitration shall be: the place of the institution administering the
arbitration.

(b) Contracts with domestic contractors:

Arbitration shall be conducted in accordance with the laws of the Employer’s country.

C. Time Control
GCC 35.1 The Contractor shall submit for approval a Program for the Works within . . . . . [insert number]
. . . . . days from the date of the Letter of Acceptance.

GCC 35.3 The period between Program updates is . . . . . [insert number] . . . . . days.

The amount to be withheld for late submission of an updated Program is . . . . [insert amount] . . . . .

D. Quality Control
GCC 43.1 The Defects Liability Period is: . . . . . [insert number] . . . . . days.

[The defects liability period is usually limited to 12 months, but could be less in very simple cases]
Particular Conditions of Contract 123

E. Cost Control
GCC 53.1 The currency of the Employer’s country is: . . . . [insert name of currency of the employer’s country] . . . .

GCC 54.1 The Contract . . . . . [insert “is” or “is not”] . . . . . subject to price adjustment in accordance with
GCC Clause 54, and the following information regarding coefficients . . . . . [specify “does” or
“does not”] . . . . . apply.

[Price adjustment is mandatory for contracts which provide for time of completion exceeding 18 months]

The coefficients and indexes for adjustment of prices in local and international currencies shall
be as specified in the Table(s) of Adjustment Data submitted together with the Letter of Bid.

GCC 55.1 The proportion of payments retained is: . . . . . [insert percentage] . . . . .

[The retention amount is usually close to 5% and in no case exceeds 10%.]

GCC 56.1 The liquidated damages for the whole of the Works are . . . . . [insert percentage of the final
Contract Price] . . . . . per day. The maximum amount of liquidated damages for the whole of the
Works is . . . . . [insert percentage] . . . . . of the final Contract Price.

[Usually liquidated damages are set between 0.05% and 0.10% per day, and the total amount is not to exceed
between 5% and 10% of the contract price. If sectional completion and damages per section have been agreed,
the latter should be specified here.]

GCC 57.1 The Bonus for the whole of the Works is . . . . . [insert percentage of final Contract Price] . . . . . per day.
The maximum amount of Bonus for the whole of the Works is . . . . . [insert percentage] . . . . . of
the final Contract Price.

[If early completion would provide benefits to the employer, this clause should remain; otherwise delete.
The bonus is usually numerically equal to the liquidated damages.]

GCC 58.1 The Advance Payments shall be: . . . . . [insert amount(s)] . . . . . and shall be paid to the
Contractor no later than . . . . . [insert date(s)] . . . . .

GCC 58.3 Repayment of the Advance Payments shall be: . . . . . [insert percentage] . . . . . from each payment
certificate. [An amount of 10%–15% of each payment certificate may be appropriate for admeasurement
contracts. Higher percentage shall be considered for lump sum contracts with activity schedules taking into
account the estimated number of payment certificates.]

GCC 59.1 The Performance Security amount is . . . . . [insert amount(s) denominated in the types and proportions
of the currencies in which the contract price is payable, or in a freely convertible currency acceptable to the
employer] . . . . .

[An amount of 5% to 10% of the contract price is commonly specified for performance bank guarantees.]

[When additional performance security is required due to a seriously unbalanced or front-loaded bid in
accordance with ITB 34.5, the employer should specify the percentage of the performance security and the
terms for its release.]
124 User’s guide to procurement of works—SMALL CONTRACTS

G. Finishing the Contract

GCC 72.1 The date by which operating and maintenance manuals are required is . . . . . [insert date] . . . . .

The date by which “as built” drawings are required is . . . . . [insert date] . . . . .

GCC 72.2 The amount to be withheld for failing to produce “as built” drawings and/or operating and
maintenance manuals by the date required in GCC 72.1 is . . . [insert amount in local currency] . . . .

GCC 73.2(h) The maximum number of days is: . . . . . [insert number; consistent with Clause 56.1 on liquidated
damages] . . . . .

GCC 75.1 The percentage to apply to the value of the work not completed, representing the Employer’s
additional cost for completing the Works, is . . . . . [insert percentage] . . . . .
125

Section 9 – Contract Forms

This section contains forms which, once completed, will form part of the Contract. The forms for Performance
Security and Advance Payment Security, when required, shall only be completed by the successful Bidder after
contract award.

Table of Forms
Notification of Award..................................................................................................................................................126

Contract Agreement....................................................................................................................................................127

Performance Security..................................................................................................................................................128

Advance Payment Security.........................................................................................................................................129

126 User’s guide to procurement of works—SMALL CONTRACTS

Notification of Award
---- on letterhead paper of the employer ----

Letter of Acceptance

. . . . . [date] . . . . .

To: . . . . . [Name and address of the contractor] . . . . .

Subject: . . . . . [Notification of Award Contract No.] . . . . .

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 Accepted Contract Amount of the equivalent of . . . . . [amount in words
and figures and 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
Contract, using for that purpose the Performance Security Form included in Section 9 (Contract Forms) of the
Bidding Document.

[Choose one of the following statements:]

We accept that . . . . . [insert the name of adjudicator proposed by the bidder] . . . . . be appointed as the Adjudicator.

[or]

We do not accept that . . . . . [insert the name of the adjudicator proposed by the bidder] . . . . . be appointed as the Adjudicator,
and by sending a copy of this Letter of Acceptance to . . . . . [insert name of the appointing authority] . . . . ., the Appointing
Authority, we are hereby requesting such Authority to appoint the Adjudicator in accordance with GCC 29.1.

Authorized Signature: ...............................................................................................

Name and Title of Signatory:..................................................................................

Name of Agency: ........................................................................................................

Attachment: Contract Agreement

Contract Forms 127

Contract Agreement
THIS AGREEMENT made the . . . . . [day of] . . . . ., . . . . ., between . . . . . [name of the employer] . . . . . . (hereinafter “the
Employer”), of the one part, and . . . . . [name of the contractor] . . . . . (hereinafter “the Contractor”), of the other part:

WHEREAS the Employer desires that the Works known as . . . . . [name of the contract] . . . . . should be executed by the
Contractor, and has accepted a Bid by the Contractor for the execution and completion of these Works and the
remedying of any defects therein,

The Employer and the Contractor agree as follows:

1. In this Agreement, words and expressions shall have the same meanings as are respectively assigned to them
in the Contract documents referred to.

2. The following documents shall be deemed to form and be read and construed as part of this Agreement.
This Agreement shall be interpreted in the following order of priority and shall prevail over all other Contract
documents.
(a) the Contract Agreement,
(b) the Letter of Acceptance,
(c) the Letter of Bid,
(d) the Particular Conditions of Contract,
(e) the List of Eligible Countries that was specified in Section 5 of the bidding document,
(f) the General Conditions of Contract,
(g) the Specifications,
(h) the Drawings,
(i) the Completed Activity Schedules or Bill of Quantities, and
(j) any other documents shall be added here.1

3. I n consideration of the payments to be made by the Employer to the Contractor as indicated in this Agreement,
the Contractor hereby covenants with the Employer to execute the Works and to remedy defects therein in
conformity in all respects with the provisions of the Contract.

4. T
he Employer hereby covenants to pay the Contractor in consideration of the execution and completion of
the Works and the remedying of defects therein, the Contract Price or such other sum as may become payable
under the provisions of the Contract at the times and in the manner prescribed by the Contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executed in accordance with the
laws of . . . . . [name of the borrowing country] . . . . . on the day, month, and year indicated above.

Signed by .............................................................................. Signed by����������������������������������������������������������������������������������������

for and on behalf of the Employer for and on behalf the Contractor

in the presence of in the presence of

Witness, Name, Signature, Address, Date Witness, Name, Signature, Address, Date

1
Tables of Adjustment Data may be added if the contract provides for price adjustment (see GCC 54.1).
128 User’s guide to procurement of works—SMALL CONTRACTS

Performance Security
[Bank’s name, and address of issuing branch or office]1

Beneficiary: ...................................................................... [Name and address of the employer] .....................................................................

Date:.........................................................................................................................................................................................................................
Performance Guarantee No.: ......................................................................................................................................................................

We have been informed that . . . . . [name of the contractor] . . . . . (hereinafter called “the Contractor”) has entered into
Contract No. . . . . . [reference number of the contract] . . . . . dated . . . . . with you, for the execution of . . . . . [name of contract
and brief description of works] . . . . . (hereinafter called “the Contract”).

Furthermore, we understand that, according to the conditions of the Contract, a performance guarantee is
required.

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]
. . . . .) such sum being payable in the types and proportions of currencies in which the Contract Price is payable,
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(s) under the Contract, without your needing to prove or to show grounds for your
demand or the sum specified therein.

This guarantee shall expire, no later than the . . . . . Day of . . . . . , . . . . .3, and any demand for payment under it 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), except that subparagraph (ii) of Sub-article 20(a) is hereby excluded.4

............................
Signature(s) and seal of bank (where appropriate)

Note to Bidder

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
All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.
2
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. If the bank 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.
3
Insert the date 28 days after the expected completion date. 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.”
4
Or the same or similar to this clause specified in the Uniform Rules for Demand Guarantees, ICC Publication No. 758 where
applicable.
Contract Forms 129

Advance Payment Security

[Bank’s name and address of issuing branch or office]1

Beneficiary: ...................................................................... [Name and address of the employer] .....................................................................

Date:.........................................................................................................................................................................................................................
Advance Payment Guarantee No.: ...........................................................................................................................................................

We have been informed that . . . . . [name of the contractor] . . . . . (hereinafter called “the Contractor”) has entered into
Contract No. . . . . . [reference number of the contract] . . . . . dated . . . . . with you, for the execution of . . . . . [name of contract
and brief description of works] . . . . . (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]2. . . . . . (. . . . . [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]3. . . . . . (. . . . . [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 used the advance payment
for purposes other than the costs of mobilization in respect of the Works.
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 . . . . . [contractor’s 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 eighty percent (80%) of the Contract Price has been certified for payment, or on the . . . . .
day of . . . . . . . , . . . . .4, 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
All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document.
2
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.
3
Footnote 2.
4
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.”
User’s Guide to Procurement of Works—Small Contracts
Standard Bidding Document—December 2016

This User’s Guide is intended to provide guidance to borrowers on how to prepare a bidding document for unit
price or lump-sum types of small works contracts that incorporate postqualification, and how to evaluate bids
and award contracts based on the Asian Development Bank’s Standard Bidding Document for the Procurement
of Works, Small Contracts.

About the Asian Development Bank

User’s Guide to Procurement of Works—Small Contracts

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries
reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains
home to a large share of the world’s poor. ADB is committed to reducing poverty through inclusive economic
growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping
its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and
technical assistance.

USER’S GUIDE
TO PROCUREMENT
OF WORKS
SMALL CONTRACTS
STANDARD Bidding DOCUMENT
December 2016

ISBN 978-92-9257-693-6

Asian Development Bank

6 ADB Avenue, Mandaluyong City
1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK
www.adb.org