UNDERSTANDING THE

IMPORTANCE TENDER
DOCUMENTS

PRESENTION OUTLINE

Introduction: Problems to be circumvented

Keeping in mind what is to make a good
contact
The List of Tender Documents
Arrangement of Sections
Some of the Important Clauses
Technical Specifications
Schedule of Requirements
Price Schedule (s)
Standard Forms

DEFINITIONS

Standard means a level of quality or excellence

that is accepted as the norm or by which actual
attainments are judged
Tender means an offer in writing by a tenderer to
supply at a price goods, services or works, pursuant to
an invitation to tender by a procuring entity
Tender Documents means the documents provided
by the procuring entity to tenderers as a basis for
preparation of their tenders
Standard Tender Documents means the documents
prepared in a level of quality determined by PPOA,
and distributed to PEs for the purpose of
customization and providing them to tenderers as a
basis for preparation of their tenders

STANDARD TENDER DOCUMENTS

Why Standard Documents?

Applicable Law
To avoid misinterpretation of obligations
Suppliers Bidding Strategy
Supplier proposing a low price only to win the
contract and seek variances once the contact
is signed
Change of ownership of management
The company sold to a third party
The level of trust and or evaluated capability
may change
Changed circumstances
Example: Drastic economic changes beyond
the control of the parties.

Why Standard Documents?

Currency fluctuation
May affect cash flow of the parties
May result to non-performance
Delays
The supplier not able to avail goods
In time at required place.
Dominance
Purchaser or supplier dictating terms to either party.
Incomplete or incorrect specifications
Language
Parties all thinking erroneously that they understand what
was intended.

What to keep in mind

Know what you what to obtain and what to avoid
Know what your option are when things go wrong.
Know your suppliers
Seek references if you do know them
Create a win-win situation by envisaging a longer
term relationship
Do not allow someone to promise what you
suspect cannot be accomplished.
E.g.: Allowing unverified qualification or capability
Avoiding ambiguous terms
Ambiguity leads to misinterpretations and
disagreements

What to Keep in mind

Keeping technology in mind
Leave your options open as much and as long as
possible
Keeps industrial and intellectual property in mind
E.g. ensuring that knowledge developed in
programs remain the property of the company.
Or you are accorded protection by the supplier
acting as an agent against prosecution by patent
right holder
Have a clear dispute resolution clause to let all parties
know the procedures for getting relief or remedy if
something goes wrong. Part of risk management

What to Keep in mind

Having clear termination clause

Thinking of consequences of that
termination
oE.g. return of proprietary
documentation
Avoid clauses that foresee termination
by agreement.

Standard Tender Documents

1. Standard tender document for design
construction, supply, installation, testing
commissioning and handing over of
plant/project (turnkey project.)
2. Standard tender document for supply
installation and commissioning of plant and
equipment.
3. Standard tender document for prequalification
of procurement candidates/suppliers.
4. Standard tender document for procurement of
works (Roads, Bridges, Water and other Civil
Engineering works).
5. Standard tender document for procurement of
works (small works)

THE

PUBLIC

PROCUREMENT

PROCESS

6. Standard tender document for procurement

of Works (Buildings and associated civil
engineering Works)
7. Standard tender document for procurement
of works. (Electrical and mechanical works)
8. Standard tender document for procurement
of goods. Standard tender document for
procurement of insurance services
9. Standard tender document for procurement of
services

THE PUBLIC PROCUREMENT PROCESS

9.

Standard tender document for letting,

leasing, licensing, tenancy, franchise and
management contracting.
10. Standard request for proposals (RFP)
(Selection of consultants)
11. Standard tender document for Request
for Proposals (RFP) (selection of
individual professional consultants
12. Standard tender document for sale of
boarded stores and equipment.

The standard tender documents are

usually customized by purchasers.

ARRANGEMENT OF SECTIONS

General arrangement of the standard tender

documents:
The cover (To be customized by Procuring
entities(
Introduction (Information to PEs about the
document)
Section I: Invitation to tender
Section II: Instructions to tenderers
Section III General conditions of contract
Section IV Special conditions of contract

ARRANGEMENT OF SECTIONS

Section V Technical Specifications/Scope

of Works /TOR
Section VI Schedule of Requirements
-Section VII- Price Schedule
Section VIII Standard Forms

Section I: Invitation to Tender

Instruction to bidders on procedures

for submission of bids
Desirable goods or works to be
procured
Criteria for evaluation of bids
Definitions of conditions of the
proposed contract
Clear information to enable tender
decide to tender or not.
Any other tender requirements.

Section II: Instructions to Bidders

Important clauses:
Eligible Tenderer
Eligible goods
Cost of tendering
Contents of tender document
Clarification of tender documents
Amendment of tender document

Section II: Instructions to Bidders contd

Language of tender
Documents compromising of tender
Instruction on how to complete
Tender forms
Tender prices( with or excluding TAX,
Incoterms)
Tender currencies (Multi-currency or
single Currency

Section II: Instructions to Bidders Contd

Tenderers qualifications
Tender security/tender securing
declaration
Validity of tender
Format of signing of contract
Sealing and marking of tenders
Deadline for submission of tender
Notification and withdrawal of tender
Opening of tenders
Clarification of tenders

Section II: Instructions to Bidders

Evaluation of Tenders and Award of

contract
Preliminary examination
Technical Evaluation
Financial Evaluation
Conversions to single currency ( for
multiple-currency tenders)
Award of contract and Communication
to bidders
Signing of contract

Section II: Instructions to Bidders

Procuring entitys right to vary

quantity
Procuring entity's right to accept or
reject any or all tenders
Performance Security.
Caution on corrupt or fraudulent
practices (Declaration form to be
completed)

Section III :General Conditions of Contract

Not be amended-Clarification under Special

Conditions of Contract section
Definitions (terms and Acronyms)
Applicable law, Country of origin and
Standards
Patent right (Contractor to indemnify PE
against third party claims of infringement)
Inspection and tests and Insurance( can be
clarified through INCOTERMS)

Section III :General Conditions of Contract

Payments (terms and duration e.t.c) and

Prices (include issues regarding conditions
for variations, adjustments)
Assignments to other parties ( no assigning
of obligation without PEs consent)
Sub-contracts( conditions for engagements)
and Termination of contract

Section III :General Conditions Of Contract

contd

Liquidated damages
Resolution of disputes
Governing Language
Force majoure

Section IV: Special Conditions of Contract

To be prepared by the procuring entity

Should not contradict the general
conditions of contracts
They complement the general
conditions of contracts
The General and Special conditions
of contract will become the
conditions of the contract when it
is finally signed

Section V-Technical Specifications

To include but not limited to;

Scope of works .Bill of Materials.
Quantities( for works or services as
appropriate)
Terms of Reference (for Request for
Proposals)
Drawings( for works)
Testing /Inspection (works and goods)
Standards (National/International)
Accepted Quality Levels
Note: Specifications to be performance based
preferably (No restrictive titles)

Section VI Schedule of Requirements

Brief Description of Requirements

Quantity( may be as and when required or
fixed)
Delivery Schedule (shipment) e.g. selected
Incoterms.
Note: The starting delivery date will be
specified
That date should either be the date of the
contract award or date of contract signature
Or the date of opening of letter of credit
Or the date of confirmation of Letter of
Credit

Section VII-Price Schedule (s)

Contains:
Item
Description
Country of Origin
Quantity
Unit Price
Total Amount
INCOTERM e.g. CIF,CFR,EXW, e.t.c

Section VIII Standard Forms

Form of tender
Confidential Business Questionnaire
Form
Tender Security Form
Contract Form
Performance Security form
Bank Guarantee for Advance payment
Manufacturers Authorization form
Declaration form

BENEFITS OF STDs

Promotes
harmonization
and
standardization
of
procurement
practices

Facilitates a uniform understanding

among practitioners and end-users of
the their rights and obligations

Promotes increased capacity by

promulgating best practices and
facilitating
predictability
in
procurement proceedings

Enhances and promotes transparency

BENEFITS OF STDs

Clarity of tender requirements-provides

information that enables procuring entities
to achieve value for money in a procurement
process
Helps
to
avoid/minimizes
overruns/variation orders
Avoids/minimizes
disputes
in
Administration -delayed projects

cost
Contract

Flexibility -Allows PE to customize the bid

documents and state all conditions of the
tender
Helps to minimize risk in public procurement
Ensures award to lowest evaluated bidder