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Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Board Notices

Standard for Uniformity in Engineering and Construction Works Contracts : August 2019

4. Requirements

4.4 Procurement documents

 

4.4.1 General

 

4.4.1.1 Construction procurement documents for engineering and construction works shall be formatted and compiled in accordance with the approach adopted under the headings contained in:
(a) Table 3: Calling for expressions of interest; or
(b) Table 4: Tenders are invited using a three-volume; or
(c) Table 5 Tenders are invited using a single volume;
(d) Table 6: Standard headings and sequencing of documents in the contract.

 

Table 3 : Documents that relate to a call for expressions of interest

Contents

Function and broad outline of contents

Number

Heading

Part E1 : Submission procedures

E1.1

Notice and invitation to submit an expression of interest

Alerts respondents to submit their credentials in order to be admitted to an electronic database or to be invited to submit tenders should they satisfy the stated criteria.

E1.2

Submission data

Establishes the rules from the time a call for an expression of interest is advertised to the time a submission is evaluated.

Part E2 : Returnable documents

E2.1

List of returnable documents

Ensures that everything the employer requires a respondent to include in his submission is included in, or returned with, such a submission.

E2.2

Submission schedules

Contains documents that the respondent is required to complete for the purpose of evaluating submissions.

Part E3 : Indicative scope of work (where appropriate)

E3

Indicative scope of work

Indicates to respondents what the contract is likely to entail so that they can make an informed decision as to whether or not they wish to respond and, if so, structure their submission around the likely demands of the project.

 

Table 4: Standard headings and sequencing of documents when soliciting tenders where a three-volume approach is adopted

Volume

Contents

Broad outline of contents

Number

Heading

Volume 1

TENDERING PROCEDURES

T1.1

Tender Notice and Invitation to

Tender

Ensures that everything the employer requires a tenderer to submit with the tender is included in or returned with the tender submission.

T1.2

Tender Data

Establishes the rules from the time a tender is invited to the time a tender is awarded.

Volume 2

RETURNABLE DOCUMENTS

T2.1

List of Returnable Documents

Ensures that everything the employer requires a tenderer to submit with the tender is included in or returned with the tender submission.

C1.1

Form of Offer and Acceptance

Formalizes the legal process of offer and acceptance.

C1.2

Contract Data (Part 2: Data provided by the contractor)

Identifies the applicable conditions of contract and associated contract-specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract.

C2.2

Activity Schedule or Bills of Quantities

Records the contractor's prices for providing engineering and construction works which are described in the scope of work section of the contract.

T2.2

Returnable Schedules

Contains documents that the tenderer is required to complete for the purpose of evaluating tenders and other schedules which, upon acceptance, become part of the subsequent contract.

Volume 3

Contract

Part C1 : Agreement and Contract Data

C1.2

Contract Data (Part 1: Data

provided by the employer)

Identifies the applicable conditions of contract and associated contract-specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract.

Part C2 : Pricing data

C2.1

Pricing Assumptions

Provides the criteria and assumptions which it is assumed (in the contract) that the tenderer has taken into account when developing the prices, or target in the case of target and cost-reimbursable contracts.

Part C3 : Scope of Work

C3

Scope of Work

Specifies and describes the engineering and construction works which shall be provided and any other requirements and constraints relating to the manner in which the contract work shall be performed.

Part C4 : Site information (engineering and construction works contracts only)

C4

Site Information

Describes the site at the time of tender to enable the tenderer to price his tender and to decide upon the method of working and programming, and risks.

 

4.4.1.2 The contract arising from the solicitation of tender offers using a three-volume approach or the Negotiated Procedure shall be formatted and compiled under the headings contained in Table 6.

 

4.4.1.3 The Tender Notice and Invitation to Tender shall, as a minimum, contain the wording provided in Annex A.

 

Table 5: Standard headings and sequencing of documents when soliciting tenders where a single volume approach is adopted

Contents

Function and broad outline of contents

Number

Heading

TENDER

Part T1 : Tendering procedures

T1.1

Tender Notice and Invitation to Tender

Alerts tenderers to the nature of the engineering and construction works required by the employer and must contain sufficient information to enable them to respond appropriately.

T1.2

Tender Data

Establishes the rules from the time a tender is invited to the time a tender is awarded.

Part T2 : Returnable documents

T2.1

List of Returnable Documents

Ensures that everything the employer requires a tenderer to submit with the tender is included in or returned with the tender submission.

T2.2

Returnable Schedules

Contains documents that the tenderer is required to complete for the purposes of evaluating tenders and other schedules which, upon acceptance, become part of the subsequent contract.

CONTRACT

Part C1 : Agreement and Contract Data

C1.1

Form of Offer and Acceptance

Formalizes the legal process of offer and acceptance.

C1.2

Contract Data

Identifies the applicable conditions of contract and associated contract-specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract.

Part C2 : Pricing data

C2.1

Pricing Assumptions

Provides the criteria and assumptions which it is assumed (in the contract) that the tenderer has taken into account when developing the prices, or target in the case of target and cost-reimbursable contracts.

C2.2

Pricing schedules / Activity Schedule or

Bills of Quantities

Records the contractor's prices for providing engineering and construction works which are described in the scope of work section of the contract.

Part C3 : Scope of Work

C3

Scope of Work

Specifies and describes the engineering and construction works which shall be provided and any other requirements and constraints relating to the manner where the works shall be performed.

Part C4 : Site information (engineering and construction works contracts only)

C4

Site Information

Describes the site at the time of tender to enable the tenderer to price his tender and to decide upon his method of working and programming, and risks.

 

Table 6: Standard headings and sequencing of documents in the contract

Contents

Broad outline of contents

Number

Heading

Part C1 : Agreements and contract data

C1.1

Form of Offer and

Acceptance

Formalizes the legal process of offer and acceptance.

C1.2

Contract Data

Identifies the applicable conditions of contract and associated contract-specific data that collectively describe the risks, liabilities and obligations of the contracting parties and the procedures for the administration of the contract.

Part C2 : Pricing data

C2.1

Pricing Assumptions

Provides the criteria and assumptions which it is assumed (in the contract) that the tenderer has taken into account when developing the prices, or target in the case of target and cost-reimbursable contracts.

C2.2

Activity Schedule or Bills of

Quantities

Records the contractor's prices for providing engineering and construction works which are described in the scope of work section of the contract.

Part C3 : Scope of Work

C3

Scope of Work

Specifies and describes the engineering and construction works which shall be provided and any other requirements and constraints relating to the manner in which the contract work shall be performed.

Part C4 : Site information (engineering and construction works contracts only)

C4

Site Information

Describes the site at the time of tender to enable the tenderer to price the tender and to decide upon the method of working and programming, and risks.

 

4.4.1.4 The Form of Offer and Acceptance with a schedule of deviations provided in Annex B shall be used with minimal contract specific amendments to form the basis of agreements arising from the solicitation of tender offers.

 

4.4.1.5 The Notice and Invitation to submit an Expression of Interest shall, as a minimum, contain the wording provided in Annex D.

 

4.4.1.6 The Record of Addenda to Tender Documents and the Compulsory Enterprise Questionnaire contained in Annexes F and G, respectively, shall form part of the Returnable Documents in all procurement documents issued by employer.

 

4.4.2 Tender Data

 

4.4.2.1 The Tender Data shall reference the Standard Conditions of Tender contained in Annex C.

 

4.4.2.2 The tender offer validity period provided for in the tender data shall not exceed twelve (12) weeks. Any extension beyond twelve (12) weeks must be approved by the Accounting Officer.

 

4.4.2.3 The Tender Data associated with a Standard Tender Evaluation Method shall reference the method to be used by the employer.

 

4.4.3 Contract data

 

4.4.3.1 The contract data in respect of prime or main contracts must reference one of the following standard industry forms of contract unless the publishers of such forms of contract indicate that such a form of contract is not suited for the intended application:
(a) Engineering and Construction Works Contract—
(i) General Conditions of Contract for Construction Works (GCC);
(ii) Conditions of Contract for Construction, Conditions of Contract for Plant and Design-Build, Conditions of Contract for FIDIC EPC/Turnkey Projects, Conditions of Contract for Design, Build and Operate Projects or Short Form of Contract;
(iii) JBCC series 2000 Principal Building Agreement or Minor Works Agreement; or
(iv) NEC3 Engineering and Construction Short Contract or NEC3 Engineering and Construction Contract.

 

4.4.3.2 The standard industry forms of contract shall be used with minimal project specific variations and additions which do not change their intended usage.

 

4.4.3.3 Guarantees required in engineering and construction contracts shall not substantially differ from the samples provided by the drafters of the forms of contract listed in paragraph (4.4.3.1(a)) or the form as provided in the contract. Such guarantees shall in the case of a fixed guarantee not exceed 10% of the contract price or, in the case of a variable guarantee not exceed 12, 5%, and shall be stated in the contract data.
4.4.3.3.1 Forms of Guarantees shall, where the parties otherwise agree; include one or more of the following:
(a) Guarantee issued by an insurance company duly registered in terms of the Insurance Act (Long Term Insurance Act No 52 of 1998 or Short Term Insurance Act No 53 of 1998) or a bank duly registered in terms of the Banks Act No 94 of 1990; or
(b) A cash deposit paid in the name of employer; or
(c) A payment reduction against payment certificates; or
(d) Combination of (a) to (c) above.

 

4.4.3.4 The deduction of retention monies, as stated in the contract data, shall not exceed 10% of any amount due to a contractor. Where guarantees are provided in terms of 4.4.3.3, the total amount of retention monies held shall not exceed 5% of the contract price.

 

4.4.4 Submission Data

 

4.4.4.1 The Submission Data shall reference the Standard Conditions for the Calling for Expressions of Interest contained in Annex D.

 

4.4.5 Subcontracting as a condition of tender

 

If feasible to subcontract for an engineering and construction works contract, an employer must apply subcontracting to advance designated groups in accordance with the provisions of sections 9 and 12 of the Preferential Procurement Regulations, 2017 (as amended).

 

4.4.6 Scope of work

 

4.4.6.1 The scope of work shall, wherever possible be:
(a) described in terms of performance rather than the design or descriptive characteristics, and
(b) based on national or international standards, where such exist.

 

4.4.6.2 Requirements in the form of specifications, plans, drawings, designs, testing and test methods, packaging, marking or labelling or conformity certification shall not create trade barriers. Reference to any particular trademark, name, patent, design, type, specific origin or producer shall not be made unless there is no other sufficiently precise or intelligible way of describing the characteristics of the work. Such reference shall be accompanied by the words "or equivalent".