Date:________
Tender No.____
1. The People's Republic of China has-applied for a loan and creditfrom the World Bank towards the cost of ________________ Project. It isintended that part of the proceeds of this loan and credit will be appliedto eligiblepayment under various contracts for ____________ , __________,__________. Tendering is open to all tenderers from eligible sourcecountries as definedunder the “Guidelines for procurement” of the WorldBank.
1.2 ___________ Company now invites sealed tenders from pre-qualifiedtenderers for provision of the necessary labour, materials, equipment andservices for the construction and completion of the project.
1.3 Pre-qualified tenderers may obtain further information from, andinspect the tender documents at the office of: ________.
1.4 A complete set of tender documents may be obtained by anypre-qualified tenderer for the cost of RMB _________ or US $ ___________on the submission of a written application to the above.
1.5 All tenders must be accompanied by a Tender Security in anacceptable form and must be delivered to ________ Company at theabove-mentioned address (refer to Item 3) on or before ___________.
1.6 Tenders will be opened in the presence of those tenderers'representatives who choose to attend at ____________ (time)。
1.7 If a prequalified foreign tenderer wishes to form Joint venturewith a domestic contractor, such a request will be considered if receivedwithin ______ days before the closing date for submission of tenders. Theselected local contractor shall be subject to approval by the Employer.
1.8 The Pre-Tender Meeting will be held on __________ at the followingaddress: _________.
Instructions to Tenderers
General1. Description of Works (sketch)
All tenderers shall have equal access for supply of domestic labourandmaterial.
The Contractor shall make his own arrangements for the procurement oflocal labour, materials, transportation and other services.
The Employer will assist Contractor in locating potential number ofsuppliers for local labour, materials. The Employer will also assist thecontractor in making his own arrangement for supply of fuel andexplosives.
2. Source of Funds
2.1 The People's Republic of China has applied for a loan and creditfrom the World Bank (hereinafter referred to as the IFI) towards the costof ____________ Project, and intends to apply a portion of the proceeds ofthe loan and credit to eligible payments under the Contract for whichthese documentsare issued. Payment by the IFI will be made only at therequest of the Chinese Government and upon approval by the IFI and will besubject in all respectsto the terms and conditions of the Loan Agreement.No party other than the People's Republic of China shall derive any rightsfrom the Loan Agreement or haveany claim to the loan proceeds.
2.2 Payment from the proceeds of the World Bank Loan will be limitedto goods produced in, and services supplied from, Switzerland and themember countries of the World Bank which have commercial relations withChina.
2.3 All costs not met by the IFI Loan will be paid by the Employerfrom funds allocated by the Government of China.
3. Eligibility and Qualification Requirements
3.1 This tender is open to all pre-qualified tenderers from eligiblesource countries as defined under the “Guidelines for Procurement” of theworld Bank.
3.2 All goods and services to be supplied under this Contract shallhave their origin in eligible source countries,and all expenditures madeunder the Contract will be limited to such goods and services.
3.3 The origin of goods and services is distinct from the nationalityof the tenderer.
3.4 To be eligible for award of contract, tenderers shall haveprovided evidence satisfactory to the Employer of their eligibility underclause 3.1 above, and of their capability and adequacy of resources toeffectivelycarry out the Contract. To this end, the Employer and____________ company may, at any time prior to award of contract, requesttenderers to amplifyor update previously submitted prequalification data.
All Tenders submitted shall include the following information:
(a) copies of original documents defining the constitution or legalstatus, place of registration and principal place of business of thecompany, firm or partnership or, if a joint venture, of each party theretoconstituting the tenderer;
(b) the qualifications and experience of key personnel proposed foradministration and execution of the Contract, both on and off site, in theformat prescribed in Schedule V;
(c) major items of constructional plant and equipment proposed for usein carrying out the Contract in the format prescribed in Schedule IV;
(d) a list of proposed sub-contractors in the format prescribed inSchedule VI;
(e) information regarding any current litigation in which the tendereris involved;
(f) the details of the construction methods proposed.
3.5 For the purposes of sub-clause 3.4, tenderers who have beenpre-qualified may update and augment the information supplied with theirapplication for pre-qualification, and, in particular, shall giveparticularsof work in hand at the date of tendering.
3.6 Tenders submitted by a joint venture of two or more firms aspartners shall comply with the following requirements:
(a) the tender, and in case of a successful tender the Form ofAgreement, shall be signed so as to be legally binding on all partners;
(b) one of the Joint Venture members shall be nominated as sponsor;andthis authorisation shall be evidenced by submitting a power ofattorneysigned by legally authorised signatories of all the members ofthe joint venture;
(c) the joint venture sponsor shall be authorised to incur liabilitiesandreceive instructions for and on behalf of any and all members of thejoint venture and the entire execution of the Contract including paymentshall be done exclusively with the joint venture sponsor;
(d) all members of the joint venture shall be liable jointly andseverally for the execution of the Contract in accordance with theContract terms, and a relevant statement to this effect shall be includedin the authorisation mentioned under (b) above as well as in the Form ofTender and the Form of Agreement (in case of a successful tender); and
(e) a copy of the agreement entered into by the joint venture partnersshall be submitted with the tender.
3.7 Domestic tenderers or combinations or joint ventures of domesticandforeign tenderers applying for eligibility for the application of a_____% margin of preference in the comparison of their tender with othertenders shall supply all information required to satisfy the criteria foreligibility as described in Clause 29 of these Instructions.
4. Cost of Tendering
The tenderer shall bear all costs associated with the preparation andsubmission of his tender and neither the Employer nor his agent___________ Company will in any way be responsible or liable for thosecosts, regardless of the outcome of the tendering process.
5.Site Visit
5.1 The tenderer is advised to visit and examine the Site of the Worksandthe surroundings and to obtain for himself on his own responsibility,all information that may be necessary for preparing the tender andentering into a contract. The costs of visiting the site shall be at thetenderer's own expense.
5.2 Arrangements for a visit to site, including transportation andaccommodation. will be made by the Employer or his agent _________ Companyand will be advised to tenderers at the pre- tender meeting, details ofwhich are given in Clause 16 of these Instructions to Tenderers.,
5.3 The tenderer and any of his representatives will be grantedpermission by the Employer or his agent ___________ company to enter uponits premises and lands for the purpose of such inspection by priorarrangement, but only upon the express condition that the tenderer and hisrepresentatives, will release and indemnify the Employer or his agent___________ Companyand its personnel from and against all liability inrespect thereof and willbe responsible for personal injury (whether fatalor otherwise), loss of or damage to property and any other loss, damage,costs and expenses however caused, which, but for the exercise of suchpermission, would not have arisen.
Tender Documents
6. Content of Tender Documents
6.1 The set of documents issued to pre-qualified tenderers for thepurpose of tendering will cost RMB_______ or US $ ______ and will includethe stated number of copies of the following:
Number of copies Description 1
Volume 1
Instructions to Tenderers
Conditions of Contract:
Part I——General
Part II——Conditions of Particular
Application 1 Volume 2 Specification
(incl. list of Drawings) 3 Volume 3 Form of Tender and Appendix there to Form of Tender Security Bill of Quantities
Schedules of Supplementary Information 1 Volume 4 Drawings
6.2 Tender documents shall include any addenda issued prior to theclosing date of tenders in accordance with Clause 8 and any minutes of pretender meetings issued in accordance with Clause 16 of theseInstructions to Tenderers.
6.3 Further copies of the documents may be purchased by pre-qualifiedtenderers for a non-refundable fee as follows: (sketch)
6.4 Sub-contractors, manufacturers, suppliers and others who requirecopies of the documents shall not request them directly from _____________but shall obtain them only from pre-qualified tenderers.
6.5 On return of the documents in an undamaged and useable condition,either as part of a tender or otherwise, within the specified time limits,the tenderer's pre-qualification fee will be refunded, as follows:
(a) Tender submitted: _________________% refund of fee
(b) Tender not submitted but ________________% refund of fee
documents returned prior to closing date of tender
6.6 The tenderer is expected to examine carefully all instructions,conditions, forms, terms, specifications and drawings in the tender documents. Failure to comply with the requirements of the Instructions toTenderers wibe at the tenderer's own risk. Tenders which are not substantially responsive to the requirements of the tender documents maybe rejected.
6.7 The four volumes of the tender documents have been collated andbound by mechanical means and tenderers should check to ensure that they contain pages (which are numbered consecutively) and that all supplements referred to are also included.
7. Clarification of Tender Documents
7.1 A Prospective tenderer requiring any clarification of the tenderdocuments may notify ___________ in writing or by telex at the followingaddress: __________.
The Employer or his agent _____________ will respond in writing to anyrequest for clarification which is received more than _____ days prior tothe deadline for submission of tenders. Written copies of the response(including an explanation of the query, but without identifying the sourceof the inquiry) will be sent to all prequalified tenderers who have beenissued with tender documents.
8. Amendment of Tender Documents
8.1 Prior to the deadline for submission of tenders, the Employer may,forany reason, whether at its own initiative or in response to aclarification requested by a prospective tenderer, modify the tenderdocuments bythe issue of an Addendum.
8.2 The Addendum will be sent in writing or by telex or telegram toallpre-qualified tenderers who have picked up the tender documents andwill bebinding upon them. Prospective tenderers shall promptlyacknowledgereceipt thereof by telex or telegram to ____________.
8.3 In order to afford prospective tenderers reasonable time in whichto take an Addendum into account in preparing their tenders, the Employeror his agent _________ may, at their discretion, extend the deadline forthe submission of tenders in accordance with Clause 19 hereof.
Preparation of Tenders
9. Language of Tender
9.1 The tender and all correspondence relating to the tender exchangedby the tenderer and the Employer or his agent __________ shall be inEnglish. Supporting documents and printed literature furnished by thetenderer with the tender may be in another language provided they areaccompanied by an appropriate English translation of pertinent passages.For the purpose of interpretation of the tender, the English version shallprevail.
10. Documents Comprising the Tender
10.1 The tender to be Prepared by the tenderer shall contain thefollowing:
the Form of Tender and Appendix thereto;
the Tender Security;
the priced Bill of Quantities;
the Schedules of Supplementary Information;
the information on eligibility and qualifications;
alternative offers, if any; and
any other information required to be submitted in accordance withthese Instructions.
The Forms, Bill of Quantities and Schedules provided in Volume 3 ofthese documents shall be used without exception (subject to extensions ofthe Schedules in the same format, and to the provisions of Clause 14.2hereof regarding the alternative forms of tender security)。
10.2 All documents issued for the purpose of tendering as described inClause 6.1 and addenda issued in accordance with Clause 8 shall be deemedincorporated in the tender. Tender documents not required to be signed andsubmitted in accordance with Clauses 17 and 18 shall be returned to theoffice of issuebefore the expiry of the tender validity period, but mustnot be enclosed withthe Tender.
10.3 Tenderers shall submit with their tender a preliminary Programmein the format required by Clause 14 of the Conditions of Contract.
10.4 The successful tenderer will be required to revise or augment hisProgramme as set out in the Contract.
11. Tender Prices
11.1 Unless explicitly stated otherwise in the tender documents, theContract shall be for the whole of the Works ______ as described in Clause1 hereof, based on the schedules of unit rates and amounts submitted bythe tenderer.
11.2 The tenderer shall fill in rates and amounts for all items ofwork described in the Bill of Quantities, whether quantities are stated ornot. Items against which no rate or amount is entered by the tenderer willnot be paidfor by the Employer when executed and shall be deemed coveredby the other rates and amounts entered in the Bill of Quantities.
11.3 All duties, taxes and other levies payable by the Contractorunder the Contract, or for any other cause, as at the date ________ daysprior to the date for submission of tenders shall be included in the ratesand amountsand total tender sum submitted by the tenderer, and theevaluation and comparison of tenders by the Employer shall be madeaccordingly.
11.4 The rates and amounts entered by the tenderer shall be subject toadjustment during the performance of the Contract in accordance with theprovisions of the Conditions of Contract. The tenderer shall completeSchedule III-Price Adjustment Provisions and shall submit with his tendersuch other supporting information as is required under Clause 70 of theConditions of Contract.
12. Currencies of Tender and Payment
12.1 The unit rates and prices shall be quoted by the tender entirelyin RMB. A tenderer expecting to incur expenditures in other currencies forinputs to the Works supplied from outside China (referred to as “theforeign currency requirements”) shall indicate in Schedule I of “ForeignCurrency Requirements” the percentage of the Tender Price (excludingProvisional Sums) needed by him for the payment of such foreign currencyrequirements either (i)entirely in the currency of the tenderer's homecountry or, at the tenderer's option, (ii) entirely in US dollars, alwaysprovided that a tenderer expecting to incur expenditures in a currency orcurrencies other than those stated in (i) and (ii) above for a portion ofthe foreign currency requirements, and wishing to be paid accordingly,shall so indicate the percentage portion in his tender. The percentageportion indicated shall remain fixed for the duration of the Contract. Theamounts in various currencies calculated on the basisof the percentagesindicated in the Tender and by use of the exchange rates indicated insubclause 12.2 hereinafter, shall be used for the purposeofconversionand comparison of tenders pursuant to Clause 70.
12.2 The rates of exchange to be used by the tenderer for currencyconversion shall be the governing selling rates published by the Bank ofChina on the date ______ day prior to the latest date for the submissionof tenders.If exchange rages are not so published for certain currencies,the tenderer shall state the rates used and the source. For the purpose ofpayments, the exchange rates used in tender preparation shall apply forthe duration of the Contract.
12.3 The total amount of foreign and local currencies expected to berequired by tenderers shall be substantiated in Schedules I and I(A)Foreign Currency and Local Currency Requirements, and the annexthereto, Tenderers shall describe the manner in which such foreign and local currencies are expected to be used, relating specifically, but notlimited to:
Foreign Currency
(a) Expatriate staff directly employed on the Works:
(b) social charges, insurance premiums and medical care related tosuch staff, and travel expenses between China and the country of origin;
(c) a list of the imported materials, both temporary and permanent,required for the Works;
(d) depreciation and usage of plant and equipment, including spareparts, required for the Works;
(e) insurance and freight charges for imported materials, plant andequipment, including spare parts; and
(f) overhead expenses, fees and financial charges incurred outsideChina.
Local Currency
(g) local labour;
(h) local materials;
(i) other services, and;
(j) overhead expenses, fees and financial charges within China.
12.4 Tenderers may be required by the Employer to clarify theirforeign currency requirements, and to provide satisfactory proof that theamountsincluded in the unit rates and in Schedule I are reasonable andresponsive to sub-clause 12.1 hereof.
12.5 The tender shall complete Schedule II - Estimated ContractPayments and shall substantiate the tabulation of this Schedule byattaching a table indicating anticipated major quantities of workperformed over the duration of the Works. 13.Tender Validity
13.1 The tender shall remain valid and open for acceptance for aperiod of six calendar months from the specified date of tender closing.
13.2 In exceptional circumstances, prior to expiry of the originaltender validity period, the Employer or his agent ____________ may requestthe tenderers for a specified extension to the period of validity. Therequest andthe responses thereto shall be made in writing or by telex ortelegram. A tenderer may refuse the request without forfeiting his tendersecurity. A tendereragreeing to the extension will not be required norpermitted to alter his tender, but will be required to extend the validityof his tender security correspondingly. The provisions of Clause 14 hereofregarding discharge and forfeiture of tender security shall continue toapply during the extended period.
14.Tender Security
14.1 The tenderer shall furnish, as part of his tender, a tendersecurity in RMB Yuan in an amount of not less than _____ % of the TenderSum.
14.2 The tender security shall, at the tenderer's option, be in theform of a certified cheque, a bank draft, an irrevocable letter of creditor a guarantee from either:
(a) Bank of China;
(b) any of its correspondent bank abroad through Bank of China;
(c) any other Chinese or foreign bank operating in China;
(d) any other foreign bank determined by the Tenderer in advance ofsubmission of bids to be acceptable to ___________.or a bond issued by an insurance company or bonding company likewiselocated. The format of the bank guarantee or bond shall be in accordancewith one of the sample forms included in these documents; other formatsmay be permitted subject to the prior approval of the Employer or hisagent __________. Letters of credit, bank guarantees and tender bondsshall be valid for one calendar month beyond the validity of the tender.
14.3 In the event of a Tenderer agreeing to a specified extension oftender validity in accordance with Clause 13 of the Instructions toTenderers, the Tenderer shall Provide an extension in the validity of thetender security of one calendar month beyond the validity of the extendedtender.
14.4 Any tender not accompanied by an acceptable tender security willbe rejected by _________ as non-responsive.
14.5 The tender securities of unsuccessful tenderers will bedischarged or returned as promptly as possible, but not later than ______days after the expiration of the period of tender validity prescribed.
14.6 The tender security of the successful tenderer will be dischargedor returned upon the tenderer executing the Contract and furnishing therequired performance security.
14.7 The tender security may be forfeited:
(a) if a tenderer withdraws his tender during the period of tendervalidity; or
(b) in the case of the successful tenderer, if he fails to:
(i) sign the Agreement; or
(ii) furnish the necessary performance security.
15. Alternative Offers
15.1 The tenderer shall submit a basic tender which complies fullywith the requirements of the tender documents. The tenderer may, at hisoption,and in addition to the basic tender, offer tenders incorporatingalternativesto any of the following items now specified:
(a) Advance Loan for Mobilisation
An interest free advance loan will be made available to assist theContractor before commencing construction of the Works. Offers may be madefor such a loan of up to ________% of the Tender Sum. Evaluation will bemade of theassociated costs or savings accruing to the Employer inaccordance withClause 28.
(b) (written as specific conditions)。
15.2 Alternatives may be submitted in addition to basic tender. Inorder for alternatives to be considered in the process of tenderevaluation, each alternative shall be accompanied by a detailed pricebreakdown indicating the tenderer's estimate of the additional or reducedcost in presentvalue to the Employer (refer to subclause 28.3 hereof)compared to the basic Tender Sum. Comparison and evaluation will be donefor the basic offer andalternatives of the lowest evaluated tenderer willbe given due consideration.Ifthe alternative offers were to be acceptedby the Employer, these will be incorporated into the Contract. Alternativeoffers which are not priced, or which are not substantiated in sufficientdetail, will be rejected.
15.3 Offers of technical alternatives shall be accompanied by allinformation necessary for a complete evaluation, including designcalculations, drawings, method statements and specifications for materialsand workmanship where the alternative is not covered by the Specification,together with a breakdown of the alternative prices and the TotalAlternative Contract Sum.
15.4 Only those alternative offers which appear to provide additionalfinancial, economic or technical benefits over the basic offer will beconsidered by the Employer in tender evaluation (refer to Clause 28)。
16. Pre-Tender Meeting
16.1 The tenderer or his official representative is advised to attenda pre-tender meeting which will convene on ______________at ___________ atthe ___________.
16.2 The purpose of the meeting will be to clarify issues and toanswer questions on any matter that may be raised at that stage and toallow tenderers to inspect the Site and to examine conditions.
16.3 Tenderers are requested to submit any questions in writing or bytelex or telegram, to reach__________ not later than one week before themeeting.
16.4 Minutes of the meeting, including copies of the questions raisedandresponses given, will be furnished expeditiously to all those attendingthe meeting, and subsequently to all pre-qualified tenderers whohave pickedupthe tender documents. Any modification of the tenderdocuments listed in sub-clause 6.1 which may become necessary as a resultof the pre-tender meeting shall be made by the Employer or his agent___________ exclusivelythrough the issue of an Addendum pursuant toClause 8, and not through the minutes of the pre-tender meeting.
17. Format and Signing of Tenders
17.1 The tenderer shall prepare one original and two duplicate copiesof the documents comprising the tender as described in Clause 10.1 hereof,bound within the Volume 3, and clearly marked “Original Tender” and“Duplicate Tender”as appropriate. In the event of any discrepancy betweenthem, the original shall prevail.
17.2 The original and two duplicate copies of the tender shall betyped or written in indelible ink and shall be signed by a person orpersonsduly authorised to bind the tenderer to the Contract. Proof ofauthorisation shall be furnished in the form of a written Power ofAttorney which shall accompany the tender. All pages of the tender whereentries or amendments have been made shall be initialled by the person orpersons signing the tender.
17.3 The complete tender shall be without alterations, interlineationsor erasures, except those to accord with the instructions of any Agendaissued,or as necessary to correct errors made by the tenderer, in whichcase such corrections shall be initialled by the person or persons signingthe tender.
17.4 Only one tender may be submitted by each tenderer, not includingalternative offers submitted pursuant to Clause 15 hereof. No tenderer mayparticipate in the tender of another for the same contract in any relationwhatsoever.
18. Sealing and Marking of Tenders
18.1 The tenderer shall seal the original and two duplicate tenderseach in an inner and an outer envelope, duly marking the envelopes as“Original” and “Duplicate”。
18.2 The inner and outer envelopes shall:
(a) be addressed to _________. (address of employer's agent)
(b) bear the following details:
(i) Tender for Construction of Contract _________;
(ii) _________ Project;
(iii) “Do not open before __________.”
18.3 The inner envelopes shall bear the name and address of thetenderer to enable the tender to be returned unopened in case it isdeclared late. The outer envelope shall not bear any identification of thetenderer.
18.4 If the outer envelope is not marked as instructed above,_________ Company will assume no responsibility for the misplacement orpremature opening of the tender. A tender opened prematurely for thiscause will be rejected by the Employer or his agent ___________ andreturned to thetenderer.
19. Deadline for Submission of Tenders
19.1 Tenders must be received by ______________ at the addressspecified above no later than _________.
19.2 The Employer or his agent __________ Company may, at theirdiscretion, on giving not less than ________ calendar days notice by telexor telegram to all pre-qualified tenderers who have picked up the tenderdocuments, extend the deadline for the submission of tenders by issuing anAddendum in accordance with Clause 8, in which case all rights andobligations of the Employer and the tenderers previously subject to thedeadline shall thereafter be subject to the new deadline as extended.
20. Late Tenders
Any tender received by ___________ Company after the prescribeddeadline for submission of tenders will be returned unopened.
21. Modification andWithdrawal of Tenders
21.1 The tenderer may modify or withdraw his tender after submission,provided that the modification or notice of withdrawal is received inwritingby __________ Company prior to the prescribed deadline forsubmission of tenders.
21.2 The tenderer's modification or notice of withdrawal shall beprepared, sealed, marked and despatched in accordance with the provisionsfor thesubmission of tenders. A notice of withdrawal may also be sent bytelex or telegram, but shall be followed by a signed confirmation copy,postmarked not later than the deadline for submission of tenders.
21.3 Subject to Clause 24 hereof, no tender may be modified subsequentto the deadline for submission of tenders.
21.4 Withdrawal of a tender during the interval between the deadlineforsubmission of tenders and the expiration of the period of tendervaliditymay result in the forfeiture of tender security pursuant toClause 14.
Tender Opening and Evaluation
22. Tender Opening
22.1 The Employer or his agent __________ will open the tenders, inthepresence of tenderers' representatives who choose to attend, at___________ on _______________ at the offices of __________. Tenderers'representatives who are present shall sign a register evidencing theirattendance.
22.2 Tenders for which an acceptable notice of withdrawal has beensubmitted pursuant to Clause 21 hereof shall not be opened. The Employeror his agent ___________ will examine the tenders to determine whetherthey are complete, whether the requisite tender securities have beenfurnished, whether the documents have been Properly signed, and whetherthe tenders are generally in order.
22.3 The tenderers' names, total amounts of tenders, tender pricemodifications and tender withdrawals, if any, the presence of therequisite tender security and such other details as the Employer or hisagent ____________, at their discretion, may consider appropriate will beannounced at the opening.
22.4 The Employer or his agent _____________ shall prepare minutes ofthetender opening for his own records. Such minutes shall be sent to theWorld Bank together with the report on the evaluation of tenders as soonas the latter is available.
23. Process to be Confidential
23.1 After the public opening of tenders, information relating to theexamination, clarification, evaluation and comparison of tenders andrecommendations concerning the award of contract shall not be disclosed totenderers or other persons not officially concerned with such processuntil the awardof a contract to the successful tenderer has beenannounced.
23.2 Any effort by a tenderer to influence the Employer in the processof examination, clarification, evaluation and comparison of tenders anddecisions concerning award of contract may result in the rejection of histender.
24. Clarification of Tenders
To assist in the examination, evaluation and comparison of tenders,theEmployer and _______________ Company may ask tenderers individuallyfor clarification of their tenders, including breakdowns of unit prices.The requestfor clarification and the response shall be in writing or bytelex or telegram, but no change in the price or substance of the tendershall be sought, offered or permitted except as required to confirm thecorrection of arithmetical errors discovered by the Employer during theevaluation of tenders in accordance with Clause 26 hereof.
25. Determination of Responsiveness
25.1 Prior to the detailed evaluation of tenders, the Employer and_________ Company will determine whether each tender is substantiallyresponsive to the requirements of the tender documents.
25.2 For the purpose of this Clause, a substantially responsive tenderis one which conforms to all the terms, conditions and specifications ofthe tender documents without material deviation or reservation. A materialdeviation is one which affects in any substantial way the scope, qualityor administration of the Works, or which limits in any substantial way,inconsistent with the tender documents, the Employer's rights or thetenderer's obligations under the Contract, and the rectification of whichdeviation or reservation would affect unfairly the competitive position ofother tenderers offering substantially responsive tenders.
25.3 If a tender is not substantially responsive to the requirementsof the tender documents, it shall be rejected by the Employer and_________ Company.
26. Correction of Errors
26.1 Tenders determined to be substantially responsive will be checkedby the Employer for any arithmetical errors in computation and summation.Errors will be corrected by the Employer as follows:
(a) Where there is a discrepancy between amounts in figures and inwords, the amount in words will normally govern, unless it is clear fromthe context that the amount in figures is correct; and
(b) where there is a discrepancy between the unit rate and the totalamount derived from the multiplication of the unit rate and the quantity,the unit rate as quoted will normally govern unless, in the opinion of theEmployer, there is obviously a gross error in the unit rate; in whichevent the totalamount as quoted will govern and the unit rate will becorrected.
26.2 The amount stated in the Form of Tender will be adjusted by theEmployer in accordance with the above procedure for the correction oferrors and, with the concurrence of the tenderer, shall be considered asbinding upon the tenderer. The tenderer may, at his option, withdraw histender if acceptance of the corrected amount would cause hardship. Howeverin cases such as this, the tenderer is warned that such an action maycause his tender security to be forfeited.
27. Conversion to Single Currency
The Tender Price is the sum of all payments stated or expressed as apercentage in various currencies required to be made to the tenderer. Tofacilitate evaluation and comparison of tenders, the Employer will convertthe amountsin various currencies in which the Tender Price is payable(excluding Provisional Sums but including Daywork, where pricedcompetitively) to RMB atthe selling rates established by Bank of China,on the date specified for theopening of tenders.
28. Evaluation and Comparison of Tenders
28.1 The Employer and _____________ Company will evaluate and compareonly those tenders determined to be substantially responsive to therequirements of the tender documents in accordance with Clause 25 hereof.The Evaluation and comparison shall be based only on the “Basic” offer todetermine the lowest evaluated tenderer for award of the Contract.
28.2 In evaluating tenders, the Employer will determine for eachtender the Evaluated Tender Price by adjusting the tender price asfollows:
(a) making any correction for errors pursuant to Clause 26;
(b) excluding Provisional Sums and the provision, if any, forContingencies in the Summary Bill of Quantities, but including Dayworkswhere priced competitively;
(c) converting all amounts to a single currency;
(d) adding any monetary cost of Mobilisation Advances, assessed inaccordance with sub-clause 28.3
(e) making an appropriate adjustment for any other acceptablequantifiable variations, deviations or alternative offers not reflected inthe tender price or in the above-mentioned other adjustments.
(f) such other factors as the Employer considers may have apotentially significant impact on contract execution, price and payments,including the effect of items or unit rates in the tender that areunbalanced or unrealistically priced.
28.3 The monetary costs to the Employer of variations in the amount ofmobilisation advances requested by tenderers pursuant to sub-clauses 15.1(a), using a discount rate of ______ percent per annum, shall be added tothe respective tenderer's tender price for comparison purposes only.
28.4 The Employer and ___________ Company reserves the right to acceptor reject any variation, deviation or alternative offer. Variations,deviations, alternative offers and other factors which are in excess ofthe requirements of the tender documents or otherwise result in theaccrual of unsolicited benefits to the Employer may not be taken intoaccount in tender evaluation.
28.5 Price adjustment provisions applying to the period of executionof the Contract shall not be taken into account in tender evaluation.
28.6 If the tender of the successful tenderer is seriously unbalancedin relation to the Engineer's estimate of the real cost of work to beperformed under the Contract, the Employer may require that the amount ofthe performance security set forth in Clause 34 be increased at theexpense of the successful tenderer to a level sufficient to protect theEmployer against financial loss in the event of subsequent default of thesuccessful tenderer under the Contract.
29. Preference for Domestic Tenderers
29.1 Domestic tenderers shall satisfy the following criteria to beeligible for a _______% margin of preference in the comparison of theirtenderswith those of non-eligible tenderers:
(a) be registered within China;
(b) have majority ownership by nationals of China; and
(c) shall not subcontract more than ________% of the contract works(in terms of value) to foreign contractors.
29.2 Combinations and joint ventures between domestic and foreignfirms shall be eligible for the margin of preference provided:
(a) the domestic partner or partners individually satisfy the criteriaforeligibility set out above;
(b) the domestic partner or partners will, under the arrangementsproposed, carry out at least ________% of the contract works, measured interms of value.
(c) The domestic partner or partners would not be qualified for theContract Works in question on technical or financial grounds without theforeignparticipation.
29.3 The following procedure will be used to give effect to the marginof preference:
(a) After tenders have been evaluated fully in accordance with theprovisions of Clause 28 hereinabove, responsive tenders will be classifiedinto the following groups;
(i) Group A: tenders offered by domestic tenderers meeting thecriteria set forth in sub-clause 29.1 hereinabove and by joint venturesmeetingthe criteria set forth in sub-clause 29.2 hereinabove; and
(ii) Group B: tenders offered by other tenderers.
(b) For the purpose of further evaluation and comparison of tendersonly, an amount equal to _________ percent of the tender price (asadjusted pursuant to paragraphs (a), (b) and (c) of sub-clause 28.2) willbe added tothe Evaluated Tender Price of tenders classified in Group B.
Award of Contract
30. Award Criteria
Subject to Clause 31, the Employer and ________ Company may award theContract to the tenderer whose tender has been determined to besubstantially responsive to the tendering documents and who has offeredthe lowest Evaluated Tender Price pursuant to Clause 28 and paragraph (b)of sub-clause 29.3 (if applicable), provided further that the tenderer hasthe capability and resources to carry out the Contract effectively (referto sub-clause 3.5), butthe employer and _________ Company gives noguarantee that the lowest orany tender will be accepted.
31. Employer's Rights
Not with standing Clause 30, the Employer reserves the right to acceptor reject any tender, and to annul the tendering process and reject alltenders, at any time prior to award of contract, without thereby incurringany liability to the affected tenderer or tenderers or any obligation toinform the affected tenderer or tenderers of the grounds for theEmployer's action.32. Notification of Award
32.1 Prior to the expiration of the period of tender validityprescribed by the Employer, the Employer will notify the successfultenderer by telex or telegram confirmed in writing by registered letterthat his tender has been accepted. This letter (hereinafter and in theConditions of Contract called the “Letter of Acceptance”) shall name thesum which the Employer will pay to the Contractor in consideration of theexecution, completion and maintenance of the Works by the Contractor asprescribed by the Contract (hereinafter and in the Conditions of Contractcalled the “Tender Sum”)。
32.2 The notification of award will constitute the formation of theContract.
32.3 Upon the furnishing by the successful tenderer of a performancesecurity in accordance with the provisions of Clause 34 hereof, theEmployer will promptly notify the other tenderers that their tenders havebeen unsuccessful.33. Signing of Agreement
33.1 Within ________ days of notifying the successful tenderer thathistender has been accepted, the Employer will send to the tenderer twocopies of the Form of Agreement provided in the tender documents,incorporating all agreements between the parties.
33.2 Within__________ days of receipt of the Form of Agreement, thesuccessful tenderer shall execute the Agreement by signing or sealing, asappropriate, and return both copies to the Employer. The Employer willthen execute the Agreement and return one copy to the Contractor.
34. Performance Security
34.1 Within _________ days of receipt of the Letter of Acceptance, thesuccessful tenderer shall furnish to the Employer a security for the dueperformance of the Contract, in accordance with the Conditions ofContract. The form of performance security provided in the tenderdocuments may be used, or some other form acceptable to the Employer.
34.2 If the performance security is to be provided by the successfultenderer in the form of a bank guarantee, it shall be issued either by alocal bank; by a foreign bank through a correspondent local bank; or by aforeign bank which has been determined by the tenderer to be acceptable tothe Employer.
34.3 If the performance security is to be provided by the successfultenderer in the form of a bond, it shall be issued by a bonding orinsurance company which has been determined by the tenderer to beacceptable to the Employer.
34.4 Failure of the successful tenderer to comply with there quirements of Clauses 33 or 34 hereof shall constitute sufficient grounds for the annulment of the award and forfeiture of the tender security,in which event the Employer may make the award to the next lowest evaluated tenderer or, if there are no other tenderers,call fornew tenders.