Section I - Lusaka Water & Sewerage Company：第一节-卢萨卡水及污水处理公司

Section I - Lusaka Water & Sewerage Company：第一节-卢萨卡水及污水处理公司 LUSAKA WATER AND SEWERAGE COMPANY THE GOVERNMENT OF THE REPUBLIC OF ZAMBIA LIMITED BIDDING BIDDING DOCUMENT LWSC/PS/W-002/2014 _________________________________________________________________ TENDER FOR THE SUPPLY, INSTALLATION AND COMMISSIONING OF FOUR (4NO.) RESERVIOUR STEEL TANKS IN HILLVIEW, WOODLANDS AND CHAINDA AREAS OF LUSAKA. ______________________________________________________________________ Financed by: LWSC Lusaka Water and Sewerage Company Limited P.O Box 50198 Plot No 871/2, Katemo Road Rhodes Park Zambia Telephone: 260 - 1 – 257579-83 Telefax: 260 - 1 – 251718 MAY 2014 Bidding Document for The Supply, Installation and Commissioning of Four (4No) Reservoir Steel Tanks in Hillview, Woodlands and Chainda Areas of Lusaka City. Issue Date: May, 2014 ONB No: LWSC/PS/W-002/2014 Employer: Lusaka Water and Sewerage Company Limited (LWSC) ZAMBIA iii Standard Bidding Document Table of Contents PART 1 – Bidding Procedures ............................................................................................ 1-1 Section 1 - Instructions to Bidders ...................................................................................... 1-3 Section II - Bid Data Sheet (BDS) .................................................................................... 1-27 Section III - Evaluation and Qualification Criteria ........................................................... 1-33 Section IV - Bidding Forms .............................................................................................. 1-43 Section V - Eligible Countries ............................................................................................ 1-1 Employer’s Requirements ................................................................................. 2-2 PART 2 – Section VI - Employer’s Requirements .............................................................................. 2-1 PART 3 – Conditions of Contract and Contract Forms ................................................ 3-12 Section VII. General Conditions of Contract ................................................................... 3-13 Section VIII. Particular Conditions of Contract............................................................... 3-39 Section IX - Contract Forms ............................................................................................. 3-43 1-1 PART 1 – Bidding Procedures 1-3 Section 1 - Instructions to Bidders Table of Clauses A. General ...................................................................................................................... 1-5 1. Scope of Bid ............................................................................................................... 1-5 2. Source of Funds ......................................................................................................... 1-5 3. Fraud and Corruption ................................................................................................. 1-5 4. Eligible Bidders ......................................................................................................... 1-7 5. Eligible Materials, Equipment and Services .............................................................. 1-9 B. Contents of Bidding Document ............................................................................. 1-10 6. Sections of Bidding Document ................................................................................ 1-10 7. Clarification of Bidding Document, Site Visit, Pre-Bid Meeting ............................ 1-10 8. Amendment of Bidding Document .......................................................................... 1-11 C. Preparation of Bids ................................................................................................ 1-12 9. Cost of Bidding ........................................................................................................ 1-12 10. Language of Bid ....................................................................................................... 1-12 11. Documents Comprising the Bid ............................................................................... 1-12 12. Letter of Bid and Schedules ..................................................................................... 1-13 13. Alternative Bids ....................................................................................................... 1-13 14. Bid Prices and Discounts ......................................................................................... 1-13 15. Currencies of Bid and Payment ............................................................................... 1-14 16. Documents Comprising the Technical Proposal ...................................................... 1-14 17. Documents Establishing the Qualifications of the Bidder ....................................... 1-15 18. Period of Validity of Bids ........................................................................................ 1-15 19. Bid Security ............................................................................................................. 1-15 20. Format and Signing of Bid ....................................................................................... 1-17 D. Submission and Opening of Bids .......................................................................... 1-17 21. Sealing and Marking of Bids ................................................................................... 1-17 22. Deadline for Submission of Bids ............................................................................. 1-18 23. Late Bids .................................................................................................................. 1-18 24. Withdrawal, Substitution, and Modification of Bids ............................................... 1-18 25. Bid Opening ............................................................................................................. 1-19 E. Evaluation and Comparison of Bids .................................................................... 1-20 26. Confidentiality ......................................................................................................... 1-20 1-4 Section I - Instructions to Bidders 27. Clarification of Bids ................................................................................................. 1-20 28. Deviations, Reservations, and Omissions ................................................................ 1-21 29. Determination of Responsiveness ............................................................................ 1-21 30. Nonconformities, Errors, and Omissions ................................................................. 1-22 31. Correction of Arithmetical Errors ............................................................................ 1-22 32. Conversion to Single Currency ................................................................................ 1-22 33. Margin of Preference ............................................................................................... 1-23 34. Evaluation of Bids.................................................................................................... 1-23 35. Comparison of Bids ................................................................................................. 1-24 36. Qualification of the Bidder ...................................................................................... 1-24 37. Employer’s Right to Accept Any Bid, and to Reject Any or All Bids .................... 1-25 F. Award of Contract ................................................................................................. 1-25 38. Award Criteria ......................................................................................................... 1-25 39. Notification of Award .............................................................................................. 1-25 40. Signing of Contract .................................................................................................. 1-25 Performance Security ............................................................................................... 1-26 41. 42. Adjudicator .............................................................................................................. 1-26 Section I - Instructions to Bidders 1-5 Section I - Instructions to Bidders A. General 1.1 The Employer, as indicated in the BDS, issues this Bidding 1. Scope of Bid 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; (d) the term ―Project Manager‖ refers to the officer, body or institution appointed under Section 57 of the Public Procurement Act of 2008 as Contract Manager; (e) ―Government‖ refers to the Government of the Republic of Zambia, any Procuring Entity or the relevant approvals authority as defined in the Public Procurement Act of 2008; and (f) ―ZPPA‖ refers to the Zambia Public Procurement Authority. 2.1 The Procuring Entity indicated in the BDS has set aside funds 2. Source of Funds in its 2014 Budget (hereinafter called ―funds‖) toward the cost of the project named in the BDS. The Employer 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 the Employer will be made only at the request of the Project Manager. 3.1 It is the Government’s policy to require that Employers 3. Fraud and (including beneficiaries of the funds), as well as bidders, Corruption suppliers, and contractors and their agents (whether declared or not), personnel, subcontractors, sub-consultants, service providers and suppliers, under Government-financed contracts, observe the highest standard of ethics during the procurement 1-6 Section I - Instructions to Bidders 1and execution of such contracts. In pursuance of this policy, the Employer: (a) defines, for the purposes of this provision, the terms set forth below as follows: (i) ―corrupt practice‖ is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another 2party; (ii) ―fraudulent practice‖ is 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 3obligation; (iii) ―collusive practice‖ is an arrangement between two 4or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party; (iv) ―coercive practice‖ is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence 5improperly the actions of a party; (v) "obstructive practice" is (aa) deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Government investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or 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 (bb) acts intended to materially impede the exercise of the Government’s inspection and Section I - Instructions to Bidders 1-7 audit rights provided for under sub-clause 3.1 (e) below. (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 in competing for the contract in question; (c) will cancel the funding allocated to a contract if it determines at any time that representatives of the Employer - engaged in corrupt, fraudulent, collusive, or coercive practices during the procurement or the execution of that contract, without the Employer having taken timely and appropriate action satisfactory to the Government to remedy the situation; and (d) will sanction a firm or an individual, at any time, in accordance with prevailing sanctions procedures, including suspending or barring a bidder in accordance with Sections sixty-five, sixty-six and sixty-seven of the Public Procurement Act of 2008 and regulations 162 to 167 of the Public Procurement Regulations of 2011: (i) to be awarded a Government-financed contract; and (ii) to bbe a nominated sub-contractor, consultant, manufacturer or supplier, or service provider of an otherwise eligible firm being awarded a Government-financed contract. A bidder or supplier aggrieved by such a decision, may appeal in accordance with Section sixty-nine of the Public Procurement Act of 2008. 3.2 In further pursuance of this policy, Bidders shall permit the Employer to inspect any accounts and records and other documents relating to the Bid submission and contract performance, and to have them audited by auditors appointed by the Employer. 3.3 Furthermore, bidders shall be aware of the provision stated in GCC Sub-Clauses 22.2 and 56.2 (h). 4.1 A Bidder may be a natural person, private entity, or government-4. Eligible Bidders owned entity—subject to ITB 4.6—or any combination of them in the form of a joint venture, under an existing agreement, or with the intent to constitute a legally-enforceable joint venture. Unless otherwise stated in the BDS, all partners shall be jointly and severally liable for the execution of the Contract in 1-8 Section I - Instructions to Bidders accordance with the Contract terms. 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, or incorporated, 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 have a conflict of interest with one or more parties in this bidding process, if : (a) they have a controlling partner 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 that puts them in a position to have access to information about or influence on 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. Participation by a Bidder in more than one Bid will result in the disqualification of all Bids in which the party is involved. However, this does not limit the inclusion of the same subcontractor in more than one bid; or (f) a Bidder participated as a consultant in the preparation of the design or technical specifications of the contract that is the subject of the Bid; or (g) a Bidder has been hired (or is proposed to be hired) by the Employer as Engineer for the contract. 4.4 A Bidder that has been sanctioned by ZPPA in accordance with the above ITB 3.1 (d), shall be ineligible to be awarded a Government-financed contract, or benefit from a Government- financed contract, financially or otherwise, during such period of time as the ZPPA shall determine Section I - Instructions to Bidders 1-9 4.5 A statutory corporation or body or company in which Government has a majority or controlling interest shall be eligible only if they meet the provisions of Section 34 of the Public Procurement Act of 2008. To establish eligibility, the government-owned enterprise or institution should provide all relevant documents (including its charter) sufficient to demonstrate that it meets the provisions of Section 34(2) of the Public Procurement Act of 2008. 4.6 Bidders shall provide such evidence of their continued eligibility satisfactory to the Employer, as the Employer shall reasonably request. 4.7 In case a prequalification process has been conducted prior to the bidding process, this bidding is open only to prequalified Bidders. 4.8 Firms shall be excluded if: (a) as a matter of law or official regulation, the Government prohibits commercial relations with that country, provided that Cooperating Partners involved are satisfied that such exclusion does not preclude effective competition for the supply of goods or related services required; or (b) 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, Government prohibits any import of goods or contracting of works or services from that country or any payments to persons or entities in that country. 5.1 The materials, equipment and services to be supplied under the 5. Eligible Contract shall have their origin in eligible source countries as Materials, defined in ITB 4.2 above and all expenditures under the Contract Equipment and will be limited to such materials, equipment, and services. At Services 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. 1-10 Section I - Instructions to Bidders B. Contents of Bidding Document 6.1 The Bidding Document consist of Parts 1, 2, and 3, which 6. Sections of include all the Sections indicated below, and should be read in Bidding conjunction with any Addenda issued in accordance with ITB 8. Document PART 1 Bidding Procedures Section I - Instructions to Bidders (ITB) Section II - Bid Data Sheet (BDS) Section III - Evaluation and Qualification Criteria Section IV - Bidding Forms Section V - Eligible Countries PART 2 Requirements Section VI - Works Requirements PART 3 Conditions of Contract and Contract Forms Section VII - General Conditions (GC) Section VIII - Particular Conditions (PC) Section IX - Contract Forms 6.2 The Invitation for Bids 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 Invitation for Bids. 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. 7.1 A prospective Bidder requiring any clarification of the Bidding 7. Clarification of Document shall contact the Employer in writing at the Bidding Employer’s address indicated in the BDS or raise his inquiries Document, Site during the pre-bid meeting if provided for in accordance with Visit, Pre-Bid ITB 7.4. The Employer will respond in writing to any request for Meeting 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. Section I - Instructions to Bidders 1-11 7.2 The Bidder is encouraged 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. 7.3 The Bidder and any of its personnel or agents will be granted permission by the Employer to enter upon 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, as far as possible, to submit any questions in writing, to reach the Employer not later than one 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. 8.1 At any time prior to the deadline for submission of bids, the 8. Amendment of Employer may amend the Bidding Document by issuing Bidding 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. 1-12 Section I - Instructions to Bidders 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 9.1 The Bidder shall bear all costs associated with the preparation 9. Cost of Bidding 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. 10.1 The Bid, as well as all correspondence and documents relating to 10. Language of Bid 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. 11.1 The Bid shall comprise the following: 11. Documents Comprising the (a) Letter of Bid; Bid (b) completed Schedules, in accordance with ITB 12 and 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) In the case of a bid submitted by a joint venture (JV), the JV agreement, or letter of intent to enter into a JV including a draft agreement, indicating at least the parts of the Works to be executed by the respective partners; and Section I - Instructions to Bidders 1-13 (i) Any other document required in the BDS. 12.1 The Letter of Bid, Schedules, and all documents listed under 12. Letter of Bid and Clause 11, shall be prepared using the relevant forms in Section Schedules IV (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. 13.1 Unless otherwise indicated in the BDS, alternative bids shall 13. Alternative Bids 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 best-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 VI (Employer’s Requirements). The method for their evaluation will be stipulated in Section III (Evaluation and Qualification Criteria). 14.1 The prices and discounts quoted by the Bidder in the Letter of 14. Bid Prices and Bid and in the Schedules shall conform to the requirements Discounts 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 IV, 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. 1-14 Section I - Instructions to Bidders 14.3 The price to be quoted in the Letter of Bid shall be the total price of the Bid, excluding any discounts offered. 14.4 Unconditional discounts, if any, and the methodology for their application shall be quoted in the Letter of Bid, in accordance with ITB 12.1. 14.5 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 14.3, provided the bids for all contracts are submitted and opened at the same time. 14.6 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 indices and weightings for the price adjustment formulae in the Schedule of Adjustment Data in Section IV (Bidding Forms) and the Employer may require the Bidder to justify its proposed indices and weightings. 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. 15.1 The currency(ies) of the bid shall be as specified in the BDS. 15. Currencies 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 IV, in which case a detailed breakdown of the foreign currency requirements shall be provided by Bidders. 16.1 The Bidder shall furnish a Technical Proposal including a 16. Documents statement of work methods, equipment, personnel, schedule and Comprising the any other information as stipulated in Section IV (Bidding Technical Forms), in sufficient detail to demonstrate the adequacy of the Proposal Bidders’ proposal to meet the work requirements and the Section I - Instructions to Bidders 1-15 completion time. 17.1 To establish its qualifications to perform the Contract in 17. Documents accordance with Section III (Evaluation and Qualification Establishing the Criteria) the Bidder shall provide the information requested in Qualifications of the corresponding information sheets included in Section IV the Bidder (Bidding Forms). 17.2 Domestic Bidders, individually or in joint ventures, applying for eligibility for a 7?-percent margin of domestic preference shall supply all information required to satisfy the criteria for eligibility as described in ITB 33. 18.1 Bids shall remain valid for the period specified in the BDS after 18. Period of the bid submission deadline date prescribed by the Employer. A Validity of Bids 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 for a corresponding 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. 18.3 In the case of fixed price contracts, if the award is delayed by a period exceeding fifty-six (56) days beyond the expiry of the initial bid validity, the Contract price shall be adjusted by a factor specified in the request for extension. Bid evaluation shall be based on the Bid Price without taking into consideration the above correction. 19.1 Unless otherwise specified in the BDS, the Bidder shall furnish 19. Bid Security as part of its bid, in original form, either a Bid Securing Declaration or a bid security as specified in the BDS. In the case of a bid security, the amount shall be as specified in the BDS. 19.2 A Bid Securing Declaration shall use the form included in Section IV Bidding Forms. 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 guarantee, issued by a bank or surety; 1-16 Section I - Instructions to Bidders (b) an irrevocable letter of credit; (c) a Bank Certified Cheque; or (d) any other security indicated in the BDS. from a reputable source from an eligible country. If the unconditional guarantee is issued by an insurance company or bonding company located outside the Employer’s Country, it shall have a correspondent financial institution located in the Employer’s Country. In the case of a bank guarantee, the bid security shall be submitted either using the Bid Security Form included in Section IV (Bidding Forms) or in another substantially similar format approved by the Employer prior to bid submission. In either case, the form must include the complete name of the Bidder. The bid security shall be valid for twenty-eight days (28) beyond the original validity period of the bid, or beyond any period of extension if requested under ITB 18.2. 19.4 Any bid not accompanied by an enforceable and substantially compliant bid security or Bid Securing Declaration, if required in accordance with ITB 19.1, shall be rejected by the Employer as nonresponsive. 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; or (ii) furnish a performance security in accordance with ITB 41. Section I - Instructions to Bidders 1-17 19.8 The Bid Security or the Bid Securing Declaration of a JV shall be in the name of the JV that submits the bid. If the JV has not been constituted into a legally-enforceable JV, 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. 19.9 If a bid security is not required in the BDS, and (a) if a Bidder withdraws its bid during the period of bid validity specified by the Bidder on the Letter of Bid Form, except as provided in ITB 18.2, or (b) if the successful Bidder fails to: sign the Contract in accordance with ITB 40; or furnish a performance security in accordance with ITB 41; the Employer may, if provided for in the BDS, declare the Bidder disqualified to be awarded a contract by the Employer for a period of time as stated in the BDS. 20.1 The Bidder shall prepare one original of the documents 20. Format and comprising the bid as described in ITB 11 and clearly mark it Signing of Bid ―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. 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. D. Submission and Opening of Bids 21.1 Bidders may always submit their bids by mail or by hand. When 21. Sealing and so specified in the BDS, bidders shall have the option of Marking of Bids submitting their bids electronically. Procedures for submission, 1-18 Section I - Instructions to Bidders 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 sub-Clauses 22.2 and 22.3. (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 the BDS pursuant to ITB 22.1; (c) bear the specific identification of this bidding process indicated in accordance with ITB 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. 22.1 Bids must be received by the Employer at the address and no 22. Deadline for later than the date and time indicated in the BDS. Submission 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. 23.1 The Employer shall not consider any bid that arrives after the 23. Late Bids 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. 24.1 A Bidder may withdraw, substitute, or modify its bid after it has 24. Withdrawal, been submitted by sending a written notice, duly signed by an Substitution, and Section I - Instructions to Bidders 1-19 authorized representative, and shall include a copy of the Modification of authorization in accordance with ITB 20.2, (except that Bids 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 (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. 25.1 The Employer shall open the bids in public at the address, date 25. Bid Opening 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. 1-20 Section I - Instructions to Bidders 25.3 All other envelopes shall be opened one at a time, reading out: the name of the Bidder and 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. 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, 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. E. Evaluation and Comparison of Bids 26.1 Information relating to the examination, evaluation, comparison, 26. Confidentiality and post qualification 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 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 25.2, 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. 27.1 To assist in the examination, evaluation, and comparison of the 27. Clarification of bids, and qualification of the Bidders, the Employer may, at its Bids 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 Section I - Instructions to Bidders 1-21 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. 28.1 During the evaluation of bids, the following definitions apply: 28. Deviations, Reservations, (a) ―Deviation‖ is a departure from the requirements specified and Omissions 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. 29.1 The Employer’s determination of a bid’s responsiveness is to be 29. Determination of based on the contents of the bid itself, as defined in ITB11. Responsiveness 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 (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. 1-22 Section I - Instructions to Bidders 30.1 Provided that a bid is substantially responsive, the Employer 30. Nonconformities, may waive any nonconformities in the bid. Errors, and Omissions 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 non-conforming item or component. The adjustment shall be made using the methods indicated in Section III (Evaluation and Qualification Criteria). 31.1 Provided that the bid is substantially responsive, the Employer 31. Correction of shall correct arithmetical errors on the following basis: Arithmetical 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; and (c) 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) and (b) above. 31.2 If the Bidder that submitted the best-evaluated bid does not accept the correction of errors, its bid shall be declared non- responsive. 32.1 For evaluation and comparison purposes, the currency(ies) of the 32. Conversion to bid shall be converted into a single currency as specified in the Single Currency Section I - Instructions to Bidders 1-23 BDS. 33.1 A margin of preference shall not apply, unless otherwise 33. Margin of specified in the BDS. Preference 33.2 Domestic bidders shall provide all evidence necessary to prove that they meet the following criteria to be eligible for a 7? percent margin of preference in the comparison of their bids with those of bidders who do not qualify for the preference. They should: (a) be registered within the country of the Employer’s country ; (b) have majority ownership by nationals of the country of the Employer’s country ; (c) not subcontract more than 10 percent of the Contract Price, excluding provisional sums, to foreign contractors. 33.3 The following procedure shall be used to apply the margin of preference: (a) Responsive bids shall be classified into the following groups: (i) Group A: bids offered by domestic bidders and joint ventures meeting the criteria of ITB Sub-Clause 33.2; and (ii) Group B: all other bids. (b) For the purpose of further evaluation and comparison of bids only, an amount equal to 7? percent of the evaluated Bid prices determined in accordance with ITB Sub-Clause 33.2 shall be added to all bids classified in Group B. 34.1 The Employer shall use the criteria and methodologies listed in 34. Evaluation of this Clause. No other evaluation criteria or methodologies shall Bids 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 Schedule of Prices for lump sum contracts, but including Daywork items, where priced competitively; (b) price adjustment for correction of arithmetic errors in 1-24 Section I - Instructions to Bidders accordance with ITB 31.1; (c) price adjustment due to discounts offered in accordance with ITB 14.3; (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; (f) application of all the evaluation factors indicated in Section III (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 best- evaluated price of the contract combinations, including any discounts offered in the Letter of Bid, is specified in Section III (Evaluation and Qualification Criteria). 34.5 If the bid for an admeasurement contract, which results in the best-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. 35.1 The Employer shall compare all substantially responsive bids in 35. Comparison of accordance with ITB 34.2 to determine the best-evaluated bid. Bids 36.1 The Employer shall determine to its satisfaction whether the 36. Qualification of Bidder that is selected as having submitted the best-evaluated the Bidder and substantially responsive bid meets the qualifying criteria specified in Section III (Evaluation and Qualification Criteria). 36.2 The determination shall be based upon an examination of the documentary evidence of the Bidder’s qualifications submitted Section I - Instructions to Bidders 1-25 by the Bidder, pursuant to ITB 17.1. 36.3 An affirmative determination of qualification 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 best-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 the bidding process and reject all bids at any time prior to Accept Any to contract award, without thereby incurring any liability to Bid, and to Bidders. In case of annulment, all bids submitted and Reject Any or specifically, bid securities, shall be promptly returned to the All Bids Bidders. F. Award of Contract 38.1 Subject to ITB 37.1, the Employer shall award the Contract to 38. Award Criteria the Bidder whose offer has been determined to be the best- 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. 39.1 Prior to the expiration of the period of bid validity, the Employer 39. Notification of shall notify the successful Bidder, in writing, via the Letter of Award Acceptance included in the Contract Forms, that its bid has been accepted. At the same time, the Employer shall also notify all other Bidders of the results of the bidding 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. 39.2 Until a formal contract is prepared and executed, the notification of award shall constitute a binding Contract. 39.3 The Employer shall promptly respond in writing to any unsuccessful Bidder who, after notification of award in accordance with ITB 39.1, requests in writing the grounds on which its bid was not selected. 40.1 Promptly upon notification, the Employer shall send the 40. Signing of successful Bidder the Contract Agreement. Contract 1-26 Section I - Instructions to Bidders 40.2 Within twenty-eight (28) days of receipt of the Contract Agreement, the successful Bidder shall sign, date, and return it to the Employer. 41.1 Within twenty-eight (28) days of the receipt of notification of 41. Performance award from the Employer, the successful Bidder shall furnish the Security 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 IX (Contract Forms), or another form acceptable to the Employer. If the performance security furnished by the successful Bidder is in the form of a bond, it shall be issued by a bonding or insurance company that has been determined by the successful Bidder to be acceptable to the Employer. A foreign institution providing a bond shall have a correspondent financial institution located in the Employer’s Country. 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. In that event the Employer may award the Contract to the next best-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. 42.1 The Employer proposes the person named in the BDS to be 42. Adjudicator appointed as Adjudicator under the Contract, at the hourly fee specified in the BDS, plus reimbursable expenses. If the Bidder disagrees with this proposal, the Bidder should so state in his Bid. 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 Particular Conditions of Contract (PCC) pursuant to Clause 23.1 of the General Conditions of Contract (GCC), to appoint the Adjudicator. 1-27 Section II - Bid Data Sheet (BDS) A. Introduction The Employer is: Lusaka Water and Sewerage Company Limited ITB 1.1 The name of the bidding process is: Limited Bidding (LB) ITB 1.1 The identification number of the bidding process is: LWSC/PS/W-002/2014 The number and identification of lots comprising this bidding process is: Tender for the Supply, Installation and Commissioning of Four (4No) Steel Reservoir Tanks in Hillview, Woodlands and Chainda Areas of Lusaka City. The Employer is: Lusaka Water and Sewerage Company Limited ITB 2.1 The name of the Project is: Supply and Installation of Four (4No) ITB 2.1 Reservoir Steel Tanks in Hillview, Woodlands and Chainda Areas of Lusaka City. The individuals or firms in a JV shall be jointly and severally liable. ITB 4.1(a) B. Bidding Documents ITB 7.1 For clarification purposes only, the Employer’s address is: Attention: Chisulo Mwamba Zimba, Manager - Procurement and Supplies Lusaka Water and Sewerage Company Limited, P.O. Box 50198, Plot: 871/2, Katemo Road Floor/ Room number: Ground Floor, Main Building; City: Lusaka ZIP Code: 15101 Country: Zambia 1-28 Section II - Bid Data Sheet Telephone: 260-211-257579/83 Facsimile number:260-211-251718 Electronic mail address: czimba@lwsc.com.zm All email correspondence MUST be copied to jchiyombwe@lwsc.com.zm, hmando@lwsc.com.zm Requests for clarification should be received by the Employer no later than: 5 days prior to tender closing date A Pre-Bid will take place. If a Pre-Bid meeting will take place, it will be at ITB 7.4 the following date, time and place: A prebid meeting will be held on thThursday, 15 May, 2014 at LWSC Head Office and will be followed by a Mandatory Site Visit. C. Preparation of Bids The language of the bid is: English ITB 10.1 The following schedules shall be submitted with the bid: Priced Bill of ITB 11.1 (b) Quantities, Proposed Work Schedule, Proposed Key Staff and Staffing Schedule, Manufacturer’s Authorization for the Tanks, The Bidder shall submit with its bid the following additional documents: ITB 11.1 (i) (i) Certificate of Incorporation (ii) National Council for Construction Registration (iii) CV’s of key staff (iv) Proposed technical approach and methodology (v) Power of Attorney (vi) Audited Financial Statements or Availability of Credit Lines (vi) ZRA Tax Clearance Certificate Alternative bids shall not be permitted. ITB 13.1 Alternative times for completion shall not be permitted. ITB 13.2 If alternative times for completion are permitted, the evaluation method will be as specified in Section III (Evaluation and Qualification Criteria). Alternative technical solutions shall be permitted for the following parts of ITB 13.4 the Works: N/A If alternative technical solutions are permitted, the evaluation method will Section II - Bid Data Sheet 1-29 be as specified in Section III (Evaluation and Qualification Criteria). The prices quoted by the Bidder shall not be subject to adjustment during ITB 14.6 the performance of the Contract. The prices shall be quoted by the bidder in: Zambian Kwacha. A Bidder ITB 15.1 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 appropriate form(s) included in Section IV (Bidding Forms). The bid validity period shall be: 90 days. ITB 18.1 Bid Security Shall be in the form of Bid Securing Declaration as per ITB 19.1 attached sample ITB 19.3 (d) Bid Securing Declaration Form In addition to the original of the bid, the number of copies is: Four ITB 20.1 The written confirmation of authorization to sign on behalf of the Bidder ITB 20.2 shall indicate: (a) The Power of Attorney; and (b) In the case of Bids submitted by an existing or intended JV an undertaking signed by all parties (i) stating that all parties shall be jointly and severally liable and (ii) nominating a Representative who shall have the authority to conduct all business for and on behalf of any and all the parties of the JV during the bidding process and, in the event the JV is awarded the Contract, during contract execution.”] 1-30 Section II - Bid Data Sheet D. Submission and Opening of Bids Bidders shall not have the option of submitting their bids electronically. ITB 21.1 If bidders shall have the option of submitting their bids electronically, the ITB 21.1 (b) electronic bidding submission procedures shall be: N/A For bid submission purposes only, the Employer’s address is: ITB 22.1 Attention: Managing Director Street Address: Lusaka Water and Sewerage Company Limited, Plot: 871/2, Katemo Road, Rhodes park P.O. Box 50198, Floor/Room number: Ground Floor, Reception Area City: Lusaka ZAMBIA The deadline for bid submission is: thDate: 28 May, 2014 Time: 10:00hrs Local Time Bids must be deposited in the tender box situated on the Ground Floor, Reception Area, White Building, LWSC Head Office The bid opening shall take place at: ITB 25.1 Street Address: Lusaka Water and Sewerage Company Limited, P.O. Box 50198, Plot: 871/2, Katemo Road, Rhode spark, Lusaka Floor/Room number: Main Boardroom thDate: Date: 28 May 2014 Time: 10:000hrs Local Time If electronic bid submission is permitted in accordance with ITB 21.1, the ITB 25.1 specific bid opening procedures shall be: N/A Section II - Bid Data Sheet 1-31 E. Evaluation and Comparison of Bids The currency that shall be used for bid evaluation and comparison ITB 32.1 purposes to convert all bid prices expressed in various currencies into a single currency is: Zambia Kwacha The source of exchange rate shall be: N/A All bids shall be quoted in Zambian Kwacha. Evaluation and award of bids shall be on lot by lot basis. However, bidders recommended for award of Lot 1 will not be considered for award under Lot 2 & 3. ITB 33.1 A margin of preference shall apply as stipulated in Section III (Evaluation and Qualification Criteria) A margin of preference shall be applicable to citizen bidders registered with the Citizen Economic Empowerment Commission as follows: (a) Citizen Influenced Company by four percent (4%). (b) Citizen Empowered Company by eight percent (8%). (c) Citizen Owned Company by twelve percent (12%). ITB 42.1 The Adjudicator proposed by the Employer is: N/A 1-33 Section III - Evaluation and Qualification Criteria This section contains all 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. 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). Table of Criteria 1. Evaluation ............................................................................................................... 1-34 1.1 Adequacy of Technical Proposal ............................................................................. 1-34 1.2 Multiple Contracts ................................................................................................... 1-34 1.3 Completion Time ..................................................................................................... 1-34 1.4 Technical Alternatives ............................................................................................. 1-34 1.5 Margin of Preference [Applicable for ONB only] ................................................... 1-34 2. Qualification ........................................................................................................... 1-35 2.1 Eligibility ................................................................................................................. 1-35 2.2 Historical Contract Non-Performance ..................................................................... 1-36 2.3 Financial Situation ................................................................................................... 1-37 2.4 Experience................................................................................................................ 1-39 2.5 Personnel .................................................................................................................. 1-41 2.6 Equipment ................................................................................................................ 1-42 1-34 Section III - Evaluation and Qualification Criteria 1. Evaluation In addition to the criteria listed in ITB 34.1 (a) – (e) the following criteria shall apply: 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 VI (Employer's Requirements). 1.2 Multiple Contracts Pursuant to Sub-Clause 34.4 of the Instructions to Bidders, if Works are grouped in multiple contracts, evaluation will be as follows: N/A 1.3 Completion Time An alternative Completion Time, if permitted under ITB 13.2, will be evaluated as follows: N/A 1.4 Technical Alternatives Technical alternatives, if permitted under ITB 13.4, will be evaluated as follows: N/A 1.5 Margin of Preference [Applicable for ONB only] If a margin of preference shall apply under ITB 33.1, the procedure will be as follows: Preferential Procurement Clause for bidders registered with the Citizen Economic Empowerment Commission (CEEC) in line with ZPPA circular No. 2 of 2011 as follows: (a) For a citizen influenced company, by four percent (4%) (b) For a citizen-empowered company, by eight percent (8%) (c) For a citizen- owned company, by twelve percent (12%) Section III - Evaluation and Qualification Criteria 1-35 2. Qualification 2.1 Eligibility Factor Criteria Bidder Documentation Sub-Factor Single Entity Joint Venture, Consortium or Association Requirement Required All partners Each At least one combined partner partner 2.1.1 Nationality Nationality in accordance Must meet Existing or Must meet N / A Form ELI –1.1 and with ITB 4.2. requirement intended JV requirement 1.2, with attachments must meet requirement 2.1.2 Conflict of No- conflicts of interests as Must meet Existing or Must meet N / A Letter of Bid Interest described in ITB 4.3. requirement intended JV requirement must meet requirement 2.1.3 Ineligibility Not having been declared Must meet Existing JV Must meet N / A Letter of Bid ineligible by ZPPA as requirement must meet requirement described in ITB 4.4. requirement 2.1.4 Government Compliance with conditions Must meet Must meet Must meet Form ELI –1.1 and N / A Owned Entity of ITB 4.5 requirement requirement requirement 1.2, with attachments 2.1.5 Ineligibility Not having been excluded as Letter of Bidt based on a United a result of the laws of Zambia Existing JV Nations resolution or or official regulations, or by Must meet Must meet must meet N / A Zambian law an act of compliance with UN requirement requirement requirement Security Council resolution, in accordance with ITB 4.8 1-36 Section III - Evaluation and Qualification Criteria 2.2 Historical Contract Non-Performance Factor Criteria Bidder Documentation Sub-Factor Required Joint Venture, Consortium or Association Requirement All partners Each At least one Single Entity combined partner partner 2.2.1 History of non-Non-performance of a Form CON - 2 performing contracts contract did not occur within the last five (5) years prior to the deadline for application submission, based on all information on fully settled Must meet Must meet disputes or litigation. A requirement requirement N / A fully settled dispute or by itself or as by itself or N / A litigation is one that has been partner to as partner to resolved in accordance with past or past or the Dispute Resolution existing JV existing JV Mechanism under the respective contract, and where all appeal instances available to the bidder have been exhausted. 2.2.2 Pending All pending litigation shall in Must meet Must meet Form CON – 2 Litigation total not represent more than requirement requirement Twenty percent (20%) of the by itself or as by itself or as N / A N / A Bidder’s net worth and shall partner to partner to be treated as resolved against past or past or the Bidder. existing JV existing JV Section III - Evaluation and Qualification Criteria 1-37 2.3 Financial Situation Factor Criteria Bidder Documentation Sub-Factor Required Joint Venture, Consortium or Association Requirement Single Entity All partners Each At least one combined partner partner 2.3.1 Historical Submission of audited Financial balance sheets, profit and Performance loss statements for the last three (3) years to demonstrate Must meet Must meet Form FIN – 3.1 with N / A N / A the current soundness of the requirement requirement attachments bidders financial position and its prospective long term profitability. 2.3.2. Average Minimum average annual Must meet Annual Construction turnover of ZMW 200 Must meet _________ Turnover Thousand, calculated as total _________ Must meet Must meet percent certified payments received percent Form FIN –3.2 requirement requirement (50%) of the for contracts in progress or (50%) of the requirement completed, within the last requirement Three (3) years 1-38 Section III - Evaluation and Qualification Criteria 2.3 Financial Situation Factor Criteria Bidder Documentation Sub-Factor Required Joint Venture, Consortium or Association Requirement Single Entity All partners Each At least one combined partner partner 2.3.3. Financial The Bidder must demonstrate Resources access to, or availability of, financial resources such as liquid assets, unencumbered real assets, lines of credit, Must meet and other financial means, _________ Must meet other than any contractual percent _________ advance payments to meet: Must meet Must meet (_____%) of percent Form FIN –3.3 (i) the following cash-flow requirement requirement the (_____%) of requirement: requirement the ZMW 150,000.00 requirement and (ii) the overall cash flow requirements for this contract and its concurrent commitments. Section III - Evaluation and Qualification Criteria 1-39 2.4 Experience Factor Criteria Bidder Documentation Sub-Factor Joint Venture, Consortium or Required Requirement Association Single Entity All partners Each At least one combined partner partner 2.4.1 General Experience under contracts in Experience the role of contractor, subcontractor, or management contractor for at least the last Must meet Must meet three [3] years prior to the requirement N / A requirement N / A Form EXP-4.1 applications submission deadline, and with activity in at least nine (9) months in each year. 2.4.2 Specific (a)Participation as contractor, Experience management contractor, or subcontractor, in at least two (2) contracts within the last five (5) years , each with a value of at least seventy percent (70%), Must meet Must meet that have been successfully and Must meet requirements requirement Form EXP 2.4.2(a) substantially completed and that N / A requirement for all for one are similar to the proposed characteristics characteristic Works. The similarity shall be based on the physical size, complexity, methods/technology or other characteristics as described in Section VI, Employer’s 1-40 Section III - Evaluation and Qualification Criteria 2.4 Experience Factor Criteria Bidder Documentation Sub-Factor Joint Venture, Consortium or Required Requirement Association Single Entity All partners Each At least one combined partner partner Requirements. 2.4.2 Specific b) For the above or other Experience contracts executed during the period stipulated in 2.4.2(a) Must meet Must meet above, a minimum experience Must meet requirements N / A requirements Form EXP-2.4.2(b) in the following key activities: requirements projects involving supply and installation of equipment related to water projects Section III - Evaluation and Qualification Criteria 1-41 1-41 2.5 Personnel The Bidder must demonstrate that it will have the personnel for the key positions that meet the following requirements: Total Work Similar In Similar Works Experience No. Position Experience (years) (years) 1 A Project Manager with a 5Years 5 years experience in works Bachelor’s Degree in Civil or Water of an equivalent nature and Engineering related field and shall volume, (copies of be a member of the Engineering certificates and CV should Institution of Zambia and be submitted together with registered with the Engineering the bid). Registration Board or be eligible for both 2 A site engineer with a Diploma in 3 years 3 years experience in works Civil or Water Engineering related of an equivalent nature and field or Diploma in Civil or Water volume (copies of Engineering and shall be a member certificates and CV should of the Engineering Institution of be submitted together with Zambia and registered with the the bid). Engineering Registration Board or be eligible for both. The Bidder shall provide details of the proposed personnel and their experience records in the relevant Forms included in Section IV, Bidding Forms. 1-42 Section 3 - Evaluation and Qualification Criteria 2.6 Equipment The Bidder must demonstrate that it will have access to the key Contractor’s equipment listed hereafter: No. Equipment Type and Characteristics Minimum Number required 1 01 No. 4 ton truck 2 01 No.Jack Hammer 33 01 No.Back hole (4m) Excavator 34 01 No.Compacting Machine(3m/min), 5 01 No.Towed Compressor 6 01 No. Tipper Truck (11 ton), The Bidder shall provide further details of proposed items of equipment using the relevant Form in Section IV. 1-43 Section IV - Bidding Forms Table of Forms Letter of Bid........................................................................................................................ 1-44 Schedules ............................................................................................................................. 1-46 Bill of Quantities/ Schedules of Prices ............................................................................. 1-46 Table(s) of Adjustment Data ............................................................................................. 1-47 Form of Bid Security (Bank Guarantee) ......................................................................... 1-48 Form of Bid Security (Bid Bond) ...................................................................................... 1-49 Form of Bid-Securing Declaration ................................................................................... 1-50 Technical Proposal ............................................................................................................. 1-51 Technical Proposal Forms ................................................................................................. 1-51 Forms for Personnel .......................................................................................................... 1-52 Forms for Equipment ........................................................................................................ 1-54 Bidder’s Qualification ....................................................................................................... 1-55 Bidder Information Sheet .................................................................................................. 1-56 Party to JV Information Sheet ........................................................................................... 1-57 Historical Contract Non-Performance .............................................................................. 1-58 Current Contract Commitments / Works in Progress ....................................................... 1-59 Financial Situation ............................................................................................................ 1-60 Average Annual Turnover ................................................................................................ 1-62 Financial Resources .......................................................................................................... 1-63 General Experience ........................................................................................................... 1-64 Specific Experience ........................................................................................................... 1-65 Specific Experience in Key Activities .............................................................................. 1-67 1-44 Section IV - Bidding Forms Letter of Bid The Bidder must prepare the Letter of Bid on stationery with its letterhead clearly showing the Bidder’s complete name and address. Note: All italicized text is for use in preparing these form and shall be deleted from the final products. Date: _______________ Bidding No.: _______________ Invitation for Bid No.: _______________ To: 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) Clause 8; (b) We offer to execute in conformity with the Bidding Documents the following Works: ____________________________________________________________________; (c) The total price of our Bid, excluding any discounts offered in item (d) below is: ___________________________; (d) The discounts offered and the methodology for their application are: _____________; (e) Our bid shall be valid for a period of ________ [insert validity period as specified in ITB 18.1.] 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 price adjustment provisions apply, the Table(s) of Adjustment Data shall be 6considered part of this Bid; (g) If our bid is accepted, we commit to obtain a performance security in accordance with the Bidding Document; (h) Our firm, including any subcontractors or suppliers for any part of the Contract, have nationalities from eligible countries; 6 Include if price adjustment provisions apply in the Contract in accordance with PCC Sub-Clause 13.8 Adjustments for Changes in Cost. Section IV - Bidding Forms 1-45 (i) 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; (j) We are not participating, as a Bidder or as a subcontractor, in more than one bid in this bidding process in accordance with ITB 4.3, other than alternative offers submitted in accordance with ITB 13; (k) Our firm, its affiliates or subsidiaries, including any Subcontractors or Suppliers for any part of the contract, has not been declared ineligible by ZPPA or by an act of compliance with a decision of the United Nations Security Council; (l) We are not a government owned entity / We are a government owned entity but meet 7the requirements of ITB 4.5; (m) We have paid, or will pay the following commissions, gratuities, or fees with respect 8to the bidding process or execution of the Contract: Name of Recipient Address Reason Amount (n) 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; (o) We understand that you are not bound to accept the best-evaluated bid or any other bid that you may receive; and (p) If awarded the contract, the person named below shall act as Contractor’s Representative: ________________________________________________________ Name: In the capacity of: Signed: Duly authorized to sign the Bid for and on behalf of: Date: 7 Use one of the two options as appropriate. 8 If none has been paid or is to be paid, indicate “none”. 1-46 Section IV - Bidding Forms Schedules Bill of Quantities/ Schedules of Prices 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. The Employer should insert the names of each Section of the Works. A B C D Rate of Percentage of Local Currency Name of Payment Amount of Exchange Net Bid Price (NBP) Equivalent Currency Currency to Local 100xC C = A x B Currency NBP Local currency 1.00 Foreign Currency #1 Foreign Currency #2 Foreign Currency #3 Net Bid Price 100.00 Provisional Sums Expressed in Local 1.00 Currency BID PRICE Section IV - Bidding Forms 1-47 Table(s) of Adjustment Data Table A - Local Currency Bidder’s Bidder’s Index Index Source of Base Value Local Currency Proposed Code Description Index and Date Amount Weighting Nonadjustable — — — A: B: C: D: E: Total 1.00 Table B - Foreign Currency Name of Currency: _______________ If the Bidder wishes to quote in more than one foreign currency, this table should be repeated for each foreign currency. Bidder’s Bidder’s Index Index Source of Base Value Equivalent in Currency in Proposed Code Description Index and Date FC1 Type/Amount Weighting — — — A: Nonadjustable B: C: D: E: Total 1.00 1-48 Section IV - Bidding Forms Form of Bid Security (Bank Guarantee) __________________________ [Bank’s Name, and Address of Issuing Branch or Office] Beneficiary: __________________________ [Name and Address of Employer] Date: __________________________ BID GUARANTEE 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 figures] (____________) [amount in words] 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 Form of Bid; or (b) 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 Form, if required, or (ii) fails or refuses to furnish the performance security, in accordance with the ITB. This guarantee will expire: (a) if the Bidder is the successful Bidder, upon our receipt of copies of the contract signed by the Bidder and the performance security issued to you upon the instruction of the Bidder; and (b) if the Bidder is not the successful Bidder, upon the earlier of (i) our receipt of a copy your notification to the Bidder of the name of the successful Bidder; or (ii) twenty-eight 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. _____________________________ [signature(s)] Section IV - Bidding Forms 1-49 Form of Bid Security (Bid Bond) BOND NO. ______________________ BY THIS BOND [name of Bidder] as Principal (hereinafter called ―the Principal‖), and [name, legal title, and address of surety], authorized to transact business in [name of country of Employer], as Surety (hereinafter called ―the Surety‖), are held and firmly bound unto [name of Employer] as Obligee (hereinafter called ―the Employer‖) in the sum of 9[amount of Bond] [amount in words], for the payment of which sum, well and truly to be made, we, the said Principal and Surety, bind ourselves, our successors and assigns, jointly and severally, firmly by these presents. WHEREAS the Principal has submitted a written Bid to the Employer dated the ___ day of ______, 20__, for the construction of [name of Contract] (hereinafter called the ―Bid‖). NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION is such that if the Principal: (a) withdraws its Bid during the period of bid validity specified in the Form of Bid; or (b) 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 Form, if required; or (ii) fails or refuses to furnish the Performance Security in accordance with the Instructions to Bidders; then the Surety undertakes to immediately pay to the Employer up to the above amount upon receipt of the Employer’s first written demand, without the Employer having to substantiate its demand, provided that in its demand the Employer shall state that the demand arises from the occurrence of any of the above events, specifying which event(s) has occurred. The Surety hereby agrees that its obligation will remain in full force and effect up to and including the date 28 days after the date of expiration of the Bid validity as stated in the Invitation to Bid or extended by the Employer at any time prior to this date, notice of which extension(s) to the Surety being hereby waived. IN TESTIMONY WHEREOF, the Principal and the Surety have caused these presents to be executed in their respective names this ____ day of ____________ 20__. Principal: _______________________ Surety: _____________________________ Corporate Seal (where appropriate) _______________________________ ____________________________________ (Signature) (Signature) (Printed name and title) (Printed name and title) 9 The amount of the Bond shall be denominated in the currency of the Employer’s country or the equivalent amount in a freely convertible currency. 1-50 Section IV - Bidding Forms Form of Bid-Securing Declaration Date: [insert date (as day, month and year)] Bid No.: [insert number of bidding process] Alternative No.: [insert identification No if this is a Bid for an alternative] To: [insert complete name of 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 Government for the period of time of [insert number of months or years] starting on [insert date], 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) 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, or (ii) fail or refuse to furnish the Performance Security, in accordance with the ITB. We understand 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) twenty-eight 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 Bidder] Dated on ____________ day of __________________, _______ [insert date of signing] 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.] Section IV - Bidding Forms 1-51 Technical Proposal Technical Proposal Forms Personnel Equipment Site Organization Method Statement Mobilization Schedule Construction Schedule Others 1-52 Section IV - Bidding Forms Forms for Personnel Form PER – 1: Proposed Personnel Bidders should provide the names of suitably qualified personnel to meet the specified requirements for each of the positions listed in Section III (Evaluation and Qualification Criteria). The data on their experience should be supplied using the Form 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 Section IV - Bidding Forms 1-53 Form PER – 2: Resume of Proposed Personnel The Bidder shall provide all the information requested below. Fields with asterix (*) shall be used for evaluation. Position* Personnel Name * Date of birth information Professional qualifications Name of Employer Present employment Address of Employer Telephone Contact (manager / personnel officer) Fax E-mail Years with present Employer Job title Summarize professional experience in reverse chronological order. Indicate particular technical and managerial experience relevant to the project. From* To* Company, Project , Position, and Relevant Technical and Management Experience* 1-54 Section IV - Bidding Forms Forms for Equipment The Bidder shall provide adequate information to demonstrate clearly that it has the capability to meet the requirements for the key equipment listed in Section III (Evaluation and Qualification Criteria). A separate Form shall be prepared for each item of equipment listed, or for alternative equipment proposed by the Bidder. The Bidder shall provide all the information requested below, to the extent possible. Fields with asterisk (*) shall be used for evaluation. Type 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 The following information shall be provided only for equipment not 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 Section IV - Bidding Forms 1-55 Bidder’s Qualification To establish its qualifications to perform the contract in accordance with Section III (Evaluation and Qualification Criteria) the Bidder shall provide the information requested in the corresponding Information Sheets included hereunder 1-56 Section IV - Bidding Forms Form ELI 1.1 Bidder Information Sheet Date: ______________________ Bidding No.: ________________ Invitation for Bid No.: ________ Page ________ of _______ pages 1. Bidder’s Legal Name 2. In case of JV, legal name of each party: 3. Bidder’s actual or intended Country of Registration: 4. Bidder’s Year of Registration: 5. Bidder’s Legal Address in Country of Registration: 6. Bidder’s Authorized Representative Information Name: Address: Telephone/Fax numbers: Email Address: 7. Attached are copies of original documents of: Articles of Incorporation or Registration of firm named in 1, above, in accordance with ITB Sub-Clauses 4.1 and 4.2. In case of JV, letter of intent to form JV including a draft agreement, or JV agreement, in accordance with ITB Sub-Clauses 4.1 In case of government owned entity from the Employer’s country, documents establishing legal and financial autonomy and compliance with the principles of commercial law, in accordance with ITB Sub-Clause 4.5. Section IV - Bidding Forms 1-57 Form ELI 1.2 Party to JV Information Sheet Date: ______________________ Bidding No.: ___________________ Invitation for Bid No.:_________ Page ________ of_ ______ pages 1. Bidder’s Legal Name: 2. JV’s Party legal name: 3. JV’s Party Country of Registration: 4. JV’s Party Year of Registration: 5. JV’s Party Legal Address in Country of Registration: 6. JV’s Party Authorized Representative Information Name: Address: Telephone/Fax numbers: Email Address: 7. Attached are copies of original documents of: ,,Articles of Incorporation or Registration of firm named in 1, above, in accordance with ITB Sub-Clauses 4.1 and 4.2. In case of government owned entity from the Purchaser’s country, documents establishing legal and financial autonomy and compliance with the principles of commercial law, in accordance with ITB Sub-Clause 4.5. 1-58 Section IV - Bidding Forms Form CON – 2 Historical Contract Non-Performance Bidder’s Legal Name: _______________________ Date: _____________________ JV Partner Legal Name: _______________________ ___________________ Bidding No.: __________________ Page _______ of _______ pages Non-Performing Contracts in accordance with (Evaluation and Qualification Criteria) Contract non-performance did not occur during the stipulated period, in accordance with Sub-Factor 2.2.1 of Section III (Evaluation and Qualification Criteria) Contract non-performance during the stipulated period, in accordance with Sub-Factor 2.2.1 of Section III(Evaluation and Qualification Criteria). Total Contract Year Outcome as Amount (current Percent of Contract Identification value, Total Assets US$ equivalent) Contract Identification: ______ ______ Name of Employer: ___________ Address of Employer: Matter in dispute: Pending Litigation, in accordance with Section III (Evaluation and Qualification Criteria) No pending litigation in accordance with Sub-Factor 2.2.2 of Section III(Evaluation and Qualification Criteria) Pending litigation in accordance with Sub-Factor 2.2.2 of Section III(Evaluation and Qualification Criteria), as indicated below Total Contract Year Outcome as Amount (current Percent of Contract Identification value, Total Assets US$ equivalent) Contract Identification: ______ ______ Name of Employer: ___________ Address of Employer: Matter in dispute: Contract Identification: ______ ______ Name of Employer: ___________ Address of Employer: Matter in dispute: Section IV - Bidding Forms 1-59 Form CCC Current Contract Commitments / Works in Progress Bidders and each partner to a JV 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. Name of contract Employer, Value of Estimated Average monthly contact outstanding work completion date invoicing over address/tel/fax (current last six months US$ equivalent) (US$/month) 1. 2. 3. 4. 5. etc. 1-60 Section IV - Bidding Forms Financial Situation Historical Financial Performance Bidder’s Legal Name: _______________________ Date: _____________________ JV Partner Legal Name: _______________________ Bidding No.: __________________ Page _______ of _______ pages To be completed by the Bidder and, if JV, by each partner Financial Historic information for previous ______ (__) years information in (US$ equivalent in 000s) US$ equivale nt Year 1 Year 2 Year 3 Year … Year n Avg. Avg. Ratio Information from Balance Sheet Total Assets (TA) Total Liabilities (TL) Net Worth (NW) Current Assets (CA) Current Liabilities (CL) Information from Income Statement Total Revenue (TR) Profits Before Taxes (PBT) Section IV - Bidding Forms 1-61 Attached are copies of financial statements (balance sheets, including all related notes, and income statements) for the years required above complying with the following conditions: , Must reflect the financial situation of the Bidder or partner to a JV, and not sister or parent companies , Historic financial statements must be audited by a certified accountant , Historic financial statements must be complete, including all notes to the financial statements , Historic financial statements must correspond to accounting periods already completed and audited (no statements for partial periods shall be requested or accepted) 1-62 Section IV - Bidding Forms Form FIN – 3.2 Average Annual Turnover Bidder’s Legal Name: ___________________________ Date: _____________________ JV Partner Legal Name: ____________________________ Bidding No.: ______________ Page _______ of _______ pages Annual turnover data (construction only) Year Amount and Currency US$ equivalent _________________________________________ ____________________ _________________________________________ ____________________ _________________________________________ ____________________ _________________________________________ ____________________ _________________________________________ ____________________ *Average _________________________________________ ____________________ Annual Construction Turnover *Average annual turnover calculated as total certified payments received for work in progress or completed over the number of years specified in Section III (Evaluation and Qualification Criteria), Sub-Factor 2.3.2, divided by that same number of years. Section IV - Bidding Forms 1-63 Form FIN3.3 Financial Resources Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of credit, and other financial means, net of current commitments, available to meet the total construction cash flow demands of the subject contract or contracts as indicated in Section III (Evaluation and Qualification Criteria) Source of financing Amount (US$ equivalent) 1. 2. 3. 4. 1-64 Section IV - Bidding Forms Experience General Experience Bidder’s Legal Name: ____________________________ Date: _____________________ JV Partner Legal Name: ____________________________ Bidding No.: ________________ Page _______ of _______ pages Starting Ending Contract Identification Role of Month / Month / Bidder Year Year Years* Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: Contract name: ______ ______ Brief Description of the Works performed by the _________ Bidder: Name of Employer: Address: *List calendar year for years with contracts with at least nine (9) months activity per year starting with the earliest year Section IV - Bidding Forms 1-65 Form EXP – 2.4.2(a) Specific Experience Bidder’s Legal Name: ___________________________ Date: _____________________ JV Partner Legal Name: _________________________ Bidding No.: __________________ Page _______ of _______ pages Similar Contract Number: ___ [insert Information specific number] of ___[insert total number of contracts required. Contract Identification _______________________________________ Award date _______________________________________ Completion date _______________________________________ Role in Contract Contractor Management Subcontractor Contractor Total contract amount __________________________US$_______ __ ___ If partner in a JV or subcontractor, specify participation of total contract __________% _____________ US$_______ amount Employer’s Name: _______________________________________ Address: _______________________________________ _______________________________________ Telephone/fax number: _______________________________________ E-mail: _______________________________________ 1-66 Section IV - Bidding Forms Form EXP – 2.4.2(a) (cont.) Specific Experience (cont.) Bidder’s Legal Name: ___________________________ Page _______ of _______ pages JV Partner Legal Name: ___________________________ Similar Contract No. __[insert specific Information number] of ___[insert total number of contracts] required Description of the similarity in accordance with Sub-Factor 2.4.2a) of Section III (Evaluation and Qualification Criteria): Amount _________________________________ Physical size _________________________________ Complexity _________________________________ Methods/Technology _________________________________ Physical Production Rate _________________________________ Section IV - Bidding Forms 1-67 Form EXP – 2.4.2(b) Specific Experience in Key Activities Bidder’s Legal Name: ___________________________ Date: _____________________ JV Partner Legal Name: _________________________ Bidding No.: __________________ Subcontractor’s Legal Name: ______________ Page _______ of _______ pages Information Contract Identification _______________________________________ Award date _______________________________________ Completion date _______________________________________ Role in Contract Contractor Management Subcontractor Contractor Total contract amount _________________________ US$________ If partner in a JV or subcontractor, specify participation of total contract __________% _____________ US$________ amount Employer’s Name: _______________________________________ Address: _______________________________________ _______________________________________ Telephone/fax number: _______________________________________ E-mail: _______________________________________ 1-68 Section IV - Bidding Forms Form EXP – 2.4.2 (b)(cont.) Specific Experience in Key Activities (cont.) Bidder’s Legal Name: ___________________________ Page _______ of _______ pages JV Partner Legal Name: ___________________________ Subcontractor’s Legal Name: __________________________ Information Description of the key activities in accordance with Sub-Factor 2.4.2b) of Section III (Evaluation and Qualification Criteria): 2-1 Section V - Eligible Countries Eligibility for the Provision of Goods, Works and Services in Bank-Financed Procurement 1. In accordance with Section 61 of the Public Procurement Act No. 12 of 2008 and Clause 155 of the Public Procurement Regulations of 2011, the Government permits firms and individuals from all countries to offer goods, works and services for Government-financed projects. As an exception, firms of a Country or goods manufactured in a Country may be excluded if: (i): as a matter of law or official regulation, Government prohibits commercial relations with that Country, provided that Cooperating Partners involved are satisfied that such exclusion does not preclude effective competition for the supply of the Goods or Works required, or (ii): 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 Government prohibits any import of goods from that Country or any payments to persons or entities in that Country. 2. For the information of bidders, at the present time firms, goods and services from the following countries are excluded from this bidding: _________________________ _________________________ _________________________ _________________________ 1-2 Section IV - Bidding Forms PART 2 – Employer’s Requirements 3-1 Section VI - Employer’s Requirements Table of Contents Bill of Quantities ................................................................................ 2-错误～未定义书签。 Drawings ............................................................................................. 2-错误～未定义书签。 upplementary Information ............................................................. 2-错误～未定义书签。 S 1-2 Section IV - Bidding Forms Section VI: Bill of Quantities (BOQ) LOT 1: SUPPLY, DELIVERY AND INSTALLATION OF TWO (2No) ELEVATED STEEL TANKS AT WOODLANDS SITE IN LUSAKA. Bill No. 1 PRELIMINARY AND GENERAL ITEMS Amount (ZMW) Rate Total Item Description Unit Qty 1 Preliminaries and General 1.1 Contractual Requirements 1.1.1 Advance Payment Bond Sum 1.1.2 Performance Guarantee Sum 1.1.3 Insurance of Works Sum 1.1.4 Insurance against damage to persons and property Sum 1.1.5 Third party Insurance Sum 1.1.6 Worker’s Insurance Sum 1.2 General Requirements 1.2.1 Establish, Operate and Maintain the Contractor’s plant, including mobilization and demobilization of all required plant, site infrastructure, equipment/tools, machinery and personnel and their accommodation. Sum 1.2.2 Provide and erect sign board at site of works all in accordance with the specifications. No. 1 1.3 Other Provisional Sums 1.3.1 Standing time during traffic and road cutting Hr 12 Total Preliminary and General Carried to Main Bill Summary Section IV - Bidding Forms 1-3 Bill No 2: Supply, Delivery and Installation of Elevated Tanks (Reservoirs x 02) at Woodlands Site Amount (ZMW) Rate Total Item Description Unit Qty 3.1 Earth Works/Concrete Works 3.1.1 Excavate topsoil to maximum depth 300mm and dispose off within 200m radius of the site 3m 200 3.1.2 Supply imported laterite from approved burrow pit, haul within 5km radius of the site, deposit, shape and compact fill to level surface, maximum depth 300mm 3150 m 3.1.3 Excavate two (2) 11000mm long, 11000mm wide foundations to stable ground formation over site to receive reinforced concrete base for the tank stand 3250 m 3.1.4 Select excavated material, fill, water and compact in layers not exceeding 150mm thick around the two cast reinforced concrete base. 38 m 3.1.5 Supply, mix, place and vibrate grade 30 reinforced concrete or as provided and approved by the tank manufacturer based on the tank weight, height and 3total anticipated load. 140 m Earth Works/Concrete Works Carried to Summary 3.3 Elevated Steel Tank (Reservoir) Supply and install steel tanks to be constructed from 1220m x 1220mm hot dip galvanised plates at least 4.5mm thick with 3mm thick roof panels. The tanks shall be 8 panels long and 8 panels wide with a height of 3 panels. The tanks shall meet the following minimum requirements: All steel components including the high tensile grade bolts for fastening shall be hot dip galvanized. The tank shall have an external caged access ladder, internal access ladder, hinged lockable manhole, Float for each inlet, pointer type water level indicator. The internal tank bracing shall be of angle irons hot dip galvanized. All sealants shall be non toxic, non tainting EPDM grade rubber gasket. All flanges for pipe connections shall be to BS 4504 and 10 bar pressure rating. Provide two (2) 160mm inlet points on two sides of the tank. All the two inlet points should be externally and internally flanged. Provide for a 250mm flanged outlet 200m above the tank base. 3.2.1 Provide wash out and overflow as per normal practice. Item 2 1-4 Section IV - Bidding Forms Supply and install 15m high hot dip galvanized steel towers as tank stands with caged access ladder to connect to the access ladder on the tanks, with a rest platform at 2m below the tank bases. (All materials hot dip galvanized steel). 3.2.2 Item 2 Supply and install hot dip galvanized steel grating walkway round the tanks with handrails as designed and provided by the tank manufacturer. (All materials 3.2.3 hot dip galvanized steel). m 100 Supply and install 160mm galvanised steel pipes to run from the nearest connecting point from the supply lines to the two inlets of the tank. Pipes to run 500mm below surface. 3.2.4 m 200 Supply and install 250mm galvanised steel pipes to run from the tank outlet to connect to the distribution mains. Pipes to run 500mm below surface. 3.2.5 m 300 Allow for connecting the 160mm GI pipes from the tank inlet to the 160mm GI pipe line from the supply line. 3.2.6 No. 4 Allow for connecting the 250mm GI pipes from the tank outlet to the 250mm uPVC and 200mm uPVC 3.2.7 transmission lines. No. 2 Supply, mix and place 20MPa mass concrete thrust blocks to all pipe bends, tees and caps, rate to include extra excavations and shutters as per drawing No. 3.2.8 GEN/2014/WR-01 No. 12 Elevated Steel Tank (Reservoirs) Works Carried to Summary Total for Supply, Delivery and Installation of Elevated Tanks (Reservoirs x 02) at Woodlands Site Carried to Main Bill Summary Section IV - Bidding Forms 1-5 LOT 2: SUPPLY, DELIVERY AND INSTALLATION OF ONE (1NO) ELEVATED STEEL TANK AT HILLVIEW SITE. Bill No. 1 PRELIMINARY AND GENERAL ITEMS Amount (ZMW) Rate Total Item Description Unit Qty 1 Preliminaries and General 1.1 Contractual Requirements 1.1.1 Advance Payment Bond Sum 1.1.2 Performance Guarantee Sum 1.1.3 Insurance of Works Sum 1.1.4 Insurance against damage to persons and property Sum 1.1.5 Third party Insurance Sum 1.1.6 Worker’s Insurance Sum 1.2 General Requirements 1.2.1 Establish, Operate and Maintain the Contractor’s plant, including mobilization and demobilization of all required plant, site infrastructure, equipment/tools, machinery and personnel and their accommodation. Sum 1.2.2 Provide and erect sign board at site of works all in accordance with the specifications. No. 1 1.3 Other Provisional Sums 1.3.1 Standing time during traffic and road cutting Hr 12 Total Preliminary and General Carried to Main Bill Summary 1-6 Section IV - Bidding Forms Bill No 2: Supply, Delivery and Installation of Elevated Tank (Reservoir) at Hillview Site Amount (ZMW) Rate Total Item Description Unit Qty 2.1 Earth Works/Concrete Works Excavate topsoil to maximum depth 300mm and dispose off within 200m radius of the site 32.1.1 m 250 2.1.2 Supply imported laterite from approved burrow pit, haul up within 5km radius of the site, deposit, shape and compact fill to level surface, maximum depth 330 300mm m 2.1.3 Excavate 13000mm long, 13000mmwide stable ground formation over site to receive reinforced 3100 concrete for the tank stand m 2.1.4 Select excavated material, fill, water and compact in layers not exceeding 150mm thick around the cast reinforced concrete base. 34 m 2.1.5 Supply, mix, place and vibrate grade 30 reinforced concrete or as provided and approved by the tank manufacturer based on the tank weight, height and 3120 total anticipated load. m Earth Works/Concrete Works Carried to Summary 2.2 Elevated Steel Tank (Reservoir) Supply and install steel tank to be constructed from 1220m x 1220mm hot dip galvanised plates at least 4.5mm thick with 3mm thick roof panels. The tank shall be 11 panels long and 7 panels wide with a height of 3 panels. The tank shall meet the following minimum requirements: All steel components including the high tensile grade bolts for fastening shall be hot dip galvanized. The tank shall have an external caged access ladder, internal access ladder, hinged lockable manhole, Float for each inlet, pointer type water level indicator. The internal tank bracing shall be of angle irons hot dip galvanized. All sealants shall be non toxic, non tainting EPDM grade rubber gasket. All flanges for pipe connections shall be to BS 4504 and 10 bar pressure rating. Provide two (2) 160mm inlet points on two sides of the tank. All the two inlet points should be externally and internally flanged. Provide for a 250mm flanged outlet 200m above the tank base. Provide wash out and overflow as per normal practice. 2.2.1 Item 1 Section IV - Bidding Forms 1-7 Supply and install 8m high hot dip galvanized steel tower as tank stand with caged access to connect to the access ladder on the tank, with a rest platform at 2m below the tank base. (All materials hot dip galvanized steel). 2.2.2 Item 1 Supply and install hot dip galvanized steel grating walkway round the tank with handrails as designed and provided by the tank manufacturer. (All materials 2.2.3 hot dip galvanized steel). m 60 Supply and install 160mm galvanised steel pipes to run from the nearest connecting point from the supply lines to the two inlets of the tank. Pipes to run 500mm below surface. 2.2.4 m 90 Supply and install 250mm galvanised steel pipes to run from the tank outlet to connect to the rising main. Pipes to run 500mm below surface. 2.2.5 No. 100 Allow for connecting the 160mm GI pipes from the tank inlet to the 160mm GI pipe line from the supply 2.2.6 line. No. 2 Allow for connecting the 250mm GI pipes from the 2.2.7 tank outlet to the 250mm uPVC transmission line. No. 1 Supply, mix and place 20MPa mass concrete thrust blocks to all pipe bends, tees and caps, rate to include extra excavations and shutters as per drawing No. 2.2.8 GEN/2014/HVR-01 No. 11 Elevated Steel Tank (Reservoir) Works Carried to Summary Total for Supply, Delivery and Installation of Elevated Tank (Reservoir) at Hillview Site Carried to Main Bill Summary 1-8 Section IV - Bidding Forms LOT 3: SUPPLY, DELIVERY AND INSTALLATION OF ELEVATED STEEL TANK AT CHAINDA SITE Bill No. 1 PRELIMINARY AND GENERAL ITEMS Amount (ZMW) Rate Total Item Description Unit Qty 1 Preliminaries and General 1.1 Contractual Requirements 1.1.1 Advance Payment Bond Sum 1.1.2 Performance Guarantee Sum 1.1.3 Insurance of Works Sum 1.1.4 Insurance against damage to persons and property Sum 1.1.5 Third party Insurance Sum 1.1.6 Worker’s Insurance Sum 1.2 General Requirements 1.2.1 Establish, Operate and Maintain the Contractor’s plant, including mobilization and demobilization of all required plant, site infrastructure, equipment/tools, machinery and personnel and their accommodation. Sum 1.2.2 Provide and erect sign board at site of works all in accordance with the specifications. No. 1 1.3 Other Provisional Sums 1.3.1 Standing time during traffic and road cutting Hr 12 Total Preliminary and General Carried to Main Bill Summary Section IV - Bidding Forms 1-9 Bill No 2: Supply, Delivery and Installation of Elevated Tank in Chainda Amount (ZMW) Rate Total Item Description Unit Qty 2.1 Earth Works/Concrete Works Excavate topsoil to maximum depth 300mm and dispose off within 200m radius of the site 3 2.1.1 m 30 2.1.2 Supply imported laterite from approved burrow pit, haul up within 5km radius of the site, deposit, shape and compact fill to level surface, 3 30 maximum depth 300mm m 2.1.3 Excavate 10000mm long, 10000mmwide stable ground formation over site to receive reinforced 3 100 concrete for the tank stand m 2.1.4 Select excavated material, fill, water and compact in layers not exceeding 150mm thick 1 around the cast reinforced concrete base. Each 2.1.5 Supply, mix, place and vibrate grade 30 reinforced concrete or as provided and approved by the tank manufacturer based on the tank weight, height and total anticipated 1 load. Each Earth Works/Reinforced Concrete Works Carried to Summary 2.2 Elevated Steel Tank (Reservoir) Supply and install steel tank to be constructed from 1220m x 1220mm hot dip galvanised plates at least 4.5mm thick with 3mm thick roof panels. The tank shall be 5 panels long and 4 panels wide with a height of 3 panels. The tank shall meet the following minimum requirements: All steel components including the high tensile grade bolts for fastening shall be hot dip galvanized. The tank shall have an external caged access ladder, internal access ladder, hinged lockable manhole, Float for each inlet, pointer type water level indicator. The internal tank bracing shall be of angle irons hot dip galvanized. All sealants shall be non toxic, non tainting EPDM grade rubber gasket. All flanges for pipe connections shall be to BS 4504 and 10 bar pressure rating. Provide one (1) 160mm inlet point of the tank. Provide for a 160mm flanged outlet 200m above the tank base. Provide wash out and overflow as per normal 2.2.1 practice. Each 1 1-10 Section IV - Bidding Forms Supply and install 12m high hot dip galvanized steel tower as tank stand with caged access to connect to the access ladder on the tank, with a rest platform at 2m below the tank base. (All materials hot dip galvanized steel). 2.2.2 Each 1 Supply and install hot dip galvanized steel grating walkway round the tank with handrails as designed and provided by the tank manufacturer. (All materials hot dip galvanized 2.2.3 steel). Each 1 Supply and install 160mm galvanised steel pipes to run from the nearest connecting point from the supply lines to the inlets of the tank. 2.2.4 Pipes to run 500mm below surface. Each 1 Supply and install 160mm galvanised steel pipes to run from the tank outlet to connect to the rising main. Pipes to run 500mm below 2.2.5 surface. Each 1 Allow for connecting the 160mm GI pipes from the tank inlet to the 160mm GI pipe line from 2.2.6 the supply line. Each 1 Allow for connecting the 200mm GI pipes from the tank outlet to the 200mm HDPE 2.2.7 transmission line. m 60 Supply, mix and place 20MPa mass concrete thrust blocks to all pipe bends, tees and caps, 2.2.8 rate to include extra excavations and shutters Item 1 Elevated Steel Tank Works Carried to Summary Total for Supply, Delivery and Installation of Elevated Tank at Chainda Site Carried to Main Bill Summary Section IV - Bidding Forms 1-11 MAIN BILL SUMMARY- LOT 1 Bill No. Description Amount (ZMK) 1 Preliminary & General Woodlands Site Elevated Tank Installation works 2 Sub-total VAT @ 16% Contingencies to be added or omitted as directed by the Client to the above Sub-total at 10% TOTAL CARRIED TO FORM OF TENDER MAIN BILL SUMMARY- LOT 2 Bill No. Description Amount (ZMK) 1 Preliminary & General Hillview Site Elevated Tank Installation works 2 Sub-total VAT @ 16% Contingencies to be added or omitted as directed by the Client to the above Sub-total at 10% TOTAL CARRIED TO FORM OF TENDER MAIN BILL SUMMARY- LOT 3 Bill No. Description Amount (ZMK) 1 Preliminary & General Chainda Site Elevated Tank Installation works 2 Sub-total VAT @ 16% Contingencies to be added or omitted as directed by the Client to the above Sub-total at 10% TOTAL CARRIED TO FORM OF TENDER 1-12 Section IV - Bidding Forms PART 3 – Conditions of Contract and Contract Forms 3-13 Section VII. General Conditions of Contract These 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. These General Conditions of Contract have been developed on the basis of considerable international experienc0e in the drafting and management of contracts, bearing in mind a trend in the construction industry towards simpler, more straightforward language. The GCC can be used for both smaller admeasurement contracts and lump sum contracts. 3-14 Section VII – General Conditions of Contract Table of Clauses A. General ............................................................................................................................. 16 1. Definitions....................................................................................................................16 2. Interpretation ................................................................................................................18 3. Language and Law .......................................................................................................19 4. Project Manager’s Decisions .......................................................................................19 5. Delegation ....................................................................................................................19 6. Communications ..........................................................................................................19 7. Subcontracting .............................................................................................................19 8. Other Contractors .........................................................................................................19 9. Personnel and Equipment ............................................................................................20 10. Employer’s and Contractor’s Risks .............................................................................20 11. Employer’s Risks .........................................................................................................20 12. Contractor’s Risks ........................................................................................................21 Insurance ......................................................................................................................21 13. 14. Site Data .......................................................................................................................22 15. Contractor to Construct the Works ..............................................................................22 16. The Works to Be Completed by the Intended Completion Date .................................22 17. Approval by the Project Manager ................................................................................22 Safety 22 18. 19. Discoveries ...................................................................................................................22 20. Possession of the Site ...................................................................................................22 21. Access to the Site .........................................................................................................23 22. Instructions, Inspections and Audits ............................................................................23 23. Appointment of the Adjudicator ..................................................................................23 24. Procedure for Disputes .................................................................................................23 B. Time Control .................................................................................................................... 24 25. Program ........................................................................................................................24 26. Extension of the Intended Completion Date ................................................................24 27. Acceleration .................................................................................................................25 28. Delays Ordered by the Project Manager ......................................................................25 29. Management Meetings .................................................................................................25 30. Early Warning ..............................................................................................................25 C. Quality Control ............................................................................................................... 26 31. Identifying Defects.......................................................................................................26 32. Tests 26 33. Correction of Defects ...................................................................................................26 34. Uncorrected Defects.....................................................................................................26 D. Cost Control..................................................................................................................... 26 Section VII – General Conditions of Contract 3-15 35. Contract Price...............................................................................................................26 36. Changes in the Contract Price ......................................................................................27 37. Variations .....................................................................................................................27 38. Cash Flow Forecasts ....................................................................................................28 39. Payment Certificates ....................................................................................................28 40. Payments ......................................................................................................................29 41. Compensation Events...................................................................................................29 42. Tax 31 43. Currencies ....................................................................................................................31 44. Price Adjustment ..........................................................................................................31 45. Retention ......................................................................................................................31 46. Liquidated Damages ....................................................................................................32 47. Bonus 32 48. Advance Payment ........................................................................................................32 49. Securities ......................................................................................................................33 50. Dayworks .....................................................................................................................33 51. Cost of Repairs .............................................................................................................33 E. Finishing the Contract .................................................................................................... 33 52. Completion ...................................................................................................................33 53. Taking Over .................................................................................................................34 54. Final Account ...............................................................................................................34 55. Operating and Maintenance Manuals ..........................................................................34 56. Termination ..................................................................................................................34 57. Fraud and Corruption ...................................................................................................35 58. Payment upon Termination ..........................................................................................36 59. Property ........................................................................................................................37 60. Release from Performance ...........................................................................................37 61. Suspension of Contractor .............................................................................................37 3-16 Section VII – General Conditions of Contract General Conditions of Contract A. General 1.1 Boldface type is used to identify defined terms. 1. Definitions (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 23. (d) Bill of Quantities means the priced and completed Bill of Quantities forming part of the Bid. (e) Compensation Events are those defined in GCC Clause 41 hereunder. (f) The Completion Date is the date of completion of the Works as certified by the Project Manager, in accordance with GCC Sub-Clause 52.1. (g) 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 Sub- Clause 2.3 below. (h) The Contractor is the party whose Bid to carry out the Works has been accepted by the Employer. (i) The Contractor’s Bid is the completed bidding document submitted by the Contractor to the Employer. (j) The Contract Price is the Accepted Contract Amount stated in the Letter of Acceptance and thereafter as adjusted in accordance with the Contract. (k) Days are calendar days; months are calendar months. (l) 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 Section VII – General Conditions of Contract 3-17 Materials and Plant. (m) A Defect is any part of the Works not completed in accordance with the Contract. (n) The Defects Liability Certificate is the certificate issued by Project Manager upon correction of defects by the Contractor. (o) The Defects Liability Period is the period named in the PCC pursuant to Sub-Clause 33.1 and calculated from the Completion Date. (p) Adjudicator means the single person appointed under Clause 23. (q) Drawings means the drawings of the Works, as included in the Contract, and any additional and modified drawings issued by (or on behalf of) the Employer in accordance with the Contract, 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) “In writing” or ―written‖ means hand-written, type- written, printed or electronically made, and resulting in a permanent record; (u) The Initial Contract Price is the Contract Price listed in the Employer’s Letter of Acceptance. (v) 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. (w) Materials are all supplies, including consumables, used by the Contractor for incorporation in the Works. (x) Plant is any integral part of the Works that shall have a mechanical, electrical, chemical, or biological function. (y) 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 3-18 Section VII – General Conditions of Contract replacement of the Project Manager) who is responsible for supervising the execution of the Works and administering the Contract. (z) PCC means Particular Conditions of Contract (aa) The Site is the area defined as such in the PCC. (bb) 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. (cc) Specification means the Specification of the Works included in the Contract and any modification or addition made or approved by the Project Manager. (dd) 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. (ee) 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. (ff) Temporary Works are works designed, constructed, installed, and removed by the Contractor that are needed for construction or installation of the Works. (gg) A Variation is an instruction given by the Project Manager which varies the Works. (hh) The Works are what the Contract requires the Contractor to construct, install, and turn over to the Employer, as defined in the PCC. 2.1 In interpreting these GCC, words indicating one gender include 2. Interpretation all genders. Words indicating the singular also include the plural and words indicating the plural also include the singular. 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). 2.3 The documents forming the Contract shall be interpreted in the Section VII – General Conditions of Contract 3-19 following order of priority: (a) Agreement, (b) Letter of Acceptance, (c) Contractor’s Bid, (d) Particular Conditions of Contract, (e) General Conditions of Contract, (f) Specifications, (g) Drawings, 10(h) Bill of Quantities, and (i) any other document listed in the PCC as forming part of the Contract. 3.1 The language of the Contract and the law governing the Contract 3. Language and are stated in the PCC. Law 4.1 Except where otherwise specifically stated, the Project Manager 4. Project shall decide contractual matters between the Employer and the Manager’s Contractor in the role representing the Employer. Decisions 5.1 Otherwise specified in the PCC, the Project Manager may 5. Delegation delegate any of his duties and responsibilities to other people, except to the Adjudicator, after notifying the Contractor, and may revoke any delegation after notifying the Contractor. 6.1 Communications between parties that are referred to in the 6. Communica- Conditions shall be effective only when in writing. A notice tions shall be effective only when it is delivered. 7.1 The Contractor may subcontract with the approval of the Project 7. Subcontracting Manager, but may not assign the Contract without the approval of the Employer in writing. Subcontracting shall not alter the Contractor’s obligations. 8.1 The Contractor shall cooperate and share the Site with other 8. Other contractors, public authorities, utilities, and the Employer Contractors 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 10 In lump sum contracts, delete “Bill of Quantities” and replace with “Activity Schedule.” 3-20 Section VII – General Conditions of Contract shall notify the Contractor of any such modification. 9.1 The Contractor shall employ the key personnel and use the 9. Personnel and equipment identified in its Bid, to carry out the Works or other Equipment 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. 9.2 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 seven days and has no further connection with the work in the Contract. 10.1 The Employer carries the risks which this Contract states are 10. Employer’s Employer’s risks, and the Contractor carries the risks which this and Contract states are Contractor’s risks. Contractor’s Risks 11.1 From the Start Date until the Defects Liability Certificate has 11. Employer’s been issued, the following are Employer’s risks: 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. 11.2 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 Section VII – General Conditions of Contract 3-21 (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. 12.1 From the Starting Date until the Defects Liability Certificate has 12. Contractor’s been issued, the risks of personal injury, death, and loss of or Risks damage to property (including, without limitation, the Works, Plant, Materials, and Equipment) which are not Employer’s risks are Contractor’s risks. 13.1 The Contractor shall provide, in the joint names of the Employer 13. Insurance 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. 13.2 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. 13.3 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. 13.4 Alterations to the terms of an insurance shall not be made without the approval of the Project Manager. 13.5 Both parties shall comply with any conditions of the insurance policies. 3-22 Section VII – General Conditions of Contract 14.1 The Contractor shall be deemed to have examined any Site Data 14. Site Data referred to in the PCC, supplemented by any information available to the Contractor. 15.1 The Contractor shall construct and install the Works in 15. Contractor to accordance with the Specifications and Drawings. Construct the Works 16.1 The Contractor may commence execution of the Works on the 16. The Works to Start Date and shall carry out the Works in accordance with the Be Completed Program submitted by the Contractor, as updated with the by the approval of the Project Manager, and complete them by the Intended Intended Completion Date. Completion Date 17.1 The Contractor shall submit Specifications and Drawings 17. Approval by showing the proposed Temporary Works to the Project Manager, the Project for his approval. Manager 17.2 The Contractor shall be responsible for design of Temporary Works. 17.3 The Project Manager’s approval shall not alter the Contractor’s responsibility for design of the Temporary Works. 17.4 The Contractor shall obtain approval of third parties to the design of the Temporary Works, where required. 17.5 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. 18.1 The Contractor shall be responsible for the safety of all activities 18. Safety on the Site. 19.1 Anything of historical or other interest or of significant value 19. Discoveries 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. 20.1 The Employer shall give possession of all parts of the Site to the 20. Possession of Contractor. If possession of a part is not given by the date stated the Site in the PCC, the Employer shall be deemed to have delayed the start of the relevant activities, and this shall be a Compensation Event. Section VII – General Conditions of Contract 3-23 21.1 The Contractor shall allow the Project Manager and any person 21. Access to the authorized by the Project Manager access to the Site and to any Site place where work in connection with the Contract is being carried out or is intended to be carried out. 22.1 The Contractor shall carry out all instructions of the Project 22. Instructions, Manager which comply with the applicable laws where the Site Inspections is located. and Audits 22.2 The Contractor shall permit, and shall cause its Subcontractors and subconsultants to permit, the Employer and/or persons appointed by the Employer to inspect the Site and/or the accounts and records of the Contractor and its sub-contractors relating to the performance of the Contract and the submission of the bid, and to have such accounts and records audited by auditors appointed by the Employer if requested by the Employer. The Contractor’s and its Subcontractors’ and subconsultants’ attention is drawn to Sub-Clause 57.1 which provides, inter alia, that acts intended to materially impede the exercise of the Employer’s inspection and audit rights provided for under Sub-Clause 22.2 constitute a prohibited practice subject to contract termination (as well as to a determination of ineligibility pursuant to ZPPA’s prevailing sanctions procedures). 23.1 The Adjudicator shall be appointed (if stated in the PCC) jointly 23. Appointment by the Employer and the Contractor, at the time of the of the Employer’s issuance of the Letter of Acceptance. If, in the Adjudicator 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. 23.2 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 designated in the PCC at the request of either party, within 14 days of receipt of such request. 24.1 The Employer and the Contractor shall make every effort to 24. Procedure for resolve amicably by direct informal negotiation any Disputes disagreement or dispute arising between them under or in connection with the Contract. 3-24 Section VII – General Conditions of Contract 24.2 If, after twenty-eight (28) days, the parties have failed to resolve their dispute or difference by such mutual consultation, then the dispute shall be conducted in accordance with the rules of procedure specified in the PCC. 24.3 Notwithstanding any reference to dispute resolution herein, (a) the parties shall continue to perform their respective obligations under the Contract unless they otherwise agree; and (b) The Employer shall pay the Contractor any monies due. B. Time Control 25.1 Within the time stated in the PCC, after the date of the Letter of 25. Program 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. 25.2 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. 25.3 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. 25.4 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. 26.1 The Project Manager shall extend the Intended Completion Date 26. Extension of if a Compensation Event occurs or a Variation is issued which the Intended makes it impossible for Completion to be achieved by the Completion Intended Completion Date without the Contractor taking steps to Date accelerate the remaining work, which would cause the Contractor Section VII – General Conditions of Contract 3-25 to incur additional cost. 26.2 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. 27.1 When the Employer wants the Contractor to finish before the 27. Acceleration 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. 27.2 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. 28.1 The Project Manager may instruct the Contractor to delay the 28. Delays start or progress of any activity within the Works. Ordered by the Project Manager 29.1 Either the Project Manager or the Contractor may require the 29. Management other to attend a management meeting. The business of a Meetings management meeting shall be to review the plans for remaining work and to deal with matters raised in accordance with the early warning procedure. 29.2 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. 30.1 The Contractor shall warn the Project Manager at the earliest 30. Early Warning 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 3-26 Section VII – General Conditions of Contract provided by the Contractor as soon as reasonably possible. 30.2 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. C. Quality Control 31.1 The Project Manager shall check the Contractor’s work and 31. Identifying notify the Contractor of any Defects that are found. Such Defects 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. 32.1 If the Project Manager instructs the Contractor to carry out a test 32. Tests 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. 33.1 The Project Manager shall give notice to the Contractor of any 33. Correction of Defects before the end of the Defects Liability Period, which Defects 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. 33.2 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. 34.1 If the Contractor has not corrected a Defect within the time 34. Uncorrected specified in the Project Manager’s notice, the Project Manager Defects shall assess the cost of having the Defect corrected, and the Contractor shall pay this amount. D. Cost Control 35.1 In the case of an admeasurement contract, the Bill of Quantities 35. Contract Price 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. 35.2 In the case of a lump sum contract, the Activity Schedule shall Section VII – General Conditions of Contract 3-27 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. 36.1 In the case of an admeasurement contract: 36. Changes in the 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 percent, provided the change exceeds 1 percent 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 percent, 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. 36.2 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. 37.1 All Variations shall be included in updated Programs, and, in the 37. Variations case of a lump sum contract, also in the Activity Schedule, produced by the Contractor. 37.2 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. 37.3 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. 37.4 If the Project Manager decides that the urgency of varying the work would prevent a quotation being given and considered 3-28 Section VII – General Conditions of Contract without delaying the work, no quotation shall be given and the Variation shall be treated as a Compensation Event. 37.5 The Contractor shall not be entitled to additional payment for costs that could have been avoided by giving early warning. 37.6 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 Sub-Clause 38.1 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. 38.1 When the Program, or, in the case of a lump sum contract, the 38. Cash Flow Activity Schedule, is updated, the Contractor shall provide the Forecasts 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. 39.1 The Contractor shall submit to the Project Manager monthly 39. Payment statements of the estimated value of the work executed less the Certificates cumulative amount certified previously. 39.2 The Project Manager shall check the Contractor’s monthly statement and certify the amount to be paid to the Contractor. 39.3 The value of work executed shall be determined by the Project Manager. 39.4 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. 39.5 The value of work executed shall include the valuation of Variations and Compensation Events. 39.6 The Project Manager may exclude any item certified in a Section VII – General Conditions of Contract 3-29 previous certificate or reduce the proportion of any item previously certified in any certificate in the light of later information. 40.1 Payments shall be adjusted for deductions for advance payments 40. 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. 40.2 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. 40.3 Unless otherwise stated, all payments and deductions shall be paid or charged in the proportions of currencies comprising the Contract Price. 40.4 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. 41.1 The following shall be Compensation Events: 41. Compensation Events (a) The Employer does not give access to a part of the Site by the Site Possession Date pursuant to GCC Sub-Clause 20.1. (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 3-30 Section VII – General Conditions of Contract 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. 41.2 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. 41.3 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. 41.4 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. Section VII – General Conditions of Contract 3-31 42.1 The Project Manager shall adjust the Contract Price if taxes, 42. Tax 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 Clause 44. 43.1 Where payments are made in currencies other than the currency 43. Currencies 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. 44.1 Prices shall be adjusted for fluctuations in the cost of inputs only 44. Price if provided for in the PCC. If so provided, the amounts Adjustment 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: P = A + B Imc/Ioc ccc where: P is the adjustment factor for the portion of the Contract c Price payable in a specific currency ―c.‖ 11 A and B are coefficients specified in the PCC, cc representing the nonadjustable and adjustable portions, respectively, of the Contract Price payable in that specific currency ―c;‖ and Imc is the index prevailing at the end of the month being invoiced and Ioc is the index prevailing 28 days before Bid opening for inputs payable; both in the specific currency ―c.‖ 44.2 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. 45.1 The Employer shall retain from each payment due to the 45. Retention 11 The sum of the two coefficients A and B should be 1 (one) in the formula for each currency. Normally, ccboth coefficients shall be the same in the formulae for all currencies, since coefficient A, for the nonadjustable portion of the payments, is a very approximate figure (usually 0.15) to take account of fixed cost elements or other nonadjustable components. The sum of the adjustments for each currency are added to the Contract Price. [To be transferred to the User Guide] 3-32 Section VII – General Conditions of Contract Contractor the proportion stated in the PCC until Completion of the whole of the Works. 45.2 Upon the issue of a Certificate of Completion of the Works by the Project Manager, in accordance with GCC 51.1, 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. 46.1 The Contractor shall pay liquidated damages to the Employer at 46. Liquidated the rate per day stated in the PCC for each day that the Damages 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. 46.2 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 Sub-Clause 40.1. 47.1 The Contractor shall be paid a Bonus calculated at the rate per 47. Bonus 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. 48.1 The Employer shall make advance payment to the Contractor of 48. Advance the amounts stated in the PCC by the date stated in the PCC, Payment 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. 48.2 The Contractor is to use the advance payment only to pay for Equipment, Plant, Materials, and mobilization expenses required Section VII – General Conditions of Contract 3-33 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. 48.3 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. 49.1 The Performance Security shall be provided to the Employer no 49. Securities later than the date specified in the Letter of Acceptance and shall be issued in an amount specified in the PCC, by a bank or surety 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, and until one year from the date of issue of the Completion Certificate in the case of a Performance Bond. 50.1 If applicable, the Dayworks rates in the Contractor’s Bid shall be 50. Dayworks used only when the Project Manager has given written instructions in advance for additional work to be paid for in that way. 50.2 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 two days of the work being done. 50.3 The Contractor shall be paid for Dayworks subject to obtaining signed Dayworks forms. 51.1 Loss or damage to the Works or Materials to be incorporated in 51. Cost of the Works between the Start Date and the end of the Defects Repairs 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. E. Finishing the Contract 52.1 The Contractor shall request the Project Manager to issue a 52. Completion Certificate of Completion of the Works, and the Project Manager shall do so upon deciding that the whole of the Works is 3-34 Section VII – General Conditions of Contract completed. 53.1 The Employer shall take over the Site and the Works within seven 53. Taking Over days of the Project Manager’s issuing a certificate of Completion. 54.1 The Contractor shall supply the Project Manager with a detailed 54. Final Account 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. 55.1 If ―as built‖ Drawings and/or operating and maintenance manuals 55. Operating and are required, the Contractor shall supply them by the dates stated Maintenance Manuals in the PCC. 55.2 If the Contractor does not supply the Drawings and/or manuals by the dates stated in the PCC pursuant to GCC Sub-Clause 55.1, 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. 56.1 The Employer or the Contractor may terminate the Contract if the 56. Termination other party causes a fundamental breach of the Contract. 56.2 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; Section VII – General Conditions of Contract 3-35 (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; (f) the Contractor does not maintain a Security, which is required; (g) 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; or (h) 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 Clause 57.1. 56.3 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 Sub-Clause 56.2 above, the Project Manager shall decide whether the breach is fundamental or not. 56.4 Notwithstanding the above, the Employer may terminate the Contract for convenience. 56.5 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. 57.1 If the Employer determines that the Contractor and/or any of its 57. Fraud and personnel, or its agents, or its Subcontractors, subconsultants, Corruption services providers, suppliers and/or their employees has engaged in corrupt, fraudulent, collusive, coercive or obstructive practices, in competing for or in executing the Contract, then the Employer may, after giving 14 days notice to the Contractor, terminate the Contractor's employment under the Contract and expel him from the Site, and the provisions of Clause 56 shall apply as if such expulsion had been made under Sub-Clause 56.5 [Termination by Employer]. 57.2 Should any employee of the Contractor be determined to have engaged in corrupt, fraudulent, collusive, coercive, or obstructive practice during the execution of the Works, then that employee shall be removed in accordance with Clause 9. 57.3 For the purposes of this Sub-Clause: 3-36 Section VII – General Conditions of Contract (i) ―corrupt practice‖ is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to 12influence improperly the actions of another party; (ii) ―fraudulent practice‖ is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other 13benefit or to avoid an obligation; (iii) ―collusive practice‖ is an arrangement between two or more 14parties designed to achieve an improper purpose, including to influence improperly the actions of another party; (iv) ―coercive practice‖ is 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 15a party; (v) ―obstructive practice‖ is (aa) deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Employer investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or 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 (bb) acts intended to materially impede the exercise of the Employer’s inspection and audit rights provided for under Sub-Clause 22.2. 58.1 If the Contract is terminated because of a fundamental breach of 58. Payment upon Contract by the Contractor, the Project Manager shall issue a Termination 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 12 ―Another party‖ refers to a public official acting in relation to the procurement process or contract execution]. In this context, ―public official‖ includes Government staff and employees of other organizations taking or reviewing procurement decisions. 13 ―Party‖ refers to a public official; the terms ―benefit‖ and ―obligation‖ relate to the procurement process or contract execution; and the ―act or omission‖ is intended to influence the procurement process or contract execution. 14 ―Parties‖ refers to participants in the procurement process (including public officials) attempting to establish bid prices at artificial, non competitive levels. 15 ―Party‖ refers to a participant in the procurement process or contract execution. Section VII – General Conditions of Contract 3-37 exceeds any payment due to the Contractor, the difference shall be a debt payable to the Employer. 58.2 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. 59.1 All Materials on the Site, Plant, Equipment, Temporary Works, 59. Property and Works shall be deemed to be the property of the Employer if the Contract is terminated because of the Contractor’s default. 60.1 If the Contract is frustrated by the outbreak of war or by any other 60. Release from event entirely outside the control of either the Employer or the Performance 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 afterwards to which a commitment was made. 61.1 In the event that ZPPA suspends the Contractor pursuant to the 61. Suspension of Public Procurement Act of 2008: Contractor (a) The Employer is obligated to notify the Contractor of such suspension within 7 days of having received ZPPA’s suspension notice. (b) If the Contractor has not received sums due it within the 28 days for payment provided for in Sub-Clause 40.1, the Contractor may immediately issue a 14-day termination notice. 3-39 Section VIII. Particular Conditions of Contract A. General The Employer is: GCC 1.1 (r) The Lusaka Water and Sewerage Company Limited Plot No. 871/2, Katemo Road, Rhodes Park P.O Box 50198 Lusaka ZAMBIA Mr. J. Chiyombwe The Intended Completion Period for the whole of the Works shall be: GCC 1.1 (v) 8 months The Project Manager is: Mr. Jilly Chiyombwe, Manager Projects GCC 1.1 (y) Implementation Unit, P.O. Box 50198 Lusaka, Zambia. The Site is located at: Lusaka Town GCC 1.1 (aa) The Start Date shall be: June 2014 GCC 1.1 (dd) The Works consist of: GCC 1.1 (hh) Supply, Installation and Commissioning of Three Reservoir Steel Tanks in Hill View, Woodlands and Chainda Areas of Lusaka. Sectional Completions are: N/A GCC 2.2 The following documents also form part of the Contract: GCC 2.3(i) (a) the Letter of Acceptance (b) the Bid (c) the Addenda Nos . . . . . (d) the Particular Conditions (e) the General Conditions; (f) the Specification (g) the Drawings; and (h) the completed Schedules, The language of the contract is English GCC 3.1 3-40 Section VIII – Particular Conditions of Contract The law that applies to the Contract is the law of the Republic of Zambia The Project manager may delegate any of his duties and responsibilities. GCC 5.1 Schedule of other contractors: N/A GCC 8.1 The minimum insurance amounts and deductibles shall be: GCC 13.1 (a) for loss or damage to the Works, Plant and Materials: ZMW5,000.00 (b) For loss or damage to Equipment: ZMW5,000.00 (c) for loss or damage to property (except the Works, Plant, Materials, and Equipment) in connection with Contract: ZMW 5,000.00 (d) for personal injury or death: (i) of the Contractor’s employees: ZMW 4,000.00 (ii) of other people: ZMW 4,000.00 Site Data are: None GCC 14.1 The Site Possession Date(s) shall be: April 2014 GCC 20.1 N/A GCC 23.1 & GCC 23.2 Hourly rate and types of reimbursable expenses to be paid to the Adjudicator: GCC 24.3 TBA In the case of a dispute between the Employer and a Contractor who is a GCC 24.4 national of the Employer’s country, the dispute shall be referred to a court of competent jurisdiction in accordance with the laws of the Employer’s country. B. Time Control The Contractor shall submit for approval a Program for the Works within GCC 25.1 21 days from the date of the Letter of Acceptance. The period between Program updates is 30days. GCC 25.3 The amount to be withheld for late submission of an updated Program is ZMW15,000.00 C. Quality Control The Defects Liability Period is 365 days. GCC 33.1 Section VIII – Particular Conditions of Contract 3-41 D. Cost Control The currency of the Employer’s country is: Zambian Kwacha GCC 43.1 The Contract is not subject to price adjustment in accordance with GCC GCC 44.1 Clause 44, and the following information regarding coefficients does not apply. Not Applicable The proportion of payments retained is: 10% GCC 45.1 The liquidated damages for the whole of the Works are 0.1 percent per day. GCC 46.1 The maximum amount of liquidated damages for the whole of the Works is 10 percent of the final Contract Price. The Advance Payments shall be: 20% against equivalent Bank Guarantee GCC 48.1 and shall be paid to the Contractor no later than 30 days. The Performance Security amount is 10 % denominated in the types and GCC 49.1 proportions of the currencies in which the Contract Price is payable, or in a freely convertible currency acceptable to the Employer. (a) Bank Guarantee: 10%. (b) Performance Bond: 10%. A Bank Guarantee shall be unconditional (on demand) (see Section X. Security Forms) A Performance Bond is an undertaking by a bonding or insurance company (surety) to complete the construction in the event of default by the Contractor, or to pay the amount of the Bond to the Employer. An amount of 30 percent of the Contract Price is commonly used internationally for this type of security. E. Finishing the Contract The date by which operating and maintenance manuals are required is Two GCC 55.1 months after works are certified to be finally completed. The date by which ―as built‖ drawings are required is Three Months after the works are certified to be finally completed. The amount to be withheld for failing to produce ―as built‖ drawings and/or GCC 55.2 operating and maintenance manuals by the date required in GCC 58.1 is 1 percent of contract price. 3-42 Section VIII – Particular Conditions of Contract The maximum number of days is: 100 days GCC 56.2 (g) The percentage to apply to the value of the work not completed, representing GCC 58.1 the Employer’s additional cost for completing the Works, is 15 Percent. 3-43 Section IX - 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 Letter of Acceptance .......................................................................................................... 3-44 Contract Agreement .......................................................................................................... 3-45 Performance Security ........................................................................................................ 3-47 Advance Payment Security ............................................................................................... 3-49 3-44 Section IX - Contract Forms Letter of Acceptance [ on letterhead paper of the Employer] . . . . . . . [date]. . . . . . . To: . . . . . . . . . . [ name and address of the Contractor] . . . . . . . . . . Subject: . . . . . . . . . . [Notification of Award Contract No]. . . . . . . . . . . This is to notify you that your Bid dated . . . . [insert date] . . . . for execution of the . . . . . . . . . .[insert name of the contract and identification number, as given in the Appendix to Bid] . . . . . . . . . . for the Accepted Contract Amount of the equivalent of . . . . . . . . .[insert amount in numbers and words 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 of the Performance Security Form included in Section IX (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 ITB 42.1 and GCC 23.1. Authorized Signature: ................................................................................................................... me and Title of Signatory: ........................................................................................................ Na Name of Agency: .......................................................................................................................... Attachment: Contract Agreement Section IX - Contract Forms 3-45 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 prevail over all other Contract documents. (i) the Letter of Acceptance (j) the Bid (k) the Addenda Nos . . . . . [insert addenda numbers if any]. . . . . (l) the Particular Conditions (m) the General Conditions; (n) the Specification (o) the Drawings; and (p) the completed Schedules, 3. In 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. The 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. 3-46 Section IX - Contract Forms Signed by: Signed by: for and on behalf of the Employer for and on behalf the Contractor in the in the presence of: presence of: Witness, Name, Signature, Address, Date Witness, Name, Signature, Address, Date Section IX - Contract Forms 3-47 Performance Security [Bank’s Name, and Address of Issuing Branch or Office] Beneficiary: ....................................... [Name and Address of 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 1of the currency and amount in figures] . . . . . . (. . . . . [amount in words]. . . . . ) 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. 2This guarantee shall expire, no later than the . . . . . Day of . . . . . . . . . . , . . . . . . , 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, except that subparagraph (ii) of Sub-article 20(a) is hereby excluded. . . . . . . . . . . . . . . . . . . . . . . . . . . . . [Seal of Bank and Signature(s)] All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document. 1 The Guarantor shall insert an amount representing the percentage of the Contract Price specified in the Contract and denominated either in the currency(ies) of the Contract or a freely convertible currency acceptable to the Employer. 2 Insert the date twenty-eight 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 3-48 Section IX - Contract Forms 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 [six months][one 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.” Section IX - Contract Forms 3-49 Advance Payment Security [Bank’s Name, and Address of Issuing Branch or Office] Beneficiary: ...................................... [Name and Address of 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 1payment in the sum . . . . . [name of the currency and amount in figures] . . . . . . (. . . . . [amount in words]. . . . . ) 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 figures]*. . . . . . (. . . . . [amount in words]. . . . . ) 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 (80) percent of the Contract Price has been certified for payment, or on the . . . day 2of . . . . . . . , . . . . ., 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. . . . . . . . . . . . . . . [Seal of Bank and Signature(s)]. . . . . . . . . . . . . . Note – All italicized text is for guidance on how to prepare this demand guarantee and shall be deleted from the final document. 1 The Guarantor shall insert an amount representing the amount of the advance payment denominated either in the currency(ies) of the advance payment as specified in the Contract, or in a freely convertible currency acceptable to the Employer. 3-50 Section IX - Contract Forms 2 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 [six months][one 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.