1 instructions to bidders eligibility procedure for clarifications bid preparation - form number...

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Instructions to bidders

Eligibility Procedure for clarifications Bid preparation - form Number of copies, addressee Language Pricing and currencies Modification and withdrawal Bid securities Bid submission procedures

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Instructions to bidders (cont.)

Bid validity Closing date Opening time, date, place Corrections Bid evaluation criteria and procedures Domestic preferences Post-qualification Performance security

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Currency provisions

Objective Remove currency risk from bidders

to get best price Permit bidders to use strong

currency in bid - to permit participation by weak currency countries

Ensure fairness to all bidders incurrency conversion comparison

Permit borrower to require local expenses to be quoted in local currency

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Currency provisions (cont.)

Bid price in currency ofbank member country or US$ oreuro

Borrower may require local costs inlocal currency

Contract expressed in the currency in which price is stated

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Currency provisions (cont.)

Payment Contract currency

(bid currency) If expressed in

borrower’s currency,protect original bid value

Facilitate transfer offoreign currency payments

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Security bonds and guarantees

Bid security (when required)

Should not be too high 1 to 3% normal Fixed amount preferable

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Conditions of contract

Rights and obligations of both parties

Procedure for shipment, insurance inspection, documentation

Procedure for measurement

Procedure for change orders

Procedure, terms and currencies of payment

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Conditions of contract (cont.)

Procedure for performance securities

Force majeure

Procedure for damages, penalties for delay

Procedure for termination

Mode and form for settling disputes

Applicable law

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Contract

Buyer and seller

More important

Agree to terms, have the right to demand performance

This promise to do or not to do something,is enforceable by lawand incorporates remedial rights for non performance

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Special conditions of contract

Provides contract-specific information to corresponding clauses in GCOC

Definition of the purchaser-supplier

Specific amount of performance security

Specific procedures for inspection and testing

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Special conditionsof contract (cont.)

Special requirements for: Packing, delivery

Documents

Insurance

Incidental services

Spare parts

Warranty

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Special conditionsof contract (cont.)

Specific payment terms / currency

Liquidated damages

Resolution of disputes

Governing language

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Payment terms

Follow Commercial practices

Payment on proof of shipment

Payment through letters of credit

Payment after installation

Bank guarantee for warranty

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Inspection

Pre-shipment inspection

Dimensional checking

Overall dimensions, tolerances, surface alignment, centering, straightness, etc.

Performance testing

Visual equipment inspection

Packing and marking inspection Commissioning & testing

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Insurance conditions

Type, assured, co-assured

Goods insured, evaluation basis

Voyage, conveyances

Duration of risk

Claim settlement and procedure