Laoag City, Ilocos Norte

Module 1: Review of specifications and Plans/Details

1.1 Invitation to bid
1.2 General Conditions
1.3 Special Conditions
1.4 Bid Form

Congratulations for entering the Civil Engineering profession. Soon you will be called
Engineers as the case may be. And Engineering has a lot of work to do so be ready with it.

You may perhaps explore the Surveying. This are some of the links that you can view on line.
https://www.youtube.com/watch?v=sigo0-VxBk8

A Quantity Surveyor (QS) is a construction industry professional with expert

knowledge on construction costs and contracts.
Quantity surveyors are responsible for managing all aspects of the contractual
and financial side of construction projects. They help to ensure that the
construction project is completed within its projected budget. Quantity surveyors
are also hired by contractors to help with the valuation of construction work for
the contractor, help with bidding and project budgeting, and the submission of
bills to the client.
The duties of quantity surveyor are as follows:

• Cost estimate, cost planning and cost management

• Analyzing terms and conditions in the contract.
• Predicting potential risks in the project and taking precautions to
mitigate such.
• Forecasting the costs of different materials needed for the project.
• Prepare tender documents, contracts, budgets and other documentation.
• Take note of changes made and adjusting the budget accordingly.
• Tender management including preparation of bills of quantities,
contract conditions and assembly of tender documents
• Contract management and contractual advice

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• Valuation of construction work

• Claims and dispute management

INVITATION TO BID

As the owner of a company or supervisor of projects, if you want to buy a huge

quantity of some product or you want to hire another company for services, it is
better to get price quotations from various suppliers and services providers so that
you can compare their services and prices in order to select the best or suitable
according to your situation. For this purpose, companies send invitation letter to
bid on a project to suppliers or services providers. With this letter, the company
explains different aspects of the project to the services provider and then asks all
of them to provide their price or charges quotations so that the company can
choose the one with lowest prices.

Brief Description of Invitation Letter to Bid on a Project:

This is a very common letter that companies write on regular basis and inviting
other companies to bid on a project is also a very common practice these days.
This process is in fact very simple and convenient for the companies because
with this invitation, they don’t need to conduct research in the market in order to
find best supplier with lowest prices and they don’t need to negotiate with the
supplier on the prices because when the supplier or service provider will send the
price quotation or bid, he understands that the person with lowest prices will win
the bid so he tries to keep his prices at minimum.
When you write this kind of invitation to bid on a project letter, make sure that
you understand the essentials of it. There are many things or elements that you
need to include in this letter because if you miss a single item, it can create big
problems for both parties in future. Besides many things, the most important part
of this letter is the explanation or description of the project so that the bidder can
understand different aspects of the project and can bid more accurately about the
budget or expenses of the project.

GENERAL CONDITIONS OF CONTRACT (GCC) NOTES:

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The purpose of this document is to:

1. Draw special attention to certain general conditions applicable to government
Bids, contracts and orders; and
2. To ensure that clients be familiar with regard to the rights and obligations of
all parties involved in doing business with government.

In this document words in the singular also mean in the plural and vice versa and
words in the masculine also mean in the feminine and neuter.

• The General Conditions of Contract (GCC) will form part of all Bid documents
and may not be amended.
• Special Conditions of Contract (SCC) relevant to a specific Bid, should be
compiled separately for every Bid (if applicable) and will supplement the GCC.
Whenever there is a conflict, the provisions in the SCC shall prevail.

1. Definitions

1. The following terms shall be interpreted as indicated:

1. “Acceptable bid” means any bid, which, in all respects, complies with the
specifications and conditions of the bid as set out in the bid document.
2. “Bid” means a written offer in a prescribed or stipulated form in response
to an invitation by an organ of State for the provision of goods, works or
services.
3. “Closing time” means the date and hour specified in the bidding
documents for the receipt of bids.
4. “Comparative price” means the price after the factors of a non-firm price
and all unconditional discounts that can be utilized have been taken into
consideration.
5. “Community or broad-based enterprise” means an enterprise that has
an empowerment shareholder who represents a broad base of members
such as a local community or where the benefits support a target group,
6. “Contract” means the written agreement entered into between the
purchaser and the supplier, as recorded in the contract form signed by the
parties, including all attachments and appendices thereto and all documents
incorporated by reference therein.
7. “Contract price” means the price payable to the supplier under the
contract for the full and proper performance of his contractual obligations.
8. “Control” means the possession and exercise of legal authority and power
to manage the assets, goodwill and daily operations of a business and the
active and continuous exercise of appropriate managerial authority and

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power in determining the policies and directing the operations of the

business.
9. “Sub-contracting” means the primary contractor’s assigning or leasing or
making out work to, or employing another person to support such a primary
contractor in the execution of part of a project in terms of the contract.
2. Application

1. These general conditions are applicable to all bids, contracts and

orders including bids for functional and professional services, sales,
hiring, letting and the granting or acquiring of rights, but excluding
immovable property, unless otherwise indicated in the bidding
documents.

2. Where applicable, special conditions of contract are also laid down

to cover specific supplies, services or works.

3. Where such special conditions of contract are in conflict with these

general conditions, the special conditions shall apply.

3. General

1. Unless otherwise indicated in the bidding documents, the purchaser

shall not be liable for any expense incurred in the preparation and
submission of a bid. Where applicable a non-refundable fee for
documents may be charged.
4. Standards

1. The goods supplied shall conform to the standards mentioned in the

bidding documents and specifications.

5. Use of contract documents and information; inspection

1. The supplier shall not, without the purchaser’s prior written consent,
disclose the contract, or any provision thereof, or any specification,
plan, drawing, pattern, sample, or information furnished by or on
behalf of the purchaser in connection therewith, to any person other
than a person employed by the supplier in the performance of the
contract. Disclosure to any such employed person shall be made in
confidence and shall extend only as far as may be necessary for
purposes of such performance.

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2. The supplier shall not, without the purchaser’s prior written consent,
make use of any document or information mentioned in GCC except
for purposes of performing the contract.

3. Any document, other than the contract itself mentioned in GCC shall
remain the property of the purchaser and shall be returned (all
copies) to the purchaser on completion of the supplier’s performance
under the contract if so required by the purchaser.

4. The supplier shall permit the purchaser to inspect the supplier’s

records relating to the performance of the supplier and to have them
audited by auditors appointed by the purchaser, if so required by the
purchaser.

6. Patent rights

1. The supplier shall indemnify the purchaser against all third-party

claims of infringement of patent, trademark, or industrial design
rights arising from use of the goods or any part thereof by the
purchaser.

7. Performance security

1. Within thirty (30) days of receipt of the notification of contract

award, the successful bidder shall furnish to the purchaser the
performance security of the amount specified in SCC.

2. The proceeds of the performance security shall be payable to the

purchaser as compensation for any loss resulting from the supplier’s
failure to complete his obligations under the contract.

3. The performance security shall be denominated in the currency of

the contract or in a freely convertible currency acceptable to the
purchaser and shall be in one of the following forms:

(a) a bank guarantee or an irrevocable letter of credit issued by a reputable

bank located in the purchaser’s country or abroad, acceptable to the
purchaser, in the form provided in the bidding documents or another
form acceptable to the purchaser; or

(b) a cashier’s or certified cheque

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4. The performance security will be discharged by the purchaser and

returned to the supplier not later than thirty (30) days following the
date of completion of the supplier’s performance obligations under
the contract, including any warranty obligations, unless otherwise
specified in SCC.

8. Inspections, tests and analyses

1. All pre-bidding testing will be for the account of the bidder.

2. If it is a bid condition that supplies to be produced or services to be

rendered should at any stage during production or execution or on
completion be subject to inspection, the premises of the bidder or
contractor shall be open, at all reasonable hours, for inspection by a
representative of Parliament or organization acting on behalf of
Parliament.

3. If there are no inspection requirements indicated in the bidding

documents and no mention is made in the contract, but during the
contract period it is decided that inspections shall be carried out, the
purchaser shall itself make the necessary arrangements, including
payment arrangements with the testing authority concerned.

4. If the inspections, tests and analyses show the supplies to be in

accordance with the contract requirements, the cost of the
inspections, tests and analyses shall be defrayed by the purchaser.

5. Where the supplies or services not comply with the contract

requirements, irrespective of whether such supplies or services are
accepted or not, the cost in connection with these inspections, tests
or analyses shall be defrayed by the supplier.

6. Supplies and services which do not comply with the contract

requirements may be rejected.

7. Any contract supplies may on or after delivery be inspected, tested

or analyzed and may be rejected if found not to comply with the
requirements of the contract. Such rejected supplies shall be held at
the cost and risk of the supplier who shall, when called upon, remove
them immediately at his own cost and forthwith substitute them with
supplies which do comply with the requirements of the contract.

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Failing such removal the rejected supplies shall be returned at the

suppliers cost and risk. Should the supplier fail to provide the
substitute supplies forthwith, the purchaser may, without giving the
supplier further opportunity to substitute the rejected supplies,
purchase such supplies as may be necessary at the expense of the
supplier.

8. The provisions of clauses 8.4 to 8.7 shall not prejudice the right of
the purchaser to cancel the contract on account of a breach of the
conditions thereof, or to act in terms of GCC.

9. Packing

1. The supplier shall provide such packing of the goods as is required

to prevent their damage or deterioration during transit to their final
destination, as indicated in the contract. The packing shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packing, case size and weights shall
take into consideration, where appropriate, the remoteness of the
goods’ final destination and the absence of heavy handling facilities
at all points in transit.

2. The packing, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as
shall be expressly provided for in the contract, including additional
requirements, if any, specified in SCC, and in any subsequent
instructions ordered by the purchaser.

10.Delivery and documents

1. Delivery of the goods shall be made by the supplier in accordance

with the terms specified in the contract. The details of shipping
and/or other documents to be furnished by the supplier are specified
in SCC.

2. Documents to be submitted by the supplier are specified in SCC.

11.Insurance

1. The goods supplied under the contract shall be fully insured in a

freely convertible currency against loss or damage incidental to

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manufacture or acquisition, transportation, storage and delivery in

the manner specified in the SCC.

12.Transportation

1. Should a price other than an all-inclusive delivered price be required,

this shall be specified in the SCC.

13.Incidental services

1. The supplier may be required to provide any or all of the following

services, including additional services, if any, specified in SCC:

(a) performance or supervision of on-site assembly and/or commissioning

of the supplied goods;

(b) furnishing of tools required for assembly and/or maintenance of the

supplied goods;

(c) furnishing of a detailed operations and maintenance manual for each

appropriate unit of the supplied goods;

(d) performance or supervision or maintenance and/or repair of the

supplied goods, for a period of time agreed by the parties, provided
that this service shall not relieve the supplier of any warranty
obligations under this contract; and

(e) training of the purchaser’s personnel, at the supplier’s plant and/or on-
site, in assembly, start-up, operation, maintenance, and/or repair of
the supplied goods.

2. Prices charged by the supplier for incidental services, if not included

in the contract price for the goods, shall be agreed upon in advance
by the parties and shall not exceed the prevailing rates charged to
other parties by the supplier for similar services.

14.Warranty

1. The supplier warrants that the goods supplied under the contract are
new, unused, of the most recent or current models and that they
incorporate all recent improvements in design and materials unless
provided otherwise in the contract. The supplier further warrants that

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all goods supplied under this contract shall have no defect, arising
from design, materials, or workmanship (except when the design
and/or material is required by the purchaser’s specifications) or from
any act or omission of the supplier, that may develop under normal
use of the supplied goods in the conditions prevailing in the country
of final destination.

2. This warranty shall remain valid for twelve (24) months after the
goods, or any portion thereof as the case may be, have been delivered
to and accepted at the final destination indicated in the contract.

3. The purchaser shall promptly notify the supplier in writing of any

claims arising under this warranty.

4. Upon receipt of such notice, the supplier shall, within the period
specified in SCC and with all reasonable speed, repair or replace the
defective goods or parts thereof, without costs to the purchaser.

5. If the supplier, having been notified, fails to remedy the defect(s)

within the period specified in SCC, the purchaser may proceed to
take such remedial action as may be necessary, at the supplier’s risk
and expense and without prejudice to any other rights which the
purchaser may have against the supplier under the contract.

15.Payment

1. The method and conditions of payment to be made to the supplier

under this contract shall be specified in SCC.

2. The supplier shall furnish the purchaser with an invoice

accompanied by a copy of the delivery note and upon fulfillment of
other obligations stipulated in the contract.

3. Payments shall be made promptly by the purchaser, but in no case

later than thirty (30) days after submission of an invoice or claim by
the supplier.

4. Payment will be made in Rand unless otherwise stipulated in SCC.

16.Prices

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1. Prices charged by the supplier for goods delivered and services

performed under the contract shall not vary from the prices quoted
by the supplier in his bid, with the exception of any price
adjustments authorized in SCC or in the purchaser’s request for bid
validity extension, as the case may be.

17.Contract amendments

1. No variation in or modification of the terms of the contract shall be

made except by written amendment signed by the parties concerned.

18.Assignment

1. The supplier shall not assign, in whole or in part, its obligations to

perform under the contract, except with the purchaser’s prior written
consent.

20. Subcontracts

20.1 The supplier shall notify the purchaser in writing of all subcontracts awarded
under this contract if not already specified in the bid. Such notification, in
the original bid or later, shall not relieve the supplier from any liability or
obligation under the contract.

21. Delays in the supplier’s performance

21.1 Delivery of the goods and performance of services shall be made by the
supplier in accordance with the time schedule prescribed by the purchaser
in the contract.

21.2 If at any time during performance of the contract, the supplier or its
subcontractor(s) should encounter conditions impeding timely delivery of
the goods and performance of services, the supplier shall promptly notify
the purchaser in writing of the fact of the delay, its likely duration and its
cause(s). As soon as practicable after receipt of the supplier’s notice, the
purchaser shall evaluate the situation and may at his discretion extend the
supplier’s time for performance, with or without the imposition of
penalties, in which case the extension shall be ratified by the parties by
amendment of contract.

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21.3 No provision in a contract shall be deemed to prohibit the obtaining of

supplies or services from a national department, provincial department, or
a local authority.

21.4 The right is reserved to procure outside of the contract small quantities or to
have minor essential services executed if an emergency arises, the
supplier’s point of supply is not situated at or near the place where the
supplies are required, or the supplier’s services are not readily available.

21.5 Except as provided, a delay by the supplier in the performance of its delivery
obligations shall render the supplier liable to the imposition of penalties,
unless an extension of time is agreed upon pursuant to GCC without the
application of penalties.

21.6 Upon any delay beyond the delivery period in the case of a supplies contract,
the purchaser shall, without canceling the contract, be entitled to purchase
supplies of a similar quality and up to the same quantity in substitution of
the goods not supplied in conformity with the contract and to return any
goods delivered later at the supplier’s expense and risk, or to cancel the
contract and buy such goods as may be required to complete the contract
and without prejudice to his other rights, be entitled to claim damages from
the supplier.

22. Penalties

22.1 Subject to GCC, if the supplier fails to deliver any or all of the goods or to
perform the services within the period(s) specified in the contract, the
purchaser shall, without prejudice to its other remedies under the contract,
deduct from the contract price, as a penalty, a sum calculated on the
delivered price of the delayed goods or unperformed services using the
current prime interest rate calculated for each day of the delay until actual
delivery or performance. The purchaser may also consider termination of
the contract pursuant to GCC.

23. Termination for default

23.1 The purchaser, without prejudice to any other remedy for breach of contract,
by written notice of default sent to the supplier, may terminate this contract
in whole or in part:

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(a) if the supplier fails to deliver any or all of the goods within the period(s)
specified in the contract, or within any extension thereof granted by
the purchaser.

(b) if the Supplier fails to perform any other obligation(s) under the
contract; or

(c) if the supplier, in the judgment of the purchaser, has engaged in corrupt
or fraudulent practices in competing for or in executing the contract.

23.2 In the event the purchaser terminates the contract in whole or in part, the
purchaser may procure, upon such terms and in such manner as it deems
appropriate, goods, works or services similar to those undelivered, and the
supplier shall be liable to the purchaser for any excess costs for such similar
goods, works or services. However, the supplier shall continue
performance of the contract to the extent not terminated.

24. Anti-dumping and countervailing duties and rights

24.1 When, after the date of bid, provisional payments are required, or
antidumping or countervailing duties are imposed, or the amount of a
provisional payment or anti-dumping or countervailing right is increased
in respect of any dumped or subsidized import, the State is not liable for
any amount so required or imposed, or for the amount of any such increase.
When, after the said date, such a provisional payment is no longer required
or any such anti-dumping or countervailing right is abolished, or where the
amount of such provisional payment or any such right is reduced, any such
favorable difference shall on demand be paid forthwith by the contractor
to the State or the State may deduct such amounts from moneys (if any)
which may otherwise be due to the contractor in regard to supplies or
services which he delivered or rendered, or is to deliver or render in terms
of the contract or any other contract or any other amount which may be due
to him.

25. Force Majeure

25.1 Notwithstanding the provisions of GCC, the supplier shall not be liable for
forfeiture of its performance security, damages, or termination for default
if and to the extent that his delay in performance or other failure to perform
his obligations under the contract is the result of an event of force majeure.

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25.2 If a force majeure situation arises, the supplier shall promptly notify the
purchaser in writing of such condition and the cause thereof. Unless
otherwise directed by the purchaser in writing, the supplier shall continue
to perform its obligations under the contract as far as is reasonably
practical, and shall seek all reasonable alternative means for performance
not prevented by the force majeure event.

26. Termination for insolvency

26.1 The purchaser may at any time terminate the contract by giving written
notice to the supplier if the supplier becomes bankrupt or otherwise
insolvent. In this event, termination will be without compensation to the
supplier, provided that such termination will not prejudice or affect any
right of action or remedy which has accrued or will accrue thereafter to the
purchaser.

27. Settlement of Disputes

27.1 If any dispute or difference of any kind whatsoever arises between the
purchaser and the supplier in connection with or arising out of the contract,
the parties shall make every effort to resolve amicably such dispute or
difference by mutual consultation.

27.2 If, after thirty (30) days, the parties have failed to resolve their dispute or
difference by such mutual consultation, then either the purchaser or the
supplier may give notice to the other party of his intention to commence
with mediation. No mediation in respect of this matter may be commenced
unless such notice is given to the other party.

27.3 Should it not be possible to settle a dispute by means of mediation, it may

be settled in a South African court of law.

27.4 Mediation proceedings shall be conducted in accordance with the rules of

procedure specified in the SCC.

27.5 Notwithstanding any reference to mediation and/or court proceedings herein,

(a) the parties shall continue to perform their respective obligations under
the contract unless they otherwise agree; and

(b) the purchaser shall pay the supplier any monies due the supplier.

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28. Limitation of liability

28.1 Except in cases of criminal negligence or willful misconduct, and in the case
of infringement;

(a) the supplier shall not be liable to the purchaser, whether in contract,
tort, or otherwise, for any indirect or consequential loss or damage,
loss of use, loss of production, or loss of profits or interest costs,
provided that this exclusion shall not apply to any obligation of the
supplier to pay penalties and/or damages to the purchaser; and

(b) the aggregate liability of the supplier to the purchaser, whether under
the contract, in tort or otherwise, shall not exceed the total contract
price, provided that this limitation shall not apply to the cost of
repairing or replacing defective equipment.

29. Governing language

29.1 The contract shall be written in English. All correspondence and other
documents pertaining to the contract that is exchanged by the parties shall
also be written in English.

30. Applicable law

30.1 The contract shall be interpreted in accordance with laws, unless otherwise
specified in SCC.

31. Notices

31.1 Every written acceptance of a bid shall be posted to the supplier concerned
by registered or certified mail and any other notice to him shall be posted
by ordinary mail to the address furnished in his bid or to the address
notified later by him in writing and such posting shall be deemed to be
proper service of such notice

31.2 The time mentioned in the contract documents for performing any act after
such aforesaid notice has been given, shall be reckoned from the date of
posting of such notice.

32. Taxes and duties

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32.1 A foreign supplier shall be entirely responsible for all taxes, stamp duties,
license fees, and other such levies imposed outside the purchaser’s country.

32.2 A local supplier shall be entirely responsible for all taxes, duties, license
fees, etc., incurred until delivery of the contracted goods to the purchaser.

32.3 No contract shall be concluded with any bidder whose tax matters are not in
order. Prior to the award of a bid, Parliament must be in possession of a tax
clearance certificate, submitted by the bidder.

33. Ownership and Copyright

1. Ownership of all products produced in terms of this

agreement, of whatever nature, vest in Parliament.

2. The copyright of products, of whatever nature, commissioned

and produced in terms of this agreement, and that have been
paid for by the Secretary are owned exclusively by
Parliament.

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