Contract

Management
(Chapter 5)
Procurement
 Public Procurement

Public Procurement is a comprehensive process

stretching from need identification, procurement
planning, cost estimation, pre-bid preparation, bid
invitation, bid evaluation, contract award and its
execution, reporting and auditing.

3
Principles of Public Procurement:
Achieving transparency in the process and decisions

Obtaining value for money

Promoting competition

Providing equal access without discrimination

Accountability of officials

Reduce corruption and leakage of public funds

 METHODS OF WORK EXECUTION
No Procurement Contract Size Contractor Remarks
Method
PROCUREMENT OF WORKS &

1 Sealed Bidding
i ICB  >5 Ar. • International 45 Days
 > 1 Ar. to < 5 Ar. • International
Nepali JV
GOODS

ii NCB/LCB More than 2 Million to 1 Ar. National 30 days

2 Sealed Quotation Up to 2 Million National 15 days
3 Direct Procurement Up to 5,00,000 National
4 Force Account Up to 1,00,000 None
5 Procurement under Emergency/Special Depends on
special Circumstances contract amount
Circumstances
6 Users’ Committee Up to 10 Million works of Contractor cannot
simple nature be used
PROCUREMENT OF WORKS &
No Procurement Method Contract Size Contractor Remarks

7 Lump Sum Rate Method Amended by 2073

GOODS contd..

8 Catalogue Method Amended by 2073

9 Limited Tendering Amended by 2073

Method
10 Buy Back Method Amended by 2073

Pre-Qualification not required for the project with cost estimates

within 2 cr.
cost estimates must be mentioned in Bid Notice for the project up to 2
crore (works)
 DLP Start
Demand
Assessment
Work Budget and
completion Program
Approval

Approval
Work
of Cost
Performance
estimates

Procurement
Cycle for works
Procurement
Contract
methods Slicing &
agreement
selection Packaging
LOI

Bid Approval of
Determination evaluation procurement
and plan
of LESRB Approval
Bid
document
Bid notice
preparation
publication
and
Pre-Bid approval
 Contract
According to Contract Act 2056 "Contract is an agreement between two or more than two
persons to do or not to do something, which can be enforceable by law".

An Engineering Contract is a mutual agreement negotiated between two or more parties

for the purpose of undertaking, on a commercial basis, certain clearly specified
engineering work.
Elements of Contract "All contracts are agreements but all
•Offer and acceptance
•Consideration agreements are not contracts."
•Capacity to contract Agreement + legality = Contract
•Lawful purpose “Law recognizes DUTY”
•Possibility of performance
•Free consent
•Certainty/ uncertainty
•Legal Relationship
•Written
•Two or more competent parties
 Contract as per enforceability
1. Valid Contract - If all the elements of contract are present, the contract is
valid.
2. Voidable Contract - As per contract act, following contracts are
voidable, i.e. if the party desire to make it void (invalid).
• Forceful contract or contract against free consent or contract involving fraud.
• Entered due to undue influence
• Contract involving fraud or misstatement.
3. Void Contract - As per contract act the following contracts become
null and void.
• Contrary to statutory law
• Ambiguous vague and unlimited contract
• Not possibility of performance
• Contrary to public policy and welfare.
• Signed by incompetent parties.
Types of Contract
• Depending upon the magnitude and nature of the work, its special design needs, funding
requirements, complexities of the job and owner’s own preference, different types of
contracts are entered into.
• Contracts for any particular engineering project can be classified in the first instance as
either Main Contracts (sometimes referred to as Head Contracts) or Subcontracts

Engineering contracts, whether Main Contracts or Subcontracts, can further be classified

in a number of ways, each of which depends upon a particular characteristic or feature

The Three most commonly used characteristics for this purpose are:
•The method by which payment for the work under the contract is evaluated.
•The method by which the contractor is selected.
•Competitive tendered
•Negotiated contract
•The method by which the responsibility for the technical and administrative aspects
of the work is allocated.
Classification by the method of payment for the work

• The method of payment is of such importance, particularly to the Contractor,

that contracts are often classified solely by the method of payment.
• There are three basic methods of payment used in Engineering Contracts:
• Lump sum contracts
• Schedule of rates or unit-price contracts
• Cost plus contracts
(a) Lump Sum or Stipulated Sum Contracts
• This type of contract is the one in which the contractor based on the
available complete set of plans and specifications quotes one single price
which covers all works and services required by the contract plans and
specifications.

• The lump sum price includes all direct costs of the contractor for labor,
machines, materials and indirect costs such as field and front office
supervision, secretarial support and equipment maintenance and support
costs and also includes profit of the contractor.
(b) Unit- Price or Schedule of Rates Contracts

• In this type of contract, the project is broken down into the work items that
can be characterized by units such as Cu.m, Sq.m, R.m, and Nos. etc.
• The contractor quotes the price by units rather than as a single total contract
price.
• A guide quantity is given for each work item (BOQ).
• Based on this guide quantity, the contractor quotes a unit price for each item
of the project work.
• The total price is computed by multiplying the unit price by guide quantity
and summing up the cost of whole the items.
• The lowest reasonable bidder is determined and the contract is awarded.
(c) Cost plus Contracts

• In a Cost plus Contract, the contractor is reimbursed the actual costs incurred in
carrying out the work under the Contract plus a fixed or variable fee to cover
overhead costs and profit.
• Four types of fee structure are common. They lead to the following cost plus types
of reimbursement schemes:
• Cost + Percent of Cost (Estimated cost = 40 million, fee = 2% = 0.8 million)
• Actual cost incurred = 42 million, fee = 2%of 42 million = 8,40000)
• Cost+ Fixed Fee (0.8 million)

• Cost + Fixed Fee +Profit Sharing (25%)

• Estimated cost =10M, actual cost incurred = 9.5 m
• =9.5+0.8+0.5*25%

• Cost+ Sliding Fee

• Sliding fee= R(2T-A)= 0.2(2*10m- 9)
 Classification by the method of contractor selection
(a) Competitively Tendered Contracts: A competitively Tendered Contract is one
where the owner invites a quote for the works to be performed following a formal
competitive tendering procedure in which a number of tenderers submit bids
based on complete plans and specifications.

(b) Negotiated Contracts: A Negotiated Contract is one where the employer

negotiates directly with a contractor to arrive at a mutually satisfactory agreement
to undertake the work. Major items of negotiation are:
• Quality of the works to be performed.
• Projected time for completion etc.
• Although almost all types of contracts like fixed- price, unit-rate and cost plus
fee can be adopted, the most common form of contract concluded is the
COST+FEE, since in most cases, the design documentation is not complete at
the time of negotiation.
 Classification by method by which the responsibility for the technical and
administrative aspects of the work is allocated.

A. The Traditional Method- Design-Bid-Build

• The Design-Bid-Build method is most common.
• The Owner first contracts with a Design Professional who
provides the design.
• Once the design is complete, the Owner contracts with the
Builder who provides the most responsive competitive bid
for construction

B. Owner-Builder
• In this approach, owners perform both their own design work and some or all of the actual
construction with their own forces. This approach is often referred to as “force account”.
C. The Design-Build Method
A single entity provides both design and construction of the project.
The Design-Builder is obligated to meet the design criteria and performance requirements specified in the
bidding documents.
On a design/build project the contractor and designer work together to serve the Owner on cost, schedule and
scope of work.
Ability for fast track/phased construction.
Three types of design-build entities
1. Contractor Led (subcontract design or joint venture)
2. Designer Led (subcontract construction or joint venture)
3. A single firm with both capabilities internally

D. Design-Negotiate-Build
• Same structure as Design-Bid-Build
usually the design is complete before
negotiations.
• The contractor may be selected on other
factors than low price including
qualifications, expertise, reputation and
timeline.
Why Design/Build?
Ability for fast track/phased construction.
Higher quality projects.
Reduction of claims and litigation against owners.
Identification of costs early.
Better relations and communication, more Contractor involvement throughout the process. The
design-builder provides only the necessary documentation to build the project efficiently.
E. EPC
• The EPC contract stands for 'Engineering, Procurement and Construction' contract.
• The contractor designs, procures the necessary materials and builds the project, either directly or by
subcontracting part of the work.
• The Engineer-Procure-Construct (EPC) project delivery method has emerged as a preferred choice for
many construction industries. With an EPC contract, the owner has a single point of contact for the
project. Under this model, the EPC firm handles the design, procurement of all equipment and
construction materials, and construction services for turnkey delivery of the facility, usually at a lump-
sum price.
• In some cases, the contractor carries the project risk for schedule as well as budget in return for a fixed
price depending on the agreed scope of work. The cost is negotiated and finalized and paid in mutually
agreed installments.
F. Turn Key contract
• A turnkey is a type of project that is constructed so that it could be sold to any buyer as a completed
product.
• Turnkey is often used to describe a home built on the developer's land with the developer's financing ready
for the customer to move in.
• It is just turn a key in the door. In turnkey contract, the contractor is entrusted to design, construct,
commission & handover the project to the employer.
• The employer will make the lump-sum payment to the contractor at the different stages of work as per the
agreement. This type of contract is useful when the work has to be completed at a very short period. Whole
risk is borne by the contractor.
 G. Build Own Operate Transfer (BOOT) Contract

• Build–own–operate–transfer (BOOT) or Build–operate–transfer (BOT) or BOO

(Build–Own–Operate) is a form of project financing, wherein a private entity
receives a concession from the private or public sector to finance, design, construct,
and operate a facility stated in the concession contract.
• The major components of a BOOT Project include:
• Build: design, manage, project implementation, procurement, construct and finance
• Own: own the asset for the concession period and the license for the equipment used.
• Operate: manage and operate plant, carryout maintenance, deliver product or service and receive
off take Payments.
• Transfer: handover plant in operating condition at the end of the concession period.
 H. Construction Management Contracts
• Construction management is defined as- “ that group of management activities related to
a construction program, carried out during the pre-design, design, and construction
phases, that contributes to the control of time and cost in the construction of a new
facility.
• Construction management contracts are particularly attractive to organizations that
periodically build complex structures (e.g., hospital authorities, municipalities etc.) but
do not desire to maintain a full time construction staff to supervise projects on recurring
basis.
• In such cases, an owner can retain a firm as construction manager to plan, develop and
co-ordinate the activities of one or more design professionals, trade contractors, vendors
and other interested parties such as licensing and control bodies.
 BIDDING /TENDERING PROCESS FIRST TECHNICAL

Pre-Qualification
SECOND
FINANCIAL

Technical Bid
Single-Stage Without Pre-Qualification
Proceedings (example: 1S1E
1S2E
Financial Bid

BIDDING Principle
/TENDERING Proceedings/ Non-Qualification Financial Bid
PROCESS Bidding stages

1st stage
Double stage
Proceedings
2nd stage
Invitation for bids Detail information in Tender Notice
• The name and address of the Public Entity inviting bid
• Nature of work and its location
• The place of delivery of the goods to be supplied, the
services to be delivered and the construction work to
SQ:
be performed
at least 15 days
• The amount of bid security and validity period of the
NCB:
bid
at least 30 days.
• Date, time and place where and when the bid/tender
ICB:
document is available
at least 45 days
• Cost of bid/tender document
• The place, manner, deadline for the submission of the
bidding documents
• Provision of e-bidding and its process
Preparation before Inviting Tenders • The place, date and time for pre-bid meeting
• Project Preparation • The place, date and time for the opening of bids
• Estimating of Quantities • Expected date of acceptance of successful bids etc.
• Cost Estimate
• Approval of estimate:
• Resource Planning:
• Tender document preparation
 Bidding document / Tender document
• Bidding Document is a document prepared by the concerned firm making
invitation to bid for submission by bidders by filling up the price or rate.
• This includes: instructions to bidders, specifications, drawing, design,
terms of reference, schedule of work, evaluation criteria, bill of
quantities, conditions of contract and similar other documents.
 Allowable and restrictions in bidding document
Descriptions Section Public Entity Bidders
Guidance Notes Allowed Not- Allowed
Invitation for bids Allowed Not- Allowed

Instruction to bidders Section 1 Not- Allowed Not- Allowed

Bid data sheet Section 2 Allowed Not- Allowed
Evaluation and qualification criteria Section 3 Allowed Not- Allowed
Bidding forms Section 4 Allowed Allowed to fill
Technical requirements of works Section 5 Allowed Not- Allowed
(Specifications)
Bill of quantities Section 6 Allowed Not- Allowed

General conditions of contract Section 7 Not- Allowed Not- Allowed

Special conditions of contract Section 8 Allowed Not- Allowed

Contract forms Section 9 Allowed Not- Allowed

 Bid bond/ Bid security
It is the amount of money deposited while bidding a tender as a
guarantee of the party's willingness of carrying out the work to be 2 to 3 % Can be
awarded the fixed
amount
Bid Validity Period

(a) For Sealed quotation (works) - Forty-five days

For a bids or proposals of consultancy accompanied by a
(a) services with cost estimate of up to 10 Cr. - Ninety days bid security which
For a bids or proposals of a consultancy shall be valid for 30
services with cost estimate whatsoever above - One hundred and days beyond the
(c) 10 Cr. twenty days validity period

Cost of Bid Document

20 lacs to 2 crore NPR 3000 Pre-bid Meeting
2 crore to 10 crore NPR 5000 • At least 10 days
before last date for
10 crore to 25 crore NPR 10000 bid submission in
case of NCB
> 25 crore NPR 20000
 Evaluation and qualification criteria
This Section defines the evaluation process and qualification criteria

• Eligibility:
• Must required (i.e. to be eligible) to participate in proposed bidding
(efu lngsf] nflu)
• Qualification:
• Must required (i.e. to be qualified) to be successful -kf; x'gsf] nflu_
 Eligibility: Criteria
• Nationality
• Conflict of Interest
• Government/DP Eligibility
• Government-owned Entity
• UN Eligibility

Other Eligibility
• Firm Registration Certificate
• Business Registration Certificate
• VAT and PAN Registration certificate (only for domestic bidders)
• Tax Clearance Certificate/Tax return submission
 Qualification Criteria
Pending Litigation
• All pending litigation shall be treated as resolved against the
Bidder and so shall in total not represent more than 50% to 100%
percent of the Bidder's net worth
• Each partner if in case of JV, must meet requirement by itself or as
partner to past or existing JV
Financial Situation
• Historical Financial Performance
• Submission of audited balance sheets and income statements,
for the last 3 to 5 years to demonstrate the current soundness of
the Bidder's financial position. As a minimum, a Bidder's net
worth calculated as the difference between total assets and
total liabilities should be positive.
• Each partner if in case of JV, must meet requirement
Average Annual Construction Turnover
• Minimum average annual construction turnover of NRs
(amount)……………, calculated as total certified payments
received for construction contracts in progress or completed,
within best ……. years out of last ten years.
• Submit the audited balance sheets of the best …….. years Bidder
wants to demonstrate
• Each partner of JV must meet not less than 25 %
• The amount must be calculated as: 1.5 x V/T
• V: Estimated amount
• T: duration in year (=1 if project is less than 1 year)
• 1.5 can be reduced up to 1 as per nature, size and complexity of project
Financial Resources in the form of Line of credit
Minimum Required Cash Flow amount
• Availability of, financial resources such as liquid assets, lines of credit, and
other financial means, other than any contractual advance payments:
• Average cash flow amount = Estimated cost/Duration of contract (in
months)
• For each partner in case of JV not less than 25%
Elapsed period calculated as:
Average cash flow amount (a) the time of construction, from the beginning of the
month invoiced,
x Elapsed period
(b) the time needed by the Engineer to issue the monthly
= payment certificate,
Minimum required Cash flow (c) the time needed by the Employer to pay the amount
amount certified, and
(d) a contingency period of one month to allow for
unforeseen delays.
(Total period should not be more than 6 months)
Financial Capabilities: example
Estimating required cash flow:
• Estimated Cost: 12 Crore
• Duration: 1 year
• Average monthly “cash flow” amount:
• 12 Crore  12 months = 1 Crore per month
• Elapsed period (sample)
• (a) interim construction period : 1 month
• (b) Engineer issues payment certificate : 15 days
• (c) Employer pays invoice : 45 days
• (d) contingency period :1 month
Total 4 months
• “Cash flow” requirement for four months: = 4  1 Crore = 4 Crore

34
Line of Credit
Under letter of technical bid:
We are committed to submit the Letter of Commitment for Bank’s
Undertaking for Line of Credit of ……………..Millions at the time of
contract agreement, if the bid is awarded to us.
 Required Bid Capacity
• The bidding capacity of the bidder should be equal to or more than the Engineer’s
Estimate (4 crore) ( without VAT and Contingencies but including Provision Sum
)in round figure
Bid Capacity
Each Bidder or member of a JV must fill in this form
Bid Capacity = [(7 x A) – B] = 7*5 – 30 = 5 crore
A = Average Annual Turnover of best three years out of last ten fiscal years. 5 crore
B = Annual Value of the existing commitments and works (ongoing) to be completed 30 crore
General Construction Experience
• Experience in construction works as a Prime Contractor,
Sub-Contractor, Management Contractor for at least last 5
years prior to the Bid submission deadline.
• (The time period is normally 5 years or more. Can be
reduced up to 3 yrs.)

• In Joint Venture, Each partner must need

37
Specific Construction Experience
• Experience as Prime Contractor, Management Contractor
or Subcontractor,
• (Similar in Physical size, Complexity, Methods/
Technology or other characteristics)

• At least one (1 to 2) Similar Contracts within the last 10 year,

• (Number of similar contracts normally one)
• (The time period is normally within ten years)

• Each with a value of at least …(80% of estimated Value),

• (Each to be Successfully or Substantially completed.)

In JV, All parties combined must meet requirement 38

Construction Experience in Key Activities

Requirements for Minimum Construction Experience in

Key Activities (per year) like;
 Earthwork
 Cement Concrete
 Masonry
 Bituminous works etc.
(Usually not less than 80% of the Peak Requirements per
year)

In Joint Venture, All parties combined must meet requirements

39
Equipment
Equipment capability to be included for bids valued
over certain amount only and to be based on
assessment of the Engineer.
• Equipment Type and Characteristics
• No. Min. Number Required
• Bidders can own, lease, or hire equipment;
• limited only to those specialized items that are critical for the
type of project to be implemented and that may be difficult for
the contractor to obtain quickly.
• The availability and running condition of such equipment
should be subject to verification prior to contract award. 40
Personnel
• Availability of Project Manager and/or other key
personals with the necessary Qualification and
Experiences in similar works
• Qualification
• Total Work Experience [years]
• Experience In Similar Work [years]

41
Bidding forms
• This section consists of forms for the contractor
• Letter of technical bid
• Letter of price bid
• Price adjustment table
• Bid security form
• Technical proposal format
• Personnel
• Equipment
• Schedule

All the given forms the bidders need to fill up to demonstrate the capabilities
Work Requirements
• This section consists of employer’s requirement as:
• Scope of Works
• Specifications
• Drawings
• BOQ
Conditions of Contract (CoC)
Whatever agreement is reached between different parties, it is followed by certain
terms and reference that bind all the parties reaching the agreement. These terms and
reference are called conditions of contract. Its purpose is for the easy and smooth
functioning of work and minimizing disputes. It contains two parts:
• General condition of contract (GCC) • Time control
• Cost control
• Special provisions of contract (SCC)
• Quality control
• Force majeure
• Finishing of contract
 Prequalification (Pre-Q)
• It is a kind of short listing of eligible bidder to avoid crowding of bidder. It
ensures that the invitation to bids extended only to those perspective
bidders who have adequate capability and resources to perform the
particular contract satisfactory taking in to account their-
• Experience and past performance on similar contract
• Capabilities w.r.t. personnel, equipment and construction facilities
• Financial position
• Litigation history
 Benefits of Prequalification
• Helps to enables prospective bidders to form a joint venture that may give a better
chance of success;
• It assures that an inadequately qualified competitors will be excluded from submitting
unrealistically low bids.
• Prequalification enables the Employer to assess the interest from qualified firms.
• It helps to expose potential conflicts of interest by identifying contractors who may
have a business association with consultants to the project;
• It reduces the amount of work and time involved by the Employer in evaluating bids
from unqualified contractors;
• It encourages local firms to form joint ventures with other local or international firms,
thereby benefiting from their resources and experience;
• It reduces significantly, if not eliminates, problems of rejection associated with low-
priced bids submitted by bidders of doubtful capability; and
• It gives Financing Agencies some indication of the Employer’s ability to manage an
important, early procurement function.
 Disadvantages of Prequalification
• It may increase procurement lead time,
• The Employer is required to review all prequalification applications
• Collusion (and the possibility of price-rigging) is easier among a
limited number of identified bidders
 Opening and Evaluation of Bids
• Opening of Bid
• A Public Entity shall have to open a bid in the presence of the bidder or his/her representative.

• Preliminary Examinations of Bids

• The purpose is to identify and reject bids that are incomplete as required by the bidding documents
before further detailed evaluation. The principal areas to be covered are:
• Verification of signature, registration, J/V agreement; Eligibility of bidders; Bid Security;
Completeness and qualifications.

• Determination of Substantial Responsiveness of Bids

• A bid is considered substantially responsive if it does not contain any major deviations from the
bidding documents or conditions which cannot be determined reasonably in terms of monetary value
for financial adjustment.
• The purpose is to reject bids which are not substantially responsive to major commercial and
technical requirements.

• Detail evaluations of Bids

• The detailed evaluation shall be based on the evaluation criteria as specified in the bidding
documents. The purpose is to determine the evaluated cost of each bid. The basis for award of
contract shall be the bidder with the lowest evaluated substantially responsive bid subject to:
If the bid contains no substantial deviations from the specifications (Technical Responsiveness),
If the lowest evaluated cost is well within the cost estimate
If rate analysis submitted by the bidder is logical and realistic.
Commercial reasons for rejecting bids are:
• Bid security/bid validity period not in accordance with bidding documents.
• Inability to meet critical work schedule.
• Failure to comply with minimum experience/ financial capability.
• Conditional bids.
Technical reasons for rejecting bids are
• Failure to bid for the required scope of work.
• Failure to quote for each item in BOQ. (as decided by Bid evaluation committee)
• Failure to satisfy major requirements in the Specifications.

Bid Evaluation report

The bid evaluations Committee shall prepare a Bid Evaluation Report, within 15 days of
starting of bid evaluation, in the format contained in the Standard Guide for Bid Evaluation
and submit to the Competent Authority for further considerations and actions.
 Evaluation
Authority to accept bid
•Up to 30 million = Gazetted 3rd class chief of office
•Up to 70 million = Gazetted 2nd class chief of office
•Up to 150 million = Gazetted 1st class chief of office
•Above 150 million = Department head

Bid evaluation committee

•Chief of public entity or senior officer designated by him/her :
Member
•Chief of financial administration section : Member
•Technical expert related in the field : Member
•Law officer (if available) : Member Authority to approve cost estimates
•Up to 10 million = Gazetted 3rd class chief of office
•Up to 50 million = Gazetted 2nd class chief of office
•Up to 100 million = Gazetted 1st class chief of office
•Above 100 million = Department head

50
 Award of Contract

Letter of Intent to Accept the Bid/ Contract

• Within 7 days of the approval of the recommendations of the Bid Evaluation Committee, the
Employer may issue the letter of intent to accept the lowest evaluated responsive bidder.
• This information is to be given to all bidders through public notice in news paper.
• If no other bidders / concerned persons submitted any complain about this selection, the
contract is awarded to the selected bidder and called for agreement with required
performance bond within 15 days.

Performance Security
• It is the amount of money deposited by a successful bidder as a security for
satisfactory performance.
• In general 5% of bid price (up to 15 % below than estimated price)
• If LESRB’s price is below than 15% of estimated price then,
P.S = (0.85*EP-BP)*0.5 + 5% of Bid Price
If bids are excessively low, front loaded etc. Extra 8% of Bid price is demanded from
bidder. After analyzing rate analysis of bidder
Liquidated Damages Price Adjustment
If the works under the procurement contract No price adjustment for contract
fail to be completed within the time specified less than or equal to 12 months.
in the contract due to the delay of the supplier,
consultant, service provider or construction
entrepreneur shall have to pay liquidated Mobilization Amount
damages, generally of zero decimal zero five • Up to 20 % against advance payment
percent (0.05%) of the contract price per day guarantee
not exceeding 10 percent of the contract • In general 1st installment as 10%
price. • Remaining as per work progress
Liquidated Damages are not applicable if:
•Delay in giving possession of site.
•Interfering in carrying out works
•Ordering extra items/ increase in scope variation order
of works up to 5 % gz ii
up to 10 % gz i
Bonus: same as of damage up to 15% department head
15 to 25 % secretary
> 25 % council of ministers

Domestic Preference
Preference for domestic goods (even up to 15 % expensive than international)
E-Bidding:
Electronic bidding, also known as online bidding, is a rising trend in public and private sectors across the globe. It is
the concept wherein an online marketplace or website allows buyers to post their requirements in real time bidding
events and potential suppliers and service providers can compete to sell their products or services to the buyer.

Registration of Public entity in PPMO portal

Creation of 4 Members
• Admin, Creator, Reviewer & approver

Preparation of APP and MPP

• Creator  reviewer  Approver
• Approval

Preparation of PRF
• Creator  reviewer  Approver
• Approval

Uploading of Bidding Document

• Creator  reviewer  Approver
• Approval

Opening of Bid Document (Creating Bid Evaluation

Committee)
Procurement of Budget
Services
TOR & Cost Estimates

Yes Cost Estimate < RS.500,000 ? NO

Direct Award
after negotiation

Cost Estimate < RS. NO

• Preparation of TOR, Evaluation 10,00,000?
Criteria
• RFP to 6 nos of shortlisted or at
least 3 numbers of short listed
consultant (Invite Technical and Yes (EOI not
Financial Proposals) min 15 days required)
• Evaluate TP
• Evaluate FP.
• Calculate combine Score.
• Select Highest Score
• Negotiate/ Sign Agreement Only (QCBS)
 Evaluation Criteria Evaluation Criteria
 Preparation of RFP Preparation of RFP
 Shortlist Consultants Shortlist Consultants
Invite Technical Invite Technical and
Financial Proposals Financial Proposals
Evaluate TP Evaluate TP
Select best Rank TP Evaluate FP.
Evaluate FP of Best Calculate combine Score.
Ranked Firm Select Highest Score
Negotiate with the Best Proposal.
Ranking Proposal EOI: 15 Negotiate/ Sign Agreement
Sign Agreement
days
(QBS) (QCBS)

NO > 10 cr.(ICB) Yes (NCB) > 10,00,000 < 10 cr. No

Cost Estimate <

(LC S) (FC)
RS. 10,00,000?
Evaluation Criteria Evaluation Criteria
Preparation of RFP Preparation of RFP
Invite Technical/ Notice: Invite Technical/
Financial Proposals 30 days Financial Proposals
Evaluate Technical Evaluate Technical
Proposals Proposals
Evaluate FP. Select highest technical
Select Low cost Sign Agreement
Evaluated offer
Sign Agreement
 Home Assignment – 2
• Prepare a sample Bid notice for procurement of works under sealed quotation
(Roll number 1-10)

• Prepare a sample Bid notice for procurement of works under NCB (Non-
qualification) (Roll number 11-20

• Prepare a sample bid notice for procurement of works under NCB (cost
estimates > 20 million to 100 million) (Roll no. 21-30)

• Prepare a sample EOI for any consultancy services (Roll no. 31 onwards)
Thank You !