Bidding Documents: Specifications and Plans

• Topic 1: Review of Specifications and Plans/Details

Bidding Documents

• Bidding documents are issued by the Procuring Entity.
• These documents provide prospective bidders with all necessary information to prepare their bids.
• Bidding documents clearly and adequately define the objectives, scope, expected outputs/results, and contract duration.
• They outline the obligations, duties, and functions of the winning bidder.
• They also specify the minimum eligibility requirements for bidders which includes track record, as determined by the Head of the Procuring Entity.

Purpose of Bidding Documents

• Ensures equal information to all bidders
• Instructs bidders on the procedure for submission of bids
• Informs bidders of the criteria for evaluation
• Defines conditions of the contract

Contents of Philippine Bidding Documents (PBDs)

• Invitation to Apply for Eligibility and to Bid (IAEB)
• Eligibility Documents
• Eligibility Data Sheet
• Instructions to Bidders (ITB)
• Bid Data Sheet (BDS)
• General Conditions of Contract (GCC)
• Special Conditions of Contract (SCC)
• Specifications
• Drawings
• Bill of Quantities

Invitation to Bid

• Invitation for Bids provides information to help potential bidders decide whether to participate in procurement.
• The Invitation specifies the date of availability of the Bidding Documents. This period begins when the Invitation to Bid is first advertised/posted and continues until the deadline for submission and receipt of bids.
• The Invitation indicates where Bidding Documents may be purchased or downloaded.
• The Invitation includes the deadline for submission and receipt of bids, counted from the last day of posting.
• The Invitation includes any important bid evaluation criteria, for example, application of a margin of preference in bid evaluation.

Eligibility Documents

• Provides potential bidders the information to prepare responsive Eligibility Documents in accordance with the request of the Procuring Entity
• Eligibility documents should include: Duly licensed Filipino citizens/sole proprietorship and partnerships duly organized under the laws of the Philippines, of which at least sixty percent (60%) of the interest belongs to citizens of the Philippines

Eligibility Requirements

• Include Class A Documents such as Mayor's permit, or Registration Certificate from DTI
• May include Class B Documents, like valid joint venture agreements (JVA) or foreign equivalent eligibility documents

Format and Signing Eligibility Documents

• Bidders should prepare eligibility documents original copies
• In the event of any discrepancy between the original and the copies, the original prevails.

Eligibility Data Sheet

• The Eligibility Data Sheet assists the Procuring Entity in providing specific information and requirements relating to corresponding clauses in the Eligibility Documents.
• It is prepared for each specific procurement.
• The information specifies and complements the stipulations.
• Amendments/supplements to stipulations, are incorporated as dictated by specific procurement circumstances.

Instructions to Bidders

• Provides the information bidders need to prepare responsive bids according to Procuring Entity requirements.
• It furnishes information on bid submission, opening, evaluation, and contract award.
• Includes: Scope of Bid, Source of Funds, Procedure for clarifications, Bid preparation – form, Language, Pricing and currencies, Bid evaluation criteria and procedures, Closing Date, Bid submission procedure, Corrections, Bid Validity

Bid Data Sheet

• The Bid Data Sheet assists the Procuring Entity by providing specific information in relation to corresponding stipulations in the ITB included in Section II.
• Information specifies and complements Section II provisions.
• Amendments/supplements to Section II provisions, are incorporated based on the circumstances of the specific procurement.

General Conditions of Contract

• Read in conjunction with the Special Conditions of Contract and other listed documents, should express all parties' rights and obligations.
• Include: Scope of Contract, Contractor's Obligations, Warranty, Liability of the Contractor, Advance Payments

Categories of General Conditions

• General conditions set out the basic duties and responsibilities of the parties
• The section identifies project parties and their roles, outlines each party's rights, obligations, and notification requirements

Roles and Work of Parties

• For contractors: detailed descriptions of work, bonds and insurance requirements, warranties/guarantees
• For project owners: site conditions, change orders, rejection of defective work
• Construction projects often experience delays

Time

• Extensions can occur if the contractor is unable to complete their work because of delays, and contract allows for an extension
• It hinges on whether delays are "compensable" or "non-compensable."
• Delays are generally considered non-compensable if they could have been avoided by one of the parties.

Pricing & Payments

• Price and payment provisions will determine the full contract price and how payments are structured which may affect the important questions that affect bottom line: Will there be progress payments or a lump sum final payment?, How are progress payments scheduled?, What is the payment application process?, Will there be retainage?, How is substantial completion defined for your work?, What happens if the owner decides the work is defective or insufficient?

Suspension & Termination

• Outlines the circumstances for contract suspension/termination, due to owner funding issues or project delays
• Every construction contract contains a termination clause.
• Contracts can be terminated due to issues like breach of contract (for cause), frustration, convenience, or other listed reasons.

Changes

• Typically there are three types: change orders, changes in directive, and minor changes.
• Change Orders: It is essential that general conditions include detailed instructions on how change orders must be agreed upon, executed, and billed
• Change Directives: Provisions authorize the owner to unilaterally make changes to the work, with the price and schedule changes will be agreed upon later.
• Minor Changes: These are simple adjustments to the project that don't affect pricings or timing of performance.

Claims and Disputes

• The construction contract should include how these disagreements will be dealt with which should include: What types of notices are required when a disagreement arises?, Are there time limits for any claims against the owner?, If there is a non-payment issue should the contractor suspend his work, or continue performance as to not get behind schedule?
• Contracts often agree upon dispute resolution procedures like in-house practices, mediation, arbitration, and litigation.

Special Conditions of Contract

• These are intended to assist the Procuring Entity by providing contract-specific information relative to corresponding clauses in the General Conditions of Contract.
• Information complements provisions of the GCC.
• No special condition defeats or negates the general intent/purpose of the GCC provisions.

Specifications

• This is a set of precise and clear specifications to help Bidders to respond realistically and competitively to the requirements of the Procuring Entity
• The Specifications must be drafted to permit the widest possible competition and present a clear statement of the required standards of materials, other supplies, and workmanship

Drawings

• A simplified map should indicate major roads, posts, airports, and railroads.
• Construction drawings, even if not fully developed, should show sufficient details to enable bidders to understand the type and complexity of the work involved and the price the Bill of Quantities.

Bill of Quantities

• The objectives of the Bill of Quantities are: Provide sufficient information on the quantities of Works to be performed to enable Bids to be prepared efficiently and accurately and provide a priced Bill of Quantities for use in the periodic valuation of Works executed.
• Layout of content should be simple and brief.