Government of Nepal

Ministry of Physical Planning and Works

Department of Roads
Hulaki Rajmarga Project

BIDDING DOCUMENT

Contract no.:... -HRP/2067/68

Construction of .......... Bridge

Along
..........................

Name & Address of the Bidder:

2067 (2010)

Page i
Table of Contents

Section I. Invitation for Bids (IFB)......................................................................3

Section II Instructions to Bidders (ITB)..............................................................5

Special Instruction to Bidders for e-bidding........................................................24

Section III. Sample Forms of Bid, Qualification Information, Letter of Intention to

Award, Letter of Acceptance and Agreement..................................28

Section IV. General Conditions of Contract (GCC)............................................36

Section V. Special Conditions of Contract (SCC)...............................................58

Section VI. Specifications...................................................................................62

Section VII.Drawings..........................................................................................67

Section VIII. Bill of Quantities..............................................................................68

Section IX. Sample Forms of Securities.............................................................74

Page ii
Section II. Instruction to Bidders

Section I. Invitation for Bids (IFB)

Government of Nepal
Ministry of Physical Planning and Works
Department of Roads
Hulaki Rajmarga Project

Invitation for Bids

Notice No: ....-2067/68
Date of first publication: .............

Name of Contract: Construction of Bridges on following on .............. sector of ....................

1. The Department of Roads, Hulaki Rajmarga Project invites sealed bids from registered contractors
for Construction of Bridges listed in the table below.
2. Eligible Bidders may obtain further information and inspect the bidding documents at the office of Hulaki
Rajmarga Project, Babar Mahal (Room No. 320), Tel: 4249991/4262693 ext 2346, 2347 or 2348 or may
visit DOR website http://www.dor.gov.np e-procurement section.
3. A complete set of bidding documents in English may be purchased on or before …………….. from Room
No. 320, Department of Roads, Babar Mahal by eligible Bidders on submission of a written application and
upon payment of a non-refundable fee as mentioned in the table below for each contract.
4. Bidders who choose to submit their bid electronically through e-procurement section of DOR’s website
http://www.dor.gov.np, the bidders may either purchase the hard copy of bidding documents from the above
office or may choose to download the necessary parts of the bidding documents, prepare their Bid and
submit their electronic Bids as specified in the Instruction to Bidders. In case the bidder chooses to download
and submit bid electronically, the bidder shall deposit the non refundable fee as specified above in Revenue
Head no 1-1-05-99, Office code No. 27-48-52, Account No. Ka. 1-1- 291 and submit the scanned
electronic copy(*.pdf format) of the bank deposit voucher along with the electronic Bid files.
5. Bids must be submitted to Room No. 320, Department of Roads, Babar Mahal on or before 12:00 hours,
……………….. Documents received after this deadline shall not be accepted. Alternatively, bidders may
submit their bid electronically through e-procurement section in DOR website http://www.dor.gov.np as
specified in the instruction to bidders. Late bids will be rejected.
6. Bids shall be opened in the presence of Bidders' representatives who choose to attend at 13:00 hours,
………………. at the office of Hulaki Rajmarga Project. Bids must be valid for a period of 90 days after bid
opening and must be accompanied by bid security, amounting to a minimum of 2.5 % of the quoted Bid
amount (inclusive of VAT) for each Bid, which shall be valid for 30 days beyond the Bid validity period.
7. If a Bidder wishes to submit the Bid Security in the form of cash, the cash should be deposited in Deposit
Account No. Sa.A. 132040/066 at Nepal Rastra bank and submit the receipt of the deposited amount of
cash along with the bid.
8. If the last date of purchasing, submission and opening falls on a government holiday then the next working
day shall be considered as the last day.
9. Bidders are advised to visit site and assess the actual site conditions before submitting their bid.
10. The Employer reserves the right to accept or reject, wholly or partly any or all the bids or cancel the bidding
process without assigning any reason, whatsoever
11. A Pre-Bid Meeting shall be held at the office of Hulaki Rajmarga Project on ................. at 12:00 hours.

Page 3
Section II. Instruction to Bidders

12. Name of the bridges and requirements

Contract Name of the Fee for Average Minimum Minimum Work Experience of
No. Bridge Bid Annual Liquid Asset similar nature of works in the last
docume Turnover of and/or 10 years
nt (NRs) the best 3 Credit
years over the facilities
last 10 years (NRs)
(NRs)

Project Manager

Page 4
Section II. Instruction to Bidders

Section II. Instructions to Bidders

A. General
1. Scope of Bid 1.1 The Employer as defined in the Bidding Data invites Bids for the
construction of Works, as described in the Bidding Data. The name
and identification number of the Contract are provided in the Bidding
Data.

1.2 The successful Bidder will be expected to complete the Works by

the Intended Completion Date specified in the Bidding Data and
Special Conditions of Contract (SCC).

2. Source of 2.1 The Government of Nepal has made budgetary allocation or intends
Funds to apply part of the funds of a loan/credit/grant from the Donor
Agency, as defined in the Bidding Data towards the cost of the
Project, as defined in the Bidding Data, to cover eligible payments
under the Contract for the Works. Payments by the Donor Agency
will be made only at the request of GoN and upon approval by the
Donor Agency in accordance with the loan/credit/grant agreement,
and will be subject in all respects to the terms and conditions of that
agreement. Except as the Donor Agency may specifically otherwise
agree, no party other than GoN shall derive any rights from the
loan/credit/grant agreement or have any rights to the
loan/credit/grant proceeds.

3. Eligible Bidders 3.1 This invitation for Bids is open to all registered Bidders with
qualifications as described in the Bidding Data.

3.2 All Bidders shall provide in Section III, Forms of Bid and
Qualification Information, a statement that the Bidder (including all
members of a joint venture and subcontractors) is not associated,
nor has been associated in the past, directly or indirectly, with the
consultant or any other entity that has prepared the design,
specifications and other documents for the Project or being
proposed as Project Manager for the Contract. A firm that has been
engaged by the Employer to provide consulting services for the
preparation or supervision of the Works, and any of its affiliates,
shall not be eligible to Bid.

3.3 Government-owned enterprises may only participate if they are

legally and financially autonomous, operate under commercial law,
and are not a dependent agency of the Employer.

4. Qualification of
the Bidder 4.1 All Bidders shall provide in Section III, Forms of Bid and
Qualification Information, a preliminary description of the proposed
work method and schedule, including drawings and charts, as
required in the Qualification Information.

4.2 In the event that prequalification of potential Bidders has been

undertaken, only Bids from prequalified Bidders will be considered
for award of Contract. These qualified Bidders should submit with
their Bids, unless otherwise stated in the Bidding Data any
information updating their original prequalification applications or,

Page 5
Section II. Instruction to Bidders

alternatively, confirm in their Bids that the originally-submitted

prequalification information remains essentially correct as of the
date of bid submission. The update or confirmation should be
provided in Section III.

4.3 If the Employer has not undertaken prequalification of potential

Bidders, all Bidders shall include the following information and
documents with their Bids in Section III, unless otherwise stated in
the Bidding Data:
a. copies of original documents defining the constitution or legal
status, place of registration, and principal place of business;
written power of attorney of the signatory of the bid to commit
the Bidder;
b. total monetary value of construction work performed for each
of the last ten years;
c. experience in works of a similar nature and size for each of the
last ten years, and details of work under way or contractually
committed; and clients who may be contacted for further
information on those contracts (to comply with this
requirement, works cited shall be at least 80% complete);
d. major items of construction equipment proposed to carry out
the Contract;
e. qualifications and experience of key site management and
technical personnel proposed for the Contract;
f. reports on the financial standing of the Bidder, such as profit
and loss statements and auditor’s reports for the past ten
years;
g. evidence of adequacy of working capital for this Contract
(access to line(s) of credit and availability of other financial
resources);
h. authority to seek references from the Bidder’s bankers;
i. information regarding any litigation, current or during the last
five years, in which the Bidder is involved, the parties
concerned, and disputed amount; and
j. proposals for subcontracting components of the Works
amounting to more than 10 percent of the Contract Price.

4.4 Bids submitted by a joint venture of two or more firms as partners,

limitation of number of partners as specified in Bidding Data, shall
comply with the following requirements, unless otherwise stated in
the Bidding Data:
a. the bid shall include all the information listed in Sub-Clause 4.3
above for each joint venture partner;
b. the bid shall be signed so as to be legally binding on all
partners;
c. all partners shall be jointly and severally liable for the
execution of the Contract in accordance with the Contract
terms;
k. one of the partners will be nominated as being in charge,
authorised to incur liabilities, and receive instructions for and

Page 6
Section II. Instruction to Bidders

on behalf of any and all partners of the joint venture; and this
authorization shall be evidenced by submitting a power of
attorney signed by legally authorized signatories of all the
partners; and
l. the execution of the entire Contract, including payment, shall
be done exclusively with the partner in charge.

4.5 To qualify for award of the Contract, Bidders shall meet the following
minimum qualifying criteria:
a. general Work Experience as a sole prime contractor or
management contractor or partner of joint venture association
or sub contractor as specified in Bidding Data.
b. average annual volume of construction work completed as a
sole prime contractor or management contractor or partner of
joint venture association or sub contractor in the last ten years
of at least the amount specified in the Bidding Data;
c. successful specific experience as prime contractor or
management contractor or partner of joint venture association
or sub contractor in the construction of at least the number of
works, each with a value as specified in Bidding Data of a
nature and complexity equivalent to the Works in the last ten
years (to comply with this requirement, works cited shall be at
least 80 percent complete.
d. liquid assets and/or credit facilities, net of other contractual
commitments and exclusive of any advance payments which
may be made under the Contract, of no less than the amount
specified in the Bidding Data
e. a Contract Manager with five years’ experience in works of an
equivalent nature and volume, including no less than three
years as Contract Manager and other personnel as specified
in the Bidding Data; and
f. proposals for the timely acquisition (own, lease, hire, etc.) of
the essential equipment in working condition for the contract
duration listed in the Bidding Data ;
m.

4.6 The figures for each of the partners of a joint venture shall be added
together to determine the Bidder’s compliance with the minimum
qualifying criteria of ITB Sub-Clause 4.5 above. However, for a joint
venture to qualify, each of it’s partners must meet the qualifying
criteria of 4.5 (a); at least the percentage specified in Bidding Data
of minimum criteria 4.5(b) and (d) for an individual Bidder and the
partner in charge at least the percentage specified in the Bidding
Data of minimum criteria 4.5 (b); (c) and (d) Failure to comply with
this requirement will result in rejection of the joint venture’s bid.
Subcontractors’ experience and resources will not be taken into
account in determining the Bidder’s compliance with the qualifying
criteria, unless otherwise stated in the Bidding Data.
4.7 The values of Turnover and Specific work experiences pursuant to
Sub-Clause 4.5(b) and (c ) will be brought to the current value using
the annual inflation rate (National Urban Consumer Price Index;
Overall Index) published by Nepal Rastra Bank

4.8 Domestic Bidders and joint ventures of domestic and foreign

Page 7
Section II. Instruction to Bidders

Bidders applying for eligibility for a domestic margin of preference in

bid evaluation shall supply all information to satisfy the criteria for
eligibility as described in Clause 30 of these Instructions to Bidders.

5. One Bid per 5.1 Each Bidder shall submit only one bid, either individually or as a
Bidder partner in a joint venture. A Bidder who submits or participates in
more than one bid (other than as a subcontractor or in cases of
alternatives that have been permitted or requested) shall cause all
the proposals with the Bidder’s participation to be disqualified.

6. Cost of Bidding 6.1 The Bidder shall bear all costs associated with the preparation and
submission of his bid, and the Employer will in no case be
responsible or liable for those costs.

7. Site Visit 7.1 The Bidder, at the Bidder’s own responsibility and risk, is
encouraged to visit and examine the Site of Works and its
surroundings and obtain 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.

B. Bidding Documents
8. Contents of 8.1 The set of Bidding documents provided by the Employer comprises
Bidding the documents listed in the table below and addenda issued in
Documents accordance with Clause 10:

Section I Invitation for Bids

II Instructions to Bidders
III Sample Forms of Bid, Qualification Information,
Letter of Acceptance and Agreement
IV General Conditions of Contract (GCC)
V Special Conditions of Contract (SCC)
VI Specifications
VII Drawings
VIII Bill of Quantities
IX Sample Forms of Securities

9. Clarification of 9.1 A prospective Bidder requiring any clarification of the Bidding

Bidding documents may notify the Employer in writing or by fax at the
Documents Employer’s address indicated in the Invitation for Bids or Bidding
Data. The Employer will respond to any request for clarification
received earlier than the number of days prior to the deadline for
submission of Bids as specified in the Bidding Data. Copies of the
Employer’s response will be forwarded to all purchasers of the
Bidding documents, including a description of the inquiry, but
without identifying its source.

10. Amendment of 10.1 Before the deadline for submission of Bids, the Employer may
Bidding modify the Bidding documents by issuing addenda.
Documents

10.2 Any addendum thus issued shall be part of the Bidding documents
and shall be communicated in writing or by fax to all purchasers of
the Bidding documents. Prospective Bidders shall acknowledge
receipt of each addendum by fax to the Employer

10.3 To give prospective Bidders reasonable time in which to take an

addendum into account in preparing their Bids, the Employer shall

Page 8
Section II. Instruction to Bidders

extend, as necessary, the deadline for submission of Bids, in

accordance with Sub-Clause 20.2 below.

C. Preparation of Bids

11. Language of Bid 11.1 All documents relating to the bid shall be in English.

12. Documents 12.1 The bid submitted by the Bidder shall comprise the following:
Comprising the
i. The bid (in the format indicated in Section III including SCC);
Bid
ii. Bid Security;
iii. Priced Bill of Quantities;
iv. Qualification Information Form and Documents;
v. Information on eligibility;
vi. Any other materials required to be completed and submitted by
Bidders, as specified in the Bidding Data.

13. Bid Prices 13.1 The Contract shall be for the whole Works, as described in Sub-
Clause 1.1, based on the priced Bill of Quantities submitted by the
Bidder.

13.2 The Bidder shall fill in rates and prices for all items of the Works
described in the Bill of Quantities. Items for 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 other rates and
prices in the Bill of Quantities.

13.3 All duties, taxes and other levies payable by the Contractor under
the Contract, or for any other cause, as of the date 30 days prior to
the deadline for submission of Bids, shall be included in the rates,
prices and total Bid Price submitted by the Bidder.

13.4 The rates and prices quoted by the Bidder shall be subject to
adjustment during the performance of the Contract if provided for
in the Bidding Data and SCC and the provisions of Clause 46 of
the General Conditions of Contract. The Bidder shall submit with
the bid all the information required under the SCC and Clause 46
of the General Conditions of Contract.]

. 13.5 Local Agent: Statement and disclosure of Local Agent.

A foreign Bidder wishing to have or already having a local agent
should state the following:
a. Name and address of the agent/representative.
b. The agent/representative providing type of services.
c. Amount of commission the agent/representative is entitled to
receive, currency of payment and procedure of payment.
d. Other agreement with agent/representative, if any.

e. In case the agent/representative is a Nepali citizen or firm

then the attested copy of PAN and letter of acceptance to be
the local agent

Page 9
Section II. Instruction to Bidders

f. The Bidder should certify as follows:

“We certify that the statement and disclosure made by us on

the above are complete and true to the best of our knowledge
and belief”.

If the agent has not been appointed:

a. Source of information about tender invitation,
b. The remuneration given to the individual or firm/company
or organization to work on his behalf for submitting tender,
representation in the bid opening and other required action
in connection with the tender

c. Transfer or handover an evidence of foreign currency

exchanged which required to be submitted with the tender,
d. If the bank account of any Nepali citizen has been used for
the exchange of foreign currency specify the name of the
individual and his address. If the foreign currency has
been exchanged by self then the certificate of currency
exchanged issued by the bank.

13.6 If a foreign Bidder in his Bid, has not provided the information
mentioned in Sub Clause 13.5 or has submitted his bid stating
that the Bidder does not have a local agent and later it is proved
that the bidder has a local agent or it is proved that the
commission mentioned in the Bid is less than the commission
received by the local agent then the Employer shall initiate
proceedings to black list such bidder.

13.7 Discount: If the Bidder intends to offer any discount, it should

always be expressed in percentage and that will be applicable to
each unit rate

14. Currencies of
Bid and Payment 14.1 The unit rates and prices shall be quoted by the Bidder entirely in
Nepalese Rupees. Foreign currency requirements of the Bidder, if
any, for import of equipment and materials not produced or not
available in Nepal shall be indicated as a percentage of the Bid
Price (excluding provisional sums) and shall be paid by the
Employer in the foreign currencies so specified by the Bidder as an
Advance Payment pursuant to Clause 50 of the General
Conditions of Contract up to a limit of 20% of the contract price.
Foreign currency shall be payable at the option of the Bidder in up
to three foreign currencies of any country acceptable to the
Employer.

14.2 The rates of exchange to be used by the Bidder in arriving at the

local currency equivalent and the percentage(s) mentioned in Sub-
Clause 14.1 above shall be the selling exchange rates used for
similar transactions as published by Nepal Rastra Bank prevailing
on the date 28 days prior to the latest deadline for submission of
Bids. These exchange rates shall apply for all payments including
Advance Payment to be made by the Employer pursuant to Clause
50 of the General Conditions of Contract so that no exchange risk
will be borne by the Bidder. If the Bidder uses other rates of

Page 10
Section II. Instruction to Bidders

exchange, the provisions of Sub-Clause 28.1 shall apply. In any

case, payments will be computed using the rates quoted in the bid.

14.3 Bidders shall indicate details of their expected foreign currency

requirements in the bid.

14.4 Bidders may be required by the Employer to clarify their foreign

currency requirements and to substantiate that the amounts
included in the rates and prices and in the SCC are reasonable
and responsive to Sub-Clause 14.1.

15. Bid Validity 15.1 Bids shall remain valid for the period specified in the Bidding Data.

15.2 In exceptional circumstances, the Employer may request that the

Bidders extend the period of validity for a specified additional
period. The request and the Bidders’ responses shall be made in
writing or by fax. A Bidder may refuse the request without
forfeiting the Bid Security. A Bidder agreeing to the request will not
be required or permitted to otherwise modify the bid, but will be
required to extend the validity of Bid Security for the period of the
extension, and in compliance with Sub-Clause 16 in all respects.

15.3 In the case of contracts in which the Contract Price is fixed (not
subject to price adjustment), if the period of bid validity is extended
beyond 56 days, the amounts payable in local and foreign currency
to the Bidder selected for award shall be increased by applying to
both the local and the foreign currency component of the
payments, respectively, the factors specified in the Bidding Data or
in the request for extension, for the period of delay beyond 56 days
after the expiry of the initial bid validity, up to the notification of
award. Bid evaluation will be based on the Bid Prices without
taking the above correction into consideration.

16. Bid Security 16.1 The Bidder shall furnish, as part of the bid, a Bid Security in
Nepalese Rupees in the amount specified in the Invitation for Bids.

16.2 The Bid Security shall, at the Bidder’s option, be in the form of
earnest money, bank draft or a bank guarantee from a reputable
bank in Nepal acceptable to the Employer or from a foreign bank
endorsed by the local bank in Nepal acceptable to the Employer.
The format of the bank guarantee shall be in accordance with the
form of Bid Security included in Section IX; other formats may be
permitted, subject to the prior approval of the Employer. The Bid
Security shall remain valid for a period of 30 days beyond the
original validity period for the bid and any period of extension
subsequently requested under Sub-Clause 15.2.

16.3 Any bid not accompanied by an acceptable Bid Security shall be

rejected by the Employer. The Bid Security of a joint venture must
define as “Bidder” all joint venture partners and list them in the
following manner: a joint venture consisting of “______,” “______,”
and “______”.

16.4 The Bid Security of unsuccessful Bidders will be returned within 30

days of the end of the bid validity period specified in Sub-Clause
15.1.

16.5 The Bid Security of the successful Bidder will be discharged when
the Bidder has signed the Agreement and furnished the required
Performance Security.

Page 11
Section II. Instruction to Bidders

16.6 The Bid Security may be forfeited

a. if the Bidder withdraws the bid after bid opening during the
period of bid validity; or
b. if the Bidder does not accept the correction of the Bid Price,
pursuant to Clause 27; or
c. in the case of a successful Bidder, if the Bidder fails within the
specified time limit to
(i) sign the Agreement; or
(ii) furnish the required Performance Security.

17. Alternative 17.1 Bidders shall submit offers that comply with the requirements of
Proposals by the Bidding documents, including the basic technical design as
Bidders indicated in the Drawings and Specifications. Alternatives will not
be considered unless specifically allowed in the Bidding Data. If so
allowed, Sub-Clause 17.2 shall govern.

17.2 If so allowed in the Bidding Data, Bidders wishing to offer technical

alternatives to the requirements of the Bidding documents must
also submit a bid that complies with the requirements of the
Bidding documents, including the basic technical design as
indicated in the Drawings and Specifications. In addition to
submitting the basic bid, the Bidder shall provide all information
necessary for a complete evaluation of the alternative by the
Employer, including design calculations, technical specifications,
breakdown of prices, proposed construction methods and other
relevant details. Only the technical alternatives, if any, of the
lowest evaluated Bidder conforming to the basic technical
requirements shall be considered by the Employer.

18. Format and 18.1 The Bidder shall prepare one original of the documents comprising
Signing of Bid the bid as described in Clause 12 of these Instructions to Bidders,
bound with the volume containing the form of bid, and clearly
marked “ORIGINAL.” In addition, the Bidder shall submit one copy
of the bid clearly marked as “COPY.” In the event of discrepancy
between them, the original shall prevail.

18.2 The original and a copy of the bid shall be typed or written in
indelible ink and shall be signed by a person or persons duly
authorised to sign on behalf of the Bidder. This authorization shall
consist of a written confirmation as specified in the Bidding Data
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. All pages of the bid where entries or
amendments have been made shall be initialled by the person or
persons signing the bid.
18.3 The bid shall contain no alterations or additions, except those to
comply with instructions issued by the Employer, or as necessary
to correct errors made by the Bidder, in which case such
corrections shall be initialled by the person or persons signing the
bid.

18.4 The Bidder shall furnish information as described in the form of bid
on commissions or gratuities, if any, paid or to be paid to agents

Page 12
Section II. Instruction to Bidders

relating to this bid, and to contract execution if the Bidder is

awarded the Contract.

D. Submission of Bids
19. Submission, 19.1 The Bidder shall seal the original and a copy of the bid in two inner
Sealing and envelopes and one outer envelope, duly marking the inner
Marking of Bids envelopes as “ORIGINAL” and “COPY”.

19.2 The inner and outer envelopes shall:

a. be addressed to the Employer at the address provided in the
Bidding Data;

n. bear the name and identification number of the Contract as

defined in the Bidding Data and SCC; and
o. provide a warning not to open before the specified time and
date for bid opening as defined in the Bidding Data..

19.3 In addition to the identification required in Sub-Clause 19.2, the

outer envelopes shall indicate the name and address of the Bidder
to enable the bid to be returned unopened in case it is declared
late, pursuant to Clause 21.

19.4 If the outer envelope is not sealed and marked as above, the
Employer will assume no responsibility for the misplacement or
premature opening of the bid.

20. Deadline for 20.1 Bids shall be delivered to the Employer at the address specified in
Submission of the Bidding Data no later than the time and date specified in the
Bids Bidding Data.

20.2 The Employer may extend the deadline for submission of Bids by
issuing an amendment in accordance with Clause 10, in which
case all rights and obligations of the Employer and the Bidders
previously subject to the original deadline will then be subject to
the new deadline.

21. Late Bids 21.1 Any bid received by the Employer after the deadline prescribed in
Clause 20 will be returned unopened to the Bidder.

22. Withdrawal, and 22.1 Bidders may withdraw or modify their Bids after it has been
Modification of submitted by giving a written notice, duly signed by an authorized
Bids representative and shall include a copy of the authorization in
accordance with Clause 18.2 before the deadline prescribed in
Clause 20.The corresponding modification of the bid must
accompany the respective written notice.

22.2 Each Bidder’s withdrawal or modification notice shall be

prepared, sealed, marked, and delivered in accordance with
Clauses 18 and 19, with the outer and inner envelopes additionally
marked “WTHDRAWAL” or “MODIFICATION” as appropriate.

22.3 No bid may be modified after the deadline for submission of Bids.

22.4 Withdrawal of a bid between the deadline for submission of Bids

and the expiration of the period of bid validity specified in the
Bidding Data or as extended pursuant to Sub-Clause 15.2 may

Page 13
Section II. Instruction to Bidders

result in the forfeiture of the Bid Security pursuant to Clause 16.

22.5 Bidders may only offer discounts to, or otherwise modify the prices
of their Bids by submitting bid modifications in accordance with this
clause, or included in the original bid submission. Intended
discount offer should always be expressed in percentage to be
applied to each unit rate.

E. Bid Opening and Evaluation

23. Bid Opening 23.1 The Employer will open the Bids, including modifications made
pursuant to Clause 22, in the presence of the Bidders’
representatives who choose to attend at the time and in the place
specified in the Bidding Data.

23.2 First envelopes marked “WITHDRAWAL” shall be opened and read

out and the envelope with the corresponding bid shall not be
opened. 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 “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 the bid opening shall be
considered further.

23.3 The Bidders’ names, the Bid Prices, the total amount of each bid
and of any alternative bid (if alternatives have been requested or
permitted), any discounts, bid withdrawal and modification, the
presence or absence of Bid Security, difference of rate in words and
figures, quoted price for alternate technical specification if
proposed, weather the Bid Form has signature of the bidder or
authorized representative, corrections/effacement or obliteration in
bidding document, any remarks made by the bidder in the Bid
Form, details of rates if requested and such other details as the
Employer may consider appropriate will be announced by the
Employer at the bid opening.

23.4 The Employer will prepare minutes of the bid opening, including the
information disclosed to those present in accordance with Sub-
Clause 23.3.

24. Process to Be 24.1 Information relating to the examination, clarification, evaluation and
Confidential comparison of Bids and recommendations for the award of contract
shall not be disclosed to Bidders or any other persons not officially
concerned with such process until the award to the successful
Bidder has been announced.

25. Clarification of 25.1 To assist in the examination, evaluation and comparison of Bids,
Bids and the Employer may, at the Employer’s discretion, ask any Bidder for
Contacting the clarification of the Bidder’s bid, including breakdowns of unit rates.
Employer The request for clarification and the response shall be in writing or
by facsimile, but no change in the price or substance of the bid shall
be sought, offered, or permitted except as required to confirm the
correction of arithmetic errors discovered by the Employer in the
evaluation of the Bids in accordance with Clause 27.

Page 14
Section II. Instruction to Bidders

25.2 Subject to Sub-clause 25.1, no Bidder shall contact the Employer

on any matter relating to his bid from the time of the bid opening to
the time the contract is awarded. If the Bidder wishes to bring
additional information to the notice of the Employer, he should do
so in writing.

25.3 Any efforts by the Bidder to influence the Employer in the

Employer’s bid evaluation, bid comparison or contract award
decisions may result the rejection of the Bidder’s bid.

26. Examination of 26.1 Prior to the detailed evaluation of Bids, the Employer will determine
Bids and whether each bid (a) meets the eligibility criteria defined in Clause
Determination of 3; (b) has been properly signed; (c) is accompanied by the required
Responsiveness securities; and (d) is substantially responsive to the requirements of
the Bidding documents.

26.2 A substantially responsive bid is one which conforms to all the

terms, conditions, and specifications of the Bidding documents,
without material deviation or reservation. A material deviation or
reservation is one (a) which affects in any substantial way the
scope, quality, or performance of the Works; (b) which limits in any
substantial way, inconsistent with the Bidding documents, the
Employer’s rights or the Bidder’s obligations under the Contract; or
(c) whose rectification would affect unfairly the competitive position
of other Bidders presenting substantially responsive Bids.

26.3 If a bid is not substantially responsive, it will be rejected by the

Employer, and may not subsequently be made responsive by
correction or withdrawal of the nonconforming deviation or
reservation.

27. Correction of 27.1 Bids determined to be substantially responsive will be checked by

Errors the Employer for any arithmetic errors. Errors will be corrected by
the Employer as follows:
a. where there is a discrepancy between the amounts in figures
and in words, the amount in words will govern; and
b. where there is a discrepancy between the unit rate and the
line item total resulting from multiplying the unit rate by the
quantity, the unit rate as quoted will govern, unless in the
opinion of the Employer there is an obviously gross
misplacement of the decimal point in the unit rate, in which
case the line item total as quoted will govern, and the unit rate
will be corrected.

27.2 The amount stated in the bid will be adjusted by the Employer in
accordance with the above procedure for the correction of errors
and, with the concurrence of the Bidder, shall be considered as
binding upon the Bidder. If the Bidder does not accept the
corrected amount, the bid will be rejected and the Bid Security may
be forfeited in accordance with Sub-Clause 16.6(b).

28. Currency for Bid 28.1 Bids will be evaluated as quoted in Nepalese Rupees in accordance
Evaluation with Sub-Clause 14.1, unless a Bidder has used different exchange
rates than those prescribed in Sub-Clause 14.2, in which case the
bid will be first converted into the amounts payable in different
currencies using the rates quoted in the bid and then reconverted to
Nepalese Rupees using the exchange rates prescribed in Sub-
Clause 14.2.

Page 15
Section II. Instruction to Bidders

29. Evaluation and 29.1 The Employer will evaluate and compare only the Bids determined
Comparison of to be substantially responsive in accordance with Clause 26.
Bids
29.2 In evaluating the Bids, the Employer will determine for each bid the
evaluated Bid Price by adjusting the Bid Price as follows:
a. making any correction for errors pursuant to Clause 27;

b. excluding provisional sums and the provision, if any, for

contingencies in the Bill of Quantities, but including Daywork,
where priced competitively;
c. making an appropriate adjustment for any other acceptable
variations, deviations or alternative offers submitted in
accordance with Clause 17; and

d. making appropriate adjustments in unit rates to reflect

discounts or other price modifications offered in accordance
with Sub-Clause 22.5.

29.3 Further the employer shall evaluate :

a. Weather the construction work plan, work performance
schedule and mobilization period is consistent with the
requirement of the bidding document or not,
b. Weather the quoted item unit rates in the Bill of quantities are
reliable or not,
c. Weather or not the quoted price is unbalanced due to
unnaturally high rates quoted by the bidder for work items to be
completed in the initial stages of the contract or for work items
whose quantities are assumed by the bidder to be
underestimated.

29.4 If the bid, which results in the lowest Evaluated Bid price, is
unbalanced or frontloaded in relation to the Employer’s estimate of
the items of Work to be performed under the contract pursuant to
Sub- Clause 29.3, the Employer shall ask the bidder to give
clarification with detailed rate analysis for any or all items of the Bill
of Quantities. If the clarification is found satisfactory then the
Employer shall increase at the expense of the bidder the
performance security set forth in Clause 34 by an additional 8% of
the quoted amount to protect the Employer against financial loss in
the event of default of the successful bidder under the contract and
if the clarification is found unsatisfactory then the Employer may
reject such bid.

29.5 The Employer reserves the right to accept or reject any variation
deviation or alternative offer. Variations, deviations, and alternative
offers and other factors which are in excess of the requirements of
the Bidding documents or otherwise result in unsolicited benefits for
the Employer will not be taken into account in bid evaluation.

29.6 The estimated effect of any price adjustment conditions under

Clause 46 of the General Conditions of Contract, during the period
of implementation of the Contract, will not be taken into account in
bid evaluation.

29.7

Page 16
Section II. Instruction to Bidders

30. Preference for 30.1 Domestic Bidders shall provide all evidence necessary to prove that
Domestic they meet the following criteria to be eligible for a margin of
Bidders preference stated below in the comparison of their Bids with those
of Bidders who do not qualify for the preference.

30.2 Domestic Bidders which meet the following criteria shall be given a
preference as specified in the Bidding Data.
a. for an individual firm or joint venture of firms:
i. each firm is registered in Nepal;
ii. each firm has more than 50 percent ownership by
nationals of Nepal;
iii. will not subcontract more than 50 percent of the total
value of the Works to foreign contractors;
iv. satisfies any other criteria specified for the purpose of
domestic preference eligibility in the Bidding Data.
p. for a joint venture between domestic and foreign firms:
v. each domestic firm is eligible for the preference according
to the criteria stated in Clause 30.2 (a) above;
vi. at least 50 percent interest in the joint venture is held by
the Nepalese firms as demonstrated by the profit and loss
sharing provisions of the joint venture agreement;
vii. will not subcontract more than 50% of the total value of
the works to the foreign partner or other foreign firms;
viii. satisfies any other criteria specified for the purpose of
domestic preference eligibility in the Bidding Data..

30.4 The following procedure will be used to apply the margin of

preference:
a. Responsive Bids will be classified into the following groups:
i. Group A: Bids offered by domestic Bidders and joint
ventures meeting the respective criteria of Sub-Clause
30.2 above; and
ii. Group B: all other Bids.

q. If Domestic preference is applicable as per Bidding Data

provision of Sub Clause 30.2 then for the purpose of further
evaluation and comparison of Bids only, an amount equal to
the specified domestic preference percentage of the evaluated
Bid Prices determined in accordance with Sub-Clause 29.2 will
be added to all Bids classified in Group B.

F. Award of Contract

31. Award Criteria 31.1 Subject to Clause 32, the Employer will select and award the Contract
and Intention to the Bidder whose bid has been determined to be substantially
to Award responsive to the Bidding documents and who has offered the lowest
evaluated Bid Price, provided that such Bidder has been determined
to be (a) eligible in accordance with the provisions of Clause 3 and
(b) qualified in accordance with the provisions of Clause 4.

Page 17
Section II. Instruction to Bidders

31.2 The Employer shall notify it’s intention to award the Contract to the
selected bidder in accordance with Sub-Clause 31.1 within 7 days of
selection of his bid. Further, the employer shall also provide
information regarding the name, address and the contract amount of
the successful bidder to all the bidders who participated in the bid.

31.3 Any Bidder who is not satisfied with the procurement process or
Employer’s decision provided as per Sub - Clause 31.2 and believes
that the Employer has committed an error or breach of duty which
has or will result in loss to the bidder then the bidder may give an
application for review of the decision to the Employer with reference
to the error or breach of duty committed by the Employer. The review
application should be given within 7 days of receipt of information
regarding the issue of letter by the Employer notifying it’s intention to
award the contract to the successful bidder.

31.4 If the review application is not received by the Employer pursuant to

Sub-Clause 31.3 then the bid of the Bidder selected as per Sub-
Clause 31.1 shall be accepted by the Employer.

32. Employer’s 32.1 Notwithstanding Clause 31, the Employer reserves the right to accept
Right to or reject any bid, and to cancel the Bidding process and reject all
Accept any Bid Bids, at any time prior to the award of Contract, without thereby
and to Reject incurring any liability to the affected Bidder or Bidders or any
any or all Bids obligation to inform the affected Bidder or Bidders of the grounds for
the Employer’s action.

33. Notification of 33.1 The Bidder whose bid has been accepted in accordance with Sub-
Award and Clause 31.4 will be notified of the award by the Employer prior to
Signing of expiration of the bid validity period by facsimile confirmed by
Agreement registered letter. This letter (hereinafter and in the General Conditions
of Contract called the “Letter of Acceptance”) will state the sum that
the Employer will pay the Contractor in consideration of the execution,
completion and maintenance of the Works by the Contractor as
prescribed by the Contract (hereinafter and in the Contract called the
“Contract Price”).

33.2 The notification of award will constitute the formation of the Contract,
subject to the Bidder furnishing the Performance Security in
accordance with Clause 34 and signing the Agreement in accordance
with Sub-Clause 33.3.

33.3 The Agreement will incorporate all agreements between the Employer
and the successful Bidder. It will be signed by the Employer and sent
to the successful Bidder with the notification of award along with the
Letter of Acceptance. Within 15 days of receipt, the successful Bidder
shall sign the Agreement and deliver it to the Employer.

33.4 Upon the furnishing by the successful Bidder of the Performance

Security, the Employer will promptly notify the other Bidders that their
Bids have been unsuccessful.

34. Performance 34.1 Within 15 days after receipt of the Letter of Acceptance, the
Security successful Bidder shall deliver to the Employer a Performance
Security in the amount stipulated in the SCC and in the form
stipulated in the Bidding Data, denominated in the type and

Page 18
Section II. Instruction to Bidders

proportions of currencies in the Letter of Acceptance and in

accordance with the General Conditions of Contract.

34.2 If the Performance Security is provided by the successful Bidder in

the form of a bank guarantee, it shall be issued, at the Bidder’s option,
either (a) by a bank located in Nepal acceptable to the Employer or
(b) a foreign bank through a correspondent bank located in Nepal.

34.3 The Employer may use his own Performance Security form provided it
conforms to prevailing laws and regulations.

34.4 Failure of the successful Bidder to comply with the requirements of

Sub-Clause 34.1 and Sub-Clause 29.4 shall constitute sufficient
grounds for cancellation of the award and forfeiture of the Bid
Security.

35. Advance 35.1 The Employer shall make an Advance Payment on the Contract Price
Payment and as stipulated in the General Conditions of Contract, subject to a
Security maximum amount as stated in the Bidding Data.

36. Additional 36.1 The Contractor shall provide additional Performance Security pursuant
Securities to Sub-clause 29.4. Failure to do so shall result in forfeiture of the Bid
Security and award of the Contract to the next lowest evaluated
substantially responsive Bidder.

37.Adjudicator/ 37.1 If any dispute arises between the Employer and the Contractor in
Dispute Resolution connection with the execution of the Contract, the parties shall attempt
Board to settle such dispute amicably. If the parties fail to resolve the dispute
amicably then the dispute may be referred to the Adjudicator or
Dispute Resolution Board (DRB) as specified in the Bidding Data by
either party in writing.

37.2 If Adjudicator is specified pursuant Sub-Clause 37.1,he Employer

proposes the person named in the Bidding Data to be appointed as
Adjudicator under the Contract, at the hourly fee as specified in
Bidding Data 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 SCC pursuant to Clause 24.1
of the General Conditions of Contract (GCC), to appoint the
Adjudicator.

38. Corrupt or 38.1 The GoN requires that the Employer as well as Bidders observe the
Fraudulent highest standard of ethics during the procurement and execution of
Practices contracts. In pursuance of this policy, the GoN:
a. defines, for the purposes of this provision, the terms set forth
below as follows:
i. “corrupt practice” means the offering, giving, receiving or
soliciting of any thing of value to influence the action of a
public official in the procurement process or in contract
execution; and
ix. “fraudulent practice” means a misrepresentation of facts in
order to influence a procurement process or the execution
of a contract to the detriment of the Employer, and includes
collusive practice among Bidders (prior to or after bid
submission) designed to establish Bid Prices at artificial

Page 19
Section II. Instruction to Bidders

non-competitive levels and to deprive the Employer of the

benefits of free and open competition;
r. will reject a proposal for award if it determines that the Bidder
recommended for award has engaged in corrupt or fraudulent
practices in competing for the contract in question; and
c. will declare a firm ineligible for a stated period of time, to be
awarded a GoN funded contract if it at any time determines that
the firm has engaged in corrupt or fraudulent practices in
competing for, or in executing, a GoN -funded contract.

39.1 The Bidder shall be responsible to fulfill his obligations as per the
39. Conduct of
requirement of the Contract Agreement, Bidding documents, GoN’s
Bidders
Procurement Act and Regulations.
39.2 The Bidder shall not carry out or cause to carryout the following acts
with an intention to influence the implementation of the procurement
process or the procurement agreement :
a) give or propose improper inducement directly or indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent practice

d) interference in participation of other prospective bidders.

e) coercion or threatening directly or indirectly to cause harm to
the person or the property of any person to be involved in the
procurement proceedings,
f) collusive practice among bidders before or after submission of
bids for distribution of works among bidders or fixing
artificial/uncompetitive bid price with an intention to deprive
the Employer the benefit of open competitive bid price]
g) contacting the Employer wit an intention to influence the
Employer with regards to the bid or interference of any kind in
examination and evaluation of the bids during the period after
opening of bids up to the notification of award of contract

40. Blacklisting 40.1 Without prejudice to any other right of the Employer under this
Bidder contract, GoN, Public Procurement Monitoring Office may blacklist a
bidder for his conduct up to three years on the following grounds
and seriousness of the act committed by the bidder:

a) if it is proved that the bidder committed acts pursuant to the

clause 39.2,

b) if the bidder fails to sign an agreement pursuant to clause

28.4,

c) if it is proved later that the bidder/contractor has committed

substantial defect in implementation of the contract or has not
substantially fulfilled his obligations under the contract or the
completed work is not of the specified quality as per the
contract ,

d) if convicted by a court of law in a criminal offence which

disqualifies the bidder from participating in the contract.

Page 20
Section II. Instruction to Bidders

e) if it is proved that the contract agreement signed by the bidder

was based on false or misrepresentation of bidder’s
qualification information

f) other acts mentioned in the Bidding Data

40.2 A firm declared blacklisted and ineligible by the GON and or concerned
Donor Agency in case of donor funded project shall be ineligible to bid
for a contract during the period of time determined by the PPMO and
or the concerned donor agency.

Page 21
Section II. Instruction to Bidders

G. Bidding Data
ITB clause reference

A. General
ITB 1.1 The Employer is: Department of Roads

The Works are: Construction of ..........Bridge along .......................

The Intended Completion date is: ....................................

ITB 2.1 The Source of Fund: Government of Nepal

The “Donor “means: Not applicable

ITB 3.1 Bidder’s Eligibility Requirements are:

a) Up to date Firm/Company Registration Certificate
b) Business Registration License
c) VAT and PAN Registration Certificates
d) Tax Clearance Certificate or
Submissions of Tax Returns up to FY 2066/67
e) A written declaration made by the Bidder stating that the Bidder is not
ineligible to participate in the Bid; has no conflict of interest in the
proposed bid procurement proceedings and has not been punished for
the profession or businesses related offence.
f) Joint Venture Authorization/ Agreement (if any)
g) Power of Attorney
h) Other documents as needed

ITB 4.3 The information required from Bidders in Sub-Clause 4.3 is modified as follows:
none

ITB 4.4 Maximum number of members in a Joint venture: 3 (three)

The qualification data required from Bidders in Sub-Clause 4.4 are modified as
follows: none

ITB 4.5 The qualification criteria in Sub-Clause 4.5 are modified as follows:

ITB 4.5a General Work Experience:

Construction experiences for at least the last 5 years prior to the application
submission deadline

ITB 4.5b Minimum average annual volume of construction work for the best 3 years in the
last 10 years: NRs. ........ Million.

In case of turnover as a partner of JV the share of each JV partner shall be clearly

mentioned and supported by valid documents; otherwise the turnover shall not be
counted. The Bidders are advised to declare and/or submit the documents of
only the best 3 years of the firm in order to minimize errors in evaluation.

If two or more contracts are included in the same bid notice, a bidder with the
lowest corrected bid price in more than one contract may win only those contracts,
whose cumulative required turnover is equal to or less than the average annual
turnover of the bidder, provided the other conditions of qualifications are satisfied.

ITB 4.5c Specific Work Experience as follows

…………………………………………………………….

ITB 4.5d Minimum requirement of liquid asset and/or credit facilities: NRs ... Million.

Page 22
Section II. Instruction to Bidders

If two or more contracts are included in the same bid notice, a bidder with the
lowest corrected bid price in more than one contract may win only those contracts,
whose cumulative required liquid asset/credit facility is equal to or less than the
liquid asset/credit facility of the bidder, provided the other conditions of
qualifications are satisfied.

ITB 4.5e Additional Personnel requirement (if any): One graduate civil engineer with
experience in civil construction works required.

ITB 4.5f The minimum essential equipment requirement shall be as mentioned in Section III,
Qualification Information, Sub-clause 1.4.
At least one excavator in good working condition.

All the proposed essential equipment must be certified by a registered mechanical

engineer that those are in good working condition.

If two or more contracts are included in the same bid notice, a bidder with the
lowest corrected bid price in more than one contract may win only those contracts,
whose cumulative number of required equipment is equal to or less than the total
number equipment owned or leased by the bidder, provided the other conditions of
qualifications are satisfied.

ITB 4.6 Percentage to be met by each JV Partner of minimum criteria 4.5(b) and (d): 25%

Percentage to be met by the JV Partner in Charge of minimum criteria 4.5(b), (d):

40%

In case of requirement of 4.5(c) for JV, criteria specified in ITB 4.5(c) above must
be fulfilled.

ITB 9.1
Employer’s address for clarification purposes is:
Department of Roads
Hulaki Rajmarga Project, Room No. 320, Babar Mahal
Tel: 4262693 ext. 2346, 2347, 2348

ITB 12.1 Additional documents required: Not applicable

ITB 13.4 The Contract is subject to price adjustment in accordance with Clause 46 of the
Conditions of Contract.

ITB 14.1 The specified international trading currency shall be : Not applicable

ITB 15.1 The period of bid validity shall be 90 days after the deadline for bid submission.

ITB 15.3 The adjustment of Bid Price in accordance with Clause 15.3 shall be calculated on
the basis of an annual increase for foreign costs of … percent and an annual
increase for local costs of … percent: Not applicable .

ITB 16.1 The amount of Bid Security shall be: Amount equivalent to not less than 2.5% of
the quoted bid amount inclusive of VAT.

ITB 16.2 The Bid Security issued only by a commercial bank in Nepal licensed by Nepal
Rastra Bank as Category "A" bank.

Page 23
Section II. Instruction to Bidders

ITB 17.0 Alternative proposals to the requirements of the Bidding documents will not be
permitted.

ITB 18.2
The written confirmation of authorization to sign on behalf of the Bidder shall
indicate:
(a) 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.”]

TB 19.2 The Employer’s address for the purpose of bid submission is

Department of Roads
Hulaki Rajmarga Project, Room No. 320, Babar Mahal
In case of e-bidding of the Bids the Bidders shall follow the Special
Instruction for e-bidding provided at the end of these Bidding Data.

ITB 20.1 The deadline for submission of Bids shall be 12:00 hours, ..............

ITB 23.1 The bid opening shall take place at: office of Hulaki Rajmarga Project, Babar
Mahal, Kathmandu; Date: .........; Time: ....... hours

ITB 30.1 Domestic contractors to receive a margin of preference in Bid evaluation.

Not applicable

ITB 30.2 Domestic Preference to receive a margin of preference in Bid evaluation.

Not applicable

ITB 34.1 The Standard Form of Performance Security acceptable to the Employer shall be a
bank guarantee using the form provided in Section IX.

ITB 35.1 The Advance Payment shall be limited to 15 percent of the Contract Price in
pursuant to Clause 50 of the General Conditions of Contract.

ITB 37.1 Reference of Dispute to: “Adjudicator”: Dispute Resolution Board.

ITB 37.2 The Adjudicator proposed by the Employer is To be named as per Contract.
The hourly fee for this proposed Adjudicator shall be NRs 2000/hr
The biographical dataof the proposed Adjudicator is as follows: N/A

ITB 40.1f) Additional acts as ground for black listing : Not applicable.

Page 24
Section II. Instruction to Bidders

Special Instruction to Bidders for e-bidding

A) Bid submission procedure through electronically (e-submission):
 Interested bidders may either purchase the Bidding documents from the
Employer’s office as specified in the Tender Notice or choose to download the
necessary part of bidding documents from E-procurement section of DOR’s Web
Site http://www.dor.gov.np. In case, the Bidder choose to download the bidding
documents, prepare his bids on downloaded documents, and submit his bid
electronically, the Bidder is required to deposit the cost of bidding document (as
specified in the bid notice) in the Office’s Rajaswa (revenue) account as specified
below. In addition, electronic scanned copy (pdf format) of the Bank deposit
voucher shall be also required to be submitted along with the electronic bid files.
Information to deposit the cost of bidding document in Bank:
Name of Office: Hulaki Rajmarga Project
Office Code no. 27 – 48 - 52
Office Account no: Ka. 1 – 1 - 291
Rajaswa heading: 1 – 1 – 05 - 99
Dharauti Khata no: Sa. A. 132040 / 066

 The Bidder shall fill the following documents and forms (in hard copy), signed by
the authorised representative and with seal of the company.

S.No. Document PDF File name Requirement Remarks

Form of Bid Bid form -1 Mandatory
1
Bid Security (Bank Bid security-2 Mandatory
2
Guarantee)
Company Company reg-3 Mandatory All firms in
3
registration, case of JV
VAT registration VAT Reg-4 For National All firms in
4
firms case of JV
Tax clearances Tax-5 For National in case of JV
5
certificate, firms
6 Power of Attorney of Power of Mandatory
Bid signatory Attorney -6
7 Joint venture JV doc-7 Mandatory All firms in
agreement case of JV
8 Qualification Qualifications-8 Mandatory
Information
9 BOQ with rate, BOQ-9 Mandatory
amount and total
amount

The Bidder shall then scan the completed original documents, forms in PDF files with
appropriate filename as shown in the table below. PDF (Adobe acrobat) version must be
4.0 or above.
Declaration Letter for Eligibility of Bidder (as mentioned) shall be prepared and scanned

Page 25
Section II. Instruction to Bidders

and uploaded. Note; Mandatory means the mentioned files must be included in e-
submission and non-submission of such file shall be considered as non-responsive bid.
 For e-submission purpose the Bidder shall, at first, register in the e-procurement
section DOR’s Web site http://www.dor.gov.np

 After preparing all the required bidding documents in PDF scan files as specified
as above, the Bidder shall upload the PDF bid files and submit his complete bid
online through e-procurement section of DOR’s website http://www.dor.gov.np
within the specified date and time.
 Bidders shall be also explained about the details of e- submission procedures in the
pre-bid meeting who chose to attend.
 The e-procurement system will accept the e-submission of bid from the date after
publishing of notice and will automatically not allow the e-submission of bid after
the deadline for submission of bid, as specified above.
 The standard time for e-submission is Nepalese Standard Time as set out in the
server of Department of Roads. In case of e-submission of bids, the e-procurement
system will, automatically, not allow the e-submission of bid after the deadline for
submission of bid.
 When a bidder submits his bid in hard copy the e-procurement section does not
allow the bidder to submit his Substitution or Modification or Withdrawal through
e-procurement section of DOR’s Web site.
 Bidder may submit his Substitution or Modification or Withdrawal either in hard
copy or through e-submission.
 For Substitution of Bid the Bidder shall follow similar steps with a Substitution
letter in PDF file.
 For Modification or Withdrawal of bid the Bidder is required to submit PDF scan
copy of their Modification or Withdrawal letter and a written Power of Attorney of
the signatory for Modification/ Withdrawal, duly signed by Authorised
Representative/s of the Firm / all authorised Joint Venture partners.
 When a Bidder submits electronic bid by downloading the bidding documents from
the DOR’s webpage it is assumed that the Bidder prepares his bid by studying and
examining all the Bidding documents including specifications and conditions of
contract.
 In case, the Bidder choose to download the bidding documents and deposit the cost
of bidding document (as specified in the bid notice) in the Project’s Rajaswa
(revenue) account such deposited amount shall be verified by the office during bid
evaluation process. The bid shall be non-responsive and shall not be evaluated if
the specified cost for bidding document is not deposited in the specified Rajaswa
(revenue) account of the Project for the said document.

B) Requirements and Conditions for e-submission of bid;

 The Bidder shall submit his bid electronically in PDF files in the manner specified
above, and submission of hard copy of "original plus one copy of bid” is not
mandatory.

Page 26
Section II. Instruction to Bidders

 In case, if both the electronic bid and original bid in hard copy are submitted to the
Employer within the bid submission dead line, the Bidder's electronic bid and
original bid in hard copy will be accepted for evaluation provided if the facts and
figures in hard copy confirm to the PDF files in electronic bid. If there is any
discrepancy in fact and figures in the electronic bid and original bid in hard copy it
will be treated as two separate bids from one Bidder and hence, both the electronic
bid and original bid in hard copy shall be disqualified
 However, for electronically submitted bid in PDF files, the Bidder shall be
required to submit documents/ clarifications upon request from the Employer.
 The e-submitted bids must be readable through open standards interfaces.
Unreadable and or partially submitted bid files shall be considered incomplete and
rejected for further bid evaluation.
 In addition to electronically submitted PDF files, the Bidder shall be required to
submit documents and clarifications as required by the Employer. Non-submission
of such documents and or clarifications by the Bidder within specified time may
cause forfeiture of Bid Security.
 In case of major discrepancy found between electronically submitted PDF bid
filesand documents/ clarifications provided by the Bidder, the bid shall not be
considered for further evaluation.
 The Bidder shall attach the Bid Security Guarantee in the format attached in the
Bid Document. The Bid Security may be forfeited
- if the Bidder does not respond and/or submit the documents and or clarifications
when requested by the Employer.
- if major discrepancy is found between e-submitted bid information and
documents/clarifications provided by the Bidder during verification process as requested
by the Employer

C) Bid Opening Process

 Electronically submitted bid shall be opened first at the Bid opening time.
 The e-procurement system allows the Employer to download the e-submitted bid
files from the Bidders only after the time for opening the bids.
 The e-submitted bids must be readable through open standards interfaces.
Unreadable and or partially submitted bid files shall be considered incomplete and
rejected for further bid evaluation.
 After opening of e-submitted bids files, all files shall be printed and recorded at the
time of bid opening.
 Envelopes marked with "WITDRAWAL" or "MODIFICATION" or
"SUBSTITUTION" and in case of e-submission the files in PDF format under
"WITDRAWAL" or "MODIFICATION" or "SUBSTITUTION" shall be opened
and read out first. Bids for which acceptable notice of "WITDRAWAL" or
"SUBSTITUTION" has been submitted shall not be opened. In case of e-
submission bids, the Employer evaluates the bid based on the information as per
electronically submitted bid files. For clarification/ verification purpose, the
Employer may request the Bidder to submit documents/ clarifications. In case, if
the Bidder can not substantiate or provide evidence to prove the information

Page 27
Section II. Instruction to Bidders

provided in e-submitted bid through documents/ clarifications, the bid shall not be
considered for further evaluation and Clause [bid forfeit] as above shall be
applicable.
 Proposed facility for submission of bid electronically through e-submission is to
increase transparency, non-discrimination, equality of access, and open
competition. The Bidders are fully responsible to use the e-submission facility in e-
procurement section of DOR’s website http://www.dor.gov.np in specified
procedures and in no case the Employer shall be held liable for Bidder’s inability
to use this facility.

Qualification Information
In case of e-Bidding, the Bidder is required the submit the qualification information only,
and need not require to submit the detail supporting documents like work experience
certificates, financial statements, equipments ownership papers.

Bid Security Format

Form of Bid security shall include the provision as
‘This Bank Guarantee shall not be withdrawn or released merely upon return of the
original Guarantee by the Bidder unless notified by the Employer for the release of the
Guarantee’

Page 28
Section II. Instruction to Bidders

Section III. Sample Forms of Bid, Qualification

Information, Letter of Intention to Award,
Letter of Acceptance and Agreement

Page 29
Section II. Instruction to Bidders

Bid
Notes to Bidders
The Bidder shall fill in and submit this bid form with the bid. Additional details on the price
should be inserted if the bid is in various currencies. If the Bidder objects to the Adjudicator
proposed by the Employer in the Bidding documents, he should so state in his bid, and
present an alternative candidate, together with the candidate’s daily fees and biographical
data, in accordance with Clause 38 of the Instructions to Bidders.

Date:

To: Department of Roads

Hulaki Rajmarga Project
Babar Mahal, Kathmandu

We offer to execute the …………………………………….in conformity with the Bidding Documents

for the Contract Price of [amount in numbers and words in Nepalese Rupees].

The Contract shall be paid in the following currencies:

Currency Percentage payable Rate of exchange: one Inputs for which foreign
in currency foreign equals one NRs currency is required
1. NRs. 1:1 N/A
2.

The Advance Payment required is:

Amount Currency
1.
2.

We accept the appointment of [name proposed in Bidding Data] as the Adjudicator.

[or]
We do not accept the appointment of [name proposed in Bidding Data] as the Adjudicator, and
propose instead that [name] be appointed as Adjudicator, whose daily fees and biographical data
are attached.

This bid and your written acceptance of it shall constitute a binding Contract between us. We
understand that you are not bound to accept the lowest or any bid you receive.

Commissions or gratuities, if any, paid or to be paid by us to agents relating to this bid, and to
contract execution if we are awarded the contract, are listed below:
Name and address of agents Amount and currency Purpose of commission or
gratuity
1.
2.
[if none, state “none”]

We hereby confirm that this bid complies with the bid validity and Bid Security required by the
Bidding documents and specified in the Bidding Data and/or Invitation for Bids.

We hereby declare that we are fully eligible and our interest does not conflict to take part in
this bidding process and we are not prosecuted by law in any conviction in our
professional activities.

Authorized Signature:
Name and Title of Signatory:
Name of Bidder:
Address:

Page 30
Section II. Instruction to Bidders

Qualification Information

Notes to Bidders
The information to be filled in by Bidders in the following pages will be used for purposes of
post-qualification or for verification of pre-qualification as provided for in Clause 4 of the
Instructions to Bidders. This information will not be incorporated in the Contract. Attach
additional pages as necessary. Pertinent sections of attached documents if in languages
other than English or Nepali should be translated into English. If used for pre-qualification
verification, the Bidder should fill in updated information only.

1. Individual Bidders or Individual Members of Joint Ventures

1.1 Constitution or legal status of Bidder: [attach copy]

All Bidders shall submit following documents as pre- requisites for eligibility:

i) Registration Certificate [ attach copy]

j) Place of Registration [ insert ]
k) Principal place of Business [insert address]
l) Business Registration License [attach copy]
m)VAT and PAN Registration Certificates [attach copy]
n) Tax Clearance Certificate or Submissions of
Tax Returns as specified in Bidding Data [attach copies]
o) A written declaration made by the Bidder stating that the Bidder is not ineligible to
participate in the Bid; has no conflict of interest in the proposed bid
procurement proceedings and has not been punished for the profession or
businesses related offence.
p) Joint Venture Authorization/ Agreement (if any)
q) Power of Attorney

1.2 Total annual volume of construction work performed in last Ten years, in Nepalese Rupees.

Name of the firm: ……………………

Fiscal Year : …………
Total Turnover as an individual firm (NRs) …………..
Turnover as member of Joint Ventures
SN Name of the JV Name of the Job(s) Turnover of the Financial
JV (NRs.) Liability of
the Bidding
firm (%)
1
2
3
4

The annual volume of construction work (Annual Turnover) shall be evaluated on the basis of the
information provided in the format as prescribed in the Table above. The Bidder shall provide such
Table for each of the last 10 Fiscal year. If the present Bidder is a Joint Venture then these Tables shall
be provided by each member of the JV. The information provided in the Tables must also be supported
by copies of Annual Audit Reports or evidence showing the annual turnover. The Employer shall not be
responsible for any misevaluation if the information is not provided in format prescribed above or if there
is no evidence supporting the information provided

1.3 Work performed as prime Contractor or member of a joint venture on works of a similar
nature and volume over the last ten years. The values should be indicated in the same

Page 31
Section II. Instruction to Bidders

currency used for Item 1.2 above. Also list details of work under way or committed,
including expected completion date.

Project Name of Type of work Agreement Expected Total Value of

name client and performed and date Completion Value of remaining
and contact year of date Contract work
country person completion
1.

2.

1.4 Major items of Contractor’s Equipment proposed for carrying out the Works. The equipment
shown in the table shall be required at the minimum. List all information requested below.
Refer also to Sub-Clause 4.3(d) of the Instructions to Bidders. If the equipment are to be
leased/hired, submit papers making specific arrangement for leasing/hiring.

Item of equipment Description, Condition (new, Owned, leased (from

make, and age good, poor) and whom?), or to be
(years) number available purchased (from
whom?)
1.

2.

1.5 Qualifications and experience of key personnel proposed for site management,
administration and execution of the Contract. Attach bio-data and detailed curriculum vitae.
Refer also to Sub-Clause 4.3(e) and 4.5(e) of the Instructions to Bidders and Sub-Clause
9.1 of the General Conditions of Contract.

Position Name Years of experience Years of experience

(general) in proposed position
1.

2.

1.6 Proposed subcontracts and firms involved. Refer to Clause 7 of General Conditions of
Contract.

Sections of the Value of Subcontractor Experience in

Works subcontract (name and address) similar work
1.

2.

1.7 Financial reports for the last Ten years: balance sheets, Income statements, cash flow
statements, auditors’ reports, etc. List them below and attach copies.

Financial Actual: Previous Ten years

information in 10 9 8 7 6 5 4 3 2 1
NRs.

1. Total assets
2. Current assets
3. Total liabilities
4. Current
liabilities
5. Profit before
taxes
6. Profit after
taxes

Page 32
Section II. Instruction to Bidders

1.8 Evidence of access to financial resources to meet the qualification requirements: cash in
hand, lines of credit, etc. List below and attach copies of support documents.

Source of financing Amount in NRs.

1.
2.
3.
4.

1.9 Name, address, telephone and facsimile numbers of banks that may provide references if
contacted by the Employer.

Name Address Telephone/fax E-mail address

number
1.
2.

1.10 Information on current litigation in which the Bidder is involved.

Other party(ies) Cause of dispute Amount involved

1.

2.

1.11 Statement of compliance with the requirements of Sub-Clause 3.1 and 3.2 of the Instructions
to Bidders.
1.12 Proposed Program (work method and schedule). Descriptions, drawings, and charts, as
necessary, to comply with the requirements of the Bidding documents. [Employer will
provide format details and content required]

2. Joint Ventures

2.1 The information listed in 1.1 - 1.11 above shall be provided for each partner of the joint
venture.

2.2 The information in 1.12 above shall be provided for the joint venture.

2.3 Attach the power of attorney of the signatory (ies) of the bid authorising signature of the bid
on behalf of the joint venture.

2.4 Attach the Agreement among all partners of the joint venture (and which is legally binding on
all partners), which shows that

(a) all partners shall be jointly and severally liable for the execution of the Contract in
accordance with the Contract terms;

(b) one of the partners will be nominated as being in charge, authorized to incur liabilities,
and receive instructions for and on behalf of any and all partners of the joint venture;
and

(c) the execution of the entire Contract, including payment, shall be done exclusively with
the partner in charge.

3. Additional Requirements

3.1 Bidders should provide any additional information required in the Bidding Data or to fulfil the
requirements of Sub-Clause 4.1 and Clause 30 of the Instructions to Bidders, if applicable.

Page 33
Section II. Instruction to Bidders

Letter of Intention to Award

[This letter should be in the letterhead paper of the Employer]

Notes on Letter of Intention to Award

The issue of Letter of Intention to Award will be the basis acceptance of bid by the Employer
for issue of letter of Acceptance to the lowest evaluated Bidder and for providing information
to other unsuccessful bidders who participated in the bid as regards to the outcome of the
procurement process. This standard form of Letter of Intention to Award should be filled in
and sent to the successful Bidder only after evaluation of Bids has been completed but before
final acceptance of the Bid.

Date:

To: [name and address of the Contractor]

This is to notify you in accordance with the Instruction to Bidders that it is our intention to award
the contract [name of the Contract and identification number, as given in the Contract Data and/or
SCC] to you as your Bid price of [amount in numbers and words in Nepalese Rupees], as
corrected and modified in accordance with the Instructions to Bidders, is determined to be
substantially responsive and lowest evaluated Bid price.

Authorized Signature:__________________________________________________

Name and Title of Signatory:_____________________________________________

Name of Agency:______________________________________________________

Letter of Acceptance
Page 34
Section II. Instruction to Bidders

[This letter should be in the letterhead paper of the Employer]

Notes on Letter of Acceptance

The Letter of Acceptance will be the basis for formation of the Contract as described in
Clauses 33 and 34 of the Instructions to Bidders. This standard form of Letter of Acceptance
should be filled in and sent to the successful Bidder only after evaluation of Bids has been
completed, subject to any review by the Review Committee or Donor Agency required under
the Procurement Act/Regulation or loan/credit/ grant agreement.

Date:

To: [name and address of the Contractor]

This is to notify you that your bid dated [date] for execution of the [name of the Contract and
identification number, as given in the Contract Data and/or SCC ] for the Contract Price of [amount
in numbers and words in Nepalese Rupees], as corrected and modified in accordance with the
Instructions to Bidders is hereby accepted by our Agency.

(a) We accept that [name proposed by Bidder] be appointed as the Adjudicator.

(b) We do not accept that [name proposed by Bidder] be appointed as adjudicator, and by
sending a copy of this letter of acceptance to [insert the name of the Appointing
Authority], we are hereby requesting [name], the Appointing Authority, to appoint the
Adjudicator in accordance with Clause 38.1 of the Instructions to Bidders.

You are hereby instructed to proceed with the execution of the said Works in accordance with the
Contract documents.

Authorized Signature:
Name and Title of Signatory:
Name of Agency:

Attachment: Agreement

Page 35
Section II. Instruction to Bidders

Agreement
Notes on Agreement
The Agreement should incorporate any corrections or modifications to the bid resulting from
corrections of errors (Instructions to Bidders, Clause 27), price adjustment during the evaluation
process (Instructions to Bidders Sub-Clause 15.3 or Clause 46 of the COC), selection of an
alternative offer (Invitation for Bids Sub-Clause 17.2), acceptable deviations (Invitation for Bids
Clause 26), or any other mutually-agreeable changes allowed for in the Conditions of Contract,
such as changes in key personnel, subcontractors, scheduling, and the like.

This Agreement, made the [day] day of [month], [year] between [name and address of
Employer] (hereinafter called “the Employer”) and [name and address of Contractor]
(hereinafter called “the Contractor”).

Whereas the Employer is desirous that the Contractor execute ……………………………

(hereinafter called “the Works”) and the Employer has accepted the bid for _________________
[insert the amount in Nepalese Rupees in numbers and words] by the Contractor for the
execution and completion of such Works and the remedying of any defects therein.

Now this Agreement witnesseth as follows:

1. In this Agreement, words and expressions shall have the same meanings as are
respectively assigned to them in the General Conditions of Contract hereinafter referred to,
and they shall be deemed to form and be read and construed as part of this Agreement.
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. Agreement
ii. the Letter of Acceptance
iii. the Contractor’s Bid
iv. the Special Conditions of Contract
v. the General Conditions of Contract;
vi. the Specification
vii. the Drawings; and
viii. the Bill of Quantities; and
ix. any other document listed in the SCC as forming part of the Contract
3. In consideration of the payments to be made by the Employer to the Contractor as
hereinafter mentioned, the Contractor hereby covenants with the Employer to execute and
complete the Works and remedy any 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 wherein 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 thereto have caused this Agreement to be executed the day and
year first before written.

The Common Seal of

was hereunto affixed in the presence of:

Signed, Sealed, and Delivered by the said

in the presence of:

Binding Signature of Employer

Binding Signature of Contractor

Page 36
Section IV. General Conditions of Contract

Section IV. General Conditions of Contract (GCC)

Page 37
Section IV. General Conditions of Contract

General Conditions of Contract (GCC)

A. General
1. Definitions 1.1 Boldface type is used to identify defined terms.

The Adjudicator is the person appointed jointly by the Employer

and the Contractor to resolve disputes in the first instance, as
provided for in Clauses 24 and 25 hereunder.

Bill of Quantities means the priced and completed Bill of Quantities

forming part of the bid.

Compensation Events are those defined in Clause 43

hereunder.

The Completion Date is the date of completion of the Works as

certified by the Project Manager, in accordance with Sub-Clause
54.1.

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 Clause 2.3 below.

The Contractor is a person or corporate body whose bid to carry out

the Works has been accepted by the Employer.

The Contractor’s bid is the completed Bidding documents

submitted by the Contractor to the Employer.

The Contract Price is the price stated in the Letter of Acceptance

and thereafter as adjusted in accordance with the provisions of the
Contract.

Days are calendar days; months are calendar months.

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 Materials and Plant.

A Defect is any part of the Works not completed in accordance with

the Contract.

The Defects Liability Certificate is the certificate issued by Project

Manager upon correction of defects by the Contractor.

The Defects Liability Period is the period named in the SCC and
calculated from the Completion Date.

Drawings include calculations and other information provided or

approved by the Project Manager for the execution of the Contract.

The Employer is the party who employs the Contractor to carry out
the Works.

Equipment is the Contractor’s machinery and vehicles brought

temporarily to the Site to construct the Works.

The Initial Contract Price is the Contract Price listed in the

Page 38
Section IV. General Conditions of Contract

Employer’s Letter of Acceptance.

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 SCC. The Intended Completion
Date may be revised only by the Project Manager by issuing an
extension of time or an acceleration order.

Materials are all supplies, including consumables, used by the

Contractor for incorporation in the Works.

Plant is any integral part of the Works that shall have a mechanical,
electrical, chemical, or biological function.

The Project Manager is the person named in the SCC (or any other
competent person appointed by the Employer and notified to the
Contractor, to act in replacement of the Project Manager) who is
responsible for supervising the execution of the Works and
administering the Contract.

The Site is the area defined as such in the SCC.

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. These reports
also include those reports which are prepared for construction
material sources.

Specification means the Specification of the Works included in the

Contract and any modification or addition made or approved by the
Project Manager.

The Start Date is given in the SCC. 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.

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.

Temporary Works are works designed, constructed, installed and

removed by the Contractor that are needed for construction or
installation of the Works.

A Variation is an instruction given by the Project Manager which

varies the Works.

The Works are what the Contract requires the Contractor to

construct, install and turn over to the Employer, as defined in the
SCC.

2. Interpretation 2.1 In interpreting these Conditions of Contract, singular also means

plural, male also means female or neuter, and the other way around.
Headings have no significance. Words have their normal meaning
under the language of the Contract unless specifically defined. The
Project Manager will provide instructions clarifying queries about
these Conditions of Contract.

2.2 If sectional completion is specified in the SCC, references in the

Conditions of Contract to the Works, the Completion Date, and the

Page 39
Section IV. General Conditions of Contract

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

following order of priority:

(1) Agreement,
(2) Letter of Acceptance,
(3) Contractor’s bid,
(4) Special Conditions of Contract,
(5) General Conditions of Contract,
(6) Specifications,
(7) Drawings,
(8) Bill of Quantities, and
(9) any other document listed in the SCC as forming part of the
Contract

3. Language and 3.1 The language of the Contract and the law governing the Contract are
Law stated in the SCC.

4. Project Manager’s 4.1 Except where otherwise specifically stated, the Project Manager will
Decisions decide contractual matters between the Employer and the
Contractor in the role representing the Employer fairly and
impartially.

5. Delegation 5.1 The Project Manager may delegate any of his duties and
responsibilities to other people, except to the Adjudicator, after
notifying the Contractor, and may cancel any delegation after
notifying the Contractor.

6.Communications 6.1 Communications between parties that are referred to in the

Conditions of Contract shall be effective only when in writing. A
notice shall be effective only when it is delivered.

6.2 If a notice given pursuant to Sub Clause 6.1 fails to be delivered due
to failure to trace the address of the party then the notice shall be
published as public notice in a National daily newspaper and when
the notice is so published then the notice shall be considered to be
delivered to the concerned party.

7. Subcontracting 7.1 The Contractor may subcontract with the approval of the Project
Manager, but may not assign the Contract without the approval of
the Employer in writing. Subcontracting shall not alter the
Contractor’s obligations.

8. Other Contractors 8.1 The Contractor shall cooperate and share the Site with other
contractors, public authorities, utilities and the Employer between the
dates given in the Schedule of Other Contractors, as referred to in
the SCC. 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 shall notify the Contractor of any
such modification.

9. Personnel 9.1 The Contractor shall employ either the key personnel named in the
Schedule of Key Personnel, as referred to in the SCC, to carry out
the functions stated in the Schedule or other personnel approved by
the Project Manager. The Employer on the Project Manager’s
recommendation will approve any proposed replacement of key
personnel only if their qualifications and abilities are substantially

Page 40
Section IV. General Conditions of Contract

equal to or better than those of the personnel listed in the Schedule.

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 7 days and has no further connection with the work in the
Contract.

9.3 A child who has not attained the age of fourteen years shall not be
employed in any work as a labourer.

9.4 During continuance of the Contract, the Contractor and his sub-
contractors shall abide at all times by all labour laws, including child
labour related enactments, and rules made there under.

10. Employer’s and 10.1 The Employer carries the risks which this Contract states are
Contractor’s Risks Employer’s risks, and the Contractor carries the risks which this
Contract states are Contractor’s risks.

11. Employer’s Risks 11.1 From the Start Date until the Defects Liability Certificate has been
issued, the following are Employer’s 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 Employer 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
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. Contractor’s Risks 12.1 From the Starting Date until the Defects Liability Certificate has been
issued, the risks of personal injury, death and loss of or damage to
property (including, without limitation, the Works, Plant, Materials
and Equipment) which are not Employer’s risks are Contractor’s
risks.

13. Insurance 13.1 The Contractor shall provide, in the joint names of the Employer 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
SCC for the following events which are due to the Contractor’s risks:

Page 41
Section IV. General Conditions of Contract

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.

14. Site Investigation 14.1 The Contractor, in preparing the bid, may refer to any Site
Reports Investigation Reports stated in the SCC. In accordance with the
Instructions to Bidders, Bidders must make their own arrangements
to verify the availability and suitability of construction materials when
preparing their Bids.

15. Queries about the 15.1 The Project Manager will clarify queries on the SCC.
SCC

16. Contractor to 16.1 The Contractor shall construct and install the Works in accordance
Construct the with the Specifications and Drawings.
Works

17. The Works to Be 17.1 The Contractor may commence execution of the Works on the Start
Completed by the Date and shall carry out the Works in accordance with the Program
Intended submitted by the Contractor, as updated with the approval of the
Completion Date Project Manager, and complete them by the Intended Completion
Date.

18. Approval by the 18.1 The Contractor shall submit Specifications and Drawings showing
Project Manager the proposed Temporary Works to the Project Manager, who is to
approve them if they comply with the Specifications and Drawings.

18.2 The Contractor shall be responsible for design of the Temporary

Works.

18.3 The Project Manager’s approval shall not alter the Contractor’s
responsibility for design of the Temporary Works.

18.4 The Contractor shall obtain approval of third parties to the design of
the Temporary Works, where required.

Page 42
Section IV. General Conditions of Contract

18.5 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.

19. Safety 19.1 The Contractor shall be responsible for the safety of all activities on
the Site.

20. Discoveries 20.1 Anything of historical or other interest or of significant value

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.

21. Possession of the 21.1 The Employer shall give possession of all parts of the Site to the
Site Contractor. If possession of a part is not given by the date stated in
the SCC, the Employer will be deemed to have delayed the start of
the relevant activities, and this will be a Compensation Event.

22. Access to the Site 22.1 The Contractor shall allow the Project Manager and any person
authorised by the Project Manager access to the Site and to any
place where work in connection with the Contract is being carried out
or is intended to be carried out.

23. Instructions 23.1 The Contractor shall carry out all instructions of the Project Manager
which comply with the laws of Nepal.

23.2 The Contractor shall permit the Donor Agency to inspect the
Contractor’s accounts and records relating to the performance of the
Contractor and to have them audited by the auditors appointed by
the Donor Agency, if so required by the Donor Agency.

24. Appointment of 24.1 The Adjudicator shall be appointed jointly by the Employer and the
the Contractor, at the time of the Employer’s issuance of the Letter of
Adjudicator/DRB Acceptance or within 30 days of the Start date of the contract. If, in
members the Letter of Acceptance, the Employer does not agree on the
appointment of the Adjudicator or the parties cannot reach an
agreement on the appointment of the Adjudicator, the Employer will
request the Appointing Authority designated in the SCC, to appoint
the Adjudicator within 15 days of receipt of such request.

24.2 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 at the request of either party, within 15 days of
receipt of such request

24.3 The DRB if specified in Bidding Data/ SCC shall be formed within 30
days of the Start date of the contract. The Dispute Resolution Board
(DRB) shall comprise of three members. Each Party shall appoint
one member each and the third party who shall act as the Chairman
shall be appointed by the two members appointed by the Parties.

24.4 If a DRB member declines to act or is unable to act as a result of

death, disability, resignation or termination of appointment, a
replacement shall be appointed in the same manner as the replaced
member was required to have been appointed.

Page 43
Section IV. General Conditions of Contract

25. Procedures for 25.1 If any dispute shall arise due to the decision taken by the Project
Disputes Manager, which the Contractor believes was either outside the
authority given to the Project Manager by the Contract or that the
decision was wrongly taken, then the parties shall attempt to settle
such dispute amicably within 15 days of the notification of the Project
Manager’s decision. However if the dispute is not settled amicably or
no attempt is made to settle the dispute amicably then the decision
shall be referred to the Adjudicator or DRB as specified in Bidding
Data/ SCC within 30 days of the notification of the Project Manager’s
decision.

25.2 The Adjudicator or DRB shall give a decision in writing within 30

days of receipt of a reference of a dispute pursuant to Sub- Clause
25.1.

25.3 The Adjudicator or the DRB Members shall be paid by the hour at the
rate specified in the SCC, together with reimbursable expenses of the
types specified in the SCC, and the cost shall be divided equally
between the Employer and the Contractor, whatever decision is
reached by the Adjudicator or DRB. Either party may refer a decision
of the Adjudicator or DRB to an Arbitrator within 30 days of the
Adjudicator’s or DRB’s written decision. If neither party, refers the
dispute to arbitration within the above 30 days, the Adjudicator’s or
the DRB’s decision will be final and binding.

25.4 In case of arbitration, the arbitration shall be conducted in accordance

with the arbitration procedures published by the institution named
and in the place shown in the SCC.

B. Time Control
26. Program 26.1 Within the time stated in the SCC, 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.

26.2 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.

26.3 The Contractor shall submit to the Project Manager for approval an
updated Program at intervals no longer than the period stated in the
SCC. If the Contractor does not submit an updated Program within
this period, the Project Manager may withhold the amount stated in
the SCC 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.

26.4 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.

27. Extension of the 27.1 The Project Manager shall extend the Intended Completion Date if a
Intended Compensation Event occurs or a Variation is issued which makes it
Completion Date impossible for Completion to be achieved by the Intended

Page 44
Section IV. General Conditions of Contract

Completion Date without the Contractor taking steps to accelerate

the remaining work, which would cause the Contractor to incur
additional cost.

27.2 The contractor shall submit an application to the Employer for

extension of time, stating the causes for delay, 7 days before the
expiry of the Contract completion date.

27.3 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.

28. Acceleration 28.1 When the Employer wants the Contractor to finish before the
Intended Completion Date, the Project Manager will obtain priced
proposals for achieving the necessary acceleration from the
Contractor. If the Employer accepts these proposals, the Intended
Completion Date will be adjusted accordingly and confirmed by both
the Employer and the Contractor.

28.2 If the Contractor’s priced proposals for acceleration are accepted by

the Employer, they are incorporated in the Contract Price and treated
as a Variation.

29. Delays Ordered 29.1 The Project Manager may instruct the Contractor to delay the start or
by the Project progress of any activity within the Works.
Manager

30. Management 30.1 Either the Project Manager or the Contractor may require the other to
Meetings attend a management meeting. The business of a management
meeting shall be to review the plans for remaining work and to deal
with matters raised in accordance with the early warning procedure.

30.2 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.

31. Early Warning 31.1 The Contractor shall warn the Project Manager at the earliest
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 provided by the Contractor as soon as
reasonably possible.

31.2 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.

Page 45
Section IV. General Conditions of Contract

C. Quality Control
32. Identifying 32.1 The Project Manager shall check the Contractor’s work and notify the
Defects Contractor of any Defects that are found. Such 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.

33. Tests 33.1 If the Project Manager instructs the Contractor to carry out a test 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.

34. Correction of 34.1 The Project Manager shall give notice to the Contractor of any Defects
Defects before the end of the Defects Liability Period, which begins at
Completion, and is defined in the SCC. The Defects Liability Period
shall be extended for as long as Defects remain to be corrected.

34.2 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.

35. Uncorrected 35.1 If the Contractor has not corrected a Defect within the time specified in
Defects after the Project Manager’s notice, the Project Manager will assess the cost
Completion of having the Defect corrected, and the Contractor will pay this amount.
Date

D. Cost Control
36. Bill of 36.1 The Bill of Quantities shall contain items for the construction,
Quantities installation, testing and commissioning work to be done by the
Contractor.

36.2 The Bill of Quantities is used to calculate the Contract Price. The
Contractor is paid for the quantity of the work done at the rate in the
Bill of Quantities for each item.

37. Changes in the 37.1 If the final quantity of the work done differs from the quantity in the Bill
Quantities 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.

37.2 The Project Manager shall not adjust rates from changes in quantities
if thereby the Initial Contract Price is exceeded by more than 10
percent, except with the prior approval of the Employer.

37.3 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.

38. Variations 38.1 All Variations shall be included in updated Programs produced by the
Contractor.

39. Payments for 39.1 The Contractor shall provide the Project Manager with a quotation for

Page 46
Section IV. General Conditions of Contract

Variations 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 days of the request or within any longer
period stated by the Project Manager and before the Variation is
ordered by him.

39.2 If the work in the Variation corresponds with 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 37.1 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.

39.3 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.

39.4 If the Project Manager decides that the urgency of varying the work
would prevent a quotation being given and considered without delaying
the work, no quotation shall be given and the Variation shall be treated
as a Compensation Event.

39..5 The Contractor shall not be entitled to additional payment for costs that
could have been avoided by giving early warning.

40. Cash Flow 40.1 When the Program is updated, the Contractor shall provide the Project
Forecasts 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.

41. Payment 41.1 The Contractor shall submit to the Project Manager monthly
Certificates statements of the estimated value of the work executed less the
cumulative amount certified previously.

41.2 The Project Manager shall check the Contractor’s monthly statement
(bill) and certify the amount to be paid to the Contractor.

41.3 The value of work executed shall be determined by the Project

Manager.

41.4 The value of work executed shall comprise the value of the quantities
of the items in the Bill of Quantities completed.

41.5 The value of work executed shall include the valuation of Variations
and Compensation Events.

41.6 The Project Manager may exclude any item certified in a previous
certificate or reduce the proportion of any item previously certified in
any certificate in the light of later information.

42. Payments 42.1 Payments shall be adjusted for deductions for advance payments and
retention. The Employer shall pay the Contractor the amounts certified
by the Project Manager within 30 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

Page 47
Section IV. General Conditions of Contract

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.

42.2 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.

42.3 Unless otherwise stated, all payments and deductions will be paid or
charged in the proportions of currencies comprising the Contract Price.

42.4 Items of the Works for which no rate or price has been entered in will
not be paid for by the Employer and shall be deemed covered by other
rates and prices in the Contract.

43. Compensation 43.1 The following shall be Compensation Events:

Events
a. The Employer does not give access to a part of the Site by the
Site Possession Date stated in the SCC.
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
subcontract to be let.
e. 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.
f. 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.
g. Other contractors, public authorities, utilities, or the Employer
do not work within the dates and other constraints stated in the
Contract, and they cause delay or extra cost to the Contractor.
h. The advance payment is delayed.
i. The effects on the Contractor of any of the Employer’s Risks.
k. The Project Manager unreasonably delays issuing a Certificate
of Completion.

43.2 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 estimate and decide on
the basis of facts of the events and supporting documents whether and
by how much the Contract Price shall be increased and whether and
by how much the Intended Completion Date shall be extended.

Page 48
Section IV. General Conditions of Contract

43.3 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 will assume that the Contractor will react competently
and promptly to the event.

43.4 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.

44. Tax 44.1 The Project Manager shall adjust the Contract Price if taxes, duties,
and other levies are changed between the date 30 days before the
submission of Bids for the Contract and the date of the last Certificate
of Completion. 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 Clause 46.

45. Currencies 45.1 Where payments are made in currencies other than Nepalese Rupees,
the exchange rates used for calculating the amounts to be paid shall
be the exchange rates stated in the Contractor’s bid.

46. Price 46.1 Prices shall be adjusted for fluctuations in the cost of inputs only if
Adjustment provided for in the SCC. If so provided, the amounts certified in each
payment certificate, after 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:

Pc = Ac + Bc Imc/Ioc
where:

Pc is the adjustment factor for the portion of the Contract Price payable
in a specific currency “c”.

Ac and Bc are coefficients specified in the SCC, 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 30 days before bid opening for inputs
payable; both in the specific currency “c”.

Page 49
Section IV. General Conditions of Contract

46.2 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.

46.3 If, price adjustment provision is not applicable pursuant to Sub-clause

46.1 then the Contract is subject to price adjustment only for construction
material in accordance with this clause. If the Contract Agreement is
concluded following the Invitation for National Level Bidding and after
the signing of the Contract Agreement, if the price of the construction
materials stated in the SCC increase or decrease in an unexpected
manner in excess of ten (10%) percent in comparison to the base price
stated in the SCC, then the price adjustment for the increase or
decrease of price of the construction material beyond 10% shall be
made by applying the following formulas:

For unexpected increase in price

P =[R1 –(R0 ×1,10)]× Q

For unexpected decrease in price

P =[R1 –(R0 ×0.90)]× Q
Where:
“ P” is price adjustment amount
“ R1” is the present price of the construction material
“ R0” is the base price of the construction material
“ Q“ is quantity of the construction material consumed in construction
during the period of price adjustment consideration

46.4 The Price Adjustment amount shall be limited to a maximum `of 25% of
the initial Contract Amount unless otherwise is specified in the SCC.

46.5 The Price Adjustment provision shall not be applicable if the contract is
not completed in time due to the delay caused by the contractor or the
contract is a Lump sum Contract or a Fixed Budget Contract.

47. Retention 47.1 The Employer shall retain from each payment due to the Contractor
the proportion stated in the SCC until Completion of the whole of the
Works.

47.2 One half of the retention shall be repaid by the Employer to the
contractor within 15 days upon expiry of Defects Liability Period 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.

47.3 The remainder of the retention shall be paid by the Employer to the
contractor within 15 days after submission of an evidence document
issued by the concerned Internal Revenue Office that the contractor
has submitted his Income Returns.

47.4 On completion of the whole Works, the Contractor may substitute

retention money with an “on demand” Bank guarantee.

48. Liquidated 48.1 The Contractor shall pay liquidated damages to the Employer at the
Damages rate per day stated in the SCC for each day that the Completion Date is
later than the Intended Completion Date. The total amount of
liquidated damages shall not exceed the amount defined in the SCC.
The Employer may deduct liquidated damages from payments due to

Page 50
Section IV. General Conditions of Contract

the Contractor. Payment of liquidated damages shall not affect the

Contractor’s liabilities.

48.2 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 of
liquidated damage by the contractor, calculated from the date of
payment to the date of repayment, at the rates specified in Sub-Clause
42.1.

49. Bonus 49.1 The Contractor shall be paid a bonus calculated at the rate per
calendar day stated in the SCC 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 total amount of Bonus shall
not exceed the amount stated in the SCC. The Project Manager shall
certify that the Works are complete, although they may not be due to
be complete.

50. Advance 50.1 The Employer shall make advance payment to the Contractor of the
Payment amounts stated in the SCC by the date stated in the SCC, 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 will not be charged on the advance payment.

50.2 The Contractor is to use the advance payment only to pay for
Equipment, Plant, Materials and mobilization expenses required
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.

50.3 The advance payment shall be repaid by deducting proportionate

amounts, as stated in the SCC, 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.

51. Securities 51.1 The Performance Security shall be provided to the Employer no later
than the date specified in the Letter of Acceptance and shall be issued
in an amount, specified in the SCC, and form and by a bank
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 30 days from the
date of issue of the Defects Liability Certificate in the case of a bank
guarantee.

52. Dayworks 52.1 If applicable, the Dayworks rates in the Contractor’s bid shall be used
for small additional amounts of work only when the Project Manager
has given written instructions in advance for additional work to be paid
for in that way.

52.2 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

Page 51
Section IV. General Conditions of Contract

within two days of the work being done.

52.3 The Contractor shall be paid for Dayworks subject to obtaining signed
Dayworks forms.

52.4 The hiring charge for equipment other than those specified in the Bill of
Quantities shall be based on the standard method of calculation.

53. Cost of Repairs 54.1 Loss or damage to the Works or Materials to be incorporated in the
Works between the Start Date and the end of the Defects Liability
Period 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

54. Completion 54.1 The Contractor shall request the Project Manager to issue a Certificate
of Completion of the Works, and the Project Manager will do so upon
deciding that the work is completed.

55. Taking Over 55.1 The Employer shall take over the Site and the Works within seven
days of the Project Manager’s issuing a Certificate of Completion.

56. Final Account 56.1 The Contractor shall supply the Project Manager with a detailed
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 60 days of
receiving the Contractor’s account if it is correct and complete. If it is
not, the Project Manager shall issue within 60 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.

57. Operating and 57.1 If “as built” Drawings and/or operating and maintenance manuals are
Maintenance required, the Contractor shall supply them by the dates stated in the
Manuals stated in the SCC.

57.2 If the Contractor does not supply the Drawings and/or manuals by the
dates stated in the stated in the SCC or the date instructed by the
Project Manager, or they do not receive the Project Manager’s
approval, the Project Manager shall withhold the amount stated in the
stated in the SCC from payments due to the Contractor.

58. Termination 58.1 The Employer or the Contractor may terminate the Contract if the other
party causes a fundamental breach of the Contract.

58.2 Fundamental breaches of Contract shall include, but shall not be

limited to, the following:
a. The Contractor stops work for 30 days when no stoppage of
work is shown on the current Program and the stoppage has
not been authorised 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 30 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

Page 52
Section IV. General Conditions of Contract

Employer to the Contractor within 90 days of the date of the

Project Manager’s certificate.
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 SCC.
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.

For the purpose of this paragraph:

“corrupt practice” means the offering, giving, receiving or

soliciting of any thing of value to influence the action of a public
official in the procurement process or in contract execution.
“fraudulent practice” means a misrepresentation of facts in
order to influence a procurement process or the execution of a
contract to the detriment of the Employer, and includes
collusive practice among Bidders (prior to or after bid
submission) designed to establish Bid Prices at artificial non-
competitive levels and to deprive the Employer of the benefits
of free and open competition.
“coercive practice
j. The Contractor does not comply with sub-clauses 9.3 and 9.4
of the General Conditions of Contract.

58.3 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 Sub-
Clause 58.2 above, the Project Manager shall decide whether the
breach is fundamental or not.

58.4 Notwithstanding the above, the Employer may terminate the Contract
for convenience.

58.5 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.

59. Payment upon 59.1 If the Contract is terminated because of a fundamental breach of
Termination Contract by the Contractor, the Project Manager shall issue a
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 stated in the SCC. Additional Liquidated
Damages shall not apply. If the total amount due to the Employer
exceeds any payment due to the Contractor, the difference shall be a
debt payable to the Employer.

59.2 If the Contract is terminated for the Employer’s convenience or

because of a fundamental breach of Contract by the Employer, the

Page 53
Section IV. General Conditions of Contract

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.

60. Property 61.1 All Materials on the Site, Plant, Equipment, Temporary Works and
Works shall be deemed to be the property of the Employer if the
Contract is terminated because of the Contractor’s default.

61. Release from 62.1 If the Contract is frustrated by the outbreak of war or by any other
Performance event entirely outside the control of either the Employer or the
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.

62. Suspension of 62.1 In the event that the Donor Agency suspends the loan/ credit/grant to
Donor Agency the Employer from which part of the payments to the Contractor are
Loan/Credit/ being made:
Grant
a. the Employer is obligated to notify the Contractor of such
suspension within 7 days of having received the Donor
Agency's suspension notice; and
b. if the Contractor has not received sums due him within the 30
days for payment provided for in Sub-Clause 42.1, the
Contractor may immediately issue a 15-day termination notice.

F. Additional Clauses
63. Project 63.1 The Project Manager’s duty and authority are restricted to the extent as
Manager’s stated in the SCC.
Duties and
Authority

64. Quarries and 64.1 Any quarry operated as part of this Contract shall be maintained and
Spoil Dumps left in a stable condition without steep slopes and be either refilled or
drained and be landscaped by appropriate planting. Rock or gravel
taken from a river shall be removed over some distance so as to limit
the depth of material removed at any one location, not disrupt the river
flow or damage or undermine the river banks.

The Contractor shall not deposit excavated material on land in

Government or private ownership except as directed by the Project
Manager in writing or by permission in writing of the authority
responsible for such land in Government ownership, or of the owner or
responsible representative of the owner of such land in private
ownership, and only then in those places and under such conditions
as the authority, owner or responsible representative may prescribe.

65. Safety, Security 65.1 The Contractor shall, throughout the execution and completion of the
and Protection works and the remedying of any defects therein:
of the a. Have full regard for the safety of all persons entitled to be upon
Environment the site and keep the site (so as the same is under his control)
and the works (so far as the same are not completed or
occupied by the Employer) in an orderly state appropriate to
the avoidance of danger to such persons.

Page 54
Section IV. General Conditions of Contract

b. Provide and maintain at his own cost all lights, guards, fencing,
warning signs and watching, when necessary or required by
the Project Manager or by any duly constituted authority, for the
protection pf the Works of for the safety and convenience of the
public or others.

c. Take all reasonable steps to protect the environment on and off

the site and to avoid damage or nuisance to persons or to
property of the public or others resulting from pollution, noise or
other causes arising as a consequence of his methods of
operation.

d. Ensure that any cut or fill slopes are planted in grass or other
plant cover as soon as possible to protect them from erosion.
This planting shall follow the recommendations given in
manuals and handbooks such as “Vegetation structures for
stabilizing highway slopes – A manual for Nepal”, department
of Roads.
e. Any spoil or material removed from drains shall be disposed off
to designated stable tipping areas as directed by the Project
Manager.
f. Shall not use fuel wood as a means of heating during the
processing or preparation of any materials forming part of the
works.
g. The Project Manager shall have the power to disallow any
working practice or activity of the Contractor or direct that such
practices or activities be modified should the Project Manager
consider, on the advice of the relevant Government
Departments, that the practices or activities will be harmful to
wildlife.

k. Provide on the Site such life saving apparatus as may be

appropriate and an adequate and easily accessible first aid
outfit or such outfits as may be required by any government
ordinance, factory act, etc., subsequently published and
amended from time to time.

66. Local Taxation 66.1 The prices tendered by the Contractor shall include all taxes that may
be levied in accordance to the laws and regulations in being in Nepal
on the date 30 days prior to the closing date for submissions of Bids on
the Contractor’s equipment, plant and materials acquired for the
purpose of the Contract and on the services performed under the
Contract. Nothing in the Contract shall relieve the Contractor from his
responsibility to pay any tax that may be levied in Nepal on profits
made by him in respect of the Contract.

67. Value Added 67.1 The Contract is not exempted from value added tax. An amount
Tax specified in the schedule of taxes shall be paid by the Contractor in the
concerned VAT office within time frame specified in VAT regulation.

68. Income Taxes 68.1 The Contractor’s staff, personnel and labour will be liable to pay
on Staff personal income taxes in Nepal in respect of their salaries and wages,
as are chargeable under the laws and regulations for the time being in
force, and the Contractor shall perform such duties in regard to such
deductions as may be imposed on him by such laws and regulations.

68.2 The issue of the Final Account Certificate pursuant to clause 56 shall

Page 55
Section IV. General Conditions of Contract

be made only upon submittal by the Contractor of a certificate of

income tax clearance from the Government of Nepal.

69. Duties, Taxes 69.1 Any element of royalty, duty or tax in the price of any goods including
and Royalties fuel oil, lubricating oil, cement, timber, iron and iron goods locally
procured by the Contractor for the works shall be included in the
Contract rates and prices and no reimbursement or payment in that
respect shall be made to the Contractor.

69.2 The Contractor shall familiarise himself with the rules and regulations of
Nepal with regard to customs, duties, taxes, clearing of goods and
equipment, immigration and the like, and it will be necessary for him to
follow the required procedures regardless of the assistance as may be
provided by the Employer wherever possible.

69.3 The Contractor shall pay and shall not be entitled to the reimbursement
of cost of extracting construction materials such as sand,
stone/boulder, gravel, etc. from the river beds or quarries. Such prices
will be levied by the local District Development Committee (DDC) as
may be in force at the time. The Contractor, sub-contractor(s)
employed directly by him and for whom he is responsible, will not be
exempted from payment of royalties, taxes or other kinds of
surcharges on these construction materials so extracted and paid for to
the DDC.

70. Member of 70.1 No member or officer of GoN or the Employer or the Project Manager
Government, or any of their respective employees shall be in any way personally
etc, not bound or liable for the act or obligations of the Employer under the
Personally Contract or answerable for any default or omission in the observance
Liable or performance of any of act, matter or thing which are herein
contained.

71. Approval of Use 71.1 No explosives of any kind shall be used by the Contractor without the
of Explosives prior consent of the Employer in writing and the Contractor shall
provide, store and handle these and all other items of every kind
whatsoever required for blasting operations, all at his own expense in a
manner approved in writing by the Employer.

72. Compliance 72.1 The Contractor shall comply with all relevant ordinances, instructions
with and regulations which the Government, or other person or persons
Regulations for having due authority, may issue from time to time regarding the
Explosives handling, transportation, storage and use of explosives.

73. Permission for 73.1 The Contractor shall at all times maintain full liaison with and inform
Blasting well in advance, and obtain such permission as is required from all
Government authorities, public bodies and private parties whatsoever
concerned or affected, or likely to be concerned or affected by blasting
operation.

74. Records of 74.1 Before the beginning of the Defects Liability Period, the Contractor
Explosives shall account to the satisfaction of the Project Manager for all
explosives brought on to the Site during the execution of the Contract
and the Contractor shall remove all unused explosives from the Site on
completion of works when ordered by the Project Manager.

Page 56
Section IV. General Conditions of Contract

75. Traffic 75.1 The Contractor shall include the necessary safety procedures
Diversion regarding motorised and pedestrian traffic diversion that is needed in
execution of the works. The Contractor shall include in his costing of
works, any temporary works or diversion that are needed during the
construction period.

All traffic diversion should be designed for the safety of both the
motoring public and the men at work. It shall ensure the uninterrupted
flow of traffic and minimum inconvenience to the public during the
period concerned. As such, adequate warning signs, flagmen and
other relevant safety precautionary measures shall be provided to
warn motorists and pedestrians well ahead of the intended diversion
as directed by the Project Manager.

All traffic devices used shall be designed in accordance with prevailing

Department of Roads Guidelines or as instructed by the Project
Manager.

76.Conduct of
76.1 The Bidder shall be responsible to fulfill his obligations as per the
Bidders
requirement of the Contract Agreement, Bidding documents, GoN’s
Procurement Act and Regulations.
76.2 The Bidder shall not carry out or cause to carryout the following acts
with an intention to influence the implementation of the procurement
process or the procurement agreement :
a) give or propose improper inducement directly or indirectly,
b) distortion or misrepresentation of facts
c) engaging or being involved in corrupt or fraudulent practice
d) interference in participation of other prospective bidders.

e) coercion or threatening directly or indirectly to cause harm to the

person or the property of any person to be involved in the
procurement proceedings,
f) collusive practice among bidders before or after submission of
bids for distribution of works among bidders or fixing
artificial/uncompetitive bid price with an intention to deprive the
Employer the benefit of open competitive bid price]
g) contacting the Employer wit an intention to influence the Employer
with regards to the bid or interference of any kind in examination
and evaluation of the bids during the period after opening of bids
up to the notification of award of contract

Page 57
Section IV. General Conditions of Contract

77. Blacklisting 77.1Without prejudice to any other right of the Employer under this contract
Bidder ,the GoN, Public Procurement Monitoring Office may blacklist a bidder
for his conduct up to three years on the following grounds and
seriousness of the act committed by the bidder:

a) if it is proved that the bidder committed acts pursuant to the Sub-

Clause 76.2,
b) if the bidder fails to sign an agreement pursuant to ITB clause
33.3,
c) if it is proved later that the bidder/contractor has committed
substantial defect in implementation of the contract or has not
substantially fulfilled his obligations under the contract or the
completed work is not of the specified quality as per the contract ,
d) if convicted by a court of law in a criminal offence which
disqualifies the bidder from participating in the contract.
e) if it is proved that the contract agreement signed by the bidder was
based on false or misrepresentation of bidder’s qualification
information,
f) other acts mentioned in the SCC

77.2 A firm declared blacklisted and ineligible by the GON and or

concerned Donor Agency in case of donor funded project shall be
ineligible to bid for a contract during the period of time determined by
the PPMO and or the concerned donor agency.

Page 58
Section V. Special Condition of Contract

Section V. Special Conditions of Contract (SCC)

General Conditions of Contract Clause Reference

1.1 The Site is located along ...........................

The “Donor Agency” Not Applicable,
“loan/credit/grant” refers to Not Applicable

The Employer is Department of Roads.

The Employer’s Representative is: Hulaki Rajmarga Project
The Intended Completion Period is: ......................................
The Project Manager is Mr. Guru Prasad Dhakal.

The name and identification number of the Contract is............ Bridge , Contract No.
........................

The Works consist of .........................................................................................................

The Start Date shall be: Date of Signing of Agreement.

2.2 Sectional Completion are: Not applicable

2.3 The following documents also form part of the Contract: Not applicable

3.1 The language of the Contract documents is English.

The law that applies to the Contract is the law of Nepal.

8.1 Schedule of Other Contractors: Not applicable

9.1 The Schedule of Key Personnel Not applicable.

13.1 The minimum insurance covers shall be:

a. The minimum cover for loss of or damage to the Works, Plant and Materials
is: 110% of the Contract Amount.
s. The maximum deductible for insurance of the Works and of Plant and
Materials is:NRs.............

t. The minimum cover for loss or damage to Equipment is : NRs .............

u. The maximum deductible for insurance of Equipment is: NRs .............

v. The minimum for insurance of other property is: NRs ........... with unlimited
number of occurrences.

w. The maximum deductible for insurance of other property is: NRs...............

x. The minimum cover for personal injury or death insurance

i. for the Contractor’s employees is that specified in the Labour act of

Nepal and

ii. for other people is : NRs.......... with an unlimited number of occurrences.

14.1 Site Investigation Reports are: Not applicable

21.1 The Site Possession Date shall be: On the start date.

Page 59
Section V. Special Condition of Contract

24.1 Appointing Authority for the Adjudicator: NEPCA

25.3 Fees and types of reimbursable expenses to be paid to the Adjudicator or the DRB
members :
Fees- NRs 2000/hr
Reimbursable expenses-As agreed among the parties.

25.4 The Institution whose Arbitration procedures shall be used: Nepal Council of
Arbitration (NEPCA)
The place for Arbitration shall be : Kathmandu

26.1 The Contractor shall submit a revised Program for the Works within 15 days from the
date of the Letter of Acceptance.

26.3 The period between Program updates is 60 days.

The amount to be withheld for late submission of an updated Program is : NRs. 250000

34.1 The Defects Liability Period is 12 months.

42.1 Rate of interest for late payment is:10 percent

46.1 The Contract is subject to price adjustment in accordance with Clause 46.1 of the
General Conditions of Contract, and the following information regarding adjustment
shall apply.
Price adjustment shall be made for change of unit price of following major construction
materials and inputs only:

i. Unskilled labour,
ii. Cement,
iii. Reinforcement steel,
iv. Structural steel,
v. Gabion wires,
vi. Diesel
vii. Miscellaneous items.

P= A+Bu(Iu/Iuo)+Bc(Ic/Ico)+Br(Ir/Iro)+Bs(Is/Iso)+Bg(Ig/Igo)+Bd(Id/Ido)+Bm(Im/Imo)

For the purpose of Price adjustment the following coefficients shall apply.

A = Adjustment coefficient for nonadjustable portion

Bu, Bc, Br, Bs, Bg, Bd, Bm= Adjustment coefficient for Unskilled labour, Cement,
Reinforcement steel, Structural steel, Gabion wires, Diesel and Miscellaneous items
respectively

Iu, Ic, Ir, Is, Ig, Id, Im= Unit Price index of Unskilled labour, Cement, Reinforcement
steel, Structural steel, Gabion wires, Diesel and miscellaneous items respectively
prevailing at the end of the month being invoiced (value of Im is taken as National
Urban Consumer Price Index published by Nepal Rastra Bank,)

Iuo, Ico, Iro, Iso, Igo, Ido, Imo = Base Unit Price index of Unskilled labour, Cement,
Reinforcement steel, Structural steel, Gabion wires, Diesel and Miscellaneous items
respectively prevailing 30 days before bid opening (value of Imo is taken as National
Urban Consumer Price Index published by Nepal Rashtra Bank,)
Values of coefficients Bu, Bc, Br, Bs, Bg, Bd, Bm are given below
Bridge
A Bu Bc Br Bs Bg* Bd Bm*
Type
0.1 0.1 0.0 0.1 0.2 0.0 0.20
Steel 0.05(0.00)
5 5 5 0 5 5 (0.25)

Page 60
Section V. Special Condition of Contract

0.1 0.1 0.1 0.2 0.0 0.05 0.0 0.25

Concrete
5 5 5 0 0 (0.00) 5 (0.30)
*Figures in parentheses are for bridges without gabion work.

Insert Base Price of construction material that are applicable to the works and are
considered for price adjustment

Particulars Base price Source

Unskilled Labour NRs……….. /md
Cement NRs…………. / MT
Reinforcement Steel NRs…………. / MT
Structural Steel NRs…………. / MT
Gabion Wire NRs…………. / MT
Diesel NRs…………. / Liter

The base prices of the construction materials shall be taken as of 30 days before the
deadline for submission of the Bid. For the purpose of calculation of price adjustment,
the Ex-factory price of the same source shall be taken into consideration. Source of
indices must be acceptable to the Employer.

46.4 The price adjustment amount shall be limited to: 25 percent of the initial contract
amount.

47.1 The proportion of payments retained is 5 percent.

48.1 The liquidated damages for the whole of the Works are 0.05 percent of the final
Contract Price per day.

The maximum amount of liquidated damages for the whole of the Works is 10 percent
of the final Contract Price.

49.1 The bonus for the whole of the Works is Not applicable
The maximum amount of Bonus for the whole of the Works is Not applicable

50.1 The Advance Payment shall be maximum 15 percent of the initial contract price
excluding the provisional sums, day works and VAT and shall be made in two
instalments. The First instalment of ten percent shall be made to the contractor upon
submission of acceptable Bank Guarantee for advance payment and the second
instalment of five percent shall be made after the contractor completes full mobilization
at site and has fulfilled contractual obligations such as submission of insurance policies,
work program and acceptable bank guarantee to the Employer.

50.3 The Advance Payment will be repaid as follows:

Deductions from Payment Certificates will commence in the first certificate in which the
value of works executed exceeds 30% of the Contract Price. Deduction will be at the
rate of 30% of the respective Monthly Interim Payment Certificate until such time as the
advance payment has been repaid; provided that the advance payment shall be
completely repaid prior to the end of 90 % of the approved contract period.

Replace the 2nd sentence of clause 50.3 by the following

No account shall be taken of the advance payment or its repayment in assessing

valuations of work done, Variations, Compensation Events, Bonuses or
Liquidated Damages.

51.1 The Performance Security shall be for the following minimum amounts equivalent as a
percentage of the Contract Price: 5 percent and an additional amount of 8% of the

Page 61
Section V. Special Condition of Contract

Contract price if the Employer has increased the Performance Security amount
pursuant to ITB Sub Clause 29.4

The standard form(s) of Performance Security acceptable to the Employer shall be “an
Unconditional Bank Guarantee” acceptable to the Employer of the type presented in
Section IX of the Bidding Documents.

57.1 The date by which operating and maintenance manuals are required is within 30 days
after completion of the works.

The date by which “as built” drawings are required is within 30 days after completion
of the works.

57.2 The amount to be withheld for failing to produce “as built” drawings and/or operating
and maintenance manuals by the date required is: NRs. 100000 or 0.1% of the
contract price whichever is higher.

58.2(g) The maximum number of days is: 200; consistent with clause 48.1 of liquidated
damages.

59.1 The percentage to apply to the value of the work not completed, representing the
Employer’s additional cost for completing the Works, is 25%.

The Project Manager has to obtain the specific approval of the Employer for taking any of the
following actions:
a. Approving subcontracting of any part of the works under General Conditions of Contract
Clause 7;
b. Certifying additional costs determined under General Conditions of Contract Clause 43;
c. Determining start date under General Conditions of Contract Clause 1;
d. Determining the extension of the intended Completion Date under General Conditions of
Contract Clause 27;
e. Issuing a Variation under General Conditions of Contract Clause 1 and 38, except in an
emergency situation, as reasonably determined by the Engineer; emergency situation may
be defined as the situation when protective measures must be taken for the safety of life or
of the works or of adjoining property.
f. Adjustment of rates under General Conditions of Contract Clause 37.

Page 62
Section VI. Specification

Section VI. Specifications

The Contractor shall adhere to the Standard Specifications for Road and Bridge
Works, July 2001, published by Department of Roads, for material, workmanship and
procedure.
The Contractor shall obtain the Specification mentioned above at his own cost.

Page 63
Section VI. Specification

Special Provisions (supplement to the Special Condition of Contract &

Specifications)

1. Supervision vehicle on hire for 18000 km run per year including fuel, lubricants,
maintenance and driver all cost included
Minimum requirement for the Inspection Vehicle required by the Hulaki Road Bridge Project

SN Particulars Vehicle Type A Vehicle Type B Vehicle Type C

1 Short chasis Hard Pick Up Double Cab Passenger Car,
Top SUV, Right Utility Vehicle, Right Right Hand Drive
General
Hand Drive with Four Hand Drive with four with 5 speed
Wheel drive wheel drive. transmission
2 Cab 5 doors, glass 4 doors, glass 5 doors, glass
windows on doors, windows on doors, windows on doors,
comfortable and comfortable and comfortable and
adjustable seats for adjustable seats for adjustable seats for
driver and co- driver and co- driver and co-
passenger, Two passenger, Two passenger, Two
rows forward facing rows forward facing rows forward facing
seats, floor mats, AC seats, floor mats, AC seats, floor mats, AC
and Radio and Radio and Radio
MW/FM/CD/Cassett MW/FM/CD/Cassett MW/FM/CD/Cassette
e Player. e Player. Player.
3 Seating 1+ 4 1+ 4 1+ 4
Capacity
including driver
4 Gross Vehicle minimum 2200 kgs minimum 2500 kgs minimum 850 kgs
Weight (GVW)
in kg
5 Ground Minimum 195 mm Minimum 200 mm Minimum 170 mm
clearance
6 Engine minimum 1990 cc minimum 1900 cc minimum 1050 cc
Capacity in cc

The vehicle will be used under the following terms and conditions:

1. The Vehicle shall be available for site work use for contract period.
2. The vehicle shall be available in well refueled and serviced condition
3. The vehicle shall be supplied with paid driver, fuel and lubricants. The
Contractor/Supplier shall be responsible for regular maintenance of the vehicle, driver's
remunerations and allowances, if any, and other logistics.
4. In case of any regular repair and maintenance, the approval shall be sought one day
before the work has to be started. The Contractor shall arrange for substitute
transportation during such period
5. In case of repair work which may take more than 3 days, the supplier/contractor shall
replace the vehicle with a similar vehicle immediately or as agreed by the Project
Manager
6. All the local Taxes/Road Tolls shall be paid by the supplier/contractor.
7. The driver shall demonstrate good moral character. In absence of such quality, the
driver shall be changed by the supplier/contractor immediately after getting report from
the Employer whatsoever reason may be.
8. The vehicle shall be fully insured including third party insurance.
9. The vehicle shall not be older than one year or used up to 20,000 km.
10. The contractor/supplier shall be penalized NRs. 3000/- per day, in case of the failure to
supply the vehicle as per the agreement.

The contractor shall provide supervision vehicle within fifteen days after receiving written
instruction from the employer. All the above things shall remain property of contractor after
completion of the project.

Page 64
Section VI. Specification

2. Supply and maintain motorcycle

The motor cycle to be supplied shall be from the approved manufacturer and shall have four
stokes engine with minimum capacity of 125 cc, leg guards and helmet. The color of the
motorcycle Helmet and wheel size shall be as approved by the Project Manager before supply.

The Contractor shall procure and get the motorcycle registered in his name in the beginning and
supply to the Employer with the registered Number Plate for the use in the project work.

Contractor shall maintain the motorcycle with necessary fuel, lubricants and servicing for a
minimum use of 1000 km per month, without any interruption. The timing of regular
maintenance shall be as agreed by the Project Manager based on manufacturer operation
manual. However, the cumulative period of all types of maintenance shall not exceed 10 hours
in any month.

After the completion of project the Contractor, at his own cost, shall transfer the ownership of
the Motor Cycle to the Employer as instructed by the Project Manager.

3. Provision of Insurances

The Contractor shall provide all necessary Insurances as required and detailed in the
Conditions of Contract or this Specification.

Measurement shall be as lump sum payments for all expenditures with regard to the provision of
Insurances. Payment of the lump sums shall be made under the relevant items in the Bill of
Quantities on submission to the Engineer of acceptable Insurance policies, as required by the
Conditions of Contract. 70% of the agreed lump sum shall be paid during the construction
period and remaining 30% shall be paid during the Defect Liability Period. All payments shall be
made on presentation of valid proof of payment of premiums for the Insurance policies made as
required by the conditions of contract. The insurance for construction period shall be done
before the start of the construction and that for Defect Liability Period shall be done before the
start of Defect Liability Period.

4. Provision for Site office for engineer

Type A

The contractor shall provide an office throughout the construction period for the engineer
standing to the following specification.

Rooms a) Five Rooms (Minimum Area 60 sq.m) with proper ventilation.

(office Rooms – 2, b) One Kitchen (Minimum Area 10 Sq. m) with proper ventilation.
Guest Rooms – 2 , c) No Other Occupants are allowed in the same building.
Drawing Room – d) The office shall be located near by the bridge site.
1)

Furniture for the a) Two sets of office tables, minimum size of each = 1.5x1.0 m, with
office: comfortable chairs and file cabinets
b) Ten nos. of wooden or steel chairs with in-built cusion
c) Two number of cupboards (about 2 m high) with locks
d) Approved flooring
Furniture for the a) Two sets of bed and wardrobes
guest room: b) One set of sofa with coffee table and book case
c) Approved flooring
Other facilities: a) Toilet and wash basins with running water, soaps and towels with
proper flooring, ventilation and waste disposal
b) Approved door locks on all the rooms and Toilet
c) Parking space for at least 3 vehicles

Page 65
Section VI. Specification

Type B

Rooms a) Two rooms (minimum area 25 m²) with proper ventilation

b) No other occupants are allowed in the same floor of the building
c) The office shall be located near the bridge construction site (not
more than 200 m from the bridge site)
Table with drawers 2 nos. of Steel or Wooden table, Minimum size of each = 1.5 m x 1.0 m

Furniture for the 2 nos. of Steel or Wooden table, Minimum size of each = 1.5 m x 1.0 m ,
office: 10 nos. of wooden or steel chairs with in-built cushion
One set of bed

Steel cupboard 1 number of steel cupboard,

about 2 m high, with lock

Facilities Toilet and wash basin with running water soaps and towel;
The office rooms should be fitted with door locks
The toilet should have proper disposal of waste

All the office, rooms, furniture and flooring should be acceptable to the Employer.

The contractor shall bear all the cost of House rent, electricity, water supply, Telephone line
connection with its monthly bill payment and cost of guards and the maintenance of site office.

Payment
The cost of all shall be included in the concerned BoQ Item rates concerned BoQ Item rate.

5. As-Built Drawings with Digital Photographs

Before the end of the contract the contractor shall submit as built drawings of the works in 3 sets
of hard copies and a digital copy in the format as follows:

a) Size: All the drawings shall be presented in sheets not less than size A3 bound
properly.
b) Contents of the drawings: The drawings shall show all necessary elements of the
structures and their dimensions. The Drawings shall include but may not be limited to the
followings:

1) Topographic plan of the bridge site

2) General arrangement of the bridge showing bridge in plan and profile with
Levels of the bridge deck, soffit, Existing bed level, levels of foundations,
etc.
3) Type of soil found in the layers above the foundation bed level.
4) Detailed drawings of the bridge elements
5) Detailed drawings of the river training works
6) Detailed drawings of the approach roads including culverts, if any (Plan,
Profile and cross sections)
7) Detailed drawings of the ancillary work (Bridge sign post, traffic signs,
delineator posts etc.)
c) The Drawings shall be presented in clear legible format with size of lettering anywhere
in the drawings not less than 2.0 mm.
d) If there is any special instruction for maintenance of the bridge and / or its elements it
shall be clearly written on the corresponding sheet of the drawing.
e) Photographs of the bridge elements shall be digitally attached (embedded) on the
corresponding sheets of the drawings. The photographs shall include images during
construction of the particular element and after its completion. General views of the
bridge shall be attached to the cover sheet after completion of the whole works. Other
relevant images maybe attached in the annex to the drawings.

Page 66
Section VII. Drawings

Section VII. Drawings

A set of drawings is available at the Project Office for inspection. The Successful Bidder shall be
provided the drawings after signing of the contract. If there is any provision of revision of the
design / drawings in the Contract, such revised design / drawings shall be effective upon
approval by the Project Manager.

Page 67
Section VIII. Bill of Quantities

Section VIII. Bill of Quantities

1. The quantities given in the Bill of Quantities are estimated and provisional, and are given
to provide a common basis for bidding. The basis of payment shall be the actual
quantities of work ordered and carried out, as measured by the Contractor and verified
by the Engineer and valued at the rates and prices tendered in the priced Bill of
Quantities, where applicable, and otherwise at such rates and prices as the Engineer
may fix within the terms of the Contract.

2. All items are measured and paid for in accordance with the measurement and payment
clauses in the Special Provisions and in the Employer's Requirements and
Specifications.

3. The Bill of Quantities is priced in NEPALESE RUPEES.

4. No unauthorized alterations, additions or deletions shall be made to the Bill of Quantities.

5. All tipping sites shall be provided by the Contractor but must have prior approval of the
Engineer. Where a site is deemed unsuitable by the Engineer no claim from the
Contractor will be made for transport to an alternative tip.

6. The rates for constructional plant shall be deemed to include due to complete allowance
for depreciation, interest, indemnity and insurance, repairs, maintenance, supplies, fuel
lubricants and other consumables and all overheads, profit and administrative costs
related to use of such equipment. The cost of drivers, operators and assistants will also
be deemed to be included in the rate.

7 Provisional sums included and so designated in the Bill of Quantities shall be expended
in whole or part or not at all, at the discretion of the Project Manager in accordance with
the Contract. “Provisional Sum” means a sum included in the Contract and so
designated in the Bill of Quantities for the execution of any part of the works or the
supply of goods, material, plant or services, or for contingencies, which sum may be
used in whole or in part, or not at all, on the instructions of the Project Manager. The
Contractor shall be entitled to only such amounts in respects of the work, supply or
contingencies to which such Provisional Sums relate as the Project Manager shall
determine in accordance with this clause. The Project Manager shall notify the
Contractor of any determination made under this item a copy to the Employer.

8. The meanings for abbreviations shall be as follows:

Page 68
Section VIII. Bill of Quantities

Description Abbreviation
Millimeter mm
Meter m
Square Meter Sq.m. or sqm or m2
Running meter rm or r.m. or Rm
Cubic Meter cu.m. or cum or m3
Kilometer Km
Kilogram Kg
Metric Ton m.t.or m.ton or tonne or mt,
Number Nos.
M20/20 Concrete grade 20 N/mm2 with 20 mm nominal size aggregates.
M10/40 Concrete grade 10 N/mm2 with 40 mm nominal size aggregates.
Lump Sum LS or L.S.
Provisional Sum PS or P.S.
Man-month MM
Vehicle-month VM or veh-month
Man-days MD

(...... pages of BOQ to be attached after this page.)

Page 69
Section IX. Sample Forms of Securities

Section IX. Sample Forms of Securities

Notes on Sample Forms of Securities

Samples of acceptable forms of Bid, Performance, and Advance Payment Guarantees are
annexed. Bidders should not complete the Performance and Advance Payment Security forms
at the time of bidding. Only the successful Bidder will be required to provide Performance and
Advance Payment Securities in accordance with one of the sample forms or in a similar form
acceptable to the Employer.

The Unconditional (or “On-Demand”) Bank Guarantee has the merit of simplicity and of being
universally known and accepted by commercial banks.

Page 72
Section IX. Sample Forms of Securities

Bid Security (Bank Guarantee)

Whereas, [name of Bidder] (hereinafter called “the Bidder”) has submitted his bid dated [date]
for the construction of ………… Bridge , Contract No. ……………… (hereinafter called “the
bid”).

Know all people by these presents that We [name of Bank] of [name of country] having our
registered office at [address] (hereinafter called “the Bank”) are bound unto [name of Employer]
(hereinafter called “the Employer”) in the sum of [amount] for which payment well and truly to be
made to the said Employer, the Bank binds itself, its successors, and assigns by these
presents.

Sealed with the Common Seal of the said Bank this [day] day of [month], [year].

The conditions of this obligation are:

(1) If, after bid opening, the Bidder withdraws his bid during the period of bid validity specified
in the Form of Bid; or

(2) If the Bidder having been notified of the acceptance of his bid by the Employer during the
period of bid validity:

(a) fails or refuses to execute the Form of Agreement in accordance with the Instructions
to Bidders, if required; or

(b) fails or refuses to furnish the Performance Security, in accordance with the
Instruction to Bidders; or

(c) does not accept the correction of the Bid Price pursuant to Clause 27,

We undertake to pay to the Employer up to the above amount upon receipt of his first written
demand, without the Employer’s having to substantiate his demand, provided that in his demand
the Employer will note that the amount claimed by him is due to him owing to the occurrence of
one or any of the two conditions, specifying the occurred condition or conditions.

This Guarantee will remain in force up to and including the date [number] days after the
deadline for submission of Bids as such deadline is stated in the Instructions to Bidders or as it
may be extended by the Employer, notice of which extension(s) to the Bank is hereby waived.
Any demand in respect of this Guarantee should reach the Bank not later than the above date.
This Guarantee shall not be withdrawn or released merely upon return of the original
Guarantee by the Bidder unless notified by the Employer for the release of the Guarantee

Date Signature of the Bank

Witness Seal

[signature, name, and address]

Page 73
Section IX. Sample Forms of Securities

Performance Bank Guarantee (Unconditional)

To: The Department of Roads

Hulaki Rajmarga Project
Babar Mahal

Whereas [name and address of Contractor] (hereinafter called “the Contractor”) has undertaken,
in pursuance of Contract No. [number] dated [date] to execute ………… Bridge , Contract No.
……………. (hereinafter called “the Contract”);

And whereas it has been stipulated by you in the said Contract that the Contractor shall furnish
you with a Bank Guarantee by a recognized bank for the sum specified therein as security for
compliance with his obligations in accordance with the Contract;

And whereas we have agreed to give the Contractor such a Bank Guarantee;

Now therefore we hereby affirm that we are the Guarantor and responsible to you, on behalf of
the Contractor, up to a total of [amount of Guarantee] [amount in words], such sum being
payable in the types and proportions of currencies in which the Contract Price is payable, and
we undertake to pay you, upon your first written demand and without cavil or argument, any
sum or sums within the limits of [amount of Guarantee] as aforesaid without your needing to
prove or to show grounds or reasons for your demand for the sum specified therein.

We hereby waive the necessity of your demanding the said debt from the Contractor before
presenting us with the demand.

We further agree that no change or addition to or other modification of the terms of the Contract
or of the Works to be performed there under or of any of the Contract documents which may be
made between you and the Contractor shall in any way release us from any liability under this
Guarantee, and we hereby waive notice of any such change, addition, or modification.

This Guarantee shall be valid until a date 30 days from the date of issue of the defect liability
certificate.

Signature and seal of the Guarantor

Name of Bank
Address
Date

Page 74
Section IX. Sample Forms of Securities

Bank Guarantee for Advance Payment

To: [name and address of Employer]

[name of Contract]

Madam/Gentlemen:

In accordance with the provisions of the General Conditions of Contract, Clause 50 (“Advance
Payment”) of the above-mentioned Contract, [name and address of Contractor] (hereinafter
called “the Contractor”) shall deposit with [name of Employer] a Bank Guarantee to guarantee
his proper and faithful performance under the said Clause of the Contract in an amount of
[amount of Guarantee] [amount in words]

We, the [Bank or Financial Institution], as instructed by the Contractor, agree unconditionally
and irrevocably to guarantee as primary obligator and not as Surety merely, the payment to
[name of Employer] on his first demand without whatsoever right of objection on our part and
without his first claim to the Contractor, in the amount not exceeding [amount of Guarantee]
[amount in words].

We further agree that no change or addition to or other modification of the terms of the Contract
or of Works to be performed there under or of any of the Contract documents which may be
made between [name of Employer] and the Contractor, shall in any way release us from any
liability under this Guarantee, and we hereby waive notice of any such change, addition, or
modification.

The validity period of the guarantee shall be 30 days beyond the period scheduled for
repayment of the advance payment and the guarantee shall remain valid and in full effect from
the date of the advance payment under the Contract until the [name of Employer] receives full
repayment of the same amount from the Contractor.

Yours truly,

Signature and seal:

Name of Bank/Financial Institution:

Address:
Date:

Page 75