Implementation of PEC Standard Bidding/Contract Documents:
Introduction
Transparent bidding, evaluation, awards and execution of construction and consultancy
contracts are dependent on bidding/contract documents prepared on just and equitable
basis for stakeholders. Presently various Government departments, autonomous bodies
etc. prepare their documents with the help of limited expertise available with them.
Such documents are either one sided or fail to adequately safeguard public interest.
Further, lack of uniformity in preparation of the documentation among various departments
creates confusion for contractors/suppliers and leads to many malpractices and contractual
disputes, resulting in high cost of construction.
Background
During 1989, Government of Pakistan desired that large contracts already awarded
be reviewed and a mechanism evolved to improve the present system. Accordingly ECC
of the Cabinet, after deliberation on a Summary dated 15th January, 1989, prepared
by Finance Division, decided to constitute a Committee headed by Mr. A.G.N. Kazi,
Deputy Chairman, Planning Commission to review the existing rules and procedures
for award of large contracts and to suggest measures to prevent malpractices. The
Committee prepared the report which was placed before the ECC on 22nd November,
1990 and was adopted with some modifications. One of its recommendations was to
accelerate the work of reviewing the standard form of contract & supporting
documents etc. by the committee headed by Secretary, Law & Justice.
Pakistan Engineering Council being the statutory regulatory body to regulate the
engineering profession in Pakistan, was already involved in the exercise of preparation
of standard documents through a Committee comprising relevant departments, agencies,
consulting engineers and construction companies. As a consequence and receiving
impetus from the decision of ECC, after extensive deliberations by the said Committee,
a document namely, "PEC Standard Conditions of Contract" was formulated in 1992
which was in line with the findings/suggestions of AGN Kazi report.
Also in pursuance of a petition submitted to the President of Pakistan by the Chairman
Contractors Association of Pakistan, a Committee headed by Deputy Chairman, Planning
Commission was set up to probe into the problems of Construction Industry.
The terms of reference of the Committee were to review the document entitled Pakistan
Standard Conditions of Contract prepared by Pakistan Engineering Council and the
ECNEC Committee’s Report on the Impact of Measures taken in 1992 on Construction
Industry.
The Committee submitted its report on 24th October, 1996 and adopted with some modifications/amendments
Pakistan Standard Conditions of Contract as the Standard format for all departments
involved in the execution of development works/projects in the country. These modifications/amendments
were duly incorporated. However, inspite of various efforts launched by PEC, the
said document could not be notified by the GoP for adoption by all government departments.
Development of Standard Documents
Later on PEC updated the said document by incorporating Instructions to Bidders
and various Forms to make it a complete bidding document and renamed it as, "Standard
Form of Bidding Document (Civil Works)". In addition, PEC also prepared other documents
and has completed and updated a set of six documents (title with salient features
follow) so far, involving all major stakeholders.
(1) STANDARD FORM OF BIDDING DOCUMENTS (Civil Works)
(to be used for construction contract over Rs. 25 Millions)
- Instructions to Users of the document guide step by step to fill in
the gaps and make the document project specific.
- Invitation to Tenderers
- Instructions to Tenderers
- Used FIDIC Conditions of Contract (Part-I)
- PEC varied some FIDIC provisions mandatory for users (Part-IIA)
- Provisions kept for further changes by the user in Part-IIB.
- Escalation Formula as Approved by the GOP.
- Arbitration Provisions under the Arbitration Act 1940.
- Tendering Data to provide specific information. This will facilitate
not making any changes in Instructions to Tenderers.
- Tender and Appendices provide formats and instructions to fill data
such as Bill of Quantities, proposed Construction Schedule etc.
- Various Forms such as Tender Security, Performance Guarantee etc.
- Formats for complete bidding documents with the index for Specifications,
Technical Provisions and Drawings to remind the user need of components to complete
the documents.
(2) STANDARD FORM OF TENDER DOCUMENTS FOR PROCUREMENT OF WORKS (Electrical &
Mechanical)
(to be used for E&M procurement contract over Rs. 25 Millions)
- Instructions to Users of the document guide step by step to fill up the gaps and
make the document project specific.
- Invitation to Tenderers Instructions to Tenderers
contains instructions to user in parenthesis where data is to be provided.
- Forms
of Tender & Schedules to Tender.
- Schedule of Prices, generalized format.
- Provision
to award Domestic Preference according to directive by GoP.
- Preamble to Conditions
of Contract summarised need of specific data in the Contract.
- FIDIC General Conditions
of Contract used.
- PEC varied GCC in Special Conditions of Contract which can not
be altered.
- User (Employer) may vary Condition of Contract for special conditions of the project in Particular Conditions of Contract.
- Various Forms such as Tender Security, Performance Guarantee etc.
- Arbitration Provisions under the Arbitration Act 1940.
- Formats for complete bidding documents with the index for Specifications,
Technical Provisions and Drawings to remind the user need of components to complete
the documents.
(3) STANDARD FORM OF TENDER DOCUMENTS FOR PROCUREMENT OF WORKS (For Smaller Contracts)
(to be used for all type of procurement below Rs. 25 Millions)
(4) STANDARD FORM OF CONTRACT FOR ENGINEERING CONSULTANCY SERVICES (For Large Projects)
– TIME BASED ASSIGNMENTS
(to be used for consultancy fee above Rs. 2 Millions)
(5) STANDARD FORM OF CONTRACT FOR ENGINEERING CONSULTANCY SERVICES (For Large Projects)
– LUMP SUM ASSIGNMENTS
(to be used for consultancy fee above Rs. 2 Millions)
(6) STANDARD FORM OF CONTRACT FOR ENGINEERING CONSULTANCY SERVICES (For Smaller
Projects)
(to be used for consultancy fee less than Rs. 2 Millions)
