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1. Procurement of Works and Consultancy Services CHAPTER 2

2. CONTENTS OF THE CHAPTER 2.1. Procurement Of Works 2.2. Selection And Employment of Consultants 2.3. Handling of Procurement Complaint

3. 2.1. PROCUREMENT OF WORKS

4. Sub-contents General Preparation of Bidding Documents Tender Management Evaluation of Bid 4

5. 2.1.1. PROCUREMENT OF WORKS; GENERAL

6. 3. Procurement Procedures

7. 3. Procurement Procedures

8. 4. Basic Contract Types

9. 4. Basic Contract Types

10. 11 4. Basic Contract Types (Cont.) Lump Sum Uses Small, well-defined works/ building of short duration Large industrial process plants (Turnkey) ADVANTAGES Fixed sum for budgeting Easy to administer Little/No measurement Less documentation DISADVANTAGES Inflexible to changes/High Risk

11. 12 4. Basic Contract Types (Cont.) Unit Rate (Ad/Re-Measurement) Most common for infrastructure construction of short or long duration Advantages Equitable basis for bidding Facilitates bid comparison and evaluation Adaptable to changes Periodic payments follow contractor’s cash flow. Normally little difference between estimates, bids and final cost Disadvantages Problems with unbalanced bids/unit rates Preparing and Monitoring Detailed BOQ

12. 4. Basic Contract Types (Cont.) Factors Affecting Choice of Type of Goods/Works Contracts (As Applicable) Nature and Complexity of Works Degree of Definition/Risk/Uncertainty Status of Design Technical/Supervisory Resources of the Public Body Budgetary/Financing/Borrowing constraints Previous experiences of the Public Body Standard Documents of Funding Agency 13

13. 5. Pre-Qualification Why pre-qualification? To invite firms with strong capabilities Advantages Allows inadequately qualified potential bidders to avoid the expense of preparing bids or to see other options to associate as a Joint Venture The Employer is able to assess the interest from qualified bidders and thereby if necessary modify the contract 14

14. 5. Pre-Qualification (Con.) Advantages (Con.) Competition against qualified bidders, and thereby avoid unrealistic low bids. It can reduce the amount of work by the Employer of evaluating bids It can provide advanced warning of any potential conflict of interest between potential contractors and consultant involved with the project. It avoids possible difficulties of having to reject low bids 15

15. 5. Pre-Qualification (Con.) Disadvantages Increase the lead time for the procurement process All of the submitted prequalification applications have to be assessed It is easier for collusion between bidders with a smaller number of identified bidders It is possible that subjectivity by the Employer’s in making judgments during the prequalification exercise 16

16. 2.1.2. PROCUREMENT OF WORKS; PREPARATION OF BIDDING DOCUMENTS

17. 2.1.2. Preparation of Bidding Documents Bidding documents are prepared to: Inform bidders Instruct bidders of the requirement expected of them To define: The Works to be procured The scope of works The rights and obligations of the parties to the would be contract Conditions to be met 18

18. Bidding documents are prepared to: (Cont.) Encourage bidders to bid by making reasonable demand for information and form-filling to avoid discrimination against any potential bidder Provide a clear, objective means of evaluating the bidders 19 2.1.2. Preparation of Bidding Documents (Con.)

19. Bidding Documents are Prepared by Public Bodies together with Consultants Design Outputs Drawings Technical Specifications Bill of Quantities Engineering Cost Estimates 20 2.1.2. Preparation of Bidding Documents (Con.)

20. Standard Bidding Documents (SBD) Are standardized documents Used overtime and met tests of time Structured whereby ITB & GCC are to be used unchanged and specific situations are qualified under BDS & SCC Issued by, such as: Federal Public Procurement and Property Administration Authority (FPPPAA) (Latest Version November 2011) Ethiopian Roads Administration (ERA) Different Financiers like the World Bank 21 2.1.2. Preparation of Bidding Documents (Con.)

21. The FPPPAA SBD has 3 parts & 9 sections Part 1- Bidding procedures Section 1 – Instruction to Bidders (ITB) Section 2 – Bid Data Sheet (BDS) Section 3 – Evaluation and Qualification Criteria (EQC) Section 4 - Bidding forms Section 5 – Eligible countries 22 2.1.2. Preparation of Bidding Documents (Con.)

22. The FPPPAA SBD has 3 parts & 9 sections (Cont.) Part 2- Schedule of Requirements Section 6- Schedule of Requirements (Scope of Work, Technical Specification, Drawings and Bill of Quantity) Part 3 – Contract Section 7 – General Condition of Contract (GCC) Section 8 – Special Condition of Contract (SCC) Section 9 – Contract Forms 23 2.1.2. Preparation of Bidding Documents (Con.)

23. PREPARATION OF BIDDING DOCUMENTS; EVALUATION METHODOLOGY AND CRITERIA

24. Setting of criteria for bid evaluation Selection of a successful bidder shall be carried out in either of the following two methods: setting the minimum technical requirement and selecting the bidder with the lowest evaluated bid, or Giving weighting for technical and financial bids, and selecting the bidder with the highest cumulative result The relevance of the evaluation criteria must be ascertained and they have to be given relative weight in terms of the level of their contribution to the determination of the benefit of the procurement 25 2.1.2. Preparation of Bidding Documents (Con.)

25. Qualification Criteria 1. General Qualification 1.1. Legal Status Bidders should submit copies of original documents defining the following: a) In case of local bidders, constitution or legal status place of registration and principal place of business written power of attorney Certificate of Registration from the concerned Ministry with Category GC-1 or RC-1 renewed for the …… EFY 26 2.1.2. Preparation of Bidding Documents (Con.)

26. Qualification Criteria 1. General Qualification (Cont.) 1.1. Legal Status (Cont.) Trading License renewed for …. EFY; Tax clearance certificate which states its eligibility to participate in public tenders and valid at least at the deadline for submission of bids; VAT registration certificate; and Registration as Supplier in the list of the mandated public body, i.e. PPPAA. 27 2.1.2. Preparation of Bidding Documents (Con.)

27. Qualification Criteria 1. General Qualification (Cont.) 1.1. Legal Status (Cont.) b) In case of Bidders other than Ethiopians; Constitution or legal status, Place of registration and principal place of business, Written power of attorney; Business organization registration certificate or Trade License issued by the country of establishment. Tax Clearance certificate issued from the Tax Authority which allows the bidder to participate in public tenders at the date of the deadline for bid submission , if the bidder already has/had a project in Ethiopia . 28 2.1.2. Preparation of Bidding Documents (Con.)

28. Qualification Criteria 1. General Qualification (Cont.) 1.2. Major Equipment 1.3. Key personnel 1.4. Proposal for Sub-Contracting 1.5. Proposal of Work Methods and Programs 29 2.1.2. Preparation of Bidding Documents (Con.)

29. Qualification Criteria 2. Historical Contract Non-Performance 2.1. History of Non-Performing Contracts 2.2. Pending Litigation All pending litigation shall in total not represent more than Thirty Percent (30%) of the Bidder's net worth and shall be treated as resolved against the Bidder. 30 2.1.2. Preparation of Bidding Documents (Con.)

30. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance Submission of audited balance sheets for the last 5 Years to demonstrate: the current soundness of the Bidder`s financial position and its prospective long-term profitability Financial statements submitted by Bidders shall be validated by comparing with records taken from the relevant tax authority. 31 2.1.2. Preparation of Bidding Documents (Con.)

31. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance (Con.) Current ratio is current asset divided by current liability Current assets listed on a company’s  balance sheet  include  cash ,  accounts receivable ,  inventory , and  other current assets  (OCA) that are expected to be liquidated or turned into cash in less than one year. Current liabilities include  accounts payable , wages, taxes payable, short-term debts, and the current portion of long-term debt. 32 2.1.2. Preparation of Bidding Documents (Con.)

32. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance (Con.) Exercise If a business holds: Cash = $15 million Marketable securities = $20 million Inventory = $25 million Short-term debt = $15 million Accounts payables = $15 million Calculate the Current Ratio. 33 2.1.2. Preparation of Bidding Documents (Con.)

33. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance (Cont.) Local bidders: i ) Average of the current ratios of the last 5 years should be more than 1 OR The current ratio of the recent year should be more than 1 And ii) Profit before tax of the past 4 years should be positive. 34 2.1.2. Preparation of Bidding Documents (Con.)

34. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance (Cont.) Foreign bidders: i ) Average of the current ratios of the last 5 years should be more than 1 And ii) The current ratio of the recent 3 years should be more than 1 And iii) Profit before tax of the past 4 years should be positive. 35 2.1.2. Preparation of Bidding Documents (Con.)

35. Qualification Criteria 3. Financial Situation 3.1 (a) Historical Financial Performance (Cont.) Foreign bidders: i ) Average of the current ratios of the last 5 years should be more than 1 and ii) The current ratio of the recent 3 years should be more than 1 and iii) Profit before tax of the past 4 years should be positive. If Bidder’s could not fulfill this criteria, they shall instead provide unconditional line of credit 36 2.1.2. Preparation of Bidding Documents (Con.)

36. Qualification Criteria 3. Financial Situation 3.1 (b) Current Contract Commitments Bidders and each partner to a JV should provide information on their current commitments on all contracts that have been awarded, or for which a letter of intent or acceptance has been received, or for contracts approaching completion, but for which an unqualified, full completion certificate has yet to be issued. Cash flow requirement : Specify proposed sources of financing, such as liquid assets, unencumbered real assets, lines of credit, and other financial means, net of current commitments, available to meet the total construction cash flow demands of the subject contract amounts ETB ….. for local bidders and ETB ….. for foreign bidders. 37 2.1.2. Preparation of Bidding Documents (Con.)

37. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover i ) For Local Bidders Peak annual construction turnover of ETB …. [ calculated by dividing the Engineer’s Estimate by the duration of contract in months (days shall be rounded up to the next month) and by multiplying the result by 12 and 0.8] calculated as total certified payments received for contract in progress or completed within the last 5 years 38 2.1.2. Preparation of Bidding Documents (Con.)

38. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover i ) For Local Bidders (Con.) If a Bidder is a JV formed b/n local firms, the peak annual construction requirement will be the aggregate of the peak annual construction turnover of the joint venture partners. If bidders submit their bid in JV, the construction turnover requirement for each partner shall not be less than 25%; while that of the lead partner of the JV shall not be less than 40%. 39 2.1.2. Preparation of Bidding Documents (Con.)

39. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) i ) For Local Bidders (Con.) Exercise Calculate the Peak ACT requirement for Local Bidders for a project with Engineer’s Estimate of ETB 1.2 Billion and a contract duration of two and half years and 5 days. 40 2.1.2. Preparation of Bidding Documents (Con.)

40. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) ii) For Foreign Bidders Average annual construction turnover of ETB …. [ calculated by dividing the Engineer’s Estimate by the duration of contract i n months (days shall be rounded up to the next month) and by multiplying the result by 12 and 2 ] calculated as total certified payments received for contracts in progress or completed within the last 5 years 41 2.1.2. Preparation of Bidding Documents (Con.)

41. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) For Foreign Bidders (Con.) During Evaluation, the Average ACT of a JV for “All Parties Combined” shall be determined as follows: First, each JV partner’s ACT for the respective year will be “Summed up” to obtain the Total ACT of “All Parties Combined” for each year of the last 5 years; Then, the average of each Year’s Total ACTs of “All Parties Combined” (in the last 5 years) will be taken for the evaluation. If bidders submit their bid in JV, the construction turnover requirement for each partner shall not be less than 25%; while that of the lead partner of the JV shall not be less than 40%. 42 2.1.2. Preparation of Bidding Documents (Con.)

42. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) iii) For a JV of Local and Foreign Bidders Average annual construction turnover of ETB …. [ calculated by dividing the Engineer’s Estimate by the duration of contract i n months (days shall be rounded up to the next month) and by multiplying the result by 12 and 1.5 ] calculated as total certified payments received for contracts in progress or completed within the last 5 years 43 2.1.2. Preparation of Bidding Documents (Con.)

43. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) iii) For a JV of Local and Foreign Bidders (Con.) If a Bidder is a JV formed b/n foreign and local firms the peak construction turnover requirements for local firms shall not be less than 25% as members of the JV and 40% as lead partner of JV; while the average construction turnover requirement of foreign firms shall not be less than 25% as members of the JV and 40% as lead partner of the JV. 44 2.1.2. Preparation of Bidding Documents (Con.)

44. Qualification Criteria 3. Financial Situation 3.2 Annual Construction Turnover (Con.) The value of total certified payments received in each year (i.e. ACTs) shall be adjusted for inflation of Birr value through multiplying by Cn/Co factor, where Cn is value of 1 US Dollar in Birr on the date 28 days prior to bid submission date and Co is the value of 1 US Dollar in Birr computed using the exchange rate prevailing on the last date of the respective fiscal year. The basis of computing US dollars value of Birr shall be the selling exchange rate issued by the National Bank of Ethiopia. 45 2.1.2. Preparation of Bidding Documents (Con.)

45. Qualification Criteria 4. Experience 4.1 General Construction Experience Experience in construction contracts in the role of contractor, sub-contractor, or management contractor for at least the last 2 years for local bidders and 5 years for foreign bidders prior to the submission deadline. The general experience of a Bidder shall be considered after the signing of the company’s first contract. 46 2.1.2. Preparation of Bidding Documents (Con.)

46. Qualification Criteria 4. Experience 4.2 Specific Construction Experience Participation as contractor or management contractor or subcontractor, within the last 10 years : i ) For local bidders: A Minimum of 1 asphalt (DBST, TST or AC) road construction/upgrading/ rehabilitation project with a value of ETB …. [70% of the Engineer’s Estimate for the new work] , OR 47 2.1.2. Preparation of Bidding Documents (Con.)

47. Qualification Criteria 4. Experience 4.2 Specific Construction Experience (Con.) [If the Engineer's Estimate is more than ETB 1 Billion,] A Minimum of 2 asphalt (DBST, TST or AC) road construction/ upgrading/ rehabilitation projects each with a value of ETB …. [35% of the EE] , OR A Minimum of 3 asphalt (DBST, TST or AC) road construction/upgrading/ rehabilitation projects each with a value of ETB …. [23.33% of the EE] , In all cases within the last 10 years that has been successfully and substantially completed ( 70% Completed) 48 2.1.2. Preparation of Bidding Documents (Con.)

48. Qualification Criteria Experience 4.2 Specific Construction Experience (Con.) For Local Bidders, an experience in a road with one step lower in surfacing standard shall be considered as specific experience for Bidders. If the Engineer’s Estimate is less than ETB 400 Million, an experience in a road with two steps lower in surfacing standard shall be considered as specific experience for Bidders. 49 2.1.2. Preparation of Bidding Documents (Con.)

49. Qualification Criteria Experience 4.2 Specific Construction Experience (Con.) ii) For Foreign B idders A Minimum of 2 asphalt concrete (AC) road construction/ upgrading/ rehabilitation projects each with a value of ETB ….. [100% of the Engineer’s Estimate for the new work] within the last 10 years that has been successfully and substantially completed (80% completed). 50 2.1.2. Preparation of Bidding Documents (Con.)

50. Qualification Criteria Experience 4.2 Specific Construction Experience (Con.) The share of the Bidder as a JV partner for experiences gained as a JV partner or the portion of the work executed by the Bidder as a Sub-Contractor for experiences gained as a Sub-Contractor shall be considered for Specific Construction Experience. For the specific construction project experience requirement, the contract value of projects referenced by the bidder shall be adjusted to reflect the current purchasing power of Ethiopian Birr by multiplying with Cn/Co factor, where Cn is the current selling exchange rate of 1 US Dollar to Ethiopian Birr which is taken at the 28th days prior to bid submission date and Co is the selling exchange rate of 1 US Dollar to Ethiopian Birr at the date of signing the contract. 51 2.1.2. Preparation of Bidding Documents (Con.)

51. PREPARATION OF BIDDING DOCUMENTS; TECHNICAL SPECIFICATIONS

52. Schedule of Requirements (Technical Specifications) Specifications : the act of specifying, a detailed, exact statement of particulars, especially a statement prescribing materials, dimensions, and quality of work for something to be built, installed, or manufactured. It describes the Public Body’s requirement with resect to quality, performance, safety and where necessary dimensions, symbols, terminology, packaging, marking and labeling or the processes and methods of production and requirements relating to conformity assessment procedures. IT’S NOT ABOUT WHAT YOU WANT, BUT IT IS ABOUT WHAT YOU NEED 53 2.1.2. Preparation of Bidding Documents (Con.)

53. Schedule of Requirements (Technical Specifications) (Con.) Purposes Sufficiently specific to elicit responsive bids Enable participation by any qualified bidder, without technical prejudice Display technical criteria for evaluation of bids Specifications help Io avoid lengthy description in the Bill of Quantities They guide Bidders about a client’s intended quality requirements Formation of contractual obligations as to what exactly the clients need 54 2.1.2. Preparation of Bidding Documents (Con.)

54. Schedule of Requirements (Technical Specifications) (Con.) Purposes Help the supervisors and commissioning and testing team It guides to achieve the required total quality and performance of the end product It helps the Contractor/Supplier to workout the rates and prices for bidding the contract 55 2.1.2. Preparation of Bidding Documents (Con.)

55. Schedule of Requirements (Technical Specifications) (Con.) Purposes (Con.) It helps the Engineer/Client to monitor and control the quality of end product It provides a basis for quality assurance and quality management It provides a basis for establishment of the necessary laboratory for quality check It provides a basis for dialogue between the Contractor and the Engineer/Client to agree or disagree on quality of materials and works. It may also become a basis for disputes between the Contractor and the Client It is a basis for the Engineer to approve or reject materials or works 56 2.1.2. Preparation of Bidding Documents (Con.)

56. Schedule of Requirements (Technical Specifications) (Con.) Types of Specifications: Design Specifications Performance Specifications Combination Design/Performance Specifications Brand Name Specifications Qualified Products Lists Samples 57 2.1.2. Preparation of Bidding Documents (Con.)

57. Schedule of Requirements (Technical Specifications) (Con.) Types of Specifications (Con.): Design: The connotation here for the word “design” means that the specification is so detailed that it describes how the product is to be manufactured (buildings, highways etc.) Performance: As the name indicates, these specifications set out the performance requirements that a product is to meet. Using this concept, the end result is the priority consideration and, in contrast to the design approach, the manufacturer is given great latitude in how can accomplish it. This encourages ingenuity, innovation, and cost reduction. Combination: Specifications can, and often do, include both design and performance features. Characteristics of both are used as prerequisites and as limiting factors in developing the specifications 58 2.1.2. Preparation of Bidding Documents (Con.)

58. Schedule of Requirements (Technical Specifications) (Con.) Types of Specifications (Con.): Brand Name: Cite a brand name, a model number, or some other designation that identifies a specific product of a manufacturer as an example of the quality level desired. Items equaling or surpassing this quality level are understood to be acceptable. Although brand name specifications are not considered good specifications, they have a legitimate though limited place in public purchasing. Qualified Products List: This is to determine, in advance, those products which are acceptable. The evaluation of these bids is greatly simplified, and the price and the performance capability of the bidder becomes the determinants. Samples: Samples can also be of great value in assuring compliance and satisfaction after award, but before production. In this way, many problems can be solved before the units are manufactured and delivered. 59 2.1.2. Preparation of Bidding Documents (Con.)

59. Schedule of Requirements (Technical Specifications) (Con.) A specification should : allow for competition at manufacturing level identity those measurable physical, functional and quality characteristics common to at least two manufacturers complete in the stipulation of all requirements, either directly, or reference to other specifications, publications, or drawings 60 2.1.2. Preparation of Bidding Documents (Con.)

60. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications Specifications should not be too restrictive : A restrictive specification usually limits competition and eliminates items that can satisfactorily meet actual needs It is prohibited to indicate a particular trademark/name/ patent/design/type/specific original producer/service provider in specifications unless there is no sufficiently precise or intelligible way of describing the procurement requirement of the Public Body and provided that words such as “or equivalent ” are included in the specifications. 61 2.1.2. Preparation of Bidding Documents (Con.)

61. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications Specification writers should be careful not to use “in house” jargon and acronyms that may be misunderstood by bidders Specifications must be well written and communicative A well-written specification is precise in its descriptions and directions. It should be clear, simple language, free of vague terms of those subject to variation in interpretation. 62 2.1.2. Preparation of Bidding Documents (Con.)

62. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) Abbreviations should be restricted to those in common usage and not subject to possible misunderstanding. A good specification writer seeks the advice, assistance and cooperation of all intended users concerning their precise requirements regarding the standards of quality, type, size, etc. for any item(s). Always seek the assistance of individuals, who have specialized technical competence in the field for which you are developing the specifications. 63 2.1.2. Preparation of Bidding Documents (Con.)

63. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) Before writing the specification the requirements should be clearly worked out. Requirements are often classified as; “Mandatory” - essential requirements that suppliers must meet “Desirable” - requirements that whilst banging benefits are not essential “Information” - requirements that request information from the supplier typically for evaluation purposes 64 2.1.2. Preparation of Bidding Documents (Con.)

64. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) Specify what you need, not how to get what you need Look to increase competition, not reduce it Be as flexible as possible without compromising the objective Be clear Use of standard specifications reduces the chances of ambiguity and also makes easier for preparation of contract documents. 65 2.1.2. Preparation of Bidding Documents (Con.)

65. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) Reference to standards and codes e.g. IS, BS, NS, etc. reduce extra efforts in detailing the specification Language: Simple and clear, same tense Brief: as brief as possible. Standard articles of books specified by reference, no need of explanation Fairness: fair to all parties Clear requirement: Express requirement clearly 66 2.1.2. Preparation of Bidding Documents (Con.)

66. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) No repetition: Repetition of information should be avoided Unnecessary text: Inapplicable text should not be included Inclusions: Inclusion of proper paragraphs for specification of materials. Major Components, Installations. Tests and Commissioning, Alter sales service. Guarantee/Warranty. Standard Size: Commercial sizes should be specified as far as possible. 67 2.1.2. Preparation of Bidding Documents (Con.)

67. Schedule of Requirements (Technical Specifications) (Con.) Preparation of Specifications (Con.) Brand/Model: Any particular brand or model should not be specified as far as possible. If it is quoted, options and choice should be given Use of standard specifications reduces the chances of ambiguity and also makes easier for preparation of specification. It the standard specification does not cover the requirement, in such cases specific specifications has to be prepared. 68 2.1.2. Preparation of Bidding Documents (Con.)

68. Schedule of Requirements (Technical Specifications) (Con.) A good specification should be: Simple, consistent and exact, but not so specific that a loophole will allow a bidder to evade any of the provisions and thereby take advantage of his competitors or the buyer. Identified, when possible, with some brand specification already on the market. (Custom goods are expensive). Capable of being checked. It should describe the method of checking which will govern acceptance or rejection. A specification which cannot be checked is of little value and only confusion will result. 69 2.1.2. Preparation of Bidding Documents (Con.)

69. Schedule of Requirements (Technical Specifications) (Con.) A good specification should be (Con.): Reasonable in its tolerance. Unnecessary precision is expensive. As fair to the seller as possible. Capable of being met by several bidders for the sake of competition. Clear and Up-to-Date. Misunderstanding can be expensive. Flexible, inflexible specifications defeat progress. Invite vendors to suggest cost saving alternatives or substitutes. 70 2.1.2. Preparation of Bidding Documents (Con.)

70. Schedule of Requirements (Technical Specifications) (Con.) Key words The inappropriate use of key words in your specification could have disastrous results if the supplier is not sure what you are requiring and what you would like to have. Remember, suppliers, in order to be competitive, will almost always provide the least expensive product to you. If you say “may” rather than “will” in the text of your specification, it could mean one thing to one supplier and another to the end user. Use “shall” or “will” where ever a specification expresses a requirement. Use “may” to express non-mandatory provisions. 71 2.1.2. Preparation of Bidding Documents (Con.)

71. Schedule of Requirements (Technical Specifications) (Con.) Measurements Dimensions, gauges, capacities, size designations, volume or temperatures should be specified in accordance with established precedent and trade practice for the particular commodity or service you are attempting to purchase. Review the document after completed and: Make every effort to replace words with numbers. Whenever you go from words to numbers, communication relating to quantity or quality is enhanced: Tolerances should be specified where applicable. The use of “minimum” and “maximum” should be used wherever practical. 72 2.1.2. Preparation of Bidding Documents (Con.)

72. Schedule of Requirements (Technical Specifications) (Con.) The use of figures, illustrations, tables and graphs, etc. should be maximized. It describes the item(s) more clearly and accurately than you can in text. Tables show relationships more clearly than text. Figures and tables should have titles and parts clearly identified and should be numbered consecutively throughout the specifications. 73 2.1.2. Preparation of Bidding Documents (Con.)

73. Schedule of Requirements (Technical Specifications) (Con.) Specifications and Drawings Specifications and Drawings are the 2 integral parts of contract, which show the requirements (needs and expectations) of the Employer Specifications are referred more in cases of conflict and disputes whereas the drawings are dealt in day-to-day work execution Notes mentioned in the drawings are also treated as specifications and are effective 74 2.1.2. Preparation of Bidding Documents (Con.)

74. Schedule of Requirements (Technical Specifications) (Con.) WRITING HINTS Writing Style: Exposition is concerned primarily with the communication of ideas in a form that the reader can understand. It aims to save the readers time, eliminate confusion, and help the reader gain ideas quickly and easily. Active Voice is Preferred: Active voice is the most simple and direct way to make statements. Action is expressed directly, more vigorously, and makes the sentence more concise. Readers prefer the active voice because it is more direct, interesting and descriptive. 75 2.1.2. Preparation of Bidding Documents (Con.)

75. Schedule of Requirements (Technical Specifications) (Con.) WRITING HINTS (Doc.) Choosing the Right Word: You can make your meaning more clear by using shorter words. Shorter, more direct words get to the point, are clear-cut, and distinctive. For example: activate, expedite, initiate, nevertheless, prioritize and erroneous. Write Clearly using Shorter Phrases: Do not use long phrases when it is not necessary. For example: a great number of times (many), at regular intervals(every), make contact with(call). 76 2.1.2. Preparation of Bidding Documents (Con.)

76. Schedule of Requirements (Technical Specifications) (Con.) EVERY SPECIFICATION WRITER SHOULD ASK QUESTIONS OF THEMSELVES, SUCH AS: Who will receive the document? What do I want people to know or do? What should be my tone or approach? How detailed and exact should my information be? What can I assume about my audience’s knowledge of the subject? What might their questions be? 77 2.1.2. Preparation of Bidding Documents (Con.)

77. Schedule of Requirements (Technical Specifications) (Con.) 78 2.1.2. Preparation of Bidding Documents (Con.)

78. Common Mistakes in BD preparation Modifying the ITB and the GCC Considering issues which may contradict with the Public Procurement Proclamation and Directive Restricting specifications 79 2.1.2. Preparation of Bidding Documents (Con.)

79. Thank You !