User Guide

Procurement of
Smaller Works
National Competitive Bidding

Public Procurement Regulatory Authority

P.O. Box 49,
Dar es Salaam.

July, 2007

Table of Contents
Acronyms.............................................................................................................................................. iii
1.0 Guidance Notes on the use of the Standard Bidding Document and User Guide ........... 1
1.1 Purpose of the Standard Bidding Document. 1
1.2 Purpose of the User Guide 1
1.3 When to Use the Standard Bidding Document for Smaller Works for Lump Sum.. 2
1.4 Structure of the Standard Bidding Document 2
1.5 Availability of electronic Standard Bidding Documents.. 6
1.6 Customizing Standard Bidding Document 7
1.7 How to Draft an individual Bidding Document 7
1.8 Rules for drafting Bidding Documents... 8
2.0 Summary of the Bidding Process ........................................................................................... 11
2.1 Legal Framework............................................................................ 11
2.2 Selection of Method of Procurement 11
2.3 Preparation and Issue of Bidding Documents. 12
2.4 Bidding Period and Bid Receipt. 12
2.5 Bid Opening.. 13
2.6 Bid Evaluation.. 13
2.7 Bid Acceptance, Contract Award and Contract Coming into Force. 14
3.0 Guidance Notes for the preparation of Invitation for Bids ................................................ 16
4.0 Guidance Notes on Instructions to Bidders.. 20
5.0 Guidance Notes on Bid Data Sheet ........................................................................................21
6.0 Guidance Notes on General Conditions of Contract........................................................... 28
7.0 Guidance Notes on Special Conditions of Contract ............................................................ 29
8.0 Guidance Notes on Specifications.......................................................................................... 35
9.0 Guidance Notes on the Drawings .......................................................................................... 37
10.0 Guidance Notes on Bills of Quantities................................................................................... 38
11.0 Guidance Notes on the Preparation of Forms - Bid............................................................ 40
11.1 Form of Bid and Appendix to Bid ......................................................................................... 41
11.2 Form of Qualification Information........................................................................................ 47
11.3 Standard Form of Letter of Acceptance................................................................................ 52
11.4 Standard Form of Agreement ................................................................................................ 55
11.5 Guidance Notes on the Preparation of Securities ............................................................... 56
12.0 Undertaking by Bidder on Anti-Bribery Policy/Code of Conduct and
Compliance Programme ........................................................................................................ 63

ii

Acronyms
Act

Public Procurement Act 2004

BOQ

Bill of Quantities

DRG

Drawings

GCC

General Conditions of Contract

ITB

Instructions to Bidders

PE

Procuring Entity

PMU

Procurement Management Unit

PPAA

Public Procurement Appeal Authority

PPRA

Public Procurement and Regulatory Authority

Regulations

Public Procurement Regulations

SCC

Special Conditions of Contract

SPECS

Specifications

SBD

Standard Bidding Document

TD

Bidding Document

BDS

Bid Data Sheet

iii

1.0 Guidance Notes on the use of the Standard Bidding Document

and User Guide
1.1 Purpose of the Standard Bidding Document
The purpose of the SBD is to provide Procuring Entities with one common
standard draft containing basic contractual provisions and safeguards which are
required by the Government of Tanzania in the execution of public procurement
and the use of public funds.
The Standard Bidding Document for the Procurement of Smaller Works has been
designed to:
(i)

simplify the drafting of a specific Bidding document for Procurement of

Smaller Works by Procurement Management Units;
(ii) minimize the time required by the Tender Boards to approve Bidding
Documents prior to release.
(iii) reduce Bidders time and effort in the preparation of Bids; and
(iv) facilitate and simplify the evaluation and comparison of Bids and
Contract award; by the Procuring Entity.
The key feature of the SBD is that it can be used with minimum changes, as it
does not contain explanations, footnotes or examples that should not form part of
the Bidding Document. The SBDs contain completion notes only for Bidders;
these are primarily in the Bidding Forms. This User Guide contains all the
explanations and notes necessary for PEs to use the SBDs.

1.2 Purpose of the User Guide

This User Guide has been prepared to provide guidance to public officials in the
correct use of the Standard Bidding Document (SBD) for Smaller Works as a
model for preparing an individual Bidding Document.
Users should ensure that the correct User Guide is referred to. Different User
Guides have been produced for each SBD including those for the Procurement of
goods and works. Users should refer to the header and footer of each page of the
User Guide to ascertain this.
The User Guide is not legally binding but Procuring Entities must comply at all
times with the Public Procurement Act and Regulations.
Guidance notes intended for Bides (or Financial Institutions) are included in the
SBD itself mainly in Section VIII. All such notes are found between square
brackets in italics e.g. [insert name of ..]. These guidance notes should not be
deleted from the Bidding Document when drafting.
This User Guide contains guidance notes for Procuring Entities in the use of the
SBD and how to complete and issue the SBDs. Such notes are shown between
square brackets in italic; e.g. [insert general description of Services]. Where
1

recommended or suggested wording or text is provided this is shown between

inverted commas e.g. Documentation requirements are:
The User Guide is not intended for issue with the Bidding Document and is not
part of the Bidding Document.

1.3 When to Use the Standard Bidding Document for Smaller

Works for Lump Sum
1.3.1 Procurement Method
This SBD for the Procurement of Smaller Works is suitable for use under Open or
National Bidding method of procurement with or without pre-qualification. It is
also suitable for the Restricted National Bidding methods of procurement.
The SBD may also be used for procurement under the Direct Procurement
method with appropriate modifications to the documents.

1.3.2 Scope and Type of Contract

The SBD is suitable for any scope of intended contract where the services are predefined and the period of the Services are fixed enabling a total lump sum
amount to be calculated representing the total amount payable under the
Contract. This document is the only SBD for Smaller Works, as time based
contracts would not normally be appropriate for Smaller Works.

1.4 Structure of the Standard Bidding Document

The SBD is divided into ten separate Sections and a Preface. Procuring Entities
are required to use all Sections of the Standard Bidding Document to produce an
individual Bidding Document for issue to Bidders. The Standard Bidding
Document comprises:
a)

Section I: Invitation for Bids

This section provides relevant information that enables potential Bidders to
decide whether or not to participate in the Bid process. The Invitation for
Bids should also include, specific details such as the name of the Procuring
Entity and address for Bid submission, scope of service to be provided,
deadline for Bid submission. Likewise information on how the Bidding
documents are to be obtained by prospective Bidders and the minimum
level of experience required by Bidders to be eligible should be furnished in
the Invitation for Bids. The final document should contain neither blank
spaces nor options.

b)

Section II: Instruction to Bidders

This section provides relevant information to help Bidders prepare
responsive Bids in accordance with the requirements of the Procuring
Entity. It also provides information on the submission, opening and
evaluation of Bids, the award of contracts and on submitting complaints
regarding the Bid process. This section contains provisions that are to be
used without modification. The Instructions to Bidders will not be part of
the Contract and will cease to have effect once the Contract is signed.

c)

Section III: Bid Data Sheet

This section consists of provisions that are specific to each procurement and
that supplement the information or requirements included in section II
Instructions to Bidders. Amendments, if any, to the Instructions to Bidders
should be made through the Bid Data Sheet (BDS). If duplication of a subject
is inevitable in the different sections of the document, care must be exercised
to avoid contradiction between clauses dealing with the same matter.

d)

Section IV: General Conditions of Contract

This section contains the general clauses to be applied to all contracts. The
General Conditions of Contract form a complete document expressing all
the rights and obligations of the parties during the execution of the contract.
The text of the clauses in this section shall not be modified.

e)

Section V: Special Conditions of Contract

This section contains clauses specific to each contract that modify or
supplement Section IV General Conditions of Contract. Amendments, if
any, to the General Conditions of Contract, should be made through the
Special Conditions of Contract. The Special Conditions of Contract should
be filled out by the Procuring Entity prior to issuance of the Bidding
documents.

f)

Section VI: Specifications

This section should be completed with details of the requirement by the
Procuring Entity. The specifications must be provided by the Procuring
Entity prior to the issuance of the bidding documents.

g)

Section VII: Drawings

This section contains the list of drawings that describe the works and related
services to be provided. The drawings should be prepared and furnished by
the Procuring Entity prior to the issuance of the bidding documents.

h)

Section VIII: Bill of Quantities (BoQs)

This section contains the description of the various elements of the works in
the form o f Bill of Quantities. The Bill of Quantities should be prepared and
be furnished by the Procuring Entity prior to the issuance of the bidding
documents.

i)

Section VIII: Bid Forms

This section provides the Form of Bid and Appendix to Bid which must be
filled out by each Bidder and Qualification Information which must be
provided by each Bidder. In addition this section contains a Standard Form
of Letter of Acceptance which will be issued by the Employer to the
successful Bidder and a Standard Form of Contract which will be signed by
the Employer and the successful Bidder at a later stage.

j)

Section IX: Security Forms

This section contains the security forms for the Bid security, Bid securing
declaration, performance security, and advance payment security. The Bid
security or Bid securing declaration, where required, must be furnished by
each Bidder while the performance security and advance payment security,
where required, should be furnished by the successful Bidder only.

k)

Section X. Undertaking by Bidder on Anti - Bribery Policy / Code of

Conduct and Compliance Program.
This section contains the undertaking to be made by each Bidder on antibribery policy/code of conduct and compliance program. Each Bidder must
submit, together with its Bid a statement as provided for under this section.
Bids which do not conform to the requirements under this section shall not
be considered. The text of this section shall not be modified.

Care should be taken to check the relevance of the provisions of the SBD against
the requirements of the specific services to be procured. The following general
directions should be observed when using the documents. In addition, each
section is prepared with notes intended only as information for the Procuring
Entity or the person drafting the Bidding documents. They shall not be included
in the final documents, except for the notes introducing Section VIII, Forms,
where the information is useful for the Bidder.
(i)

Specific details, such as the name of the Procuring Entity and address
for Bid submission, should be furnished in the Invitation for Bids, in the
Bid Data Sheet, and in the Special Conditions of Contract. The final
documents should contain neither blank spaces nor options.

ii)

Amendments, if any, to the Instructions to Bidders and to the General

Conditions of Contract should be made through the Bid Data Sheet and
the Special Conditions of Contract, respectively.

iii)

Footnotes or notes in italics included in the Invitation for Bids, Bid Data
Sheet, Special Conditions of Contract, and in the Schedule of Requirements
are not part of the text of the document, although they contain instructions
that the Procuring Entity should strictly follow. The final documents
should contain no footnotes.

iv)

The criteria for Bid evaluation and the various methods of evaluation in
the Instructions to Bidders should be carefully reviewed. Only those that
are selected to be used for the procurement in question should be retained
and expanded, as required, in the Bid Data Sheet or in the Technical
Specifications, as appropriate. The criteria that are not applicable should
be deleted from the Bid Data Sheet.

v)

Clauses included in the Special Conditions of Contract are illustrative of

the provisions that should be drafted specifically by the Procuring Entity
for each procurement.

vi)

The forms provided in Section VIII should be completed by the Bidders or

the Supplier; the footnotes in these forms should remain, since they
contain instructions which the Bidder or the Supplier should follow.

The Public Procurement Regulatory Authority welcomes any feedback or

experience from the use of this Bidding documents from Bidders and others as
well.

1.5 Availability of electronic Standard Bidding Documents

1.5.1 General
All Standard Bidding Document are issued electronically by the PPRA on CD ROM.
The CD ROM contains the following main directories:

Goods with the following sub-directory

Goods
Healthy Sector Goods
Frame works Contracts

Supply and installation of Plant and Equipment

Works with the following sub-directory

Smaller Works
Medium and Larger Works

Non Consultant Services

Consultant Services

The Smaller Works sub-directory contains the following Microsoft Word document
files:

SWK-IFT.doc

SWK -ITB.doc

SWK -BDS.doc

SWK -GCC.doc

SWK -SCC.doc

SWK -SPECS.doc

SWK -DRG.doc

SWK -BOQ.doc

SWK -FORMS.doc

FORMS BID.doc

FORMS SECURITY.doc

SWK -INTEGRITY.doc

Each file corresponds to the section of the SBD removing the difficulties of drafting
long documents. Collation of the Sections is accomplished by reading the Preface (5
pages) and manually inserting the relevant Sections into each Part of the Preface
pages.

This User Guide is also contained in this Directory but is not intended for issue to
Bidders as part of the Standard Bidding Document.

1.6 Customizing Standard Bidding Document

The PPRA issues Standard Bidding Document to all Procuring Entities. On receipt
of these SBDs, the PE is permitted to customise the SBDs for use by its PMU. The
areas that require customisation by the PE are shown in curly brackets e.g. {Insert
name and logo of Procuring Entity}. This customisation should be a one off function
to enter on the master SBD the following details prior to general issue and use
within the PE;
- the entry of the Procuring Entitys contact details (e.g name, address,
telephone and fax numbers, email address etc) that will not change;
- the addition of any official logo or any other form of identification of the PE.
When customising documents, a PE shall not alter or amend the content or
substance of the standard documentation, including the style and format of the
documents, without the prior written approval of the Authority.
The customised standard documents shall be approved by the Tender Board for use
by the Procuring Entity. The customised standard documents should be available
from the Procurement Management Unit.
The customised standard documents shall be used for drafting documents for
individual procurement requirements.
The users of the SBDs should understand that:
Drafting

means the process of modifying customised standard

documentation to make it suitable for a particular
procurement or disposal requirement.

Customisation means the process of completing identification details in the

standard documentation issued by the Authority to make it
suitable for drafting by the procuring entity;

1.7 How to Draft an individual Bidding Document

Procuring Entities are advised always to use the original customized Standard
Bidding Document to commence drafting a new Bidding Document for each new
procurement requirement. Once customized, the original SBD should not be
amended in any way.
When drafting an individual Bidding Document, the first task therefore is to
electronically copy the contents of the SBD directory into a new electronic directory.
It is recommended that the new directory is given a name including the unique
number from the procurement reference number as shown in the procurement plan
and a relevant description e.g. P0012006/07 Construction of Works. This new
directory will be the working directory for the individual Bidding Document and its
7

files can be amended to suit the individual requirement. The User Guide does not
need to be copied to the new directory, as it does not form part of the Bidding
Document.
An example of the directory structure is shown below:
P0012006/07 Construction of Works.

SWK- COVER PAGE AND PREFACE.doc

SWK -IFT.doc

SWK -ITB.doc

SWK -BDS.doc

SWK -GCC.doc

SWK -SCC.doc

SWK-SPECS.doc

SWK -DWG.doc

SWK -BOQ.doc

SWK -FORMS.doc

FORMS BID.doc
FORMS SECURITY.doc

SWK -INTEGRITY.doc

P0012006/07 Construction of Works

Comprising files SWK COVER PAGE AND PREFACE.doc
to SWK -INTEGRITY.doc
Once the original SBD has been copied to become the individual Bidding Document,
the relevant sections can be amended in accordance with the rules below and the
guidance notes on each section contained in this User Guide.

1.8 Rules for drafting Bidding Documents

The SBDs have been designed to require the minimum of input or changes to the
document so that a final Bidding Document can be produced with minimum time and
effort.
Most importantly the provisions in
Section II

Instructions to Bidders and

Section IV

General Conditions of Contract

must be used with their text unchanged.

Any data or information that Sections II or IV require are to be included respectively

in
Section III

Bid Data Sheet and

Section V

Special Conditions of Contract.

Data and information contained in the remaining Sections should be modified as

follows:
Section VI

Specifications:
This Section should be completed with details of the requirement
by the Procuring Entity. The specifications must be provided by the
Procuring Entity prior to the issuance of the Bidding documents.

Section VII Drawings:

This section contains the list of drawings that describe the works
and related services to be provided. The drawings should be
prepared and furnished by the Procuring Entity prior to the
issuance of the Bidding documents.
Section VIII BOQ:
This section contains the description of the various elements of the
works in the form of Bill of Quantities. The Bill of Quantities
should be prepared and be furnished by the Procuring Entity
prior to the issuance of the Bidding documents.
Section IX

Forms of Bid: The Form of Bid, Appendix to Bid and the

Form of Qualification Information in this Section should be
completed by the Bidder. No changes to these standard forms
should be made by the PE.
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 appropriate approving
authorities.
Form of Agreement should be included in the Bidding
Document, but details need not be completed until after the
contract award stage, when it will be signed by the Employer and
the successful Bidder.

Section X

Security Forms: The Bid Security or Bid Securing

Declaration, where required, must be furnished by each Bidder.
Performance Security and Advance Payment Guarantee,
where required, should be furnished by the successful Bidder
only.

Section XI

Undertaking by Bidder on Anti - Bribery Policy / Code of

Conduct and Compliance Program: This Section should be
completed, signed and submitted together with the Bid by each
Bidder without modifying the text.

This User Guide contains a section corresponding to each section of the SBD. It also
includes an initial section on how to prepare the Bid Notice or Invitation for Bids
letter.
In drafting Bidding Documents using the SBDs, Users should not:
a)

delete any Section or page breaks,

b)

make any changes to the headers of the SBD, or

c)

make any changes to the footers of the SBD.

In order to avoid deleting any section or page breaks, you should ensure that the
Show All command is switched on, so that the section and page breaks can be seen
on screen. The Show All command is shown by an icon with the following symbol:
.
If this icon does not appear on your screen, you can add it by using the following
commands: click on Tools menu, click on Customize, select the Commands tab, select
the View category and scroll to find the Show All command. Add the icon by
dragging it onto your toolbar.

10

2.0 Summary of the Bidding Process

The Act and Regulations detail the full procurement processes, rules and
procedures and the procurement methods to be followed by Procuring Entities. The
Act and Regulations must be complied with at all times.
The relevant parts of the Bidding process are summarized here as follows:
a)

Selection of Method of Procurement

b)

Preparation and Issue of Bidding Documents;

c)

Bidding Period and Bid Receipt;

d)

Bid Opening;

e)

Bid Evaluation; and

f)

Bid Acceptance, Contract Award.

2.2 Selection of Method of Procurement

The method for selection of Bidders will depend on the procurement method being
used and whether or not a pre-qualification has been conducted.
Where Open (National or International) Bidding without pre-qualification is
used, the PE must publish a Bid Notice, so that Bidding is open to all interested
Bidders. This must use the standard format provided in the Regulations. Guidance
notes on completing the Bid Notice are included later in this User Guide. The Bid
Notice must be approved by the Tender Board before publication.
The notice must be published in at least one widely read national newspaper or a
publication of wide international circulation, depending on whether Bidding is
national or international. It must also be displayed on the Authoritys website and
on the PEs own notice board.
PEs must comply with the minimum advertising period given in the Regulations
before the issue of bidding documents. They should also ensure that Bidding
documents are finalised and approved before publishing the Bid Notice, to avoid
any delays in the process.
Where Open National Bidding with pre-qualification is used, the Bidders invited
will be those selected during the pre-qualification process. There is therefore no
need to publish a Bid Notice, but the Bidding document should be accompanied by
an invitation to Bid letter. A sample letter and guidance notes on completing it are
included later in this User Guide. The letter should be approved by the Tender
Board, at the same time as the Bidding document.
Where Restricted National Bidding is used, the Bidders invited will be those
included on the shortlist. There is therefore no need to publish a Bid Notice, but the
Bidding document should be accompanied by an invitation to Bid letter. A sample
letter and guidance notes on completing it are included later in this User Guide. The

11

letter should be approved by the Tender Board, at the same time as the Bidding
document.
The shortlist must be developed in accordance with the Regulations and include
sufficient Bidders to ensure effective competition. The shortlist must be approved
by the Tender Board before issue of the Bidding documents.

2.3 Preparation and Issue of Bidding Documents

The Procurement Management Unit is responsible for the preparation and issue of
the Bidding Document.
The Procuring Entity must use the appropriate SBD issued by the PPRA, as this is a
mandatory requirement for contracts to be funded by the Government of Tanzania.
In deciding the deadline for Bid submission the Procuring Entity shall allow Bidders
sufficient time for obtaining and studying the Bidding Document, preparing
complete and responsive Bids and submitting the Bids. Procuring and Disposing
Entities are required to comply with the minimum Bidding periods given in the
Regulations.
Where a Bid Notice has been published, the PE must issue Bidding Documents
promptly to all Bidders who request them and pay any required fees. A record must
be kept of the Bidders to whom Bidding Documents have been issued. Receipts
must be issued for all fees paid.
Where the Bidding Document is issued to pre-qualified or short-listed Bidders, the
documents must be issued to all Bidders at the same time and must be issued early
enough to ensure compliance with the minimum Bidding period given in the
Regulations. A record must be kept of the issue of all Bidding documents.

2.4 Bidding Period and Bid Receipt

The Bidder is responsible for Bid preparation and the submission of its Bid. During
the Bidding period, the Procuring Entity shall:
a)

Hold any pre Bid meeting and issue minutes promptly;

b)

Promptly respond to requests for clarifications from Bidders;

c)

Amend the Bidding Documents if necessary (only with the Tender

Boards prior approval);

d)

Receive and record sealed Bids from Bidders or make a Bid Box
available up to the deadline for Bid submission as required by the
Regulations;

e)

Close Bidding at the precise date and time of the deadline and ensure
that no late Bids are received;

f)

Keep all Bids received secure until the time for Bid opening.

12

2.5 Bid Opening

The Procuring Entity is responsible for the Bid Opening, which is a critical event in
the Bidding process. The Secretary of the Tender Board (accompanied by a Tender
Board member to witness proceedings) will conduct the Bid Opening. Procuring
Entity staff must be aware that inappropriate procedures at Bid Opening are usually
irreversible and may require cancellation of the Bidding Process, with the
consequent delays and waste of time and resources. The Bid Opening must follow
the rules and procedures given in the Regulations and the SBD.
2.5.1 Best Bid-Opening Practices to Observe
The Procuring Entity, in observance of the Regulations and best practices, shall:

Conduct the Bid Opening strictly following the procedures specified in the
ITB Clause 25 for all Bids received on or prior to the date and time of the Bid
submission deadline. The term Bid Opening can be misleading because a
Bid for which a Bid Withdrawal or Substitution notice was received on time
shall not be opened, but returned unopened to the Bidder. The sequence in
which Bids are handled and opened is crucial.

Ensure that all Bids that were received on time are accounted for, before
starting the Bid Opening, as Bids that are not opened and read out at Bid
Opening shall not be further considered.

Not reject any Bid at Bid Opening, except for late Bids received after the
date and time of Bid submission deadline. Technically, late Bids should not
reach the Bid Opening, but in certain cases a Bidder may attempt to submit
its Bid at the Bid Opening place after the deadline.

In accordance with the provisions of ITB Clause 25, The Procuring Entity
shall verify at the Bid Opening the existence of the documentation
confirming the validity of a Bid withdrawal or Bid modification or
substitution. A withdrawn Bid shall not be opened and in consequence not
read out and, therefore, they shall not be further considered by the
Procuring Entity. Similarly, a Bid replacement shall be opened and read out
to replace a Bid that was received on time. This also applies to the financial
Bid opening.

2.6 Bid Evaluation

The Evaluation Committee is responsible for the evaluation of all Bids received. In
appointing an Evaluation Committee, the Procuring Entity must remember that
mistakes committed at Bid evaluation may later prompt complaints from Bidders,
requiring re-evaluation of the Bids, with the consequent delays and waste of time
and resources.
The Procuring Entity, in observance of the Regulations and best practices, shall:

13

Maintain the Bid evaluation process strictly confidential;

Reject any attempts or pressures to distort the outcome of the evaluation,

including fraud and corruption;

Strictly apply only and all of the evaluation and qualification criteria
specified in the Bidding Documents to determine the Lowest Evaluated
Bidder and to make a recommendation for award of contract to the Tender
Board. (The Evaluation Report may recommend also that negotiations be
held with the recommended Bidder).

Conduct any negotiations recommended in the Evaluation Report.

Upon completion of the Bid Evaluation, and any negotiations, the Tender Board
shall be requested to make a Contract Award decision. It is important to note that a
Contract Award decision is not a contract, but a decision to award a contract to the
Lowest Evaluated Bidder.

2.7 Bid Acceptance, Contract Award and Contract Coming into Force
Bid acceptance, award and contract coming into force (placement) can be confusing
for both parties if there is not a precise and specified procedure for award of
contracts. The procedure specified in the Regulations provides a sequence of events
based on the need to recognize Bidders rights to appeal against the conduct of the
evaluation and the need for a contract to be in force as soon as is practical after a
decision to award has been approved. The following procedure is required under
the Regulations:

The Tender Board approves an Evaluation Report (and the result of any
negotiations) and in doing so makes a contract award decision.

The Procuring Entity will notify of the award to the Bidder whose Bid has
been accepted in accordance with the ITB Clause 39 and the notice of
acceptance of the Bid shall be given by the Procuring Entity promptly to the
Supplier, Contractor or Consultant who submitted the Bid, offer or
proposal.

A contract may come into force by:

(i) issuing a Letter of Acceptance followed (and confirmed by a Contract
Document), or
(ii) issuing a Contract Document without a Letter of Acceptance having
been issued first.

Contract formation occurs either at the issue of a Letter of Bid Acceptance described
in sub paragraph (i) above, or the issue of a Contract Document described in sub
paragraph (ii) above.
Procuring Entities should note that the Letter of Acceptance or the Contract
Document should not contain any provisions or conditions which vary from those
in the Bidding Document, or the Bidders Bid, or any subsequent clarifications or

14

negotiations. Any such modifications should be agreed by the Bidder in writing

before a contract award decision is made.
Procuring Entities should note that there is no provision for a Letter of Intent to
Place a Contract as there is much legal ambiguity surrounding the use of such
documents.
The Contract Document includes the Form of Agreement contained in Section VIII
of the Bidding Document and it is at the stage of contract award that the Agreement
form can be completed with details of the successful Bidder.

15

3.0 Guidance Notes for the preparation of Invitation for Bids

The Invitation for Bids (see Regulation 80 of the Public Procurement (Goods, Works,
Non-Consultant Services and Disposal of Public Assets by Tender) Regulations,
2005 - Government Notice No. 97 of 15th April, 2005) shall be issued as:(a)

an advertisement at least twice in one or more newspapers of national

wide circulation1

(b)

a letter addressed to interested contractors

who, following the
publication of the General Procurement Notice, have expressed interest in
Bidding for the Works.

Its purpose is to supply information to enable potential Bidders to decide on their

participation. Apart from the essential items listed in the sample documents, the
Invitation for Bids should also indicate any important or unusual Bid evaluation
criteria (for example, the application of a margin of preference or exclusive
preference in Bid evaluation).
If pre-qualification is used, the above notifications advertise a Request for Prequalification. After the pre-qualification process, only the pre-qualified applicants
will receive the Invitation for Bids.
The Invitation for Bids may be incorporated in the Bidding documents merely for
the record, or it may be omitted. In either event, the information contained in the
Invitation for Bids should conform to the Bidding documents, and in particular, to
the relevant information in the Bid Data Sheet and Special Conditions of Contract.

16

[Insert Name of Procuring Entity]

[Insert logo]
Bid No. .
for
[Insert title or brief description of the works]
Invitation for Bids
Date: .
1. This Invitation for Bids follows the General Procurement Notice for this

Project which appeared in [insert media] Issue no.[insert the issue No] dated
[insert dates of issue of GPN]1.
2. The Government of Tanzania has set aside funds for the operation of the

[insert the name procuring entity] during the financial year (insert the year under
financing). It is intended that part of the proceeds of the fund will be used to
cover eligible payment under the contract for the [insert the name of the
contract]
or
The [insert name of Procuring Entity] has received/has applied for/intends to
apply for a [loan/credit /grant] from the [name of financing institution] towards
the cost of [insert name of project], and it intends to apply part of the proceeds
of this [loan/credit/grant] to cover eligible payments under the contract for
[insert name. of the contract]2.
3. The [Insert the name of the procuring entity] now invites sealed Bids from

eligible[insert National if exclusive preference is applicable) contractors

registered in (Insert Classes of the contractor) for construction of [insert brief
description of the works to be procured]3
1

Day, month, year; for example, 30th July 2005. This should be skipped where no GPN was issued.
[Insert if applicable]. Occasionally, Contracts may be financed out of special funds that would further restrict
eligibility to a particular group of member countries. When this is the case, it should be mentioned in this
paragraph. Also indicate any margin of preference that may be granted as specified in the Loan or Credit
Contract and set forth in the Bidding documents.
3 A brief description of the type(s) of works should be provided, including quantities, location of project, and
other information necessary to enable potential Bidders to decide whether or not to respond to the
invitation. Bidding documents may require Bidders to have specific experience or capabilities; such
restrictions should also be included in this paragraph.
2

17

4. Bidding will be conducted through the [insert method of procurement]4

procedures specified in the Public Procurement (Goods, Works, Non

Consultant Service and Disposal of Public Assets by Tender) Regulations,
2005 Government Notice No. 97 and is open to national Bidders only as
defined in the Regulations5 unless otherwise stated in the Bid Data Sheet.
5. Interested eligible Bidders may obtain further information from and inspect

the Bidding Documents at the office of the [Insert the Physical, and postal
address of the Tender Board Secretary of the procuring entity] from [start and end
of working hours] on Mondays to Fridays inclusive except on public holidays.
6. A complete set of Bidding Document(s) in [insert language of the Bid document]

and additional sets may be purchased by interested Bidders on the

submission of a written application to the address given under paragraph 5
above and upon payment of a non-refundable fee6 of [insert the currency and
amount]. Payment should either be by Cash, Bankers Draft, or Bankers
Cheque, payable to [state organ to which payments are to be made].
7. All Bids must be accompanied by a Bid security7 [if Bid security is required] in

an acceptable form in the amount of [insert the amount in local currency] or

freely convertible currencies in case of foreign Bidders.
or
All Bids must be accompanied by a Bid securing declaration8 in the format
provided in the Bidding documents.
8. All Bids in one original plus [Insert the number of copies required9], properly

filled in, and enclosed in plain envelopes must be delivered to the address
below [state address at the end of document] at or before [insert time and date].
Bids will be opened promptly thereafter in public and in the presence of
Bidders representatives who choose to attend in the opening at the [insert the
physical address of the place for Bid opening]10.
Method should be National Competitive Bidding unless justified otherwise.
Works of value below 1,000,000,000/= Tshs are reserved for national Bidders as per Schedule for of the
Regulations;
6 The fee, to defray printing and mailing/shipping costs, should be nominal;
7 The amount of Bid security should be stated as a fixed amount or as a percentage between 1 and 3 of the Bid
price. It is recommended using fixed amount in place of a percentage.
4
5

Bid Securing Declaration shall apply only where Section 50 of PPA 2004 is applicable, that is exclusive
preference to local firms and persons.
The limits for application of bid securing declaration shall be the thresholds for project values below which
exclusive preference will be applied as the Fourth Schedule (c) of GN97.
9

Number of copies should range from 3 5.

The office for Bid opening may not necessarily be the same as that for inspection or issuance of documents or
for Bid submission. If they differ, each address must appear at the end of paragraph 7 and be numbered; as,
for example, (1), (2), (3). The text in the paragraph would then refer to address (1), (2), etc. Only one office and

10

18

9. Late Bids, portion of Bids, electronic Bids, Bids not received, Bids not opened

and not read out in public at the Bid opening ceremony shall not be accepted
for evaluation irrespective of the circumstance.
SECRETARY
[Insert the Tender Board of the procuring entity]

its address may be specified for submission of Bids, and this location should be as close as possible to the
place where Bids will be opened to shorten the time between Bid submission and Bid opening.

19

4.0

Guidance Notes on the Instructions to Bidders (ITB)

This section of the Bidding documents should provide the information necessary
for Bidders to prepare responsive Bids, in accordance with the requirements of the
procuring entity. It should also give information on Bid submission, opening and
evaluation, the award of Contract and how to handle complaints from bidders.
Matters governing the performance of the Bidder, payments under the Contract, or
matters affecting the risks, rights, and obligations of the parties under the Contract
should not be included in this Section, but rather under Section IV, General
Conditions of Contract, and /or Section V, Special Conditions of Contract. If
duplication of a subject is inevitable in the different sections of the documents, care
must be exercised to avoid contradiction between clauses dealing with the same
matter.

These Instructions to Bidders will not be part of the Contract and will cease to have
effect once the Contract is signed.

20

5.0 Guidance Notes on Bid Data Sheet

This section is intended to assist the Procuring Entity in providing the specific
information in relation to corresponding clauses in the Instructions to Bidders
included in Section II, and has to be prepared for each specific procurement.
The Procuring Entity should specify in the Bid Data Sheet information and
requirements specific to the circumstances of the Procuring Entity, the processing of
the procurement, the applicable rules regarding Bid price and currency, and the Bid
evaluation criteria that will apply to the Bids. In preparing Section III, the following
aspects should be checked:
(a) Information that specifies and complements provisions of Section II must be
incorporated.
(b) Amendments and/or supplements, if any, to provisions of Section II as
necessitated by the circumstances of the specific procurement, must also be
incorporated.

21

Input of Information to be completed by Procuring Entity in the

5.1

Section III: Bid Data Sheet (BDS)

BDS
ITB
Clause Clause
Number Number

Amendments of, and Supplements to, Clauses in the

Instruction to Bidders
A. Introduction

1.

1.1

The Procuring Entity is [insert the

name of the procuring entity]

2.

1.1

Name of Project is
...
[insert name and summary description of the Project]

3.

1.2

The expected completion date of the works is

. [insert the expected completion date
for the works].

4.

2.1

Name of financing institution is

.. [insert name if any]
Name of the Procuring is
Financial Year (Insert FY ).
Describe works under the contracts.

5.

2.2

The loan/ credit number is .

[insert number if available].

22

6.

3.1

Only Bidders registered as

[insert whether Civil Engineering or Building Contractors] in
Class [insert relevant class of registration] with the
Contractors Registration Board are eligible.
This Bid is: .
[indicate whether exclusively reserved for national contractors or
not] 11.

7.

6.3

Pre-Bid meeting will take place at .

[insert venue] on .. [insert date and time]
Or
Pre-Bid meeting shall not be held.
[Delete whichever is applicable]

8.

6.6

The minutes of the pre-Bid meeting will be transmitted within

[state the time]
B. Bidding Documents

9.

7.2

The number of copies to be completed and returned with the

Bid is [insert number of copies - minimum
number of copies should be three and maximum should be five].

10.

8.1

Address for clarification of Bidding Document is [insert full

address]

11.

8.2

Period to respond to request for clarification by the Procuring

Entity [insert number of days]
Period prior to deadline for submission of Bids for bidders to
request clarification [insert number of days]
C. Preparation of Bids

12.

10.1

Language of Bid and all correspondence shall be [Insert language]

13.

12.3

Other information or materials required to be completed and

submitted by Bidders :
a) Copies of original documents defining the constitution or
legal status, place of registration, and principal, place of

11

As per regulations, exclusive reservation applies for projects of not more that 1,000,000,000/=. This is subject
to revision by the Minister of Finance. However, if there are no national contractors who can undertake the
works then exclusive preference shall be waived.

23

business; written power of attorney authorizing the

signatory of the Bid to commit the Bidder.
a) The minimum required annual volume of construction work
for the successful Bidder in any of the last 2 years12 shall be:

[Insert figure in the currency specified in].

b)

Experience as prime contractor in the construction of at least

one project of a nature and complexity equivalent to the
Works the last 2 years or the period stated in a) above (to
comply with this requirement, works cited should be at least
70 percent complete)13.

c)

The essential equipment to be made available for the

Contract by the successful Bidder (proposals for timely
acquisition or own, lease, hire, etc) shall be:
i)

...(insert).

ii)

...(insert).

iii)

...(insert).

iv)

...(insert).

d) A Site Manager with years experience in works of an

equivalent nature and volume. [insert number of years].

12
13

14

e)

Evidence of adequate working capital for this contract.

f)

Information regarding litigation, current

.................................................................................................

14.

12.4

In the case of joint venture each partner shall submit information

required under Clause ITB Clause 12.4. In addition the Bidder
shall furnish the following ,
a)
b) .
c) ...

15.

15.4

The price shall be [ insert fixed or adjustable]14

16.

16.1

The currency in which the prices shall be quoted shall be [insert

This requirement may be waived for small projects of routine nature.

This requirement may also be waived for small projects of routine nature.

Price adjustment is recommended for contracts which provide for time for completion exceeding
18 months.

24

currency(s)]
17.

16.2

The authority for establishing the rates of exchange shall be Bank

of Tanzania.

18.

17.1

The Bid validity period shall be .. days.

19.

18.1

The amount of Bid Security shall be (. % of the Bid amount or

TShs .
Or a Bid Securing Declaration

20.
21.

19.1
19.2

Alternative Bids are [insert allowed or not allowed] in this Bid.

Alternative time for completion [indicate if
applicable]

applicable/ or not

22.

20.1

In addition to the original of the Bid, the Bidder should submit

..copies of the Bid [minimum number of copies should be
three and maximum should be five].

23.

20.2

Written confirmation of authorization are. [list]

[Normally power of attorney is provided]
D. Submission of Bids

24.

21.2 a)

Bids shall be submitted to [Specify below]:

.
Street Address ..
Building/Plot No.
Floor/Room No. ..
City/Town
[Address of the Secretary of the appropriate Tender Board]

25.

21.2 b)

Project name
Bid Number....
Time and date for submission..

26.

22.1

The deadline for Bid submission is

a) Day
b) Date
c) Time ..

25

27.

22.3

The extension of the deadline for submission of Bids shall be

made not later than [insert number
of days; normally not more than seven days] before the expiry of the
original deadline.
E. Opening and Evaluation of Bids

28.

25.1

The Bids opening shall take place at:

Street address .
Building/Plot No. .
Floor/Room No.
City/Town ..
Country .

29.

32..1

a) Domestic preference shall be [insert applicable or not

applicable]
b) If a margin of preference applies, the application methodology
shall be

30.

34.1

Post- qualification will [insert be undertaken or not be

undertaken].

31.

38.1

Percentage for quantities increase or decrease is (insert percentage)

[This should not exceed 15 percent]
F. Award of Contract

32.

41.1

The amount of performance security shall be [insert amount

between 10% and 15% of the contract price]

33.

42.1

The Advance Payment shall be [limited to a

maximum of fifteen (15) percent of the Contract Price].

34.

43.1

The proposed adjudicator for the project is:

[insert name of the proposed adjudicator] whose hourly rate shall

be [insert proposed hourly rate].
G. Right to Review

35.

49.1

The address to submit complaints:

26

Chief Executive Officer,

Public Procurement Regulatory Authority (PPRA)
PPF Tower 8th Floor,
P.O. Box 49,
DAR ES SALAAM.
Tel: 2133466, 2121236/7
Fax: 2121238
email: ceo@ppra.go.tz
Website: www.ppra.go.tz

15

36.

49.3

Fee for administrative review shall be ten thousand Tanzanian

shillings15.

37.

51.2

The address for Appeal to PPAA:

The Secretary,
Public Procurement Appeals Authority,
Sukari House 1st Floor,
P.O. Box 9310,
DAR ES SALAAM.
Tel: 2120451

The amount of fees as per 5th Schedule of the Public Procurement (Goods, Works, Non-Consultant Services
and Disposal of Public Assets by Tender) Regulation, 2005 is subject to review.

27

6.0 Guidance Notes on General Conditions of Contract

The General Conditions of Contract, read in conjunction with the Special Conditions of
Contract and other documents listed therein, should be a complete document expressing
fairly the rights and obligations of both parties.
The form of General Conditions of Contract that follows has been developed on the basis
of considerable international experience in the drafting and management of contracts,
bearing in mind a trend in the construction industry towards simpler, more
straightforward language.
The form can be used directly for smaller admeasurements contracts and, with the
modifications noted in the footnotes, it can be adapted for lump sum contracts.
The use of standard General Conditions of Contract for building and civil works in the
country will promote comprehensiveness of coverage, general acceptability of its
provisions, savings in cost and time in Bid preparation and review, and the development
of a solid background of legal case histories.

28

7.0

Guidance Notes on Special Conditions of Contract

Similar to the Bid Data Sheet in Section III, the clauses in this Section V are intended
to assist the Employer in providing Contract-specific information in relation to
corresponding clauses in the General Conditions of Contract (GCC).
The provisions of Section V complement the GCC included in Section IV, specifying
contractual requirements linked to the special circumstances of the Employer and
the United Republic of Tanzania

This Special Condition of Contract will form part of any resulting contract.

29

7.1 Input of Information to be completed by Procuring Entity in the

Section V: Special Conditions of Contract
The following Special Conditions of Contract (SCC) shall supplement the General
Conditions of Contract (GCC). Whenever there is a conflict, the provisions herein
shall prevail over those in the GCC.
SCC
Clause

GCC
Clause

Description
A. General

1.

1.1

The Employer is [Name, address, and name of authorized

representative].
The Adjudicator is [ insert name]
The Defects Liability Period is [number] days.
The Project Manager is [Name, address, and name of
authorized representative].
The name and identification number of the Contract is
[insert name and number as indicated in the Invitation for Bids
(or Pre-qualification, if any)].
The Works consist of [insert brief summary of the works,
including relationship to other Contracts under the Project].
The Start Date shall be [insert date].
The Intended Completion Date for the whole of the
Works shall be [insert date].16
The following documents also form part of the Contract:
[list documents]
The Site is located at [insert location] and is defined in
drawings No: [insert numbers].

16

If different dates are specified for completion of the Works by section (sectional completion), these dates
should be listed here.

30

2.

2.2

Indicate whether there is section completion is specified

[specified/not specified].

3.

2.3(9)

List other documents that form part of the contract if any:

a)..
b)..
c)..
etc.

4.

3.1

The language of the Contract documents is [insert

language].
The law that applies to the Contract is the Tanzanian
Law.

5.

9.1

Include the Schedule of Other Contractors, if any.

[give list of other contractors]

6.

10.1

Include the Schedule of Key Personnel.

[Give list of key personnel]

7.

14.1

The minimum insurance covers shall be:

The minimum insurance covers shall be:
(a)

loss of or damage to the Works, Plant, and

Materials [insert amount];

(b)

loss of or damage to Equipment [insert amount];

(c)

loss of or damage to property (except the

Works, Plant, Materials, and Equipment) in
connection with the Contract [insert amount];
and

(d)

personal injury or death [insert amount].

8.

15.1

Site Investigation Reports available to the Bidder are:

a)..
b)..
c)..

9.

22.4

The other measures include:

a. Minimizing the number of migrant workers
employed on the project and household in the site
camp
b. Providing access to voluntary counseling and
testing (VCT)

31

c. Providing psychological support and health care

including
prevention
and
treatment
of
opportunistic infections for workers infected and
affected, as well as their families
d. Providing condoms (male and female) to workers
10.
11.

24.1 & 47.1 The Site Possession Date shall be [insert date].17
28.2

Hourly rate of Fees payable to the Adjudicator is: [insert

hourly fee in Tshs.]
Types of reimbursable expenses to be paid to the
Adjudicator include: [insert types of reimbursable expenses].
a)..
b)..
c)..

12.

28.3

Arbitration will take place at [insert the place] in

accordance with rules and regulations published by
.. [state the institutions] and [insert
rules and regulations]

13.

29.1

Appointing Authority for the Adjudicator: [insert the name

of Authority]
B. Time Control

14.

30.1

The Contractor shall Submit a Programme for the Works

within [number] days of delivery of the Letter of
Acceptance.

15.

30.3

The period between Programme updates is [number]

days.

16.

30.3

The amount to be withheld by the Project Manager in the

case the contractor does not submit an updated
programme is: [State amount].

C. Quality Control
17.

17

38.1

The Defects Liability Period is [number] days.

If the Site is made available by section, the different dates should be listed here.

32

D. Cost Control
18

45.1

The interest rate shall be ..% above prevailing

interest rate for commercial borrowing from the
contractors bank

19

45.7

20.

47.1(a)

Minimum amount of Interim Payment Certificate will be

[insert figure or percent of contract price]
The Site Possession Date shall be [insert date].18

21.

50

The contract [insert is or is not]19 subject to subject to

price adjustment in accordance with Clause 50 of the
General Condition of Contract.

22.

51.1

The amount of retention is [state the percent] 20 of value of

works of Interim Payment Certificate.
Limit of retention will be [insert percent] of contract price.

23

52.1

The amount of liquidated damages is [Insert percent]

[Should be between 0.1 and 0.15 percent of contract price
per day]
The maximum amount of liquidated damages must be
equivalent to the amount of the performance security
[Insert amount]

24.

53.1

The bonus21 for early completion is [state the amount].

25.

54.1

The amount of advance payment22 shall be . per

cent of the contract sum payable by
[insert date].

26.

18
19
20
21

22

55.1.

Monthly recovery of advance payment: ..percent

of amount of Interim of Payment of Certificate.
The Performance Security shall be a minimum amount
equivalent to 10 to 15 percent of the contract price.

If the Site is made available by section, the different dates should be listed here.
Price adjustment is recommended for contracts which provide for time for completion exceeding 18 months.
The retention amount is usually close to 5 percent and in no case exceeds 10 percent.
If early completion would provide benefits to the Employer, this clause should remain; otherwise delete. The
Bonus is usually numerically equal to the liquidated damages.
Amount of advance payment shall not exceed 15 percent of the contract sum.

33

E. Finishing the Contract

27.

611

As built drawings shall be supplied by the contractor by

. [insert date if applicable].
Operating manual shall be supplied by the contractor by
. [insert date if applicable].

28.

61.2

The amount to be withheld by the Project Manager in the

case the contractor does not submit as built drawings
is:. [State amount if applicable].
The amount to be withheld by the Project Manager in the
case the contractor does not submit operating manual
is:. [State amount if applicable].

29.

62.2 (g)

Number of days for which the maximum amount of

liquidated damages can be paid is . [Insert
number of days].

30.

63.1

The percentage to apply to the value of the work not

completed, representing the Employer's additional cost
for completing the Works, is [percent].

34

8.0

Guidance Notes on Specifications

A set of precise and clear specifications is a prerequisite for Bidders to respond

realistically and competitively to the requirements of the Employer without
qualifying or conditioning their Bids. In the context of competitive Bidding, the
specifications must be drafted to permit the widest possible competition and, at the
same time, present a clear statement of the required standards of workmanship,
materials, and performance of the goods and services to be procured. Only if this is
done will the objectives of economy, efficiency, and fairness in procurement be
realized, responsiveness of Bids be ensured, and the subsequent task of Bid
evaluation facilitated. The specifications should require that all goods and materials
to be incorporated in the Works be new, unused, of the most recent or current
models, and incorporate all recent improvements in design and materials unless
provided otherwise in the Contract.
Samples of specifications from previous similar projects are useful in this respect.
The use of metric units is encouraged by the Government of Tanzania. Most
specifications are normally written specially by the Employer or Project Manager to
suit the Contract Works in hand. There is no standard set of Specifications for
universal application in all sectors in Tanzania, but there are established principles
and practices, which are reflected in these documents.
There are considerable advantages in standardizing General Specifications for
repetitive Works in recognized public sectors, such as highways, ports, railways,
urban housing, irrigation, and water supply, in the same country or region where
similar conditions prevail. The General Specifications should cover all classes of
workmanship, materials, and equipment commonly involved in construction,
although not necessarily to be used in a particular Works Contract. Deletions or
addenda should then adapt the General Specifications to the particular Works.
Care must be taken in drafting specifications to ensure that they are not restrictive.
In the specification of standards for goods, materials, and workmanship, recognized
international standards should be used as much as possible. Where other particular
standards are used, whether national standards of the Tanzania or other standards,
the specifications should state that goods, materials, and workmanship that meet
other authoritative standards, and which ensure substantially equal or higher
quality than the standards mentioned, will also be acceptable. The following clause
may be inserted in the Special Conditions or Specifications.
Sample Clause: Equivalency of Standards and Codes
Wherever reference is made in the Contract to specific standards and codes to be
met by the goods and materials to be furnished, and work performed or tested, the
provisions of the latest current edition or revision of the relevant standards and
codes in effect shall apply, unless otherwise expressly stated in the contract. Where
such standards and codes are national, or relate to a particular country or region,

35

other authoritative standards that ensure a substantially equal or higher quality

than the standards and codes specified will be accepted subject to the Project
Managers prior review and written consent. Differences between the standards
specified and the proposed alternative standards shall be fully described in writing
by the Contractor and submitted to the Project Manager at least 28 days prior to the
date when the Contractor desires the Project Managers consent. In the event the
Project Manger determines that such proposed deviations do not ensure
substantially equal or higher quality, the Contractor shall comply with the standard
specified in the documents.
These Notes for Preparing Specifications are intended only as information for the Employer
or the person drafting the Bidding documents. They should not be included in the final
documents.

36

9.0

Guidance Notes on the Drawings

Insert here a list of Drawings. The actual Drawings, including site plans, should be attached to this
section or annexed in a separate folder.

37

10.0 Guidance Notes on Bill of Quantities23

Objectives
The objectives of the Bill of Quantities are:
(a)

to provide sufficient information on the quantities of Works to be

performed to enable Bids to be prepared efficiently and accurately; and

(b)

when a Contract has been entered into, to provide a priced Bill of

Quantities for use in the periodic valuation of Works executed.

In order to attain these objectives, Works should be itemized in the Bill of Quantities
in sufficient detail to distinguish between the different classes of Works, or between
Works of the same nature carried out in different locations or in other circumstances
which may give rise to different considerations of cost. Consistent with these
requirements, the layout and content of the Bill of Quantities should be as simple
and brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work,
outside the items included in the Bill of Quantities, is high. To facilitate checking by
the Employer of the realism of rates quoted by the Bidders, the Daywork Schedule
should normally comprise the following:
(a) A list of the various classes of labour, materials, and Constructional Plant
for which basic daywork rates or prices are to be inserted by the Bidder,
together with a statement of the conditions under which the Contractor will
be paid for work executed on a daywork basis.
(b) Nominal quantities for each item of Daywork, to be priced by each Bidder
at Daywork rates as Bid. The rate to be entered by the Bidder against each
basic Daywork item should include the Contractors profit, overheads,
supervision, and other charges.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by
including a provisional sum in the Summary Bill of Quantities. Similarly, a
23

In lump sum contracts, delete Bill of Quantities and replace with Schedule of Activities throughout this
section.

38

contingency allowance for possible price increases should be provided as a

provisional sum in the Summary Bill of Quantities. The inclusion of such
provisional sums often facilitates budgetary approval by avoiding the need to
request periodic supplementary approvals as the future need arises. Where such
provisional sums or contingency allowances are used, the Special Conditions of
Contract should state the manner in which they will be used, and under whose
authority (usually the Project Managers).
The estimated cost of specialized work to be carried out, or of special goods to be
supplied, by other contractors (refer to Clause 8 of the Conditions of Contract)
should be indicated in the relevant part of the Bill of Quantities as a particular
provisional sum with an appropriate brief description. A separate procurement
procedure is normally carried out by the Employer to select such specialized
contractors. To provide an element of competition among the Bidders in respect of
any facilities, amenities, attendance, etc., to be provided by the successful Bidder as
prime Contractor for the use and convenience of the specialist contractors, each
related provisional sum should be followed by an item in the Bill of Quantities
inviting the Bidder to quote a sum for such amenities, facilities, attendance, etc.
These Notes for Preparing a Bill of Quantities are intended only as information for the
Employer or the person drafting the Bidding documents. They should not be included in the
final documents.

39

11.0 Guidance Notes on the Preparation of Forms

The purpose of including these forms in the Bidding Document is to notify the
Bidders of the type and detail of the Contract they would receive in the event of an
award. No input is required by the PE when drafting the Bidding Document.

40

11.1 Form of Bid and Appendix to Bid

The Bidder shall fill in and submit this Bid form and appendix to bid 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 its Bid, and present an alternative candidate,
together with the candidates daily fees and biographical data, in accordance with
Clause 43 of the Instructions to Bidders.

41

1.

Form of Bid24
[date]

To:

[name and address of Employer]

We offer to execute the [name and identification number of contract] in accordance with
the Conditions of Contract accompanying this Bid for the Contract Price of [amount
in numbers], [amount in words] [name of currency].
The Contract shall be paid in the following currencies:
Currency Percentage payable
in currency

Rate of exchange: one

foreign equals [insert
local]

Inputs for which

foreign currency is
required

(a)
(b)

The advance payment required is:Amount

Currency

(a)
(b)
We accept the appointment of [name proposed in Bid Data Sheet] as the adjudicator.
or
We do not accept the appointment of [name proposed in Bid Data Sheet] as the
Adjudicator, and propose instead that [name] be appointed as Adjudicator, whose
daily fees and biographical data are attached.
We are not participating, as Bids, in more than one Bid in this Bidding process other
than alternative Bids in accordance with the Bidding documents.
Our firm, its affiliates or subsidiaries, including any subcontractors or suppliers for
any part of the contract has not been declared ineligible by the Government of the
United Republic of Tanzania under Tanzania's laws or any other official regulations.
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.

24

The Bid Form must be completed without any alterations and no substitute shall be accepted.

42

We hereby confirm that this Bid complies with the Bid validity and Bid security
required by the Bidding documents and specified in the Bid Data Sheet.
Authorized Signature:
Name and Title of Signatory:
Name of Bidder:
Address:

43

Appendix to Bid25
Schedule of Adjustment Data
[In Tables A, B, and C, below, the Bidder shall (a) indicate its amount of local
currency payment, (b) indicate its proposed source and base values of indices for
the different foreign currency elements of cost, (c) derive its proposed weightings
for local and foreign currency payment, and (d) list the exchange rates used in the
currency conversion. In the case of very large and/or complex works contracts, it
may be necessary to specify several families of price adjustment formulae
corresponding to the different works involved.]
Table A. Local Currency
Index
code

Index
description

Nonadjustable

Source
Base
of
value
index and date

Bidders
related
currency
amount

Range of
weighting
Proposed by the
Procuring Entity
a:

*26

b: ----- to -----*27

Bidders
proposed
weighting
a:

b:

28

c: ------- to-------* c:
d: ------- to------* d:
e: ------- to ------* e:

etc.
Total

etc.
1.00

Table B. Foreign Currency

State type: ....................... [If the Bidder wishes to quote in more than one foreign
currency, this table should be repeated for each foreign currency.]
25

The Appendix to Bid shall be filled by the bidders and submit this with the bid if the contract is subject to
price adjustment in accordance with GCC Clause 50. Price adjustment is recommended for contracts which
provide for time for completion exceeding 18 months.
26
Procuring Entity should enter non-adjustable factor a: _____*, where there is part of the contractors
expenditures that will not be subject to fluctuation in cost (for example, stamp duties and other expenses
incurred in formalizing the contract) or to compensate for the unreliability of some indices. a should
normally not exceed 0.1.
27 Procuring Entity should enter the range of weighting proposed i.e b ____ to ____* and for other inputs subject
to fluctuation for both local and foreign currency.
28 Bidders proposed weighting i.e b: ______ shall be proposed by Bidders from the range giving by the
Procuring Entity.

44

Index
code

Index
description

Source
of
index

Base
value
and
date

Nonadjustable

Bidders
Equivalent
Range of
Bidders
related
in Foreign
weighting
proposed
source
Currency 1 Proposed by the weighting
currency in
Procuring Entity
type/amount

a:
*
a:
*
b: ----- to -------* b:
c: ------ to -------* c:
d: ------ to ------* d:
e:------- to -------* e:

etc.
Total

etc.
1.00

45

Table C. Summary of Payment Currencies

For .. [Insert name of Section of the Works]
[Separate tables may be required if the various sections of the Works (or of the Bill
of Quantities) will have substantially different foreign and local currency
requirements. The Employer should insert the names of each Section of the Works.]
Name of
payment
currency

A
Amount of
currency

B
Rate of
exchange
(local currency
per unit of
foreign)

C
Local currency
equivalent
C=AxB

D
Percentage of
Net Bid Price
(NBP)
100xC
NBP

1.00

Local currency

Foreign
currency #1

Foreign
currency #2

Foreign
currency #

Net Bid Price

Provisional
sums expressed
in local
currency

100.00

BID PRICE

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

46

11.2

Form of Qualification Information

The information to be filled in by Bidders in the form of qualification information

will be used for purposes of post-qualification or for verification of pre-qualification
as provided for in Clause 12 of the Instructions to Bidders. This information will
not be incorporated in the Contract. Attach additional pages as necessary.
Pertinent sections of attached documents should be translated into English. If used
for pre-qualification verification, the Bidder should fill in updated information only.

47

Form of Qualification Information

2.

Individual
Bidders or
Individual
Members of
joint Ventures

1.1

Constitution or legal status of Bidder: [attach copy]

Place of registration: [insert]
Principal place of business: [insert]
Power of attorney of signatory of Bid: [attach]
Registration certificate [attach] current Business
License [attach]

Project name
and country

1.2

Total annual volume of construction work

performed in two years, in Tanzanian shillings as
specified in the Bid Data Sheet; [insert]

1.3

Work performed as prime Contractor on works of a

similar nature and volume over the last two years or
as specified in the Bid Data Sheet in Tanzanian
Shillings. Also list details of work under way or
committed, including expected completion dates.

Name of client
and contact
person

Contractors
Participation

Type of work
performed and
year of
completion

Value of
contract

(a)
(b)
1.4

Item of
equipment

Major items of Contractors Equipment proposed for

carrying out the works. List all information
requested below. Refer also to sub-Clause 12.3 of
the Instructions to Bidders.

Description,
make, and age
(years)

Condition (new,
good, Poor) and
number available

(a)
(b)
(c)

48

Owned, leased
(from whom?) or
to be purchased
(from whom?)

(d)
1.5

Position

Qualifications and experience of key personnel

proposed for administration and execution of the
Contract. Attach biographical data. Refer also to
sub-Clause 12.3 of the Instructions to Bidders and
Sub- Clause 9.1 of the General Conditions of
Contract.
Name

Years of Experience
(general)

Years of
experience in
proposed position

(a)
(b)
1.6

Sections of the
Works

Proposed sub-contractor and firms involved. Refer to

Clause 7 of General Conditions of Contract.

Value of
subcontract

Subcontractor
(name and
address)

Experience in
similar work

(a)
(b)
1.7

Financial reports for the number of years specified in

the Bid Data Sheet.

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.

1.9

Name, address, and telephone, telex, and facsimile

numbers of banks that may provide references if
contracted by the Employer.

1.10 Information on current litigation in which the Bidder

is involved.

49

Other party(ies)
(a)

Cause of dispute

Amount involved

(b)

1.11 Statement of compliance with the requirements of

sub-Clause 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.
2.

3.

Joint Ventures

Additional

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 authorizing 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:-

3.1

(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.

Bidders should provide any additional information

50

Requirements

required in the Bid Data Sheet or to fulfill the

requirements of sub-Clauses 12.1 of the Instructions
to Bidders, if applicable.

51

11.3

Standard Form of Letter of Acceptance

The Letter of Acceptance will be the basis for formation of the Contract as described
in Clauses 37, 38 and 39 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 appropriate
approving authorities.

52

3.

Letter of Acceptance

[letter head paper of the Employer]

[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 Special Conditions of Contract] for the
Contract Price of the equivalent29 of [amount in numbers and works] [name of currency],
as corrected and modified30 in accordance with the Instructions to Bidders is hereby
accepted by us.
We confirm that [insert name proposed by the procuring entity] to be the Adjudicator.31
We accept that [name proposed by Bidder] be appointed as Adjudicator.32
Or
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 44.1 of the Instructions to Bidders.33
You are hereby instructed to proceed with the execution of the said works in
accordance with the Contract documents.
Please return the contract dully signed.
Authorized Signature:
Name and Title of Signatory:
Name of Agency:
Attachment: Form of Contract

29

Delete of the equivalent if the Contract Price is expressed wholly in one currency.
Delete corrected and or and modified if not applicable. See Notes on Standard Form of Contract, next page.
31
To be used if Bidder has not objected to the name proposed by the adjudicator.
32
To be used only if the Bidder disagrees in the Bid with the Adjudicator proposed by the Employer and has accordingly
offered another candidate acceptable to the Employer.
33
To be used when the Employer does not accept the adjudicator proposed by the Bidder.
30

53

11.4

Standard Form of Contract

The Agreement should incorporate any corrections or modifications to the Bid

resulting from corrections of errors (Instructions to Bidders, Clause 29, price
adjustment during the evaluation process (Clause 50 of the General Conditions of
Contract), selection of an alternative offer (Instructions to Bids Clause 19),
acceptable deviations (Instructions to Bids Clause 28), or any other mutually
agreeable changes allowed for in the Conditions of Contract, such as changes in key
personnel, subcontractors, scheduling, and the like.

54

4.

Form of Contract

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) of the other part.

Whereas the Employer is desirous that the Contractor execute [name and
identification number of contract] (hereinafter called the Works) and the Employer
has accepted the Bid by the Contractor for the execution and completion of such
works and the remedying of any defects therein in the sum of [contract price in words
and figures} hereinafter called (the Contract Price).
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 Conditions of Contract hereinafter
referred to, and they shall be deemed to form and be read and construed as
pert of this Agreement.

2.

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.

3.

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:
Biding Signature of Employer
Binding Signature of Contractor

55

11.5

Guidance Notes on the Preparation of Forms -Security

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

56

1.

Bid-Securing Declaration

[The Bidder shall fill in this Form in accordance with the instructions indicated.]
Date: [insert date (as day, month and year)]
Bid No.: [insert number of bidding process]
Alternative No.: [insert identification No if this is a Bid for an alternative]
To: [insert complete name of Procuring Entity]
We, the undersigned, declare that:
We understand that, according to your conditions, Bids must be supported by a BidSecuring Declaration.
We accept that we will automatically be suspended from being eligible for Bidding
in any contract with the Purchaser for the period of time of [insert number of months
or years] starting on [insert date], if we are in breach of our obligation(s) under the
Bid conditions, because we:
(a)

have withdrawn our Bid during the period of Bid validity specified in the
Form of Bid; or

(b)

having been notified of the acceptance of our Bid by the Purchaser during the
period of Bid validity, (i) fail or refuse to execute the Contract, if required, or
(ii) fail or refuse to furnish the Performance Security, in accordance with the
Instruction to Bidders.

We understand this Bid Securing Declaration shall expire if we are not the
successful Bidder, upon the earlier of (i) our receipt of your notification to us of the
name of the successful Bidder; or (ii) twenty-eight days after the expiration of our
Bid.
Signed: [insert signature of person whose name and capacity are shown] in the capacity of
[insert legal capacity of person signing the Bid Securing Declaration]
Name: [insert complete name of person signing the Bid Securing Declaration]
Duly authorized to sign the Bid for and on behalf of: [insert complete name of
Bidder]

Dated on ____________ day of __________________, _______ [insert date of signing]

Corporate Seal (where appropriate)
[Note: In case of a Joint Venture, the Bid Securing Declaration must be in the name of all partners to
the Joint Venture that submits the Bid.]

57

2(a).

Performance Bank Guarantee [Unconditional]

[The bank/successful Bidder providing the Guarantee shall fill in this form in accordance
with the instructions indicated in brackets, if the Employer requires this type of security.]
[insert banks name, and address of issuing branch or office]
Beneficiary: [insert name and address of Employer]
Date: [insert date]
PERFORMANCE GUARANTEE No.:

[insert Performance Guarantee number]

We have been informed that [insert name of Contractor] (hereinafter called "the
Contractor") has entered into Contract No. [insert reference number of the Contract]
dated with you, for the execution of [insert name of Contract and brief description of
Works] (hereinafter called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract, a
performance guarantee is required.
At the request of the Contractor, we [insert name of Bank] hereby irrevocably
undertake to pay you any sum or sums not exceeding in total an amount of [insert
amount in figures] ([insert amount in words]),34 such sum being payable in the types
and proportions of currencies in which the Contract Price is payable, upon receipt
by us of your first demand in writing accompanied by a written statement stating
that the Contractor is in breach of its obligation(s) under the Contract, without your
needing to prove or to show grounds for your demand or the sum specified therein.
This guarantee shall expire no later than twenty-eight days from the date of
issuance of the Taking-Over Certificate, calculated based on a copy of such
Certificate which shall be provided to us, or on the [insert number day of [insert
Consequently, any demand for
month], [insert year],35 whichever occurs first.
payment under this guarantee must be received by us at this office on or before that
date.
_____________________
[signature(s) of an authorized representative(s) of the Bank ]
34

The Guarantor (bank) shall insert an amount representing the percentage of the Contract Price specified in the
Contract and denominated either in the currency(ies) of the Contract or a freely convertible currency acceptable
to the Employer.
35
Insert the date twenty-eight days after the expected Completion date. The Employer should note that in
the event of an extension of the time for completion of the Contract, the Employer would need to request an
extension of this Guarantee from the Guarantor. Such request must be in writing and must be made prior to the
expiration date established in the Guarantee. In preparing this Guarantee, the Employer might consider adding
the following text to the form, at the end of the penultimate paragraph: The Guarantor agrees to a one-time
extension of this Guarantee for a period not to exceed [six months][one year], in response to the Employers
written request for such extension, such request to be presented to the Guarantor before the expiry of the
Guarantee.

58

2(b).

Performance Bond

[The Surety/successful Bidder providing the Bond shall fill in this form in accordance with
the instructions indicated in brackets, if the Employer requires this type of security]
By this Bond, [insert name and address of Contractor] as Principal (hereinafter called
the Contractor) and [insert name, legal title, and address of surety, bonding company,
or insurance company] as Surety (hereinafter called the Surety), are held and firmly
bound unto [insert name and address of Employer] as Obligee (hereinafter called the
Employer) in the amount of [insert amount of Bond] [insert amount of Bond in
words],36 for the payment of which sum well and truly to be made in the types and
proportions of currencies in which the Contract Price is payable, the Contractor and
the Surety bind themselves, their heirs, executors, administrators, successors, and
assigns, jointly and severally, firmly by these presents.
Whereas the Contractor has entered into a Contract with the Employer dated37 the
[insert number] day of [insert month], [insert year] for [insert name of Contract] in
accordance with the documents, plans, specifications, and amendments thereto,
which to the extent herein provided for, are by reference made part hereof and are
hereinafter referred to as the Contract.
Now, therefore, the Condition of this Obligation is such that, if the Contractor shall
promptly and faithfully perform the said Contract (including any amendments
thereto), then this obligation shall be null and void; otherwise it shall remain in full
force and effect. Whenever the Contractor shall be, and declared by the Employer
to be, in default under the Contract, the Employer having performed the Employers
obligations thereunder, the Surety may promptly remedy the default, or shall
promptly:
(1)

complete the Contract in accordance with its terms and conditions; or

(2)

obtain a Bid or bids from qualified bidders for submission to the

Employer for completing the Contract in accordance with its terms and
conditions, and upon determination by the Employer and the Surety of
the lowest responsive Bidder, arrange for a Contract between such Bidder
and Employer and make available as work progresses (even though there
should be a default or a succession of defaults under the Contract or
Contracts of completion arranged under this paragraph) sufficient funds
to pay the cost of completion less the balance of the Contract Price; but
not exceeding, including other costs and damages for which the Surety
may be liable hereunder, the amount set forth in the first paragraph
hereof. The term Balance of the Contract Price, as used in this

36

An amount is to be inserted by the Surety, representing the percentage of the Contract Price specified in the
Contract Data, and denominated either in the currency(ies) of the Contract or in a freely convertible currency of
type and amount acceptable to the Employer.
37 Date of Letter of Acceptance or Agreement.

59

paragraph, shall mean the total amount payable by the Employer to the
Contractor under the Contract, less the amount properly paid by the
Employer to the Contractor; or
(3)

pay the Employer the amount required by the Employer to complete the
Contract in accordance with its terms and conditions up to a total not
exceeding the amount of this Bond.

The Surety shall not be liable for a greater sum than the specified penalty of this
Bond.
Any suit under this Bond must be instituted before the expiration of one year from
the date of issuance of the Certificate of Completion.
No right of action shall accrue on this Bond to or for the use of any person or
corporation other than the Employer named herein or the heirs, executors,
administrators, successors, and assigns of the Employer.
In testimony whereof, the Contractor has hereunto set its hand and affixed its seal,
and the Surety has caused these presents to be sealed with its corporate seal duly
attested by the signature of its legal representative, this [insert day] day of [insert
month], [insert year].

Signed by [insert signature(s) of authorized representative(s) ]

on behalf of [name of Contractor] in the capacity of [insert title(s)]
In the presence of [insert name and signature of witness]
Date [insert date]

Signed by [insert signature(s) of authorized representative(s) of Surety]

on behalf of [name of Surety ] in the capacity of [insert title(s)]
In the presence of [insert name and signature of witness]
Date [insert date]

60

3.

Bank Guarantee for Advance Payment

[Banks Name, and Address of Issuing Branch or Office]

Beneficiary:
Date:

___________________ [Name and Address of Employer]

________________

ADVANCE PAYMENT GUARANTEE No.:

_________________

We have been informed that [name of Contractor] (hereinafter called "the Contractor")
has entered into Contract No. [reference number of the contract] dated ______ with
you, for the execution of [name of contract and brief description of Works] (hereinafter
called "the Contract").
Furthermore, we understand that, according to the conditions of the Contract, an
) [amount in words] is to be
advance payment in the sum [amount in figures] (
made against an advance payment guarantee.
At the request of the Contractor, we [name of Bank] hereby irrevocably undertake to
pay you any sum or sums not exceeding in total an amount of [amount in figures]
) [amount in words]38 upon receipt by us of your first demand in writing
(
accompanied by a written statement stating that the Contractor is in breach of its
obligation under the Contract because the Contractor used the advance payment for
purposes other than the costs of mobilization in respect of the Works.
It is a condition for any claim and payment under this guarantee to be made that the
advance payment referred to above must have been received by the Contractor on
its account number ___________ at _________________ [name and address of Bank].
The maximum amount of this guarantee shall be progressively reduced by the
amount of the advance payment repaid by the Contractor as indicated in copies of
interim statements or payment certificates which shall be presented to us. This
guarantee shall expire, at the latest, upon our receipt of a copy of the interim
payment certificate indicating that eighty (80) percent of the Contract Price has been
certified for payment, or on the ___ day of _____, 2___,39 whichever is earlier.
38 The Guarantor shall insert an amount representing the amount of the advance payment and denominated
either in the currency(ies) of the advance payment as specified in the Contract, or in a freely convertible
currency acceptable to the Employer.
39 Insert the expected expiration date of the Time for Completion. The Employer should note that in the event of
an extension of the time for completion of the Contract, the Employer would need to request an extension of this
guarantee from the Guarantor. Such request must be in writing and must be made prior to the expiration date
established in the guarantee. In preparing this guarantee, the Employer might consider adding the following
text to the form, at the end of the penultimate paragraph: The Guarantor agrees to a one-time extension of this
guarantee for a period not to exceed [six months][one year], in response to the Employers written request for
such extension, such request to be presented to the Guarantor before the expiry of the guarantee.

61

Consequently, any demand for payment under this guarantee must be received by
us at this office on or before that date.
Yours truly,
Signature and seal:
Name of Bank/Financial Institution:
Address:
Date:

62

SECTION X: UNDERTAKING BY BIDDER ON ANTI BRIBERY POLICY /

CODE OF CONDUCT AND COMPLIANCE PROGRAMME

1.

Each Bidder must submit a statement, as part of the Bid documents, in

either of the two given formats which must be signed personally by the
Chief Executive Officer or other appropriate senior corporate officer of the
Bidding company and, where relevant, of its subsidiary in the United
Republic of Tanzania. If a Bid is submitted by a subsidiary, a statement to
this effect will also be required of the parent company, signed by its Chief
Executive Officer or other appropriate senior corporate officer.

2.

Bidders will also be required to submit similar No-bribery commitments

from their subcontractors and consortium partners; the Bidder may cover
the subcontractors and consortium partners in its own statement, provided
the Bidder assumes full responsibility.

(3) (a) Payment to agents and other third parties shall be limited to appropriate
compensation for legitimate services.
(b) Each Bidder will make full disclosure in the Bid documentation of the
beneficiaries and amounts of all payments made, or intended to be made, to
agents or other third parties (including political parties or electoral
candidates) relating to the Bid and, if successful, the implementation of the
contract.
(c) The successful Bidder will also make full disclosure [quarterly or semiannually] of all payments to agents and other third parties during the
execution of the contract.
(d) Within six months of the completion of the performance of the contract, the
successful Bidder will formally certify that no bribes or other illicit
commissions have been paid. The final accounting shall include brief details
of the goods and services provided that are sufficient to establish the
legitimacy of the payments made.
(e) Statements required according to subparagraphs (b) and (d) of this paragraph
will have to be certified by the company's Chief Executive Officer, or other
appropriate senior corporate officer.
(4)

Bids which do not conform to these requirements shall not be considered.

(5)

If the successful Bidder fails to comply with its No-bribery commitment,

significant sanctions will apply. The sanctions may include all or any of the
following:

63

a)

Cancellation of the contract;

b)

Liability for damages to the public authority and/or the unsuccessful

competitors in the Bidding possibly in the form of a lump sum
representing a pre-set percentage of the contract value (liquidated).

(6)

Bidders shall make available, as part of their Bid, copies of their anti-Bribery
Policy/Code of Conduct, if any, and of their-general or project - specific Compliance Program.

(7)

The Government of the United Republic of Tanzania has made special

arrangements for adequate oversight of the procurement process and the
execution of the contract, and has invited civil society and other competent
Government Departments to participate in the oversight. Those charged with
the oversight responsibility will have full access to all documentation
submitted by Bidders for this contract, and to which in turn all Bidders and
other parties involved or affected by the project shall have full access
(provided, however, that no proprietary information concerning a Bidder may
be disclosed to another Bidder or to the public).

64

MEMORANDUM (Format 1)
(Regulation 100(2) of the Public Procurement (Goods, Works, Non-Consultant
Services and Disposal of Public Assets by Tender) Regulations, 2005 - Government
Notice No. 97 of 15th April, 2005
This company _____________________(name of company) places importance on
competitive Bidding taking place on a basis that is free, fair, competitive and not
open to abuse. It is pleased to confirm that it will not offer or facilitate, directly or
indirectly, any improper inducement or reward to any public officer their relations
or business associates, in connection with its Bid, or in the subsequent performance
of the contract if it is successful.
This company has an Anti-Bribery Policy/Code of Conduct and a Compliance
Program which includes all reasonable steps necessary to assure that the No-bribery
commitment given in this statement will be complied with by its managers and
employees, as well as by all third parties working with this company on the public
sector projects, or contract including agents, consultants, consortium partners, subcontractors and suppliers. Copies of our Anti-Bribery Policy/Code of Conduct and
Compliance Program are attached

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

65

MEMORANDUM (Format 2)
(Regulation 100(2) of the Public Procurement (Goods, Works, Non-Consultant
Services and Disposal of Public Assets by Tender) Regulations, 2005 - Government
Notice No. 97 of 15th April, 2005
This company _____________________(name of company) has issued, for the purposes
of this Bid, a Compliance Program copy attached -which includes all reasonable
steps necessary to assure that the No-bribery commitment given in this statement
will be complied with by its managers and employees, as well as by all third parties
working with this company on the public sector projects or contract including
agents, consultants, consortium partners, subcontractors and suppliers')"
Authorized Signature:
Name and Title of Signatory:
Name of Bidder:
Address

66