Sample Work
Sample Bid Package
A sample bid package for a petrochemical plant .
Dr. M. A. Meshkot
August 2001
Bid Enquiry Package
Instruction to Bidders
Purchase Contract
General Conditions of Purchase
| Item | Description | Pages |
| 1 | Acknowledgement of Receipt | 1 |
| 2 | Instruction to Bidders | 6 |
| 3 | Form of Quotation | 7 |
| 4 | Sample Purchase Contract | 9 |
| 5 | General Conditions of purchase | 30 |
| 6 | Packing instructions | 10 |
| 7 | Technical Specifications and Special Conditions of Purchase | 42 |
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1. |
Introduction |
|
2. |
Resulting Orders |
|
3. |
Acknowledgement and Queries |
|
4. |
Quotations |
|
5. |
Price |
|
6. |
Payment Terms |
|
7. |
Quality Control |
|
8. |
Delivery |
This document provides instruction to bidders who choose to bid for the supply of Goods in connection with the __________ Petrochemical Plant in __________.
All quotations in relation to the above project must be submitted in strict compliance with these instructions before they can be considered.
Any Purchase Order placed as a result of this bid enquiry shall be subject to the Purchase Contract, which includes the General Conditions of Purchase and the packing instructions.
Any Purchase Orders resulting from this bid enquiry shall be issued by:
__________ and __________ Company Limited of __________.
Upon receipt of this bid enquiry package, all bidders are required to return the enclosed acknowledgement sheet by fax.
Any queries relating to the quotation received shall be directed to the person named on the acknowledgement sheet.
Quotations consist of a specific proposal to supply the Goods specified in this bid enquiry package at a fixed or defined price within a fixed period.
Quotations shall be submitted on the Form of Quotation included in the Bid Package no later than the closing date.
All quotations are required to be valid for a minimum of 90 days from the bid enquiry closing date stated on the acknowledgement sheet.
Quotations shall be submitted in 6 equally valid signed copies. Three of which shall be priced, and three shall be un-priced. Figure 1 describes how the 2 sets are submitted in different sealed envelopes.
Figure 1- Submission of Priced and Un-Priced Quotations
Sealed quotations shall be sent to the following address:
__________
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Any reference to delivery terms shall be consistent with the latest edition of “International Chamber of Commerce, Incoterms”.
8.1. Quotations shall include the maximum delivery period for each item of the Purchase Order. To arrive at the delivery date, the bidder shall consider holidays, shut-downs, work breaks and interruptions.
8.2. Where Goods need to be fabricated or manufactured, Quotations shall include a preliminary production schedule.
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| 1. | Preamble |
| 2. | Definitions |
| 3. | General |
| 4. | Purchase of Goods |
| 5. | Payment Method |
| 6. | Delivery Period |
| 7. | Authorized Representatives-Notice |
| 8. | Miscellaneous |
| 9. | Signatures |
This Contract is made as of this ___________________________ by and between the Buyer (hereinafter defined) ON THE ONE PART AND the Seller (hereinafter defined) ON THE OTHER
WHEREAS the Owner (hereinafter defined) and the Buyer have entered into a contract in __________ whereby the Buyer is assigned with the task of providing __________, __________ Services and __________ for __________ Petrochemical Plant in __________.
WHEREAS this Contract is provided in order that the Buyer may purchase and obtain Goods in relation to its contract with the Owner.
Now therefore, in consideration of the above premises and of the respective covenants and conditions set forth in this contract, the Buyer and the Seller agree as follows:
Unless the context indicates the contrary, the following terms as used in this contract, shall have the following meanings.
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2.4. Contract Means the combination of terms, conditions stipulations, directions, directives and instructions issued to the Seller by the Buyer and includes the following documents:
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2.6. Seller Means the person, firm, corporation manufacturer, reseller, supplier or company who sells, agrees to sell, furnishes or agrees to furnish the Goods or services specified in or referred to in the Purchase Order, who shall be deemed to be an independent contractor with respect to the Purchase Order.
3.1. Any reference to singular shall also include the plural.
3.2. Any reference to the Male shall also include the Female.
3.3. By signing this Purchase Contract the Seller accepts the conditions of the Contract including the Purchase Order in its entirety and waives and cancels all of his general sales conditions.
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4.1. Definitions and meanings that appear in any part of the Contract shall apply to the entire Contract.
4.2. The Seller hereby undertakes to perform the Work in order to provide the Buyer with the Goods specified on the Purchase Order under the conditions specified in the Contract on the Delivery Date at the Delivery Location.
4.3. The Seller shall be solely responsible for packing and marking of the Goods.
5.1. In consideration of delivery of the Goods and the Work done by the Seller to provide the Goods, the Buyer shall make the following payments to the Seller:
5.1.1. Five percent (5%) of the Contract Price as down-payment in the form of a Exchange Certificate of Deposit Trading in favour of the Seller issued by __________.
5.1.2. The down-payment shall be paid on or before the signing of this Contract.
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6.1. The delivery period shall be 6 weeks from the time of credit of the down payment into the Seller’s bank account.
6.2. Delivery term for the Goods shall be Customs, Insurance and Freight (CIF).
7.1. In the administration of this Contract, the Buyer is represented by the person named in Clause 7.4. who has full authority to act for and on behalf of the Buyer and who may from time to time delegate his authority in writing in whole or in part to others, as the Buyer’s authorized representative.
7.2. In the administration of this Contract, the Seller is represented by his Director named in Clause 7.4., who has full authority to act for and on behalf of the Seller and who may from time to time delegate his authority in writing in whole or in part to others, as the Seller’s authorized representative.
7.3. Any change in, or delegations of authority shall become effective when Notice thereof is given to the other Party.
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7.6. All correspondence between the Buyer and the Seller shall be numbered sequentially.
7.7. The Purchase Order number shall be quoted on all correspondence, drawings, invoices, shipping notes, packing list and any documents/letters in connection with the order.
7.8. All normal and routine correspondence between the Parties shall be through registered mail or telex or fax.
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8.1. To the extent required to perform the Work pursuant to the Contract, the Seller shall abide by all applicable laws, regulations, ordinances and other rules of government having jurisdiction and other rules of government having jurisdiction where the Work is done, and of any other public authority.
8.2. Waiver of any breach or failure to exercise any right hereunder, or failure to enforce any of the terms and conditions of the Contract shall not in any way affect, limit or waive the right thereafter to require strict compliance with every term and condition hereof.
8.3. Neither the Approval by the Buyer or any of his officials, employees, or agents nor any order by the Buyer for payment of money or any payment for or acceptance of the whole or any part of Work by the Buyer shall operate or be deemed as a waiver of any provision of Contract or of any power herein reserved to the Buyer or to the Owner or any right to damages herein provided, nor shall any waiver of any breach in Contract be held to be a waiver of any subsequent breach.
8.4. All negotiations, and agreed terms and conditions between the Parties have been incorporated into the Contract. This Contract shall be amended only in writing expressly referring to the Clause/APPENDIX to be amended and duly signed by the Buyer and the Seller.
8.5. All documents prepared by the Seller in connection with the Work, to be provided by the Seller to the Buyer hereunder shall be in English and shall use the International System of Units (S.I. Metric Units), except where otherwise has been specifically provided under the Contract. All drawings shall be in the Owner’s standard sizes and have the Owner’s standard title block. All documents prepared hereunder shall be the property of the Owner.
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8.13. In the event of any inconsistency between the matters contained in the Contract, the portions shall govern in the following order of precedence. The first named being paramount:
The Seller shall immediately refer to the Buyer for clarification about any such inconsistency. Any matter set forth in one portion of the Contract, but omitted from another portions shall be treated as though set forth in both portions.
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| Item | Title | Page |
| 1. | Introduction | 3 |
| 2. | Definitions | 3 |
| 3. | General | 4 |
| 4. | Scope of Supply | 5 |
| 5. | Price | 6 |
| 6. | Payment | 7 |
| 7. | Basic Engineering Data | 8 |
| 8. | Documentation | 8 |
| 9. | Reporting | 9 |
| 10. | Competence | 9 |
| 11. | Buyer Approval | 10 |
| 12. | Compliance | 11 |
| 13. | Inspection | 11 |
| 14. | Mechanical Guarantee | 13 |
| 15. | General Guarantees and Liabilities | 14 |
| 16. | Indemnification | 16 |
| 17. | Change | 17 |
| 18. | Title | 17 |
| 19. | Work Schedule | 18 |
| 20. | Delivery Guarantee | 19 |
| 21. | Communication | 20 |
| 22. | Liens | 20 |
| 23. | Confidentiality | 21 |
| 24. | Liability | 22 |
| 25. | Insurance | 22 |
| 26. | Assignment | 23 |
| 27. | Termination and Suspension | 23 |
| 28. | Force Majeure | 26 |
| 29. | Permit | 26 |
| 30. | Arbitration | 27 |
| Appendix 1- Form of Bank Guarantee | 30 |
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Unless the context indicates the contrary, the following terms as used in this contract, shall have the following meanings.
| ... | ... | ... |
| 2.15. | Start Date | Means the date on which Work relating to the Contract starts, which shall be the date on which the Purchase Order has been issued by the Buyer to the Seller. |
| 2.16. | Transit Insurance | Means Insurance covering the full replacement cost of any Goods damaged or lost during transportation. |
| 2.17. | Work | Means and includes the whole of the requirements of the Scope of supply and delivery of Goods detailed in the Purchase Order and those duties, responsibilities and obligations required by the Contract to be undertaken, performed or discharged by the Seller. However, any other work which is not specifically mentioned, but by inference required to complete the work specified in the Purchase order under this agreement is also included. Work includes the process of design, fabrication and Manufacturing. |
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4.12. The Seller shall provide a list of all spare parts required for erection and commissioning, and two years operation, for the main equipment. The Seller shall provide the necessary cross sectional drawing to identify the spare part numbers and their location as well as their interchangeability chart.
4.13. The Seller shall provide its recommendation for service, maintenance and any overhaul of the Goods over the first 12 months of operation.
5.1. The quoted price for any Goods shall be deemed to include and cover all costs, expenses and liabilities of every description and all risks of every kind to be taken by the Seller in executing, completing and handing over the complete Goods to the Buyer.
5.2. The agreed Lump Sum price for the Goods shall be invoiced according to the work progress and the terms of payment agreed to in this Contract.
5.3. The Price shall include the cost of supervision, testing and inspection.
5.4. The Price for Goods shall include the cost if any of repair, replacement and rectification due to defects during the Defect Liability Period.
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8.4. As soon as a consignment is ready for delivery, two copies of the relating Packing List together with any attachments shall be sent to the Buyer.
8.5. The Packing List shall include the following information:
8.5.1. The number of packages in each consignment,
8.5.2. The dimension for each package in the consignment,
8.5.3. Date of dispatch,
8.5.4. Name of carrier,
8.5.5. Details of any special precautions or treatment needed in handling the packages and
8.5.6. Details of any hazardous materials and related safety information.
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9.1. The Seller shall furnish and maintain an up to date detailed schedule of the Work.
9.2. The Seller shall provide the Buyer with a weekly report of the Work progress in relation to the Work Schedule.
9.3. The Seller shall furnish the Buyer with required copies of all details, working drawings, specifications, or other data prepared by the Goods manufacturer or the Seller or received by the Seller from his Subcontractors or suppliers for and under this Contract.
9.4. The Seller shall furnish particulars of the manufacturers from whom the Seller has purchased the Goods or raw materials or components of Goods.
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11.1. The Buyer shall have the right to reject any Goods, designs, drawings, specifications and other details which in the opinion of the Buyer are unsatisfactory, or which do not comply with the requirements and specifications of the Contract.
11.2. Goods rejected by the Buyer shall be removed from the Delivery Location within the time limit specified by the Buyer. The Buyer shall be at liberty to dispose of such rejected goods in such manner as he may think appropriate. In the event the vendor fails to remove the rejected goods within the specified time limit as aforesaid, all expenses incurred by the Buyer for such disposal shall be to the account of the Seller. The freight paid by the Buyer if any, on the inward journey to the Delivery Location of the rejected materials shall be reimbursed by the Seller to the Buyer before the rejected Goods are removed by the Seller.
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13.1. The Goods, materials and workmanship covered by the Purchase Order shall be subject to inspection and testing at any time prior to shipment or dispatch and to final inspection within a reasonable time after arrival at the Delivery Location. The Buyer shall have the right to carry out the inspection and testing which will include the testing of raw materials at the manufacturing shop, at fabrication shop and at the time of actual dispatch, before and after completion of packing.
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19.4. If the Seller for any reason not attributable to the Buyer fails to perform and complete the Work or any part thereof in accordance with the Detailed Work Schedule and the Contract, the Buyer will send a written Notice to the Seller to take corrective action(s). If corrective action(s) is not commenced within five working days after the receipt of the said Notice, then the Buyer may terminate the Contract as per Clause 27.1. hereinafter and perform such Work or a part thereof or have it performed by others. All excess sums, which would have been paid by the Buyer if the Contract had been normally performed, shall be borne by the Seller and shall be recoverable by the Buyer from any amount due to the Seller. Corrective action(s) in this Clause means any reasonable action(s) undertaken by the Seller aimed to solve the problem.
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Copyright © 2001 Dr. M. A. Meshkot
This page was last updated February 2006