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Contents and Structure of an ITT

Contents and structure of a typical ITT (RFQ) document comprises of:

Instructions to Tenderers

As the name suggests, is a set of instructions (and information) from Client to the Tenderer, to be followed in the preparation and submission of its Tender. Such information provided can be broadly categorized into two or three main sections.

  • Provisions that are merely information related (about the Project, Work/Service, environment, etc).
  • That are related to rights of Client and Tenderer, Tender Validity, Closing Dates, Joint Ventures, bonds/guarantees, insurances, national materials and content, etc.
  • Administrative issues such as Client contact during tender stage, date, time and place of delivery of the Tenders; info on site visits, etc.

Form of Tender

What is a Form of Tender and why is it important to state one.

Form of Tender is the form in which the Client wishes to receive a Tender from the Tenderers.

Why a set Form?: the main reason for specifying a set form is for Tenderers to furnish information focused to the ITT and that can be evaluated properly and in the way that is envisaged. If a set form is not stipulated, responses could either not be very specific and relevant to the ITT requirements or would be in an order that would increase the time taken to review and evaluate Tenders, ultimately adversely affecting the overall Contract schedule. The other reason being Tenderers could perhaps see this as an opportunity to provide as much information about their company’s full range of products and services, thinking they could directly send information to individuals responsible for executing the Contract, again adding unnecessary time affecting the schedule.

Thus to ensure that a quick and proper response to a Tender Invitation is received from the Tenderers, a proper Form of Tender giving complete instructions to Tenderers on how to prepare and submit information should be included in the ITT.

A typical form could contain the following:

Technical Tender

  1. Cover letter
  2. Technical details to be submitted with the Tender
  3. Past similar Work Experience
  4. Details of:
    1. Personnel/Manpower
    2. Construction Plant, Equipment and Vehicles
    3. Materials
  5. Method Statement and Tender Programme
  6. Demonstration of capacity available to execute the Contract
  7. Organisation – overall and for the Contract
  8. Procedures to be used for the Contract
  9. Formats of various reporting forms
  10. Proposed Sub-Contractors & Vendors with experience details
  11. Understanding of Scope of Works – categorical confirmation of understanding
  12. Support Facilities to meet worksite requirements
  13. Health Safety and the Environment – how it is managed and alignment with Client HSE requirements and systems
  14. Technical exceptions to Tender – specifically to be stated such as to specifications, scope and other requirements
  15. Contractual and unpriced commercial exceptions
  16. Any special facilities and services required from Client
  17. Other requirements / information

Commercial Tender

  1. Cover letter
  2. Tender Bond (if applicable)
  3. Form of Tender duly completed and signed
  4. Schedule of Rates and prices duly filled in
  5. Tender Programme / Bar Chart Schedule
  6. List of proposed Sub-contractors, copy from technical Tender
  7. Copies of Current Licences/Commercial Certification etc. based on local laws and regulations
  8. Joint Venture Undertaking, if applicable
  9. Exceptions to Terms and Conditions
  10. Details of Litigation in Progress, if any
  11. Details of Financial Accounts for the last 3-5 Years / Certificate of financial soundness
  12. Letter from Insurers confirming provision of insurance cover in accordance with the contract conditions
  13. Other requirements / information

Form of Contract or Agreement

Contains the form of the proposed Contract that the Client would be entering into, with the successful Tenderer:

  1. Main Agreement signatures page (briefly containing important conditions such as start date, completion dates, Contract Price, warranty period, limit of financial commitment, any other special conditions)
  2. Special terms and conditions specific to the contract in addition to the general terms and conditions, if any
  3. General terms and conditions of Contract
  4. Scope of Work/Services with all relevant specifications, design basis, drawings, documents, procedures, etc
  5. Health safety and environment (HSE) issues
  6. QA/QC issues
  7. Schedule for completion / Contract program, bar charts, “S” curves, etc
  8. Pricing schedule/section
  9. Document and data management systems requirement
  10. Procedures related to construction works i.e. offshore/onshore
  11. Contract/project coordination procedures
  12. Others

[In the early 1970’s and 80’s, contract documents have been found to be a collection of the ITT as issued with all correspondences including the Tender submitted by Tenderers till the final negotiations and conclusion, bound into one document - the Contract document. Though there is nothing incorrect in such a practice but it could pose problems during the execution of the Contract especially with respect to its interpretation.

At award, all information/ correspondence from the time of issue of ITT to the final letter of award as agreed should be incorporated into the Contract form by amending the relevant provisions that have been affected by such documents.]

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