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Unpriced & Contractual evaluation

The review of Tenderer’s exceptions and deviations to Client terms and conditions, if any, and ensuring that the Tenderers in the end, do not have any exceptions or deviations and that they are resolved to the satisfaction of both parties prior to the opening of price Tenders is known as Contractual evaluation.

While commercial deviations are dealt with by the Contracts Engineer, fundamental deviations related to legal, tax, insurances should be referred to the appropriate authority.

Contractual evaluation is a challenging responsibility and the Contracts Engineer is expected to have a full understanding of corporate policies and stated positions on issues such as: indemnities, liabilities, obligations of parties, insurances, taxes, laws, penalties/liquidated damages, disputes resolution, financial authority limits and any other issues that could influence the outcome of the evaluation.

In most instances deviations to Client’ fundamental conditions are generally not subject to negotiations and, any rigid insistence by Tenderers to their positions could invite disqualification.

Only when all qualifications have either been eliminated or distilled into clearly understood and agreed amendments to the proposed draft Contract, can the contractual evaluation be considered complete. This should be by means of a report to the User department, setting out the acceptability or otherwise of any qualifications received.

However, prior to making any decision on rejection of a Tender on grounds of Contractual noncompliance, Tenderers should be afforded a chance to withdraw their qualifications and submit an associated commercial price impact in a sealed envelop clearly marked as “Commercial impact of contractual clarification”.

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