CHAPTER 6 TENDER PROCEDURE - CEDD - Home

1 Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 1 CHAPTER 6 TENDER PROCEDURE Rev Issue Date Amendment Incorporated First Issue October 2020 NA The parts of the PAH shown in blue and bold should only be updated by Works Branch of Development Bureau. Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 2 SYNOPSIS This CHAPTER sets out the procedures for obtaining and assessing tenders for all capital works contracts which are basically in accordance with Stores and Procurement Regulations (SPR). To cater for the wider adoption of New Engineering Contract (NEC) form in public works projects, DEVB has promulgated the Practice Notes for New Engineering Contract Engineering and Construction Contract (NEC ECC) for Public Works Projects in Hong Kong (referred to as the Practice Notes ) aiming to provide guidance, performance benchmarking and alignment of practices in the administration of public works projects using NEC form.

2 The most updated version of the Practice Notes is available at DEVB s website: Whilst the guidelines provided in this CHAPTER were originally written for TENDER PROCEDURE under GCC, the majority of them can still be applied to TENDER PROCEDURE under NEC and tenders for term and maintenance contracts subject to any modifications set out in CHAPTER 8 Maintenance and Minor Works and Works for and by Others . Where appropriate, this CHAPTER shall be read in conjunction with the Practice Notes for relevant subjects of TENDER PROCEDURE . In addition, project officers shall refer to the relevant guidelines or practice from corresponding Works Departments regarding how the duties of the Engineer / Architect / Surveyor / Supervising Officer under GCC form contracts would be taken up by the Project Manager / Supervisor under NEC form contracts. Please also refer to para. in this CHAPTER for the comparison of common terminologies used under GCC and NEC ECC.

3 In addition, these procedures apply to tenders for design and build contracts, subject to the modifications set out in the Administrative Procedures for Use with the Government of the Hong Kong Special Administrative Region (HKSAR) General Conditions of Contract for Design and Build Contracts, which can be found on the DEVB website (under Publications and Press Releases\Publications\Standard Contract Documents\). The additional procedures for procurement covered by the Agreement on Government Procurement of the World Trade Organization are also set out. Tenders for contracts may only be invited after obtaining authority, either by the inclusion of the project in Public Works Programme Category A or D, or by approval from the respective Policy Secretaries. The Secretary for Financial Services and the Treasury has delegated authorities to all Policy Secretaries to allow tenders for works projects, irrespective of type and value, to be invited before funding is secured subject to the conditions as set out in Financial Circular No.

4 3/2020. However, TENDER action is normally subject to the availability of funds and of land, and the completion of legal and administrative procedures. Tenders are normally invited from contractors in the appropriate categories and groups of Development Bureau Lists of Approved Contractors for Public Works or Approved Suppliers of Materials and Specialist Contractors for Public Works through notification in the Government of the HKSAR Gazette or through invitations published on the Internet. For occasions where the quality of service or product is a major consideration, a marking scheme in TENDER evaluation should be adopted. A separate exercise for prequalification of tenderers Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 3 should only be employed in exceptional situation with sound justifications. Minor services and stores are procured in accordance with SPR. Supply-only tenders are normally handled by the Government Logistics Department.

5 Government TENDER PROCEDURE is not required for Government works entrusted to non-government bodies, such as MTR Corporation Limited, who will themselves be responsible in accordance with their own TENDER PROCEDURE . Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 4 CONTENTS SYNOPSIS .. 2 CONTENTS .. 4 I. 9 II. GLOSSARY OF TERMS .. 12 1. TENDER PROCEDURE CHECKLIST .. 13 2. GENERAL .. 18 METHODS OF CALLING FOR TENDERS .. 18 For Contracts Generally .. 18 For Minor Services and Stores .. 19 For Supply-only Tenders .. 19 For Government Works Entrusted to Outside Bodies .. 19 Use of Marking Schemes in TENDER Evaluation .. 19 A Formula Approach to TENDER Evaluation .. 20 TENDER 20 DEVB LISTS OF APPROVED CONTRACTORS .. 21 TIMING FOR TENDER 21 3. PREREQUISITES TO CALLING FOR TENDERS .. 24 AUTHORITY TO CALL FOR TENDERS .. 24 AVAILABILITY OF FUNDS .. 24 AVAILABILITY OF LAND .. 24 LEGAL AND ADMINISTRATIVE 25 TENDER DOCUMENTS.

6 25 INTERFACING AND HANDOVER OF LAND .. 26 CONTRACTS ESTIMATED TO EXCEED 5,000,000 SPECIAL DRAWING RIGHTS .. 26 LANGUAGES TO BE USED FOR TENDER SUBMISSIONS .. 27 MINIMUM WAGE REQUIREMENTS .. 27 NOT USED .. 27 MAXIMUM NUMBER OF CONTRACTS TO BE UNDERTAKEN BY THE SAME 27 CONTROL OF OMITTED ITEMS AND SUBSTANTIAL CHANGES IN 27 4. TENDERING .. 30 NORMAL TENDERING .. 30 Eligible tenderers .. 30 TENDER Invitation .. 33 Issue of TENDER Documents .. 35 SINGLE AND RESTRICTED 37 PREQUALIFIED TENDERING .. 37 Conflict of Interest .. 38 Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 5 Representations at Pre-Contract Stage .. 38 5. ACTION DURING TENDER PERIOD .. 40 PRE- TENDER MEETING .. 40 TENDER ADDENDA .. 40 QUERIES FROM tenderers .. 42 SALE OF PLANS OR DRAWINGS TO tenderers .. 42 AMENDMENTS TO TENDER DESIGNS .. 43 LEGAL VETTING OF SUBSTANTIAL ALTERATION TO TENDER DOCUMENTS .. 43 EXTENSION OF TIME FOR 44 EXTENSION OF TENDER VALIDITY PERIOD.

7 45 6. EXAMINATION OF AND REPORT ON TENDERS .. 46 CONFIDENTIALITY OF TENDERS .. 46 OPENING AND LISTING OF TENDERS .. 47 ASSESSMENT PANEL .. 47 CONFLICT OF INTEREST .. 48 EXAMINATION OF ELECTRONIC SUBMISSION OF TENDER RETURNS ON REMOVABLE 49 COMPLIANCE WITH CONDITIONS OF TENDER .. 49 FOREIGN CURRENCY CONVERSION .. 51 EXAMINATION OF TENDER PRICES AND RATES .. 51 PROCEDURE AFTER CORRECTION OF ERRORS AND EXAMINATION OF RATES .. 52 TENDER QUALIFICATION .. 52 DESIGNS AND ALTERNATIVE DESIGNS BY tenderers .. 52 CONTRACTORS ELIGIBILITY TO TENDER .. 53 EFFECT OF INCIDENCE OF PAYMENTS .. 53 EVALUATION OF TENDERS .. 54 General .. 54 Methods of TENDER Evaluation .. 54 Technical Submissions .. 55 Other Checks to be carried out on Tenders .. 55 Unified Approach for Rounding Marks in TENDER Evaluation and Prequalification Exercises of Works Contracts .. 56 Eligibility to TENDER and for the Award of Contracts for Contractors and Specialist Contractors with Probationary Status.

8 56 TENDER RECOMMENDATIONS .. 56 NOT USED .. 57 TENDER NEGOTIATIONS .. 57 TENDER REPORT BY THE ENGINEER DESIGNATE .. 57 ENDORSEMENT OF TENDER 60 SUBMISSION OF TENDER REPORTS .. 61 REJECTION OF TENDER .. 62 7. ACCEPTANCE OF TENDER .. 65 Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev. 0) 6 AUTHORITY TO ACCEPT TENDER .. 65 CHECKS PRIOR TO ACCEPTING TENDER .. 65 Post TENDER Correspondence Prior to the Issue of the Letter of Acceptance .. 66 ACCEPTANCE OF TENDER .. 66 FEEDBACK AND DEBRIEFING TO unsuccessful tenderers .. 67 Notification .. 67 Debriefing .. 68 DISPOSAL OF unsuccessful TENDERS .. 68 AMENDMENTS AFTER THE ISSUE OF THE LETTER OF ACCEPTANCE .. 68 REPORTING OF TENDERING 69 8. ACTION PRIOR TO EXECUTION OF THE ARTICLES OF AGREEMENT .. 70 PREPARATION OF COPIES OF DOCUMENTS .. 70 Incorporation of Amendments and Post TENDER Correspondence into Formal Contract Documentation.

9 71 CHECKING OF COPIES OF DOCUMENTS .. 72 APPROVAL OF BONDSMAN .. 72 OTHER CHECKS PRIOR TO EXECUTING THE ARTICLES OF AGREEMENT .. 73 9. EXECUTION OF THE ARTICLES OF AGREEMENT .. 75 SIGNATORIES .. 75 SIGNING OF CONTRACT .. 76 RECEIPT FOR DOCUMENTS FROM CONTRACTOR .. 77 PUBLICITY FOR SIGNING CONTRACTS OF PUBLIC INTEREST .. 77 10. DISTRIBUTION OF CONTRACT DOCUMENTS .. 78 11. MISCELLANEOUS .. 80 NOMINATED SUB-CONTRACT .. 80 HANDLING OF COMPLAINTS .. 80 ACCESS TO TENDER INFORMATION .. 80 NOTICE TO TENDER BOARDS FOR DETAILS OF THE CONTRACT 80 NOTICE TO GOVERNMENT LOGISTICS DEPARMENT FOR DETAILS OF THE CONTRACT AWARDED .. 81 OBLIGATIONS OF DEPARTMENTS .. 81 CESSATION OF THE USE OF ELECTRONIC DATA .. 81 CONTRACT RATE DATABASE SYSTEM .. 82 12. REFERENCES .. 83 APPENDICES .. 88 APPENDIX CALLING FOR TENDERS - SAMPLE ROUTING SHEET .. 89 Project Administration Handbook for Civil Engineering Works 2020 Edition CHAPTER 6 (Rev.)

10 0) 7 APPENDIX SAMPLE TENDER NOTICE / NOTICE FOR PREQUALIFICATION FOR PUBLISHING ON THE INTERNET ON THE DEPARTMENT S HOME PAGE .. 94 APPENDIX MEMO REQUESTING PUBLICATION OF GAZETTE NOTICE FOR INVITATION TO TENDER .. 101 APPENDIX SPECIMEN GAZETTE NOTICE FOR PREQUALIFICATION OF tenderers .. 104 APPENDIX SPECIMEN GAZETTE TENDER NOTICES .. 109 APPENDIX SPECIMEN TENDER INVITATION LETTER FOR SELECTIVE TENDERING .. 115 APPENDIX DRAFT PRESS RELEASE FOR GAZETTE NOTIFICATION .. 117 APPENDIX GUIDANCE NOTES FOR PREPARATION OF DOCUMENTS FOR GAZETTE NOTIFICATION AND DRAFT PRESS RELEASE .. 119 APPENDIX SINGLE AND RESTRICTED TENDERING LETTER OF INVITATION TO TENDER .. 125 APPENDIX SAMPLE LETTER FOR TENDER ADDENDUM .. 127 APPENDIX THE ENGINEER FOR CONTRACTS .. 131 APPENDIX SAMPLE LETTER NOTIFYING tenderers FOR EXTENSION OF TENDER PERIOD.