Construction Law/Query


You are requested to kindly clarify

1.  Is it necessary to incorporate all  items as per instruction of PEC( For Project worth less than 25 Million) OR we can remove  some thing .

2.  Is Comparative statement necessary to evaluate the lowest bidder? OR what is the right way evaluates the lowest bidder?
3.  If we want to get complete a project worth Rs. 600000/-(Six Lacs), All requirements of PEC for Tender Documents( Like Large Project) are necessary to compile OR not.
4.  in case of using MRS (Punjab) , how can we compile specifications?
5.  If we want to get execute a project as per MRS (Punjab) and we make BOQ using MRS, A contractor would quote the rate of individual Item OR just as Rebate, Premium (On schedule Items) ?

Best Regards

ANSWER: Dear Ahsan

Thank you for your question. I will try to answer each question as follows:

1) Projects costing less than Rs 25 million are considered small projects and although PEC recommends to follow its instructions but these are not mandatory. You can incorporate certain changes but not to the extent that the spirit of the contract is changed.

2) Comparative statement is one major factor in finding the lowest bid. The purpose of the evaluation is to find out the lowest evaluated bid which is more favourable to the Client and the Project. In evaluating bids, the responsiveness is checked first. The  responsive bids are then evaluated further. the comparative statement helps in finding out whether the lowest evaluated bid is front loaded or not and whether it contains prices which are either very high or not workable. Only this way one can seek clarifications from the lowest bidder and after being satisfied, can recommend him as the lowest evaluated bidder with certain conditions if required to be fulfilled by the lowest bidder. However I will always advise to follow the instructions to Bidders where the procedure for evaluation of bids is given.

3) A project with cost equal to Rs. six lacs is a very small project and I think that the procedure can be simplified but it all depends on the nature of the project.

4) For items of MRS the 'Specifications for Execution of Works' Govt. of Punjab 1979 are applicable. For Non MRS items the specifications are to be provided.

5) Both ways are acceptable. If you provide the estimate to the Bidders then they will enter the premium only but if you supply the BOQ then they will enter the rates. For Non MRS rates prices will be entered.

I hope the question is answered.


Abdul Majid Khan   

---------- FOLLOW-UP ----------

QUESTION: Thank You Sir,

Kindly elaborate further ,
As MRS provides the rate of items and understood , the bidder will definitely
know the rates as per MRS then a Employer either provide OR not the rates, I think it is understood that bidder knows the rate.What you say, Is it necessary to provide estimated OR blank BOQ to bidder?
Secondly  "Specifications for Execution of Works' Govt. of Punjab 1979" are available now a days OR not.

Thanks again.

Dear Ahsan

Thanks for the follow up. If the Employer wants a premium on MRS rates then he has to provide the Estimate to the Bidders. The reason is that sometimes a single item is not mentioned in the BOQ; rather more than one items are merged together to make one item of the BOQ and the Employer is also required to provide the break up of the BOQ item by stating which items in the MRS are used. The second reason for providing the Estimate is that while preparing the MRS, the pricing of certain items have been made using very low rates from the market while others are priced using fare market rates. this has not been done by design but such things happen whenever one prepares such rates as collection of fare market rates are always a very tedious exercise. The bidders know such items and therefore would quote a less premium for fare rate items while they will bid higher premium for other items. You must have listened from the contractors that such and such rates in the MRS are favourable while the others are not. By providing a detailed estimate, the bidders will quote the right premium suitable for the all items. The blank BOQ will not work. However for very small works quotations are invited on the basis of premium on MRS rates as for such works the BOQ is generally not finalized before inviting quotations.

The specifications for Execution of Works was available in the Government of Punjab press near Urdu Bazar, Lahore. I had purchased a copy a few years ago. I do not know whether it is still available. You may obtain information from a provincial government employee in any engineering department like C&W, Irrigation, or Public Health Engineering Deparmentetc

I hope this answers your question.

Regards, Abdul Majid Khan  

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Abdul Majid Khan


I am interested in questions related to time Extension, Liquidated Damages,variations, price adjustments,payments, disputes and Dispute Board under FIDIC IV, FIDIC 1999 and FIDIC 2006 Harmonized Documents.


I have been heading the Construction Management Division and Contract Divisions of National Engineering Services Pakistan (PVT) Limited, NESPAK, the largest Consulting Engineering Firm in Pakistan, for more than seven years and two years respectively. I have also worked as "The Engineer" on a number of projects. I have been working in Saudi Arabia for about seven years on a road projects. Additionally I worked as Arbitrator and am member of few Dispute Boards in individual capacity on Asian Development Bank funded projects.

Inland and in Middle East. I have worked with National Engineering Services Pakistan (Pvt) Limited (NESPAK)as my Employer for more than 27 years in Pakistan. In Saudi Arabia I worked for Rashid Engineering, Consulting Engineers during 80s. After retirement I provided advisory services to NESPAK on technical and contractual matters to its various divisions and lately I was appointed as Advisor to Managing Director NESPAK on Technical and Contractual matters. Currently I work as Free Lance Contract Specialist on Fidic Form of Contracts.

I am a graduate with a B.E (Civil Engineering) degree. My year of graduation is 1970.

Awards and Honors
A few appreciation Letters and Honorariums during my service in NESPAK. I remained member of Administrative Committee and Board of Management of NESPAK. I had been part of the Management Committee in the absence of Managing Director.

Past/Present Clients
Most of the Clients used to be Government Departments, Corporations and Authorities. In Saudi Arabia the Client was Ministry of Communications. As Arbitrator and Dispute Board (DB) member, I provide services to various Government Departments and Contractors.

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