Construction Law/Query


QUESTION: "Dear Sir.
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 and like to response as follows para wise
1. the bidding has to be carried out as per document issued by the employer stating rules and procedures to submit a valid bid. The project value is not relevant to that extent and the bidding document issued has to be followed in letter and spirit. The value of project only comes into when the bidding document is under preparation by the employer and for smaller value projects he shortens the lengthy procedures followed otherwise.
2.Yes it is as this is the only way to compare in detail the differences in cost/rates of individual as well as cumulative  impact of individual rates offered by a bidder
3. Yes the requirements of bidding document has to be met along with its terms and conditions
4. I cannot answer this question adequately as i have not used MRS (Punjab) before but feel that contractor has to incorporate the best available material locally in his rates. Regarding work specification, you have to comply with the prescribed standards and constructions drawings issued to you from time to time if there are changes.
5. I would suggest the bidder should quote for individuals item preferably instead of giving a rebate on schedule item but you have to fill in rates as per requirement of the bidding document. I am sure a BOQ will be there unless it is a lump sum project
I hope i have answered your question and if not please come back with the specific point requiring further clarifications
Liaqat Hayat         

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

QUESTION: Thank You Sir

1.  I need further clarification about Q.01. How a Employer can shorten the Lengthy Procedure as he is bound to follow the PEC standard documents. I think He can't change GCC and PCC and we have to write all these secondly We can remove the appendices Like List of Sub contractors ,machinery etc. Am I right?
2.  Clarification about Q.05, Can't a bidder quote Rebate/Premium at the end of BOQ (Not individual Items)?

ANSWER: Dear Ahsan,
Thank you for your coming back with clarification needed against Q No.1 & 5. I have following to add to clarify the matter.
Q No.1: I am not saying that Employer can shorten the path in form of GCC and PCC but PCC has framed and shortened the small works document in such a way that only more relevant matters are contained there instead of details as for large civil works document. I will again say that bid document issued by the Employer has to be followed for all Appendices like list of sub-contractor etc. In standard document for larger civil engineering jobs, all these Appendices has to be attached as they are specified in the bid document.

Q No.5: To give a rebate/premium is entirely Contractor's own prerogative and can give rebate on one item or all items but in a clear and ambiguous manner.

Hope this answers your query.

Regards & Best wishes

Liaqat Hayat

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

QUESTION: Thanks a lot for your kind and quick help.

Sir, Would you please tell me ,What is retention money ,Its amount and any other detail about retention money?


Dear Ahsan,
Thank you for your another question and like to explain my view point as follows with a typical extract reproduced from Sub Clause 60.5 - Retention sum
"A retention amounting to 10 percent of the amount due, determined in accordance with the procedure set out in Sub clause 60.1(h) shall be made by the Engineer in the first and following interim payment cert, until the amount so retained reaches a limit of retention money as stated in the Appendix to tender (5% of contract sum). The contractor may, at his option, replace the retention amount with an unconditional bank guarantee from a bank acceptable by the Employer". The purpose of retention is to progressively deduct in cash from the interim payment certificates as contractor's deposit with the department to complete the assignment given to him. This is basically contractor's own money and released by employer  at two stages namely substantial completion and total completion after defect liability period is over. It acts as surety sum in cash apart from other sureties required under the contract. i hope this answers your question but you have to see your contract for similar provision
Liaqat Hayat  

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Liaqat Hayat


I can answer questions based on FIDIC 4 and FIDIC 1999 [design-build] with particular reference to time extension , price adjustment and disputes. I am in particular more inclined for response to points pertaining to how claims should be framed and put up in case of technical or other contractual shortcomings. Regarding procurement matters I have spent over 5 years as procurement specialist for highway authority and dealt with numerous claims and disputes in the capacity of "The Engineer" .

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