Construction Law/Award Contract

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Expert: Peter M. Elliott - 6/14/2005


Question
I am in UAE,


Is this statment correct :
(The Contract shall be awarded to the successful tenderer who has  duly submitted a tender bond in thier name and signedto the form of tender )
this statment i find it in a draft copy in my company where I am checking the contract specifications.
my doubt is this statmrnt give an idea that any contractor will comply with this statment will get the job..may be all of them they will coverr this point?

what is the advicable statemnt for that?according to your opinion

thank you

Nouri Fouad Nouri

Answer
Hi Nouri,

The clause must be read in the context of the total document inviting tenders.  I assume that there is a clause defining the criteria for award such as the following:-

'The evaluation committee will select the tenderer who has submitted the lowest bid satisfying the administrative and technical criteria.'

Or

'The evaluation committee will select the tenderer who has submitted the most economically advantageous bid which satisfies the administrative and technical criteria.'

The phrase 'The most economically advantageous bid' is used when whole life costs are evaluated.

This clause probably reinforces the requirement that the successful tenderer must provide a tender bond AND must sign the tender form.  Many tenderers forget to provide a tender bond, or provide a non compliant one, or in haste forget to sign the tender form.  The clause is not good, but it is unlikely to cause problems.

If you want to look at the procedures for contracts funded by the European conditions, visit their web site http://europa.eu.int/comm/europeaid/tender/gestion/index_en.htm and then look at the web site http://europa.eu.int/comm/europeaid/tender/gestion/pg/index_en.htm for the annexes, which provide standard invitations to tenderers with the specific requirements for each tender.  The procedures have many inconsistencies and ambiguities, but they have been used for a lot of tenders.  

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Peter M. Elliott

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First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol www.eotprotocol.com before submitting a question.

Experience

Value . . .
It's unwise to pay too much, but it's unwise to pay too little. When you pay too much you lose a little money, that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing you bought it to do.
The common law of business balance prohibits paying a little and getting a lot. It can't be done. If you deal with the lowest bidder, it's well to add something for the risk you run.
And if you do that, you will have enough to pay for something better.
. . . John Ruskin (1819 - 1900)
"We are too poor to buy something cheap"
.Romanian Proverb 2002
A lean compromise is better than a fat lawsuit. George Herbert (English poet 1593-1633)
I said it in Hebrew, I said it in Dutch,
I said it in German and Greek:
But I wholly forgot (and it vexes me much)
That English is what you speak!" Hunting of the Snark - Lewis Caroll
Match your presentation to the reader!
The joy of food lasts but an hour, of sleep but a day, of a woman, but a month, but the joy of a building lasts a lifetime. Syrian proverb.
Comments and observations leading to improvements in the translation of FIDIC Red & Yellow books into Romanian prior to approval by FIDIC (reference 'Preface to the Romanian edition')

Organizations
Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

Education/Credentials
B Sc(Hons) in Civil Engineering

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