Construction Industry Development Board Act, 2000 (Act No. 38 of 2000)

Board Notices

Construction Procurement Best Practice

3. Uniformity and Efficacy of Procurement Documentation
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Procurement documents comprise those documents required to:

•solicit tender offers;
•prequalify tenderers so that they may be invited to tender; and
•establish the terms and conditions of the contract.

 

Uniformity in procurement documentation enables tenderers to more accurately price the risks, which they are to assume. It can enable the effectiveness and efficiency of procurement to be improved, promote savings in cost and an improvement in quality of procurement outcomes. It also facilitates effective participation by new entrants or emerging enterprises to the construction environment. Uniformity permits the documentation process to be simplified and computerized and provides a platform for the future introduction of eprocurement processes.

 

The two fundamental considerations in reducing the number of forms of contract in use in are:

•uniformity; and
•having documentation capable of catering for a wide range of client requirements.

 

The first stage in any initiative aimed at uniformity is to limit the choice of the forms of contract, based on an evaluation of the existing forms of contract against desirable and objective criteria, in a manner that ensure that clients are provided with a range of contracting and pricing strategies. Obviously, forms of contract which apply only to specific sub-sectors of the industry cannot be considered.

 

The second stage in any such initiative is to develop a common format for the compilation of procurement documents and to establish generic conditions of tender that establishes a tenderer’s obligations in submitting a tender and the employer’s undertakings in soliciting and evaluating tender offers. Similarly, standard conditions for the calling for expressions of interest are also desirable.

 

➢CIDB Construction Procurement Best Practice Guideline C1 (1009), Preparing procurement documents, establishes a standard structure for procurement documents and identifies desirable and appropriate forms of contract and component documents.
➢CIDB Construction Procurement Best Practice Guideline C2 (1010), Choosing an appropriate Form of Contract for Engineering and Construction Works Contracts, establishes desirable and appropriate methods for selecting an appropriate form of contract for a project or for use within an organization.