Board Notices > Revised Standard for Uniformity in Construction Procurement

4.1

General

Construction procurement shall be undertaken in accordance with:

a)	the provisions of legislation regulating procurement; and

b)	the ClDB Code of Conduct for all parties engaged in Construction Procurement published in terms of section 5(4) of the Construction Industry Development Board Act.

4.2	Solicitation of tender offers

4.2.1

General

4.2.1.1

Tender offers shall be solicited using one of the standard procurement procedures and tender evaluation methods described in Tables 1 and 2, respectively.

Table 1: Standard Procurement Procedures

Procedure			Description
PP1	Negotiation procedure		A tender offer is solicited from a single tenderer.
PP2	Competitive selection procedure		Any procurement procedure in which the contract is normally awarded to the contractor who submits the lowest financial offer or obtains the highest number of tender evaluation points.
	PP2A	Nominated procedure	Tenderers that satisfy prescribed criteria are admitted to an electronic data base. Tenderers are invited to submit tender offers based on search criteria and their position on the data base. Tenderers are repositioned on the data base upon appointment or upon the submission of a tender offer.
	PP2B	Open procedure	Tenderers may submit tender offers in response to an advertisement by the organization to do so.
	PP2C	Qualified procedure	A call for expressions of interest is advertised and thereafter only those tenderers who have expressed interest, satisfy objective criteria and who are selected to submit tender offers, are invited to do so.
	PP2D	Quotation procedure	Tender offers are solicited from not less than three tenders in any manner the organization chooses, subject to the procedures being fair, equitable, transparent, competitive and cost-effective.
	PP2E	Proposal procedure using the two-envelope system	Tenderers submit technical and financial proposals in two envelopes. The financial proposal is only opened should the technical proposal be found to be acceptable.
	PP2F	Proposal procedure using the two-stage system	Non-financial proposal are called for. Tender offers are then invited from those tenderers that submit acceptable proposals based on revised procurement documents. Alternatively, a contract is negotiated with the tenderer scoring the highest number of evaluation points.
	PP2G	Shopping procedure	Written or verbal offers are solicited in respect of readily available goods obtained from three sources. The supplies are purchased from the source providing the lowest price once it is confirmed in writing.
PP3	Competitive negotiation procedure		A procurement procedure which reduces the number of tenderers competing for the contract through a series of negotiations until the remaining tenderers are invited to submit final offers. (See 4.2.4 to 4.2.7)
	PP3A	Restricted competitive negotiations	A call for expressions of interest is advertised and thereafter only those tenderers who have expressed interest, satisfy objective criteria and who are selected to submit tender offers, are invited to do so. The employer evaluates the offers and determines who may enter into competitive negotiations.
	PP3B	Open competitive negotiations	Tenderers may submit tender offers in response to an advertisement by the organization to do so. The employer evaluates the offers and determines who may enter into competitive negotiations.

Note:

1.	SANS 294, Construction Procurement Processes, Procedures and Methods provides guidelines for the procedures contained in Tables 1 and 2.

2.	ClDB Best Practice Guideline A3 (1003), Evaluating tender offers, provides comprehensive guidance on the evaluation of tender offers and contains pro forma forms to evaluate tender offers and an example of a tender evaluation report.

Table 2: Standard Tender Evaluation Methods

Method

Description

Method 1:

Financial offer

1)	Rank tender offersfrm the most favourabie to the least favourable comparative offer.

2)	Recommend highest ranked tenderer for the award of the contract, unless there are compelling and justifiable reasons not to do so.

Method 2:

Financial offer and preferences

1)	Score tender evaluation points for financial offer.

2)	Confirm that tenderers are eligible for the preferences claimed and if so, score tender evaluation points for preferencing.

3)	Calculate total tender evaluation points.

4)	Rank tender offers from the highest number of tender evaluation points to the lowest.

5)	Recommend tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

Method 3:

Financial offer and quality

1)	Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the Tender data.

2)	Score tender evaluation points for financial offer.

3)	Calculate total tender evaluation points.

4)	Rank tender offers from the highest number of tender evaluation points to the lowest.

5)	Recommend tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

Method 4:

Financial offer, quality and preferences

1)	Score quality, rejecting all tender offers that fail to score the minimum number of points for quality stated in the Tender data.

2)	Score tender evaluation points for financial offer.

3)	Confirm that tenderers are eligible for the preferences claimed, and if so, score tender evaluation points for preferencing.

4)	Calculate total tender evaluation points.

5)	Rank tender offers from the highest number of tender evaluation points to the lowest.

6)	Recommend tenderer with the highest number of tender evaluation points for the award of the contract, unless there are compelling and justifiable reasons not to do so.

4.2.1.2

As a general rule, engineering and construction works, supplies and services other than professional services shall be solicited using a standard method in accordance with the provisions of Table 3.

4.2.1.3

Professional services in construction shall be solicited using a standard method in accordance with the provisions of Table 4.

4.2.1.4

Advertisements for tenderers to submit tender offers in respect of engineering and construction works contracts, shall be placed on the ClDB web site using the CIDB's i-Tender@cidb service at least 10 working days before the closing date for tenders and at least 5 working days before any compulsory site meeting.

4.2.1.5

Advertisements for the submission of expressions of interest in respect of engineering and construction works contracts in terms of the P4 Qualified Procedure shall be placed on the ClDB web site using the CIDB's i-Tender@cidb service at least 10 working days before the closing date for submissions of interest and at least 5 working days before any compulsory clarification meeting.

Table 3: Standard methods for procuring different classes of construction contracts

Category of contract	Type of procurement	Standard Procurement Procedure and Evaluation Method*
Engineering and construction works	Design by employer (normal)**	PP2B Open Procedure with Method 1 or Method 2
	Design and build/develop and construct	PP2E Proposal Procedure using two-stage system with Method 1, 2,3 or 4; PP2C Qualified Procedure with Method 1 or 2 and eligibility criteria framed around the attainment of a minimum quality score or requirements; or PP2C Qualified Procedure with Method 3 or 4 PP3A Restricted Competitive Negotiation Procedure PP3B Open Competitive Negotiation Procedure
	Management contractor/Construction Management
	Works which require exceptional quality or where it is desirable to invite a limited number of tenders who are of a similar capability and size
	Very low value works	PP1 Negotiation Procedure with Method 1
	Value below a threshold	PP2D Quotation Procedure with Method 1, 2, 3 or 4.
	The works are largely identical to works previously executed and it is not in the organisation's interest to solicit other offers or cannot be technically or economically separated from a previous contract	PP1 Negotiation Procedure with Method 1
	Simple works designed by the employer where the value of the contract, inclusive of Value Added Tax is not more than R 500 000.	PP2A Nominated Procedure with Method 1 or Method 2
Supply	Very low value below a threshold for the purchase of readily available goods	PP2G Shopping Procedure with Method 1
	Value below a threshold	PP2D Quotation Procedure with Method 1 or 2
	Normal	PP2B Open Procedure with Method 1 or 2
	Goods which require exceptional quality or where it is desirable to invite a limited number of tenderers who are of a similar capability and size	PP2C Qualified Procedure with Method 1 or 2 and eligibility criteria framed around minimum quality requirements Procedure PP3A Restricted Competitive Negotiation PP3B Open Competitive Negotiation Procedure
	Only one supplier has the required product or the goods cannot be separated from a previous contract	PP1 Negotiated Procedure with Method 1
	Relatively low value goods which are readily available and which are frequently required where the value of the contract, inclusive of Value Added Tax is not more than R 500 000.	PP2A Nominated Procedure with Method 1 or Method 2
Services other than professional services	Value below a threshold	PP2D Quotation Procedure with Method 1 or 2
	Normal	PP2B Open Procedure with Method 1 or 2
	Services which require exceptional quality or where it is desirable to invite a limited number of tenderers who are of a similar capability and size	PP2C Qualified Procedure with Method 1 or 2 and eligibility criteria framed around minimum quality requirements PP3A Restricted Competitive Negotiation Procedure PP3B Open Competitive Negotiation Procedure
	Only one service provider has the required product or the goods cannot be separated from another previous contract	PP1 Negotiation Procedure with Method 1
	Relatively low value services which are readily available and which are frequently required where the value of the contract, inclusive of Value Added Tax is not more than R 500 000.	PP2A Nominated Procedure with Method 1 or Method 2
* Refer to Table 1 for descriptions of Procedures and Table 2 for descriptions of Methods. ** This contracting strategy is fully described in the SAlCE Practice Manual 2, Delivering construction projects using the design by employer contracting strategy and the ClDB Best Practice Guideline A5 (1005), Managing Construction Procurement Risks.

Table 4: Standard methods for procuring professional services

Type of procurement	Standard Procurement Procedure and Evaluation Method*
In most cases, except in the case of complex or highly specialised assignments or those that invite innovations on the basis of quality alone.	PP2A Nominated Procedure which identifies a short list of not less than 5 tenderers to submit tenders, PP2B Open, PP2C Qualified or PP2D Quotation Procedure; or PP2E Proposal Procedure using the two envelope system with either: Methods 3 or 4; or Methods 1 and 2 with eligibility criteria framed around the attainment of a minimum quality score or quality related requirements
A complex or highly specialised assignment, for which it is difficult to define the precise scope of work and tenderers are expected to demonstrate innovation in their proposals or An assignment that has a high downstream impact and requires the best available experts or An assignment could be carried out in substantially different ways, hence proposals will not be comparable.	PP2B Open or PP2E Proposal Procedure using the two envelope system with either Method 3 or 4; PP2F Proposal Procedure using the two stage tendering system with Method 1 or 2 and eligibility criteria framed around the rejection of unacceptable proposals and quality related requirements; or PP2F Proposal Procedure using the two stage tendering system with Method 3 or 4. PP3A Restricted Competitive Negotiation Procedure PP3B Open Competitive Negotiation Procedure
A standard or routine assignment where well established practices and standards exist and in which the contract amount is small.	PP2E Proposal Procedure using the two envelope system with Method 1 or 2 and eligibility criteria framed around minimum quality related requirements
An assignment that represents a natural continuation of previous work carried out by the firm. A rapid selection is essential (eg in an emergency operation). A very small assignment An assignment where only one firm is qualified or has the experience of exceptional worth for the assignment.	PP1 Negotiated Procedure with Method 1
Value below a threshold	PP2D Quotation Procedure with Method 1 or Method 2. PP2A Nominated Procedure which identifies a short list of not less than 3 tenderers to submit tenders
A relatively small assignment which does not justify the preparation and evaluation of competitive proposals.	PP2A Nominated Procedure to nominate a sole tenderer.
A simple assignment which is precisely defined and the budget fixed.	PP2F Proposal Procedure using the two stage tendering system with Method 3 or 4.

* Refer to Table 1 for descriptions of Procurement Procedures and Table 2 for descriptions of Tender Evaluation Methods.

Note:

ClDB Best Practice Guideline A7 (1035), The Procurement of Professional Services, provides comprehensive guidance on the procurement of professional services.

4.2.1.6

The scope of work, terms and conditions and prices that are negotiated in the negotiation procedure, the proposal procedure using the two-stage system or the competitive negotiation procedure shall be in the best interests of the employer. Minutes of such negotiations and the reasons for pursuing such procedures shall be kept for record and audit purposes.

4.2.2

Competitive negotiation procedures

4.2.2.1

The competitive negotiation procedures shall be used to negotiate with a number of responsive and qualified tenderers in order to arrive at the most advantageous offer in terms of one of the methods for the evaluation of tenders as described in Table 2.

4.2.2.2

The organisation shall negotiate with responsive and qualified tenderers when using the competitive negotiation procedures through one or more rounds of competitive negotiations, based on their rankings or the number of tender evaluation points, until the remaining tenderers are invited to submit final offers. During such negotiations, organizations:

a)	shall ensure equal treatment of all tenderers and not provide any requirements, criteria, guidelines, documents, clarification or other information relative to the negotiations in a discriminatory manner which may give some tenderers an advantage over others;

b)	may provide for this negotiated procedure to take place in successive stages in order to reduce the number of tenders to be negotiated with, by applying the evaluation criteria disclosed in the procurement documents that are issued to tenderers;

c)	may not reveal to the other participants solutions proposed or other confidential information communicated by a tenderer participating in the process without that tenderer's agreement;

d)	may request that tender offers be clarified, specified and fine-tuned provided that such clarification, specification, fine-tuning or additional information does not:

i)	involve changes to the basic features of the tender process or the tender data; or

ii)	alter any fundamental aspects of the offers or impose substantial new requirements which restrict or distort competition or have a discriminatory effect on the tender process; and

e)	shall close the negotiation with tenderers when a solution or solutions which are capable of meeting its needs are identified, inform the tenderers accordingly and call for best and final offers.

4.2.2.3

Tenderers shall be informed of the competitive negotiation process and notified of the evaluation criteria and associated weightings in the tender data. The evaluation criteria associated with each successive round of negotiations shall not be varied. Tenderers shall be notified in advance of the weighting attached to each category or subcategory of evaluation criteria whenever another round of offers is called for.

Note: The competitive negotiation procedure provided in Annex F should only be used where interactions with the tenderers are essential to refine aspects of the proposed approach to the contract, the contract data or scope of work in order to arrive at a best value outcome.

4.3	Quality (functionality)

4.3.1

The manner in which quality is to be ensured in the work shall be incorporated in procurement documents using one of more of the following methods:

a)	the full and unambiguous specification of requirements in the scope of work;

b)	taking cognizance of whole-life costing in the financial evaluation of tender offers;

c)	where exceptional quality is required, making use of the qualified procurement procedure and ensuring that respondents who are invited to submit tender offers are suitably qualified to do so;

d)	requiring tenderers to submit plans for monitoring and applying quality management principles in the performance of their contracts;

e)	introducing quality into the eligibility criteria;

f)	establishing a category of preference for quality in the evaluation of tenders; or

g)	evaluating selected quality criteria as an integral part of the tender offer.

Note:

Further guidance on the incorporation of quality in procurement documents may be found in SANS 294, Construction procurement processes, procedures and methods and ClDB Best Practice Guideline A4, Evaluating Quality in Tender Submissions (1004).

4.3.2

Quality criteria used in the evaluation of tender offers shall form an integral part of the tender offer and hence the outcome of the procurement. Such criteria shall:

a)	relate directly to the goods, services or engineering and construction works that are being procured and to matters that cannot directly be expressed in monetary terms;

b)	be justifiable in terms of projected procurement outcomes;

c)	enable the most economically advantageous offer to be established; and

d)	to the extent practicable, be objective and quantifiable.

4.3.3

Quality criteria used in terms of 4.3.2 may include criteria such as:

a)	technical merit;

b)	response to (ability to relate to) the proposed scope of worldproject design;

c)	aesthetic and functional characteristics;

d)	safety and environmental characteristics;

e)	quality control practices and procedures which ensure compliance with stated employer's requirements;

f)	reliability;

g)	durability;

h)	organization, logistics and support resources relevant to the scope of work;

i)	qualifications and demonstrated experience of the key staff (assigned personnel) in relation to the scope of work;

j)	demonstrated experience of tendering entity with respect to specific aspects of the project/comparable projects;

k)	running costs;

l)	after-sales service and technical assistance;

m)	delivery date; and

n)	delivery period or period of completion.

4.3.4

Quality criteria shall not include:

a)	social considerations, such as the composition of workforces in terms of race, gender or disability; or

b)	matters relating to the basic capability or capacity of the tendering entity to execute the contract.

4.3.5

Where quality is evaluated, at least three persons who are fully conversant with the technical aspects of the procurement shall undertake such evaluation. Quality shall be scored in terms of the prompts for judgement with fixed scores assigned to each prompt, either individually and averaged or collectively, as appropriate.

4.3.6

To ensure consistency in scoring, members of the evaluation panel shall be provided with prompts for judgments or qualitative indicators relating to all quality criteria and any subcriteria that are linked to a specific score. Such prompts shall be communicated to respondents or tenderers in procurement documents. The rating of submissions shall be based on the information submitted or, where relevant, from interviews, and not on mere speculation or suspicion or the personal knowledge of a panel member.

4.3.7

The scoring of interviews shall not form a substantive portion of the overall scoring for quality.

4.4	Procurement documents

Note:

Comprehensive guidance on the preparation of procurement documents in accordance with the provisions of this clause may be found in the following publications:

•	ClBD Best Practice Guideline A5 (1 005), Managing Construction Procurement Risks

•	ClDB Best Practice Guideline C1 (1009), Preparing Procurement Documents;

•	SANS 294, Construction Procurement Processes, Procedures and Methods

•	SANS 1 0403, Formatting and Compilation of Construction Procurement Documents;

•	SAlCE Practice Manual 1, The use of South African National Standards in Construction Procurement;

4.4.1

General

4.4.1.1

Construction procurement documents for engineering and construction works, services and goods shall be formatted and compiled under the headings contained in:

a)	Table 5 when calling for expressions of interest; and

b)	Table 6 where tenders are invited using a three volume approach of Table 7 where a single volume approach is adopted.

Table 5: Documents that relate to a call for expressions of interest

Contents
Number	Heading
Part E1: Submission procedures
E1.1	Notice and invitation
E1.2	Submission data
Part E2: Returnable documents
E2.1	List of returnable documents
E2.2	Submission schedules
Part E3: Indicative scope of work (where appropriate)
E3	Indicative scope of work

Table 6: Standard headings and sequencing of documents when soliciting tenders where a three volume approach is adopted

Volume	Contents
	Number	Heading
Volume 1	TENDERING PROCEDURES
	T1.1	Tender notice and invitation to tender
	T1.2	Tender date
Volume 2	RETURNABLE DOCUMENTS
	T2.1	List of Returnable Documents
	C1.1	Form of offer and acceptance
	C1.2	Contract data (part 2: data provided by the contractor)
	C2.2	Activity Schedule or Bills of Quantities
	T2.2	Returnable schedules
Volume 3	DRAFT CONTRACT
	Part C1: Agreement and Contract Data
	C1.2	Contract Data (Part 1:Data provided by the employer)
	Part C2: Pricing data
	C2.1	Pricing Assumptions
	Part C3: Scope of Work
	C3	Scope of Work
	Part C4: Site Information (engineering and construction works contracts only)
	C4	Site Information

4.4.1.2

The contract arising from the solicitation of tender offers using a three volume approach or the Negotiated Procedure shall be formatted and compiled under the headings contained in Table 7.

4.4.1.3

The Tender Notice and lnvitation to Tender shall, as a minimum, contain the wording provided in Annex B.

4.4.1.4

The Form of Offer and Acceptance with a schedule of deviations provided in Annex C shall be used with minimal contract specific amendments to form the basis of agreements arising from the solicitation of tender offers.

4.4.1.5

The Notice and lnvitation to submit an Expression of Interest shall, as a minimum, contain the wording provided in Annex J.

4.4.1.6

The Record of Addenda to Tender Documents and the Compulsory Enterprise Questionnaire contained in Annexes K and L, respectively, shall form part of the Returnable Documents in all procurement documents issued by organs of state.

Note:

Annex L is intended to indicate to the employer whether further information should be obtained to establish whether a conflict of interest exists. It also provides information about the tendering entity

Table 7: Standard headings and sequencing of documents when soliciting tenders where a single volume approach is adopted

Contents
Number	Heading
TENDER
Part T1: Tendering procedures
T1.1	Tender notice and invitation to tender
T1.2	Tender Date
Part T2: Returnable documents
T2.1	List of Returnable Documents
T2.2	Returnable schedules
CONTRACT
Part C1: Agreement and Contract Date
C1.1	Form of Offer and Acceptance
C1.2	Contract Data
Part C2: Pricing data
C2.1	Pricing Assumptions
C2.2	Activity Schedule or Bills of Quantities
Part C3: Scope of Work
C3	Scope of Work
Part C4: Site Information (engineering and construction works contracts only)
C4	Site Information

Table 8: Standard headings and sequencing of documents in the contract

Contents
Number	Heading
PartC1: Agreements and contract date
C1.1	Form of Offer and Acceptance
C1.2	Contract Data
Part C2: Pricing data
C2.1	Pricing Assumptions
C2.2	Activity Schedule or Bills of Quantities
Part C3: Scope of Work
C3	Scope of Work
Part C4: Site Information (engineering and construction works contracts only)
C4	Site Information

4.4.2

Preferencing schedules

Preferencing schedules relating to the targeting of enterprises and targeted labour shall not differ substantially from the samples provided in Annexes D and E. These returnable schedules shall, if applicable to the contract, be incorporated in the scope of work when the contract is compiled where a three volume approach in the solicitation of tender offers is adopted.

Note:

The following documents provide comprehensive guidance on implementing preferential procurement policies:

•	ClDB Best Practice Guideline 61 (1007), Formulating and lmplementing Preferential Procurement Policies

•	ClDB Best Practice Guideline 82 (1008), Methods and Procedures for lmplementing Preferential Procurement Policies

•	ClDB Best Practice Guideline D2 (1 01 3), Joint Venture Arrangements

•	SANS 294, Construction procurement processes, methods and procedures.

•	SAlCE Practice Manual 1, The use of South African National Standards in Construction Procurement

4.4.3

Tender Data

4.4.3.1

The Tender Data shall reference the Standard Conditions of Tender contained in Annex F.

Note:

Annex E of SANS 294, Construction Procurement Processes, Procedures and Methods, provides comprehensive guidance on the compilation of Tender Data.

4.4.3.2

The tender offer validity period provided for in the Tender Data shall generally not exceed eight weeks and in exceptional circumstances, not exceed 12 weeks.

4.4.3.3

The Tender Data associated with a Standard Tender Evaluation Method shall reference the method to be used and, in the case of a public tender, contain at least the following wording:

Method 1 : Financial offer

Clause number (refer to Annex F)
F.3.11	The procedure for the evaluation of responsive tenders is Method 1

Method 2: Financial offer and preferences

Clause number (refer to Annex F)

F.3.11

The procedure for the evaluation of responsive tenders is Method 2

The financial offer will be scored using Formula 1 /2* (option 1) where the value of W1 is 80/90**

* Delete reference to formula that is not applicable

** Delete inappropriate value in accordance with the Regulations issued in terms of the Preferential Procurement Policy Framework Act.

Method 3: Financial offer and quality

Clause number (refer to Annex F)

F.3.11

The procedure for the evaluation of responsive tenders is Method 3

The value of W2 is ……..*

The score for financial offer is calculated using Formula 1/2** (option 1/2**) where W1 is the percentage score given to financial offer and equals 100minus W2

* Insert percentage

** Delete reference to formula and option that is not applicable

Method 4: Financial offer, quality and preferences

Clause number (refer to Annex F)

F.3.11

The procedure for the evaluation of responsive tenders is Method 4

The value for W2 is ___*

The score for financial offer is calculated using Formula 1/2** (option 2) where W1 is the percentage score given to financial offer and equals 100 minus W2:

The score for quality and financial offer is to be combined, before the addition of the score for preference, as follows:

Wc = W3 x (1+(S-Sm))

Where W3 is the number of tender evaluation points for quality and financial offer and equals 80/90***

S is the sum of score for quality and financial offer of the submission under consideration

Sm is sum of the score for quality and financial offer of the submission scoring the highest number of points

* Insert percentage

** Delete inappropriate value in accordance with the Regulations issued in terms of the Preferential Procurement Policy Framework Act.

***Delete inappropriate value in accordance with the Regulations issued in terms of the Preferential Procurement Policy Framework Act.

4.4.4

Contract data

4.4.4.1

The contract data in respect of prime or main contracts must reference one of the following standard industry forms of contract unless the publishers of such forms of contract indicate that such a form of contract is not suited for the intended application:

a)	engineering and construction works contract;

i)	General Conditions of Contract for Construction Works;

ii)	Conditions of Contract for Construction, Conditions of Contract for Plant and Design-Build, Conditions of Contract for FlDlC EPC/Turnkey Projects, Conditions of Contract for Design, Build and Operate Projects or Short Form of Contract;

iii)	JBCC series 2000 Principal Building Agreement or Minor Works Agreement; or

iv)	NEC3 Engineering and Construction Short Contract or NEC3 Engineering and Construction Contract.

b)	services contract (professional);

i)	ClDB Standard Professional Services Contract; or

ii)	NEC3 Professional Services Contract.

c)	services contract (facilities);

i)	NEC3 Term Services Contract and the NEC3 Term Services Short Contract;

ii)	CIDB General Conditions of Service-1.

d)	supply contract;

i)	ClDB General conditions of purchase or the CIDB Contract for the Supply and Delivery of Goods; or

ii)	NEC3 Supply Contract or NEC3 Supply Short Contract.

Note:

1.	Guidance on the selection of an appropriate form of contract is provided in ClDB Best Practice Guideline C1 (1009), Preparing Procurement Documents, and ClDB Best Practice Guideline C2 (1010), Choosing an appropriate Form of Contract for Engineering and Construction Works.

2.	The ClDB Best Practice Guideline C3 (1011), Adjudication, provides guidance on how adjudication should be dealt with in Contract Data.

3.	The SAICE Practice Manual 2, Delivering construction projects using the design by employer contracting strategy, provides information on the administration of design by employer contracts in accordance with the provisions of the GCC, JBCC, FlDlC and NEC forms of contract.

4.4.4.2

The standard industry forms of contract listed in 4.4.4.1 shall be used with minimal project specific variations and additions which do not change their intended usage.

4.4.4.3

Guarantees of an insurance company or bank required in engineering and construction contracts shall not substantially differ from the samples provided by the drafters of the forms of contract listed in 4.4.4.1 a). Such guarantees shall not normally exceed 10% of the contract price or, in the case of a variable guarantee, 12,5%.

4.4.4.4

Retention monies that are held shall not exceed 10,0% of any amount due to a contractor. Where guarantees of an insurance company or bank that are provided are equal to or greater than 10% of the contract price, the total amount of retention monies held shall not exceed 5% of the contract price.

4.4.5

Submission Data

4.4.5.1

The Submission Data shall reference the Standard Conditions for the Calling for Expressions of Interest contained in Annex H.

Note:

Annex G of SANS 294, Construction Procurement Processes, Procedures and Methods, provides comprehensive guidance on the compilation of Submission Data where the Standard Conditions for the Calling for Expressions of lnterest are adopted.

4.4.5.2

The Submission Data in all contracts other than engineering and construction works contracts where the register of contractors is applied may include the following:

Clause number (refer to Annex H)
H.2.11	The respondent is required to submit with his expression of interest an original valid Tax Clearance Certificate issued by the South African Revenue Services.

4.4.6

Subcontracting arrangements

Where it is desirable that an employer and a contractor jointly select a subcontractor, the manner in which this is to be done shall be described in the Scope of Work in accordance with the provisions of Annex I.

Note:

The ClDB Best Practice Guideline Dl (1012), Subcontracting Arrangements, provides guidance on the selection of a suitable forms of subcontracts.

4.4.7

Scope of work

4.4.7.1

The scope of work shall, wherever possible be:

a)	described in terms of performance rather than the design or descriptive characteristics, and

b)	based on national or international standards, where such exist.

4.4.7.2

Requirements in the form of specifications, plans, drawings, designs, testing and test methods, packaging, marking or labelling or conformity certification shall not create trade barriers. Reference to any particular trademark, name, patent, design, type, specific origin or producer shall not be made, unless there is no other sufficiently precise or intelligible way of describing the characteristics of the work. Such reference shall be accompanied by the words "or equivalent".

4.5	Applying the ClDB register of contractors to public contracts

Note:

ClDB Best Practice Guideline A6 (1006), Applying the Registers to Construction Procurement, provides comprehensive guidance to employers and their agents to comply with the requirements of the Construction industry Development Regulations in respect of the register of contractors and the register of projects.

4.5.1

Contractor grading designations shall, where appropriate, be described in all procurement documents by a three digit alpha-numeric where the first character is a number representing the tender value designation shown in column 2 of Table GI in Annex G and the next two characters are capital letters representing the designation for the class of construction works shown in column 2 of Table G2 in Annex G.

4.5.2

The following wording shall be included in the Notice and Invitation to Tender in all engineering and construction works contracts:

It is estimated that tenderers should have a CIDB contractor grading designation of …or …or higher..

Note:

Delete "or ...." where only one class of construction works is applicable.

4.5.3

The following wording shall be included in the Tender Data, where the class of work is designated in terms of column 2 of Table G2:

a)	tenders solicited other than in terms of a quotation procedure:

Clause number (refer to Annex F)

F.2.1

Only those tenderers who are registered with the CIDB, or are capable of being so prior to the evaluation of submissions, in a contractor grading designation equal to or higher than a contractor grading designation determined in accordance with the sum tendered, or a value determined in accordance with Regulation 25 (1B) or 25(7A) of the Construction Industry Development Regulations, for a ..... or .......*. class of construction work, are eligible to have their tenders evaluated.

Joint ventures are eligible to submit tenders provided that:

1.	every member of the joint venture is registered with the CIDB;

2.	the lead partner has a contractor grading designation in the ..... or .......* class of construction work; and

the combined contractor grading designation calculated in accordance with the Construction lndustry Development Regulations is equal to or higher than a contractor grading designation determined in accordance with the sum tendered for a or ....* class of construction work or a value determined in accordance with Regulation 25 (1B) or 25(7A) of the Construction Industry Development Regulations.

*insert class of construction work (see Table G2). Delete "or ...." where only one class of construction works is applicable.

b)	tenders solicited in terms of a quotation procedure:

Clause number (refer to Annex F)
F.2.1	Only those tenderers who are registered with the CIDB, or are capable of being so prior to the evaluation of submissions, in a .... or ......*. class of construction work, are eligible to have their tenders evaluated.

•	insert class of construction work (see Table G2). Delete "or ...." where only one class of construction works is applicable.

4.5.4

The following wording shall be included in the Notice and lnvitation to Submit an Expression of Interest in respect of engineering and construction works, where the contractor grading designation is based on the estimated value of a tender that may arise:

Respondents must have a contractor grading designation of …... or …….or higher.

Note:

Delete "or ...." where only one class of construction works is applicable.

4.5.5

The following wording shall be included in the Submission Data:

Clause number (refer to Annex H)
H.2.1	Only those tenderers who are registered with the Construction Industry Development Board, or are capable of being so registered within 21 working days from the closing date for submissions of tenders, in a contractor grading designation of …... or ......*. or higher, are eligible to have their tenders evaluated.

*insert contractor grading designation for one or two classes of construction works. Delete "or ...." where only one class of construction works is applicable.

4.5.6

The following wording may be included in the Submission Data:

Clause number (refer to Annex H)

H.2.1

1.	Joint ventures are eligible to have their submissions evaluated provided that:

2.	every member of the joint venture is registered with the ClDB not later than 21 working days from the closing date for tenders;

3.	the lead partner has a contractor grading designation in the …. or …..* class of construction work; and

4.	the combined contractor grading designation calculated in accordance with the Construction Industry Development Regulations is equal to or higher than the required contractor grading designation..

* insert class of construction work (see Table G2). Delete "or ...." where only one class of construction works is applicable.

4.5.7

Where a client or employer promotes potentially emerging enterprises within a framework of a targeted development programme as contemplated in terms of Regulation 25(8) of the Construction lndustry Development Regulations:

a)	the wording provided in the Notice and Invitation to Tender in terms of 4.5.2 shall be amended as follows:

It is estimated that tenderers should have a CIDB contractor grading designation of ...... or .....* or higher. ..... or ...... .* potentially emerging enterprises who satisfy criteria stated in the Tender Data may submit tender offers.

* insert estimated contractor grading designation in one or two construction classes, as relevant.

** insert one contractor grading designation below estimated contractor grading designation

Note:

Delete "or ...." where only one class of construction works is applicable.

b)	the wording in the Tender Data provided in terms of 4.5.3 shall be amended as follows:

Table

Clause number (refer to Annex F)

F.2.1

The following tenderers who are registered with the CIDB, or are capable of being so registered prior to the evaluation of submissions, are eligible to have their tenders evaluated:

contractors who have a contractor grading designation equal to or higher than a contractor grading designation determined in accordance with the sum tendered, or a value determined in accordance with Regulation 25 (16) or 25(7A) of the Construction Industry Development Regulations, for a ..... or .......* . class of construction work; and

b)	contractors registered as potentially emerging enterprises with the ClDB who are registered in one contractor grading designation lower than that required in terms of a) above and who satisfy the following criteria:

……………………………………

* insert class of construction work (see Table G2 ). Delete "or ...." where only one class of construction works is applicable.

**state criteria relevant to employer's targeted development programme

c)	the wording provided in terms of 4.5.4 shall be amended as follows:

Respondents must have a contractor grading designation of…. or ..... or higher ..... or

...... potentially emerging enterprises who satisfy criteria stated in the Submission Data

may submit expressions of interest.

Note:

Delete "or ...." where only one class of construction works is applicable.

d)	the wording in the Submission Data provided in terms of 4.5.5 shall be amended as follows:

Clause number (refer to Annex H)

H.2.1

The following respondents who are registered with the CIDB, or are capable of being so registered not later than 21 working days from the closing date for the submission of tenders, are eligible to have their submissions evaluated:

a)	those respondents who are registered with the Construction Industry Development Board, or are capable of being so registered within 21 working days from the closing date for submission of tenders, in a contractor grading designation of ..... or ......* or higher; and

b)	contractors registered as potentially emerging enterprises with the ClDB who are registered in one contractor grading designation lower than that required in terms of a) above and who satisfy the following criteria:

…………………………………….**

* insert contractor grading designation for one or two classes of construction works. Delete "or ...." where only one class of construction works is applicable.

**state criteria relevant to employer's targeted development programme

e)	details appropriate to any support provided must be stated in the Contract Data, the Pricing Data and the Scope of Work, as relevant.

4.5.8

Employers, wherever appropriate, in support of industry development, shall in the application of the register of contractors, promote the participation and development of registered contractors by means of one or more of the following:

a)	unbundling projects into smaller contracts;

b)	implementing targeted development programmes to support potentially emerging contractors in accordance with the provisions of the Construction Industry Development Regulations;

c)	offering preferences to contractors who undertake to enter into joint ventures with or subcontract portions of the works to such contractors; and

d)	requiring a prime contractor to subcontract defined portions of the works to such contractors in accordance with the provisions of 4.4.6.

Note:

ClDB Best Practice Guideline A8 (1036), Procurement Measures to Develop Registered Contractors, provides comprehensive guidance to employers and their agents as to how they may comply with the requirements of 4.5.8.

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

Board Notices

Standard for Uniformity in Construction Procurement Published in terms of the Construction Industry Development Board Act, 2000

4. Requirements