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Terminology used in
Contract Documentation

Parties
• Employer : The person or body that commissions
the construction
• Client’s Representative : The person appointed by
the Employer to liaise with the Design Team and
Project Manager.
• Adjudicator : The person who gives rulings on
Employer – Contractor disputes and is
preferably a different person to the Project
Manager.

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Parties
• Contractor : The firm that has been contracted
to construct the Works
• Subcontractor : A firm that has a contract with
the main Contractor to provide labor, materials
or products.
• Arbitrator :
• The Arbitrator is the person to whom the
Employer and Contractor can refer their disputes
to and be bound by the Arbitrator’s decision.
• The Arbitrator cannot be the same person as the
Project Manager.

Documents
• Contract Documentation :
• Pre-qualification, Tender and Contract
Documents collectively.
• This term includes all documents prepared by the
Design Team.
• Prequalification Documents :
• Prequalification documents exchanged between
the Employer/Designer and potential tenderers
prior to selection of list of tenderers.

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Documents
• Tender Documents :
• The Documents sent to the selected tenderers to
enable them to price the construction.
• Also termed as “Invitation to Tender”.
• Instructions to Tenderers :
• The term is self-explanatory but only covers
procedures up to Acceptance of Tender.
• For this reason, it is not a Contract Document.

Documents
• Tender : The documents that have been
completed by a tenderer and are then returned
to the Employer for consideration
(i.e Evaluation).
▫ Bid : US equivalent to Tender. Normally not used
in Contract documentation, since contract
documentation deals with written offer. The word
‘Bid’ in UK English tends to be used to describe
both verbal and written offers.
▫ Offer : Another alternatives to Tender not
normally used in contract documentation for the
same reason as Bid

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Documents
• Bill Of Quantities :
▫ Civil Engineers and designers using the FIDIC
Conditions and the UK building designers use the
term Bill Of Quantities.
• Addenda :
▫ Changes to tender Documents after they have
been sent to the tenderers and prior to
Acceptance.
• Variation Order :
▫ Project Managers’s order for alternations,
additions and omissions to the Works

Tender Document :Essential Elements

1. Instructions to Tenderer(ITT)
2. Tender Data Sheet(TDS)
3. General Conditions of Contract(GCC)
4. Particular Conditions of Contract(PCC)
5. Tender Form
6. Bill Of Quantities(BOQ)
7. General Specification
8. Particular Specification
9. The Drawings

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Instructions to Tenderer(ITT)
• The purpose of this section is to instruct the
tenderer or bidder about general rules and
regulation.
• It is almost same for all tender.
• It should not have any details, for example, here
it is said to deposit tender security, but the
amount of tender security is not written here.

Tender Data Sheet(TDS)

• The ITT provides generalized information –

the particular data (information) is provided
TDS.
• Here the amount of tender security is written
(say, 2-3% of project cost)
• Amount of required turnover that the tenderer
is to fulfill is specifically mentioned.

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General Conditions Of Contract(GCC)

• It is almost same for all tender
• Here general conditions are written only, not
particularly/specifically
• Some items of GCC clause are-
▫ Definitions
▫ Arbitrators
▫ JVCA
▫ Risk
▫ Compensation Events
▫ Performance Security etc.

Particular Conditions Of Contract(PCC)

• It varies from tender to tender.
• The specific rules of GCC are given here; say the
amount of compensation, the performance
security is written here.

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Tender Form

• It varies from tender to tender.

Bill of Quantities(BOQ)
• BOQ contains all items for works and supplies
for construction, testing, commissioning to be
done by the contractor.
• It is used to calculate the contract price.
• The contractor is paid for each item of work
done at a rate as quoted in the BOQ

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• BoQ provides sufficient information on the

quantities of Works to be performed to enable
Tenders to be prepared efficiently and
accurately;
• BoQ provides a priced BOQ for use in the
periodic valuation of Works executed.

General Specifications
• General specification are written
• General Specification may include:
 General site requirement
Health and safety
Measures against environmental pollution
Security measures

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Particular Specification
• It contains particular specificaion.
• Example :
▫ Strength and other properties of steel
▫ Strength of concrete
▫ Specification of bricks
▫ Specification of electrical items
▫ Etc.

The Drawings
• This portion contains drawing work.
• It gives detailing for the task.

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Flow Chart of Tendering Process

Tender
Interested Evaluation by
bidder buy Tender Tender
Tender Notice
tender Submission Evaluating
documents Committee

Outcome of Tender
Evaluation

Substantially Non-
Responsive Rejected
Responsive Response
Tenderer Tenderer
Tenderer Tenderer

Obtain clarification and make

responsive or nonresponsive
(Cont. to next page)

Lowest (cont. from prev. page)

Bidder/Tenderer

Approval No
from Cancel the process
HOPE & Arrange Re-tender

Yes

Invited to Contract
NOA
Contract
Sign

Contractor

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Criteria for Tender Evaluation

Preliminary Security

• Tender and goods are eligible

• Minimum general experience
• Minimum similar contract type experience
• Minimum liquid asset
• VAT & IT related certificate
• Valid trade license

Criteria for Tender Evaluation

Preliminary Security

• All pages duly signed

• Price schedule
• Tender validity period
• Completed tender submission sheet
• Tender security

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Criteria for Tender Evaluation

Detailed Examinations
• Check for qualification and experience of key
personnel.
• Check for adequacy of plants and equipments
• Check for general experience
• Check for similar contract type experience
• Check for bank certificate for liquid asset
• Check for annual average turnover from audit report
• Check for arithmatic correction of prices quotted
• Check for credit facility available

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