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“Towards Uniform Conditions of Contract and Specifications in South Africa”. South African Road Pavement Forum 22 November 2005. Background. Uniformity in Construction Procurement 1995 Discussion paper by the Procurement Forum entitled Building and Engineering Contracts: the way forward

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slide1

“Towards Uniform Conditions of Contract and Specifications

in South Africa”

South African Road Pavement Forum22 November 2005

background
Background

Uniformity in Construction Procurement

  • 1995 Discussion paper by the Procurement Forum entitled Building and Engineering Contracts: the way forward
  • 1997 Government’s Green Paper on Public Sector Procurement Reform in South Africa
  • 1998/9 National working group established by the Department of Public Works
  • 2000 Focus Group 6 recommendations (Interministerial Task Team for Construction Industry Development)
  • 2000 CIDB Act promulgated which mandates the CIDB to promote standardisation and uniformity in procurement documentation, practices and procedures
slide3
From 2002 SANS standards for construction procurement
  • From 2003 CIDB best practice guidelines
  • 2003 Code of conduct for the Parties engaged in Construction Procurement
  • 2003 Regulatory Framework for Supply Chain Management issued in terms of the PFMA
  • 2004 Construction Industry Regulations, CIDB Standard for Uniformity in Construction Procurement / Best Practice Guidelines
  • 2005 Supply chain management regulations issued in terms of the Municipal Finance Management Act
slide4
The Standard for Uniformity in Construction Procurement emanates from the CIDB Act 38 of 2000 and establishes minimum requirements that are mandatory for the public sectorthat:
  • promote cost efficiencies through the adoption of:
    • a uniform structure for procurement documents
    • standard component documents including forms of contract;
    • generic and uniform tender procedures;
  • enable risk, responsibilities and obligations to be clearly identified.
slide5
The CIDB Standard for Uniformity in Construction Procurement establishes minimum requirements for:
  • the solicitation of tender offers;
  • the manner in which quality is to be incorporated in procurement documents;
  • the formatting and compilation of procurement documents; and
  • the application of the register of contracts to public sector contracts.
annexures
Annexures

Annex A: Best Practice Guidelines

Annex B: Standard notice and invitation to tender

Annex C: Form of Offer and Acceptance

Annex D: Sample preferencing schedule where direct preferences are granted in respect of targeted enterprise status

Annex E: Sample preferencing schedule where preferencing are granted in respect of the direct participation of targeted enterprises and/or labour

Annex F: Standard Conditions of Tender

Annex G: Form of guarantee

Annex H: Standard Conditions for the calling for Expressions of Interest

Annex I: Selection of subcontractors by employers and contractors

Identical to that in SANS 294

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The Standard for Uniformity in Construction Procurementlimits the range of forms of contract that may be used:
  • Works - NEC, FIDIC, GCC 2004, JBCC Series 2000
  • Services - NEC Terms Service Contract
  • Professional Service - NEC or CIDB
  • Supplies - CIDB
slide8
The projected Outcomes of Standardisation and Uniformity in Procurement Documents

Standardisation and uniformity promotes:

  • Effective participation by new entrants or emerging enterprises to the business environment;
  • Cost effectiveness, both in financial and human resource terms;
  • The simplification and computerization of the documentation process;
  • Contractors being able to more easily determine the scope and extent of risk and price accordingly;
  • The management of a contract becoming routine and administration procedures becoming mechanized; and
  • Savings in cost and improvement in quality.
slide9
A first principle approach to procurement

documentation

Procurement documents are required primarily to:

  • Solicit tender offers; and
  • Form the basis for a contract.
slide10
Documents required for the solicitation of tender offers

Volume 1: Tendering procedures

Part 1: Tendering procedures

Tender Notice and Invitation to Tender

Tender Data

Volume 2: Returnable documents

Part 2: Returnable documents

List of Returnable Documents

Form of Offer and Acceptance

Contract Data (Part 2: Data provided by the Contractor)

Activity Schedule / Bill of Quantities

Returnable Schedules

Volume 3: Contract (Draft contract)

Part 1: Agreement and Contract Data

Contract Data (Part 1: Data provided by the Employer)

Part 2: Pricing data: Pricing Instructions

Part 3: Scope of Work: Scope of Work

Part 4: Site information: Site Information

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Principle

In order to have a fair, transparent and equitable solicitation process, employers should:

  • provide tenderers with clear instructions as to how they are to submit their tender offers;and
  • inform them as to how their tenders are to be processed following their receipt.
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