Que2.25. Explain compactly the procedure ofpre-qualification of contractors. State its advantages and downsides.
Answer The Prequalification Process
1. announcement and announcement It’s the employer’s responsibility to announce the Assignation for Prequalification( IFP) on the ADB website as well as in
i. A review of general rotation in the borrower’s country( at least one English- language review, if available)
ii. An internationally known and freely website in English.
2. Preparing and Issuing a Prequalification Document
i. The employer is responsible for preparing and issuing the prequalification document.
ii. The employer shall use ADB’s Standard Procurement Document for the Prequalification of stab( SPQD).
iii. The employer shall prepare the prequalification document using the published interpretation of the SPQD without suppressing or adding textbook to Section 1- Instructions to aspirants( ITA). All information and data particular to each individual prequalification process must be handed by the employer in the ensuing sections of the prequalification document Section 2 Application Data distance Section 3 Qualification Criteria Section 4 operation Forms Section 5 Eligible Countries Section 6 compass of Contract
iv. The employer shall allow aspirants a minimal period of 42 days to Study the prequalification document, b. Prepare complete and responsive operations, and c. Submit their operations.
3. Preparation and Submission of Applications
i. The aspirant is solely responsible for the medication and submission of its operation.
ii. During this stage, the employer shall
a. instantly respond to requests for interpretations from aspirants and amend, as demanded, the prequalification document; and b. Amend the prequalification document only with the previous blessing of ADB.
4. Opening and Evaluation of operations
i. The employer shall appoint educated staff to conduct the evaluation of operations.
ii. miscalculations committed at evaluation may latterly prompt complaints from aspirants, takingre-evaluation of the operations, with consequent detainments and waste of coffers.
iii. The employer, in observance of stylish practices, shall a. Maintain strict confidentiality throughout the evaluation process, b. Reject any attempts or pressures to distort the outgrowth of the evaluation, including fraud and corruption,
c. rigorously apply only and all of the qualification criteria specified in the prequalification document; and Notify all aspirants in jotting of the names of those aspirants who have been prequalified.
5. streamlining and evidence of endeavor’s Qualifications Information pertaining to a endeavor’s eligibility, pending action, and fiscal situation shall be streamlined during bidding.
ii. fresh qualifying conditions not examined during prequalification similar as fiscal coffers and current contract commitments. outfit to be allocated for the particular contract. labor force to be contended for the particular contract.
Advantages Enhances participation of serious contractors( since unqualified stab are barred).
ii. Reduces high cost of bidding.
iii. Gives early warning of competition eventuality. iv. Reduces complaints of disqualified stab. Gives “ Peace of Mind ” to Employers. vi. Borrower suitable to assess interest of good enterprises.
vii. Identifies implicit conflict of interest( contractors with business association with advisers ). viii. Reduces time in assessing flings from unqualified stab. ix. Reduces implicit for contestation. Early Discovery of Employer’s capacity to manage procurement.
Disadvantages Increases procurement lead time.
ii. Review of all operation is obligatory whereaspost-qualification requires review of only winning shot.
iii. Possibility of conspiracy.
Que2.26. What are complementary pledges in a contract? How their nonfulfillment to breach of contract? bandy it with a many practical exemplifications.
Answer Complementary Promises Promises which form the consideration or a part of consideration for each other are called complementary pledges.
ii. An agreement may correspond of either
a. A pledge supported by consideration given, or
b. A pledge supported by another pledge.
iii. In the ultimate case, when an agreement is supported by another pledge, it will be a complementary pledge.
iv. therefore, in complementary pledges each party gives a pledge for a pledge. Complementary pledges are of the following types collective and Independent Complementary Promises When each party performs his pledge singly and irrespective of the fact whether the other party has performed, or is willing to perform his pledge or not, the pledges are collective and independent. illustration X agrees Y to supply milk daily, while Y agrees to pay the price of milk every month. Both these are collective and independent pledges.
ii. tentative and Dependent Complementary Promises When the performance of a pledge by one party depends upon the previous authorization of the other party, it’ll be a tentative and dependent pledge. Example X promises to construct Y’s house, handed that Y inventories cement and bricks. This will be a tentative and dependent pledge. Then, X need not perform the pledge if Y fails to supply cement and bricks.
iii. collective and Concurrent or contemporaneous Complementary Promises This is the state when two contracts are to be performed contemporaneously. illustration All cash deals are exemplifications of contemporaneous or concurrent pledges, as delivery of goods and payment of price take place contemporaneously.
Breach of the Contract Breach is non-fulfilment of an agreed pledge under the contract similar as Not handing over the assignment mentioned in the contract on quested timelines.
ii. Not furnishing the applicable document to the pledge for making the payment.
iii. Not making payments on time as per the contract for work done. iv. Not attesting to the schedule mentioned in the contract. Not completing the workshop as per mileposts mentioned in the contract.
Que2.27. What’s the purpose of retention plutocrat? When payments may be made at reduced rate? How and by whom are the reduced rates determined?
Answer Retention Money It’s an quantum held back from a payment made under a construction contract. It’s generally a chance( 5) of the quantum outstanding of each investiture. It’s generally held to insure that a contractor performs all of its scores under the contract, and is also released moreover on practical completion or after the end of a blights announcement period. Purpose of Retention Money
1. In general, Retention Money provides protection to the employer. Retention plutocrat gives the idea of significance of completing the inked design as per its terms and designs.
2. With similar retention held, the contractor takes the responsibility to complete the construction design as per the design and quality stated in the original contract. Condition for Reduced Rate If the contractor fails to carry out the work rigorously in agreement with the delineations and specifications, and, if in the opinion of the mastermind, the work is structurally sound, he may accept the work, but the contractor will be paid at reduced rates which will be decided by the mastermind. Example Assume that the specification for teak wood panelled windows and doors mentions that the consistence of the shutters should be 4 cm and if the shutters actually handed by the contractor are only cm thick, the mastermind may accept the work and reduce the rate per square metre of the shutters by an quantum equal to the reduction in the cost of the accoutrements used in the work.
Que2.28. Define and bandy the significance of the following
1. humorless plutocrat.
2. Security deposit.
3. conservation liability period of contract.
4. Debitable agency.
5. Registration of contractors and suppliers by negotiating departments.
Answer 1. Earnest Money Earnest plutocrat is an assurance or guarantee on the part of the contractor to keep the offer for consideration and to confirm his intention to take up the work if accepted in his favour for prosecution as per terms and conditions in the tender.
2. Following are the significance of humorless plutocrat Compensation In case, the contractor refuses to take up the work or runs down when his tender is accepted, the work can be distributed to the next smallest endeavor.
The humorless plutocrat ropped compensates the loss of proprietor/ department to a great extent.
ii. discipline In case the contractor quotes lower rate without intention of doing the work, the humorless plutocrat shall be ropped as a discipline. iii. Restriction on gratuitous Competition The provision of humorless plutocrat will circumscribe the entry of numerous contractors who may not have enough coffers to do the work.
2. Security Deposit
i. The contractor whose tender has been accepted is to deposit 10 of the proffered quantum as security plutocrat with the department inclusive of the humorless plutocrat formerly deposited.
ii. This quantum is kept as a check so that the contractor fulfils all the terms and conditions and carries out the work satisfactorily within the prescribed time limit. , his whole or part of the security If the contractor fails on thispart.money is ropped by the department as a discipline.
iv. The security plutocrat also serves as a security against the accoutrements or the tools and ministries handed by the department to the contractor on loan.
3. conservation Liability Period of Contract
i. The conservation period is the period following completion of a construction design during which the contractor is responsible for certain conservation issues under the numerous structure or engineering contracts.
ii. During this period, the contractor needs to maintain insurance in force, the extent of which will depend on the contract and on his own concern for the threat he’s facing.
iii. typically the conservation period will last for twelve months from the completion of the contract but this may be longer or shorter.
4. Debitable agency When the contractor fails to fulfill his contractual obligation in respect of progress or quality of work indeed after being given due notice by the proprietor, a debitable agency is appointed. The charges incurred will be charged from the bills of contractor or security plutocrat deposited before.
5. Registration of Contractors and Suppliers by Engineering Departments
i. The contractor and suppliers must get himself registered in the departments( or Government) for which he’s interested to take up workshop.
ii. Government contractors are entitled to do government jobs if awarded.
iii. Contractors are classified according to the enrollment and enrollment freights and depending on this they can take over works up to certain quantum.