Bölgesel Rekabet Edebilirlik Operasyonel Programı nın Uygulanması için Kurumsal

Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey This project is co-financed by the European Union and the Republic of Turkey Advanced Training PRAG Works 5 – 7 April 2011 Advanced Training PRAG Works 5 -7 April 2011 1

This project is co-financed by the European Union and the Republic of Turkey Advanced Training PRAG Works 5 -7 April 2011 2

This project is co-financed by the European Union and the Republic of Turkey Agenda - 1 Day # 1 – – – – – Introduction Roles of Parties FIDIC & PRAG Integration Contract Types Project Life Cycle for Tender & Contracting Contents of a Works Tender Dossier Where to find what Expertise Necessary 2 exercises/cases (morning + afternoon) Advanced Training PRAG Works 5 -7 April 2011 3

This project is co-financed by the European Union and the Republic of Turkey Agenda - 2 Day # 2 – Lots (if any) – Procurement Notice & ITT • Selection Criteria – Volume 3, 4 & 5 of a TD – (with a focus on FIDIC implementations) – Documents forming a Works Contract • Annex to Tender • Volume 2 contents – 2 exercises/cases (morning + afternoon) Advanced Training PRAG Works 5 -7 April 2011 4

Agenda - 3 This project is co-financed by the European Union and the Republic of Turkey Day # 3 • • Tender Evaluation Award Procedures Exercise # 5 Other Relevant Info • • • Suspension Clause Additional Works Variant Solutions Modifying of works contracts Rules of Origin Supervision To. Rs • Overall evaluation of the training Advanced Training PRAG Works 5 -7 April 2011 5

Agenda This project is co-financed by the European Union and the Republic of Turkey Session # 1 Day # 1 - Morning – – – – Introductions Roles of Parties PRAG & FIDIC Integration Contract Types Project Life Cycle Sequence of Events Exercise # 1 on Planning Advanced Training PRAG Works 5 -7 April 2011 6

This project is co-financed by the European Union and the Republic of Turkey Introduction - 1 • Trainer: – – Kerem Sadıklar Civil Engineer & MBA > 15 years of experience including EU & UNDP kerem. sadiklar@grontmij. com. tr • Participants: – 25 of FCD + TID of RCOP – CIC – Knowledge & experience level? Advanced Training PRAG Works 5 -7 April 2011 7

This project is co-financed by the European Union and the Republic of Turkey Introduction - 2 • Training Objectives: By the end of the course, the trainees should; – have a solid understanding of Contract Types – know contents of a tender dossier – know where to find what – be able to identify the external expertise they need – be able to identify selection criteria, be able to draft PN and ITT – Be able to attend an evaluation committee as an evaluator (voting member) Advanced Training PRAG Works 5 -7 April 2011 8

This project is co-financed by the European Union and the Republic of Turkey Introduction - 3 • Training : – – will be interactive; please be participative will use exercises will involve team work will use internet (EC sites) Advanced Training PRAG Works 5 -7 April 2011 9

This project is co-financed by the European Union and the Republic of Turkey PRAG Works - 1 • Roles of Parties • Decentralised: Ex-Ante • • • EUD ( Ex-ante approval & Observor & Monitoring) CFCU ( Contracting Authority & Employer & Final Beneficiary) Mo. IT (Operational Structure) End Recepients Contractor(s) Advanced Training PRAG Works 5 -7 April 2011 10

This project is co-financed by the European Union and the Republic of Turkey • PRAG Works - 2 PRAG & FIDIC integration – PRAG; Practical Guide to Contract Procedures for EU External Actions – FIDIC; conditions of contract – FIDIC replaces/changes certain documents of PRAG, but – Mainly they complement each other. It is important to understand what each stands for in practice… Advanced Training PRAG Works 5 -7 April 2011 11

This project is co-financed by the European Union and the Republic of Turkey Works Contracts Work Contract Types by nature • • Construction (Employer’s Design FIDIC RED BOOK) Plant and Design – Build (FIDIC YELLOW BOOK) Design Build Operate • (FIDIC YELLOW BOOK) • (FIDIC GOLD BOOK – still not finalized) EPC (Engineer Procure Construct) /Turnkey Projects (FIDIC SILVER BOOK) Advanced Training PRAG Works 5 -7 April 2011 12

This project is co-financed by the European Union and the Republic of Turkey Contract Types - 1 ≥ € 5, 000 < € 5, 000 & > € 300, 000 < € 300, 000 & > € 10, 000 ≤ € 10, 000 1. International Open Tender Procedure Local Open Tender Procedure Competitive Negotiated Procedure Single Tender 2. International Restricted Tender Procedure Advanced Training PRAG Works 5 -7 April 2011 (for all procurement types) 13

This project is co-financed by the European Union and the Republic of Turkey Contract Types - 2 • Single Tender – – ≤ € 10. 000 PRAG 2. 4. 8 defines the procedures Single tenderer is sufficient Basic principles should be met (eligibility rules, capacity, exclusion criteria, etc. ) Advanced Training PRAG Works 5 -7 April 2011 14

This project is co-financed by the European Union and the Republic of Turkey Contract Types - 3 • Competitive Negotiated Procedure – – – 3 contractors are invited (Invitation Letter + Tender Dossier) 30 days for submission of proposals Tenders are evaluated by a committee of 3 1 compliant tender is sufficient to award After 2 successive failures CA may proceed with negotiated procedure • Subject to prior approval of the EC Advanced Training PRAG Works 5 -7 April 2011 15

This project is co-financed by the European Union and the Republic of Turkey Contract Types - 4 • Local Open Tenders – No forecast notice – Not published on the OJ of EC but on the OJ of the Beneficiary Country or equivalent media – PN must also be published on the Europeaid website • Give 15 days for translation – Equal opportunities for the eligible contractors located outside the Beneficiary Country Advanced Training PRAG Works 5 -7 April 2011 16

This project is co-financed by the European Union and the Republic of Turkey Contract Types - 5 • International Open Tenders – FN must be published on the Europeaid website • Give 15 days for translation – PN must be published in OJ of EC and on the OJ of the Beneficiary Country or equivalent media – PN must also be published on the Europeaid website • Give 15 days for translation Advanced Training PRAG Works 5 -7 April 2011 17

This project is co-financed by the European Union and the Republic of Turkey Sequence of Events - 1 • Time planning is crucial for successful tendering & contracting • Supervision and Work Tenders have to run in parallel; – Relevant contracts should be signed after securing the other, – Supervision contract should commence before the relevant works contract (ideally 1 month) Advanced Training PRAG Works 5 -7 April 2011 18

This project is co-financed by the European Union and the Republic of Turkey Sequence of Events - 2 Supervision Local Open Works International Open Works Forecast Notice Yes 30 days x Yes 30 days Procurement Notice Yes Eo. I Submission PN + 30 days x x Tender Submission SL + 60 days PN + 90 days Advanced Training PRAG Works 5 -7 April 2011 19

This project is co-financed by the European Union and the Republic of Turkey Sequence of Events - 3 • Project Life Cycle (after contracting): • Access to site • Commence Order (90 days after contract signature) • Execution Period (depends on each project) • Defects Liability Period (12 months) The project duration in an OIS and the duration of the relevant supervision contract should take these into account… Advanced Training PRAG Works 5 -7 April 2011 20

This project is co-financed by the European Union and the Republic of Turkey Exercise # 1 ü Please prepare a time schedule for the tendering and contracting of the works and supervision components of a construction project. ü The schedule should include all the relevant milestones. ü Please do a joint schedule for both types of the works contracts (local and international open tenders). Advanced Training PRAG Works 5 -7 April 2011 21

This project is co-financed by the European Union and the Republic of Turkey Agenda Session # 2 Day # 1 - Afternoon – – Where to find what? Contents of a Works Tender Dossier Expertise Necessary vs. Project Type Exercise # 2 (Contents of a Works TD) Advanced Training PRAG Works 5 -7 April 2011 22

This project is co-financed by the European Union and the Republic of Turkey EC Web Sites • An important thing to know; Where to find what? – Starting point for Europe. Aid; http: //ec. europa. eu/europeaid/index_en. htm – PRAG documents; http: //ec. europa. eu/europeaid/work/procedures/implementation/index_en. htm – All tenders; https: //webgate. ec. europa. eu/europeaid/onlineservices/index. cfm? do=publi. welcome PRAG is a living document; please get accustomed to use these sites… Advanced Training PRAG Works 5 -7 April 2011 23

This project is co-financed by the European Union and the Republic of Turkey Contents of a TD - 1 • A works tender dossier consists of 5 Volumes • • • Volume 1 (ITT& forms) Volume 2 (Contract & Samples) Volume 3 (Technical Specifications) Volume 4 (Financial Offer) Volume 5 (Drawings) Advanced Training PRAG Works 5 -7 April 2011 24

This project is co-financed by the European Union and the Republic of Turkey Contents of a TD - 2 Volume 1: – ITT (Instructions to Tenderers) – Tender Forms – Tender Guarantee Sample – Questionnaires – LIF & FIF – Po. A – Financial Statements – Evaluation Grids The tenderer’s proposal will be a part of the contract documents but Volume 1 and PN will not … Advanced Training PRAG Works 5 -7 April 2011 25

This project is co-financed by the European Union and the Republic of Turkey Contents of a TD - 3 Volume 2: – Draft Contract – General (FIDIC Book Cover Page) & Particular Conditions – Security Samples (Pre-finance, Performance & Retention) – Annex I (Tax customs arrangements) Advanced Training PRAG Works 5 -7 April 2011 26

This project is co-financed by the European Union and the Republic of Turkey Contents of a TD - 4 Volume 2: – FIDIC & PRAG; changes please be careful – Security Samples (Pre-finance, Performance & Retention) Under FIDIC Performance Guarantee reads as; « …. We note that the guarantee will be released in accordance with Article 4. 2 of the Particular Conditions to the Contract [ and in any case at the latest on (at the expiry of 18 months after the implementation period of the Contract) ]. …» Under EU General Conditions Performance Guarantee reads as; «. . We note that the guarantee will be released in accordance with Article 15. 8 of the General Conditions to the Contract [and in any case at the latest on (at the expiry of 18 months after the implementation period of the Contract)]. . » Advanced Training PRAG Works 5 -7 April 2011 27

This project is co-financed by the European Union and the Republic of Turkey Contents of a TD - 5 Volume 3: Technical Specifications Volume 4: Model Financial Bid & Payment Preambles Volume 5: Design Documents & Drawings Advanced Training PRAG Works 5 -7 April 2011 28

This project is co-financed by the European Union and the Republic of Turkey Expertise Necessary - 1 Various types of experts are necessary to prepare a full-fledged Works TDs For infrastructure projects: Environment (water & waster water), Transportation etc. • Design Engineers • Environmental Engineers • Quantity Surveyors • CAD Experts • Contract Experts • Tendering and PRAG experts Usually executed under Design-Build (Yellow FIDIC) Contracts with the exception of water, waste water networks… Advanced Training PRAG Works 5 -7 April 2011 29

This project is co-financed by the European Union and the Republic of Turkey Expertise Necessary - 2 Various types of experts are necessary to prepare a full-fledged Works TDs For superstructure projects: Buildings, etc. • • • Architects Design Engineers (Structural, Mechanical, Electrical) Quantity Surveyors CAD Experts Contract Experts Tendering and PRAG experts Usually executed under Employer’s Design (RED FIDIC) Contracts Advanced Training PRAG Works 5 -7 April 2011 30

This project is co-financed by the European Union and the Republic of Turkey Expertise Necessary - 3 Phases of Preparation of a Works Tender Dossier (RED FIDIC BOOK) - 1 • • • Meetings with End Users and Suppliers Preparation of the Design Concept / Note Alternative Conceptual Designs (2 to 3) Presentation and discussion on conceptual designs Revisions and approval of the conceptual design Engineering calculations Advanced Training PRAG Works 5 -7 April 2011 31

This project is co-financed by the European Union and the Republic of Turkey Expertise Necessary - 4 Phases of Preparation of a Works Tender Dossier (RED FIDIC BOOK) - 2 • • Detailed Execution Designs (Volume 5) Technical Specifications (Volume 3) Bill of Quantities & Financial Proposal (Volume 4) Volume 1 & 2 Advanced Training PRAG Works 5 -7 April 2011 32

This project is co-financed by the European Union and the Republic of Turkey Expertise Necessary - 5 Please note that; • This is a team’s work • It is not simply a works tender dossier; Ø There is design of a building/facility from scratch Ø There are laws and regulations that have to be addressed Ø Design responsibility / indemnity insurance • It takes 5 months • Tender dossiers are prepared for unit price RED FIDIC contracts; necessary quality assurance tools have to be established… Advanced Training PRAG Works 5 -7 April 2011 33

This project is co-financed by the European Union and the Republic of Turkey Exercise # 2 Please use the below link to download all the contents of a works tender dossier. http: //ec. europa. eu/europeaid/work/procedures/implementation/ind ex_en. htm Advanced Training PRAG Works 5 -7 April 2011 34

This project is co-financed by the European Union and the Republic of Turkey Agenda Session # 3 Day # 2 - Morning – – – Lots Instructions to Tenderers Procurement Notice Selection Criteria Exercise # 3 (Procurement Notice) Advanced Training PRAG Works 5 -7 April 2011 35

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 1 Lots – When and why do we need them? • Not for artificial splits to lower thresholds and shorten tendering periods • To secure contracting • To ease implementation (fewer contracts are easier to manage) • To assign appropriate contractors • To have a sector focused approach – Supervision contract(s) should also be assessed accordingly Advanced Training PRAG Works 5 -7 April 2011 36

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 2 ITT (Instructions to Tenderers) – 1 – – – – Financing Participation Information to be supplied by the Tenderer Site Inspection / Clarification meeting Law Content and presentation of tender Tender prices – currency of tender and payment Advanced Training PRAG Works 5 -7 April 2011 37

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 3 ITT (Instructions to Tenderers) – 2 – – – – Period of validity of tenders Tender Guarantee Variant Solutions Submission of Tenders Opening and evaluation of tenders Contract award – performance guarantee Commencement of works Appeals Advanced Training PRAG Works 5 -7 April 2011 38

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 4 • Tender Guarantee; 1% - 2% of the estimated budget • Selection Criteria – Financial; no more than last 3 years – Technical; no more than last 5 years Advanced Training PRAG Works 5 -7 April 2011 39

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 5 • • Economic and Financial Standing (Financial Criteria) - 1 «Annual Turnover (the amount of business done in a year, incomes generated from ongoing works and incomes generated from works undertaken as Joint Venture shall be considered as part of the turnover): The average annual turnover in the last 3 (three) years XXXXX Euros» For companies which were established within the last 3 (three) years but not less than 2 (two) years, only the average of the years since established will be taken into account which cannot be less than 2 (two) years…» Advanced Training PRAG Works 5 -7 April 2011 40

This project is co-financed by the European Union and the Republic of Turkey • PN & ITT - 6 Economic and Financial Standing (Financial Criteria) - 2 • Financial Resources « The Tenderer shall demonstrate, by a bank statement from his/her bank, that s/he has available or has access to liquid assets, lines of credit or other financial means sufficient to meet the construction cash flow for the contract of not less than; xxxxx Euro» • Financial Position «The Audited Financial Statements or loss and profit statements for the last 3 years shall be submitted and must demonstrate the soundness of the applicant’s financial position, showing long-term profitability. The tenderer should be in positive profit account at least 2 of the last 3 years Advanced Training PRAG Works 5 -7 April 2011 41

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 7 Technical and Professional Capacity - 1 Similar Works Experience: «The tenderer, tendering for each lot should have completed similar projects within the last five years (provisional acceptance certificate should have been issued within the last five years; i. e. XXX up to date of this tender) as defined below: Experience as prime contractor in the execution of: At least one building construction project (e. g. Xxxxx)» Advanced Training PRAG Works 5 -7 April 2011 42

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 8 Technical and Professional Capacity - 2 • Key Personnel: Min. Professional Experience in year Lot No Project Manager (Civil Engineer) 1 10 Site Works manager (Civil Engineer or Architecture) 1 5 Civil Works Surveyor 1 5 Mechanical Engineer 1 5 Electrical Engineer • 1 1 5 Ligitation History Advanced Training PRAG Works 5 -7 April 2011 43

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 9 • Selection Criteria – In supplies & services: the criteria are applied to the consortium as a whole – In works: each member needs to fulfill a minimum percentage of the criteria – Proof documents have to be provided Advanced Training PRAG Works 5 -7 April 2011 44

This project is co-financed by the European Union and the Republic of Turkey PN & ITT - 10 • Selection Criteria – Please use reasonable and necessary criteria – The technical forms should be in line with the absolute necessities of the project – Try to avoid; § unfair competition § risking the award of the contract • Award Criteria – Price for works (satisfying the conditions) Advanced Training PRAG Works 5 -7 April 2011 45

This project is co-financed by the European Union and the Republic of Turkey Exercise # 3 Please use the below link to download and prepare a PN for a construction project. Please assume the following for the exercise; • An administrative building with an indoors are of 5, 000 m 2 will be constructed, • The construction period is 12 months, • The estimated construction budget is 6, 500, 000 Euros http: //ec. europa. eu/europeaid/work/procedures/implementation/index_en. htm Advanced Training PRAG Works 5 -7 April 2011 46

This project is co-financed by the European Union and the Republic of Turkey Agenda Session # 4 Day # 2 - Afternoon – Volume 3, 4 and 5 of a Works TD – Documents forming a Contract – Exercise # 4 (Financial Offer and Contract Price) Advanced Training PRAG Works 5 -7 April 2011 47

This project is co-financed by the European Union and the Republic of Turkey Volume 3 - 1 • General Specifications • For each work item (Civil/Structural, Architectural, Electrical, Mechanical) • Technical Specifications • Item Descriptions • Location forms • Standards and Codes Advanced Training PRAG Works 5 -7 April 2011 48

This project is co-financed by the European Union and the Republic of Turkey Volume 3 - 2 • In order to secure fair competition; • Local item codes should not be used, • A unique coding system should be established, • Proper English level should be reached in technical specifications, • Creating unfair advantage to certain tenderers should be avoided Advanced Training PRAG Works 5 -7 April 2011 49

This project is co-financed by the European Union and the Republic of Turkey Volume 4 – 1 • Volume 4, Financial Offer • Lump Sum 4. 2. 1 – Introduction 4. 2. 2 – Recapitulation 4. 2. 3 - Breakdown of the Lump-sum Price 4. 2. 4 – Daywork Schedule 4. 2. 5 – Detailed Breakdown of Prices Advanced Training PRAG Works 5 -7 April 2011 50

This project is co-financed by the European Union and the Republic of Turkey Volume 4 - 2 • Unit Price 4. 3. 1 - Introduction 4. 3. 2 – Bill of Quantities 4. 3. 3 – Price Schedule 4. 3. 4 – Dayworks Schedule 4. 3. 5 – Detailed Breakdown of Prices Advanced Training PRAG Works 5 -7 April 2011 51

This project is co-financed by the European Union and the Republic of Turkey Volume 4 - 3 Using price revision is not a common practice in EU Contracts • Revise Volume 4 as deemed necessary • Delete the forms in Volume 4. 2. 5 and 4. 3. 5. «The Detailed Breakdown of Prices (Volume 4. 3. 5) is the list which contains the basic costs, net costs and mark-ups, from which each price on the Bill of Quantities and the Price Schedule and on the Daywork Schedule results. The Detailed Breakdown of Prices provides the co-efficients for the application of the price revision formula referred to in Article 48. 2 of the Special Conditions and can provide the basis for valuation of additional work ordered referred to in Article 37. 5 of the General Conditions. » Advanced Training PRAG Works 5 -7 April 2011 52

This project is co-financed by the European Union and the Republic of Turkey Volume 3 Sample of a Work Item Description «Granular Filling Code: AE. 101. 003 Laying 1 m 3 of sand gravel at the bottom of the foundation, including pouring, grading, compaction and watering by hand. Sand which is compliant with TS 706 EN 12620 and 2717 and gravel which is compliant with TS 706 EN 12620 shall be used. The sand gravel shall be poured, graded, compacted and watered by hand……. » Advanced Training PRAG Works 5 -7 April 2011 53

This project is co-financed by the European Union and the Republic of Turkey Volume 4 The Same Work Item Description in Volume 4 PRICE N° : Code: AE. 101. 003 TITLE: Granular Filling Laying sand gravel at the bottom of the foundation, including pouring, grading, compaction and watering by hand, including all the necessary materials and losses, loading, horizontal and vertical transportation, unloading, workmanship, contractor’s profit and general expenses for the successful completion of the work, paid per m 3 of filling executed. PRICE N° : Code: AE. 101. 003 TITLE: Granular Filling Price in words: Price in numbers: Advanced Training PRAG Works 5 -7 April 2011 54

This project is co-financed by the European Union and the Republic of Turkey Volume 4 GRAND SUMMARY OF BREAKDOWN OF TENDER PRICE PERMANENT WORKS PROVISIONAL SUMS (10 % of Permanent Works) CONTRACT PRICE (Sub total of Permanent Works + Provisional Sums/Contingencies) DAYWORKS TENDER PRICE (Contract Price + Dayworks) Advanced Training PRAG Works 5 -7 April 2011 55

This project is co-financed by the European Union and the Republic of Turkey Volume 5 • Contents; • Lists of Drawings • Design Calculations • Drawings • Conceptual drawings for «Design – Build Contracts» - Yellow FIDIC • Detailed designs and drawings for «Employer Design Contracts» - RED FIDIC Hybrid contracts are also commonly used… Advanced Training PRAG Works 5 -7 April 2011 56

This project is co-financed by the European Union and the Republic of Turkey Contract Documents - 1 Priority of Documents • the contract, • the Tender Form with its appendix, • the Particular Conditions, • the General Conditions, • the Technical Specifications, • the design documentation (drawings), • the bill of quantities (after arithmetical corrections)/breakdown, • any other documents forming part of the contract. Addenda shall have the order of precedence of the document they are modifying. Advanced Training PRAG Works 5 -7 April 2011 57

This project is co-financed by the European Union and the Republic of Turkey Contract Documents - 2 • The Tender Form with its appendix (Appendix to Tender) – Extremely important and has priority over all documents – Try to put all numeric and contract specific info on this table – Use it effectively to check the contract and practical conditions – More detailed info during the upcoming FIDIC training • Volume 2; – All guarantees and forms need to be arranged according to the relevant FIDIC clauses Advanced Training PRAG Works 5 -7 April 2011 58

This project is co-financed by the European Union and the Republic of Turkey Exercise # 4 ü Please use the below link to download and prepare a Volume 4 (financial offer) for a construction project. ü Please add a «Summary Table of Breakdown of Tender Price» and assume the following for the exercise; • The project is a unit price contract • The total of the Bo. Qs for permanent works is 5, 600, 00 Euros • There is no price variation • Contingency is 10% of the permanent works • Day works is estimated to be 7% of the permanent works http: //ec. europa. eu/europeaid/work/procedures/implementation/index_en. htm Advanced Training PRAG Works 5 -7 April 2011 59

This project is co-financed by the European Union and the Republic of Turkey Agenda Session # 5 Day # 3 - Morning – – Tendering Tender Evaluation Award Process Exercise # 5 (Evaluation Grid) Advanced Training PRAG Works 5 -7 April 2011 60

This project is co-financed by the European Union and the Republic of Turkey Tendering - 1 • Always try to have a site visit; If not a clarification meeting • Allow proper timing for; Ø Tenderers’ questions Ø Preparing and approval of clarifications • Questions: up to – 21 days of submission deadline • Clarifications: - 11 days of submission deadline • Questions & clarifications to be published in relevant media. Advanced Training PRAG Works 5 -7 April 2011 61

This project is co-financed by the European Union and the Republic of Turkey Tendering - 2 • Tenders are valid for 90 days • Extension is possible up to max 40 days • For the successful tenderer further 60 days is added to the validity period irrespective of the date of notification Advanced Training PRAG Works 5 -7 April 2011 62

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 1 • Evaluations are held in phases: • Receipt and registration of tenders • Prepatory meeting • Tender Opening Session • Administrative Compliance • Technical Evaluation • Financial Evaluation • Conclusion Advanced Training PRAG Works 5 -7 April 2011 63

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 2 • Evaluation Committee – 5 members for contract < 5, 000 Euro 2 non-voting + 3 voting – 7 members for contract > 5, 000 Euro 2 non-voting + 5 voting – Reasonable command of English + technical & administrative capacity – Impartiality and confidentiality (conflict of interest) Advanced Training PRAG Works 5 -7 April 2011 64

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 3 – Responsibilities of the committee; – Chairperson is responsible for coordinating the evaluation procees. S/he is a non-voting member. – Secretary is responsible for carrying out all administrative tasks related to the evaluation. – Any request for clarification should be in written form – Equal treatment of tenders and applicants and in accordance with the principle of proportionality Advanced Training PRAG Works 5 -7 April 2011 65

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 4 • Tender opening session – – – To check tenders are complete and tender guarantee is submitted Restricted to the tenderers EU representatives should be informed (ex-ante) Opening checklist should be filled Chairperson has to check the conflict of interest of the Evaluation Committee – Tender opening checklist & report has to be completed Advanced Training PRAG Works 5 -7 April 2011 66

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 5 • Administrative Compliance Grid: • Documentation complete as required • Nationality of the Tenderer • Language Correct • Committee may request clarifications within reasonable time • Only compliant tenders go on to next phase Advanced Training PRAG Works 5 -7 April 2011 67

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 6 Tenders falling in the following situations should not be rejected (2. 8. 3 PRAG) • • Fewer number of copies Correct templates and the requested information is provided, but in an incorrect section Tenders not signed or scanned signatures, request subsequently if not obtain then reject Candidates demonstrating a required document is not present but an alternative is provided Advanced Training PRAG Works 5 -7 April 2011 68

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 7 Technical Evaluation: • Done Lot by Lot; - Be careful about criteria for tenderers tendering for multiple Lots • Use the Evaluation Grid in the tender dossier • Rules of origin • Eligibility of sub-contractors • Required Capacity (economic, financial, professional and technical) • Only technically compliant offers go on to the next phase Advanced Training PRAG Works 5 -7 April 2011 69

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations - 8 Financial Evaluation: • Check arithmetical errors • Calculate discounts for multiple Lots • Contract is awarded to the lowest compliant offer; within the available budget • Evaluation of variant solution – only those submitted by the lowest compliant offer • Problem of abnormally low offers Advanced Training PRAG Works 5 -7 April 2011 70

This project is co-financed by the European Union and the Republic of Turkey Contract Award - 1 Evaluation Committee recommends to: • Award the contract to the tenderer which Ø complies with administrative and technical requirements Ø is the lowest offer within the maximum budget available • Cancel the procedure Advanced Training PRAG Works 5 -7 April 2011 71

This project is co-financed by the European Union and the Republic of Turkey Contract Award - 2 • • • Contracting Authority & EUD must approve the evaluation report (Ex-ante) Inform the successful tenderer and ask for «Proof documents» - 15 days Prepare contract Sign and send 3 copies of contract Ø 2 copies to be returned in 30 days with the financial guarantees Ø effective from the date of the last signature Publish Contract Award Notice Inform unsuccessful tenderers in max 15 days with standard letter Ø Return the tender guarantees Advanced Training PRAG Works 5 -7 April 2011 72

This project is co-financed by the European Union and the Republic of Turkey Tender Evaluations Case # 1 Let’s review the existing evaluation grids. Advanced Training PRAG Works 5 -7 April 2011 73

This project is co-financed by the European Union and the Republic of Turkey Exercise # 5 Please fill in the technical grid, using the attached Instructions to Tenderers. Advanced Training PRAG Works 5 -7 April 2011 74

This project is co-financed by the European Union and the Republic of Turkey Agenda Session # 6 Day # 3 - Afternoon • • • Negotiated Procedure Suspension Clause Additional Works Variant Solutions Contract Modifications Rules of Origin Supervision To. Rs Discussion for future trainings Overall evaluation of the training Advanced Training PRAG Works 5 -7 April 2011 75

This project is co-financed by the European Union and the Republic of Turkey Negotiated Procedure • • Prior approval is required Only applicable in limited cases; • In case of urgency • With public entities / non-profit institutions • Extends on-going activities • Unsuccessful tender procedure • Design competition • Monopoly situation Negotiation report required No threshold Advanced Training PRAG Works 5 -7 April 2011 76

This project is co-financed by the European Union and the Republic of Turkey Suspension Clause • In exceptional and duly justified cases, tender procedures may be published with a Suspension Clause (2. 4. 12), i. e. a tender procedure is launched before a financing decision is issued or a financing agreement signed between the European Commission and the Beneficiary Country. • The award of the contract is subject to the conclusion of the financing agreement and the provision of the funding. • Existence of a suspension clause must be explicitly mentioned in the procurement notice. • The procedure will invariably be cancelled if the EC’s decision making procedure is not completed or the FA is not signed. Advanced Training PRAG Works 5 -7 April 2011 77

This project is co-financed by the European Union and the Republic of Turkey Variant Solutions-1 • Variant solutions may only be allowed in the case a derogation has been granted to use best value for money as award criteria. See point 24 of ITT (award criteria). • «Tenderers must submit a tender in accordance with the requirements of the tender dossier. If the invitation to tender provides for variants to be submitted, the technical specifications and evaluation grid must specify the subject, limits and basic conditions applicable. Should the tenderer wish to submit variant technical proposals, it may do so. Only variants proposed by the tenderer submitting the lowest compliant tender will be considered by the Contracting Authority. Any variant proposal must be submitted in a separate inner envelope, clearly marked "variant «. Advanced Training PRAG Works 5 -7 April 2011 78

This project is co-financed by the European Union and the Republic of Turkey Variant Solutions - 2 «Such variant proposals must contain all the details necessary for their thorough evaluation, including drawings, design calculations, technical specifications, <for unit-price contracts: > Bill of Quantities and Price Schedule <for lump-sum contracts: > Breakdown of the Lump-sum Price and proposed construction methods. Any variant solution must comprise: • an individual tender for the variant solution; • a demonstration of the advantages of the variant solution over the initial solution, including a quantifiable justification of any economic and/or technical advantages; • the drawings and specifications provided for in the initial solution which are not affected by the variant solution; • the drawings and specifications affected by the variant solution; • a technical note on the design of the variant solution and, where appropriate, drawings and calculations. Advanced Training PRAG Works 5 -7 April 2011 79

This project is co-financed by the European Union and the Republic of Turkey Rules of Origin - 1 • All goods (supplies and materials) purchased under a contract financed under an EU instrument must originate from the EU or from eligible country. • The term origin is defined in the relevant EU legislation on rules of origin for custom purposes. • Where there is only one country of production, the origin of the finished product is easily established. Advanced Training PRAG Works 5 -7 April 2011 80

This project is co-financed by the European Union and the Republic of Turkey Rules of Origin - 2 • In cases where more than one country is involved in the production of goods it is necessary to determine which of those countries origin of goods on the finished goods. The country of origin is deemed to be the country in which the goods have undergone their last economically justified substantial transformation and the provisions of Article 24 of the Community Customs Code must therefore be applied on a case by case basis to those goods. Advanced Training PRAG Works 5 -7 April 2011 81

This project is co-financed by the European Union and the Republic of Turkey Rules of Origin - 3 Rules of origin do not apply to; • Equipment used by a contractor for executing the works • Machinery used for testing and installing the supplied goods Where the provision of a Certificate of Origin is not possible (before presenting the commercial invoice), the tenderer in these cases can submit its own declaration. The Original Certificates of Origin must be submitted before provisional acceptance. Advanced Training PRAG Works 5 -7 April 2011 82

This project is co-financed by the European Union and the Republic of Turkey Contract Modification- 1 • • Justified reasons Must not alter major tender conditions No retroactivity Within the execution period of the contract 2 ways: • Via administrative order • Via addendum Advanced Training PRAG Works 5 -7 April 2011 83

This project is co-financed by the European Union and the Republic of Turkey Contract Modification- 2 Administrative Orders Minor modifications • Address or bank account • Auditor • Contractor’s personnel Signed by the Project Manager Advanced Training PRAG Works 5 -7 April 2011 84

This project is co-financed by the European Union and the Republic of Turkey Contract Modification- 3 Addendums Major modifications • Must not change the scope of the contract • Extend contract duration • Budget changes (for lump sum contracts) • Additional works Signature; same procedure as for contract Advanced Training PRAG Works 5 -7 April 2011 85

This project is co-financed by the European Union and the Republic of Turkey Supervision To. R – 1 The relevant sections of a works tender dossier and the supervision To. R should be in line with; • Contract Durations • Works (execution + 12 months DLP = X) • Supervision: Ideally X + 2 (1 + X + 1) • Man-day calculation of the Supervision Team Advanced Training PRAG Works 5 -7 April 2011 86

This project is co-financed by the European Union and the Republic of Turkey Supervision To. R - 2 • Project Description • Facilities to be provided for the Engineer (Supervisor) • Expert Profiles of the Supervision Team; Ø «Design – Build» or «Employer’s Design» or Hybrid Ø Short term expert pool Ø Lots and construction sites Ø Complexity of the works (required technical experience vs. international experience) Advanced Training PRAG Works 5 -7 April 2011 87

This project is co-financed by the European Union and the Republic of Turkey Summary of Training • We focused on PRAG Works Ø Tendering & Contracting • • Next Trainings Ø Introduction to FIDIC & Contract Management Ø Advance FIDIC & Contract Management • Any suggestions / recommendations? Advanced Training PRAG Works 5 -7 April 2011 88

Thank you / Evaluations This project is co-financed by the European Union and the Republic of Turkey Advanced Training PRAG Works 5 -7 April 2011 89