Contracts & Procurement Manual_2011

Rev

0

A1

A2

. )

CONTRACTS & PROCUREMENT PROCEDURE MANUAL

LUSAIL REAL ESTATE DEVELOPMENT COMPANY

Date Reason

9 Jul2009 Issued as Draft

27 Sep 2009 Issued for Use

16 Dec 2010 Incorporation of improvements and

amendments to comply with ERP

CONTRACTS & PROCUREMENT

PROCEDURE MANUAL

Prepared By:

Abdulaziz AI Mulla

~ Lusail Contracts & Procurement Director

'\ ,- AI.1'I'led Sf/ern AIJ<IA war;

Reviewed By:

~-------------Jassim Abdurrahman AI Emadi Lusail Design Director

Hamad Ali Alabdulmalik Lusail Phase 1 Director

'itl Fairoz AI Homaidi Lusall Phase 2 Director

Khalid Ebrahim AI Hammadi Lusail Project Controls Director

Magdy Youssef

, '

<=)1 \ _ {"-> ---------- -------------------

02-1 ""-o __ -:?-Lusail Administration Complex (LAC) Director

r- / Salem Rashid AI-Kuwari -to ( Lusail EHSS & Logistics Director

Ibrahim AI-Abdulla Lusail Administration Director

Certified By: Approved By:

------------------------------------~-

-

Essa Mohammed Ali Kaldari Lusail CEO

Mohammed Bin Ali AI Hedfa Lusail Deputy Chairman

Ghanim Bin Saad AI Saad Lusail Chairman

CONTRACTS & PROCUREMENT PROCEDURE MANUAL

Chapter 1- Definitions , Terminologies, Abbreviations , Delegation of Authority and Document Signature Matrix

Chapter 2 - Vendor List Management

Chapter 3- Pre-Qualification Procedure

Chapter 4 - Purchase Requisition

Chapter 5- Tendering Procedure

Chapter 6 - Technical/Commercial Bid Evaluation Procedure

Chapter 7 - Contract Award and Finalisation Procedure

Chapter 8 - Variation to Contracts Procedure

Chapter 9 - Contractor Claims and Disputes Resolution Procedure

Chapter 10 - Liquidated Damages for Delays Proced ure

Chapter 11 - Contracts Close Out Procedure

Chapter 12- General Purchasing Procedure

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DEFINITIONS, TERMINOLOGIES, ABBREVIATIONS~

DELEGATION OF AUTHom-rY/AND _'\...... " -'- /

DOCUMENT S:~~

OR8TER1

Rev Date Reason

0 9 Jul2009 Issued as Draft

A1 27 Sep 2009 Issued for Use

A2 16 Dec 2010 Incorporation of improvements and


LPMS 2009 © Copyright LUSAIL. All rights reserved

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D~finiti(ms, 'f;~¥~inoI9gies, ~bbtl~vilttiqJfs, p«;l~egation of -' .::.: ",- ~\, <~ '-. ,'0" ~ ~, ~

. ", t\jItliQrity ~nd:Qoc!lntev.fSigpatiJJ::e' ~ajtjx· ~i: ::'2.:d~~~.~~~:ij::-\': :'<-~:~:-: ~2:::; ;!}~j,~i-lf1il~3.tL;~:>·~~;;·ji'~;.~, -: 0.j,~J!~!~:~t;i~'::t~:;;::{;/),~·i/' ~~i~iJ~j]j~;;~,~; -~ ~ LW'='~IL

CONTENT LIST

1.0 OBJECTIVE

2.0 DEFINITIONS, TERMINOLOGIES, AND ABBREVIATIONS

3.0 DELEGATION OF AUTHORITY

3.1 Generally

3.2 Financial Approval Authority

3.3 Procedural Approval Authority

4.0 4.0 DOCUMENT SIGNATURE MATRIX

CHAPTER 1 Page 1 of 14

Detiniti!!Ii~, Term,inologtes, Abbreviations, J.)elegatiori Qf .... A~JJ\Ority apdJ)o¢qp1e~t Sigp~tJli'e~~trix .

1.0 OBJECTIVE

The Objective of this Contracts and Procurement Procedure Manual is to provide users and those involved with procurement and administration of Contracts within LREDC with relevant information and practical guidance in managing the procurement process throughout the whole lifecycle from project initiation to award, and Contract administration pertaining to variations, claims & dispute resolution, delay damages and Contract close out procedures in order to ensure that LREDC achieve the best value for money in speedy and auditable manner.

2.0 Definitions, Terminologies, and Abbreviations

For the purpose of these procedures, the following words and expressions shall have the meanings assigned to them here under, except if the context otherwise requires.

Award Plan

Certificate of Completion (CC)

Chairman

Change Request (CR)

Chief Executive Officer (CEO)

Claim

Classified Tender

Company

Contract

Contract Amendment Form (CAF)

Contractor

CHAPTER 1

Recommended Courses of Action giVen/~e Evaluation Team pertaining to an award of a Contract. \,._,~ The Certificate issued by RD whe~~orks/servLceQe been performed and completed in accoraanc~ ,,<:,iih~he Contract. The Certificate of Completion (pall's~~~Ua"~m&ti6n date.

The Chairman of the COmRany~_ ~ V . A standard document'initia~d ~'RD for regularization and approval

of a variati07t6 ~r~ct. \ ('V : The Chief Executi~of t,\?80mpany.

: A~r~ ~~aj to a Contract for a right in respect of, <inter, alia, extra'rponey,..-ifnd/or time, and I or change in Contractual \erms'l~md ~nditi,ons.

s~<~:~,Jl!assified" . Vail~eal Estate Development Company.

: A ,riften legally enforceable agreement between the Company and another party under which such party provides goods or works or services or combination of either two or all of them in return of payment.

An agreement between the Company and the Contractor, stating the changes to the Contract, other than changes to the works or services or supply of goods, which are directly related to changes to the Works, or Services or supply of Goods, and that are duly signed by both parties on a Contract amendment form.

A party engaged by the Company to procure goods or works, or services or combination of either two or all of them under the Contract.

Page 2 of 14

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Contracts & Procurement Department (C&P)

Contract Variation Form (CVF)

Delay Damages

Delegation Of Authority (DOA)

Direct Order

Discharge Certificate (DC)

Disputes

EOI

Evaluation Team

Exceptional Cases

Form of Agreement (FOA)

GCOC

CHAPTER 1

The department that provides commercial, contractual and legal support during the complete process of procurement from prequalification of tenderers to Contract close out.

An authorized Order by the Company in accordance with the Delegations of Authorities formalizing a Variation, duly signed by the Company and the Contractor, stating the changes to the work, and related cost and time changes, in accordance with the Conditions of Contract or in the absence of any Conditions of Contract applicable variation provisions under the Contract.

A sum fixed in advance and agreed by the parties to a Contract as genuine pre-estimate of the losses that the Company may suffer due to delays in completion of the works/services which are solely attributable to Contractor. A The responsible delegated author~s $~O;)ed by the"\Board of

Directors. '" . ~ "" V/. The process of awarding CORtracts without comp~itivE}'tendering as per the Manual of AuthoriWreql:Jiremenisl0 V

Tho '''''~t~~ ~ ~~ fu, G,,_' P'''d, provided tha(the-C(:lOtraG~ ~as f~lfilied all of its obligations under

the contract\ L/ . 1 V . Whe~~ntract~nt<\lns / pursues a Claim which has been

/ejectea by tHe Corii'pany ip,the first instance, or when the Company <. does n~~OnV(W'its_irlifial determination within the time frame ~pe;;ified in \he 0entract, the Claim is then deemed to have become a'Disp'Ut~ )

EX~S~Of'r;;terest. .~. comprising nominated members from RD, PCD, C&P and FinanCe Department as applicable. / Those urgent situations where works or \services are required to be carried out for construction, financial, safety, security or environmental reasons, and delay of which exposes the Company to significant consequential losses.

Standard form provided in Tender Document that is signed by the Company and the successful Tenderer in 2 originals upon finalization of the Contract, and forms part of the Contract. FOA summarizes Contract details including the Contract Price and the Completion Date.

General Conditions of Contract.

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Defilliti~lls,TermiilOlogi.e~,Ab1J.reviatiolis,D~I,egatioll (jf

AUJJIpdtyalld,DQc~hll~lltSigllat1,1l"eMl.I,ttI;x " '," , ' " .' ,.,:.,,:,', ',' :"'::":'::"~"""':",:,§, ::>' ,'"

Goods

GTC

Guarantee Period

ITT

KPI

Letter of Acceptance (LOA)

liquidated Damages (LD)

LREDC

Notice

Notice to Proceed

Open Tender

Project Controls Department "PCD"

CHAPTER 1

All materials, tools, commodities, machinery, equipments and the likes to be procured or sold.

General Tenders Committee

A fixed period after the Completion Date, as per the Contract conditions, during which the Contractor stands to guarantee the performance of the works! services executed by it and to the effect of which it submits Performance Bond valid for the Guarantee Period plus 45 days,

Instruction to Tenderers for submitting Tenders,

Key Performance indicator.

Letter of Acceptance (LOA) notifies a su~ssful Tenderer of the Company's acceptance of its Tend~r ~~ obligating it to submit Performance Bond, Insurance <::Certificates 'an~~ other documentation stipulated in the LQA. If"al~,advises !!Jaf formal Contract Documents are being pre~ared:and\.stipulates that the Contractor is not authorizedt;:;;=commellce wit'\ the)26ntract Works until a Notice to Proceed ~ r co~'Emcem~Ver is issued.

: See, "Delay Damages~, V

. S"'~~ :~e~ti~~ submitted under any article of the GCOC of a

C;I~m, 'eon(roversy, dispute or difference under the Articles! provis~a1:ontract.

\ 1;h{'N",otice to Proceed letter, which acknowledges receipt of /Performance Bond, Insurance Certificates and other documents rJqLiired by the Agreement and authorizes the Contractor to

/commence with the Works.

See, "Tender, Open",

The department that deals with all matters relating to cost and time, It is the focal point for controlling all expenditure and reporting on time and cost matters to RD and to senior management. This includes estimates and budgets; cost planning; payment applications; reviewing and recommending cost and budgets for Variations and Claims from Contractors.

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Requesting Department (RD)

De&nitions, Te!-,~iJlologies; A"'bl.'eyj!lttQf).~;Helegat~OIi9f •• Aii:thorityl!.nJtI>-~c:UPlentSig'~lltp.·~eMatri;x

. _', _, ' ';" - _,:.,', .. _: ". .,," ,_ 'I' :';. ~ , ,,-",: " :.,,"- __ - ," - __ '

Any department .or unit .of the Campany that is respansible far specifying, cantralling and supervising warks .or services ta be perfarmed under a Cantract .or Agreement, liaisan with ather Departments within the Campany and that is accauntable ta the Campany. RD shall alsa remain as the facal paint .of cammunicatians with Tenderers, suppliers and the like far all the pre-award activities and during the pracess subsequent ta the singing .of Cantract agreement and canclusian .of the farmal cantractual relatianship pertaining ta services .or warks .or gaads ta be pravided.

Respective Department The Department ta which the reference is made within the procedure dacument.

RFP

SOS

SOW

Statement .of Final Accaunt (SFA)

Tender Bulletins

Tender, Classified

Tender, Invitatian ta

Tender, Open

Tender, Plan

CHAPTER 1

Request far Propasal. See, "Tender/RFP "

Scape .of Services. ~

Scape .of Warks. 6 ~

Statement jaintly signed by the Campa.(ly and e Gantractar indicating the Original Cantract Price '(OCPj\Va?iatians(cleductiansl amissians due ta nan-util~zl3'tia'i1'ot.ze m'easur~l:Jle W.0rks .or services .or LD recavery, thereby a\vi~~t the~~ Captract Price and the

'0" "="m ,,"y.blo. ,\ V ~ V

: Recards .of 2~etingS,(spanses ta Tenderers queries and all~ther\cammur:licatians clu19ng the pracess .of bidding will be issue'\:J~ w'l-itingjjlthejp~m .of Tender Bulletins

:~e~ende\Ii~~d<'l-Ce~ campanies and carparatians which are ~nvest~ated\ and prequalified based an their gaad repute and e~ellence in fin~ncial and technical affairs and .or thase campanies and~ar~ti~§ which are already knawn ta the Campany based an past-contractual and project relatianship.

A~al invitatian ta procure gaads, warks .or services .or c~l5inatian .of twa .or mare .of such gaads, warks and services

·Vstating the terms and canditians far submissian .of Tendersl Bids far a particular Cantract and which is issued either by public advertisement .or by a letter narmally accampanying Tender Dacuments .or Request far Prapasal (RFP).

The Tender annaunced in accardance with the provisians .of these procedures ta chaase the mast suitable bid, which is either lacal ta be annaunced inside the State .or internatianal ta be annaunced inside the state and abroad.

Strategy far the executian .of the procurement pracess far warks and .or services except far .open tendering.

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.1)etinitipnS;T()rIl1!~oIogies,.~~~t¢yjati!ms'l'eteg~j;joIi of· .1\~th9xio/aIi4 PO~YTII~n,(~!~I!ll~~I:()JVI~kix .

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Tender/ RFP

Tender / RFP Documents

Tenderer

Variation to Contract (VTC)

Vendor

"'-'- ., .. '

A formal offer received from a Tenderer to supply goods or provide services or execute works at a stated price(s) or rate(s) in response to a formal Invitation to Tender Documents issued by the Company

(Note: 'Bid' is an acceptable alternative term and shall have the same meaning as 'Tender').

A set of documents issued to Tenderers Bidders describing the goods or works or services or combination of either two or all such requirements to be procured and the relevant terms and conditions against which Tenders/ Bids should be submitted.

Any natural or juristic person or entity who submits a Tender/ RFP to the Company in response to an invitation to Tender or submit RFP.

A change to the works or services or prJvi:'-L0n of goods, or rates and prices or milestone dates/completi0'1.. dea~nes/ change in the sequence of the works or services O~IlP-pIY oZ goo~('and duly signed by both parties on a CVF. <~\, ~~ V/. Any natural or juristic person-or enti~ho proviae goods, Works or

S,.;'" (;, Soppl;". C riim\;:' c"~') V

3.0 Delegation of Authority

3.1 Generally A \ • Delegatidn of ~thO~'{l1~X illustrates the responsible delegated authority

as ap{~ea~ th'e,\usai\ Board:.'

• Approvals"c.equJred..-undyr these procedures can be categorized as either ~Fi~cial App~Procedural Approvals.

~The res~0~le delegated authority shall always ensure that appropriate de~tion has' been made when that person or committee is unavailable.

• In the e~that any person is not available for an extended period of time or is unable to meet the required deadlines, then the "Authorized Person" shall temporarily delegate in writing a substitute authority. Any such substitute delegation shall be approved by the CEO.

3.2 Financial Approval Authority

CHAPTER 1

• Approvals based on financial consideration shall be made in accordance with the Financial Approval Authority Matrix as shown in Table 1 below.

• Contracts having values up to QR 1 M shall be approved by the CEO or his delegated Authority. However for General Purchases, CEO has authority to

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Definitions, Terminologies, Abbreviations, Delegation of Authority and Document Signature Matrix

L...LJ=r=lIL.

approve up to OR 500,000 only. Purchase Orders having value between OR 500,000 to OR 1,000,000 shall be endorsed by CEO and approved by the Lusail Chairman or his delegated authority.

• Contracts having values range between OR 1 M to OR 100M shall be approved by GTC.

• Contracts having values in excess of OR 100M shall be approved by the LREDC Board . The submission must be endorsed by GTC before forwarding the same for Lusail Board.

Financial Approval Authority Matrix

~ "C ~

0 co ... <: 0 u ~ co In CATEGORY! TYPE VALUE (QR) .,

0 _ E ~ ... i5 C ~

.- ~ 'n; 0 co ,- U I/) co I/) C U .= ~ .:liS' t; ::s 0::: D..C ..J

\ "- "- y' / 1

PURCHASE REQUISITION (approval to make a request, to procure Services! Work or Goods)

Up to 2,000 \ ~ 'A "-.

From 2,000 to 1 0,000 \ '" E AI Above 10,000 \ .

A

2 PROCUREMENT (approval for procurement of ServiceslWork or Goods) 1.1 Direct Order Up,to 11,000 ,000 \ \ / A

(single sourcel Sale / .':\ '-- ') J v source) From " ,000,000 to 10,000,000 A

Above 10 ,000,000 / E A \ '\. \

1.2 Tendering \ \ Technical Bid Approval UP-to" ,000(000 A

( "- Above )<000,000 A

"- "- ~

Commercial Bid Approval IJp to 1,000,000 A

"- / From 1,000,000 to 100,000,000 A Above 100,000,000 E A

1.3 General Purchasing Up to 2,000 A From 2,000 to 10,000 E A From 10,000 to 500,000 A From 500,000 to 1,000,000 E A From 1,000,000 to 100,000,000 A Above 100,000,000 E A


~ Definitions, Terminologies, Abbreviations, Delegation of ~~ Authority and Document Signature Matrix

L-LJ'::'r=I!L

~ ~ c:: 0 oS .- '" =-c

ot> 0 '" E u '" ~ CATEGORY I TYPE VALUE (QR) u~ w II) .: l- I/) '" o::.~ 0.. .: u :l '" C> :l 0 ...J.r:. ...Jm 0 0 u

3 VARIATION (Approval to issue a Variation Order)

Up to OR 10,000,000 cumulative, or 10% of original Contract Price (which ever is less) A

Above 10% of Original Contract Price or above OR 10,000,000 up to OR 100,000,000 cumulative E A

Above OR 100,000,000 E A 4 CONTRACT RENEWAL (e.g. Service Contract)

Renewal value up to OR 1,000,000 < "- A From 1,000,000 to OR 100,000,000 A Above OR 100,000,000 <. t" 'v/ E A

A= Approve

TABLEt ~"v • • E= Endorse \ ~ ~

3.3 Procedural Approval Authorfty ~\ \' • All the Tende{s"h'avi~g estimated\ valilie up to OR 1 mi ll ion or Direct Orders

shall be processed via CEO. / )

• All the Tenders having estimated value above OR 1 million shall be processed via GTC.

• All Contracts for the ~U~IY of goods, works and provision of services shall be signed by ttie-GEO.

• ~missions ~ GTC shall be signed and forwarded by the respective RD Director.

• All Contract Variation Forms sha ll be signed by the LUSAIL REPRESENTATIVE

4.0 DOCUMENT SIGNATURE MATRIX

Document Signature Matrix illustrates the Originator, Reviewers and authorized Final Signatory for each document produce by concern LREDC departments.


c DOCUMENT DESCRIPTION

A. PRE-QUAUFICA TION

GTC/CEO submission seeking approval to carry out pre qualification exercise

Pre-qualification Advertisement Request Form

Prequalification Bulletins or Clarifications

Pre-qualification Evaluation report to GTC/CEO

Evaluation Report submission memo

B. TENDERING

Non-competitive Bid Justification Form

EOI Letter to prospective bidders

Tender Plan Submission to GTC/CEO

Advertisement request Form for open Tender

Detailed Cost Estimate to GTC (estimate above 1 million)

Detailed Cost Estimate to CEO (estimate below 1 million)

Invitation to Tender (Classified Tenders)

PM - Project Manager SCM - Sr. Contracts Manager eM - Contracts Manager PCO-8 -Controls Budget Manager PCD-C -Controls Cost Manager PCO-P -Controls Planning Manager

Document Approval Matrix (Rev 7 -24022011).doc

V DOCUMENT SIGNATURE MATRIX - LUSAIL

ORIGINATOR

PM

CM

PM

PM

CM

PM

CM

PM

CM

PCD-B

PCD-B

CM

REVIEWED REVIEWED REVIEWED BY BY BY

CM SCM

SCM PM

CM SCM

CM SCM RD- Director

SCM C&P-Director

RD- Director C&P- PCD Director Director

SCM PM

CM SCM

SCM PM

RD Director

RD Director

SCM PM

GCEO- Group Chief Executive Officer CEO- Chief Executive Officer CFO- Chief Financial Officer

REVIEWED BY

C&P-Director

C&P-Director

C&P-Director

C&P-Director

C&P-Director

Lusail Deputy Rep. - Lusail Representative nominated Deputy

FINAL SIGNATURE ENDORSE BY

RD- Director

C&P- Director

RD- Director

Chairman-Evaluation

Team (from RD)

RD- Director

CEO

RD Director

RD- Director

C&P- Director

PCD- Director CEO

PCD- Director

RD- Director

PCO- Project Controls Dept C&P- Contracts & Procurement Dept. RO -Requesting Department

o COpy TO

PCD

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- - - - - -- --- - - - ------- - -- - -- ------ - - -----DOCUMENT SIGNATURE MATRIX - LUSAIL

DOCUMENT DESCRIPTION ORIGINATOR REVIEWED REVIEWED REVIEWED REVIEWED

BY BY BY BY

Tender Bulletin (with time or cost PM CM SCM PCD impacl)

Preparation of Tender Bulletin (to PM CM SCM C&P-extend tender closing date) Director

C. TECHNICAL & COMMERCIAL BID EVALUATION

Forwarding Memo of Technical Bids to RD

TenderlTender Bond Extension Faxes

Tech. Bid Clarification Faxes

Tech. Evaluation Report

Cover memo to GTC/CEO with Tech. Evaluation Report

GTC approval to communicate with Tenderers for Commercial Bid Clarifications

C&P Director approval to communicate with Tenderers for Commercial Bid Clarifications (if , tenders via CEO)

PM - Project Manager SCM - Sr. Contracts Manager CM - Contracts Manager PCD~B -Controls Budget Manager PCD-C -Controls Cost Manager PCD-P -Controls Planning Manager

Document Approval Matrix (Rev 7 -24022011 ). doc

CM

CM

Chairman-Technical Evaluation

Team

All members of Technical Evaluation

Team

Chairman-Technical Evaluation

Team

Commercial Evaluation

Team


Team

SCM

SCM C&P-Director

CM SCM

CM/SCM C&P- PCD Director Director

SCM PCD-C

SCM RD-Director

GCEO~ Group Chief Executive Officer CEO~ Chief Executive Officer CFO~ Chief Financial Officer

C&P-Director


FINAL ENDORSE BY

SIGNATURE

RD- Director

RD- Director

C&P- Director

RD- Director

RD- Director

RD-Director

RD-Director


Team ---- - - -

PCD- Project Controls Dept C&P- Contracts & Procurement Dept. RD -Requesting Department

COPY TO

PCD / GTC

Secretary

Chairman-Evaluation

team

Page 10 of 14

c DOCUMENT SIGNATURE MATRIX - LUSAIL

DOCUMENT DESCRIPTION ORIGINATOR

Invitation Fax for Tender Negotiation & Chairman-Clarification meeting Commercial

Evaluation Team

Tender Negotiation & Clarification Letter Chairman-(to be distributed at the negotiation Commercial meeting) Evaluation

Team

Commercial Evaluation Report & Award Commercial Plan Submission to GTC/CEO Evaluation

Team

Cover memo of Commercial Evaluation Chairman-Report and Award Plan Submission to Commercial GTC/CEO Evaluation

Team (CM)

D. CONTRACT AWARD & FINALIZATION

Letter of Acceptance

Notice to Proceed

Letter of Acceptance with Notice to Proceed (upon receipt of written request from RD-Director)

Letter of Conditional Award

Bond and Insurances Memo to Finance

Notice of Tender Cancellation to tenderers

Request to extend validity of Tender Bond of successful tenderer

PM - Project Manager SCM - Sr. Contracts Manager eM - Contracts Manager PCD-B -Controls Budget Manager PCD-C -Controls Cost Manager peD-p -Controls Planning Manager

Document Approval Matrix (Rev 7 ·24022011 J.doc

CM

PM

CM

CM

CM

CM

CM


SCM PCD Director C&P-Director

SCM PCD Director C&P-Director

PM SCM PCD Director

SCM PM C&P Director

CM SCM RD-Director

SCM PM C&P Director

SCM PM C&P Director

SCM

SCM PM

SCM

GeEO- Group Chief Executive Officer CEO· Chief Executive Officer CFO· Chief Financial Officer

REVIEWED BY

RD-Director

C&P-Director

RD-Director

RD-Director

RD-Director

LusaiJ Deputy Rep. - Lusail Representative nominated Deputy

FINAL ENDORSE BY SIGNATURE

RD- Director

Chairman/ Vice Chairman of GTC or any

GTC member delegated by

GTC Chairman

RD- Director

CEO

CEO

CEO

CEO

C&P Director

RD- Director

RD- Director

peD- Project Controls Dept C&P· Contracts & Procurement Dept. RD -Requesting Department

COPY TO

PCD

PCD

PCD

PCD

PCD

PM

Page 11 0114

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DOCUMENT DESCRIPTION

Leiter for review of draft Contract

Contract Signing memo to GCEO

Distribution of contract documents

Leiter of Regret (fax)

Request for Job Code

Notification of Contract Commitment Form

E. VARIATION TO CONTRACT

Change Requests Forms (CR):

Cover Leiter to CR form

Variations Approval Submission to GTC/ CEO

Contract Variation Form (CVF)

Leiter requesting Contractor to extend Performance Bond & Insurances

Bond and Insurances Memo to Finance

GTC/ CEO approval for Contract Amendment

Amendment to Contract Form

PM - Project Manager SCM - Sr. Contracts Manager eM - Contracts Manager PCD-B -Controls Budget Manager PCD-C -Controls Cost Manager PCD-P -Controls Planning Manager

Document Approval Matrix (Rev 7 ·24022011).doc

DOCUMENT SIGNATURE MATRIX - LUSAIL

ORIGINATOR

CM

CM

CM

CM

PCD-C

PCD-C

PM

PM

PM

PCD

CM

CM

PM

CM


SCM

SCM C&P Director

SCM

SCM PM

PM RD Director

PM RD Director

CM SCM PCD-C

CM

CM/SCM PCD-C/ C&P Director, PCD Director

CM/SCM PCD-C/ RD Director PCD Director

SCM PM

SCM

CM/SCM PCD-C

SCM RD Director C&P Director

GeEO- Group Chief Executive Officer CEO· Chief Executive Officer CFO- Chief Financial Officer

REVIEWED BY

C&P-Director

C&P Director

C&P Director

CEO


FINAL ENDORSE BY

SIGNATURE

C&P Director

CEO

C&P Director

RD- Director

PCD Director

PCD Director

RD Director

RD Director

RD Director

Lusail Representative

(As per the Contract.)



C&P Director

RD Director




COPY TO

PM

PM

PM

CM

PCD

PCD

PCD

PCD

PCD

Page 12 of 14

V DOCUMENT SIGNATURE MATRIX - LUSAIL

DOCUMENT DESCRIPTION ORIGINATOR

F. PAYMENT RECOMMENDATIONS

Payment recommendation, TRAP Form PCD-C

G. CLAIMS & DISPUTE RESOLUTION

Initial rejection of claim PM

Initial rejection of Dispute (Letter to CM Contractor)

GTC/ CEO Submissions in respect of CM claims and disputes

Settlement & Release Agreement(SRA) CM

H. LIQUIDATED DAMAGES FOR DELAYS

Notification of Delay

Letter to inform Contractor LD amount and invite response

Recommendation for waiver of LD to GTC

PM - Project Manager SCM - Sr. Contracts Manager eM - Contracts Manager PCD-B -Controls Budget Manager PCD-C -Controls Cost Manager PCO-P -Controls Planning Manager

Document Approval Matn'x (Rev 7 -24022011).doc

CM

PM

PM


PM PCD Director RD Director

CM SCM PCD Director

SCM/PM Legal Dept. C&P Director

PCD-C PCD Director PCD-P

SCM

SCM C&P Director PCD Director

SCM PM PCD-C PCD-P

CM SCM PCD-Director

CM/SCM Legal Dept. C&P-Director

GeED- Group Chief Executive Officer CEO- Chief Executive Officer CFO- Chief Financial Officer

REVIEWED BY

C&P Director

PCD Director

C&P Director

RD Director

PCD-Director

C&P-Director



CEO


(As per the Contract. )


(As per the Contract. )

RD Director


(CEO.)





RD-Director


v

COPY TO

PCD

Page 13 of 14

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DOCUMENT DESCRIPTION

Recommendation for waiver of LD to CEO

I. CONTRACT CLOSE OUT

Letter to Contractor with Certificate of Completion

Statement of Final Account

Discharge Certificate

Contract Close Out Report

J . OTHERS

Budget! Cash Flow submission and update

Committing to transfer of Contingency

PM - Project Manager SCM - Sr. Contracts Manager eM - Contracts Manager PCD-B -Controls Budget Manager PCO-C -Controls Cost Manager PCD-P --Controls Planning Manager

Document Approval Matrix (Rev 7 -24022011).doc

I,..; DOCUMENT SIGNATURE MATRIX - LUSAIL

ORIGINATOR

PM

PM

PCD

PM

PM

PCD-C

PCD-C


CM/SCM Legal Dept. C&P-Director

CM SCM PCD-Director

CM SCM PCD-Director

CM SCM PCD-Director

All Lusail Directors

PCD Director RD Director

GeEO· Group Chief Executive Officer CEO· Chief Executive Officer CFO· Chief Financial Officer

REVIEWED BY

C&P-Director

C&P-Director

C&P-Director



RD-Director







RD-Director

CEO

CEO

PCD- Project Controls Dept C&P· Contracts & Procurement Dept. RD -Requesting Department

• .....)

COPY TO

PCD

C&P/PCD

Page 14 of 14

VENDOR LIST MANAGEMENT

CHAPTE 2

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Rev Date Reason





I Vendor List M~nagement Procedure ..

PROCEDURE CONTENT LIST

1.0 DESCRIPTION:

2.0 OBJECTIVE

3.0 SCOPE

4.0 DELEGATION OF AUTHORITY

0 5.0 POLICY.

6.0 PROCEDURE

7.0 ROLES & RESPONSIBILITIES

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VendQr List Management PrQcedure

1.0 DESCRIPTION:

The Vendor List Management procedure refers to all activities related to registration, and blacklisting of vendors on LREDC databse. This process is of strategic relevance to the procurement function in LREDC and involves identifying and categorizing vendors based on their expertise and offering to LREDC. The two core processes included under this process include:

• Identifying and categorizing vendors based on predefined criteria per procurement category and sub-category; and

:.0 Li~::::::_ 00 prn·do'", ~I.g,,;::~

:: reg;::::: ~;m.;o 1t,1 01 ~,o~\:\> ?~' ERP ,%"m

This procedure is applicable for"a.[! activities related \0 ~endor registration, vendor selection to participate in any of LREDC te'~S~-b~endors.

4.0 DELEGATION~I~TY\ A ~ )

\ ~ '~ RD C&P V~dorv9)ent Directors Director

CEO

1 Complete ~~~o!:)j~ing in ERP Approve and attach su 'ortinq document

2 Blacklist vendors Propose Endorse Approve


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VendQr List Management:i?rQcedure

5.0 POLICY.

5.1 As a general policy, it is in LREDC interest to ensure as much as possible that all procured goods/works/services are sourced through the vendors registered in the vendor database.

5.2

6.0

6.1

6.2

6.3

6.4

The vendor registration and categorization criteria must be updated and revisited periodically. Each Vendor should be categorized and registered based on the following specific criteria as a minimum (refer to attachments 2-C:)

1.Job size carried out in past 5 years (number of projects, QAR) 2. Regional/country experience 3. Discipline / line of Business (consultant, contractor ... ) 4.Specialty (core experience according to Discipline covered) 5.Certifications (ISO, OSHA. .. )

PROCEDURE ~

There are two ways for registering vendors t8 the vendor d~tl~e. Ei her through vendor acceptance of an invitation (invite) or triro~endo}qpPIi,on,(request). The Vendor Registrar, based on predefined ~.~e~:~~s and certifications will

upload vendor details onto the E(~l to list ven(:;~

When necessary, Vendor R!"gistrar~O~~ERP by criteria to shortlist vendor

per engagement type. < ~~ 1 Vendor Registra~wfil\presE~ht the ShCrtJjg).0 RD. If the Requesting Department (RD) considers that the"wo'rks o~serv~;es to be contracted are of a highly technical / specialized nature [email protected]:.s)thayany potential commercial benefit or mitigating risks aSSOci?~\\~h in the absence Of pre-qualifications necessitate a pre-qualified list of Tendere,,'; an, whereSiaiii' of information on specific capabilities or suitable contracto;:S~e nQ.!/a(aiy.vle within the Company, then RD shall prepare a submission under the sig~ture }Vthe respective RD Director, with inputs from C&P and other departments as dlfimed necessary, and forward the same to the CEO or to the GTC for approval to carry out the pre-qualification exercise in accordance with the Delegation of Authority of the Classified Tender action.

6.5 In case of pre-qualification is necessary, the "Pre-Qualification Procedure" shall be followed for evaluating vendors either for tenders or in case creating a list of approved vendors to be utilized for future tenders.


6.6

6.7

7.0

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Vendyr List M::lUagelhent Procedure .. ' _ ',-, ,.-' ,- - " '- ", --- - - - - - --' _.," ,

If vendor is blacklisted, the status in the system will be changed to reflect the new status upon the receipt of request from RD in coordination with C&P and CEO approval.

If vendor is still valid, the status remains as listed.

ROLES & RESPONSIBILITIES

Vendor Registrar shall carry out the following responsibilities

• Upload vendor details onto ERP based on pre-dPSined G~.teria and attach all supporting docs ~

• Run reports to shortlist vendors

• Arrange for meetings! calls with ve!]f.lo~ when ~ore i~o is r,uired • Change vendor status to "blacklisred", afte receipt of req~st from RD in

coordination with C&P and CEO al pro\:) V


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Rev

0

A1

A2

PRE-QUALIFICATION PR~URE CHAP1\E~

Date Reason

9 Jul2009 Issued as Draft

27 Sep 2009 Issued for Use

16 Dec 2010 Incorporation of improvements and


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Pre-Qualification Procedure


1.0 OBJECTIVE

2.0 SCOPE

3.0 POLICY I MANAGEMENT INTENT

4.0 PROCESS

4.1 Initiation

4.2 Preparation of Pre-qualification Documents

4.3 Pre-qualification Advertisement

4.4 Issue of Pre-qualification Documents

4.5 Clarifications

4.6 Submission of Pre-qualification Documents \> 4.7 Evaluation

4.8 Classified Tender Approval ~~ 5.0 RESPONSIBILITIA \ V

5.1 Requesting Department (RD))

5.2 contrac!S~d pro~rem~t'Department (C&P)

5.3 Finan~ Depa~e~ ATTACHMEN~~ v. /

Attachment I ~';j ~q~9hart for Contractor Pre-qualification

Attachment B Sample of Pre-qualification Advertisement

Attachment C Sample of Advertisement Request Form

Attachment D Sample of Pre-qualification Evaluation Requirements


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Pre-Quali~cation Procedure

1.0 OBJECTIVE

This procedure details the method to be followed in the pre-qualification of contractors, suppliers, consultants, project managers and other service providers (All of them, hereinafter referred to as "Contractors" or Tenderers/Bidders for easy reference) in order to determine their suitability as potential Contractors for procurement of works or goods or services required by the Company.

2.0 SCOPE

This procedure applies to all personnel involved in the process for identification, evaluation and selection of Contractors as potential Tenderers to the Company.


4.0

The intention is to identify suitable Contractors to parti5,iR.ate in Classified Tendering where detailed information on specific capabilities or suitable contractors are not available within the Company database o~'Such'other situations where upgrading of Contractors' detailed information CI[{ r~uired by 't~ CdmPany unless the short listing process is drawn from a well R;;swn'\list'o\ conrra,;>or( in the industry where pre-qualification is not require . , V PROCESS ~ 4.1 Initiation c> \ \) / If the Requesting Department ~D)COnSide~ that the works or services to be contracted are of a highly- tec~~ic~r-! specializehl na\ure or considers that any potential. co~mercial be~O\ ~itigatir;.,ryks ~s¥Ciated with in the absence of pre-qualifications necessitate a pre-qualified list/of Tenderers and where details of information on sRec;;fiofapibilitie~ofsuitabl€Contractors are not available within the Company, th~1\ RD~ha~prep\re a submission under the signature of the respecti,fD Direclo{: withJDduts from C&P and other departments as deemed necessary, and forward'the same/to the CEO or to the GTC for approval to carry out the 'pr~-qJalificati~~ve';(ercise' in accordance with the Delegation of Authority of the Classifie~ T~der actian.

'\ v /

RD shall ensure thatihe submission details why the pre-qualification exercise is considered nece¥ary, how the list of Contractors is to be compiled (open press or public invitation or selective pre-qualification invitation) and shall highlight the criteria for determining the acceptability or otherwise of Contractors.

4.2 Preparation of pre-qualification Documents

Upon receipt of approval, RD shall develop pre-qualification criteria and documents, based on the standard format provided by C&P, and forward the same to C&P, who shall collect and compile the required documentation for issuance by RD to Contractors.

CHAPTER 3 Page 2 of 25 .

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4.3 Pre-qualification Advertisement

a) Where the pre-qualification is to be advertised, RD shall prepare a brief scope of work and brief details of the minimum capabilities that Contractors will have to demonstrate in their submission (refer to Attachment B). Alternatively, prequalification may be communicated to those parties available within the Company Database, where they have enhanced their operations to elevate its present status through official correspondence by the RD after obtaining C&P consent.

b) The Advertisement Request Form shall be completed and forwarded by C&P to the Marketing Department for advertisement (see Attachment C).

4.4 Issuance of Pre-qualification Documents

Pre-qualification documents shall be issued as mentioned in the advertisement or as advised by RD.

4.5 Clarifications 6:> Any queries and I or clarification from the Contractors shall bS ra~ed dire;:tly by written correspondence with RD for resolutio';/RI}~ coils~tatlo~ wit(19&P, shall prepare and issue responses to all Contractors in the fVorm of Bulletins or

Clarifications. \ ~ 4.6 Submission of pre-qUalifiC~IDocumeYs

date and time reqUested(R[h:\h'aIj-!~9lstenyCeiPt '0 the documents and names of the Contractors who submitted t~ dOO

4.7 Evaluaticfn~\ \

a) On ~before t~ubmission datl, RD Director shall nominate a representative from RD\to the Ev~lJ,Jation Teah, as Chairman. The Chairman will then call for nomiJJatio~s from /.C&P;-PCD and Finance. The Chairman may invite nomin'ation from/othe~departments for partiCipation in selected matters only. All invite~s~al~,~~Hhe Evaluation Report,

b) The Evaluation Team shall ensure that the pre-qualification evaluation is assessed against a predetermined set of criteria, Contractors will be required to answer a series of questions and submit specific detailed information, certificates ... "etc, If considered necessary by RD, Contractors may give a technical presentation in Qatar when is necessary and the Company may conduct site visits if required,

c) The Evaluation Team when necessary may issue a clarification letter prepared by the Team Chairman to the Contractors for any required information, clarifications, missing documentation ... etc, The clarification letter shall be signed by RD Director.


C)

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LLJ'='~lL.

d) See sample format in Attachment D for the criteria to be utilized in carrying out the evaluation of Contractors.

4.8 Classified Tender Approval

a) The result of the pre-qualification evaluation shall form part of the Tender Plan Submission I Strategy submitted to the GTC or to the CEO in accordance with the Delegation of Authority for approval.

b) Upon approval of the Tender Plan Submission, RD shall inform all Contractors of the pre-qualification evaluation outcome.

5.0 RESPONSIBILITIES

5.1 Requesting Department (RD)

Shall carry out the following: ~

• Determine the requirement for pre-qualification • Prepare the Tender Plan Submission and..submit i f~r approval. • Appoint the Evaluation Team, includi~1he Chairman",> • Compile the pre-qualification criteria ~ ~~ • Evaluate the pre-qualification documen s \ /_, _, _.~ • Prepare and issue pre-qUalif~iCatiOn bull~tins and claQtieation in consultation

with C&P. ( \ (' • Arrange presentations I siteisit~ired. ),. • Prepare the pre-gUalif~~t~uaty.~on Re'peft to obtain the approval from

the Approval Auth«nty:,~ /"-J • Register pre"qualifiMtion submissions • Distribute<P;:e-~~c'ation ~b'lnissions

5.2 (9ntracts ~~~ocurJnenl Department (C&P)

Shall car~ut the fOIiOWing:/

• R~ ~I~~d clarifications from contractual, commercial and legal pOintofv~y

• Provide inputs to the GTC submissions • Assist in compilation of the pre-qualification criteria • Issue requests for advertisement • Collect and compile pre-qualification documents • Participate in the evaluations

5.3 Project Controls Department (PCD)

Shall carry out the following:

• Assist in compilation of pre-qualification criteria • Participate in the evaluation. • Review bulletins and clarifications from cost and time point of view if any.



5.4 Finance Department


• Participate in the Evaluation.

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Attachment A - Flowchart Pre-qualification Procedure

RD prepa res submission with input from C&P

Prepare Advertisement Request Forms

Advertise

Is proposed r--I~ contract lesser than >-----yes-----~ CEO for Approval

1 million?

No

" ('

\ I

,.. / ,..

Is

/ <

Approval Received

RD prepares Prequalification documents and

criteria

~---------N~----------~

<

\ )

/ ,..

,

/

Provide clarifications to Contractor queries

Contractors submit questionnaire responses to RD

C&P & RD, PCD and Finance review and evaluate responses

Note: In the event of conflict between the flowchart and the text, the text shall preva il.


o Pre-Qualification Procedure

LW.=:.t=:IIL

Attachment B- Sample of Pre-qualification Advertisement

.- --

. ~ --- - - .

~ ~

~ ~

... _" - ... INVITATION FOR

PRE-QUALIFICATION

Lusail Real Estate Development Company invites submissions from Companies to demonstrate their experience and expertise to pre-qualify for the following proposed tender.

o TENDER NUMBER: TITLE

N.B. Bidders must be able to demonstrate in the pre-qualification their ability to meet the following basic requirements and criteria. (List requirements I criteria)

1

2

3

o 4

Pre-qualification documents can be obtained as follows:

Date of Release: I I . from hours

Location: Room No.

Pre-qualification submissions are to be delivered, in a sealed envelope, addressed to

o RD Director, P. O. Box , Doha, Qatar, clearly indicating the Tender


Pre-Qualification Procedure.

LW'=:'r-:=IIL

Attachment C· Sample of Advertisement Request Form

ADVERTISEMENT REQUEST FORM

To: Date:

From: Lusail Contracts & Procurement Director

Ref. No:

o CC: /'..

a Urgent a FYI a Confident a Please proc~~s\ ,,~ Pleas!l-.recycle

\~ V . ~"w \_h~

SUBJECT : INVITATION FOR PRE·QUALIFICATION ADVERTISEMENT

TITLE

PI,"oo fi,d "lIach,d "' ""'rt;'~'''' L:6\;Cn""," pmoo",

We would appreciate your action to ~~rtislng by _______ _

For further information, r;i~~~v\·t C~ tracts-drocurement Director's Office, Tel No. 44977570 ~ ~~

R~"ro, ~~_

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(Name)

Contracts & Procurement Director

o CHAPTER 3 Page 8 of 25


Attachment D - Sample of Pre-Qualification Evaluation Requirements

Project Name:

Project No.:

Project Information

General

Lusail Rea l Estate Development Company seeks to retain a highly qualified Consultant / Construction Company with a proven Technical/Construction background and record in (type of project) projects including, to carry out the construction of the [PROJECT NAME].

The Consultant / Construction contractor for this project will only be selected from qualified Firms recognized for Technical Competence / Construction Experience of this type of facility, or a Joint Venture with a qualified local Consultant / Contractor.

Project Information

[PROJECT NAME] '>

(

Description and Facilities /

\ /

Location/Size/Access:

(Insert location, size & access point)

) Land Use and Character

(Describe Project Site in General)

General Building Requirements

(Insert type of design & supervisory arrangements)

Special Considerations

(e.g. restricted access, restricted working hours, shared possession, live utilities etc. )

Associated and Related Work (Describe the nature of the work to be tendered for)

CHAPTER 3 Page 9 of 2S

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Pre.;.Qualification.Procedure

COMPANY PROFILE

S.N. Question Company's Response

1 Company Name

2 Legal Form

3 Country of Registration

4 Main Office Address

5 Correspondence Address

5.1 Mailing

5.2 Telephone No. ("" 5.3 Facsimile no. ("" "" V) 5.4 E-mail Address

~ "" "" "" / 5.5 Website \ ~~"">v 6 Name & Address of Sponsor in Q~tar- ~'> \ \/> ~v

A. STRUCTURE AND ORGANIZATIO( o---~ V 1. Description of comp~dncij:JanS;ct~ 2. ,:::: :~:f~~ (C::."o"Onhl, ~"f~'k InM~~' ~_/ In Gulf Region:0

In Qatar: ~/ 3. Names and addresses of associated companies, which would be involved in the

project? State whether Parent/Subsidiary/Other.

4. If your company is a subsidiary, what involvement if any, will the parent company have in the project?

5. Advise if your company works as a Main Consultant / General Contractor taking direct supervision of site labor or whether your company usually acts as a Construction Supervisor where all the work is subcontracted / Subconsulted?

CHAPTER 3 Page 10 of25

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Pre-QualificationPr(lcedure

6. Attach an organization chart showing your company's structure, including Parent Company, Subsidiary Companies, and Associated Companies?

7. Current status of Registration and licensing in QATAR Attach Certificate copies.

B. FINANCIAL INFORMATION

• All financial information to be reported in OR

• Provide all financial data as follows'

Principal Bankers

Name Address

A Current Access to Credit lines (to whom reference can be ma~,)", ~ ~ A

Bank Amount '" " ~ ~o'ricli~On{ (~ ~>V

Indicate maximum size of job that you believeyour o.:ganfz1ition~~~ndle.

(~\( Performance (Report the fOliowinAfoim<!!!9.n-foreac~ o~ihe last five (5) fiscal years.

A ~ ~<-<J

"" ::;~ 20------- 20------- 20------- 20-------,

Fiscal Year To To To To I

A 20------- 20- 20------- 20------- 20-------"'- /

./ ----Current Assets

"'" "'" /'" --------

Other Assets ~ v~ / v

liabilities Long Term Debt

Equity

Is the above information supported by certified annual accounts? Yel! NQ


o u (~ u ~ ~ .. .... . ...... ' . .. .. ...... . ..... .' I ~ Pre;..~uali1ication l~roc~dnre '.' • :

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EXPERIENCE & CAPABILITIES

Ust the Slargest Projects (in value) completed during the period 200X - 200X in QATAR

Project Name Client Name

Address & Tel. Nos. Project components - types of work items

/""

~ <:~~:::>

/~ \('1/ ;1 ~"" ) A'" ~ \

~ "'~~ , Average Cost of Projects~/.", Q'ARlus$lo~incy

'", . '" \

~ ~) "'''' '\" //'-)

" v "'" /


Value InQAR

Start Date

C)

Completion Date

o ,

(" '-./

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~ Pre-Qualificati()nProcedure ··1 LW~~IL

EXPERIENCE AND CAPABILITY

Ongoing Projects- Qatar List the 5 largest Current on-going Projects (in value) in QATAR

Client Name Project Name Project components Address & Tel. Nos.

/\-

\' \~ ~ /~ :)'v / \~

,g ,\\V( / " /\''- ~ IV

, ,,_~_ .• ) J Average Cost of Projects: QARlI:JS$1 ~Other c;yrrency

/"''-'' "'\'\ ~ ""\. \ '~", ) A "----' / '.

" '" CHAPTER 3 ,~, V) '- /

Page 13 of 25

u

Value In Start Completion

QARlUS$1 Date Date nr n+hor

. Pre-Qualification Procedure

LLJ£:::.~IL

EXPERIENCE AND CAPABILITY

Technical Capability

Fields of Specially

Component YIN Value Brief Summary OAR

Demolition

Piling & foundation works

Superstructure in RC.

Curtain walling A

Underground Parking A\ ~ A High Rise Construction <", ~ ~ V,/ Excavation and Shoring (~ ,~ ~V Fit-out \\> ">V

~

Architectural finishes (~ ~\ /"V

\

MEP works A ~ ) jV Utilities A ~ '''\ C ./

"", ~ ,

) Roads ) o Marine works (~ ~ /

Bridges ~ "'//) Landscaping 'v/ Phased Package Construction

Design & Build

Main contracting

Subcontracting

Others


Pre-Qualificatiol1 Procedure

D. RESOURCES:STAFF

1. Number of Permanent Staff: Technical and Field Administrative

Home Country:

Qatar:

Middle East:

Other Countries:

2. List of Managerial Staff: (Including Non Engineering Departments)


C' o o , ~

~ Pre-Qua'lij'i¢ati()nProc~dure· ... 'I L-U~t=ljL

4. List below information for other Key Personnel such as, Project Managers, Engineers, Schedulers, Material Engineers, Land Surveyors, Quantity Surveyors, Foremen etc., who are presently in your employment in QATAR.

o

Years of Experience Major works for which responsible

Name Present Position Academic Qualification With In In Value

Company Construction Middle Type Location InQAR East

A /' \~ ~ A ~ ~~. ~/

(.~. "" ~ '\ / \\>

, ,,>V ..----..

(~~\ ~ ../

A \ '-"" ~ '\ V /" ~. -~) "" . ..... /

CHAPTER 3

< " \ " \ \ '---...../

V,,~ ~ / /

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Pre:-Qualification Procedure

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E. RESOURCES: WORK FORCE

1. Insurance: Attach copies of insurance provided for workforce

2. What method does your company use for the hiring and/or recruitment of normal labor work force? (Local Hire, Direct Recruitment, JV Partners, etc.)

3. Total Work Force in Following Categories:

Technical: _____ --"Administrative:

Hourly Paid Field Workers _____ _

4. Labor Make-up:

Discipline Nation,\~~ A Designers ~~ ,~~' / Draftsmen \~~ ~v Operators

/' " ( (-/---~\ v ("

-/

Tradesmen ~ ~ )V ,.

Helpers (' ~ ~\ '\~ " Laborers < ~

",,"--/ A~

J



5. Accommodation: State where the labor force is housed and fed.

Location:

Type:

Capacity:

Food Provided:

Welfare arrangements:

6. Transport: How will the workforce be transported to the site?

o

F. RESOURCES: PLANT AND EQUIPMENT

~ 'Q Ust the major A ant and Equipment in your company's owners lip and available In afar.

~d\t> > "IOvfuedl Present Plant/Equipment Type Make ge" ' Quantity Locatio

~, r.. / Rented n

1. (d -~ \ ~

<; 2. (~~/ -j lV 3.

A ' ~ (' "" ,

/ 4.

~ "", " \ -

')

o 5. A "",- '-../ / 6. ~ ~/"

~,

> 7. ~ - /

//

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Pre~Qualification Procedure

LLJ:::,~IL

G. RESOURCES:OTHER 1. Subcontractors / Subconsultants

Will subcontractors / Subconsultants undertake any part of your contract?

State the type of work that will be subcontracted / Subconsulted, and if known, give the name and address of the subcontractors / Subconsultants that would be used. Include Subcontractor's / Subconsultant's Profile and information.

Item of work Subcontractor / Subconsultant Address and Contact

A /~ "'"

"'" A

'\

""'''''' v/ "-

~ "" ""V \> V Facility:

Location:

Activities/Product:

3. Procurement:

~nd~ate the resources aV31ilable to you, which you would use to el\~te~Ghase.of imported materials, long lead items, etc?

4. DraWings.", /

How will your"'mpany obtain the resources for the production of the shop drawings for the project?

5. Computers:

List the computer resources available, including hardware and software?


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Pre-QualificatiQn PrQcedure

H. HEALTH, SAFETY & ENVIRONMENTAL PROGRAMS

1. Please provide a description and information regarding your company's Job Site HSE Programs.

2. Name responsible person & provide CV

I. QUALITY ASSURANCE & CONTROL PROGRAMS

1. Please provide a description and information regarding your Company's Quality Assurance and Quality Control Program. Attach copy of any ISO certification.

2. Name responsible person & provide CV



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CLAIMS

1. Provide details of major claims submitted in the last 5 years

Project Client Address and Nature of claim Value Contact

GVv ) (; 0 V ~

A( ~\ :~~ (~/

" " A / /

A~ C/ ~ ~ ~)

~ :'v:>~ /

V

Contractor's / Consultant's Signature:

Name:

Position:

Stamp:

o



2. Provide details of major claims filed against your firm in the last 5 years

Project Client Subject Filed by Date Resolution

o <" ~ v0

~ ;$ /

~V /

~ /' " .-/-

~ ')")c / < ~j ~

V


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K Use of CAD

Licensed software Version

L. Project Management Practices

- Project Management Software

Licensed software Version

/-~

(c:-A~

/~ ""'. ''\ < M. Certified Pro;ect per~ne~~) )

/"" ""

No. of Licenses

No. of Lic.ense.s

" "" "'"

'> \\) ~\ \

') jV -/'

Trained Personnel

~ "" / Tf~ne~ P~sonnel

~~ » v

~>v /

Nari,e, ~ '-.....-/

/ "" Certification Since Position

~ v /

/ V

N. Risk Management Program

Do you have a formal Risk Management Program? DYES D NO If yes, please attach.



LLJ~~IL

O. DECLARATION

The Company declares that all the information provided by it in this

Prequalification Information Format is accurate and represents true facts.

(Executed by Authorized Signatory)

Contractor's I Consultant's Signature:

Name:

Position:

Stamp:

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ASSESSMENT

SN Description Comments Acceptable

Yes No

A STRUCTURE AND D D ORGANIZATION

B FINANCIAL INFORMATION D D

C EXPERIENCE & CAPABILITY D D

o D RESOURCES: STAFF D D A

E RESOURCES: WORK FORCE A\~ bJ D / "

~ ~~~' ' /

F RESOURCES: OTHER VD D

G RESOURCES: PLANT & \\>~V D D EQUIPMENT --

H HSE PROGRAMS (C /-~\ ('V D D

<~~ ~) V

D D 1 QAlQC PROGRAMS A

J CLAIMS ("'~~) '----~

D D OVERM:.{~COMMEN~ D pre-~~fy~ /> D Pre-qualify with the following conditions:

D Request ftJVation D Not suitable due to the following reasons:

Chairman - Evaluation Team

Name Signature

Date: / /

\ CHAPTER 3 Page 25 of 25

PURCHASE REQUISI<fION o PROCEDURE

CHAPT'R~

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Rev Date Reason





Purchas~ llequisitionProcedute


1.0 DESCRIPTION:

2.0 OBJECTIVE

3.0 SCOPE

0 4.0 DELEGATION OF AUTHORITY

5.0 POLICY.

6.0 PROCEDURE

7.0 ROLES & RESPONSIBILITIES

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CHAPTER 4 Page lofl

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1.0 DESCRIPTION:

The Purchase Requisition Procedure refers to manage requests for purchases. Requests for purchase of goods, works and services are documented and routed for approval within LREDC and then delivered to C&P.

Purchase Requestion

CHAPTER 4

QR 2,000 to 1,000,000

Minimum 3 quotes RfO

PQ'Call Off Agreement

Page 2 ofl

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Purchase Requisition Procedure

2.0 GENERAL POLICIES

2.1 It is the general policy of LREDC to adopt competitive procurement practices as per the

specified procurement methods in this manual, with the exception of cases that fall

under the Direct Order policy specified hereafter.

2.2 A Purchase Requisition (PR) must exist for all formal procurement activity between

LREDC and vendors.

2.3

2.4

2.5

2.6

2.7

2.8

Any Purchase Requisition requires to have a system item (good/work/service) allocated

to a corresponding code and category / sub-category before the,p;:dcess can proceed.

Refer to the DoA for hierarchy and approval authorifuls ~rt~h/tO/ParChase Requisitions. \. \. \.

The Requester from the Requesting Departme~)'must g~ sl:Jfficient notice time

when requesting an item in order to allow C&~\taff'to ~erJY PSlr?arm their tasks in

order to get the required goods d,verecr:>or the s~rJfces/worl?s procured as per the

required time. Refer to the StandarCI"M0nitori~ T/get :;able (Attachment K of

Tendering Procedures). A \~;::) ') V All PR's must be sUb'itled~ia th~ERP cYste~1I purchases at LREDC will occur only

through the C&P. No pJrcha~s w~be made outside the C&P except for petty cash

transactions. ~~) PR's sha,,~proved prior~ecution as per LREDC's Delegation of Authority (DoA)

matrix. Requ~ts ihay ndWe,split to bring value below these defined thresholds.

"V/ The RD can request fOl;jnformation (RFI) with the sole purpose of gathering market data

in those instances\vhere it is difficult to clearly define the scope/reqUirements of the

required goods/services/works. The RFI should reflect clearly a no commitment

statement.

3.0 UNAUTHORIZED PROCUREMENT

3.1 Transactions for the personal account of LREDC's employees are strictly prohibited and

will be refused by the C&P.


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o

PurciIase RequisitilmProcedure LLJ~r-lIL

4.0 COMMITMENTS

4.1 The C&P is the sole department authorized to make commitments for purchasing of

goods, and procurement of works/ services necessary for the operation of LREDC's

business units. Commitment of funds will be executed in accordance with requisitioning

and ordering procedures.

4.2

4.3

5.0

5.1

If the goods, works or service requested is not budgeted for, then the Budget Holder will

forward the PR for approval as per the Delegation of Authori(y'Matrix (Refer to the

D"'9""" of "''''''"' ""m". ~ '\ ~ Any required supporting documentation, such as/jQstific~i~~~ea, faxed, or

;;~;;.d to fu. C&P -0",,0, 7:i:~ ~of;~ p,"he" Dro"

PURCHASE REQUISITIO(OR VZORK~ / SERVICES

For requests works or serviceS~~~q~~pre~ares a Purchase Requisition (PR) on the ERP system. <.A'Ssigned'\staffs\o~l)I are/Eluthorized to complete the PR which undergoes several checkS'-Rrior loJPprova1Tiie fields for completion include:

yDate of ~~i~(month~ day, year) • N'a~e of the Reg~er1lnd Function .~ther~ta~6Iders with interest in the same good/works/services • sl'l~cifications / • Item~ode (Gategory pre-assigned) • Date requited (defined date)

v • Estimated budget • Preferred vendors (if any) • Scope of work (if any)

In addition, the following fields are required for all Requests for Contract:

• Payment preferences (to be coordinated with Finance Department) • Other specific terms and conditions • Call Off-Release issuer (if relevant)


~ ,-

o

~

I ~ ~~

" ,- --

pUl'cbase R~q1!isiWmProcedute: L...W'=:'R1L

5.2 In addition to the above, the ERP automatically checks the budget for the assigned PR, and in case of insufficient budget, ERP alerts the Requestor from the Requesting Department (RD) and the Finance Director. The Requester to coordinate with the Finance Department for any required budget amendments or transfers. Note: This is only a preliminary budget check to provide alignment of fund source and ensure that funding concerns (if any) are raised in advance before the final budget is secured. For budgets which are not secured at this stage, appropriate approval is sought as per the Delegation of Authority (DoA).

5.3 If the PR is not to be consolidated, upon finalizing the PR, the C&P seeks input from the RD. such as limitations, expectation, alterations, recommended vendors, contracting options, etc.

5.4

6.0

6.1

6.2

6.3

The C&P Manager selects the most appropriate purchasing method. Specifically for Projects, the decision of selecting the appropriate purchasing method is based on the Project Procurement Strategy.

PURCHASE REQUISITION FO> GENERAL PU>CHAS~ Once a procurement need is identified, the Re~om ~~eqUesting Department (RD) checks (through ERP) the availability of cOr'r\~~"'REDC Store

For goods which do exist in store,(aster:fO~Pletes a Material Requisition (MR) on the ERP system and the G~neral Se'rvices (StorekJeper) is automatically notified of the request. The MR includeS' tHe~"0.wiIJ9-iti~mat\mi:

• Date op.ifR,\m~h,-da~y~/ • Name o~~eql:Jester and Function

• Item code'\. U r~uantity reql:Jired

.~~erequ/\ Upon receipt of t~MR, the Storekeeper blocks the agreed stock, prepares an Issue Note and coordinates delivery for the Requester to receive the goods. The goods are received either at'tbe/RD or picked up at the Store depending on the nature of the good(s). The Storekeeper provides the requested goods along with the Issue Note to the Requester.

6.4 The Requester receives the goods and signs the Issue Note as evidence of receipt of the goods. The Issue Note is posted on the ERP system by the Storekeeper and this transaction generates an immediate accounting entry. The Storekeeper files the approved copy of the Issue Note and uses this as a future reference to track and report the movement of goods dispatched from the Store.


o

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Purcha:se.RequisitioRproc~~¥re

6.5 The PR is automatically checked on the ERP system and includes the authorized person to approve the PR, and item code checks. Any misalignments require the Requester to consult the appropriate party and/or follow the suggested path on the ERP system. Example: requested goods do not exist on the system and so the Requester is prompted to follow the Vendor Management/Item Master process. The process is followed until the Requester receives the code for the New Item and uses this on the system.

6.6 The C&P Manager performs a PR consolidation check to see if any similar open PR's exist (Le. not yet processed to a Purchase Order/. Similar PR's refer to those goods/services/works which are possible to purchase from the same vendor without affecting the quality and timeliness of delivery).

6.7

6.8

6.9

6.10

For similar PR's, the C&P Manager ensures that the delivery date of the PR match the potential consolidated delivery date. If no match exists, the C&P Manager obtains Requester's approval to change the delivery date for the PR. If the Requester's delivery date is not flexible to accommodate a consolidated delivery th~ it'will be dealt with as an independent request. 6 ~ 0 If the PR is to be consolidated, the C&P Manager consolidates,the:fR's a5Gordingly. This involves merging all the PR's into one consolitJ~ PR"~ith the int~ntion of issuing a single PO. Appropriate approval is obtained fo(PR as per LREDC'~DoK.

As per DoA, all PR's estimated at over thresh~ld ~ ~~ndering process. Please note that 'Exempt Commodit~Which inaYVb(valYeci over threshold must undergo the tendering process. (~\ /

The procurement methods in-6iQde one of the"following1

• Petty cas~p~cu~n;\<2:) procurement/G;orp"drate Credit G:ard

s~ardPu~e~ T~D0 Direct~e.rs - Single/Sole Source

•

•

•

Refer to the DoA for the hierarchy and authority levels.


o

C)

Purchase Requisition Procedure.


Requesting Department (RD) shall carry out the following:

• Check directly with relevant department for inventory availability

• Issue material requisition and send to General Services (Store)

• Receive material and receipt sign off

• Fill out purchase requisition form

• Seek budget approval as per DOA in coordination with Finance Department in case of no budget available

Contracts & Procurement Department (C&P) shall car~0ut the following:

• Double check purchase order details and any m~sihg ~r~atio/,:\ • Consolidate requests when appropriate and~date p~rNChaSeJ~eqUisition • Prepare and send the RFQ and PO. "" ~ "\ /

• Manage the vendor list. ~ ~. ~ • Coordinate with the RD and PCD for\~~roposals"aluation and price

comparison. ~ V~' • Amend/Cancel the PO'if necessary

Storekeeper shall cafry oC th~o.wing: R · t ~I ",,-. ':'t·-·;=·)

• ecelve ma ena 'ZeqUisl 10~ /

• Block ~te)i~n st0\k \.~. • Prepare and file~, note reep the f~s uPdated)'/regUlar basis .

• "" c;;o~inate wiih--the.owner of the inventory (IT, GS, Marketing, .... ) to issue V 'took ~oh'" tho m," ,took .,oired 1m '"Y 'om.


(J

TENDERING PROCEbURE

CHAPTili \>

o

Rev Date Reason





, "-' .J Tenderjng :rrQ~edure


1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

4.1 Initiation

0 4.2 Scope of Work (SOW) I Scope of Services (SOS)

4.3 Consolidated Tenders

4.4 Fo~ of C<mlmct "d P"'"I,, 000,"'0\ 4.5 Tender I Contract Numbers \> 4.6 T,"'" PI,o S,lim'"',, I T'~ Slrnl;C:r"""od T "d,.

4.7 Preparation of Tender Docfme~ 4.8

4.9

4.10

Electronic Te~D~~nts Adv7rt~ing I TentJ~r DOGU~ent

::) 4.11 Te~\~~~/ 4.12 Collection of Tende Documents

4.13 Cost Esti~es"/ 4.14 Communication with Tenderers (Mid-Tender Meetings I Tender Bulletins)

4.15 Direct Order



5.2 Contracts and Procurement Department (C&P)



~ 5.5 Legal Department


TeI1(iering}>roce().ure .

ATTACHMENTS

Attachment A - Sample of Non-Competitive Bid Justification Form

Attachment B - Recommended Commercial Terms - Consultants

Attachment C - Recommended Commercial Terms - Contractors

Attachment 0 - Example of Tender Plan Submission Memorandum

o Attachment E - Example of Tender Plan Submission

- Example of Tender Advertisement Facsi ~essage Attachment F

Attachment Fa - Example of Advertisement Format

Attachment G - Example of Cost Estimate \ ~ Attachment H Example of Listing of Tend,rs/ Bidders

Attachment I - Recommended Fola'~rocure~nt look-Ahead Programme

Attachment J Tendering ~oG-'Ch~~ j V A",hmeotK A Te~)~,"i\ori"g T'~,'

'\ ~/


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o

I 1.0 OBJECTIVE

The procedure details the method to be followed in the preparation and issuance of Tender Documentation.

2.0 SCOPE

This procedure applies to all personnel involved in the Tendering processes from the time of receipt of the Scope of Work (SOW)/Scope of Services (SOS) by C&P through the various stages prior to the receipt of Bids.

3.0 POLICY / MANAGEMENT INTENT

4.0

It should be noted that many factors concerning the Ten~efi'ng process, including preparation of Cost Estimates, are sensitive by nature and are striCtI\ confid~tial.

PROCESS V A flowchart of the procedure is displayed as AttaCh~ ~.

4.1 Initiation. . ~ ~ \:> .. ~ a) RD shall provide on a bl-monthly baSIS a TH~ee \ro9-thsJ3rocurement Look-Ahead

Programme for its expected/full:Jre~[Qcure~ent~eqUirements in a simple Bar-Chart format given in Attachfne~t-I~ "\ V

b) RD shall provide aOs~~JfSO~ C&P for review from contractual and commercial a.(:ects. ~ ~ C/

c) Subsequently Re ~II forward ~e complete SOW/SOS and the necessary inputs to Tender'S AppeQ.dices-lvSpecifications, Drawings, Schedule of Prices or BOO, Proje~Execution "Program . ./ etc. to C&P and with a copy to PCD. RD in corisultatib.Q with of "S&P-.snall also determine the procurement strategy to be adople~ whe\he/.0~~ Tender or Classified Tender or Direct Order and Contract type, wni~h can be in the form of Lump Sum with Employer Design, Design and Build, Mea~ure ~rtci Pay, Consultancy Services, Reimbursable, Minor Works Contracts, C0~t-Plus ... etc.

d) The SOW / SOS shall describe the work or services to be carried out in sufficient detail to enable C&P to review and compile the Tender Documents. Where the SOW / SOS is considered not clearly defined, it shall be returned to RD with comments for revision.

e) Where a single source, sole source, or Direct Order is identified, details of the recommendations shall be forwarded by RD along with the Non-Competitive Bid Justification Form (Refer to Attachment A). Approval shall be obtained in advance where possible and applicable.

4.2 Scope of Work (SOW) / Scope of Services (50S)

On receipt of the SOW / SOS, inputs to Appendices, and the requirements under 4.1 above, C&P shall review all of these documents for contractual and commercial aspects, and to ensure mitigation of any potentially adverse commercial and


C) '-

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o

•

~ I ~~ Te.ndt)dIlgPrQcedpre . . . I L-L.J~~IL-

contractual impact. In parallel PCD shall review the SOW/SOS, Schedule of Prices/BOQ, Execution Programme and the other documents from time and cost point of view. Once the SOW / SOS is reviewed and finalized on the aspects mentioned above, C&P shall commence the preparation of the Tender Document.

4.3 Consolidated Tenders

Where different RDs raise requirements for the same type of services or works, the services or works shall be consolidated into a single Tender Document to obtain the best possible value for LREDC through benefit of economy of scale. C&P shall identify possible consolidation of requirements and decide whether there is enough commercial justification to include these requirements in a consolidated Tender Document. (.\

When the requirement for a consolidated Tender is identified\ C&P"shall identify the Major RD and notify him accordingly. This decision shafbe balted 0Q.. the/voll')me of work as per the individual SOW requirements. o.nce the M'ajor ~ is,\ide,ied and notified, he shall act as RD for the tender process. ~"': V The RD and C&P shall prepare a consolidaAe~-J?oc. me';;t~incorporating the requirements of the individual RDs. The instru~tion-&-to Tendere·s sllall clearly indicate that LREDC reserves the right to awardjhe total rei~rement'to. ¥ single Bidder, or to split the award in a manner desc9lJedin the Te~der DociJrn.ent. The Bidders shall be instructed to submit alternative /Bids~baS'ed_on this r(quirement, and the Notes on Pricing and Schedule of Prices s~(beiJrepan;ala~dingIY.

4.4 Form of Contract a~r:ticul~itions Standard or Particulat~r spe~a~o'iti:s~all be developed by C&P and where necessary and a~~cable to do sO'lin consultation with RD and Legal Department. C&P shall be the cust0~ia~f all1the)atest versions of Standard Conditions of Contract in soft ancltlard copies fbrmat No-alternation or amendrnent whatsoever to any of the

above t6'-b\m~de /l:I~EqJrr;;r approval of C&P Department.

4.5 Tender I~~r/umbers Tender Number aod Contract Number/ Purchase Order number will be automatically generated through the ERP.

4.6 Tender Plan Submission I Tender Plan Strategy and Classified Tenders

a) Where RD recornrnends a deviation from normal practice of Open Tender with 2-stage evaluation process, RD, with inputs frorn C&P shall prepare a Tender Plan Submission containing, as a minimum, the details shown in attachment E hereto including the Tender Plan Strategy, which shall include full justification for such deviation.

b) Where RD recommends a list of Tenderers and where the potential and suitable Contractors are known to the Company, RD shall forward the Contractors list which shall contain of a minimum Three (3) Contractor names to C&P. C&P shall prepare the letter of Expression of interest (EOI) with inputs from RD and issue the


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TenderingProc~du.I'~··· . -',,, - ',. -: ..

same with the RD Director's signature to the Contractors under RD Contractors' list.

c) The Contractors under the EOI will be requested to submit their EOI along with any required detailed information about the Contractors to RD Director on the stipulated submission date.

d) Where RD recommends selecting a Contractor for new work, from the list of existing Contractors and awarding such works through a Variation Order to the existing Contract, Technical and Commercial proposals can be requested from minimum three (3) existing Contractors, subject to GTC approval. RD, with inputs from C&P shall prepare a Tender Plan Submission including Tender Plan Strategy and full justification for such deviation. ( ~

e) If the SOW I SOS to be tendered is of a specializ~a~e, or should~ere be other constraints, a pre-qualification exercise ih",ac::Ord;;hce ¥th tlie' Prequalification Procedure may be conducted after obtaining tile a)proval--6f GTC or the CEO in accordance with the Delegati0rl' of klthority ~atrix> V

f) The signatory of the Tender Plan SUbmis~n ~b~~ctor. 4.7 Preparation of Tender DocQ \ ~ ( C~,\ \

a) After receipt of th~ S9~ I ~OS as ~ Septl~A.2 above and approval of the Tender Plan Submls~lon a~ applicable, ~he Tenaer Documents shall be prepared and developed by C&R" base~ on thEf-SOW I SOS and inputs from RD and PCD and utilizing (.t8'rt~rd m~del cl~6u~e0-s/0herever possible and in line with the gUideline provided as per AttacHrent K.

b) Attachments B~d ~erJo describe the minimum recommended Commercial / .~ \. /

TerQls for", Consultancy ~Construction Contracts respectively that should be USed\WheneVsSiblein the Company contracts.

c) The T~~r Docum~t shall be comprised of two parts as follows, subject to actual requiremen(s:

V Part 1

• Instructions to Tenderers • Attachments

i. Copy of Letter of Invitation to Tender. ii. Copy of Confidentiality Undertaking. iii. Letter of Acknowledgement iv. Form of Tender Bond v. Statement of Compliance vi. Form of Tender.

Part 2

CHAPTER 5

• Form of Agreement. • General Conditions of Contract (GCOC) and Appendices as follows:

- Appendix A SOW I SOS, and Technical Information

Page 5 of27

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I - Appendix B Schedule of Prices/BOQ and Rates - Appendix C Insurance - Appendix D Contractor Technical Proposal - Appendix E Contract Execution Plan - Appendix F Administrative Procedures, Form of Performance Bond

& Form of Advance Payment Bond Note: (Typical Recommended Commercial Terms pertaining to Consultancy and Construction Contracts are given in Attachments Band C respectively, of which a further elaboration is given below for several terms and in case of a conflict between these two requirements least cost risk approach to the Company to be implemented)

a) Unutilized Appendices: If any Appendix is not utilized, this shall be stated as 'Not Applicable' within the Tender Document at the r~eV'aSlocation where its reference is mentioned. , ~

b) Schedule of Rates: The use of such a sChedule~e the--rric s/~ from this schedule do not form part of the 'Contract Price') i~enerally restricted to major / large valued lump sum and other";;pe~alize2t\,Contradsl ana agreed in advance between RD, PCD and C&P. "there utili~, the ite'[n,s ril'ust be clearly linked to the Contract work scope, drawing"~d teB~\a,yspecifications. The preambles to the Schedule o,!--Rates m~t .I'l{j-ve a clear.ly defined method of measurement i.e. Qatar S~~dard ~ethod of Meastfrem(nt, POMI or, SMM7 or CESMM3. The Schedule or Rate-s-will-be in61udedin the Commercial Evaluation by assigning the estimateti qJariflties a9a~n\t f!;~ individual items, with a clear statement that ther'S'sign'ed quantities are \to be used for Commercial Bid evaluation purpose .0~' im~d1h~alJJ..e)Of tliis schedule shall not form part of t.he Contract price~ ~ "'---~

c) Tax Reten~hm: T~ Qatari income tax law requires govemment owned institutions and'govemroorlt departments to retain the final payment from taxable fOzei(i~,~ontracto'rs~ntil they/provide a tax clearance certificate. As a matter of practice, i.(1come JaX"Qepartment requires that the retention should be at least 5% 'of the"totaVCdntract Price. The purpose of this law is to enforce tax complJaQ.,ce and t~insure that foreign Contractors do complete their tax filing requireme~s. lhls requirement is applicable to taxable foreign Contractors performing G9ntractual works or services in the State of Qatar. Normally, only Contractors with non- GCC shareholding would fall in this category. Accordingly, details of the Qatari Income Tax Law retention requirement for Qatar based projects must be clearly specified.

d) Guarantee Period: In engineering consultancy services, the Guarantee Period must be of sufficient duration to cover for the construction Contract and it's Defects Liability Period. This requirement is necessary to cater for construction Contracts where the Contractor does not have a design liability. This could be several years as required by the law governing the particular Contract or as otherwise so stated under the Particular Conditions of Contract and/ or under the GCOC.

e) Delay Damages or Liguidated Damages for Delay: Generally the provision for Liquidated Damages shall be included in the Tender, and the rates and limits for this shall be determined by RD in consultation with C&P and PCD in accordance with the guidelines set forth in the 'Delay Damages' or 'Liquidated Damages For


()

Tell(leripgPrQ~edllr~' .

Delays' Procedure. For works or services of a special nature, RD in consultation with C&P, may determine that Delay Damages or Liquidated Damages provision is not applicable, in which case suitable standard wording must be drafted by C&P in the Tender Document and in line with the Delay Damages' or 'Liquidated Damages for Delays' Procedure.

f) Advance Payment and Advance Payment Guarantee: The Advance Payment shall be set as a lump sum amount equal to a percentage (%) of the awarded Contract Price as per the following:

• Maximum of 5% when the Contract Price is above QR 10,000,000. However the advance payment shall not exceed QR. 50,000,000.00 in all cases. ~

• The above limits can be amended on RD JeBuest, sub{ect to/G&P and PCD review and subsequent approval frO~G. ~ V/-')

• Contractor shall submit an Advance~ayme~t ~ant~e fJo~a Bank operating in the State of Qata~qual'to the"~mou~ of/the Advance Payment and it shall be valid till\the ,~;:;nt,of th~ Adyance Payment is fully recovered. \ \.> ~ V

Note: The Advance Paymeny'f~ineering consultancy services contract and supply of goo~s and sef"icrs~e~eby ~o p(ocurement or mobiliz~tion of resources are envisaged at thebeglnmn9'~f th~Contract shall be decided by

=~si~ full consultati~~?h)1 be assessed on a case-by-case

RD in consultat~ith PCEl shall ensurdat no Advance Payment is paid to the Contractor unless~he 'l:\dvan'te Pa,¥ment Guarantee, performance bond, evidences of insur5l:~ces and su~mi~siQD)of t?'e baseline programme document is submitted by the Contractor and aPRroved ~Ane Finance Department or concerned department or oth'e~tity'Zutside t~-company.

4.8 RevieW'and Fin;;;;:ation of Tender Documents

a) C&P shalG,r~par0inalize and issue Tender Documents to the parties stated in Section 4.7b b~ow within the standard monitoring targets (i.e. Key Performance indicators 'KPI') established within C&P.

b) On completion of the Tender Documents, C&P will circulate Tender Documents for Internal Review to RD, PCD, Finance and Legal Departments bye-mail. RD, PCD, Finance and Legal Departments shall respond bye-mail after their review, copies of which will be maintained in soft and hard format for records and audit purposes.

c) Comments / amendments received from RD, PCD, Legal and Finance Departments shall be incorporated by C&P into the Tender Documents where relevant and applicable. C&P shall maintain in its files, notes and reasons whenever any of the foregoing comments are not incorporated. C&P shall also inform the originator in the event that any major or significant comment is not to be incorporated, including the reasons for such exclusions. In the event where no response is received from any of the above-mentioned reviewing departments


()

o

Tendering l~rocedure

within ten (10) working days of issuance of the Tender Document, C&P will consider the Tender Documents as endorsed by that relevant department.

d) C&P shall forward copies of the issued Tender Documents to RD and PCD Department to keep and retain.

4.9 Electronic Tender Documents

a) Subsequent to Section 4.7c above, C&P shall finalize the Tender documents in hard copy version. All sections, other than those provided by RD and PCD, shall then be converted by C&P into electronic format, i.e. pdf (Adobe Acrobat) for transferring to compact disk. RD shall convert all sections provided by them, i.e. SOW I SOS, specifications, drawings, codes and standar~etc. to pdf format, and forward them to C&P for Tender preparation within fiv~5) working days after completion of the review carried out in Section 4.7above.",-.~

b) The Compact Disk cover shall contain the fOIiOWing~~~tion: • Tender Reference Number and Title ~ .. ~ ~ • A printed note concerning the data on the Q{s,k ana'i~ thereof as follows:

'LREDC has issued the Tencre;:a-ocume~$ in ~?cty"iC form:rviZ Compact Disc 'CD').

Such electronic Tend{,. 9ocu~ts sha\ be an exa;( copy of the Original Tender Documents retained~Y LREDC as a ~\"OPy.)REDC makes no representations as to

the data quali(Y-'of the~d-Tenderer/\Bldders shall use it at his / her own risk. Unless instr~Gted b'0LREDC, Tenderdr/ B;/Ider shall use the disk on an 'as is'

bas~hout~kin~ ~terat~or amendments whatsoever. In the event of any'aiscrep'rmcies b)tweer the disk and the Original Tender Documents with LREDC,

A the Odgi'Zal tend;;' DJcuments shall be regarded as the final and governing

~documents 'i~ning the correct content of the Tender Documents. The Original

Tender Docu'Z!ents hard copy shall made available for the Tenderers/ Bidders perusal at'the/ ) Department, (state address), Qatar during LREDC normal working

~rs.'/ 4.10 Advertising rt:nder Document

a) Where the Tender is subject to Open Tendering, C&P shall prepare an Advertisement Request Form including a brief narrative of the SOW I SOS, which should separately identify the tentative Contract Effective Date and Scheduled Completion Date (refer to Attachment F). This form shall be forwarded to the Lusail Administration Department for advertising.

b) The completed Advertisement Request Form shall be consolidated and forwarded by C&P to the Lusail Administration Department (refer to Attachment F). A copy of the advertisement Request Form shall be sent simultaneously to the Secretary of the GTC. A format of the tender advertisement format is attached in Attachment Fa.


C)

·-.;,>fo(.-"'-

TeJlderiJlg~r~¢ed,.Jlre~ • "-,.'c _ --~"_ .. ,' -;---, ,,"-:'-"::', ~,<'":,, -,~, _'",>;'-"''' .

,;",-:,;,::~>,: .. _~;.,-"~,<-,, __ ,_;r .> ,~'~~

" '; : ' :': ~ - '_.', .

. "--, -,'" ~ ~ - ,

4.11 Tender Bond

RD in consultation with C&P shall determine the Tender Bond value taking into consideration the criticality of the Contract and the consequences to the Company if the successful Tenderer does not honor its tender commitment. The value of the Tender Bond shall be set as a lump sum amount in accordance with Attachments B and C hereto.

4.12 Collection of Tender Documents

a) Tenderers shall collect the Tender Documents as specified in the advertisement from Document Control Office on evidence that the TendefPee has been paid by the Tenderer. The value of the Tender Fee shall be set ~s a I~ sum ~unt in accordance with Attachment Band C hereto. G~ V /

b) Tender Fee is required for Open Tender. However n0"Tentl~ Fee is ;equired for Classified or Limited Tenders, Sole Source(slrrgle Soume or ~ire'(;1vOrder.

c) A record shall be maintained by C&P Of\1 ~~c~e,!J~issued and each Tenderer'sl Bidder's c~ntact d~tails~ cop~ of\Jhe final)Elnderers'l Bidders' list (as per sample format In Att'7ehm~n~H) shall be s§ln(by c&P to the Secretary of the GTC and to RD on or ope (1l-9;aY-before\the ifender Closing Date. However, in case of Direct Orde.!) or Tender below Q~ One>(1) Million that was processed via the CEO in accor~~~tb.J!!§..aut2Ilority 'un'der the Delegation of Authority, no

copy shall be sent. ~~ '" ~ d) C&P shall fO~O~uPd'ated-IiS of Tenderers if and when requested.

4.13 Cos~stimat~ )

The de~d ~t EstW~1I Tenders shall be prepared by PCD and forwarded to the respe2t~e R6 Di~ettor for his review. Considering the confidential nature of the document, the p{(~01rector shall submit the Cost Estimate to GTC before the Tender Closing Date, as per the format shown in Attachment G. The Secretary of the GTC shall release a copy of the Cost Estimate to C&P upon release of the Commercial Bids during the Tender Evaluation. However, in case of Direct Order, or Tender below QR One (1) Million that was processed via the CEO in accordance with his authority under the Delegation of Authority, the Cost Estimate shall be submitted by PCD to the C&P Director before the Tender Closing Date. C&P Director shall release a copy of the Cost Estimate to C&P team member upon the opening of the Commercial Bids by C&P during the Tender Evaluation.

4.14 Communication with Tenderers (Mid-Tender MeetingslTender Bulletins)

CHAPTER 5

All communication with Tenderers shall be recorded in writing. No Tenderer shall be given any information that may favour or adversely affect him in relation to the other Tenderers. RD shall maintain a log of all communication with the Tenderers, including Bulletins, Minutes of Meetings etc.

Page 9 of 27

C)

I All Tender Bulletins shall be numbered sequentially, issued to all Tenderers/ Bidders, and shall be acknowledged by the Tenderer/ Bidder in the Form or Tender. Communications shall be carried out as indicated in the instructions to Tenderers (ITT). RD shall conduct Mid-Tender Meetings and attend to all Tenderers' 'queries and process the required action via Tender Bulletin. Those Tender Bulletins issued as responses to Tenderers' queries shall generally be in the form of questions and answers as far as possible.

RD shall restrict attendance at the Mid-Tender Meetings to those Tenderers who have purchased or collected the Tender Documents. RD representative shall call upon participation by other department representatives as deemed appropriate and applicable.

Prior to issuance, the draft Tender Bulletin shall be fo~a1d'ed by RD to C&P for review from contractual and commercial aspects J,\d to en"Sure mini~m risk exposure on behalf of the Company or mitigation of any potentially a~verse commercial impact. PCD shall review the draft Teri'ct~r BUll(tfh~n c~se of any time or cost impact that might result on impacting~e Ten(j~r onginal'S:0S~~imate or on impacting the original execution prog[amme~der~ulI~t~s shall be signed by RD and subsequently issued to the Te\er~ ~ V Extension of Tender Closing Date-(if~ny) shJ:be notifieSiAb all Tenderers by RD

in consultation with C&P via/a'Tender Bulletin. Suchilblletin shall also be copied to RD, PCD and the Secretary of1il6-6T~ \ S In case the Company decidbs t5elther com'ple(~y cancel the Tender or to cancel and re-tender duringCthe bidding_UrAheeFalu'ation stage, a prior approval from the GTC or from the CEQ, in 'accordar1'ce~with/the Delegation of Authority, shall be sought. \ ~

4.15 Direct Order: . )

a) !he~0fDirect .Ord~sh~t1e limited to specific situatio~s/ types of requirement, In exceptional clrctJ)stances, and shall be subject to stnngent controls.

b) Direct~e~ be used for requirements that are:

I. Obta~bl~m a Government Agency or from an affiliate of or a jOint venture of the Company or of its parent company,

II. Intended for trial or experimental purposes, III. Proven to be available only from a single source because of technology or

other factors, IV. Needed on an emergency basis or where proven urgency does not allow for

following a competitive tendering process, V. To be obtained confidentially,

VI. Proprietary by nature including subscription to and procurement of magazines, books and references.

VII. Instructed by the CEO.

c) A formal memorandum in the form of a Tender Plan Submission giving full details and justifications for the use of a Direct Order should be prepared by RD, for approval to initiate a Direct Order in accordance with the Delegation of Authority.


() I . Tell(lerillg PrQ~~d,lJ.r:e. . '. c'-'.

I

d) A Direct Order will normally be awarded after negotiations. In order not to compromise Company's negotiating position, the other party must never be given the impression that it had a "done deal" or that its Technical and Commercial Proposals would be accepted at any cost. C&P and RD should always have a fall back strategy to follow in the event negotiations to award a Direct Order were unsuccessful.

e) To ensure coordination and uniformity of position among the Company departments before and during negotiations, a focal point for the Direct Order shall be appointed by the CEO as soon as a requirement for a Direct Order has been identified, and all departments as well as the other relevant party shall be advised to channel all communication in respect of the Direct Order through the appointed focal point, copying all the correspondences to C&P.

f) To prepare for the negotiations, except where an e<merg0'\~reSSi';jl~gency as approved by the CEO: ~ ~ V /

I. PCD shall prepare a detailed cost ep'!imate foI. th~SO'4' or/80S to be awarded, which shall be deposited/witlT--the CEO before'tbe other party submits its Proposal. \ ~ ~V

II. RD shall prepare a set of technical and cdm'fi,erci~aluation criteria listing the parameters for accePtancel'rejectlon of)h~Pt'oposal, which shall be submitted before the T~ch~(ana-c\r\mer<$ial Proposals are submitted for the CEO approval~ ~ ) V

III. C&P shall pr're a drafVGentraet document, comprising part 2(as . "," '/ /. applicable) o{the Tender\D0~ts, which shall be sent to the other party to sUbm{~ Te~ia.) and)COmmercial Proposals against.

g) The Technical ano"Commercia,lproposals shall be opened by C&P, RD and PCD and{egistered in the,same yanner as with competitive bids and forwarded to the Evah:Jation\Vonsisting of members from RD, PCD and C&P.

h) A neg~tion team/.s~1I be appointed by RD Director to complete the evaluation and condu6t,negetiations on the Proposal with the other party. Negotiation teams shall comprise/representatives from RD, C&P, PCDand Finance Department (if so required). Negotiation teams shall always be guided by the approved evaluation criteria, the Cost Estimate, as well as the agreed strategies and plans. Negotiation teams shall adequately document the negotiations process and shall ensure that no commitment whether explicit or implicit is made to the other party until a Letter of Acceptance or a Contract Document is issued.

i) When the Contract Price exceeds Ten (QR. 10) Million, prior to issuance of LOA, RD in consultation with C&P shall prepare a detailed submission- attaching all relevant documents including justification and the LOA, and submit the same under the respective RD Director signature to the relevant GTC for endorsement and ratification.

j) All Variation Orders under the Direct order shall be proceed in accordance with Variation to Contract Procedure (Chapter 8) and in accordance with Delegation of Authority matrix in Chapter 1.


()

8

.. TenderingPrQc~dure



Shall carry out the following: • Develop and finalize detailed SOW/SOS, drawings, and all other necessary

technical details. • Raise Purchase Requisition (in ERP). • Prepare, sign and forward the Tender Plan Submission to GTC orto the CEO. • Prepare and forward list of Pre-selected Contractors in case of Classified

Tender. • Review Tender Document and endorse all technical sections. • Prepare, sign and issue Tender Bulletins. • Verify budget availability with PCD. • Select the contracting strategy.

5.2 Contracts and Procurement Department (C&P)""

Shall carry out the following: ~ ,"""

5.3

• Reviews of the SOyv/SOS from contr~~tua:I\~ 6cm,t:Q~rc~~aspects. • Provide Inputs, review and endorse Tender ~I'l submission, • Advise the contracting meth~9>sele(\ type of plric.[I:Jgrequired. • Prepare Instruction to Teh"derer~Ge~ral\ Co~ditions of Contract, Appendix B

(with input from RD an~ peO) and AppE(ndtx C of Tender Document and compile the WholrT~er~en~.,") V

• Prepare Advertise~ent f~. /,'"---/ • Issue TenderDocument to:-:Ze~rers. • Review T~de?s~ull;rti~s fro\m contractual and commercial aspects, to ensure

mitigation of, any\.potential adverse commercial impact, and subsequently en~rse the Te~der'Bull~tin91

• ~aintain a list of'all Tender'Documents issued and Tenderer contact details. • l'V1aint~i~ reco~ds'of-all~orrespondences with Tenderers and GTC, including

di~r-\,oqj.o,the ~Ievant Departments as applicable.

Project contr~epartment (PCD) V

Shall carry out the following: • Review of SOW/SOS, prepare Schedule of Prices/BOQ, and the requirements

for Contract Execution Plan and Contract Administrative section of Tender Document

• Prepare and submit Cost Estimate in accordance with Clause 4.13 of the Tendering Procedures.

• Request and verify budget availability and obtain budget approval. • Review Tenders' Bulletin from cost and time aspects.



CHAPTER 5

• Review and endorse Tender Documents especially tax retention requirements, Appendix C (insurances) and Appendix D (Contractor Technical Proposal) and any other Appendices as applicable.

Page 12 of 27

o

I T~uderhigProcedllre .

5.5 Legal Department

Shall carry out the following: • Review and endorse Tender Documents especially the General Conditions of

Contract (GCOC) and any other Appendices as applicable.


Tendering Procedure

Attachment A - Sample of Non-Competitive Bid Justification Form

Projed I Sub Project THle:

Descrlplon of ProJed/Job:

location:

Contrad Code:

Job 10:

r:: Single Source

Details of Requested Vendor:

NCl'Tle of Vendor:

Address :

Company Phone:

Contlle! Name:

NON· COMPETITIVE BID JUSTIFICATION fORM

I Requested By (Dept):

I Requested By (Oflglnalor):

I Dale Requested:

I Purchase Requisition No:

e of Procurement

C Sale Soorce C Fast Track Pr~e<:t

Company Fax :

Contad Phone:

Single Source I Sole Source Non-Competilive Bid Justification: Attach ALL backup d.-a as required

Position Name SlgnabJre Date

Ortglnator RD

Prepared by Controls Department

Conlrols Department PCO Dlreclor

Requesting DepCl1ment RD Director

Chief Execulive Officer CEO

Non - Competitive Eid ..AlsMketJon - Form P 2 2 05 Re'l 3, 119107


Tendering Procedure

Commercial Terms

The following Figure 3 describes the Approved Recommended Minimum Commercial Terms that should be used wherever possible in LREDC contracts. In case of any deviations to these recommended commercial terms, specific approval must be sought from C&P or Financial Department and the CEO.

Attachment B· Recommended Commercial Terms· Consultants

Commercial 1 Contractual Term Value of Contract

Consultants Less than QR 1 M Between QR 1 M Greater than QR 50 M and QR 50 M

Prequalification Documents Fee n/a n/<)/" n/a

Tender Bond (if by Tender) '\.. '\.. • Value 1 % to 5Of.yof the estimatei4Judgef

• Valid ity Period 120 days from Tender Closing Date

Tender Fee '\.. '\.. '\.. • Open Tender min OR 250 r min O~ 500 '\.. ./ min OR 1,000

• Limited Tender n/a \ '" '-l1/a ) n/a Advance Payment n/a \ 'Shall be decided/by RD in full consultation with

\ L

\ C&P and shall be assessed on a case-by-case basis.

Time for Payment 45 days 45 days 45 days Limit of Liability QR 1 M Value of Fees 50% of Value of Fees Insurances (Minimum limits) " /' )

• Professional Indemnity I" '\..QR(1 M / QR 7.3 M (USD 2 M) QR 18.25 M (USD 5 M)

• Third Party Liability QR 1 M QR 3.65 M (USD 1 QR 3.65 M (USD 1 M) M)

• Decennial Liability Guarante'e period as required by the Law

• Decennial Liability For a period of 10 years commencing from the date of issue of the ,/

Insur~ce "- DISCHARGE CERTIFICATE

• Deductibles "- Nil Nil Nil

• Workmen's As per the labour laws of Country plus Employer's Liability with a Compensation/Empioye minimum limit of USD 1 million anyone event r's Liabilitv

• Automobilel Thi rd Party Personal Injury/Property Damage - Unlimited or as prescribed by Law Liability

• Waiver of Subrogation Under all policies to The Principal &lor Their Associates and Subsidiaries and where appropriate to the Other Consultants, Project

Managers etc Performance Bond(other than Design & Generally 5% of Accepted Contract value. This can be amended on RD Supervision Consultancy Services) request, subject to C&P and PCD review and CEO approval

Performance Bond for Design & Minimum 10% of Accepted Contract value Supervision Consultancy Services Language of Contract English Law of Contract Qatar Law

Arbi tration

• Arbitration Rules Qatar Centre for Mediation and Arbitration within the Qatar Chamber of Commerce and Industry


Tendering Procedure

• No of Arbitrators As per the contract

• Location of Arbitration Oatar Fee Retention n/a I n/a I n/a

Foreign Currency OR, USD - If local currency required or Euros by law then notified to Finance Dept

Attachment C: Recommended Commercial Tenns - Contractors

Commercial Terms

The following Figure 3 describes the Approved Recommended Minimum Commercial Terms that should be used wherever possible in LREDC contracts. In case of any deviations to these ed commercial terms, specific approval must be sought from C&P or Financial Department

•

• Workmen's Camp

I

• Waiver of Subrogation

CHAPTER 5

OR 1 M

Guarantee

OR 18.25 M

(USD 5 M)

As per the labour laws of the Country plus Employer's Liability with a minimum limit of USD 1 million anyone event

Under all policies to The Principal &/or Their Associates and Subsidiaries and where appropriate

to the I etc

Page 16 of 27

TeI,ldering Proc~,<lure I • Arbitration Rules Qatar Centre for Mediation and Arbitration within the Qatar Chamber of Commerce and Industry

• N a of Arbitrators As per the contract

• Location of Arbitration Qatar

Retention 10% of invoiced amount, limited to 10% of the current contract value

Liquidated Damages I Penalties for Delay 10% of Accepted Contract Value amortized over 10% afthe Contract Period

Guarantee Period 365 days 365 days 365 days

Increases or Decreases in Cost nla nla nla

Subsequent Legislation Base Date:::; "Tender Submission Date"

Foreign Currency QR, USD - If local currency required or Euros by law then notified to Finance Dept

o


C)

o

Tenderillgfrocedure I Attachment D - Example of Tender Plan Submission Memorandum

Ref.: Date:

Mr. _____ _

Chairman General Tenders Committee/Company CEO

Project

Tender Name

Tender No.

Subject: Approval of Tender Plan .S~sion

De" S;, <:~'" l~;J . . . With reference to the abov~ald RroJect-and further ~the mentioned subject, please find the Tender Plan Submission,for the abcive re~rr~d-.wor.ks as enclosed.

We request GTC'sl CEO~ihd~roJI of )he proposed Tender Plan Submission. /, , /

Regards, ~

(Name) RD Director

Ene!: Tender Plan Submission Cc: GTC Members( if applicable)

CHAPTERS Page 18 of 27

C)

o

o

Tene.lerin.gProcedUre , .' -

Attachment E - Example of Tender Plan Submission

TENDER PLAN SUBMISSION

TENDER NAME:

INTRODUCTION: A (Provide brief introduction stating the project major outline, baCkgrou<0~0ject, aV SCOPE OF WORK I SERVICES' ~ ~ (Provide brief description of the scope of the proposed works! services to bevted

CONTRACT TYPE, 0. \ \> d (State the proposed contract type with jUstifcati~,j.e:-Tump~, S~edule of Rates, Turnkey,

I

Reimbursable, etc.) ~ ) V

TENDER STRATEGY (State the proposed Tender/~egy wi h.Justlfication.~·Dlrect Order, Classified Tender, Open Tender and the Tender Stages descl-iption;-Selectlbn pr~cedure & criteria.)

TENDERSCHE[}ULE: ~~/) Tender Issue Date: Tender Closing Dafu\ Contract Award Date:_ '" Contract Completion Date:

ESTIMATED COSTS: (State the estimated costs)

BUDGET: Budget Cover is available under Account No. _________ _

ADVANTAGES, RISKS & JUSTIFICATION (State the Advantages of the Tender-Contract Strategy, Risks envisaged, Risks Mitigation & Justification etc. as applicable.)

RECOMMENDATION


o

o

o

,Tendering Proct;dure· I Attachment F - Example of Tender advertisement Facsimile Message

ADVERTISEMENT REQUEST FORM

To: Date:

From: Lusail Contracts & Procurement Director Ref. No: A

cc: A~ ~ A Urgent a FYI a Confident a a", '\ '\. "I' / Please process Please recycle a , ,

Tender No.

Tender Title

Subject : Tender Advertisement

Please find attached the details ~v~sem~th/su ·Ject tender.

We would appreciate 'ioar"actio,\ to arr8.Q2e ye advertising by ............... 2010 in <Newspaper Name> a. ncf'(New~aperfaJ\ e> CArabic). Please forward the advertisement to us for review before publisning. "-J

A '\ For further info mation, please c0~cintracts & Procurement Director's Office, Tel. 44977570.

Best Regards,

Abdulaziz AI Mulla

Lusail Contracts & Procurement Director

Cc: GTC Contracts & Procurement Department


o

o

o

Tendering :procedure

Attachment Fa - Example of Tender advertisement

TENDER ADVERTISEMENT

Tender No.

Tender Name .-----

Brief Description of the Works: ------

Tender Bond Value :QAR ~ ------ not later~a~oOtmurs 10$al Doha time.

Lusai~B~Site O~ices,> ~ Bid Closing Date

Tender Collection Location

Documer~trol-O,\c\ S . ___ . Tender Collection Date & Time:("XX/l/200 Between 08:00-a.m. to 03:00 p.m.

~ (sunaay~~~/, Tender Fee /"~ a NO~-~~~IJLCheqUe (cash will not be accepted)

~ "~d t~fusJiI Real Estate Development Co.

Required documents to collect the Tender/Documents are as follows:

• Copy of th~Om~1Y Incorpo~C;;;;;mercial Registration (if represented in Qatar).

• Company Auth~:zati~~ ID of the person who will collect the tender document.

• Presentation of th~ceiPt for the tender fee submitted to the Finance Department of Qatari Diar in Lusail Site office.

• Completed Confidentially Agreement which shall be collected from the above mentioned office or requested by Fax.

For further queries please communicate in writing to Fax (+974) 44974450


>,:" . I Attachment G - Example of Cost Estimate

CONFIDENTIAL

~ ; ~~

L-L...J"=='~1 L-

PROJECT CONTROLS DEPARTMENT

COST ESTIMATE

o (To be submitted in a sealed envelope)

~~ To: THE SECRETARY OF GTC or Company CEO

Ref. No. Date: ~~ "" ""V TENDER TITLE:

:;ER\\S~V TENDER CLOSING DATE: /

TYPE OF CONTRACT: D LUMP SUM ~')A\?PAY DDAYWORK

D, M~~ED ,'CE-D50ST REIMBURSABLE DOTHER

TYPE OF ESTIMATE: /" ~ \ ~ D SE~ETA!COyESTIMATE

,/\ D "'zETAI[E12..S9 TEjlMATE

\ " "'- ../

TQTAL(QR} ~ ~/\ TOTAL IN WORDS: V REMARKS:

Prepared by: Endorsed by: Print Name: Print Name:

Signature: Signature:

Approved by: Print Name:

Signature:


-!I

~ ':) \I.\l~ L-LJ~r.:::::tIL-

TENDER NO

TITLE

REQUESTING OEPT. :

1.

2.

3.

4.

5.

o

NAME OF COMPANY/BIDDER

CHAPTER 5

1< '.' . T~n~ed!lgPto,ct!dur~ • - ' " -, - ,

Contracts & Procurement Department

LISTING OF TENDERERS

\> TENDER ISSUE DATE

NAME OF AUTHORISED

REPRESENTATIVE

TENDER CLOSING DATE:

DOCS COLLECTED

BY

1

SIGNATURE & DATE

Page 23 of 27

o ,:,.

~ ~

L-LJ'=:'~IL-

Item

Item

Item

CHAPTER 5

o o ,;:W(~~~~~~,!g!'p:~~c¢~#~¢~

,"}

Attachment I _

Description

Description

Description

/' ,,--~ \"" ~/

" " / ) " / , /' " "

, ,

Three Month Procurement Look-Ahead Programme XXXXX Department

Month 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Month 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Month 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Page 1/1

Page 24 of 27

~J

Date: 51XX12009

18 19 20 21 22 23 24 25 26 27 28 29 30 31

I

I

18 19 20 21 22 23 24 25 26 27 28 29 30 31

18 19 20 21 22 23 24 25 26 27 28 29 30 31

c ," ~ ~

.---------------------------------, Tendering Procedure

L-LJ'=::'I==II L-

Attachment I(Continued ) -

Ite m Descript ion

1 Pre e ration I Issue Tender Docs · cap

2 8iddin Evaluation & A w ard - RD T echnica l E valuation FlnanCLal Evaluation

3 Contract Pre eration, Review a nd A oval Pre eration

,

CHAPTER 5

Three Month Proc urement Look-AheOJd Pro gramme XXXXX De partment

M o nth 1 Month 2 1 1 2 3 4 1 5 6 7 8 9 ! 1 0 1 2 1 3 4 5 6

I I

I I I I I I

I I I I I I I I I

I I

I

Page 1 /1

Page 25 of 27

Date: 5IXXJ2009

Month 3 7 8 1 9 10 1 2 3 4 1 5 6 7 8 9 1 Q 11

I I I I I I I I I I I I I I

I : I I I I I I I I I I

I I I I

I

Tendering Procedure

Attachment J - Tendering Flowchart

Others C&P Department Requesting Department

Received Approved Prepare 3 Month l ook Purchase Requisition

(PR) Ahead Procurement Programme

,6 ./\. 1 Prepare justification for

Direct Order, or Selective

, Tender as necessary

\~ Obtain required approval . Ve

Is it Dired Order or Selective ,,/ per Financial Authority Tender? "

Matrix

\;> > /

. I Approval I - , ~ / . L Redeved /

-V

l)J ( No

V

""- / peD prepares Schedule of Ratesl

Prepare SOW/SOS, BOQ, the requirements for

Prepare the whole Tender ,drawing and other Appendices Contract Execution

Documents specific requirements, Plan ,Contract Administrative section and reviews SOW/SOS.

etc.

/~

) Send the Tender DOOlmenls / for intemat review

~ /

V

Incorporate received comments in to Tender Documents

assign Tender/Contract Number

+ Issue for Tender I PCD pcepace, I

detailed cost estimate

N.Qte.;.ln the event of conflict between the flowchart and the text , the text shall prevail.


Tendering Procedure

Attachment K - Tenders and Contracts Standard Monitoring Targets

Tenders and Contracts Standard IYIV""VII"\:I T '" \:I"''''

FUNCTION RESPONSIBLE PARTY TARGET FUNCTION

Preparation and Finalization of (RD) AS PER ANNUAL PLAN Scope of Work

Preparation and CEO GTC Issue of Tender (C&P) Description /~~ (up to Document 10M)

Issue draft to RD "'\ '2 ~eek's 3 week~

vv"" 'v"'O from RD / PCD 1 wee, 1week

/ Finance ~ /

, "' i:~~,F te~t & "- V 1 weeks

issue for I Total \ 4 weeks 5 weeks

<~ • ,t:,,·.dk<'.\ I ·~ ''"c .. : ~".I-!'t ;~ .. '. :, ,: , .', ,. ' " ., ,!.};:,

Bidding. (RD)

~~ 'r /

Evaluation and iv. "~ l ) 4 weeks 4 weeks

Award /'\. I <: I Fv", ,,~t;,>n 6 weeks 6 weeks

x:~~~" , ~ .olvo"v" & 4 weeks 4 weeks

I/ o tal 14 14 weeks

/ weeks ~ ... 7l""Tl~-'Vl"" .... "l1I"~-~~~,,,-=- ~~T--1~'::-"':~~-;-;;j -'~ ". ~-,. ... ;..~~'" -;-_~- ~~":; !!..:....cl:.::_~_':.:.:.':-·rr-~~~-=..o.~~0!.1- ~~~IL~':'-"~.-=-:. _~ ,-'-ll....c~.J.i.~!.

Contract (t&P) / Description

Preparation, ' v ~o. o ,i v , I & Issue draft to 2 weeks 2 ' vv'~

Review and RD/PCD/ Finance /

Approval Comments from RD / PCD 1 week 1 week / Finance

."w.~v. a,v 1 week 1 week W "'" .v •• ." , i " o, i ~v contract

Issue to Contractor 1 week 1 week

Approval/Signature by 1 weeks 1 week Lusail

Total 6 weeks 6 weeks

GTe

(above

10M)

4 weeks

1 week

1 weeks

6 weeks "

5 weeks

9 weeks

6 weeks

20 weeks

'.

4 weeks

1 week

1 week

1 week

2 week

9 weeks


. ,

·%ooT~~OI_

--.... ~ ~.

~.

~.

~Bo.IpIqIO'l __ ~OI_~I 'llOt!:·sa

penn!l3W ........... wnsM.ld"~~.: {nIU·tati ~'Li enow"tll' ~... I_I ~' I~g go 15£ IW"

_~IIUII! ON "",J8jati

~ ~ ~.~

l rlh 'r............. M""~'<'l"~

~

w:-o · ...... rrt .....

t 1 \1 • •

,-

-

\1011· UOIlIrlS-Clns 1\1111 }O uonnU!»d5 DuIllIOU;l.lIJ fIORWY I -- b1tO"·~U~D<I

:v>S M tI !>OJ W~ UOfS'AJdns ~

.~~_n~OI

" \lOll '

AS I I'lIUI~l'

~tM l"'eM" t tl ON 6u14~:l1Jl~ 'i "'~M ~'IlIOd . Z U OM

- ~P«I:I~l t ICN 8'S<! uor.rS 1II.Ipu\"'.....;s~. fa ON

l~noe_"IAS"7I"'l ZION I _1108 ~SIJ'S -I I ZION -- _~"'l · LlON SI#~~l ·OION

1!Wf!s~!I'OIIJJ. - • ON f;lI.IOn~-8 OH

~' lON

~' 8ON .... M WJOtS • $ ON .IM_M- tON

I!u~&t:l"':l _"Ir", ~rJOd ' tON"" -- _tl-ZON

....... d · iON

--. ~~-...eue.oP~

"" ...... " -, ~'ll'\l3fINlI!!RS'"

r

)

4~

A

TECHNICAL / COMMER"CIAL A" " ~ BID EVALUATION P' OCEDIJKE

V

(J

Rev Date Reason





o

o

Technical/Commercial Bid Evaluation Procedure

LU'=:'r::::IIL


1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

5.0

4.1 General

4.2 Formation of the Technical and Commercial Evaluation Team

4.3 Collection and Distribution of Technical Bids

4.4 Technical Evaluation, Clarification and Evaluation'Report

4.5 Evaluation Report \ ~ ~ 4.6 Collection and Distribution of comme~8ost'E'Sti~'e 4.7 Commercial Evaluation and Report \> ~ V 4.8 Commerciall contractua{e~\ /'

4.9 Award Approval ~~) 4.10 confidentia~~. (J RESPONSIBILlT~ ~

5.1 Re'e~g Dep~ent-(RD 5.2 cont~~ a)dJ)ro~ments Department(C&P)

5.3 Project CO~OIS Department (PCD)

5.4 Evaluation Tea;;;


ATTACHMENTS

Attachment A -

Attachment B -

CHAPTER 6

Flowchart for Technical/Commercial Bid Evaluation

Example of Memo for Distributing Bids for Evaluation

Page 1 of 23

o

o

o

o

Technical! CommercjallUd Eval11.ationProcedure

Attachment C -

Attachment Ca -

Attachment Cb -

Attachment D -

Attachment Da -

CHAPTER 6

Example of Technical Evaluation Report Summary Memo

Example of Technical Evaluation Report

Example of Risk Assessment Report

Example of Commercial Evaluation Report and Award Plan Submission Memo

Example of Commercial Evaluation Report and Award Plan

/

..

Page 2 of 23

o

o

o

TechIlical/ Commercia.l Bid EVa.luation Procedure

1.0 OBEJECTIVE

This procedure details the method to be followed to ensure that the evaluation of Technical and Commercial Bids is carried out in a consistent, complete and fair manner in order to ensure the best value for the Company.

2.0 SCOPE

3.0

4.0

This procedure applies to all personnel involved in the evaluation of Technical and Commercial Bids process.

POLICY / MANAGEMENT INTENT

It is the policy of the Company to award Tenders to the technically lowest price acceptable Tenderer/Bidder who meets all the Tender requirements and its terms and conditions.

PROCESS

The procedure is flowcharted in Attachment A 7to

4.1 General \ ~ a) The procedure is applicable to alLBids requir~to be processed via the GTC.

Also, it is applicable to Bid~t5eIOW)Jne (1) milli~~WJ;iich are required to be processed via the CEO. The TE}ehnical-aQd 6:ommercial Evaluation of Bids shall normally be completed and lhe Award Plail'-S~bmi~sion forwarded to the GTC or the CEO in accordance"W~h\tJ:le Delegation bf~uthority within the Standard Key Monitoring targets (fe. Key Peifm-m-EPte Ihdicators 'kPls') established within

C&P. A ~ \C/ b) When any evalu,ation,phase

l is delayed by more than one (1) month beyond the

kPls, "or when the E'\taJy,ation)Team antiCipates that the award cannot be coreple'te~ within tHe tender ~alidity period, the Evaluation Team Chairman shall forward a p(oposal fof-Bid-validity extension to C&P. C&P shall review any impact of su'c~ extensi~a'nd proposes its recommendation to the Evaluation Team Chairma,\ Upbn receipt of the approval for Bid validity extension, the Evaluation Team Chair;Rlan ynBer RD Director signature shall obtain from all the Bidders an extension of v~lidity of Bids and Tender Bonds.

c) In case there were specific Technical Evaluation Criteria and/or Commercial Evaluation Criteria required by RD for the purpose of assessing the Technical and Commercial capabilities of Tenderers, then it shall be approved by the RD Director and/or C&P Director respectively prior to the receipt of the Bids. The attached standard evaluation Technical/ Commercial Evaluation Report formats shall be utilized as appropriate during evaluation (refer to Attachments Ca and Da hereto).

d) Where there are more than ten (10) Bids or when the number of Bids are large, to the extent that complete evaluation of all Bids may not be possible within a period commensurate with the validity of the Tender, then the evaluation may be restricted to the Ten (10) lowest Bids, unless otherwise advised by the GTC or by


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LLJ'='~IL

Technical ICoIDlllercial Bid Evaluation Proc,edure

the CEO, in accordance with the Delegation of Authority, in writing. In such circumstances and at the request by CEO or his designated deputy , the Secretary of the GTC or the C&P Director ,in case Tender was processed via the CEO, shall release the names of the lowest ten (10) Tenderers without ranking thereof. Further Bid will only be evaluated if minimum two (2) technically acceptable Bids are not found among the lowest Ten (10) Tenderers' Technical Bids. In such cases, GTC shall be requested to release next five (5) lowest Bids for evaluation.

e) Where any particular Bid is substantially incomplete, the Team may recommend to the GTC or to the CEO, in accordance with the Delegation of Authority, that such Bid be rejected as 'technically incomplete' in the Technical Evaluation Report. The reason for such rejection shall be clearly detailed in the report. Such an option may generally be used when:

(i) The Bidder has left the majority of the Annexures or Schedules in Appendix D (Contractor Technical Proposal) i06orrlplete, in particular those Annexures or Schedules deemed critical,\'\l!(e Te~m fos;echnical

evaluation purposes. ~., __ ~~ V) (i1) There exists a minimum or three (I'0t~hn~y a~~e'Bids.

Note: Submission to the GTC or to the CEGX in~ccoraance "X!t~the Delegation of

Authority, shall be placed in sealed envelopes dearl~arkedas follows:

• Secretary of the GTC! C&~~ • Tender Reference No. ~ • Title of Tender. (" "" • Nature of subject f0r revi'ew, e.g(Tec nical Evaluation Report or Commercial

Evaluatio\ep~ ~ \ ~ 4.2 Formation Of~ 'F~9!cal and Commercial Evaluation Team

On or ~the Tender'CIOSing~te, RD Director shall nominate a representative to the T'echni6a\ Evalililtio-;;-Team as its Chairman while the C&P Director shall nominate a'\represeh'tativ; for the Commercial Evaluation Teams. The Chairman of the Technica~Ezaluati6n Team will then call for the nominations from C&P, PCD and Finance Departmefll as applicable. Furthermore, C&P nominated Member for the Technical Evaluation would be the Chairman of the Commercial Evaluation Team once the Commercial Evaluation started unless otherwise another nomination is advised by the C&P Director.

i. Technical Evaluation Team

The Technical Evaluation Team shall consist of Chairman, nominated by RD Director, and a nominated representative from C&P, PCD, and Finance Department.

This Team shall conduct the Technical Evaluation. The Team Chairman shall invite representation from other departments or from any external consultant


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working for the Company as required, for participation in selected matters only.

The technical content of the Bids under review shall be checked thoroughly by the Team. Discipline Engineers, if invited, shall assist in the Technical Evaluation process at the discretion of the Chairman.

ii. Commercial Evaluation Team

The Commercial Evaluation Team shall consist of the Chairman from C&P, nominated by C&P Director, and a nominated representative from RD and from PCD. This Team shall conduct the Commercial Evaluation. The Team Chairman may invite representation from other departments as required.

No external party or Consultant shall be particiPati;vin the Commercial

Evaluation whatsoever. \. ~ However, when it is desired by PCD Director to inv~a Cost Consult~'for a justifiable reason, PCD Director can involve a coit~orisultant t~ssis( PCD team member for the rates and price ,naly~s and e~I~~i~n)/(he Cost

~:::~.'"' ..... h,II .;," , CO""::;'\ \;?~EDC ,pp,~d All team members and invitee{~e Evaluation Reports. Exceptions or reservations, if any, of Evaluatl'on Team-memBe(s/or invitees to any parts of the Evaluation Report shall'\be clearye.l1)h je Report itself and signed by the concerned Team member 'of invite, ~

The Technical Ev~ua~~i~ coordinated by the Evaluation Team Chairman while the Commercial Eva'l~ior)\~be 5-dordinated by C&P Chairman in consultation with the other/nie~ers. ~

Note: ~~he E~ua-00') Team is formed, it shall generally act as an independent body, with the-zespective'Team Chairman ensuring that confidentiality and integrity of the evaluation proceis' is maintained throughout the evaluation process. Although each Evaluation'r{am member may consult his Line Manager, such inputs shall be advisory and shall be taken into consideration by the Evaluation Team decision making process.

4.3 Collection and Distribution of Technical Bids

Upon notification by the GTC, C&P nominated representative shall collect the Technical Bids from the Secretary of the GTC and sign a receipt. C&P shall retain one copy of the Bids, and forward the other copies of the Technical Bids to RD Director under covering memo, (refer to Attachment B hereto), who shall then forward the bids to the Team Chairman of Technical Evaluation. However, in case of Tender below QR One (1) Million that was processed via the CEO in accordance with

CHAPTER 6 Page 50f23

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LLJ!::::>~IL.

his authority under the Delegation of Authority, Technical and Commercial Bids will be submitted directly to C&P Office. The Evaluation Team may reserve one fixed room in the premises to store the bid documents and conduct evaluation meetings. The room shall be closed and secured at all times when it is not in use and keys shall be kept in the custody of the Evaluation Team Chairman.

4.4 Technical Evaluation, Clarifications and Evaluation Report

a) The Evaluation Team shall carry out a detailed analysis and evaluation of the Technical Bids in order to establish whether, and to what extent, they conform to the requirements set forth in the Tender Document. The Team shall identify ambiguities,gaps and / or shortcomings in the submitted Bids, and seek clarifications in writing, as deemed necessary from the Bidders. All responses received from the Bidders shall be evaluated by the Team. The Team shall exercise its judgment as to whether or not the deficie~ies in any Bid are substantial enough to warrant technical rejection of the ~i~ ~out the need for

further clarifications. \,~ . '\.

b) The Evaluation Team shall endeavour to resolve~~ica!: com~ and contractual deviations, qualifications and exceptre~s, to al{ive as' far is reasonably possible at uniformed TendetCoinPI~nce for al)\Bids'vs6 that price then becomes the only decisive factor. ~II s~m~e~af\a,nd ~ntractual iss~es shall be resolved by C&P Team memberw\hll~II>lssues,rela!.ed to cost and time shall be resolved by PCD /Tea':Q, me(!1bet. Deviations, exceptions and qualifications taken by Bidders to the Commercial/f'contractual terms of the Tender shall be resolved if aGCordance~il~ Seftion 4.8 below. All technical items that may have a co~t ilnPact mus\ De ;esolved before the Technical Evaluation Report is<i(Sl1ed to~G-TC)or ~o llie CEO, in accordance with the Delegation of Authority, inbluding/eonditions for acceptance proposed by the Finance Team/member~n \Bid~(~iZ. requirement of additional Bank Guarantees e(~. "\. '\ ~

c) Technical Bid Cia~icatiQns' shall always be in writing, sequentially numbered, Si9~ 5Y~, and De~d~irectIY between the Team, and Tenderers.

d) In cases where/T~erers' clarifications have price impact, the Tenderers shall be instrLmted to sU,9n:ilt their commercial proposals or price impact, as a revision to the already su15mitted commercial proposal, directly to the Secretary of the GTC in accofcla'ilce with the Instructions to Tenderers. Such Tender Clarifications shall be copied to GTC. However, in case of Direct Order or Tenders processed via the CEO in accordance with his authority under the Delegation of Authority, the revised commercial proposal will be submitted directly to C&P Office. The timing of such calls for submission shall be at the discretion of the Team, but all cost impacts must be submitted prior to Commercial Bid Opening.

e) RD shall ensure that copy of all the Technical Bid Clarifications are forwarded to the Secretary of the GTC.

f) In case LREDC issues a Tender Bulletin for any changes in the original Tender Document; e.g. change on the SOW/SOS, correction etc. during the Technical Evaluation stage and which may result cost impact, RD in consultation with C&P


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Technical! Commercial Bid Evaluation Procedure

shall prepare the Tender Bulletin and issue the same to all Tenderers under RD Director's signature. However, such tender Bulletins shall be copied to GTe. Tenderers shall be requested to submit their revised proposals and price impact, as a revision to the already submitted commercial proposal directly to the Secretary of the GTC. However, in case of Direct Order or Tenders processed via the CEO in accordance with his authority under the Delegation of Authority, the revised commercial proposal shall be submitted directly to C&P Office. The timing of such calls for submission shall be at the discretion of the Team, but all cost impacts must be submitted prior to Commercial Bid Opening.

4.5 Evaluation Report

a) The Technical Evaluation Report should be in sufficient detail and, as a minimum, addresses the specific criteria used (if any) to assess the Technical capabilities of Tenderers, highlighting the areas that do not meet Tender","equirements, noncompliances to the criteria, and unresolved commercial ahd contractual issues, if any. A summary (refer to Attachment Ca heret;ta~ ~n ex"a~ple of ATypical Technical Evaluation Report) should be included~o detail\the c~~riii" u~d to determine Tenderers capabilities. The Team shall also i':arry'\out a Projlct risk assessment, and the Risk Assessment R~ort~all b~ai':hed'to the'Technical Evaluation Report (refer to Attachment C\heretO)~~ '> V

b) Upon completion of the Technical Evaluat\On\ffi, Team shall sign and forward the Technical Evaluation Report-ano'its reco~~endationA~ C&P and PCD and onwards to the respecti,{i Rq/6irectJ~00evie"w, endorsement and recommendation to the GTq or rtOAhElCE'c'),\n accordance with the Delegation of

Authority. ~ ~ __ <) ) c) The Report shall be fb~arded uRde;tcover of a memo (refer to Attachment C

hereto) with :<..ifr~commendatibn 'to-.Qper( the Commercial Bids of technically acceptable Biaders\The illemo \to the GTC or to the CEO, in accordance with the Delegation tit,Authority shall the signed by the respective RD Director.

d) A c~te docu~te~ci of all clarifications shall be retained by RD and

C&P~"v0 4.6 Collection and Distribution of Commercial Bids and Cost Estimate

a) Upon notif~tiO:;:y the GTC, C&P nominated representative shall collect the Commercial Bids from the Secretary of the GTC and sign a receipt. C&P shall retain the Commercial Bids, and notify RD, Finance and PCD of the receipt of the same. Similarly, in case of Direct Order, or Bids that are processed via the CEO in accordance with his authority under the Delegation of Authority, C&P shall retain the same, and notify RD, Finance and PCD of the receipt of the same.

b) C&P and its Team member shall retain custody and shall be responsible for the physical security and access to all Commercial Bids and Commercial evaluation related documents throughout the Commercial evaluation and Contract award phases. Commercial evaluation meetings shall preferably be held in C&P premises. Subject to practical and logistical considerations, C&P Team member


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LLJ'='r:::IIL


shall ensure that Commercial evaluation related documents do not leave the C&P premises.

c) Upon release of the Commercial Bids, the Secretary of the GTC or the C&P Director, in case Bids were processed via the CEO, shall release copy of the Cost Estimate to C&P Team member. PCD shall provide the detailed estimate to the Team.

4.7 Commercial Evaluation and Report

a) The Commercial evaluation shall be restricted to the Technically Acceptable Bids only and the Commercial submissions of the Technically unacceptable Bidders shall not be reviewed.

b) The Team shall conduct, clarify, resolve as much as practicable all outstanding commercial and contractual issues, and complete the commercial evaluation. Arithmetical errors shall be resolved in accordance with~he 'relevant provision in the Instruction to Tenderers. All communications ':Yith the Bladers shal~ be in writing. The Evaluation Team shall seek the GTf apRro~al or'~irector's approval in case the Bid was processed via the CE0~rio~to (:ommunicating with the Bidders regarding any commercial, technical (in"caS~h~fe still/a"ny) and contractual clarifications during the COmrerci;;-I'E~ualion stage 'an8 regardless whether these clarifications mayor may not have any,imp'act to lhe Tender Price. Any revision to the Tender Price shall be r~ferr'e(l'direct~to th~GTC or to C&P in case the Bid was processed/.via-the CE(\)o DeViations I>exceptions taken by Bidders to the commercial ar,ltJ cOQ!J:lctual t'erms of1h;:;--render shall be resolved in accordance with Section 4.8 ~ow~ \ ) .

c) In the event the TendCI'~~d@S a_se,f5"afate) Schedule of Rates, the Team shall carry out a sensitivit~analysis usin!;j'the' estimated quantities in the Schedule of Rates of the Tender Do'cume~ts a~the Biader's corresponding rates. In addition to the final 6omm'ercial tankin'g bas-ec( on the Contract Price, the Evaluation Report shall also clearly ~dicate the rankings based on the impact of the Schedule of Rat~s as inferred /~fter carrying out the sensitivity analysis. In the event the Team re&mmendsAhe Contract be awarded to the Bidder who is not the Io~eshanked bas'ea-onboth rankings, this shall be highlighted along with an explanation l'justiffcatfon for such a decision.

d) Whenev~,B~:/~y part(s) of the pricing I rates submitted under a Bid are substantially lower (in the order of 10% or more) in comparison with (i) the Cost Estimate, and I or (ii) all the other Bids, and lor (iii) the market prices (when known), this shall be highlighted in the Evaluation Report along with comments and concerns I recommendations.

e) The Commercial Evaluation shall normally conclude with identification of the Bidder for Contract award. Recommendation for the GTC or for the CEO in accordance with the Delegation of Authority to hold price negotiations shall be limited to those exceptional circumstances where (i) the Contract Price is substantially higher than the Cost Estimate and market prices, and lor (ii) when a specifically identified part(s) of the pricing is substantially higher than the Cost Estimate and market prices (iii)1 or when a major clarification, required


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Technical/Commercial Bid Evaluation Procedure . .._... ....

commercial information need to be resolved and obtained before proceeding with the final recommendation of Contract award.

f) Price negotiation during the evaluation shall be led by the GTC or by the C&P Director in case the Bids were processed via the CEO.

g) Upon completion of the Commercial Evaluation and identifying the Bidder for Contract award, the Team shall finalize the Commercial Evaluation Report, including the Award Plan Submission and all relevant information (refer to Attachment Da hereto). The Team and invitees shall then sign and forward the report to PCD and C&P for review and onwards to RD Director for review and endorsement. RD Director shall forward the report, along with his recommendation, by covering memo to the GTC or to the CEO, in accordance with the Delegation of Authority for approval (refer to Attachment D hereto).

4.8 Commercial I Contractual Deviations A During the Technical Evaluation, whenever there ay';::com~erci,\ or ~tractual deviations, exceptions and qualifications from Bidders, the "following pr-e..ceCJuy>shall

be followed: ~ ~ ~ / ...

i) C&P Team Member shall make an ini\i~p~e~e Bidder to withdraw all its deviations, exceptions and qUalificati00 . ~

ii) The Technical Evaluation Repoiho th~G~ o,/to$1e CEO, in accordance with the Delegation of ~Gttj.oritY6.ball tiighli9.lit deViations, exceptions and qualifications still maintalned,by-fhe Bidde}~, wJh the proposal to address the issue during the Commercial Evaluation.) V

iii) During the G~m$erc~~~the Evaluation Team shall identify the Bidders with wl:lom tfley intentHo_holcl negotiations or discussions, and seek the GTC o),the CEO, i~acccirdance with the Delegation of Authority, approval

for the same~ V ) iv) ~('lgotiation team/shall include the members of the Commercial

E\aluatibn Tearil'and other invitees as deemed necessary.

v) Any"de){i~'y'~ePted for one Bidder shall be communicated to all other technicallx/qualified Bidders, with instructions to submit the price impact directly to the GTC or to C&P, in case the Bid was processed via the CEO.

4.9 Award Approval

a) The Evaluation is deemed completed when the GTC or the CEO, in accordance with the Delegation of Authority, approves the Award Plan Submission and relevant approval memos are issued and received by the CEO, who in turn would forward the same to the C&P Director for further action in line with Contract Award and Finalization Procedure - Chapter 5.

b) If so requested by the RD Director, C&P shall forward to RD Director a copy of the Commercial Evaluation Report (plus Award Plan submission, Priced


o

Technical/Commercial Bid Evaluation Procedur~

tabulations, etc. as applicable), after issuance of a Letter of Acceptance (LOA) and Instructions to Commence to the successful Bidder.

4.10 Confidentiality

The Team shall carry out the entire evaluation in the strictest confidence, and shall not divulge or discuss any matters arising out of the evaluation with any party other than the Team members, the line Supervisor, their Directors and the invitees to the evaluation. The information provided to the invitees shall be on a 'needs only basis', at the discretion of the Evaluation Chairman who is the coordinator of the respective evaluation phase.




• Form the Technical Evaluation Team • Chair the Technical Evaluation Team • Review and issue Technical Clarifications • Coordinate the Technical Evaluation a~d sbpport he~o~mercial Evaluation • Forward the Technical and Comme~cial\E'\;aluatiOrl)R'Ports, along with

recommendation to the(GrCbr to \the "CEQ~--J.n/ accordance with the Delegation of Authority. ~\;;

5.2 Contracts & prozr-emen~.~)nt (C&.P)

Shall carry out (f\:win\~ <-~ • Collect the 'l"~chnicall oom~ercial Bids • Forward Tecnnical'Bi®,.fo RrD and notify of receipt of Commercial Bids • ,R~~i*r Technillall Comme'rcial Bids • 8((ordiflate with the'Evalcration Team • Provide 'a,mr6e'rof the Evaluation Team • SUP~0~ th"E3 Te~riical Evaluation and chair the Commercial Evaluation • Resolve~ommercial and contractual queries and GCOC deviations • Forward Oifmmercial Evaluation Report I Award Plan Submission to RD

Director for endorsement



CHAPTER 6

• Prepare and submit Cost Estimate to GTC by PCD. • Participate in the Technical Evaluation and the Commercial Evaluation of

Tenders including evaluation of cost and carrying on sensitive analysis, preparation of price tabulation and price comparison.

• Provide detailed Cost Estimate during the Commercial Evaluation.

Page 10 of 23

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Technical/Commercial Bid Evaluation Procedure . . .

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5.4 Evaluation Team


• Evaluate Technical and Commercial Bids • Resolve Bid queries with Bidders • Prepare Technical! Commercial Clarifications • Prepare the Project Risk Assessment Report • Prepare and sign the Technical and Commercial Evaluation Reports • Conclude the Technical and Commercial Evaluation • Forward the Technical and Commercial Evaluation reports to C&P, PCD for

review and onwards to RD Director for review and endorsement.


Shall car~ out the following: . . . 6 A •

• Provide a member to the Evaluation Team dUrlng,the Technical Evaluation Phase <: ~ '\ V)

• Advise on audited Financial statement submitted'by Biaders~urin~he Technical Evaluation stage ~ "" '" V

• Participate in the Commercial Evaluation Phase'~,\henJeqUired by the Commercial Evaluation Team \:> /J V


~ ~ ~

L-W'='~IL-


Attachment A - Flowchart for Technical/Financial Tender Evaluation

0 0::: ~

Nominate Chairman and _ 0 o...~- Members to Evaluation Team 0/5 0 0

- OJ '-' ~ .= I ~O

0

Technical Evaluation Team Financial Evaluation Team Collects & Collects & Evaluates Tender

Evaluates Financial Submissions Submissions

E

I 0 ro OJ

k cal lssues In I-

" ,~" ,,,.-~ '\ ~ c Tenders resolved so as 0 Price only variable? :p ~ from Tenderers so that "-ro price only variable ~ :::J

ro \ \>~ Prepare Financial I > w I Prepare Technica: I Evaluation Report

Evaluation Report a ~~ ct cb \~ ) .A.

0 " "~~

. -w O.?;-U 05 - ·c

o.roO , " \<.. - (j)~£ -u ro ro :::J , \ ) I- :2:<{ , " (9 , , J

-

Note: In the event of conflict between the flowchart .. and the text, the text shall prevail.

CHAPTER 6

----

~ I Receives Evaluation Reports and I

makes Recommendation

Approval of Recommendation for Award

Page 12 of 23

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Attachment B - Example of Memo for Distributing Bids for Evaluation


TENDER NO

TITLE

SUBJECT TECHNICAL BIDS FOR EVAWATION s:\ Please find enclosed one / two copies each of the Te~'B~reCeiVed\from' he following

~~nderers in respect of the above tender for your nec \ ssaValua,~

3.

5. ,--,---4. ~ 6 . ("

T~chnical Bids are to be~~ate~y"an\vali:JatiOn"Team consisting of members from the Requesting Department, Oqntnilits & P~ocul,ement Department, Project Controls and

Finance Departm~ ~ ~

Please note th~the technic~and Commercial evaluation and the subsequent recommendation ~hOuld'b?,submitted to GTC/CEO, not later than ______ _

Regards, V

(Name)



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Attachment C - Example of Technical Evaluation Report Summary Memo

REQUESTING DEPARTMENT MEMO

To : GTC/CEO Date:

From: (respective RD Director) Ref. No.

TENDER NO:

TENDER TITLE:

TECHNICAL EVALUATION REPORT

Please find attached hereto the Technical Evaluation Report, Whi6cluded that -"---_--,"'----_ tenders are technically acceptable and tenders are fe~cl,I~~Cce~a6ie, as detailed in the attached report. ~ V V

The attached report is * endorsed * not supported. "\::> We seek the GTC I CEO kind ';9pwv(.6n<leJion and request it to open the Commercial Bids of those techn~all~accePtabla(j foiward the same to the Contracts &

'ro~rem,", ,,, Comme,",' ~ U

Respective RD DirettV

Cc: Company CEO Company Contracts & Procurement Director peD Director

* Delete as applicable. Please provide detailed reasons along with own recommendation if not supported.


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TechnicallCommercial Bid Evaluation Procedure

Attachment Ca - Example of Technical Evaluation Report

TECHNICAL EVALUATION REPORT

TENDER NO:

TENDER TITLE:

INTRODUCTION:

(Provide a brief introduction, stating the project outline, background and location.)

SCOPE OF WORK:

(Provide a brief description of the scope of the proposed work to be contracted.)

TENDER INFORMATION:

The tender was issued on ______ _

The following companies purchased the tender:

1. 2.

3.

4.

5.

6.

with a closing date of

A tender clarification meeting was held on ______ _ The meeting was attended by:

numbers of Tender Bulletins were issued during the course of the Tender.

Bids were submitted on

1.

2.

3.

4.

CHAPTER 6

by:

Page 1.

Page 15 of 23

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Technical/Commercial Bid Evaluation Proced1,lre

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Attachment Ca (continued)

TECHNICAL EVALUATION REPORT - (Continued)

The technical bids were opened on

TECHNICAL EVALUATION:

The technical evaluation was carried out by an Evaluation Team with representatives from Requesting Department, Contracts & Procurement Department, Project Control and Finance department.

The Technical Evaluation was based solely on the information provided by each Tenderer.

___ numbers of Technical Bid Clarifications were issued and satisfactory responses

were received from all Tenderers. (Clarify if satisfactory responses were not received.)

A Risk Assessment was carried out and the report is attached.

RECOMMENDATION:

Chairman and Team Member Name, Title and Signature

Team Member Name, Tille and Signature

Invitee Signature (whenever applicable)

Team Member Name, Tille and Signature

Page 2.


TechnicaI/Commercia:l.Bid EvaluationProcedure

Attachment Cb - Example of Risk Assessment Report

RISK ANALYSIS REPORT

INTRODUCTION:

SCOpE OF WORK:

ASSESSMENT TEAM:

This Risk Assessment was completed on by:

1. 2.

3. 4. 5. 6.

pROJECT OBJECTIVES:

AREA§ QQVERED BY THI§ RI§K MANe,!;2EMENT ANAL Y§I§

1. SCOPE OF WORK

2. SAFETY

3. CONTRACTING STRATEGY

4. SCHEDULE

5. COST

Page 1.


Technical/ Conimercial]3id Evaluation Procedllte

Attachment Cb (Continued)

RISIS AN.!!.!. YSIS R!;iPQ!F

POTENTIAL RISK IMPACT MITIGATION ACTION 1. SCOPE OF WORK

SOW lacking clarity .. Any potential changes

.. Modification of SOW

.. Cost escalation

.. Schedule impacts

() Does the tender Incomplete SOW content cover entirely the SOW?

Were all engineering disciplines involved?

Incomplete SOW

Is the SOW racking in .. SOW incomplete with sUfficient details for potential cost I time tendering? impact

.. Risk of misunderstanding of the SOW by bidders

Has the SOW been .. Inadequate detail design based on as-built data and drawings? .. Potential variations

Has the SOW been May not achieve end reviewed by other user expectation departments?

2. SAFETY Is HAZOP required? Unsafe design

() Are Loss Prevention Unsafe design requirements included in SOW?

Is the SOW complying with lUsaii Co. Fire & Safety Philosophy? 3. CONTRACTING STRATEGY Was a contracting Project objectives may strategy defined? not be achieved

Any risk due to Fixed • Quality of finished works Price Contract? Were may be unacceptable all reference codes standards identified?

Are the contractors • Incompetent contractor qualified for this may undertake this particular project? contract

• Unacceptable quality of work

• Contractor unable to complete SOW

Page 2.


Te.chiIical I GOIllmercial Bid Eya1uarion Pr()cedure '. . ' .. _-"--_. . - -.. - "

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BI§~ atU~L.:tSUa BI;E!QBI

POTENTIAL RISK IMPACT MITIGATION ACTION 4. SCHEDULE Was a project • Schedule not achievable execution plan prepared?

Is the project execution plan realistic?

• Potential delay

How is the project • Major impact schedule

coordinated with other and subsequent

jnter~related projects? extension of the

What is the impact of Contract

delay of any of these projects: . Delay in commissionin~

and handover

5. COST Was a budget estimate Delay for budget prepared for the revision and approval project? How reliable is it?

Is there a risk of Cost escalation variation? Cost escalation?

Page 3.


o Technical/Commercial Bid Eyaluation Procedure

LU'=:'r-=lIL....


BISIS 8~8LX§IS BI;E!QBI

POTENTIAL RISK IMPACT MITIGATION ACTION 4. SCHEDULE Was a project • Schedule not achievable execution plan prepared?

o Is the project execution • Potential delay plan realistic?

How is the project • Major impact schedule

coordinated with other and subsequent

jnter~related projects? extension of the

What is the impact of Contract

delay of any of these projects: . Delay in commissioninf

and handover

5. COST Was a budget estimate Delay for budget prepared for the revision and approval project? How reliable is it?

Is there a risk of Cost escalation variation? Cost escalation?

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Technical/Commercial Bid _Evaluation Procedure . . - .

Attachment D - Commercial Evaluation Report and Award Plan Submission Memo

MEMO

To : GTC/CEO Date:

From: respective RD Director Ref. No.

TENDER NO:

TENDER TITLE:

COMMERCIAL EVALUATION REPORT AND AWARD PLANilJBMISSION

Please find attached Commercial Evalualion Report and AW~d PI~~2bmiSSion fo "!JJ subject

Tender. // \ V

The Bid Evaluation Team recommends that €ontract·No.-.. be awarded as detailed in .. ---'-~.~~ The attached report is * endorsed * not supported.

W'_'.'G"'''O~~::''~" /

./

Cc: Company CEO Company Contracts & Procurement Director Company peD Director

RD Director

• Delete as applicable. Please provide detailed reasons along with own recommendation if not supported.


Technical! Commercial Bid Evaluation jlrocedure

LLJ.E::>r-IIL

Attachment Da- Example of Commercial Evaluation Report and Award Plan Submission

.~ -_ .. 0-- • ___ • __

COMMERCIAL EVALUATION REPORT AND AWARD PLAN SUBMISSION

TENDER NO:

TENDER TITLE:

o ____ ~~ .. ~~R _____________________ MM .......... ~ _________________________ ........ _. ________ .. ~ ______________ _

INTRODUCTION: A <-. '" Further to our Technical Evaluation Report submitted to GTCI CEO, Ref. No\' '" ~ dated

()

____ the GTC/C&P has opened the Financial Bids dated /'.... \, \, (a'riaVsed to

Contracts & Procurements Dept) for financial evaluation (on ( ~) s:> SCOPE OF WORK: \ \> ::> (Provide a brief description of the scope of the proQ to be c,\trac\,a.J'

TENDER INFORMATION: A ~ V The tender information was issued on \ "". with a.closing date of companies

purchased the tender, with /'-..ccinpani;;S,su?r;.itti~9 teders. ,,""'\ ~ COMMERCIAL EVALUATION dF. BIDS:V

Rank Bidder's~me / ,

Bid Price Technical Commercial or Commercial

V (including Acceptance Contractual Status or Addendum) (Yes I No) Reservations Comments

QR

1.

2.

3.

4.

5.

, CHAPTER 6 Page 22 of 23

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Attachment Da (Continued) - Example of Commercial Evaluation Report and Award Plan Submission

COMMERCIAL EVALUATION REPORT AND AWARD PLAN SUBMISSION - (Continued)

COST ESTIMATE

The Corporation Estimate is _______ (explain any variance by 10% or more)

BUDGET

The lowest technically acceptable Bidder's price is within / above the budget that is available under item nos.

--'--'--'

RECOMMENDATION:

The GTC/CEO approval is requested to award Contract No. to M/S/'" for

,",~,oo."" ~ A The Contract is intended to commerce on ________ " "" '" V' /

~) '".;~'" ,"",.m "~ ~ <'..1. ~_ Name, Title and Signa~e. V N:e, Title and Signature

~ ~-------->.,\.~V \ Team Member", . /

Name, Title and Sign~Ure

Note: Invitee's obselVations/ comments on the specific issues shall be attached.

Endorsed: (as applicable)


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o A

CONTRACT AWARD '" "" AND FINALIZATION PROCEDURE 'V

eR ~

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Contta,ct Award and Finalisation Procedure . -. - . , ,-' -.., " .. " ,- . , . - -,. ,. .


1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

5.0

4.1 Initiation

4.2 Preparation of Letter of Acceptance (LOA)

4.3 Authorization for LOA

4.4 Contractor's Acknowledgement of LOA

4.5 Notice to Proceed Letter NTP

Preparation of Purchase Order ~ 4.7

4.6

Insurance, Performance Bond and AdVanC~~yment-Guarantee Requirements Q \ v~ Preparation of Contract ~Cl:@.entana)'Eorvgreement (FOA)

4.9 Review of contraC~GUmeDt~ 4.10 Signing o\6'ntradooc~enl'~ 4.11 Distribution o~~~~ct ~cument

4.8

/A, " ) 4.12 ,~gre~tterS2' Re~of'Tender Bond

RESPONSIBILITIES ~ v

5.1 Requesting\~ rtment (RD)

5.2 Contracts and Procurement Department (C&P)




Attachments Attachment A Flowchart for Contract Award and Finalization

Attachment B Example of Letter of Acceptance

Attachment C Example of Notice to Proceed


"

~ Cc:mtract Award and Finalisation Proc;edure .

8 "i~ L-L-'E=r::IIL-

Attachment 0 Example of Contract Insurances Memo

Attachment E Example of Final Bank Guarantee (Performance Bond) Memo

Attachment F Example of Regret Advice Fax

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C)

Contract Award and FinalisationProcedure

1.0 OBJECTIVE

This procedure details the method to be followed in the preparation and formalization of Contracts. including review and issue of the Letter of Acceptance with or without Notice to Proceed (NTP) (if applicable).

2.0 SCOPE

3.0

4.0

This procedure applies to all personnel involved in the activities associated with the award of a Contract from receipt of approval from the CEO, Lusail Chairman, GTC or from the Lusail Board in accordance with the Delegation of Authority, to preparation, approval, signing and issuance of the Contract Document.

POLICY I MANAGEMENT INTENT

The award of Contract shall be in accordance with the I~ibns to Tenderersl Bidders (ITT) and shall conform to the GTC RegUlations~

PROCESS

The procedure is flowcharted in Attachment A~\ . 4.1 Initiation ~ '>

/---) ~ //V Contract preparation should e~e,cti@/t>e-a,continu6us process, from issuance of Tender Documents I RF~s,\up~o signing of j~e\9;)~tract Document by the both parties to the Contract. (I::REDC and.Contractorl Consultant I Supplier)

(A~ """,\ V 4.2 Preparation of L:e~ter of\Acceptance (LOA)

a) unlesSj(etermi~~ a~in/or!p~d to C&P in writing by RD Director that the Contract is 'urgent'-::a,LOA/shall be used as the instrument for notification of Tender aCCePtance,,,\ Stail'dard format for the LOA is shown in attachment B.

b) On re~\o~/a{Proval from the CEO, Lusail Chairman, GTC or from the Lusail Board~n accordance with the Delegation of Authority, C&P shall prepare a LOA for RD review and CEO's signature. The LOA shall specify the following:

i) The Tender reference ii) The Contract Price for the purpose of the Bank Guarantee

(Performance Bond and Insurance Certificate) iii) The start date of Bonds and Insurance Certificate iv) The Contract duration v) Contact details of the Company's representative for the Contract vi) Date by which Contractor shall submit copies of Insurance Cover and the

original Bank Guarantee (in the absence of pressing situation, maximum of 14 calendar days to be given).

vii) Final details of Technical I Commercial bid clarification agreements with indication of order of precedence


C)

C)

Contract Award and Finalisation Procedure

c) The start date for Bond and Insurance Certificate shall generally be the same as the anticipated Effective Date of the Contract. In the event the Effective Date is later than the start date, C&P shall obtain validity extension for Bond and Insurance Certificate.

d) Approval of C&P shall be obtained for any changes I modifications to the standard LOA form, where the nature of works I services necessitates modifications I alterations.

4.3 Authorization for LOA

a) Upon review of the LOA by RD, C&P shall arrange for the signing of the LOA by the CEO.

b) C&P shall issue I fax the signed LOA to the Contractor, keep the original to C&P and copies to the Secretary of the GTC, Finance Department, RD Director, and the Company representative for the Contract.

4.4 Contractor's Acknowledgement of LOA

C&P shall ensure that the Contractor's aCknOWledgem~accep.tavnce of tlie LOA

" " " is received by the due date, and a copy of the same is forwarded'to R .

4.5 Notice to Proceed Letter (NTP) \ \2 » a) Standard Format for NTP is showrilil'Attachment C.

((~~-- \ b) Upon receipt of the approv~1 fmm-tile CEQ, Lusa'iJ Chairman, GTC or from the

Lusail Board in accordance~ith the D.eleg'atibp/o'f Authority, RD Director may determine the Contr~t a~\urgent~u2h dktermination, along with justification for the same, s~:z:e conveyed i~itm9 !tYRO Director to C&P.

c) Only for thos~Contract~ee~d 'U~t' in writing by RD Director, C&P shall include in the LOA a date ahd dmditions (if any) for Notice To Proceed and the LOA,Silall be revi~wed 'by'RD):lirector and C&P Director before issuing. All the Provision's~ Section's'4,,2,3(3 and 4.4 shall also be applied to the LOA.

Notw~stanain~hing to the contrary, RD Director shall ensure that the Contractdr\, sha~riot commence work or services or provision of goods under the CQ.ntract unless the Contractor has submitted the Performance Bond and evidences of Insurances in an acceptable format. Furthermore, no Advance Payment shall be processed to Contractor unless the Advance Payment Guarantee has been submitted and accepted by Finance Department.

4.6 Preparation of Purchase Order

CHAPTER 7

Upon receipt of the Award Approval from the CEO, Lusail Chairman, GTC or from the Lusail Board in accordance with the Delegation of Authority (DoA) matrix, C&P shall convert PR in to PO in ERP. Then the PO is distributed for approval through ERP, as per the LREDC's Delegation of Authority (DoA) matrix

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ContractAwardan:dEinalisationProcedure . -. -, ' - - ,-, - - .. - ,.. - -- - .' - - ~.-: ',- ,- , -- -, '-" .

based on the total value of the PO. This is automatically handled on the ERP system.

4.7 Insurance, Performance Bond and Advance Payment Guarantee Requirements

a) On receipt of the Insurance Certificate, Performance Bond and the Advance Payment Guarantee, C&P shall forward the same to Finance Department for review and retention, with copies to RD and PCD (see Attachments D and E).

b) Finance shall provide approval/comments on the documents within five (5) working days of receipt.

c) Details of any changes to the submitted Insurance and/or Performance Bond/or Advance Payment Guarantee shall be agreed with Finaye,and be reflected in the Insurance/Performance Bond/ Advance Payment Gu~nte~rior to ~aining the Contractor's signature on the Contract. ('\ ~_ y .)

d) The process of issuing of an LOA, receiving the Performance Bond, AtJvance Payment Guarantee and Insurance, and obtainil:1g Fin~~e ;):p~rdv~1 oflhe same, shall be carried out in parallel with the eontracl'Q~ument finalizaflon process,

,od do.y to "0' pm=' t, 0"1 "p"",,d b\"\>~~"'~",.

4.' p~P"'''"O ofC""~~d F\7' Ag,oomool (FOA, a) C&P shall prepare t(e)a~ 60ntra-cfD'ocu~ent, including the FOA, using the

Tender Document, render\.BU~ElfulS~ Tender Clarifications, the successful Tenderer's Bid(a'hd sub~equent ag(eedA3bnditions if any. The Contract shall also include all am'endm~~s agreed \Juringthe Tender Evaluation and / or during the negoti~tions. "\ "') )

b) Wit~ ttJe~ime pe~Q~per0~Pls from receipt of the approval from the CEO, Lusail" Chair,manyG--c.C or from the Lusail Board in accordance with the Delegati~n of'e.othorlty, RD in consultation with PCD shall provide to C&P the required iqformatior<' i.e. Scope of Work/Scope of Services, Specifications, Drawings, BOQ(Elxecution program ... etc updated with respect to the Tender Bulletins, am;Yndments agreed during the Tender Evaluation and/or during the negotiations for C&P review and compilation. Amendments/agreements reached after the Contract award (viz. after the LOA date) shall not be included in the Appendices provided by RD. Documents shall be given in hard copy and in electronic format.

c) C&P shall compile and get the draft Contract Document ready for review within the time period as per KPI.

d) C&P shall closely monitor the bid validity period and, if necessary, advise the successful Tenderer to extend this period to ensure that Bids and the Tender Bond remain valid until the submission and acceptance of the Performance Bond (Bank Guarantee) of the successful Tenderer.


C)

Contract Award and Finalisat.ion Procedure'

4.9 Review of Contract Document

a) Upon finalization of the draft Contract Document. C&P shall circulate the documents for Internal Review to the RD. PCD. Legal and Finance Departments in soft copies format by email and copies will be kept in auditable manner.

b) Comments/amendments received shall be suitably incorporated into the draft Contract by C&P.

4.10 Signing of Contract Document

a) C&P shall prepare two originals of the Contract Document (with the FOA duly endorsed by C&P and RD Director). and stamp the entire Contract Document.

b) Subject to provision of acceptable Performance Bond. Advance Payment Guarantee and Insurance by the Contractor. C&P shall then advise the Contractor to attend to the Company' C&P office to sign the Contract Document (C&P shall make appropriate arrangements to obtain sfgn~' re from overseas Contractors).C&P shall ensure that the Contractor: ~

• Stamps and sign the FOA • Stamps the entire Contract Docum(t~

Note: Contractor shall initial the entire €OntrackDocu~t in the event a

stamp is not available. \ V d c) After the Contractor Signs;Qract. C&P "shall proceed to obtain the

Company authorised signature (htl1eF"~~ \/. d) Upon receipt of the s~, 2ontraGt;158;p sljiall distribute copies of the Contract

Document in accorda?ice with Sectiorr4:i 0 b~low. /~ :\. " (~

4.11 Distributio~ the contracipocument

Th. "'\~_ct ,heLd by C&P ., fo"~, Contracto~ _ ~ A - Original Contract document Documen'fcontroI'6ffice> - Original Contract document

C&P shall ~v~Pload signed Contract Document to Enterprise Document Management System (EDMS) and post EDMS link to the following Department Directors; Contracts & Procurement Director Requesting Department Director Project Controls Director Finance Director

4.12 Regret Letters. Release of Tender Bond

a) Upon submission of an acceptable Performance Bond by the successful Tenderer as per the Tender requirement to C&P. C&P shall prepare a fax notice (see Attachment F) to unsuccessful Tenderers stating that their Tender was not


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Contract Award and FinaUsatio,n Proce(lnre ....

accepted and that arrangements have been made with the GTCI C&P to return the Tender Bond. RD Director shall sign and issue the fax.

b) C&P shall also issue a memo to GTC requesting release of Tender Bond to the unsuccessful Tenderers.

c) In the event a Tender is cancelled, C&P shall draft an appropriate letter and issue the same to all Tenderers under RD Director signature to this effect.




• Review the LOA I NTP •

• • •

Ensure that Contract Appendices i.e. Scope Workls.erv~~.~, Specifications, Drawings, Schedule of Prices/BOQ, Contractor's <Reso.,\ces , Execution Program ..... etc are updated and forwarded to C&P, or'<s:ontract Compilation. Review and endorse the draft Contract Docum6nt ~/ Sign and issue Regret Letter(s) Endorse the LOA I NTP

5.2 Contracts and Procurement Department'(~P)

Shall carry out the following: ~ \ V • Prepare, obtain signatur7, a?d-i~eJ~x the L~A/NTP • Obtain Performance Bond, IAstlrance and ~dV51nce Payment Guarantee from

Contractor and forward tAe sam~to-~na~ce-/ • Prepare contrac{Doc~;'fS~ ) • Forward DJaft Contfact for'{eview by tre concerned parties • Initial and(Obtalh,Contract sign~ures' • Distribute ~gned <s:ontr~t cobies • ?el(are Reg~t\:~s.to)~/Jccessful Tenderers

5.3 pr~ecl'Controls~partment (PCD)

Shall c;:Wr,y ~401l0Wing: • UPdate't~e Contract Appendices as applicable especially the Administrative

Procedure~ Appendix F, Schedule of Prices/BOQ and Contract Execution Programme.

• Review Contract Document



• Review Performance Bond, Advance Payment Guarantee and insurances • Keep the Original and be the custodian of the original copies of the above

documents.

5.5 Legal Department Shall carry out the following:

• Review Contract Document



Attachment A - Contract Award and Finalisation

GTC I CEO as C&P Department Requesting Departm ent

Appropriate

Approval of 5 Contract Justified as Ye~ Contract Award ·Urgent?"

; Prepare

Review Standard I Standard I LOA

LOA

"\ \. / Arrange for signing of ,

LOA

"'\, <' / ./

C? > ,-

Issue LOA for Acknowledgement V

by Contractor I Consultant

L .' \ \/ Acknowledgement of LOA Received from Contractor / Notice to RD

Consultant ) Prepare Final

Contract Documents for Internal Review

/

ave Bonds, Insurance, Etc. requirements been )' ._""--, Incorporate comments

received and Prepare Final Contract Documents for

N~ Signature

Ye, Send Notice to Contractor to -

correct

Arrange Contract Signing



Attachment A continued

GTC I CEO as C&P Department Requesting Department

Appropriate

y Prepare

Review of LOA LQAwith with NTP

NTP Language included

Arrange for signing and issuance of LOA with NTP /

< /

] Issue LOA f NTP to Contractorl 1 Consultant for Acknowledgement

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V \:)

1\ \ ~

" / ) / A

< \.

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Note: In the event of conflict between the flowchart and the text, the text shall preva il.



Attachment B - Example of Letter of Acceptance

Date:

Ref. No.:

To: (Contractor's Name) P.O. Box ............ . Doha - Qatar

ITender Ref:

Subject: [Contract I Package Name] [Contract ID] LETTER OF ACCEPTANCE (

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1. We are pleased to advise that, Lusail Real Estate Development Company (LREDC) hereby accepts your BidlTender Proposal for the above referenced Tender. This acceptance is based on your Tender 1 Proposal submission vide letter reference __ -,-___ -,-~.' dated _1_ 1 __ , as well as the subsequent clarifications and amendments provided by the following documents:

a)

b) \

c)

In the event of any conflict, discrepancy or inconsistency between any of the above referenced documents, the latest executed document shall take priority.

2. The Contract Documents are being prepared and will be made available for your signature in the near future . Until the contract documents are signed , th is Letter of Acceptance, together with your Tender SubmissionlProposal, as amended by the above referenced documents sha ll form the contract between your organization and LREDC. Please note that:

(i) The Contract Price sha ll be Qatari Riyals (QR ); (i i) The start date of valid ity of the Bond and insurance sha ll be _______ , (iii) The contract duration shall be ; and, (iv) [List any other essential terms and conditions applicable to the agreement]. (v) You are entitled to an advance payment of (X% to be in line with the C&P

Manual) of the Contract Price !Total Fee against your submission of an equiva lent amount of unconditional and irrevocable Advance Payment Bank Guarantee.


C)


3. You shall not commence work under this Contract until a Notice To Proceed (NTP) letter is issued by LREDC. Issuance of the NTP is subject to the following requirements:

a. Submission of the Performance Bond, and acceptance thereof by LREDC; and b. Submission of necessary insurance, as stipulated in Appendix C of the subject

Tender Document, and c. Satisfaction of all other conditions or requirements stipulated in the Tender

Documents (or RFP); and d. Signing of the contract document by both parties.

4. You are not authorized to commence with the Contract work as described in Appendix A of the subject tender until the above conditions precedent have been met.

5. The LREDC Representative for the Contract is correspondence shall be addressed.

to whom all

6. Please confirm, by return fax, receipt of this letter and advise Game, position and contact telephone number(s) of your Representative t~ '" '" A at

W ~

P"1 For Lusail Real Estate Develop~t"Comp;o )

~;;-~~~~) ) '--../

~ ~ Acknowledgement and~cceptance

Regards,

We hereby acknowledge acceptance of all the terms and conditions set forth in this letter, and confirm that we shall proceed with the actions as set forth herein.

For Contractor

Name: Title :



Attachment C - Example of Notice to Proceed

Date :

Ref. No. :

To: (Contractor's Name) P.O. Box ............ . Doha - Qatar

Subject: [Contract I Package Name] [Contract 10 Number]

NOTICE TO PROCEED

We have received your Performance Bond, Certificates of Insurance, and [identify any other

submissions required and mentioned in the Letter of Acceptance] by letter reference __ _

dated _,_, __ and determined these to be acceptable. Having satisfied the requirements

and pre-conditions set out in the Letter of Acceptance dated _,_,_ (ref. No. ___ _

you are hereby authorized to commence the works , services required by the above

referenced Contract effective _,_, __ [Insert date Contractor will have access if different

from date of this NTP letter].

best Regards, \

For Lusail Real Estate Development Company

/

CHIEF EXECUTIVE OFFICER



Attachment Do Example of Contract Insurance Memo

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CONTRACT NO

CONTRACT TITLE

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SUBJECT : INSURANCES ~ As stipulated in the Contract, please find attached copies of the following in0:ssrances sUB~ed bY/MY."" .

. "."~;". ~~~;;~~;~;~.;;; ~i~~~"I~~u::n~:ur vetting and retentiOn(; " V b) Third Party General, Legal and Contractual Liability InSUranc\) ~ ~ c) Loss or Damage to LREDC Property _.:> \ )' ~ d) Workmen compensatio.n Insurance C.:>:\ \ ) e) Plant, Tools and Equipment Insurance ~) ) V

C"'t""'~;~ tlR/~) C Contract Duration./.\" .. ",,~ths from ...... I .... " to .. " .. """ .. , plus """ .. "...... months Guarantee

Period. ~ "'~ /\--/ Please confirm in writing the acceptability or otherwise of the above so that we may finalize the Contract

Document. V Regards,

(Name)



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Attachment E - Example of Performance Bond Memo


MEMORANDUM

To Finance Department ~ Date:

From: Contracts & Procurement Director CONTRACT NO : ~~V CONTRACT TITLE ~ V SUBJECT : PERFORMANCE BOND ~ \> Please find enclosed, for your review and retentlCriginal_performa~ce B~ an amount of .............. % of

Contract Price submitted by Mis ....... Z 6 ........... ~ .......... \ ... 'V) ...... The Performance Bond value

and validity are found to be acceptable. rzurt~'d~nsa;;;:;;:~IOWJ: " ...... 7 / ~

1 Performance Bond No ,( '",: '" \ '''--...... / 2 Performance Bond Value '"

"" ) )

3 Performanc7B6'n~ Validity ~ ~

/ 4 Contract Price,

'" . ",--"",/

/, 5 Contract Duratio~ V :/

/ 6 Guarantee Period '" /// Please review and confirm back in writing to the undersigned the acceptability or otherwise of the above, so that

we may finalize the Contract preparation. In the event we do not receive any response within five (5) working

days of this memo, we shall deem that this Performance Bond has been found in order and we shall proceed

accordingly.

Regards,

(Name)




Attachment F - Example of Regret Advice

Ref. No.:

Date:

Mis [Tenderer's Name] P.O. Box. Doha, State of Qatar

Attention:

Project:

Tender Ref. \:> .,bj .. ,,, Lott" of ... rot ~ With reference to the above ten~e regrer~vise that your submission has not been

successful. "" ~ "" ~./ Kindly be advised that yo~~e~r bon.CI is ~:;;;:;or collection from GTe secretary on .....

I~ " J ! I ..... J 20 ... , betwe~ 08:00 a.~p.m.

Thank you for ~ur P~~cip~0A\and we look forward to the opportunity of working together

in the future. V

Director - Requesting Department


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Rev Date Reason





I i'·· .• ···.Y,atJ~tio!ltQ.GQPtplctsPfQj;j.ldure . ".- -;"00 '" ":>"C'" '-, _ -_ - - - ,c'. -_ - ",. ,-, ;.'_,!'o C', - _', ~:. - . _ ' - __ , __ )' _.: '0 __ " ,._' _ o .. -"._

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1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

4.1 General

4.2 Notice of Variation and Justification

4.3 Variation to Contract Process

8 4.4 Variations Resulting from Claims I Dispute Sett e1;;~ht

4.5 Contract Amendments

4.6 Change Request, Variations Register \) 4.7 Exceptional Cases


5.1 ReqUestin~~a~'~rp 5.2 contracts~rocurement Departmen (C&P)

5.3 /prQject Control~\art~e~(PCD) '\, .

5.4 "R E"Veam-----

ATTACHMENTS

Attachment A - Flowchart

Attachment B - Notice of Variation Form

Attachment Ba- Change Request Form

Attachment C - Memorandum to Award Variation to Contract

Attachment D - Contract Variation Form


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I Vati!.ltiontoContractsPtocedure I LLJ'='~(L

1.0 OBJECTIVE

To control changes and amendments to Contract and to manage the process for the initiation. review, approval and award of Variation Orders and Contract Amendments.

2.0 SCOPE

3.0

4.0

This procedure is applicable for all Change Requests, Change Proposals and Variation Orders for all Contracts.

POLICY/MANAGEMENT INTENT

Contract changes shall be strictly controlled in accordance wi!!J,t~ Variation Clauses under the Contract and this procedure in order to keep the number and cost of Variations to Contract as minimum as possible.

PROCESS

The procedure is Flowcharted in Attachment \~

4.1 General /J. V a) During Contract execution, (RD~otlld-be mind ul that Contract changes and

Variations are the result of\ insYuctions to\dJntr~ctor that have the effect of changing the contracrSo~o~_dUraTIOn, costs" or manner of performance.

b) Instructions t~eo~r~"to pr~~h/(ariation Orders shall only be issued by the indivi~ual "Company'~\ r~sentative under the Contract who is authoritized to act on b.ehalfbf the Company.

c) The~i(!istratiO~f .f~c~anges shall be in accordance with the Variation Claill>es of'the cont~ancrthis procedure ..

d) In the\en~y doubt with regard to the Variation to Contract process, including C'atvi,ration of the proposed changes, it shall be resolved by C&P.

4.2 Notice of Variation (NOV) and Justification

If, during the course of Contract, it is determined by the Company that a change to the SOW/SOS, duration, cost or other terms of the Contract is necessary or desired, then RD, shall prepare NOV using the NOV Form a sample of which is included in attachment B. The NOV should clearly describe the nature of the change and should also include as a minimum the cost and/or schedule impact; and a narrative describing the reason and justification for the change.

While preparing the justification of the NOV, the following shall be taken into consideration:

(i) Background to the change including why it has become necessary or desired;

(ii) From where has the changes been originated and whether the change is covered under the original SOW/SOS;


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I . Varia:tion to Contracts Itr()cedure -',,,-~, -" . -, , , - -, .-- --, . <-'.:-~~'" ",_ i ,- -' - ,-' ,.

(iii) Whether there are alternatives to the proposed change together with the cost and/or time implications of the alternative;

(iv) Whether the change will impact the Contract duration; and (v) Any additional information or factors which will assist the Approving

Authority to make the proper decision.

4.3 Variation to Contract Process

a) Evaluation of Notice of Variation (NOV)

(i) When RD in consultation with C&P and PCD determine that the proposed changes justify adopting the Variation process, and in the event that the changed SOW/SOS can be clearly defined by RD, RD shall then initiate the NOV Form and forward the same to C&P alo~~th clear definition, sufficient description and justification (refer to Att<lchment B) together with relevant sketches, specifications, correspo~~ce:emails,anCY7~ other necessary information as required. "" ~~ V

(ii) RD shall also forward the NOV )n-6ii:Jdi~ SOW/SOS an~all technical information to PCD for review and\or~afatiori'of th~Cost Estimate of

the NOV. \ \> ~V (iii) Where the NOV is e'lvi~to have a cost1'm)'lact, RD in consultation

with PCD shall ensur( b~tavail'lbi)ity. (

b) Finalization and Iss~ce a®;:=re~~(ProPOSal(CRP) to Contractor

(i) Based/on, t~~~fliQ.h incl~es SOW/SOS and the technical inputs/details, provided by RD;' C&P in coordination with PCD shall prepare'\the O~ FlDrm (refer to Attachment Ba), including the pricing

/~hedule,'d!(ation.ahd J~y contractual requirements as applicable.

(ii)"" An)\.matte~w~Ch-iin·pacts the contractual terms and conditions of the contra~sti/.e finalized by C&P.

(iii) ~ finalization of the CRP, RD shall sign Part-A under the CRP Form and i;;Sci8 the CRP to the Contractor under covering letter signed by RD Director. The covering letter shall contain instructions to the Contractor including the time, date and venue for submission of the CRP Proposal i.e. his Technical and Commercial Proposals and/or his cost and schedule impact.

c) Submission of Cost and Time Impact by the Company and Contractor's CR Proposal

Cost Estimate

CHAPTER 8

(i) When the changed SOW/SOS is finalized, RD in consultation with PCD shall prepare a Cost Estimate and shall also carry on an assessment of probable time implications, and forward both to RD Director prior to the due date for submission of CRP by the Contractor. Any key assumptions made in preparation of the Cost Estimate and probable schedule impact shall be detailed within the Cost Estimate.

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(ii) The purpose and intent of the Cost Estimate and probable schedule impact is to provide a reference/basis during the evaluation and negotiation phase, if any.

Contractor'S CR Proposal

Contractor shall submit CRP directly to RD Director or his appointed authorized person or otherwise as advised by the Company on the CRP submission date, after completing all technical details including Part-B of the CRP Form.

d) Evaluation, Clarification and Negotiation of Contractor's CR Proposal

(i) On receipt of CR Proposal from Contractor, the evall.\ation shall be carried out by CRP Evaluation Team which shall consis(Of\~embers from RD (Chairman of the CRP Evaluation Team)~&R (Me~ber) ~d PCD (Member). The costs for similar items in t~ sc~db~ of R(:icesIR~tes of the existing Contract and the rates in the Cost Estimate sha{be used as the basis of the evaluation. The Ev~ation '~~am'\shcfuld c~6lete the evaluation as soon as reasonably/rJ'oSSiBI~ but ~t I~e,," than Fourty-five (45) calendar days from the SUb~iSS~ date of G,RP yroposal with all substantiations. . \ \) ",:>v

(ii) Whenever a CRP ha:ya~le impact, the"CRP Evaluation Team shall assess the Contract0r pr<JRdse-a-sGhJdule ~mpact of the changes on the critical path of tbe Cbntr~t Executi~ ~I~; and shall determine whether the contracto(prOpos'ed..§_chedliie imwact is justified. The CRP Evaluation Team shall also corisider whethe'r .!);1k Contractor has fully optimized the resource~as pr6posed,~y<the Contractor and accepted by the Company. In the<event,that ~art of\the-schedule impact is due to the Contractor's fault, th'e'\mai't:er sh~1I be processed in accordance with the Liquidated

/,Damages f0r D. ~ays' prodedure. /'\. '\/

(iii)"", Whe~ever a"CRp-n;;s a cost impact, the CRP Evaluation Team shall analyze and e,9sure that the Contractor's cost impact is based upon rates aiid pri{es for similar work as detailed in the Contract. If there are no rates or ~r.~ce7"sPecifically applicable to some items, then the evaluation of those items shall be on a basis established under the Contract, and in its absence, the Cost Estimate shall form the basis of the evaluation.

(iv) In the event that there is a need to further clarify the SOW/SOS, rates, prices and/or time effect, the CRP Evaluation Team can conduct a clarification meeting with the Contractor.

CHAPTER 8

(v) If, after evaluation of the Contractor's CR Proposal, RD in consultation with PCD and C&P, are of the opinion that the Contractor proposed cost impact is not in line with the rates and prices in the Contract, or is too high compared to the Cost Estimate, or that the Contractor's proposed schedule impact is not realistic, the CRP Evaluation Team may enter into negotiations with the Contractor. The negotiations shall be led by the relevant RD nominee.

Page 4 of 15

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(vi) If an agreement on the cost and/ or time of the Variation is reached with the Contractor, then the same shall be presented to the GTC or the CEO for approval in accordance with the Manual of Authority.

e) Variation to Contract - Approvals

Subsequent to completing the evaluation of the cost and schedule impact and the CR Proposal by the CRP Evaluation Team, RD in coordination with C&P shall prepare a submission (refer to Attachment C) to the GTC or to the CEO for approval in accordance with the Delegation of Authority. The submission shall be forwarded under the respective RD Director Signature.

Upon receipt of the approval, PCD shall proceed with the preparation of the CVF in consultation with C&P and RD.

Budget ~ Where the CRP has a cost impact, RD in consultaWt~.p ~1I~e the budget funding is available prior to issuance of Cv-f.?)n ado~ion, YCD shall ensure that the budget for the CVF is securedafld approved. V

f) Initiation and Approval of the contract\\i~ ~m> (i) Upon receipt of variatio~val, PCD shallPrepare the CVF in two (2)

originals and stamp t~e s'cime-(refer,attachrhent D for CVF form).

(ii) Upon fjnalizati6n'af~~'C;.-rPC-D S~I~P the same and then request the Contracto~to sigh,the CIJF-(o'oth/originals). After receipt of the signed CVF frorf\\the Cb~tractor,(J~f~hall obtain the required signatures on the cv~nd'~strit)~e a~) follows:

~1st- Origi~1 ~ t;c:>ntractor

Copy - RD ~~~;20rigina~6~~

o~ - Finance Department

(iii) Whenever applicable, RD in consultation with C&P shall prepare a letter to the Contractor requesting amendment to the Performance Bond and Insurance in accordance with the CVF. Upon receipt of the amended Performance Bond and Insurance, C&P shall forward the same to Finance Department for review, approval and for retention.

(iv) Notwithstanding anything to the contrary in this procedure, RD shall ensure that the Contractor shall not commence with the changed works or services covered by the Variation (except for those situations described in item 4.7 below) until the required approval is obtained as per the procedure.

4.4 Variation Resulting from Claims / Dispute Settlement

Any Variation resulting from settlement of the Contractor's claim/dispute shall be processed as per the contractor claims and dispute resolution procedure.


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I VaI'iati()n to C()ntract~Proc.~dure·

4.5 Contract Amendments

Whenever RD determines a need for change to the Contract for reasons other than change to the SOW/SOS or settlement of Contractor's claim/dispute, e.g. change to terms and conditions, extension of time with no cost implication ... etc, the procedure for Variation to Contracts as described above shall remain applicable, with the following exceptions:

(i) Contract Amendments shall be done with the agreement of the Contractor and cannot be imposed unilaterally by the Company.

(ii) Except in those situations described in 4.7), RD after obtaining C&P concurrence shall proceed with obtaining the approval in consultation with C&P from the GTC or the CEO in accordance with Delegation of Authority for issuance of any Contract Amendment.

(iii) The change shall, depending on the nature of th~a~ge, be formalized either through a standard CVF or oth~o');l.!:actu~ doc~ent as appropriate and to be advised by C&P. <.. ~ _"- V>

(iv) Amendment to Contract Form shall be prepar-ed bY~"" /.

4.6 Change Request, Variations and Ameridrnent:S:contract Register

A register for all NOVs, CRPs, CVFs ~d 'J;:me~n~to/?ontract shall be

maintained by PCD and Sha(1I include-all the\\I~j?~)tion.

4.7 Exceptional Cases \ \) ..

(i) In certain circum~nces)--lt....-m~ be considered that postponing the commencement df,\eqJir~d wo-rks/serv'ces until the full Variation approval process is,furt,Pleted~ill not<be.l..n...ttfe" best interest of the Company and/or project. SJc,~ ciraumstanres )nclude,:

CHAPTER 8

A a) externa""®thori~ approval is required and/or changes are /'" nec~s~ary to m.eet local authority requirements.

~b) procu~'rnent--6f long lead items is involved. d)\ delaY- 01) additional cost to the Company, to contractors on other

P<!'ckages or to developers will be incurred. d) The/Company will not be able to fulfill its obligations towards ,\governmental authorities or towards any other third party such as

developers, contractors, etc. e) Any other circumstance where the commencement of required

works/services can not be postponed until the full Variation approval process is completed, subject to a proper justification from RD.

In such circumstances, the GTC may be approached with a request to approve issuing a "LREDC Instruction" to the Contractor/Consultant to commence work/services immediately. The request to the GTC will include initial estimated cost and schedule impact. Following GTC approval of the submission, the LREDC Instruction will be issued to the Contractor/Consultant including instructions to commence the work/services forthwith, while the Company and Contractor/Consultant, in parallel, conduct negotiations to agree the final cost and/or schedule impact. As soon as agreement is reached with the Contractor/Consultant on the cost and or schedule impact, the GTC will be approached to obtain the Variation Order approval and the CVF will be issued

Page 6 of 15

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, ,- -. -. - -

V~riationto Contracts Procedure " '.- ;", '

accordingly. The procedures and steps laid in 4.3 above with regard to issuing a Variation to Contract process including preparing cost and schedule impact estimates, negotiations with Contractor/Consultant will be followed as applicable.

(ii) In certain circumstances it may become evident that the Company will be exposed to grave risk or will incur significant additional costs or consequential losses if immediate and urgent action is not taken. Such circumstances include,:

a) emergencies, such a threat to health, safety, environment or a possibility of damage to existing permanent or temporary work.

b) where the activities involved are critical ~chieve the approved work program or fall in the critical path of a 'particular package

/"0 \. \. A and/or where delay cannot be recovered,at al~r c'a~ b~7recmlered but at significant cost to Company. \ ~ ~ v

c) Any other urgent circumstan"2e-s--.~ere the LRED~Jnstruction is needed to be issued imm~diat~ subject'to a pwper justification

from the RD. \ \> ~ V In such circumstances, the~tive RD Dir1GtiJrean issue instructions to proceed with the work/s'rvi~Wi!nout the n";fd to strictly comply with the Variation Order process\~ut without r~ie\&g the Contractor of any of his obligations and fusp6nsibilitie~r ,e Contract. Formalization of such instruction aS'-fer tl:!e v)r~ti@f1 Ordevprocess and procedures shall follow after the ir,(struction ii-issued.. ~

4.8. Payment f:>~o~~~ried)out Under "LREDC Instruction" in .E~c'eptional Cases /

The p~\e~~YlJle-rrt1~rkS carried out under LREDC Instruction, before a formal CVF\(s issued, can be made subject to GTC approval for Interim CVF to be issued based'{>n 499/. of the PCD Estimate or Contractors proposal (which ever is less) V

4.9 Upward Variations resulting from increase of actual quantities of "Re-measurable Items"

Any upward variance resulting from increase of actual quantity of re-measure items shall be formalized through Variation to Contract (VTC) procedure as soon as practicable; before preparation of the Statement of Final account.

Until such time that quantity adjustment is formalized through the VTC procedure, Contractor shall be paid the value of re-measured work subject to cumulative value of work completed including any approved Variations does not exceed the revised Contract Price.


o

(J

VarilJtiQntQ'Contracts l)rocedure

4.10 Upward Variations resulting from "Provisional Sum Adjustments"

Any upward variance resulting from Adjustments to the Provisional Sum items in the Contract shall be formalized through variation (VTC) procedure as soon as practicable; before preparation of the Statement of Final account.

Until such time that Provisional Sum adjustment is formalized through the VTC procedure, Contractor shall be paid up to the original Provisional Sum value in the Contract subject to cumulative value of work completed including any approved Variations does not exceed the revised Contract Price.



Shall carry out the following: • Initiate the NOV, and complete the technical~tails.

• Provide SOW/SOS for NOV and iSSU~CRP to Contractor.

• Form the CRP evaluation team and leat! th~roce~f CRP evaluation.

• Prepare, endorse and signNarial:ion submisS:Ons~a.!}d~btaining the relevant

approvals. (' ~ \ (

• Provide jUstificatiZfor iS~C I)st~ction" in exceptional cases.

5.2 Co",mots t~'"~ De~"""" (C&P)

Shall carry out the\followi~: .. '1 ~ • P;:-epare CR~in coordloation with PCD, including contractual and commercial

.det~ls. " '\ \ '-.~

• R'e~ew ~elevan\submissions and endorse the same.

• Partieipate i~~eRP Evaluation.

• Obtai~mended Performance Bond and Insurances from Contractor. V


Shall carry out the following: • Register NOVs, CRPs, CVFs, Contract Amendments and review, sign the

same,

• Prepare Pricing Schedules and BoQs etc (if required) to issue with CRP.

• Evaluate the cost and time implication (extension of time) of CRP and prepare

budget application.

• Prepare Cost Estimates for NOV

• Participate in the CRP Evaluation

• Prepare the CVF forms and obtain the required signatures.

• In case of certifying payment for re-measurable items or Provisional Sums

until necessary adjustments are made through CVF, PCD shall make sure


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<-' '- ~ :.' •

that the cumulative value of certified payments does not exceed the revised

Contract price.

5.4 CRP Evaluation Team


• Evaluate Contractors' CR Proposal.

• Raise recommendation.

• Conduct all necessary negotiation with Contractor in order to finalize all

aspects of the Variation Order.


,r'" ~. )

~ ~

CJ .". ",' , . "" ,.' ",>.,~,~. ,;"-:::':;':/:,;,,, :.,. _ \; -,<:::: _'4/ :~ :"." i' ';',.,. .:::~,~-"ji:>"~, .' ,-r 1'-

V adafi'(Jii'~1i:o~@(}\'7t.J1itrts~'f,6ee(J;u:t;et)'f(. "-.' ,- ,., ,:,--,:>-,:-'.'-,,:,,:,~.- --~,l;r."'~;~;;-:,:::g;l'>~('r'-t,y·~~;> "\'~!':: ;(1'~',\~ '':-:J'')'r.~~!i{'~;?i:>-Q_

LW'::'r-:lIL...

Attachment A - Flow Chart

Group Director

Evaluation Team prepare Submission

(Based on Lusnil assessment)

\~//

No

C&P review NOV and prepare eRP

(with conditions, BoQ etc)

CONTRACTOR

I, Agreement reached?

Yes

_._._._._.-

BoQ! Pricing Schedule

Cost & Schedule Impact

Clarifications ._._._.

CHAPTER 8 Note: In the event of conflict between the flowchart and the text, the text shall prevail.

RcvicwNOV

Cost estimate Time Implication

RD Director

Is Contmcloc's CRproposal reasonable?

o

y"

Budgel Availability

peD prepares CVFor

Interim CVF

u

Page 10 of 15

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. .

I . Variation to Contracts .J,>rQc!'!dute

LLJ=:'r:=IIL

Attachment B - Notice of Variation Form

Notice of Variation (NOV)

IPro,]ecl No.:

Employer

Project Manager (PMfCM)

Authority Requirement

Le. ,cope, prospmme/schedule and estlmate ... ttc)

1 2

(Use as necessary)

pact: (Use attachments as necessary)

Project Name:

D Contractorl Vendor

D Consultant

D Others (Specify)

QAR ................ Addition to the original contract sum

D D D

IAp,proved I Rejected IApproved J Rejected IApproved I Rejected

CHAPTER 8

No

No

Page 11 of 15

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I . Variation toC1>ntracts Proc~dure

LU=:'RIL-

Attachment Ba - Chanqe Request Proposal Form

Change Request Proposal

Part A- CHANGE DETAILS ITO BE COMPLETED BY LREDC)

CONTRACT NO. NOV. NO: (----------------)

TITLE

(Description of Change. Refer Documents For/Where Change: i.e. Site Instruction, Concession Request, Faxes, Drawings, Scope of Work, and Specifications Etc.)

Requested by ................. oepartmenr\

'---/

Signature

Date: Attachment: Yes / No Date:

PART (8) - CONTRACTOR/CONSULTANT PROPOSAL (TO BE COMPLETED BY CONTRACTOR/CONSULTANT AND FORWARDED TO tREDC)

Cost Impact: Yes/ No

If Ves, then details

(Refer Item .......... Of Schedule of prices/ Unit Rates)

Signature (VENDOR)

Copies to : L

CHAPTER 8

2.

schedule Impact: Yes/ No

If Yes, then details .................. Days If a schedule impact is indicated Vendor to supply an electronic soft copy of Execution Plan indicating impact

of works on critical path and resource utilization for LUSAIL CO. review.

Submitted to Employer on: ...................... ..

3.

Page 12 of 15

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Attachment C - Memorandum to Award Variation to Contract

MEMORANDUM FROM: respective RD Director TO: GTC I CEO

REF. No.: DATE:

CONTRACT NO.

TITLE

SUBJECT: Change Request No. --------

1.0 'olrodo,,""o «' \ The subject conl[~as aw~deCl\ to Mls-:L.--- ----------------- --------- ------, for an original value of Q,\ ---).,,-----y-- ----------------- ----------, GTC MOM ----------- dated ---------Am -------~---'~rs) The du~tion 'dt the COn~--------------- months effective from ---------- with an original sc~edul~'_Obmpl~ion Date of -------------.

scopeofWo)/ 2.0

The Scope of Work of the contract consists of ------------------ ---------------- --------------

3.0 Current Status of Contract

4.0 Previous Variations and Contract Date Amendments

5.0 Justification for the proposed Change Request

6.0 Budqet


C)

., -' .., - - ,,- -. .. -, ,.

Va.riation·· toContl'aCisProeedure. :-': ,~;-,~._,:,:, ~;~~: ... " _,,<-,"'C_' ,,_._. :_' ,": .. :_ -:.' , . .'_' -':.' __ :-::- > ---: :',,: -: '. _ :' ,-"'_J ~ _,,:_._;' :,'

LUE=.r:::lIL

Budget funds are/will be available under Budget Item No. ------- on approval of Variation

7.0 Recommendation

In view of the above, we seek Committee's support and Management approval to

(a) process the CRP,

(b) hold discussions with Contractor to *(i) finalize the SOW, *(ii) Call for technical/commercial data for evaluation (via the GTC), *(iii) negotiate the price/schedule impact, and

(e) process the subsequent Variation to Contract formalization.


L-W'=:;'r.:::IlL-

Attachment 0 - Contract Variation Form

~

~ LUSAIL REAL ESTATE DEVELOPMENT COMPANY

Contract Variation Form CooI",,1 No,

VO No,

Oal.,

Project No: I Project Name:

PM/eM

Title

Item No Description o;n ~~

ITol. N.II I , VariaHon

N"'.:

Eff," on Conlra'l Price lon"na] ]

IAOjUSteO' ] 1 pr .. ,ous vanatlo",

lAO" I •• ,''''''''' INew Aqu"ed I I ],Vanation

~ ]

, ,

I~=w .. , IN.me , , I~,n .... ,

10 ... , 10•1• ,

I I INam. :

:

,Dat. : , '!1]'

INam. :

:

Date , Name

:

D_ale


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CONTRACTORCLN~~'~ DISPUTES RESOLUfON'PRO~JDURE

OIrAPT ~

~ "J I

'--../"

Rev Date

o 9 Jul2009

A1 27 Sep 2009

A2 16 Dec 2010

)

Reason

Issued as Draft

Issued for Use

Incorporation of improvements and


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1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

4.1 Initiation

4.2 Claims

4.3 Dispute

4.4 Claims Register


5.1 Requesting Department (RD) \:> 5.2 Contracts & Procurement Dep(m~&P)

Project Controls Department (PCD)~ 5.3

5.4 L09" Oop,rtmo,' ~ ~\ ~

ATTACHMENTS

Attachment A ~Ghart '\.


Contractor Cl~iIns and Dispute~Resolution Procedure

1.0 OBEJECTIVE

This procedure details the method to be followed in the settlement of Claims and Disputes submitted by Contractors.

2.0 SCOPE

This procedure applies to all personnel involved in the process for the resolution of Claims and Disputes.


4.0

The Company intents to ensure that Claims and Disputes are resolved effectively, and in a timely manner, while maintaining: A

• Contract objectives with regard to time, cost and res~~c-(ls. ~ A • The Company's financial and contractual polici~ an1J,pratecting~s/rnterests. • Sound business ethics. '" ~ v /

• Legal rules and regulations. \, V PROCESS '\:> The procedure is Flowcharted in Atta~t A v

4.1 Initiation ( ~~ The process of evaluatioQmmences_ receipt of Notice of a Claim, a Claim

" ~_/ I submission or a Dispute Nbtice from a Contracfor (herein after collectively known as

'Claim' for ease of{ef~e~ce)"" )~

4.2 Claims "" ~ a) On ~~t of a C~,_RD/in consultation with C&P and PCD shall determine

whetlle.[ th~Clai9.J,c6A1ains details as specified under Clause 4.2.b below, failing which RQ wil~ins/tlie Contractor to provide the necessary sUbstantiation.

b) Claims fr~Contractors must indicate as a minimum: v

i) The factual nature, circumstances, and chronology of the event(s) giving rise to the Claim;

ii) The reason, justification and contractual basis that the Contractor believes provides entitlement to the Claim.

iii) Detailed breakdown of the additional payment claimed and a copy of the execution plan showing the alleged Employer impact on the critical path resulting in an extension oftime.

iv) The specific provision under the Contract or at law under which the Contractor considers itself eligible for additional compensation or time.


o

Claims not accompanied by information of the above details shall be returned by RD to the Contractor for substantiation.

c) RD in consultation with C&P and PCD shall make an initial determination of the validity of the Claim upon its receipt from the Contractor and within the time frame specified in the Contract.

d) Rejected Claims

If it is determined that the Claim has no basis, then RD may reject the same in the first instance and inform the Contractor accordingly. However if the Contractor declines to withdraw the Claim and resubmits it, the Claim shall then be deemed as a Dispute. Then RD in consultation with PCD shall forward such Dispute with all relevant information and details of the Claim and the basis of its rejection to C&P for a detailed evaluation and resolutio"fl\'n accordance with

Section 4.3 below. \ ~

e) Valid Claims ~ ~ i) If RD, C&P and PCD consider a Clai3tblJe,valiithe~-(tia(!,coordinate a

detailed contractual, cost and im.pact eval~ici,~,ca;ed out jointly by

RD, PCD and C&P. \> /~ V

ii) Upon receipt of a valid 1~~eJ<!alm a~d~etailed evaluation from RD and PCD, C&P shall car oLt-a1lnal rellie\v. If it is determined that the Claim is valid under the/ter~s of the <;ont~act)o~\,ttfe law, then the Claim shall be processed by RDhf'CD~ila·e·&p. aiJ.d included in the Contract as a Variation to Contrac!J'\ accordanc~ witR~ Vari~tions to Contracts Procedure. If any element ot the Claim 'eannot\b'e-deterrhined by application of similar rates and prices cont'l!nec:f.in th~pontract, a negotiation process shall be carried out with Contract0r to ?e~an alnicable agreement.

jji) ~\determi~thaLa-~m is not valid in terms of the Contact or the law, the\findlnQ shall b~ communicated to RD with reasons why the Claim is consi~red\n6t tfbe valid. If RD does not agree with C&P finding, the matter shall be'Vd' 0 the CEO for further advice and action.

4.3 Dispute

a) C&P shall resolve all Disputes in consultation with RD and PCD. Any Claim/Dispute that has no basis under the Contract or at law generally may be rejected in the first instance. Subsequent to such determination, C&P shall prepare a rejection letter, and forward the same to Legad Department and PCD for review and subsequently RD for signature and issuance to Contractor. Any Dispute that is deemed to be valid by C&P shall be evaluated and processed by C&P in consultation with RD and PCD, in accordance with Section 4.2e (ii) above.

b) Contractor Non-Acceptance of Rejection of a Dispute/Claim


Contractor " Claims and Disputes ResobIticln Procedure

LW'::'I-IIL

5.0

i. If, after the Company rejection as per 4.3a above, the Contractor still maintains/ pursues the Dispute/Claim, C&P shall determine and advise RD on the next course of action.

ii. All discussions / negotiations (if any) with the Contractor deemed necessary shall be led by a C&P nominee. The negotiation team shall also include RD and PCD nominees.

iii. If a Dispute is resolved, C&P shall in consultation with RD and PCD, prepare a submission to the GTC or to the CEO in accordance with the Delegation of Authority and shall include details of the issues involved and the agreed terms and conditions. The respective RD Director shall endorse, sign and forward this submission to the GTC or to the CEO for approval in accordance with the Delegation of Authority. After receipt of the GTC or the CEO approval, the settlement shall generally be formalized at C&P option, either via the standard 'Variation to Contract' (VTC) form or a Settlement ~d'{~elease Agreement (SRA), to be signed as per the Delegation of Authority. Such SRA shall be formulated by C&P on case by case basis. ~ ~ ~

iv. In the event that a Dispute remains unresolved for,more~han, ninety (90) days from receipt of the original detailed CI'!im'b¥ C&P, 8{ld tfie Dlspu}e-ls unlikely to be resolved, C&P shall prepare a"brief i;:'-consultation 'with 'RD and PCD and forward the same to the GTC \or ~to th~q:o~~ccordance with Delegation of Authority for information.)f a Dispute results in a Court/Arbitration case, Legal'Departme),t s~all repr~s{nt the Company with assistance from C&P, RD/an~as appropriate.

4.4 Claims Register A ~)V PCD shall maintain a ~giste~of alVtlaims received under each Contract. The register shall includ~t~e salient d'etails~e::tlaim and the Variation Order number used in the settl~ment."\A c05 of the register will be sent to RD and C&P as and

::::~~:I~ITIE~~ :\ ~ /"-.

5.1 ReqU~tmg ... De/tment (RD)

Shall carry out~0110Wing:

• Initial review and evaluation of Claims.

• Prepare and issue initial rejection letters.

• Review, sign and issue final rejection letter in consultation with C&P.

• Assist in the evaluation of Disputes.

• Carry out a detailed evaluation of acceptable Claims jointly with C&P and PCD.


CQl1.tractorClaiIP.~ "a,llcJDJsputes Resolution }Jr9¢tl(}ttre '- - , . -' ",,'." -,~ "-,',; ,,"- - - - - - , '. .. -" , -', . -.:.

LLJ'=~IL

5.2 Contracts & Procurement Department (C&P)


• Carry out a detailed evaluation of acceptable Claims jointly with RD and

PCD.

• Prepare Rejection Letters after detailed evaluation, as necessary.

• Advice the next course of action on ClaimslDisputes that are pursued by

Contractors.

• Lead the negotiations in accordance with 4.3.b.

• Representland provide recommendation to the Company if Dispute results in

a CourtlArbitration case.


Shall carry out the following: A ' • Initial review and evaluation of claim on cost a~'Zmirela ed issues.

• Assist in the evaluation of Disputes. ~ _ '" ~ '\ • Maintain and issue periodic update of. the ~S'~iSQ

5.4 Legal Department /"./> Shall carry out the following:

• Review the initia~iQn lef~pared by C&P. • Provide ajviG(! / opiq!on as ari8 wh~~lIed upon by C&P • Representla.nd'Rro.vide recd(11;nendation to the Company if a Dispute results

in a CourtlArbitr~tion c;;;se. I

~ /


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Contractor Claims and Dispntes Re-solutionProcedure

LLJ'=:'~IL

CHAPTER 7 - CLAIMS AND DISPUTE RESOLUTION


1:lu ~~ =>-" " " 00 0 0

Receipt of Claim Notice Submission

laimha' sufficient details

No ,

) Yes _I Evaluate Claim

Return Claim with Notica for further

substantiation ,------No ( Claim Valid

'" g " 8 '\l "e-o. '0

" '" a. <>IS U

g

---------------------11 Issue Rejection of r Claim

< Claim withdrawn ';m,""w'''w~ y,,~ " -,,:- \ ~~

No \ ~ ~ V::\ ~;d

<.

Settlement, ~ Negotiations or "-

ArbitrationfJudicial "'-Proceedings "'..

" " I \ ~ In the evenA,et between~/e text, the text shall prevail,

"., "" /) CHAPTER 9 , ' '. '" ""-, /'

y"

RD coordinate detailed evaluatioo

of Cost & TIme impactwllnput

from Project Control & C&P

Prepare Variation for

processing as perChapler6

o

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~ ~~ LLJ=::'F=lIL

o LIQUIDATED D~~ FORDELAYS~ROCEDURE \ ~ v· ~~ \>::>

O~E\10

~-_/

Rev Date Reason






1.0 OBJECTIVES

2.0 SCOPE


4.0 PROCESS

4.1 Initiation

4.2 Formulation of LD

C) 4.3 Notification of Delay

4.4 Determination of LD

4.5 Recovery of LD

4.6 LD Final Assessment \> 5.0 RESPONSIBILITIES \ ("

Requesting Departm(~~ \ V Contracts & ?~me~e\~~)

Project Controls Departme~t (PCD)

Fi\~~art~~d L'9""D~

5.1

5.2

5.3

,-,\ 5.4 , '-J

5.5

ATTACHMENTS


CHAPTER 10 Page 1of7

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Liquidated Damages for Delays Procedure

1.0 OBJECTIVE

The procedure outlines the requirements for the development of rates and implementation of Liquidated Damages for Delays (LD) within the Company's Contracts.

2.0 SCOPE

3.0

4.0

This Procedure covers the basis for determining the LD rate, the amount or value of LD to be included within Contracts, and the imposition thereof.

POLICY I MANAGEMENT INTENT

To ensure that the value of LD are correctly assessed at the time of Tender / Contract preparation; are correctly assessed and imposed during Contract administration; and applicable recovery of monies is achieved from the Contractor.

PROCESS

Flow chart of this procedure included in Attachment A.

4.1 Initiation ~ "-

The process of determining the use, nee~\ ariC!~~of b~commences during preparation of the Tender DOCUme9-~.)detall\d i~)"Emderi;;g)Process procedure.

4.2 Formulation of LD (/ ~\ (V a) LD is not a penalty ~sed~~80~trac;tovfor delay, but it is a contractually

agreed pre-estimate o{,the 'Io~ses 19atJbe C9'mpany may suffer due to Contractor's delay that are to'be recol(ered,from the Contractor. Therefore, in order for the LD to remain contractualty\valid'and ieg~lIy·enforceable, the LD rates and the LD limits in a Tender shclJld refl~ct ~ genuine pre-estimate of the losses which may be susta!ped by th~Compa.Dy)in ~~e event that the Contractor fails to complete the work'by,the date(sfstipulated in the Contract. .

b) In ~er ~t"the/~~nd limits be deemed as 'genuine pre-estimate' the fOliowin~'~ctorS;halkbe considered by RD as a guideline in its determination:

• The "c0r{P~y direct and indirect overhead costs • Additional hire cost to the Company of equipment, machinery, facilities etc.

and related labor costs that may be incurred to expedite completion • Impact on and costs arising from other Contracts • Third party costs, e.g. certifying authorities • Storage costs • The Contract duration • Additional costs associated with providing the works/services by alternative

means until Contract completion

Notes: (i) Where liability for specific losses, such as consequential, indirect, is

explicitly excluded in the Contract, such losses cannot be considered in

the determination of LD rates.


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LLJS~IL


(ii) RD and PCD shall maintain in its files the record of the calculations

and assumptions made in the determination of LD.

c) The recommended range for daily LD rate is between 0.1 % to 1 % of the Contract Value. LD rate shall be determined by RD in consultation with the PCD and C&P, during the Tender stage and prior offinalizing the whole Tender Documents.

d) Where milestones are used against which LD are included in the Contract, then the applicable percentage value of the possible LD to be imposed should generally be equal to the percentage value of the milestone compared to the Contract price. For example, if a Contract milestone equates about 25% of the Contract value then the maximum recoverable LD would be 25% of the total LD value against that particular milestone.

e) Contractor's total liability under the LD should not be excessive and hence should be capped. The recommended maximum LD is ten percefli'(10%) of the Contract value (10% of each milestone Value in the event L~apPlied at,mileston~stage or 10% of each Call-Off Order/ Work Request in case of'Cal"~ff Contracts»though each tender shall be reviewed considering all factors a'PRlicable iO--that particular ~~~er. Any variation from the recommen( maxim~m~'1lIl~VpP;:oval from

4.3 Notification of Delay . \ \> ~ V When RD anticipates delay of corfi'iet~f works beyon{fthe Scheduled Completion Date, RD shall ensure isSUanCe(€NotifiCatio~Oelay'.

4.4 Determination Of~ -~ ') a) Period of Del~ ~ \ 0

Immediately,~en it beo/"~~evident that the completion of the works will be dela{e'd beyond the Scheduled Completion Date or a milestone date, RD shall notifY. th~Contrac;>o~the(jelay and instruct him to take the necessary remedial

actio~~ ""// During the period of the delay, RD in consultation with PCD and C&P shall:

v

CHAPTER 10

i) Immediately upon slippage of milestone date/ Scheduled Completion Date, notify the Contractor of such default, indicating that the relevant provisions of the Contract are being reviewed evaluated and LD may be withheld.

ii) Identify and assess all the contributory factors (If any) to the delay attributable to the Company and/or force majeure and the methods to minimize its further effects.

iii) Take the necessary remedial actions as provided by the Contract (e.g. issue default notice to the Contractor etc.)

iv) Consider whether to source and handover remaining parts of works (if practical/feasible) to another Contractor.

v) Consider whether there is a contractual, commercial, financial justification for deferment of LDs until a later stage.

Page 3 of 7

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Liquidated Damages for Delays Procedure .. . ...

LLJ'=:'~jL

b) Delay and LD Assessment

When the works are completed and the actual completion date is known, prior to communicating with the Contractor regarding the actual LD applicable, RD in consultation with C&P and PCD shall assess whether the LD is applicable, the exact number of days of delays and the LD amount which is contractually recoverable. The following steps are recommended:

i) Determine whether any of the delay was attributable solely to the Company or was due to unforeseeable events beyond both parties' control falling under the definition of force majeure.

ii) If the entire delay is determined to be solely attributable to the Company, or force majeure, LD is not contractually applicable. RD shall inform the GTC accordingly.

iii) When part of the delay is due to the Contractor's~efault, determine the exact number of days the delay can be solely attributable to Contractor's default, and calculate the contractually applicable'lD art,ount based on the LD rates set forth in the Contract. (. ~ "" V >

iv) Upon determination of the total LD applicatlle, inform t~e Contractor of the Company intention and the LD amount..t9 be rEicove?ed from his1l'utstanding monies and invite response generally within ten (to) w6rking-days.

c) Contractor Response \ \> ~ V In the event the Contract9~:?s the ~D, \ither partly or wholly, or if the Contractor appeals for LD Jaiv~s'lfll review, comment and forward Contractor's response~C&~GG'fOr revle0 and recommendation.

d) LD R .... t \ t~ ---;...) )

ecovere ermm~on\ ~

Upon determinati~f~he ~pplicable LD amount, RD in consultation with C&P and

Pc(s~deter~i~~::/ i~TO recovE?'t~~ntire LD amount ii) To reCover part of the LD amount, only in those events when the Company

w;;:s~n a position to fully and/or independently usel utilize that parts of the works~hiC;h was already completed on or before the scheduled completion date

iii) In cases of strong mitigating circumstances/business reasons, RD in consultation with C&P, Legal Department and PCD may forward the recommendation for waiver of LD to be approved by the GTC or the CEO in accordance with Delegation of Authority.

4.5 Recovery of LD

a) LD should generally be deducted at SFA. But in the event of milestones have been established to complete any part or parts of the total scope, percentage value of applicable LD calculated as stipulated in 4.2 (d) shall be withheld by deducting the same from monthly invoices.


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b) In the event there is not enough money outstanding. the LD can be recovered either during the release of the retention money or a separate debit note can be raised prior to release of retention money.

c) Encashment of the Performance Bond should generally not be used for this purpose.

4.6 LD Final Assessment

Final assessment and agreement of the amount of LD will be formalized during the finalization of SFA.

5.0 RESPONSIBILITES


Shall carry out the following: ~

• Provide inputs regarding LD rates during finalizaiG'n~ Tender,! Con0act

• Initial assessment of amount of LD in Tend~! contra2t~nX~0elay(s) attributable to Contractor or to the Company:. ~ ~ V

• Obtain GTC or the CEO approval fo~eferr~~r\t'or wail!er of;[-D

• Process any deduction of LD \ \> ~ V 5.2 Contracts & procureme~ment (~&P(/" Shall carry out the fOIlOW<9~ ~) ~ V

• Finalize L3.-elauses and'IoD rates "/

• Inputs dur~g 'initial ~sess~e'nt'oH:O • Review and'adv~~~onfractor objection to the application of LD · ~~i\. on RD"':~~~eferment or waiver of LD

5.3 Project C~Ols'Department (PCW,

Shall carry ~t~ f~'!9~: • Inputs during initial assessment of LD

• Review and assess with RD the amount of LD in Tender! Contract

• Assess in LD recovery and advise on RD Proposal for deferment of waiver of LD

• Review and assess with RD the amount of LD in relation with EOT. 5.4 Finance Department


• Withhold LD monies based on 'Notification of Delay'

• Recover in interim payments the final LD monies from Contractor as determined by the Company,

CHAPTER 10 Page 5 ofl

Liquidated Damages for Delays.Procedure

LWS~IL



• Advise on RD recommendation for deferment or waiver of LD

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LLJ'=:'~IL


C&P Department Requesting Department Others

- ---- --- --8 • Inputta LO Determine lD ~ PCO

" package amount

'" ~ -- ---- ----:£

• ~ -----•

I I

iii Issue NOD to Finance withhold c Assist a contractor lD amount 5

0 • -----x w

I /'

N Finance Release LD

monies withheld Contract Delay(s) ,

/ y" /

- --- • -- - -

I I Input to lD determination Evaluate LD amount PCD Input

- --- -- -D

-- ~

Input to the letter Letter to Contractor, LD to ~ be imposed objections

--

C&P to response and make \ \ final determination on LO y,

amount ,

J

~ N Inform Finance & I J Finance release LD monies

applicable Contractor, finalize SFA I I withheld

• y, ~

iJl

~ No

" circumstances ;g c a () ..

- --Ntr a "- Obtain C&P opinion on RD Seek GTe I CEO approval I GTe I CEO supports

proposal defermentlwavier I the recommendations

- -Finalize LD amount

N recoverable

• I Adjust LO y • amount

I [ -- ......J . I LO recovered by Finance INPUT Finalize SFA

Note: In the event of conflict between the flowchart and the text, the text shall prevail.


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I ~~ L-LJ':::'I=II L-

C) CONTRAC S

CIIAPTERvfl

~)

Rev Date Reason





Contracts Close Out Procedure

LLJ'=:'~IL

PROCEDURE CONTEST LIST

1.0 OBJECTIVE

2.0 SCOPE


4.0 PROCESS

4.1 Initiation

4.2 Review

4.3 Preparation an issue of the Certificate of Completion

4.4 Preparation and issue of the Statement of Final ACCO~ 4.5 PMol R.I"" 'f R,j,,,",o M"joe (: '" "",

4.6 Preparation and issue of the Disch/:~ertifica~) / ) V"V 4.7 Release of All Retention Moni(s (-;(.------.....

4.8 Return of Bank Guaran~~ ~ __ ---::') )

/ -4.9 Contract Close-otJ(~o~ \ '-_~

5.0 RESPONSIBILlTI~ ""':J) A ~ ,--5.1 Requesting l5l~art7ment (RD)

'\ 'v ') 5.2 Contracts &\Procurement Department (C&P)

'""', // 5.3 Project Controls'Department (PCD)


ATTACHMENTS


Attachment B - Certificate of Completion

Attachment C - Statement of Final Account

Attachment D - Discharge Certificate



1.0 OBJECTIVE

This procedure describes the method to be followed to ensure that Contracts are adequately closed out, including preparation of (i) Certificate of Completion, (ii) Statement of Final Account, (iii) Discharge Certificate in accordance with the terms and conditions stated in the Contract and (iv) Formal Contract Close-out Reports are prepared, as required.

2.0 SCOPE

3.0

4.0

This Procedure describes the activities associated with the closing of both Contractor's obligations and the Company's liabilities under the Contract by reconciliation of all technical, financial, commercial and contractual issues.

POLICY / MANAGEMENT INTENT ~

All Contracts shall be formally closed out by recording the8~ntractor''S completion of all his obligations, reconciliation and finalization of all tech<nical, com'merc~lrfueas6rement matters and issuing all relevant certificateS\A~contr~t CI6se-Out Rep6rt shall be

prepared and issued by RD. "" "" V PROCESS ~ ~ ~

Flowchart of this procedure incl~aChni\nt N\~ 4.1 Initiation A l:-;:]) V Under the terms a~d ~nditi'6ns of/the" Contract, the Contractor shall request a Certificate of G6mpletion "-(-9cl'y::Om-ttfe Company upon completion of the works/services re~ired by' the Gontractor under the Contract.

4.2 <~w "-~ ~ ) "\. "\ /,,---

4.3

a) On,\(:eceipVof ce request from the Contractor, RD shall ascertain the completeness of,the works/services.

b) Where itte~ks/services are incomplete, RD shall advise the Contractor accordingly to complete the works/services, and / or detail the specific nature of any defective or remedial work to be carried out.

c) To ensure the works/services are completed effectively, RD shall liaise with C&P, PCD and any other relevant Departments as applicable to ensure that all of the Contractor's obligations under the Contract have been successfully fullfield.

Preparation and issue of the Certificate of Completion

a) Within Ten (10) working days of (i) receipt of Notice of Completion from Contractor and / or (ii) completion of all works / services and / or (iii) expiry of Contract duration as the case may be based on nature and provisions of the


o


Contract, RD shall prepare two (2) originals of the CC (refer to Attachment B) and forward the same to C&P and PCD for review prior to issuance to the Contractor. C&P and PCD shall review and return the CC to RD with comments (if any) within five (5) working days of receipt. RD shall issue the CC within (30) calendar days from receipt of the Notification of Completion from the Contractor.

b) Notwithstanding the foregoing, the CC must not be issued where any item of works/services or Contract deliverables are not acceptable, and prevent commissioning and / or operation and / or possession and / or use of the work / facility by the Company.

c) One original of the CC shall be issued to the Contractor and the other original to PCD. Copy of the signed CC shall be forwarded to C&P and RD.

4.4 Preparation and Issue of the Statement of Final Account

Following issuance of the CC, PCD shall complete th)rSF~r~ Attachment C). The process of preparing the SFA shall include but not~'mited~he~lIt7':

• Original Contract Price ~ "'~ V • Variations \ ""-_ ~~) • Final Contract Price (Original contra~rice plus,any additions, less any

deletions, all as formalized)throubh \Y:riatiOQl»'/ Net commissions (remeasurable works / s{rvices~l]ot-utiliz~d, ett.)

1\....../ ,\ ') • Less Liquidat~l)amages for Delay (LD~ecoverable

• Less any other de'cll:Jc'tibns-dGetg;the /bent ~ , /,'-. .. - /.

• Final A. mount pay.able'-<\Final Contract Price less Net deductions / omissions, / '\, " "-..-/

less LE>~OV~ble) )

The SF~s,\all be agreed betw2en RD, PCD and C&P after which it shall be signed by RD. RE> shall~:n fo~r~s(me to the Contractor for agreement and signature (See Attachme,.\ C~A'''copy of the signed SFA shall be forwarded to the relevant Departme~'s~luding Fin~nce to effect the payment of the Final Amount payable.

a) variance,~et~n Original Contract Price and Final Contract Price

Should there be any upward or downward variance between the Final Contract Price and the Original Contract Price for all types of works/services, such variance shall be processed as a Variation in accordance with the Variation to Contract (VTC) Procedure. Downward variances resulting from Provisional Sum adjustment or under-utilization of reimbursable/re-measurable works/services, or deduction of LD shall be formalized through a SFA and shall not require a VTC.

b) Liquidated Damages and Un-utilized Re-measurable Works


C)

LLJ.=:.qIL


• The SFA shall indicate the total amount payable, which shall be the Final

Contract Price, less the total LD (if any) recoverable from Contractor, less

the amount of re-measurable works/services not utilized, less any other

deduction due to the Client.

• LD should be deducted immediately from monies due to the Contractor.

Notwithstanding anything to the contrary in this procedure, in no event shall the Final Amount Payable exceed the Final Contract Price.

4.5 Partial Release of Retention Monies

Upon issuance of the CC, partial Retention Monies can be released in accordance with the provisions of the Contract and conSidering monies already paid.

4.6 Preparation and Issue of Discharge Certificate. A a) Unless stated otherwise in the Contract, Withir:J1~irty '<3~) ~Iendar~y.s from

the date of expiry of the Guarantee Period, th'e\con'tr~ctor sh~lI/be entitled to Discharge Certificate (DC). If different Guarantee Reriod,ap'ply to d. iffElrent parts

/" ",\,,,,-of the works, then the DC shall be issued'within (30) calendaydays from the expiry of the latest Guarantee Period. \ ~~ V

b) RD shall ensure that all the w0rks~re c0mplete and at)y defective works and/or outstanding punch list itemS' have'been 'complete'd'satisfactorily before issuing

the DC. ( C'~~~ \) c) RD shall prepare~(?~0[iginal-DG: fOY review by C&P and PCD, who after

endorsement will re~n to RD erlature and issuance (see attachment D).

d) One Origi~~ed DC ~II be f~arded to the Contractor and the other ~al to PCs:\ Wit~':Y tjC&P and RD.

4.7 <Release of All Retention-Monies

The Re~ti~~onie{~---::: fully released and paid in accordance with Contract provisions and sh;;il betome payable in full upon issuance of the DC. For Contracts with no Guara~te,~P;:;riod, Retention Monies shall be fully released on acceptance of the works/services in accordance with the Contract and issuance of the CC.

4.8 Return of Bank Guarantee

On issuance of the DC, C&P in consultation with PCD shall advise Finance Department to return the Performance Bond(s) to the Contractor.

4.9 Contract Close-Out Report

Within twenty (20) working days after issuance of CC, RD shall prepare and issue Contract Close out Report.


C)




• • • • • • •


Verify completion of works/services.

Prepare punch list (if applicable)

Prepare and issue Certificate of Completion

Approve, sign and obtain Contractor signature on SFA

Ensures any defects are remedied

Prepare and issue Discharge Certificate

Prepare and issue Contract Close-out Report

5.2 Contracts and Procurement Department (C&B)~

Shall carry out the following: ~ '\ /

• Review Certificate of Completion \/~" ') • Review Statement of Final Account.. \) ~ / • Review Discharge Certificate ~) /·,v//

• On issuance of the DC, ad~S(!-.inanCJeD. e~art{ent to return the Performance Bond(s) to the Contra5to\ \ /' V

\, ,,'-----",J 5.3 Project Controls Department'(PCD) ('" '\ \ "'./

Shall carry out th~~IOWi~~) )

• Re~Certificate 6t'completion '\:\ ~~ • Prepar,\ Statem,Vof'.>inal Account

• Review Disch)rge 5eiiificate

• Keep the .;riginal,of CC and DC

• Advise on ret~ing the Performance Bond to Contractor



• Retain / Release the Performance Bond

• Effect payment of Final Amount payable (less applicable retention) upon completion

• Release partial or all Retention Monies upon signing of SFA and issuance of DC


c v

" ~ ~


LLJ~r::::IIL

CHAPTER 9 - CONTRACT CLOSE OUT


- ~ co '" Contractor "= E e requests for :J- Certificate of " co o 0 Completion (CC) 00

C " Prepare Certificate E Work

to completed? y" of Completion

l '" within 1 0 days "-

" 1 0 ~o Insln;<;l to

OJ complele Snag CO List

~ Instruct Contractor Issue CC 10

" to complete Works Contractor and

:J & clear any original to peD 0- defects and copy 10 C&P

" -0:: • , ,

I ,

/'" , "- " , / No , " , \/ Prepare , Statement of Final

/ Accoun t

N

~ " ....... -0 '" Return Retention (if any)

e 3-- Performance Release of • allowed after ..,._ y s there Gurantee

C Bonds & Bank Retention \ 7 issuance of es Period

0 Guarantees ~./ Completion 0 ,/ /... Certificate

U " \ t "e- \ , ; "- ~ \ \

~ Defects been completed?

Prepare Discharge Release balance Cerdflcale upon

y" of Retention expiry of Guranlee Period

Note: In the event of conflict between the flowchart and the text, the text shall prevail.

CHAPTER 11 Page6of9


LLJ'=:'~IL

Attachment B CERTIFICATE OF COMPLETION

CERTIFICATE OF COMPLETION

TO: (CONTRACTOR name and address)

CONTRACT NO: CONTRACT TITL=E-: -------

In accordance with Article (----) of the General Conditions of the caPt~d C)N~~CT' LUSAIL hereby confirms that the 'WORK/SERVICES under the said CONTRA'CH~s bee'n,~erfor'led',\n9,tampleted by 'CONTRACTOR/CONSULTANT in accordance with the\O~~G~'LETION DATE is

This Certificate does not constitute an acceptanCeOI;::'WORK/SERVICES not in accordance with the CONTRACT nor is it a release of CONTR1\cCTQB~/ObligatiO\ to c\ri\Ple¥ the 'WORK/SERVICES in accordance with the CONTRACT. ~ \ V

-<) ) (~~. ~/

Signature 'N. " . ------A-----::Tit~;Z ~)

: RD Director / " Date',,_---:~------ \.. ~.-j

• 0 •••• '" "".'v FORLUSAfL


)


Attachement C - Statement of Final Account

STATEMENT OF FINAL ACCOUNT To; LU5AIL REAL ESTATE DEVELOPMENT

Lusall Site Office Bldg.

P.O. Box 23175

Doha, Qata r

PROJECT NAM E:

CONTRACTOR'S N AME:

CONTRACT 10: CONTRACT AMOUNT:

COMPLETION DATE:

REVISED CO NTRACT AMOUNT:

REVISED COMPLETION DATE:

STATEMENT OF fiNAL ACCO UNT or CERTIF ICATE OF FINAL AGREEMENT

Amount of Original Contract Sum

Deductions

Variation no.OO Dated ddlmmlyr

Variation no.OO Dated ddfmm/yr

Total Deductions to Contract Value

..M!!..i1l..!zn Varia tion no .OO Dated dd/m m/yr

Variation no .OO Dated dd/m m/yr

Total Additions to Contract Value

GROSS CONTRACT VALUE

Other Deductions:

Unrecovered Advance Payment

Unutilized Amounts, Provisional Sums

liquidated Damages

Final Retention Amount

NET VALUE FINAL ACCO UNT

Deduct Net Sum/Pre-Costs Paid ( CertifICate No.O)

Net Ba lance Due to CONSULTA NT I CONTRACTOR

0.00 OAR

0.00 OAR

0.00 OAR

0.00 QAR

0.00 OAR

0.00 OAR

0.00 OAR

(

> I \

0.00 OAR

0.00 OAR 0.00 OAR 0.00 OAR 0.00 OAR

0.00 QAR

0.00 OAR

0.00 CAR

This is to cert ify that we have carefully examined the sta tement of "Net Value Fina l Account" whic h shows the to tal va lue of these works/services

(Amo un t in words) ..

We agree accordingly that this sum is accepted by us to Include all omissions, additions, variations, contract account claims, and other amendments requi ring cost adjustment properly effected under the terms and conditions of the works/services contract and is full and fi na l settlement of all sums due

to us under the te rms of the above mentioned works/services contract

(Print Name ) (Title )

Who is duly authorized to make this agrl!l!ml!nt for:

(Consu ltanl/Con tractor Com pany Name)

Dale Signed:

Company Seal

CHAPTER 11

l RED Enginee r (Tit le )

Who is duly authorized to make this agreeme nt fo r:

l usail Rea l Estate Development

Date Signed:

Company Seal

Page 8 of 9


Attachment D - Sam ole of Discharae Certificate

DISCHARGE CERTIFICATE

Contract Title:

Contract ID: Job ID.:

Contractor:

TO: (CONTRACTOR name and address)

~~~~ .. ~~ ;/ ,--./ """//

'0 ",00",,",, with Artl.~ ... ~~-:::l JOdOO", of ffiptlo",d CONTRACT,

LREOC h,reby '''~, ~ J'-"""'" "' of .................. .

FOR LREDC

Signature Name Title Date

CHAPTER 11

//) --~ /

::::::S./:::::::::::::::::: Signature Name Title Date

Page 9 of9

C)

Rev Date Reason


Ai 27 Sep 2009 Issued for Use



General Purchasing Procedure


1.0 OBJECTIVE

2.0 SCOPE

3.0 POLICY / MANAGEMENT INTENT

4.0 PROCESS

4.1

4.2

4.3

4.4

CHAPTER 12

PURCHASING METHODS

4.1.1 Petty cash ~ 4.1.2 Standard Purchase Order: A "A 4.1.3 Direct Order (Single/Sole Source): \" V /)

'~ "" V 4.1.4 Exempt Commodities ~,,/

PURCHASING PROCESS ~ "~'" ,,)

~-" V / /'~ __ '" (r

PURCHASE ORDER CANCELlATION 0RIAMENDMENT

~ \ -))V CALL OFF RELE~S~S ~--;::_/

/~ "'- \ \,// , , ' \ "" ", ') )

/" '" '--/ \ ~ ,"--,-, " ", /",> '",- "/ /

", // -'.'v'/

Page 1 of 9

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1.0 OBJECTIVE

This procedure details the method to be followed for purchasing general goods and services like Furniture, stationary, IT equipments, Office Maintenance and Cleaning Services etc.

2.0 SCOPE

3.0

4.0

4.1

This procedure applies to all personnel involved in the General Purchasing processes from the time of PR is raised by RD through the various stages up to the receipt of relevant Goods.

POLICY I MANAGEMENT INTENT 0", /"'~ " A It is the policy of the company to purchase the goods fr~m th\technical!y accJf'ltable

lowest price Vendor who meets the LREDC Terms and C8nditioQs\' //

/~ ~ \ "'/ PROCESS \~'~.' ~)'

PURCHASING METHODS .--.~ \) ~ / ') /' /

The following Purchasing metlod(ca"ri-be--~doPte{ de~~nding on the LREDC

requirements, <~ ~_ ..•• /~) ) \/)

4.1.1 Petty caso/, "', ''." (,~,j/ .( '\ \" \. ' .. ~, --_/

All purchases with"threshold villue cls defined in the DoA can be made using petty cash excep~ for folloVViQg tr~ns9diond:

/ .~ '" ./ 1.1." IT eguipments ,(PCs;,Printers, etc,) 1 'c ~ d /' ,2, '\\, asn'a vances, 1,3, Furnitu're' / 1.4. Ite;n~ whi9h"re procured through Call Off releases 1.5. Air tickSlts

4.1.2 Standard Purchase Order:

4.1.2.1 Purchases between certain thresholds as defined in the DoA will require minimum three (3) quotations to be solicited from three (3) different vendors from the vendor list. Less than 3 quotations can be accepted subject to solid justification from RD.

4,1.2.2 The request for quotation (RFQ) can be solely prepared and issued by the C&P Representative, with input from the RD, and sent directly to vendor.

4.1.2.3 Such RFQ should be equitably distributed among listed vendors. In other words, the quotation shall be solicited from a source other than the previous one,

CHAPTER 12 Page 2 019

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4.1.2.4 The request for quotation (RFQ) should include; • Written specifications • Price Schedule • Offer validity period • Terms and conditions

4.1.2.5 The quotation is to be documented by fax, e-mail if international vendor sent to a central single procurement e-mail, fax number vendor. If domestic, the quotation should be submitted in a sealed envelope. , or other methods that are approved by the C&P.

4.1.2.6 The received quotation should be date stamPJ.d" and attached to its corresponding RFQ. This will be done automatically by the system in case of non-manual operations. 6~ ~,n

4.1.2.7 If the RD is not satisfied with the received~id, it~hoUld tn/en Rr6vide a clear justification for rejecting th~quotation. "- "-,

\ "'~ '" ',/ 4.1.2.8 All POs must only be created and printed from tHe ERP system.

4.1.2.9 The PO process is managed by \~,e ~gnat~~staff only. It is the responsibility of the'desigrfated RD staff/member to ensure that the vendor fulfils th~ P..Yr2hase"agteem\mt and that the procured goods/serv~esZwocks are deJivered \~.w(jme and in good condition to the Requester. " .,,_.< ') ) '" " /" '-. __ /

4.1.2.1 0 Po,S/~~e,distrib,uted\\O~'app.ro/al' as per the LREDC's Delegation of Authority "CDoAl'matrix based on the total value of the PO. This is

"\. " \ \ automa,!icaIlY.,llan}tlled pn the ERP system.

4.1',{1 ~',,-The vendaHnu~tqUC;;e the PO or Contract Reference on all Invoices. \ "- /, , >-. /.\ . .

4.1.2.12" All qlJOtatl~ns from vendors must be valid for 90 days from the closing 'date of the Request for Quotation (RFQ).

\.'., /,7

4.1.2.13 Te~s and conditions must be printed on or attached to all POs. All POs are legally binding contracts between LREDC and respective vendors.

4.1.3 Direct Order (Single/Sole Source):

Please refer Clause 4.15 of Chapter 5- Tendering Procedures.


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I General Purchasing Procedure L...LJ:=:'r::::lIL...

4.2

4.1.4 Exempt Commodities

The following commodities should be exempted from the competitive bidding process:

o Hotel AccommodationslTravel o Memberships o SeminarslTraining o Subscriptions/Periodicals magazines, books and references o Based on the approval of the CEO, LREDC may utilize the services of

specific Professional Services Firms in the following cases only:

• If the consultant's mandate is at the national level and LREDC must be part of it; /\.

• In order to ensure continuity in the next Rhase~of an engagement that has been delivered by the same cons~ltant. /,

("-" '" / > 4.1.5 Purchases above QAR 1 million . _ ~ ~ ~ /.

For all purchases above QAR 1 miliion./al;Jes, Tendering pr~cess{hall be followed. Please refer to the Tenderind\Proced~s~~

PURCHASING PROCESS (";:?-,\"0 /,j 4.2.1 The process commenGes "upon corTiRle~ion\ of an approved Purchase

Requisition (PR)AI,,'dordingl~,jena9r(si\ arcfselected by the C&P from the

vendor da/~,e.~ '\ .(~',:/) 4.2.2 The C&P '~onveits the'!?) R i~to a Request for Quotation (RFQ) on the ERP

"" I system and is 'sent fer, approval as per the PO Delegation of Authority (DoA). /'" ,,' /

4.2.3 Opon ~btaining,a~'ruvar:/;he C&P incorporates comments and distributes the '\. '" / "-RFQ~roUgh/one/of the following authorized means to the selected vendor(s):

e-mail, f~x, p~?t'6r hand-delivery. , / ... ,,//

4.2.4 The C&P communicates the required date to receive the quotation(s) from vendor(s) in addition to providing any clarification on the RFQ. Upon receipt of the quotation(s) from the vendors(s) by the stipulated deadline, the C&P uploads them on the ERP system for viewing and assessment.

4.2.5 A team consists of members from C&P, PCD and RD shall evaluate the quotations and select the best vendor to which to award the purchase. Assessment of received quotations should not be based on price alone and it is strongly recommended to consider some of the qualitative factors such as quality, stock availability, accreditation, time for completion or delivery, warranty conditions, teChnology, maintenance requirements, organizations capability, previous relevant experience, and any other relevant factors as

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part of the assessment of the quotation. Justification for selecting a quotation other than the lowest quotation must be documented.

4.2.6 Upon evaluating the vendor(s) quotations, The ERP system will automatically reserve the revised budget based on the selected vendor quotation.

4.2.7 C&P creates a PO on the ERP system based on information in the PR, RFQ and any supporting documents. The following information is included in the PO:

4.2.8

4.2.9

• Vendor name and ID

• Date of issuance

• Delivery instructions (destination, receiver, delivery date etc.)

• • •

Description of requested items

Quantity and price

LREDC Terms and Conditions ~~ " ~,,~ "'\.// \

• PR reference number ~ ~ ~ //

• Commodity code ::/'." '\ "" ,,// • For international POs, additional informati~fl1\Jst 'includ{,; shipping,

receiving, payment terms, and war~nt0P'eriod ..•. , •• ;;-...,/ //--'" \ V /'. /

Once the PO is created, the appr~riate final al:lthorltY (as per DoA) is notified to provide final approval~on (the 'PO. ~\ final ~djustments required, shall be communicated to/th~«&RJ5LadjUst)pridr Vapproving the PO on the ERP system. '\ '" /"--~) /'" " ,,< . /', '. \ '''- ..• -/

Once the PO is '1lpproved, th'e ERP system automatically notifies the RD and Finance of ' the ictivaled )PO. C&P reviews the final PO to ensure (om'pleteness b6tore sending the PO to the vendor. The approved PO is d· t 'b\ d f II' '_ .. /

IS\I ute as 9 o~s: • G~9i~Lc6'Py J0 the Vendor • Copy to Finfu,ce

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• Copy to'the RD

• Copy to C&P

4.2.10 The C&P follows up with the PO to ensure that an Acknowledgement of Acceptance is received after issuing the PO. It is the responsibility of the RD to ensure that the vendor fulfils the purchase agreement and that the procured items/services are delivered on-time and in good condition. The RD is responsible to notify the C&P if otherwise.

4.2.11 Upon receiving Vendor Acknowledgement of Acceptance, the C&P uploads the acceptance confirmation on the ERP system.


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4.3


4.2.12 Responsibilities


Shall carry out the following responsibilities • Vendor selection • Convert PR into RFQ • Distribute RFQ to vendors with due date for quotation • Form and participate in the evaluation team • Assist with the selection of the vendor • trigger the system to generate a PO number • send PO to vendor

• "plood ,",doc o=pt'"~ oo,fi~"," ,,'" ~ "

Shall carry out the following responsibilities, "-" '" "'",// • Complete Purchase ReqUi~tiO'l, '~ '> • Involve in evaluation of ven~ors'~rQ?osals, .. '-'v'/

• Following up with y.endors to\delivw,the requjred goods ,/ ') \ / ....... ,/

( (~ ... \ ( Project Controls D~partment/ "'\ \\ )

/" \ /', /

Shall carry out th~foll~::Vin~-;:~;;~nsi~iliti~s • /S~ure ti;e.budbet1nQa~e.of non availability of budget • "I,(lvoive, in e'v~luation of vendors' proposals

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PURCHASE'ORDER CAN~ELLATION OR AMENDMENT \.,,-,. "'''" ///'" ~--.. ,,----

The C&P i~"the o'ril{party'authorized to cancel or amend Purchase Orders (PO) with vendors. '." /./

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POs cannot be closed until the final invoice has been paid against the corresponding PO.

POs can only be cancelled after issuance and before the corresponding purchase is received.

Note: Due to business reasons (which does not include delays from the vendor), some terms in the PO or even the whole PO could be cancelled. Business reasons to cancel or amend PO include (but are not limited to):

o Goods are no longer required by Requesting Department (RD) o A more suitable vendor is identified with significant benefits to LREDC.


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o Similar PRlPOs issued for other requestors. This requires a very strong justification and associated cost-benefit analysis, which shall be approved by the C&P Director.

4.3.1 The process commences as follows:

4.3.2

4.3.3

4.3.4

4.3.5

RD contacts the C&P to cancel the PO. The cancellation must be approved by the RD director prior to submittal. In the event that the process is RD initiated, the C&P assesses and provides concurrence to the request.

The above mentioned scenarios is only valid in case goods/service/works were not already received by LREDC.

If the goods have not been delivered, the C&P contacts the vendor and inquires about the reasons for delay and the remedibl action that the vendor

will take to overcome the delay. (\~ ""'V//) The C&P checks the terms and conditions (prin~d at the back ot·the PO or

attached to it) and discusses acti.6n t;;:be ta~n. ~t~ ih{ vendor in

coordination with the RD. \ ''0,'-.. "-..~V

For cancellation of POs, .tll'~-C&'p inf~m~hY'awaY' the vendor that the goods/services/works arl no(req~ired1' a~d tha:( a formal PO cancellation will

I ',,/ ',\_) be issued and transmitted to the vendo~. 'fhe reason for contacting vendor prior to PO cance1latlan i~to-av61di.lrocess1~g delays in which time LREDC may receivEj/the ~~ant~4 go6d~S;;rvi<!e/works. All communication with the /' " ,:-..../ vendor sHould'be docume~tea·ln/ the "Notes" of the POs Amendmentl Canceliatioi1'\Re~est i~'eason for cancellation, date of call, vendor contact

, " I ) ,~/am~ etc.) forf~:ureTeference . ..... " \. -'-.,- -----/ The C&R preRares the PO AmendmentiCanceliation request .. A printout of , , y ,

the approved'PO j\mendmentiCanceliation Request is sent by the C&P to the

vendo~~ sig/IJ/The C&P updates the respective PO on the ERP system upon receipt oNne vendor-signed PO AmendmentiCanceliation Request from the vendor.

4.3.6 The C&P informs the RD of the PO amendments/cancellation and discusses alternatives (where needed).

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General Purchasing Procedure LW:=:'~IL

4.3.7 Responsibilities

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Contracts & Procurement Department shall carry out the following responsibilities

• Contact vendors with PO inquiries • Cancel PO with vendor • Inform concerned departments about PO cancellation and discuss

alternatives • Prepare PO amendments • Coordinate with Vendors for PO amendments

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()

General Purcbasing Procedure. LWS~IL

4.4 CALL OFF RELEASES

The procedure outlines the method of handling agreements which allow orders to be placed without issuance of Purchase Orders. RD shall identify works, services or purchases that are required repetitively, make am estimate for such requirements over a period of a year, or such longer period as may be determined by LREDC Management, and then issue a tender for the supply or provision of estimated quantities of such services, works or purchases on call-off basis (as and when required by RD). These apply to:

a. Repetitive goods or services from the same Supplier over a period of one year.

b. Order standard materials or supplies that require numerou(shiPments.

c. LREDC obtains more competitive prices through VOI~rii'~c~m~~~ 4.4.1 Call-off contract renewals must be apwoved a~Rer D~pric7·difference

must be verified and any exceptions must)Ojhrou'gQ. the"Rroper channel for approvals. The contract can be rene~edmor~than clnce depending on the vendor's performance and contract terr~s ahd'c,ondiUbns\ .. /

Note: A Call-Off ReleaSe/(~~':l...~1r ~0~ois:d on a specifi~ CallOff Agreement (CA) and occ,urs'on an"ad\hoc\.basls, In accordance With the CA. The CR is checl<ed fbr compliance a~aiJ:ls(jts respective CA. \ S "._ .. ;--) J '

4.4.2 Based on the PurcQase ~eqtJisition (PR) approved by the Requester, the C&P gener~te'S,a CR'on the system:The C&P prints and signs the CR. This acts as an 'authO'rized ~ignatbry on behalf of LREDC. Where the original CA states othe~i~e, th'e.reLe'vanY designated authority will sign the release. // '" ". .'/

c" '" "-. ./ 4.4.3 T.,he C&P sends the .. CR-to the vendor and updates the system accordingly , , /.

up'on acceptance 'of the release by the vendor. '. '\/ ;-" . / ", / 4.4.4 Responsieilifies

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Contracts & Procurement Department shall carry out the following responsibilities

• Generate CR on system • Print and sign CR • Send CR to vendor and update system once accepted by vendor

Requesting Department shall carry out the following responsibilities

• To prepare and complete PR • Coordinate with C&P to follow up with Vendors and to ensure delivery

on time and goods are matching the required specification

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