1

Standard Bidding DocumentSmaller Works Contract (SBDSC)

Suitable for unit rate/lump sum Less than us$ 10 million

Simple format Can be adapted easily for NCB and

lump sum

2

Instructions to bidders Works description and completion time

Eligibility and capability qualifications

Procedure for clarifications

Bid preparation - format, copies

Bid submission procedures

Language

Pricing and currencies

Price adjustment provisions (if any)

3

Instructions to bidders (cont.)

Modification and withdrawal

Bid securities, sureties, etc.

Closing date

Opening time, date, place

Corrections

Bid evaluation criteria and procedures

Domestic preferences

Bid validity

Procedures for contract award

4

Civil works - bill of quantities Borrower’s currency, with portions

payable in foreign currency If so, protect foreign currency

component

Civil works - lump sum contracts Sum of amounts in local currency

and foreign currencies

Contract expressed in the borrower’s currency but

protect foreign currency components

Currency & Payment provisions

5

SBDSCConditions of contract

Organization in five chapters

General

Time control

Quality control

Cost control

Finishing the contract

6

SBDSCConditions of contract (cont.)

7

Contract can be entered with foreign contractor (currencies)

Normally provides for price adjustment

Bill of quantity contract or lump sum

Sharing of risks

Provides for a project manager to supervise works and administer the contract

SBDSCConditions of contract (cont.)

8

Some specific features of the contract conditions

Adjudicator Reviews project

manager’s decisions contested by contractor

Appointed at time of contract signing

Adjudicator’s decision final unless referred to arbitration within

28 days by either party Time control

Acceleration/extension Liquidated damages with

ceiling

SBDSCConditions of contract (cont.)

9

Compensation events

Not reflected in the original pricing of the contract, e.g. unforeseen ground conditions or constraints from utility companies

Entitle contractor to additional payments

Adjustment decided by project manager

If disputed, adjudicator acts

If parties agree, amount paid

If not, can be referred to arbitration

SBDSCConditions of contract (cont.)

10

Termination for “fundamental” breach of contract

On employer’s side, essentially delayed payment

On contractor’s side, major delays and other similar defaults

Final payment rapidly settled

SBDSCConditions of contract (cont.)