Tendering Procedure for Mining Equipment: Principles, Ethics, and Obligations

This article discusses the tendering procedure for mining equipment, including the principles and ethics involved. It covers the obligations of both the principal and the tenderers, as well as the steps involved in submitting a proposal, evaluating tenders, and negotiating contracts. The article also includes information on the financial justification and financial arrangements involved in the tendering process.

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1. Definition.
Principal- The Talia Construction Company request all the locals who are capable of offering the
construction materials which shall be needed in the construction.
Tenderer- Any person who has the capability of providing the services needed by the ministry.
1.2. Ethics
This particular tender is based on the following principles;
a) The tendering work shall only be taken by those tenderers who are capable of carrying
out that particular work.
b) This particular tender on mining equipment shall be done in a free and honest manner.
c) The conditions for the tender shall be similar for all the tenderers.
1.3. Tendering Procedure covered
The procedures for tendering is discussed below,
1.3.1. OBLIGATION OF THE PRINCIPAL
General- The contractor will carry out his duties in accordance with the SC
Prohibition of conflicting activities- The contractor shall not engage in activities conflicting to
the work assigned to them.
Confidentiality-Both the parties shall not disclose any credentials information in the term of the
contract and after the expiry of the contract for 2 years.
1.3.1.1. Pre-tender
1.1 The tenders are invited to hand over their Financial and Technical Proposal for
transportation services needed. The submission of a technical report may be done in case the
client has intentions to apply standard conditions of engagement and scales of fees for
professional services.
1.2 The price to be charged for tender document shall not exceed 5000/=

1.3. The review of the tender document by the tenderer shall not be allowed before making the
purchase of the certified document from the office1.4. Please note that the cost involves in
preparation of the proposal and negotiating the contract is not recognized as a direct cost of
the assignment
2.1 The request from any tenderers regarding RFP documents shall take place 7 days before the
proposed date of submission. The clarification request shall be sent in the writing paper
mail, facsimile, electronic mail, and telex.
1.3.1.2. Tender documents
3.1 The English language shall be used in writing the proposal of the tenderers.
3.2. Examination of the documents constituting this RFP in detail during the preparation of the
Technical Proposal (Rees, 2012, p. 45).
3.3 During preparation of the technical proposal, the tenderers must give attention to the
following;
i. If the firm considers that it does not have all the expertise for the assignment
ii. Alternative professional staff shall not be proposed and only one Curriculum Vitae may
be submitted for each position (Moelmann, 2009, p. 178)
1.3.1.3. Selecting tenderers
The principal shall apply pre-qualification criteria complying with the applicable code of practice
in order to determine who shall be invited to tender.
1.3.1.4. Call for tenderers
The Talia Construction Company invites any eligible tenderer to provide construction
materials which shall be used in the construction of public schools and hospitals in the whole
country. The prices set should be net inclusive of all taxes and shall remain valid for a period of
120 days from the closing date of the proposal. The filled tender documents MUST be enclosed
in plain sealed envelopes marked with the tender number and delivered to the location
provided below.

The Operation Manager,
The Talia Building Company.
The Bomas of Australia, Room 231B
The opening of Tenders shall take place instantly and in the presence of the representatives
representing the tenderers. The selection of the tenderers shall be based on Quality Cost Based
Selection in accordance with the policies laid down in the Public Procurement and Asset
Disposal Act (Collins, 2008, p. 142).
1.3.1.5. Tendering
The principal shall have obligation to arrange the project funding before arranging the
tendering process.
1.3.1.6. Tender Inquiries
3.5. The Technical Proposal shall provide the following information using the attached standard
form
i. A brief description of the firm organization and an outline of the recent experience of
assignment of a similar nature.
ii. A description of the methodology and work plan for performing the assignment.
iii. The list of a proposed staff team
iv. CVs recently signed by the proposed professional staff and authorized representatives
submitting the proposal.
v. Estimates of the total staff inputs
3.6 The Technical Proposal shall not include any financial information
3.7. During the preparation of the technical proposal, the tenderers shall express the prices of
their services in figures, commissions, and gratuities to be paid if there is any. The proposal
must remain valid for 60 days after the submission date (Brook, 2016, p. 429).
1.3.1.7. Amendment of the document.

The corrections on the document shall be allowed only 7 days after the collection of the tender
document by the tenderers. The tenderers are requested to review the document keenly
before the mentioned days ends.
1.3.1.8. Receipts and submission of tenders
3.8 The number of copies to be submitted are indicated above.
3.9 The original and all copies of Technical Proposal shall be placed in a sealed envelope labeled
TECHNICAL PROPOSAL (Polishuk, 2009, p. 321)
1.3.1.9. Closing of tenders
4.0 The submission of the concluded financial and technical proposal shall be done to the
address given above and LATE submission of a proposal shall not be acknowledged. The
tender shall be closed on 2nd November 2018.
1.3.1.10. Evaluation of the tenders
4.1 None of the evaluators shall have access to the financial proposal until the conclusion of
technical evaluation (Uher, 2009, p. 96).
4.2 The criteria mentioned below shall be used in the proposal evaluation by the committee
appointed.
POINTS
The experience of the tenderer relating to this particular task 20
Competence of the work plan proposed and style in replying to the terms
of reference.
30
Proficiency and qualifications of the key staff for the assignment 20
Sustainability to the transfer of Technology program 30
Total Points 100
4.3 The opening of financial proposal financial proposal shall be done in the presence of all the
representatives in place of the tenderers. The prices and the name of every tenderer will be
announced loudly when the financial proposal is opened (Moelmann, 2009, p. 197).

4.4 The selected tenderer shall be notified and those whose proposal shall not meet the
credentials then the proposal shall be returned to them. Their financial process will also be
returned to them immediately after completion of the selection process thereafter, the
remaining tenderers will be invited to attend the opening of the financial proposals.
1.3.1.11. Negotiations and selection
4.5 The negotiation will entail discussing the technical proposal, work plan or proposed
methodology and any suggestions.
4.6 The negotiation will also include the contract draft form.
4.7 For the purpose of the negotiation, a team will be appointed by the procuring entity.
4.8 Award of the contract
4.9 The awarding of the contract will be done based on the negotiation. The tenderer who won
the contract will be shortlisted while those who will not qualify, their financial proposal will be
returned to them (Mann, 2009, p. 712).
5.0 The tenderer selected is expected to commence the assignment on the date and location
specified in the document
5.1 The parties involved in the contract shall have it signed within 30 days from the date of
notification of the contract award (Kiiver, 2014, p. 19).
1.3.2. OBLIGATIONS OF THE TENDERERS
1.3.2.1. Genuine belief
5.2 The client shall use his best effort to make sure he renders assistance to the contractor in
case he is needed (Duyshart, 2013, p. 567).
5.3 All the services and facilities shall be made available to the contractor (Brook, 2016, p. 120).
1.3.2.2. Return of the documents

All the proposals shall be filled keenly and after completion, they shall be dropped in the
location stated above in a sealed brown envelope.
1.3.2.3. Evaluation of tender document
5.4 The finance committee will assist in determining whether the financial proposals are
complete.
5.5 The formula for determining the financial score will be Sf= 100XFM/f whereof is the financial
score; F is the proposal price (Jacky, 2009, p. 124).
5.6 The evaluation of the tender will be done within 21 days commencing from the date of
opening the tender.
5.7 The variations of the contract price shall not be allowed for the contracts not exceeding 12
months or one year (Uher, 2009, p. 347).
5.8 The processing of price variations will be done by procuring entity within 30 days.
1.3.2.4. Formulation of tender and estimates
Not tender shall be allowed to participate in unlawful activities not highlighted in the contract
such as failing to pay tender fees or bribing the company to be awarded the tender. All the
relevant statutory and other legal requirements shall be observed and the tenderers shall not
collide with other tenderers, provide or accept the secret commission, present inflated
tenderers and influence of contract decision by improper means.
The following estimates are made concerning the contract;
1.3.2.4.1. Project labor
The assignment is estimated to involve 10 workers who are energetic and ready to work under
minimum supervision.
1.3.2.4.2. Project plant
The assignment needs vehicles around 4 vehicles which shall be used in transporting the
construction materials to various places they are required.

1.3.2.4.3. Project material
This particular assignment requires various building materials such as cement, bricks, iron
sheets to take place.
1.3.2.4.4. Project subcontractors
The project only requires only 1 subcontractor who is capable of supplying construction
materials needed for the construction to take place.
2. FINANCIAL JUSTIFICATION AND FINANCIAL ARRANGEMENT
2.1. Source of funds
The tenderer shall submit their bank statement to ensure that they have enough money
to start delivering the services to where they are required since the organization shall
not be liable to underperformed work due to lack of finance.
FINANCIAL PROPOSAL SUBMISSION FORM
…………………………………...(DATE)
To……………………………………………………… (Client name and address)
………………………………………………………….
Ladies/ Gentlemen
As the countersigners due agree to provide the construction materials for the firm in
accordance with your Request for Proposal dated……………………. Our attached Financial
Proposal is for the sum of ………………………………………………………………………………… (amount
to be included in words and figures) inclusive of taxes.
We remain
Yours sincerely
………………………………. (Authorized signature)

…………………………………… (Name and title of signatory)
………………………………… (Firms name)
…………………………………………. (address)
2.2. Summary of cost
Subtotal cost…………………………………………...………… (Amount and currency to be stated)
The tax levied……………………………………………………………. (Amount and currency to be
stated)
Total amount needed…………………………………………. (Amount and currency to be stated)
CONTRACT FOR CONTRACTION MATERIALS
Between
…………………………………………………………………………………
(The client name)
And
……………………………………………………………………………………
(Name of the tenderer)
Dated……………………………………………………………………
FORM OF CONTRACT
The agreement made on …………………………………. (day/month and year)
between……………………………. (the client name) whose registered office is situated at
……………………………… (a place where the office is located).

Whereas
a) The client has requested for the provision of construction materials needed for building.
b) The client has demonstrated professional skills that are capable to offer the services
needed.
Therefore, the parties agree as follows
1) The following attached documents shall form an integral part of this contract;
a) The general condition of the contract
b) The specific condition of the contract
2) The mutual rights and obligations of the Client and tenderer shall be set forth in the
contract.
a) The tenderer shall carry out the services in accordance with the provision of the
contract.
b) The payment shall be made to the contractor in accordance with the provision of the
contract.
In WITNESS WHEREOF, the parties have made this contract in their respective names as
follows;
For and behalf of………………………………………………………………. (client name)
(full name of client representative) ………………………………………………….
(title)……………………………………………………………………………………….
Signature…………………………………………………………………………….
Date…………………………………………………………………………………………….
For and behalf of……………………………………………………………. (contractors name)
(Full name of contractor’s representative) ………………………………………….
(title)…………………………………………………………………………………………………
Signature……………………………………………………………………………………………
Date………………………………………………………………………………………………….
3. Contractual terms

3.1. Laws Governing the contract- This contract is the meaning and interpretation and the
relationship between the parties and shall be governed by the Laws of Australia.
3.2. Language-The execution of the contract has been done in the English language which shall
be the binding language for all matters relating to the meaning and interpretation of the
contract.
3.3. Services-All the services needed shall be performed at the location specified at the
beginning of the document (Kelvin, 2008, p. 56).
3.4. Certified Representatives- Any execution of action shall be done the officials specified in
the document.
3.5. Taxes and Duties- All the contractors and subcontractors shall pay their fees, taxes, and
duties under the law of Australia (Greg, 2008, p. 21)
3.6. Commencing of services- the contractor will start carrying out services 30 days after the
contract becomes effective.
3.7. Expiration of the contract- The termination of the contract shall take place at the end of
time period, after the effective date as specified in SC.
3.8. No Breach- The failure of a party to fulfill any of its duties under the contract shall be
considered to be a breach.
3.9. Payment-During the period of his inability to perform the services, the contractor shall be
entitled to continue to be paid (Polishuk, 2009, p. 279).
3.10. Lamp-Sum Remuneration- The total remuneration shall not exceed the contract price
3.11. Delayed Payment interest-Payment shall be made within 30 days of receipt of the invoice
and relevant documents and in case of delays then the contractor shall be paid simple interest
for each day of delay at a rate of three percentage points (Ayeni, 2011, p. 32)
3.12. The price of the contract- The price payable to local or foreign currency is set forth in the
SC.

3.13. Payment terms and conditions-The payment will be made to the contractor's account and
the remaining payment will be made after attaining all the conditions listed in SC.
3.14. Contract termination-The client shall terminate this contract by not less than 30 days’
written notice of termination to the contractor (Downings, 2011, p. 78).
3.15. Dispute Settlement-In case of any arising dispute which cannot be settled amicably
within thirty days after receipt of one party of the other party request then for such amicable
settlement maybe by either party or to the arbitration and final decision of a person to agree
between the parties (Ross, 2014, p. 34).
Cordial Settlement- The parties shall use their best effort to settle the arising disputes amicably
or in connection with contractor its interpretation
4. Quality Assurance and Control requirements
4.1. Involvement of people- People involvement in the ongoing events shall make people
understand their role and contribution to the organization, creativity, and innovation in
furthering the objectives of the organization.
4.2. Customer focus- Application of the customer focus principle shall enhance systematic
managing of the customer relationship, measuring customer satisfaction and acting on them
and researching and understanding the experiences and needs of the customers.
4.3. Continuous improvement-The performance of the organization generally shall be a
permanent objective since it will result in the acknowledgment of improvements and provision
of training to the people (Greg, 2008, p. 34).
4.4. Process Approach- The principal shall require efficient managing activities and the related
resources as a process to enable the firm realize the necessary activities needed in order to
achieve better results, measuring the capabilities of the key activities and evaluation of risks.

4.5. Mutual benefit- The firm and the tenderer shall enhance their relationship and this will
lead to identification and selection of suppliers, clear and open communication and sharing of
information and future plans.
5. SAFETY REQUIREMENTS
5.1. Safety management review- Tenderers shall ensure that they understand the safety
measures involved in taking large projects.
5.2. Safety implementation- The tenderer shall abide by all the safety procedures and the
process of the tendering company
5.3. OHS policy- The principal shall allocate the budget for OHS professional, ratio safety officers
to workers and appointment of OHS professional.
.
References
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Jacky, T. (2009). Code of Practice for the Selection of Subcontractors. Sanoma.
Kelvin, C. (2008). Tendering for Civil Engineering Contracts. HarperCollins.
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