Supervise by:

Assist. Prof. Dr.

Mohammed Neama
Prepared by:
bdullah Nassir Jawad
Ali Fadhlallah Hussein
Preparing Bids

• Cost of Tender Documents

Bidders bear the cost of preparation and submission.

• Language of Bid
I. Documents must be in the language specified in the bid data sheet.
II. Translations are accepted if accompanied by accurate texts.
 Bid Contents

• Required Documents
i. Bid letter and schedule of quantities.
ii. Bid guarantee as per Article 19.
iii. Written authorization for bid signing.
iv. Any additional documents specified in the data sheet.
Alternative Bids
• Acceptance
i. Not accepted unless stated in the bid data sheet.
ii. Must be supported by detailed technical and financial
information.
Prices and Discounts
• Prices
i. All items in the schedule of quantities must be filled.
ii. Prices include all applicable taxes and fees.
• Discounts
i. Unconditional discounts can be offered.
Bid Guarantee
• Specifications
i. Unconditional guarantee from an accredited bank.
ii. Returned upon contract signing.

Submitting Bids
• Procedures
i. Original and additional copies in separate envelopes.
ii. Mark envelopes as 'Original Copy' or 'Additional Copy'.
iii. Submit bids by the specified deadline.
Deadline for Submission
i. Bids must be submitted to the employer by the specified deadline.
ii. Late bids will not be accepted and will be returned unopened.
iii. Online submission is allowed if stated in the bid data sheet.

Modifications and Withdrawals

i. Bidders may modify, replace, or withdraw bids before the
deadline.
ii. Modifications must be submitted with proper authorization.
iii. No changes allowed after the deadline.
Opening Bids
• Procedures
i. Bids opened publicly in the presence of representatives.
ii. Names, prices, and discounts are recorded.

Evaluation and Comparison

i. Confidential process to analyze and compare bids.
ii. Deviations, reservations, or omissions affect responsiveness.
iii. Arithmetic errors are corrected per tender rules.
Award Process
• The contract is awarded to the bidder with the most responsive bid.
• Notification of award includes the contract amount and conditions.
• Unsuccessful bidders are notified with reasons for non-selection.

Signing the Contract

• Winning bidder must sign the contract within 28 days of notification.
• Performance guarantee is required per contract terms.
• Failure to comply leads to forfeiture and award to the next eligible
bidder.
Article One: General Provisions

`
 1-1 Definitions
• Key terms defined in the contract:
• Contract: Includes the agreement, Letter of Award, general and
special conditions, drawings, schedules, bid letter, and any related
documents.  Tests upon completion
 Parties:  Accepted contract price
 Employer  advance payments
 Contractor  monetary deductions
 Engineer
 Dates and Milestones
 Start date
 completion period
 maintenance period.
 1-2 Interpretation
• A singular word can mean more than one, and male terms can also mean
female.
• The provisions containing the word “agrees”, “agreed to” or “agreement”
requires the agreement to be in writing (In writing” or “written’ means
written in hand, typed, printed or computer ).

1-3 Communications

• All communications must be in writing.

• Notices are to be delivered to addresses specified in the contract.
• Address changes must be promptly notified.
1-4 Law and Language
• Governing Law: Iraqi Law.
• Language: As specified in the contract; in case of multiple languages,
the primary one shall apply.
1-5 Priority of Documents
• Documents complement each other, but the order of priority resolves
conflicts (per the priority listed below).
• Document Priority:
• Contract Agreement.
• Special Conditions (A and B).
• General Conditions.
• Letter of Award.
• Drawings.
• Schedules.
• Specifications.
• Bid Letter.
1-6 Contract Agreement
• Parties must sign the contract agreement within 28 days of receiving the
Letter of Award.
• The contractor bears the costs of stamps and related fees.
1-7 Assignment
• Neither party can assign the contract or its benefits without prior consent
from the other party.
1-8 Document Preservation
• Specifications and drawings are kept under the employer’s custody.
• The contractor is provided two copies but bears the cost of additional
copies.
1-9 Delayed Issuance of Drawings or Instructions
• If the engineer delays issuing instructions or drawings, the contractor
may claim compensation or an extension.
1-10 Use of Contractor’s Documents
• The contractor retains intellectual property rights but allows the
employer to use documents for project-related purposes.
1-11 Use of Employer’s Documents
• The employer retains intellectual property rights over specifications and
drawings.
 1-12 Confidential Information
• Both parties must handle confidential information responsibly and
limit disclosure to project-related purposes.

1-13 Compliance with Laws

• Both parties must comply with applicable Iraqi laws and obtain
necessary permits.

1-14 Joint Responsibilities

• If the contractor creates a joint venture, all members share
responsibility to the employer.
1-15 Inspection and Audit
• The employer has the right to inspect the site and contractor records
to ensure compliance with contract terms.
Article Two: Employer
2-1 Right to Access the Site
• The employer grants the contractor access to the site as specified in
the contract data.
• Access rights are not exclusive to the contractor.

Delays caused by the employer can entitle the contractor to:

- Extensions of execution periods.
- Compensation for costs, including profit margins.

Delays Caused by the contractor negate such entitlements.

2-2 Declarations, Licenses, or Approvals
• The employer assists the contractor in obtaining:
• Copies of laws relevant to the contract.

• Necessary permits and approvals for:

- Legal compliance.
- Execution requirements, including customs clearance.
- Equipment export from the site.
 2-3 Employer’s Personnel
• The Employer is responsible for its personnel and the employees of
other contractors working onsite to Cooperating with the contractor as
per contractual terms.

2-4 Employer’s Financial Arrangements

• The employer must prove financial readiness 28 days before the
commencement date to meet payment obligations.
• Any changes to financial arrangements must be communicated to the
contractor.
2-5 Employer’s Requirements

• The employer, or the engineer, must notify the contractor of:

- Payment claims or maintenance period extensions.

- Notices must be issued within 28 days of knowledge of the issue

Article Three: Engineer
 3-1 Duties and Powers
• The employer appoints the engineer to perform duties per the contract.
• The engineer:

- Cannot amend contract provisions.

- Acts on behalf of the employer.
- Must gain the employer’s consent for actions such as extending timelines or
changing costs.
3-2 Authorization by the Engineer
• The engineer may delegate duties to assistants, such as resident
engineers or inspectors.
• Delegations:

- Must be in writing and notified to all parties.

- Do not include powers for financial estimates unless approved.
3-3 Engineer’s Instructions
• The engineer may issue additional or amended instructions for work
execution.
• Instructions:
- Should be in writing whenever possible.
- Verbal instructions must be confirmed in writing by the contractor and
considered valid unless disputed by the engineer.
 3-4 Replacement of the Engineer

• Replacements must be notified to the contractor at least 21 days in

advance.
• The contractor can object to the replacement with valid reasons, and the
employer must review the objection.
 3-5 Estimations
• The engineer:
- Consults both parties to reach fair agreements.
- Provides detailed notifications of agreements or estimates within 28 days
unless specified otherwise.
- Disputes over estimates follow the provisions of Article 20 on claims and
arbitration.
 Article Eight: Commencement,
Completion Delay and Work Suspension
 8-1 Commencement of Work
• Conditions for Start:
- Contract signed and approved by authorities.
- Employer provides financial arrangements.
- Contractor receives site info, approvals, and advance payment.

• Work starts promptly after conditions are met.

• Contractor may terminate if no commencement notice within 180 days.
8-2 Period of Completion
- Complete all work, including tests and milestones.

8-3 Work Methodology

• Detailed Schedule Submission:
- Includes timelines, milestones, and resource estimates.
- Must address progress changes or obligations.
• Engineer’s Role:
- Approves or requests amendments.
8-4 Extension of Period of Completion
• Grounds for Extension:
- Changes in scope, adverse climate, unforeseen delays (e.g., epidemics).
- Employer's actions causing delays.
• Procedure:
- Contractor notifies Engineer.
- Engineer evaluates and adjusts timelines.

8-5 Delay Due to Authorities

• Valid Grounds:
- Contractor complies with legal procedures.
- Delay is unforeseeable.
8-6 Work Progress Monitoring
• Slow Progress:

- Engineer instructs revised work plans at Contractor's cost.

- Employer reimburses additional costs for delays beyond Contractor's
control.
8-7 Delay Penalties
• Penalties:

- Daily penalty for delay beyond completion period.

- Maximum penalty capped as per contract terms.
8-8 Work Suspension
• Engineer’s Instructions:
- Contractor to safeguard works during suspension.
- Suspension reasons determine applicable provisions.

8-9 Work Suspension Penalties

• Entitlements:
- Extensions or cost recovery for Engineer-instructed suspensions.
8-10 Payment for Materials and Machinery
• Compensation:
- Contractor compensated for unused materials/machinery after 28 days of
suspension.
8-11 Prolonged Suspension

- Suspension beyond 84 days allows Contractor to request resumption

or terminate contract if no response within 28 days.

8-12 Resumption of Work

- Inspection by Contractor and Engineer to assess and rectify damages
before resuming work.
Article Nine: Tests upon Completion
9-1 Contractor’s Obligations
• Conducting Tests:

- 21 days' notice to Engineer before test date.

- Tests conducted within 14 days unless agreed otherwise.

9-2 Delayed Tests

• Contractor Delays:

- Engineer may issue 21-day notice for rescheduling.

- Employer may conduct tests at Contractor’s risk if delays persist.
9-3 Retests
• Failure in Initial Tests:
- Retesting allowed under same conditions as per 5-7.

9-4 Failure to Pass Tests upon Completion

• Engineer’s Actions:
- Option 1: Repeat tests.
- Option 2: Refuse works or parts and apply penalties (11-4-c).
- Option 3: Issue Taking Over Certificate with a reduction in Contract Price.