e-PW2A Works Open Tender Preparation Guideline

01When to Use e-PW2A

Use e-PW2A when the Procuring Entity will select a contractor for works through the Open Tendering Method on e-GP, with the contract going to the lowest evaluated responsive tender.

Nature

Works (and physical services)

Method

Open Tendering (OTM)

Value limit

Up to Tk. 5 crore

Contract type

Admeasurement (unit rates)

Competition

National

Award basis

Lowest evaluated responsive

• The BoQ quantities are estimates; the contractor is paid the actual quantities ordered and executed, measured and verified by the Project Manager, at the quoted rates.
• For low-value works up to Tk. 15 lakh, the RFQ documents e-PW1(a) (unit rate) and e-PW1(b) (lump sum) are simpler.

02How the Document Works

e-PW2A has ten sections. Two of them must never be altered.

Annexed formats cover the IFT (A), JV agreement (B), reporting the award (C), reporting contract signing (D), the commencement letter (E) and the completion certificate (F).

03Key Time Limits

04Set Qualification Criteria

Qualification is pass/fail. Set each criterion in the TDS from the official cost estimate (E) and the construction period, using the STD's guidance.

AACT = (E ÷ N) × F    F = 0.4 to 0.75, N = construction years (≥ 1)

Liquid asset = (T ÷ N) × E    T = months between interim bills (usually 2–3), N = construction months

Assessed tender capacity = A × N × 1.25 − B

• For tender capacity, A is the maximum value of works done in any one year of the last five, N the completion time in years (taken as 1 if under 12 months) and B the existing commitments to be completed in the next N years.
• The larger the contract, the lower the AACT multiplier should be.

Example: the STD's Tk. 4 crore, 12-month contract AACT = (4 ÷ 1) × 0.5 = Tk. 2 crore. Liquid asset = (2 ÷ 12) × 4 = about Tk. 0.66 crore. Tender capacity required = 60–75% of Tk. 4 crore, so set a figure between Tk. 2.4 and 3 crore.

Joint ventures (ITT 17, TDS 17.1–17.2):

• Do not allow JVs if the estimated cost is below Tk. 3 crore. The JV agreement is on a Tk. 300 non-judicial stamp.
• The lead partner holds the highest business share; each other partner at least 25%.
• Suggested split: specific experience by summation with the lead having at least one contract; liquid asset and tender capacity 100% combined, lead 40%, each other partner 25%; personnel and equipment by summation.

Subcontracting is limited to 30% of the works by value and must be named in Form e-PW2A-4. If you nominate subcontractors for specific components, name them in TDS 18.4.

05Fill In the TDS

Example: securities at two contract sizes On a Tk. 4 crore estimate, tender security can be up to Tk. 12 lakh. A Tk. 80 lakh contract needs no performance security but 10% retention; a Tk. 2 crore contract needs a Tk. 10 lakh performance security and 5% retention.

06Fill In the PCC

Check retention carefully: TDS 65.1 sets 10% up to Tk. 1 crore, while PCC 67.1 reads 5%. Make the TDS and PCC say the same thing for your package before publishing.

07BoQ, Specifications and Drawings

• Group BoQ items into sections (100 General, 200 Preliminary, 300 Main, 400 Other, 500 Misc., 600 ES and Health & Safety) where method, location, timing or cost differ.
• Compute quantities net from the drawings, in metric units, with no allowance for bulking, shrinkage or waste. The PE fills columns 1–5; tenderers quote the unit rate.
• Include a Dayworks schedule only when unforeseen work is likely, with nominal quantities approved by the estimate-sanctioning authority.
• Provisional sums for contingencies or other expenditures may not exceed 1% of the estimated contract price and need prior approval.
• Write specifications for the widest competition, using recognised national standards and accepting equal or higher alternatives. Materials must be new and current.
• Prepare the ES Specifications from the environmental and social assessment (OHS, community safety, dust, waste, traffic, grievance mechanism, code of conduct, progress report format), referring to BNBC 2020 where relevant.

08Clarifications and Addenda

• Clarification requests come through e-GP within the IFT time; answer within 5 working days. Requests after that date need not be answered.
• A pre-tender meeting, if stated in the IFT, is online. Upload minutes within 5 working days. Missing it does not disqualify anyone.
• Change the document only by a dated, numbered addendum, never by meeting minutes. Circulate it within 5 working days and post it where the IFT was posted.
• If less than one-third of the preparation time remains, extend the deadline by at least 3 working days.

09Opening and Responsiveness

1. e-GP opens tenders automatically after the deadline and generates the Tender Opening Report.
2. The TEC reviews the system-generated evaluation reports in four steps: preliminary, technical, financial and post-qualification.
3. Preliminary: reject any tender missing duly signed forms, the priced BoQ or a valid tender security.
4. Technical: a responsive tender has no material deviation, reservation or omission affecting scope, quality, the PE's rights or fairness to others. It cannot later be made responsive.
5. Ask, through the TEC Chairperson only, for missing non-material documents (never anything touching rates), allowing at least 3 working days.

There is no minimum number of responsive tenders (ITT 45.4), and e-GP has no arithmetic-correction step (ITT 48.1).

10Financial Evaluation and SLT

• Evaluate the tender price excluding provisional sums for contingencies but including dayworks, adjusted for unconditional discounts. Ignore unsolicited extras.
• With at least two technically responsive tenders, screen for a Significantly Low-priced Tender (ITT 50):

x̄ = 0.5 × (average of quoted prices) + 0.2 × official cost estimate + 0.3 × X_NPPI

S_d = √( Σ (x̄ − x_i)² / n )    Lower limit = x̄ − S_d

• X_NPPI is the official estimate multiplied by the National Public Procurement Price Index for works, from e-GP awards over the 28 days ending on the opening day (excluding national LTM).
• Any tender below the lower limit is financially non-responsive and rejected.
• With only one responsive tender, compare it with the official estimate: a deviation of more than 20% makes it non-responsive.
• If pricing is front-loaded or unbalanced, the TEC may recommend higher retention (up to 20% of contract price).

Example: an illustrative SLT check Estimate Tk. 2.00 crore, X_NPPI Tk. 1.90 crore, three responsive tenders of Tk. 1.70, 1.80 and 1.90 crore (average 1.80). x̄ = 0.90 + 0.40 + 0.57 = Tk. 1.87 crore; S_d ≈ Tk. 0.11 crore; lower limit ≈ Tk. 1.76 crore. The Tk. 1.70 crore tender is an SLT and is rejected; Tk. 1.80 crore becomes the lowest evaluated.

On a tie, first look for collusion (Rule 149). Without it, prefer better past performance with the PE (timely completion, LD, terminations, defect complaints), then with other PEs. Never use a lottery.

11Post-qualification and Award

1. Post-qualify the lowest evaluated tenderer only against ITT 13–18 and its documents. A visit to its premises is allowed. If it fails, move to the next lowest.
2. Negotiate only if the lowest tender is significantly above the estimate, to reduce scope or reallocate risk; the tenderer may refuse without penalty and must stay lowest after any scope cut.
3. Issue the NOA (Form e-PW2A-9) within 3 working days of approval with the draft contract, performance security amount and deadlines. The NOA forms the contract.
4. Publish the award (Format C) within 24 hours on the notice board or website and the BPPA website.
5. Receive the performance security within 7 working days and verify it with the issuing bank; sign within 14 days (all JV partners sign).
6. Publish contract signing (Format D), with beneficial ownership for contracts above Tk. 10 lakh, within 3 days.

• Return non-responsive tender securities after the evaluation report is approved; keep the 1st to 3rd lowest until the winner furnishes security and signs.
• Reject all tenders only on ITT 56.2 grounds with HOPE's approval, and not if the lowest price matches the market.

12Site, Commencement and Programme

• Hand over the site on the PCC date. Late possession is a compensation event; failing to hand over a substantial part within 84 days of signing lets the contractor terminate.
• Issue the commencement letter (Format E) once the contract is signed and the site handed over; the contractor starts by the Start Date.
• Approve the Programme of Works and its periodic updates; withhold the PCC amount if an update is late.
• Inspect regularly. No work may be covered without the PM's approval. Unspecified tests are at the contractor's cost only if they reveal a defect.
• Verify ES compliance before each certificate and withhold the PCC amount for failures.

13Variations and Extensions

• The contractor must notify a variation within 7 working days of becoming aware, or lose the claim. The PM prepares the order with plans, justification, itemised estimates and rates.
• If an item's quantity rises by more than 25% and that alone raises the contract price by more than 1%, agree an adjusted rate for the quantity beyond the BoQ.
• Price new items from the contractor's direct-cost breakdown plus its tender mark-up, or agreed market prices.
• The PM decides an extension within 21 days of full information; delay caused by the contractor's failure to give early warning is not counted.

Example: a Tk. 2 crore contract Variations up to Tk. 20 lakh go to the original Approving Authority, Tk. 20–60 lakh to the next higher authority, and nothing beyond Tk. 60 lakh. On a 12-month contract, the PE can extend up to about 3.6 months; up to 12 months needs HOPE.

14Payment, Retention and Damages

• The contractor submits monthly statements; the PM certifies the value of work executed at BoQ rates (including approved variations, dayworks and compensation events) and issues an IPC.
• Pay within 28 days of the certificate, less advance recovery, retention and other deductions; late payment carries the PCC interest rate.
• Return retention after the Defects Liability Period, once the Defects Correction Certificate is issued.
• Adjust the price for changes in law after 28 days before the deadline, and for tax-rate changes with HOPE's approval.

Liquidated damages T = V × P × n    (contract price × daily rate × days late)

Example: liquidated damages A Tk. 2 crore contract at 0.05% per day finishing 30 days late: 2,00,00,000 × 0.0005 × 30 = Tk. 3,00,000. With a 10% cap (Tk. 20 lakh), the cap is reached after 200 days, at which point delay becomes a fundamental breach.

15Completion, Termination and Disputes

• Take over within 7 days of the PM's completion recommendation and issue the completion certificate (Format F).
• The contractor submits the final account; certify it within 56 days or issue a Defects Liability Schedule.
• For a default, send a Notice to Correct first (reply within 5 days). For a fundamental breach, issue a Notice of Default with 21 days to explain, then a final notice with HOPE's approval. HOPE may form a Contract Termination Review Committee.
• On default termination, jointly measure the work (7 days' notice), certify its value and deduct the PCC compensation (15–25% of the revised estimate of uncompleted works).
• Termination for convenience needs 21 days' notice and may not be used to give the work to someone else.
• Disputes: amicable settlement, then the Adjudicator (referral within 14 days, decision within 28 days), then arbitration under the Arbitration Act 2001.

16Publishing Checklist

• Estimate is within Tk. 5 crore and the package is not split.
• ITT and GCC are untouched; every TDS and PCC blank is filled.
• Qualification criteria are derived from the estimate and period (AACT, liquid asset, tender capacity).
• JV allowed or barred correctly (barred below Tk. 3 crore).
• Tender security is a fixed amount ≤ 3% of the estimate.
• Performance security and retention match the contract-size rules, and TDS 65.1 agrees with PCC 67.1.
• BoQ is complete, quantities net from drawings, provisional sums ≤ 1% and approved.
• General, Particular and ES Specifications and drawing list are attached.
• Validity period, assessment year, LD rate and cap, DLP and Adjudicator are set.

17Common Questions