e-PW3 Works Open Tender Preparation Guideline

01When to Use e-PW3

Use e-PW3 when the Procuring Entity will select a contractor for works above Tk. 5 crore through the Open Tendering Method on e-GP, with award to the lowest evaluated responsive tender, and no pre-qualification has taken place.

Nature

Works (and physical services)

Method

Open Tendering (OTM)

Value

Above Tk. 5 crore

Pre-qualification

None

Contract type

Admeasurement (unit rates)

Award basis

Lowest evaluated responsive

e-PW3 follows e-PW2A closely, but the larger contract size changes several numbers:

e-PW3 is open to tenderers from all countries except any named in TDS 5.1. If the package was pre-qualified, use the STD made for that route instead.

02How the Document Works

e-PW3 has ten sections. The ITT and GCC must never be altered.

Contract forms include the NOA (9), Contract Agreement (10), performance security guarantee (11), advance payment guarantee (12) and contract amendment (13). Annexed formats cover the IFT (A), JV agreement (B), award report (C), contract-signing report, commencement letter (E) and completion certificate (F).

03Key Time Limits

The tender for e-PW3 is always above Tk. 5 crore, so in practice the performance security deadline is 10 or 14 working days and the signing deadline 21 or 28 days. Choose the band from the estimate and delete the others in the TDS.

04Set Qualification Criteria

Qualification is pass/fail. Set each criterion in the TDS from the official cost estimate (E) and the construction period.

AACT = (E ÷ N) × F    F = 1.0 to 1.5, N = construction years (≥ 1)

Liquid asset = (T ÷ N) × E    T = months between interim bills (usually 3–4), N = construction months

Assessed tender capacity = A × N × 1.25 − B

• A is the highest value of works done in any one year of the last five, N the completion time in years (1 if under 12 months), B the commitments to be completed in the next N years.
• The larger the contract, the lower the AACT multiplier should be.
• For several lots, state each criterion per lot. General experience, and specific experience of the same nature, are not applied lot by lot.

Example: the STD's Tk. 24 crore, 18-month contract Annual cash flow is about Tk. 16 crore; with F = 1.5 the AACT is Tk. 24 crore. With bills every 3 months, liquid asset = (3 ÷ 18) × 24 = Tk. 4 crore. Tender capacity at 70–80% means setting Tk. 16.8 to 19.2 crore.

05Joint Ventures and Subcontractors

• JVs are allowed, by agreement on Format e-PW3-B executed on a Tk. 300 non-judicial stamp, or a notarised Letter of Intent with the draft agreement. State the maximum number of partners in TDS 17.1 (or "not limited").
• The lead partner holds the highest business share; each other partner at least 25%. Business share does not count towards qualification.
• All partners are jointly and severally liable, all sign the contract, and the JV's make-up cannot change without the PE's approval. A non-lead partner can be replaced only by one with higher qualifications.

Subcontracting is limited to 30% of the works by value and must be named in Form e-PW3-4. Name any nominated subcontractors for specific components in TDS 18.4 and PCC 20.4. New subcontractors after signing need HOPE's written approval.

06Fill In the TDS

Example: securities on a Tk. 24 crore estimate Tender security up to Tk. 72 lakh (3%). A Tk. 24 crore contract needs a Tk. 1.2 crore performance security within 10 working days, signing within 21 days, and 5% retention; the two together are capped at Tk. 2.4 crore unless the TEC recommends more.

07Fill In the PCC

08Price Adjustment

• Usually allowed only where execution from Start Date to Completion will take more than 18 months. Shorter contracts need HOPE's approval for adjustable prices.
• If adjustable, fill Appendix to the Tender Table 1.1 (index descriptions, base values, sources) and Table 1.2 (weightings by item group). Use Bangladesh Bureau of Statistics indexes where available.
• Base values are the indexes 28 days before the tender deadline. Adjustment starts 12 months after commencement and applies to each certified amount before advance deductions.
• The effect of price adjustment is not counted in tender evaluation.

P = A + B (Im ÷ Io)    A + B = 1, A usually 0.20–0.25

Example: one adjustable index With A = 0.20 and B = 0.80, if the index rises from 100 to 110, P = 0.20 + 0.80 × 1.10 = 1.08. A certified Tk. 1 crore bill in month 14 is paid as Tk. 1.08 crore before deductions. In practice B is split across labour, cement, steel, bitumen and other indexes.

09BoQ, Specifications and ES Plan

• Group BoQ items (100 General, 200 Preliminary, 300 Main, 400 Other, 500 Misc., 600 ES and Health & Safety). Compute quantities net from drawings in metric units, with no allowance for bulking or waste.
• Include a Dayworks schedule only when unforeseen work is likely; nominal quantities need approval of the estimate-sanctioning authority.
• Provisional sums may cover nominated subcontractors, price escalation and contingencies; the contingency sum may not exceed 1% of the estimated contract price.
• Write specifications for wide competition, using national standards and accepting equal or higher alternatives.
• The ES Specifications must set what the tenderer's ES-MSIP covers (OHS, community safety, dust, waste, traffic, grievance mechanism, code of conduct) and the monthly progress report format.

10Clarifications and Addenda

• Clarification requests come through e-GP within the IFT time; answer within 5 working days.
• A pre-tender meeting, if held, is online. Upload minutes within 5 working days. Missing it does not disqualify anyone.
• Change the document only by a dated, numbered addendum, circulated within 5 working days and posted where the IFT was posted.
• If less than one-third of the preparation time remains, extend the deadline by at least 3 working days.

11Opening and Responsiveness

1. e-GP opens tenders automatically after the deadline and generates the Tender Opening Report.
2. The TEC reviews the system evaluation reports in four steps: preliminary, technical, financial and post-qualification.
3. Preliminary: reject any tender missing e-signed forms, the priced BoQ or a valid tender security.
4. Technical: check eligibility, materials origin and conformity, the technical proposal and the ES plan against the specifications, without material deviation, reservation or omission. Alternatives are not allowed.
5. Ask, through the TEC Chairperson only, for missing non-material documents or rate breakdowns, allowing at least 3 working days. Never let a clarification change substance or rates.

There is no minimum number of responsive tenders (ITT 47.4), and e-GP has no arithmetic-correction step (ITT 50.1).

12Financial Evaluation and SLT

• Evaluate the tender price excluding contingency provisional sums and price adjustment, including dayworks, less unconditional discounts. Ignore unsolicited extras.
• With at least two technically responsive tenders, screen for a Significantly Low-priced Tender (ITT 52):

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 estimate multiplied by the works price index from e-GP awards in the 28 days ending on the opening day (excluding national LTM).
• Below the lower limit, a tender is financially non-responsive and rejected. With one responsive tender, more than 20% deviation from the estimate makes it non-responsive.
• For front-loaded or unbalanced pricing, the TEC may recommend retention up to 20% of contract price.

Example: an illustrative SLT check Estimate Tk. 20 crore, X_NPPI Tk. 19 crore, three tenders of Tk. 17, 18 and 19 crore. x̄ = 9.0 + 4.0 + 5.7 = Tk. 18.7 crore; S_d ≈ Tk. 1.08 crore; lower limit ≈ Tk. 17.62 crore. The Tk. 17 crore tender is rejected; Tk. 18 crore becomes the lowest evaluated.

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

13Post-qualification and Award

1. Post-qualify the lowest evaluated tenderer against ITT 12–17, possibly visiting its premises. If it fails, move to the next lowest.
2. Negotiate only if the lowest tender is significantly above the estimate, to cut scope or reallocate risk; the tenderer may decline and must remain lowest.
3. Issue the NOA (Form e-PW3-9) within 3 working days of approval, with the draft contract and deadlines. Publish the award (Format C) within 24 hours.
4. Receive and verify the 5% performance security within the TDS working days; sign within the TDS days (all JV partners).
5. Publish contract signing with beneficial ownership within 3 days, for at least 30 days.

• A Bangladeshi government-owned enterprise that wins gives no performance security; retention of 10% applies instead.
• Reject all tenders only on ITT 58.2 grounds (including a lowest price above a realistic estimate) with HOPE's approval, and not if the price matches the market.

14Commencement, Advance and Insurance

• Commencement needs the signed contract, site possession and, if any, the advance paid against its bank guarantee. Then issue the commencement letter (Format E).
• Advance payment (if in the PCC, recommended ≤ 10%) is paid against an equal guarantee on Form e-PW3-12, interest-free, used only for equipment, plant, materials and mobilisation. Recover it from progress payments between 20% and 80% of the contract price. A delayed advance is a compensation event.
• The contractor insures the works, equipment, other property and injury in joint names from Start Date to the end of the DLP, delivers policies before the Start Date and extends cover with any time extension.
• Approve the Programme of Works and its updates (with cash-flow forecasts); hold management and progress meetings and receive monthly progress reports.
• Approve the ES risk management plan within 15 days of commencement and verify ES compliance before each certificate.

Example: amortising a 10% advance On Tk. 24 crore, an advance of Tk. 2.4 crore is recovered between 20% and 80% progress (Tk. 14.4 crore of work), so about 16.7% is deducted from each payment in that band.

15Variations, Extensions and Acceleration

• The contractor must notify a variation by the 7th working day, or lose the claim. Variation processing must meet the Rule 50(21) timelines.
• If an item grows by more than 25% and that alone adds more than 1% to the contract price, agree an adjusted rate for the excess.
• If variations move the price by more than 20%, the performance security may be increased (or, with consent, reduced) in proportion.
• Acceleration: to finish early, obtain priced proposals; accepted proposals are treated as a variation.
• Suspension: the PM may suspend work; the contractor protects it and may claim time and cost unless caused by its own fault.

Example: a Tk. 24 crore contract Variations up to Tk. 2.4 crore go to the original Approving Authority, Tk. 2.4–7.2 crore to the next higher authority, and nothing beyond Tk. 7.2 crore.

16Payment, Retention, Damages and Bonus

• Monthly statements; the PM checks ES compliance, then certifies the value at BoQ rates (with variations, dayworks and compensation events) and the PE issues an IPC.
• Pay within 28 days less advance recovery and retention; late payment earns the PCC interest, if any. Variation work is paid only after approval.
• Retention is returned after the DLP and the Defects Correction Certificate.
• Contractor liability is capped at the contract price, except for repairing defective works, patent indemnity, and cases of criminal negligence or wilful misconduct.

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

Example: damages and bonus On Tk. 24 crore at 0.05% per day, 30 days late costs Tk. 36 lakh; the 10% cap (Tk. 2.4 crore) is reached after 200 days. If a bonus at the same rate applies, finishing 30 days early earns Tk. 36 lakh.

17Completion, Termination and Disputes

• Take over within 7 days of the PM's completion recommendation and issue the completion certificate (Format F); certify the final account within 56 days.
• Default route: Notice to Correct (reply in 5 days), Notice of Default (21 days to explain), final notice with HOPE's approval. A finding of corrupt practice allows termination on 28 days' notice.
• On default termination, jointly measure (7 days' notice), certify value less advance and deduct 15–25% of the revised estimate of uncompleted works.
• Termination for convenience needs 21 days' notice and cannot be used to re-let the work.
• Disputes: amicable settlement, the Adjudicator (referral within 14 days, decision within 28), then arbitration under the Arbitration Act 2001.

18Publishing Checklist

• Estimate is above Tk. 5 crore and no pre-qualification was held.
• ITT and GCC untouched; every TDS and PCC blank filled; inapplicable options deleted.
• AACT (F 1.0–1.5), liquid asset and tender capacity (70–80%) derived from the estimate and period.
• JV split, maximum partners and nominated subcontractors stated.
• Tender security a fixed amount ≤ 3%; security and signing days match the estimate band.
• Price adjustment decided; Tables 1.1 and 1.2 completed if adjustable.
• Advance, bonus, insurance amounts and ES plan items set or marked not applicable.
• BoQ, dayworks, provisional sums (≤ 1% contingency), specifications, ES Specifications and drawings attached.

19Common Questions