e-PW3A Works Two Envelope Tender Preparation Guideline

01When to Use e-PW3A

Use e-PW3A when the Procuring Entity will select a contractor for works through the One Stage Two Envelope Tendering Method (OSTETM) on e-GP, with award to the lowest evaluated responsive tender, and no pre-qualification has taken place. It suits packages where you want the technical proposal, equipment and team judged without the price influencing the committee.

Nature

Works (and physical services)

Method

One Stage Two Envelope

Value

Any value

Pre-qualification

None

Contract type

Admeasurement (unit rates)

Award basis

Lowest evaluated responsive

02How the Two Envelopes Work

Tenderers submit both parts at once, in a single e-GP submission. e-GP opens only the technical offer at the deadline; the financial offer stays encrypted and inaccessible to everyone until the technical evaluation is complete and approved.

1. Deadline passes; e-GP opens technical offers and issues the Tender Opening Report.
2. TEC does the preliminary and technical evaluation and prepares the Technical Evaluation Report.
3. TEC submits that report directly to HOPE or the Authorized Officer for approval.
4. After approval, e-GP decrypts the financial offers of the technically responsive tenderers only.
5. TEC does the financial evaluation, SLT check and post-qualification, and recommends award.

Keep the two envelopes clean when drafting: never ask for price information (rates, discounts, price breakdowns) in the technical offer, or you defeat the method.

03How the Document Works

e-PW3A has ten sections. The ITT and GCC must never be altered.

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

04Key Time Limits

Build time into your schedule for the technical report approval step. Tender validity (normally 60–150 days) must cover both evaluation stages, HOPE's approval and award.

05Set Qualification Criteria

Qualification is pass/fail and uses the same TDS formulas as e-PW3, set from the official cost estimate (E):

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

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

Assessed tender capacity = A × N × 1.25 − B

Example: the STD's Tk. 24 crore, 18-month contract AACT with F = 1.5 is Tk. 24 crore; liquid asset at 3 months is Tk. 4 crore; tender capacity at 70–80% is Tk. 16.8–19.2 crore. For a small e-PW3A package, say Tk. 3 crore over 12 months, the same formulas give AACT Tk. 3–4.5 crore and liquid asset Tk. 0.75 crore (T = 3).

All qualification evidence sits in the technical offer, so qualification is checked in stage 1 and confirmed again at post-qualification.

06Joint Ventures and Subcontractors

• JVs are allowed at any value, by agreement on Format e-PW3A-B (Tk. 300 non-judicial stamp) or a notarised Letter of Intent with the draft agreement. State the maximum number of partners in TDS 17.2.
• Suggested split: experience summed with the lead holding at least one contract; turnover, liquid asset and tender capacity 100% combined, lead 40%, each other partner 25%; general experience met in full by each partner.
• Lead partner holds the highest business share; others at least 25%. All are jointly and severally liable.
• Subcontracting is capped at 30% of the works by value, named in Form e-PW3A-4; nominated subcontractors go in TDS 18.4 and PCC 20.4.

07Fill In the TDS

Example: deadlines on a Tk. 4 crore estimate Because e-PW3A is used at any value, the smallest band applies here: performance security within 7 working days and signing within 14 days. Tender security up to Tk. 12 lakh.

08Fill In the PCC

• Parties, Project Manager, site, scope, intended completion date, commencement date and a Start Date 14–21 days later; site possession normally within 28 days of signing.
• Required ES plan items (OHS, storage, pollution, community safety, traffic, emergency) and update interval.
• Insurance amounts: e.g. works 110% of value, equipment 110% of replacement, other property 10% of price; deductibles 3–5%.
• Programme within about 15 days of signing; update interval; withholding for late updates.
• Defects Liability Period (usually 12 months); ES withholding per failure (0.1–0.2%) capped at ≤ 2%.
• Late-payment interest or "none"; price adjustment formula (A 0.20–0.25) with Tables 1.1 and 1.2, or none.
• Retention 5% (up to 20% for front-loading); LD and bonus 0.03–0.05% per day, each capped at ≤ 10%.
• Advance payment (recommended ≤ 10%, amortised between 20% and 80% progress) or "Not Applicable".
• Provisional-sum mark-up; as-built drawings dates; 15–25% compensation for uncompleted works; Adjudicator, IEB President as appointing authority, arbitration venue.

09BoQ, Specifications and ES Plan

• The BoQ is the financial envelope. Group items (100 General to 500 Misc., 600 ES and Health & Safety), metric units, quantities net from drawings.
• Dayworks only where unforeseen work is likely; contingency provisional sum ≤ 1% of estimated price, approved by the estimate-sanctioning authority.
• Because the technical envelope is judged on its own, write specifications and TDS 30.1 requirements precisely enough that the TEC can reach a clear pass/fail on methods, equipment and team.
• The ES Specifications set what the ES-MSIP must cover and the monthly progress report format.

10Clarifications and Addenda

• Answer questions through e-GP within 5 working days; hold any pre-tender meeting online; non-attendance does not disqualify.
• Change the document only by a dated, numbered addendum circulated within 5 working days; extend by at least 3 working days if issued late.

11Stage 1: Technical Evaluation

1. Preliminary: reject a tender missing e-signed forms or a valid tender security. (The priced BoQ is not checked yet; it is still sealed.)
2. Technical responsiveness: eligibility, materials origin and conformity, technical proposal, ES plan and qualification, without material deviation, reservation or omission.
3. Request missing non-material documents only from an otherwise responsive tender, never anything touching mandatory criteria; allow at least 3 working days; clarifications go through the TEC Chairperson.
4. Prepare the Technical Evaluation Report and submit it directly to HOPE or the Authorized Officer for approval.

Validity extensions (at most twice) may be sought only from tenderers that passed the preliminary examination. There is no minimum number of responsive tenders.

12Stage 2: Financial Opening and SLT

• After approval, e-GP opens or decrypts the financial offers of the technically responsive tenderers only.
• TEC may ask (Chairperson-signed, through e-GP) for unit-rate breakdowns. No change in the tender price is allowed.
• Evaluate price excluding contingency provisional sums and price adjustment, including dayworks, less unconditional discounts.
• With two or more responsive tenders, apply the SLT test; with one, reject it if more than 20% from the estimate.

x̄ = 0.5 × (average quoted price) + 0.2 × official estimate + 0.3 × X_NPPI    Lower limit = x̄ − S_d

Example: an illustrative SLT check Estimate Tk. 20 crore, X_NPPI Tk. 19 crore, three technically responsive tenders of Tk. 17, 18 and 19 crore: x̄ = Tk. 18.7 crore, S_d ≈ Tk. 1.08 crore, lower limit ≈ Tk. 17.62 crore. The Tk. 17 crore tender is rejected.

On a tie, check for collusion (Rule 149), then prefer better past performance with the PE, then with other PEs. Never use a lottery. For front-loaded pricing the TEC may recommend retention up to 20%.

13Post-qualification and Award

1. Post-qualify the lowest evaluated tenderer on ITT 12–17 evidence (site visit allowed); if it fails, move to the next.
2. Negotiate only to cut scope or reallocate risk where the price is significantly above the estimate; the tenderer may decline.
3. Issue the NOA (Form e-PW3A-9) within 3 working days of approval; publish the award (Format C) within 24 hours.
4. Receive the 5% performance security and sign within the TDS days; publish signing with beneficial ownership (Format D) within 3 days.

A government-owned enterprise gives no performance security; 10% retention applies instead. Reject all tenders only on ITT 61.2 grounds with HOPE's approval.

14Commencement, Advance and Insurance

• Commencement follows signing, site possession and any advance (against an equal guarantee on Form e-PW3A-12).
• Insurance in joint names from Start Date to end of the DLP, policies before the Start Date.
• Approve the Programme of Works, updates and cash-flow forecasts; approve the ES plan within 15 days and check ES compliance before each certificate.

15Variations, Extensions and Payment

• Contractor notifies variations by the 7th working day; rates re-set when an item grows by over 25% and adds over 1% to the price.
• Monthly certificates at BoQ rates; pay within 28 days; retention returned after the DLP and Defects Correction Certificate.
• LD T = V × P × n, capped at ≤ 10%; bonus if stated in the PCC.

16Completion, Termination and Disputes

• Take over within 7 days of the PM's recommendation; completion certificate on Format F; final account certified within 56 days.
• Default route: Notice to Correct (5 days), Notice of Default (21 days), final notice with HOPE's approval; 15–25% compensation on uncompleted works.
• Disputes: amicable settlement, Adjudicator (14 days to refer, 28 to decide), arbitration under the Arbitration Act 2001.

17Publishing Checklist

• OSTETM approved for the package; no pre-qualification held.
• ITT and GCC untouched; every TDS and PCC blank filled.
• Technical-offer and financial-offer contents clearly separated; no price information asked for in the technical offer.
• TDS 30.1 and specifications precise enough for a clear technical pass/fail.
• AACT, liquid asset and tender capacity derived from the estimate.
• Tender security fixed ≤ 3%; deadlines match the estimate band.
• Validity long enough for two evaluation stages and HOPE's approval of the technical report.
• BoQ, provisional sums, ES Specifications and drawings attached.

18Common Questions