Awarding Contract 定标

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20 Mar 2020: Punctuation standardised.

7 Apr 2019: "Originals of Tender Correspondence" added. 

Awarding the Contract 定標

  1. Letter of Acceptance / Letter of Award.
  2. Letter of Intent (to nominate) followed by Letter of Acceptance by the Main Contractor.
  3. Is letter of intent binding? If binding, how?

Contents of the Letter 函件內容

  1. Issuing on behalf of the Client.
  2. Brief description of the Works.
  3. The Contract Sum.
  4. Build-up of the Contract Sum from the original Tender Sum, if different.
  5. Discounts (lump sum, percentage, how to apply, how are prime cost rate items treated).
  6. The Contract Periods.
  7. Pricing clarifications.
  8. Technical clarifications.
  9. Defining Contract Documents and order of precedence (Tender Documents, tender, tender correspondence).
  10. Any programme, method statement, site layout plan, and organization chart for reference only and to be formally proposed after contract award but subsequent deviations to be properly justified (information contained in these reference documents but intended to form part of the contract should be specifically stated).
  11. Counter-signing and returning the letter.
  12. Binding contract upon counter-signing.
  13. Immediate formal submissions:
    • Surety Bond
    • Employees’ Compensation Insurance Policy
    • Contractors’ All Risks and Third Party Liability Insurance Policy
    • Method statement of the Works
    • Programme of the Works
    • Site layout plan
    • Organization chart with the names and qualification of key management and site personnel for the Works.

Preparing the formal Contract Documents

  1. Originals of Tender Correspondence (added 7 April 2019)
    • Obtain the originals of the tender correspondence from the recipients and bind them into the original set of the Contract Documents:
      • This  is a customary practice to bind in the originals. However, sometimes it takes too long to obtain the originals from the recipients because this is not their first priority to attend to this matter, or the recipients would want to retain the originals as original evidence
    • Use fair photocopies of the originals for binding into the original set of the Contract Documents:
      • Signing of the Contract Documents with such photocopies bound in should be sufficient to signify that the signing parties recognize the fair photocopies represent the true contents of the originals
    • Notify the contract parties such intention to use fair photocopies in case they may disagree:
      • Some organizations tend to be dogmatic to follow the customary practice. 
  2. Contract Drawings to be bound and signed as well.
  3. Number of original and certified true copies.
  4. Checking for the updated registered addresses.
  5. Amendments and Special Conditions to the Form of Contract:
    • Physically amending the Form
    • Including and initialling an overriding clause to incorporate the amendments and special conditions.
  6. Calculating the Date for Completion from the overall duration (Date for Possession or Date for Commencement counted as day 1).
  7. Calculating limit of retention and amount of surety bond (based on the overall Contract Sum or exclusive of prime cost and provisional sums; rounding off).
  8. Execution as simple contract or contract under seal.
  9. Significance of the date of signing.

Signing the Contract

  • Example of the signing page of the Standard Form of Building Contract 2005/2006 Edition:

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