TA-143-D00-G-TD001 - 0 - Instructions To Tenderers PDF

National Iranian Steel Co.
Baft Steel Complex
DR & Material Handling Plant

Project
Instructions to Tenderers
NISCO
DR & Material Handling Plant Project
TARA
TARH
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INSTRUCTIONS TO TENDERERS
Table of Contents
Page
1.
Introduction
2.
Scope of Tender
3.
Tender Document
4.
Procedure for Preparation and Submission of Tender
5.
Information to be Included in Tender
11
6.
Rejection and Validity of Tender
13
7.
Evaluation of Tender
14
20
9.
Performance Security, Retention Money and Defect Notification

Period
Tenderer's Understanding of Tender documents
21
10.
Modification of Tender Documents
22
11.
Material and Workmanship
23
12.
Payments
24
13.
Obligation of Tenderer
25
14.
Clarification of Tender
26
15.
Confidentiality
27
16.
Retendering
28
Annex 1: Form of Tender Guarantee
29
Annex 2: Declaration of full acceptance of Tender
31
8.
Table of Content
Doc No.: TA-143-D00-G-TD001
17-Sep-07
Rev 0
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1. Introduction
National Iranian Steel Company (NISCO) (hereinafter referred to as the Employer) intends to
select a qualified contractor from pre-qualified bidders for construction of a Direct Reduction
plant with capacity of 800,000 ton DRI +5 mm per year based on one of successful gas based
direct reduction processes approved by NISCO and a raw material receiving and handling plant
with a capacity of handling 2,500,000 ton of received iron ore pellets per year, at newly planned
Baft Steel Complex, in the vicinity of Baft City, Kerman Provice of Iran as per condition of the
tender.
Clause 1
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2. Scope of Tender
2.1.
The following information and other documents are intended to define equipment,
material and services which the Employer wishes to purchase, to be considered, Tenders
must be made in accordance with these Instructions to Tenderers.
2.2.
The Tenderer must offer the whole of the equipment, material, and services called by the
Tender.
2.3.
All design, engineering, fabrication, testing, packing, marking and forwarding of Plant and
Materials and guarantee of systems and designs shall be in the Contractor scope of obligation.
2.4.
All equipment, machinery, material, spare parts, etc. shall be supplied by the Contractor.
2.5.
Civil works shall be done by Contractor. All excavations, fillings, drillings, diggings,
piling, etc. required under the Contract shall be by the Contractor.
2.6.
All required Contractors Equipment for the execution of the Contract shall be provided
by the Contractor.
2.7.
Certain equipment may be manufactured in Iran, which however shall be supplied by the
Contractor and will be referred to in these Documents as Local Supply.
2.8.
Off-loading of both Foreign Supply and Local Supply at Site shall be by the Contractor.
2.9.
The erection of the equipment, machinery, and material on Site shall be done by the
Contractor.
2.10. Tests on Completion shall be done by the Contractor.

2.11. The Contractor shall be the insuring Party as per Conditions of Contract. Insurance of the
Works shall be in the Contractor's scope of obligation.
2.12. Foreign Supply shall be delivered DDU Site (as per INCOTERMS 2000).
2.13. Local Supply shall be delivered DDP Site (as per INCOTERMS 2000).
2.14. Customs clearance for Foreign Supply will be done by the Contractor on behalf of the
Employer but payment for custom duties shall be born by the Employer. All risks during
customs clearances shall be born by the Contractor. Tenderer shall clearly define the
Foreign Supply portion of his supply. Components required to be imported for locally
manufactured equipment shall not be considered part of Foreign Supply. All activities and
costs related to Local Supply including any custom duties and costs related to imported
parts and components shall be in the Contractors scope of obligation.
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2.15. All tenderers shall have to visit the Site and carefully examine all circumstances prevailing
at Site which in any manner might affect execution of the Contractors obligation or the
cost thereof. Tenderers may visit the Site by prior appointment with the Employer. By
submission of an offer by Tenderer it is deemed that Tenderers has visited the Site and
collected all the information necessary for the preparation of the offer submitted.
2.16. Provision of necessary funds for execution of the Works shall be by the Employer from
local resources.
2.17. Full compliance with the ACT of maximum utilization of local design, engineering,
production, industrial, civil works and erection potentials and provision of facilities for
export of services approved on 12.12.1375 in the parliament (corresponding to March,
2nd, 1997) shall be considered by Tenderers. In this regard the executive bylaw for part
(c) of article 2 of the Act concerning co-ordination of laws to facilitate renovation of the
countrys industries and amendment of article 113 of the Act of third economical, social
and cultural development plan of Islamic Republic of Iran approved on 13.08.1383 by
council of ministers shall be carefully followed by the Employer.
2.18. Tenderer not submitting the requisite information may note that his offer is liable to
be ignored.
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3. Tender Documents
3.1 Composition of Tender Documents
The Tender documents issued under cover of the Invitation to Tender are set out in two parts
designated A and B and composed of the following:
Tender Document A
x
Instructions to Tenderers and its related Annexes
the Contract Agreement and its related Annex
the Particular Conditions and its related Annexes
the General Conditions,
the Employers Requirements and its related annexes consisting of:

Annex 1, Plant Specification and Data Sheets,
Annex 2, Engineering Standards, Fluid Systems,
Annex 3, Engineering Standards, Electrical,
Annex 4, Engineering Standards, Instrumentation and Control,
Annex 5, Engineering Standards, Material Handling Systems,
Annex 6, Engineering Standards, General,
Annex 7, Engineering Standards, Packing, Marking and Forwarding
Tender Document B
x
Letter of Tender
Schedules of Prices and Price Breakdown
The Tender Documents are to be taken as mutually explanatory of one another. If an ambiguity
or discrepancy is found in the documents, the Tenderer shall indicate the same in writing to
TaraTarh Engineering and Technological Company to resolve the discrepancy. Any discrepancy
in the Contract Documents shall be resolved as provided for therein.
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4. Procedure for Preparation and Submission of Tenders

4.1. General
4.1.1. Tender documents shall be drawn up complete, indelible ink or typewritten or computer
printout, by using the accompanying forms where provided.
4.1.2. Tenderers shall provide with their Tender, electronic files of their proposal stored on CD
preferably in PDF format.
4.1.3. All tender documents and proposals including supplementary data and information shall
be in English.
4.1.4. Erasures and other changes shall be noted over and initialed by the person signing the
Tender.
4.1.5. If the documents submitted by the Tenderer do not meet the requirements mentioned
above, the Tenderer may be disqualified.
4.2. Envelopes A, B and C

Tenderers shall submit on or before the Closing Date stated in the "Invitation to Tender", the
proposals, which consist of three sealed envelopes, marked A, B and C.
4.3. Envelope A shall contain

4.5.1. Original Tender Guarantee in the form of annex 2 to this Instructions to Tenderers being
valid for ninety (90) days from the Closing Date stated in the Invitation to Tender, and
amounting to the figure stated in the Invitation to Tender. Tender Guarantee shall be
extended for ninety (90) days if asked by the Employer.
4.4. Envelope B
The Tenderer shall prepare one original of the documents and clearly mark it ORIGINAL.
Alternative tenders, if permitted, shall be clearly marked ALTERNATIVE. In addition, the
Tenderer shall submit three copies of the Tender clearly mark them COPY. In the event of
any discrepancy between the original and the copies, the original shall prevail. Envelope B
shall contain required data in a division specified bellow:
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PART ONE
4.4.1.
Declaration of full acceptance of tender as per Annex 3 to this Instructions to

Tenderers.
4.4.2.
Completed signed Affidavit Form (Annex 1 to Particular Conditions)
4.4.3.
A copy of the Contractors Registration Certificate, showing the authorized signature

and for Foreign companies a copy of the Contractors registration in its own country,
which shall be certified by the Iranian Consulate and showing the authorized signature.
4.4.4.
The Tender documents A (as listed in Sub-Clause 3.1) and addenda if issued, with all
schedules and questionnaires filled in and all other information called for.
4.4.5.
The joint venture or consortium Agreement (if any)

Joint venture or consortium Agreement between companies forming the Contractor shall
at least include the following:
Obligations of each of partners in joint venture or consortium
Organization chart of joint venture or consortium
Nomination of consortium or joint venture leader
Joint venture or consortium authorized signatures
Percentage of shares of foreign and Iranian partner in the joint venture or consortium
Consortium or joint venture members shall be individually, jointly and severally liable to
fulfill all obligations of the Contractor under the Contract.
4.4.6.
The Tenders shall include the followings:

x Power of Attorney of those who have signed the Tender (duly signed by the legal
representative of the Tenderers)
x Certificate of signature of the issuer(s) of the said Power of Attorney (authenticated
by the Iranian Consulate for foreign companies)
PART TWO
4.4.7.
Tenderers technical proposal
4.4.8.
Information as Clause 5 below
4.4.9.
Manufacturers catalogues, drawings and technical data, for all quoted items
4.4.10. Design, engineering, delivery, civil construction and erection and Tests on Completion
program for the Works together with delivery program for drawing and documents in the
form of a bar chart.
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4.4.11. Training service proposal

4.4.12. All pages of the above mentioned documents shall be duly stamped by the Tenderer. All
pages of the Instructions to Tenderers and its Annexes, the Contract Agreement, the
Particular Conditions and its related Annexes and the General Conditions shall also be
signed by the Tenderer.
4.4.13. No price indication shall be given in this envelope B.
4.4.14. All units in the Tender shall be in metric system unless otherwise specified in the
specifications or drawings.
4.4.15. Where an alternative tender is submitted in addition to the main Tender, its full technical
information shall be furnished in the same way as for the main Tender. Any such
alternative tender shall be clearly marked. The Employer reserves the right to accept or
reject any part or all of alternative tenders.
4.5. Envelope C
The Tenderer shall prepare one original of the documents and clearly mark it ORIGINAL. In
addition, the Tenderer shall submit three copies of the documents and clearly mark them
COPY. In the event of any discrepancy between the original and the copies, the original shall
prevail. The envelope C shall contain the following:
4.5.1.
The letter of tender in the form provided in Tender Documents completely filled-in by
the Tenderer.
4.5.2.
The Schedules of Prices and Price Breakdown containing detailed price list of
equipment, material and spare parts with each individual item legibly priced in ink or
typed, totalled to arrive at Plant and Materials price, construction cost, erection cost,
Tests for Completion cost, training cost, technical assistance cost, etc. totaled to arrive at
the exact amount of the total Tender price as filled-in in the Letter of Tender. The
Tender Price shall be stated in the Letter of Tender in words and figures in Euro and
Rial.
4.5.3.
The Letter of Tender and all pages of the Schedules of Prices and Price Breakdown shall
be signed and stamped by the Tenderer. All other pages are to be stamped by the
Tenderer.
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4.5.4.
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Full price data of any alternative tender on the same basis as the main Tender
corresponding to the technical information included in envelope B above under Clause
3. The alternative tender shall be clearly marked.
4.5.5.
Quoted prices shall be fixed and not subject to escalation.
4.5.6.
The term DDU Site delivery shall be in accordance with INCOTERMS 2000.
4.5.7.
The term DDP Sit delivery shall be in accordance with INCOTERMS 2000.
4.5.8.
The Contractors Multiplication Factor for civil works shall be based on the adjustment
indexes (shakhese mabnaie peyman) declared (or to be declared) by Management and
Planning Organization of Iran for the quarter before the quarter in which the Tender will
be submitted. An offer submitted with conditions other than abovementioned condition
shall be treated as non-respective and rejected.
4.5.9.
All prices forming the Contract Price shall be in Euro and Rial.
4.5.10. Incomplete, vague, illegible or conditional tenders will not be considered. The Tenderers
shall have to submit requested information in the form provided in Tender Documents.
4.6. Signature of Tender

4.6.1.
The Tender document shall contain the name and address of the person or persons
making the Tender and must be signed and stamped by the Tenderer, in accordance with
Sub-Clause 4.4.12 and Sub-Clause 4.5.3.
4.6.2.
Tenders by partnerships shall be furnished with the full name of all partners and be
signed with partnership name by one of the members of the partnership.
4.6.3.
Tenders by corporations shall be signed with legal name of the corporation by the person
or persons authorized to bind the corporation in the matter.
4.7. Submission of Tender

4.7.1.
The said Envelopes A, B and C shall be marked as follows:

x Name of Tenderer
x Address of Tenderer
x Subject of Tender
x Tender Closing Date
x Envelope A or B or C as appropriate
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4.7.2.
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The Tender shall be submitted to the address specified in the Invitation to Tender not
later than the Closing Date for submission of Tender, specified in the same.
4.7.3.
The Tender shall be submitted in person against a receipt. The Tenders through other
means such as telex, telegraph, facsimile, e-mail or mail shall not be accepted.
4.7.4.
Any Tender received after the Closing Date shall be declared late, rejected and returned
unopened to the tenderer.
4.7.5.
A tenderer may withdraw, substitute, or modify its Tender after it has been submitted by
sending a written notice, duly signed by an authorized representative, and shall include a
copy of the authorization. The corresponding substitution or modification of the Tender
must accompany the respective written notice. All notices must be received by the
Employer prior to the deadline prescribed for submission of Tenders.
4.7.6.
No Tenderer is allowed to modify, substitute or withdraw his Tender after the deadline
prescribed for submission of Tenders.
4.7.7.
If all envelopes are not sealed and marked as required, the Employer will assume no
responsibility for the misplacement or premature opening of the Tender.
4.8. Interpretation of Tender

In case there is a difference between the figures entered in words and in numerals in the Tender,
the figures entered in words shall prevail.
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5. Information to be Included in Tender

The following information shall be included by Tenderers in Envelope A by completing the
questionnaires or schedules in the Tender Documents and supplementary papers.
5.1. List of Equipment and Material

5.4.1.
complete breakdown of all main items
5.4.2.
All auxiliary equipment
5.4.3.
Special tools
5.4.4.
Spare parts as defined in the Employers Requirements (including operating spare parts
sufficient for 2 years of normal operation).
5.2. Technical Information

5.2.1.
Completed equipment data sheets as included in Annex I to the Employers

Requirements.
5.2.2.
Trademark or identification, manufacturer and country of manufacture. Where the

Tenderer cannot nominate a single sub-supplier, maximum three alternative subsuppliers may be stated. Each manufacturer or supplier together with the place of
manufacture shall be subject to approval by the Employer. Any change from this list
shall be made only with the written approval of the Employer.
5.2.3.
Type and main characteristics, production rates, capacity, etc. of all Plant main
equipment.
5.2.4.
Type and main characteristics, capacity, etc. of auxiliary units
5.2.5.
Quantity supplied, number of units
5.2.6.
Weight data requested in Tender Documents
5.2.7.
Utility requirements
5.3. Manufacturing Capability

5.3.1.
General description of the factory, giving a description of the quality control and
information regarding extent and degree of shop testing of the equipment.
5.3.2.
A list of the major purchasers of main equipment similar to equipment specified effected
in the last five (5) years, indicating for each one:
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x Name and nationality of the purchasing firm

x Date of order, volume of the supply and actual delivery date
5.4. Delivery Times and Programs

5.4.1.
Indicate his best DDU Site delivery time for Foreign Supply and DDP Site delivery time
for Local Supply of Plant and Materials.
5.4.2.
Include chronological bar chart representations of the engineering, manufacturing,

testing, delivery, construction, erection, commissioning and setting to work for each
major item of equipment, and alternatives, to be furnished.
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6. Rejection and Validity of Tenders

6.1.
Submission of a Tender shall constitute agreement that the Tenderer shall have no cause of
action and no claim against the Employer or its officers, employees, successors or
assignees for rejection of the Tender or for any other claim arising out of the rejection of
the Tender.
6.2.
Tenderer agrees that his Tender shall remain valid and irrevocable for a period of ninety
(90) solar calendar days after the Closing Date which may be extended at the Employers
request for another 90 days.
6.3.
Tenderers shall bear all the cost of participation in the tendering irrespective of the
conduct and outcome of tendering process.
6.4.
The Employer shall have the right to reject any comments, opinions and the like of
Tenderers presented under titles such as Comments, Clarifications or similar titles.
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7. Opening and Evaluation of Tenders

7.1.
On the Closing Date, the Tender Committee will open Envelope A to check soundness
of the Tender Guarantee. Tenderers not submitting Tender Guarantee in the form and
amount provided in the Tender Documents may note that the corresponding Envelopes
B and C will not be opened and will be returned to Tenderer or his representative
and/or will be filed.
7.2.
Upon fulfillment of the requirements as per Sub-Clause 7.1 above the Tender Committee
will open Envelopes B. Tenders must be fully in accordance with the requirements of
Tender Documents. Should, upon early examination, the content of Envelope B of any
Tenderer recognize to be defective, incomplete, ambiguous or conditional, the Tender will
be rejected by the Tender Committee and the corresponding Envelope C will not be
opened and will be returned to Tenderer or his representative and/or will be filed. The
Tender Committee will then deliver the contents of Envelope B of not rejected Tenders
to the Technical-Commercial Committee for assessment. The unopened Envelopes C
will be kept in a sealed envelope pending the notification of the result of the technical
evaluation.
7.3.
The Technical-Commercial Committee will study documents contained in envelope B

and will report its views to the Tender Committee.
7.4.
During the evaluation of Tenders, the following definitions apply:

(i) Deviation is a departure from the requirements specified in the Tender
Documents;
(ii) Reservation is the setting of limiting conditions or withholding from complete
acceptance of the requirements specified in the Tender Documents; and
(iii)Omission is the failure to submit part or all of the information or documentation
required in the Tender Documents.
7.5.
For the purpose of this tender a substantially responsive Tender is one that meets the
requirements of the Tender Documents without material deviation, reservation, or
omission. A material deviation, reservation, or omission is one that,
(a) if accepted, would:
(i) affect in any substantial way the scope, quality, or performance of the Works
specified in the Contract; or
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(ii) limit in any substantial way, inconsistent with the Tender Document, the
Employers rights or the Tenderers obligations under the proposed Contract; or
(b) if rectified, would unfairly affect the competitive position of other Tenderers
presenting substantially responsive Tenders.
7.6.
The Technical-Commercial Committee will carry out a detailed technical examination and
evaluation of the Tenders not previously rejected, in order to determine whether the
technical aspects are in compliance with the Tender Documents. In order to reach such a
determination, the Technical-Commercial Committee will examine and compare the
technical aspects of the Tenders on the basis of the information supplied by the tenderers,
taking into account the following all in the judgment of the Technical-Commercial
Committee:
(a) overall completeness and compliance with the Employers Requirements;
deviations from the Employers Requirements; specification of offered Plant and
Materials; conformity of the Plant and services offered with specified performance
criteria; suitability of the Plant and services offered in relation to the environmental
and climatic conditions prevailing at the Site; completeness of scope of supply; and
quality, function and operation of any process control concept included in the
Tender. The Tender that does not meet minimum acceptable standards of
completeness, consistency and detail will be rejected for non-responsiveness;
(b) type, quantity and long-term availability of mandatory and recommended spare
parts;
(c) manufacturers and place of manufacture of equipment. Should a manufacturer or
subcontractor or related place of manufacture be determined to be unacceptable, the
Tender will not be rejected, but the tenderer will be required to substitute an
acceptable manufacturer or subcontractor or place of manufacture without any
change to his offered price. Prior to signing the Contract, the corresponding section
shall be completed, listing the approved manufacturers or subcontractors for each
item concerned;
(d) suitability and completeness of offered plant layout;
(e) Plant operation and production cost calculated based on the Contractors guaranteed
figures filled-in by Tenderers in Performance Guarantees. These figures shall be
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specified with due care, as it may increase the production costs of the proposed
Plant or may cause penalties in case of non-attainment of these figures in Tests on
Completion by the Contractor.
(f) completeness of scope of construction and erection;
(g) training program;
(h) experience of tenderers;
(i) delivery time schedule, construction and erection time schedule, commissioning and
performance test time schedule; and
(j) completeness and clarity of the documentation submitted with Tender.
7.7.
Where alternative technical solutions have been allowed in accordance with Tender
Documents, and offered by the tenderer, the Technical-Commercial Committee will make
a similar evaluation of the alternatives. Where alternatives have not been allowed but have
been offered, they shall be ignored.
7.8.
To assist in examination, evaluation and comparison of Tenders, some technical

clarification meetings may be held with tenderers before conclusion and report
preparation. If a tenderer does not provide clarifications of its Tender by the date and time
set in the Technical-Commercial Committees request for clarification, its Tender may be
rejected.
7.9.
The Technical-Commercial Committee shall examine the technical aspects of the Tender
in particular, to confirm that all requirements specified in the Employers Requirements
have been met without any material deviation or reservation.
7.10. If a Tender is not substantially responsive to the requirements of the Tender Documents, it
shall be rejected by the Technical-Commercial Committee and may not subsequently be
made responsive by correction of the material deviation, reservation, or omission.
7.11. Provided that a Tender is substantially responsive, the Technical-Commercial Committee
may waive any nonconformity in the Tender that do not constitute a material deviation,
reservation or omission all at his discretion.
7.12. Provided that a Tender is substantially responsive, the Technical-Commercial Committee
may request that the Tenderer submit the necessary information or documentation, within
a reasonable period of time, to rectify nonmaterial nonconformities in the Tender related
to documentation requirements. Requesting information or documentation on such
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nonconformities shall not be related to any aspect of the price of the Tender. Failure of the
tenderer to comply with the request may result in the rejection of its Tender.
7.13. Following technical evaluation and examination of Tenders, Tenders will be graded
between 0 and 100 by Technical-Commercial Committee. The minimum acceptable
technical grade shall be determined by and in sole judgment of the Technical-Commercial
Committee.
7.14. Envelopes C of not rejected tenderers will then be opened. Opening of envelopes C of
not rejected Tenders shall not be construed as approval of Tenders and the Tenderers shall
be responsible for any deviation, reservation or omission which shall be found later on in
the Tender as specified in Sub-Clause 7.11 and 7.12.
7.15. The Employer shall conduct the envelope C opening in the presence of tenderers`
designated representatives who choose to attend, and at the address, date and time
announced by the Employer.
7.16. All envelopes shall be opened one at a time, reading out: the name of the Tenderer; the
Price(s), including any discounts and alternative price(s); and any other details as the
Tender Committee may consider appropriate. Only discounts and alternative offers read
out at opening meeting shall be considered for evaluation. All pages of the original Letter
of Tender and Schedule of Prices and Price Breakdown are to be initialed by at least three
representatives of the Tender Committee attending commercial envelopes opening
meeting.
7.17. The Tender Committee shall prepare a record of the commercial envelopes opening
meeting that shall include, as a minimum: the name of the Tenderer and whether there is
an unacceptable technical offer, the tender Price, per lot if applicable, including any
discounts and alternative Tenders. The Tenderers representatives who are present shall be
requested to sign the record. The omission of a Tenderers signature on the record shall
not invalidate the contents and effect of the record. A copy of the record shall be
distributed to acceptable Tenderers, if so requested by them.
7.18. The quoted currencies will be converted into Rials, on the basis of the official exchange
selling rate of Bank Markazi of Iran on the Closing Date of tender.
7.19. The Contractors Multiplication Factor offered by the Tenderer for civil works shall be
multiplied by the civil works cost estimated by the Employer and shall be added to the
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price derived as per Sub-Clause 7.18 as estimated civil construction works price of the
Contract.
7.20. In the Schedules of Prices and Price Breakdown or other detailed price list of equipment
and material the quoted item prices will be used when discrepancies arise in the total price.
7.21. For comparison of Tenders, the total Price as derived according to Sub-Clause 7.19 herein
together with the grade of each tenderer indicated by Technical-Commercial Committee
shall be used for calculation of levelized price of the Tenders based on the following
formula:
LP
100 u C
100 >i u (100 t )@
where
LP: levelized price;
C: offered price included in envelope C;
i: influence factor; and
t: technical evaluation grade.
The influence factor shall be determined by and in sole judgment of the Tender
Committee.
7.22. The tenderers will be ranked ascending from lowest calculated levelized price. The
tenderer with lowest levelized price subject to the condition of Sub-Clause 7.23, will be
the successful tenderer.
7.23. Having two other tenders for construction of DR and Material Handling plants at Bafgh
and Sabzevar under execution simultaneously with this tender and other five similar
projects at Shadegan, Neiriz, Ghaenat, Mianeh and Sepid Dasht awarded to different
Contractors, the Employer reserves the right not to declare the successful tenderer as
recognized per Sub-Clause 7.22, if he has been declared as successful tenderer in one of
the other two tenders or abovementioned five projects. In such a case the second ranked
tenderer may be declared as successful tenderer at sole discretion of the Employer and the
first ranked tenderer shall have no right to claim any damages in this connection.
7.24. When the successful Tenderer is declared, the Tender Guarantee of other Tenderers will
be released, except the Guarantee of the successful Tenderer and the second runner (if
declared). The Guarantee of second runner will be released immediately after the Contract
Clause 7
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signature. The Guarantee of the successful Tenderer shall be extended until the
Performance Security has been submitted to the Employer.
7.25. Should the successful Tenderer refuse to sign the Contract with the Employer within
twenty (20) days after being informed of the Employers decision, the Employer shall then
have the right to encash the Tender Guarantee in its own favour without having any
further obligation to the Tenderer. The same procedure shall be followed in respect of the
second to successful Tenderer.
7.26. Should for any reason, the Employer refrains from concluding a Contract with the
successful Tenderer or the second to successful Tenderer (if declared), then their
respective Tender Guarantees will be returned. Neither the successful Tenderer nor the
second runner (if declared) shall have the right to claim any damages in this connection.
Clause 7
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8. Performance Security, Retention Money, and Defects Notification Period

8.1.
The successful Tenderer shall have to deposit with the Employer two separate
unconditional bank guarantee, as Performance Security, in the form provided in tender
documents. Both unconditional bank guarantees, one amounting to five percent (5%) of
the Iranian Portion of Contract Price and the other amounting to ten percent (10%) of
Foreign Portion of Contract Price, shall be submitted within the time specified in the
Contract Documents.
8.2.
Performance Security shall be valid until the issuance of the Performance Certificate, as
defined in Tender Documents, in accordance with Conditions of Contract.
8.3.
From any invoice of the Contractor regarding Iranian Portion of the Contract Price ten
percent (10%) shall be deducted for good performance of the Contract as Retention
Money. Fifty Percent (50%) of the said Retention Money shall be returned to the
Contractor after issuance of Taking-Over Certificate as defined in Tender Documents. The
remaining fifty percent (50%) shall remain with the Employer until the issuance of
Performance Certificate.
Above mentioned remaining fifty percent shall be paid to the Contractor against a bank
guarantee of the same amount in the form of Annex 5 to Particular Conditions and through
a bank acceptable to the Employer.
8.4.
Defects Notification Period is a twelve-month period commencing from the date of

issuance of Taking-Over Certificate as defined in General Conditions.
Clause 8
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9. Tenderers Understanding of Tender Documents

9.1.
Tenderers shall carefully examine Tender Documents and fully inform themselves as to all
the conditions and matters, which can in any way affect the Works or the cost thereof.
Should a Tenderer find discrepancies in or omissions from, the Employers Requirements
or other documents or should be in doubt as to their meaning, he must notify the Employer
and obtain clarification in writing prior to submitting his Tender.
9.2.
Tenderer shall examine carefully Tender Documents including Employers Requirements

and its related annexes to verify suitability and soundness of technical specifications and
suggest any upgrading or modifications deemed necessary before the Base Date, as after
signature of the Contract the Employer shall not be responsible for any error, inaccuracy
or omission of any kind in the Employers Requirements as originally included in the
Contract and shall not be deemed to have given any representation of accuracy or
completeness of any data or information, except as stated in General Conditions. The
Contractor shall have the full responsibility of supplying the Plant and Materials and
execution of the Works, which shall have to pass the Tests on Completion and fully
comply with all requirements of Contract Documents.
9.3.
Questions received within two weeks of the Closing Date of tender will not be
answered.
9.4.
Verbal clarifications and/or information given by the Employer, its employees or its
representatives will not be binding upon the Employer.
9.5.
Any further information or questions regarding Tender Documents should be sent to the
Employer for the attention of Mr. Ahmad Aminfar, Deputy Managing Director, Planning
and Development of the Employer and simultaneously to TARA TARH Engineering and
Technological Co. for the attention of Mr. Kalantarian.
Clause 9
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10. Modifications of Tender Documents

Modifications of the Tender Documents and extensions of the Closing Date of the Tender, if
necessary, will be made by addenda. Addenda shall be issued in Writing (which is deemed to
include facsimile transmissions) to all Tenderers participating in Tender and shall be binding
upon them. The Tenderer(s) must promptly acknowledge the receipt of any such addenda by
return facsimile.
Copies of every addendum will be sent to each Tenderer. These addenda shall be stamped and
put in Envelope A, as stated in Sub-Clause 4.3 above.
Clause 10
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11. Material and Workmanship

All material and workmanship used by the Tenderer shall be of the highest grade and in
accordance with the requirements of Tender Documents.
Clause 11
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12. Payments
Tenderer's attention is drawn to the method and terms of payment set out in the Particular
Conditions.
Clause 12
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13. Obligation of Tenderers

Participation in the Tender shall be considered as the Tenderers acceptance of all terms and
conditions of this Tender.
Clause 13
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14. Clarification of Tender

In the examination, evaluation and comparison of the Tenders, the Employer may at his
discretion, ask any Tenderer for a clarification of his Tender. All responses to the requests for
clarification shall be in writing, and no change in the total price or the substance of the Tender
shall be permitted.
The Employer shall have the right to accept or reject any part of Tender which includes the
Tenderers opinion or suggestions under the title of Clarification, Comments or other titles.
Clause 14
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&T h l i l
15. Confidentiality
All engineering data, designs, drawings, specifications and other documents provided to
Tenderers or made by Tenderers in connection with this Tender are confidential and shall not
without prior written approval of the Employer be used for any purpose whatsoever other than in
direct connection with this Tender. Access to this information shall be limited to those
employees of Tenderer who reasonably are required to be aware of and shall bind them as well
as any third party to strictly keep them confidential.
Clause 15
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&T h l i l
16. Retendering
If number of tenderers participating in the tender falls below three participants tendering shall be
repeated
Clause 16
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Annex 1
Form of Tender Guarantee
Annex 1
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Bank Guarantee Number_____________________________

Whereas according to Invitation to Tender dated ____________ concerning the Baft DR &
Material Handling Plant Project of National Iranian Steel Company (whom the tender
documents defines as the Employer), Messrs _______________ and/or Mr. _____________
(hereinafter
called
the
Principal)
Address____________________
Director(s)
____________________________ have decided to participate in the said tender and a guarantee

for Euro __________________________________ should be submitted by the tenderer, this
bank hereby irrevocably and unconditionally guarantees the Principal vis-a-vis the Employer
(hereinafter called the Beneficiary).
Should the Beneficiary/Employer inform this bank in writing that:
(a) the Principal has, without your agreement, withdraw his offer after the latest time
specified for its submission and before the expiry of its period of validity, or
(b) the Principal has refused to accept the correction of any deviation from tender documents
or errors in his offer in accordance with such conditions of tender, or
(c) the Principal has been recognised as successful tenderer or the second runner but have
failed to sign the relevant Contract or submit the required performance bond under the
Contract within the specified period
we undertake to pay immediately upon the first notification Euro ___________________ to the
Beneficiary without it being necessary for the latter to prove the refusal or produce any reason,
issue a declaration or act through administrative or judicial channels.
This guarantee is valid up to the close of business on (the date 90 days after closing date)
_________________ and will be extended for three (3) months if asked for by the Beneficiary.
Should the bank not be in a position or do not agree to extend this guarantee and/or if the
Principal fails to provide the means for its extension and make the bank agree to such extension
then the bank undertakes to pay the amount referred to above to or to the order of the Beneficiary
without being necessary for the latter to make a new claim.
Date ____________________________
Bank ___________________________
Annex 1
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Annex 2
Declaration of Full Acceptance of

Tender
Annex 2
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Hereby we confirm that we have received the complete Tender Documents and any additions and
modifications to such documents (if any) as listed hereunder:
x
Instructions to Tenderers and its related Annexes
the Contract Agreement
the Particular Conditions and its related Annexes
the General Conditions,
the Employers Requirements and its related annexes consisting of:

Annex 1, Specification and Data Sheets,
Annex 2, Engineering Standards, Fluid Systems,
Annex 3, Engineering Standards, Electrical,
Annex 4, Engineering Standards, Instrumentation and Control,
Annex 5, Engineering Standards, Material Handling Systems,
Annex 6, Engineering Standards, General,
Annex 7, Engineering Standards, Packing, Marking and Forwarding
Letter of Tender
Schedule of Prices and Price Breakdown
All addendums [mentions each of them with number and date]
We have examined all the Tender Documents and additions, omissions and modifications to such
documents made by the Employer before closing date of tender and are fully familiarized with
the terms and conditions of the Tender Documents, and further confirm that the offer presented
by us is substantially responsive and fully complies with all terms and conditions of Tender
Documents and there are no material deviation, reservation or omission of whatsoever nature to
the Tender Documents and bind ourselves to rectify or withdraw any possible nonconformity
which may be discovered later on to the satisfaction of the Employer.
We understand that if {insert the joint venture/consortium} be declared as successful Tenderer
and we request any modification or raise any comments, clarification, etc., it shall be the right of
the Employer to consider such act as refusal of Tenderer to sign the Contract and treat the
Tenderer as provided for in Sub-Article 7.25 of Instructions to Tenderers.
____________________________________
Authorized signature of Tenderer
Annex 2
17-Sep-07
Rev 0

TA-143-D00-G-TD001 - 0 - Instructions To Tenderers PDF

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National Iranian Steel Co.

Baft Steel Complex

DR & Material Handling Plant

DR & Material Handling Plant Project

Baft Steel Complex

Procedure for Preparation and Submission of Tender

Information to be Included in Tender

Rejection and Validity of Tender

Performance Security, Retention Money and Defect Notification

Modification of Tender Documents

Material and Workmanship

Annex 1: Form of Tender Guarantee

Annex 2: Declaration of full acceptance of Tender

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

2.10. Tests on Completion shall be done by the Contractor.

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Instructions to Tenderers and its related Annexes

the Contract Agreement and its related Annex

the Particular Conditions and its related Annexes

the General Conditions,

the Employers Requirements and its related annexes consisting of:

Schedules of Prices and Price Breakdown

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Baft Steel Complex

4. Procedure for Preparation and Submission of Tenders

4.2. Envelopes A, B and C

4.3. Envelope A shall contain

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Declaration of full acceptance of tender as per Annex 3 to this Instructions to

Completed signed Affidavit Form (Annex 1 to Particular Conditions)

A copy of the Contractors Registration Certificate, showing the authorized signature

The joint venture or consortium Agreement (if any)

The Tenders shall include the followings:

Tenderers technical proposal

Information as Clause 5 below

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Baft Steel Complex

4.4.11. Training service proposal

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Quoted prices shall be fixed and not subject to escalation.

4.6. Signature of Tender

4.7. Submission of Tender

The said Envelopes A, B and C shall be marked as follows:

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Baft Steel Complex

4.8. Interpretation of Tender

Doc No.: TA-143-D00-G-TD001

DR & Material Handling Plant Project

Baft Steel Complex

5. Information to be Included in Tender

5.1. List of Equipment and Material