TA-143-D00-G-TD001_0_Instructions to Tenderers.pdf

National Iranian Steel Co.

Baft Steel Complex

DDRR && MMaatteerriiaall HHaannddlliinngg PPllaanntt

PPrroojjeecctt

“Instructions to Tenderers”

Table of Content Doc No.: TA-143-D00-G-TD001 17-Sep-07 Rev 0

TARA

TARHE i ii && T h l i ll

NISCO

Baft Steel Complex

DR & Material Handling Plant Project

Instructions to Tenderers Page 1 of 32

INSTRUCTIONS TO TENDERERS

Table of Contents Page

1. Introduction 2

2. Scope of Tender 3

3. Tender Document 5

4. Procedure for Preparation and Submission of Tender 6

5. Information to be Included in Tender 11

6. Rejection and Validity of Tender 13

7. Evaluation of Tender 14

8.Performance Security, Retention Money and Defect Notification

Period20

9. 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

Clause 1 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.


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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 Contractor’s 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 Contractor’s 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 Contractor’s 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

country’s 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”

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 Employer’s 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”

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 Contractor’s Registration Certificate, showing the authorized signature

and for Foreign companies a copy of the Contractor’s 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:

Power of Attorney of those who have signed the Tender (duly signed by the legal

representative of the Tenderers)

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. Tenderer’s technical proposal

4.4.8. Information as Clause 5 below

4.4.9. Manufacturer’s 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. 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 Contractor’s 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:

Name of Tenderer

Address of Tenderer

Subject of Tender

Tender Closing Date

Envelope “A”’ or “B” or “C” as appropriate


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4.7.2. 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 Employer’s 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 Employer’s

Requirements.

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

Tenderer cannot nominate a single sub-supplier, maximum three alternative sub-

suppliers 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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Name and nationality of the purchasing firm

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 Employer’s

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

Employer’s rights or the Tenderer’s 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 Employer’s Requirements;

deviations from the Employer’s 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 Contractor’s 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 Committee’s 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 Employer’s 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 Tenderer’s 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 Contractor’s 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:

)100(100

100

ti

CLP

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


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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 Employer’s 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.


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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.


TARA


NISCO

Baft Steel Complex



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 Employer’s 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 Employer’s 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 Employer’s 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.


TARA


NISCO

Baft Steel Complex



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.


TARA


NISCO

Baft Steel Complex



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.


TARA


NISCO

Baft Steel Complex



12. Payments

Tenderer's attention is drawn to the method and terms of payment set out in the Particular

Conditions.


TARA


NISCO

Baft Steel Complex



13. Obligation of Tenderers

Participation in the Tender shall be considered as the Tenderer’s acceptance of all terms and

conditions of this Tender.


TARA


NISCO

Baft Steel Complex



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

Tenderer’s opinion or suggestions under the title of “Clarification”, “Comments” or other titles.


TARA


NISCO

Baft Steel Complex



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.


TARA


NISCO

Baft Steel Complex



16. Retendering

If number of tenderers participating in the tender falls below three participants tendering shall be

repeated

Annex 1 Doc No.: TA-143-D00-G-TD001 17-Sep-07 Rev 0

TARA


NISCO

Baft Steel Complex



Annex 1

“Form of Tender Guarantee”


TARA


NISCO

Baft Steel Complex



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 ___________________________


TARA


NISCO

Baft Steel Complex



Annex 2

“Declaration of Full Acceptance of

Tender”


TARA


NISCO

Baft Steel Complex



Hereby we confirm that we have received the complete Tender Documents and any additions and

modifications to such documents (if any) as listed hereunder:

Instructions to Tenderers and its related Annexes

the Contract Agreement

the Particular Conditions and its related Annexes

the General Conditions,

the Employer’s 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

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