Contract for the Sale and Purchase of Hyundai Grand i10 Sedan and

Hyundai Creta modes Vehicles

This agreement is made and entered into between Oromia Insurance Company S.C
(hereinafter called the Buyer), whose address is: Addis Ababa, Kirkos Sub City, Woreda 1,
and House No. OIB Building 407, Tel. 0118-95-93-71/0115-57-21-29, E-mail
Oromiainsurance@ethionet.et P.O.Box 10090

And

Marathon Motor Engineering PLC (MME) (hereinafter called the Seller), whose address is
Addis Ababa, Yakka Sub city, Woreda 11 House No. 945 Tel:0116-61-21-03/fax 0116-63-48-
63 P.O.Box 20050/1000 Addis Ababa.

Whereas, the Buyer is desirous to purchase 06 (six) units of Hyundai Grand i10 Sedan and
Hyundai Creta model Vehicle as specified under Article Two of this contract;

Whereas, the Seller expressed its intention to sell the Hyundai Grand i10 Sedan and
Hyundai Creta model vehicles in their technical and financial proposals with ref
MMV/00778/15 dated August 29,2015 in response to the bid invitation by the Buyer;

Now, therefore, in consideration of the above, as well as the terms and conditions herein
contained, the parties agreed as follow:

Article One: Definitions

1.1 Vehicles shall mean Hyundai Grand i10 Sedan and Creta models specified under
Article two of this contract;
1.2 Party or parties shall mean either the Buyer or the Seller and Buyer and Seller
respectively;
1.3 Delivery shall mean the acceptance of the Vehicles by the Buyer without any deviation
from technical specification, the terms and conditions of this contract.

Article Two: Description of Vehicles, Quantity, Unit, and Total Prices

2.1 The Buyer has agreed to buy from the Seller and the Seller has agreed to sell to the Buyer
the Vehicles as specified in the terms and conditions in technical and financial offer of
the buyer as per the price and quantity stated in the table below.
 Unit price without Total price without
No. Description of Vehicles Qty
VAT(Birr) VAT(Birr)
Hyundai Grand i10 Sedan 06 517,000.00 3,102,000.00
Immediate Delivery
Hyundai Grand i10 Sedan 04 517,000.00 2,068,000.00
Hyundai Creta 01 865,217.39 865,217.39
Sum 2,933,217.39
VAT 15% 439,982.61

Total Price Including VAT 15% 3,373,200.00

2.2 The Hyundai Grand i10 Sedan and Creta models vehicles to be delivered shall be in
accordance with the technical and financial offer submitted by the Seller.

Article Three: Price and Mode of Payment

3.1 The contract price for the Vehicles described under Article two is Birr 4,562,300.00 (Four
Million Five Hundred Sixty Two Thousand and three hundred only) including Value
Added Tax (VAT). This total price does not include the 2% of vehicle registration fee,
Title Deed Certificate fee, and Plate numbering charge and other ( if any), which all to be
covered the Buyer.
3.2 The Buyer shall pay 100% of the contract amount for 4 (four) units of Hyundai Grandi10
and 1(one) unit of Hyundai Creta, currently in stock, Birr 3,373,200.00 (Three Million
Three Hundred Seventy Three two Hundred Birr only) upon confirmation and signing
of this contract by authorized officials of the parties in agreement.
3.3 The Buyer shall effect payment of the price of the delivered Vehicles within five working
days after the delivery of the Vehicles and completion of inspection as per the terms and
conditions of this contract.

Article Four: Place and Time of Delivery

4.1 The Seller shall deliver4 (four) units of Hyundai Grand i10 and 1(one) unit of Hyundai
Creta model Vehicles immediately after signing of this contract.

4.2 The seller shall deliver the remaining 2 (Two) units of Hyundai Grand i10within 60 to 90
calendar days after signing of this contract.

4.3 The Seller shall deliver the Vehicles at Buyers warehouse.

4.4If the Seller fails to supply Vehicles as per this contract, the Seller shall refund payments
it received and also obliged to compensate the Buyer any damages the Buyer may
suffer.
Article Five: Inspection and Acceptance
5.1 The Buyer shall inspect the conformity of the Vehicles with the specifications in the
contract at delivery.

5.2 The inspection shall be made in the presence of the Buyer and the Seller or their legal
representative/s at the warehouse of the Buyer specified under Article 4.2

5.3 The Seller shall advise the Buyer at least 2 (two) days in advance that the Vehicles are
ready for delivery.

5.4 If the Vehicles do not meet the agreed specifications, when inspected, the Buyer has the
right to reject the Vehicles that/those does not/do not meet the specifications.

5.5 Vehicles rejected as per sub Art. 5.4 above shall be replaced within five working days at
the expense of the Seller; delay after this time limit authorizes the Buyer to reject
acceptance of the defective Vehicles and claim damage for all the consequences.

Article Six: Warranty

6.1 The Seller warrants that all Vehicles delivered under this contract shall have no defect
arising from any kind of defects and workmanship in accordance with the Hyundai
Company policy for a period of 24 months or 50,000 km, whichever comes first from the
date of delivery (as per the warranty certificate attached)

6.2 The warranty period shall start to run as of the date of delivery.

Article Seven: obligations of the Parties

7.1 Obligations of the Seller;

The Seller shall have the obligations to;

7.1.1 Deliver the vehicles in conformity with their specifications at the time and place of
delivery as agreed in this contract;

7.1.2 Demonstrate the proper functioning at presence of Buyers inspectors the Vehicles
during delivery;

7.1.3 Give familiarization training for the operators and technicians of the Buyer free of
charge;

7.1.4 Make good the defect/s within the agreed time in this contract;
7.1.5 Respects warranty clauses and makes necessary corrections to make intact the new
brand Hyundai Grand i10 sedan and Creta model Vehicles for the failure of the vehicles
due to poor workmanship and defective materials during the warranty period;

7.1.6 Give proper after sales service when demanded by the Buyer at the Buyers cost;

7.1.7 Keep stock of mandatory spare parts required to run the Hyundai Grand i10 Sedan
and Creta model vehicles and make available to the Buyer at price;

7.1.8 Make good the damages that may arise as a result of delay in delivery or defect in
Hyundai Grand i10 Sedan and Creta models Vehicles in all conditions that may hamper
the activities of the Buyer;

7.1.9 Give receipts for the payments effected by the Buyer;

7.1.10inform timely the Buyer that the Hyundai Grand i10 Sedan and Creta model Vehicles
are ready for delivery as agreed in this contract;

7.1.11provides free inspection service for the first 1000 kms and labor free service for the
first 5000 kms in the warranty period in accordance with the manufacturing manual of
vehicles; however the Buyer shall pay for the cost spare parts;

7.1.12 shall grant a 15% discount on spare parts during repair/maintenance for vehicle
supplied only through the Seller, but does not include body parts required due to
accident.

7.2 Obligation of the Buyer

The Buyer shall have the obligations to;

7.2.1 Pay the agreed price at the agreed time after the Vehicles are delivered & inspected
and conform to the required technical specification and quality standard of the vehicle;

7.2.2 Accept the Vehicles from the Seller when the Vehicles are inspected and proved that
they meet the agreed specifications in the bidding documents;

7.2.3 Inform immediately in writing when the Vehicles fail to function properly within the
warranty time in the contract;

7.2.4 Respond immediately to the request of the Seller for delivery;

7.2.5 Give acceptance letter to the Seller when the Vehicles are in accordance to the
specifications agreed in the contract.

7.2.5 Shall pay to the seller contract amount of Birr 1,189,100.00 (One Million One Hundred
Eighty Nine Thousand one Hundred only) including VAT of the remaining 2 (Two)
 units of Hyundai Grand i10 sedan vehicles with in five working days after official
notification of the seller.

Article Eight: After Sales

8.1 The Seller shall provide free inspection at the first 1,000 Km and labor charge free for
first 5,000 Km service; however the buyer shall pay for the spare parts.

8.2 The Seller shall grant a 15% discount on spare parts during repair/ maintenances for
vehicles supplied by the Seller. This does not include body parts required due to accident.

8.3 The Seller provided 24 months or 50,000 Kms warranty, whichever comes first.

Article Nine: Dispute Resolution Mechanisms

9.1 In the event that any dispute arises between the parties from non-performance, delay in
delivery, or noncompliance with the terms and condition set forth in this contract, the
parties agreed to solve the dispute/s by arbitrators to be elected one by each party;

9.2 Both elected arbitrators shall nominate one chairperson. In the event they fail to elect
chairperson the court may nominate a chairperson;

9.3 The decision of the arbitrators may be appealable;

9.4 The aggrieved party shall notify the defaulting party in writing within 3 days of its
knowledge of the problem; the defaulting party shall also reply in writing its choice of
an arbitrator within 3 days after receiving the letter from the aggrieved party.

Article Ten: Applicable Law

All matters originating from this contract shall be construed in accordance with and
governed by Ethiopian laws

Article Eleven: Miscellaneous

11.1 Any amendments to the clauses of this contract shall be executed only in writing,
sealed and signed by authorized representative of both parties;

11.2 Bid documents of the Buyer and technical proposal of ref MMV/00778/15 dated
August 29, 2015 shall be integral part of this contract;

11.3 Notice and communication under this contract shall be made in writing and through
registered mail or upon personal delivery.
11.4 Dates and days shall be computed according to the Gregorian calendar.

In witness thereof, we, parties to this contract, have signed this contract in Addis Ababa on
November 04, 2015.

For and on behalf of the Seller For and on behalf of buyer

Marathon Motor Engineering PLC Oromia Insurance Company S.C

Name Melakmu Asefa Name Tesfaye Desta

Title: Chief Excusive Officer (CEO) Title Chief: Executive Officer (CEO)

Signature__________________________ Signature__________________________

Date______________________________ Date_______________________________

Witnesses

1. Name _______________ Sign_________________ Date__________________________

Address: Sub City_____Woreda_____House No_____ Tel. No. __________________

2. Name _______________________ Sign_________________ Date___________________

Address: Sub City _____________Woreda ___ House No. _____Tel.No. ____________

3. Name _______________________ Sign_________________ Date___________________

Address: Sub City _____________Woreda ___ House No. _____Tel. No. ____________
Complete a Payment Voucher ensuring the deduction of any advance payments
already made and any contractual penalties incurred by the Supplier

PAYMENT FOR WORKS

8.16.1 Payment for works contracts will normally be made against Payment Certificates
approved by the supervising engineer and Completion Reports of the Inspection and
Acceptance Committee.
8.16.2 For all works contracts, materials delivered to the site but not yet used will be
excluded from the measurement approved and the value of Payment Certificates.
8.16.3 Supervision and approval of the takeover of buildings and construction works is the
responsibility of the Ministry of Works and Urban Development whose issuance of a
Certificate of Completion is required before payments due to the Contractor may be
made by the public body.
8.16.4 The Supervising Engineer will ensure that:
8.16.4.1 the Ministry of Works and Urban Development is represented on the Inspection and
Acceptance Committee for final takeover of the Works and that the MOW
representative signs the Certificate of Completion;
8.16.4.2 any required retention specified under the contract is deducted from the value of the
Certificate before payment;
8.16.4.3 agreed deductions in respect of the repayment schedule for any advance payment are
deducted from the value of the Certificate before payment;
8.16.4.4 on issue of an interim takeover certificate by the Inspection and Acceptance
Committee, part of any retention monies held may be paid to the contractor if
specified in the contract;
8.16.4.5 on issue of a final takeover certificate by the Inspection and Acceptance Committee
issues, the balance of any retention monies is paid to the contractor.

CONTRACT PERFORMANCEMONITORING OBLIGATIONS

8.24.1 The Consultant, Supplier or Contractors performance against the contract must be
monitored on a routine basis.
8.24.2 The Procurement Unit or Project Manager will:
8.24.2.1 notify the Supplier or Contractor immediately in writing of any failings in
performance and seek an agreed solution;
8.24.2.2 In the case of a consultant this takes the form of comments on consultancy reports
8.24.2.3 update the contract file and Contract Register regularly to reflect the monitoring of
performance;
8.24.2.4 ensure that the head of the public body is informed of any serious failings in
performance.
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8.25 MONITORING AND PERFORMING THE PUBLIC BODYS OBLIGATIONS
8.25.1 The Contract may impose certain conditions on the public body which, if not
complied with, may affect the Supplier or Contractors performance including:
8.25.1.1 Payment of stage payments within the contracted time limits;
8.25.1.2 Assistance with import licenses etc;
8.25.1.3 Approval of drawings or reports within the set time periods;
8.25.1.4 Provision of storage or working facilities and access permits;
8.25.1.5 Conditions relating to the suppliers provision of staff services (e.g. letters of
invitation for visas, provision of office space, etc.);
8.25.1.6 Ensure that all such obligations of the public body are planned and performed without
undue delay.
8.26 DELAYS IN PERFORMANCE
8.26.1 Delivery of goods, construction of works and the performance of services should be
completed by the Supplier or Contractor in accordance with the time schedule
prescribed in the Schedule of Requirements. Where this is not the case:
8.26.1.1 In accordance with the contract conditions, the Supplier, Contractor, or its
subcontractor, must notify the public body in writing of the conditions delaying
performance, including full details of the delay, the likely duration and the cause(s).
8.26.1.2 The public body will immediately assess the situation, and may at its discretion
extend the Supplier or Contractor's time for performance, with or without liquidated
damages as specified in the Contract.
8.26.1.3 If the time for performance is extended, both parties shall ratify such extension by a
formal addendum to the Contract subject to approval by the Procurement Unit.
8.26.2 A delay by the Supplier or Contractor in the performance of his obligations may
render him liable to liquidated damages if specified in the contract document, except
where:
8.26.2.1 the delay is as a result of Force Majeure;
8.26.2.2 there is no provision for liquidated damages in the contract;
8.26.2.3 an extension of time is agreed between the two parties without the application of
liquidated damages.
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8.26.3 The Procurement Unit or Project Manager will:
8.26.3.1 Refer to the relevant clauses in the General or Special Conditions of Contract for the
procedure to be followed to apply, calculate and claim liquidated damages.
8.26.3.2 Update the Procurement Dossier and Contract Register to reflect any delays in the
suppliers performance.
8.26.3.3 Notify the end-user department immediately of all such delays.
8.27 RESOLUTION OF DISPUTES
8.27.1 Most minor disputes may be resolved by sensible discussion and agreement between
the responsible officer and the Supplier or Contractor to rectify the cause of
complaint.
8.27.2 Any formal written complaints received from a Supplier or Contractor should be fully
investigated and referred to the head of the public body to authorize correspondence
or formal negotiations with the Supplier or Contractor.
8.27.3 Action:
8.27.3.1 Examine the Contract carefully to be aware of all contract conditions relating to the
resolution of Disputes.
8.27.3.2 Determine if the public body is at fault or partly at fault, and if so, take appropriate
action to rectify the problem.
8.27.3.3 Invite the Supplier or Contractor to a formal meeting, to discuss the issues and try to
agree a compromise acceptable to both parties. Ensure that accurate written Minutes
are kept of any such meeting. If an agreement is reached which changes any of the
conditions of the Contract, approval of the head of the public body is required before
the agreement can be implemented.
8.27.3.4 Only those public bodies which are allowed by law to proceed to arbitration can do so
by specifying in the contract. All other public bodies are allowed to use conciliation
as it may be specified in the contract otherwise the parties may seek redress through
the courts if no initial agreement is reached and negotiation by the head of the public
body or his/delegate fails.
8.27.4 On contracts funded by a donor, ensure that the donor is kept informed of disputes
and seek advice, and a formal no objection where required, before any contract
addendum is signed.
8.28 TERMINATION OF THE CONTRACT
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8.28.1 The parties to the contract normally have the right to terminate the contract, but to
protect the public body; advice of the PPA may be sought if the public body is
considering such action. For donor funded procurements, donor no objection must
be sought before any action to terminate a contract is initiated.
8.28.2 Contracts should not normally be terminated without examining all possible
alternatives, unless the termination is agreed by all parties to the contract.
8.28.3 Examine the Contract carefully to be aware of all contract conditions and penalties
relating to the Termination of Contract.
8.29 CONTRACT AMENDMENT
8.29.1 Contract amendment may become necessary as a result of the application of price
variations specified in the contract, the resolution of disputes, additional or reduced
requirements by the public body, agreements to extend the time schedule, or from
accepted increases or decreases in prices. The contract may allow the public body to
modify contract values by a pre-determined percentage when this is in the public
interest and essential for the work of the public body.
8.29.2 All other amendments to costs, quantities, time periods, and other terms and
conditions of the contract must be approved by the head of the public body and
confirmed in a formal contract amendment or addendum.
8.29.3 The Procurement Unit/Project Manager will:
8.29.3.1 identify and agree with the Supplier or Contractor the specific clauses in the contract
which need to be changed, and the new values or terms and conditions which are to
apply;
8.29.3.2 prepare a draft contract amendment document for approval by the Procurement unit
together with a report justifying the reasons for the amendment.
8.29.4 Following approval by the head of public body:
8.29.4.1 record any change in contract value in the Commitment Register and in the Contract
Register;
8.29.4.2 record any other contractual changes in the Contract Register;
8.29.4.3 obtain from the supplier/contractor any necessary addition to the performance
security;
8.29.4.4 arrange for signature of the contract amendment in four copies;
8.29.4.5 distribute copies in the same way as the original contract.

16.25.2 Performance Security

For every contract, except for procurements executed by means of request for
quotation or procurement of rental services, the successful bidder has to provide
performance security within 15 days from signing a contract in the amount of at
least 10% of the total contract price, in the mode and manner prescribed in
article 16.16.4 of the Directive.
16.27.4 Liquidated Damages
1. The liability of the supplier for delay in performing his/its obligation under the
contract shall be as follows:-
2. He/it shall pay a penalty of 0.1% or 1/1000 of the value of undelivered item
for each day of delay,
3. The cumulative penalty to be paid by the supplier shall not exceed 10% of
the contract price.
16.27.6 Signing a Contract by Supplier
Unless an exceptional situation arises, the successful bidder has to sign a
contract with the public body within 15 days of notification of award.
16.27.7 Signing a Contract by Public Body
The public body shall not sign a contract before 7 working days from the date
bidders are notified of the result of their bid or of any complaint against the bid
proceeding.
Rebate

Announcing the successful bidder

4.2.16.1 Public bodies shall announce the result of a bid evaluation to all bidders alike at the
same time. The information to be disclosed to the unsuccessful bidders shall be the
reason why they did not succeed in their bid and the identity of the successful bidder.
4.2.16.2 A letter of award to be sent by the public body to a successful bidder shall not
constitute a contract between him and the public body. A contract shall be deemed to
have been concluded between the public body and the successful bidder only where a
contract containing detailed provisions governing the execution of the procurement in
issue is signed.
4.2.16.3 A letter of contract award to be sent to a successful bidder shall contain the following
information:
(a) That the public body has accepted his bid;
(b) The total contract price;
(c) The amount of the performance security the successful bidder is required to
furnish and the deadline for providing such security.
4.2.16.4 Where the successful bidder can not or is unwilling to sign a contract, the public body
may either declare the bidder submitting the second most preferred bid the successful
bidder or invite such bidder to sign a contract or advertise the bid afresh by assessing
the benefit of the two options.
4.2.16.5 The public body shall return to the bidders their bid security on the following
conditions:
(a) If the successful bidder has signed contract and furnished the required contract
security;
(b) If the bid validity period initially offered by a bidder not willing to extend
such period has expired or if a bidder is unsuccessful.
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4.2.16.6 In respect of procurements the value of which corresponds to or is greater than that
specified in sub-article 6.5 of the Directive, Public body shall disclose the information
to the public by filling it in the form provided for this purpose and posting it on the
PPAs website within 5 days of signing the contract after award
4.2.16.7 For other contracts, contract award announcements shall be published by the public
body on its Notice Board and where applicable on the website of the public body.
4.2.17 Signing of Contract
4.2.17.1 Public body has to sign with a supplier, a contract containing the general conditions
of contract forming an integral part of the bidding document and the special
conditions of contract to be agreed upon by and between it and the supplier.
4.2.17.2 Unless a contract is signed between the public body and the supplier, mere
notification of award doesnt constitute a contract between the public body and the
supplier.
4.2.17.3 The contract to be signed between the public body and the supplier shall clearly state
the obligations of the two parties and incorporate provisions, inter alia, for the
following matters
4.2.17.4 Unless an exceptional situation arises, the duly authorized officer of the successful
bidder has to sign a contract with the public body within 15 days of notification of
award.
4.2.17.5 Before signing the contract the public body shall verify the authenticity of the
performance security submitted by a bidder, by sending a written request to the
branch of the bank issuing the bank draft, pay order or irrevocable bank guarantee. If
a performance security is not found to be authentic, the public body shall proceed to
take measures against the bidder as stated under Proclamation and Directive under
Corrupt, Fraudulent, Collusive or Coercive Practices.
4.2.17.6 If the successful Bidder fails to provide any required performance security or fails to
sign the contract as stated in the bidding documents, a public body shall proceed to
award the contract to the next lowest evaluated bidder, and so on by order of ranking.
However, such action shall only be taken if the evaluated cost of the bid is acceptable
to the public body. When the point is reached whereby all evaluated costs of the
remaining responsive bids are significantly higher than that of the official estimate or
budget provision or prevailing market price, the public body may take action in
accordance rejection of all bids, proposals and quotations. If all bids are rejected, the
public body may proceed for re-Bidding using revised Bidding Document, and giving
wide advertisement as per the Directive.
4.2.17.7 The Estimated Procurement Lead Times for guidance in preparing procurement plans
are provided in Appendix 9.
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4.2.17.8 Guidance notes on Incoterms, and insurance terms used in procurement are provided
in Appendix 10.
4.2.17.9 A Flow Chart on process to be followed and activities to be undertaken for
procurement of goods & related services and works & physical services under Open
Bidding Method is attached at Appendix-11.

NEGOTIATION AND CONTRACT AWARD FOR PROPOSALS

5.13.1 A public body may negotiate with the successful Consultant only on the following
components of its proposal:
5.13.1.1 content of the consultancy work;
5.13.1.2 methodology applied to accomplish the work;
5.13.1.3 work plan;
5.13.1.4 the quality of the human power to be engaged by the consultant;
5.13.1.5 the material to be used by the consultant in the performance of the service
5.13.1.6 training inputs (if training is a major component);
5.13.1.7 the content of the report to be submitted by the consultant as well as the manner of
submitting such report; and
5.13.1.8 other issues that may arose from the performance of the service.
5.13.2 It is strictly forbidden for a public body to either seek or permit changes in the rates
quoted for staff remuneration proposed by the Consultant in all methods where the
Consultants price uses a factor in the evaluation.
5.13.3 Negotiations shall include discussions of the TOR, the approach and methodology,
organization and staffing, work plan and the public bodys inputs. Special attention
shall be paid to defining clearly the inputs and facilities offered by the public body.
The negotiations shall not significantly alter the original TOR otherwise the integrity
of the negotiations, the content and findings of the technical evaluation report, may be
questioned.
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5.14.1. The essential requirements of the RFP and the quality of the work to be delivered by
the consultant are not negotiable. Major reductions in work inputs shall not be made
just to meet the budget. The final TOR and the agreed methodology shall be
incorporated into the Description of Services, which shall form part of the contract.
5.13.4 The selected consultant shall not be allowed to substitute key staff, unless both parties
agree that delay in the finalization of the selection process has made such changes
necessary or that such changes are critical to meet the objectives of the assignment. If
public bodies include a realistic proposal validity period in the RFP and carry out an
efficient and prompt evaluation, the risk of consultants needing to make changes to
key personnel shall be minimized.
5.13.5 If this is not the case and if it is established that the key staff were offered in the
proposal without confirming their availability, the firm may be disqualified and the
negotiations may be opened with the next ranked firm. The key staff proposed for
substitution shall be approved by the head of a public body and shall have
qualifications equal to or better than the key staff initially proposed.
5.13.6 Under QCBS, SFB and LCS proposed unit rates for staff-months shall not be
negotiated, since these have already been a factor of selection in the cost of the
proposal. A limited scope of negotiations could include the number of air tickets
foreseen, exceptionally high per diem rates, replacing a Consultant, providing offices
space, vehicles and telecommunications with those that can be provided by the public
body.
5.13.7 The Consultant receiving an award of contract shall be required to submit any
performance security. A public body may require a consultant to furnish professional
indemnity insurance in respect of consultancy service such consultant renders to the
public body under a contract, where the public body finds it appropriate to make
provision for any damage it may sustain as a result of possible default on the part of
the consultant.
5.13.8 If the negotiations fail to result in an acceptable contract, the public body shall
terminate the negotiations and invite the next ranked Consultant for negotiations after
due consultation with the head of a public body or an officer authorized by him/her or
an approving authority, prior to taking this step. The Consultant shall be informed of
the reasons for the termination of the negotiations. Once negotiations are commenced
with the next ranked Consultant/consulting firm, the public body shall not reopen the
earlier negotiations. After negotiations are successfully completed, the public body
shall promptly notify other consultants on the short-list that they were unsuccessful in
their proposals. At this point the financial envelopes of non-technically responsive
Consultants should be returned to them unopened.
5.13.9 In the event that a second negotiation should fail, the public body shall negotiate with
the next ranked responsive Consultant and so on, until a successful contract has been
concluded, subject to the right of the public body to reject all proposals in accordance
with rejection of all bids, proposals and quotations and to reissue the RFP using new
documents, if necessary.
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5.13.10 All public bodies issuing award of contract above the threshold value specified in
Appendix-1 shall intimate the PPA for publication of the award in the PPA website.
5.14 OTHER SERVICES
5.14.1 When evaluating proposals for non-consulting services, such as cleaning services,
security or guarding services, car hire, etc, the evaluation shall be undertaken against
criteria that are stated in the Bidding Document. For such bids there may be three
criteria, weighted as follows: -
5.14.1.1 Technical attributesthese attributes will distinguish between essential and desirable
attributes - 50-60%.
5.14.1.2 Tendering price - 30-40%; and
5.14.1.3 Other aspects, such as delivery time, terms of payment, capacity to render the
services, facilities of the contractor - 10-20%.

CONTRACT EFFECTIVENESS
8.2.1 Although the Contract Form may have been signed by both parties, the legal
effectiveness of the Contract may be dependent on one or more of the following
conditions:
8.2.1.1 Receipt by the public body of the Performance Security;
8.2.1.2 Receipt by the public body of an Advance Payment Security;
8.2.1.3 Receipt by the Supplier/Contractor of the Advance Payment; or
8.2.1.4 Receipt by the Supplier/Contractor of an acceptable Letter of Credit.
8.2.2 Action:
8.2.2.1 If the Supplier or Contractor fails to provide the Performance Security, and fails to
respond to a written reminder, seek the advice of the Procurement Unit for a decision
as to whether the contract may be cancelled and awarded to another bidder;
8.2.2.2 Ensure that any Advance Payment specified in the contract is paid immediately when
the Advance Payment Security is received from the Supplier or Contractor;
8.2.2.3 Ensure that any Letter of Credit required is issued promptly.