Title:

DocID:

DBAE256592

Revision:

Harrison Erhie / 06-Jan-2017

Status:

Approved

Approved by: Harrison Erhie / 06-Jan-2017

Pages:

1 (11)

Invitation to tender

Created by:
Energy Solutions

Project:

P/16049 - Geita Gold Mine Power Project

Description:

Subcontracting - Invitation to Tender for Civil Works

SITE, CIVIL & STRUCTURAL WORKS

FOR
GEITA GOLDMINE POWER PLANT PROJECT, GEITA
TANZANIA

ON BEHALF OF:

WRTSIL EAST AFRICA LIMITED

WARTSILA TANZANIA LIMITED, a company incorporated under the laws of Tanzania,

with principal address at P.O. Box 75365, Dar-es-Salaam, Tanzania (hereinafter referred to
as the Builder) which expressions SHALL include its successor and permitted assignees
of the first part,

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On Behalf of the Builder:

R. Senthilathiban

Harrison Erhie

(Project Manager)

(Chief Project Engineer, Civil)

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Table of Content
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.

DEFINITIONS ....................................................................................................................... 4
GENERAL PROVISIONS ...................................................................................................... 5
CLOSING DATE AND HANDING OVER ADDRESS ............................................................. 6
VALIDITY OF THE QUOTATION .......................................................................................... 6
REJECTION OF THE QUOTATION ...................................................................................... 6
ASSIGNMENTS AND SUBCONTRACTING.......................................................................... 6
PROPERTY RIGHTS AND CONFIDENTIALITY ................................................................... 7
APPLICABLE LAWS AND ARBITRATION ............................................................................ 7
RETENTION OF TITLE ......................................................................................................... 7
PRICING ............................................................................................................................... 7
PAYMENT TERMS & CONDITIONS ..................................................................................... 8
LIQUIDATED DAMAGES ...................................................................................................... 8
INSURANCE POLICY ........................................................................................................... 9
RESPONSIBILITIES OF THE CONTRACTOR...................................................................... 9
TIME SCHEDULE ............................................................................................................... 10
COORDINATION AND CORRESPONDANCE .................................................................... 10
SITE.................................................................................................................................... 10
SCOPE OF WORK.............................................................................................................. 11
ENCLOSURES ................................................................................................................... 11

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1. DEFINITIONS
In the Tender Documents (as hereinafter defined) the following words, phrases,
terms, expressions, interpretations and abbreviations, when capitalised, SHALL
have the meaning hereby assigned to them, except where the context otherwise
requires:
Contractor means the person, firm or company or group of companies, to whom
the Invitation to Tender has been handed over by the Builder. The meaning includes
the Contractors official representatives, successors and permitted assignees.
Builder is WARTSILA TANZANIA LIMITED and includes the legal successors
and permitted assignees in title to the Builder.
Builders representative is the project manager or any person, who SHALL
have the responsibility or authority specifically delegated to such individual by the
Builder and made known in writing to the Contractor, including, but not limited to the
authority of the Builder to issue and approve changes in Work.
Other party / other parties / Third Party is the person, firm, company or group of
companies, with whom the Builder or the Contractor may have contact regarding the
Project or generally.
Client is the person, firm, company or group of companies in this Project, who
have employed the Builder.
Project is defined as installations, erections, delivery, supplies and services under
the agreement between the Builder and the Client.
Quotation / Offer is the Contractors proposal based on the Tender
Documents.
Sub-Contractor is any person, firm, company or group of companies (other than
the Contractor), who has been appointed by the Contractor to perform any part of
the Work.
Tender Documents are the invitation and instruction to Contractor, description of
Project or Work and specifications issued by the Builder in the tender package. Any
other written information given by the Builder, between the dates when the invitation
to tender was issued and the Contract was signed, is also included unless otherwise
stated.
Variation order is an item approved by the Builder such as additional services,
works or materials, which deviate from the Contract. It also means variations in
amounts, duration and specifications compared to the statements in the Contract.
Work is defined as all installations, erections, deliveries, supplies and services
that will be carried out under the Contract between the Builder and the Contractor.

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2. GENERAL PROVISIONS
Language
All drawings, documents and correspondence between the Builder and the
Contractor SHALL be in the English language.
Measurements
All measurements SHALL be according to the SI - system unless otherwise
specified.
Interpretation
The following SHALL form the principal basis for interpretation of the Tender
Documents.
The provisions of the Invitation to Tender including the modifications and, or
variations agreed upon, SHALL prevail over those of any other document forming
part of the Tender Documents. Notwithstanding, the several documents forming the
Tender Documents SHALL be taken as mutually explanatory of one another but in
case of ambiguities, discrepancies or errors, the Contractor SHALL ask the Builder
for an explanation. The Builder will thereupon issue to the Contractor instructions
directing in what manner the issue is to be handled.
The Tender Documents SHALL prevail in any case of variance between provisions
thereof and provisions contained in the Quotation. Any exception to or alteration of
the Tender Documents proposed by the Contractor SHALL only be valid, if agreed
upon between the Builder and the Contractor in writing.
The Contractor SHALL include any Work, shown in the tender drawings and not
particularly specified in other Tender Documents. The omission from specifications
and drawings of any detail of Work necessary and obviously intended for the proper
function of the plant, SHALL not relieve the Contractor from furnishing the same
without extra costs to the Builder. It is understood by the Contractor that the Work
described SHALL be complete and functional in every detail, even though every
item necessarily involved may not have been particularly mentioned.
Compliance with laws
The Contractor and his employees SHALL strictly comply with the laws, rules and
regulations of Tanzania.

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3. CLOSING DATE AND HANDING OVER ADDRESS

The quotation SHALL be in the Builders possession no later than 20th January
2017. This date will be referred as bid closing date. However, builder can accept
any late bid at its sole discretion.
The Quotation SHALL be submitted in electronic format only to following email
recipient:
e-mail: r.senthilathiban@wartsila.com (Project Manager)
e-mail: harrison.erhie@wartsila.com (Chief Project Engineer, Civil)
e-mail: sergey.volotskov@wartsila.com (Project Controller)
No changes/deletion SHALL be made to the Bill of quantity document and
same SHALL be submitted in excel format also. The scope of work is shown,
listed and marked on the excel sheet(C means Contractor, while W means
Wrtsil).
The Contractor is obliged to include all highlighted Appendices (1-10) together
with his Quotation.

4. VALIDITY OF THE QUOTATION

The Quotation SHALL be valid for three (3) months from the closing date

5. REJECTION OF THE QUOTATION

The Builder has the right to reject the Quotation without any compensations or
clarifications whatsoever to the Contractor.

6. ASSIGNMENTS AND SUBCONTRACTING

Sub-contracting
The Bidder SHALL list the names of proposed Sub-Contractors (Appendix # 2).
Details of Work intended to be assigned to them SHALL be listed in the Quotation.
The Contractor is fully responsible for actions, prices and performance of SubContractors. The Builder has the right to reject any or all Sub-Contractors at any
time, based on same conditions as for the Contractor. The Contractor is not allowed
to sub-let the whole Work unless otherwise agreed.

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7. PROPERTY RIGHTS AND CONFIDENTIALITY

Property Rights
The Builder owns the right of designs and technical specifications and solutions.
Legal actions can be taken against the Contractor if any patent is infringed by cause
of the Contractor. The Contractor will be held responsible for actions taken by any
third party with whom the Contractor have been in contact with regarding this tender
procedure

8. APPLICABLE LAWS AND ARBITRATION

This Contract is to be construed and SHALL be governed by laws of Tanzania.
All disputes arising in connection with this present Contract SHALL be settled
through friendly consultations between the Parties. In case no agreement can be
reached through consultations, the dispute SHALL be submitted to arbitration for
final and exclusive settlement.
The arbitration procedure SHALL be governed by the Rules of Conciliation and
Arbitration of the International Chamber of Commerce and SHALL be conducted by
one or more arbitrators appointed in accordance with the said rules. The arbitration
proceedings SHALL be in the English language and will take place in the capital of
the country where the Builder has his principal place of business.
The Builder may at his discretion undertake legal proceedings in any court with
jurisdiction in the country of the Contractor.

9. RETENTION OF TITLE
The Builder SHALL maintain title and ownership of Builder provided drawings,
items, tools and materials. The Contractor SHALL clearly mark and keep them
separate from other drawings, items, tools and materials. All Builder provided
drawings, items, tools and materials, SHALL be returned to the Builder upon expiry
or rejection of the Quotation.

10. PRICING
The price must be according to the attached Wrtsil BOQ Structure
DBAE256567, DBAE256571 and DBAE256574. Including services specified in
Scope of Work document. As per our estimation the exactness of these theoretical
quantities calculations is +/- 5%. However, No adjustment of price is possible. The
payment will be made based on actual quantity of work executed by the contractor
after certification from the Wrtsil Site Manager.
The return right for tools after completion of the works SHALL be provided by
Builder.

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The price SHALL contain all Contractor related taxes, duties and third part
inspections, which might be payable according to governmental or local laws, rules
or regulations for work intended to be executed, as described in Tender
Documents. The Builder is not responsible to inform or take any other actions in
order to fulfil the tax regulations towards governmental or local authorities. No
additional tax related sum can be claimed by the Contractor in case of signing a
contract.
A misinformation from the Contractor regarding tax issues can lead to rejection of
the Quotation.
The price SHALL be in Tanzanian shillings or US Dollars as agreed during contract
negotiation without any VAT.
All other mandatory taxes SHALL be priced and reported separately in the
Quotation.

11. PAYMENT TERMS & CONDITIONS

The following terms of payment will be applied to the contract:
- 10 % down payment, against a performance bond equal to 10%
- 80 % milestones payments on the progressive completion of works as per
the negotiated milestones
- 10 % final payment

12. LIQUIDATED DAMAGES

In the event that the work is not completed on or before the date of completion as
per the agreed milestone schedule, the Contractor SHALL be liable for the payment
of liquidated damages.
The total amount of liquidated damages SHALL not exceed 20% of the total
contract amount.

12.1 Late Completion

The amount of liquidated damages SHALL be equal to amount of 0,2% of contract
amount per each commencing day of delay

12.2 Milestone Late delivery

In the event that a work phase is not completed on or before the date stated as per
the agreed milestone schedule, Contractor SHALL be liable for the payment of
liquidated damages equal to an amount of 0,1% of contract value per week of delay
The percentage of the LDs to be finally negotiated during contract finalization.

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13. INSURANCE POLICY

The Work will be insured by the Builder with a Construction All Risk (CAR) / Erection
All Risk (EAR) containing Third Party Liability. The insurance policy will cover all
Sub-contractors involved in the Work on behalf of the Contractor /Contractor, unless
otherwise stated.
The Contractor SHALL indicate the type and coverage of the insurance policy
(Appendix # 3) taken care of in the Contractors insurance policy.
All local insurances and own insurances are to be included by the Contractor in the
price quoted.
The Contractor SHALL take responsibility for Workmens Compensation for his own
employees and for the employees of his sub-contractors, also for vehicles and tools
used by him. The Contractor /Contractors are also obliged to take other insurances
according to governmental and local laws, rules or regulations.

14. RESPONSIBILITIES OF THE CONTRACTOR

The Contractor SHALL price the work according to Tender Documents. If there are
deviations or contradictions between Tender documents and local construction
practice, standards or regulations, the Contractor SHALL consult the Builder for
guidance prior to quotation. Skilled workmen SHALL perform the Work.
The Contractor SHALL supply a reference list of similar type installation works
(Appendix # 4) that he has previously done.
The Contractor SHALL enclose a CV for persons in charge for following mandates
(Appendix # 5),
-Project Manager or Project Engineer (for each discipline)
-Foremen / Section Managers
The Project Engineer and the Section Managers at the site must be able to speak
and write English fluently. The Engineer is responsible to check the drawings and
arrange all necessary tests, permits and inspections as required by Builder / Client
or some other local authority. He is also responsible for the Work during the
execution of the project.
The Work SHALL be carried out in compliance with local regulations
Under no circumstances SHALL the Contractor take order or give information to any
other party than the Builder.
Quality Assurance
The Contractor SHALL give first priority to quality, as the Work will be used as a
part of, or in connection with, power generating systems operating under continuous
maximum load in extreme climatic conditions. The Contractor SHALL submit their
Quality Plan for the Work (Appendix # 6).

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Environmental System
The Contractor SHALL enclose their Environmental Plan to their Quotation
(Appendix # 7).
General conditions:
TIME SCHEDULE
The work SHALL be commenced from 20.02.2017 and SHALL be completed by
16.10.2017. Contractor SHALL prepare detailed schedule plan of the works within
this time frame.
Final contract time with milestones SHALL be mutually agreed before signing of
the contract.
Contractor SHALL enclose his estimation for Detail Time/ Manpower Schedule
(preliminary) (Appendix # 8)

16. COORDINATION AND CORRESPONDANCE

The Contractor SHALL provide an organization chart (Appendix # 9) that states
the responsible persons for respective item. The Contractor SHALL also name a
responsible person with whom the correspondence between the Contractor and the
Builder SHALL take place during bidding procedure.
The correspondence between the Parties SHALL be in English language and
written in such a manner that also a third party would fully understand the
interpretation of the correspondence.

17. SITE
Storage / On Site Prefabrication area
Within the site area there will be space available for storage and On-Site Prefabrication work.
The Contractor SHALL submit a proposal for the Storage / On-Site Pre-fabrication
area. (Appendix # 10)
Security
Contractor SHALL arrange security for his own premises and storage area(s).
Health and Safety
The Contractor SHALL be responsible for the adequacy, stability and safety of his
operations on Site and SHALL comply with any of Wrtsil or customers safety
regulations applicable at the Site.
The contractor SHALL be responsible for the safety, health and welfare of all
persons visiting or employed at the Site.
The Contractor SHALL ensure that the execution of the installation work complies
with the statutory requirements of all legislation relating to safety, health and welfare
on construction sites.

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The Contractor SHALL submit to Wrtsil all necessary documentation needed for
site health and safety file. In particular, but not limited to, this should mean
sufficiently detailed Method Statements, descriptions, schedules and plans for all
installation work. The Contractor SHALL also be requested to take part in regular
meetings and to cooperate with Builder to cover all health and safety aspects.

18. SCOPE OF WORK

The Contractor is obligated to follow the given material specifications and to supply
material certificates to the Builder. The used materials must be approved and
according to international standards. The handling of the materials has to be
properly done during transportation and at the site. The Contractor is responsible for
transportation of Contractor supplied material included in his scope.

19. EXECUTION PLAN

The Contractor SHALL submit an Execution Plan for the Work (Appendix # 11).

19. ENCLOSURES

Bill of Quantities Site Works

Bill of Quantities Below Zero Works
Bill of Quantities Above zero Works
HSE Guidelines
Tender Drawings Package (zip file)
HSE Guidelines
HSE Management Plan
Civil Works Proposed Schedule

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