Contracts are awarded on guidelines
- Nokta assures
Guyana Chronicle
May 22, 2002

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MINISTER of Local Government and Regional Development, Mr. Harripersaud Nokta has said that contracts for projects in the various regions are done in different stages, but the principles are the same for all of them.

He explained this in outlining the tendering process on `Answers', a programme produced by the Government Information Agency (GINA), last Sunday.

The ministries and regions have a certain ceiling under which to operate and they can only award contracts independently through the Regional Executive Officer of the particular region, he said.

The first step is for the region to identify the project which will be embarked upon and get the required design.

If a design is not provided, then they will have to advertise for a consultant who will provide a design and the cost of the project, the minister reported.

GINA said advertisements for contractors are placed in at least three national newspapers for about two to three weeks to invite bids for the projects.

The bids are then closed and the Central Tender Board, or the region through their tender board, appoints an evaluation committee to assess the bids, the agency said.

The evaluation committee will look at the bids with fixed criteria in mind, including the reputation of the contractor, past performance, capacity to do technical work, engineering capacity, the ability to carry out the work with machinery if needed, possession of the required machinery and the financial standing of the individual, which would serve as a guarantee to the Government.

Nokta noted that the guarantee is looked for so that if problems arise with the contract, then the Government will not incur a liability.

The evaluation committee then sends its recommendations to the Tender Board which will review and pass them on to the Regional Finance Committee which will award the tender if a bidder meets the criteria, GINA reported.

According to GINA, a contract will then be prepared and signed.

GINA pointed out that the contractor is given a time frame in which he is expected to make a start of the project.

One of the requirements of a contract is that the contractor be given an advance or mobilisation fee if he needs it so that he can move ahead with the works, the agency explained.

At the end of the contract, it is stated that 10 per cent of the cost be retained for defects liability, wherein, that within a period of time if anything goes wrong with the project and repairs are needed, the contractor can be called on to do the works or the 10 per cent will be used to carry out the repairs, GINA said.

The agency quoted Nokta as saying that there is always talk of favouritism when contracts are awarded, but he assured that the contracts are awarded on the guidelines which govern the tendering process.