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FINAL
INTERNATIONAL ISO/FDIS
DRAFT
STANDARD 10845-1
ISO/TC 59/SC 18
Construction procurement —
Secretariat: SABS
Voting begins on:
Part 1:
2020-09-18
Processes, methods and procedures
Voting terminates on:
2020-11-13
Marchés de construction —
Partie 1: Processus, méthodes et procédures
RECIPIENTS OF THIS DRAFT ARE INVITED TO
SUBMIT, WITH THEIR COMMENTS, NOTIFICATION
OF ANY RELEVANT PATENT RIGHTS OF WHICH
THEY ARE AWARE AND TO PROVIDE SUPPOR TING
DOCUMENTATION.
IN ADDITION TO THEIR EVALUATION AS
Reference number
BEING ACCEPTABLE FOR INDUSTRIAL, TECHNO-
ISO/FDIS 10845-1:2020(E)
LOGICAL, COMMERCIAL AND USER PURPOSES,
DRAFT INTERNATIONAL STANDARDS MAY ON
OCCASION HAVE TO BE CONSIDERED IN THE
LIGHT OF THEIR POTENTIAL TO BECOME STAN-
DARDS TO WHICH REFERENCE MAY BE MADE IN
NATIONAL REGULATIONS. ISO 2020
---------------------- Page: 1 ----------------------
ISO/FDIS 10845-1:2020(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2020

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting

on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address

below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2020 – All rights reserved
---------------------- Page: 2 ----------------------
ISO/FDIS 10845-1:2020(E)
Contents Page

Foreword ..........................................................................................................................................................................................................................................v

Introduction ................................................................................................................................................................................................................................vi

1 Scope ................................................................................................................................................................................................................................. 1

2 Normative references ...................................................................................................................................................................................... 1

3 Terms and definitions ..................................................................................................................................................................................... 1

4 Establishing a procurement system ................................................................................................................................................. 6

4.1 General ........................................................................................................................................................................................................... 6

4.1.1 Developing and documenting the system .................................................................................................. 6

4.1.2 Responding to decisions taken ............................................................................................................................ 6

4.2 Conduct of employees, agents and contractors .......................................................................................................... 7

4.2.1 Code of conduct................................................................................................................................................................. 7

4.2.2 Disciplinary action ......................................................................................................................................................... 7

4.3 Procurement policy ............................................................................................................................................................................. 8

4.4 Secondary procurement policy ..............................................................................................................................................10

4.4.1 General requirements ...............................................................................................................................................10

4.4.2 Requirements relating to the granting of evaluation points ...................................................11

4.4.3 Requirements relating to accelerated rotations in electronic databases .....................12

4.5 Rotating electronic databases .................................................................................................................................................13

4.5.1 Operating principles ..................................................................................................................................................13

4.5.2 Software requirements ............................................................................................................................................13

4.5.3 Conduct of those admitted to the database ...........................................................................................15

4.6 Means of communication ............................................................................................................................................................15

4.7 Devices relating to the electronic receipt of submissions ..............................................................................15

5 Preparing for procurement ....................................................................................................................................................................16

5.1 Preparation for a procurement other than a disposal .......................................................................................16

5.1.1 Initial considerations ................................................................................................................................................16

5.1.2 Readiness to solicit tender offers ...................................................................................................................16

5.1.3 Records ................................................................................................................................................................................17

5.2 Preparation for a disposal ..........................................................................................................................................................17

5.2.1 Initial considerations ................................................................................................................................................17

5.2.2 Readiness to proceed ................................................................................................................................................17

5.2.3 Records ..................................................................................................................................................................................17

6 Procurement methods and procedures .....................................................................................................................................17

6.1 General ........................................................................................................................................................................................................17

6.2 Procurement documentation ..................................................................................................................................................18

6.2.1 General requirements ...............................................................................................................................................18

6.2.2 Basic terms and conditions ..................................................................................................................................18

6.2.3 Submission data ............................................................................................................................................................19

6.2.4 Tender data ........................................................................................................................................................................19

6.2.5 Eligibility criteria ..........................................................................................................................................................19

6.2.6 Evaluation criteria .......................................................................................................................................................20

6.2.7 Scope of work ..................................................................................................................................................................20

6.2.8 Cost reimbursement and cost plus contracts .......................................................................................20

6.2.9 Delivery periods ............................................................................................................................................................21

6.2.10 Preferencing ......................................................................................................................................................................21

6.2.11 Quality ....................................................................................................................................................................................21

6.3 Solicitation of tender offers.......................................................................................................................................................24

6.3.1 General...................................................................................................................................................................................24

6.3.2 Competitive selection procedures .................................................................................................................24

6.3.3 Negotiated procedure ...............................................................................................................................................27

6.3.4 Competitive negotiation procedures ...........................................................................................................27

6.3.5 Disposal procedures ..................................................................................................................................................28

© ISO 2020 – All rights reserved iii
---------------------- Page: 3 ----------------------
ISO/FDIS 10845-1:2020(E)

6.3.6 Electronic auction procedure .................. ...........................................................................................................29

6.4 Framework agreements ...............................................................................................................................................................30

6.4.1 General...................................................................................................................................................................................30

6.4.2 Issuing of orders............................................................................................................................................................31

6.5 Design competitions ........................................................................................................................................................................31

6.6 Advertisements ....................................................................................................................................................................................32

6.6.1 General...................................................................................................................................................................................32

6.6.2 Minimum information to be conveyed in advertisements for tenders ..........................32

6.6.3 Minimum information to be conveyed in advertisements for expressions

of interest ............................................................................................................................................................................32

6.7 Tender process and procedures ............................................................................................................................................32

6.7.1 General...................................................................................................................................................................................32

6.7.2 Tender deposits .............................................................................................................................................................33

6.7.3 Contacting of tenderers before the close of tenders ......................................................................33

6.7.4 Receipt of tender submissions ..........................................................................................................................33

6.7.5 Return of unopened submissions ...................................................................................................................34

6.7.6 Opening of tender submissions .......................................................................................................................34

6.7.7 Evaluation of tender submissions ..................................................................................................................34

6.8 Award of contracts ............................................................................................................................................................................38

6.8.1 General...................................................................................................................................................................................38

6.8.2 Records ..................................................................................................................................................................................39

6.8.3 Notification of unsuccessful tenderers ......................................................................................................39

6.9 Contract administration ...............................................................................................................................................................40

6.10 Resolution of disputes arising from a contract ........................................................................................................40

6.11 Unsolicited proposals .....................................................................................................................................................................40

6.12 Departures from established methods and procedures ...................................................................................40

Annex A (informative) Commentary ..................................................................................................................................................................41

Annex B (informative) Differences between categories of procurement ....................................................................57

Annex C (informative) Sustainable procurement in construction works contracts .........................................60

Annex D (informative) Generic procurement processes ..............................................................................................................66

Annex E (informative) Establishing a procurement system and managing procurement

processes ...................................................................................................................................................................................................................71

Annex F (informative) Standard selection methods ..........................................................................................................................81

Annex G (informative) Targeted procurement procedures .......................................................................................................88

Annex H (informative) Auction data ..............................................................................................................................................................108

Bibliography .........................................................................................................................................................................................................................111

iv © ISO 2020 – All rights reserved
---------------------- Page: 4 ----------------------
ISO/FDIS 10845-1:2020(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards

bodies (ISO member bodies). The work of preparing International Standards is normally carried out

through ISO technical committees. Each member body interested in a subject for which a technical

committee has been established has the right to be represented on that committee. International

organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.

ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of

electrotechnical standardization.

The procedures used to develop this document and those intended for its further maintenance are

described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the

different types of ISO documents should be noted. This document was drafted in accordance with the

editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).

Attention is drawn to the possibility that some of the elements of this document may be the subject of

patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of

any patent rights identified during the development of the document will be in the Introduction and/or

on the ISO list of patent declarations received (see www .iso .org/ patents).

Any trade name used in this document is information given for the convenience of users and does not

constitute an endorsement.

For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and

expressions related to conformity assessment, as well as information about ISO's adherence to the

World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/

iso/ foreword .html.

This document was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works,

Subcommittee SC 18, Construction procurement.

This second edition cancels and replaces the first edition (ISO 10845-1:2010), which has been technically

revised.
The main changes compared to the previous edition are as follows:

— definitions and parts of the text have been revised, updated and aligned with other parts of the

ISO 10845 series to ensure consistency in concepts and terms;

— the considerations in the development of a procurement policy and provisions for framework

agreements have been expanded;

— provisions for a confined market selection procedure and design competitions have been added;

— the informative annexes relating to best value procurement and adjudication procedures to

challenge decisions have been withdrawn;

— informative annexes have been substantially revised and two informative annexes addressing

differences between categories of procurement and sustainable procurement in construction works

contracts have been added.
A list of all parts in the ISO 10845 series can be found on the ISO website.

Any feedback or questions on this document should be directed to the user’s national standards body. A

complete listing of these bodies can be found at www .iso .org/ members .html.
© ISO 2020 – All rights reserved v
---------------------- Page: 5 ----------------------
ISO/FDIS 10845-1:2020(E)
Introduction

Procurement is the process which creates, manages and fulfils contracts. There are accordingly three

phases to the procurement process associated with the delivery and maintenance of construction

works, namely:

— a planning phase during which decisions are made as to what, where and when goods and services

are required, how the market is to be approached and what is the number, type, nature and timing

of the required contracts;

— an acquisition phase during which contracts are entered into following the execution of a selection

procedure; and

— a contract management (or contract administration) phase during which compliance with

requirements, changes in requirements and risk events which manifest during the execution of

contracts are managed.

Procurement activities commence once the need for procurement is identified and end when

the transaction is completed. There are six principal activities associated with the procurement

process, namely:
a) establish what is to be procured;

b) decide on procurement strategies in terms of packaging, contracting and targeting strategy and

selection method;
c) solicit tender offers;
d) evaluate tender offers;
e) award contract;
f) administer contracts and confirm compliance with requirements.

Methods, procedures and operational policies are required to implement these principal activities.

There is a finite range of methods and procedures associated with the various procurement sub-

processes which can be standardized around a set of system objectives.

This document provides a framework around which public, private and international organizations can

develop their procurement systems to achieve fair competition, to reduce the possibilities for abuse

and to improve predictability in procurement outcomes. It achieves this through the establishment of

standard rules for a wide range of procedures and methods and the limits of discretionary powers in

the absence of specific requirements for the management and control of the system. Accordingly, any

procurement system developed in terms of this document can be managed and controlled by a range

of flexible oversight structures or designated persons. Compliance with the aforementioned system

requirements can be readily established by merely auditing processes, procedures and methods for

compliance with this document and an organization’s procurement policy.

Guidance on the application of certain clauses of this document is provided in Annex A. Differences

between categories of procurement are indicated in Annex B. Generic procurement processes are

described in Annex D. Guidance is provided on sustainable procurement in construction works

contracts (Annex C), the establishment of a procurement system and the management of procurement

processes (Annex E), standard selection methods (Annex F) and targeted procurement procedures

(Annex G). Suggested auction data is provided in Annex H.
Standardization, apart from removing technical barriers to trade, enables

— those engaged in procurement activities to perform their duties, within the confines of their

organization's procurement policy, in a uniform and generic manner;

— procurement documents to be readily compiled in a uniform and generic manner; and

vi © ISO 2020 – All rights reserved
---------------------- Page: 6 ----------------------
ISO/FDIS 10845-1:2020(E)

— curricula to be developed to capacitate those engaged in a range of procurement activities.

Furthermore, it allows governments to readily develop an internal procurement-skills base, which

is not lost when members of staff move between different departments or levels of government or

organizations.

This document is part of a series of International Standards entitled “construction procurement” which

covers various aspects of procurement encountered within the construction industry. Each part of the

series relates to a different aspect of procurement. The objective of ISO 10845 (all parts) is to provide

a generic and standard set of processes, procedures and methods for a procurement system that is fair,

equitable, transparent, competitive and cost-effective and which can be used to promote objectives

additional to those associated with the immediate objective of the procurement itself.

ISO 10845 (all parts) is especially relevant for developing countries that lack experience and instruments

in this field and can be used to improve international trade.
© ISO 2020 – All rights reserved vii
---------------------- Page: 7 ----------------------
FINAL DRAFT INTERNATIONAL STANDARD ISO/FDIS 10845-1:2020(E)
Construction procurement —
Part 1:
Processes, methods and procedures
1 Scope

This document describes processes, methods and procedures for the establishment within an

organization of a procurement system for goods, services, and construction works or disposals, or any

combination thereof that is fair, equitable, transparent, competitive and cost-effective. This document

a) describes generic procurement processes around which an employer can develop its

procurement system,

b) establishes basic requirements for the conduct of an employer's employees, agents, board members

and office bearers when engaging in procurement,

c) establishes the framework for the development of an employer's procurement policy, including any

secondary procurement policy, and

d) establishes generic methods and procedures for procurements, including those pertaining to

disposals.

This document provides a generic and standard set of processes, procedures and methods for a

procurement system which can be applied by both the public and private sector organizations in the

development of their procurement system. The principles contained in this document can also be

applied down the supply chain.

This document enables organizations to develop in the first instance a generic procurement system and

then to identify the methods and procedures best suited to particular categories of procurement.

2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.

ISO and IEC maintain terminological databases for use in standardization at the following addresses:

— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
3.1
acceptance

act of agreeing to a contractor's (3.9) offer or tender, thereby creating a binding contract (3.7)

[SOURCE: ISO 6707-2:2017, 3.5.16]
© ISO 2020 – All rights reserved 1
---------------------- Page: 8 ----------------------
ISO/FDIS 10845-1:2020(E)
3.2
agent

person or organization (3.21) that is not an employee of the employer (3.15) and that acts on the

employer's behalf
3.3
bill of quantities

document for tendering, usually prepared in a standard form, comprising both a descriptive list of

quantities of works and descriptions of the materials, workmanship and other matters required for

construction works

[SOURCE: ISO 6707-2:2017, 3.5.11, modified — The preferred term "bill of materials, US" and the

admitted term "quantity survey, US" have been removed.]
3.4
bond

sum of money or securities submitted to the employer (3.15) or placed in the hands of a third party

to guarantee completion and recovery of the sums which the contractor (3.9) is recognized as owing

under the terms of contract (3.7)

[SOURCE: ISO 6707-2:2017, 3.5.40, modified — “client” has been replaced with “employer”.]

3.5
conditions of contract

terms that collectively describe the rights and obligations of contracting parties and the agreed

procedures for the administration of their contract (3.7)
3.6
conflict of interest

situation in which someone in a position of trust has competing professional or personal interests

which make it difficult for the person to fulfil the duties impartially, an individual or organization (3.21)

is in a position to exploit a professional or official capacity in some way for personal or for corporate

benefit, or incompatibility or contradictory interests exist between an employee and the organization

which employs that employee
3.7
contract

legally enforceable agreement to supply goods, carry out construction works and/or provide services

[SOURCE: ISO 6707-2:2017, 3.1.1]
3.8
contract data

document that identifies the applicable conditions of a contract (3.7) and states the associated contract-

specific data
3.9
contractor

person or organization (3.21) that contracts to supply goods, carry out construction works and/or

provide services

Note 1 to entry: The use of the generic term “contractor” eliminates the need to introduce the terms “service

provider” and “supplier” as it has been defined to cover these terms.

Note 2 to entry: The definitions for “employer” and “contractor” are such that relevant subclauses of this

document can be applied at any point in the supply chain. For example, in a contract, a “contractor” can be an

“employer” and a “contractor” can be a “subcontractor”.
2 © ISO 2020 – All rights reserved
---------------------- Page: 9 ----------------------
ISO/FDIS 10845-1:2020(E)
3.10
corrupt practice
offering, giving, receiving or soliciting of anything of value t
...

DRAFT INTERNATIONAL STANDARD
ISO/DIS 10845-1
ISO/TC 59/SC 18 Secretariat: SABS
Voting begins on: Voting terminates on:
2020-02-10 2020-05-04
Construction procurement —
Part 1:
Processes, methods and procedures
Marchés de construction —
Partie 1: Processus, méthodes et procédures
ICS: 91.010.20
THIS DOCUMENT IS A DRAFT CIRCULATED
FOR COMMENT AND APPROVAL. IT IS
THEREFORE SUBJECT TO CHANGE AND MAY
NOT BE REFERRED TO AS AN INTERNATIONAL
STANDARD UNTIL PUBLISHED AS SUCH.
IN ADDITION TO THEIR EVALUATION AS
BEING ACCEPTABLE FOR INDUSTRIAL,
This document is circulated as received from the committee secretariat.
TECHNOLOGICAL, COMMERCIAL AND
USER PURPOSES, DRAFT INTERNATIONAL
STANDARDS MAY ON OCCASION HAVE TO
BE CONSIDERED IN THE LIGHT OF THEIR
POTENTIAL TO BECOME STANDARDS TO
WHICH REFERENCE MAY BE MADE IN
Reference number
NATIONAL REGULATIONS.
ISO/DIS 10845-1:2020(E)
RECIPIENTS OF THIS DRAFT ARE INVITED
TO SUBMIT, WITH THEIR COMMENTS,
NOTIFICATION OF ANY RELEVANT PATENT
RIGHTS OF WHICH THEY ARE AWARE AND TO
PROVIDE SUPPORTING DOCUMENTATION. ISO 2020
---------------------- Page: 1 ----------------------
ISO/DIS 10845-1:2020(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2020

All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may

be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting

on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address

below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Fax: +41 22 749 09 47
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2020 – All rights reserved
---------------------- Page: 2 ----------------------
ISO/DIS 10845-1:2020(E)
Contents Page

Foreword .............................................................................................................................................................. i

Introduction ........................................................................................................................................................ iii

1 Scope ...................................................................................................................................................... 1

2 Normative references ............................................................................................................................ 1

3 Terms and definitions ........................................................................................................................... 2

4 Establishing a procurement system .................................................................................................... 5

4.1 General ................................................................................................................................................... 5

4.2 Conduct of employees, agents and contractors ................................................................................ 7

4.3 Procurement policy ............................................................................................................................... 7

4.4 Secondary procurement policy .......................................................................................................... 10

4.5 Rotating electronic databases ........................................................................................................... 12

4.6 Means of communication ................................................................................................................... 14

4.7 Devices relating to the electronic receipt of submissions.............................................................. 15

5 Preparing for procurement ................................................................................................................. 15

5.1 Preparation for a procurement other than a disposal ..................................................................... 15

5.2 Preparation for a disposal .................................................................................................................. 16

6 Procurement methods and procedures ............................................................................................ 17

6.1 General ................................................................................................................................................. 17

6.2 Procurement documentation ............................................................................................................. 18

6.3 Solicitation of tender offers ................................................................................................................ 24

6.4 Framework agreements ...................................................................................................................... 30

6.5 Design competitions ........................................................................................................................... 31

6.6 Advertisements ..........................................................................................Error! Bookmark not defined.

6.7 Tender process and procedures ........................................................................................................ 33

6.8 Award of contracts .............................................................................................................................. 38

6.9 Contract administration ...................................................................................................................... 40

6.10 Resolution of disputes arising from a contract ............................................................................... 40

6.11 Unsolicited proposals ......................................................................................................................... 40

6.12 Departures from established methods and procedures ................................................................. 40

Annex A (informative) Commentary ................................................................................................................ 41

Annex B (informative) Differences between categories of procurement .................................................... 59

Annex C (informative) Sustainable procurement in construction works contracts ................................... 61

Annex D (informative) Generic procurement processes .............................................................................. 67

Annex E (informative) Establishing a procurement system and managing procurement processes ..... 72

Annex F (informative) Standard selection methods ...................................................................................... 82

Annex G (informative) Targeted procurement procedures ........................................................................... 90

Annex H (informative) Auction Data .............................................................................................................. 109

Bibliography .................................................................................................................................................... 112

© ISO 2020 – All rights reserved i
---------------------- Page: 3 ----------------------
ISO/DIS 10845-1:2020(E)
Foreword

ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies

(ISO member bodies). The work of preparing International Standards is normally carried out through

ISO technical committees. Each member body interested in a subject for which a technical committee has

been established has the right to be represented on that committee. International organizations, governmental

and non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the

International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.

International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.

The main task of technical committees is to prepare International Standards. Draft International Standards

adopted by the technical committees are circulated to the member bodies for voting. Publication as an

International Standard requires approval by at least 75 % of the member bodies casting a vote.

Attention is drawn to the possibility that some of the elements of this document may be the subject of patent

rights. ISO shall not be held responsible for identifying any or all such patent rights.

ISO 10845-1 was prepared by Technical Committee ISO/TC 59, Building construction, Subcommitee SC18,

Construction Procurement.

ISO 10845 consists of the following parts, under the general title Construction procurement:

⎯ Part 1: Processes, methods and procedures
⎯ Part 2: Formatting and compilation of procurement documentation
⎯ Part 3: Standard conditions of tender
⎯ Part 4: Standard conditions for the calling for expressions of interest
⎯ Part 5: Participation of targeted enterprises in contracts
⎯ Part 6: Participation of targeted partners in joint ventures in contracts
⎯ Part 7: Participation of local enterprises and labour in contracts
⎯ Part 8: Participation of targeted labour in contracts
This second edition cancels and replaces the first edition (ISO 10845-1:2010)
The main changes to the previous edition are:

⎯ definitions and parts of the text have been revised, updated and aligned with other parts of ISO 10845 to

ensure consistency in concepts and terms;

⎯ the considerations in the development of a procurement policy and provisions for framework agreements

have been expanded;

⎯ provisions for a confined market selection procedure and design competitions have been added;

⎯ the informative annexes relating to best value procurement and adjudication procedures to challenge

decisions have been withdrawn;
© ISO 2020 – All rights reserved i
---------------------- Page: 4 ----------------------
ISO/DIS 10845-1:2020(E)

⎯ informative annexes have been substantially revised and two informative annexes addressing differences

between categories of procurement and sustainable procurement in construction works contracts have

been added
ii © ISO 2020 – All rights reserved
---------------------- Page: 5 ----------------------
ISO/DIS 10845-1:2020(E)
Introduction

Procurement is the process which creates, manages and fulfils contracts. There are accordingly three phases

to the procurement process associated with the delivery and maintenance of construction works, namely:

• a planning phase during which decisions are made as to what, where and when goods and services

are required, how the market is to be approached and what is the number, type, nature and timing of

the required contracts;

• an acquisition phase during which contracts are entered into following the execution of a selection

procedure; and

• a contract management (or contract administration) phase during which compliance with requirements,

changes in requirements and risk events which manifest during the execution of contracts are

managed.

Procurement activities commence once the need for procurement is identified and end when the transaction is

completed. There are six principal activities associated with the procurement process, namely:

1) establish what is to be procured;

2) decide on procurement strategies in terms of packaging, contracting and targeting strategy and selection

method (see ISO 22058 which is under development);
3) solicit tender offers;
4) evaluate tender offers;
5) award contract;
6) administer contracts and confirm compliance with requirements.

Methods, procedures and operational policies are required to implement these principal activities. There is a

finite range of methods and procedures associated with the various procurement sub-processes which can be

standardized around a set of system objectives. Public, private, international organizations and main

contractors can then establish their procurement systems around these standard procedures and methods.

Contractors who contract with such organizations can in turn be required, as an obligation of the contract, to

apply relevant standard procedures and methods when procuring goods and services or subcontracting

construction works associated with their contracts.

This part of ISO 10845 is one of a series of International Standards entitled “Construction procurement” which

cover various aspects of procurement within the construction industry. Each part of the series relates to a

different aspect of procurement. The objective of this series of standards is to provide a generic and standard

set of processes, procedures and methods for a procurement system that is fair, equitable, transparent,

competitive and cost-effective and which can be used to promote objectives additional to those associated

with the immediate objective of the procurement itself.
Standardization, apart from removing technical barriers to trade, enables

a) those engaged in procurement activities to perform their duties, within the confines of their organization's

procurement policy, in a uniform and generic manner;

b) procurement documents to be readily compiled in a uniform and generic manner; and

c) curricula to be developed to capacitate those engaged in a range of procurement activities.

© ISO 2020 – All rights reserved iii
---------------------- Page: 6 ----------------------
ISO/DIS 10845-1:2020(E)

Furthermore, it allows governments to readily develop an internal procurement-skills base, which is not lost

when members of staff move between different departments or levels of government or organizations.

This series of standards is especially relevant for developing countries that lack experience and instruments in

this field and can be used to improve international trade. This part of ISO 10845 provides a framework around

which public, private and international organizations can develop their procurement systems to achieve fair

competition, to reduce the possibilities for abuse and to improve predictability in procurement outcomes.

iv © ISO 2020 – All rights reserved
---------------------- Page: 7 ----------------------
ISO/DIS 10845-1:2020(E)
Construction procurement —
Part 1:
Processes, methods and procedures
1 Scope

This part of ISO 10845 describes processes, methods and procedures for the establishment within an

organization of a procurement system that is fair, equitable, transparent, competitive and cost-effective. This

part of ISO 10845

a) describes generic procurement processes around which an employer can develop its procurement

system,

b) establishes basic requirements for the conduct of an employer's employees, agents, board members and

office bearers when engaging in procurement,

c) establishes the framework for the development of an employer's procurement policy, including any

secondary procurement policy, and

d) establishes generic methods and procedures for procurements, including those pertaining to disposals.

Guidance on the application of certain clauses is provided in Annex A. Differences between categories of

procurement are indicated in Annex B. Generic procurement processes are described in Annex D. Guidance

is provided on sustainable procurement in construction works contracts (Annex C), the establishment of a

procurement system and the management of procurement processes (Annex E), standard selection methods

(Annex F) and targeted procurement procedures (Annex G). Suggested Auction Data is provided in Annex H.

NOTE: 1 This part of ISO 10845 provides a generic and standard set of processes, procedures and methods for a

procurement system which can be applied by both the public and private sector organisations in the

development of their procurement system. The principles contained in this standard can also be applied down

the supply chain.

2 This standard enables organisations to develop in the first instance a generic procurement system and then to

identify the methods and procedures best suited to particular categories.
2 Normative references

The following referenced documents are indispensable for the application of this document. For dated

references, only the edition cited applies. For undated references, the latest edition of the referenced

document (including any amendments) applies.

ISO 10845-5, Construction procurement — Part 5: Participation of targeted enterprises in contracts

ISO 10845-6, Construction procurement — Part 6: Participation of targeted partners in joint ventures in

contracts

ISO 10845-7, Construction procurement — Part 7: Participation of local enterprises and labour in contracts

ISO 10845-8, Construction procurement — Part 8: Participation of targeted labour in contracts

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ISO 19208, Framework for specifying performance in buildings
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
acceptance
agreeing to a contractor's offer or tender, thereby creating a binding contract
[ISO 6707-2:2017, definition 3.5.16]
3.2
agent

person or organization that is not an employee of the employer and that acts on the employer's behalf

3.3
bill of quantities

document that lists the items of work and the quantities and rates associated with each item to allow

contractors to be paid, at regular intervals, an amount equal to the agreed rate for the work multiplied by the

quantity of work completed
3.4
bond

sum of money or securities submitted to the employer or placed in the hands of a third party to guarantee

completion of the work and recovery of the sums which the contractor would be recognized as owing under

the terms of contract

[ISO 6707-2:2017, definition 3.5.40 – modified – “client” replaced with “employer”]

3.5
conditions of contract

terms that collectively describe the rights and obligations of contracting parties and the agreed procedures for

the administration of their contract or document containing conditions of contract

NOTE Adapted from ISO 6707-2:1993, definitions 3.2.1 and 3.2.2.
3.6
conflict of interest

any situation in which someone in a position of trust has competing professional or personal interests which

make it difficult for him to fulfil his duties impartially, an individual or organization is in a position to exploit a

professional or official capacity in some way for his personal or for corporate benefit, or incompatibility or

contradictory interests exist between an employee and the organization which employs that employee

3.7
contract

legally enforceable agreement to supply goods, carry out construction works and / or provide services

[ISO 6707-2:2017, definition 3.1.1]
3.8
contract data

document that identifies the applicable conditions of a contract and states the associated contract-specific

data
3.9
contractor

person or organization that contracts to supply goods, carry out construction works and / or provide services

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3.10
corrupt practice

offering, giving, receiving or soliciting of anything of value to influence the action of the employer or his staff or

agents in the procurement process or the administration of the contract
3.11
cost plus contract

cost reimbursement contract under which the contractor is paid for his actual expenditure plus a percentage or

other sum as previously agreed
[ISO 6707-2:2017, definition 3.4.11]
3.12
cost reimbursement contract
contract based on costs expended
[ISO 6707-2:2017, definition 3.4.10]
3.13
electronic auction

repetitive process involving an electronic device for the presentation of new prices, revised downwards or new

values concerning certain elements of tenders (or both), and which occurs after an initial full evaluation of the

tenders, enabling them to be ranked using an automatic evaluation method
3.14
eligibility criteria

criteria framed around the ability of a respondent or tenderer to provide the required goods, services and

construction works or disposals, or any combination thereof, which need to be satisfied in order for a

submission to be evaluated
3.15
employer

person or organization intending to or entering into a contract with the contractor to supply goods, carry out

construction works and / or provide services
3.16
expression of interest

request for respondents to register their interest in undertaking a specific contract or to participate in a project

or programme and to submit their credentials so they may, in terms of the employer's selection methods, be

invited to submit a tender offer should they qualify or be selected to do so
3.17
framework agreement

agreement between an employer and a contractor, the purpose of which is to establish the terms governing

orders to be awarded during a given period, in particular with regard to price and, where appropriate, the

quantity envisaged
3.18
fraudulent practice

misrepresentation of the facts in order to influence the tender process, the award of a contract arising from a

tender offer to the detriment of the employer, including collusive practices intended to establish prices at

artificial levels, or the administration of the contract including compensation procedures

3.19
joint venture

two or more contractors grouped together to carry out work and share the risks, where each is jointly and

severally liable for the actions and work of the other

[ISO 6707-2:2017, definition 3.8.3 – modified – “organizations” replaced with “contractors”]

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3.20
order

an instruction to supply goods, carry out construction works and / or provide services under a framework

agreement
3.21
organization

company, firm, enterprise, association or other legal entity, whether incorporated or not, or a public body

3.22
price adjustment

amount to be added or to be deducted from the contract price in accordance with the terms of the contract by

way of allowances for increases or decreases in the costs of labour, plant, materials and / or equipment

occurring during the performance of the contract
3.23
principal, noun
owner, partner, director or office bearer
3.24
procurement

process which creates, manages and fulfils contracts relating to the provision of goods, services and

construction works or disposals, or any combination thereof
3.25
procurement document
documentation used to initiate or conclude (or both) a contract
3.26
project
contract or a series of related contracts or orders
3.27
quality

totality of features and characteristics of a product or service that bears on the ability of the product or service

to satisfy stated or implied needs
3.28
respondent

person or organization that submits an expression of interest in response to an invitation to do so

3.29
scope of work

document that specifies and describes the goods, services, or construction works which are to be provided,

and any other requirements and constraints relating to the manner in which the contract work is to be

performed
3.30
secondary procurement policy

procurement policy that promotes objectives additional to those associated with the immediate objective of the

procurement itself
3.31
selection method
method by which tender offers are solicited from the market
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3.32
submission data

document that establishes the respondent's obligations in responding to a call for an expression of interest

and the employer's undertakings in administering the process of calling for and receiving expressions of

interest
3.33
suitable

capable of fulfilling or having fulfilled the intended function, or fit for its intended purpose

3.34
sustainability

state in which components of the ecosystem and their functions are maintained for the present and future

generations
[ISO 15392:2008, definition 3.20]
3.35
target cost contract

cost reimbursement contract under which a preliminary target cost is estimated and on completion of the work

the difference between the target cost and the actual cost is apportioned between the employer and contractor

on an agreed basis

[ISO 6707-2:2014 definition 3.4.12 – modified – “client”” replaced with “employer”]

3.36
targeted procurement procedure

process used to create a demand for the services or goods (or both) of, or to secure the participation of,

targeted enterprises and targeted labour in contracts in response to the objectives of a secondary

procurement policy
3.37
tender data

document that establishes the tenderer's obligations in submitting a tender and the employer's undertakings in

administering the tender process and evaluating tender offers
3.38
tender offer

written offer to supply goods, carry out construction works and / or provide services under given conditions,

usually at a stated price, and which is capable of acceptance and conversion into a binding contract

3.39
tenderer
person or organization that submits a tender offer
3.40
value for money
a) optimal use of resources to achieve intended outcomes, or
b) the effective, efficient and economic use of resources
4 Establishing a procurement system
4.1 General
4.1.1 Developing and documenting the system
An employer shall develop and document its procurement system
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a) in a manner which is fair, equitable, transparent, competitive and cost-effective and which may, subject to

the policies of an employer and any prevailing legislation, include the promotion of other objectives, in

accordance with the requirements of Table 1, and

b) around a process which commences once the need for procurement is identified, ends when the

transaction is completed and includes the attainment of procedural milestones which enable the system

to be controlled and managed (see Annex D).

The employer's executive shall designate persons to undertake the actions associated with the attainment of

procedural milestones (see Annex E).

NOTE Annex D provides generic procurement processes which incorporate activities linked to procedural milestones. A

procurement system can be developed around these generic processes.
Table 1 — Basic procurement system requirements
Attribute Basic system requirement

Fair The process of offer and acceptance is conducted impartially without bias and provides participating

parties simultaneous and timely access to the same information.

Terms and conditions for performing the work do not unfairly prejudice the interests of the parties.

Equitable The process of offer and acceptance is fair and just.

The only grounds for not awarding a contract to a tenderer who complies with all requirements are

restrictions from doing business with the employer, lack of capability or capacity, legal impediments

and conflicts of interest.

Transparent The procurement process and criteria upon which decisions are to be made are publicized. Decisions

(award and intermediate) are made publicly available, together with reasons for those decisions. It is

possible to verify that criteria were applied.

The requirements of procurement documents are presented in a clear, unambiguous, comprehensive

and understandable manner.

Competitive The system provides for appropriate levels of competition to ensure fair and cost-effective outcomes.

Cost-effective The processes, procedures and methods are standardized with sufficient flexibility enabling best-value

outcomes in respect of quality, timing and cost and least resources to effectively manage and control

procurement processes.

Decision making focusses on the attainment of value for money through the evaluation of relevant

costs and benefits together with the assessment of risks.

Promotion of The system may incorporate measures to promote objectives associated with a secondary

other objectives procurement policy (see 4.4) subject to qualified tenderers not being excluded and deliverables or

evaluation criteria being measurable, quantifiable and monitored for compliance.
4.1.2 Responding to decisions taken

The employer shall provide, upon request, written reasons to respondents and tenderers for any decisions

that are taken during a call for an expression of interest and an invitation to tender, but may withhold

information which
a) would not be in the public interest to be divulged,

b) is considered to prejudice the legitimate commercial interests of tenderers and respondents, or

c) might prejudice fair competition between tenderers.

Organizations should consider, when developing their procurement systems, how challenges resulting from

the outcomes of the tender process should be dealt with.
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4.2 Conduct of employees, agents and contractors
4.2.1 Code of conduct

The employer shall comply with all legal obligations and shall establish a code of conduct for procurement to

regulate the actions of its employees, agents, public office bearers or board members. Such a code shall at

least require that thes
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