ISO/DIS 10845-3

Construction procurement

Marchés de construction

Standards Content (sample)

DRAFT INTERNATIONAL STANDARD
ISO/DIS 10845-3
ISO/TC 59/SC 18 Secretariat: SABS
Voting begins on: Voting terminates on:
2020-09-29 2020-12-22
Construction procurement —
Part 3:
Standard conditions of tender
Marchés de construction —
Partie 3: Conditions types normalisées des soumissions
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.
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STANDARDS MAY ON OCCASION HAVE TO
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WHICH REFERENCE MAY BE MADE IN
Reference number
NATIONAL REGULATIONS.
ISO/DIS 10845-3:2020(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
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ISO/DIS 10845-3:2020(E)
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© ISO 2020

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ii © ISO 2020 – All rights reserved
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ISO/DIS 10845-3:2020(E)
Contents Page

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

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

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

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

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

4 General requirements ..................................................................................................................................................................................... 4

4.1 Actions ............................................................................................................................................................................................................ 4

4.2 Tender documents ............................................................................................................................................................................... 4

4.3 Interpretation .......................................................................................................................................................................................... 4

4.4 Communication and employer's agent ............................................................................................................................... 4

4.5 Employer's right to accept or reject any tender offer ............................................................................................ 5

4.6 Procurement procedures ............................................................................................................................................................... 5

4.6.1 General...................................................................................................................................................................................... 5

4.6.2 Competitive negotiation procedure ................................................................................................................ 5

4.6.3 Proposal procedure using the two-stage tendering system ....................................................... 5

5 Tenderer's obligations .................................................................................................................................................................................... 6

5.1 Eligibility ...................................................................................................................................................................................................... 6

5.1.1 Submit a tender offer ................................................................................................................................................... 6

5.1.2 Notify the employer....................................................................................................................................................... 6

5.2 Cost of tendering ................................................................................................................................................................................... 6

5.3 Checking documents .......................................................................................................................................................................... 6

5.4 Confidentiality and copyright of documents ................................................................................................................. 6

5.5 Reference documents ........................................................................................................................................................................ 6

5.6 Acknowledging addenda ................................................................................................................................................................ 7

5.7 Clarification meeting.......................................................................................................................................................................... 7

5.8 Seeking clarification ........................................................................................................................................................................... 7

5.9 Insurance ..................................................................................................................................................................................................... 7

5.10 Pricing the tender offer.................................................................................................................................................................... 7

5.11 Alterations to documents ............................................................................................................................................................... 7

5.12 Alternative tender offers ................................................................................................................................................................ 7

5.13 Tender submissions ............................................................................................................................................................................ 8

5.13.1 General submission requirements ................................................................................................................... 8

5.13.2 Signatures .............................................................................................................................................................................. 8

5.13.3 Tender securities ............................................................................................................................................................. 8

5.13.4 Inclusion of certificates .............................................................................................................................................. 8

5.13.5 Sealing of documents ................................................................................................................................................... 8

5.13.6 Employer's acceptance of tender submissions ...................................................................................... 8

5.14 Information and data to be completed in all respects .......................................................................................... 9

5.15 Closing time ............................................................................................................................................................................................... 9

5.16 Tender offer validity ........................................................................................................................................................................... 9

5.16.1 Period of validity .............................................................................................................................................................. 9

5.16.2 Withdrawal of tenders ................................................................................................................................................ 9

5.17 Clarification of tender offer after submission .............................................................................................................. 9

5.18 Other material ......................................................................................................................................................................................... 9

5.19 Inspections, tests and analysis ...............................................................................................................................................10

5.20 Submitting securities, bonds, policies, etc. ..................................................................................................................10

5.21 Checking final draft ..........................................................................................................................................................................10

5.22 Returning other tender documents ...................................................................................................................................10

6 Employer's undertakings .........................................................................................................................................................................10

6.1 Responding to requests from the tenderer .................................................................................................................10

6.2 Issuing addenda ..................................................................................................................................................................................10

6.3 Returning late tender offers .....................................................................................................................................................11

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ISO/DIS 10845-3:2020(E)

6.4 Opening of tender submissions .............................................................................................................................................11

6.5 Two-envelope system .....................................................................................................................................................................11

6.6 Non-disclosure .....................................................................................................................................................................................11

6.7 Grounds for rejection and disqualification ..................................................................................................................11

6.8 Test for responsiveness ................................................................................................................................................................11

6.9 Arithmetical errors, omission and discrepancies ..................................................................................................12

6.10 Clarification of a tender offer ..................................................................................................................................................12

6.11 Evaluation of tender offers ........................................................................................................................................................13

6.11.1 General...................................................................................................................................................................................13

6.11.2 Method 1: Financial offer.......................................................................................................................................13

6.11.3 Method 2: Financial offer and quality .........................................................................................................13

6.11.4 Method 3: Financial offer and preferences ............................................................................................14

6.11.5 Method 4: Financial offer, quality and preferences .........................................................................14

6.11.6 Decimal places ................................................................................................................................................................15

6.11.7 Scoring financial offers ............................................................................................................................................15

6.11.8 Scoring preferences ....................................................................................................................................................15

6.11.9 Scoring quality ................................................................................................................................................................15

6.12 Insurance provided by the employer ................................................................................................................................16

6.13 Acceptance of a tender offer .....................................................................................................................................................16

6.14 Preparing contract documents ...............................................................................................................................................16

6.15 Completing adjudicator's contract ......................................................................................................................................16

6.16 Notice to successful and unsuccessful tenderers ...................................................................................................16

6.17 Providing copies of the contracts .........................................................................................................................................17

6.18 Returning of tender securities ................................................................................................................................................17

6.19 Providing written reasons for actions taken ..............................................................................................................17

Annex A (informative) Commentary ..................................................................................................................................................................18

Annex B (informative) Tender data ....................................................................................................................................................................38

Annex C (informative) Evaluating tender offers ....................................................................................................................................44

Annex D (informative) Example of a tender security .......................................................................................................................67

Annex E (informative) Evaluation reports ...................................................................................................................................................68

Annex F (informative) Impact of different formulae and weightings in the scoring of points

in Methods 2, 3 and 4 ....................................................................................................................................................................................71

Bibliography .............................................................................................................................................................................................................................76

iv © ISO 2020 – All rights reserved
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ISO/DIS 10845-3:2020(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 10845-3 was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works,

Subcommitee SC18, Construction Procurement.
A list of all parts in the ISO 10845 series can be found on the ISO website
This second edition cancels and replaces the first edition (ISO 10845-3:2011)
The main changes to the previous edition are:

— definitions and parts of the text have been updated and aligned with other parts of ISO 10845;

— the methods for evaluating tenders have been modified and the implications of choices made in

applying such methods explained; and
— an informative annex on the formulation of evaluation reports has been added
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ISO/DIS 10845-3:2020(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 engaged 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

method; 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.

Conditions of tender are required to establish procedures from the time that tenders are invited to the

time that a contract is awarded. Such conditions document the procedures, the manner in which those

engaged in the procurement process are to behave, the obligations of the tenderer and the undertakings

of the employer.

This document 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.
vi © ISO 2020 – All rights reserved
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DRAFT INTERNATIONAL STANDARD ISO/DIS 10845-3:2020(E)
Construction procurement —
Part 3:
Standard conditions of tender
1 Scope
This document sets out standard conditions of tender which
a) bind the employer and tenderer to behave in a particular manner,

b) establish what a tenderer is required to do in order to submit a compliant tender,

c) make known the evaluation criteria to tenderers, and

d) establish the manner in which the employer conducts the process of offer and acceptance and

provide the necessary feedback to tenderers on the outcomes of the process.

This document is intended for use in procurements relating to goods, services and construction works

and disposals other than by auction.

NOTE 1 Annex A contains commentary on the clauses in this part of ISO 10845. Annex B provides guidance on

how to develop the tender data for a procurement document using this part of ISO 10845. Annexes C and E offers

guidance on the evaluation of expressions of interest and the structuring of evaluation reports, respectively.

NOTE 2 ISO 10845-2 establishes the manner in which procurement documents should be formatted and

compiled. The standard conditions contained in this part of ISO 10845 may by reference be incorporated in

procurement documents formatted and compiled in accordance with the provisions of ISO 10845-2.

NOTE 3 ISO 10845-4 establishes requirements relating to pre-qualification of tenderers who are invited to

submit a tender offer in terms of a selection method described in ISO 10845-1.
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.
3.1
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, definition 3.5.11]
3.2
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 is recognized as

owing under the terms of the contract
[SOURCE: Adapted from ISO 6707-2:2017, definition 3.5.40]
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ISO/DIS 10845-3:2020(E)
3.3
comparative offer

tenderer's financial offer after all tendered parameters that can affect the value of the financial offer

have been taken into consideration to enable comparisons to be made on a comparable basis

3.4
conflict of interest

situation where business, financial, family, political or personal interests could interfere with the

judgment of persons in carrying out their duties for the organisation
[SOURCE: ISO 37001:2016, definition 3.29]
3.5
contract data

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

specific data
[SOURCE: ISO 10845-1:2010, definition 3.10]
3.6
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 tender process
[SOURCE: Adapted from ISO 10845-1:2010, definition 3.13]
3.7
eligibility criteria

criteria framed around the ability of a 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
3.8
employer

person or organization intending to or entering into a contract with the contractor for the provision of

goods, services, or construction works
[SOURCE: ISO 10845-1:2010, definition 3.17]
3.9
form of offer and acceptance
document that formalizes the legal process of offer and acceptance
[SOURCE: ISO 10845-2:2011, definition 2.15]
3.10
form of securities
document that provides for the securities required by the employer
[SOURCE: ISO 10845-2:2011, definition 2.16]
3.11
fraudulent practice

misrepresentation of the facts in order to influence the tender process, or 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
[SOURCE: Adapted from ISO 10845-1:2010, definition 3.20]
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ISO/DIS 10845-3:2020(E)
3.12
joint venture

two or more organizations grouped together to carry out work and share the risks, where each isjointly

and severally liable for the actions and work of the other
[SOURCE: ISO 6707-2:2017, definition 3.8.3]
3.13
organization

person or group of people that has its own functions with responsibilities, authorities and relationships

to achieve its objectives
[SOURCE: ISO 37001:2016, definition 3.2]

Note 1 to entry: The concept of organization includes, but is not limited to sole-trader, company, corporation, firm,

enterprise, authority, partnership, charity or institution, or part or combination thereof, whether incorporated

or not, public or private.

Note 2 to entry: For organizations with more than one operating unit, one or more of the operating units can be

defined as an organization
3.14
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
[SOURCE: ISO 10845-1:2010, definition 3.35]
3.15
returnable document

document that a tenderer is required to complete and submit to the employer as part of his tender

submission
[SOURCE: ISO 10845-2:2011, definition 2.22]
3.16
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
[SOURCE: ISO 10845-1:2010, definition 3.37]
3.17
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
[SOURCE: ISO 10845-1:2010, definition 3.45]
3.18
tender offer

written offer for the provision of goods, or to carry out a service or construction works under given

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

contract
[SOURCE: ISO 10845-1:2010, definition 3.46]
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ISO/DIS 10845-3:2020(E)
3.19
tenderer
person or organization that submits a tender offer
[SOURCE: ISO 10845-1:2010, definition 3.47]
4 General requirements
4.1 Actions

The employer and each tenderer submitting a tender offer shall comply with the standard conditions of

tender. In their dealings with each other, they shall discharge their duties and obligations, as set out in

Clauses 5 and 6, in a timely manner and with integrity, behave equitably, honestly and transparently,

comply with all legal obligations and not engage in anti-competitive practices.

The employer and the tenderer, and all the agents and employees involved in the tender process, shall

avoid conflicts of interest and, where a conflict of interest is perceived or known, declare any such

conflict of interest, indicating the nature of such conflict. Tenderers shall declare any potential conflict

of interest in their tender submissions. Employees, agents and advisors of the employer shall declare

any conflict of interest to whoever is responsible for overseeing the procurement process at the start of

any deliberations relating to the procurement process or as soon as they become aware of such conflict,

and abstain from any decisions where such conflict exists or recuse themselves from the procurement

process, as appropriate.

The employer shall not seek and a tenderer shall not submit a tender without having a firm intention

and the capacity to proceed with the contract.

NOTE 1 A conflict of interest can arise due to a conflict of roles which can provide an incentive for improper

acts in some circumstances or positions. A conflict of interest can create an appearance of impropriety that can

undermine confidenc
...