ISO 10845-3:2011

INTERNATIONAL ISO
STANDARD 10845-3
First edition
2011-01-15

Construction procurement —
Part 3:
Standard conditions of tender
Marchés de construction —
Partie 3: Conditions types normalisées des soumissions




Reference number
ISO 10845-3:2011(E)
©
ISO 2011

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ISO 10845-3:2011(E)
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ISO 10845-3:2011(E)
Contents Page
Foreword .v
Introduction.vi
1 Scope.1
2 Terms and definitions .1
3 General requirements .4
3.1 Actions.4
3.2 Tender documents .4
3.3 Interpretation .4
3.4 Communication and employer's agent .4
3.5 Employer's right to accept or reject any tender offer.4
3.6 Procurement procedures.5
3.6.1 General .5
3.6.2 Competitive negotiation procedure.5
3.6.3 Proposal procedure using the two-stage tendering system.5
4 Tenderer's obligations .6
4.1 Eligibility.6
4.1.1 Submit a tender offer .6
4.1.2 Notify the employer.6
4.2 Cost of tendering.6
4.3 Checking documents .6
4.4 Confidentiality and copyright of documents.6
4.5 Reference documents.6
4.6 Acknowledging addenda .6
4.7 Clarification meeting.6
4.8 Seeking clarification.6
4.9 Insurance.7
4.10 Pricing the tender offer.7
4.11 Alterations to documents .7
4.12 Alternative tender offers.7
4.13 Tender submissions.7
4.13.1 General submission requirements .7
4.13.2 Signatures .8
4.13.3 Tender securities.8
4.13.4 Inclusion of certificates .8
4.13.5 Sealing of documents .8
4.13.6 Employer's acceptance of tender submissions.8
4.14 Information and data to be completed in all respects.8
4.15 Closing time .8
4.16 Tender offer validity .9
4.16.1 Period of validity.9
4.16.2 Withdrawal of tenders.9
4.17 Clarification of tender offer after submission .9
4.18 Other material .9
4.19 Inspections, tests and analysis .9
4.20 Submitting securities, bonds, policies, etc. .9
4.21 Checking final draft.9
4.22 Returning other tender documents .10
5 Employer's undertakings.10
5.1 Responding to requests from the tenderer .10
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ISO 10845-3:2011(E)
5.2 Issuing addenda. 10
5.3 Returning late tender offers. 10
5.4 Opening of tender submissions. 10
5.5 Two-envelope system . 11
5.6 Non-disclosure. 11
5.7 Grounds for rejection and disqualification . 11
5.8 Test for responsiveness . 11
5.9 Arithmetical errors, omission and discrepancies . 11
5.10 Clarification of a tender offer. 12
5.11 Evaluation of tender offers . 12
5.11.1 General. 12
5.11.2 Method 1: Financial offer . 12
5.11.3 Method 2: Financial offer and quality . 13
5.11.4 Method 3: Financial offer and preferences . 13
5.11.5 Method 4: Financial offer, quality and preferences. 14
5.11.6 Decimal places. 14
5.11.7 Scoring financial offers. 14
5.11.8 Scoring preferences . 15
5.11.9 Scoring quality. 15
5.12 Insurance provided by the employer. 15
5.13 Acceptance of a tender offer . 15
5.14 Preparing contract documents. 16
5.15 Completing adjudicator's contract . 16
5.16 Notice to successful and unsuccessful tenderers. 16
5.17 Providing copies of the contracts. 16
5.18 Returning of tender securities. 16
5.19 Providing written reasons for actions taken. 16
Annex A (informative) Commentary . 17
Annex B (informative) Tender data. 36
Annex C (informative) Evaluating tender offers. 42
Annex D (informative) Example of a tender security. 58
Bibliography. 59

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ISO 10845-3:2011(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.
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

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ISO 10845-3:2011(E)
Introduction
Procurement is the process which creates, manages and fulfils contracts. Procurement can, as such, be
described as a succession of logically related actions occurring or performed in a definite manner and which
culminate in the completion of a major deliverable or the attainment of a milestone. Processes, in turn, are
underpinned by methods (i.e. a documented, systematically ordered collection of rules or approaches) and
procedures (i.e. the formal steps to be taken in the performance of a specific task), which are informed and
shaped by the policy of an organization. Methods and procedures can likewise be documented and linked to
processes.
Conditions of tender are required to establish procedures from the time that tenders are invited to the time that
a tender 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.

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INTERNATIONAL STANDARD ISO 10845-3:2011(E)

Construction procurement —
Part 3:
Standard conditions of tender
1 Scope
This part of ISO 10845 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 part of ISO 10845 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.
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.
2 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
2.1
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
[ISO 10845-1:2010, definition 3.3]
2.2
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 would be recognized as owing under
the terms of the contract
NOTE Adapted from ISO 6707-2:1993, definition 3.5.4.
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ISO 10845-3:2011(E)
2.3
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
2.4
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 fulfill 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
[ISO 10845-1:2010, definition 3.8]
2.5
contract data
document that identifies the applicable conditions of a contract and states the associated contract-specific
data
[ISO 10845-1:2010, definition 3.10]
2.6
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
NOTE Adapted from ISO 10845-1:2010, definition 3.13.
2.7
employer
person or organization intending to or entering into a contract with the contractor for the provision of goods,
services, or engineering and construction works
[ISO 10845-1:2010, definition 3.17]
2.8
form of offer and acceptance
document that formalizes the legal process of offer and acceptance
[ISO 10845-2:2011, definition 2.15]
2.9
form of securities
document that provides for the securities required by the employer
[ISO 10845-2:2011, definition 2.16]
2.10
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
NOTE Adapted from ISO 10845-1:2010, definition 3.20.
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ISO 10845-3:2011(E)
2.11
joint venture
grouping of two or more contractors acting as one legal entity, where each is liable for the actions of the other
[ISO 6707-2:1993, definition 3.4.22]
2.12
organization
company, firm, enterprise, association or other legal entity, whether incorporated or not, or a public body
[ISO 10845-1:2010, definition 3.23]
2.13
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
[ISO 10845-1:2010, definition 3.35]
2.14
returnable document
document that a tenderer is required to complete and submit to the employer as part of his tender submission
[ISO 10845-2:2011, definition 2.22]
2.15
scope of work
document that specifies and describes the goods, services, or engineering and 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
[ISO 10845-1:2010, definition 3.37]
2.16
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
[ISO 10845-1:2010, definition 3.45]
2.17
tender offer
written offer for the provision of goods, or to carry out a service or engineering and construction works under
given conditions, usually at a stated price, and which is capable of acceptance and conversion into a binding
contract
[ISO 10845-1:2010, definition 3.46]
2.18
tenderer
person or organization that submits a tender offer
[ISO 10845-1:2010, definition 3.47]
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ISO 10845-3:2011(E)
3 General requirements
3.1 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 4 and
5, 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
confidence in the ability of that person to act properly in said circumstance or position, even if no improper acts result.
NOTE 2 Conflicts of interest with respect to those engaged in the procurement process include direct, indirect or family
interests in the tender or outcome of the procurement process and any personal bias, inclination, obligation, allegiance or
loyalty which can in any way affect any decisions taken.
3.2 Tender documents
The documents issued by the employer for the purpose of a tender offer are listed in the tender data.
3.3 Interpretation
The tender data and additional requirements contained in the tender schedules that are included in the
returnable documents are deemed to be part of the standard conditions of tender in this part of ISO 10845.
The standard conditions of tender contained in this part of ISO 10845, the tender data and tender schedules
which are only required for tender evaluation purposes, shall not form part of any contract arising from the
invitation to tender.
3.4 Communication and employer's agent
Each communication between the employer and a tenderer shall be to or from the employer's agent only, and
in a form that can be read, copied and recorded, and in the language stated in the tender data. The employer
shall not take any responsibility for non-receipt of communications from or by a tenderer. The name and
contact details of the employer's agent are stated in the tender data.
3.5 Employer's right to accept or reject any tender offer
The employer may accept or reject any variation, deviation, tender offer, or alternative tender offer, and may
cancel the tender process and reject all tender offers at any time before the formation of a contract. The
employer shall not accept or incur any liability to a tenderer for such cancellation and rejection, but shall give
written reasons for such action upon written request to do so.
The employer may not, subsequent to the cancellation or abandonment of a tender process or the rejection of
all responsive tender offers, re-issue a tender covering substantially the same scope of work within a period of
six months unless only one tender was received and such tender was returned unopened to the tenderer.
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ISO 10845-3:2011(E)
3.6 Procurement procedures
3.6.1 General
Unless otherwise stated in the tender data, a contract shall, subject to 5.13, be concluded with the tenderer
who, in terms of 5.11, is the highest ranked or the tenderer scoring the highest number of tender evaluation
points, as relevant, based on the tender submissions that are received at the closing time for tenders.
3.6.2 Competitive negotiation procedure
Where the tender data require that the competitive negotiation procedure is to be followed, tenderers shall
submit tender offers in response to the proposed contract in the first round of submissions. Notwithstanding
the requirements of 5.4, the employer shall only announce the names of the tenderers who make a
submission. The requirements of 5.8, relating to the material deviations or qualifications which affect the
competitive position of tenderers, shall not apply.
All responsive tenderers, or not less than three responsive tenderers that are highest ranked in terms of the
evaluation method and evaluation criteria stated in the tender data, shall be invited in each round to enter into
competitive negotiations, based on the principle of equal treatment and keeping confidential the proposed
solutions and associated information. Notwithstanding the provisions of 4.17, the employer may request that
tenders be clarified, specified and fine-tuned in order to improve a tenderer's competitive position, provided
that such clarification, specification, fine-tuning or additional information does not alter any fundamental
aspects of the offers or impose substantial new requirements which restrict or distort competition or have a
discriminatory effect.
At the conclusion of each round of negotiations, tenderers shall be invited by the employer to make a fresh
tender offer, based on the same evaluation criteria, with or without adjusted weightings. Tenderers shall be
advised when they are to submit their best and final offer.
The contract shall be awarded in accordance with the provisions of 5.11 and 5.13 after tenderers have been
requested to submit their best and final offer.
3.6.3 Proposal procedure using the two-stage tendering system
3.6.3.1 Option 1
In the first stage, tenderers shall submit technical proposals and, if required, cost parameters around which a
contract may be negotiated.
The employer shall evaluate each responsive submission in terms of the method of evaluation stated in the
tender data.
In the second stage, the employer shall negotiate a contract with the tenderer scoring the highest number of
evaluation points and award the contract in terms of the standard conditions of tender.
3.6.3.2 Option 2
In the first stage, tenderers shall submit only technical proposals. In the second stage,
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