Ronald, Thanks for the comment. That is good because you are getting valuable experience even if you are not being paid for it. Feel free to contact me by email if need be. Is it the responsibility of procurement officers to prepare Local Purchase Orders LPOs or it is the work of the accounts?
Hope this helps. Please understand that a Local Purchase Order is simply a contract that does not stipulate, require or include too much detail. For example: General and specific conditions of contract. The role of Accounts is to make timely payments to the suppliers in this regard, among others things. I initially started this profession with absolutely no idea. As I write, I am currently undergoing almost three months training with a World Bank expert. Is it possible to do this?
The universities of Cranfield and Nottingham offer relevant programs. Dear jorge, I really enjoyed reading your article. May I please know if it is right to disqulify bidders if the bid security form is in different format to that provided in the tender document or it is missing but the bidder is willing to submit the same.
Thank you. Your question is an interesting one. It really depends on responsiveness. Are there any financial implications to the Bank for issuing a bid security?
In reality, there should be no risk to the bank. Depending on the relationship they have with the contractor, it seems to me they would protect themselves by demanding some form of guarantee in the event the contractor has to forfeit the bid security. There is a clear distinction between the performance guarantee and the bid security.
This helps to weed out bidders with a history of poor performance, as well as those who lack the funds to complete the project successfully. When a job is issued for bids, the owner will specify whether bid bonds are required. Bid security typically represents a percentage of the total bid, and will vary widely depending on the requirements of the project. Contractors will request bid bonds in this amount from their bonding agents, who will issue a bond directly to the contractor.
The contractor will then submit both his bid and the bid bond to the project owner. All bidders who are not awarded the project will have their bonds returned to them once the bidding process is complete.
The contractor who wins the job will also receive his bond back once he signs a contract for the job. In effect, the contract now takes the place of the bid bond in protecting the owner from risk.
The idea of notarizing has added value to my understanding and application of the BSD. Otherwise, it is a good alternative to help capable companies that may not have the resources to secure bid security. In my experience, most procuring entities are reluctant to use the BSD instead of the bid security, but it is just as effective if correctly applied.
Thanks for this insight. It is really helpful. The bid securing declaration looks like a best alternative of bid security. Thank you Mr. Jorge, we appreciate your effort toward the development of the coming generation professionals. In case the validity period of Bid Security in the form of a Bid Securing Declaration is expired prior to award of the contract, how do the bidder extend the period of validity of bid and bid security?
Should the bidder furnished or execute another BSD effective the date of expiry to extend, or any other means? The Bid Securing Declaration needs to be treated in the same manner as the Bid Security because it has the same function. So, the bidder would be requested to extend the validity of the Bid Securing Declaration, and they would have the right to comply or not, under the conditions clearly stipulated in the contract.
For a bid securing declaration to be responsive, it must also consider the bid validity period. Usually, a bid securing instrument will expire days after the expiry of the bid validity period. However, procurement entities are required to conclude decisions for the award before the expiry of the bid validity period.
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