Private Bid for “Name of Building” Construction
Administrative Rules for Private Bid: “Name of Building” Construction
1. General
On behalf of the principal, [Name of Principal], this document calls for private bids for the construction of the following project:
“Name and Address of the Work”
These administrative rules govern the bidding and execution of the project. This closed tender is governed by these administrative rules, complementary technical specifications, architectural drawings, specialty projects, technical standards, project clarifications, and the execution of works contract.
2. Definitions
- 2.1 Principal: [Name of Principal]
- 2.2 Funding: [Where resources are obtained]
- 2.3 ITO: Technical Inspector of Works
- 2.4 Lump Sum Motion: Fixed Price Bid, where quantities are determined by the bidder.
- 2.5 Contractor: Construction company undertaking the project.
3. Contract
3.1 Basis of Contract
The selected Contractor agrees to perform the work for a lump sum budget, including VAT, based on specified quantities and unit prices. The Contractor ensures the project’s completion and smooth service performance, adhering to the Rules, Plans, specifications, and other contract documents, and complying with all regulations for final City acceptance.
The contract will be “lump sum without adjustments” for a single, total, non-revisable price in Dollars, including all works, elements for completion, final Principal acceptance, and applicable taxes as of the proposal opening date.
The Contract adheres to the General Law of Urban Planning and Construction, ordinances, these Administrative Rules, and technical background: Planimetry, specifications, and project clarifications.
3.2 Legal Framework
The work’s execution is governed by:
- Sanitary Code (Supreme Decree No. 725 Health)
- General Health Law (DFL MOP No. 382)
- Organic Law of the Superintendency of Sanitary Services (Law No. 18,902)
- General Law of Urban Planning and Construction and General Ordinance
- Chilean National Standards Institute (INN) Standards
- The ESA
- Llanchipal Health Service Regulations
- Supreme Decree 548/88, Education
- Supreme Decrees No. 289/89, No. 977/97, and No. 594/99 of Health
- All regulations and ordinances governing construction techniques and architectural designs, which the bidder/contractor must know.
3.3 Other Considerations
The Contractor has no right to demand price increases or adjustments based on new laws with general or special adjustments, bonuses, or temporary impositions. Work decreases will be deducted and paid in the payment statement.
4. Bidding Process
4.1 Invitation to Construction Companies
Selected companies will be invited by letter to express their intention to participate.
4.2 Delivery of Documents
Participating companies will receive a CD with plans, specifications, and administrative bases on [Date and Year] at [Address] during business hours.
4.3 Site Visit
A mandatory site visit will be held on [Day and Year] at [Time and Place]. Minutes will be signed by company representatives, the surveyor, and the Principal’s representative. A signed copy must be presented at the bid opening.
4.4 Project Inquiries
Consultations can be made until [Date and Time] via fax ([Fax]), phone ([Telephone No.]), or email (ctnacionesunidas@yahoo.com) until [Time]. Address inquiries to [Name of Principal].
The bidder is responsible for raising any omissions or contradictions during the consultation phase.
Discrepancies between drawings and specifications should be clarified. Architectural details take precedence over general plans. Documents are interpreted for the most perfect work execution, project logic, and technical regulations. The bidder must clarify all doubts during bidding.
By bidding, the bidder waives claims for omissions and undertakes to perform all necessary work without additional cost, even if not explicitly included in the documents.
The Contractor must ensure their appointed professionals fully understand the documents.
All executed works will be in the Itemized Journal. Missing work should be assimilated to the closest existing item.
The Contractor provides electricity and water, obtains permits, manages temporary networks, pays costs, and removes them after use.
The Contractor handles permits and guarantees for public trail use and other national assets. They also cover pavement breakage and replacement costs.
The bid must include all elements, tools, scaffolding, etc., for material and equipment placement and installation.
Any work in drawings or documents without a specific item in the itemized payment must be included in the lump sum offer.
4.5 Responses to Inquiries
Answers will be provided until [Date] via fax and email by 12:00 to all invited companies.
4.6 Bid Opening
The bid opening is on [Date] at [Time] at [Address].
4.6.1 Bid Submission
Bids must be in two sealed envelopes: “Attached Documents” and “Technical and Financial Proposal.”
“Attached Documents” should contain:
- Bidder Identification (Annex 1)
- Affidavit (Annex 2)
- Certificate of good standing (less than 30 days old)
- DICOM certificate or Chamber of Commerce certificate
- Labor and Welfare Bulletin showing no outstanding debts to workers
- Contractor Registration Certificate (MOP 6 OC 3rd category or above, or Minvu A-2 3rd Category or above, or proof of initiated activities since August 15, 2004, under IBS codes 50011, 50013, or 50021)
- Signed Administrative Rules, plans, specifications, and clarifications
- Resident Professional Resume
- Professional Staff Organization
- List of machinery, equipment, and tools (quantity, make, model, year)
- List of works in progress/under contract, with security and quality details
“Technical and Financial Bid” should contain:
- Bid security of $300,000, valid for 60 days
- Gantt chart
- Monthly cash flow projections
- Detailed budget by item (direct cost, overhead, profit, net cost, VAT, total)
- Unit Price Analysis
- CD with digital budget, Gantt chart, cash flow, and APU
- Economic Offer (Annex 3)
4.6.2 Proposal Submission
Envelopes must be delivered personally by a company representative at the specified time and place. Late submissions will be excluded.
By submitting a bid, the contractor acknowledges awareness of site conditions, including weather, material supply, transportation, utilities, manpower, topography, and soil quality.
4.6.3 Opening Procedure
The Evaluation Commission will meet with participating companies on [Date] at 12:00 pm at [Place]. The Commission will comprise [Commission Members].
Envelopes will be opened, and document submission verified. Absences will be recorded. Missing documents in Annexes can be submitted within the period specified in section 4.6.7.
Missing documents in the technical and economic offer will disqualify the bidder.
The commission may request additional information before awarding, without altering fairness.
Records will be signed by committee members and company representatives.
No bids will be received, modified, or withdrawn after the deadline.
4.7 Evaluation and Award
The Evaluation Commission will review bids and inform the Principal within three working days. The award decision will be communicated in writing. The award will occur by December 31, [Year]. Unsuccessful bidders will be notified by email and fax and are not entitled to compensation. Bid securities can be requested back.
5. Contract
5.1 Contract Signing
The contract will be signed within 10 days of the award notification in Puerto Montt. The date, time, and notary will be communicated. The signing date is the land delivery date. The Contractor must provide a performance bond.
If the awarded company doesn’t sign within the deadline, the bid security is forfeited, and the award may go to the second-best bidder or be negotiated directly with other companies.
5.2 Land Delivery
Land will be delivered upon contract signing, and a Certificate of Land Delivery will be issued. The performance bond will be received before signing.
5.3 Performance Terms
The contract period starts with land delivery and is no more than [Number] calendar days. Term increases are only allowed for unforeseen circumstances or force majeure, subject to ITO and Principal approval.
6. Contract Price
The contract price covers total construction, including approvals, receptions, payments, fees, registrations, warranties, etc. It includes all expenses for contract performance.
It also includes plan development/modification fees, specifications, certifications, and material testing required by the ITO. The Contractor is liable for damages caused to third parties.
The bid must include all items in specifications and plans, even if omitted from the budget format, with no right to demand additional payment.
The Contractor is responsible for payments to the municipality or services for pavement damage, street occupation, etc., and any resulting fines.
7. Contract Guarantees
The Contractor must provide a performance bond of 8% of the total contract value, valid for the contract period plus 60 days.
7.1 Return of Guarantees
The performance bond will be returned after temporary reception and upon delivery of a correct execution guarantee of 3% of the total contract value, valid for 13 months. The exchange must occur within 15 days of temporary reception. The correct execution guarantee will be returned after final acceptance.
8. Terms and Fines
8.1 Work Delays
Delays are the difference between the contract deadline (including extensions) and the actual completion date. Delays incur a daily fine of 1.5 per thousand of the net contract value. The Principal and ITO will determine normalization standards and request updates if delays occur.
8.2 Other Fines
- Lack of professional in charge: 2 UTM/day (max 5 days/month), then contract termination.
- Lack of risk prevention expert: 1 UTM/day.
- Lack of work sign: 2 UTM/day.
- Lack of work book or adulteration: 2 UTM/day.
- Non-compliance with ITO material removal order: 1 UTM/day.
9. Technical Inspection of the Work
The ITO, appointed by the Principal, supervises contract implementation and ensures the Principal’s interests regarding proper execution. The Contractor must provide an office space for the ITO.
The ITO may require studies and tests at the Contractor’s expense, including concrete tests, material certifications, and hydraulic pressure tests.
9.1 Work Books
As per OGUC, a triplicate work book must be maintained, recording ITO orders, observations, designer observations, and other technical communications. The Resident Professional is responsible for the book, which must be available to the ITO. The original goes to the ITO, the first copy to the Contractor, and the second copy remains in the book.
10. Work Execution
10.1 Staff
The Contractor must have a permanent Resident Professional (Architect, Civil Engineer, Construction Engineer, or Constructor Civil) with at least 5 years of experience. The ITO must authorize replacements. The Principal/ITO can demand personnel replacement. A risk prevention expert and technical heads of works are also required.
10.2 Contractor Obligations
The Contractor pays all fees and charges, obtains permits and approvals, and is liable for damages to third parties. They must follow the General Ordinance of Urbanism and Construction and other regulations. They are forbidden from making unauthorized plan or specification changes. Materials must be new and approved by the ITO.
10.3 Other Considerations
The Contractor must comply with the General Ordinance of Urbanism and Construction, including maintaining traffic, preventing damage to third-party facilities, clearing the work area, and maintaining public utilities. They are responsible for protecting existing services and informing the ITO of any interference. Changes to public services are the Contractor’s responsibility.
10.4 Subcontracting
The Contractor may not transfer the contract or assign rights. Subcontractors must be approved by the ITO and Principal. The Contractor is responsible for subcontractor obligations and any conflicts with their staff. The Principal has no involvement with subcontractor staff.
11. Payment Statements
11.1 Monthly Payment Statements
Payments will be made monthly, based on work progress, countersigned by the ITO. The payment statement closure is on the 10th of each month, unless instructed otherwise. The Contractor must provide a detailed breakdown by item, including direct cost, overheads, profit, net value, VAT, and total, along with labor details.
11.2 Payment Statement Processing
The Contractor must submit payment statements to the ITO for verification within two days. Required documents include: inspection certificate (no outstanding payments), interim statements and staff contracts, notarized invoice for the previous payment, and photographs.
11.3 Payment Statement Characteristics
Payment statements are partial advances and do not constitute acceptance of work quality. No statements for stored materials or planned works are allowed.
11.4 Final Payment Statement
The final statement is submitted after temporary reception and upon receiving the correct execution guarantee. Required documents include: final acceptance certificates for installations, inspection certificate (no outstanding claims), Municipal Works certificate, health service reception, as-built drawings, operating instructions, and certificates of no debt.
The Principal may deduct outstanding obligations from guarantees.
12. Provisional Reception of Works
12.1 Reception Process
The process includes: written request by the Contractor, ITO verification, ITO report, invitation to SECREDUC, committee appointment, committee constitution, observation record (if any), and provisional certificate issuance. The certificate includes project name, contractor, contract date, completion dates, and final acceptance date.
12.2 Work Completion
Early completion requires a written request to the ITO. Updated drawings must be delivered. The Contractor must obtain the Municipal certificate of works.
12.3 Documents for Temporary Reception
Required documents include: final acceptance certificates, inspection certificate, Municipal Works certificate, health service reception, as-built drawings, operating instructions, certificates of no debt, video, and photographs. If there are observations, a report is raised, and a deadline for repairs is set. Unfinished work will cancel the provisional reception process.
13. Final Reception of Works
Final acceptance verifies the work’s behavior and checks for defects one year after temporary reception. The Contractor requests final acceptance in writing. A final acceptance certificate is issued upon completion, and the Contractor can request guarantee reimbursement.
14. Contract Termination
The contract can be terminated due to breach of duty, early termination, or mutual agreement.
14.1 Early Termination
The Principal may terminate the contract administratively in cases of: failure to start works, work stoppage, bankruptcy, company dissolution, contractor death, or repeated non-compliance with ITO instructions.
14.1.1 Early Termination Charged to the Contract
If the Contractor is responsible for early termination, the Principal will continue the work, retain outstanding balances and guarantees, and hold a single reception. The retained values will be used to complete the work. The original Contractor is responsible for increased spending.
14.1.3 Contract Closure Due to Contractor Death
The contract will be settled, and heirs will be paid for completed work. The Principal may agree with the heirs to continue the work.
14.2 Termination by Joint Agreement
Termination by joint agreement involves suspending payments, holding a single reception, hiring a second contractor, liquidating the contract with the original Contractor, and handling any cost differences.
15. Work Signs
The Principal provides a sign, and the Contractor must install it within 10 days of land delivery. Failure to do so incurs a penalty of 2 UTM per day. The sign must remain until final acceptance.
16. Insurance Policy
The Contractor must obtain TRCM, RC, Employer’s Liability, Personal Injury, and Machinery and Equipment insurance, covering the Principal, Contractor, subcontractors, and professionals. The insurance must cover the total contract value, with deductibles not exceeding 500 UF.
17. Documents to be Stored at the Work Site
The Contractor must maintain updated copies of the contract, offer, budget, work programs, administrative bases, technical background, performance security, insurance policy, amendments, payment statements, and paid bills. Absence of documents may lead to payment suspension.
18. Post-Delivery
The Contractor is responsible for post-delivery warranty service and latent defect repairs, as per the General Law on Urban Planning and Construction. If the Contractor fails to address issues within 48 hours, the Principal may hire third parties, charging the cost to the Contractor.
19. Graphic and Film Material
The Contractor must provide monthly photographs and a final film documenting the project.
20. Commemorative Plate
The Contractor must install a commemorative plate after final acceptance.
Annex 1: Bidder Identification
[Content of Annex 1]
Annex 2: Sworn Statement
[Content of Annex 2]
Annex 3: Economic Offer
[Content of Annex 3]