DEVELOPMENT OF OFFER BY CANDIDATE.

Offer is a proposal for signing a contract meeting specific requirements. It is one of the main documents in Tender documentation.

Firstly, the proposal shall be definite enough.

Secondly, the proposal shall be made to concrete person.

Thirdly, the proposal shall be made in order to sign Contract.

Offer may be sent by letter, telegram, fax but necessarily in accordance with the requirements and conditions defined in Tender documentation.

Offer structure

Offer structure shall give company’s background, its technical base and directly commercial proposal.

General data about candidate:

• full name of the company (candidate), his address, telephone, telefax and others;
• profile direction of activity;
• exemplifications of registration and regulations documents, bank data;
• licenses for special kinds of activity;
• annual work content during the last three years analogical to activities which are subject of Tender,
• data on structure and qualification of technical and operative staff for the last three years;
• list of equipment necessary for fulfillment of regarded work;
• data on financial state including balance, calculation of benefit for the last three years;
• information about candidate’s paying capacity signed by authorized bank;
• working experience and seniority in the field defined by the subject of Tender.

Technical part:

• charts and diagrammes of work production;
• schedule of delivering of construction machinery and technological equipment;
• composition of attracted ,material and labour resources, construction machinery;
• list of attracted subcontractors and transport oragnisations;
• operating mode, training of the staff;
• accommodation of the staff;

Commercial part:

• price suggested by Tender participant for Tender subject, terms and composition of price revision;
• conditions, kinds and methods of payments, procedure of financing, credit conditions of work.

PROVISION OF APPLICATION FOR PARTICIPATION IN TENDER

To participate in Tender Candidate submits package of documents to Tender Committee including application for participation in Tender and under complicate technical and big scale purchases special provision of application.

The main liabilities of the parties in Tender is signing of the Contract between Candidate and Customer. All possible kinds of provision shall warranty especially signing Contract.

1. Bank Warranty

Lack of bank warranty often becomes essential disadvantage for Slavutich companies’ victory on competitive Tenders.

Bank warranty is admitted the most desirable and convenient means of provision of both Tender application and Contract signed as a result of Tender.

Because of bank warranty, bank or another credit institution gives at the instance of Contractor liability in written form to pay certain sum to Customer in accordance with the conditions of the given liability after submitting of written request for paying such a sum.

Participant of Tender very often faces the challenge of writing of proper warranty text, which will satisfy all parties at the same time.

The following shall be neatly indicated in the bank warranty:

• liabilities provided by the warranty and those on breach of which Customer will raise a demand to Guarantor
• date of coming bank warranty into;
• period of validity of the warranty;
• accuracy of naming of Guarantor, Contractor and Customer.

Besides, Guarantor may in advance point at permissibility or inadmissibility of provisos about:

• possibility of withdrawal of the bank warranty;
• possibility of transferring of authority for the bank warranty to another person;
• possibility of limitation of Guarantor’s responsibility to Customer.

2. Guarantee

As well as bank warranty, guarantee is one of "immaterial", i.e. non-demanding of movement of money and stocks of materials and capital equipment, means of provision of fulfillment of pledges.

Under the Contract of Guarantee Guarantor engages to the Creditor of another person to be responsible for fulfillment his (the latter’s) liabilities in full or partly. Contract of Guarantee may be signed also for provision of liabilities, which may arise in future.

If the form of application provision is recognized exactly Guarantee the following shall be necessarily indicated in Tender documents (as conditio sine qua non of Guarantee Contract):

• sum of guarantee;
• period of validity of guarantee;
• liability provided by guarantee.

PARTICULARITIES OF TENDERS FOR PURCHASING OF SERVICES

Services are activities whose result after carrying out is not new product, but changing of the quality of already existing product. Rendering of services itself is the subject and result of activity. The services are: transport service, communication services, consulting, bank services, services on scientific and research services, training, etc.

Services are divided into two groups:

• technical services are, as a rule, more or less standardized services with results known beforehand (for example, transport services, communication services);
• intellectual services are characterized by more considerable parameter ambiguity (consulting, scientific and research, other creative activity).

In the part of technical services there are not any special methods of purchasing.

Special procedures shall be applied to intellectual kind of services. Difference appears exactly as a result that the result cost may be absolutely incommensurable, firstly, with expenses, secondly, with the expected effect which was supposed to be obtained during the further using of results of purchase and, thirdly, with the uniqueness of these results. The main deviation from usual, basic Tender procedures is that during purchasing of such kind direct negotiations are possible, including negotiations about cost. From this it follows that there are two methods of purchasing on international Projects – with and without conducting negotiations.

Selection of this or that method of purchasing (with or without conducting of negotiations) depends on the subject of purchasing. Let’s consider specific character of methods of service purchasing.

Under the method when there is no negotiations, Customer establishes minimum level of qualification requirements regarding quality and technical aspects of proposals, services, and all Candidates corresponding to this level are admitted to the stage of evaluation and then are ranked on the price. The candidate with lowest price is declared the winner.

Under the method with conducting of alternate negotiations at first threshold level of qualification requirements is established. Then everybody who corresponds to it, are ranked on qualification criteria. Negotiations are conducted with the Supplier having the maximum rank that is direct bargaining begins with him on the price and most likely it will be the highest price comparing with others. If it is impossible to reach a settlement convenient to both parties, negotiations begin with the second on qualification Candidate and so on. Scheme (on the price result) in this case turns out opposite to the first option because the party having the lowest level of qualification component most likely will ask for lower price but will be the last in the queue for the victory.

In the world practice of service purchasing there is one more difference in the procedure of purchasing of services comparing with the procedure of purchasing of goods or work – purchasing of services is not connected with application provision, namely, requirements on provision of competitive applications are not applied to creative services. scheme