Lawyer's Advice: What Documents Are Required to Participate in Construction Tenders

 

Preparation for a tender takes much less time when you know in advance what documents may be required. Anastasiia Koretska, a lawyer at SmartTender.biz, will help you with this.

 

The documents list that the supplier must provide as part of the tender proposal depends not only on the subject of the purchase but also on the individual requirements of each customer. Some of them determine that participants must provide absolutely all documents by the Law "On Public Procurement", for others 4-5 of them are enough. In any case, if you are going to regularly participate in construction tenders and want to make them one of the main sources of your company income, I advise you to prepare in advance the full package of documents listed in this article.

 

Universal Documents for Participation in Construction Tenders

First of all, you must have prepared a package of universal documents that are provided by the participants of any tender, regardless of the subject of the purchase. You can find the list here.

 

Specific Documents for Participation in Construction Tenders

In the construction work purchase, the following specific documents may be required:

1. 1. Construction license, which concerns exactly the types of work that are purchased. Draw attention to the hazard class.
   2. Permission from the State Labor Office of Ukraine to perform hazardous work and operate facilities, machinery, and equipment of increased hazard.
   3. Declaration of conformity of the material and technical base to the requirements of labor protection legislation for the work with increased danger performance if such work is provided for by this subject of procurement.

 

If the performance of the work determined by the subject of the procurement does not require these documents, you just need to provide a certificate in any form stating that there is no need for them.

 

Specific qualification documents

In addition to the listed documents, the organizer may also require the following documents confirming your company`s qualifications:

 

     1. Confirmation that the procurement procedure participant has employees of appropriate qualifications, that have the necessary knowledge and experience

 

Often, customers require the supplier to have engineering staff (eg, health and safety engineer, certified engineer-estimator). In most purchases, sufficient proof of labor relations with employees will be the signed civil contracts with them.

 

     2. Documents confirming the sufficient employees qualifications level

These documents can be:

• • • diplomas of graduation from educational institutions: for engineering and technical workers, it is mandatory to have a higher or incomplete higher education with the qualifications of "builder", "civil engineer", etc. in a specialty related to construction (usually further in the tender documents, the customer lists his requirements regarding the desired the number of employees, their length of service, etc.);
    • orders on the appointment of persons responsible for labor protection and fire safety at the enterprise;
    • documents confirming the passage of training and knowledge testing on labor protection and fire safety of officials responsible for labor protection and fire safety at the enterprise.

 

     3. Confirmation that the procurement procedure participant has an equipment, material, and technical base and technologies

This refers to the list of equipment that is usually used in your specifics – sometimes the customer marks such lists directly in the tender documents. Additionally, certificates of registration of vehicles, machines, and mechanisms must be provided.

 

If vehicles, machines, or mechanisms are not subject to state registration, it is necessary to provide another document certifying the right of ownership (accounting).

 

If the equipment is not your property, but attracted, then contracts are additionally submitted to certify the right to use: lease, sublease, etc.

 

     4. Confirmation of the presence of documented experience in the implementation of a similar contract (contracts) on the subject of procurement 

Most often, customers require 2 contracts concluded and completed in the last 2 years. Your similar agreement must have all attachments, KB-2v and KB-3, as well as, preferably, settlement documents.

 

Here you need to look at the specifics of the work that are the subject of the purchase. For example, if you apply for a tender, the subject of which is the repair or construction of a roof (the so-called roofing works), then the contract for the performance of roofing works or work on major repairs and construction will be similar.

 

If your background only contains comprehensive capital repair and construction contracts, then when preparing a tender offer, always pay attention to whether your experience meets the requirements of a specific tender documentation. For example, if you want to take part in the procurement of roofing work, the certificate on the cost of work performed under a similar contract must indicate the amount of performed roofing work. It will be appropriate to draw up a letter of explanation in advance if you consider it necessary to provide a comprehensive contract. Or, at the stage of clarifications, ask the customer whether he will accept such an agreement as similar. Remember that more does not always mean better.

 

     5. Availability of financial capability, which is confirmed by financial statements

This is a very important factor in the selection of participants, which you must take into account at the stage of deciding to participate in the tender.

 

Most often, customers require that the participant's annual income be 100% of the purchase price. That is, if your revenue for the previous reporting period is less than the purchase price, you will be disqualified.

 

Also, note the requirements of the specific tender documents for the financial statements. Customers often require that the list of reporting components comply with the legislation – Section II (Composition and elements of financial statements) of the Order of the Ministry of Finance of Ukraine "On approval of the National provision (standard) of accounting 1 "General requirements for financial reporting"” No. 73 from 07.02.2013.

 

Please note! If you are a small business entity, then by law you are not required to draw up a report in full form, but you must inform the customer about this with a certificate in any form indicating the legal grounds for failure to provide some components of the financial statements.

 

     6. Certificate for quality management system ISO 9001:2015 or its analogs

This document is not obligatory for companies, but if the customer has prescribed this requirement in the tender documents, then failure to provide such a certificate will result in disqualification.

 

     7. Cost calculation / estimate

This document is required in 99% of construction tenders. It should be compiled in the AVK or SMETA software package in formats suitable for reading by such programs (for example, .imd).

 

Additionally, the following documents may be required:

• • • negotiable price;
    • explanatory note;
    • local estimates;
    • the final statement of resources to the summary estimate;
    • general production costs calculation;
    • calculation of administrative costs of construction and installation organizations;
    • calculation of funds for business trips of construction organizations workers to the construction site (if included in the contract price);
    • "Other costs" calculations (if costs are included in the contract price);
    • the work schedule project.

 

First of all, this list must be provided to your estimator with the reference terms so that he can make the necessary calculations by the tender documentation requirements. Please note that the discrepancy between at least one position from the multi-page estimate may be a reason for disqualification. An example of such a solution:

 

 

How to Simplify the Preparing for a Construction Tender Process

A detailed study of the requirements of the tender documents and the preparation of the necessary documents may take you some time. To facilitate this process, I advise you to contact the lawyers of the SmartTender.biz. You can use any legal service, from free consultation to full support of your participation in the tender. Read more information here.

 

Please note that this service is available only for registered users of the SmartTender.biz.

 

Registration on the site

 

How to Register on the SmartTender.biz?

You can register on the site by following three simple steps:

1. 1. Open the registration form.
   2. Fill in the appropriate fields.
   3. Wait for confirmation by email that your account has been successfully created.

 

A step-by-step instruction for registering Prozorro suppliers is available here.

 

Prepare documents for participation in tenders in advance and win with SmartTender!