Group Excercise - Selection and Employment of Consultants
Transcript of Group Excercise - Selection and Employment of Consultants
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Selection and Employment of
ConsultantsComparison of GCG 2007 with WB, ADB and JBIC
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1.
GCG 2007 (Unprinted)Guidelines Selection and Employment of Consultants
2.World Bank May 2004, Revised 1 October, 2006
Selection and Employment of Consultants by World Bank borrowers
3.Asian Development Bank April, 2006
Guidelines on the use of Consultants by Asian Development Bank and Its
Borrowers
4.Handbook for Procurement under JBIC ODA Loans
The employment of Consultants & Procurement of Goods and Services January,
2005
Guidelines
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GOSL WB ADB JBIC
Applicability of Guidelines Guidelines for Selection and
Employment of Consultants
introduced by NPA 1.1.1 - for carrying out
selection and employmentof Consultants, financed in
whole or in part by GOSL
or a Foreign Funding
Agency.
1.7 -
Can be applied to all
consulting services of anintellectual and advisory
nature.1.8 - apply to all
contracts for consulting
services financed in whole
or in part from Bank loans
or grants or trust fundsimplemented by the
beneficiary.
1.7
Can be applied to all
Consulting services of anintellectual and advisory
nature.1.8 - apply to all contracts
for consulting services
financed in whole or in part
from loans, TAs or other
grants or ADB-administered funds
implemented by ADB or a
borrower.
1.01
Guidelines for the
Employment ofConsultants under JBIC
ODA LoansApplicable to the ODA
Loans provided by JBIC.
Types of Consultants 1.3.2 - Applicable for theselection and employment
of all types of Consultants -
Organisations, agents,
universities, researchinstitutions, government
agencies, NGOs, andindividuals.
1.3 -includes a wide variety of
private and public entities,
including firms, agents,
auditors, UN agencies andother multinational
organizations, investmentand merchant banks,
universities, researchinstitutions, government
agencies, NGOs, andindividuals.
1.3 includes a wide variety of
private and public entities,
including firms, agents,
auditors, UN agencies andother multinational
organizations, universities,research institutions,
government agencies,NGOs, and individuals.
2.05 -(a) Independent consulting
firms;
(b) Organizations of a
public character(c) Firms which combine
the functions of consultantwith those of contractor,
(d) Firms which combinethe functions of consultant
with those of manufacturer.
Responsibilities andCompetence of Consultants
1.2.1 (a) high quality and
standard of services;
(b) maximizing economy,timeliness and efficiency;
(c) adhering to prescribed
2.02 (1) To exercise all
reasonable skill, care and
diligence in the dischargeof their duties.
Are responsible for the
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standards, rules, regulations
and goodgovernance;
(d) compliance with locallaws and regulations and
international obligations;
accuracy and completeness
of their work.(2) to act as a faithful
adviser(3) submission of report
involved in professionaljudgment
2.03
Essential that consultants
employed are competent.
Types of Assignments 1.3.3
(Advisory services /
Preparation services /
Implementation services)
a) policy advice,b) institutional reforms,
c) capacity building,
d) management,
e) engineering services,
f) architectural services,
g)construction supervision,h) pre-investment studies,
i) financial services,
j) procurement services,k) social and environmentalstudies,
l) Identification,preparation, and
implementation of projects.
1.3
a) policy advice;
b) institutional reforms;
c) management;
d) engineering services;e) construction
supervision;
f) financial services;
g) procurement services;
h) social and
environmental studies;i) Identification,
preparation, and
implementation of projects.
1.3
(Advisory services /
preparation services /
implementation services)
a)Policy advice,b)Institutional reforms,
c)Management,
d)Engineering services,
e)Construction supervision,
f)Financial services,
g)Procurement services,h)Social and environmental
studies,
i) Identification,preparation, andimplementation of projects.
2.01
(a) Pre-investment studies,
*feasibility / preliminary,
etc
(b) Preparation services,*detailed designs, etc.
(c) Implementation
services,
*supervision of work;
*management consultancy;
(d) Other services;*advisory services,
*evaluation, etc.
Conflict of Interest 1.4.3
Officials shall declare that
1.9 -
(a) Conflict between
1.10
A situation that could
2.04
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they shall remain without a
conflict of interestthroughout the process.
consulting activities
and procurement ofgoods, works or
services
(b)
Conflict among
consulting
assignments:
(c) Relationship withBorrowers staff:
improperly influence that
performance of officialduties or responsibilities,
contractual obligations, orcompliance with applicable
laws and regulations.May reject a proposal for
award if it determines that
a conflict of interest has
flawed the integrity of any
consultant selection
process.
Impartiality of Consultants
- it is essential thatconsultants employed shall
be impartial.
Eligibility 6.5.2
(a) No contract shall be
awarded to any consultant
who is blacklisted by NPA.
(b) No contract shall be
awarded to any consultant
who has been engaged by
the PE to provide goods,
works or services which arerelated to the proposed
assignment.
1.11 -
Bank permits firms and
individuals from all
countries.Government-owned
enterprises or institutions
in the Borrowers country
may participate only if they
can establish that they;
are legally and financiallyautonomous,
operate under commercial
law,Are not dependent agenciesof the Borrower.
1.13
ADB permits firms and
individuals from all ADB
member countries.Government-owned
enterprises or institutions
in the borrowers country
may participate only if they
can establish that they (i)
are legally and financiallyautonomous, (ii) operate
under commercial law, and
(iii) Are not dependentagencies of the borrower.(e) A consultant declared
ineligible by ADB shall beineligible.
2.06 -
(a) A majority of the
subscribed shares shall be
held by nationals of theeligible source countries;
(b) A majority of the full-
time directors shall be
nationals of the eligible
source countries;
(c) The firm shall beincorporated and registered
in an eligible source
country.
Association betweenConsultants
6.5.4 Consultants may be allowed
to associate with each other
1.13 -Consultants may associate
with each other in the form
1.14 Consultants may associate
with each other in the form
2.06 Subcontracting may be
done not exceeding 50 %
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to complement their
respective areas ofexpertise.
The association may takethe form of a joint venture
or of a sub consultancy.
of a joint venture or of a
sub-consultancy agreementto complement their
respective areas ofexpertise.
of a joint venture or of a
sub-consultancy agreementto complement their
respective areas ofexpertise.
limit.
Misprocurement Not mentioned 1.17 -
WB does not financeexpenditures for consulting
services if the consultants
have not been selected orthe services have not been
contracted in accordance
with the agreed provisions
of the Loan Agreement and
the Procurement Planapproved by the Bank.
In such cases, the Bank
will declare
misprocurement, and
cancel that portion of the
loan allocated to theservices that have been
misprocured.
1.18
ADB does not financeexpenditures for consulting
services if the consultants
have not been selected inaccordance with the
provisions of the relevant
agreement and these
Guidelines. If recruitment
is not carried out as agreed,ADB will declare
misprocurement, and
cancel that portion of the
financing allocated to the
services that have been
misprocured.
3.02 -
have not been selected inaccordance with the agreed
procedures
JBIC will cancel thatportion of the Loan
allocated to the services
provided by consultants
who have not been
properly selected.JBIC's policy to require
that consultants &
Borrowers to observe the
highest standard of ethics.
Bank Review, Assistanceand Monitoring Not mentioned 1.14 -WB reviews theBorrowers hiring of
consultants to satisfy itselfthat the selection process is
carried out in accordancewith the provisions of these
Guidelines.
1.16 ADB conducts priorreviews for recruitment of
loan and delegated TAconsultants.
Prior reviews require theborrower to make
submissions for ADBs
2.07 Monitoring by the BANKBANK may monitor the
work as necessary.BANK may take part in
discussions between theBorrower and the
consultant.
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WB may furnish to the
Borrower short lists or longlists of firms.
Prior reviewThe final short list shall be
submitted to the Bank forits approval before the
Borrower issues the RFP.
No objection for technical
evaluation report.
No objection for Financial
review.
Post ReviewAll documents are being
checked before releasingfinal payments.
Borrower is responsible forsupervision.
approval at different stage
of the recruitment processfor all selection methods.
The requirement, thefrequency and depth of
prior reviews, and thethresholds for applying
post-reviews will be agreed
by the borrower and ADB
during project preparation
and incorporated in the
procurement plan.
BANK shall not be liable
in any way for theimplementation of the
Project.Bank involve as an
independent party, andtakes no responsibility
regarding decisions.
Fraud and Corruption 1.4.2
Corruption
The officials involved in a
Selection Steps shall notabuse their powers.
1.4.4
No gifts or inducement tobe acceptedOfficials shall refrain from
receiving any personal gainfrom any Selection
Step.
1.22 -
WBs policy requires that
Borrowers as well as
consultants and theirsubcontractors under Bank-
financed contracts, observe
the highest standard ofethics.
1.23
ADBs anticorruption
policy requires that
borrowers as well asconsultants under ADB-
financed contracts observe
the highest standard ofethics.
3.02
(a) Will reject an
evaluation of proposals.
(b) Stoppage of financingof that portion of the loan.
Currency Not mentioned 4.6
Firms may express the
2.51
Firms may express the
4.08
* Japanese Yen
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price for their services, in
any fully convertiblecurrency, but not more than
three foreign currencies.
price for services, in any
currency of an ADBmember country, but not
more than three foreigncurrencies.
* Other international
trading currencies may alsobe permitted.
* Currency of the countryof the Borrower.
Language Not mentioned 1.20 -
One of the three followinglanguages, - English,
French, or Spanish.
1.21 In addition, at theBorrowers option, RFP
also be prepared in the
national language of the
Borrowers country.The contract signed shallbe written in the language
in which its proposal was
submitted.
1.22
Shall be in English.
4.21
* English.* Another language with
full English text.
* shall be stipulated whichis governing.
Procurement Plan 5.2.1
The PE shall prepare the
MPP.
1.24 -
The Borrower shall prepare
and furnish to the WB for
its approval, a Procurement
Plan acceptable to the WB.
1.27
The borrower, in
consultation with ADB,
shall prepare a
procurement plan.
Performance Evaluation Not mentioned. 1.16 -The borrower isresponsible for supervising
the consultantsperformance.
WB staff shall monitor thework as necessary to
satisfy themselves that it is
1.26 ADB and its borrowersimplement formal
consultant performanceevaluations.
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being carried out according
to appropriate standards.
The Selection Process 3.2
Competitive Process to befollowed
Consultants shall beselected following
competitive processwherever possible, on the
basis of comparison of
technical and financialproposals or in very rare
case only technical
proposal, submitted by the
shortlisted Consultants.
2.2 -
The selection process shallinclude the following steps:
Preparation of the TOR;Preparation of cost
estimate and the budget;Advertising;
Preparation of the short list
of consultants;Preparation and issuance of
the RFP;
[which should include:
the Letter of Invitation(LOI);Instructions to Consultants
(ITC);
the TOR and the proposed
draft contract];
Receipt of proposals;
Evaluation of technical
proposals: Consideration of
quality;
Public opening of financialproposals;
Evaluation of financial
proposal;
Final evaluation of qualityand cost;
Negotiations & award of
contract to selected firm.
3.01
(a) Preparation of the TOR,and cost estimates;
(b) Preparation of a ShortList of Consultants;
(c) Invitation to submitproposals;
(d) Evaluation of
proposals;(e) Negotiation of a
contract.
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The Selection Methods 3.7.1
a) Quality and Cost BasedSelection (QCBS);
b) Quality Based Selection(QBS);
c) Selection under a FixedBudget (FBS);
d) Least Cost Selection
(LCS);
e) Selection Based on
Consultants Qualifications
(CQS);f) Single Source Selection
(SSS);
g) Selection of particulartypes of Consultant
3.1
a. Quality and Cost BasedSelections (QCBS)
b. Quality Based Selections(QBS)
c. Fixed Budget Selections(FBS)
d. Least Cost Selections
(LCS)
e. Consultants
Qualification Selection
(CQS)f. Single Source Selection
(SSS)
2.1
a. Quality- and Cost-BasedSelection (QCBS)
b. Quality-Based Selection(QBS)
c. Fixed Budget Selection(FBS)
d. Least-Cost Selection
(LCS)
e. Consultants
Qualifications Selection
(CQS)f. Single Source Selection
(SSS)
Advertising 4.3 -
Consultancy Services for
national experts and
exceeding a period of one
year shall be advertised in
national news papers.For international
Consultancy Assignments
of duration exceeding sixmonths, it is recommendedto advertise in national news
papers in addition tointernational
advertisements.
2.5 -
The Borrower is required
to prepare and submit to
the WB a draft General
Procurement Notice.
WB will arrange for itspublication in UN
Development Businessonline
(UNDB online
) andin the DevelopmentGateways dgMarket.
Not less than 14 days fromdate of posting shall be
provided for responses.
2.6
The borrower may
advertise in an appropriate
national journal,
newspaper, or website.
Short list of Consultants 3.6
Short listing of Consultants
2.6 -
The Borrower is
2.8
The borrower is
3.04
(1) Not less than three and
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shall ensure, only the best
qualified ConsultancyOrganisations submit
proposals.Short lists shall comprise
not more than sevenConsultancy organisations.
(The shortlist may comprise
of less than seven
organisations when suitably
qualified organisations have
not expressed their interestto
submit a proposal and no
other qualified ConsultancyOrganisations
are known).
responsible for preparation
of the short list.Short lists shall comprise
six firms with a widegeographic spread, with no
more than two firms fromany one country and at
least one firm from a
developing country.
WB may agree to short
lists comprising a smaller
number of firms in specialcircumstances.
responsible for preparation
of the shortlist.Shortlists shall comprise
six firms with a widegeographic spread, with no
more than two firms fromany one country and at
least one firm from a
developing country.
ADB may agree to
shortlists comprising a
smaller number of firms inspecial circumstances.
not more than five
consultants.(2) If necessary, the BANK
will submit a long list,from which the Borrower
may draw up its own ShortList.
Receipt of Proposals 6.5.8
The CPC shall allow
enough time for the
consultants to prepare their
proposals.The CPC shall follow the
minimum time periodsgiven under Guideline 7.2.2.
7.3.1 (a) The proposal shall be
received only at onelocation.
(b) Except for CQS and SS,
for all proposals must be
submitted only under sealed
2.13 -
The Borrower shall allow
enough time for the
consultants to prepare their
proposals.(Normally shall not be less
than four weeks or morethan three months)
During this interval, thefirms may request
clarifications about theinformation provided in the
RFP.
The Borrower shall provide
these clarifications in
2.12
Firms shall be required to
submit technical and
financial proposals in
separate sealed envelopesat the same time.
Any proposal receivedafter the closing time for
submission of proposalswill be returned unopened.
No amendments to thetechnical or financial
proposals will be accepted
after the deadline.
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cover.
(c) Proposal shall besubmitted in one original
and a copy as stipulated inthe Instruction to
Consultants sealedseparately and clearly
marked as Original or
Copy. All these envelopes
shall together be enclosed in
one envelope and delivered.
writing and copy them to
all firms on the short list.The technical and financial
proposals shall besubmitted at the same time.
No amendments to thetechnical or financial
proposal shall be accepted
after the deadline.
The technical and financial
proposals shall be
submitted in separatesealed envelopes.
The technical envelopes
shall be openedimmediately after the
closing time.The financial proposals
shall remain sealed.
Any proposal received
after the closing time shall
be returned unopened.
Evaluation of quality 80% to 90% Consultants specific
experience: 0 - 10 pointsMethodology:
20 - 50 pointsKey personnel:
30 - 60 pointsTransfer of knowledge:
0 - 10 points
Participation by nationals:
0 - 10 points
2.16
The weight for cost shallnormally be 20%.
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Total: 100 points
Negotiations and Contractaward
8.12.1 After completion of the
evaluation, the CPC shallnegotiate a contract with the
first ranked ConsultancyOrganisation. Negotiations
shall include discussions ofthe TOR, the methodology,
staff schedule, PEs
counterpart facilities, andspecial conditions of the
contract. (These discussions
shall not substantially alter
the original TOR attached tothe invitation).
2.24 -Negotiations shall include
discussions of the TOR, themethodology, staffing,
Borrowers inputs, andspecial conditions of the
contract.These discussions shall not
alter the original TOR
substantially or the termsof the contract, lest the
quality of the final product,
its cost, and the relevance
of the initial evaluation beaffected.Major reductions in work
inputs should not be made
solely to meet the budget.
2.27 -
If the negotiations fail to
result in an acceptablecontract, the Borrower
shall terminate thenegotiations and invite the
next ranked firm fornegotiations.
2.17 The borrower shall
negotiate a contract withthe first ranked firm.
Negotiations will includediscussions of the TOR, the
methodology, personnelschedule, the borrowers
counterpart facilities and
the quantities of cost itemsin the firms financial
proposal.
The selected firm should
not be allowed to substituteexperts, unless both partiesagree.
Proposed unit rates for
remuneration shall not be
altered and other expenses
shall not be negotiated
since unit rate cost hasbeen a factor in the
selection process.Successful negotiations
conclude with signing ofthe contract.
If the borrower and thefirm cannot reach
agreement, the borrower
may terminate the
negotiations with ADBs
3.08 (1) Negotiations with the
highest-ranked consultant.(2) If the two parties are
unable to reach agreementon a contract within a
reasonable time, theBorrower shall invite the
consultant who ranked
second.(3) This procedure shall be
followed until the
Borrower reaches
agreement with aconsultant.
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prior agreement and start
negotiations with the nextranked firm until an
agreement is reached.Publication of Contract
Award
9.3
The PE should publish in itswebsite, the NPA website
and/or any other appropriatemedia.
The following particulars
are published:(a) description of the
Consulting Services;
(b) the names of all
consultants who submittedproposals;(c) name of the successful
consultant;
(d) amount at which the
contract was awarded;
(e) In the case of a contract
awarded to a foreignprincipal who has a local
agent, the name of the localagent.
2.28 -
After the award of contract,the borrower shall publish
in UNDB online and indgMarket the following
information:
(a) the names of allconsultants who submitted
proposals;
(b) the technical points
assigned to eachconsultant;(c) the evaluated prices of
each consultant;
(d) the final point ranking
of the consultants;
(e) The name of the
winning consultant and theprice, duration, and
summary scope of thecontract.
The same information shallbe sent to all consultants
who have submittedproposals.
2.18
After the award of contract,the borrower shall provide
ADB with the followinginformation which ADB
shall publish on ADBs
website:the names of all
consultants who submitted
proposals,
the technical pointsassigned to eachconsultant,
the offered prices of each
consultant,
the overall ranking of the
consultants,
The name of the winningconsultant and the contract
sum.
Debriefing 9.4.1 In the publication of
contract award, the PE shall
2.29 In the publication of
contract award the
2.19 In the publication of award
the borrower shall specify
Promptly after completionof negotiations with the
selected consultant, the
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specify that any Consultant
who wishes to ascertain thegrounds on which its
proposal was not selected,should request an
explanation from the PE.The PE shall promptly
provide the explanation as
to why such proposal was
not selected, in writing
And/or in a debriefing
meeting, at the option of theConsultant.
In this discussion, only the
Consultants Proposal canbe discussed and not the
Proposals of competitors.
Borrower shall specify that
any consultant who wishesto ascertain the grounds on
which its proposal was notselected, should request an
explanation from theBorrower.
The Borrower shall
promptly provide the
explanation as to why such
proposal was not selected.
The requesting consultantshall bear all the costs of
attending such a
debriefing.
that if any consultant who
submitted a proposalwishes to ascertain the
reasons why its proposalwas not selected, such
consultant should requestan explanation from the
borrower.
The borrower shall
promptly provide an
explanation as to why its
proposal was not selected.1.8
If after contract award, a
consultant wishes toascertain the grounds on
which its proposal was notselected, it should address
its request to the borrower.
If the consultant is not
satisfied with the
explanation given theconsultant may write
directly to ADB.
borrower shall notify the
other consultants on theshort list that they have
been unsuccessful.
Selection of Individual
Consultants
5.2
Individual consultants areselected on the basis of
their qualifications for theassignment.
Advertisement is not
required
Consultants shall be
2.34
Individual consultants maybe recruited directly or
through an organization,such as a consulting firm,
an academic institution, a
government, or an
international agency.
3.01
(a) where the consultanthas already satisfactorily
carried out services for theproject concerned, such as
preparation of a pre-
investment study;
(b) where the consultant
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selected through
comparison ofqualifications of at least
three candidates.Conflict of interest should
be avoided.Single source is allowed
for continuation works and
emergency situations or
only one consultant is
qualified.
The procedures for
selection are simpler.Individual consultants are
recruited on the basis oftheir qualifications for the
assignment.Typically, the borrower
will recruit them in
accordance with
government procedures
acceptable to ADB.
has satisfactorily carried
out services on a projectclosely related and/or
similar to the projectconcerned;
(c) where the consultant isconsidered to be the only
firm qualified to provide
the services required;
(d) Where the consultant is
considered to be the best
for the services requiredfor other adequate reasons.
Types of Contracts 10.1
(a) Lump sum;(b) Time-based;(c) Retainer and/or success
fee;
(d) Percentage;
(e) Indefinite delivery.
4.1 Lump sum contracts
4.2 Time based contracts4.3 - Retainer and/orContingency (Success) Fee
Contract
4.4 Percentage Contract
4.5 - Indefinite Delivery
Contract (Price
Agreement).
2.44
1. Time-based Contract2. Retainer and/orContingency (Success) Fee
Contract
3. Indefinite Delivery
Contract (Price
Agreement)
4. Lump Sum (LS)Contract
5. Performance-basedContract
Important Provisions ofContract
4.6 -Currency
No more than three foreigncurrencies.
4.7
Price AdjustmentA price adjustment
2.50 1. Currency
No more than three foreigncurrencies.
2. Price AdjustmentA price adjustment
provision shall be included
4.01 4.264.02 - Scope of the Project
and of the ConsultingServices.
4.03 - Duration of Contract4.04 - Conditions relating
to Validity of Contract
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provision shall be included
in the contract if itsduration is expected to
exceed 18 months.Contracts of shorter
duration may include aprovision for price
adjustment when local or
foreign inflation is
expected to be high and
unpredictable.
in the contract if duration
exceeds 18 months.Contracts of a shorter
duration may include aprovision for price
adjustment when local orforeign inflation is
expected to be high and
unpredictable.
3. Payment Provisions
2.53
Payment provisions,including amounts to be
paid, schedule of
payments, and paymentprocedures, shall be agreed
upon during negotiations.Payments may be made at
regular intervals (as under
time-based contracts) or for
agreed outputs (as under
lump sum).Payments for advances
exceeding 10% of the
contract amount should be
backed by advance
payment guarantees.2.54
(a) Consultants can be paiddirectly by ADB at the
request of the borrower.(b) Only disputed amounts
4.05 - Responsibilities of
the Parties4.06 - Contract Amount
4.07 - Description ofConsultants' Costs and
Fees4.08 - Currency
4.09 - Conditions and
Methods of Payment
4.10 - Ownership and
Disposal of Equipment
4.11 - Services to beprovided by the Borrower
4.12 - Privileges and
Immunities of theConsultant
4.13 - Serious Hindrances4.14 - Reports
4.15 - Copyright
4.16 - Modifications
4.17 - Force Majeure
4.18 - Termination4.19 - Settlement of
Disputes
4.20 - Applicable Laws
shall stipulate which laws
shall govern itsinterpretation and
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shall be withheld.
(c) The contract shallprovide for the payment of
financing charges ifpayment is delayed due to
the clients fault beyondthe time allowed in the
contract; the rate of
charges shall be specified
in the contract.
4. Advance Payment
Guarantee2.55
The borrower may request
to provide an advancepayment guarantee against
the amount advanced.
5. Borrowers
Contribution2.56
The borrower may assign
members of its ownprofessional staff to the
assignment in different
capacities.
The contract shall give the
details of counterpart staff,facilities provided by the
borrower, such as housing,office space, secretarial
support, utilities, materials,and vehicles.
performance.
4.21 - Language
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The contract shall indicate
measures the consultantcan take if any of the items
cannot be provided or haveto be withdrawn during the
assignment, and thecompensation the
consultant will receive in
such a case.
6. Conflict of Interest
2.57
ADB considers a conflictof interest to be a situation
in which a party has
interests that couldimproperly influence that
partys performance ofofficial duties or
responsibilities, contractual
obligations, or compliance
with applicable laws and
regulations and that suchconflict of interest may
contribute to or constitute a
prohibited practice under
ADBs anticorruption
policy.
7. Professional Liability
2.58 The consultant is expected
to carry out assignmentswith due diligence and in
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accordance with prevailing
standards of the profession.8. Personnel Substitution
2.59 During an assignment, if
substitution is necessary(because of ill health,
death, or because a staff
member proves to be
unsuitable), the consultant
shall propose other experts
of at least the same level ofqualifications for approval
by the borrower.
9. Applicable Law andSettlement of Disputes
2.60 The contract shall include
provisions dealing with the
applicable law and the
forum for the settlement of
disputes.Consultants contracts shall
always include a clause for
settlement of disputes.
Force Majeure 4.17 (1) The force majeure
conditions which wouldrelease the consultant,
temporarily or
permanently, from all or
part of its obligations under
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the contract;
(2) The procedures to befollowed by the consultant
regarding determinationand notification of any
such conditions; and(3) The Borrower's and the
consultant's rights and
obligations (e.g., as to
payments following
termination, including, if
appropriate, reimbursementof movement expenses) in
force majeure situations.
Termination 4.18 -The contract shall include a
clause specifying in detail
on what conditions either
party may terminate the
contract and a clause
stipulating procedures to befollowed by the party
wishing to terminate thecontract. The contract shall
state clearly the rights andobligations of both parties
in the event of terminationof the contract.
Settlement of Disputes 6.6.5 (a) All disputes arising out
of contract agreements shall
(1) The contract shallestablish the procedures to
be followed in case of a
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be governed in accordance
with the provisions of theArbitration Act No. 11 of
1995 of Sri Lanka, asamended.
(b) A reference must bemade in the contract
documents, that settlement
of disputes would be by way
of arbitration and a detailed
arbitration clause should be
included in the contract tosuch effect.
(c) For Foreign Funded
Projects dispute resolutionprovisions recommended by
the FFA.6.6.6 Subject to the
provisions of the Arbitration
Act, the Rules of Arbitration
of the International
Chamber of Commerce(ICC) or the United Nations
Commission on
International Trade Law
(UNCITRAL) or any other
set of acceptable rules arerecommended for usage.
6.6.7 The venue ofarbitration shall be in Sri
Lanka, for GoSL fundedprojects.
dispute.
(2) For the settlement ofsuch disputes, the BANK
recommends recourse toimpartial institutions, such
as the InternationalChamber of Commerce.
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The venue of arbitration for
Foreign Funded Projectswould be determined in
accordance with therequirements of the FFA.
Applicable Laws 1.5 & 6.6.8 The laws applicable to
selection of Consultantsshall be the laws of the
Democratic Socialist
Republic of Sri Lanka.
4.20 The contract shall stipulate
which laws shall govern itsinterpretation and
performance