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BID SECURITY IN CONSULTANCY RFP's
kenyancontractor
#1 Posted : Tuesday, February 21, 2012 8:48:30 PM
Rank: New-farer


Joined: 9/3/2011
Posts: 13
AAK has been advising institutions that they should not have bid bond requirements in RFP's. Is this position correct?

They contend that the a valid PI is adequate.
a4architect.com
#2 Posted : Thursday, February 23, 2012 7:50:01 AM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
i receive the regular correspondences form AAK...The current AAK secretariat is doing a great job by keeping employers e.g institutions on check.
The logic behind it is very simple-architects are not allowed to bid since CAP 525 of the laws of Kenya stipulate the fees so they cant compete on fees. Selection criteria for architects can therefore only be through selective tendering process where the technical proposal determines as opposed to the financial proposal.
By inviting architects for proposals, this becomes selective tendering since they have already been prequalified by BORAQS and AAK hence no need to bond themselves in the bid.
As Iron Sharpens Iron, So one Man Sharpens Another.
mozenrat
#3 Posted : Thursday, February 23, 2012 3:46:25 PM
Rank: Veteran


Joined: 5/18/2008
Posts: 796
a4architect.com wrote:
i receive the regular correspondences form AAK...The current AAK secretariat is doing a great job by keeping employers e.g institutions on check.
The logic behind it is very simple-architects are not allowed to bid since CAP 525 of the laws of Kenya stipulate the fees so they cant compete on fees. Selection criteria for architects can therefore only be through selective tendering process where the technical proposal determines as opposed to the financial proposal.
By inviting architects for proposals, this becomes selective tendering since they have already been prequalified by BORAQS and AAK hence no need to bond themselves in the bid.


But surely a4arch... although most companies peg the bid bond to the financial proposal (say 10%), the point of the bond has nothing to do with the financials. It is to punish jokers who may submit tenders that they actually can't fulfill!! So I think they should still submit bid bonds even if it will be based on the legally defined fee structure..
kenyancontractor
#4 Posted : Thursday, February 23, 2012 4:19:34 PM
Rank: New-farer


Joined: 9/3/2011
Posts: 13
I agree with mozenrat, bid bonds are to keep away jokers and has nothing to do with the financial proposals. AAK has been doing a good job on advising but I am not sure institutions are getting any smarter. Has anyone seen the LAKE VICTORIA BASIN COMMISSION tender? Who was advising them??? jemeni! I am not sure the design competition has been sanctioned by BORAQS/AAK..pathetic. In addition they are still requesting for financial proposals
kenyancontractor
#5 Posted : Thursday, February 23, 2012 5:11:03 PM
Rank: New-farer


Joined: 9/3/2011
Posts: 13
infact AAK wrote a letter dated jana on the LVBC tender lol. these useless RFP's popping up in the local dailies are bure!
a4architect.com
#6 Posted : Thursday, February 23, 2012 5:27:48 PM
Rank: Veteran


Joined: 1/4/2010
Posts: 1,668
Location: nairobi
@mozenrat, @ kenyancontractor, bid bonds are used to bond the applicant to adhere to agreements in open tenders where anyone can apply. These work when its an open tender whereby applicants could be jokers,e.t.c. In a selective tendering process, the applicants who are jokers have already been weeded out through registration with BORAQS and AAK.
Therefore, there is no need to bond them to adhere.
I assume this is AAKs reasoning to this. Maybe AAK can clarify on this further.
As Iron Sharpens Iron, So one Man Sharpens Another.
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