GENERAL PROVISIONS FOR BIDDING AND CONTRACT
1. Application
General Provisions for Bidding and Contract shall apply to all offshore
procurements of commodities and/or services by the buyer. This precludes the
contracting party from making any plea of ignorance thereof.
2. Definition
The following terms and abbreviations used herein shall have the meaning as set
forth below ;
(a) "buyer" shall mean the Korea Advanced Institute of Science and Technology
(KAIST).
(b) "Bidder" shall mean any person or organization that participates in the bidding
under the invitation for bids in his name,
(c) "Supplier" and/or "manufacturer" means any person or organization that is
involved in the bidder's bid and whose name appears in the bidder's bid as his
supplier and/or manufacturer.
(d) "Contracting Party" or "Contractor" shall mean, subject to the bid being accepted
by the buyer, the bidder, supplier and/or manufacturer who are consistently involved
in the bid and are responsible for accomplishment of the contract jointly and
severally.
(e) "Contract" shall mean a set of documents that includes complete bid documents,
the General Provisions for Bidding and Contract, and any additional papers that the
buyer has accepted with the intention to incorporate same in the contract. The
contract shall become effective and binding upon signing by the buyer on the
AWARD column of the KAIST Standard Bid Form.
(f) "Commodity" shall mean any material, article, goods, equipment, merchandise,
supply, including accessories, components, spare parts, and/or services related to the
commodity.
3. Language of Documents
All documents involved the bid and contract, and the execution thereof, shall be
prepared in English unless otherwise authorized by Buyer.
4. Bid Bond
(a) Bidder or his supplier shall establish a bid in the amount not less than 5% of the
bid value in favor of and satisfactory to KAIST with a bank designated by KAIST so
as to arrive at the said bank not later than one(1) day prior the bid opening date.
(b) In case the bidder is a Korean firm, the bid bond shall be in Korean currency and
in case of a foreign bidder/supplier in US dollar, and to be available for payment
against a simple receipt of KAIST accompanied with a certificate of KAIST stating
that the bidder/supplier has withdrawn the bid before its expiration and/or has failed
to establish the bid the performance bond after the contract being awarded. In
either case, the bidder or supplier shall automatically forfeit his right to the bid bond.
(c) The validity of the bid bond shall be maintained for three(3) months after the
opening date the bids.
(d) The bid bond shall be released upon instruction of KAIST to the unsuccessful
bidder without interest after the date of award, and to the successful bidder after
satisfactory establishment of the relative performance bond.
5. Performance Bond
(a) The successful bidder or his supplier shall establish a performance bond, in the
same manner as indicated in paragraph 4(Bid Bond), within a period designated
after dispatching date of the credit advice, in an amount not less than ten percent
(10%) of the contract value, to be valid until three (3) months after the latest
shipping date or any extension thereof, available for payment against a simple
receipt of KAIST accompanied with a statement stating that the supplier
and/or beneficiary of the credit has not complied with the terms and conditions of
the contract, in which case the accountee shall automatically forfeit his right to the
performance bond.
(b) The performance bond shall be released upon instruction of KAIST after
satisfactory completion of the contract or on its expire date, whichever may be
sooner.
6. General Specifications
Commodities furnished under the contract shall be in compliance with the contract
specifications, and shall be new and unused standard products, free from any defects,
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and suitable in all respects for the services intended points not adequately described
by the contract specifications shall be in accordance with best commercial practice.
7. Warranty
Supplier or Manufacturer shall guarantee at the time of delivery that the commodity
supplied under the contract will be free from any defects in material or workmanship.
Such guarantee shall continue One year after the date of installation.
The supplier or manufacturer, upon receipt of notice any defects, shall either
refurnish the defective commodity at his expenses or make compensation for the
defective commodity and the resultant loss to KAIST in such a manner as may be
requested by KAIST.
8. Variation in Quantity
No variation in quantity of Contract will be accepted unless authorized by the buyer
in writing prior to shipment.
9. Inspection
(a) If independent inspection is deemed necessary, Buyer will appoint an inspector
to inspect the commodity prior to loading at the contractor's expense.
(b) Contractor is responsible to advise the designated inspector that the commodity
is ready for inspection at least twenty (20) days prior to loading. He is also
responsible for furnishing the inspector with all facilities and assistance that may be
required by the inspector to carry out his inspection in satisfactory manner.
(c) Inspector shall, upon inspection of the commodity, issue a certificate of
inspection.
(d) Inspector shall have the authority to reject any commodity which is found
defective or otherwise not in conformity with the contract requirement.
(e) At the discretion of Buyer, rejection by the inspector of any portion of the
commodity shall warrant rejection of entire quantity.
(f) Acceptance of commodity by the inspector does not relieve the contractor from
the contractual obligations.
(g) The points of inspection to be covered will include, subject to nature of the
commodity, physical, and chemical properties, workmanship and quality,
performance and operating test, weight and quantity, packing conditions and any
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additional points that may be specified in the contract. Commodities so inspected
will be marked with the inspector's emblem.
10. Catalogs and Brand Names
Reference to any manufacturer's brand name of catalog number in the invitation
forbids are intended to be descriptive but not restrictive and are intended for the
purpose of indicating the type or quality of the commodity to be accepted. bids on
comparable items will clearly indicate the points of the conformity and/or difference
from those specified in the Bid Invitation.
11. Drawings and Manufacturer's Instructions
If applicable, Contractor shall furnish, one each copy to be airmailed to Buyer in
advance of shipment and two(2) copies each to be included in the package of the
commodity, the general arrangement and installation drawings, electrical wiring
diagrams, assembly drawings, lubrication system diagrams, manufacturer's
instruction manuals for assembly, erection, operation and maintenance, certified test
report, performance curves, list of parts, and any other additional materials that may
be required in the contract or deemed applicable by the contractor.
12. Sub-Contract
No subcontract shall be made by the contractor with any party other than those who
are described in the contract as supplier or manufacturer of the commodity
contracted, without written approval of Buyer.
13. Painting and Protective Coating
If applicable, the commodity shall be protected against corrosive action by a suitable
painting and protective coating. Such protective coating, however, shall not be
applied prior to inspection when doing so is feared to hinder the chance of inspector's
identification of the newness of the commodity.
14. Packing and Identification
Commodity shall be shipped in standard seaworthy or airworthy, as the case may be,
export packing. The bidder is required to specify in his bid full details of the
packing manner. The packages are to be properly identified with tags, labels,
and/or inscriptions in accordance with practice generally acceptable in the trade.
15. Patents
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The contractor shall hold and save Buyer free from liabilities of whatever nature in
connection with the patented rights on commodities or devices manufactured or used
in performance the contract.
16. Price Control
Contractor shall guarantee that the price stated in the bid does not exceed his regular
domestic price as adjusted by the export differential, and that such price is not
higher than that charged to other buyer's similarly situated.
Violation of this clause may entitle Buyer to cancel the contract and/or to claim a
refund of the excessive price paid.
17. Payment
Unless otherwise agreed, payment will be made by means of an irrevocable
commercial letter of credit established in favor of the foreign supplier in the amount
of contract value and available for payment upon presentation of the beneficiary's
sight draft accompanied by the documents as stipulated in the letter of credit. All
banking changes to be incurred outside Korea, relating to the credit shall be borne
by the beneficiary.
18. Liquidated Damage
If the contractor fails to make delivery when due of whole or part of the commodity,
Buyer shall impose a liquidated damage penalty money at the rate of 0.075% of the
total or unshipped balance of contract value per each day of delay in delivery after
the specified latest shipping date. However, the penalty shall not exceed ten(10)
percent of the total contract value. Such penalty money shall be deducted from the
invoice value due the contractor or recovered from the contractor's performance
bond. In either case, Buyer reserves the right to terminate the contract.
If long overdue delivery makes it impossible for the buyer to use the equipment for
the appropriate purposes, Buyer has the right to cancel the contract.
19. Shipping Advice
Shipping advice shall be cabled to Buyer prior to the on- board date of the bill of
lading, containing such information as contract number, loading port, description
and amount of the commodity shipped, name of vessel and ETD & ETA
20. Ocean Freight
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Actual ocean freight only shall be paid to Supplier. If the actual freight shown in the
bill of lading is higher than the freight shown in the bid, the over-freight shall not be
paid by Buyer.
21. Submission of Shipping Documents
Immediately upon effectuation of shipment, one each copy of the following
documents shall be sent to Buyer by express air mail.
1) Clean on-board ocean vessel Bill of Lading or Airway Bill
2) Detailed Invoice
3) Detailed packing List
4) Inspection Certificate
5) Other documents required, if any
One(1) each additional copy of the foregoing documents shall also be placed aboard
the ocean vessel at time of shipment in care of the shipmaster for delivery to Buyer.
22. Defaults
If the contractor refuses or fails to make delivery of the commodity conforming to
the contract specifications within the time specified, or any extension there of, or to
perform faithfully any contractual conditions, Buyer, without prejudice to other
rights of Buyer resulting from breach of contract conditions, may, by written notice,
rescind the contract or terminate the right of the contractor to proceed with any or all
of the remaining part to be performed. In the event of such rescission or termination,
Buyer may, without prejudice to his other rights resulting from breach of contract
conditions, obtain similar commodities elsewhere.
In addition, breach of the contract conditions will automatically result in
unconditional forfeiture of the contractor's performance bond. In any event, Buyer
reserves the right to recover from any money due or which may become due the
contractor, the excess cost that may have been incurred by Buyer resulting from the
contractor's default or breach of the contract conditions.
23. Force Majeure
Notwithstanding any defaults or breach of contract conditions by the contractor as
specified elsewhere in this General Provisions, the contractor shall not be held
responsible when such defaults or breach of contract conditions are due to causes of
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"Force Majeure", providing that the contractor notifies Buyer in writing of the
existence of such case of force majeure not less than 10 days from the beginning
thereof and that such notice is supported by a verifiable statement issued by a public
organization.
The concept of force majeure will include, but not restricted to, acts of God or
public enemy, acts of the government, fires, floods, epidemics, quarantine
restrictions, strikes, freight embargoes, etc., providing that those developments are
beyond the contractor's control and could not reasonably have been anticipated
barring the care of serious fault and negligence on the part of the contractor.
Upon receipt of the contractor's notice on the cases of force majeure, Buyer shall
evaluate the cases to determine the extent to which the contractor's failure of making
delivery has been affected by the alleged causes, and his decision shall be final and
conclusive subject to the parties hereto holding the right to appeal as provided herein.
24. Arbitration
All disputes, controversies, or differences which may arise between the parties, out
of or in relation to or in connection with this contract, or for the breach there of,
shall be finally settled by arbitration in Seoul, Korea in accordance with the
International Arbitration Rules.
Arbitration Tribunal consists of three members, one appointed by Buyer, one by
Contractor, and the third, neutral arbitrator, selected and appointed by the two
members so chosen.
If two members fail to appoint a third, then Korean Commercial Arbitration board
shall have the power to appoint the third from one of the panel member of Korean
Commercial Arbitration under the Laws of Korea. The Neutral arbitrator shall act as
chairman.
The award rendered by the arbitrators shall be final and binding upon both parties
concerned.
25. Export Tax Clause
Buyer shall not be encumbered in any way with any export tax, fee or other charges of
whatever nature now existing or which may hereafter be imposed, which shall be
invariably for contractor's account.
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26. Interpretation
The Contract shall be interpreted in accordance with and governed under the laws of
Republic of Korea. All disputes in connection with the Contract or the execution
thereof shall be settled through friendly negotiation.
27. No waiver; Remedies Cumulative
No failure on the part of Buyer to exercise and no delay in exercising any right
hereunder shall operate as a waiver there of; nor shall any single or partial exercise
by Buyer of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided by applicable laws of the
Republic of Korea.
28. Notices
All notices requests and demands shall be in writing or by cable and shall be given
to Buyer as follows;
Buyer: Korea Advanced Institute of Science and Technology
KAIST 291, Daehak-ro, Yuseong-gu,
Daejeon, 34141, Republic of Korea.
cable Address: KAISROK TAEJON
Notices to either party hereto shall be deemed to have been given when sent by
registered airmail or cabled.
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