PROCUREMENT GUIDELINES - Ministry of Finance and Planning

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38GOVERNMENT PROCUREMENT GUIDELINES5.4.12 After making the payment to cover VAT, details of such paymentshall be informed to the Commissioner General of Inland Revenuewith a copy to Auditor General, on or before the 15 th day of thefollowing month.Liquidated DamagesGeneralguidelinesrelating to thecomputationof liquidateddamaged aregiven inProcurementManual 5.4.135.4.13 (a) Provision shall be made in the contract setting out the basis forcomputation of liquidated damages, subject to a maximum, fordelays in the delivery of Goods, provision of Services orcompletion of Works, resulting in additional costs or loss ofrevenue or loss of other benefits to the PE.(b) The contracting parties are at liberty to agree on the quantumand the basis of damages. However, any sum that is payable asdamages should be reasonable and not extravagant orunconscionable, as such would open the possibility for a Courtof Law to consider the quantum more as a penalty and not asdamages.Dispute ResolutionThe Details aregiven inProcurementManual 5.4.145.4.14 (a) All disputes arising out of contract agreements shall be governedin accordance with the provisions of the Arbitration Act No. 11of 1995 of Sri Lanka, as amended.(b) A reference must be made in the bidding documents, thatsettlement of disputes would be by way of arbitration and adetailed arbitration clause should be included in the contract tosuch effect.(c) For Foreign Funded Projects dispute resolution provisionsrecommended by the Foreign Funding Agency shall be compliedwith.5.4.15 Subject to the provisions of the Arbitration Act, the Rules ofArbitration of the International Chamber of Commerce (ICC) or theUnited Nations Commission on International Trade Law(UNCITRAL) or any other set of acceptable rules are recommendedfor usage.
GOVERNMENT PROCUREMENT GUIDELINES 395.4.16 The venue of arbitration shall be in Sri Lanka, for GoSL fundedprojects. The venue of arbitration for Foreign Funded Projects wouldbe determined in accordance with the requirements of the ForeignFunding Agency.5.5 The Law of Contract5.5.1 The law governing the Contract shall be the laws of the DemocraticSocialist Republic of Sri Lanka.5.6 Specifications5.6.1 (a) The specification for the Goods or Works to be procured shallnot be defined more narrowly than it is necessary to achieve therelevant Procurement objective.(b) All the specifications included in the bidding documents shouldbe of generic nature which shall reflect functional aspects thanthe technical aspects.(c) It shall not to be related with brand names, catalog numbers orcountry of manufacture.(d) If it is necessary to quote a brand name or catalog number of aparticular manufacturer to clarify an otherwise incompletespecification, the words “or equivalent” shall be added after suchreference.5.6.2 The specification shall permit the acceptance of offers for Goodswhich have similar characteristics and which provide performance atleast substantially equivalent to those specified.5.6.3 (a) To the maximum extent possible, the standards adopted by SriLanka Standard Institution (SLSI) should be used.(b) Where the SLSI standards are not available, acceptableinternational standards shall be used.For details seeProcurementManual 5.65.6.4 (a) Specifications for Works would be those which are recommendedby ICTAD.(b) NPA will issue specifications for a limited category of Goodswhich would be periodically updated.(c) PEs shall use specifications recommended by ICTAD and NPAas far as possible and practicable.
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PROCUREMENT GUIDELINES - Ministry of Finance and Planning

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