Disbursement Procedures - Islamic Development Bank

3.10 Validity of Bids
3.10.1 Bidders should be required to submit bids valid for a sufficient period specified in
the invitation to bid, to enable the Recipient to complete the comparison and evaluation of
bids, and obtain all the necessary approvals from the Bank and other co-financiers so that
the award can be notified within that period.
3.11 Bid Bond or Guarantee
3.11.1 A bid bond or other bidding guarantee may be required to secure the validity of the
bid within the period specified in the invitation to bid.
3.12 Conditions of Contract
3.12.1 The contract should contain general conditions which will cover, inter alia, definition
of the scope of work to be performed or the kind of goods to be supplied, the rights and
obligations of the Recipient and the contractor or supplier, and the powers and authority of
the engineer or architect who may be employed by the Recipient in the administration of
the contract, payment terms (including ,advances to be made, if any), provision for bonds,
guarantees, retention money, price adjustment clauses, insurance, and liquidated
damages. In addition to the customary general conditions, special conditions appropriate
to the nature of the goods or works or the project should be included. All conditions of
contract and any negotiated amendments thereto are subject to Bank's prior approval.
3.13 Pricing and Currency of Bids
3.13.1 Tender documents must clearly state the currencies in which bid prices
may be expressed and the contract price to be paid. For this purpose, bidding
documents should normally require the bidders to state the bid price either in the bidder's
own currency or in an international trading currency specified in the bidding documents.
3.14 Price Adjustment Provisions
3.14.1 Bidding documents should contain a clear statement as to whether prices are
subject to adjustment upwards or downwards on the occurrence of specified events over
which the contractor has no control.
3.14.2 The specific formula for price adjustment should be clearly defined in the tender
documents so that the same provisions will apply to all bids. Such formula should only be
applicable from a point in time not less than 12 months after the opening of the bid. In the
case of construction contracts, no price escalation shall be applicable for the work
completed after the original contract period except for the extension period officially
granted as per terms of the contract.
3.14.3 For supply and procurement contracts for materials, equipment and machinery to
be delivered within one year from the date of opening of the bids, no price adjustments are
allowable.
3.15 Terms and Methods of Payment
3.15.1 Payment terms should generally be in accordance with standard
international commercial practice and disbursement of the proceeds of the financing
should be made in accordance with the Bank's Disbursement Procedures and Financing