Group Excercise - Selection and Employment of Consultants

7/26/2019 Group Excercise - Selection and Employment of Consultants

1/23

Selection and Employment of

ConsultantsComparison of GCG 2007 with WB, ADB and JBIC


2/23

2

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


3/23

3

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


4/23

4

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


5/23

5

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 %


6/23

6

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


of a joint venture or of a

sub-consultancy agreementto complement their


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.


7/23

7

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


8/23

8

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.


9/23

9

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.


10/23

10

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


11/23

11

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.


12/23

12

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%.


13/23

13

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.


14/23

14

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


15/23

15

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


16/23

16

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


17/23

17

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


18/23

18

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


19/23

19

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


20/23

20

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


21/23

21

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


22/23

22

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.


23/23

23

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

Group Excercise - Selection and Employment of Consultants

Documents

Transcript of Group Excercise - Selection and Employment of Consultants