PPA Reviewing AGI Construction Sector's Request

The Public Procurement Authority (PPA), has responded favourably to the call of AGI Construction Sector for stakeholders to accept the use of bid declaration forms as an option or replacement of bid securities.

This promising response from PPA was evident in a just ended stakeholder consultation workshop organised by the PPA to review draft regulations on the Public Procurement Act, 2003, Act 663 as amended.

The AGI Construction Sector Chairman, Mr. Rockson Kwesi Dogbegah, who was at the meeting to make inputs into the draft, said the call by the AGI Construction Sector for stakeholders to accept the use of bid declaration forms as an option or replacement of bid securities has been included by PPA in the ongoing review process.

"In effect, instead of an amount of money that may be calculated as a percentage of the budget, estimate of a bidder's bid price to be used to secure bids with the intention of deterring bidders from withdrawing their bids before contract award, with the acceptance of bid declaration form, contractors only lose an opportunity. Bid declaration form is a non-monetary form of bid security," he said.

The Bid Declaration Form is a notarised sworn statement made by a bidder committing to sign the contract if they are selected before the end of the bid validity period stipulated in the bidding documents.

In this sworn statement, the bidder agrees to be automatically disqualified from bidding for any future government contracts for a stipulated period of time to be specified in the tender documents if they withdraw their bid, fail to sign the contract before the end of the bid validity period, or are unable to provide a performance guarantee, if required.

Mr Dogbegah said the move was rather more advantageous and relevant to the sustainability of the business climate for local contractors as well as accelerating the local content agenda which was also being pursued by the AGI Construction Sector, since the stringent

requirements by the banks for preparation of bid securities would be avoided.

"This would subsequently offer contractors the opportunity to respond to more bidding opportunities to increase their chances of winning contracts," he said.

Mr Dogbegah said the liquidity challenges of local contractors due to the use of bid securities, unbearable collaterals for works procurement, which most locals were not able to provide, thereby forfeiting bidding opportunities, delayed procurement procedures and increased contract sums would then be a thing of the past.

The AGI Construction Sector, he said, acknowledged the BUSAC Fund with its development partners USAID, DANIDA, EU and other stakeholders for their immense support in promoting the construction sector advocacy issues.

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