Description of Government Contracts

2301. (i) A Contract is a formal agreement which has a force of Law between two or more parties. The essential ingredients of a contract are offer, acceptance and consideration.

(ii) Government contracts are made in accordance with the ordinary law of contract through offer by one party and acceptance by the other. The only distinction between a Government contract and that of a commercial undertaking is that, while an outside body can freely choose the contractor with whom it wishes to deal, a Ministry/Extra- Ministerial Office and other Arms of Government is accountable for disbursement of public funds and is obliged to consider the claims of all qualified contractors wishing to work for it.

2302. A contract should be awarded as a result of competition by tender,unless there are specific reasons to the contrary.

2303. (i) No contract work involving construction shall be consider by Tenders Board unless:-

(a) The land has been acquired, and the topographical map (and soil test except where it is certified by the Architect that is not necessary) has been approved by the appropriate authority. The documents relating to the land, the survey map, the soil test report or certificate of exemption by the architect should form part of contract documents to be presented to the Tenders Board. .

(b) The design of the building, road, etc., relating to (a) above is broken down into:

i. Architectural design

ii. Structural design

iii. Electrical design

iv. Mechanical design

v. Bills of Quantities

(c) Technical details of the project to purchase the designs for a no refundable fee, the amount of which shall be determined from tine-to- time

(ii) Tenders shall be requested to purchase the designs for a non refundable fee, the amount of which shall be determined from time-to-time.

2304. The establishment and composition of Tenders Board shall be as follows:

(i) Departmental Tenders Board (DTB):

Each ministry/Extra Ministerial department shall have a Departmental Tenders Board with the following membership:-

(a) Chairman - Most Senior director other than the one seeking tender

(b) Member - Officers not below the substantive rank of Assistant Director from each of the departments including the Heads of Accounts and Supplies Division.

(ii) Ministerial Tenders Board (MTB):

There shall be stabilized in each Ministry/Extra Ministerial Department a Ministerial Tenders Board with the following membership:

(a) Chairman - Permanent Secretary/Accounting Officer

(b) Members - Director or Heads of Department in the Ministry, Representative of the Ministry of Finance Representative of Ministry of Justice.

(iii) State Tenders Board (STB):

The State Tenders Board shall have the following membership:

(a) Chairman - Hon. Commissioner of Finance

2305. The spending limit and approval in respect of all contracts shall be as follows:-

2306. (i) for a contract to be awarded the following conditions must be fulfilled:

(a) Registration with Benue State Tenders Board as a contractor.

(b) Payment of a contract processing fee as may be prescribed form time to time.

(c) Submission of Current Tax Clearance Certificate.

(d) Submission of Certificate of Business Registration or Incorporation.

(ii) The following documents must be produced in support of payment:-

(a) A signed Contract Agreement

(b) Bank Guarantee (Not Insurance Bond) where an advance payment is requires; and

(c) A Certificate Valuation for work done.

(d) Stores Receipt voucher (SRV) for goods received.

2307. It is an offence for any public officer to deliberately split tenders so as to circumvent the provisions of the Financial Instructions. Such breach of trust will be severely dealt with by a component disciplinary authority as laid down in the Civil Service Rules or Law.

2308. It shall be a very serious offence for any public officer to award contract when funds are not available.

2309. Mobilization fee, where necessary and payable, shall not exceed 30% of the total contract sum provided that the contractor shall produce a bank guarantee from a reputable bank, covering the total amount of the mobilization fee. Where it is necessary to make advance payment exceeding 30% of the total contract sum, the request for such payment must be approved by the Governor.

2310. Contracts once entered into may not be assigned or sublet and their conditions may not varied except on the authority of the Tenders Board concerned.

2311. (i) Minutes of all Tenders Board meetings and the full records of all rendering processing shall be made available for the inspection of the Auditor- General and the Accountant General.

(ii) The Records in (i) above shall be kept for a period of seven years from the date of completion of the contract and take-over of project.

2312. (i) All Tenders Boards are empowered to call upon any qualified officer to assist them with technical or other expert advice.

(ii) In the case of very highly technical contracts, there should be a committee of professionals for the evaluation of bids. The Secretary of the Tenders Board should be the Secretary of the Committee. Members of the Evaluation Committee Tenders Boards and approval authorities should be obliged to declare any conflict of interest and exclude themselves from bid evaluation and approval process.

2313. The final award of a contract shall be conveyed to the parties whose tenders have been accepted. The originating Organization shall take further necessary action to ensure the execution of the contract agreement. Certified true copies of all contracts will be sent to the Auditor-General and the Accountant - General for custody.

2314. Accounting Officers shall ensure that invitations to tender are advertised in good time to enable the Tenders Board to give tender careful considerations, and the person to whom the award is made, time to complete his plans for the fulfillment of the contract before it is due to start.

2315. After a deed of contract has been completed, the name of the successful tender and nature of the service will be published.