“Methodology regarding features of road works procurements” webinar with the participation of Artem Bezuglyi, Director of “DerzhdorNDI” SE, was held today on the basis of Ukravtodor.
Artem Bezuglyi presented the following main qualification criteria that will be introduced for all road procurements:
- the participant of procurements procedure needs to have equipment, material and technical base and technologies;
- the participant of procurements procedure needs to have the staff with appropriate qualifications, required knowledge and experience;
- availability of documentary confirmed experience of performing of similar procurement contract (s);
- availability of financial capacity that is confirmed by the financial statements.
After the presentation a lot of interesting questions were raised and the answers to the most interesting of them see below.
? How will the methodology counteract tender trolling?
Taking into account our Ukrainian realities, it is impossible to avoid tender trolling on 100%. But clear qualification criteria and the ways to confirm them will significantly reduce the complaints that block tenders. In addition, our plans involve further justifying of the Methodology, which, taking into account possible penalties for appeal of an unsubstantiated complaint, will gradually eliminate tender trolling.
? How will the methodology become mandatory?
From April 19, as a result of entry into force of the amendments to the Public Procurement Law, the Ministry of Economic Development and Trading (MEDT) will be given the relevant powers. Under these powers MEDT will be able to implement certain Methodologies for specific areas of activity, including road activity.
? How discriminatory would be the mechanism involved by the Methodology?
It is impossible to create a "perfect" tender documentation with equal rules for all. There is a need in keeping the right balance between all road contractors, not forgetting for the level of quality of road works. The methodology sets strict but fair requirements for those contenders who want to attain big and responsible facilities. The Methodology's requirements are comparable with the requirements of many leading countries and the World Bank, it is not the Ukrainian know-how.
? What is your attitude towards the Methodology regarding determination of the estimated value, approved by MEDT?
This Methodology gives the right to determine the estimated cost according to the design documentation. This approach may satisfy the current state of industry as a whole, but we strive to transfer to a modern road market mode and to implement contracts by Design & Build scheme.
? Why technical passports for the equipment are required?
This requirement is quite reasonable as the contractor must attend the facility for work and not for experiments that may occur with faulty machines.
? How important is quantity of machines, is the nomenclature solely not sufficient?
Why are we talking about quantity? This is a very important requirement for admission of the participant to the tender procedure, as a serious high-power facility cannot be performed with 1 dump truck, 1 asphalt paver and 1 road roller. We emphasize that we set minimum threshold for the quantity of key equipment.
? Why a feedback is required if payment acts are available?
The repeated cases occur when after work completion, during the warranty period, the contractor does not wish to remedy the detected defects (for example, when potholes or rutting occur). But such unscrupulous participants of tender cannot be refused to the participation in the next tender. This issue was planned to be solved through the introduction of the so-called "black list", but who will set it and how can it affect the tenders? Therefore, we see the solution of the problem of admission of unfair participants to the tender only by obliging them to submit the comment from the customer (general contractor).
? Who are the tender trolls?
The tender troll is a company that massively complains to the AMCU and subsequently manipulates the tendering process. In this case, the complaints may not be substantiated, the troll may not have sufficient logistical resources, moreover, sometimes the troll even does not plan to win the tender. Its main purpose is to press the customer and other participants for getting certain benefits.
? Why is the need in so strict regulation of the distance from the asphalt plant to the construction area?
Such clear requirement is foreseen by our “Road Bible” - DBN B.2.3-4. According to the norms, the asphalt mixture should be of a certain temperature before its placement, which further ensures the proper quality of the pavement. Of course, also the norms involve the operational control, during which the relevant specialists clearly monitor the compliance of the asphalt mixture with the current building norms and standards. However, in the large scale of construction areas we are obliged to eliminate any case of placing the mixture of poor quality, rather than relying on the qualifications and strict position of a technical supervision engineer.
? How will quarantine affect Ukravtodor procurements?
It can’t be said that quarantine and related activities have not affected our daily lives. At the same time, we have clear demands from the President, the Government and the Ukravtodor management to continue the implementation of the "Big Construction" National Program. We see the problems in severe restriction measures on safety and health, but they concern mainly the office staff that is forced to transfer to a distance mode of work. All other employees, including those who are at the facilities, work without stopping for a minute.
? How the implemented “lift” will have influence the local roads of state importance?
This lift is easier to comment using a real example. The company starts to work on local roads and gets experience while performing the repair works. Gradually, this company becomes a contender for the performing of works on territorial roads. After work on these roads, the company obtains sufficient experience for starting the work on international, national, or regional roads.
? What is the bank guarantee meant for?
It is meant for fighting against tender trolls. The monetary coverage of such a guarantee will clearly minimize the strong desire of some companies for tender trolling, as they will now be forced to ber considerable financial risks.
? How many criteria have to be used in road works ?
All of the four. At our facilities huge budget funds play out, and therefore all qualification criteria stipulated by the Law and this Methodology have to be worked out for increasing the efficiency of taxpayers' investments.
? Why is the experience of arranging of the top layer of pavement is not a confirmation while performing different types of work?
Unfortunately, the Law involves the experience similar to the subject of procurement. That is, the principle of working separately on new construction, reconstruction and overhaul, and separately – rendering the services on current mid-term repairing works. But we are planning to work out this legal issue, as today the works that are performed during current mid-term repair, are essentially the part of the overhaul works.
We repeatedly remind that the Methodology Project was presented at the webinar! Further it would be elaborated at the meetings of a Working Group on the basis of MEDT.
Therefore, we would be thankful to all market participants for their constructive suggestions regarding improving of such a Methodology for the creation of transparent and competitive environment at the road works market. Let's not by criticism but by the provision of effective proposals, change the rules of play at the road market, and our common experiences will form the basis of the Methodology for the features of the road works procurements.