ISO 10845-1:2020
(Main)Construction procurement — Part 1: Processes, methods and procedures
Construction procurement — Part 1: Processes, methods and procedures
This document describes processes, methods and procedures for the establishment within an organization of a procurement system for goods, services, and construction works or disposals, or any combination thereof that is fair, equitable, transparent, competitive and cost-effective. This document a) describes generic procurement processes around which an employer can develop its procurement system, b) establishes basic requirements for the conduct of an employer's employees, agents, board members and office bearers when engaging in procurement, c) establishes the framework for the development of an employer's procurement policy, including any secondary procurement policy, and d) establishes generic methods and procedures for procurements, including those pertaining to disposals. This document provides a generic and standard set of processes, procedures and methods for a procurement system which can be applied by both the public and private sector organizations in the development of their procurement system. The principles contained in this document can also be applied down the supply chain. This document enables organizations to develop in the first instance a generic procurement system and then to identify the methods and procedures best suited to particular categories of procurement.
Marchés de construction — Partie 1: Processus, méthodes et procédures
General Information
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Standards Content (Sample)
INTERNATIONAL ISO
STANDARD 10845-1
Second edition
2020-12
Construction procurement —
Part 1:
Processes, methods and procedures
Marchés de construction —
Partie 1: Processus, méthodes et procédures
Reference number
ISO 10845-1:2020(E)
©
ISO 2020
---------------------- Page: 1 ----------------------
ISO 10845-1:2020(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2020
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting
on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address
below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2020 – All rights reserved
---------------------- Page: 2 ----------------------
ISO 10845-1:2020(E)
Contents Page
Foreword .v
Introduction .vi
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Establishing a procurement system . 6
4.1 General . 6
4.1.1 Developing and documenting the system . 6
4.1.2 Responding to decisions taken . 6
4.2 Conduct of employees, agents and contractors . 7
4.2.1 Code of conduct. 7
4.2.2 Disciplinary action . 7
4.3 Procurement policy . 8
4.4 Secondary procurement policy .10
4.4.1 General requirements .10
4.4.2 Requirements relating to the granting of evaluation points .11
4.4.3 Requirements relating to accelerated rotations in electronic databases .12
4.5 Rotating electronic databases .13
4.5.1 Operating principles .13
4.5.2 Software requirements .13
4.5.3 Conduct of those admitted to the database .15
4.6 Means of communication .15
4.7 Devices relating to the electronic receipt of submissions .15
5 Preparing for procurement .16
5.1 Preparation for a procurement other than a disposal .16
5.1.1 Initial considerations .16
5.1.2 Readiness to solicit tender offers .16
5.1.3 Records .17
5.2 Preparation for a disposal .17
5.2.1 Initial considerations .17
5.2.2 Readiness to proceed .17
5.2.3 Records .17
6 Procurement methods and procedures .17
6.1 General .17
6.2 Procurement documentation .18
6.2.1 General requirements .18
6.2.2 Basic terms and conditions .18
6.2.3 Submission data .19
6.2.4 Tender data .19
6.2.5 Eligibility criteria .19
6.2.6 Evaluation criteria .20
6.2.7 Scope of work .20
6.2.8 Cost reimbursement and cost plus contracts .20
6.2.9 Delivery periods .21
6.2.10 Preferencing .21
6.2.11 Quality .21
6.3 Solicitation of tender offers.24
6.3.1 General.24
6.3.2 Competitive selection procedures .24
6.3.3 Negotiated procedure .27
6.3.4 Competitive negotiation procedures .27
6.3.5 Disposal procedures .28
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ISO 10845-1:2020(E)
6.3.6 Electronic auction procedure . .29
6.4 Framework agreements .30
6.4.1 General.30
6.4.2 Issuing of orders.31
6.5 Design competitions .31
6.6 Advertisements .32
6.6.1 General.32
6.6.2 Minimum information to be conveyed in advertisements for tenders .32
6.6.3 Minimum information to be conveyed in advertisements for expressions
of interest .32
6.7 Tender process and procedures .32
6.7.1 General.32
6.7.2 Tender deposits .33
6.7.3 Contacting of tenderers before the close of tenders .33
6.7.4 Receipt of tender submissions .33
6.7.5 Return of unopened submissions .34
6.7.6 Opening of tender submissions .34
6.7.7 Evaluation of tender submissions .34
6.8 Award of contracts .38
6.8.1 General.38
6.8.2 Records .39
6.8.3 Notification of unsuccessful tenderers .39
6.9 Contract administration .40
6.10 Resolution of disputes arising from a contract .40
6.11 Unsolicited proposals .40
6.12 Departures from established methods and procedures .40
Annex A (informative) Commentary .41
Annex B (informative) Differences between categories of procurement .57
Annex C (informative) Sustainable procurement in construction works contracts .60
Annex D (informative) Generic procurement processes .66
Annex E (informative) Establishing a procurement system and managing procurement
processes .71
Annex F (informative) Standard selection methods .81
Annex G (informative) Targeted procurement procedures .88
Annex H (informative) Auction data .108
Bibliography .111
iv © ISO 2020 – All rights reserved
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ISO 10845-1:2020(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO's adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/
iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works,
Subcommittee SC 18, Construction procurement.
This second edition cancels and replaces the first edition (ISO 10845-1:2010), which has been technically
revised.
The main changes compared to the previous edition are as follows:
— definitions and parts of the text have been revised, updated and aligned with other parts of the
ISO 10845 series to ensure consistency in concepts and terms;
— the considerations in the development of a procurement policy and provisions for framework
agreements have been expanded;
— provisions for a confined market selection procedure and design competitions have been added;
— the informative annexes relating to best value procurement and adjudication procedures to
challenge decisions have been withdrawn;
— informative annexes have been substantially revised and two informative annexes addressing
differences between categories of procurement and sustainable procurement in construction works
contracts have been added.
A list of all parts in the ISO 10845 series can be found on the ISO website.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/ members .html.
© ISO 2020 – All rights reserved v
---------------------- Page: 5 ----------------------
ISO 10845-1:2020(E)
Introduction
Procurement is the process which creates, manages and fulfils contracts. There are accordingly three
phases to the procurement process associated with the delivery and maintenance of construction
works, namely:
— a planning phase during which decisions are made as to what, where and when goods and services
are required, how the market is to be approached and what is the number, type, nature and timing
of the required contracts;
— an acquisition phase during which contracts are entered into following the execution of a selection
procedure; and
— a contract management (or contract administration) phase during which compliance with
requirements, changes in requirements and risk events which manifest during the execution of
contracts are managed.
Procurement activities commence once the need for procurement is identified and end when
the transaction is completed. There are six principal activities associated with the procurement
process, namely:
a) establish what is to be procured;
b) decide on procurement strategies in terms of packaging, contracting and targeting strategy and
selection method;
c) solicit tender offers;
d) evaluate tender offers;
e) award contract;
f) administer contracts and confirm compliance with requirements.
Methods, procedures and operational policies are required to implement these principal activities.
There is a finite range of methods and procedures associated with the various procurement sub-
processes which can be standardized around a set of system objectives.
This document provides a framework around which public, private and international organizations can
develop their procurement systems to achieve fair competition, to reduce the possibilities for abuse
and to improve predictability in procurement outcomes. It achieves this through the establishment of
standard rules for a wide range of procedures and methods and the limits of discretionary powers in
the absence of specific requirements for the management and control of the system. Accordingly, any
procurement system developed in terms of this document can be managed and controlled by a range
of flexible oversight structures or designated persons. Compliance with the aforementioned system
requirements can be readily established by merely auditing processes, procedures and methods for
compliance with this document and an organization’s procurement policy.
Guidance on the application of certain clauses of this document is provided in Annex A. Differences
between categories of procurement are indicated in Annex B. Generic procurement processes are
described in Annex D. Guidance is provided on sustainable procurement in construction works
contracts (Annex C), the establishment of a procurement system and the management of procurement
processes (Annex E), standard selection methods (Annex F) and targeted procurement procedures
(Annex G). Suggested auction data is provided in Annex H.
Standardization, apart from removing technical barriers to trade, enables
— those engaged in procurement activities to perform their duties, within the confines of their
organization's procurement policy, in a uniform and generic manner;
— procurement documents to be readily compiled in a uniform and generic manner; and
vi © ISO 2020 – All rights reserved
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ISO 10845-1:2020(E)
— curricula to be developed to capacitate those engaged in a range of procurement activities.
Furthermore, it allows governments to readily develop an internal procurement-skills base, which
is not lost when members of staff move between different departments or levels of government or
organizations.
This document is part of a series of International Standards entitled “construction procurement” which
covers various aspects of procurement encountered within the construction industry. Each part of the
series relates to a different aspect of procurement. The objective of ISO 10845 (all parts) is to provide
a generic and standard set of processes, procedures and methods for a procurement system that is fair,
equitable, transparent, competitive and cost-effective and which can be used to promote objectives
additional to those associated with the immediate objective of the procurement itself.
ISO 10845 (all parts) is especially relevant for developing countries that lack experience and instruments
in this field and can be used to improve international trade.
© ISO 2020 – All rights reserved vii
---------------------- Page: 7 ----------------------
INTERNATIONAL STANDARD ISO 10845-1:2020(E)
Construction procurement —
Part 1:
Processes, methods and procedures
1 Scope
This document describes processes, methods and procedures for the establishment within an
organization of a procurement system for goods, services, and construction works or disposals, or any
combination thereof that is fair, equitable, transparent, competitive and cost-effective. This document
a) describes generic procurement processes around which an employer can develop its
procurement system,
b) establishes basic requirements for the conduct of an employer's employees, agents, board members
and office bearers when engaging in procurement,
c) establishes the framework for the development of an employer's procurement policy, including any
secondary procurement policy, and
d) establishes generic methods and procedures for procurements, including those pertaining to
disposals.
This document provides a generic and standard set of processes, procedures and methods for a
procurement system which can be applied by both the public and private sector organizations in the
development of their procurement system. The principles contained in this document can also be
applied down the supply chain.
This document enables organizations to develop in the first instance a generic procurement system and
then to identify the methods and procedures best suited to particular categories of procurement.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
3.1
acceptance
act of agreeing to a contractor's (3.9) offer or tender, thereby creating a binding contract (3.7)
[SOURCE: ISO 6707-2:2017, 3.5.16]
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ISO 10845-1:2020(E)
3.2
agent
person or organization (3.21) that is not an employee of the employer (3.15) and that acts on the
employer's behalf
3.3
bill of quantities
document for tendering, usually prepared in a standard form, comprising both a descriptive list of
quantities of works and descriptions of the materials, workmanship and other matters required for
construction works
[SOURCE: ISO 6707-2:2017, 3.5.11, modified — The preferred term "bill of materials, US" and the
admitted term "quantity survey, US" have been removed.]
3.4
bond
sum of money or securities submitted to the employer (3.15) or placed in the hands of a third party
to guarantee completion and recovery of the sums which the contractor (3.9) is recognized as owing
under the terms of contract (3.7)
[SOURCE: ISO 6707-2:2017, 3.5.40, modified — “client” has been replaced with “employer”.]
3.5
conditions of contract
terms that collectively describe the rights and obligations of contracting parties and the agreed
procedures for the administration of their contract (3.7)
3.6
conflict of interest
situation in which someone in a position of trust has competing professional or personal interests
which make it difficult for the person to fulfil the duties impartially, an individual or organization (3.21)
is in a position to exploit a professional or official capacity in some way for personal or for corporate
benefit, or incompatibility or contradictory interests exist between an employee and the organization
which employs that employee
3.7
contract
legally enforceable agreement to supply goods, carry out construction works and/or provide services
[SOURCE: ISO 6707-2:2017, 3.1.1]
3.8
contract data
document that identifies the applicable conditions of a contract (3.7) and states the associated contract-
specific data
3.9
contractor
person or organization (3.21) that contracts to supply goods, carry out construction works and/or
provide services
Note 1 to entry: The use of the generic term “contractor” eliminates the need to introduce the terms “service
provider” and “supplier” as it has been defined to cover these terms.
Note 2 to entry: The definitions for “employer” and “contractor” are such that relevant subclauses of this
document can be applied at any point in the supply chain. For example, in a contract, a “contractor” can be an
“employer” and a “contractor” can be a “subcontractor”.
2 © ISO 2020 – All rights reserved
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ISO 10845-1:2020(E)
3.10
corrupt practice
offering, giving, receiving or soliciting of anything of value to influence the action of the employer (3.15)
or his staff or agents (3.2) in the procurement (3.24) process or the administration of the contract (3.7)
3.11
cost plus contract
cost reimbursement contract (3.12) under which the contractor (3.9) is paid for their actual expenditure
plus a percentage or other sum as previously agreed
[SOURCE: ISO 6707-2:2017, 3.4.11]
3.12
cost reimbursement contract
contract (3.7) based on costs expended
[SOURCE: ISO 6707-2:2017, 3.4.10]
3.13
electronic auction
repetitive process involving an electronic device for the presentation of new prices, revised downwards
or new values concerning cert
...
FINAL
INTERNATIONAL ISO/FDIS
DRAFT
STANDARD 10845-1
ISO/TC 59/SC 18
Construction procurement —
Secretariat: SABS
Voting begins on:
Part 1:
2020-09-18
Processes, methods and procedures
Voting terminates on:
2020-11-13
Marchés de construction —
Partie 1: Processus, méthodes et procédures
RECIPIENTS OF THIS DRAFT ARE INVITED TO
SUBMIT, WITH THEIR COMMENTS, NOTIFICATION
OF ANY RELEVANT PATENT RIGHTS OF WHICH
THEY ARE AWARE AND TO PROVIDE SUPPOR TING
DOCUMENTATION.
IN ADDITION TO THEIR EVALUATION AS
Reference number
BEING ACCEPTABLE FOR INDUSTRIAL, TECHNO-
ISO/FDIS 10845-1:2020(E)
LOGICAL, COMMERCIAL AND USER PURPOSES,
DRAFT INTERNATIONAL STANDARDS MAY ON
OCCASION HAVE TO BE CONSIDERED IN THE
LIGHT OF THEIR POTENTIAL TO BECOME STAN-
DARDS TO WHICH REFERENCE MAY BE MADE IN
©
NATIONAL REGULATIONS. ISO 2020
---------------------- Page: 1 ----------------------
ISO/FDIS 10845-1:2020(E)
COPYRIGHT PROTECTED DOCUMENT
© ISO 2020
All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may
be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting
on the internet or an intranet, without prior written permission. Permission can be requested from either ISO at the address
below or ISO’s member body in the country of the requester.
ISO copyright office
CP 401 • Ch. de Blandonnet 8
CH-1214 Vernier, Geneva
Phone: +41 22 749 01 11
Email: copyright@iso.org
Website: www.iso.org
Published in Switzerland
ii © ISO 2020 – All rights reserved
---------------------- Page: 2 ----------------------
ISO/FDIS 10845-1:2020(E)
Contents Page
Foreword .v
Introduction .vi
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Establishing a procurement system . 6
4.1 General . 6
4.1.1 Developing and documenting the system . 6
4.1.2 Responding to decisions taken . 6
4.2 Conduct of employees, agents and contractors . 7
4.2.1 Code of conduct. 7
4.2.2 Disciplinary action . 7
4.3 Procurement policy . 8
4.4 Secondary procurement policy .10
4.4.1 General requirements .10
4.4.2 Requirements relating to the granting of evaluation points .11
4.4.3 Requirements relating to accelerated rotations in electronic databases .12
4.5 Rotating electronic databases .13
4.5.1 Operating principles .13
4.5.2 Software requirements .13
4.5.3 Conduct of those admitted to the database .15
4.6 Means of communication .15
4.7 Devices relating to the electronic receipt of submissions .15
5 Preparing for procurement .16
5.1 Preparation for a procurement other than a disposal .16
5.1.1 Initial considerations .16
5.1.2 Readiness to solicit tender offers .16
5.1.3 Records .17
5.2 Preparation for a disposal .17
5.2.1 Initial considerations .17
5.2.2 Readiness to proceed .17
5.2.3 Records .17
6 Procurement methods and procedures .17
6.1 General .17
6.2 Procurement documentation .18
6.2.1 General requirements .18
6.2.2 Basic terms and conditions .18
6.2.3 Submission data .19
6.2.4 Tender data .19
6.2.5 Eligibility criteria .19
6.2.6 Evaluation criteria .20
6.2.7 Scope of work .20
6.2.8 Cost reimbursement and cost plus contracts .20
6.2.9 Delivery periods .21
6.2.10 Preferencing .21
6.2.11 Quality .21
6.3 Solicitation of tender offers.24
6.3.1 General.24
6.3.2 Competitive selection procedures .24
6.3.3 Negotiated procedure .27
6.3.4 Competitive negotiation procedures .27
6.3.5 Disposal procedures .28
© ISO 2020 – All rights reserved iii
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ISO/FDIS 10845-1:2020(E)
6.3.6 Electronic auction procedure . .29
6.4 Framework agreements .30
6.4.1 General.30
6.4.2 Issuing of orders.31
6.5 Design competitions .31
6.6 Advertisements .32
6.6.1 General.32
6.6.2 Minimum information to be conveyed in advertisements for tenders .32
6.6.3 Minimum information to be conveyed in advertisements for expressions
of interest .32
6.7 Tender process and procedures .32
6.7.1 General.32
6.7.2 Tender deposits .33
6.7.3 Contacting of tenderers before the close of tenders .33
6.7.4 Receipt of tender submissions .33
6.7.5 Return of unopened submissions .34
6.7.6 Opening of tender submissions .34
6.7.7 Evaluation of tender submissions .34
6.8 Award of contracts .38
6.8.1 General.38
6.8.2 Records .39
6.8.3 Notification of unsuccessful tenderers .39
6.9 Contract administration .40
6.10 Resolution of disputes arising from a contract .40
6.11 Unsolicited proposals .40
6.12 Departures from established methods and procedures .40
Annex A (informative) Commentary .41
Annex B (informative) Differences between categories of procurement .57
Annex C (informative) Sustainable procurement in construction works contracts .60
Annex D (informative) Generic procurement processes .66
Annex E (informative) Establishing a procurement system and managing procurement
processes .71
Annex F (informative) Standard selection methods .81
Annex G (informative) Targeted procurement procedures .88
Annex H (informative) Auction data .108
Bibliography .111
iv © ISO 2020 – All rights reserved
---------------------- Page: 4 ----------------------
ISO/FDIS 10845-1:2020(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular, the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation of the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO's adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT), see www .iso .org/
iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works,
Subcommittee SC 18, Construction procurement.
This second edition cancels and replaces the first edition (ISO 10845-1:2010), which has been technically
revised.
The main changes compared to the previous edition are as follows:
— definitions and parts of the text have been revised, updated and aligned with other parts of the
ISO 10845 series to ensure consistency in concepts and terms;
— the considerations in the development of a procurement policy and provisions for framework
agreements have been expanded;
— provisions for a confined market selection procedure and design competitions have been added;
— the informative annexes relating to best value procurement and adjudication procedures to
challenge decisions have been withdrawn;
— informative annexes have been substantially revised and two informative annexes addressing
differences between categories of procurement and sustainable procurement in construction works
contracts have been added.
A list of all parts in the ISO 10845 series can be found on the ISO website.
Any feedback or questions on this document should be directed to the user’s national standards body. A
complete listing of these bodies can be found at www .iso .org/ members .html.
© ISO 2020 – All rights reserved v
---------------------- Page: 5 ----------------------
ISO/FDIS 10845-1:2020(E)
Introduction
Procurement is the process which creates, manages and fulfils contracts. There are accordingly three
phases to the procurement process associated with the delivery and maintenance of construction
works, namely:
— a planning phase during which decisions are made as to what, where and when goods and services
are required, how the market is to be approached and what is the number, type, nature and timing
of the required contracts;
— an acquisition phase during which contracts are entered into following the execution of a selection
procedure; and
— a contract management (or contract administration) phase during which compliance with
requirements, changes in requirements and risk events which manifest during the execution of
contracts are managed.
Procurement activities commence once the need for procurement is identified and end when
the transaction is completed. There are six principal activities associated with the procurement
process, namely:
a) establish what is to be procured;
b) decide on procurement strategies in terms of packaging, contracting and targeting strategy and
selection method;
c) solicit tender offers;
d) evaluate tender offers;
e) award contract;
f) administer contracts and confirm compliance with requirements.
Methods, procedures and operational policies are required to implement these principal activities.
There is a finite range of methods and procedures associated with the various procurement sub-
processes which can be standardized around a set of system objectives.
This document provides a framework around which public, private and international organizations can
develop their procurement systems to achieve fair competition, to reduce the possibilities for abuse
and to improve predictability in procurement outcomes. It achieves this through the establishment of
standard rules for a wide range of procedures and methods and the limits of discretionary powers in
the absence of specific requirements for the management and control of the system. Accordingly, any
procurement system developed in terms of this document can be managed and controlled by a range
of flexible oversight structures or designated persons. Compliance with the aforementioned system
requirements can be readily established by merely auditing processes, procedures and methods for
compliance with this document and an organization’s procurement policy.
Guidance on the application of certain clauses of this document is provided in Annex A. Differences
between categories of procurement are indicated in Annex B. Generic procurement processes are
described in Annex D. Guidance is provided on sustainable procurement in construction works
contracts (Annex C), the establishment of a procurement system and the management of procurement
processes (Annex E), standard selection methods (Annex F) and targeted procurement procedures
(Annex G). Suggested auction data is provided in Annex H.
Standardization, apart from removing technical barriers to trade, enables
— those engaged in procurement activities to perform their duties, within the confines of their
organization's procurement policy, in a uniform and generic manner;
— procurement documents to be readily compiled in a uniform and generic manner; and
vi © ISO 2020 – All rights reserved
---------------------- Page: 6 ----------------------
ISO/FDIS 10845-1:2020(E)
— curricula to be developed to capacitate those engaged in a range of procurement activities.
Furthermore, it allows governments to readily develop an internal procurement-skills base, which
is not lost when members of staff move between different departments or levels of government or
organizations.
This document is part of a series of International Standards entitled “construction procurement” which
covers various aspects of procurement encountered within the construction industry. Each part of the
series relates to a different aspect of procurement. The objective of ISO 10845 (all parts) is to provide
a generic and standard set of processes, procedures and methods for a procurement system that is fair,
equitable, transparent, competitive and cost-effective and which can be used to promote objectives
additional to those associated with the immediate objective of the procurement itself.
ISO 10845 (all parts) is especially relevant for developing countries that lack experience and instruments
in this field and can be used to improve international trade.
© ISO 2020 – All rights reserved vii
---------------------- Page: 7 ----------------------
FINAL DRAFT INTERNATIONAL STANDARD ISO/FDIS 10845-1:2020(E)
Construction procurement —
Part 1:
Processes, methods and procedures
1 Scope
This document describes processes, methods and procedures for the establishment within an
organization of a procurement system for goods, services, and construction works or disposals, or any
combination thereof that is fair, equitable, transparent, competitive and cost-effective. This document
a) describes generic procurement processes around which an employer can develop its
procurement system,
b) establishes basic requirements for the conduct of an employer's employees, agents, board members
and office bearers when engaging in procurement,
c) establishes the framework for the development of an employer's procurement policy, including any
secondary procurement policy, and
d) establishes generic methods and procedures for procurements, including those pertaining to
disposals.
This document provides a generic and standard set of processes, procedures and methods for a
procurement system which can be applied by both the public and private sector organizations in the
development of their procurement system. The principles contained in this document can also be
applied down the supply chain.
This document enables organizations to develop in the first instance a generic procurement system and
then to identify the methods and procedures best suited to particular categories of procurement.
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— ISO Online browsing platform: available at https:// www .iso .org/ obp
— IEC Electropedia: available at http:// www .electropedia .org/
3.1
acceptance
act of agreeing to a contractor's (3.9) offer or tender, thereby creating a binding contract (3.7)
[SOURCE: ISO 6707-2:2017, 3.5.16]
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ISO/FDIS 10845-1:2020(E)
3.2
agent
person or organization (3.21) that is not an employee of the employer (3.15) and that acts on the
employer's behalf
3.3
bill of quantities
document for tendering, usually prepared in a standard form, comprising both a descriptive list of
quantities of works and descriptions of the materials, workmanship and other matters required for
construction works
[SOURCE: ISO 6707-2:2017, 3.5.11, modified — The preferred term "bill of materials, US" and the
admitted term "quantity survey, US" have been removed.]
3.4
bond
sum of money or securities submitted to the employer (3.15) or placed in the hands of a third party
to guarantee completion and recovery of the sums which the contractor (3.9) is recognized as owing
under the terms of contract (3.7)
[SOURCE: ISO 6707-2:2017, 3.5.40, modified — “client” has been replaced with “employer”.]
3.5
conditions of contract
terms that collectively describe the rights and obligations of contracting parties and the agreed
procedures for the administration of their contract (3.7)
3.6
conflict of interest
situation in which someone in a position of trust has competing professional or personal interests
which make it difficult for the person to fulfil the duties impartially, an individual or organization (3.21)
is in a position to exploit a professional or official capacity in some way for personal or for corporate
benefit, or incompatibility or contradictory interests exist between an employee and the organization
which employs that employee
3.7
contract
legally enforceable agreement to supply goods, carry out construction works and/or provide services
[SOURCE: ISO 6707-2:2017, 3.1.1]
3.8
contract data
document that identifies the applicable conditions of a contract (3.7) and states the associated contract-
specific data
3.9
contractor
person or organization (3.21) that contracts to supply goods, carry out construction works and/or
provide services
Note 1 to entry: The use of the generic term “contractor” eliminates the need to introduce the terms “service
provider” and “supplier” as it has been defined to cover these terms.
Note 2 to entry: The definitions for “employer” and “contractor” are such that relevant subclauses of this
document can be applied at any point in the supply chain. For example, in a contract, a “contractor” can be an
“employer” and a “contractor” can be a “subcontractor”.
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3.10
corrupt practice
offering, giving, receiving or soliciting of anything of value t
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