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Construction Development Board

Circular

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Posted on 6th July, 2011

In continuation to Circular No. MoWHS/CDB-2/07-08/138 dated October 4, 2007, the Construction Development Board, based on the decision of the 56th Board Meeting held on 5th May 2011 is pleased to approve the following:

1. Foreign construction firms who wish to undertake construction works in Bhutan independently or through joint venture(s) with Bhutanese construction firm(s) are required to obtain CDB registration from the CDB Secretariat prior to participation in bidding for work(s).

2. Firms submitting bids as Joint Ventures (JV) partners shall actively participate in the entire process of procurement of works. All partners shall be jointly and severally liable and accountable for the execution of the contract in accordance the provisions of Standard Bidding Document (SBD) and Procurement Rules and Regulation 2009.

3. In the event, if any of the partner(s) in a JV arrangement is found to be a passive partner, it shall be considered as a fundamental breach of contract and the contract shall be terminated as per provision of SBD, clause 58.2.k – "Termination". The passive firm shall be denied registration as JV and disqualified for submission of any bids in Government construction works. Therefore, all the procuring agencies and construction firms are hereby requested to note the above for strict compliance with immediate effect.

Yeshi Zimba
Zhabtog Lyonpo & Chairman, CDB