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Guidelines for the Selection of Contractors and Suppliers for Projects, Deliveries, and Assignments

1. Purpose of the guidelines

These guidelines transparently describe how contractors are selected for construction projects, renovation projects, major maintenance, and other real estate-related work. The purpose is to ensure that the selection of contractors takes place on the basis of objective, verifiable, and fair criteria.

The guidelines are intended to provide equal opportunities to suitable market parties, safeguard the quality of execution, limit financial risks, and comply with the principles of transparency, integrity, proportionality, and non-discrimination.

2. Scope

These guidelines apply to, among other things:

  • New construction projects;
  • Renovation projects;
  • Major maintenance;
  • Turnover maintenance;
  • Complaint maintenance;
  • Infrastructure works around residential properties;
  • Architectural, structural, and building services engineering work;
  • Projects involving architects, consultants, project managers, and supervisors;
  • Projects in which multiple contractors or subcontractors are engaged.

3. General principles

The following principles apply when selecting contractors and suppliers:

  1. Transparency — The selection procedure, assessment criteria, and requirements are clearly communicated in advance.
  2. Equal treatment — All tenderers are treated in the same manner and receive the same information.
  3. Objectivity — The assessment takes place on the basis of pre-established criteria.
  4. Integrity — Contractors must be demonstrably reliable and comply with integrity and compliance requirements.
  5. Proportionality — The requirements requested are reasonably proportionate to the nature, scale, and risks of the project.
  6. Quality and continuity — Selection is not based solely on the lowest price, but also on quality, planning, experience, safety, and execution capacity.

4. Registration and admission to the contractor platform

Contractors who wish to participate in selection procedures must register through the designated platform in accordance with the applicable procedure.

The following documents are requested upon registration:

  • PIF (Personalia Information Form)
  • Extract from the Chamber of Commerce, not older than 3 months
  • Valid identification document (passport, cedula, driver’s license) of directors and shareholders (VBA/NV)
  • Valid identification document (passport, cedula, driver’s license) of the owner and authorized representative (sole proprietorship)
  • Copy of the shareholders’ register
  • References for projects and/or experience overviews from the past two (2) years.

An overview of relevant completed projects or activities, matching the category for which the contractor wishes to register. This may include requests for: name of the project; nature of the work; client; project value, if available; execution period; contact person or reference, if possible.

When entering into a project agreement and/or assignment, the following documents, among others, may be requested:

  • Tax compliance certificate (DIMP)
  • SVB registration and payment compliance
  • (Letter of intent for) bank guarantee
  • (Letter of intent for) CAR insurance
  • List of subcontractors to be engaged (approval by management required)
  • Project schedule
  • Staffing and capacity plan
  • Safety plan

Admission to the platform does not automatically mean that a contractor is entitled to assignments. A separate selection or invitation takes place for each project.

5. Classification of contractor categories

Contractors may be classified into different categories, depending on their experience, capacity, and type of work. Examples of categories include:

  • A. Large contractors — For new construction projects, large-scale renovations, apartment complexes, and projects with high technical or financial value. Capacity for 20 homes or more at the same time.
  • B. Medium-sized contractors — For renovations, maintenance projects, smaller new construction projects, and combined construction activities. Capacity between 1 and 20 homes at the same time.
  • C. Small contractors and maintenance companies — For complaint maintenance, turnover work, minor alterations, repair work, and routine repairs. 1 to 2 homes at the same time.
  • D. Specialized contractors — For, among other things: roofing work; electrical installations; plumbing work; air conditioning; painting; aluminum and window frames; concrete repair; tiling work; landscaping; infrastructure; asbestos or environmentally related work, where applicable.

6. Preselection criteria

During preselection, it is assessed whether a contractor is suitable to participate in a specific tender or quotation procedure. The following criteria may be applied:

6.1 Legal suitability

The contractor must:

  • Be legally registered;
  • Be authorized to perform the work;
  • Have no relevant legal impediments;
  • Possess the correct permits, where required.
6.2 Financial capacity

The contractor must be financially sufficiently stable for the scale of the project. The following may be reviewed:

  • Annual turnover;
  • Liquidity;
  • Solvency;
  • Bank reference;
  • Outstanding obligations;
  • Risk of bankruptcy;
  • Relationship between project size and financial capacity.
6.3 Technical competence

The contractor must demonstrate that it can technically perform the required work. The following may be requested:

  • Comparable projects;
  • Experience with residential construction;
  • Experience with renovation or maintenance;
  • Availability of qualified personnel;
  • Availability of equipment;
  • Quality control system;
  • Planning and project control.
6.4 Experience and references

The contractor must submit relevant reference projects, preferably including: project name; client; project value; execution period; description of the work; reference contact person; any completion reports or evaluations.

6.5 Safety and health

For projects with increased risk, the following may be requested:

  • Safety plan;
  • Use of personal protective equipment;
  • Safety instructions for personnel and subcontractors;
  • Risk assessment for execution.
6.6 Integrity and compliance

The contractor must comply with integrity requirements, including:

  • No involvement in fraud, corruption, or money laundering;
  • Transparency regarding UBOs;
  • No conflict of interest with staff, management, or supervisors;
  • No unauthorized arrangements with competitors;
  • Willingness to provide AML/CFT information if requested;
  • Signing a code of conduct or integrity declaration.

7. Selection criteria per project

Weighting of selection criteria. The organization applies one fixed assessment methodology for the selection of contractors. This methodology consists of fixed main criteria, such as price, quality, planning, experience, execution capacity, safety, and risk management.

The specific weighting of these criteria may differ by project category, depending on the scale, complexity, value, and risks of the project. For projects with a value of less than AWG 500,000, a simpler weighting may be applied, in which price carries relatively more weight and quality criteria are assessed more lightly, provided the contractor meets the minimum requirements for suitability, safety, and execution.

For larger, more complex, or higher-risk projects, greater emphasis is placed on quality, experience, planning, execution method, safety, and risk management.

Project category Price Quality / Approach plan Planning Experience / capacity Safety / risk
Projects < AWG 500,000 60%15%10%10%5%
Projects ≥ AWG 500,000 40%25%15%10%10%

8. Assessment of tenders

Tenders are assessed by an evaluation committee or project team. The assessment takes place on the basis of the pre-established criteria. The assessment may consist of:

  1. Check for completeness of the tender;
  2. Check for grounds for exclusion;
  3. Assessment of suitability requirements;
  4. Financial assessment;
  5. Technical assessment;
  6. Assessment of planning and execution method;
  7. Assessment of price;
  8. Final score and ranking;
  9. Internal approval;
  10. Award or provisional award.

9. Grounds for exclusion

A contractor may be excluded if there is:

  • Incorrect or misleading information;
  • Failure to comply with legal obligations;
  • Serious shortcomings in previous assignments;
  • Bankruptcy or suspension of payments;
  • Fraud, corruption, money laundering, or other integrity risks;
  • Conflict of interest;
  • Failure to meet safety requirements;
  • Failure to submit required documents on time or in full;
  • Failure to demonstrate sufficient capacity.

10. Award methods

Depending on the project, one of the following methods may be applied:

  • 10.1 Lowest price — Suitable for simple, clearly defined work in which quality and specifications have been fully established.
  • 10.2 Best price-quality ratio — Suitable for complex projects in which quality, planning, approach, risks, and sustainability are also important.
  • 10.3 Selection under a framework agreement — Suitable for recurring maintenance work, complaint maintenance, turnover work, and small projects.
  • 10.4 Private selection — Suitable for smaller assignments, urgent work, or specialized work where only a limited market is available.

11. Requirements for subcontractors

If a contractor wishes to engage subcontractors, these must be submitted in writing in advance for approval by FCCA management. At a minimum, the contractor must provide the name of the subcontractor.

The use of subcontractors is permitted only after prior approval by management/the client. Despite this approval, the main contractor remains fully responsible and liable for the quality, planning, safety, compliance with contractual obligations, and the full execution of the work by the subcontractors.

Management/the client reserves the right to reject a proposed subcontractor if it does not meet the set requirements, is insufficiently qualified, or if there are integrity, compliance, safety, or execution risks. The client may require that:

  • Subcontractors are reported in advance;
  • Subcontractors meet minimum integrity and safety requirements;
  • Critical work is not outsourced without permission;
  • Subcontractors possess the correct permits and professional competence;
  • The main contractor remains responsible for quality, planning, and safety.

12. Conflict of interest and integrity

Contractors must immediately report any possible conflict of interest. There is a possible conflict of interest if, for example:

  • A director, employee, or supervisor has a personal or financial interest in the contractor;
  • Family ties exist between evaluators and the contractor;
  • The contractor was previously involved in the preparation of the project and therefore has an unfair advantage;
  • There is unauthorized influence.

In the event of a conflict of interest, the contractor may be excluded or additional safeguards may be imposed.

13. Communication during the selection procedure

All communication takes place via the official tender platform DigiBid. Tenderers are not permitted to contact evaluators, directors, or employees outside the official procedure regarding the content of the tender, unless this is expressly permitted. Questions are answered centrally so that all tenderers have the same information.

14. Confidentiality

All project information, drawings, budgets, reports, and other documents provided by the client are confidential. Contractors may use this information solely for the purpose of the tender and may not share it with third parties without permission, except to the extent necessary for preparing the tender.

15. Evaluation after execution

After completion of a project, the contractor’s performance may be evaluated. This may include reviewing:

  • Quality of execution;
  • Adherence to the schedule;
  • Budget control;
  • Cooperation and communication;
  • Safety on the construction site;
  • Interaction with residents;
  • Handling of punch list items;
  • Aftercare and warranty;
  • Administrative completion;
  • Management of change orders and deductive work.

The evaluation may be taken into account in future selections.

16. Sanctions and measures

If a contractor does not meet the established requirements or seriously fails to perform, measures may be taken, such as:

  • Written warning;
  • Temporary exclusion from new assignments;
  • Termination of the agreement;
  • Withholding of payments in accordance with contractual provisions;
  • Exclusion from the contractor platform;
  • Legal action in the event of damage, fraud, or serious shortcomings.

17. Reservation of rights

The client reserves the right to:

  • Amend, suspend, or terminate a procedure;
  • Not award an assignment;
  • Request additional information;
  • Declare submissions invalid if the conditions have not been met;
  • Impose additional conditions depending on the project risk.