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POPP>Procurement>Award and Management of Contract>General Considerations of Contracting
General Considerations of Contracting

1.0 Relevant Regulations and Rules
UNDP Financial Regulations and Rules (2012)
Financial Rule 118.08 a - c

Rule 121.04(a), 121.04(a)(i), 121.04(a)(ii), 121.06
2.0 Policies
Main Policy
General Considerations of Contracting
 Related Policies
Procurement Ethics, Fraud and Corrupt Practices
Language English | Español | Français
Page Properties
Key Words
None
Focal Point
Adenike Akoh
Effective Date
25/09/2018
Planned Review Date
25/09/2021
Summary of Changes/Comments
June 23, 2020 - The General Considerations of Contracting policy is now available in Spanish. To access the document, click on the Spanish language tab.

March 27, 2020 - The International Commercial Terms (INCOTERMS) 2020 has been linked in clauses 11.1 and 11.4 of the GTCs for Contracts (Goods and-or Services) template. This template is linked in clause 27 of the General Considerations of Contracting Policy.

Differences between Incoterms 2010 and 2020:
- The Incoterms FCA (Free Carrier) now provides the additional option to make an on-board notation on the Bill of Lading prior loading of the goods on a vessel.
- The costs now appear centralized in A9/B9 of each Incoterms rule.
- CIP now requires at least an insurance with the minimum cover of the Institute Cargo Clause (A) (All risk, subject to itemized exclusions).
- CIF requires at least an insurance with the minimum cover of the Institute Cargo Clause (C) (Number of listed risks, subject to itemized exclusions).
- The Incoterms rules Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account that the goods may be carried without any third-party carrier being engaged, namely by using its own means of transportation.
- The rule Delivered at Terminal (DAT) has been changed to Delivered at Place Unloaded (DPU) to clarify that the place of destination could be any place and not only a “terminal”.
- The Incoterms 2020 now explicitly shifts the responsibility of security-related requirements and ancillary costs to the seller.

September 26, 2018 - Section 8 of the General Considerations of Contracting main policy was updated to indicate that Business Units are to maintain an audit trail for all contracts, including utilizing the Contract Management Module. Additionally, in section 18, the minimum threshold value for goods procured by UNDP requiring issuance of a purchase order, was increased from USD 2,500 to USD 5,000.

May 1, 2018 - The Spanish contract templates for goods and services are available on page five of the General Considerations of Contracting policy.

1. Contract Face Sheet (Goods and/or Services) for goods/services for/to UNDP;
2. Contract Face Sheet (Goods and/or Services) for goods/services for/to UN Entities (when UNDP is procuring services/good and signing the contract on behalf of another UN Entity);
3. General Terms and Conditions (for Goods and/or Services); and
4. General Terms and Conditions for de minimis contracts (Services only).

October, 2017- A new set of consolidated and simplified corporate contract templates for the procurement of goods and services have been provided for the following four categories:

1. Contract Face Sheet (Goods and/or Services) for goods/services for/to UNDP;
2. Contract Face Sheet (Goods and/or Services) for goods/services for/to UN Entities (when UNDP is procuring services/good and signing the contract on behalf of another UN Entity);
3. General Terms and Conditions (for Goods and/or Services); and
4. General Terms and Conditions for de minimis contracts (Services only).

The new templates replaced the Contract for Professional Services, Institutional Contracts, and Long-Term Agreements (LTAs) but they do not replace the Individual Contract, Purchase Orders, or Contracts for Civil Works. LTAs are now incorporated into the Contract Face Sheet.

Reviewed and edited (no substantive change) in Q4 2015

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