ISO 10845-6:2011

INTERNATIONAL ISO
STANDARD 10845-6
First edition
2011-01-15
Construction procurement —
Part 6:
Participation of targeted partners in joint
ventures in contracts
Marchés de construction —
Partie 6: Participation des partenaires cibles en co-entreprise dans les
contrats
Reference number
©
ISO 2011
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ii © ISO 2011 – All rights reserved

Contents Page
Foreword .iv
Introduction.v
1 Scope.1
2 Terms and definitions .1
3 Requirements.4
3.1 Contract participation goal.4
3.2 Achieving the contract participation goal.4
3.2.1 General .4
3.2.2 Verification of the status of targeted partners .4
3.2.3 Joint ventures .4
3.3 Contract participation goal credits.5
4 Compliance with requirements .5
4.1 General .5
4.2 Substitutions.6
4.3 Bona fides of targeted partners .6
5 Records .6
5.1 Submission of documentation.6
5.2 Monthly submission of supporting documentation .7
5.3 Certification of credits .7
6 Sanctions .7
Annex A (informative) Commentary.8
Annex B (informative) Preparation of targeting data associated with this part of ISO 10845 for
inclusion in the scope of work.17
Annex C (normative) Contract participation goal implementation plan (targeting strategy A).20
Annex D (normative) Joint venture disclosure form.22
Annex E (informative) Examples of how contractors can fulfil their contract participation goal
obligations .30
Annex F (informative) Tendered contract participation goal (targeting strategy A).31
Annex G (informative) Sample tender evaluation schedule where use is made of this part of
ISO 10845 .33
Annex H (informative) Contract schedule for targeted enterprises.35
Annex I (informative) Third-party management support.38
Bibliography.42

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.
International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.
The main task of technical committees is to prepare International Standards. Draft International Standards
adopted by the technical committees are circulated to the member bodies for voting. Publication as an
International Standard requires approval by at least 75 % of the member bodies casting a vote.
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.
ISO 10845-6 was prepared by Technical Committee ISO/TC 59, Buildings and civil engineering works.
ISO 10845 consists of the following parts, under the general title Construction procurement:
⎯ Part 1: Processes, methods and procedures
⎯ Part 2: Formatting and compilation of procurement documentation
⎯ Part 3: Standard conditions of tender
⎯ Part 4: Standard conditions for the calling for expressions of interest
⎯ Part 5: Participation of targeted enterprises in contracts
⎯ Part 6: Participation of targeted partners in joint ventures in contracts
⎯ Part 7: Participation of local enterprises and labour in contracts
⎯ Part 8: Participation of targeted labour in contracts
iv © ISO 2011 – All rights reserved

Introduction
Procurement is the process which creates, manages and fulfils contracts. Procurement can, as such, be
described as a succession of logically related actions occurring or performed in a definite manner and which
culminate in the completion of a major deliverable or the attainment of a milestone. Processes, in turn, are
underpinned by methods (i.e. a documented, systematically ordered collection of rules or approaches) and
procedures (i.e. the formal steps to be taken in the performance of a specific task), which are informed and
shaped by the policy of an organization. Methods and procedures can likewise be documented and linked to
processes.
It is becoming increasingly important to consider procurement-related deliverables other than those relating to
the primary purpose of the procurement itself, particularly those relating to poverty reduction, job creation,
local economic development and local industry development. Key performance indicators relating to the
engagement of enterprises, joint venture partners, local resources and local labour in contracts are needed to
set targets in contracts or to measure procurement outcomes. Processes, procedures and methods are
required to quantify, measure and verify a contractor's performance in relation to such indicators in an
auditable manner.
INTERNATIONAL STANDARD ISO 10845-6:2011(E)

Construction procurement —
Part 6:
Participation of targeted partners in joint ventures in contracts
1 Scope
This part of ISO 10845 establishes a key performance indicator, in the form of a contract participation goal,
relating to the engagement of targeted partners in a joint venture on a contract for the provision of goods,
services or engineering and construction works. A contract participation goal may be used to measure the
outcomes of a contract in relation to the engagement of targeted partners in a joint venture or to establish a
target level of performance for the contractor to achieve or exceed in the performance of a contract.
This part of ISO 10845 sets out the methods by which the key performance indicator can be measured,
quantified and verified in the performance of the contract in respect of two different targeting strategies:
targeting strategy A and targeting strategy B (defined below).
NOTE Annex A contains commentary on the clauses in this part of ISO 10845. Annex B provides guidance on how to
develop the targeting data for a procurement document using this part of ISO 10845.
2 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
2.1
allowance
amount provided for in the contract by the employer relating to one or more of the following:
a) the performance by the contractor of work or services that are foreseen but cannot be accurately specified
at the time the contract is entered into;
b) work or services to be performed, or goods provided, by a subcontractor who is either nominated by the
employer or selected by the employer in consultation with the contractor after the award of the contract;
c) provision for price adjustment for inflation; or
d) other budgetary provisions intended to cover employer risks
2.2
commercially useful function
performance of real and actual work, or the provision of services, in the discharge of any contractual obligation
which includes, but is not limited to, the performance of a distinct element of work which the enterprise has the
skills and expertise to undertake and the responsibility for management and supervision
2.3
contract amount
financial value of the contract
a) at the time of the award of the contract, exclusive of all allowances and any value added tax or sales tax
which the law requires the employer to pay to the contractor (targeting strategy A); or
b) upon completion of all contractual obligations, exclusive of any value added tax or sales tax which the law
requires the employer to pay to the contractor (targeting strategy B)
2.4
contract participation goal
CPG
amount equal to the sum of the participation parameters in respect of each targeted partner multiplied by the
contract amount of the contract, expressed as a percentage of the contract amount, associated with the
targeting strategy that is identified in the targeting data
2.5
contractor
person or organization that contracts to provide the goods, services or engineering and construction works
covered by the contract
[ISO 10845-1:2010, definition 3.12]
2.6
control
possession and exercise of legal authority and power to manage the assets, goodwill and daily operations of
an enterprise, and the active and continuous exercise of appropriate managerial and financial authority and
power in determining the policies and directing the operations of the said enterprise
2.7
employer
person or organization intending to or entering into the contract with the contractor for the provision of goods,
services, or engineering and construction works
[ISO 10845-1:2010, definition 3.17]
2.8
employer's representative
person authorized to represent the employer and named as such in the contract data or targeting data
2.9
joint venture
association or consortium of enterprises in which expertise, property, capital, efforts, resources, skills and
knowledge are combined in order to perform the contract or a portion thereof
2.10
main contractor
contractor who subcontracts part of his contract
[ISO 6707-2:1993, definition 3.8.13]
2.11
ownership
legal right of possession, including the right of disposition, and sharing in all the risks and profits
commensurate with the degree of ownership interest or shareholding, as demonstrated by an examination of
the substance, rather than the form, of ownership arrangements
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