DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

PROCURING ENTITY: Bohol 1st District Engineering Office

BIDDING DOCUMENTS

FOR

PROCUREMENT ID/CONTRACT ID: 18HA0010

CONTRACT NAME: Off-Carriageway Improvement –

Panglao Island Circumferential Road – (via Biking)
K007+137-K008+000, (via Tangnan) K009+000-
K0010+000.

Project ID: P00200669VS

CONTRACT LOCATION: Dauis, Bohol

Date of Opening of Bids: January 30, 2018

Start Date for Issuance

Of Bidding Documents: January 11, 2018 – January 30, 2018
 TABLE OF CONTENTS

ANNEX II-1.1A : Section I. Invitation to Bid (IB) …………………………. 2

ANNEX II-1.1B : Section II. Eligibility Requirements (ER) ……………….. 6
ANNEX II-1.1C : Section III. Eligibility Data Sheet (EDS) ………………... 14
ANNEX II-1.1D : Section IV. Instructions to Bidders (ITB) ……………….. 16
ANNEX II-1.1E : Section V. Bid Data Sheet (BDS) ……………………….. 54
ANNEX II-1.1F : Section VI. General Conditions of Contract (GCC) …...... 60
ANNEX II-1.1G : Section VII. Special Conditions of Contract (SCC) …….. 99
ANNEX II-1.1H : Section VIII. Specifications …………………………….. 103

ANNEX II-1.1I : Section IX. Drawings …………………………………… 105

ANNEX II-1.1J : Section X. Bill of Quantities (BOQ)……………………. 106

ANNEX II-1.1K : Section XI. Bidding Forms (BFs) ………………………. 117

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 ANNEX II–1.1A
Section I. Invitation to Bid
Notes on the Invitation to Bid
The Invitation to Bid (IB)(Form DPWH-INFR-04)provides information that enables interested
Bidders to decide whether to participate in the procurement of the particular contract at hand.
The Procuring Entity shall undertake the following:

a. Advertise the IB at least once in one (1) newspaper of general nationwide circulation
which has been regularly published for at least two (2) years before the date of the
advertisement, provided that this requirement for advertisement shall not apply to
contracts with an ABC of PhP 5 million or below each;

b. Post the IB the following websites:

(1) Website of the DPWH www.dpwh.gov.ph, continuously starting on the date of

advertisement of the IB until the deadline for submission and receipt of bids

(2) Website of the Philippine Government Electronic Procurement System (PhilGEPS)

www.philgeps.gov.ph, continuously for seven (7) calendar days starting on the
date of advertisement of the IB.

(3) Website prescribed by the concerned foreign government/foreign or international

financing institution or IFI (e.g., United Nations Development Business (UNDB),
dgMarket), continuously for seven (7) calendar days starting on the date of
advertisement of the IB.

Together with the IB, post the other parts of the BDs for the contract on the three
websites mentioned over the same periods.

c. Post the IB at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity, as certified by the head of the Bids and Awards Committee (BAC)
Secretariat of the Procuring Entity for seven (7) calendar days starting on the date of
advertisement of the IB.

The IB shall include the following:

a. Procurement/Contract ID, name and location, brief description of the type, size, major
items and other important or relevant features of the works.

b. Approved Budget for the Contract (ABC).

c. Source of funding.

d. Contract duration.

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 e. Statement that the bidding is conducted in accordance with RA 9184 and its Implementing
Rules and Regulations (IRR)

f. General statements of the criteria to be used for the eligibility check, examination
and evaluation of bids, post-qualification, and award.

g. Date, time, deadline, and place for the issuance/downloading of Bidding Documents, Pre-
Bid Conference, receipt of bids, and opening of bids.

h. Payment of Fee for the BDs.

i. Reservation for the Procuring Entity to accept/reject any/all bids or annul the bidding
process without any liability to the bidders.

j. Name, address, telephone number, fax number, email and website addresses of the
concerned Procuring Entity and its designated contact person.

k. Statement as to whether or not Electronic Bidding, under GPPB Resolution No. 13-2013,
will be adopted in this procurement.

l. Other necessary information as determined by the Procuring Entity.

The IB should be incorporated into the contract-specific Bidding Documents (BDs). The
information contained in the IB must be consistent with all other parts of the BDs, including the
Instructions to Bidders (ITB) and the Bid Data Sheet (BDS).

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17HA0078_0002.pdf

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5
 ANNEX II-1.1B
Section II. Eligibility Requirements

Notes on the Eligibility Requirements (ER)

This Section provides the information necessary for prospective bidders to prepare responsive
applications for eligibility to bid for the Contract in accordance with the requirements of the
Procuring Entity.

The provisions contained in this Section shall be used unchanged. Additional information or
requirements specific to each contract to be procured shall be specified in the Eligibility Data
Sheet (EDS).

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 STANDARD FORMAT ELIGIBILITY REQUIREMENTS
1. Unless otherwise indicated in the Instructions to Bidders (ITB), the prospective
bidder must meet the following Eligibility Requirements (ER) for purposes of
determining by the DPWH the eligibility of the bidder for the contract to be procured:

 Submission of Class “A” and Class “B” Documents

Class “A” Documents (IRR Section 23.1a):

(1) Legal Documents

(a) Registration certificate from the Securities and Exchange Commission

(SEC) in the case of a Partnership or Corporation, or from the Department of
Trade and Industry (DTI) in the case of a Single Proprietorship, or from the
Cooperatives Development Authority in the case of a cooperative.

(b) Mayor’s/Business Permit issued by the city or municipality where the

principal place of business of the prospective bidder is located.

(c) Tax Clearance per Executive Order (EO) No. 298, series of 2005, as finally
reviewed and approved by the Bureau of Internal Revenue (BIR).

(2) Technical Documents

(a) Valid PCAB license and registration for the type and cost of contract to
be procured. In the case of a joint venture, the license and registration must
be those of the joint venture, not of any of its members.

(b) Record of the prospective bidder’s completed contracts, both government

and private, including the following information for each contract:

i. Contract ID, name and location.

ii. Contract start and actual completion dates.
iii. Owner’s name and address.
iv. Nature of work and size/dimensions.

v. Contractor’s role (whether sole contractor, sub-contractor, or partner in a joint

venture), specific components or aspects of the work done by it, and its
participation percentage.
vi. Total as-built cost at completion.

Bidder’s single largest completed contract similar to the contract to be procured.

(During the Eligibility Check of bids submitted for the contract to be procured,
the CWR program will automatically identify the Bidder’s SLCC similar to the
contract to be bid from the Bidder’s record of completed contracts in the CWR.)

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 (c) Record of the prospective bidder’s on-going contracts, including awarded but not yet
started, both in government and the private sector, indicating the following
information for each contract.

i. Contract ID, name and location.

ii. Contract start and completion date.
iii. Owner’s name and address.
iv. Nature of work and size/dimension.
v. Contractor’s role, specific components or aspects of the work done by it,and
participation percentage.
vi. Percentage work accomplished.
vii. Percentage time elapsed.

(3) Financial Documents

(a) The prospective bidder’s Audited Financial Statement (AFS), stamped “received’’ by
the BIR or its duly accredited and authorized institution, for the immediately
preceding calendar year, showing, among other things, the prospective bidder’s total
and current assets and liabilities.

(b) The prospective bidder’s computation for its Net Financial Contracting Capacity
(NFCC).

To facilitate determination of eligibility, the BAC of a Procuring Entity shall use the
contents of the PhilGEPS electronic registry of contractors (IRR Section 23.3).All
bidders shall maintain a current and updated file of their Class “A” Documents, and
shall submit the PhilGEPS Certificate of Registration and Membership to the
Procuring Entity, in lieu of the said Documents. In case such PhilGEPs Certificate
covers only part of the Class “A” Documents, the contractor shall be required to submit
to the DPWH Procuring Entity all other documents under the above ER which are not
covered by the said Certificate. For foreign bidders, the foregoing documents may be
substituted by the appropriate equivalent documents in English, if any, issued by the
country of the bidder concerned. These documents shall be accompanied by a Sworn
Statement in a form prescribed by the GPPB stating that the documents submitted are
complete and authentic copies of the original, and all statements and information
provided therein are true and correct (IRR Section 8.5.2).

Class “B” Document (IRR Section 23.1b)

Valid joint venture agreement (JVA), in case the joint venture is already in existence. In the
absence of a JVA, duly notarized statements from all the potential joint venture (JV)
partners shall be included in the bid, to the effect that they will enter into and abide by the
provisions of the JVA in the instance that the bid is successful. Failure to enter into a JV
shall be a ground for the forfeiture of the Bid Security. Each partner of the JV shall
submit the PhilGEPS Certificate of Registration in accordance with Section 8.5.2 of the
IRR of RA 9184. The submission of technical and financial eligibility documents by any of
the JV partners constitutes compliance. The partner responsible to submit the NFCC shall

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 likewise submit the statement of all of its ongoing contracts and Audited Financial
Statements.

 Legal Requirements for Eligibility

The prospective bidder must be either of the following:

(1) A Filipino citizen/sole proprietorship.

(2) A partnership duly organized under the laws of the Philippines and of which at least
seventy-five percent (75%) of the interest belongs to citizens of the Philippines.

(3) A corporation duly organized under the laws of the Philippines and of which at least
seventy five (75%) of the outstanding capital stock belongs to citizens of the
Philippines.

(4) A cooperative duly registered with Cooperative Development Authority.

(5) Persons/entities forming themselves into a joint venture (JV), i.e., a group of two (2) or
more persons/entities that intend to be jointly and severally responsible or liable for a
particular contract, provided that, in accordance with the President’s Letter of
Instructions No. 630, Filipino ownership or interest in the JV concerned shall be at least
seventy-five (75%); provided, further, that JVs in which Filipino ownership or interest is
less than seventy-five percent (75%) may be eligible where the structures to be built
require the application of techniques and/or technologies which are not adequately
possessed by a person/entity meeting the seventy-five percent (75%) Filipino
ownership requirement; and provided, finally, that in the latter case, Filipino ownership
or interest shall not be less than twenty-five percent (25%). For this purpose,
Filipino ownership or interest shall be based on the contributions of each of the
members of the JV as specified in their joint venture agreement (JVA).

 Technical Requirements for Eligibility

(1) PCAB License

For this particular contract to be bid, the prospective bidder must possess a valid license
issued by the Philippine Contractors’ Accreditation Board (PCAB) in accordance with
the provisions of RA 4566, for the specific category indicated in the Eligibility Data
Sheet (EDS), out of the following PCAB categories:

Table 1. PCAB License Categories

Size Range License Single Largest Project/ Allowable Range of
Category Required Track Record Contract Cost (ARCC)
Large B AAA Above PhP150M No limit
Large A AA Above PhP100M up to Up to PhP300M
PhP150M
Medium B A Above PhP50M up to PhP100M Up to PhP200M
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Medium A B Above PhP10M up to PhP100M Up to PhP100M
Small B C&D Above P500,000 up to PhP10M Up to PhP15M
Small A Trade Up to PhP500,000 Up to PhP500,000

For this particular contract to be procured, the Approved Budget for the Contract
(ABC) is indicated in the EDS. The required PCAB license for this project, based on
Table 1 above, is also specified in the EDS.

(2) Work Experience in Similar Contracts

The prospective bidder must possess the experience of having a Single Largest
Completed Contract (SLCC) “similar” to the contract to be procured, and whose
value, adjusted to current prices using the consumer price indices of the Philippine
Statistics Authority (PSA), is at least fifty percent (50%) of the ABC to be bid. Small
A and Small B contractors without similar experience on the contract to be bid,
however, may be allowed to bid if the cost of such contract is not more than the
Allowable Range of Contract Cost (ARCC) corresponding to their PCAB license as
shown in Table 1 above (IRR Section 23.4.2.4).

As stated in Appendix 2.2 (Guidelines for Major and Similar Categories of Works), a
“Major Category of Works” is the main classification of works in the contract to be
bid, according to type of infrastructure and kind of work performed - e.g. road
construction, bridge rehabilitation, etc. On the other hand, a “Similar Category of
Works” is a kind of works whose classification is considered to be comparable to the
Major Category of Works in the contract to be bid and, therefore, shall be considered
for purposes of evaluation of the bidder’s eligibility for the contract to be bid. A
“Qualifier” is an additional specific requirement on Major or Similar Categories of
Work, to be required from the bidders at the bidding stage, to show that they have the
necessary expertise and experience to execute the contract, such as an extraordinarily
large embankment volume, or soft ground treatment, or long tunnel using tunnel
boring machine, or bridge retrofitting using special jacking technology, or very long
sheet piling, multi-level basement, etc.

For the specific project or contract to be bid under these BDs and based on the
Guidelines and Matrix of Categories in Appendix 2.2, the Major Categories of Works
and Similar Categories of Work, as well as any Qualifier, that shall be considered in
determining a bidder’s eligibility for the contract to be bid are indicated in the EDS.

For a contract involving a single category of works (i.e., type of infrastructure and
kind of work) - e.g., road construction, or bridge retrofitting, or flood control
rehabilitation - the following criteria shall be adopted.
i. The Major Category of Works is the single category itself.

ii. To be eligible to bid for the contract, a contractor must have done a Single Largest
Completed Contract (SLCC) for a Major/Similar Category of Works whose total
cost is at least 50% of the Approved Budget of the Contract (ABC) to be bid.

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 In the case of contracts which include special equipment to be supplied and installed
by the supplier/manufacturer, the cost of such equipment shall be excluded from the
ABC to be used in computing the required work experience as stated in the preceding
paragraph.

As an exception to the foregoing, however, as mentioned above, Small A and B

contractors may be allowed to bid if the cost of the contract is not more than the
ARCC corresponding to their PCAB license as shown in Table 1 above, even if they
have no experience similar to the contract to be bid.

(3) Owner’s Certificate of Final Acceptance or Constructor’s Performance

Evaluation System (CPES)
Rating

To support its SLCC, the bidder must submit the corresponding Owner’s Certificate
of Final Acceptance issued by the project owner other than the contractor, or at least
asatisfactory CPES Rating. In case of contracts with the private sector, an
equivalent document shall be submitted.

 Financial Requirements for Eligibility

The prospective bidder must have a Net Financial Contracting Capacity (NFCC) at least
equal to the ABC to be procured.

The NFCC shall be calculated as

follows:

NFCC = [(Current assets minus current liabilities) (15)] minus the value of
all outstanding or uncompleted portions of the projects under ongoing
contracts, including awarded contracts yet to be started, which portions
coincide with the contact to be bid.

The values of the bidder’s current assets and current liabilities shall be based on the
latest Audited Financial Statements (AFS) submitted to the BIR.

For purposes of computing the foreign bidders' NFCC, the value of the current assets
and current liabilities shall be based on their Audited Financial Statements prepared in
accordance with international financial reporting standards.

The Procuring Entity shall apply the abovementioned Eligibility Requirements (ER) not
only to the main contractor/bidder but also to any sub-contractors for the portions of the
main contract works that are proposed to be sub-contracted to them, except for pakyaw
contracts as defined in Appendix 11 of RA 9184-IRR.

The main contractor/bidder, however, must meet all of the abovementioned Eligibilit y
Requirements by itself, with or without any sub-contractor. Hence, if any nominated sub-
contractor is declared ineligible, the main contractor, on its own, must still meet the
prescribed Eligibility Requirements.

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 Notwithstanding the eligibility of a bidder, the Procuring Entity concerned reserves the
right to review the qualifications of the bidder at any stage of the procurement process if the
Procuring Entity has reasonable grounds to believe that a misrepresentation has been
made by that bidder, or that there has been a change in the bidder’s capability to undertake
the project from the time it submitted its eligibility requirements. Should such review
uncover any misrepresentation made in the eligibility requirements, statements or
documents, or any changes in the situation of the bidder which will affect the
capability of the bidder to undertake the project so that it fails the eligibility criteria, the
Procuring Entity shall consider the said bidder as ineligible and shall disqualify it from
obtaining an award or contract, in accordance with Rules XXI, XXII, and XXIII of the IRR
of RA 9184 (IRR Section 23.6).

2. If, as specified in the EDS, Electronic Bidding is adopted for this procurement pursuant
to GPPB Resolution No. 23-2013, dated 30 July 2013, the following procedure shall
be observed with regard to the registry with the PhilGEPS:

a. To facilitate determination of eligibility and subject to the Government

Official Merchants Registry (OMR) guidelines, a Procuring Entity may use the registry
system of the PhilGEPS that allows submission and/or recording/entry of eligibilit y
requirements simultaneously with registration.

b. Only a Certified Member with the appropriate classification can avail of the PhilGEPS
advance eligibility submission by uploading their electronic documents to the PhilGEPS
document library, which can be accessed for current or future procurements.

c. Submission of eligibility requirements to the PhilGEPS document library is not

tantamount to a finding of eligibility.

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 ANNEX II-1.1C
Section III. Eligibility Data Sheet (EDS)

Notes on the EDS

This Section is intended to assist the Procuring Entity in providing the specific information and
requirements in relation to corresponding clauses in the Eligibility Requirements(ER) for each
specific procurement.

The Procuring Entity should indicate in this Section the information pertaining to the contract
at hand that specifies and complements provisions of the ER.

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 Eligibility Data Sheet
Eligibility
Requirements
1c(1) The ABC for this contract is: Php 27,893,690.00

1c(1) The required PCAB license for this contract is as follows:

a. Size Range: Medium A
b. License Category: B

1c(2) (1) The following are the “Major Categories of Works” involved in the
contract to be bid:

RRP - Road: Rehabilitation - PCCP

(2) The following are the “Similar Categories of Works” that shall be
considered in the

RCP – Roads: Construction – PCCP

RCTP – Roads: Construction – Tunnel - PCCP

(3) The following “Qualifiers” shall be applied to this contract:

a. N/A

2. Electronic Bidding will not be applied in this procurement.

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 ANNEX II-1.1D
Section IV. Instructions to
Bidders

Notes on the Instructions to Bidders (ITB)

This Section of the Bidding Documents (BDs) provides the information necessary for
Bidders to prepare responsive Bids in accordance with the requirements of the Procuring
Entity. It also provides information on the Bid submission, opening, and evaluation, post-
qualification, and award of contract.

The provisions of this Section are to be used unchanged. Annex II-1.1E: Bid Data
Sheet (BDS) consists of provisions that supplement, amend, or specify in detail information
or requirements included in this Section, and that are specific to each particular contract to be
procured.

Matters governing the performance of the Contractor, payments under the Contract, or
matters affecting the risks, rights, and obligations of the parties under the Contract are not
normally included in this Section, but rather under Annex II-1.1F: General Conditions of
Contract (GCC), and/or Annex II-1.1G: Special Conditions of Contract (SCC)

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 STANDARD FORMAT
INSTRUCTIONS TO BIDDERS (ITB)
TABLE OF CONTENTS

A. GENERAL ………………………………………………………………. 19
1. Scope of Bid ……………………………………………………………… 19
2. Budget and Source of Funds ……………………………………………… a19
3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices ……. 19
4. Conflict of Interest ……………………………………………………….. 21
5. Eligible Bidders ………………………………………………………….. 22
6. Bidder’s Responsibilities ………………………………………………… 22
7. Origin of Goods and Services ………………………………………......... 24
8. Sub-contracts …………………………………………………………….. 24
9. Pre-Bid Conference ……………………………………………………… 25
B. CONTENTS OF BIDDING DOCUMENTS ………………………….. 26
10. Content of Bidding Documents ………………………………………….. 26
11. Clarification/Amendment of Bidding Documents through Bid Bulletins 27
C. PREPARATION OF BIDS …………………………………………….. 27
12. Cost of Bidding ………………………………………………………….. 27
13. Language of Bid …………………………………………………………. 28
14. Documents Comprising the Bid …………………………………………. 28
15. Bid Prices …………………………………………………………..…….. 31
16. Currencies of Bid and Payment ………………………………….………. 31
17. Bid Validity ………………………………………………………………. 32
18. Bid Security ………………………………………………………………. 32
19. Alternative Bids by Bidders ……………………………………………… 34
20. Format and Signing of Bid ……………………………………….………. 35
21. Sealing and Marking of Bids …………………………………………….. 36
D. SUBMISSION AND OPENING OF BIDS ……………………………. 36
22. Place and Deadline for Receipt of Bids …………………………………. 36
23. Late Bids …………………………………………………………………. 36
24. Modification and Withdrawal of Bids …………………………………… 37

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25. Receipt of Bids under Electronic Bidding ……………………………….. 37
26. Eligibility Check …………………………………………………………. 39
27. Opening and Preliminary Examination of Bids ………………………….. 40
28. Opening and Preliminary Examination under Electronic Bidding …………42
E. EVALUATION AND COMPARISON OF BIDS …………………….. 43
29. Process to be Confidential ……………………………………………….. 43
30. Clarification of Bid ………………………………………………………. 43
31. Detailed Evaluation and Comparison of Bids ……………………………. 43
32. Procedure for Detailed Evaluation of Bids under Electronic Bidding……. 46
33. Post-Qualification of the Lowest Calculated Bid …………….................... 46
34. Post-Qualification under Electronic Bidding …………………………….. 47
35. Right of the Procuring Entity to Reject Bids …………………………….. 48
F. AWARD OF CONTRACT ……………………………………………... 49
36. Award Criterion ………………………………………………………….. 49
37. Notice of Award ………………………………………………………….. 50
38. Performance Security …………………………………………………….. 51
39. Documents Comprising the Contract …………………………………….. 52
40. Signing and Approval of the Contract …………………………………… 53
41. Notice to Proceed ……………………………………………………........ 53

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 INSTRUCTIONS TO BIDDERS (ITB)
A. General

1. Scope of Bid
1.1 The Procuring Entity, as defined in the BDS, invites Bids for the construction
of the Works under the proposed Contract, as described in the BDS. The name
and ID of the Contract are stated in the BDS.

1.2 The winning Bidder will be expected to complete the Works by the intended
completion date specified in the SCC Clause 1.17.

2. Budget and Source of Funds

The Procuring Entity has an Approved Budget for the Contract (ABC) or has applied
for or received funds from the Funding Source named in the BDS, and in the
amount indicated in the BDS. It intends to apply part of the funds received for the
Project, as defined in the BDS, to cover eligible payments under the Contract for the
Works.

3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices

3.1 The Procuring Entity requires that the Bidders and Contractors, as well
as officials and personnel of the Procuring Entity, observe the highest standard
of ethics during the procurement and execution of such contracts. In pursuance
of this policy, the DPWH:

a. defines, for purposes of this provision, the terms set forth below
as follows:

(1) "Corrupt practice" means behavior on the part of officials in the

public or private sectors by which they improperly and
unlawfully enrich themselves and others, or induce others to
do so, by misusing the positions in which they are placed, and
includes the offering, giving, receiving, or soliciting of anything
of value to influence the action of any such official in the
procurement process or in contract execution; entering, on
behalf of the Government, into any contract or transaction
manifestly and grossly disadvantageous to the same, whether or
not the public officer profited or will profit thereby, and
similar acts as provided in Republic Act 3019.

(2) "Fraudulent practice" means a misrepresentation of facts in

order to influence a procurement process or the execution of a
contract to the detriment of the Procuring Entity, and includes
collusive practices among Bidders – before or after Bid
submission - designed to establish Bid prices at artificial, non-
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 competitive levels and to deprive the Procuring Entity of the
benefits of free and open competition;

(3) “Collusive practice” means a scheme or arrangement between two

or more Bidders, with or without the knowledge of the Procuring
Entity, designed to establish Bid prices at artificial, non-
competitive levels.

(4) “Coercive practice” means harming or threatening to harm,

directly or indirectly, persons, or their property to influence their
participation in a procurement process, or affect the execution of a
contract.

(5) “Obstructive practice” is:

(a) deliberately destroying, falsifying, altering or concealing of

evidence material to an administrative proceedings or
investigation or making false statements to investigators in
order to materially impede an administrative proceedings or
investigation of the Procuring Entity or any foreign
government/foreign or international financing institution
into allegations of a corrupt, fraudulent, coercive or
collusive practice; and/or threatening, harassing or
intimidating any party to prevent it from disclosing its
knowledge of matters relevant to the administrative
proceedings or investigation or from pursuing such
proceedings or investigation; or

(b) acts intended to materially impede the exercise of the

inspection and audit rights of the Procuring Entity or any
foreign government/foreign or international financing
institution herein.

b. will reject a proposal for award if it determines that the Bidder

recommended for award has engaged in corrupt, fraudulent, collusive or
coercive practices in competing for the Contract; and

c. will declare a firm ineligible, either indefinitely or for a stated period of

time, to be awarded a Contract if it at any time determines that the firm
has engaged in corrupt, fraudulent, collusive or coercive practices in
competing or, or in executing, a Contract.

3.2 Furthermore, the Procuring Entity will also seek to impose the maximum
penalties for civil and criminal liability available under the applicable law on
individuals and organizations deemed to be involved in corrupt, fraudulent,
collusive or coercive practices.

3.3 The Funding Source and the Procuring Entity reserve the right to inspect and
audit records and accounts of a contractor in the bidding for and performance of a

19
 particular contract, through DPWH official or independent auditors as provided in
GCC Clause 35.

4. Conflict of Interest
4.1 All Bidders found to have a conflict of interest shall be disqualified to
participate in the procurement at hand, without prejudice to the imposition of
appropriate administrative, civil, and criminal sanctions. A Bidder may be
considered to have a conflict of interest with another Bidder in any of the
events described in items a through d of this ITB Clause 4.1 and a general
conflict of interest in any of the circumstances set out in items e through h of
ITB Clause 4.1:

a. A Bidder has controlling shareholders in common with another

Bidder.

b. A Bidder receives or has received any direct or indirect subsidy from

any other Bidder.

c. A Bidder has the same legal representative as that of another Bidder

for purposes of this Bid.

d. A Bidder has a relationship, directly or through third parties, that puts it

in a position to have access to information about or influence on the
Bid of another Bidder or influence the decisions of the Procuring
Entity regarding this bidding process. This will include a firm or an
organization who lends, or temporarily seconds, its personnel to firms
or organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the project
if the personnel would be involved in any capacity on the same project.

e. A Bidder submitted more than one Bid in this bidding process.

However, this does not limit the participation of sub-contractors in
more than one Bid.

f. A Bidder participated as a consultant in the preparation of the design or

technical specifications of the works, goods and related services that
are the subject of the Bid.

g. A Bidder lent, or temporary seconded, its personnel to firms

or organizations which are engaged in consulting services for the
preparation related to the procurement for or implementation of the
project, if the personnel would be involved in any capacity on the same
project.

4.2 In accordance with Section 47 of the IRR of RA 9184, the Bidder must include
in its Bid a sworn affidavit (part of Form DPWH-INFR-15, as provided in
Clause
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 10.1 of this ITB) that it is not related to the Head of the Procuring Entity
(HoPE), members of the BAC, the Technical Working Group (TWG), and
the BAC Secretariat, the head of the IU, and the project consultants, by
consanguinity or affinity up to the third civil degree. Failure to comply with
the aforementioned provision shall be a ground for the automatic
disqualification of the bid in consonance with Section 30 of this IRR.
For this reason, relation to the aforementioned persons within the third
civil degree of consanguinity or affinit y shall automatically disqualify the
bidder from participating in the procurement of contracts of the Procuring
Entity, notwithstanding the act of such persons inhibiting themselves from the
procurement process. On the part of the bidder, this provision shall apply to
the following persons:

a. If the Bidder is an individual or a sole proprietorship, to the

Bidder himself.

b. If the Bidder is a partnership, to all its officers and members.

c. If the Bidder is a corporation, to all its officers, directors, and

controlling stockholders.

d. If the bidder is a cooperative, to all its officers, directors, and

controlling shareholders or members.

e. If the Bidder is a joint venture (JV), to each member of the JV for

the applicable items a, b, and c of this Clause.

5. Eligible Bidders
Unless otherwise indicated in the BDS, bidders must meet the Eligibility
Requirements in ANNEXII-1.1B of the SBDs. In addition, the BDS shall indicate any
“qualifier” to the “similar work category” that must be met by the eligible bidder.

6. Bidder’s Responsibilities
6.1 The Bidder is responsible for the following:

a. Having taken steps to carefully examine all of the Bidding Documents.

b. Having acknowledged all conditions, local or otherwise, affecting

the implementation of the contract.

c. Having made an estimate of the facilit ies available and needed for
the contract to be bid, if any.

d. Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin/s as provided under ITB Clause
11.3.

21
 e. Ensuring that it is not “blacklisted” or barred from bidding by
the Government of the Philippines (GOP) or any of its agencies,
offices, corporations, or LGUs, including foreign government/foreign or
international financing institution whose blacklisting rules have been
recognized by the Government Procurement Policy Board (GPPB).

f. Ensuring that each of the documents submitted in satisfaction of

the bidding requirements is an authentic copy of the original,
complete, and all statements and information provided therein are
true and correct

g. Authorizing the HOPE or its duly authorized representative/s to verify all

the documents submitted.

h. Ensuring that the signatory is the duly authorized representative of the

Bidder, and granted full power and authority to do, execute and perform
any and all acts necessary and/or to represent the Bidder in the bidding,
with the duly notarized Secretary’s Certificate attesting to such fact, if the
Bidder is a corporation, partnership, cooperative, or joint venture.

i. Complying with the disclosure provision under Section 47 of the Act in

relation to other provisions of Republic Act 3019.

j. Complying with existing labor laws and standards, if applicable.

k. Ensuring that it did not give or pay, directly or indirectly, any commission,
amount, fee, or any form of consideration, pecuniary or otherwise, to any
person or official, personnel or representative of the government in
relation to any procurement project or activity.

Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.

6.2 The Bidder or its duly authorized representative shall submit a sworn statement,
covering items e to k of ITB Clause 6.1 above, in the form prescribed in DPWH-
INFR-15in ANNEX II-1.1K hereof.

6.3 The Bidder, by the act of submitting its bid, shall be deemed to have inspected the
site, determined the general characteristics of the contract works and the
conditions for this Project and examine all instructions, forms, terms, and project
requirements in the Bidding Documents.

6.4 It shall be the sole responsibility of the prospective bidder to determine and to
satisfy itself by such means as it considers necessary or desirable as to all matters
pertaining to this Project, including: (a) the location and the nature of the contract,
project, or work; (b) climatic conditions; (c) transportation facilities; (c) nature
and condition of the terrain, geological conditions at the site communication
facilities, requirements, location and availability of construction aggregates and
other materials, labor, water, electric power and access roads; and (d) other
22
 factors that may affect the cost, duration and execution or implementation of the
contract, project, or work.

6.5 The Procuring Entity shall not assume any responsibility regarding erroneous
interpretations or conclusions by the prospective or eligible bidder out of the data
furnished by the procuring entity.

6.6 Before submitting their bids, the Bidders are deemed to have become familiar
with all existing laws, decrees, ordinances, acts and regulations of the Philippines
which may affect the contract in any way.

6.7 The Bidder shall bear all costs associated with the preparation and submission
of his bid, and the Procuring Entity will in no case be responsible or liable for
those costs, regardless of the conduct or outcome of the bidding process.

6.8 Bidders should note that the Procuring Entity will only accept bids only
from those that have paid the nonrefundable fee for the Bidding
Documents at the office indicated in the Invitation to Bid.

7. Origin of Goods and Services

There is no restriction on the origin of Goods, or Contracting of Works or Services
other than those prohibited by a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations.

8. Sub-Contracts
8.1 Unless otherwise specified in the BDS, sub-contracting of the Works shall be
subject to the provisions of DPWH Department Order (DO) No. 38, series
of 2015, as stated in Clauses 8.2 to 8.7.

8.2 All sub-contracts shall be subject to prior approval of the concerned Heads of
the DPWH Procuring Entity within the limits of their delegated authority to
approve the original contracts.

8.3 The contractor may sub-contract portions of the works to such an extent as
may be approved by the Procuring Entity and stated in the BDS, provided
that the main contractor shall directly undertake, using its own resources,
not less than fifty percent (50%) of the contract works in terms of cost.

8.4 Each sub-contractor must comply with the eligibility criteria as specified in the
Eligibility Requirements (ER) for the portion of the contract works to be
sub- contracted to that sub-contractor- e.g., applicable license from the
Philippine Constructors Accreditation Board, satisfactory completion of works
similar to the portion of the contract to be subcontracted and costing at least
fifty percent (50%) of the cost of such portion, and sufficient Net Financial
Contracting Capacityto cover the cost of the work to be sub-contracted, as well
as minimum equipment and manpower for the sub-contracted work set by the
23
 Procuring Entity. These requirements shall not apply to labor pakyaw
contracts provided in the IRR Appendix 11.

8.5 The bidder/main contractor may identify the sub-contractors to whom portions
of the contract works will be sub-contracted at any stage of the bidding process
or during contract implementation, provided that any sub-contracting requires
prior approval of the Procuring Entity. If the bidder opts to disclose the
name of the sub-contractors during the bid submission, the bidder shall include
the required eligibility documents for the sub-contractors as part of the
technical component of its bid. Sub-contractors identified during the bidding
may be changed during the implementation of the contract, subject to
compliance with the eligibility requirements and approval of the Procuring
Entity.

8.6 Sub-contracting of any portion of the contract shall not relieve the main
contractor from any liability or obligation that may arise from the
contract. The main contractor shall be responsible for the acts, defaults,
and negligence of any subcontractor, its agents or workmen.

8.7 For any assignment and sub-contracting of the contract or any part thereof
made without prior written approval by the concerned HoPE, the DPWH shall
impose on the erring contractor, after the termination of the contract, the
penalty of suspension for one (1) year for the first offense, and suspension of
two (2) years for the second offense from participating in the public bidding
process, pursuant to the provision of Appendix 3, Section 4.2 of the IRR of RA
9184, in accordance with Section 69(6) of RA 9184 and without prejudice
to the imposition of additional administrative sanctions as the internal rules of
the agency may provide and/or further criminal prosecution as provided by
applicable laws.

9. Pre-Bid Conference
9.1 If so specified in the BDS, a Pre-Bid Conference shall be held at the venue and
on the date indicated therein, to clarify and address the Bidders’ questions on
the technical and financial components of this Project. The Pre-Bid Conference
shall be held at least twelve (12) calendar days before the deadline for the
submission and receipt of Bids. However, attendance of the Bidders shall not be
mandatory. If the Procuring Entity determines that, by reason of the method,
nature, or complexity of the contract to be bid, or when international
participation will be more advantageous to the GOP, a longer period for the
preparation of bids is necessary, the Pre-Bid Conference shall be held at least
thirty (30) calendar days before the deadline for the submission and receipt
of bids, as specified in the BDS.

9.2 Bidders are encouraged to attend the Pre-Bid Conference to ensure that they
fully understand the Procuring Entity’s requirements. Non-attendance of the
Bidder will in no way prejudice its bid; however, the Bidder is expected to
know the changes and/or amendments to the Bidding Documents as recorded in
the minutes of the Pre-Bid Conference and the Supplemental/Bid Bulletin.
24
 9.3 Any statement made at the Pre-Bid Conference shall not modify the terms of
the bidding documents unless such statement is specifically identified in writing
as an amendment thereto and issued as a Supplemental/Bid Bulletin.

9.4 If, as indicated in the BDS, Electronic Bidding is adopted for this procurement
pursuant to GPPB Resolution No. 23-2013, dated 30 July 2013, the Procuring
Entity shall observe following procedure with regard to the PBC:

a. For contracts to be bid where the conduct of PBC is required under Section
22 of RA 9184-IRR (Section 5.5.3 of this Manual Volume II), the
same procedure governing the manual method will also apply.

b. A Procuring Entity with videoconferencing capabilities may conduct its

PBC conferences electronically, provided that its Registered Merchants
shall also have similar capabilities and facilities.

c. During the conduct of the PBC, Registered Merchants may send requests
for clarification through the PhilGEPS online facility, which shall be read
during the meeting and shall form part of the minutes, unless the Procuring
Entity has previously decided that only those who have purchased
the Bidding Documents shall be allowed to participate in the PBC and
raise or submit written queries or clarifications.

d. The minutes of the PBC shall be recorded as an electronic document made

electronically available to all participating Registered Merchants through
the PhilGEPS Electronic Bulletin Board not later than three (3) calendar
days after the PBC.

e. Requests for clarification(s) on any part of the BDs or for an

interpretation must be in writing and submitted to the BAC of the Procuring
Entity, either electronically through the PhilGEPS or otherwise, at least ten
(10) calendar days before the deadline set for the submission and receipt of
bids.

f. Only Bid Bulletins/Supplements approved by the Bid Notice Approver

shall be posted in the PhilGEPS at least seven (7) calendar days before the
deadline for the submission and receipt of bids. The PhilGEPS shall
automatically notify through e-mail all Registered Merchants who have
downloaded the bidding documents and paid the BDs Fee.

B. Contents of Bidding Documents

10. Content of Bidding Documents

The set of Bidding Documents (BDs) for the specific contract at hand consists
of the documents listed below and bulletins issued in accordance with ITB
Clause11Reference in the SBDs

25
 Section I. Invitation to Bid (IB) Eligibility ANNEX II-1.1A
Section II. Requirements (ER) ANNEX II-1.1B
Section III. Eligibility Data Sheet (EDS) ANNEX II-1.1C
Section IV. Instructions to Bidders (ITB) ANNEX II-1.1D
Section V. Bid Data Sheet (BDS) ANNEX II-1.1E
Section VI. General Conditions of Contract (GCC) ANNEX II-1.1F
Section VII. Special Conditions of Contract (SCC) ANNEX II-1.1G
Section VIII. Specifications ANNEX II-1.1H
Section IX. Drawings ANNEX II-1.1I
Section X. Bill of Quantities (BOQ) ANNEX II-1.1J
Section XI. Bidding Forms (BFs) ANNEX II-1.1K
Section XII. Foreign-Assisted Projects (FAPs) – if ANNEX II-1.1L
applicable

10.1 Bidders should note that the Procuring Entity shall only accept Bids from
Bidders that have purchased the BDs from the office indicated in the IB, or
have downloaded the BDs from the DPWH website subject to the payment of
the fee for the BDs upon submission of their bids.

11. Clarification/Amendment of Bidding Documents through Bid Bulletins

11.1 Bidders may request clarification(s) or an interpretation of any part of the
BDs.
Such a request must be in writing and submitted to the Procuring Entity at the
address indicated in the BDS at least ten (10) calendar days before the
deadline set for the submission and receipt of Bids. The BAC of the Procuring
Entity shall respond to the said request by issuing a Bid Bulletin.

11.2 The BAC, upon its initiative, may also issue Supplemental/Bid Bulletins to
amend or clarify any provision of the BDs not later than seven (7) calendar
days before the deadline for the receipt of Bids. .

11.3 Any Supplemental/Bid Bulletin issued by the BAC shall be posted on

the websites of the DPWH and the Philippine Government Electronic
Procurement System (PhilGEPS). It shall be the responsibility of all Bidders
who secured the Bidding Documents to inquire and secure Supplemental/Bid
Bulletins that may be issued by the BAC. However, bidders who have
submitted bids before the issuance of the Supplemental/Bid Bulletin must
be informed and allowed to modify or withdraw their bids in accordance with
ITB Clause 24.

C. Preparation of Bids

12. Cost of Bidding

The Bidder shall bear all costs associated with the preparation and submission of its
Bid, and the Procuring Entity shall in no case be responsible or liable for those costs.
26
 13. Language of Bid
The Bid, as well as all correspondence and documents relating to the Bid exchanged
by the Bidder and the Procuring Entity, shall be written in English. Supporting
documents and printed literature furnished by the Bidder may be in another language
provided they are accompanied by an accurate translation of the relevant passages in
English, in which case, for purposes of interpretation of the Bid, the English translation
shall govern.

14. Documents Comprising the Bid

14.1 Unless otherwise indicated in the BDS, the Bidder shall submit its Bid
in accordance with the provisions of ITB Clauses 14.2 to 14.4.

14.2 The Bidder shall present its Bid which shall consist of the Bid Form including
the Technical Proposal and the Financial Proposal.

a. Technical Proposal – This shall include all of the following documents:

(1) PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR.
All bidders shall upload and maintain in PhilGEPS a current and upload file of the following
Class “A” eligibility documents under Sections 23.1(a) and 24.1(a):

a) Registration Certificate
b) Mayor’s/Business Permit or its Equivalent Document;
c) Tax Clearance
d) Philippine Contractors Accreditation Board (PCAB) license and
registration: and
e) Audited Financial Statements.

(2) PCAB License and Registration

(3) Statement of all On-going Government and Private Contracts

(4) SLCC

(5) NFCC

(6) JVA, if applicable

(7) Bid Security in/with the required form, amount, and validity period
as provided in ITB Clause 18 (Use Form DPWH-INFR-10 or
11 or 12).

27
(8) Project Requirements which shall include the following:

(a) Organizational chart for the contract to be bid (Use Form

DPWH-INFR-13).

(b) List of contractor’s personnel (e.g., Project Manager,

Project Engineers, Materials Engineers, and Foremen),
to be assigned to the contract to be bid, with their
complete qualification and experience data (Use Form
DPWH- INFR-14).These personnel must meet the
required minimum years of experience shown in the BDS.

(c) List of contractor’s major construction and laboratory

equipment units, which are owned, leased, and/or under
purchase agreements, supported by proof of ownership
and certification of availability of equipment from
the equipment lessor/vendor for the duration of the
project (Use Form DPWH-INFR-15), as the case may
be. These equipment units must meet the minimum major
equipment requirements for the contract set in the BDS.

(9) Omnibus sworn statement by the prospective bidder or

its duly authorized representative in the form prescribed by the
GPPB as to the following (Use Form DPWH-INFR-16):
1.) Select one, delete the other:

If a sole proprietor: I am the sole proprietorship of (Name of Bidder) with

office address at (address of Bidder);

If a partnership, corporation, cooperative, or joint venture: I am the duly

authorized and designated representative of (Name of Bidder) with office
address at (address of Bidder);

2.) Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor of (Name of

Bidder), I have full power and authority to do, execute and perform any
and all acts necessary to present it in the biddine for (Name of the
Project) of the (Name of the Procuring Entity);

If a partnership, corporation, cooperative, or joint venture: I am a

granted full power and authority to do, execute and perform any and all
acts necessary and/or to present the (Name of Bidder)in the bidding as
shown in the attached (state title of attached document showing proof of
authorization (e.g. duly notarized Secretary’s Certificate issued by the
corporation or the members of the joint venture);

(a) It is not “blacklisted” or barred from bidding by the

Government of the Philippines or any of its agencies,
offices, corporations, or LGUs, including foreign
government/ foreign or international financing institution
whose blacklisting rules have been recognized by the
28
 GPPB.

(b) Each of the documents submitted in satisfaction of the

bidding requirements is an authentic copy of the original,
complete, and all statements and information provided
therein are true and correct.

(c) It is authorizing the Head of the Procuring Entity or

his duly authorized representative(s) to verify all the
documents submitted.

(d) The signatory is the duly authorized representative of the

prospective bidder, and granted full power and authority to
do, execute and perform any and all acts necessary and/or
to represent the prospective bidder in the bidding, with the
duly notarized Secretary’s Certificate attesting to such fact,
if the prospective bidder is a corporation, or duly notarized
Special Power of Attorney in case of sole proprietorship,
partnership or joint venture.

(e) It complies with the disclosure provision under Section 47

of RA 9184 and its IRR in relation to other provisions of
R.A. 3019.

(f) It complies with the responsibilities of a prospective or

eligible bidder provided in the BDs, including ITB 6.

(g) It complies with existing labor laws and standards.

(h) It did not give or pay, directly or indirectly, any

commission, amount, fee, or any form of consideration,
pecuniary or otherwise, to any person or official, personnel
or representative of the government in relation to any
procurement project or activity.

b. Financial Proposal – This shall include all of the following documents:

(1) Bid Form, using Form DPWH-INFR-09.

(2) Bid prices in the Bill of Quantities (BOQ) in the prescribed Forms
(Use Forms DPWH-INFR-17 and 18). The bid prices may be in
terms of (a) bid unit prices for different work items under the
BOQ, or (b) fixed total lump-sum price for the entire contract,
based on the type and complexity of the project.
(3) Detailed estimates, including a summary sheet indicating the
unit prices of construction materials, labor rates and equipment
rentals used in coming up with the Bid.

29
 (4) Cash flow by quarter (Use Form DPWH-INFR-19).

14.3 a. Unless indicated in the BDS, all Financial Proposals that exceed the
Approved Budget for the Contract (ABC) indicated in BDS 1.3 shall be
rejected.

a. Unless otherwise indicated in the BDS, for foreign-funded procurement, a

ceiling may be applied to bid prices provided the following conditions are
met:

(i) The BDs are obtainable free of charge on a freely

accessible website. If payment of the BDs is required by the
Procuring Entity, payment could be made upon the submission
of bids.

(ii) The Procuring Entity has procedures in place to ensure that

the ABC is based on recent estimates made by the responsible
unit of the Procuring Entity and that the estimates are based on
adequate detailed engineering and reflect the quality,
supervision and risk and inflationary factors, as well as
prevailing market prices, associated with the types of works to be
procured.

(iii) The Procuring Entity has trained cost estimators on

estimating prices and analyzing bid variances. It must also have
trained quantity surveyors.

(iv) The Procuring Entity has established a system to monitor

and report bid prices relative to the ABC and the Procuring
Entity’s estimate.

(v) The Procuring Entity has established a monitoring and

evaluation system for contract implementation to provide a
feedback on actual total costs of works.

14.4 The bidder may use, as reference, the checklist of requirements for its
Technical and Financial Proposals, as shown in Form DPWH-INFR-20.

15. Bid Prices

15.1 The Contract shall be for the whole Works, as described in ITB Clause 1.1, based
on the priced BOQ (Use Form DPWH-INFR-17) submitted by the Bidder.

15.2 The Bidder shall fill in its unit and total Bid prices for all items of the Works
described in the BOQ. Bids not addressing or providing all of the required
items in the BOQ, shall be considered non-responsive and, thus, automatically
disqualified. In this regard, where a required item is provided, but no price
is
indicated, the same shall be considered as non-responsive, but specifying a "0"
30
 (zero) or a dash (“-”) for the said item would mean that it is being offered for
free to the Government.

15.3 All duties, taxes, and other levies payable by the Contractor under the Contract,
or for any other cause, prior to the deadline for submission of Bids, shall be
included in the Bid prices submitted by the Bidder.

15.4 For the given scope of work in the Contract as awarded, all Bid prices shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances as specified
in GCC Clause 47. Price escalation may be allowed in extraordinary
circumstances as may be determined by the National Economic and
Development Authority in accordance with the Civil Code of the Philippines,
and upon the recommendation of the Procuring Entity. Furthermore, in cases
where the cost of the awarded contract is affected by any applicable new laws,
ordinances, regulations, or other acts of the GOP, promulgated after the date of
bid opening, a contract price adjustment shall be made or appropriate relief
shall be applied on a no loss-no gain basis.

16. Currencies of Bid and Payment

16.1 All Bid prices shall be quoted in Philippine Peso sunless otherwise provided
in the BDS. However, for purposes of bid evaluation, bids denominated in
foreign currencies shall be converted to Philippine currency based on the
exchange rate prevailing on the day of the Bid opening.

16.2 If so allowed in accordance with ITB Clause16.1, the Procuring Entity for
purposes of bid evaluation and comparing the bid prices will convert the amounts
in various currencies in which the bid price is expressed to Philippine Pesos at
the exchange rate as published in the BSP reference rate bulletin on the day of the
bid opening.

16.3 Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.

17. Bid Validity

17.1 Bids shall remain valid for the period specified in the BDS, which shall
not exceed one hundred twenty (120) days from the date of the opening of Bids.

17.2 In exceptional circumstances, the Procuring Entity may request that the Bidders
extend the period of validity of their Bids for a specified additional period. The
request and the Bidders’ responses shall be made in writing. A Bidder may
refuse the request without forfeiting the Bid Security. A Bidder agreeing to the
request will not be required or permitted to otherwise modify the Bid, but will
be required to extend the validity of the Bid Security for the period of the
extension, and in compliance with ITB Clause 14 in all respects.

18. Bid Security

31
18.1 The Bidder shall submit to the Procuring Entity, as part of its Bid, a Bid Securing
Declaration (using Form DPWH-INFR-12) or any form of Bid Security in an
amount equal to a percentage of the ABC in accordance with the following
schedule:

Form Minimum Amount

(1) Cash or cashier’s/manager’s check issued by a 2% of ABC
Universal or Commercial Bank
(2) Bank draft/guarantee or irrevocable letter of credit 2% of ABC
issued by a Universal or Commercial Bank (Use
Form DPWH-INFR-10 or 11)
(3) Surety bond callable on demand issued by a surety or 5% of ABC
insurance company duly certified by the Insurance
Commission as authorized to issue such security

18.2 A Bid Securing Declaration is an undertaking which states, among others, that the
bidder shall enter into contract with the Procuring Entity and furnish the required
Performance Security within ten (10) calendar days, or less, as indicated in the
BDs, from receipt of the Notice of Award, and commits to pay the corresponding
amount as fine and be suspended for a period of time from being qualified to
participate in any government activity in the event it violates any of the conditions
stated therein as required in the guidelines issued by the Government Procurement
Policy Board (GPPB).

18.3 The Bid Security should be valid for the period specified in the BDS.

18.4 Any Bid not accompanied by a Bid Securing Declaration or an acceptable Bid
Security shall be rejected by the Procuring Entity as non-responsive.

18.5 No Bid Securities shall be returned to Bidders after the opening of Bids and
before contract signing, except to those that failed to comply with any of the
requirements to be submitted in the Technical Proposal and Financial Proposal of
the Bid, as provided in the IRR of R.A. 9184. Without prejudice to the forfeiture
of Bid Securities, Bid Securities shall be returned only after the Bidder with the
Lowest Calculated Responsive Bid has signed the Contract and furnished the
Performance Security, but in no case later than the expiration of the Bid Securit y
validity period indicated in the BDS.

18.6 The Bid Security may be forfeited:

a. if the Bidder withdraws its Bid after Bid opening during the period of Bid
validity; or

b. if the Bidder does not accept the correction by the Bids and Awards
Committee of arithmetical and computational errors in its Bid prices,
pursuant to ITB Clause 28; or

c. in the case of the winning Bidder, if the Bidder fails, within ten (10) days
32
from its receipt of the Notice of Award, to:

(1) submit to the Procuring Entity the following documents:

(a) Notice of Award with the bidder’s signed “conforme;”

(b) Authority of Signing Official/Board Resolution/Secretary’s

Certificate;

(c) For a joint venture (JV), Contractor’s PCAB Special JV

License and JV Agreement;

(d) Performance Security (Use Form DPWH-INFR-43 or

DPWH-INFR-44, as applicable);

(e) Construction Methods (Use Form DPWH-INFR-45);

(f) Construction Schedule in the form of PERT/CPM Diagram

or Precedence diagram and Bar Chart with S-Curve (Use
Form DPWH-INFR-46);

(g) Manpower Schedule (Use Form DPWH-INFR-47);

(h) Equipment Utilization Schedule (Use Form DPWH-

INFR-48);

(i) Construction Safety and Health Program (Use Form

DPWH-INFR-49);

(j) Contractor’s All Risk Insurance (CARI);

(k) Latest Income Tax and Business Returns duly stamped and
received by BIR and duly validated with the tax payments
made. Tax Clearance from the BIR to prove full and timely
payment of taxes;

(l) For a local contractor, Certification under oath stating that

the Contractor is free and clean of all tax liabilities;

(m) For a foreign bidder, valid PCAB License and Registration

for the type and cost of the contract to be bid, when the
Treaty or International or Executive Agreement expressly
allows submission of the PCAB License and Registration
for the type and cost of the contract to be bid as a pre-
condition to the NOA; and

(n) Integrity Pledge in accordance with Department Order No.

86, series of 2013; or

33
 (2) sign the Contract Agreement; or

d. if the Bidder submits eligibility requirements that contain

false information or falsified documents, or conceals such information,
in order to influence the outcome of the eligibility screening or any
other stage of the bidding; or

e. if the Bidder submits Bids that contain false information or

falsified documents, or conceals such information in the Bids, in order
to influence the outcome of the bidding; or

f. if the Bidder allows the use of its name by another contractor, or uses
the name of another contractor, for purposes of public bidding; or

g. if the Bidder refuses to clarify or validate in writing its Bid during

post- qualification within a period of seven (7) calendar days fro m
receipt of the request for clarification; or

h. if the Bidder makes any documented unsolicited attempt to

unduly influence the outcome of the bidding in its favor; or

i. if the Bidder commits any other act that tends to defeat the purpose of
the competitive bidding, such as habitually withdrawing from bidding or
submitting letters of non-participation for at least three (3) times within
twelve (12) months, except for valid reasons.

19. Alternative Bids by Bidders

19.1 Bidders shall submit offers that comply with the requirements of the Bidding
Documents, including the basic technical design as indicated in the drawings
and specifications. Unless there is a value engineering clause in the BDS,
alternative bids shall not be accepted. For this purpose, alternative bid is an
offer made by a Bidder in addition or as a substitute to its original bid which
may be included as part of its original bid or submitted separately therewith
for purposes of bidding. A bid with options is considered an alternative bid
regardless of whether said bid proposal is contained in a single envelope or
submitted in two (2) or more separate bid envelopes.

19.2 Each Bidder shall submit only one Bid, either individually or as a partner in a JV.
A Bidder who submits or participates in more than one bid (other than as
a subcontractor if a subcontractor is permitted to participate in more than one
bid) will cause all the proposals with the Bidder’s participation to be
disqualified. This shall be without prejudice to any applicable criminal, civil
and administrative penalties that may be imposed upon the persons and entities
concerned.

20. Format and Signing of Bid

34
 20.1 Bidders shall submit their bids through their duly authorized representative
using the appropriate forms provided in Section XI of the SBDs (ANNEX
IIA-11) on or before the deadline specified in the ITB Clause 22 in two (2)
separate sealed bid envelopes, and which shall be submitted
simultaneously. The first shall contain the technical component of the bid as
provided in ITB Clause 14.2a, and the second shall contain the financial
component of the bid as provided in ITB Clause 14.2a.

20.2 Forms as mentioned in ITB Clause 20.1 must be completed without any
alterations to their format, and no substitute form shall be accepted. All blank
spaces shall be filled in with the information requested.

20.3 The Bidder shall submit one original of the Technical Proposal and one
original of the Financial Proposal as described in ITB Clause 20.1 and clearly
mark each as “ORIGINAL - TECHNICAL PROPOSAL” and “ORIGINAL –
FINANCIAL PROPOSAL”. In addition, the Bidder shall submit copies of the
Technical Proposal and the Financial Proposal, and clearly mark them “COPY
NO… - TECHNICAL PROPOSAL” and “COPY NO…. – FINANCIAL
PROPOSAL”. In the event of any discrepancy between the original and the
copies, the original shall prevail.

20.4 The original copy of the Bid as indicated in the BDS shall be typed or written
in indelible ink and shall be signed by the Bidder or a person or persons duly
authorized to bind the Bidder to the contract. Each page of the Bid Form and
the accomplished Bill of Quantities shall be signed by the Bidder or its
duly authorized representative. Failure to do so shall be a ground for the
rejection of the Bid.

20.5 Any interlineations, erasures, alterations or overwriting shall be valid only if

they are signed or initialed by the person signing the Bid.

20.6 Commissions or gratuities are not allowed.

21. Sealing and Marking of Bids

21.1 The Bidder shall enclose the original of the Technical Proposal in one sealed
envelope marked as “ORIGINAL - TECHNICAL PROPOSAL”; whereas, the
original of the Financial Proposal shall be enclosed in another sealed envelope
marked as “ORIGINAL - FINANCIAL PROPOSAL”. Both envelopes shall
then be placed in another single envelope marked as “ORIGINAL BID.”

21.2 Each copy of the Technical Proposal and Financial Proposal, shall be similarly
sealed duly marked as “COPY NO… - TECHNICAL PROPOSAL” and
“COPY NO… – FINANCIAL PROPOSAL” respectively and the outer
envelope as “COPY NO”.

21.3 These envelopes containing the original and the copies shall then be enclosed
in one single envelope that shall:
35
 a. indicate the name of the Contract to be bid;

b. bear the name and address of the Bidder;

c. be addressed to the Procuring Entity in accordance with ITB Clause 7;

d. bear the specific identification of this bidding process indicated in the

BDS; and

e. bear a warning “DO NOT OPEN BEFORE…” the time and date for the
opening of Bids , in accordance with ITB Clause 21.

21.4 If all envelopes are not sealed and marked as required, the Procuring Entity
will assume no responsibility for the misplacement or premature opening of the
Bid. If a Bid is not sealed and marked as required, the bidder or its authorized
representative shall acknowledge the condition of such Bid as submitted;
otherwise the Bid shall be disqualified.

D. Submission and Opening of Bids

22. Place and Deadline for Receipt of Bids

Bids must be received by the BAC of the Procuring Entity at the address and on or
before the deadline indicated in the BDS.

23. Late Bids

Any Bid submitted after the deadline for the receipt of Bids prescribed by the
Procuring Entity, pursuant to ITB Clause 18, shall be declared “Late” and shall not be
accepted by the Procuring Entity.

24. Modification and Withdrawal of Bids

24.1 The Bidder may modify its Bid after it has been submitted provided that the
modification is received by the Procuring Entity prior to the deadline
prescribed for the receipt of Bids by the BAC. The Bidder shall not be allowed
to retrieve its original Bid, but shall be allowed to submit another Bid equally
sealed, properly identified, linked to its original bid marked as “TECHNICAL
MODIFICATION” or “FINANCIAL MODIFICATION” and stamped
“received” by the BAC. Bid modifications received after the applicable
deadline shall not be considered and shall be returned to the Bidder unopened.

24.2 A Bidder may, through a Letter of Withdrawal, withdraw its Bid after it has
been submitted, for valid and justifiable Reasons; Provided That the Letter of
Withdrawal is received by the Procuring Entity not later than the deadline
prescribed for the receipt of Bids.

24.3 Bids requested to be withdrawn in accordance with ITB Clause 20.2 shall be

36
 returned unopened to the Bidders. A Bidder may also express its intention not
to participate in the bidding through a letter which should reach and be
stamped by the BAC before the deadline for submission and receipt of Bids.
A Bidder that withdraws its Bid shall not be permitted to submit another Bid,
directly or indirectly, for the same contract.

24.4 No Bid may be modified after the deadline for the receipt of Bids. No Bid may
be withdrawn in the interval between the deadline for the receipt of Bids
and the expiration of the period of Bid validity specified by the Bidder in
accordance with ITB Clause 13.1. Withdrawal of a Bid during this interval
may result in the forfeiture of the Bidder’s Bid Security, pursuant to the ITB
Clause 14.5, and the imposition of administrative, civil and criminal sanctions
as prescribed by R.A.9184 and its IRR.

25. Receipt of Bids under Electronic Bidding

If, as indicated in the BDS, Electronic Bidding is adopted for this procurement
pursuant to GPPB Resolution No. 23-2013, dated 30 July 2013, the following
procedure shall be observed with regard to the submission and receipt of bids:

a. On-line Bidders may submit their eligibility requirements to the Procuring

Entity through the e-bidding facility of PhilGEPS.

b. Joint Ventures

(1) In case of joint venture, each partner of the joint venture must: (i) be
registered in the PhilGEPS, (ii) secure Certified Membership Status, and
(iii) electronically send its respective eligibility documents.

(2) The joint venture partners must identify and designate the Primary
and Secondary Partner(s).

(3) Before the PhilGEPS will accept submissions of Technical and Financial
Proposals from the Primary Partner, there must be a confirmation from
the Secondary Partner(s) as to existence of, or agreement to enter into,
a joint venture.

(4) Upon Confirmation, the Primary Partner shall be required by

the PhilGEPS to upload the Joint Venture Agreement or a duly
notarized statement.

c. With regard to the requirement for a Bid Security as part of the

Technical Proposal under Section 5.6.2a(2) above, the following guidelines
shall be observed:

(2) On-line bidders may submit the Bid Security in cash through
the PhilGEPS electronic payment facility.
37
 (3) In case of other forms of Bid Security, the on-line bidder shall prepare
and submit a scanned copy of the Bid Security together with the
electronic bid. However, the original Bid Security must be submitted to
the BAC concerned before the end of business hours on the day of bid
submission, a failure of which shall automatically render the bid
submission as non- compliant.

(4) If the on-line bidder sends the original Bid security through
registered mail or private courier, the indicated date of receipt by the
postal service or private courier shall be considered as the date of
submission to the BAC concerned, without prejudice to any
verifications during post- qualification.

d. On-line Bidders, or the Primary Partner in the case of Joint Ventures,

shall electronically submit their bids through the Bidder’s On-line
Nominee, at any time before the closing date and time specified in the BDs.

e. The actual time of bid submission of an On-line Bidder shall be the time
indicated on the PhilGEPS Server when the bidder clicks the “Submit”
button which shall be automatically recorded by the PhilGEPS. Upon receipt
of a bid, the PhilGEPS shall automatically generate a bid receipt page that can
be printed by the on-line bidder. This contains the recorded “submission time”
which shall be considered as the Official Submission Time of the bidder.

f. An On-line Bidder may modify its bid at any time before the closing date
and time for the submission and receipt of bids.

g. An On-line Bidder may withdraw its bid before the deadline for the
submission and receipt of bids.

h. The PhilGEPS shall bar all incoming bids after the closing date and time.

26. Eligibility Check

26.1 Unless otherwise indicated in the BDS, after determining the names of the
bidders that submitted bids for the contract at hand, the BAC of the Procuring
Entity, assisted by its BAC Secretariat, shall check if each bidder that
submitted bids is eligible to bid for the contract being procured. This shall be
done electronically by computer using the data and program in the DPWH
Civil Works Registry (CWR).The submission of the Original Receipt (OR)
for payment of the BDs for the contract issued by any DPWH field office is
sufficient for the BAC of the Procuring Entity to undertake the electronic
eligibility evaluation of contractors.

26.2 The BAC Secretariat of the Procuring Entity shall enter into the CWR
the Contract Profile (CP) for the contract being procured. The CP will give the
basic contract data, including the ABC, works similar to those of the contract
38
 to be bid, and contract duration.

26.3 In case a bidder is already enrolled in the CWR and submits the Original
Receipt (OR) for payment of the BDs for the contract issued by any DPWH
field office, together with its bid, the BAC Secretariat shall enter into the
CWR the PCAB License Number and/or name of the bidder.

26.4 In case a bidder is not previously enrolled in the CWR and submits its
Eligibility Requirements – i.e., Class “A” and Class “B” Documents under its
CCASR - as part of its bid, together with Original Receipt (OR) for payment
of the BDs for the contract issued by any DPWH field office, the BAC
Secretariat shall immediately encode and enter into the CWR the
appropriate data and information – e.g., SLCC, NFCC, etc. - from the
submitted Documents.

26.5 In both cases, the CWR program will then electronically process and match
the prospective bidder’s capability or eligibility data in the CWR – e.g., value
of Single Largest Completed Contract (SLCC) similar to the contract being
procured and actual NFCC - against the eligibility requirements for the
contract derived from the CP – e.g., SLCC similar to the subject contract and
costing at least 50% of ABC, and NFCC at least equal to ABC. The
computer program will thus automatically determine whether or not the
prospective bidder meets the following eligibility requirements:

a. The cost of the bidder’s SLCC is at least 50% of the ABC of the project to
be procured.

b. The bidder’s NFCC is at least equal to ABC of the project to be

procured.

The program will also generate the results of the Eligibility Check, including
the Notices of Ineligibility. The reasons for ineligibility will also be
automatically shown in the Notices of Ineligibility.

26.6 During the bids opening session, the BAC will issue the Notices of Ineligibilit y
to the bidders concerned. If any of the bidders immediately agrees to their
ineligibility as indicated in the Notices, the BAC shall promptly not consider
its bid and thus return it to the bidder unopened. If, on the other hand, any of
the bidders indicate its intent to seek a reconsideration of its declared
ineligibility, the BAC shall set aside its sealed bid which shall be signed on its
cover by the bidder and other competing bidders and members of the BAC. If,
after evaluating the bidder’s request for reconsideration, the BAC finds the
bidder to be eligible for the contract at hand, the BAC shall set the date and
time for the opening of the bids of the bidders concerned.

26.7 The BAC shall then proceed with the opening and preliminary examination of

39
 the bids of the bidders that are declared eligible.

27. Opening and Preliminary Examination of Bids

27.1 The BAC shall open the Bid envelopes in the presence of Bidders’
representatives who choose to attend, at the time, on the date, and at the place
specified in the BDS. Bidders’ representatives who are present shall sign a
register evidencing their attendance.

27.2 The BAC shall read out and record letters of withdrawal, and return the
unopened envelopes containing the corresponding withdrawn Bid to the
Bidders concerned. If the withdrawing Bidder’s representative is present, the
BAC shall return the original Bid and all copies thereof to that representative
during the Bid opening. If the representative is absent, the BAC shall return the
unopened Bid by registered mail. The Bidder may withdraw its Bid before
the deadline for submission and receipt of Bids, provided that its letter of
withdrawal contains a valid justification requesting such withdrawal, subject to
appropriate administrative sanctions.

27.3 The BAC shall not accept Bids of ineligible Bidders. The BAC shall open the
Bids of eligible Bidders only, in accordance with the following Clauses.

27.4 Outer envelopes marked “TECHNICAL MODIFICATION” or “FINANCIAL

MODIFICATION” shall be identified but not opened. The BAC shall announce
the presence and type of modification from the information contained on the outer
envelope.

27.5 The BAC shall thenconduct the Preliminary Examination of the Bids. The
purpose of this examination is solely to determine the “presence-or-absence” of
each of the required documents comprising the bid, as stated in Clause 14 above,
using a simple non-discretionary “pass (if present) – or - fail (if absent)” criterion,
with the aid of checklists.

27.6 The BAC shall first openand undertake the Preliminary Examination of the
envelopes containing the Technical Proposals and modifications, if any, one at a
time, and reading out and recording the following:

a. Name of the Bidder.

b. Whether there is a technical modification or substitution.

c. Presence, amount and validity of the Bid Security.

d. Presence or absence of each document comprising the Technical Proposal

vis-à-vis a checklist of the required documents.

27.7 The BAC of the Procuring Entity shall determine each Bidder’s compliance with
the documents required to be submitted for the Technical Proposal of the Bid, as
prescribed in ITB Clause 10. For this purpose, the BAC shall check the submitted

40
 documents in the Technical Proposal against a checklist (Form DPWH-INFR-
31) of required documents to ascertain if thelatterare all present in the Technical
Proposal. If the required document is present, the Technical Proposal shall be
rated as “passed” for that particular requirement. On the other hand, if the
required document is absent, i.e., missing, incomplete or patently insufficient, the
Technical Proposal shall be rated as “failed” for that particular requirement. In
case one or more of the required documents in the Technical Proposal of a
particular Bid is absent - i.e., missing, incomplete, or patently insufficient - the
BAC shall rate the Technical Proposal as “failed” and immediately return to the
Bidder concerned its second envelope (Financial Proposal) unopened. If all of the
required documents in the Technical Proposal are present, the Technical Proposal
is rated as “passed.”

27.8 Unless otherwise specified in the BDS, on the same day the BAC shall then open
the Financial Proposal (second envelope) of each bidder whose Technical
Proposal was rated as “passed.” The BAC shall check the submitted documents
in the Financial Proposal against a checklist of required documents (Form
DPWH-INFR-32) to ascertain if the latter are all present in the Financial
Proposal. If the required document is present, the Financial Proposal shall be
rated as “passed” for that particular requirement. In case one or more of the
required documents in the Financial Proposal (second envelope) of a particular
Bid is absent - i.e., missing, incomplete or patently insufficient - and/or if the
submitted total bid price exceeds the ABC, the BAC shall rate the Financial
Proposal and, thus, the entire bid, as “failed.” If all of the required documents in
the Financial Proposal are present, the entire bid is rated as “passed.” Bids that
are so rated as “passed” shall immediately be considered for detailed evaluation of
the Bids.

27.9 The BAC shall prepare the minutes of the proceedings of the Bid opening
that shall include, as a minimum: (a) the Abstract of Bids as Read including the
name of each Bidder, its Bid prices, Bid Security, and findings of the
Preliminary Examination of Bids; and (b) the attendance sheet. The BAC
members shall sign the Abstract of Bids as Read and the BAC Observers may
witness the same. A copy of the Abstract of Bids as Read shall be made
available to all interested Bidders. The minutes of the proceedings of the Bid
opening shall be available to the public upon written request and payment of a
specified fee to cover the cost of materials.

28 Opening and Preliminary Examination under Electronic Bidding

If, as indicated in the BDS, Electronic Bidding is adopted for this procurement
pursuant to GPPB Resolution No. 23-2013, dated 30 July 2013, the following
procedure shall be observed with regard to the opening and preliminary examination:

a. Upon receipt of manually-filed bids, the Bid Opener, before the Bid Opening,
but immediately after the deadline for submission of bids, shall record and
input into the PhilGEPS E-bidding module the date and time each of the bid
was manually received, including the name of the bidder’s authorized

41
 representative.

b. The BAC shall open the bids immediately after the deadline for submission
and receipt of bids, and on the bid opening date.

c. Before the decryption of electronic bids, the Bid Opener must first login to
the PhilGEPS and only then can BAC members input their respective USER
IDs and PASSWORDS, provided however, that PhilGEPS decryption will not
take place unless all the members present and logging in constitute quorum.

d. The Bid Opener shall publicly open the first bid envelopes of bidders
who submitted bids manually to determine each bidder’s compliance with the
documents required to be submitted for eligibility, that is, legal, technical and
financial eligibility documents; and for the technical requirements. For this
purpose, the BAC shall check the submitted documents of each bidder against
a checklist of required documents to ascertain if they are all present, using a
non- discretionary “pass/fail” criterion. If a bidder submits the required
document, it shall be rated “passed” for that particular requirement. In this
regard, bids that fail to include any requirement or are incomplete or
patently insufficient shall be
considered as “failed”. Otherwise, the BAC shall rate the bidder “passed”
in relation to the eligibility and technical documents in the first envelope.

e. After all the manually submitted first envelopes of bidders were opened, and
the results and findings were encoded in the PhilGEPS Preliminary
Examination Report facility, the Bid Opener shall thereafter proceed to decrypt
the electronic First Bid Envelopes submitted by the On-line Bidders to
determine each bidder’s compliance with the required eligibility and technical
documents following the steps and procedures outlined in Section 5.6.9d above.
Thereafter, the Bid Opener shall input the findings and results into the
PhilGEPS’ Preliminary Examination Report facility.

f. Immediately after determining compliance with the requirements in the

first envelope, the Bid Opener shall forthwith open the manually submitted
second bid envelope of each eligible bidder whose first bid envelope was rated
“passed.” The second envelope of each complying bidder shall be opened
within the same day.

g. After all the manually submitted second envelopes of bidders were opened,
and the results and findings were encoded in the PhilGEPS Preliminary
Examination Report facility, the Bid Opener shall thereafter proceed to decrypt
the electronic Second Bid Envelopes of each On-line Bidders whose
electronic first bid envelope was rated “passed” to determine each bidder’s
compliance with the required financial documents following the steps and
procedures outlined in Section 5.6.9f above.

h. In case one or more of the requirements in the second envelope of a particular

bid is missing, incomplete or patently insufficient, and/or if the submitted total
42
 bid price exceeds the ABC, the BAC shall rate the bid concerned as “failed”.
The Bid Opener shall then input the findings and results into the PhilGEPS’
Preliminary Examination Report facility.

i. Only bids that are determined to contain all the bid requirements for
both components shall be rated “passed” and shall immediately be
considered for evaluation and comparison.

j. The PhilGEPS shall automatically send an electronic mail to all bidders

who failed in the preliminary examination of the first and/or second envelope.

E. Evaluation and Comparison of Bids

29 Process to be Confidential
Members of the BAC, its staff and personnel, Secretariat and TWG, as well as
observers, are prohibited from making or accepting any kind of communication with
any bidder regarding the evaluation of any of the bids until the issuance of the Notice
of Award.

30. Clarification of Bids

To assist in the evaluation, comparison and post-qualification of the bids, the
Procuring Entity may ask in writing any Bidder for a clarification of its bid. All
responses to requests for clarification shall be in writing. Any clarification submitted
by a Bidder in respect to its bid and that is not in response to a request by the
Procuring Entity shall not be considered.

31. Detailed Evaluation and Comparison of Bids

a. The Procuring Entity shall evaluate and compare, in detail, only the Bids that
are rated as “complying” (“passed”) for both Technical and Financial Proposals
pursuant to ITB Clause 26.

b. In evaluating the Bids to get the Lowest Calculated Bid, the Procuring Entity
shall undertake the following:

c. The detailed evaluation of the Financial Proposals of the Bids, to establish

the correct calculated prices of the Bids.

d. The ranking of the total bid prices as so calculated from the lowest to highest.
The Bid with the lowest price in the ranking shall be identified as the Lowest
Calculated Bid.

e. To determine the Lowest Calculated Bid, the BAC shall use non-
discretionary “pass/fail” criteria, as stated in the IB, which shall include a
consideration of the following:

(1) Completeness of the bid. Unless the ITB specifically allows partial
43
 bids, bids not addressing or providing all of the required items in the
BDs, including the BOQ, shall be considered as non-responsive
and, thus, automatically disqualified. In this regard, where a required
item is provided, but no price is indicated, the same shall be considered
as non- responsive, but specifying a “0” (zero) or a dash (“-”) for the
said item would mean that it is being offered for free to the
Government, except those required by law or regulations to be
provided for (IRR Section
32.2.1a);
and

(2) Arithmetical corrections. The BAC shall consider computational

errors, omissions and discounts if allowed in the BDs to enable
proper comparison of all eligible bids. It may also consider bid
modifications if expressly allowed in the BDS. Any adjustment shall
be calculated in monetary terms to determine the calculated prices.

In case a bid offers a discount on the total bid price, the percentage of
the discount to the total bid price shall be applied to all pay items for
purposes of evaluating the value of work accomplished during the
implementation stage.

(3) Evaluation on equal footing. The BAC shall evaluate all bids on an equal
footing to ensure fair and competitive bid comparison. For this purpose, all
bidders shall be required to include the cost of all taxes, such as, but not
limited to, value added tax (VAT), income tax, local taxes, and other fiscal
levies and duties which shall be itemized in the Bid Form and reflected in
the detailed estimates. Such bids, including said taxes, shall be the basis for
bid evaluation and comparison.

(4) Rule on discrepancies. In case of discrepancies between: (a) bid prices in

figures and in words, the latter shall prevail; (b) total price per item and unit
price for the item as extended or multiplied by the quantity of that item, the
latter shall prevail; (c) stated total price and the actual sum of prices o f
component items, the latter shall prevail; (d) unit cost in the detailed
estimate and unit cost in the BOQ, the latter shall prevail. The corrected per
item cost for all items shall be the basis for the corrected grand total cost.

(5) Total calculated bid prices. The total calculated bid prices are obtained after
making the detailed evaluation and corrections according to the
abovementioned criteria.

f. The Procuring Entity’s evaluation of bids shall only be based on the bid price quoted
in the Financial Bid Form.

g. In case of discrepancies between:

(1) bid prices in figures and in words, or

44
 (2) total bid prices per pay item and unit prices applied to the quantities per
pay item, or

(3) stated total Bid price and the actual sum of prices of component items, or

(4) unit prices in the detailed estimate and unit bid prices in the Bill of
Quantities, the latter in each of the above cases shall prevail, and the total
Bid amount shall be corrected accordingly.

h. Based on the detailed evaluation of the bids, those that comply with the
abovementioned requirements shall be ranked in the ascending order of their total
calculated bid prices, as evaluated and corrected for computational errors,
discounts and other modifications, in accordance with the provisions of this ITB
Clause. This will identify the Lowest Calculated Bid. Total calculated bid prices,
as evaluated and corrected for computational errors, discounts and other
modifications, which exceed the ABC shall not be considered, unless otherwise
indicated in BDS 14.3a.

i. The provision in this Clause 31-i is not to be considered in the evaluation of the bids
to determine the technically complying bid or the lowest calculated bid, but shall
beapplied by the Procuring Entity during the implementation of the
contract, particularly in making contract payments:

(1) During the evaluation of the bids, the BAC shall take note of
any unbalanced bids on early works and other items for unit-priced
contracts.

(2) Unbalanced bids are defined as those where the total bid price for a
major pay item is more than fifty percent (50%) of the corresponding
cost of that pay item in the ABC. A major pay item is defined as that
whose cost in the ABC is 20% or more of the total ABC; if there is no
such pay item, then major pay items are defined as the two pay items
in the ABC with the highest total costs.

(3) Unbalanced bids also include those with a minor pay item whose cost in
the ABC is more than five percent (5%) of the total ABC and
where the corresponding bid price for that pay item is more than one
hundred percent (100%) of the ABC for that item.

(4) For unbalanced bids, during the implementation of the contract works, the
payment for these major and minor pay items shall be made initially at
the unit prices in the ABC, and the remainder - i.e., contract unit price
minus ABC unit price for the major pay item - shall be paid when the
work under the major pay item is completed.

32. Procedure for Detailed Evaluation of Bids under Electronic Bidding

45
 In case Electronic Bidding is adopted pursuant to GPPB Resolution No. 23-2013, dated
30 July 2013, the Procuring Entity shall apply the manual procedure for the detailed
evaluation of bids prescribed under Section 31 of the ITB. In addition, the procuring
Entity shall observe the following guidelines:

a. After conducting the detailed evaluation of all bids using non-

discretionary criterion, the Bid Opener shall input and record the results of the
evaluation into the PhilGEPS’ Evaluation Summary Report facility.

b. The PhilGEPS shall automatically rank the bidders in ascending order based
on their total calculated bid prices to identify the LCB as evaluated and
corrected for computational errors, and other bid modifications. Total
calculated bid prices, as evaluated and corrected for computational errors, and
other bid modifications, which exceed the ABC shall be disqualified. After all
bids have been received, opened, examined, evaluated, and ranked, the system
shall thereafter generate the Abstract of Bids in the form of PhilGEPS
Evaluation Summary Report.

c. The BAC shall manually prepare a Resolution whether approving or denying

the Abstract of Bids generated by the system. However, after the BAC
Resolution approving the Abstract of Bids is uploaded in the PhilGEPS,
an electronic message shall be automatically sent to all bidders who
participated informing them that the Abstract of Bids is available for
downloading.

33. Post-Qualification of the Lowest Calculated Bid

a. The Procuring Entity shall conduct a Post-Qualification of the Bidder that
is evaluated to have the Lowest Calculated Bid (LCB) to determine definitely if
it complies with and is responsive to all requirements and conditions for
eligibilit y and of the Bidding for the contract specified in ITB Clauses 5 and 14.

b. Within five (5) calendar days from receipt by the Bidder of the notice fro m
the BAC that it submitted the LCB, the Bidder shall submit the following
post- qualification documentary requirements (IRR Section 34.2):

(1) Latest income and business tax returns.

(2) Other appropriate licenses and permits required by law and stated in the BDs.

Failure of the Bidder declared as LCB to duly submit the requirements

under this Clause or a finding against the veracity of such, shall be ground

for forfeiture of the bid security and disqualification of the Bidder for award.

c. The determination shall use non-discretionary “pass/fail” criteria and be

based upon examination, verification, and validation of the documentary

46
 evidence of the Bidder’s eligibility/qualifications submitted by the Bidder in
the Contractor’s Confidential Application Statement for Registration (CCASR)
in accordance with Section II: Eligibility Requirements, and in the Technical
and Financial Proposals in accordance with ITB Clause 10. The Procuring
Entity shall use the post- qualification criteria indicated in Form DPWH
INFR-37.

d. If the BAC determines that the Bidder with the LCB passes all the criteria
for Post-Qualification, it shall declare the said bid as the Lowest Calculated
Responsive Bid, (LCRB) and recommend to the HoPE the award of contract
to the said Bidder at its submitted price or its calculated bid price,
whichever is lower.

e. If the BAC determines that the Bidder with the LCB fails the criteria for Post-
Qualification, it shall proceed to the next LCB to make a similar determination
of that Bidder’s capabilities. If the second Bidder, however, fails the Post-
Qualification, the procedure for Post-Qualification shall be repeated for
the Bidder with the next LCB, and so on until the LCRB is determined for
contract award.

34. Post-Qualification under Electronic Bidding

If, as indicated in the BDS, Electronic Bidding is adopted for this procurement
pursuant to GPPB Resolution No. 23-2013, dated 30 July 2013, the Procuring Entity
shall observe the following procedure with regard to the post-qualification:

a. Within one (1) day after the approval of the Abstract of Bids, the bidder with
the Lowest Calculated Bid (LCB) should be notified through electronic mail
that the bidder shall undergo post-qualification and submit the post-
qualification requirements within five (5) calendar days as provided for under
Section 34.2 of RA 9184-IRR.

b. If the BAC determines that the bidder with the LCB passes all the criteria
for post-qualification, it shall declare the said bid as the Lowest
Calculated Responsive Bid (LCRB), and recommend to the HoPE the award
of contract to the said bidder at its submitted bid price or its calculated bid
price, whichever is lower or, in the case of quality-based evaluation procedure,
submitted bid price or its negotiated price, whichever is lower.

c. If, however, the BAC determines that the bidder with the LCB fails the criteria
for post-qualification, it shall immediately notify the said bidder
electronically in writing of its post-disqualification and the grounds for it.

d. Immediately after the BAC has electronically notified the first bidder of its
post- disqualification, and notwithstanding any pending request for
reconsideration thereof, the BAC shall init iate and complete the same post-
qualification process on the bidder with the second LCB. If the second bidder
passes the post- qualification, and provided that the request for reconsideration
47
 of the first bidder has been denied, the second bidder shall be post-qualified as
the bidder with the LCRB.

e. If the second bidder, however, fails the post-qualification, the procedure for
post- qualification shall be repeated for the bidder with the next LCB, and so
on until the LCRB, as the case may be, is determined for award, subject to
Section 37 of the IRR.

f. The post-qualification process shall be completed in not more than twelve (12)
calendar days from the determination of the LCB. In exceptional cases, the
post- qualification period may be extended by the HoPE, but in no case
shall the aggregate period exceed forty five (45) calendar days.

g. The BAC or its Bid Opener shall record and encode the post-qualification
results of manually submitted documents in the PhilGEPS. For electronic
documents submitted online, the BAC or its Bid Opener shall decrypt the
documents and the results recorded automatically.

h. After recording the post-qualification summary and uploading the BAC

resolution declaring the bidder with the LCRB in the PhilGEPS, an electronic
message shall be automatically sent to all bidders who participated informing
them that the Notice of LCRB is available for downloading.

35. Right of Procuring Entity to Reject Bids

35.1 Notwithstanding the eligibility or post-qualification of a Bidder, the Procuring
Entity concerned reserves the right to review the qualifications of the Bidder
at any stage of the procurement process if the Entity has reasonable grounds to
believe that the Bidder has made a misrepresentation, or that there has been a
change in the Bidder’s capability to undertake the contract from the time
it submitted its eligibility requirements. Should such review uncover any
misrepresentation made in the eligibility and bidding requirements, statements
or documents, or any changes in the situation of the Bidder which will affect
its capability to undertake the contract so that it fails the preset eligibility or bid
evaluation criteria, the Procuring Entity shall consider the said Bidder as
ineligible and shall disqualify it from submitting a bid or from obtaining an
award for the contract.

35.2 The Procuring Entity reserves the right to reject any and all bids, declare a failure
of bidding, or not award the contract in the following situations, without incurring
any liability to the affected bidders:

a. If there is prima facie evidence of collusion among appropriate public

officers or employees of the Procuring Entity, or between the BAC and
any of the bidders, or among the bidders themselves, or between a bidder
and a third party, including any act which restricts, suppresses or nullifies
or tends to restrict, suppress or nullify competition.

b. If the BAC is found to have failed in following the prescribed bidding

48
 procedures.

c. For any justifiable and reasonable ground where the award of the contract
will not redound to the benefit of the Government as follows:

(1) if the physical and economic conditions have significantly changed so

as to render the contract works no longer economically, financially or
technically feasible as determined by the HoPE;

(2) if the contract works are no longer necessary as determined by the

HoPE; or

(3) if the funds for the contract have been cancelled, withheld or reduced
through no fault of the Procuring Entity.

35.3 In addition, the Procuring Entity may likewise declare a failure of bidding,
without incurring any liability to the affected bidders, when:

a. no bids are received;

b. all prospective bidders are declared ineligible;

c. all bids fail to comply with all the bid requirements or fail post-
qualification; or

d. the bidder with the LCRB refuses, without justifiable cause to accept the
award of contract, and no award is made.

F. Award of Contract

36. Award Criterion

The Procuring Entity shall award the contract to the winning Bidder whose Bid
has been determined, after the evaluation of bids and Post-Qualification, as the
LCRB, at its submitted bid price or its calculated bid price, whichever is lower
(IRR Section 34.4).

37. Notice of Award

37.1 Prior to the expiration of the Bid validity period, the Procuring Entity shall issue
a written Notice of Award (NOA) to the Bidder with the LCRB to be
received by the Bidder personally, by registered mail, or electronically, receipt
of which must be confirmed in writing within two (2) days by the Bidder with
the LCRB and submitted personally or sent by registered mail or electronically
to the Procuring Entity.

37.2 The NOA shall state the proposed contract price – i.e., whichever is lower of
the submitted bid price or calculated bid price - together with the
49
 documentary requirements to be submitted by the Bidder to perfect the contract.

37.3 Notwithstanding the issuance of the NOA, award of contract shall be subject
to the following conditions:

a. Submission by the bidder with the LCRB of the following

documents within ten (10) from the bidder’s receipt of the NOA, as
conditions for signing the contract:

(1) Notice of Award (NOA) with the bidder’s signed “conforme” (Use
Form DPWH-INFR-41)

(2) Authority of Signing Official/Board Resolution/Secretary’s

Certificate

(3) For a joint venture (JV), Contractor’s PCAB Special JV License and
JV Agreement.

(4) Performance Security in accordance with Section 3.9.2.2 of the

DPWH Procurement Manual Volume II (Use Form DPWH-INFR-
43 or DPWH-INFR-44, as applicable).

(5) Construction Methods (Use Form DPWH-INFR-45)

(6) Construction Schedule in the form of PERT/CPM Diagram or

Precedence Diagram and Bar Chart with S-Curve, or other
approved tools of project scheduling, and Cash Flow (Use Form
DPWH- INFR-46).

(7) Manpower Schedule (Use Form DPWH-INFR-47).

(8) Equipment Utilization Schedule (Use Form DPWH-INFR-48).

(9) Construction Safety and Health Program (Use Form DPWH-INFR-

49).

(10) Contractor’s All-Risk Insurance (CARI)

(11) Latest Income Tax and Business Returns duly stamped and
received by BIR and duly validated with the tax payments made.
Tax Clearance from the BIR to prove full and timely payment of
taxes.

(12) For a local contractor, Certification under oath stating that the
Contractor is free and clean of all tax liabilities.

(13) For a foreign bidder, valid PCAB License and Registration for the
type and cost of the contract to be bid, when the Treaty or

50
 International or Executive Agreement expressly allows
submission of the PCAB License and Registration for the type
and cost of the contract to be bid as a pre-condition to the NOA.

(14) Integrity Pledge in accordance with Department Order No. 86,

series of 2013.

b. Signing of the contract as provided in ITB Clause 36.

c. Approval of the contract as provided in ITB Clause 36.

38 Performance Security
38.1 Within a maximum period of ten (10) calendar days upon receipt of the
NOA from the Procuring Entity, and in no case later than the signing of the
contract by the winning Bidder and the Procuring Entity, the winning Bidder
shall furnish to the Procuring Entity, the required Performance Security in an
amount equal to the percentage of the total contract price in accordance with
the following schedule and with the conditions specified in GCC Clause 7:

Form Amount
(1) Cash or cashier’s/manager’s check issued by a 10% of contract price
Universal or Commercial Bank
(2)Bank draft/guarantee or irrevocable letter of credit 10% of contract price
issued by a Universal or Commercial Bank; provided
that it shall be confirmed or authenticated by a Universal
or Commercial Bank if issued by a foreign bank (Use
Form DPWH-INFR-42)
(3)Surety bond callable upon demand issued by a 30% of contract price
surety or insurance company duly certified by the
Insurance Commission as authorized to issue such
security (Use Form DPWH-INFR-43)
(4) Any combination of the foregoing. Proportionate to share of
form with respect to total
amount of security

38.2 Failure of the winning Bidder to comply with the requirements of

ITBClause34 shall constitute sufficient grounds for cancellation of the award
and forfeiture of its Bid Security. In this event, the Procuring Entity shall
initiate and complete the post-qualification of the second Lowest Calculated
Bid. The procedure shall be repeated until the Lowest Calculated and
Responsive Bid is identified and selected for contract award. However, if no
Bidder passed post-qualification, the BAC shall declare the bidding a failure
and conduct a re-bidding with re- advertisement.

51
39 Documents Comprising the Contract
39.1 The Contract shall consist of the
following:

a. Contract Agreement (Use Form DPWH-INFR-50)

b. Documents forming part of the Contract Agreement in the following

order of priority:

(1) Notice of Award (NOA) with the Contractor’s signed “conforme”

(2) Contractor’s Bid in the Form of Bid, including its Technical and
Financial Proposals, as calculated by the Procuring Entity
and conformed by the Contractor through the NOA

(3) Bidding Documents (other than b(4) to b(7) below) with Bulletins

(4) Specifications

(5) Drawings

(6) Special Conditions of Contract (SCC)

(7) General Conditions of Contract (GCC)

(8) Performance Security

(9) Integrity Pledge under Department Order No. 86, series of 2013

c. Other Documents

(1) Construction Methods

(2) Construction Schedule in the form of PERT/CPM Diagram

or Precedence Diagram and Bar Chart with S-Curve, or
other approved tools of project scheduling, and Cash Flow
(3) Manpower Schedule

(4) Equipment Utilization Schedule

(5) Construction Safety and Health Program initially approved by the

HoPE

(6) Contractor’s All Risk Insurance (CARI)

39.2 The documents in ITB Clause 35.1a and b(2) to b(7) shall be provided by the
Procuring Entity, while the documents in Clause 35.1 b(1), b(8), and c(1) to
c(6) shall be submitted by the winning bidder to the Procuring Entity within
ten (10) calendar days from the date of its receipt of the Notice of Award.
52
40 Signing and Approval of the Contract
40.1 Within ten (10) days from the date of receipt from the winning Bidder of the
documents mentioned in ITB Clause 30.1a and b)-(4) to (b)-(7), the
successful Bidder and the authorized official of the Procuring Entity shall sign
the Contract Agreement.

40.2 If further approval of the contract is required, the approving authority is given
a maximum of twenty (20) calendar days from receipt thereof to approve or
disapprove it.

40.3 Upon approval of the Contract, the Procuring Entity shall notify the other
Bidders that their bids were unsuccessful.

41 Notice to Proceed
The Procuring Entity shall issue the Notice to Proceed (NTP), using Form DPWH-
INFR-51, together with a copy or copies of the approved contract, to the
successful bidder within seven (7) calendar days from the date of approval of the
contract by the appropriate government approving authority. All notices, including
the NTP, called for by the terms of the contract shall be effective only at the time of
receipt thereof by the successful bidder (IRR Section 37.4).

53
 ANNEX II-1.1E
Section V. Bid Data Sheet

Notes on the Bid Data Sheet

The Bid Data Sheet (BDS) complements the Instructions to Bidders (ITB) and must be
prepared for each particular contract to be procured. The BDS provides the information
specific to the Contract.

54
 STANDARD FORMAT
BID DATA SHEET
ITB Clause

1.1 The Procuring Entity is Department of Public Works and Highways.

The scope of the Works under this Contract is Off-Carriageway Improvement

The Contract Name is Off-Carriageway Improvement – Panglao Island

Circumferential Road-(via Biking) K007+137-K008+000, (via Tangnan)
K009+000 – K0010+000
Project ID: P00200669VS
The Procurement/Contract ID No. 18HA0010

2. The Approved Budget for the Contract is Php 27,893,690.00

The Funding Source is the Government of the Philippines through GAA 2018
Current in the amount of Php 27,893,690.00

The name of the Project is Off-Carriageway Improvement – Panglao Island

Circumferential Road-(via Biking) K007+137-K008+000, (via Tangnan)
K009+000 – K0010+000
Project ID: P00200669VS
5.
N/A
8.1
N/A

8.3
Not Applicable
9.1 The date and time of the Pre-Bid Conference are January 18, 2017 at 10:00a.m.

The venue of the Pre-Bid Conference is at Asst. District Engineer Office, DPWH
Bohol I – D.E.O.

9.4
Electronic Bidding will not be adopted in this procurement.

55
11.1 The Procuring Entity’s address is:

ENGR. BEN ALDEN R. SERNA

BAC Chairman
DPWH Bohol I – District Engineering Office
New Capitol Site, Tagbilaran City, Bohol
Tel. No. (038) 412 3136

14.2 a(3)(b) The minimum work experience requirements for the key personnel are the

followings:

Key Personnel Minimum Years of Minimum Years of

Similar Experience Similar and Related
(Same Position) Experience
Project Manager 3 5
Project Engineer 3 5
Materials Engineer 3 5
Foreman 3 5

56
14.2 a(3)(c) The minimum major equipment requirements are the following:

Construction Required No. of Units Minimum

Equipment Capacity/Unit

Minimum Materials Testing Equipment as per D.O. No. 11 series of 2017

For Medium Contractors

Laboratory Required Minimum Capacity/Unit

Equipment No. of
Units
Balance, Triple Beam 1 311g cap. (0.01g sensitivity)
Balance, Triple Beam 1 2610g cap. (0.19g sensitivity)
Hammer, Modified 1
Compaction
Mold, Compaction 1 101.6mm diameter x 116.4 mm
height
Moisture Content Can 1 225ml, tin
Concrete Measure 1 0.014 m³ cap. (1/2 cu. fit.)

57
 Laboratory Required Minimum Capacity/Unit
Equipment No. of
Units
Straight Edge, Steel 1 300mm long
Field Density Test Set 1set
1-Sand Density Cone
1-Jug, Glass or Plastic,
4-L capacity
1-Density Plate
1-Straight Edge
1-Spoon
1-25 mm Chisel, Steel
1-4-L Field Can
1-Mallet, rubber
1-Scoop, sand
Auger, Post Hole, with 1
two-m extension
Cylinder, Glass, Double 1 500mL cap.
Graduated
Bowl, Mixing 1 250mm dia. X90mm high
Pan Square, G. I. 1 600mmx600mmx75mm
Spade or Shovel 1
Pickaxe 1
Crowbar 1
Concrete Mixer, 1
Portable
Slump Test Set 1 set
1-Slump cone, complete
with base and tamping
rod
1-Trowel, Triangular or
Rectangular blade,
90mmx180mm
1-Scale
Mold, Steel, Cylinder 1 150mmx300mm
Mold, Steel Beam 1 150mmx150mmx500mm
Vertical Capping Set 1 set
1-Vertical Cylinder
Capper with capping
plate, 150mm diameter
1-Capping compound
warmer pot, 4-L cap.
1-Capping ladle
1-Carton capping
compound
Thermometer, Metal, 1 0-250°C
dial type
14.3a “No further instructions.”
58
14.3b “No further instructions.”
17.1 Bids shall be valid until 120 calendar days from the Bid Opening..
18.2 The Bid Security shall be valid until One Hundred Twenty (120) Calendar Days
from the date of Bid Opening.

19.1 There is no provision for a value engineering change proposal.

20.4 The Bidder shall submit (1)one original (2) copies of the first
(Technical) and second (Financial) components of its bid.
21.4 d The specific identification of this bidding process is 18HA0009 – Construction
of DPWH Annex Building Bohol 1st District Engineering Office, Dao,
Tagbilaran City

22 The address for receipt of Bids is DPWH Bohol I – D.E.O., New Capitol Site,
Tagbilaran City, Bohol

The deadline for receipt of Bids is January 22, 2018, 1:00 P.M.
25 Electronic Bidding will not adopted in this procurement.

26.1 The place of opening of Bids is, DPWH Bohol I – D.E.O.

The date and time of opening of Bids are January 22, 2018 @ 2:00 P.M.
28 Electronic Bidding will not adopted for Bids Opening and
Preliminary Examination of Bids in this procurement.
33 Electronic Bidding will not be adopted for Post-Qualification in this
procurement.

59
 ANNEX II-1.1F
Section VI. General Conditions of
Contract
Notes on the General Conditions of Contract (GCC)
The GCC provides the general terms and conditions of the contract between the Procuring
Entit y and the winning bidder.

The provisions of the GCC are to be used unchanged as part of the contract-specific
BDs.

To supplement the GCC, the Special Conditions of Contract (SCC) in ANNEX II-
1.1G provide detailed information or requirements on particular provisions of the GCC that
are specific to the contract at hand.

60
 STANDARD FORMAT

GENERAL CONDITIONS OF CONTRACT

TABLE OF CONTENTS

1. Definitions …………………………………………………………………………… 63
2. Interpretation ………………………………………………………………………… 65
3. Governing Language and Law ……………………………………………………… 67
4. Communications …………………………………………………………………….. 67
5. Procuring Entity’s Obligation to Deliver the Site, Materials, Equipment, and Plans. 67
6. Contractor’s Obligations …………………………………………………………… 68
7. Performance Security ……………………………………………………………….. 69
8. Sub-Contracting…………………………………………………………………….. 70
9. Liquidated Damages ………………………………………………………………… 71
10. Site Investigation Reports …………………………………………………………… 71
11. Licenses and Permits ………………………………………………………………… 71
12. Contractor’s Risk and Warranty Security …………………………………………… 71
13. Liability of the Contractor …………………………………………………………… 73
14. Procuring Entity’s Risk…………………………………..…………………………… 73
15. Insurance …………………………………………………………………………….... 74
16. Termination for Default of Contractor …………………………................................... 75
17. Termination for Default of Procuring Entity ………………………………………… 77
18. Termination for Convenience ………………………………………………………… 78
19. Procedure for Termination of Contracts ……….……………………………………. 78
20. Force Majeure and Release from Performance …………………................................ 81
21. Payment on Termination …………..………………………………………………… 82
22. Resolution of Disputes ………………………………………………………………. 82
23. Suspension of Loan, Credit, Grant, or Appropriation ……………………………….. 83
24. Procuring Entity’s Representative’s Decisions ……………………………………… 83
3

61
25. Approval of Drawings and Temporary Works by Procuring Entity’s Representative.. 83
26. Acceleration Ordered by Procuring Entity’s Representative ………………………. 83

27. Extension of Intended Completion Date ……………………………………………. 84

28. Contractor’s Right to Claim …………………………………………………........... 84

29. Dayworks ………………………………………………………............................... 84

30. Early Warning ……………………………………………………………………… 85
31. Program of Work …………………………………………………………………… 85
32. Management Conferences ………………………………………………………….. 86
33. Bill of Quantities………………………………………………………………………. 86
34. Instructions, Inspections and Audits ……………………………………………….. 86
35. Identification of Defects …………………………………………………………….. 87
36. …………………………………………………………………….
Cost of Repairs ……………………………………………………………………… 87
37. Correction of Defects …………………………………………….............................. 87
38. Uncorrected Defects ………………………………………………………………… 87
39. Advance Payment …………………………………………………………………… 88
40. Monthly Statements or Progress Billings …………………………………………… 88
41. Monthly Certificates and Progress Payments ………………………………………. 89
42. Retention …………………………………………………………………………….. 90
43. Variation Orders ………………………………………………….............................. 90
44. Punch List…………………………………………………………………………….. 92
45. Suspension of Work …………………………………………………………………. 93
46. Extension of Contract Time …………………………………………………………. 94
47. Price Adjustment …………………………………………………………………….. 96
48. Certificates of Completion and Acceptance …………………………………………. 96
49. Taking Over …………………………………………………………………………. 97
50. “As-Built” Drawings and Operating and Maintenance Manuals ……………………. 97

62
 GENERAL CONDITIONS OF CONTRACT
1. Definitions
1.1 Arbiter is the person appointed jointly by the Procuring Entity and the Contractor
to resolve disputes in the first instance.

1.2 As-Built Drawings refer to the engineering plans for the structure as actually
constructed and completed under this Contract, considering all variations and
modifications as approved and executed.

1.3 Bill of Quantities refers to a list of the specific pay items of the Works under this
Contract, particularly their identification numbers, descriptions, units of
measurement, and quantities, together with their corresponding unit and total bid
prices.

1.4 Certificate of Completion is the document issued by the Procuring Entity,

certifying that the Works have been completed, including correction of all
Defects, as of the end of the Contract Time with approved time extensions, in
accordance with the provisions of this Contract.

1.5 Certificate of Acceptance is the document issued by the Procuring Entity,

certifying that the Works have been completed, including correction of all
Defects, as of the end of the Defects Liability Period, in accordance with the
provisions of this Contract, and that, therefore, the completed Works are accepted
by the Procuring Entity.

1.5 Contract is the legal agreement between the Procuring Entity and the Contractor
to execute, complete, and maintain the Works. It consists of the documents listed
in GCC Clause 2.2.

1.6 Contract Price is the price stated in the Notice of Award and thereafter to be paid
by the Procuring Entity to the Contractor for the execution of the Works in
accordance with this Contract.

1.7 Contract Time is the allowable period or duration within which the Contract
Works must be completed, i.e., from the Start Date to the Intended Completion
Date as specified in the SCC.

1.8 Contractor is the juridical entity whose bid has been accepted by the Procuring
Entity and to whom this Contract to execute the Work was awarded, entered into,
and approved.

1.9 Contractor’s Bid is the signed offer or proposal submitted by the Contractor to
the Procuring Entity in response to the Bidding Documents.

1.10 Days are calendar days.

63
1.11 Dayworks are varied work inputs subject to payment on a time basis for the
Contractor’s employees and Equipment, in addition to payments for associated
Materials and Plant.

1.12 Defect is any part of the Works not constructed in accordance with this Contract.

1.13 Defects Liability Certificate is the certificate issued by Procuring Entity’s

Representative upon correction of defects by the Contractor.

1.16 Defects Liability Period is the one-year period after the issuance of the
Certificate of Completion during which the Contractor assumes the responsibilit y to
undertake the repair of any defect in or damage to the Works at his own
expense as a condition for the issuance of the Certificate of Acceptance.

1.17 Drawings are graphical presentations of the Works. They include all engineering
plans, supplementary details, shop drawings, calculations, and other information
provided or approved for the execution of this Contract.

1.18 Equipment refers to all machines, tools, facilities, supplies, appliances, and
related items required for the execution and completion of the Works provided by
the Contractor and which shall not form or are not intended to form part of the
Permanent Works.

1.19 Intended Completion Date refers to the date specified in the SCC when the
Contractor is expected to have completed the Works. The Intended Completion
Date may be revised only by the Procuring Entity’s Representative by issuing an
extension of Contract Time or an acceleration order.

1.20 Materials are all supplies, including consumables, used by the Contractor for
incorporation in the Works.

1.21 Notice to Proceed is a written notice issued by the Procuring the Procuring
Entity’s Representative to the Contractor requiring the latter to begin the Works not
later than the date specified in this Notice.

1.21 Permanent Works refer to all permanent structures and all other project features
and facilities required to be constructed and completed in accordance with this
Contract which shall be delivered to the Procuring Entity and which shall remain at
the Site after the removal of all Temporary Works.

1.22 PERT/CPM is the acronym for Program Evaluation Review Technique/Critical

Path Method and is a technique for planning, scheduling, and controlling a
project, involving a network of interrelated activities with their start and finish
times. The critical path is the longest time path through the network of activities.

1.23 Plant refers to the machinery, apparatus, and the like intended to form an integral
part of the Permanent Works.

64
 1.24 Procuring Entity is the party that engages the Contractor to carry out the Works
stated in the SCC.

1.25 Procuring Entity’s Representative refers to the HoPE or his duly authorized
representative, identified in the SCC, who shall be responsible for supervising the
execution of the Works and administering this Contract.

1.26 Site is the right-of-way or place provided by the Procuring Entity where
the Works shall be executed and any other place or places which may be
designated in the SCC, or notified to the Contractor by the Procuring Entity’s
Representative, as forming part of the Site.

1.27 Site Investigation Reports are factual and interpretative reports about the
surface and subsurface conditions at the Site, which are provided by the
Procuring Entity in the Bidding Documents.

1.28 Slippage is a delay in work execution occurring when actual

accomplishment falls below the target as measured by the difference between
the scheduled and actual accomplishment of the Works by the Contractor as
established from the work schedule. This is actually described as a percentage of
the whole Works.

1.29 Specifications mean the description of the Works to be done, qualities

of materials to be used, equipment to be installed, construction methods,
workmanship, and finished product required under this Contract.

1.30 Start Date, as specified in the SCC, is the date when the Contractor is obliged
to commence execution of the Works. It is the same as the effectivity date of
the Contract as stated in the Notice to Proceed. It does not necessarily coincide
with any of the Site Possession Dates.

1.31 Sub-Contractor is any person or organization to whom a part of the Works has
been subcontracted by the Contractor for execution, as allowed by the Procuring
Entity, but not any assignee of such person.

1.32 Temporary Works are works designed, constructed, installed, and removed
by the Contractor that are needed for the construction or installation of the
Permanent Works.

1.33 Work(s) refer to the Permanent Works and Temporary Works to be executed
by the Contractor in accordance with this Contract, including (i) the furnishing
of all labor, materials, equipment and others incidental, necessary or convenient
to the complete execution of the Works; (ii) the passing of any tests before
acceptance by the Procuring Entity’s Representative; (iii) and the carrying out
of all duties and obligations of the Contractor imposed by this Contract as
described in the SCC.

2. Interpretation
65
2.1 In interpreting the Conditions of Contract, singular also means plural, male also
means female or neuter, and the other way around. Headings have no
significance. Words have their normal meaning under the language of
this Contract unless specifically defined. The Procuring Entity’s
Representative will provide instructions clarifying queries about the Conditions
of Contract.

2.2 If sectional completion is specified in the SCC, references in the Conditions of

Contract to the Works, the Completion Date, and the Intended Completion Date
apply to any Section of the Works (other than references to the Completion Date
and Intended Completion Date for the whole of the Works).

2.3 The documents forming this Contract shall be interpreted in the following order
of priority:

a. Contract Agreement

b. Documents forming part of the Contract Agreement:

(1) Notice of Award (NOA) with the Contractor’s signed “conforme”

(2) Contractor’s Bid in the Form of Bid, including its Technical and
Financial Proposals, as calculated by the Procuring Entity
and conformed to by the Contractor through the NOA

(3) Bidding Documents (other than b(4) to b(7) below) and Bulletins

(4) Specifications

(5) Drawings

(6) Special Conditions of Contract (SCC)

(7) General Conditions of Contract (GCC)

(8) Performance Security

c. Other Documents

(1) Construction Methods

(2) Construction Schedule in the form of PERT/CPM Diagram

or Precedence Diagram and Bar Chart with S-Curve.

(3) Manpower Schedule

(4) Equipment Utilization Schedule

(5) Construction Safety and Health Program initially approved by the

HOPE
66
 (6) Contractor’s All Risk Insurance (CARI)

3. Governing Language and Law

3.1 This Contract has been executed in the English language, which shall be the
binding and controlling language for all matters relating to the meaning or
interpretation of this Contract. All correspondence and other documents
pertaining to this Contract which are exchanged by the parties shall be written
in English.

3.2 This Contract shall be interpreted in accordance with the laws of the Republic
of the Philippines.

4. Communications
Communications between parties that are referred to in these Conditions of Contract
shall be effective only when in writing. A notice shall be effective only when it is
received by the concerned party.

5. Procuring Entity’s Obligation to Deliver the Site, Materials,

Equipment, and Plans and to Obtain the Environmental Compliance
Certificate (ECC)
5.1 On the date specified in the SCC, the Procuring Entity shall grant the
Contractor possession of so much of the Site as may be required to enable it to
proceed with the execution of the Works. If the Contractor suffers delay or
incurs cost from failure on the part of the Procuring Entity to give possession
in accordance with the terms of this clause, the Procuring Entity’s
Representative shall give the Contractor a Contract Time Extension and
certify such sum as fair to cover the cost incurred, which sum shall be paid by
Procuring Entity.

5.2 If possession of a portion is not given by the date stated in SCC Clause 5.1, the
Procuring Entity will be deemed to have delayed the start of the relevant
activities. The resulting adjustments in contract time to address such delay
shall be in accordance with GCC Clause 46.

5.3 The Contractor shall bear all costs and charges for special or temporary right-
of- way required by it in connection with access to the Site. The Contractor shall
also provide at its own cost any additional facilities outside the Site required by
it for purposes of the Works.

5.4 The Contractor shall allow the Procuring Entity’s Representative and any person
authorized by the Procuring Entity’s Representative access to the Site and to any
place where work in connection with this Contract is being carried out or is
intended to be carried out.

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 5.5 The Procuring entity shall be responsible for obtaining the
Appropriate Environmental Compliance Certificate (ECC) for the Project.

6. Contractor’s Obligations
6.1 The Contractor shall carry out the Works properly and in accordance with this
Contract. The Contractor shall provide all supervision, labor, Materials, Plant and
Equipment, which may be required. All Materials and Plant on Site shall be
deemed to be the property of the Procuring Entity.

6.2 The Contractor shall commence execution of the Works on the Start Date and
shall carry out the Works in accordance with the approved PERT/CPM network
diagram submitted by the Contractor, as updated with the approval of the Procuring
Entity’s Representative, and shall complete the Works by the Intended Completion
Date.

6.3 The Contractor shall be responsible for the safety of all activities on the Site.

6.4 The Contractor shall carry out all instructions of the Procuring Entity’s
Representative that comply with the applicable laws where the Site is located.

6.5 The Contractor shall employ the key personnel, named in the Schedule of Key
Personnel in the SCC, to carry out the supervision of the Works. The Procuring
Entity will approve any proposed replacement of key personnel only if their
relevant qualifications and abilities are equal to or better than those of the personnel
listed in the Schedule.

6.6 If the Procuring Entity’s Representative asks the Contractor to remove a member of
the Contractor’s staff or work force, for justifiable cause, the Contractor shall
ensure that the person leaves the Site within seven (7) days and has no further
connection with the Work in this Contract.

6.7 During Contract implementation, the Contractor and its subcontractors shall abide at
all times by all labor laws, including child labor related enactments, and other
relevant rules.

6.8 The Contractor shall submit to the Procuring Entity for consent the name and
particulars of the person authorized to receive instructions on behalf of the
Contractor.

6.9 The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities, and the Procuring Entity during the dates given in the
schedule of other contractors particularly when they shall require access to the Site.
The Contractor shall also provide facilities and services for them during this period.
The Procuring Entity may modify the schedule of other contractors, and shall notify
the Contractor of any such modification thereto.

6.10 Should anything of historical or other interest or of significant value be

unexpectedly discovered on the Site, it shall be the property of the Procuring

68
 Entity. The Contractor shall notify the Procuring Entity’s Representative of such
discoveries and carry out the Procuring Entity’s Representative’s instructions in
dealing with them.

7. Performance Security
7.1 The Contractor shall submit its Performance Security to the Procuring Entity not
later than the date specified in the Notice of Award and shall be issued in any of
the following forms and corresponding amounts in ITB Clause 34.

7.2 The Performance Security posted in favor of the Procuring Entity shall be
forfeited in the event it is established that the Contractor is in default in any of
its obligations under the Contract.

7.3 The Performance Security shall remain valid until issuance by the Procuring
Entity of the Certificate of Final Acceptance.

7.4 The Performance Security may be released by the Procuring Entity and
returned to the Contractor after the issuance of the Certificate of Final
Acceptance, subject to the following conditions, provided that the Performance
Security is replaced by a Warranty Security against structural defects and/or
failure as provided in GCC Clause 12:

a. There are no pending claims against the Contractor or the surety

company filed by the Procuring Entity;

b. The Contractor has no pending claims for labor and materials filed
against it; and

c. Other terms specified in the SCC.

7.5 The Contractor shall post an additional Performance Security following the
amount and form specified in ITB Clause 34 to cover any cumulative increase
of more than ten percent (10%) over the original value of the contract as a result
of amendments to order or change orders, extra work orders and
supplemental agreements, as the case may be. The Contractor shall cause the
extension of the validity of the performance security to cover approved contract
time extensions.

7.6 In case of a reduction in the contract value or for partially completed Works
under the contract which are usable and accepted by the Procuring Entity the
use of which, in the judgment of the implementing agency or the Procuring
Entity, will not affect the structural integrity of the entire project, the Procuring
Entity shall allow a proportional reduction in the original performance security,
provided that any such reduction is more than ten percent (10%) and that the
aggregate of such reductions is not more than fifty percent (50%) of the
original Performance Security.

7.7 Unless otherwise indicated in the SCC, the Contractor, by entering into
69
 the Contract with the Procuring Entity, acknowledges the right of the
Procuring Entity to institute action pursuant to Act 3688 against any sub-
contractors be they an individual, firm, partnership, corporation, or association
supplying the Contractor with labor, materials and/or equipment for the
performance of this Contract.

8. Sub-Contracting
8.1 Unless otherwise provided in the SCC, sub-contracting of the Works shall be
subject to the provisions of DPWH Department Order (DO) No. 38, series
of 2015 as provided below.

8.2 All sub-contracts shall be subject to prior approval of the appropriate official
of the Procuring Entity within the limits of his delegated authority.

8.3 The Contractor may sub-contract portions of the works to such an extent as
may be approved by the Procuring Entity and stated in the SCC, provided that
the Contractor shall directly undertake, using its own resources, not less than
fift y percent (50%) of the contract works in terms of cost.

8.4. Each sub-contractor must comply with the eligibility criteria as specified in the
Eligibility Requirements (ER) for the portion of the contract works to be
sub- contracted to that sub-contractor- e.g., applicable license from the
Philippine Constructors Accreditation Board, satisfactory completion of
works similar to the portion of the contract to be subcontracted and costing at
least fifty percent (50%) of the cost of such portion, and sufficient Net
Financial Contracting Capacity, as well as minimum equipment and
manpower. This requirement does not apply to labor pakyaw contracts.

8.5 The bidder/main contractor may identify the sub-contractors to whom portions
of the contract works will be sub-contracted at any stage of the bidding process
or during contract implementation, provided that any sub-contracting requires
prior approval of the Procuring Entity. Sub-contractors identified during the
bidding may be changed during the implementation of the contract, subject to
compliance with the eligibility requirements and the approval of the Procuring
Entity.

8.6 Sub-contracting of any portion of the contract shall not relieve the main
contractor from any liability or obligation that may arise from the contract.
The main contractor shall be responsible for the acts, defaults, and negligence
of any subcontractor, its agents or workmen.

8.7 For any assignment and sub-contracting of the contract or any part
thereof without prior written approval by the concerned Head of the DPWH
Procuring Entity, the DPWH shall impose on the erring contractor, after the
termination of the contract, the penalty of suspension for one (1) year for the
first offense, and suspension of two (2) years for the second offense from
participating in the public bidding process, pursuant to the provision of
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 Appendix 11 Section 4.2 of the IRR of RA 9184, in accordance with Section
69(6) of RA 9184 and without prejudice to the imposition of additional
administrative sanctions as the internal rules of the agency may provide and/or
further criminal prosecution as provided by applicable laws.

9. Liquidated Damages

9.1 The Contractor shall pay liquidated damages to the Procuring Entity for each
day that the Completion Date is later than the Intended Completion Date. The
applicable liquidated damages is at least one-tenth (1/10) of a percent of the
cost of the unperformed portion for every day of delay. The total amount of
liquidated damages shall not exceed ten percent (10%) of the amount of the
contract. The Procuring Entity may deduct liquidated damages from payments
due to the Contractor. Payment of liquidated damages shall not affect the
Contractor. Once the cumulative amount of liquidated damages reaches ten
percent (10%) of the amount of this Contract, the Procuring Entity shall rescind
this Contract, without prejudice to other courses of action and remedies open to
it.

9.2 If the Intended Completion Date is extended after liquidated damages have been
paid, the Engineer of the Procuring Entity shall correct any overpayment
of liquidated damages by the Contractor by adjusting the next payment
certificate.

10. Site Investigation Reports

The Contractor, in preparing the Bid, shall rely on any Site Investigation Reports
referred to in the SCC supplemented by any information obtained by the Contractor.

11. Licenses and Permits

The Procuring Entity shall, if requested by the Contractor, assist it in applying
for permits, licenses or approvals, which are required for the Works. These shall include
assistance to the contractor in securing necessary quarry permits, construction permits,
access to sites, among others, from the Local Government Units concerned.

12. Contractor’s Risk and Warranty Security

12.1 The Contractor shall assume full responsibility for the Works from the
time project construction commenced up to final acceptance by the Procuring
Entity and shall be held responsible for any damage or destruction of the Works
except those occasioned by force majeure. The Contractor shall be fully
responsible for the safety, protection, security, and convenience of his
personnel, third parties, and the public at large, as well as the Works,
Equipment, installation, and the like to be affected by his construction work.

12.2 The defects liability period for infrastructure projects shall be one year
from contract completion up to final acceptance by the Procuring Entity.
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 During this period, the Contractor shall start the repair works, at his own
expense, of any damage to the Works on account of the use of materials of
inferior quality, and shall complete the repair works within ninety (90) days from
the time the HoPE has issued an order to undertake repair. In case of failure or
refusal to comply with this mandate, the Procuring Entity shall undertake such
repair works and shall be entitled to full reimbursement of expenses incurred
therein upon demand.

12.3 Unless otherwise indicated in the SCC, in case the Contractor fails to
comply with the preceding paragraph, the Procuring Entity shall forfeit its
performance security, subject its properties to attachment or garnishment
proceedings, and perpetually disqualify it from participating in any public
bidding. All payables of the GOP in his favor shall be offset to recover the costs.

12.4 After final acceptance of the Works by the Procuring Entity, the following shall
be held responsible for “Structural Defects”, i.e., major faults/flaws/deficiencies in
one or more key structural elements of the project which may lead to structural
failure of the completed elements or structure, or “Structural Failures,” i.e.,where
one or more key structural elements in an infrastructure facility fails or collapses,
thereby rendering the facility or part thereof incapable of withstanding the design
loads, and/or endangering the safety of the users or the general public:

a. Contractor – where Structural Defects/Failures arise due to faults

attributable to improper construction, use of inferior quality/substandard
materials, and any violation of the contract plans and specifications, the
contractor shall be held liable;

b. Consultants – where Structural Defects/Failures arise due to faulty and/or

inadequate design and specifications as well as construction supervision,
then the consultant who prepared the design or undertook construction
supervision for the project shall be held liable;

c. Procuring Entity’s Representatives/Project Manager/Construction

Managers and Supervisors –where the Structural Defects/Failures are due to
his/their willful intervention in altering the designs and other specifications;
negligence or omission in not approving or acting on proposed changes to
noted defects or deficiencies in the design and/or specifications; and the use
of substandard construction materials in the project;

d. Third Parties- where Structural Defects/Failures are caused by work

undertaken by them such as leaking pipes, diggings or excavations,
underground cables and electrical wires, underground tunnel, mining shaft
and the like, in which case the applicable warranty to such structure
should be levied to third parties for their construction or restoration works.

e. Users - where Structural Defects/Failures are due to abuse/misuse by the

end user of the constructed facility and/or non–compliance by a user with
the technical design limits and/or intended purpose of the same, then the
user concerned shall be held liable.
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 12.5 The warranty against Structural Defects/Failures, except those occasioned on
force majeure, shall cover the period specified in the SCC reckoned from the date
of issuance of the Certificate of Final Acceptance by the Procuring Entity.

12.6 The Contractor shall be required to put up a warranty security in the form of cash,
bank guarantee, letter of credit, GSIS or surety bond callable on demand, in
accordance with the following schedule:

Form of Warranty Security Amount of Warranty Security

1. Cash or letter of credit (LC) issued by a
Universal or Commercial Bank,
provided that the LC shall be confirmed Five Percent (5%)
by a Universal or Commercial Bank, if
issued by a foreign bank.
2. Bank guarantee confirmed by a
Ten Percent (10%)
Universal or Commercial Bank.
3. Surety bond callable on demand issued
by the GSIS or a surety or insurance
company accredited by the Insurance Thirty Percent (30%)
Commission as authorized to issue such
security.

12.7 The warranty security shall be stated in Philippine Pesos and shall remain
effective for one year from the date of issuance of the Certificate of
Final Acceptance by the Procuring Entity, and returned only after the lapse of
said one year period.

12.8 In case of structural defects/failure occurring during the applicable

warranty period provided in GCC Clause 12.5, the Procuring Entity shall
undertake the necessary restoration or reconstruction works and shall be entitled
to full reimbursement by the parties found to be liable for expenses incurred
therein upon demand, without prejudice to the filing of appropriate
administrative, civil, and/or criminal charges against the responsible persons as
well as the forfeiture of the warranty security posted in favor of the Procuring
Entity.

13. Liability of the Contractor

Subject to additional provisions, if any, set forth in the SCC, the Contractor’s
liabilit y under this Contract shall be as provided by the laws of the Republic of the
Philippines.

14. Procuring Entity’s Risk

From the Start Date until the Certificate of Acceptance is issued, the following are
73
 risks of the Procuring Entity:

a. The risk of personal injury, death, or loss of or damage to property (excluding the
Works, Plant, Materials, and Equipment) which are due to:

(1) any type of use or occupation of the Site authorized by the Procuring
Entity after the official acceptance of the works; or

(2) negligence, breach of statutory duty, or interference with any legal

right by the Procuring Entity or by any person employed by or
contracted to him except the Contractor.

b. The risk of damage to the Works, Plant, Materials, and Equipment to the
extent that it is due to a fault of the Procuring Entity or in the Procuring Entity’s
design, or due to war or radioactive contamination directly affecting the
Philippines.

15. Insurance
15.1 The Contractor shall, under his name and at his own expense, obtain and
maintain, for the duration of this Contract, the following insurance coverage:

a. Contractor’s All Risk Insurance;

b. Transportation to the project Site of Equipment, Machinery, and

Supplies owned by the Contractor;

c. Personal injury or death of Contractor’s employees; and

d. Comprehensive insurance for third party liability to Contractor’s direct

or indirect act or omission causing damage to third persons.

15.2 The CARI shall cover the value of the completed portions of the Works. It
shall not, however, cover any damage to the Works whose value is not more
than ten percent (10%) of the Total Contract Cost, as this is to be
absorbed by the Contractor. The CARI shall, therefore, start with nil at the
beginning of Contract execution. It shall then be increased over time as the
Works progresses so that at any time it covers the value of the portions of the
Works actually completed.

15.3 The Contractor shall provide evidence to the Procuring Entity’s

Representative that the insurance required under this Contract has been effected
and shall, within a reasonable time, provide a copy of the insurance policy to the
Procuring Entity’s Representative.

15.4 The Contractor shall notify the insurer of changes in the nature, extent,
or program for the execution of the Works and ensure the adequacy of the
insurance at all times in accordance with the terms of this Contract and shall
produce to the Procuring Entity’s Representative the insurance policy in
force including the receipts for payment of the current premiums.
74
 15.5 If the Contractor fails to obtain and keep in force the insurance which it
is required to obtain under the terms of this Contract, the Procuring Entity may
obtain and keep in force any such insurance and pay such premiums as may be
necessary for the purpose. From time to time, the Procuring Entity may
deduct the amount it shall pay for said premiums including twenty five percent
(25%) therein from any monies due, or which may become due, to the
Contractor, without prejudice to the Procuring Entity exercising its right to
impose other sanctions against the Contractor pursuant to the provisions of this
Contract.

15.6 In the event the Contractor fails to observe the above safeguards, the Procuring
Entity may, at the Contractor’s expense, take whatever measure is deemed
necessary for its protection and that of the Contractor’s personnel and
third parties, and/or order the interruption of dangerous Works. In
addition, the

Procuring Entity may refuse to make the payments under GCC Clause 41
until the Contractor complies with this Clause.

15.7 The Contractor shall immediately replace the insurance policy obtained as
required in this Contract, without need of the Procuring Entity’s demand, with a
new policy issued by a new insurance company acceptable to the Procuring
Entity for any of the following grounds:

a. The issuer of the insurance policy to be replaced

has: (1) become bankrupt;

(2) been placed under receivership or under a management

committee; (3) been sued for suspension of payment; or

(4) been suspended by the Insurance Commission and its license to

engage in business or its authority to issue insurance
policies cancelled; or

b. Reasonable grounds exist that the insurer may not be able, fully
and promptly, to fulfill its obligation under the insurance policy.

16. Termination for Default of Contractor

16.1 The Procuring Entity shall terminate this Contract for default when any of the
following conditions attend its implementation:

a. Due to the Contractor’s fault and while the Works are on-going, it
has incurred a negative slippage of fifteen percent (15%) or more
in accordance with Presidential Decree 1870; or

b. Due to the Contractor’s fault and after the Contract time has expired, it
75
 has incurred a negative slippage of ten percent (10%) or more in
the completion of the Works; or

c. The Contractor:

(1) abandons the Contract Works, refuses or fails to comply with a valid
instruction of the Procuring Entity or fails to proceed
expeditiously and without delay despite a written notice by the
Procuring Entity;

(2) after receiving a Notice from the Procuring Entity’s

Representative that failure to correct a particular Defect is a
fundamental breach of Contract, fails to correct the Defect within a
reasonable period of time determined by the Procuring Entity’s
Representative;

(3) does not actually have on the Site the minimum essential equipment
listed in the Bid necessary to prosecute the Works in accordance
with the approved PERT/CPM network diagram and equipment
utilization schedule as required under the Contract;

(4) does not execute the Works in accordance with this Contract or
persistently or flagrantly neglects to carry out its obligations under this
Contract;

(5) neglects or refuses to remove materials or to perform a new work that

has been rejected as defective or unsuitable; or

(6) sub-contracts any part of this Contract without approval by the

Procuring Entity.

d. The Contractor causes a fundamental breach of this Contract. Fundamental

breaches of Contract shall include, but shall not be limited to, the
following:

(1) The Contractor stops work for twenty eight (28) days when no
stoppage of work is shown on the current Program of Work and the
stoppage has not been authorized by the Procuring Entity’s
Representative.

(2) The Contractor is declared bankrupt or insolvent as determined

with finality by a court of competent jurisdiction. In this event,
termination will be without compensation to the Contractor,
provided that such termination will not prejudice or affect any right
of action or remedy which has accrued or will accrue thereafter to
the Procuring Entity and/or the Contractor. In the case of the
Contractor's insolvency, any Contractor's Equipment which the
Procuring Entity instructs in the notice is to be used until the
completion of the Work.
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 (3) The Procuring Entity’s Representative gives Notice that failure to
correct a particular Defect is a fundamental breach of Contract and
the Contractor fails to correct it within a reasonable period of time
determined by the Procuring Entity’s Representative.

(4) The Contractor does not maintain a Security, which is required.

(5) The Contractor has delayed the completion of the Works by the
number of days for which the maximum amount of liquidated
damages can be paid, as defined in the GCC Clause 9.

(6) In case it is determined prima facie by the Procuring Entity that the
Contractor has engaged, before or during the implementation of the
contract, in unlawful deeds and behaviors relative to contract
acquisition and implementation, such as, but not limited to, the
following:

(a) corrupt, fraudulent, collusive, coercive, and obstructive

practices as defined in ITB Clause 3.10, unless otherwise
specified in the SCC;

(b) drawing up or using forged documents;

(c) using adulterated materials, means or methods, or engaging in

production contrary to rules of science or the trade; and

(d) any other act analogous to the foregoing

The Procuring Entity or the Funding Source will seek to

impose the maximum civil, administrative and/or criminal
penalties available under the applicable law on individuals and
organizations deemed to be involved with corrupt, fraudulent, or
coercive practices.

16.2 When persons from the Procuring Entity gives notice of a fundamental breach to
the Procuring Entity’s Representative in order to terminate the existing
contract for a cause other than those listed under GCC Clause 16.1-e, the
Procuring Entity’s Representative shall decide whether the breach is
fundamental or not.

16.3 If this Contract is terminated, the Contractor shall stop work immediately,
make the Site safe and secure, and leave the Site as soon as reasonably possible.

16.4 All materials on the Site, Plant, Equipment, and Works shall be deemed to be
the property of the Procuring Entity if this Contract is terminated because of the
Contractor’s default.

17. Termination for Default of Procuring Entity

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 17.1 The Contractor may terminate this Contract with the Procuring Entity when
any of the following conditions attend its implementation:

a. If the works are completely stopped for a continuous period of at least

sixty (60) calendar days through no fault of the Contractor, due to any o f
the following reasons:

(1) Failure of the Procuring Entity to deliver, within a reasonable

time, supplies, materials, right-of-way, or other items it is
obligated to furnish under the terms of this Contract; or

(2) The prosecution of the Work is disrupted by adverse peace and

order situation, as certified by the Armed Forces of the
Philippines Provincial Commander and approved by the
Secretary of National Defense.

b. The Procuring Entity causes a fundamental breach of this Contract.

Fundamental breaches of Contract shall include, but shall not be limited
to, the following:

(1) The Procuring Entity’s Representative instructs the Contractor to

delay the progress of the Works, and the instruction is not
withdrawn within twenty eight (28) days.

(2) A payment certified by the Procuring Entity’s Representative is

not paid by the Procuring Entity to the Contractor within eight y
four (84) days from the date of the Procuring Entity’s
Representative’s certificate.

17.2 When persons from the Contractor gives notice of a fundamental breach to the
Procuring Entity’s Representative in order to terminate the existing contract for
a cause other than those listed under GCC Clause 17.1-b, the Procuring Entity’s
Representative shall decide whether the breach is fundamental or not.

18. Termination for Convenience

The Procuring Entity may terminate this Contract, in whole or in part, at any time for
its convenience. The HoPE may terminate this Contract for the convenience of
the Procuring Entity if he has determined the existence of conditions that make
Project Implementation economically, financially or technically impractical and/or
unnecessary, such as, but not limited to, fortuitous event(s) or changes in law
and National Government policies.

19. Procedure for Termination of Contracts

19.1 The following provisions shall govern the procedures for the termination of
this Contract:

a. Verification. Upon receipt of a written report of acts or causes which

78
 may constitute grounds for termination as aforementioned, or upon its
own initiative, the Procuring Entity’s Representative shall, within a
period of seven (7) calendar days, verify the existence of such ground(s)
and cause the execution of a Verified Report, with all relevant evidence
attached.

b. Notice of Termination. Upon recommendation by the Procuring

Entity’s Representative, the HoPE shall terminate this Contract only by a
written Notice of Termination to the Contractor. The Notice shall state:

(1) that this Contract is being terminated for any of the grounds
aforementioned, and a statement of the acts that constitute
the ground(s).

(2) the extent of termination, whether in whole or in part;

(3) an instruction to the Contractor to show cause as to why this

Contract should not be terminated; and

(4) special instructions of the Procuring Entity, if any.

The Notice of Termination shall be accompanied by a copy of the Verified

Report.

c. Show Cause. Within a period of seven (7) calendar days from receipt of
the Notice of Termination, the Contractor shall submit to the HoPE a
verified position paper showing cause as to why the Contract should not
be terminated. If the Contractor fails to do so, the HoPE shall issue a
written Notice of Decision confirming the Notice of Termination of the
Contract.

d. Withdrawal of Notice of Termination. The Procuring Entity may, at

anytime before receipt of the Contractor’s verified position paper,
withdraw the Notice of Termination if it is determined that certain items or
works subject of the Notice had been completed, delivered, or performed
before the Contractor’s receipt of the Notice.

e. Notice of Decision. Within a non-extendible period of ten (10) calendar

days from receipt of the verified position paper, the HoPE shall serve the
Contractor his written Notice of Decision to confirm or withdraw the Notice
of Termination. If the Notice of Decision is to confirm the Notice of
Termination, then this Contract is deemed terminated from receipt by the
Contractor of the said Notice of Decision. The termination shall be based
only on the grounds stated in the Notice of Termination.

f. Review Committee. The HoPE may create a Contract Termination Review

Committee (CTRC) to assist him in the discharge of this function. All

79
 decisions recommended by the CTRC shall be subject to his approval.

19.2 Pursuant to Section 69(f) of RA 9184 and without prejudice to the imposition of
additional administrative sanctions as the internal rules of the agency may provide
and/or further criminal prosecution as provided by applicable laws, the Procuring
Entity shall impose on contractors after the termination of the contract the penalt y of
suspension for one (1) year for the first offense, suspension for two (2) years for
the second offense from participating in the public bidding process, for
violations committed during the contract implementation stage, which include but
not limited to the following:

a. Failure of the contractor, due solely to his fault or negligence, to mobilize

and start work or performance within the specified period in the Notice to
Proceed (“NTP”);

b. Failure by the contractor to fully and faithfully comply with its contractual
obligations without valid cause, or failure by the contractor to comply
with any written lawful instruction of the Procuring Entity or its
representative(s) pursuant to the implementation of the contract. For the
procurement of infrastructure projects or consultancy contracts, lawful
instructions include but are not limited to the following:

(1) Employment of competent technical personnel, competent

engineers and/or work supervisors;

(2) Provision of warning signs and barricades in accordance wit h

approved plans and specifications and contract provisions;

(3) Stockpiling in proper places of all materials and removal fro m

the project site of waste and excess materials, including broken
pavement and excavated debris in accordance with approved
plans and specifications and contract provisions;

(4) Deployment of committed equipment, facilities, support staff and

manpower; and

(5) Renewal of the effectivity dates of the performance securit y

after its expiration during the course of contract implementation.

c. Assignment and subcontracting of the contract or any part thereof or

substitution of key personnel named in the proposal without prior
written approval by the Procuring Entity.

d. Poor performance by the contractor or unsatisfactory quality and/or

progress of work arising from his fault or negligence as reflected in the
Constructor's Performance Evaluation System (“CPES”) rating sheet. In
the absence of the CPES rating sheet, the existing performance
monitoring system of the Procuring Entity shall be applied. Any of the
80
 following acts by the Contractor shall be construed as poor performance:

(1) Negative slippage of 15% and above within the critical path of
the project due entirely to the fault or negligence of the
contractor; and

(2) Quality of materials and workmanship not complying with the

approved specifications arising from the contractor's fault or
negligence.

e. Willful or deliberate abandonment or non-performance of the project

or contract by the contractor resulting to substantial breach thereof
without lawful and/or just cause.

In addition to the penalty of suspension, the Performance Security posted by

the contractor shall also be forfeited.

20. Force Majeure and Release from Performance

20.1 For purposes of this Contract the terms “force majeure” and “fortuitous
event” may be used interchangeably. In this regard, a fortuitous event or force
majeure shall be interpreted to mean an event which the Contractor could
not have foreseen, or which though foreseen, was inevitable. It shall not
include ordinary unfavorable weather conditions, and any other cause the effects
of which could have been avoided with the exercise of reasonable diligence by
the Contractor.

20.2 If this Contract is discontinued by an outbreak of war or by any other

event entirely outside the control of either the Procuring Entity or the
Contractor, the Procuring Entity’s Representative shall certify that this Contract
has been discontinued. The Contractor shall make the Site safe and stop work as
quickly as possible after receiving this certificate and shall be paid for all
portions of the Works carried out before receiving it and for any part of the
Works carried out afterwards to which a commitment was made.

20.3 If the event continues for a period of eighty four (84) days, either party may
give the other a Notice of Termination, which shall take effect twenty eight (28)
days after the receipt of the Notice.

20.4 After termination, the Contractor shall be entitled to payment of the

unpaid balance of the value of the Works executed and of the materials
and Plant reasonably delivered to the Site, adjusted by the following:

a. Any sum to which the Contractor is entitled under GCC Clause 28

b. The cost of his suspension and demobilization.

c. Any sum to which the Procuring Entity is entitled.

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 20.5 The net balance due shall be paid or repaid within a reasonable time period from
the date of the Notice of Termination.

21. Payment on Termination

21.1 If the Contract is terminated because of a fundamental breach of Contract by the
Contractor, the Procuring Entity’s Representative shall issue a certificate for the
value of the work done and materials ordered less advance payments received
up to the date of the issue of the certificate and less the value of the work not
completed. Additional liquidated damages shall not apply. If the total amount
due to the Procuring Entity exceeds any payment due to the Contractor, the
difference shall be a debt payable to the Procuring Entity.

21.2 If the Contract is terminated for the Procuring Entity’s convenience or because
of a fundamental breach of Contract by the Procuring Entity, the Procuring
Entity’s Representative shall issue a certificate for the value of the work done,
materials ordered, the reasonable cost of removal of Contractor’s
equipment, and the Contractor’s costs of protecting and securing the Works,
less advance payments received up to the date of the certificate.

21.3 The net balance due shall be paid or repaid within twenty eight (28) days fro m
the notice of termination.

21.4 If the Contractor has terminated the Contract under GCC Clause 17 or 18, the
Procuring Entity shall promptly return the Performance Security to the
Contractor.

22. Resolution of Disputes

22.1 If any dispute or difference of any kind whatsoever shall arise between the
parties in connection with the implementation of the contract covered by RA
9184 and its IRR, the parties shall make every effort to resolve amicably such
dispute or difference by mutual consultation.

22.2 If the Contractor believes that a decision taken by the Procuring Entity’s
Representative was either outside the authority given to the Procuring Entity’s
Representative by this Contract or that the decision was wrongly taken,
the decision shall be referred to the Arbiter indicated in the SCC within fourteen
(14) days of the notification of the Procuring Entity’s Representative’s decision.

22.3 Any and all disputes arising from the implementation of this Contract covered
by the RA 9184 and its IRR shall be submitted to arbitration in the Philippines
according to the provisions of RA 876, otherwise known as the “Arbitration
Law” and RA 9285, otherwise known as the “Alternative Dispute Resolution
Act of
2004. However, disputes that are within the competence of the Construction
Industry Arbitration Commission to resolve shall be referred thereto. The
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 process of arbitration shall be incorporated as a provision in this Contract that
will be executed pursuant to the provisions of RA 9184 and its IRR. By
mutual agreement, however, the parties may agree in writing to resort to other
alternative modes of dispute resolution.

23. Suspension of Loan, Credit, Grant, or Appropriation

In the event that the Funding Source suspends the Loan, Credit, Grant, or Appropriation
to the Procuring Entity, from which part of the payments to the Contractor are being
made:

a. The Procuring Entity is obligated to notify the Contractor of such suspension

within seven (7) days of having received the suspension notice.

b. If the Contractor has not received sums due it for work already done within
forty five (45) days from the time the Contractor’s claim for payment has been
certified by the Procuring Entity’s Representative, the Contractor may
immediately issue a suspension of work notice in accordance with GCC Clause
44.

24. Procuring Entity’s Representative’s Decisions

24.1 Except where otherwise specifically stated, the Procuring Entity’s
Representative shall decide contractual matters between the Procuring Entity
and the Contractor in the role representing the Procuring Entity.

24.2 The Procuring Entity’s Representative may delegate any of his duties and
responsibilities to other people, except to the Arbiter, after notifying the
Contractor, and may cancel any delegation after notifying the Contractor.

25. Approval of Drawings and Temporary Works by Procuring Entity’s

Representative
25.1 All Drawings prepared by the Contractor for the execution of the Temporary
Works are subject to prior approval by the Procuring Entity’s
Representative before their use.

25.2 The Contractor shall be responsible for the design of Temporary Works.

25.3 The Procuring Entity’s Representative’s approval shall not alter the Contractor’s
responsibility for the design of the Temporary Works.

25.4 The Contractor shall obtain approval by third parties of the design of the
Temporary Works, when required by the Procuring Entity.

26 Acceleration Ordered by Procuring Entity’s Representative

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 26.1 When the Procuring Entity wants the Contractor to finish the Works before the
Intended Completion Date, the Procuring Entity’s Representative shall obtain a
priced proposal for achieving the necessary acceleration from the Contractor. If
the Procuring Entity accepts these proposals, the Intended Completion Date
will be adjusted accordingly and confirmed by both the Procuring Entity and
the Contractor.

26.2 If the Contractor’s Financial Proposals for an acceleration are accepted by the Procuring
Entity, they are incorporated in the Contract Price and treated as a Variation.

27. Extension of Intended Completion Date

27.1 The Procuring Entity’s Representative shall extend the Intended Completion
Date if a Variation Order is issued which makes it impossible for the Intended
Completion Date to be achieved by the Contractor without taking steps to
accelerate the remaining work, which would cause the Contractor to incur
additional costs. No payment shall be made for any event which may warrant
the extension of the Intended Completion Date.

27.2 The Procuring Entity’s Representative shall decide whether and by how much to
extend the Intended Completion Date within twenty one (21) days of the
Contractor asking the Procuring Entity’s Representative for a decision
thereto after fully submitting all supporting information. If the Contractor has
failed to give an early warning of a delay or has failed to cooperate in dealing
with a delay, the delay by this failure shall not be considered in assessing the
new Intended Completion Date.

28. Contractor’s Right to Claim

If the Contractor incurs a cost as a result of any of the events under GCC Clause 13,
the Contractor shall be entitled to the amount of such cost. If as a result of any of the
said events, it is necessary to change the Works, this shall be dealt with as a Variation
Order.

29. Dayworks
29.1 Subject to GCC Clause 44 on Variation Orders, and if applicable as indicated
in the SCC, the Dayworks rates in the Contractor’s Bid shall be used for small
additional amounts of work only when the Procuring Entity’s Representative has
given written instructions in advance for additional work to be paid for in
that way.

29.2 All work to be paid for as Dayworks shall be recorded by the Contractor on
forms approved by the Procuring Entity’s Representative. Each completed form
shall be verified and signed by the Procuring Entity’s Representative within
two days of the work being done.
29.3 The Contractor shall be paid for Dayworks subject to obtaining signed Dayworks
forms.

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30. Early Warning
30.1 The Contractor shall warn the Procuring Entity’s Representative at the earliest
opportunity of specific likely future events or circumstances that may adversely
affect the quality of the Work, increase the Contract Price, or delay the
execution of the Works. The Procuring Entity’s Representative may require the
Contractor to provide an estimate of the expected effect of the future event or
circumstance on the Contract Price and Completion Date. The estimate shall
be provided by the Contractor as soon as reasonably possible.

30.2 The Contractor shall cooperate with the Procuring Entity’s Representative
in making and considering proposals for how the effect of such an event or
circumstance can be avoided or reduced by anyone involved in the Work and in
carrying out any resulting instruction of the Procuring Entity’s Representative.

31. Program of Work

31.1 Within the time stated in the SCC, the Contractor shall submit to the Procuring
Entity’s Representative for approval a Program of Work showing the general
methods, arrangements, order, and timing for all the activities in the
Works, including a PERT/CPM network diagram.

31.2 An update of the Program of Work shall the show the actual progress achieved
on each activity and the effect of the progress achieved on the timing of
the remaining work, including any changes to the sequence of the activities.

31.3 The Contractor shall submit to the Procuring Entity’s Representative for
approval an updated Program of Work at intervals no longer than the period
stated in the

SCC. If the Contractor does not submit an updated Program of Work within
this period, the Procuring Entity’s Representative may withhold the amount
stated in the SCC from the next payment certificate and continue to withhold
this amount until the next payment after the date on which the overdue
Program of Work has been submitted.

31.4 The Procuring Entity’s Representative’s approval of the Program of Work

shall not alter the Contractor’s obligations. The Contractor may revise the
Program of Work and submit it to the Procuring Entity’s Representative again at
any time. A revised Program of Work shall show the effect of any approved
Variations.

31.5 When the Program of Work is updated, the Contractor shall provide the
Procuring Entity’s Representative with an updated cash flow forecast. The
cash flow forecast shall include different currencies, as defined in the Contract,
converted as necessary using the Contract exchange rates.

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 31.6 All Variations shall be included in updated Program of Work produced by the
Contractor.

32. Management Conferences

32.1 Either the Procuring Entity’s Representative or the Contractor may require
the other to attend a Management Conference. The Management Conference
shall review the plans for remaining work and deal with matters raised in
accordance with the early warning procedure.

32.2 The Procuring Entity’s Representative shall prepare the minutes of Management
Conferences and provide copies of the minutes to those attending the
Conference. The responsibility of the parties for actions to be taken shall be
decided by the Procuring Entity’s Representative either at the Management
Conference or after the Management Conference and stated in writing to all
who attended the Conference.

33. Bill of Quantities

33.1 The Bill of Quantities(BOQ), shown in ANNEX II-1.1Jof these Bidding
Documents, shall contain the items of work for the construction, installation,
testing, and commissioning of the Works to be done by the Contractor.

33.2 The BOQ is used to calculate the Contract Price. The Contractor shall be paid
for the actual quantity of each pay item, certified by the Procuring Entity’s
Representative as accomplished, at the unit price in the Bill of Quantities for
that item.

33.3 If the final quantity of any pay item accomplished differs from the
original quantity in the BOQ for that item and is not more than twenty five
percent (25%) of that original quantity, provided the aggregate changes for all
work items do not exceed ten percent (10%) of the Contract Price, the Procuring
Entity’s Representative shall make the necessary adjustments to allow for the
changes, subject to applicable laws, rules, and regulations.

33.4 If requested by the Procuring Entity’s Representative, the Contractor shall

provide the Procuring Entity’s Representative a detailed cost breakdown of any
unit price or rate in the BOQ.

34. Instructions, Inspections and Audits

34.1 The Procuring Entity’s personnel shall at all reasonable times during
construction of the Works be entitled to examine, inspect, measure and test the
materials and workmanship, and to check the progress of the construction.

34.2 If the Procuring Entity’s Representative instructs the Contractor to carry out a
test not specified in the Specifications to check whether any work has a defect
and the test shows that it does, the Contractor shall pay for the test and any
samples. If there is no defect, the test shall be a Compensation Event.
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 34.3 The Contractor shall permit the Funding Source named in the SCC to inspect
the accounts and records of the Contractor relating to its performance and to
have them audited by auditors approved by the Funding Source, if so required
by the Funding Source.

35. Identification of Defects

The Procuring Entity’s Representative shall check the Contractor’s work and notify the
Contractor of any Defects that are found. Such checking shall not affect the
Contractor’s responsibilities. The Procuring Entity’s Representative may instruct the
Contractor to uncover Defects and test any work that the Procuring Entity’s
Representative considers below standard and defective.

36. Cost of Repairs

Loss or damage to the Works or Materials to be incorporated in the Works between the
Start Date and the end of the Defects Liability Period shall be remedied by the
Contractor at the Contractor’s expense if the loss or damage arises from the
Contractor’s acts or omissions.

37. Correction of Defects

37.1 The Procuring Entity’s Representative shall give notice to the Contractor of any
defects before the end of the Defects Liability Period, which is one (1) day fro m
the Completion Date up to the date of issuance of the Certificate of Acceptance
by the Procuring Entity.

37.2 Every time notice of a Defect is given, the Contractor shall correct the notified
defect within the length of time specified in the Procuring Entity’s
Representative’s notice.

37.3 The Contractor shall correct the Defects which it notices itself before the end
of the Defects Liability Period.

37.4 The Procuring Entity’s Representative shall certify that all Defects have been
corrected. If the Procuring Entity’s Representative considers that correction of a
Defect is not essential, he can request the Contractor to submit a quotation for
the corresponding reduction in the Contract Price. If the Procuring Entity’s
Representative accepts the quotation, the corresponding change shall be
covered by a Variation Order.

38. Uncorrected Defects

38.1 The Procuring Entity shall give the Contractor at least fourteen (14) days notice
of its intention to use a third party to correct a Defect. If the Contractor itself
does not correct the Defect within that period, the Procuring Entity may
have the Defect corrected by the third party. The cost of the correction will be

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 deducted from the Contract Price.

38.2 The use of a third party to correct Defects that are uncorrected by the Contractor
shall in no way relieve the Contractor of its liabilities and warranties under the
Contract.

39. Advance Payment

39.1 The Procuring Entity shall, upon a written request of the Contractor which
shall be submitted as a Contract document, make an Advance Payment to
the Contractor in an amount not to exceed fifteen percent (15%) of the total
Contract Price, to be made in lump sum or, at most, two installments
according to a schedule specified in the SCC. The advance payment, if
requested in two installments, shall be subject to the following prerequisites:

a. The first installment shall require the written request of the Contractor
and submission of the instrument prescribed in GCC Clause 39.2.

b. The second installment shall require a certification of the Project

Engineer of the Procuring Entity that the Contractor has mobilized major
equipment according to the approved Equipment Utilization Schedule.

39.2 The Advance Payment shall be made only upon the submission by the
Contractor to and acceptance by the Procuring Entity of an irrevocable
standby letter of credit of equivalent value from a commercial bank, a bank
guarantee or a surety bond callable upon demand, issued by a surety or
insurance company duly licensed by the Insurance Commission and confirmed
by the Procuring Entity.

39.3 The Advance Payment shall be repaid by the Contractor by deducting, from
periodic progress payments to be made to the Contractor, a percentage equal
to the percentage of the total Contract Price used for the Advance Payment.

39.4 The Contractor may reduce its standby letter of credit or guarantee instrument
by the amounts refunded by the Monthly Certificates in the advance payment.

40. Monthly Statements or Progress Billings

40.1 The Contractor shall submit to the Procuring Entity’s Representative, after the
end of each month, a Statement of Work Accomplished (SWA) or Progress
Billing, showing the amounts which the Contractor consider itself to be entitled
up to the end of the month, to cover:

a. the cumulative value of the Works it executed to date, based on the

items in the Bill of Quantities; and

b. adjustments made for approved Variation Orders executed.

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 40.2 Except as otherwise stipulated in the SCC, materials and equipment delivered
on the site but not completely put in place shall not be included for payment.

41. Monthly Certificates and Progress Payments

41.1 The Procuring Entity’s Representative shall check the Contractor’s monthly SWA
and certify the amount to be paid to the Contractor.

41.2 The Procuring Entity’s Representative shall check the Contractor’s monthly
statement and certify the amount to be paid to the Contractor.

41.3 The value of Work executed shall:

a. be determined by the Procuring Entity’s Representative;

b. comprise the value of the quantities of the items in the Bill of

Quantities completed; and

c. include the valuations of approved variations.

41.4 The Procuring Entity’s Representative may exclude any item certified in a
previous certificate or reduce the proportion of any item previously certified
in any certificate in the light of later information.

41.5 The Procuring Entity’s Representative shall deduct the following from the
certified gross amounts to be paid, resulting in the net amount payable to the
Contractor as Progress Payment:

a. Cumulative value of the Work previously certified and paid for.

b. Portion of the advance payment to be recouped for the month under

the present certificate.

c. Retention money in accordance with GCC Clause 42.

d. Amount to cover approved third party liabilities.

e. Amount to cover uncorrected Defects in the Works.

f. Value of any work item presently certified but already paid for under
an earlier certification.

41.6 The Procuring Entity shall pay the Contractor the said net amounts certified
by the Procuring Entity’s Representative within twenty eight (28) days from the
date each certificate was issued. No payment of interest for delayed payments
and adjustments shall be made by the Procuring Entity.

41.7 The first progress payment may be paid by the Procuring Entity to the
Contractor provided that at least twenty percent (20%) of the work has been
89
 accomplished as certified by the Procuring Entity’s Representative.

41.8 Items of the Works for which a price of “0” (zero) has been entered will not
be paid for by the Procuring Entity and shall be deemed covered by other rates
and prices in the Contract.

41.9 The Procuring Entity shall pay the Contractor a cumulative gross amount not
exceeding ninety percent (90%) of the total Contract price, since the remainder
shall serve as the ten percent (10%) retention money, as provided in GCC
Clause
42.

42. Retention
42.1 The Procuring Entity shall retain from each progress payment ten percent
(10%) of such payment, referred to as the “retention money.” Such retention
money shall be based on the total amount due to the Contractor prior to any
deduction and shall be retained from every Progress Payment until fifty percent
(50%) of the value of the Works, as determined by the Procuring Entity, is
completed. If, after fifty percent (50%) completion, the Works are
satisfactorily done and on schedule, no additional retention shall be made;
otherwise, the ten percent (10%) retention shall again be imposed using the rate
specified therefor.

42.2 The total retention money shall be due for release upon final acceptance of the
Works. The Contractor may, however, request the substitution of the retention
money for each progress billing with an irrevocable standby letter of credit from
a commercial bank, bank guarantee and/or surety bond callable on demand, of
amounts equivalent to the retention money substituted for and in a form
acceptable to the Procuring Entity. The Procuring Entity shall allow such
substitution provided that the Contract is on schedule and is satisfactorily
undertaken. The said irrevocable standby letter of credit, bank guarantee and/or
surety bond, to be posted in favor of the Procuring Entity, shall be valid for a
duration to be determined by the Procuring Entity and shall answer for
the purpose for which the retention is intended, i.e., to cover uncorrected
discovered Defects and third party liabilities.

42.3 On completion of the whole Works, the Contractor may substitute

retention money with an “on demand” Bank guarantee in a form
acceptable to the Procuring Entity.

43. Variation Orders

43.1 Variation Orders (VOs) shall be subject to the provisions of Annex E of RA
9184- IRR and DPWH DO 28, series of 2015. may be issued by the Procuring
Entity to cover any increase or decrease in quantities, including the introduction
of new work items not included in the original Contract or reclassification of
work items due to change of plans, design or alignment to suit actual
90
 field conditions, result ing in disparity between the preconstruction plans
used for purposes of bidding and the “as staked plans” or construction
drawings prepared after a joint survey by the Contractor and the Procuring
Entity after award of the Contract. The cumulative amount of the positive or
additive VOs, however, shall not exceed ten percent (10%) of the original
Contract cost. The addition or deletion of works shall be within the general
scope of the Contract as bid and awarded. The scope of the Works shall not be
reduced so as to accommodate a positive VO. .

43.2 A deductive VO may be allowed only if it would not significantly impair the
functionality of the original design, i.e., it must not reduce the size of the
facility by more than ten percent (10%) of the original scope (e.g., shortening of
road length) or must not make the facility unsafe (e.g., removal of guard rails)
or structurally unstable (e.g., removal of a column) or unusable (e.g., removal
of a bridge abutment).

43.3 A VO in the form of a Change Order may be issued by the Procuring Entity to
cover any increase or decrease in quantities of original Work items in the
Contract.

43.4 A VO in the form an Extra Work Order may be issued by the Procuring Entit y
to cover the introduction of new work necessary for the completion,
improvement or protection of the project which were not included as items of
work in the original Contract, such as where there are subsurface or latent
physical conditions at the Site differing materially from those indicated in the
Contract, or where there are duly unknown physical conditions at the Site of
an unusual nature differing materially from those ordinarily encountered and
generally recognized as inherent in the Works or character provided for in the
Contract.

43.5 Any cumulative positive VO beyond ten percent (10%) shall be the subject of
another contract to be bid out if the works are separable from the
original Contract.

43.6 In claiming for any VO, the Contractor shall, within seven (7) calendar days
after such work has been commenced or after the circumstances leading to such
condition(s) leading to the extra cost, and within twenty-eight (28) calendar days
deliver a written communication giving full and detailed particulars of any extra
cost in order that it may be investigated at that time. Failure to provide either of
such notices in the time stipulated shall constitute a waiver by the contractor for
any claim. The Contractor shall not “accumulate” claims for VOs before
submitting them to the Procuring Entity for investigation and processing.

43.7 The preparation and submission of VOs shall be as follows:

a. If the Procuring Entity’s Representative/Project Engineer finds that

a Variation Order is necessary, he shall prepare the proposed Order,
accompanied with the Notice submitted by the Contractor, the plans

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 therefor, his computations on the quantities of the additional, reduced or
modified works involved per item indicating the specific stations where
such works are needed, the date of his inspections and
investigations thereon, and the log book thereof, and a detailed estimate
of the unit cost of such items of work, together with his justifications for
the Variation Order, and shall submit the same to the HoPE for approval.

b. The HoPE or his duly authorized representative, upon receipt of

the proposed Change Order or Extra Work Order, shall immediately
instruct the appropriate technical staff or office of the Procuring Entit y
to conduct an on-the-spot investigation to verify the need for the Work
to be prosecuted and to review the proposed Change Order or Extra
Work Order.

c. The technical staff or appropriate office of the Procuring Entity

shall submit a report of their findings and recommendations, together
with the supporting documents, to the HOPE or his duly authorized
representative for consideration.

d. The HoPE or his duly authorized representative, acting upon

the recommendation of the technical staff or appropriate office of
the Procuring Entity, shall approve the Change Order or Extra Work
Order, after being satisfied that the same is justified, necessary, and in
order.

d. The timeframe for the processing of VO from the preparation up to

the approval by the HoPE concerned shall not exceed thirty (30)
calendar days.

43.8 Work under VOs shall be valued and paid as follows:

a. At the unit prices for the same items in this Contract.

b. In the absence of unit prices for the same items rates in this Contract,
at prices or rates obtained from those of similar or related items in
this Contract.

c. Failing the above, at appropriate new unit prices or rates equal to or

lower than current market rates and to be agreed upon by both parties
and approved by the HoPE.

44. Punch List

Once the Contract reaches an accomplishment of ninety five percent (95%) of the total
Contract Works, the Procuring Entity may create an inspectorate team to make a
preliminary inspection and submit a punch list to the Contractor in preparation for
the total completion of the Works. The punch list shall contain, among other things, the
remaining unfinished portions of the Works, deficiencies in the Works for
necessary corrections, and the specific time to fully complete the whole Works

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 considering the approved remaining Contract time. This, however, shall not preclude
any claim of the Procuring Entity for liquidated damages.

45. Suspension of Work

45.1 In accordance with DPWH DO 100, series of 2015, the Procuring Entity,
through its Project Engineer/Engineer’s Representative, shall have the authorit y
to issue a Work Suspension Order to the Contractor suspend the work wholly or
partly by written order for such period as may be deemed necessary, on any o f
the following grounds:

a. Force majeure or any fortuitous event that has taken place, which
inflicts extensive damage and/or makes it difficult to proceed with the
work, such as a devastating earthquake or flood.

b. Failure on the part of the Contractor to correct bad conditions which

are unsafe for workers or for the general public.

c. Failure of the contractor to carry out valid orders given by the Procuring
Entity or to perform any provisions of the contract.

d. Adjustments of plans to suit field conditions as found necessary

during construction.

e. Major right-of-way (ROW) problems which prohibit the contractor

from performing work in accordance with the approved construction
schedule.

f. Peace and order conditions which makes it extremely dangerous, if not

impossible to work, as certified in writing by the Philippine
National Police (PNP) Station Commander which has responsibility
over the affected area, and confirmed by the Department of Interior and
Local Government (DILG) Regional Director.

g. Major variations initiated by the Government in the scope of the

contract during its implementation to suit changes in physical and
economic conditions.

The Contractor shall immediately comply with such order to suspend the
Works wholly or partly.

45.2 The Contractor or its duly authorized representative shall have the right
to suspend work operation on any or all projects/activities along the critical path
of activities after fifteen (15) calendar days from date of receipt of written
notice from the Contractor to the district engineer/regional director/consultant
or equivalent official, as the case may be, on any of the following grounds:

a. There exist right-of-way problems which prevent the Contractor

from performing work in accordance with the approved construction
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 schedule.

b. Requisite construction plans which must be owner-furnished are

not issued to the contractor precluding any work called for by such plans.

c. Peace and order conditions make it extremely dangerous, if not

possible, to work. However, this condition must be certified in
writing by the Philippine National Police (PNP) station which has
responsibility over the affected area and confirmed by the Department
of Interior and Local Government (DILG) Regional Director.

d. There is failure on the part of the Procuring Entity to deliver

government- furnished materials and equipment as stipulated in the
contract.

e. Delay in the payment of Contractor’s claim for progress billing

beyond forty-five (45) calendar days from the time the Contractor’s
claim has been certified to by the Procuring Entity’s authorized
representative and the documents are complete unless there are
justifiable reasons thereof which shall be communicated in writing to the
Contractor.

45.3 The contractor shall immediately demobilize its equipment and manpower
upon its receipt of the Work Suspension Order and to remobilize the same upon
the lifting by the Procuring Entity the Work Suspension Order through a
Work Resumption Order.

45.4 The issuance of a Work Suspension Order shall not be an automatic contract
time extension. A corresponding time extension, complete with the documentary
requirements in accordance with DO No. 52, series of 2012,has to be approved
by the authorized DPWH official in lieu of suspension, subject to
evaluation to consider pre-determined unworkable days, bond extension,
quit claim for damages, and their effect on the approved PERT/CPM schedule
in order to reflect the official revised contract time and expiry date as a result of
such suspension. If the suspension is due to any fault of the contractor, no
contract time extension shall be granted.

46. Extension of Contract Time

46.1 Extension of the Contract Time shall be subject to the provisions of DPWH DO
100, series of 2015 and the provisions of this GCC Clause 46.

46.2 Should the amount of additional work under an approved Variation Order or
other special circumstances of any kind whatsoever occur such as to fairly
entitle the Contractor to an extension of Contract Time, the Procuring Entity
shall determine the amount of such extension; provided that the Procuring Entity
is not bound to take into account any claim for an extension of time unless the
Contractor has, prior to the expiration of the Contract time and within thirty (30)
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 calendar days after such work has been commenced or after the circumstances
leading to such claim have arisen, delivered to the Procuring Entity notices in
order that it could have investigated them at that time. Failure to provide such
notice shall constitute a waiver by the Contractor of any claim. Upon
receipt of full and detailed particulars, the Procuring Entity shall examine
the facts and extent of the delay and shall extend the Contract time to complete
the contract work when, in the Procuring Entity’s opinion, the findings of facts
justify an extension.

46.3 No extension of contract time shall be granted the Contractor due to (a) ordinary
unfavorable weather conditions and (b) inexcusable failure or negligence of
Contractor to provide the required equipment, supplies or materials.

46.4 Extension of contract time may be granted only when the affected activities fall
within the critical path of the PERT/CPM network.

46.5 No extension of contract time shall be granted when the reason given to support
the request for extension was already considered in the determination of the
original contract time during the conduct of detailed engineering and in the
preparation of the contract documents as agreed upon by the parties before
contract perfection.

46.6 Extension of contract time may be granted for any of the following grounds:

a. Rainy/unworkable days considered unfavorable for the prosecution of the

works at the site, based on the actual conditions obtained at the site, in excess of
the number of rainy/unworkable days pre-determined by the Procuring
Entity in relation to the original contract time during the conduct of detailed
engineering and in the preparation of the contract documents as agreed upon
by the parties before contract perfection. In these cases, the time extension shall
be processed for approval only after the total number of pre-determined
rainy/unworkable days as indicated in the contract has been fully utilized as
duly certified by the Procuring Entity’s Representative.

b. Equivalent period of delay due to major calamities such as exceptionally

destructive typhoons, floods and earthquakes, and epidemics, and for causes
such as non-delivery on time of materials, working drawings, or written
information to be furnished by the Procuring Entity, non-acquisition of permit to
enter private properties within the right-of-way resulting in complete
paralyzation of construction activities, and other meritorious causes as
determined by the Procuring Entity’s Representative and approved by the HoPE.

c. Shortage of construction materials, general labor strikes, and peace and order
problems that disrupt construction operations through no fault of the Contractor,
provided that they are publicly felt and certified by appropriate government
agencies such as Department of Trade and Industry (DTI), Department of
Labor and Employment (DOLE), Department of Interior and Local Government
(DILG), and Department of National Defense (DND), among others.

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 46.7 The written consent of bondsmen must be attached to any request of the
Contractor for extension of Contract Time and submitted to the Procuring Entity
for consideration, and the validity of the Performance Security shall be
correspondingly extended.

47. Price Adjustment

Except for extraordinary circumstances as determined by the National Economic and
Development Authority (NEDA) and approved by the GPPB, no price adjustment
shall be allowed unless otherwise indicated in the SCC. Nevertheless, in cases where
the cost of the awarded contract is affected by any applicable new laws, ordinances,
regulations, or other acts of the GOP, promulgated after the date of bid opening, a
contract price adjustment shall be made or appropriate relief shall be applied on a no
loss-no gain basis.

48. Certificates of Completion and Acceptance

48.1 The issuance of a Certificate of Completion shall be subject to the provisions
of DPWH DO 99, series of 2015.

a. Upon receipt of notice from the contractor that the project is

completed, the HOPE shall instruct its Inspectorate Team to conduct an
inspection of the project and to submit its Completion Inspection Report
within fifteen (15) days, indicating any construction
defects/deficiencies detected and the corresponding measures that must
be taken by the contractor to correct them. If no defects/deficiencies are
detected, the report is considered as the Final Completion Inspection
Report.

b. Based on the Inspection Report, the HOPE shall issue to the Contractor
a Notice of Defects/Deficiencies and Required Corrective Repair Works,
with the instructions for the Contractor to commence the repair works
within seven (7) days and to complete the works within thirty (30) days.

c. Upon receipt of advice from the Contractor that the defects

and deficiencies indicated in the said Notice have been corrected, the
HOPE shall instruct the Inspectorate Team to conduct an inspection of
the project and to submit its Completion Inspection Report within seven
(7) days. If the report shows that the defects/deficiencies have been
satisfactorily corrected, the report is considered as the Final
Completion Inspection Report. Otherwise, the process is repeated until
the noted defects/deficiencies have been satisfactorily corrected.

d. Upon the receipt of the Final Completion Inspection Report from

the Inspectorate Team, the HopE shall issue the Certificate of
Completion of the project, certifying that the Project has been
satisfactorily completed as of the date indicated in the Final Inspection
Report.

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 48.2 The Certificate of Acceptance shall be issued by the HoPE at the end of the
one- year Defects Liability period, after all defects/deficiencies, if any, shall
have been repaired by the Contractor to the satisfaction of the same Inspectorate
Team of the Procuring Entity mentioned above and upon submission of the
Warranty Certificate by the Contractor in accordance with the provisions of
GCC Clause 12.The issuance of a Certificate of Acceptance shall be subject to
the provisions of DPWH DO 99, series of 2015.

a. Upon receipt of notice from the Contractor that the project is ready
for inspection after the one-year Defects Liability Period from the
issuance of the Certificate of Completion, the HoPE shall instruct its
Inspectorate Team to conduct an inspection of the project and to submit
its Inspection Report within fifteen (15) calendar days, indicating any
construction defects/deficiencies detected and the corresponding
measures that must be taken by the Contractor to correct them. If no
defects/deficiencies are detected, the report is considered as the Final
Acceptance Inspection Report.

b. Based on the Inspection Report, the HoPE shall issue to the Contractor
a Notice of Defects/Deficiencies and Required Corrective Repair Works,
with the instructions for the Contractor to commence the repair works
within seven (7) calendar days and to complete the works within ninety
(90) days.

c. Upon receipt of advice from the contractor that the defects/deficiencies

in the said Notice have been corrected, the HoPE shall instruct the
Inspectorate Team to conduct an inspection of the project and to submit
its Acceptance Inspection Report within seven (7) days. If the report
shows that the defects/deficiencies have been satisfactorily corrected,
the report is considered as the Final Acceptance Inspection Report.
Otherwise, the process is repeated until the noted defects/deficiencies
have been satisfactorily corrected.

d. Upon the receipt of the Final Acceptance Report, the Head of the I0
shall issue the Certificate of Acceptance.

49. Taking Over

The Procuring Entity shall take over the Site and the Works within seven (7) days
from the date the Procuring Entity’s Representative issues a Certificate of Acceptance.

50. As-Built Drawings and Operating and Maintenance Manuals

50.1 If As-Built Drawings and/or Operating and Maintenance Manuals are
required, the Contractor shall supply them by the dates stated in the SCC.

50.2 If the Contractor does not supply the said Drawings by the date stated in the

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SCC, or if they do not receive the approval of the Procuring Entity’s
Representative, the Procuring Entity’s Representative shall withhold the amount
stated in the SCC from payments due to the Contractor.

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 ANNEX II-1.1G
Section VII. Special Conditions of
Contract

Notes on the Special Conditions of Contract

The clauses in this Section on Special Conditions of Contract (SCC) are intended to assist the
Procuring Entity in providing contract-specific information in relation to corresponding
clauses in the General Conditions of Contract (GCC) under ANNEX II-1.1F.

The provisions of this Section complement the GCC, by specifying contractual requirements
linked to the special circumstances of the Procuring Entity and of the Works procured.

No special condition which defeats or negates the general intent and purpose of the provisions
of the GCC, however, should be incorporated herein.

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 STANDARD FORMAT
SPECIAL CONDITIONS OF
CONTRACT
GCC Clause

1.19 The Contract Duration of One Hundred Forty Four (140) Calendar Days

1.24 The Procuring Entity is Department of Public Works and Highways, Bohol 1st
District Engineering Office

1.25 The Procuring Entity’s Representative is Engr. BEN ALDEN R. SERNA,

BAC Chairman, Department of Public Works and Highways, Bohol 1st
District Engineering Office, New Capitol Site, Tagbilaran City, Bohol
1.26 The Site is located at Loon, Bohol Province
1.30 The Start Date is effective upon the date of the Contractor’s date of receipt of
Notice to Proceed.
1.33 The Works consist of BICWOPLC – Building Construction-Without
Piles-Low Rise-Concrete (Frame)

2.2 No further Instruction

5.1 The Procuring Entity shall give possession of the Site to the Contractor on the
date of receipt of the NTP by the contractor.

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6.5 The Contractor shall employ the following Key Personnel:

Minimum
Years of Minimum
No. of Similar Years of
Position Similar and
Personnel Experience
(Same Related
Position Experience

Project Manager 1 3 5

Project Engineer 1 3 5

Accredited Materials & Quality

Control Engineer I 1

Foreman 1 3 5

7.4 c “No further instructions”.

8.1 “No further instructions”.

8.3
N/A
10. The Site Investigation Reports are: NONE

12.3 No further instructions.

12.5
a. Permanent Structures: Fifteen (15) years

Buildings of types 4 (steel, iron, concrete, or masonry construction with

walls, ceilings, and permanent partitions of incombustible fire resistance)
and 5 (steel, iron, concrete, or masonry construction), steel and concrete
bridges, flyovers, concrete aircraft movement areas, ports, dams, diversion
tunnels, causeways, wharves, piers, dikes, filtration and treatment plants,
sewerage systems, power plants, transmission and communication towers,
railway system, and other similar structures.
22.2 The Arbiter is: Construction Industry Arbitrators Commission

29.1
No dayworks are applicable to the contract.
31.1 The Contractor shall submit the Program of Work to the Procuring Entity’s
Representative within 30 days of delivery of the Letter of
Acceptance.

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31.3 The period between Program of Work updates is [insert number] days.

The amount to be withheld for late submission of an updated Program of Work

is [insert amount].

34.3 The Funding Source is the Government of the Philippines.

39.1 The amount and schedule of the advance payment is 15% of Contract
Amount

40.2 Materials and equipment delivered on the site but not completely put in place
shall be included for payment.

50.1 The date by which the As-Built Drawings and/or Operating and Maintenance
Manuals are required is thirty (30) days upon issuance of the Certificate of
Completion.
50.2 The amount to be withheld for failing to supply the As-Built Drawings and/or
Operating and Maintenance Manuals by the date required is [Insert amount in
Pesos equal to 10% of the Contract Price].

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 ANNEX II-1.1H
Section VIII. Specifications
1. DPWH Standards

The DPWH Standard Specifications for Public Works and Highways (“Blue
Book”) shall be the main basis for the standards and codes to be met by the goods and
materials to be furnished and work performed or tested for the Contract. In
particular, Volume II of the Blue Book shall be used if the Contract pertains to
Highways, Bridges and Airports. Volume III of the Blue Book shall be used if the
Contract pertains to Buildings, Flood Control and Drainage, or Water Supply. The
Blue Book incorporates standards of the American Association of State Highway and
Transportation Officials (AASHTO), American Society for Testing and Materials
(ASTM), and American Concrete Institute (ACI), among others, pertaining to
construction.

The Procuring Entity shall use the Standard Pay Items in the Project and
Contract
Management Application (PCMA) in drawing up the
Specifications.

2. Modifications of Standards

2.1 Modifications of and additions to standards and codes as stated in the DPWH
Standard Specifications for Public Works and Highways, if any, shall be
included in the enclosed Supplemental Specifications, which is part of
these Bidding Documents.

2.2 Entries in the Supplemental Specifications are numbered to coincide with the
numbering of items in the DPWH Standard Specifications for Public Works
and Highways

3. Particular Specifications

A.1.1 (8) : PROVISION OF THE FIELD OFFICE FOR THE ENGINEER

Temporary Facilities – 7.30 months (Rental basis/Maintain Office Building, Laboratories
and Quarters for the Engineers)

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ANNEX II-1.1I Section IX. Drawings

Please refer to blueprinted plans

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 ANNEX II-1.1J
Section X. Bill of Quantities
1. The Bill of Quantities (BOQ) contains the following parts:

a. BOQ for each Part of the Contract, using Form DPWH-INFR-17.

b. Summary of Bid Prices for all Parts of the Contract, using Form DPWH-INFR-
18.

2. For the BOQ for each Part of the Contract, the Bidder shall not change the entries under
Pay Item No. (Column 1), Pay Item Description (Column 2), Unit (Column 3), and
Quantity (Column 4) in the Bill of Quantities, which are set by the Procuring Entity. For
each pay item in the BOQ, the Bidder shall indicate its unit bid price in words and in
figures (P) in Column 5, and its total bid price in Column 6 (Column 4 x Column 5)

3. For the Summary of Bid Prices, the Bidder shall not change the entries and Part No.
(Column 1) and Part Description (Column 2), which are provided by the Procuring
Entity. The Bidder shall indicate the Total Amount (Column 3) for each Part No. at the
Total of All Amounts at the bottom.

4. The Procuring Entity shall use the Standard Pay Items in the Project and
Contract Management Application (PCMA) in preparing the BOQ

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 ANNEX II-1.1K
Section XI. Bidding Forms
The Bidder shall use the Bidding Forms (BFs) listed below in preparing its Bid and, in case it is
awarded the contract, in preparing the documents required to perfect the contract.

DPWH-INFR-05: Contractor’s Confidential Application Statement for Registration (CCASR)

DPWH-INFR-06: Contractor’s Registration Certificate (CRC)

DPWH-INFR-07: Contractor’s Information (CI)

DPWH-INFR-09: Bid Form

DPWH-INFR-10: Form of Bid Security: Bank Guarantee

DPWH-INFR-11: Form of Bid Security: Irrevocable Letter of Credit

DPWH-INFR-12: Form of Bid Securing Declaration

DPWH-INFR-13: Contractor’s Organizational Chart for the Contract

DPWH-INFR-14: List of Contractor’s Key Personnel to be Assigned to the Contract, with their
Qualification and Experience Data

DPWH-INFR-15: List of Contractor’s Equipment Units to be Assigned to the Contract,

Supported by Certificates of Availability

DPWH-INFR-16: Sworn Statement Required by IRR Section 25.2b)iv)

DPWH-INFR-17: Bill of Quantities (BOQ)

DPWH-INFR-18: Summary of Bid Prices

DPWH-INFR-19: Cash Flow by Quarter

DPWH-INFR-20: Bidder’s Checklist of Requirements for Its Bid, Including Technical and
Financial Proposals Requirement for Bidders

DPWH-INFR-43: Performance Security: Irrevocable Letter of Credit

DPWH-INFR-44: Performance Security: Bank Guarantee

DPWH-INFR-45: Construction Methods

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 DPWH-INFR-46: Construction Schedule in the form of PERT/CPM or Precedence Diagram
and Bar Chart with S-Curve and Cash Flow
DPWH-INFR-47 Manpower Schedule

DPWH-INFR-48: Major Equipment Utilization Schedule

DPWH-INFR-49: Construction Safety and Health Program

DPWH-INFR-50: Checklist of Contract Documents and Supporting Documents

DPWH-INFR-51: Form of Contract Agreement

The content of each of these forms is given in the attached folder marked “ANNEX IIB –
Standard Bidding Forms.” The bidder may download these forms from the DPWH website.
The bidder may also obtain from the Procuring Entity hard copies of these forms as part of the
BDs for the contract.

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