Bidding Documents Aklan Branch Office Building

PHILIPPINE BIDDING DOCUMENTS
(As Harmonized with Development Partners)
Construction of
2-storey PCSO
Aklan Branch
Office Building
PHILIPPINE CHARITY SWEEPSTAKES OFFICE
Fifth Edition
August 2016
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TABLE OF CONTENTS
SECTION I. INVITATION TO BID …………………………………..................………...3

SECTION II. INSTRUCTIONS TO BIDDERS .....................................................................5
SECTION III. BID DATA SHEET ................................................................................ 37
SECTION IV. GENERAL CONDITIONS OF CONTRACT .................................................... 43
SECTION V. SPECIAL CONDITIONS OF CONTRACT ...................................................... 78
SECTION VI. SPECIFICATIONS ................................................................................. 83
SECTION VII. DRAWINGS ....................................................................................... 97
SECTION VIII. BILL OF QUANTITIES ........................................................................ 109
SECTION IX. BIDDING FORMS ............................................................................... 120
SECTION X. FOREIGN-ASSISTED PROJECTS ........................................................... .134
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REPUBLIC OF THE PHILIPPINES
Office of the President
PHILIPPINE CHARITY SWEEPSTAKES OFFICE

Sun Plaza Building, 1507 Shaw Boulevard corner Princeton St., Mandaluyong City 1552
www.pcso.gov.ph
------------------------------------------------------------------------------------------------
SPECIAL BIDS and AWARDS COMMITTEE II

INVITATION TO BID
Project ABC (in Php)
Construction of 2-Storey PCSO Aklan 6,425,000.00

Branch Office Building in Lot 8 Block 3,
Capitol Site Subdivision, Brgy. Estancia,
Kalibo, Aklan
1. The Philippine Charity Sweepstakes Office (PCSO), through its Corporate

Operating Budget for 2017, intends to apply the sum of SIX MILLION FOUR
HUNDRED TWENTY-FIVE THOUSAND PESOS (Php 6,425,000.00) being the
Approved Budget for the Contract (ABC) to payments under the contract for the
Construction of 2-Storey PCSO Aklan Branch Office Building-Contract
No. 02- 2017 (INFRA). Bids received in excess of the ABC shall be
automatically rejected at bid opening.
2. The PCSO now invites bids for the Construction of 2-Storey PCSO Aklan
Branch Office Building. The Completion of the Works is required within six (6)
Months from Notice to Proceed (NTP). Bidders should have completed a
contract similar to the Project. The description of an eligible bidder is contained
in the Bidding Documents, particularly, in Section II. Instructions to Bidders.
3. Bidding will be conducted through open competitive bidding procedures using

non-discretionary “pass/fail” criterion as specified in the 2016 Revised
Implementing Rules and Regulations (IRR) of Republic Act 9184 (RA 9184),
otherwise known as the “Government Procurement Reform Act.”
Bidding is restricted to Filipino citizens/sole proprietorships, cooperatives, and

partnerships or organizations with at least seventy-five percent (75%) interest
or outstanding capital stock belonging to citizens of the Philippines.
4. Interested bidders may obtain further information from PCSO Special Bids and
Awards Committee II (SBAC II) and inspect the Bidding Documents at the
address given below from 8:00am – 5:00pm.
5. A complete set of Bidding Documents may be acquired by interested bidders

on July 18, 2017 (Tuesday) up to 8:30am of August 07, 2017 (Monday) from
the address below and upon payment of the applicable fee for the Bidding
Documents, pursuant to the latest Guidelines issued by the GPPB, in the
amount of Ten Thousand Pesos (Php 10,000.00).
It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS) and the website of the
Procuring Entity, provided that bidders shall pay the applicable fee for the
Bidding Documents not later than the submission of their bids.
6. The PCSO will hold a Pre-Bid Conference on July 26, 2017 (Wednesday) at
1:30pm, Bids and Awards Committee (BAC) Office, 3rd Floor, Conservatory
Building 605 Shaw Boulevard, Mandaluyong City, which shall be open to
prospective bidders.
7. Bids must be duly received by the SBAC II Secretariat at the address below on
or before 9:00am, August 07, 2017 (Tuesday). All bids must be accompanied
by a bid security in any of the acceptable forms and in the amount stated in ITB
Clause 18.
Bid opening shall be on 9:30am, August 07, 2017 (Tuesday). Bids will be
opened in the presence of the bidders’ representatives who choose to attend at
the address below. Late bids shall not be accepted.
8. The PCSO reserves the right to reject any and all bids, declare a failure of
bidding, or not award the contract at any time prior to contract award in
accordance with Section 41 of RA 9184 and its IRR, without thereby incurring
any liability to the affected bidder or bidders.
9. For further information, please refer to:
The SBAC II Chairman

c/o The Secretariat
PCSO BAC Office
3/F Conservatory Building
605 Shaw Blvd., Mandaluyong City
(02) 997-0247
www.pcso.gov.ph
_____________________________
Atty. LAURO A. PATIAG
SBAC II Chairman
Section II. Instructions to Bidders
Notes on the Instructions to Bidders
This Section of the Bidding Documents 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, eligibility
check, opening and evaluation of bids, and on the award of contract.
This Section also contains provisions that are to be used unchanged. Section III.
Bid Data Sheet consists of provisions that supplement, amend, or specify in detail
information or requirements included in this Section and which are specific to each
procurement.
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 Section IV.
General Conditions of Contract (GCC), and/or Section V. Special Conditions of
Contract (SCC). If duplication of a subject is inevitable in the other sections of the
document prepared by the Procuring Entity, care must be exercised to avoid
contradictions between clauses dealing with the same matter.
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TABLE OF CONTENTS
A. GENERAL ................................................................................................ 8
1. Scope of Bid .............................................................................................. 8
2. Source of Funds ........................................................................................ 8
3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive
Practices .................................................................................................... 8
4. Conflict of Interest................................................................................... 10
5. Eligible Bidders ....................................................................................... 11
6. Bidder’s Responsibilities ....................................................................... 13
7. Origin of GOODS and Services .............................................................. 15
8. Subcontracts ........................................................................................... 15
B. CONTENTS OF BIDDING DOCUMENTS ........................................................... 16
9. Pre-Bid Conference ................................................................................. 16
10. Clarification and Amendment of Bidding Documents ......................... 16
C. PREPARATION OF BIDS ............................................................................. 17
11. Language of Bids .................................................................................... 17
12. Documents Comprising the Bid: Eligibility and Technical
Components ............................................................................................ 17
13. Documents Comprising the Bid: Financial Component ...................... 19
14. Alternative Bids ....................................................................................... 20
15. Bid Prices................................................................................................. 21
16. Bid Currencies ......................................................................................... 21
17. Bid Validity ............................................................................................... 22
18. Bid Security ............................................................................................. 22
19. Format and Signing of Bids ................................................................... 25
20. Sealing and Marking of Bids .................................................................. 25
D. SUBMISSION AND OPENING OF BIDS ............................................................. 26
21. Deadline for Submission of Bids ........................................................... 26
22. Late Bids .................................................................................................. 26
23. Modification and Withdrawal of Bids..................................................... 26
24. Opening and Preliminary Examination of Bids..................................... 27
E. EVALUATION AND COMPARISON OF BIDS ....................................................... 29
25. Process to be Confidential ..................................................................... 29
26. Clarification of Bids ................................................................................ 29
27. Detailed Evaluation and Comparison of Bids ....................................... 29
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28. Post Qualification .................................................................................... 31
29. Reservation Clause ................................................................................. 32
F. AWARD OF CONTRACT ............................................................................. 33
30. Contract Award........................................................................................ 33
31. Signing of the Contract........................................................................... 34
32. Performance Security ............................................................................. 34
33. Notice to Proceed .................................................................................... 36
34. Protest Mechanism……………………………………………………………..36
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A. General
1. Scope of Bid
1.1. The Procuring Entity named in the BDS, invites bids for the
construction of Works, as described in Section VI. Specifications.
1.2. The name, identification, and number of lots specific to this bidding are
provided in the BDS. The contracting strategy and basis of evaluation
of lots is described in ITB Clause 27.
1.3. The successful Bidder will be expected to complete the Works by the
intended completion date specified in SCC Clause 1.17.
2. Source of Funds
The Procuring Entity has a budget 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. Unless otherwise specified in the BDS, the Procuring Entity, as well as
bidders and contractors, shall observe the highest standard of ethics
during the procurement and execution of the contract. In pursuance of
this policy, the Funding Source:
(a) defines, for purposes of this provision, the terms set forth below
as follows:
(i) "corrupt practice" means behavior on the part of officials

in the public or private sectors by which they improperly
and unlawfully enrich themselves, others, or induce
others to do so, by misusing the position 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 Procuring Entity, 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;
(ii) "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
(prior to or after Bid submission) designed to establish bid
prices at artificial, non-competitive levels and to deprive
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the Procuring Entity of the benefits of free and open
competition;
(iii) “collusive practices” 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; and
(iv) “coercive practices” 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 the contract;
(v) “obstructive practice” is
(aa) 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
(bb) 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 or fraudulent
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 Contract funded by the Funding
Source if it at any time determines that the firm has engaged in
corrupt or fraudulent practices in competing or, or in executing, a
Contract funded by the Funding Source.
3.2. Further, the Procuring Entity will seek to impose the maximum civil,
administrative, and/or criminal penalties available under the applicable
laws on individuals and organizations deemed to be involved in any of
the practices mentioned in ITB Clause 3.1(a).
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3.3. Furthermore, 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 contract themselves or through
independent auditors as reflected in the GCC Clause 34.
4. Conflict of Interest
4.1. All Bidders found to have conflicting interests 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 conflicting interests with another
Bidder in any of the events described in paragraphs (a) through (c) and
a general conflict of interest in any of the circumstances set out in
paragraphs (d) through (g) below:
(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 them 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;
(e) A Bidder submits more than one bid in this bidding process.
However, this does not limit the participation of subcontractors in
more than one bid;
(f) A Bidder who participated as a consultant in the preparation of

the design or technical specifications of the goods and related
services that are the subject of the bid; or
(g) A Bidder 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.
4.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding

Documents shall be accompanied by a sworn affidavit of the Bidder
that it is not related to the Head of the Procuring Entity (HoPE),
members of the Bids and Awards Committee (BAC), members of the
Technical Working Group (TWG), members of the BAC Secretariat, the
head of the Project Management Office (PMO) or the end-user unit,
and the project consultants, by consanguinity or affinity up to the third
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civil degree. On the part of the Bidder, this Clause 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; and
(e) If the Bidder is a joint venture (JV), the provisions of items (a),
(b), (c) or (d) of this Clause shall correspondingly apply to each
of the members of the said JV, as may be appropriate.
Relationship of the nature described above or failure to comply with

this Clause will result in the automatic disqualification of a Bidder.
5. Eligible Bidders
5.1. Unless otherwise indicated in the BDS, the following persons shall be
eligible to participate in this Bidding:
(a) Duly licensed Filipino citizens/sole proprietorships;
(b) Partnerships 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;
(c) Corporations duly organized under the laws of the Philippines,

and of which at least seventy-five percent (75%) of the
outstanding capital stock belongs to citizens of the Philippines;
(d) Cooperatives duly organized under the laws of the Philippines.
(e) Persons/entities forming themselves into a 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,
however, that, in accordance with Letter of Instructions No. 630,
Filipino ownership or interest of the joint venture concerned shall
be at least seventy five percent (75%): Provided, further, that
joint ventures 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: 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
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shall be based on the contributions of each of the members of
the joint venture as specified in their JVA.
5.2. The Procuring Entity may also invite foreign bidders when provided for
under any Treaty or International or Executive Agreement as specified
in the BDS.
5.3. Government Owned or Controlled Corporations (GOCCs) may be

eligible to participate only if they can establish that they (a) are legally
and financially autonomous, (b) operate under commercial law, and (c)
are not attached agencies of the Procuring Entity.
5.4. (a) The Bidder must have an experience of having completed a Single
Largest Completed Contract (SLCC) that is similar to this Project,
equivalent to at least fifty percent (50%) of the ABC adjusted, if
necessary, by the Bidder to current prices using the Philippine
Statistics Authority (PSA) consumer price index. However, contractors
under Small A and Small B categories without similar experience on
the contract to be bid may be allowed to bid if the cost of such contract
is not more than the Allowable Range of Contract Cost (ARCC) of their
registration based on the guidelines as prescribed by the PCAB.
(b) For Foreign-funded Procurement, the Procuring Entity and the

foreign government/foreign or international financing institution may
agree on another track record requirement, as specified in the BDS.
For this purpose, contracts similar to the Project shall be those

described in the BDS.
5.5. The Bidder must submit a computation of its Net Financial Contracting
Capacity (NFCC), which must be at least equal to the ABC to be bid,
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 coinciding with the contract for this Project.
The values of the domestic 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.
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6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a sworn
statement in the form prescribed in Section IX. Bidding Forms as
required in ITB Clause 12.1(b)(iii).
6.2. 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 facilities 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 10.4.
(e) Ensuring that it is not “blacklisted” or barred from bidding by the

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
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 to participate,
submit the bid, and to sign and execute the ensuing contract,
accompanied by the duly notarized Special Power of Attorney,
Board/Partnership Resolution, or Secretary’s Certificate,
whichever is applicable;
(i) Complying with the disclosure provision under Section 47 of RA

9184 and its IRR in relation to other provisions of RA 3019;
(j) Complying with existing labor laws and standards, in the case of
procurement of services. Moreover, bidder undertakes to:
(i) Ensure the entitlement of workers to wages, hours of

work, safety and health and other prevailing conditions of
work as established by national laws, rules and
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regulations; or collective bargaining agreement; or
arbitration award, if and when applicable.
In case there is a finding by the Procuring Entity or the

DOLE of underpayment or non-payment of workers’ wage
and wage-related benefits, bidder agrees that the
performance security or portion of the contract amount
shall be withheld in favor of the complaining workers
pursuant to appropriate provisions of Republic Act No.
9184 without prejudice to the institution of appropriate
actions under the Labor Code, as amended, and other
social legislations.
(ii) Comply with occupational safety and health standards

and to correct deficiencies, if any.
In case of imminent danger, injury or death of the worker,

bidder undertakes to suspend contract implementation
pending clearance to proceed from the DOLE Regional
Office and to comply with Work Stoppage Order; and
(iii) Inform the workers of their conditions of work, labor

clauses under the contract specifying wages, hours of
work and other benefits under prevailing national laws,
rules and regulations; or collective bargaining agreement;
or arbitration award, if and when applicable, through
posting in two (2) conspicuous places in the
establishment’s premises; and
(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;
Failure to observe any of the above responsibilities shall be at the risk

of the Bidder concerned.
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)
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other 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. However, the
Procuring Entity shall ensure that all information in the Bidding
Documents, including supplemental/bid bulletins issued are correct and
consistent.
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. The Bidder should note that the Procuring Entity will accept bids only
from those that have paid the applicable 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. Subcontracts
8.1. Unless otherwise specified in the BDS, the Bidder may subcontract
portions of the Works to an extent as may be approved by the
Procuring Entity and stated in the BDS. However, subcontracting of
any portion shall not relieve the Bidder from any liability or obligation
that may arise from the contract for this Project.
8.2. Subcontractors must submit the documentary requirements under ITB

Clause 12 and comply with the eligibility criteria specified in the BDS.
In the event that any subcontractor is found by the Procuring Entity to
be ineligible, the subcontracting of such portion of the Works shall be
disallowed.
8.3. The Bidder may identify the subcontractor to whom a portion of the
Works will be subcontracted at any stage of the bidding process or
during contract implementation. If the Bidder opts to disclose the
name of the subcontractor during bid submission, the Bidder shall
include the required documents as part of the technical component of
its bid.
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B. Contents of Bidding Documents
9. Pre-Bid Conference
9.1. (a) 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.
(b) The pre-bid conference shall be held at least twelve (12) calendar
days before the deadline for the submission of and receipt of bids, but
not earlier than seven (7) calendar days from the posting of the
Invitation to Bid/Bidding Documents in the PhilGEPS website. 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. The minutes of the pre-
bid conference shall be recorded and prepared not later than five (5)
calendar days after the pre-bid conference. The minutes shall be made
available to prospective bidders not later than five (5) days upon written
request.
9.3. Decisions of the BAC amending any provision of the bidding

documents shall be issued in writing through a Supplemental/Bid
Bulletin at least seven (7) calendar days before the deadline for the
submission and receipt of bids.
10. Clarification and Amendment of Bidding Documents

10.1. Prospective bidders may request for clarification(s) on and/or
interpretation of any part of the Bidding Documents. 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.
10.2. The BAC shall respond to the said request by issuing a

Supplemental/Bid Bulletin, to be made available to all those who have
properly secured the Bidding Documents, at least seven (7) calendar
days before the deadline for the submission and receipt of Bids.
10.3. Supplemental/Bid Bulletins may also be issued upon the Procuring

Entity’s initiative for purposes of clarifying or modifying any provision of
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the Bidding Documents not later than seven (7) calendar days before
the deadline for the submission and receipt of Bids. Any modification
to the Bidding Documents shall be identified as an amendment.
10.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted
in the PhilGEPS and the website of the Procuring Entity concerned, if
available, and at any conspicuous place in the premises of the
Procuring Entity concerned. It shall be the responsibility of all Bidders
who have properly 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 23.
C. Preparation of Bids
11. Language of Bids

The eligibility requirements or statements, the bids, and all other documents
to be submitted to the BAC must be in English. If the eligibility requirements or
statements, the bids, and all other documents submitted to the BAC are in
foreign language other than English, it must be accompanied by a translation
of the documents in English. The documents shall be translated by the
relevant foreign government agency, the foreign government agency
authorized to translate documents, or a registered translator in the foreign
bidder’s country; and shall be authenticated by the appropriate Philippine
foreign service establishment/post or the equivalent office having jurisdiction
over the foreign bidder’s affairs in the Philippines. The English translation
shall govern, for purposes of interpretation of the bid.
12. Documents Comprising the Bid: Eligibility and Technical

Components
12.1. Unless otherwise indicated in the BDS, the first envelope shall contain
the following eligibility and technical documents:
(a) Eligibility Documents –
Class “A” Documents
(i) PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR, except for
foreign bidders participating in the procurement by a
Philippine Foreign Service Office or Post, which shall
submit their eligibility documents under Section 23.1 of
the IRR, provided, that the winning bidder shall register
with the PhilGEPS in accordance with Section 37.1.4 of
the IRR;
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(ii) Statement of all its ongoing government and private
contracts, including contracts awarded but not yet started,
if any, whether similar or not similar in nature and
complexity to the contract to be bid; and
Statement of the Bidder’s SLCC similar to the contract to

be bid, in accordance with ITB Clause 5.4.
The two statements required shall indicate for each

contract the following:
(ii.1) name of the contract;
(ii.2) date of the contract;
(ii.3) contract duration;
(ii.4) owner’s name and address;
(ii.5) nature of work;
(ii.6) contractor’s role (whether sole contractor,

subcontractor, or partner in a JV) and percentage
of participation;
(ii.7) total contract value at award;
(ii.8) date of completion or estimated completion time;
(ii.9) total contract value at completion, if applicable;
(ii.10) percentages of planned and actual

accomplishments, if applicable; and
(ii.11) value of outstanding works, if applicable.
The statement of the Bidder’s SLCC shall be supported

by the Notice of Award and/or Notice to Proceed, Project
Owner’s Certificate of Final Acceptance issued by the
Owner other than the Contractor or the Constructors
Performance Evaluation System (CPES) Final Rating,
which must be at least satisfactory. In case of contracts
with the private sector, an equivalent document shall be
submitted;
(iii) Unless otherwise provided in the BDS, a valid special

PCAB License in case of joint ventures, and registration
for the type and cost of the contract for this Project; and
(iv) NFCC computation in accordance with ITB Clause 5.5.
Class “B” Documents
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(v) If applicable, Joint Venture Agreement (JVA) in
accordance with RA 4566.
(b) Technical Documents –
(i) Bid security in accordance with ITB Clause 18. If the

Bidder opts to submit the bid security in the form of:
(i.1) a bank draft/guarantee or an irrevocable letter of

credit issued by a foreign bank, it shall be
accompanied by a confirmation from a Universal or
Commercial Bank; or
(i.2) a surety bond accompanied by a certification

coming from the Insurance Commission that the
surety or insurance company is authorized to issue
such instruments.
(ii) Project Requirements, which shall include the following:
(ii.1) Organizational chart for the contract to be bid;
(ii.2) 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. These personnel must meet the
required minimum years of experience set in the
BDS; and
(ii.3) List of contractor’s major equipment units, which

are owned, leased, and/or under purchase
agreements, supported by proof of ownership,
certification of availability of equipment from the
equipment lessor/vendor for the duration of the
project, as the case may be, which must meet the
minimum requirements for the contract set in the
BDS; and
(iii) Sworn statement in accordance with Section 25.3 of the

IRR of RA 9184 and using the form prescribed in Section
IX. Bidding Forms.
13. Documents Comprising the Bid: Financial Component

13.1. Unless otherwise stated in the BDS, the financial component of the bid
shall contain the following:
(a) Financial Bid Form, which includes bid prices and the bill of
quantities, in accordance with ITB Clauses 15.1 and 15.3; and
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(b) Any other document related to the financial component of the
bid as stated in the BDS.
13.2. (a) Unless otherwise stated in the BDS, all Bids that exceed the
ABC shall not be accepted.
(b) 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) Bidding Documents are obtainable free of charge on a freely

accessible website. If payment of Bidding Documents 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
engineer or the responsible unit of the procuring entity and
that the estimates are based on adequate detailed
engineering (in the case of infrastructure projects) and
reflect the quality, supervision and risk and inflationary
factors, as well as prevailing market prices, associated with
the types of works or goods to be procured.
(iii) The procuring entity has trained cost estimators on

estimating prices and analyzing bid variances. In the case
of infrastructure projects, the procuring entity must also
have trained quantity surveyors.
(iv) The procuring entity has established a system to monitor

and report bid prices relative to ABC and
engineer’s/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 goods and works.
14. Alternative Bids

14.1. Alternative Bids shall be rejected. 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.
14.2. 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.
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14.3. 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.
15. Bid Prices

15.1. The contract shall be for the whole Works, as described in ITB Clause
1.1, based on the priced Bill of Quantities submitted by the Bidder.
15.2. The Bidder shall fill in rates and prices for all items of the Works
described in the Bill of Quantities. Bids not addressing or providing all
of the required items in the Bidding Documents including, where
applicable, Bill of Quantities, 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 zero (0) 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.
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 rates, prices, and total bid price submitted
by the Bidder.
15.4. All bid prices for the given scope of work in the contract as awarded
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 48. Upon the
recommendation of the Procuring Entity, 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 approval by the GPPB.
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. Bid Currencies

16.1. All bid prices shall be quoted in Philippine Pesos unless 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.
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16.2. If so allowed in accordance with ITB Clause 16.1, 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 Bangko
Sentral ng Pilipinas (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) calendar days from the date of
the opening of bids.
17.2. In exceptional circumstances, prior to the expiration of the bid validity

period, the Procuring Entity may request Bidders to extend the period
of validity of their bids. The request and the responses shall be made in
writing. The bid security described in ITB Clause 18 should also be
extended corresponding to the extension of the bid validity period at
the least. A Bidder may refuse the request without forfeiting its bid
security, but his bid shall no longer be considered for further evaluation
and award. A Bidder granting the request shall not be required or
permitted to modify its bid.
18. Bid Security

18.1. The Bidder shall submit a Bid Securing Declaration or any form of Bid
Security in an amount stated in the BDS, which shall be not less than
the percentage of the ABC in accordance with the following schedule:
Amount of Bid Security

Form of Bid Security (Not less than the Percentage
of the ABC)
(a) Cash or cashier’s/manager’s
check issued by a Universal
or Commercial Bank.
For biddings conducted by

LGUs, the
cashier’s/manager’s check
may be issued by other banks Two percent (2%)
certified by the BSP as
authorized to issue such
financial instrument.
(b) Bank draft/guarantee or

irrevocable letter of credit
issued by a Universal or
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Commercial Bank: Provided,
however, that it shall be
confirmed or authenticated by
a Universal or Commercial
Bank, if issued by a foreign
bank.

LGUs, the Bank Draft/
Guarantee, or irrevocable
letter of credit may be issued
by other banks certified by the
BSP as authorized to issue
such financial instrument.
(c) Surety bond callable upon

demand issued by a surety or
insurance company duly
Five percent (5%)
certified by the Insurance
Commission as authorized to
issue such security; and/or
The Bid Securing Declaration mentioned above is an undertaking

which states, among others, that the Bidder shall enter into contract
with the procuring entity and furnish the performance security required
under ITB Clause 32.2, within ten (10) calendar days 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 procurement activity in the event it
violates any of the conditions stated therein as provided in the
guidelines issued by the GPPB.
18.2. The bid security should be valid for the period specified in the BDS.
Any bid not accompanied by an acceptable bid security shall be
rejected by the Procuring Entity as non-responsive.
18.3. No bid securities shall be returned to Bidders after the opening of bids
and before contract signing, except to those that failed or declared as
post-disqualified, upon submission of a written waiver of their right to
file a request for reconsideration and/or protest, or lapse of the
reglementary period without having filed a request for reconsideration
or protest. Without prejudice on its forfeiture, Bid Securities shall be
returned only after the Bidder with the Lowest Calculated Responsive
Bid (LCRB) has signed the contract and furnished the Performance
Security, but in no case later than the expiration of the Bid Security
validity period indicated in ITB Clause 18.2.
18.4. Upon signing and execution of the contract, pursuant to ITB Clause 31,
and the posting of the performance security, pursuant to ITB Clause
32, the successful Bidder’s Bid Security will be discharged, but in no
23
case later than the Bid Security validity period as indicated in ITB
Clause 18.2.
18.5. The bid security may be forfeited:
(a) if a Bidder:
(i) withdraws its bid during the period of bid validity specified
in ITB Clause 17;
(ii) does not accept the correction of errors pursuant to ITB

Clause 27.3(b);
(iii) has a finding against the veracity of the required

documents submitted in accordance with ITB Clause
28.2;
(iv) submission of eligibility requirements containing false

information or falsified documents;
(v) submission of bids that contain false information or

falsified documents, or the concealment of such
information in the bids in order to influence the outcome
of eligibility screening or any other stage of the public
bidding;
(vi) allowing the use of one’s name, or using the name of

another for purposes of public bidding;
(vii) withdrawal of a bid, or refusal to accept an award, or

enter into contract with the Government without justifiable
cause, after the Bidder had been adjudged as having
submitted the LCRB;
(viii) refusal or failure to post the required performance

security within the prescribed time;
(ix) refusal to clarify or validate in writing its bid during post-

qualification within a period of seven (7) calendar days
from receipt of the request for clarification;
(x) any documented attempt by a Bidder to unduly influence

the outcome of the bidding in his favor;
(xi) failure of the potential joint venture partners to enter into

the joint venture after the bid is declared successful; or
(xii) all other acts that tend to defeat the purpose of the
competitive bidding, such as habitually withdrawing from
bidding, submitting late Bids or patently insufficient bid,
for at least three (3) times within a year, except for valid
reasons.
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(b) if the successful Bidder:
(i) fails to sign the contract in accordance with ITB Clause

31;
(ii) fails to furnish performance security in accordance with

ITB Clause 32.
19. Format and Signing of Bids

19.1 Bidders shall submit their bids through their duly authorized
representative using the appropriate forms provided in Section IX.
Bidding Forms on or before the deadline specified in the ITB Clause 21
in two (2) separate sealed bid envelopes, and which shall be submitted
simultaneously. The first shall contain the technical component of the
bid, including the eligibility requirements under ITB Clause 12.1, and
the second shall contain the financial component of the bid. This shall
also be observed for each lot in the case of lot procurement.
19.2 Forms as mentioned in ITB Clause 19.1 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.
19.3 The Bidder shall prepare and submit an original of the first and second
envelopes as described in ITB Clauses 12 and 13. In addition, the
Bidder shall submit copies of the first and second envelopes. In the
event of any discrepancy between the original and the copies, the
original shall prevail.
19.4 Each and every page of the Bid Form, including the Bill of Quantities,
under Section IX hereof, shall be signed by the duly authorized
representative/s of the Bidder. Failure to do so shall be a ground for the
rejection of the bid.
19.5 Any interlineations, erasures, or overwriting shall be valid only if they

are signed or initialed by the duly authorized representative/s of the
Bidder.
20. Sealing and Marking of Bids

20.1. Bidders shall enclose their original eligibility and technical documents
described in ITB Clause 12, in one sealed envelope marked
“ORIGINAL - TECHNICAL COMPONENT,” and the original of their
financial component in another sealed envelope marked “ORIGINAL -
FINANCIAL COMPONENT,” sealing them all in an outer envelope
marked “ORIGINAL BID.”
20.2. Each copy of the first and second envelopes shall be similarly sealed
duly marking the inner envelopes as “COPY NO. ___ - TECHNICAL
COMPONENT” and “COPY NO. ___ – FINANCIAL COMPONENT” and
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the outer envelope as “COPY NO. ___,” respectively. These
envelopes containing the original and the copies shall then be enclosed
in one single envelope.
20.3. The original and the number of copies of the bid as indicated in the
BDS shall be typed or written in ink and shall be signed by the Bidder
or its duly authorized representative/s.
20.4. All envelopes shall:
(a) contain the name of the contract to be bid in capital letters;
(b) bear the name and address of the Bidder in capital letters;
(c) be addressed to the Procuring Entity’s BAC in accordance with

ITB Clause 20.1;
(d) bear the specific identification of this bidding process indicated

in the ITB Clause 1.2; and
(e) bear a warning “DO NOT OPEN BEFORE…” the date and time
for the opening of bids, in accordance with ITB Clause 21.
20.5. Bid envelopes that are not properly sealed and marked, as required in
the bidding documents, shall not be rejected, but the Bidder or its duly
authorized representative shall acknowledge such condition of the bid
as submitted. The BAC or the Procuring Entity shall assume no
responsibility for the misplacement of the contents of the improperly
sealed or marked bid, or for its premature opening.
D. Submission and Opening of Bids
21. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and on or
before the date and time indicated in the BDS.
22. Late Bids

Any bid submitted after the deadline for submission and receipt of bids
prescribed by the Procuring Entity, pursuant to ITB Clause 21, shall be
declared “Late” and shall not be accepted by the Procuring Entity. The BAC
shall record in the minutes of Bid Submission and Opening, the Bidder’s
name, its representative and the time the late bid was submitted.
23. Modification and Withdrawal of Bids

23.1. 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 submission and receipt of bids. The Bidder shall not be
allowed to retrieve its original bid, but shall be allowed to submit
26
another bid equally sealed and properly identified in accordance with
Clause 20, 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.
23.2. A Bidder may, through a Letter of Withdrawal, withdraw its bid after it
has been submitted, for valid and justifiable reason; provided that the
Letter of Withdrawal is received by the Procuring Entity prior to the
deadline prescribed for submission and receipt of bids. The Letter of
Withdrawal must be executed by the authorized representative of the
Bidder identified in the Omnibus Sworn Statement, a copy of which
should be attached to the letter.
23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1

shall be returned unopened to the Bidders. A Bidder, who has acquired
the bidding documents 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.
23.4. No bid may be modified after the deadline for submission of bids. No
bid may be withdrawn in the interval between the deadline for
submission of bids and the expiration of the period of bid validity
specified by the Bidder on the Financial Bid Form. Withdrawal of a bid
during this interval shall result in the forfeiture of the Bidder’s bid
security, pursuant to ITB Clause 18.5, and the imposition of
administrative, civil, and criminal sanctions as prescribed by RA 9184
and its IRR.
24. Opening and Preliminary Examination of Bids

24.1. The BAC shall open the Bids in public, immediately after the deadline
for the submission and receipt of bids in public, as specified in the
BDS. In case the Bids cannot be opened as scheduled due to
justifiable reasons, the BAC shall take custody of the Bids submitted
and reschedule the opening of Bids on the next working day or at the
soonest possible time through the issuance of a Notice of
Postponement to be posted in the PhilGEPS website and the website
of the Procuring Entity concerned.
24.2. Unless otherwise specified in the BDS, the BAC shall open the first bid
envelopes and determine each Bidder’s compliance with the
documents prescribed in ITB Clause 12, 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 said first bid envelope as “passed”.
27
24.3. Unless otherwise specified in the BDS, immediately after determining
compliance with the requirements in the first envelope, the BAC shall
forthwith open the second bid envelope of each remaining eligible
Bidder whose first bid envelope was rated “passed.” The second
envelope of each complying Bidder shall be opened within the same
day. 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 bid price exceeds the ABC unless otherwise
provided in ITB Clause 13.2, the BAC shall rate the bid concerned as
“failed.” 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.
24.4. Letters of Withdrawal shall be read out and recorded during bid
opening, and the envelope containing the corresponding withdrawn bid
shall be returned to the Bidder unopened.
24.5. All members of the BAC who are present during bid opening shall initial
every page of the original copies of all bids received and opened.
24.6. In the case of an eligible foreign bidder as described in ITB Clause 5,

the following Class “A” Documents may be substituted with the
appropriate equivalent documents, if any, issued by the country of the
foreign bidder concerned, which shall likewise be uploaded and
maintained in the PhilGEPS in accordance with Section 8.5.2 of the
IRR.:
a) Registration certificate from the Securities and Exchange

Commission (SEC), Department of Trade and Industry (DTI) for
sole proprietorship, or CDA for cooperatives;
b) Mayor’s/Business permit issued by the local government where the

principal place of business of the Bidder is located; and
c) Audited Financial Statements showing, among others, the

prospective Bidder’s total and current assets and liabilities stamped
“received” by the Bureau of Internal Revenue or its duly accredited
and authorized institutions, for the preceding calendar year which
should not be earlier than two years from the date of bid
submission.
24.7. Each partner of a joint venture agreement shall likewise submit the
document required in ITB Clause 12.1(a)(i). Submission of documents
required under ITB Clauses 12.1(a)(ii) to 12.1(a)(iv) by any of the joint
venture partners constitutes compliance.
24.8. The Procuring Entity shall prepare the minutes of the proceedings of
the bid opening that shall include, as a minimum: (a) names of
Bidders, their bid price (per lot, if applicable, and/or including discount,
if any), bid security, findings of preliminary examination, and whether
28
there is a withdrawal or modification; and (b) attendance sheet. The
BAC members shall sign the abstract of bids as read.
24.8. The Bidders or their duly authorized representatives may attend the
opening of bids. The BAC shall ensure the integrity, security, and
confidentiality of all submitted bids. The Abstract of Bids as read and
the minutes of the Bid Opening shall be made available to the public
upon written request and payment of a specified fee to recover cost of
materials.
24.9 To ensure transparency and accurate representation of the bid

submission, the BAC Secretariat shall notify in writing all Bidders
whose bids it has received through its PhilGEPS-registered physical
address or official e-mail address. The notice shall be issued within
seven (7) calendar days from the date of the bid opening.
E. Evaluation and Comparison of Bids
25. Process to be Confidential

25.1. Members of the BAC, including its staff and personnel, as well as its
Secretariat and TWG, are prohibited from making or accepting any kind
of communication with any Bidder regarding the evaluation of their bids
until the issuance of the Notice of Award, unless otherwise allowed in
the case of ITB Clause 26.
25.2. Any effort by a Bidder to influence the Procuring Entity in the Procuring
Entity’s decision in respect of bid evaluation, bid comparison or
contract award will result in the rejection of the Bidder’s bid.
26. 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
27. Detailed Evaluation and Comparison of Bids

27.1. The Procuring Entity will undertake the detailed evaluation and
comparison of Bids which have passed the opening and preliminary
examination of Bids, pursuant to ITB Clause 24, in order to determine
the Lowest Calculated Bid.
27.2. The Lowest Calculated Bid shall be determined in two steps:
(a) The detailed evaluation of the financial component of the bids, to

establish the correct calculated prices of the bids; and
29
(b) The ranking of the total bid prices as so calculated from the
lowest to highest. The bid with the lowest price shall be
identified as the Lowest Calculated Bid.
27.3. The Procuring Entity's BAC shall immediately conduct a detailed

evaluation of all bids rated “passed,” using non-discretionary “pass/fail”
criterion. The BAC shall consider the following in the evaluation of bids:
(a) Completeness of the bid. Unless the BDS allows partial bids,
bids not addressing or providing all of the required items in the
Schedule of Requirements including, where applicable, bill of
quantities, 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 zero (0) or a
dash (-) for the said item would mean that it is being offered for
free to the Procuring Entity, except those required by law or
regulations to be provided for; and
(b) Arithmetical corrections. Consider computational errors and

omissions to enable proper comparison of all eligible bids. It
may also consider bid modifications. Any adjustment shall be
calculated in monetary terms to determine the calculated prices.
27.4. Based on the detailed evaluation of bids, those that comply with the
above-mentioned 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, to 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 the BDS.
27.5. The Procuring Entity’s evaluation of bids shall be based on the bid
price quoted in the Bid Form, which includes the Bill of Quantities.
27.6. Bids shall be evaluated on an equal footing to ensure fair competition.

For this purpose, all Bidders shall be required to include in their bids
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.
27.7. If so indicated pursuant to ITB Clause 1.2. Bids are being invited for
individual lots or for any combination thereof, provided that all Bids and
combinations of Bids shall be received by the same deadline and
opened and evaluated simultaneously so as to determine the bid or
combination of bids offering the lowest calculated cost to the Procuring
Entity. Bid prices quoted shall correspond to all of the requirements
specified for each lot. Bid Security as required by ITB Clause 18 shall
30
be submitted for each contract (lot) separately. The basis for evaluation
of lots is specified in BDS Clause 27.3.
28. Post Qualification

28.1. The BAC shall determine to its satisfaction whether the Bidder that is
evaluated as having submitted the Lowest Calculated Bid complies
with and is responsive to all the requirements and conditions specified
in ITB Clauses 5, 12, and 13.
28.2. Within a non-extendible period of five (5) calendar days from receipt by
the Bidder of the notice from the BAC that it submitted the Lowest
Calculated Bid, the Bidder shall submit its latest income and business
tax returns filed and paid through the BIR Electronic Filing and
Payment System (eFPS) and other appropriate licenses and permits
required by law and stated in the BDS.
Failure to submit any of the post-qualification requirements on time, or

a finding against the veracity thereof, shall disqualify the Bidder for
award. Provided in the event that a finding against the veracity of any
of the documents submitted is made, it shall cause the forfeiture of the
bid security in accordance with Section 69 of the IRR of RA 9184.
28.3. The determination shall be based upon an examination of the

documentary evidence of the Bidder’s qualifications submitted pursuant
to ITB Clauses 12 and 13, as well as other information as the
Procuring Entity deems necessary and appropriate, using a non-
discretionary “pass/fail” criterion, which shall be completed within a
period of twelve (12) calendar days.
28.4. If the BAC determines that the Bidder with the Lowest Calculated Bid
passes all the criteria for post-qualification, it shall declare the said bid
as the 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, subject to ITB Clause 30.3.
28.5. A negative determination shall result in rejection of the Bidder’s bid, in

which event the Procuring Entity shall proceed to the next Lowest
Calculated Bid, with a fresh period to make a similar determination of
that Bidder’s capabilities to perform satisfactorily. If the second Bidder,
however, fails the post qualification, the procedure for post qualification
shall be repeated for the Bidder with the next Lowest Calculated Bid,
and so on until the LCRB is determined for recommendation of contract
award.
28.6. Within a period not exceeding fifteen (15) calendar days from the
determination by the BAC of the LCRB and the recommendation to
award the contract, the HoPE or his duly authorized representative
shall approve or disapprove the said recommendation.
31
28.7. In the event of disapproval, which shall be based on valid, reasonable,
and justifiable grounds as provided for under Section 41 of the IRR of
RA 9184, the HoPE shall notify the BAC and the Bidder in writing of
such decision and the grounds for it. When applicable, the BAC shall
conduct a post-qualification of the Bidder with the next Lowest
Calculated Bid. A request for reconsideration may be filed by the
Bidder with the HoPE in accordance with Section 37.1.3 of the IRR of
RA 9184.
29. Reservation Clause

29.1. Notwithstanding the eligibility or post-qualification of a Bidder, the
Procuring Entity concerned reserves the right to review its
qualifications at any stage of the procurement process if it has
reasonable grounds to believe that a misrepresentation has been made
by the said 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 and bidding requirements,
statements or documents, or any changes in the situation of the Bidder
which will affect its capability to undertake the project 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 or contract.
29.2. Based on the following grounds, the Procuring Entity reserves the right
to reject any and all Bids, declare a Failure of Bidding at any time prior
to the contract award, or not to award the contract, without thereby
incurring any liability, and make no assurance that a contract shall be
entered into as a result of the bidding:
(a) If there is prima facie evidence of collusion between appropriate

public officers or employees of the Procuring Entity, or between
the BAC and any of the Bidders, or if the collusion is between 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 Procuring Entity’s BAC is found to have failed in following

the prescribed bidding procedures; or
(c) For any justifiable and reasonable ground where the award of
the contract will not redound to the benefit of the GOP as
follows:
(i) If the physical and economic conditions have significantly

changed so as to render the project no longer
economically, financially or technically feasible as
determined by the HoPE;
32
(ii) If the project is no longer necessary as determined by the
HoPE; and
(iii) If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.
29.3. In addition, the Procuring Entity may likewise declare a failure of

bidding when:
(a) No bids are received;
(b) All prospective Bidders are declared ineligible;
(c) All bids fail to comply with all the bid requirements, 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 in
accordance with Section 40 of the IRR of RA 9184.
F. Award of Contract
30. Contract Award

30.1. Subject to ITB Clause 28, the HoPE or its duly authorized
representative shall award the contract to the Bidder whose bid has
been determined to be the LCRB.
30.2. Prior to the expiration of the period of bid validity, the Procuring Entity
shall notify the successful Bidder in writing that its bid has been
accepted, through a Notice of Award duly received by the Bidder or its
representative personally or 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.
30.3. Notwithstanding the issuance of the Notice of Award, award of contract

shall be subject to the following conditions:
(a) Submission of the following documents within ten (10) calendar

days from receipt of the Notice of Award:
(i) In the case of procurement by a Philippine Foreign

Service Office or Post, the PhilGEPS Registration
Number of the winning foreign Bidder; or
(ii) Valid PCAB license and registration for the type and cost
of the contract to be bid for foreign bidders 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 Award;
33
(b) Posting of the performance security in accordance with ITB
Clause 32;
(c) Signing of the contract as provided in ITB Clause 31; and
(d) Approval by higher authority, if required, as provided in Section

37.3 of the IRR of RA 9184.
31. Signing of the Contract

31.1. At the same time as the Procuring Entity notifies the successful Bidder
that its bid has been accepted, the Procuring Entity shall send the
Contract Form to the Bidder, which Contract has been provided in the
Bidding Documents, incorporating therein all agreements between the
parties.
31.2. Within ten (10) calendar days from receipt of the Notice of Award, the
successful Bidder shall post the required performance security, sign
and date the contract and return it to the Procuring Entity.
31.3. The Procuring Entity shall enter into contract with the successful Bidder
within the same ten (10) calendar day period provided that all the
documentary requirements are complied with.
31.4. The following documents shall form part of the contract:
(a) Contract Agreement;
(b) Bidding Documents;
(c) Winning Bidder’s bid, including the Technical and Financial

Proposals, and all other documents/statements submitted (e.g.,
Bidder’s response to request for clarifications on the bid),
including corrections to the bid, if any, resulting from the
Procuring Entity’s bid evaluation;
(d) Performance Security;
(e) Notice of Award of Contract; and
(f) Other contract documents that may be required by existing laws

and/or specified in the BDS.
32. Performance Security

32.1. To guarantee the faithful performance by the winning Bidder of its
obligations under the contract, it shall post a performance security
within a maximum period of ten (10) calendar days from the receipt of
the Notice of Award from the Procuring Entity and in no case later than
the signing of the contract.
34
32.2. The Performance Security shall be denominated in Philippine Pesos
and posted in favor of the Procuring Entity in an amount not less than
the percentage of the total contract price in accordance with the
following schedule:
Amount of Performance Security

Form of Performance Security (Not less than the Percentage of
the Total Contract Price)
(a) Cash or cashier’s/manager’s
check issued by a Universal
or Commercial Bank.

the LGUs, the
Cashier’s/Manager’s Check
may be issued by other
banks certified by the BSP
as authorized to issue such
(b) Bank draft/guarantee or

irrevocable letter of credit
issued by a Universal or
Commercial Bank: Provided, Ten percent (10%)
however, that it shall be
confirmed or authenticated
by a Universal or
Commercial Bank, if issued
by a foreign bank.

the LGUs, Bank
Draft/Guarantee, or
Irrevocable Letter of Credit
may be issued by other
banks certified by the BSP
as authorized to issue such
(c) Surety bond callable upon

demand issued by a surety Thirty percent (30%)
or insurance company duly
certified by the Insurance
Commission as authorized to
issue such security.
32.3. Failure of the successful Bidder to comply with the above-mentioned

requirement shall constitute sufficient ground for the annulment of the
35
award and forfeiture of the bid security, in which event the Procuring
Entity shall have a fresh period to initiate and complete the post
qualification of the second Lowest Calculated Bid. The procedure shall
be repeated until LCRB is identified and selected for recommendation
of 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, if necessary.
33. Notice to Proceed

Within seven (7) calendar days from the date of approval of the Contract by
the appropriate government approving authority, the Procuring Entity shall
issue the Notice to Proceed (NTP) together with a copy or copies of the
approved contract to the successful Bidder. All notices called for by the terms
of the contract shall be effective only at the time of receipt thereof by the
successful Bidder.
34. Protest Mechanism

Decision of the procuring entity at any stage of the procurement process may
be questioned in accordance with Sections 55 of the IRR of RA 9184.
36
Section III. Bid Data Sheet
Notes on the Bid Data Sheet
This Section is intended to assist the Procuring Entity in providing the specific
information in relation to corresponding clauses in the ITB included in Section II,
and has to be prepared for each specific procurement.
The Procuring Entity should specify in the BDS information and requirements
specific to the circumstances of the Procuring Entity, the processing of the
procurement, the applicable rules regarding bid price and currency, and the bid
evaluation criteria that will apply to the Bids. In preparing this Section, the
following aspects should be checked:
(a) Information that specifies and complements provisions of Section II.

Instructions to Bidders must be incorporated.
(b) Amendments and/or supplements, if any, to provisions of Section II.

Instructions to Bidders as necessitated by the circumstances of the specific
procurement, must also be incorporated.
For foreign-assisted projects, the Bid Data Sheet to be used is provided in Section
X-Foreign-Assisted Projects.
37
Bid Data Sheet
ITB Clause
1.1 The Procuring Entity is Philippine Charity Sweepstakes Office c/o
Visayas Department, Branch Operations Sector (BOS).
The name of the Contract is Construction of 2-Storey PCSO Aklan

Branch Office Building.
The identification number of the Contract is 02-2017 (INFRA).
2 The Funding Source is:
The Government of the Philippines (GoP) through the 2017 Approved

Corporate Operating Budget of the PCSO in the amount of Six
Million Four Hundred Twenty-Five Thousand Pesos (Php
6,425,000.00).
The name of the Project is Construction of 2-Storey PCSO Aklan

Branch Office Building.
4 No further instructions.
5.1 No further instructions.
5.2 Bidding is restricted to eligible bidders as defined in ITB Clause 5.1.
5.4(a) No further instructions.
5.4(b) For this purpose, similar contracts shall refer to contracts which have
the same major categories of work. (Architectural and Civil Works,
Iron Works, Plumbing Works, Electrical Works and Wireless Local
Area Network Provision and Mechanical Works).
8.1 Subcontracting is not allowed.
8.2 Not applicable.
9.1 The Procuring Entity will hold a Pre-Bid Conference for this Project
on July 26, 2017 (Wednesday) at 1:30pm at the Bids and Awards
Committee Office 3/F Conservatory Building, 605 Shaw Blvd.,
Mandaluyong City.
10.1 The Procuring Entity’s address is:
Philippine Charity Sweepstakes Office

Special Bids and Awards Committee II
38
3/F Conservatory Building, 605 Shaw Blvd., Mandaluyong City.
Contact person:
Ms. Marileth S. Rodriguez (Head, SBAC II Secretariat)

c/o PCSO General Services Department
Telephone No. (02) 706-9049
Atty. Lauro A. Patiag

SBAC II Chairman
(02) 997-0247 (Telefax)
12.1(a)(iii) No further instructions.
12.1(b)(ii.2) The minimum work experience requirements for key personnel are
the following:
Key Personnel Education/License Relevant

Experience
Project Engineer Licensed Civil At least five (5)

Engineer years actual
construction site
experience as
Resident Engineer
General Foreman Not applicable At least five (5)

years experience in
actual construction
site in a similar
project
Lead Electrician Licensed Master At least five (5)

Electrician or years experience in
Licensed Electrical actual building wiring
Engineer
Safety Officer Safety Officer with Not applicable

Certificate of
Training issued by or
in coordination with
Bureau of Working
Conditions –
Department of Labor
and Employment
(BWC-DOLE)
39
Administrative Staff College Graduate At least one (1) year
experience in similar
projects and
knowledgeable in
Microsoft Office
applications
CAD Draftsman with relevant TESDA At least one (1) year

accreditation or at experience in similar
least graduate of projects and must be
Architecture with knowledgeable in
Auto CAD subjects AUTOCAD and
other graphic and
engineering
applications
12.1(b)(iii.3) The minimum major equipment requirements are the following:
Equipment Capacity Number of

Units
1 Concrete Mixer one (1) bagger 1
2 Welding Machine 250 Amperes 1
13.1 No additional Requirement
13.1(b) This shall include all of the following documents:
1) Bid prices in the Bill of Quantities;
2) 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; and
3) Cash flow by quarter or payment schedule.
13.2 The ABC is Six Million Four Hundred Twenty-Five Thousand

Pesos (Php 6,425,000.00).
Any bid with a financial component exceeding this amount shall not
be accepted.
15.4 No further instruction.
16.1 The bid prices shall be quoted in Philippine Pesos.
40
17.1 Bids will be valid until 120 calendar days from the opening of bids.
18.1 The bid security shall be in the form of a Bid Securing Declaration or
any of the following forms and amounts:
1. The amount of not less than Php 128,500.00 [2% of ABC], if bid
security is in cash, cashier’s/manager’s check, bank
draft/guarantee or irrevocable letter of credit;
2. The amount of not less than Php 321,250.00 [5% of ABC] if bid
security is in Surety Bond.
18.2 The bid security shall be valid for 120 calendar days from bid
opening.
20.3 Each Bidder shall submit one (1) original and six (6) copies of the
first and second components of its bid.
21 The address for submission of bids is SBAC II c/o Bids and Awards
Committee, 3/F Conservatory Building, 605 Shaw Blvd.,
Mandaluyong City.
The deadline for submission of bids is 9:00am August 07, 2017

(Monday)
24.1 The place of bid opening is SBAC II c/o Bids and Awards Committee,
3/F Conservatory Building, 605 Shaw Blvd., Mandaluyong City.
The date and time of bid opening is 9:30am August 07, 2017
(Monday)
27.3 Partial bid is not allowed. The infrastructure project is packaged in a

single lot and the lot shall not be divided into sub-lots for the purpose
of bidding, evaluation, and contract award.
28.2 Building Permit (Mechanical, Structural, Fire, Electrical, Plumbing,

Architectural and Civil) – based on National Building Code of the
Philippines, National Structural Code of the Philippines, Fire Code of
the Philippines, Electrical Code of the Philippines, National Plumbing
Code of the Philippines, Existing Local Codes and Ordinances and
other laws, rules and regulations applicable to the project.
41
31.4(f) The following signed documents shall form part of the original
contract:
a. construction schedule and S-curve;
b. manpower schedule;
c. construction methods;
d. equipment utilization schedule;
e. construction safety and health program approved by the

Department of Labor and Employment;
f. and PERT/CPM or other acceptable tools of project

scheduling.
42
Section IV. General Conditions of Contract
Notes on the General Conditions of Contract

The GCC in Section IV, read in conjunction with the SCC in Section V and other
documents listed therein, should be a complete document expressing all the rights
and obligations of the parties.
The GCC herein shall not be altered. Any changes and complementary
information, which may be needed, shall be introduced only through the SCC in
Section V.
43
TABLE OF CONTENTS
1. DEFINITIONS .................................................................................................. 46
2. INTERPRETATION ............................................................................................ 48
3. GOVERNING LANGUAGE AND LAW ...................................................................... 49
4. COMMUNICATIONS .......................................................................................... 49
5. POSSESSION OF SITE ...................................................................................... 49
6. THE CONTRACTOR’S OBLIGATIONS .................................................................... 50
7. PERFORMANCE SECURITY ................................................................................ 51
8. SUBCONTRACTING .......................................................................................... 52
9. LIQUIDATED DAMAGES ..................................................................................... 52
10. SITE INVESTIGATION REPORTS .......................................................................... 53
11. THE PROCURING ENTITY, LICENSES AND PERMITS................................................ 53
12. CONTRACTOR’S RISK AND W ARRANTY SECURITY ................................................. 53
13. LIABILITY OF THE CONTRACTOR ......................................................................... 55
14. PROCURING ENTITY’S RISK .............................................................................. 55
15. INSURANCE .................................................................................................... 56
16. TERMINATION FOR DEFAULT OF CONTRACTOR ..................................................... 57
17. TERMINATION FOR DEFAULT OF PROCURING ENTITY ............................................. 58
18. TERMINATION FOR OTHER CAUSES .................................................................... 59
19. PROCEDURES FOR TERMINATION OF CONTRACTS ................................................. 60
20. FORCE MAJEURE, RELEASE FROM PERFORMANCE ............................................... 63
21. RESOLUTION OF DISPUTES ............................................................................... 63
22. SUSPENSION OF LOAN, CREDIT, GRANT, OR APPROPRIATION ................................. 64
23. PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS........................................... 64
24. APPROVAL OF DRAWINGS AND TEMPORARY W ORKS BY THE PROCURING ENTITY’S
REPRESENTATIVE ........................................................................................... 65
25. ACCELERATION AND DELAYS ORDERED BY THE PROCURING ENTITY’S REPRESENTATIVE65
26. EXTENSION OF THE INTENDED COMPLETION DATE ................................................ 65
27. RIGHT TO VARY .............................................................................................. 66
28. CONTRACTORS RIGHT TO CLAIM........................................................................ 66
29. DAYWORKS.................................................................................................... 66
44
30. EARLY W ARNING ............................................................................................ 66
31. PROGRAM OF W ORK ....................................................................................... 67
32. MANAGEMENT CONFERENCES........................................................................... 67
33. BILL OF QUANTITIES ........................................................................................ 68
34. INSTRUCTIONS, INSPECTIONS AND AUDITS........................................................... 68
35. IDENTIFYING DEFECTS ..................................................................................... 69
36. COST OF REPAIRS .......................................................................................... 69
37. CORRECTION OF DEFECTS ............................................................................... 69
38. UNCORRECTED DEFECTS ................................................................................. 69
39. ADVANCE PAYMENT ........................................................................................ 70
40. PROGRESS PAYMENTS .................................................................................... 70
41. PAYMENT CERTIFICATES .................................................................................. 71
42. RETENTION .................................................................................................... 71
43. VARIATION ORDERS ........................................................................................ 72
44. CONTRACT COMPLETION .................................................................................. 74
45. SUSPENSION OF W ORK .................................................................................... 74
46. PAYMENT ON TERMINATION .............................................................................. 75
47. EXTENSION OF CONTRACT TIME ........................................................................ 75
48. PRICE ADJUSTMENT ........................................................................................ 77
49. COMPLETION.................................................................................................. 77
50. TAKING OVER................................................................................................. 77
51. OPERATING AND MAINTENANCE MANUALS........................................................... 77
45
1. Definitions
For purposes of this Clause, boldface type is used to identify defined terms.
1.1. The Arbiter is the person appointed jointly by the Procuring Entity and
the Contractor to resolve disputes in the first instance, as provided for
in GCC Clause 21.
1.2. Bill of Quantities refers to a list of the specific items of the Work and
their corresponding unit prices, lump sums, and/or provisional sums.
1.3. The Completion Date is the date of completion of the Works as

certified by the Procuring Entity’s Representative, in accordance with
GCC Clause 49.
1.4. The Contract is the contract between the Procuring Entity and the
Contractor to execute, complete, and maintain the Works.
1.5 The Contract Effectivity Date is the date of signing of the Contract.
However, the contractor shall commence execution of the Works on
the Start Date as defined in GCC Clause 1.28.
1.6 The 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 Extension is the allowable period for the Contractor to
complete the Works in addition to the original Completion Date stated
in this Contract.
1.8 The Contractor is the juridical entity whose proposal has been
accepted by the Procuring Entity and to whom the Contract to execute
the Work was awarded.
1.9 The 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; months are calendar months.
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 A Defect is any part of the Works not completed in accordance with the
Contract.
1.13 The Defects Liability Certificate is the certificate issued by Procuring

Entity’s Representative upon correction of defects by the Contractor.
1.14 The Defects Liability Period is the one year period between contract
completion and final acceptance within which the Contractor assumes
46
the responsibility to undertake the repair of any damage to the Works
at his own expense.
1.15 Drawings are graphical presentations of the Works. They include all
supplementary details, shop drawings, calculations, and other
information provided or approved for the execution of this Contract.
1.16 Equipment refers to all facilities, supplies, appliances, materials or

things required for the execution and completion of the Work provided
by the Contractor and which shall not form or are not intended to form
part of the Permanent Works.
1.17 The 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 time or an
acceleration order.
1.18 Materials are all supplies, including consumables, used by the

Contractor for incorporation in the Works.
1.19 The Notice to Proceed is a written notice issued by the Procuring

Entity or the Procuring Entity’s Representative to the Contractor
requiring the latter to begin the commencement of the work not later
than a specified or determinable date.
1.20 Permanent Works are 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.
1.21 Plant refers to the machinery, apparatus, and the like intended to form
an integral part of the Permanent Works.
1.22 The Procuring Entity is the party who employs the Contractor to carry
out the Works stated in the SCC.
1.23 The Procuring Entity’s Representative refers to the Head of the

Procuring Entity or his duly authorized representative, identified in the
SCC, who shall be responsible for supervising the execution of the
Works and administering this Contract.
1.24 The Site is the 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.
1.25 Site Investigation Reports are those that were included in the Bidding
Documents and are factual and interpretative reports about the surface
and subsurface conditions at the Site.
47
1.26 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 Work by the
Contractor as established from the work schedule. This is actually
described as a percentage of the whole Works.
1.27 Specifications means the description of Works to be done and the

qualities of materials to be used, the equipment to be installed and the
mode of construction.
1.28 The Start Date, as specified in the SCC, is the date when the
Contractor is obliged to commence execution of the Works. It does not
necessarily coincide with any of the Site Possession Dates.
1.29 A Subcontractor is any person or organization to whom a part of the

Works has been subcontracted by the Contractor, as allowed by the
Procuring Entity, but not any assignee of such person.
1.30 Temporary Works are works designed, constructed, installed, and

removed by the Contractor that are needed for construction or
installation of the Permanent Works.
1.31 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
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;
48
b) Bid Data Sheet;
c) Instructions to Bidders;
d) Addenda to the Bidding Documents;
e) Special Conditions of Contract;
f) General Conditions of Contract;
g) Specifications;
h) Bill of Quantities; and
i) Drawings.
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 the Conditions shall
be effective only when in writing. A notice shall be effective only when it is
received by the concerned party.
5. Possession of Site
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 the 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
47.
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
49
Site. The Contractor shall also provide at his 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.
6. The 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 Contractor's 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 Program of
Work submitted by the Contractor, as updated with the approval of the
Procuring Entity’s Representative, and complete them 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, as referred to 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 his 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
50
between 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 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. Within ten (10) calendar days from receipt of the Notice of Award from
the Procuring Entity but in no case later than the signing of the contract
by both parties, the Contractor shall furnish the performance security in
any of the forms prescribed in ITB Clause 32.2.
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:
(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 32.2 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
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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
the Contract with the Procuring Entity, acknowledges the right of the
Procuring Entity to institute action pursuant to Act 3688 against any
subcontractor 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. Subcontracting
8.1. Unless otherwise indicated in the SCC, the Contractor cannot
subcontract Works more than the percentage specified in BDS Clause
8.1.
8.2. Subcontracting of any portion of the Works does not relieve the
Contractor of any liability or obligation under this Contract. The
Contractor will be responsible for the acts, defaults, and negligence of
any subcontractor, its agents, servants or workmen as fully as if these
were the Contractor’s own acts, defaults, or negligence, or those of its
agents, servants or workmen.
8.3. If subcontracting is allowed. The contractor may identify its

subcontractor during contract implementation stage. Subcontractors
disclosed and identified during the bidding may be changed during the
implementation of this Contract. In either case, subcontractors must
submit the documentary requirements under ITB Clause 12 and
comply with the eligibility criteria specified in the BDS. In the event that
any subcontractor is found by any Procuring Entity to be eligible, the
subcontracting of such portion of the Works shall be disallowed.
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’s liabilities. Once the cumulative amount of liquidated
damages reaches ten percent (10%) of the amount of this Contract, the
Procuring Entity may rescind or terminate this Contract, without
prejudice to other courses of action and remedies available under the
circumstances.
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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. The Procuring Entity, Licenses and Permits

The Procuring Entity shall, if requested by the Contractor, assist him in
applying for permits, licenses or approvals, which are required for the Works.
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.
During this period, the Contractor shall undertake the repair works, at
his own expense, of any damage to the Works on account of the use of
materials of inferior quality 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 property(ies) 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
Contractor 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
53
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 – The project
owner’s representative(s), project manager, construction
manager, and supervisor(s) shall be held liable in cases 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 - Third Parties shall be held liable in cases 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 - In cases 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.
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:
54
Amount of Warranty
Security
Form of Warranty Not less than the
Percentage (%) of Total
Contract Price
(a) Cash or letter of credit issued by
Universal or Commercial bank:
provided, however, that the letter
of credit shall be confirmed or Five Percent (5%)
authenticated by a Universal or
Commercial bank, if issued by a
foreign bank
(b) Bank guarantee confirmed by
Universal or Commercial bank:
provided, however, that the letter
of credit shall be confirmed or Ten Percent (10%)
authenticated by a Universal or
Commercial bank, if issued by a
foreign bank
(c) Surety bond callable upon demand
issued by GSIS or any surety or
Thirty Percent (30%)
insurance company duly certified
by the Insurance Commission
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
liability under this Contract shall be as provided by the laws of the Republic of
the Philippines.
14. Procuring Entity’s Risk

14.1. From the Start Date until the Certificate of Final Acceptance has been
issued, the following are risks of the Procuring Entity:
55
(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:
(i) any type of use or occupation of the Site authorized by

the Procuring Entity after the official acceptance of the
works; or
(ii) 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 country where
the Works are to be executed.
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 Contractor shall provide evidence to the Procuring Entity’s

Representative that the insurances required under this Contract have
been effected and shall, within a reasonable time, provide copies of the
insurance policies to the Procuring Entity’s Representative. Such
evidence and such policies shall be provided to the Procuring Entity’s
through the Procuring Entity’s Representative.
15.3. The Contractor shall notify the insurers of changes in the nature,
extent, or program for the execution of the Works and ensure the
adequacy of the insurances at all times in accordance with the terms of
this Contract and shall produce to the Procuring Entity’s
Representative the insurance policies in force including the receipts for
payment of the current premiums.
The above insurance policies shall be obtained from any reputable

insurance company approved by the Procuring Entity’s Representative.
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15.4. If the Contractor fails to obtain and keep in force the insurances
referred to herein or any other insurance which he may be required to
obtain under the terms of this Contract, the Procuring Entity may obtain
and keep in force any such insurances 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.
15.5. 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 40 until the Contractor
complies with this Clause.
15.6. 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:
(i) become bankrupt;
(ii) been placed under receivership or under a management

committee;
(iii) been sued for suspension of payment; or
(iv) been suspended by the Insurance Commission and its

license to engage in business or its authority to issue
insurance policies cancelled; or
(v) Where 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:
(i) Due to the Contractor’s fault and while the project is on-going, it
has incurred negative slippage of fifteen percent (15%) or more
in accordance with Presidential Decree 1870, regardless of
whether or not previous warnings and notices have been issued
for the Contractor to improve his performance;
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(ii) Due to its own fault and after this Contract time has expired, the
Contractor incurs delay in the completion of the Work after this
Contract has expired; or
(iii) The Contractor:
(i) 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;
(ii) does not actually have on the project Site the minimum
essential equipment listed on the bid necessary to
prosecute the Works in accordance with the approved
Program of Work and equipment deployment schedule as
required for the project;
(iii) does not execute the Works in accordance with this

Contract or persistently or flagrantly neglects to carry out
its obligations under this Contract;
(iv) neglects or refuses to remove materials or to perform a

new Work that has been rejected as defective or
unsuitable; or
(v) sub-lets any part of this Contract without approval by the

Procuring Entity.
16.2. All materials on the Site, Plant, Works, including Equipment purchased
and funded under the Contract shall be deemed to be the property of
the Procuring Entity if this Contract is rescinded because of the
Contractor’s default.
17. Termination for Default of Procuring Entity

The Contractor may terminate this Contract with the Procuring Entity if the
works are completely stopped for a continuous period of at least sixty (60)
calendar days through no fault of its own, due to any of the following reasons:
(a) 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
(b) The prosecution of the Work is disrupted by the adverse peace and
order situation, as certified by the Armed Forces of the Philippines
Provincial Commander and approved by the Secretary of National
Defense.
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18. Termination for Other Causes
18.1. 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.
18.2. The Procuring Entity or the Contractor may terminate this Contract if
the other party causes a fundamental breach of this Contract.
18.3. Fundamental breaches of Contract shall include, but shall not be

limited to, the following:
(a) 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;
(b) 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;
(c) The Procuring Entity shall terminate this Contract if 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 Works;
(d) A payment certified by the Procuring Entity’s Representative is

not paid by the Procuring Entity to the Contractor within eighty
four (84) days from the date of the Procuring Entity’s
Representative’s certificate;
(e) 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;
(f) The Contractor does not maintain a Security, which is required;
(g) 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; and
59
(h) 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:
(i) corrupt, fraudulent, collusive, coercive, and obstructive

practices as defined in ITB Clause 3.1(a), unless
otherwise specified in the SCC;
(ii) drawing up or using forged documents;
(iii) using adulterated materials, means or methods, or

engaging in production contrary to rules of science or the
trade; and
(iv) any other act analogous to the foregoing.
18.4. The Funding Source or the Procuring Entity, as appropriate, 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.
18.5. When persons from either party to this Contract 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 18.3, the Procuring Entity’s Representative shall
decide whether the breach is fundamental or not.
18.6. 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.
19. Procedures for Termination of Contracts

19.1. The following provisions shall govern the procedures for the
termination of this Contract:
(a) Upon receipt of a written report of acts or causes which may

constitute ground(s) for termination as aforementioned, or upon
its own initiative, the Procuring Entity 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) Upon recommendation by the Procuring Entity, the HoPE shall

terminate this Contract only by a written notice to the Contractor
conveying the termination of this Contract. The notice shall
state:
60
(i) that this Contract is being terminated for any of the
ground(s) afore-mentioned, and a statement of the acts
that constitute the ground(s) constituting the same;
(ii) the extent of termination, whether in whole or in part;
(iii) an instruction to the Contractor to show cause as to why

this Contract should not be terminated; and
(iv) special instructions of the Procuring Entity, if any.
The Notice to Terminate shall be accompanied by a copy of the

Verified Report;
(c) 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 stating why the contract should not be
terminated. If the Contractor fails to show cause after the lapse
of the seven (7) day period, either by inaction or by default, the
HoPE shall issue an order terminating the contract;
(d) The Procuring Entity may, at anytime before receipt of the

Contractor’s verified position paper described in item (c) above
withdraw the Notice to Terminate 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) Within a non-extendible period of ten (10) calendar days from

receipt of the verified position paper, the HoPE shall decide
whether or not to terminate this Contract. It shall serve a written
notice to the Contractor of its decision and, unless otherwise
provided in the said notice, this Contract is deemed terminated
from receipt of the Contractor of the notice of decision. The
termination shall only be based on the ground(s) stated in the
Notice to Terminate; and
(f) The HoPE may create a Contract Termination Review

Committee (CTRC) to assist him in the discharge of this
function. All decisions recommended by the CTRC shall be
subject to the approval of the HoPE.
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 penalty 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:
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(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:
(i) Employment of competent technical personnel,

competent engineers and/or work supervisors;
(ii) Provision of warning signs and barricades in accordance

with approved plans and specifications and contract
provisions;
(iii) Stockpiling in proper places of all materials and removal

from the project site of waste and excess materials,
including broken pavement and excavated debris in
accordance with approved plans and specifications and
contract provisions;
(iv) Deployment of committed equipment, facilities, support

staff and manpower; and
(v) Renewal of the effectivity dates of the performance

security 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 following acts by the
Contractor shall be construed as poor performance:
(i) Negative slippage of 15% and above within the critical

path of the project due entirely to the fault or negligence
of the contractor; and
(ii) Quality of materials and workmanship not complying with

the approved specifications arising from the contractor's
fault or negligence.
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(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, 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 works carried out before receiving it and for
any Work 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 then give notice of termination, which shall take effect twenty eight
(28) days after the giving 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.
20.5. The net balance due shall be paid or repaid within a reasonable time
period from the time of the notice of termination.
21. Resolution of Disputes

21.1. If any dispute or difference of any kind whatsoever shall arise between
the parties in connection with the implementation of the contract
covered by the Act and this IRR, the parties shall make every effort to
resolve amicably such dispute or difference by mutual consultation.
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21.2. 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.
21.3. Any and all disputes arising from the implementation of this Contract
covered by the R.A. 9184 and its IRR shall be submitted to arbitration
in the Philippines according to the provisions of Republic Act No. 876,
otherwise known as the “ Arbitration Law” and Republic Act 9285,
otherwise known as the “Alternative Dispute Resolution Act of 2004”:
Provided, however, That, disputes that are within the competence of
the Construction Industry Arbitration Commission to resolve shall be
referred thereto. The process of arbitration shall be incorporated as a
provision in this Contract that will be executed pursuant to the
provisions of the Act and its IRR: Provided, further, That, by mutual
agreement, the parties may agree in writing to resort to other
alternative modes of dispute resolution.
22. 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 45.2.
23. Procuring Entity’s Representative’s Decisions

23.1. Except where otherwise specifically stated, the Procuring Entity’s
Representative will decide contractual matters between the Procuring
Entity and the Contractor in the role representing the Procuring Entity.
23.2. 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.
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24. Approval of Drawings and Temporary Works by the Procuring
Entity’s Representative
24.1. 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 its use.
24.2. The Contractor shall be responsible for design of Temporary Works.
24.3. The Procuring Entity’s Representative’s approval shall not alter the
Contractor’s responsibility for design of the Temporary Works.
24.4. The Contractor shall obtain approval of third parties to the design of the
Temporary Works, when required by the Procuring Entity.
25. Acceleration and Delays Ordered by the Procuring Entity’s

Representative
25.1. When the Procuring Entity wants the Contractor to finish before the
Intended Completion Date, the Procuring Entity’s Representative will
obtain priced proposals 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.
25.2. 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.
26. Extension of the Intended Completion Date

26.1. The Procuring Entity’s Representative shall extend the Intended
Completion Date if a Variation 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.
26.2. 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 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.
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27. Right to Vary
27.1. The Procuring Entity’s Representative with the prior approval of the
Procuring Entity may instruct Variations, up to a maximum cumulative
amount of ten percent (10%) of the original contract cost.
27.2. Variations shall be valued as follows:
(a) At a lump sum price agreed between the parties;
(b) where appropriate, at rates in this Contract;
(c) in the absence of appropriate rates, the rates in this Contract

shall be used as the basis for valuation; or failing which
(d) at appropriate new rates, equal to or lower than current industry

rates and to be agreed upon by both parties and approved by
the HoPE.
28. Contractor's Right to Claim

If the Contractor incurs 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.
29. Dayworks
29.1. Subject to GCC Clause 43 on Variation Order, 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.
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
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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.
31.2. An update of the Program of Work shall 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.
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
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deal with matters raised in accordance with the early warning
procedure.
32.2. The Procuring Entity’s Representative shall record the business of

Management Conferences and provide copies of the record to those
attending the Conference and to the Procuring Entity. 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 shall contain items of work for the construction,
installation, testing, and commissioning of work to be done by the
Contractor.
33.2. The Bill of Quantities is used to calculate the Contract Price. The
Contractor is paid for the quantity of the work done at the rate in the Bill
of Quantities for each item.
33.3. If the final quantity of any work done differs from the quantity in the Bill
of Quantities for the particular item and is not more than twenty five
percent (25%) of the original quantity, provided the aggregate changes
for all 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 with a detailed cost
breakdown of any rate in the Bill of Quantities.
34. Instructions, Inspections and Audits

34.1. The Procuring Entity’s personnel shall at all reasonable times during
construction of the Work 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 Specification 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.
34.3. The Contractor shall permit the Funding Source named in the SCC to
inspect the Contractor’s accounts and records relating to the
performance of the Contractor and to have them audited by auditors
appointed by the Funding Source, if so required by the Funding
Source.
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35. Identifying 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 search uncover defects and test any work that
the Procuring Entity’s Representative considers below standards 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 Periods shall be
remedied by the Contractor at the Contractor’s cost 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) year from project completion up to final acceptance by
the Procuring Entity’s Representative.
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 he notices himself
before the end of the Defects Liability Period.
37.4. The Procuring Entity shall certify that all defects have been corrected. If
the Procuring Entity 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
accepts the quotation, the corresponding change in the SCC is a
Variation.
38. Uncorrected Defects

38.1. The Procuring Entity shall give the Contractor at least fourteen (14)
days notice of his intention to use a third party to correct a Defect. If the
Contractor does not correct the Defect himself within the period, the
Procuring Entity may have the Defect corrected by the third party. The
cost of the correction will be deducted from the Contract Price.
38.2. The use of a third party to correct defects that are uncorrected by the
Contractor will in no way relieve the Contractor of its liabilities and
warranties under the Contract.
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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 exceeding fifteen percent
(15%) of the total contract price, to be made in lump sum or, at the
most two, installments according to a schedule specified in the SCC.
39.2. The advance payment shall be made only upon the submission 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 an amount

equal to the percentage of the total contract price used for the advance
payment.
39.4. The contractor may reduce his standby letter of credit or guarantee
instrument by the amounts refunded by the Monthly Certificates in the
advance payment.
39.5. The Procuring Entity will provide an Advance Payment on the Contract
Price as stipulated in the Conditions of Contract, subject to the
maximum amount stated in SCC Clause 39.1.
40. Progress Payments

40.1. The Contractor may submit a request for payment for Work
accomplished. Such request for payment shall be verified and certified
by the Procuring Entity’s Representative/Project Engineer. 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.
40.2. The Procuring Entity shall deduct the following from the certified gross
amounts to be paid 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.
(c) Retention money in accordance with the condition of contract.
(d) Amount to cover third party liabilities.
(e) Amount to cover uncorrected discovered defects in the works.
40.3. Payments shall be adjusted by deducting therefrom the amounts for

advance payments and retention. The Procuring Entity shall pay the
Contractor the amounts certified by the Procuring Entity’s
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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.
40.4. 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 accomplished as certified by the Procuring Entity’s
Representative.
40.5. 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. Payment Certificates

41.1. The Contractor shall submit to the Procuring Entity’s Representative
monthly statements of the estimated value of the work executed less
the cumulative amount certified previously.
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.
42. Retention
42.1. The Procuring Entity shall retain from each payment due to the
Contractor an amount equal to a percentage thereof using the rate as
specified in GCC Sub-Clause 42.2.
42.2. Progress payments are subject to retention of ten percent (10%),

referred to as the “retention money.” Such retention 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 Works, as determined by the Procuring Entity, are completed.
If, after fifty percent (50%) completion, the Work is 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.
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42.3. 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
irrevocable standby letters of credit from a commercial bank, bank
guarantees or surety bonds callable on demand, of amounts equivalent
to the retention money substituted for and acceptable to the Procuring
Entity, provided that the project is on schedule and is satisfactorily
undertaken. Otherwise, the ten (10%) percent retention shall be made.
Said irrevocable standby letters of credit, bank guarantees and/or
surety bonds, to be posted in favor of the Government shall be valid for
a duration to be determined by the concerned implementing
office/agency or Procuring Entity and will answer for the purpose for
which the ten (10%) percent retention is intended, i.e., to cover
uncorrected discovered defects and third party liabilities.
42.4. 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 may be issued by the Procuring Entity to cover any
increase/decrease in quantities, including the introduction of new work
items that are not included in the original contract or reclassification of
work items that are either due to change of plans, design or alignment
to suit actual field conditions resulting 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,
provided that the cumulative amount of the Variation Order does not
exceed ten percent (10%) of the original project cost. The
addition/deletion of Works should be within the general scope of the
project as bid and awarded. The scope of works shall not be reduced
so as to accommodate a positive Variation Order. A Variation Order
may either be in the form of a Change Order or Extra Work Order.
43.2. A Change Order may be issued by the Procuring Entity to cover any
increase/decrease in quantities of original Work items in the contract.
43.3. An Extra Work Order may be issued by the Procuring Entity 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 Work or character provided for in the contract.
43.4. Any cumulative Variation Order beyond ten percent (10%) shall be
subject of another contract to be bid out if the works are separable from
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the original contract. In exceptional cases where it is urgently
necessary to complete the original scope of work, the HoPE may
authorize a positive Variation Order go beyond ten percent (10%) but
not more than twenty percent (20%) of the original contract price,
subject to the guidelines to be determined by the GPPB: Provided,
however, That appropriate sanctions shall be imposed on the designer,
consultant or official responsible for the original detailed engineering
design which failed to consider the Variation Order beyond ten percent
(10%).
43.5. In claiming for any Variation Order, 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 preparation and submission of Variation
Orders are as follows:
(a) If the Procuring Entity’s representative/Project Engineer believes

that a Change Order or Extra Work Order should be issued, he
shall prepare the proposed Order accompanied with the notices
submitted by the Contractor, the plans therefore, his
computations as to the quantities of the additional 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 need of such Change Order or Extra Work 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 Entity to conduct an on-the-spot investigation to
verify the need for the Work to be prosecuted and to review the
proposed plan, and prices of the work involved.
(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 Head of
Procuring Entity 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, shall
approve the Change Order or Extra Work Order after being
satisfied that the same is justified, necessary, and in order.
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(e) The timeframe for the processing of Variation Orders from the
preparation up to the approval by the Procuring Entity
concerned shall not exceed thirty (30) calendar days.
44. Contract Completion

Once the project reaches an accomplishment of ninety five (95%) of the total
contract amount, the Procuring Entity may create an inspectorate team to
make preliminary inspection and submit a punch-list to the Contractor in
preparation for the final turnover of the project. Said punch-list will contain,
among others, the remaining Works, Work deficiencies for necessary
corrections, and the specific duration/time to fully complete the project
considering the approved remaining contract time. This, however, shall not
preclude the claim of the Procuring Entity for liquidated damages.
45. Suspension of Work

45.1. The Procuring Entity shall have the authority to suspend the work
wholly or partly by written order for such period as may be deemed
necessary, due to force majeure or any fortuitous events or for failure
on the part of the Contractor to correct bad conditions which are unsafe
for workers or for the general public, to carry out valid orders given by
the Procuring Entity or to perform any provisions of the contract, or due
to adjustment of plans to suit field conditions as found necessary
during construction. The Contractor shall immediately comply with such
order to suspend the work 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, due to the following:
(a) There exist right-of-way problems which prohibit the Contractor

from performing work in accordance with the approved
construction 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.
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(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 that the documents are complete
unless there are justifiable reasons thereof which shall be
communicated in writing to the Contractor.
45.3. In case of total suspension, or suspension of activities along the critical

path, which is not due to any fault of the Contractor, the elapsed time
between the effectivity of the order suspending operation and the order
to resume work shall be allowed the Contractor by adjusting the
contract time accordingly.
46. Payment on Termination

46.1. 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 percentage to apply to the value of the work not
completed, as indicated in the SCC. 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.
46.2. 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 Equipment, repatriation of the Contractor’s personnel
employed solely on the Works, and the Contractor’s costs of protecting
and securing the Works, and less advance payments received up to
the date of the certificate.
46.3. The net balance due shall be paid or repaid within twenty eight (28)
days from the notice of termination.
46.4. If the Contractor has terminated the Contract under GCC Clauses 17 or
18, the Procuring Entity shall promptly return the Performance Security
to the Contractor.
47. Extension of Contract Time

47.1. Should the amount of additional work of any kind 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
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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) 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 completing
the contract work when, in the Procuring Entity’s opinion, the findings
of facts justify an extension.
47.2. 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.
47.3. Extension of contract time may be granted only when the affected
activities fall within the critical path of the PERT/CPM network.
47.4. 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.
47.5. Extension of contract time shall be granted for 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, and/or for
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 or
non-execution of deed of sale or donation 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. Shortage of construction
materials, general labor strikes, and peace and order problems that
disrupt construction operations through no fault of the Contractor may
be considered as additional grounds for extension of contract time
provided they are publicly felt and certified by appropriate government
agencies such as DTI, DOLE, DILG, and DND, among others. 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.
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48. Price Adjustment
Except for extraordinary circumstances as determined by NEDA and
approved by the GPPB, no price escalation shall be allowed. 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.
49. Completion
The Contractor shall request the Procuring Entity’s Representative to issue a
certificate of Completion of the Works, and the Procuring Entity’s
Representative will do so upon deciding that the work is completed.
50. 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 Completion.
51. Operating and Maintenance Manuals

51.1. If “as built” Drawings and/or operating and maintenance manuals are
required, the Contractor shall supply them by the dates stated in the
SCC.
51.2. If the Contractor does not supply the Drawings and/or manuals by the
dates stated in the SCC, or they do not receive the Procuring Entity’s
Representative’s approval, the Procuring Entity’s Representative shall
withhold the amount stated in the SCC from payments due to the
Contractor.
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Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract
Similar to the Section III. Bid Data Sheet, the clauses in this Section are intended
to assist the Procuring Entity in providing contract-specific information in relation to
corresponding clauses in the GCC.
The provisions of this Section complement the GCC, specifying contractual
requirements linked to the special circumstances of the Procuring Entity, the
Procuring Entity’s country, the sector, and the Works procured. In preparing this
Section, the following aspects should be checked:
(a) Information that complements provisions of Section IV. General Conditions
of Contract must be incorporated.
(b) Amendments and/or supplements to provisions of Section IV. General
Conditions of Contract, as necessitated by the circumstances of the specific
project, must also be incorporated.
However, no special condition which defeats or negates the general intent and
purpose of the provisions of Section IV. General Conditions of Contract should be
incorporated herein.
For foreign-assisted projects, the Special Conditions of Contract to be used is
provided in Section X-Foreign-Assisted Projects.
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Special Conditions of Contract
GCC Clause
1.17 The Intended Completion Date is within six (6) months from
Notice to Proceed (NTP).
1.22 The Procuring Entity is Philippine Charity Sweepstakes Office
(PCSO) with principal office address at Sun Plaza Building, 1507
Shaw Boulevard corner Princeton St., Mandaluyong City, Metro
Manila.
1.23 The Procuring Entity’s Representative are:
The General Manager
Philippine Charity Sweepstakes Office; or
The Manager
Visayas Department
1.24 The Site is Lot 8 Block 3, Capitol Site Subd. Bgy. Estancia, Kalibo,
Aklan City is defined in drawing No. A-1 (Perspective, Site Development
Plan and Vicinity Map).
1.28 The Start Date is within seven (7) days from issuance and the
contractor’s letter of acceptance of the NTP.
1.31 The Works consist of a 2-storey building that will house the Aklan
Branch Office and the Agency’s charitable services and intended
to cater to the gaming public and indigent clientele of Aklan.
The building will sit on a lot consisting of Two Hundred Eighty-

square meters (280 sqm) and will have a complete Architectural
and Civil Works, Iron Works, Plumbing Works, Electrical Works
and Wireless Local Area Network Provision and Mechanical
Works as prepared and submitted by the PCSO General
Services Department.
2.2 No further instructions
5.1 The Procuring Entity shall give possession of all parts of the Site
to the Contractor preferably within seven (7) days from receipt of
the contractor’s letter of acceptance of the NTP.
6.5 The Contractor shall employ the following Key Personnel:
1. Duly accomplished and signed List of Contractor’s Key

Personnel specially assigned to the project both full time and part
time.
The Contractor shall deploy Key Personnel with the following

designations/ roles/ functions and qualifications:
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Full Time: (must be available during the construction project
duration and as required by PCSO)
a.) Resident Engineer – Licensed Civil Engineer with at least five

(5) years of experience as Resident Engineer in similar
projects.
-Structural Engineer accredited by ASEP.
b.) General Foreman – Construction Foreman with at least five

(5) years of experience in similar projects.
c.) Lead Electrician – Licensed Master Electrician with at least
five (5 years) of experience in similar projects.
d.) Safety Officer – Safety Officer with a Certificate of Training
issued by or in coordination with BWC or DOLE.
e.) Administrative Staff – College Graduate with at least one (1)
year experience in similar projects.
f.) CAD Draftsman – with relevant TESDA accreditation or at
least graduate of Architecture with Auto CAD subjects.
Part Time: (must be available during project coordination

meeting or as needed and as requested by PCSO)
a.) Project Manager – shall serve as the CONSTRUCTION

TEAM LEADER in-charge of Construction. The Construction
Team Leader shall be a licensed Civil Engineer or Architect
with at least five (5) years of experience as Project Manager
in similar project
b.) Electrical Engineer – duly licensed with at least (5) years of
experience as Electrical Engineer in similar projects.
c.) Mechanical Engineer – duly licensed with at least five (5)
years of experience as Mechanical Engineer in similar
projects.
d.) Quantity Surveyor– preferably licensed Civil Engineer or
Architect with at least two (2) years of experience as Quantity
Surveyor in similar projects.
A full time Resident Engineer may assume a maximum of two

(2) designations, as follows:
 Project Manager may also be the Resident Engineer

 Resident Engineer may also be the Safety Officer
 Resident Engineer may also be the Quantity Surveyor.
However, the following designations shall be performed by
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different individuals:
 General Foreman
 Lead Electrician
 Administrative Staff
 Electrical Engineer
 Mechanical Engineer
2. Duly signed Bio-Data of Contractor’s Key Personnel.

3. Duly notarized Affidavit of Commitments from the bidder’s Key
Personnel
4. Certificate of Site Inspection issued by the Manager, PCSO
Cavite Branch Office or his/ her authorized representative.
The names of the Key Personnel and their designation shall

be filled out by winning contractor prior to contract signing.
7.4(c) No further instructions.
10 Refer to attached PCSO General Services Department’s Survey,
Site Investigation and Estimated Construction Schedule and Cash
Flow for the Construction of 2-storey Aklan Branch Office Building.
12.5 In case of permanent structures, such as buildings of types 4 and
5 as classified under the National Building Code of the Philippines
and other structures made of steel, iron, or concrete which comply
with relevant structural codes (e.g., DPWH Standard
Specifications), such as, but not limited to, steel/concrete bridges,
flyovers, aircraft movement areas, ports, dams, tunnels, filtration
and treatment plants, sewerage systems, power plants,
transmission and communication towers, railway system, and
other similar permanent structures: Fifteen (15) years.
13 If the Contractor is a joint venture, all partners to the joint venture
shall be jointly and severally liable to the Procuring Entity.
18.3(h)(i) No further instructions.
21.2 The Arbiter shall be mutually selected by the contractor and the
procuring entity from the roster of PCAB/CIAP accredited arbiters.
Provided, that the venue of all arbitration/mediation proceeding
shall be at the place nearest to the principal business address of
the Philippine Charity Sweepstakes Office in Metro Manila.
29.1 No dayworks are applicable to the contract.
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31.1 The Contractor shall submit the Program of Work to the Procuring
Entity’s Representative within seven (7) days of delivery of the
Notice of Award.
31.3 The period between Program of Work updates is 30 days.
34.3 The Funding Source is the Government of the Philippines.
39.1 The amount of the advance payment is 15% of the Total Contract
Price.
51.1 Upon submission of final billing, the following must be submitted
before payment:
1. “As built” drawings

2. Operating manual
3. Maintenance manual
51.2 The amount to be withheld for failing to produce “as built”
drawings and/or operating and maintenance manuals by the date
required is equivalent to the amount of final payment.
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Section VI. Specifications
Notes on Specifications
A set of precise and clear specifications is a prerequisite for Bidders to respond
realistically and competitively to the requirements of the Procuring Entity without
qualifying or conditioning their Bids. In the context of international competitive
bidding, the specifications must be drafted to permit the widest possible
competition and, at the same time, present a clear statement of the required
standards of workmanship, materials, and performance of the goods and services
to be procured. Only if this is done will the objectives of economy, efficiency, and
fairness in procurement be realized, responsiveness of Bids be ensured, and the
subsequent task of bid evaluation facilitated. The specifications should require
that all goods and materials to be incorporated in the Works be new, unused, of
the most recent or current models, and incorporate all recent improvements in
design and materials unless provided otherwise in the Contract.
Samples of specifications from previous similar projects are useful in this respect.
The use of metric units is mandatory. Most specifications are normally written
specially by the Procuring Entity or its representative to suit the Works at hand.
There is no standard set of Specifications for universal application in all sectors in
all regions, but there are established principles and practices, which are reflected
in these PBDs.
There are considerable advantages in standardizing General Specifications for

repetitive Works in recognized public sectors, such as highways, ports, railways,
urban housing, irrigation, and water supply, in the same country or region where
similar conditions prevail. The General Specifications should cover all classes of
workmanship, materials, and equipment commonly involved in construction,
although not necessarily to be used in a particular Works Contract. Deletions or
addenda should then adapt the General Specifications to the particular Works.
Care must be taken in drafting specifications to ensure that they are not restrictive.
In the specification of standards for goods, materials, and workmanship,
recognized international standards should be used as much as possible. Where
other particular standards are used, whether national standards or other
standards, the specifications should state that goods, materials, and workmanship
that meet other authoritative standards, and which ensure substantially equal or
higher quality than the standards mentioned, will also be acceptable. The
following clause may be inserted in the SCC.
Sample Clause: Equivalency of Standards and Codes
Wherever reference is made in the Contract to specific standards and codes to be

met by the goods and materials to be furnished, and work performed or tested, the
provisions of the latest current edition or revision of the relevant standards and
codes in effect shall apply, unless otherwise expressly stated in the Contract.
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Where such standards and codes are national, or relate to a particular country or
region, other authoritative standards that ensure a substantially equal or higher
quality than the standards and codes specified will be accepted subject to the
Procuring Entity’s Representative’s prior review and written consent. Differences
between the standards specified and the proposed alternative standards shall be
fully described in writing by the Contractor and submitted to the Procuring Entity’s
Representative at least twenty-eight (28) days prior to the date when the
Contractor desires the Procuring Entity’s Representative’s consent. In the event
the Procuring Entity’s Representative determines that such proposed deviations
do not ensure substantially equal or higher quality, the Contractor shall comply
with the standards specified in the documents.
These notes are intended only as information for the PRO Procuring Entity or the
person drafting the Bidding Documents. They should not be included in the final
Bidding Documents.
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PROJECT : CONSTRUCTION OF 2-STOREY
PCSO AKLAN BRANCH OFFICE BUILDING
LOCATION : LOT 8 BLOCK 3, CAPITOL SITE SUBD.

BGY. ESTANCIA, KALIBO, AKLAN
The Terms of Reference and other attached documents are in

compliance with the provisions of Republic No. 9184, and its
Implementing Rules and Regulations and relevant Annexes.
85
TERMS OF REFERENCE
I. INTRODUCTION
The proposed construction of a PCSO Branch Office Building in Kalibo, Aklan is

in line with the mission/ vision of the Philippine Charity Sweepstakes Office
(PCSO) to generate funds to provide timely and responsive health and welfare
assistance in every province. The PCSO Aklan Branch will provide an office that
will mainly cater for clients, agents and patients of the province.
The office building will be constructed on a lot located at Lot 8, Block 3, Capitol
Site Subdivision, Barangay Estancia, Municipality of Kalibo, Province of Aklan.
BASIC INFORMATION OF THE PROJECT
Budget for the project : Php 6,425, 000.00

Floor Area of Structure : 280 sq.m
Site : Lot 8 Block 3, Capitol Site Subd.
Bgy. Estancia, Kalibo, Aklan
Type of Construction : 2-Storey Office Building
Estimated Construction Period : 120 Working Days (6 months)
II. GENERAL NATURE AND SCOPE OF WORKS, REQUIREMENTS AND

SPECIFICATIONS
A. GENERAL INTENTION
1. It is declared and acknowledged intention and meaning to provide and

secure for the Owner (PCSO), a complete and ready for use PCSO Aklan
Branch Office Building herein mentioned, as well as the other concomitant
trades of work necessary for the completion of all works required such as
water, electrical and mechanical systems, etc., ready for occupancy to the
owner.
2. Construction of PCSO Branch Office Building stipulated under this

specifications and related contract documents prepared for this project
shall be in accordance with the following Philippines laws, Codes and
Standards and its most recent Implementing Rules and Regulations (IRR):
a. National Building Code of the Philippines

b. Fire Code of the Philippines
c. Electrical Code of the Philippines
d. National Plumbing Code of the Philippines
e. Existing Local Codes and Ordinances
f. And other Laws that applies to the Project
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B. SCOPE OF WORKS AND TECHNICAL SPECIFICATION
1. Work contemplated under this project shall consist of furnishing all

materials, labor, equipment, tools, utilities, transportation,
superintendence and satisfactory performance of all conditions of the
contract.
2. The Contractor shall follow the agreed timetable for the project; any
delay can incur liquidated damages in the Owners part hence penalty will
be imposed for any delays made by the contractor.
3. Items outlined in this TOR are only basic, all items shall therefore be
referred and checked on the Project’s Scope of Works and Technical
Specification attached as a separate document in this TOR.
C. WORKING DRAWINGS
1. In case of conflict in details of dimensions between the approved plans,

refer to the engineer or his representative for final decision.
2. In case of conflict between the approved plans and the general notes
and specifications, the plan shall govern.
3. The contractor shall prepare detailed shop drawings of the building to be

approved by the owner.
D. EXISTING CONDITIONS AT JOBSITE
1. The contractor shall verify at the jobsite all existing conditions which are
relative to this project to obtain first-hand information of the extent of
work to be done specially the portions that need extra work.
2. The contractor shall be responsible in providing the necessary protection

of areas not part of the construction; wherein any damaged caused by
the contractor, necessary corrective measures shall be done to restore
any damaged parts or areas to its original serviceable form solely to the
contractor’s cost.
E. SECURING OF ALL PERMITS AND LICENSES
All necessary permits and licenses required for the implementation of the
project shall be paid by the Contractor; any expenses incidental to secure all
permits and licenses shall be borne by the Contractor, who shall acquire such
permits and licenses required, and shall surrender the Original Official
Receipt/s and the original permits to the Owner, upon completion of the
construction.
F. TEMPORARY SIGN
The Contractor shall provide suitable sign acceptable to the Owner
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advertising the work and indicating thereon the name of the Project, the
Owner, Contractor, etc. The sign layout and the text and location of such
sign will be approved by the Owner. No other sign or advertising will be
permitted.
G. TEMPORARY STRUCTURES AND SERVICES

All temporary buildings and facilities listed below shall be of a design and
materials acceptable and approved by the Owner.
1. The Contractor shall provide on or near the premises, temporary building

for his own use, equipped among other items with at least one
telephone.
2. The Contractor shall provide temporary office building. The Contractor

shall pay for such temporary facility.
3. The Contractor shall provide suitable toilet facilities at approved location

with proper enclosures for the use of workmen, and shall be maintained
in sanitary operable conditions, all in conformity with the local
regulations.
4. The Contractor shall provide such other temporary building as maybe

required for use of his workmen and safe storage of tools and materials.
Such structures shall be located only where previously approved.
5. The Contractor shall provide temporary electrical connection required for

the construction and pay for such including all wiring, connections and
accessories, and all power consumed.
6. The Contractor shall make all necessary arrangements for and provision
of water including temporary piping and house extensions required for
the construction purposes. He shall obtain and pay for necessary permits
and for all water used.
7. The Contractor shall install and operate an adequate number of

temporary hoists and shall also furnish and maintain temporary scaffolds,
runways, ladders, and the like as required for the proper execution of the
work. As soon as the progress of the work will permit, the Contractor
shall erect the permanent stair platforms, ramps, catwalks, etc.,
safeguard and shall provide these and all other permanent parts from
damage or defacement during the work.
8. All temporary services and facilities installed by the Contractor shall be

removed by the Contractor on completion of this Contract or as directed
by the Owner. The Contractor shall make any repairs or alterations
necessitated by such removal.
H. PROTECTION OF WORK, PROPERTY, AND PERSONS
1. The Contractor shall protect the work of employees, equipment at the
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Owner’s property and adjacent property from damage for any cause
whatsoever, and shall be responsible for any damage or injury (including
death) due to his act or neglect.
2. The Contractor as, part of the contract shall provide watchmen and
erect all planking bridges, bracings, shorings, sheet piling, lights and
warning signs necessary for the public.
Watchmen Service
 The Contractor shall provide reputable watchmen service or in lieu

thereof, any approved protective service to guard the construction
area against vandalism, theft, and mischief. Such service should be in
operation at all hours that the Contractor’s supervisory staff is not in
attendance at the site, 24 hours per day and 7 days per week from
the date of Contractor starts work until the date of final acceptance of
the work under this Contract.
 Watchmen or approved protective service shall continue

uninterrupted during delays in the work such as inclement weather,
delays in delivery, and the like. In the event of any official work
stoppage of the Project, make immediate arrangements with the
Owner regarding watchmen service continuation and cost thereof
during the time the work will be stopped. If such official stoppage is
found to be due to fault, neglect or improper work performance of the
Contractor, or his sub-contractors, the extra cost for watchmen
service shall be borne by the Contractor.
3. The Contractor shall be responsible for any injury loss or damage to any
presently existing improvements on the premises caused by him or his
employees, agents or any subcontractors, and in the event of such
injury, loss or damage shall promptly make such repairs or replacement
as required by the Owner without additional cost to the Owner.
4. During the progress of the work, the Contractor shall protect all finished
work as soon as it is erected and shall maintain such protection until
such time they are no longer required.
I. INSPECTION AND TESTS
1. The Contractor shall permit and facilitate inspection of the work by the
Owner, its representatives, the Owner, or his authorized representative,
and the public authorities having jurisdiction at all times during the
progress of the work.
2. The Contractor will be responsible for all test and engineering services
required by the Specifications. The cost for inspection or tests not
required by the specification but which the Owner requires, will be borne
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by the Owner.
3. All tests shall be performed by the testing agency approved by the

Owner and shall be in accordance with the current standards of the
American Society for Testing and Materials unless otherwise specified
by the Owner. The Contractor shall furnish the Owner with 2 copies of
the test procedures used.
4. Any work not in accordance with the Drawings and Specifications shall
not be deemed acceptable thereof nor be a waiver of the Owner’s right
to a proper execution of the Contract work or any part of it. No partial
payment of entire occupancy of the premises by the Owner shall be
construed to be an acceptance of work or materials which are not
strictly in accordance with the Contract Documents.
J. CONTRACTOR’S ROAD AND TRAFFIC LIMITATIONS
1. Contractor shall make himself fully aware of any restrictive traffic

limitations and/or shall comply with request of local authorities in this
construction plan and equipment, to and from the site, as routes, entry
and exit on site, times of delays, etc.
2. Prior to moving equipment or materials to the site, the Contractor shall

secure the Owner’s approval of the specific roadway route on or
adjacent to the site to be used. He shall thereafter be limited to the use
of said roadways or route unless the Owner first approves the use of
alternate roadway or routes.
K. SECURITY OF EQUIPMENT AND OPERABLE MACHINERY

Site-parked mobile equipment and operable machinery, and hazardous
parts of the new construction subject to mischief shall be kept locked or
otherwise made inoperable whenever left unattended.
L. PEST CONTROL
Contractor shall guard against and if necessary exterminate rodents,
termites, vermin and other pests. All job personnel shall be required to
dispose of garbage in covered containers, which Contractor shall furnish
and empty regularly. Should services of extermination firm be necessary,
the Contractor shall provide such services.
M. AIR POLLUTION
Contractor shall comply with the requirements of “The Clean Air Act of
1999” and of local authorities regarding air pollution control: As a general
rule, shall be no burning of trash at the site.
N. CLEANING
1. The Contractor shall at all times keep the premises from accumulation
of waste materials or rubbish caused by his employees, sub-contractors,
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or the work. At completion of the work he shall remove from the building
and site all rubbish, scaffolding and surplus materials and shall leave
the work broom clean, unless otherwise specified. If the Contractor fails
to keep the premises clean, the Owner may remove the waste materials
and rubbish and charge the expense of such removal to the Contractor.
2. The Contractor shall thoroughly wash and clean all glass, clean
hardware, remove stains, spots, smears, marks and dirt from all
surfaces; clean fixtures, wash tile floors and all exposed concrete so as
to present clean work to the Owner for acceptance.
O. FINAL COMPLETION
The term final completion, means the completion of all work called for
under the Contract to include but not limited to satisfactory operation of all
equipment, by means of acceptance tests, correction of all punch list items
to the satisfaction of the Owner, settlement of all claims, if any payment
and release of all record of all mechanics materials, men and like lines,
delivery of all guarantees, Equipment Operation and Maintenance Manuals;
as built drawings, Building certificates prior to occupancy; Electrical
permits; all other required approvals and acceptance by the
City/Municipality or other authority having jurisdiction and removal of all
rubbish, tolls scaffoldings and surplus materials and equipment from the job
site.
P. PUNCH LIST
All items in the punch list prepared by the Owner of the Contractor’s
uncompleted, defective or uncorrected work shall all be rectified and
satisfactory completed before final turnover of the projects.
Q. AS BUILT DRAWINGS
1. The drawings to be submitted by the Contractor to the Owner,

illustrating how the various elements of the work were actually installed
during the progress of the construction. As built Drawings shall be
approved by the Owner.
2. The Contractor shall keep “as-built” drawings up to date concurrently

as the work progresses and not wait until the end of the job to do so.
R. SAFETY AND ACCIDENT REPORTS

The Contractor shall take necessary precautions for the safety of all
personnel. The Contractor shall comply with all instructions and
Government Safety laws and Building Codes to prevent accident or injury to
persons on about or adjacent to the premises as well as for the protection of
adjacent property where work is performed.
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S. SECURING OF ALL PERMITS AND LICENSES
Official receipts of all permits and licenses shall be paid by the Contractor.
Any expenses incidental to the securing of all permits and licenses shall be
borne by the Contractor, who shall secure such permits and licenses required,
and shall surrender the Original Official Receipt/s and the original permits to
the Owner, upon completion of the construction.
III. SITE WORKS
The Works contemplated under this shall consist of Site Preparation, Soil
Poisoning, Excavation and Backfill, which includes furnishing of all materials,
labor, equipment, tools, utilities, transportation, and superintendence in the
satisfactory performance of all all mentioned works.
Refer to Sections II – V of the Project’s Scope of Works and Technical

Specifications for the technical details and requirements for such works.
IV. ARCHITECTURAL & CIVIL WORKS
The Works contemplated under this shall consist of all Concrete Works,
Masonry Works, Roofing and Tinsmithing Works, Waterproofing, Decorative
Veneers, Doors and Windows, Paint Works, Ceiling Works, Cabinetry,
Ceramic Tile Works, and Railings which includes furnishing of all materials,
labor, equipment, tools, utilities, transportation, and superintendence in the
satisfactory performance of all mentioned works.
Refer to Sections VI – XXV of the Project’s Scope of Works and Technical

A. CONCRETE MATERIALS
1. Portland Cement shall be type I and shall conform to ASTM C-150

(Standard Specifications for Portland Cement).
2. Concrete aggregates shall be well graded, clean, hard particles of gravel of

crushed rock conforming to the requirements of ASTM C-33 (Standard
Specifications for Concrete Aggregates).
3. All reinforcement steel bars shall be conform and shall be new and free
from rust, oil, defects, grease or kinks. They shall conform to the
requirements of ASTM A615 Standard Specifications for Deformed Bars.
4. All concrete mix for columns, footings, beams and members which are
subjected to bending stress shall be Class A mixture. For slab on fill shall
be Class B mixture.
B. TESTING OF MATERIALS
The Owner or its Representatives shall have the right to order the test of any
materials supplied by the Contractor entering into concrete and reinforced
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concrete whenever there is reasonable doubt as to its suitability for the
purpose. For concrete test such test shall conform to the requirements of
ASTM C39 Standard Method of Test for Compressive Strength of Molded
Concrete Cylinders. For steel such test shall conform to the requirements of
ASTM A370 Standard Methods and Definitions for Mechanical Testing of
Steel Products. All samples shall be prepared, delivered and fetched by the
contractor and all cost of test shall be at the expense of the contractor. Copies
of test results shall be furnished to the Owner’s Representative promptly by
the contractor.
C. REPAIR OF CONCRETE
All materials, procedures, and operations used in the repair of concrete shall
be directed by the Owners Representative.
D. WOOD
1. The work under this section shall consist of furnishing all required
materials, fabricated woodwork, tools, equipment and labor. Performs all
operations necessary for the satisfactory completion of all carpentry and
joinery works in strict compliance.
2. Lumber shall be of respective kinds required for the various parts of the
work, well-seasoned, free from large loose or unsound knots, saps, cracks,
shakes or other imperfections imparting the strength, durability and/ or
appearance. Some structural and framing lumber maybe rough dimension
such shown on the drawing. All exposed woodworks however, shall be
smoothly planned, and if necessary sand papered well. Narra and/or
Tanguile shall be used for door jambs. All lumber in contact with concrete
or masonry shall be creosoted. All carpentry works shall be at first class
workmanship.
E. IRON WORKS
The work under this section consists of furnishing of all materials, labor, tools,
equipment and performance of all operations relative to the fabrication,
delivery to site, erection of structural steel trusses, purlins, and construction of
elevated water supply as shown on the plans. All structural steel shapes and
plates shall conform to ASTM A-36. (Standard Specification for Structural
Steel)
Welding works shall be done only by certified and experienced welder.
V. PLUMBING WORKS
The work covered under this section shall consist of furnishing all labor,
materials, tools, equipment, and fixtures required as shown on the plans
necessary for the satisfactory and complete installation, testing and operation
of a plumbing system consisting of, but not necessarily limited to the following:
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• Water distribution and supply pipes to equipment and plumbing
fixtures.
• Storm drainage system which include gutter drains, roof downspouts,

junction boxes and connection to storm drain or to open channel or to
on the low ground.
• Waste and vent pipes system and connection to septic tank and
connection of outlet waste line to nearest existing storm drain.
• Install plumbing fixtures, fittings, trims and accessories for the toilets.
Leakage tests of water supplies, sanitary and storm drainage system.
Pressure test of newly installed water system satisfactory performance
of the entire plumbing system including installation in accordance with
the latest edition of the National Plumbing Code and Specifications.
Refer to Section XXVI of the Project’s Scope of Works and Technical

A. WATER SUPPLY SYSTEM:
The design, construction, and operation of deep wells for the abstraction of
groundwater shall be subject to the provision of Water Code of the Philippines (PD
1067).
B. WASTEWATER DISPOSAL SYSTEM:
Septic tank shall not be constructed under the building and it shall within twenty-
five (25) meters from any source of water supply and shall conform to the
Sanitation Code of the Philippines (PD 856).
VI. ELECTRICAL WORKS AND WIRELESS LOCAL AREA NETWORK

PROVISION
The work covered under this section shall consist of furnishing all labor, materials,
tools, equipment, and fixtures required as shown on the plans necessary for the
satisfactory and complete installation, testing and operation of an electrical system
consisting of, but not necessarily limited to the following:
• Electrical Power System complete with wiring system, conduits,

devices, equipment and electrical fixtures.
• Electrical Lighting System complete with wiring system, conduits,
devices, equipment and light fixtures.
• Provision for a Standard Network Cabinet with nearby power outlet.

PVC Pipe Conduits of 32mm dia with GI wires inserts shall be provided
for Wireless LAN cabling provision
Refer to Section XXVII of the Project’s Scope of Works and Technical

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VII. MECHANICAL WORKS
The work covered under this section shall consist of furnishing all labor,
materials, tools, equipment, and fixtures required as shown on the plans
necessary for the satisfactory and complete installation, testing and operation
of an Air Conditioning System.
Refer to Section XXVIII of the Project’s Scope of Works and Technical

VIII. OTHER PROVISIONS
The Contractor Shall:
1. Prepare and submit Monthly Progress Report and Evaluation of the

Project done by the Contractor’s Project Engineer.
2. Make recommendations to the PCSO on all claims of the Contractor

relating to the execution and progress payments, variation orders, and
contract time extensions.
3. Inspect and examine the actual construction of the project with such
frequency and duration as may be necessary, to see to it that the work is
done, in every particular, strictly in accordance with the plans and
specifications.
4. Certify the completion of the project according to approved Plans,

Specifications and Scope of Work and recommends acceptance to the
PCSO.
IX. WORK DURATION AND WORK DELAYS
The required construction period is estimated to be completed within One

Hundred Twenty (120) working days or six (6) months.
Note that force majeure applies only when delays are clearly beyond the
control of or could not have been anticipated by the Contractor. To wit, the
Owner will grant an extension in time equivalent to the exact number of
working days that were caused by the force majeure incident(s), but the
Owner will not grant any monetary relief unless costs for mobilizing and
demobilizing were detailed in the bid, which shall be subject to negotiation.
When delays are within the control of or could have been anticipated by
Contractor, payment of liquidated damages will be assessed for the exact
number of working days that work was delayed.
X. TERMS OF PAYMENT
The payment scheme below shall be observed in the processing of payment
and in favor of the construction firm. Each payment shall be subject to ten
percent (10%) retention. The PCSO shall release the total retention money to
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the construction firm upon final acceptance of the work and upon clearance of
all liabilities relative to the project.
1. Fifteen percent (15%) of the fee shall be payable upon completion of

fifteen percent (15%) of the Project as approved by PCSO authorized
representative.
2. Thirty-five percent (35%) of the fee shall be payable upon completion of

fifty percent (50%) as approved by PCSO authorized representative.
3. Thirty-five percent (35%) of the fee shall be payable upon completion of

eighty-five percent (85%) as approved by PCSO authorized
representative.
4. Fifteen percent (15%) of the fee shall be payable upon completion of the
construction as approved by PCSO authorized representative.
After the contract has been awarded to the winning bidder, advance payment
for mobilization may be allowed by the PCSO in accordance with Annex “F” of
IRR-A of RA 9184.
XI. GUARANTEE-WARANTY
The contractor shall hereby WARRANT AND GUARANTEE that all work
executed under this project will be free from defects of materials and
workmanship. The Contractor shall at his own expense repair and replace all
such defective work and all other work damaged thereby, which becomes
defective during the terms of the ONE YEAR GUARANTEE-WARANTY after
the completion and acceptance of the completed project
96
Section VII. Drawings
97
98
99
100
101
102
103
104
105
106
107
108
Section VIII. Bill of Quantities
Notes on the Bill of Quantities
Objectives
The objectives of the Bill of Quantities are:

(a) to provide sufficient information on the quantities of Works to be performed
to enable Bids to be prepared efficiently and accurately; and
(b) when a Contract has been entered into, to provide a priced Bill of Quantities
for use in the periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of
Quantities in sufficient detail to distinguish between the different classes of Works,
or between Works of the same nature carried out in different locations or in other
circumstances which may give rise to different considerations of cost. Consistent
with these requirements, the layout and content of the Bill of Quantities should be
as simple and brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work,

outside the items included in the Bill of Quantities, is high. To facilitate checking
by the Entity of the realism of rates quoted by the Bidders, the Daywork Schedule
should normally comprise the following:
(a) A list of the various classes of labor, materials, and Constructional Plant for
which basic daywork rates or prices are to be inserted by the Bidder,
together with a statement of the conditions under which the Contractor will
be paid for work executed on a daywork basis.
(b) Nominal quantities for each item of Daywork, to be priced by each Bidder at
Daywork rates as Bid. The rate to be entered by the Bidder against each
basic Daywork item should include the Contractor’s profit, overheads,
supervision, and other charges.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by

including a provisional sum in the Summary Bill of Quantities. Similarly, a
contingency allowance for possible price increases should be provided as a
provisional sum in the Summary Bill of Quantities. The inclusion of such
provisional sums often facilitates budgetary approval by avoiding the need to
request periodic supplementary approvals as the future need arises. Where such
provisional sums or contingency allowances are used, the SCC should state the
manner in which they will be used, and under whose authority (usually the
Procuring Entity’s Representative’s).
109
The estimated cost of specialized work to be carried out, or of special goods to be
supplied, by other contractors (refer to GCC Clause 8) should be indicated in the
relevant part of the Bill of Quantities as a particular provisional sum with an
appropriate brief description. A separate procurement procedure is normally
carried out by the Procuring Entity to select such specialized contractors. To
provide an element of competition among the Bidders in respect of any facilities,
amenities, attendance, etc., to be provided by the successful Bidder as prime
Contractor for the use and convenience of the specialist contractors, each related
provisional sum should be followed by an item in the Bill of Quantities inviting the
Bidder to quote a sum for such amenities, facilities, attendance, etc.
Signature Box
A signature box shall be added at the bottom of each page of the Bill of Quantities
where the authorized representative of the Bidder shall affix his signature. Failure
of the authorized representative to sign each and every page of the Bill of
Quantities shall be a cause for rejection of his bid.
These Notes for Preparing a Bill of Quantities are intended only as information for
the Procuring Entity or the person drafting the Bidding Documents. They should
not be included in the final documents.
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111
112
113
114
115
116
117
118
119
Section IX. Bidding Forms
TABLE OF CONTENTS
Bid Form .............................................................................................. 121
Form of Contract Agreement ............................................................ 123
Omnibus Sworn Statement ............................................................... 125
List of Ongoing Government and Private Contracts ...................... 128
SLCC Form .......................................................................................... 129
NFCC Form.......................................................................................... 130
Bid Securing Declaration………………………………………..………132
120
Bid Form
Date: ____________________
PCSO Contract No. 02-2017 (INFRA)
Re: Construction of Aklan Branch Office
To: The Philippine Charity Sweepstake Office

Sun Plaza Shaw Building Shaw Boulevard
Corner Princeton St., Mandaluyong City
Attn: SPECIAL BIDS AND AWARDS COMMITTEE II

We, the undersigned, declare that:
(a) We have examined and have no reservation to the Bidding Documents, including
Addenda, for the Contract [insert name of contract];
(b) We offer to execute the Works for this Contract in accordance with the Bid and
Bid Data Sheet, General and Special Conditions of Contract accompanying this
Bid;
The total price of our Bid, excluding any discounts offered below is: [insert
information];
The discounts offered and the methodology for their application are: [insert
information];
(c) Our Bid shall be valid for a period of [insert number] days from the date fixed for
the Bid submission deadline in accordance with the Bidding Documents, and it
shall remain binding upon us and may be accepted at any time before the
expiration of that period;
(d) If our Bid is accepted, we commit to obtain a Performance Security in the amount
of [insert percentage amount] percent of the Contract Price for the due
performance of the Contract;
(e) Our firm, including any subcontractors or suppliers for any part of the Contract,
have nationalities from the following eligible countries: [insert information];
(f) We are not participating, as Bidders, in more than one Bid in this bidding
process, other than alternative offers in accordance with the Bidding Documents;
(g) Our firm, its affiliates or subsidiaries, including any subcontractors or suppliers
for any part of the Contract, has not been declared ineligible by the Funding
Source;
121
(h) We understand that this Bid, together with your written acceptance thereof
included in your notification of award, shall constitute a binding contract between
us, until a formal Contract is prepared and executed; and
(i) We understand that you are not bound to accept the Lowest Calculated Bid or
any other Bid that you may receive.
(j) We likewise certify/confirm that the undersigned, is the duly authorized

representative of the bidder, and granted full power and authority to do,
execute and perform any and all acts necessary to participate, submit the
bid, and to sign and execute the ensuing contract for the [Name of Project]
of the [Name of the Procuring Entity].
(k) We acknowledge that failure to sign each and every page of this Bid Form,
including the Bill of Quantities, shall be a ground for the rejection of our
bid.
Name:
In the capacity of:
Signed:
Duly authorized to sign the Bid for and on behalf of:
Date: ___________
122
Form of Contract Agreement
THIS AGREEMENT, made this [insert date] day of [insert month], [insert year]
between [name and address of PROCURING ENTITY] (hereinafter called
the“Entity”) and [name and address of Contractor] (hereinafter called the
“Contractor”).
WHEREAS, the Entity is desirous that the Contractor execute [name and
identification number of contract] (hereinafter called “the Works”) and the Entity has
accepted the Bid for [insert the amount in specified currency in numbers and words]
by the Contractor for the execution and completion of such Works and the remedying
of any defects therein.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. In this Agreement, words and expressions shall have the same

meanings as are respectively assigned to them in the Conditions of
Contract hereinafter referred to.
2. The following documents shall be attached, deemed to form, and be

read and construed as integral part of this Agreement, to wit:
(a) General and Special Conditions of Contract;

(b) Drawings/Plans;
(c) Specifications;
(d) Invitation to Bid;
(e) Instructions to Bidders;
(f) Bid Data Sheet;
(g) Addenda and/or Supplemental/Bid Bulletins, if any;
(h) Bid form, including all the documents/statements contained in
the Bidder’s bidding envelopes, as annexes, and all other
documents submitted (e.g., Bidder’s response to request for
clarifications on the bid), including corrections to the bid, if any,
resulting from the Procuring Entity’s bid evaluation;
(i) Eligibility requirements, documents and/or statements;
(j) Performance Security;
(k) Notice of Award of Contract and the Bidder’s conforme thereto;
(l) Other contract documents that may be required by existing laws
and/or the Entity.
3. In consideration of the payments to be made by the Entity to the

Contractor as hereinafter mentioned, the Contractor hereby covenants
with the Entity to execute and complete the Works and remedy any
123
defects therein in conformity with the provisions of this Contract in all
respects.
4. The Entity hereby covenants to pay the Contractor in consideration of

the execution and completion of the Works and the remedying of
defects wherein, the Contract Price or such other sum as may become
payable under the provisions of this Contract at the times and in the
manner prescribed by this Contract.
IN WITNESS whereof the parties thereto have caused this Agreement to be

executed the day and year first before written.
Signed, sealed, delivered by the (for the Entity)
Signed, sealed, delivered by the (for the

Contractor).
Binding Signature of Procuring Entity
________________________________________________
Binding Signature of Contractor
_____________________________________________
[Addendum showing the corrections, if any, made during the Bid evaluation should
be attached with this agreement]
124
Omnibus Sworn Statement
REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.
AFF IDAVIT
I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at

[Address of Affiant], after having been duly sworn in accordance with law, do hereby
depose and state that:
1. Select one, delete the other:
If a sole proprietorship: I am the sole proprietor or authorized representative 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 or authorized

representative of [Name of Bidder], I have full power and authority to do,
execute and perform any and all acts necessary to participate, submit the bid,
and to sign and execute the ensuing contract for [Name of the Project] of the
[Name of the Procuring Entity] [insert “as shown in the attached duly notarized
Special Power of Attorney” for the authorized representative];
If a partnership, corporation, cooperative, or joint venture: I am granted full

power and authority to do, execute and perform any and all acts necessary to
participate, submit the bid, and to sign and execute the ensuing contract for
[Name of the Project] of the [Name of the Procuring Entity], accompanied by
the duly notarized Special Power of Attorney, Board/Partnership Resolution,
or Secretary’s Certificate, whichever is applicable;
3. [Name of Bidder] is not “blacklisted” or barred from bidding by the

Government of the Philippines or any of its agencies, offices, corporations, or
Local Government Units, foreign government/foreign or international financing
institution whose blacklisting rules have been recognized by the Government
Procurement Policy Board;
4. 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;
125
5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;
6. Select one, delete the rest:
If a sole proprietorship: The owner or sole proprietor is not related to the Head
of the Procuring Entity, members of the Bids and Awards Committee (BAC),
the Technical Working Group, and the BAC Secretariat, the head of the
Project Management Office or the end-user unit, and the project consultants
by consanguinity or affinity up to the third civil degree;
If a partnership or cooperative: None of the officers and members of [Name of
Bidder] is related to the Head of the Procuring Entity, members of the Bids
and Awards Committee (BAC), the Technical Working Group, and the BAC
Secretariat, the head of the Project Management Office or the end-user unit,
and the project consultants by consanguinity or affinity up to the third civil
degree;
If a corporation or joint venture: None of the officers, directors, and controlling
stockholders of [Name of Bidder] is related to the Head of the Procuring
Entity, members of the Bids and Awards Committee (BAC), the Technical
Working Group, and the BAC Secretariat, the head of the Project
Management Office or the end-user unit, and the project consultants by
consanguinity or affinity up to the third civil degree;
7. [Name of Bidder] complies with existing labor laws and standards; and
8. [Name of Bidder] is aware of and has undertaken the following responsibilities

as a Bidder:
a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the
implementation of the Contract;
c) Made an estimate of the facilities available and needed for the contract to
be bid, if any; and
d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the
Project].
9. [Name of Bidder] 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.
IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__
at ____________, Philippines.
_____________________________________
Bidder’s Representative/Authorized Signatory
126
SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at
[place of execution], Philippines. Affiant/s is/are personally known to me and
was/were identified by me through competent evidence of identity as defined in the
2004 Rules on Notarial Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me
his/her [insert type of government identification card used], with his/her photograph
and signature appearing thereon, with no. ________ and his/her Community Tax
Certificate No. _______ issued on ____ at ______.
Witness my hand and seal this ___ day of [month] [year].
NAME OF NOTARY PUBLIC

Serial No. of Commission ______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. _____ [date issued], [place issued]
IBP No. _____ [date issued], [place issued]
Doc. No. _____

Page No. _____
Book No. _____
Series of _____
* This form will not apply for WB funded projects.
127
List of all Ongoing Government and Private Contracts including those awarded but not
yet started, similar or not similar to the Contract to be bid within the last ten (10) years
Business Name: ____________________________________
Business Address: __________________________________

Name of a. Owner’s Bidder’s Role a. Date % of Accomplishment Value of
Contract/ Name Awarded Outstanding
Project Cost b. Address Nature of Description % b. Date Started Planned Actual Works/
Work Undelivered
c. Telephone c. Date of Portion
Nos. Completion
Government
Private
Total Cost
Note:
This statement should be supported with any or all of the following: (a) Notice of Award; (b)
Purchase Order/Contract; (c) Notice to Proceed. Failure to attach here the required
document/s shall automatically disqualify the participating Bidder.
Submitted by : ________________________________________________________
(Printed Name & Signature)
Designation : __________________________________________________
Date : _____________________
128
Statement Identifying the Single Largest Completed Contract Similar to
the contract to be bid within the last ten (10) years
To the Special Bids and Awards Committee II:
__________________________’s (Company Name) Single Largest

Completed Contract similar to the contract to be bid is the contract / project
with ___________________________________________ with the following
details:
Name of the Contract : _____________________________
Date of the Contract : ______________________________
Contract Duration : ________________________________
Owner’s Name and Address : ______________________________________
The Contract Price is P___________________________, which value is

equivalent to or more than fifty percent (50%) of the Approved Budget for the
Contract (ABC) of PhP6,425,000.00. The Supply and Delivery of
____________________________________________________________ were
delivered and completed on _______________________.
Note:
 This statement should be supported with:

(1) a photocopy of end-user’s acceptance or Official Receipt(s) or sales
invoice issued for the contract, if completed; and
(2) any or all of the following: (a) Notice of Award; (b) Purchase
Order/Contract; (c) Notice to Proceed.
Failure to attach to this form the required document/s shall automatically

disqualify the participating Bidder.
129
NFCC FORM
A. Summary of the Applicant Supplier’s/Distributor’s/Manufacturer’s assets and

liabilities on the basis of the attached Audited Financial Statements, submitted
to the Bureau of Internal Revenue (BIR).
Year 2016
1. Total Assets
2. Current Assets
3. Total Liabilities
4. Current Liabilities
5. Net Worth (1-3)
6. Net Working Capital (2-4)
B. The Net Financial Contracting Capacity (NFCC) using the following formula,
must be equal to the ABC to be bid:
NFCC = [(current assets – current liabilities) (15)] minus value of all outstanding
or uncompleted portions of the projects under ongoing contracts, including
awarded contracts yet to be started coinciding with the contract to be bid.
NFCC = P_____________________________________________________
C. Please reflect your NFCC Computation here:
130
Submitted by:
____________________________________
Name of Company
____________________________________
Signature of Authorized Representative

Date: ____________________
NOTE: Failure to attach here the required document/s (i.e., latest AFS submitted to the BIR) (refer
to number 3- Checklist of Eligibility Documents) shall automatically disqualify the participating
Bidder.
131
Bid-Securing Declaration
(REPUBLIC OF THE PHILIPPINES)

CITY OF _______________________ ) S.S.
x-------------------------------------------------------x
Invitation to Bid
Ref: Contract No. 2017-02 INFRA
Project Name: Construction of Aklan Branch Office
To: Philippine Charity Sweepstakes Office

Sun Plaza Building Shaw Boulevard Cor. Princeton St., Mandaluyong City
Attention : Special Bids and Awards Committee II
I/We, the undersigned, declare that:
1. I/We understand that, according to your conditions, bids must be supported by a

Bid Security, which may be in the form of a Bid-Securing Declaration.
2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any
contract with any procuring entity for a period of two (2) years upon receipt of
your Blacklisting Order; and, (b) I/we will pay the applicable fine provided under
Section 6 of the Guidelines on the Use of Bid Securing Declaration, within fifteen
(15) days from receipt of written demand by the procuring entity for the
commission of acts resulting to the enforcement of the bid securing declaration
under Sections 23.1(b), 34.2, 40.1 and 69.1, except 69.1 (f), of the IRR of RA
9184; without prejudice to other legal action the government may undertake.
3. I/We understand that this Bid-Securing Declaration shall cease to be valid on the
following circumstances:
a. Upon expiration of the bid validity period, or any extension thereof pursuant to
your request;
b. I am/we are declared ineligible or post-disqualified upon receipt of your notice
to such effect, and (i) I/we failed to timely file a request for reconsideration or
(ii) I/we filed a waiver to avail of said right;
132
c. I am/we are declared as the bidder with the Lowest Calculated Responsive Bid, and
I/we have furnished the performance security and signed the Contract.
IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of
[month] [year] at [place of execution].
[Insert NAME OF BIDDER’S AUTHORIZED REPRESENTATIVE]
[Insert signatory’s legal capacity]
Affiant
SUBSCRIBED AND SWORN to before me this __ day of [month] [year] at [place of

execution], Philippines. Affiant/s is/are personally known to me and was/were
identified by me through competent evidence of identity as defined in the 2004 Rules
on Notarial Practice (A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert
type of government identification card used], with his/her photograph and signature
appearing thereon, with no. ______.
Witness my hand and seal this ___ day of [month] [year].
NAME OF NOTARY PUBLIC
Serial No. of Commission ___________

Notary Public for ______ until _______
Roll of Attorneys No. _____
PTR No. __, [date issued], [place issued]
IBP No. __, [date issued], [place issued]
Doc. No. ___
Page No. ___
Book No. ___
Series of ____.
133
Section X. Appendices
TABLE OF CONTENTS
Checklist of Eligibility and Technical Requirements ..................... 135
Financial Proposal ............................................................................. 137
Post Qualification Document ............................................................ 138
Illustration: Format and Marking of Bid Envelopes ....................... 139
134
Checklist of the Eligibility and Technical Requirements
(ENVELOPE 1)
A. Eligibility Documents:
CLASS “A” DOCUMENTS
1. PhilGEPS Certificate of Registration of Membership under Platinum Category

in accordance with GPPB Circular 03-2016, except for foreign bidders
participating in the procurement by a Philippine Foreign Service Office or
Post, which shall submit their eligibility documents under Section 23.1 of the
IRR, provided, that the winning bidder shall register with the PhilGEPS in
accordance with Section 37.1.4 of the IRR.
2. (a) Statement of all its on-going government and private contracts, including
contracts awarded but not yet started, if any, whether similar or not similar in
nature and complexity to the contract to be bid Failure to attach here the
required document/s shall automatically disqualify the participating
Bidder;
(b) Statement of the Bidder’s SLCC similar to the contract to be bid, in

accordance with ITB Clause 5.4, within the last ten (10) years (form
supplied). (The single largest contract should have a value of at least 50% of
the ABC of the project to be bid). This statement should be supported with
the following:
1. A photocopy of end-user’s final acceptance or Official receipt (O.R.) issued

for the contract; and
2. Any or all of the following: (a) Notice of Award; (b) Purchase

Order/Contract; (c) Notice to Proceed). Failure to attach here the required
document/s shall automatically disqualify the participating Bidder.
3. PCAB License and Registration;
4. A valid special PCAB License in case of joint ventures, and registration for the
type and cost of the contract for the Project
5. NFCC computation in accordance with ITB Clause 5.5 or a committed Line of

Credit from a universal or commercial bank (form supplied). (This statement
should be supported with the ITR and Audited Financial Statements for
2015 filed thru the eFPS).
135
CLASS “B” DOCUMENT
1. If applicable, the JOINT VENTURE AGREEMENT (JVA) in case the joint

venture is already in existence, or duly notarized statements from all the
potential joint venture partners in accordance with Section 23.1(b) of the IRR.
B. Technical Documents:
1. Bid security in accordance with ITB Clause 18. If the Bidder opts to
submit the bid security in the form of:
(1.1) a bank draft/guarantee or an irrevocable letter of credit issued by

a foreign bank, it shall be accompanied by a confirmation from a
Universal or Commercial Bank; or
(1.2) a surety bond, it shall be accompanied by a certification by the

Insurance Commission that the surety or insurance company is
authorized to issue such instruments.
2. Project Requirements, which shall include the following:
(2.1) Organizational chart for the contract to be bid;
(2.2) 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. These personnel must meet the required
minimum years of experience set in the BDS; and
(2.3) List of contractor’s major equipment units, which are owned,

leased, and/or under purchase agreements, supported by proof of
ownership, certification of availability of equipment from the
equipment lessor/vendor for the duration of the project, as the
case may be, which must meet the minimum requirements for the
contract set in the BDS.
3. Sworn statement in accordance with Section 25.3 of the IRR of RA 9184 and
using the form prescribed in Section VIII. Bidding Forms.
NOTE : SUBMIT ONE (1) ORIGINAL AND SIX (6) PHOTOCOPIES OF ALL THE
REQUIREMENTS STATED ABOVE. PLEASE PUT A LABEL
(TABBINGS) FOR EACH DOCUMENT FOR EASY BROWSING.
136
The Financial Proposal shall contain the:
(ENVELOPE 2)
1. Financial Bid Form, which includes bid prices and the bill of quantities,
in accordance with ITB Clauses 15.1 and 15.3; and
2. Any other document related to the financial component of the bid as

stated in the BDS such as:
a. Bid prices in the Bill of Quantities;
b. 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; and
c. Cash flow by quarter or payment schedule
NOTE : SUBMIT ONE (1) ORIGINAL AND SIX (6) PHOTOCOPIES OF ALL THE
REQUIREMENTS STATED ABOVE. PLEASE PUT A LABEL
(TABBINGS) FOR EACH DOCUMENT FOR EASY BROWSING.
137
POST-QUALIFICATION DOCUMENTS
After the Bid Opening, the SBAC II shall conduct a detailed evaluation of the
financial component of the eligible bid/s to determine the Lowest Calculated
(LCB)/Single Calculated Bid (SCB). Only the LCB/SCB shall be notified to submit the
following post-qualification documents (3 copies each) within five (5) calendar days
from receipt of the Notice from the SBAC II
1. Latest Income Tax Return within the last six or Annual Income Tax for
CY 2016. (Only tax returns filed and taxes paid through the BIR EFPS
shall be accepted)
2. Business tax (Percentage tax or VAT) returns within the last six months.
(Only tax returns filed and taxes paid through the BIR EFPS shall be
accepted)
3. For those who submitted a Notarized Statement to form a Joint Venture

during the Opening of Bids, the Joint Venture Agreement will be
submitted with a disclosure of the percentage of ownership of both
parties.
4. All parties to the Joint Venture shall submit the following: 
a. Latest Income Tax Return within the last six months (for monthly
or quarterly tax remittance) or Annual Income Tax for CY 2016.
(Only tax returns filed and taxes paid through the BIR EFPS
shall be accepted)
b. Business tax (Percentage tax or VAT) returns within the last six
months. (Only tax returns filed and taxes paid through the BIR
EFPS shall be accepted)
5. Certificate of Good Standing, Completion, and Acceptance from PCSO

with respect to the latest completed project. (This is applicable only to
prospective bidders with previous contracts and completed projects with
the PCSO which were entered into within the past ten (10) years from
the submission and receipt of bids)
*NOTE: TO BE SUBMITTED WITHIN THREE (3) CALENDAR DAYS FROM

RECEIPT OF THE NOTICE FROM THE SBAC II DECLARING YOUR BID
AS THE LOWEST/SINGLE CALCULATED BID (LCB/SCB). FAILURE TO
SUBMIT THE ABOVE REQUIREMENTS ON TIME OR A FINDING
AGAINST THE VERACITY OF SUCH SHALL BE GROUND FOR THE
FORFEITURE OF THE BID SECURITY AND DISQUALIFY THE BIDDER
FOR AWARD.
138
ILLUSTRATION: Format and Marking of Bid Envelopes
A. The Mother Envelope
Front View (Mother Envelope)
Mother envelope to contain sealed &

duly signed original, copy 1-6
envelopes (no preferred color, shaded
box for emphasis only)
B. Original Envelope and its content
Front View (Original Envelopes)

MAIN ENVELOPE TO CONTAIN
2. ENVELOPE 1 TO CONTAIN THE “ORIGINAL” ELIGIBILITY
AND TECHNICAL DOCUMENTS ENVELOPES 1 AND 2
1
1. ENVELOPE 1 TO CONTAIN THE “ORIGINAL” ELIGIBILITY
AND TECHNICAL DOCUMENTS
THE CORRECT FORMAT AND

PROPER WAY TO SEAL AND
MARK YOUR BID ENVELOPES
Back View (All Envelopes)
139
C. Six (6) envelopes (copies 1 - 6) and its contents
Front View (Copies 1 - 6 Envelopes)

2. ENVELOPE 2 TO CONTAIN THE “COPY (NUMBER)”
MAIN ENVELOPES TO
FINANCIAL DOCUMENTS CONTAIN ENVELOPES 1 AND 2
(COPIES 1 – 6)
2
1
1. ENVELOPE 1 TO CONTAIN THE “COPY (NUMBER)”
ELIGIBILITY AND TECHNICAL DOCUMENTS
THE CORRECT FORMAT AND

PROPER WAY TO SEAL AND
MARK YOUR BID ENVELOPES
Back View (All Envelopes)
ALL envelopes must be properly sealed and marked/labeled. The marking/label shall
contain the following details:
 Name of the contract to be bid;

 Name and address of the prospective bidder;
 Be addressed to the following:
PHILIPPINE CHARITY SWEEPSTAKES OFFICE (PCSO)

c/o SPECIAL BIDS AND AWARDS COMMITTEE II
3/F CONSERVATORY BLDG., SHAW BLVD.
MANDALUYONG CITY
 Bear a warning “DO NOT OPEN BEFORE…” the date and time for the
opening of bids.
140
141

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PHILIPPINE BIDDING DOCUMENTS

(As Harmonized with Development Partners)

PHILIPPINE CHARITY SWEEPSTAKES OFFICE

SECTION I. INVITATION TO BID …………………………………..................………...3

PHILIPPINE CHARITY SWEEPSTAKES OFFICE

SPECIAL BIDS and AWARDS COMMITTEE II

Construction of 2-Storey PCSO Aklan 6,425,000.00

1. The Philippine Charity Sweepstakes Office (PCSO), through its Corporate

3. Bidding will be conducted through open competitive bidding procedures using

Bidding is restricted to Filipino citizens/sole proprietorships, cooperatives, and

5. A complete set of Bidding Documents may be acquired by interested bidders

9. For further information, please refer to:

The SBAC II Chairman

Matters governing the performance of the Contractor, payments under the

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

(i) "corrupt practice" means behavior on the part of officials

(ii) "fraudulent practice" means a misrepresentation of facts

(iii) “collusive practices” means a scheme or arrangement

(iv) “coercive practices” means harming or threatening to

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

(bb) acts intended to materially impede the exercise of

(c) will declare a firm ineligible, either indefinitely or for a stated

(a) A Bidder has controlling shareholders in common with another

(b) A Bidder receives or has received any direct or indirect subsidy

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

(d) A Bidder has a relationship, directly or through third parties, that

(f) A Bidder who participated as a consultant in the preparation of

(g) A Bidder who lends, or temporarily seconds, its personnel to

4.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding

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

(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

(d) If the Bidder is a cooperative, to all its officers, directors, and

Relationship of the nature described above or failure to comply with

(a) Duly licensed Filipino citizens/sole proprietorships;

(b) Partnerships duly organized under the laws of the Philippines

(c) Corporations duly organized under the laws of the Philippines,

(d) Cooperatives duly organized under the laws of the Philippines.

(e) Persons/entities forming themselves into a JV, i.e., a group of

5.3. Government Owned or Controlled Corporations (GOCCs) may be

(b) For Foreign-funded Procurement, the Procuring Entity and the

For this purpose, contracts similar to the Project shall be those

NFCC = [(Current assets minus current liabilities) (15)] minus the

The values of the domestic bidder’s current assets and current

6.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding

(b) Having acknowledged all conditions, local or otherwise, affecting

(c) Having made an estimate of the facilities available and needed

(d) Having complied with its responsibility to inquire or secure

(e) Ensuring that it is not “blacklisted” or barred from bidding by the

(f) Ensuring that each of the documents submitted in satisfaction of

(g) Authorizing the HoPE or its duly authorized representative/s to

(h) Ensuring that the signatory is the duly authorized representative

(i) Complying with the disclosure provision under Section 47 of RA

(i) Ensure the entitlement of workers to wages, hours of

In case there is a finding by the Procuring Entity or the

(ii) Comply with occupational safety and health standards

In case of imminent danger, injury or death of the worker,

(iii) Inform the workers of their conditions of work, labor