CASE STUDY: ARBITRATION

ENGINEERING
Conflict of the Project-in-Charge and
the Contractor of JTMOland Realty
Corp. in
Montecarlo Subdvision

Presented by:
Barot, Mark Anthony R.
Sanvictores, Alvin C.
Tabura, Jonel C.

Overview:
Founded in 2006 by :
Ethelualdo Q. Olave-President
Joselito E. Tapay-VP for Sales &
Admin
Raul A. Montealto-VP for
Construction

Montecarlo Subdivision Project

Started: July 2010
Project-in-Charge: Engr. Roberto
Magno

SITUATION

CREDITOR
(Obligee)

DEBTOR
(Obligor)

CASE 1

Company Owner

Project-In-Charge

CASE 2

Project-in-Charge

Contractor

CASE 3

Owner (housing
unit)

Contractor

Problems:
No surety bond causing the contractors to
back out easily of the project.
No bidding process occurred.
Attitudes of the contractor towards the
Project-in-Charge.
Incapability on the part of the contractor
to handle other areas of specializations.

No surety bond causing the contractors

to back out easily of the project.
Under Article XIX Sec. 62-b
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 and shall be
required to put up a warranty security in the
form of cash, bank guarantee, letter of credit,
Government Service Insurance System bond,
or callable surety bond.

No bidding process occurred.

Based on the interview the Company uses Direct Contracting as their
way of dealing with their contractors.
But, there are exceptions stated in the IRR.
Procurement of goods of proprietary nature which can be obtained
only from the proprietary source.

When the procurement of critical components from a specific

supplier is a condition precedent to hold a contractor to guarantee
its project performance, in accordance with the provisions of its
contract.
Those sold by an exclusive dealer or manufacturer which does not
have sub-dealers selling at lower prices and for which no suitable
substitute can be obtained at more advantageous terms to the
GOP.

Attitudes of the contractor towards the

Project-in-Charge.
Small conflicts are unavoidable during
construction and these lead to problems.
Personal issues also impact the project and
cause delays.

Incapability on the part of the contractor to

handle other areas of specializations.

Other Issues: