APRIL 17,2018
Civil Engineers shall continue their
GROUP 4
Aguilar, Jovilyn B.
Punzalan, Lara Camille
PROFESSIONAL ETHICS
Fundamental Principles
Civil engineers uphold and advance the integrity,
honor and dignity of the civil engineering profession
by:
1. using their knowledge and skill for the
enhancement of human welfare and the
environment;
2. being honest and impartial and serving with
fidelity the public, their employers/employees
and clients;
3. striving to increase the competence and
prestige of the civil engineering profession;
and
4. supporting the professional and technical
societies of their disciplines.
Fundamental Canons
1. Civil Engineers shall hold paramount the
safety, health and welfare of the public and
shall strive to comply with the principles of
sustainable development in the performance
of their duties.
2. Civil Engineers shall perform services only in
areas of their competence.
3. Civil Engineers shall issue public statements
only in an objective and truthful manner.
4. Civil Engineers shall act in professional
matters for each employer or client as faithful
agents or trustees, and shall avoid conflicts
of interest.
5. Civil Engineers shall build their professional
reputation on the merit of their services and
shall not compete unfairly with others.
6. Civil Engineers shall act in such a manner as
to uphold and enhance the honor, integrity,
and dignity of the civil engineering
profession.
7.
professional development throughout their
careers, and shall provide opportunities for
the professional development of those civil
engineers under their supervision.
EXECUTION OF CONTRACTS
Supporting Documents to Facilitate the
Approval of Contract
a. Duly Approved Program of work and Cost
Estimates
b. Certificate of Availability of Funds
c. Approved Budget for the Contract
d. Abstract of Bids
e. Resolution of the BAC of the BAC
Recommending Award
f. Approval of Award by Approving Authority
g. Concurrence of Lending Institution in case of
Foreign-assisted Projects
h. Other pertinent documents as may be
reasonably required by existing laws
AWARD AND EXECUTING CONTRACT
Approval of Awards and Contracts
1. The head of the Infrastructure Department
concerned or his duly authorized
representatives shall approve awards and
contracts that are funded and/or
implemented by that Department including
agencies under or attached to it, within the
limits of their approving authority.
2. Awards and contracts implemented by both
infrastructure agencies shall be approved by
their respective Secretaries or, in the case of
the agencies not attached to any department
by the heads of the office concerned within
the limits of the approving authority granted
them by the President of the Philippines
(Government Side).
3. Beyond the limits of the approving authority
of the above mentioned officials, awards and
contract shall be submitted to the President
of the Phil. (Government Infra Project) or his
authorized representative for approval.
4. In no case shall award of contracts be made
beyond the bid security validity period.
Approval of Contract
Contracts should normally be
approved/disapproved by the head of
Office/Agency/Corporation concerned in
accordance with existing laws, rules and
regulations within 15 calendar days from the
date the successful bidder or his duly authorized
representative shall have executed the contract
with the Office/Agency/Corporation concerned
and submitted all documentary requirements to
perfect the contract foremost of which is the
performance security. For contacts requiring by
the approval by the Office of the President, the
same should normally be approved/disapproved
within 30 calendar days from the date request for
approval of such contracts shall have been
received by the Office of the President.
Issuance of Notice to Proceed
The concerned Office/ Agency/
Corporation should issue the Notice to Proceed
(NTP) to the successful bidder not later than 15
calendar days from the date of approval of the
contract by the concerned/authorized
government official. The effectivity date for the
NTP shall be specified by the agency of
concerned.
Monitoring of Contract Awards Process
All government tendering agencies shall
submit to the NEDA Committee on Infrastructure
(INFRACOM), for monitoring purposes, the list of
all contract cost of 10 M and above approved by
the appropriate authorities indicating such
milestones as dates of advertisement, opening
of bids, evaluation of bids, submission to and
concurrences of foreign financial institutions,
award of contract, approval of contracts and
Notice to Proceed normally within 15 calendar
days from date of Notice to Proceed.
Contract Completion
Once the project reaches as
accomplishment of 95% of the total contract
amount, the government/owner 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 as of the date of the contract suspension.
This, however shall not preclude the
government/owner claim for “Liquidated
Damages”, nor the contractor’s claim for
incentive bonus, as the case may be.
CONTRACT BOND
Introduction
Bonds are a means of protection against
the non-performance of the contractor. They are
an undertaking by a bondsman or surety to make
a payment to the client in the event of non-
performance of the contractor. The cost of the
bond is usually borne by the contractor, although
this is likely to be reflected in the contractor's
tender price.
Bonds can be 'on demand' or
'conditional', with conditional bonds requiring
that the client provides evidence that the
contractor has not performed their obligations
under the contract and that they have suffered a
loss as a consequence.
Performance Bond
A performance bond is commonly used
as a means of insuring a client against the risk of
a contractor failing to fulfill contractual
obligations to the client, although they can also
be required from other parties.
Performance bonds are typically set at
10% of the contract value. This compensation
can enable the client to overcome difficulties that
have been caused by non-performance of the
contractor, such as, finding a new contractor to
complete the works.
Advance Payment Method
If the client agrees to make an advance
payment to the contractor, (for example where
the contractor incurs significant start up and
procurement costs before construction begins),
a bond may be required to secure the payment
against default by the contractor. This will
normally be an on-demand bond.
Off-Site Materials Bond
 It can sometimes be appropriate for the
client to pay for items even though they remain
‘off-site’, for example, where a contractor has
made a large payment for plant or materials that
have yet to be delivered to site, or if the client
wishes to ‘reserve’ key items in order to protect
the programme.
This is similar to the situation where an
advanced payment is made in that a bond
secures the payment against default by the
contractor and is likely to be an on-demand
bond. The bond might be up to the value of the
off-site items, with the value of the bond reducing
as deliveries to site are made.
Bid Bond (or Tender Bond)
Bid bonds are rare in the UK, but can be
a requirement of an international tender process.
They are usually on-demand bonds submitted
with a tender to secure the tender's commitment
to commence the contract. The bond is partially
or fully forfeited if the winning tender fails to
execute the contract or meet other specified
conditions.
Bid bonds can be open to abuse by the
client and may prevent smaller companies from
tendering.
Retention Bond
Retention is a percentage (often 5%) of
the amount certified as due to the contractor on
an interim certificate that is retained by the client.
The purpose of retention is to ensure the
contractor properly completes the activities
required of them under the contract. Half of the
amount retained is released on certification of
practical completion and the remainder is
released upon certification of making good
defects.
An alternative to retention is a retention
bond, where the client agrees to pay the
amounts which would otherwise have been held
as retention, but instead a bond is provided to
secure the amount that would have been
retained. As with retention, the value of the bond
will usually reduce after practical completion has
been certified.
Defects Liability Bond (or Defects Liability
Demand Guarantee)
The defects liability period (now called the
'rectification period' in Joint Contracts Tribunal
(JCT) contracts) begins upon certification of
practical completion and typically lasts six to
twelve months. During this time, it is the
contractor's responsibility to rectify any defects
that become apparent in the works.
A defects liability bond can be used to ensure
that the contractor continues to provide services,
rectifying defects that become apparent after
practical completion has been certified. This is
generally an on-demand bond that may be
required on projects where there are no
remaining payments to be made, or other
security such as retention, after practical
completion.
SPECIFICATIONS FOR CONSTRUCTION
Specifications describe the materials and
workmanship required for a development. They
do not include cost, quantity or drawn
information, and so need to be read alongside
other information such as quantities, schedules
and drawings.
Specifications vary considerably
depending on the stage to which the design has
been developed, ranging from performance
specifications (open specifications) that require
further design work to be carried out, to
prescriptive specifications (closed
specifications) where the design is already
complete.
Having a prescriptive specification when
a contract is tendered gives the client more
certainty about the end product, whereas a
performance specification gives suppliers more
scope to innovate and adopt cost effective
methods of work, potentially offering better value
for money.
Typically, performance specifications are
written on projects that are straight-forward and
are well-known building types, whereas
prescriptive specifications are written for more
complex buildings, or buildings where the client
has requirements that might not be familiar to
suppliers and where certainty regarding the
exact nature of the completed development is
more important to the client.