BIDS EVALUATION AND AWARD COMMITTEE (BEAC) CHARTER

1.0 PURPOSE
This policy outlines the complete process of BEAC function on a per project basis. This
process will ensure that the BEAC will serve its function as the main approver unit of the bids
and estimates in all stages of a Project.

2.0 DEFINITION OF TERMS

Board of Directors - refers to the governing body elected by the stockholders that exercises
the corporate powers of a corporation, conducts all its business and controls its properties.
President – refers to the person elected by the Board of Directors from among its members,
who shall have administration and direction of the day-to-day business affairs of the
Corporation.
Managing Director – refers to the person elected by the Board of Directors who is responsible
for the daily operations of the Company, organization, or corporate division.
Chief Financial Officer – refers to the officer of the Company that has primary responsibility
for managing the Company's finances, including financial planning, management of financial
risks, record-keeping, and financial reporting.
Business Unit Head – refers to the person who oversees a business unit within their
organization. They are responsible for preparing a budget, as well as overseeing the creation
and preparation of market reports.
Procurement Head – refers to the person who is responsible for overseeing the buying
activities of the Company to ensure that it has all the materials, items and personnel it needs
to function efficiently.
Bids Evaluation and Awards Committee – The BEAC shall be responsible for eligibility
screening, bidding, evaluation of bids, post qualification and recommending award of
contracts.
Company/ Corporation – D.M. Consunji, Inc. (DMCI)
Bid Documents – are documents issued by the Procuring Entity of a prospective Client to
provide the prospective bidders all the necessary information that they need to prepare
their bids. These documents include but not limited to:
1. Invitation to Bid
2. Instruction to Bidders
3. General Conditions
4. Specifications
5. Bid Plans
6. Bid Bulletins

Bid Proposal – a firm's plan and proposed cost for fulfilling the conditions outlined in a request
for proposal or other information gathering or supplier contact activity
Notice of Award – it is a written confirmation of an award of a contract by a customer (owner
or principal) to a successful bidder, stating the amount of the award, the award date, and when
the contract will be signed. It may also contain a notice to proceed, and it is sometimes also
used in lieu of a purchase order to a vendor.

3.0 SCOPE
The extent of this procedure covers the submission of documents by SBU Estimation
Department to the Bids Evaluation and Award Committee up to the final revision of Bid
Proposal prior to submission to the Client.

4.0 COMPOSITION

The BEAC shall have at least five (5) members comprising of the following:

1. The President;
2. The Managing Director;
3. The Chief Finance Officer;
4. Business Unit (BU) Head; and
5. Procurement Head

In case of unavailability, duly authorized representatives may be sent by the members to

represent them and to act in their behalf.

5.0 RESPONSIBILITIES
General duties and responsibilities
Board of Directors - The Board of Directors (the “Board”) is primarily responsible for the
governance of the Corporation. It is the Board’s responsibility to foster the long-term success
of the Corporation, and to sustain its competitiveness and profitability in a manner consistent
with its corporate objectives and the long-term best interests of its shareholders and other
stakeholders.
It shall be the Board’s responsibility to foster the long-term success of the Corporation and
secure its sustained competitiveness in a manner consistent with its fiduciary responsibility,
which it shall exercise in the best interest of the Corporation, its stockholders and other
stakeholders. The Board shall conduct itself with utmost honesty and integrity in the discharge
of its duties, functions and responsibilities.

• The Board should formulate the Corporation’s vision, mission, strategic objectives,
policies and procedures that shall guide its activities, including the means to effectively
monitor Management’s performance.
• The Board should oversee the development of and approve the Company’s business
objectives and strategy, and monitor their implementation, in order to sustain the
Company’s long-term viability and strength
• The Board should be headed by a competent and qualified Chairperson.
• The Board should be responsible for ensuring and adopting an effective succession
planning program for directors, key officers and management to ensure growth and a
continued increase in the shareholders’ value. This should include adopting a policy
 on the retirement age for directors and key officers as part of the management
succession and to promote dynamism in the Corporation.
• The Board should establish formal and transparent board nomination and election
policy that should include how it accepts nominations from minority shareholders and
reviews nominated candidates. The policy should also include an assessment of the
effectiveness of the Board’s processes and procedures in the nomination, election, or
replacement of directors should be aligned with the strategic direction of the Company.
• The Board should have the overall responsibility in ensuring that there is a group-wide
policy and system governing related party transactions (RPTs) and other unusual or
infrequently occurring transactions, particularly those which pass certain thresholds of
materiality. The policy should include the appropriate review and approval of material
or significant RPTs, which guarantee fairness and transparency of the transactions.
The policy should encompass all entities within the group, considering their size,
structure, risk profile and complexity of operations.
• The Board should be primarily responsible for approving the selection and assessing
the performance of the Management led by the Chief Executive Officer (CEO), and
control functions led by their respective heads (Chief Risk Officer, Chief Compliance
Officer, and Chief Audit Executive).
• The Board should establish an effective performance management framework that will
ensure that the Management, including the Chief Executive Officer, and personnel’s
performance is at par with the standards set by the Board and Senior Management.
• The Board should oversee that an appropriate internal control system is in place,
including setting up a mechanism for monitoring and managing potential conflicts of
interest of the Management, board members, and shareholders. The Board should
also approve the Internal Audit Charter.
• The Board should oversee that a sound enterprise risk management (ERM) framework
is in place to effectively identify, monitor, assess and manage key business risks. The
risk management framework should guide the Board in identifying units/business lines
and enterprise-level risk exposures, as well as the effectiveness of risk management
strategies.
• The Board should have a Board Charter that formalizes and clearly states its roles,
responsibilities and accountabilities in carrying out its fiduciary duties. The Board
Charter should serve as a guide to the directors in the performance of their functions
and should be publicly available and posted on the Company’s website.

President – the President has the primary responsibility for leading the company, managing
senior staff, developing strategies and communicating with stakeholders.

• Determines the Corporation’s strategic direction and formulates and implements its
strategic plan on the direction of the business;
• Communicates and implements the Corporation’s vision, mission, values and overall
strategy and promotes any organization or stakeholder change in relation to the same;
• Oversees the operations of the Corporation and manages human and financial
resources in accordance with the strategic plan;
• Has a good working knowledge of the Corporation’s industry and market and keeps
up-to-date with its core business purpose;
• Directs, evaluates and guides the work of the key officers of the Corporation;
• Manages the Corporation’s resources prudently and ensures a proper balance of the
same;
• Provides the Board with timely information and interfaces between the Board and the
employees;
 • Builds the corporate culture and motivates the employees of the Corporation; and
serves as the link between internal operations and external stakeholders.
Managing Director - Managing Director oversees the Company's business operations, liaise
with stakeholders, drive strategic Company growth, and are responsible for the overall
performance of the business.
• Developing and executing business strategies to achieve short and long-term goals.
• Reporting to the board, providing market insights and strategic advice.
• Developing and implementing business plans to improve cost-efficiency.
• Maintaining positive and trust-based relations with business partners, shareholders,
and authorities.
• Overseeing the Company's business operations, financial performance, investments,
and ventures.
• Supervising, guiding, and delegating executives in their duties.
• Ensuring Company policies and legal guidelines are clearly communicated.
• Assessing, managing, and resolving problematic developments and situations.
• Building and enhancing the Company's public profile at events, speaking
engagements, etc.

Chief Finance Officer - The Chief Financial Officer (CFO) of the Company has primary
responsibility for the planning, implementation, managing and running of all the finance
activities of the Company, including business planning, budgeting, forecasting and
negotiations. The CFO job description should also extend to obtaining and maintaining
investor relations and partnership compliance.
• Drive the Company’s financial planning.
• Perform risk management by analyzing the organization’s liabilities and investments.
• Decide on investment strategies by considering cash and liquidity risks.
• Control and evaluate the organization’s fundraising plans and capital structure.
• Ensure cash flow is appropriate for the organization’s operations.
• Supervise all finance personnel (controllers, treasurers etc.).
• Manage vendor relationships.
• Prepare reliable current and forecasting reports.
• Set up and oversee the Company’s finance IT system.
• Ensure compliance with the law and Company’s policies.
• Manage team of financial controllers and financial analysts.

Business Unit Head – A Business Unit Manager's primary responsibility is to ensure that
a business unit – a particular segment of the Company, such as Building and
Infrastructure– is meeting goals that contribute to the overall success of a Company.
• Incorporate Company procedures and policies in operations of business unit.
• Monitor and review project activities and ensure its completion within scheduled time
and budget.
• Manage business activities focusing on financial and strategic growth of organization.
• Create new marketing strategies and monitor QA and QC measures.
• Build strong relationship with the customers in order to maintain good revenue
growth.
• Manage start-up costs and finances of business unit by efficient financial
management.
• Perform review and validation of system layouts and equipment.
 • Create harmonious working environment, train and mentor staff and motivate all
team members to perform efficiently. Explore and analyze market trends and identify
new opportunities in assigned region.
• Coordinate with Marketing team to develop and implement operational plans for new
product launches.
• Work on requirements provided by senior management whenever required.

Procurement Head - Procurement head chooses suppliers and the merchandise or services
needed to meet customer needs. They use their expertise and negotiation skills to meet with
vendors, work out contract terms and their decisions have a major impact on the Company's
operations.

• Create and implement regional procurement strategies that are innovative, cost-
effective, and incorporate the growing complexities and challenges within industry.
• Build long-term relationships with vendors in the industry.
• Compare proposals for price and specifications.
• Negotiate with vendors to reduce costs.
• Review contract specifications on behalf of the Company.
• Communicate with vendors to ensure that the product arrives in a timely fashion.
• Build and maintain long-term relationships with critical suppliers.
• Manage technological systems that track the shipment, inventory and supply of
materials.
• Lead transformational activities to build procurement organizational capabilities and
improve procurement efficiency.
• Prepare daily, weekly and monthly procurement reports.
• Ensure adherence to all safety, health, and environmental rules and regulations.
• Keep abreast of changing industry trends.

Specific Duties and Responsibilities as members of the Bids Evaluation and Awards
Committee:

• Receive the bids.

• Review and evaluate the competitiveness of bids in accordance with all of the relevant
information such as scope of work, purchase description/specifications as set out in
the original tender documents.
• Attend pre-bid conference.
• Approve or improve the over-all cost build-up, risk analysis and qualification statement
recommended by the SBU Head.
• Advertise and post the invitation to bid.
• Determine the eligibility of prospective bidders.
• Undertake the final negotiations and proceedings.
The Bids Evaluation and Award Committee also has the function to:

• Reserve the right to reject any or all bids; Waive any defect or formality;
• Declare failure of bidding if there is evidence of any prohibited act which restricts,
suppresses or nullifies any or all bidding procedures to the disadvantage of the
Company;

6.0 GENERAL GUIDELINES

• The Bid Manager/ Estimating Head shall prepare a presentation based on the results
of the estimate, analysis and generation done.
• Bids Evaluation and Award Committee shall convene upon the request schedule of the
Bid Manager/ Estimating Head.
• Categorically, only Bid Proposal for large projects (projects amounting to Php200M
and up) shall pass through the BEAC.
• Bid Proposal for projects below Php200M shall be approved by the President and/ or
Managing Director only.
• During the meeting, a designated person shall document every changes and
comments done by the committee. This will serve as record and reference for future
use.
• In the case of presentation for subcontractors and/ or suppliers, the lowest evaluated
responsive bid shall be chosen.
• After the meeting, the list of all changes recorded shall be incorporated to the bid
submission for the final revision prior to submitting to the Client.