05 - Gen Conditions PDF

GENERAL CONDITIONS OF CONTRACT
Project : FRANSSEN RESIDENCE

Location : Maddela, Quirino Province
Subject : General Conditions of Contract
CP01- General Construction Works
CONTRACT DEFINITION OF TERMS
1. In the Contract Documents, as hereinafter defined, the following words and expressions shall have the meanings
hereby assigned to them except where the context otherwise requires:
Bill of Preliminaries - means the detailed priced and completed bill of general
requirements or preliminary items necessary to properly manage
the implementation and satisfactory completion of the contract
works according to the terms and conditions of the bid and
contract documents. The total price of this Bill of
Preliminaries should be reflected in the Bill of Quantities
under the main item on General Requirements. This is Bid
Document No. 06 among the list of bidding documents.
Bill of Quantities/Book Proposal Form - means the priced and completed bills of quantities or Detailed
Breakdown of Works contained within the Contract Documents.
This Bid Document No. 08 among the list of bidding documents.
Contract - means the legally executed agreement between the Owner and
the Contractor for the performance of and payment for the Works
as defined in the contract documents. The form of contract to be
used is Bid Document No. 04 among the list of bidding
documents.
Contract Documents - mean the Invitation To Bid, the Instructions to Bidders, the Form
of Contract, General Conditions of Contract, the Outline
Specifications, the Contract Drawings, the Bill of Preliminaries,
the Bill of Quantities, Proposal Forms, the Contractor’s Bid/
Proposal, Notice of Award, Notice to Proceed, the Contract/
Agreement, Minutes of Pre-bid and Post-Bid Conferences and
Clarificatory Meetings, Confirmation Letters and such
documents as may be expressly incorporated in the Contract/
Agreement.
Contract Drawings - mean all the drawings referred to as Bid and/or Contract
Drawings in the Contract/Agreement and any subsequent Shop
or Fabrication Drawings, Combined and Composite Drawings,
modifications thereof or addendums and supplementary detailed
drawings thereto made under these General Conditions.
Contract Period/Time - means the period of time stated in the Contract/ Agreement, or
as adjusted in accordance with the Contract Conditions or other
Contract Documents, within which the Contractor must complete
the Contract Works.
Contract Sum/Contract Price - means the sum stated in the Contract/Agreement, which sum is
subject to adjustment by means of amendments, variations
and/or change orders, in accordance with the Contract
Conditions and other Contract Documents but shall not be
adjusted due to fluctuations in the prices of materials, equipment
and labor cost.
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FRANSSEN RESIDENCE [1702] BD05
Contract Works - mean the Building, Structure, Building Elements or Services,

Construction Package or any other form of permanent
improvement or facility resulting from the execution and
completion of the construction activities by the Contractor
pursuant to the Contract Documents, including temporary
improvements or facilities, utilities and other items required for
the execution and the maintenance of the building, structure or
permanent improvement to be constructed or installed pursuant
to the Contract Documents. For this purpose, the contract works
shall be the Site Development of the Project including relocation
and/or protection of utilities affected by the temporary and/ or
permanent construction works and/ or improvements.
Contractor - means the construction firm or company duly organized and

existing in accordance with Philippine laws and has the valid
PCAB License Registration and Classification issued by the
Philippine Contractors Accreditation Board (PCAB)
/Construction Industry Authority of the Philippines (CIAP) for the
type and size range of the Contract Works to be bid in
accordance with the Contractor’s Licensing Law.
Certificate of Practical Completion/ Substantial - refers to the certificate signed by the Owner/ Developer, the
Completion Contractor and/or the Project Managers upon the completion of
the Contract Works pursuant to Clause 25, hereunder.
Practical/Substantial Completion may have been attained when
the Contract Works are complete to the stage where the Owner
can have beneficial occupancy of the Contract Works without
major balance of works and where rectification of any defects
found during the Defects Liability Period, shall not cause undue
disturbance to the occupants/users. Upon issuance of
certificate, the Contract Period and any other extensions of time
granted to the contractor are deemed ended.
Construction Drawings - mean the drawings, either bid and/or contract drawings or
design drawings and/or shop and/or fabrication drawings issued
by the Owner through the Project Managers and prepared by the
design consultants and further revised by the bidder for value
engineering and cost reduction measures and duly marked “For
Construction” by the Project Team after review and approval to
be followed by the Contractor in the execution and
implementation of the Contract Works.
Day - means a calendar day. All references to days are deemed to

include holidays, Saturdays, Sundays, and any days of typhoons
or inclement weather unless stated otherwise.
Defects Liability Period - means the period stated in the Contract/Agreement which
commences upon the issuance of the Certificate of Practical
Completion/Substantial Completion and usually extends from
thirty (30) to sixty (60) days thereafter to give time to the
contractor to repair or rectify and/or replace and make good all
identified and discovered defects or non-compliances in the
works prior to final completion and acceptance of the works.
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Nominated Subcontractor/Supplier - means any subcontractor/supplier selected on behalf of the
Owner but employed by and under the control of the Contractor
for the purpose of having such subcontractor/supplier undertake
a specific portion or portions of the Contract Works, if there are
any.
Owner/Developer or Owner - means IVO FRANSSEN or his representatives
Project - means the FRANSSEN RESIDENCE located at Maddela,

Quirino Province.
Project Managers & Quantity Surveyors - mean PRIME MANAGERS INC. (PRIMA), the group of
professional Technical and Administrative Project Management
and Cost/Quantity Surveying Consultants hired by the Owner as
its agent on a fiduciary manner and assigned to handle the over-
all management and quantity surveying of the project
Specifications - mean the bid and contract technical specifications of the

Contract Works issued by the Owner and/or prepared by the
consultants included in the Contract/ Agreement and any
subsequent modifications thereof or additions thereto made
under these General Conditions, including the Performance
Specifications used for the Contract.
Project Site / Site / Jobsite - means the place or area where the Contract Works will be
executed.
INTENT OF CONTRACT DOCUMENTS:
a. The intent and spirit of the Contract Documents are to provide for all the Contract Works, as specified and shown to be
executed professionally with all the care, diligence and responsibility and to be so executed within the Contract Period
stated within the Contract/Agreement. The Date of Commencement of the Contract Works shall be stated in the Notice
of Award and/or Notice to Proceed and deemed ended upon issuance of the Certificate of Practical/Substantial
Completion.
b. The Contractor shall execute the Contract Works in every detail for which it is specifically designed, and agrees to
furnish everything reasonably and indispensably necessary for the Contract Works, to ensure satisfaction of the
Owner/Developer and the Project Managers in accordance with the Bid and Contract Documents.
c. All matters, which may have been omitted from the Bid and Contract Documents but may reasonably be inferred to be
obviously necessary for the efficient execution, completion and operation of the Contract Works, shall be deemed to
have been included in the Contract Amount/Sum.
d. If the Contractor is in any doubt as to the exact meaning and intent of any part of the Bid and Contract Documents, or
find any discrepancy in or divergence between the Contract Documents, he/she shall immediately inform the Owner
through the Project Managers in writing within seven (7) calendar days, who will issue instructions relative to the query
or queries. The Contractor shall be held responsible for any errors and/or losses he may make as a consequence of
failing to obtain such meaning and intent, or not informing the Project Managers of any discrepancy or divergence within
the stipulated timeframe. The Contractor shall not take advantage of any apparent error or omission or discrepancy or
divergence in or from or between the Contract Documents.
1. CONTRACT DOCUMENTS
a. These documents shall form part of the Contract, but shall not be limited to the following:
1. Invitations to Bid
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2. Instructions to Bidders
3. Form of Contract
4. General Conditions of Contract
5. Bill of Preliminaries
6. Letter Proposal Form “A”
7. Book Proposal Form “B” / Bills of Quantities
8. Bid Specifications
9. Bid Drawings, Plans, Sections, Details
10. Bid Bulletins, Supplemental Notices, Addenda
11. Minutes of Pre-Bid and Post-Bid Conferences
12. Contents of the Sealed Proposals containing the Updated Eligibility Requirements, Technical and Financial Bids
13. Advance Payment Security/Bond
14. Performance Security/Bond
15. Payment Security/Bond
16. Contractor’s All-Risk and Comprehensive General Liability Insurance
17. Notice of Award and/or Notice to Proceed with Contractor’s “Conforme” thereto
18. Other pertinent and related Contract Documents which may be issued or required by the Owner/Developer
b. All parts of the Contract Documents, as defined, shall be of equal weight and shall be taken as mutually explanatory of
one another. In cases of discrepancy, defective description, error, omission, or ambiguity found in the contract
documents, the following shall be the general rule of interpretation:
b.1 The Contract/Agreement shall govern over the General Conditions of Contract
b.2 The Technical Specifications shall govern over the detailed drawings and the detailed drawings shall govern over
the general drawings
c. Three (3) copies of the Contract Documents shall be signed by the parties to the Contract, and furnished to the Owner,
the Project Managers and the Contractor.
d. The Contractor shall keep a copy of all Contract Documents on Site at all times.
e. During the execution of the Contract Works, the Owner may issue through the Project Managers, if deemed necessary,
additional drawings, sketches or details, which may be reasonably necessary to explain or amplify the Contract
Drawings, or to enable the Contractor to execute the Contract Works in accordance with these General Conditions
without any additional amount to the Contract Sum.
f. The Owner, Project Managers, Contractor, and its subcontractors/suppliers shall use none of the Contract Documents
for any purpose other than this Contract/Project.
g. The Contract Documents shall supersede and supplant all other prior communications, promises, covenants, and
undertakings of whatever nature, whether oral or written, between the parties on the same subject matter, which have
not been incorporated into the Contract Documents. No amendments or change in any of the provisions of the Contract
Documents shall bind either party unless agreed to in writing by their duly authorized representatives.
2. LANGUAGE AND UNIT SYSTEM
All drawings, designs, specifications, manuals, name plates, markings, instructions, statements, schedules, notices,
documents and all communications concerning the Contract Works shall be in the English Language and in the metric
systems of weights and measures unless otherwise specified or required by the Owner, its Design Consultants and/or the
Project Managers.
3. AUTHORIZED REPRESENTATIVE AND COMMUNICATIONS
a. The Project Managers shall be duly authorized to act on behalf of the Owner/Developer with respect to the execution
of the Project and the supervision of all works related to the Project. The Project Managers shall be entitled to appoint
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representatives to exercise on the Project Managers behalf, duties and powers authorized under this Contract. Such
appointment shall be notified in writing to the Contractor.
b. The representative of the Contractor shall be duly authorized to act on behalf of the Contractor with respect to any or
all matters relating to the execution of the Contract. The Contractor, before the signing of the Contractor Documents
shall appoint his duly authorized representatives and notify the Owner/Developer and the Project Managers for approval
thereof.
c. Unless otherwise required by the Project Managers, all notices for the implementation of the Contract Works under this
Contract, between the Project Managers and the Contractor shall be in writing and sent by fax, e-mail or telegraph or
telex or given either by personal delivery or by registered mail to the party concerned.
4. BID DOCUMENT NO. 08: BILLS OF QUANTITIES/BOOK PROPOSAL FORM “B”
The quality and quantity of the Contract Works included in the Contract Sum shall be deemed to be those which are set out
in the Contract Drawings, Specifications, Bill of Preliminaries and Bills of Quantities/Book Proposal Form “B”. The Bills of
Quantities shall NOT be subject to final re-measurement by the Owner/Developer and/or the Project Managers and Quantity
Surveyors during the actual execution of the Contract Works nor upon its completion except in cases of variation orders,
change in design and specifications requiring deductive and additive works and with the exception of the quantities for Owner-
supplied materials in which any underrun shall be for the account of the Contractor while any overrun shall be returned
to the Owner. Hence, any error in quantity, or omission of items from the Bills of Quantities or Book Proposal Form shall
not vitiate the Contract and shall not entitle the Contractor to any adjustment in contract sum except for Owner-supplied
materials, as the Contractor is deemed to have satisfied itself as to the accuracy and completeness of the quantities at the
bid stage. Any error in description and quantity in the Bills of Quantities or Proposal Form “B” shall not vitiate the Contract,
but shall be corrected to comply with the drawn and specified quality and shall not constitute a variation except for the Owner-
supplied materials.
5. MEASUREMENTS
a. Prior to ordering materials or commencing work, the Contractor shall check all measurements on Site and any
discrepancies shall be brought to the attention of the Project Managers for resolution within seven (7) days upon
discovery of such discrepancies.
b. Should the Contractor fail to comply with the foregoing resulting in surplus materials, abortive and/or remedial work,
then the cost of such surplus material, abortive and/or remedial works shall be borne by the Contractor. Any overruns
in the quantities of Owner-supplied materials shall be returned to the Owner.
6. CONTRACTOR’S RESPONSIBILITIES, RISK, SUBMITTALS AND OBLIGATIONS
a. In addition to the Contract Works specified in the Contract/Agreement and other parts of the Contract Documents, the
Contractor shall perform, undertake and submit the following within seven (7) calendar days upon issuance of the Notice
of Award and/or Notice to Proceed, whichever comes first or on the specific due dates stipulated for each item:
a.1 The timely and proper preparation of detailed composite (combined and coordinated) services/utility working
drawings and shop drawings based on the bid design drawings and specifications, and other design,
fabrication and/or shop drawings necessary for the complete execution of the Contract Works;
a.2 The brochures, catalogues, performance graphs and technical literature of all items, systems, components
and devices, requiring such.
a.3 The securing, at Contractor’s own expense prior to any activity at the site, of all the necessary local and
national government permits, clearances and licenses that are required for the execution and completion of
the Contract Works as stipulated in the Instructions to Bidders, Form of Contract, General Conditions of
Contract and other Bid Documents.
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a.4 Prior to start of work, the Contractor shall submit to the Owner, through the Project Managers, original and
three (3) photocopies of all required governmental permits, whether secured by them or by the Owner or by
other contractors assigned by the Owner.
a.5 The supervision, coordination and provision of attendance on, and be fully responsible for the Contract Works
of all the Nominated Subcontractors and Nominated Suppliers, if there are any, so as not to hinder the program
of their Contract Works and the Project as a whole;
a.6 The submission to the Project Managers of two (2) samples of all materials to be incorporated into the Contract
Works, for the Owner’s and design consultant’s approval, prior to ordering the said materials. However, the
approval of it does not relieve the Contractor from his expressed obligation to provide satisfactory complying
materials. Materials found to be non-conforming to that specified or approved shall be removed from Site
immediately, and replaced with approved materials within the stipulated contract period without time and cost
adjustment;
a.7 The submission of a Site Safety, Security, Sanitation/Health and Environmental Management & Protection
Program as required by the Basic Occupational Safety and Health Standards and Department Order No. 13
of the of the Bureau of Working Conditions of the Department of Labor and Employment duly stamped
“Received” by the said bureau and department.
a.8 Furnish the Project Managers, with all test certificates, mill certificates in respect or materials and equipment,
showing compliance with the quality standards required. The Contractor shall supply all warranties and/or
guarantees for the materials, equipment, devices, systems and workmanship. These warranties and
guaranties shall be handed over to the Project Managers, and be in favor of the Owner at Practical/Substantial
Completion of the Contract Works;
a.9 Attend all project meetings that will be required by the Owner and/or the Project Managers and as specified
below:
a.9.1 Within seven (7) calendar days of Award of Contract, the Project Managers shall convene a meeting
of all parties involved in the Project. The meeting will be the forum for the Contractor to officially
advise the Owner and Project Managers as to his general plan and program for the carrying out of
the Contract Works, and to meet and be acquainted with the personnel involved and their respective
duties. The Project Managers shall distribute the Minutes of said Meeting to all attendees.
a.9.2 Every one or two weeks, or as required, the Project Managers shall convene a meeting on site, and
in attendance shall be the Contractor’s senior management, technical and administrative personnel,
the Nominated Subcontractors and Suppliers, if any, and the Project Managers. The Owner
reserves the right to attend at his option, the purpose of which is to solve any problems hindering
the progress of the works. Other matters shall be taken up as required. The Project Managers shall
distribute the minutes of this meeting as soon as possible after the meeting date but not later than
four (4) days after the said meeting.
a.10 Weekly Progress Reports (1 copy) shall be submitted by the Contractor every Saturday of each 1st, 2nd and
3rd weeks of the month each copy of which should bound in a presentable folder and to include the following
information:
• Weekly Activity Report of Completed and Unaccomplished Works
• Following Week’s Program of Activities
• Pending Design Issues affecting the Works
• Updated Schedule in Bar Chart Form showing Projected and Actual Progress
• Causes of Delays and Remedial Measures to mitigate them.
• Detailed Manpower Count
• Equipment Utilization Status
• Weather Conditions indicating events affecting work progress
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a.11 Monthly Progress Reports (3 copies) shall be submitted by the Contractor before the 10th day of every
succeeding month each copy of which should be neatly bound in a presentable folder and to include the
following information:
• Executive Summary for the last month’s Activities and Accomplishments
• Progress Photographs of the views of the structure from four angles and all the major activities and
accomplishments of the month in digital format, colored photos.
• Off-site Works
• Following Month’s Program of Works and Projected Accomplishments
• Updated Schedule in Bar Chart and CPM Network forms showing projected and current/actual
progress of work.
• Causes of Delays and Catch-up Measures
• Weather Conditions highlighting days when the weather had affected the activities and progress of
work for the Project particularly during a Signal No.3 Typhoon.
• Monthly Site Safety, Security, Health/Sanitation & Environment Management Report
• Monthly Cash Flow Projections
b. The Contractor shall also perform, undertake and submit the following within the dates/days stipulated for each:
b.1 The preparation and submission of complete as-built drawings ten (10) calendar days before final payment is
made by the Owner to the Contractor (to be partially prepared and submitted every month and attached to
the Requests for Progress Payment);
b.2 He shall submit to the Owner, through the Project Managers, original and three (3) photocopies of all required
governmental permits, prior to start of work, including the Occupancy Permit, whether obtained by them or by
any other contractor assigned by the Owner. If the Occupancy Permit has not been obtained as of the date
of final payment then the cost incurred or to be incurred in obtaining such permit shall be retained by the
Owner/Developer until the occupancy permit is obtained and submitted to the Owner/ Developer;
b.3 Original and three (3) copies of operation and preventive maintenance manuals, supplier’s warranties, and
spare parts list of machinery and equipment supplied and installed by the Contractor, Nominated
Subcontractors and Nominated Suppliers. A first draft for approval shall be submitted ten (10) calendar days
prior to the practical/ substantial completion date. All operation and maintenance manuals shall be similarly
hard bound and properly labeled when finalized;
b.4 A copy of the Certificate of Practical/Substantial Completion, together with the Report of Acceptance of closed-
out punch-listed items of work must be submitted to the Owner before the Certificate of Final Inspection,
Completion and Acceptance is released;
c. The Contractor shall be liable for, and shall indemnify the Owner against, any expense, liability, loss claim or
proceedings in respect of any personal injury or death or damage whatsoever to any real property or person including
but not limited to the Contract Works and all materials and goods for incorporation therein insofar as such injury or
damage arises out of, or in the course of, or by reason of the carrying out of the Contact Works.
d. In the event the Owner and/or the Project Manager finds the Contractor negligent in its responsibilities under the
contract, and the corrective action is not taken opportunely, the Owner may at its discretion, terminate/rescind the
contract and may ban the Contractor perpetually or for a period of time from entering into a contract with the Owner. In
no case shall the exercise by the Owner of this prerogative diminish the Contractor’s responsibilities for the works under
the Contract.
7. OWNER’S/DEVELOPER’S OBLIGATIONS
a. The Owner shall provide the Contractor with a maximum of two (2) sets of complete detailed construction drawings and
two (2) sets of specifications. Any additional sets required by the Contractor shall be for its own account.
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b. All information and/or action required by the Contractor or any responsible party involved in the project, which can be
provided and undertaken by the Owner, shall be acted upon by the Owner in such timely manner so as not to delay the
progress of the Contract Works, provided that the Contractor has made request for such information or action within a
reasonably sufficient time or a period or not less than ten (10) calendar days prior to the works they will effect.
8. CONTRACTOR’S RISK AND RESPONSIBILITY
The Contractor shall take upon himself the whole risk of executing the Contract Works in compliance with the provisions of
the Contract Documents, and all the goods provided for the purpose of the Contract and all the work executed by him under
the Contract shall be at his own risk until Final Completion of all portions of the Contract Works, subject to any other provisions
of the Contract Documents.
9. FAMILIARITY WITH SITE AND CONTRACT WORKS
a. The Contractor shall be deemed to have inspected and examined the Site and its surroundings and to have satisfied
himself before submitting his bid as to the nature of the ground, so far as is practicable and having taken into account
any information in connection therewith which may have been provided by or on behalf of the Owner the form and nature
of the Site, the extent and nature of the Contract Works, and materials necessary for the completion of the Contract
Works, the means of communication with, and access to the Site, the accommodation he may require, and in general
to have obtained for himself all necessary information as to risks, contingencies and all other circumstances influencing
or affecting his bid. Therefore, the Contractor shall issue a Certificate of Site Inspection for this purpose, duly signed by
the Owner’s representatives and/or the Project Managers.
b. The Contractor shall be deemed to have satisfied himself before submitting his bid as to the correctness and sufficiency
of the quantities rates and prices stated by him in the Bill of Preliminaries and in the Bill of Quantities/Book Proposal
Form “B” which shall, except in so far as it is otherwise provided in the Contract, cover all its obligations under the
Contract.
10. SITE INFORMATION
Any information given in relation to the Site and existing utilities, be that information in the Bill of Preliminaries and in the Bill
of Quantities/Book Proposal Form “B”, or described in the Specifications or shown on the drawings, is given in good faith,
but no guarantee is given as to its accuracy. If the information is incorrect, or incomplete or misleading, the Contractor shall
not be entitled to any adjustment of the Contract Sum or any extension of time on the grounds that the information given is
inadequate, incorrect, incomplete or misleading. However, the Owner shall further review on a case-to-case basis the extent
of any adjustment and shall, upon the recommendation of the Project Manager, consider an appropriate compensation for
the inaccuracy of information.
11. PROVISION AND PAYMENT BY THE CONTRACTOR
Unless otherwise specifically noted in the other Bid Documents, the Contractor shall provide and pay for all supervision,
labor, materials, equipment, tools, machinery, water, electricity, oil, fuel, utilities, transportation, board-up, cleaning,
housekeeping, safety, security, fire protection, sanitation and other facilities and services, as well as any temporary offices,
accommodation and other structures necessary for proper execution and completion of the Contract Works.
12. MATERIALS AND WORKMANSHIP
a. All materials and equipment incorporated in the Contract Works shall be new and unused, free from defects and of first-
class commercial quality. All works shall be performed and completed in a thorough and workmanlike manner and shall
be properly protected from dust and pilferage until acceptance by the Owner and shall follow internationally accepted
standards to the best modern practice and proven technology in the manufacture of a high grade quality system to be
furnished, notwithstanding any omission from the Contract Documents.
b. Where a name of any proprietary article or any firm is included in the Drawings, Specifications and/or Bills of
Quantities/Book Proposal Form “B,” it is to be read only as an indication of the class or quality of materials and
workmanship required.
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c. The Owner shall establish the allowable tolerances to ensure the high level of workmanship. Unless stipulated in the
drawings and specifications, the allowable tolerance from any vertical and horizontal lines shall be not more than 5mm
for lengths of more than 3 meters or more and 3mm for lengths of less than 3 meters. Bulges and waves on surfaces
shall be not more than 3mm for all surfaces.
13. INSTALLATION PROCEDURES
The Contractor shall execute the Contract Works, using his best skill, judgment and attention. The Contractor shall be solely
responsible for all installation means, methods, techniques, sequences, procedures and for coordinating all portions of the
work under the Contract, and should comply with performance/technical specifications, codes and standards, installation and
application procedures as called for by the product manufacturers.
14. SCHEDULES
a. The Contractor shall submit his Bid Construction Schedule together with his Bid/Proposal. This schedule shall show
the manner and sequence of construction in Bar Chart and CPM Network forms, with all activities logically linked and
all the activities falling within the CRITICAL PATH shall be identified on it. It shall indicate the appropriate duration,
early start and early finish, late start and late finish and slack for each and every activity that the Contractor shall perform
including any off-site work and the activities of the other contractors which will directly or indirectly affect the progress
and completion of their works. The Contractor may use either an MS Project Professional or a Primavera Project
Planner P6. Claims for Extension of Time shall be evaluated based on these computer-generated schedules and will
be granted if and only if the delaying factors directly affect the activities falling within the Critical Path. For this purpose
the Contractor shall assign a full-time Project Scheduler to the site that shall coordinate with all the other Project
Schedulers of the other contractors on a daily and weekly basis. The Project Scheduler shall daily coordinate or include
the activities of all the other contractors whose work will affect the start and completion of all his activities.
b. The Contractor shall, within seven (7) calendar days of receipt of the Notice of Award/Notice to Proceed, submit a fully
detailed and updated Master Construction Schedule, in CPM and Bar Chart forms as discussed above. The Contractor
shall update the schedule weekly or as often as required by the Project Managers.
c. The Contractor shall at all times have the Bid and Master Schedules on display in his site office, and have it marked up
to date, in addition to issuing updated schedules. The Project Managers shall not consider any request for an extension
of the Contract Period unless the foregoing schedules and reports are maintained and current at the time when the
event giving rise to the request took place.
d. The Contractor shall submit with his bid, the schedule and diagram of site layout and board-up areas for construction
and for equipment such as cranes, hoists, storage areas, utility lines, offices, workshops, stores, toilet facilities, access
and egress points, permanent and temporary site roads, fuel storage, batch plant and silo, temporary elevators, security
stations, first-aid facility, garbage/debris collection and disposal areas, vehicle/tire washing/cleaning and parking areas.
e. The Contractor shall carry out the Contract Works strictly in accordance with his approved Construction Schedule. If
the Contractor is delayed in any area, which may affect Practical/ Substantial Completion of the Contract Works, then
he shall notify the Project Managers immediately giving the reason(s) for the delay and the action(s) proposed to be
taken to mitigate such delay and catch up with the schedule.
15. CONTRACTOR’S EMPLOYEES
a. All employees and management staff of the Contractor assigned to the execution of the Contract Works shall, at all
times, be identified and recognized as the employees under his administrative control and supervision, and shall at no
time be identified as employees of the Owner or any of the authorized representatives and Consultants of the Owner.
b. The Contractor shall obtain and furnish necessary security clearance and other documents for his employees performing
the Contract Works. No employee of any tier, shall be allowed to stay and live on Site or in the Contract Works unless
with proper authorization from the Owner and/or the Project Managers.
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c. The Contractor shall at all times take reasonable precautions and steps to prevent any unlawful, riotous and/or disorderly
conduct by and among its employees and workmen for the preservation of peace and order and the protection of
persons and property in the vicinity of the contract works or project site. The Contractor shall comply with all government
laws, regulations, and orders relative to the use of drugs. The Contractor shall not allow any of its employees or
workmen to work while under the influence of prohibited substances, drugs and/or alcoholic beverages.
d. At all times covered by this Contract, the Contractor shall exercise complete control and supervision over his employees.
The Contractor shall limit the movement of all its workmen and construction plant and temporary facilities on the right-
of-way, including the routes approved by the Owner and/or the Project Managers so as to minimize disruption on the
business activity of the center and prevent damage or loss of life and/or property. The Contractor shall be solely
responsible for any damages to or losses of life or lives and/or of the public and private property resulting from its
operations, whether on rights-of-way, on land and structures adjacent thereto or on approved access roads. The
Contractor and his employees shall conform to all applicable local laws, regulations, and ordinances, and shall promptly
correct any violations brought to his attention or observed. Whenever warranted, the Owner may make deductions from
payments due to the Contractor to cover such damages or losses as determined by the Project Managers.
e. The Contractor shall be responsible for the professional and technical competence of his employees, and shall select
and employ only those persons who in his judgment are reliable and competent, and who will comply with local laws
and customs, and conform to a high standard of moral and ethical conduct. The Contractor’s senior management,
technical and administrative staff must have the required education, license, training, experience and must be proficient
in the English language, both in written and oral communications.
f. The Contractor shall agree, upon written request from the Owner and/or the Project Managers and after discussion with
him, to terminate the employment of any of his employees performing the Contract Works, if the Owner and/or Project
Managers consider that such termination is necessary to protect the interest of the Owner and the Contract Works. The
Contractor shall bear all expenses necessary for such termination of employment and shall provide a competent person
for replacement at his own expense. The person or persons so terminated shall not be employed on the site in any
capacity or to any other project of the Owner perpetually or within a period of time to be dictated by the Owner.
g. The Contractor shall provide sufficient number of engineers, supervisors, foremen, technical assistants, skilled and
semi-skilled workers and helpers as necessary for the proper and timely execution of the Contract Works. The
Contractor shall increase the number of personnel for the Project if in the judgment and as can be reasonably proven
by the computations of the Owner and/or the Project Manager, it is required to be able to complete the Project on
schedule without any adjustment in the contract sum.
h. The Contractor shall observe the requirements of the Philippines Labor Code, and any amendment or regulation issued
by the Government or Municipality during the Contract Period.
i. The Contractor shall ensure that all employees and workmen assigned to the Project have undergone and have
satisfactorily completed an orientation/training on Construction Safety from the Safety Organization of the Philippines,
Inc. (SOPI) or similar safety institute in the Philippines or abroad; or has undergone sufficient training and seminars
conducted by the Contractor on Site Safety and Health and shall submit certificates of attendance to show proof. The
Contractor shall also provide to all his employees, FREE OF CHARGE, the necessary Personal Protective Equipment
to perform his duties and tasks in a safe, secure and healthy manner as stipulated in the Occupational Safety and Health
Standards promulgated by the Bureau of Working Conditions of the Department of Labor and Employment.
j. The Contractor shall be solely responsible for and liable to his employees; and shall hold the Owner, his
representatives/consultants free and harmless against any claim or legal action of whatsoever nature arising out of the
employment or contract with his employees.
16. PATENT RIGHTS, ROYALTIES AND INDEMNITY
The Contract Sum shall be deemed to have included all amounts payable for patent rights and royalties on or in respect of
the goods, materials and plan, used in the Contract Works or any parts thereof; and the Contractor shall indemnify and
exempt the Owner against all actions and claims arising out of the use of and/or exercise of any invention by reason of
purchase, possession or the use of such goods.
P a g e 10 | 25
17. TROPICAL SERVICEABILITY
All materials and equipment supplied under the Contract shall be suitable for being delivered, stored and operated under
tropical conditions of high temperature, high humidity, heavy rainfall, salty atmosphere, mildew and fungus-conducive
environment. Where necessary, the materials and equipment shall be adequately treated, protected and processed to meet
and withstand these conditions of environment, subject to the agreement and approval of the Owner.
18. SETTING OUT
The Contractor shall be responsible for accurately setting out the Contract Works from the “For Construction” drawings, to
the lines and levels as directed, and shall at his own expense correct any error arising from his own inaccuracy within the
stipulated contract period without any cost and/or time adjustment.
19. WORKS TO BE CONCEALED
The Contractor shall give the Project Managers a minimum of three (3) working days written notice, prior to covering up or
concealing work executed. Any work covered up or concealed without such notice shall be opened up by the Contractor as
necessary and covered up at his own expense.
20. SUBLETTING/SUBCONTRACTING
a. The Contractor shall not sublet/subcontract the whole or any part of the Contract Work, without the prior written consent
of the Owner and/or the Project Managers. Such consent, if given, shall not relieve the Contractor of his duties under
the Contract and he shall be responsible for acts, defaults and neglects of any Subcontractor as fully as if they were the
acts, defaults or neglects of the Contractor.
b. No contractual relationship shall exist between the Owner and the Subcontractor as a result of the above subcontract.
Should a Subcontractor, given prior approval by the Owner, prove to be unsuitable for the performance of his portion of
this Contract, the Owner and/or the Project Managers may direct the replacement of the said Subcontractor, and the
Contractor shall immediately comply with such direction within five (5) calendar days without extending the contract
period or increasing the contract price.
21. NATIONAL GOVERNMENT AND MUNICIPAL NOTICES, PERMITS & CLEARANCES
a. The Contractor shall pay for any and all fees and charges demandable under any Act or Ordinance or Decree of the
Republic of the Philippines, national, local and municipal decrees, or any instrument, rule, or order made under any Act
or Ordinance or Decree of the Republic of the Philippines, or any regulations of any City or Municipality or of any
company furnishing utilities in respect of the Contract Works.
b. The Owner shall secure the necessary Locational Clearance, Barangay Clearances, Building and Engineering Permits
for the Project. The Contractor shall secure from the national and/or municipal government and utility companies all
other necessary permits to start the work on the Project including the necessary Permits and Clearances to Install and
Operate required for the temporary and permanent equipment that will be used for the construction and operation of the
building such as Mobile or Tower Cranes, Lifting or Moving Equipment, Emergency Electric Power Generators, Jack
Hammers, Compressors, Elevators, Air-conditioners, Pumps, Motors, etc. and to secure the Wiring Permits,
Engineering and Building Occupancy Permits and Clearances and Certificates of Final Completion and Inspections by
Local Governments and Utility Companies.
c. The Contractor shall comply with and give all notices required by any Act or Ordinance or Decree of the Republic of the
Philippines, any instruments, rule, or order made under any Act or Ordinance or Decree of the Republic of the
Philippines, or rule, regulation or rule, ordinance of any Municipality or of any company furnishing utilities which has
jurisdiction over the Site or the Contract Works, or with whose systems the same are or will be connected. The
Contractor warrants that he is completely familiar with the Implementing Rules and Regulations of P.D. 1594, as
amended and the Republic Act No. 4566 entitled “Contractors’ Licensing Law.”
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22. ACCESS TO THE CONTRACT WORKS
At all reasonable times, the Owner and all those employed by him, including but not limited to the Project Managers,
Architects, Engineers, Interior Designers, Landscape Architects, Consultants, Subcontractors/Suppliers, Testing Agencies
and their authorized staff, shall have access to the Contract Works, and any other area (including those outside the site)
where the Contractor is performing work in connection with the Project.
23. VARIATIONS/CHANGE ORDERS
a. The term “Variation/Change Order” shall mean alteration, or modification of the design, quality or quantity of the Contract
Works as shown on the Contract Drawings, and described by or referred to in the Specifications; and the addition,
omission or substitution of any work, the alteration of the quality, kind or standard of any of the materials or goods to be
used in the Contract Works and the suspension or extension of the Contract Period.
b. The Project Managers may issue a Work Order to the Contractor requesting an estimate of the time and cost effect of
the Variation Price Request or Work Order. The Contractor shall provide the necessary information within seven (7)
calendar days (or sooner if deemed applicable by the Project Managers). The Project Managers may then issue to the
Contractor a formal Variation Order or Change Order stating the price to be paid and time allowed to comply with the
variation order or the Owner/Developer and/or the Project Managers may withdraw it.
c. The Owner and/or the Project Managers may issue an instruction at any time even if the Contractor is still executing the
Contract Works after the Date for Completion (or after extended date) and Practical/Substantial Completion has not yet
been achieved and the Contractor is obliged to comply with such instruction. Only the Project Managers when
calculating any extension of time due to the Contractor will take the direct time effect of that specific instruction on the
Critical Path of the Schedule or the Practical Completion into account. No variation shall vitiate or invalidate the
Contract.
d. Should the Contractor fail to comply with any instruction or order of the Owner and/or the Project Managers, within a
reasonable time, then the Owner/Developer may directly employ others to carry out the work contained in any instruction
or order not complied with; and the additional costs incurred by the Owner, in excess of what should have been the cost
had the Contractor carried out the extra work, shall be deducted from any monies due or to become due to the
Contractor.
e. All instructions and orders given by the Owner and the Project Managers shall be in writing. The Contractor shall not
carry out instructions given verbally, unless the circumstances are such that failure to carry out such instruction(s) would
endanger life or limb or Property.
f. The Contractor has the right to request variations to the Contract Works, and if such request is approved, then it shall
be issued as a Variation/Change Order by the Project Managers. Variations to the Contract Works shall not be allowed,
other than those issued or approved by the Owner and/or the Project Managers in writing.
g. When requesting a variation, the Contractor must state the reason for it and the time and cost effect of the proposed
variation. The request shall be submitted with due consideration of the timing of the work being carried out, and the
issuance of any revised drawings and specifications. When the variation/change order has effect in the contract time,
the Contractor shall submit together with its request an updated Project Schedule in Bar Chart and CPM Network Forms
showing the effects in the critical path of the Project Schedule.
h. If the request for the variation is received in good time and subsequently approved, then the Project Managers shall
assess the time and cost effects of the variation, and the Quantity based on the approved drawings and specifications.
24. EVALUATION OF VARIATIONS / CHANGE ORDERS
a. The unit rates in the Bill of Preliminaries and in the Bill of Quantities/Book Proposal Form “B” shall be the basis of
valuation of variations and/or change orders for additional and deductive items of work. Where works are not of a similar
item and character or not executed under similar conditions, the unit rates in the Bills of Quantities/Book Proposal Form
“B” shall be the basis of establishing the new rates and prices for the Change Order/Variation so far as may be
P a g e 12 | 25
reasonable, failing which, a fair valuation thereof shall be made by the Project Managers in consultation with the Owner
and its Consultants.
b. When in the opinion of the Project Managers, work cannot be fairly evaluated using sub-clause a) hereof, then the
valuation shall be carried out on a daywork basis at the rates submitted with the Bids, as modified and mutually agreed.
If rates are not so submitted then the net costs of labor, materials, and plant shall be applied plus an allowance of 15%
for overhead and profit. Provided that in any case daywork sheets, specifying the daily time spent upon the work
including the workmen’s names, profession/trade and the materials employed, shall be delivered for verification to the
Project Managers or the Project Managers’ authorized representative on a daily basis.
c. The value of all variations and/or change orders, when valued and agreed between the Owner, the Project Managers
and the Contractor, shall be included in monthly cost reports and the Contract Sum shall be adjusted accordingly. No
addition or deduction in the Advance Payment, if any, shall be made as a result of the valuation of variations.
d. Work on a time and materials cost basis shall not be carried out without the expressed written permission of the Project
Managers prior to the work being carried out. Failure of the Contractor to comply with this clause shall mean non-
payment of the work so carried out.
e. The Contractor shall submit to the Project Managers a written request to carry out work on a time and material basis at
least seven (7) calendar days prior to the commencement of the work. The Contractor must include in his request the
estimated man-hours to be expended and the approximate cost of materials and plant.
f. When extra work is approved for carrying out on a daywork basis, the Contractor shall submit daily, during the course
of execution of such work, to the Project Managers, his record of labor, materials and tools or equipment being used for
the work. No payment shall be made for days when the Project Managers does not receive records.
25. PRACTICAL COMPLETION/SUBSTANTIAL COMPLETION OR OWNER’S PARTIAL POSSESSION
a. Practical/Substantial Completion shall be deemed to have taken place on the date when, in the Project Managers’
evaluation and judgment, such has taken place and the Project Managers, so stating that Practical/Substantial
Completion has been reached, will issue a certificate.
b. Practical/Substantial Completion may have been attained when the Contract Works are complete to the stage where
the Owner can have beneficial occupancy of the Contract Works without major balance of works and where rectification
of any defects found during the Defects Liability Period, shall not cause undue disturbance to the occupants/users.
c. Within the timeframe of the Defects Liability Period specified in the Contract/Agreement, the Contractor shall make good
all defects, shrinkage, or other faults which have been identified on the date of or prior to the date of Practical/Substantial
Completion or have arisen during the Defects Liability Period, entirely at the Contractor’s own cost. The Contractor
shall comply also with any instructions of the Project Managers in relation to carrying out the rectification in a particular
order or within a certain time.
d. When in the opinion of the Project Managers, any defects, shrinkage or other faults which he may have required to be
made good under this clause shall have been made good on or before completion of the Defects Liability Period,
whichever comes later, the Project Managers shall issue Certificate of Final Inspection, Completion and Acceptance of
the Contract Works. The Contract shall be deemed to have been fulfilled by the Contractor on that date, which date
may exceed the Defects Liability Period stated in the Contract. Due to the Contractor’s fault, defects may arise in
rectified work, necessitating rectification work to go beyond the Defects Liability Period.
e. The Owner reserves the right to occupy any part of the Contract Works, prior to Practical/Substantial Completion,
providing such part is deemed to be practically complete and a certificate is issued by the Project Managers to that
effect. The Defects Liability Period shall be deemed to have commenced on the date of issuance of the Certificate of
Practical/Substantial Completion for the part of the Contract Works so occupied. The Contractor may reduce his
insurance required by the Contract by the value of the works so occupied. The Project Managers shall certify the value
of any part occupied by the Owner.
P a g e 13 | 25
f. The occupation of any portion of the Contract Works by the Owner shall be deemed only to be the actual portion
involved, and shall also include the building services (including but not limited to mechanical/air-conditioning, electrical,
fire protection, elevator services, building management, security and communication systems and other low-voltage
building auxiliary systems), but the Contractor shall afford the Owner the full use of all such services and systems.
Practical/Substantial completion of these services and systems shall not occur until the entire project services are
completed, started-up, tested and commissioned/balanced to the entire satisfaction of the Project Managers and in
accordance with the Contract Documents.
g. The Contractor may apply for inspection of the portions of the Contract Works, which are distinct and separable from
the remainder of the Contract Works. If the Project Managers agrees, then such area or areas shall be closed off after
rectification of defects and shall be inaccessible until the Date of Practical/Substantial Completion, save where the
Owner and/or the Project Managers request entry. Closing-off, temporary locksets, doors and provision of safety and
security personnel, as necessary, shall be provided by the Contractor at his own cost until the Final Inspection,
Completion and Acceptance of the Contract Works.
h. The Project Managers reserves the right to re-inspect the area or areas closed-off prior to the Date of
Practical/Substantial and Final Completion and any defects found shall be made good to his and the Owner entire
satisfaction.
i. The Contractor shall not receive any reduction of his responsibility for the area or areas so closed-off.
26. LIQUIDATED AND ASCERTAINED DAMAGES
a. If and when the Contractor refuses or fails to satisfactorily complete the Contract Work within the specified Contract
Time for the Practical/Substantial Completion of the Project, plus any time extension duly granted and is hereby in
default under the contract, the Contractor shall pay Owner for Liquidated Damages, not by way of penalty, an amount
equivalent to one-tenth of one percent of the total contract amount for each day of delay, until the work is completed
and accepted or taken over by Owner.
b. To be entitled to such liquidated damages, the Owner is not required to prove that it has incurred actual damages and
may deduct the amount of damages from any motion due or which may become due from the Contractor under the
Contract and/or collect such liquidated damages from the retention money or other securities posted by the Contractor
at its discretion.
c. In case the delay in the progress equivalent to thirty (30) calendar days or ten percent (10%) of the specified contract
time plus any time extension duly granted to the contractor, whichever is less, the Owner may forfeit the Contractor’s
Performance Security/Bond and may take over the works by awarding the Project/Contract to another qualified
contractor and all other administrative and logistic costs that the Owner shall incur due to the takeover without prejudice
to the other rights of the Owner as stipulated elsewhere in the Contract Documents.
d. The Owner shall deduct such amount of Liquidated and Ascertained Damages from any monies due or to become due
to the Contractor up to ten percent (10%) of the total contract price including change orders and extra work orders. The
deduction of such damages shall not relieve the Contractor from his obligations to complete the Contract Works, or from
any other obligation and/or liability under the Contract. The Owner does not have to prove that he has actually incurred
such damages, to be able to deduct the same.
e. It is further agreed and understood that the right of the Owner to collect liquidated damages shall be without prejudice
to its rights and remedies against the Contractor as provided for under the Contract Documents or to which the Owner
may entitled to under law or in equity. To give full force and effect to the foregoing, the Contractor hereby, without
necessity of any further act and deed, authorizes the Owner to deduct any amount that may be due or may become
due to the Contractor in accordance with the Contract Documents, and/or to collect such amounts from the performance
security/bond and other bonds to be submitted by the Contractor in accordance with the Contract Documents.
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27. ADVANCE PAYMENT
a. The Owner shall, upon written request of the contractor, which shall be submitted as a contract document, make an
advance payment to the contractor in amount equal to twenty percent (20%) of the total contract price, to be paid in
lump sum according to the schedule of payments required by the Bid documents.
b. The advance payment shall be made only upon the submission to and acceptance by Owner/Developer of the following
securities/bonds:
i. An advanced payment guarantee bond, callable upon demand, equivalent to the amount of the
advanced payment (20% of the contract price or as specified by the Owner), issued by a surety or
insurance company acceptable to the Owner to guarantee the repayment of the Advanced
Payment;
ii. Performance Security/Bond in the form and amount stipulated in the Contract/ Agreement;
c. The advanced payment shall be repaid by the Contractor by deducting twenty percent (20%) from his periodic progress
payments until the full amount of the advance payment shall have been fully liquidated or paid.
d. The contractor may reduce his guarantee instrument by the amounts refunded by the Monthly Recoupment in the
advanced payment.
28. NO CONTRACT PRICE ADJUSTMENT/ESCALATION
There shall be no escalation or adjustments in the prices of labor, materials, equipment and other work items for any
reason whatsoever.
29. EXTENSION OF TIME
a. In the event of a delay occurring, which will prevent the Contractor from completing within the Contract Period or any
extended period or meeting any agreed milestones, then the Contractor shall immediately notify the Project Managers
as soon as possible, but not later than five (5) calendar days after the cause or reason of the delay, provide all supporting
documentation substantiating such delay and extra time required particularly the updated Project Schedule clearly
showing the effects of the occurrence on the activities falling within the Critical Path. The Contractor must also provide
full details of the effect on the progress of the Contract Works, the effect on the other trades or activities, including the
works of subcontractors as shown by a CPM Network Schedule, and the steps to be taken by the Contractor to comply
with the obligations to prevent or mitigate the delay. Any delay attributable for an extension of time shall be taken into
account when the Project Managers are assessing an extension of time request.
b. If the Project Managers consider that the completion of the Contract Works is likely to be, or has been delayed beyond
the Date for Completion stated in the Contract/Agreement, or beyond any extended time previously awarded, due to:
b.1 Force Majeure or Acts of God/Nature directly affecting the Site and the Contract Works;
b.2 issuance by the Project Managers of instructions authorizing a Variation/Change Order which has a direct
effect on the activities falling within the Critical Path of the Project Schedule;
b.3 the failure by the Contractor to receive in due time all the necessary instructions, drawings, details or levels
from the Design Consultants and/or the Project Managers which were specifically applied for in writing by the
Contractor on a date which having regard to the then date of Practical/Substantial Completion was neither
unreasonably distant from nor unreasonably close to the date on which it was necessary for the Contractor to
receive the same; provided that, the delay was not due to any delay by the Contractor in providing information
or working drawings as required under these Conditions;
b.4 delay on the part of artists, tradesmen, or other contractors directly engaged by the Owner in executing work
not forming part of the Contract Works;
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b.5 opening up for inspection of any work covered up or the testing of any work, materials or goods in accordance
with these Conditions, unless the inspection or test showed that the work, materials or goods were not in
accordance with the Contract Documents, or was as a result of the Contractor covering up work before giving
notice for inspection;
b.6 the hoisting of Typhoon Signal no. 3 or greater by the Philippine Geological and Astronomical Administration
(PAGASA) with heavy rains.
b.7 the compliance with the provisions of Clause on Antiques, Fossils and Objects of Value, Clause 41 of these
General Conditions;
b.8 any delay or act of prevention on the part of the Owner/Developer;
then the Project Managers shall assess the length of the delay beyond the date or time aforesaid and award in writing
a fair and reasonable extension of time for the completion of the Contract Works to which the Contractor’s notice relates,
taking into account any prior, or existing delay of the Contractor and basing the award on the effect of the delay on the
activities falling within the critical path indicated in the latest submitted Master Project Schedule which has been
approved by the Owner and/or Project Managers.
c. The Contractor shall, at all times and in all circumstances, use constant due diligence and efficiency to prevent delay
and shall, to the best of his ability, mitigate any and all delays whether the same be attributable to him or not.
d. The Contractor shall submit with his notification under sub-clause (a) herein, the measures, means and methods he
proposes to adopt to mitigate delays.
e. The Contractor shall at all time foresee his requirements and must notify the Project Managers in due time when he
requires drawings, details, instructions, or any other matter necessary to complete the Contract Works. No extension
of time shall be considered if the Contractor fails to observe this sub-clause.
f. The Project Managers reserves the right to delay the possession of the Site or portion thereof, or the postponement of
any part of the Contract Works, without compensation to the Contractor except the express provisions for extension of
time.
g. The Contractor’s compliance with the requirements of this clause is a condition precedent to its entitlement to an
extension of time.
30. LOSS AND EXPENSE CAUSED BY DELAY
a. If in the opinion of the Contractor, he suffers direct loss and/or expense arising from any of the following;
a.1 issuance by the Project Managers of instructions authorizing a Variation/Change Order approved by the
Owner;
a.2 the failure by the Contractor to receive in due time all the necessary instructions, drawings, details or levels
from the Project Managers which were specifically applied for in writing by the Contractor on a date which
having regard to the then Date for Completion was neither unreasonably distant from nor unreasonably close
to the date on which it was necessary for the Contractor to receive the same; provided that, the delay was not
due to any delay by the Contractor in providing information or working drawings as required under these
General Conditions;
a.3 delay on the part of the other tradesmen, or other contractors engaged by the Owner/Developer in executing
work not forming part of the Contract Works;
a.4 opening up for inspection of any work covered up or the testing of any work, materials or goods in accordance
with these General Conditions, unless the inspection or test showed that the work, materials or goods were
P a g e 16 | 25
not in accordance with the Contract Documents, or was as a result of the Contractor covering up work before
giving notice for inspection;
a.5 any delay or prevention on the part of the Owner/Developer;
then, within seven (7) calendar days of such occurrence, he shall notify the Project Managers of same and provide fully
substantiated documentation within seven (7) calendar days of notification to substantiate his direct loss and/or
expense. No consideration of any claim under this heading shall be entertained, if not received within the prescribed
period of seven (7) calendar days.
b. If the written application is made within the time specified, then the Project Managers shall ascertain the value of any
direct loss and/or expense suffered by the Contractor, and when such is valued and agreed, the value shall be included
in the interim valuations and the Contract Sum shall be adjusted accordingly. No addition to the Advanced Payment
will be made as a result.
c. The provision of the timely submission of the notification of intention to claim and the fully detailed and substantiated
build-up of such loss and/or expense is a prerequisite for any claim under this heading being accepted for consideration.
Notification only of a future intention to submit a claim under this heading will not be accepted as complying with the
requirement of this clause.
d. Loss and expense shall not include loss of opportunity costs, profit or loss of profit or financing costs.
31. FORCE MAJEURE AND SPECIAL RISKS
a. The Contractor shall not be responsible or liable for any delay or failure in the fulfillment of this Contract, directly or
indirectly due to act of nature like typhoons with Signal No. 3, flood, volcanic eruptions, earthquakes, lightning, and
special risks such as war hostilities (whether declared or not), invasion, insurrection, civil disobedience or usurped
power in the Philippines, epidemics and other calamities as determined by the Government (hereinafter
comprehensively referred to as “Force Majeure”).
b. The Contractor shall report in writing to the Project Managers within five (5) calendar days of the onset of Force Majeure
stating the reason therefore and at the termination of such Force Majeure.
c. In case of such Force Majeure, the Contract may be amended or terminated, wholly of partially, by mutual written
agreement of both parties, subject to the approval of the Owner upon the recommendation of the Project Managers.
d. In case of Force Majeure as described, the Contractor shall, after mutual agreement with the Owner and/or Project
Managers, be entitled to suspend the execution of the Contract Works for the period that such Force Majeure will last.
During this suspension period, the Contractor shall properly protect and secure the Contract Works at no cost to the
Owner. If such protection and securing of the Contract Works are deemed impracticable, the matter shall be notified
by the Contractor to the Project Managers in writing, stating the reason and the Project Managers shall issue instructions
accordingly, and the Contractor shall comply forthwith with said instructions.
e. If such suspension lasts for a period exceeding twelve (12) months, either of the parties shall be entitled to terminate
the Contract with respect to the remaining work and shall give notice of termination by registered mail or personal
delivery to the other party.
f. In case of such termination, the Owner shall pay to the Contractor the value of the permanently installed materials on
Site and the cost of the Contract Works executed prior to the date of termination.
g. If the Contract Works or any part thereof, suffers any damages due to Force Majeure, then the Project Managers shall
issue instructions as to the disposal of debris, or damaged works and the reinstatement or making good of work. The
Project Managers shall assess and award a fair and reasonable extension of time for the carrying out of Instructions
under this sub-clause.
P a g e 17 | 25
h. The Contractor shall carry out such instruction issued under sub-clause (g) hereof, regardless of any notice of
termination having been issued.
i. The Contractor shall not be held liable for damages or destruction of the works or portions of the works or other property,
whether owned by the Government or by third parties, or for injury or loss of life caused directly by Special Risks
enumerated in sub-clause (a) hereof.
32. SPECIALIST/TRADE CONTRACTORS
The Owner reserves the right to directly employ Specialist or Trade Contractors, artists, or tradesmen, to carry out work not
forming part of this Contract. The Contractor shall afford such persons the full facilities of the Site and access to the Contract
Works, free of charge.
33. PROGRESS BILLINGS
a. At the beginning of each month, or such other date (2) within the month as is otherwise agreed or stipulated in the
Contract/Agreement, the Contractor shall submit monthly progress billing to the Project Managers for appropriate
evaluation of accomplishments with the following attached documents:
i. Request for Payment by the Contractor

ii. Affidavit or sworn statement by the contractor that it has paid all its subcontractors and suppliers for all its
materials and labor in the execution of the works being billed.
iii. Detailed accomplishment report duly checked and agreed upon by and between the Contractor and the
Project Manager/Quantity Surveyor
iv. Progress Photographs of the areas, elements and structures being billed.
v. Progress As-Built drawings duly checked and reviewed by the Project Managers
b. The Project Managers shall check the Contractor’s progress billings and recommend the resulting evaluation so
expeditiously that they can certify for payment the evaluated Accomplishment Reports to the Owner within fifteen (15)
calendar days of receipt of them, subject to the Contractor’s providing sufficient information as requested by the Project
Managers of all information requested. Such information shall not be vexatiously or unreasonably requested.
c. The Owner shall pay the value certified or recommended for payment in the Accomplishment Reports duly evaluated
and issued by the Project Managers to the Contractor within fifteen (15) calendar days subject to the application of
the refund or recoupment on the Advanced Payment stated in the Contract/Agreement and in these General Conditions
of Contract.
d. The Progress Billings based on evaluated Accomplishment Reports shall include the value of work properly executed,
the value of agreed variations to the extent that they have been completed, approved loss and expense claims.
e. The value of work accomplished as evaluated by the Project Managers shall be reduced by the percentage of retention
stated in the Contract/Agreement and by any sums due to the Owner by virtue of the provisions of the said
Contract/Agreement.
f. Payment for work, materials, or goods in Progress Billings or Accomplishment Reports duly evaluated by the Project
Managers shall not be construed as proof that the same is acceptable to the Project Managers and the Owner or in
accordance with the Contract/Agreement.
34. MATERIALS ON SITE
The Contractor shall be paid only for installed/erected materials on Site. If in the opinion of the Project Managers, materials
are prematurely delivered to site, then payment for same shall not occur until the time said materials should have reasonably
been delivered and properly installed.
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35. RETENTION
a. The amount of retention money retained by the Owner from the Progress Billings shall not exceed the percentage so
stated, and shall be held in the account under the name of the Owner only, with any accrued interest to be allocated
only to the Owner. The maximum amount that the Owner may hold as retention, the Limit of Retention, is also indicated
in Contract/Agreement.
b. Such Retention shall be based on the total amount due to the contractor prior to any deduction and shall be retained
from every progress billing/payment until the Project is finally completed.
c. All of the retention money retained by the Owner without accrued interest shall be paid to the Contractor in the Final
Billing following the issuance of the Certificate of Final Inspection, Completion and Acceptance; provided that the
Contractor has submitted the required Guarantee Bond and any other requirements stated within the contract
documents which consist the Post-Construction Submittal.
36. FINAL ACCOUNT
a. Within the Post-Construction Period as given in Contract/Agreement, the Project Managers shall issue and recommend
the Final Valuation of the Contract Works, and the Project Managers shall certify any amount due to the Contractor from
the Owner, or due to the Owner from the Contractor, as the case may be, notwithstanding any item(s) which may have
previously been referred to Arbitration. This recommendation shall be called the Certificate of Final Inspection,
Completion and Acceptance.
b. If the dispute has not been referred to Arbitration prior to the issue of the Certificate of Final Inspection, Completion &
Acceptance, or within fifteen (15) days of its issue, the Certificate of Final Inspection, Completion & Acceptance shall
be absolute proof that all things have been accounted for and the Contractor is entirely satisfied as to the contents and
value of the Final Certificate.
c. Any sum or sums certified in the Final Certificate that is in error, can be corrected prior to payment, or recovered from
the Contractor by the Owner, or from the Owner by the Contractor, as the case may be, if such error is due to fraud,
dishonesty, fraudulent concealment, any defects or omission in the Contract Works not discovered during the course of
the Contract Works, any inclusion or exclusion of any work, materials, goods or figure in any computation or any
arithmetical error in any computation.
37. INSURANCES
a. Without limiting his obligations and responsibilities under the Contract/Agreement, the Owner shall effect and maintain
the following insurances;
a.1 Contractor’s All-Risk and Third Party Liability Insurance: The Contractor shall secure and deliver this bond in
an amount equivalent to the Total Contract Price for the purpose of insuring against loss and damage caused
by fire, storm, typhoon, tempest, lightning, floods, earthquake, aircraft or anything dropped therefrom, aerial
objects, riots and civil commotion for at least the full reinstatement value thereof of all work executed and all
unfixed materials and goods intended for, delivered to, and placed on or adjacent to the Works, but excluding
temporary building, plant, tools and equipment owned or hired by the Owner and its Consultants, the
Contractor or any sub-contractor, and shall keep such work, materials and goods insured until the Works are
completed and accepted by the Owner/Developer. The insurance coverage shall include a Third Party Liability
coverage of at least PESOS: FIVE HUNDRED THOUSAND (PhP500,000.00), single limit, for death, bodily
injury and property damages, but unlimited occurrence. The all risk insurance policy shall remain in force until
the Works are satisfactorily completed and accepted by the Owner/Developer.
a.2 Comprehensive General Liability Insurance covering the full amount of the Contract.
a.3 Any other insurance required by law, said law being enacted prior to or after the bidding of the Project.
P a g e 19 | 25
All insurances acquired by the Owner for the Project shall include the Contractor and its sub-contractors and the Owner,
its representatives and all its Consultants as insured parties.
b. The Contractor shall be responsible for the payment of all premiums and for keeping all insurances maintained. With
the exception of the Public Liability Insurance, which shall be valid until the Certificate of Final Inspection, Completion
& Acceptance is issued; all policies should be maintained until the issuance of the Certificate of Final Inspection,
Completion and Acceptance.
c. Should the Contractor fail to maintain the required insurances, the Owner may insure against those risks, which have
not been insured by the Contractor. In this instance the Owner may deduct from any monies due to or to become due
to the Contractor the cost of said insurance.
d. All insurances shall be with the insurers approved by the Owner and duly accredited by the Office of the Insurance
Commission and the premium receipts and policies must be deposited with the Owner.
38. BONDS AND GUARANTEES
a. Within Fifteen (15) days upon the issuance of the Notice of Award/Proceed, the Contractor shall obtain an Advanced
Payment Guarantee Security/Bond to guarantee to repayment of the Advanced Payment in the form of a guarantee
payment bond, callable upon demand, of amount equivalent to the advanced payment, issued by an insurance company
duly licensed by the Office of the Insurance Commissioner and acceptable to the Owner.
b. Within Fifteen (15) days upon the issuance of the Notice of Award, the Contractor shall obtain and pay for a Performance
Security/Bond in the form of a surety/guarantee bond, callable upon demand, equivalent to TWENTY PERCENT (20%)
of the Total Contract Amount secured from a reputable insurance/bonding company acceptable to the Owner, to be
jointly and severally bound with the Contractor to the Owner, for the due, proper and faithful performance of the Contract
valid for the entire duration of the Contract Period plus six (6) months. The insurance/bonding firm and the Contractor
shall be released from their obligations upon the issuance of a Certificate of Final Inspection, Completion and
Acceptance of the Contract Works.
c. In lieu of the Owner retaining the retention money after Practical/Substantial Completion, the Contractor may, upon
approval of the Owner, submit to the Owner a Guarantee Bond, callable upon demand and valid until the completion of
the Project plus sixty (60) days, to guarantee the rectification of defects in the Contract Works during the defects liability
period. This bond shall be submitted by the Contractor to effect the release of the retention money and shall be extended
as necessary until defects are rectified, or at the request of the Project Managers until the issuance of the Certificate of
Final Inspection, Completion and Acceptance by the Owner.
d. The Contractor shall furnish the Owner a Guarantee Bond, callable upon demand, issued by a surety or insurance
company duly accredited by the Office of the Insurance Commissioner and acceptable to the Owner/Developer in the
sum equivalent to TEN PERCENT (10%) of the total Contract Amount effective for One (1) year reckoned from the date
of the issuance of the Certificate of Final Inspection, Completion & Acceptance by the Owner.
e. In the event of any default in the performance of the Contract Works by the Contractor, whether such default occurs by
itself or in combination with the default of the Subcontractor, the Owner shall have the right to seek satisfaction from the
bonds submitted by the Contractor.
f. All securities and bonds shall be with surety and insurance companies duly approved by the Owner/Developer and
accredited by the Office of the Insurance Commissioner.
39. ANTIQUES, FOSSILS AND OBJECTS OF VALUE
Should the Contractor find, or uncover, or excavate, any antiques, fossils or other things and objects of historical interest or
of financial worth, he shall not disturb the object, and use all care to preserve it, and immediately notify the Project Managers
of said find, and request for directions. When such find or discovery occurs, the object shall, either immediately or
subsequently after proper excavation, be handed over to the Owner.
P a g e 20 | 25
40. EXPLOSIVES AND FIREARMS
a. The Contractor is informed that explosives shall not be allowed to be used on the Site. Firearms are not allowed on the
Site, save for those carried by authorized security guards.
b. Any person found carrying a firearm, other than those so authorized to carry a firearm or any deadly weapon or toxic
substance, shall be instantly dismissed, and shall not be allowed to enter the Site thereafter.
41. TERMINATION OF CONTRACT – GENERAL
Either party is entitled to request for the suspension or termination of this Contract in case the other party should fail to
comply with his Contractual obligations, and would continue to so fail for a reasonable period after given notice of the failure.
Such facility, however, shall not be executed when the failure to comply is not of major importance, considering the interest
of the Contract Works.
42. TERMINATION OF CONTRACT BY OWNER
a. The Owner shall have the right to terminate the Contract, if the Contractor fails to perform the Contract with due diligence
and expedition or refuse or neglect to comply with any reasonable orders or instructions of the Project Managers in
respect of the Contract or contravene any provision of the Contract.
b. The Owner shall notify the Contractor to make good the said failure, neglect or contravention within seven (7) calendar
days of the occurrence of same and the Contractor must comply with this notice within seven (7) calendar days of
receipt of said notice. Should the Contractor fail to comply with the notice within the prescribed period, the Owner shall
be at liberty to terminate the Contract, giving written notice of termination to the Contractor. In this event the Owner
shall be entitled to retain and apply the balance, which may be otherwise due to the Contractor, towards the payment
of the cost to complete the Contract Works.
c. Without prejudice to any other rights and remedies which the Owner may possess if the Contractor shall make default
in any one or more of the following respects, that is to say:
c.1 If he, without reasonable cause, suspends the carrying out of the Contract Works or part of the Contract Works
before completion thereof, or
c.2 If he fails to proceed regularly and diligently with the Contract Works, or
c.3 If he fails to provide the necessary bonds and guarantees.
then the Project Managers may give to the Contractor a notice, by registered post or recorded delivery, specifying the
default, and if the Contractor either continues such default for seven (7) calendar days after receipt of such notice, or at
any time thereafter repeat such default (whether previously repeated or not), then the Owner without prejudice to any
other rights or remedies, may within fifteen (15) calendar days after such continuance determine the engagement of the
Contractor under the Contract/Agreement.
d. In the event of the Contractor becoming bankrupt or making a composition or arrangement with his creditors or having
winding-up order made or (except for purposes of solvent reconstruction) a resolution for voluntary winding-up passed
or a receiver or manager of his business or undertaking duly appointed, or possession taken, by or on behalf of the
holders of any debentures secured by a floating charge, of any property comprised in or subject to the floating charge,
the engagement of the Contractor under this Contract shall be forthwith automatically determined, unless viewed by the
Owner as an attempt by the Contractor to dispose of any liabilities or obligations under the Contract, but the said
engagement may be reinstated and continued if the Owner and the Contractor, his trustee in bankruptcy, liquidator,
receiver or manager, as the case may be, shall so agree.
e. In the event of the engagement of the Contractor being determined as aforesaid and so long as it has not been reinstated
and continued, the following shall be the respective rights and duties of the Owner and the Contractor.
P a g e 21 | 25
e.1 The Owner may engage and pay other persons or groups to carry out and complete the Contract Works and
he or they may enter upon the Contract Works and use all temporary buildings, plant, tools, equipment,
materials and goods intended for, or delivered to the Site, and may purchase all materials and goods
necessary for carrying out and completing the Contract Works.
e.2 The Contractor shall [except where the determination occurs by reason of the bankruptcy of the Contractor or
of him having a winding-up order made or (except for the purposes of a solvent reconstruction) a resolution
for voluntary winding-up passed], if so required by the Project Managers, within ten (10) calendar days of the
date of determination, assign to the Owner or to any subsequent Contractor appointed by the Owner to
complete the Contract Works, without payment, the benefit of any agreement for the supply of materials or
goods and/or for the execution of any works for the purposes of this Contract/Agreement but on the same
terms that a supplier or Subcontractor for any materials or goods delivered or works executed for the purposes
of this Contract, (whether before or after the date of determination) in so far as the price thereof has not
already been paid by the Contractor.
e.3 The Contractor shall, as and when required in writing by the Project Managers so to do (but not before),
remove from the Contract Works any temporary buildings, plant, tools, equipment, materials, and goods
belonging to or hired by him. If within thirty (30) days after any such requirement has been made, the
Contractor has not complied therewith, then the Owner may (but without being responsible for any loss or
damage) remove and sell any such property of the Contractor, holding the proceeds, less all costs incurred,
to the credit of the Contractor.
e.4 The Contractor shall allow or pay to the Owner in the manner hereinafter appearing, the amount of any direct
loss and/or damage caused to the Owner by the determination. Until after completion of the Contract Works
under paragraph (a) of this clause, the Owner shall not be bound by any provision of this Contract/Agreement
to make any further payment to the Contractor, but upon such completion and verification within a reasonable
time of the accounts therefor, the Project Managers with the assistance of the Task Force shall ascertain and
certify the amount of expenses properly incurred by the Owner and the amount of any direct loss and/or
damage caused to the Owner by the determination and, if such amounts when added to the monies paid to
the Contractor before the date of determination exceed the total amount which would have been payable on
due completion in accordance with this Contract, the difference shall be a debt payable to the Owner by the
Contractor.
f. The Owner may determine the engagement of the Contractor under this Contract/Agreement at any time at the option
of the Owner, by giving the Contractor a minimum of fifteen (15) calendar days’ written notice of his intention to
determine the Contract. Upon such determination, then without prejudice to the accrued rights or remedies of either
party or any liability of the classes mentioned herein before which may accrue either before the Contractor or any
Subcontractor shall have materials or goods or by reason of his or their so removing the same, the respective rights
and liabilities of the Contractor and the Owner shall be as follows:
f.1 The Contractor shall, with all reasonable dispatch and in such a manner and with such precautions as will
prevent injury, death or damage of the classes in respect of which before the date of determination he was
liable to indemnify the Owner, remove from the Site all his temporary buildings, plant, tools, equipment,
materials, and goods and shall give facilities for his Subcontractors to do the same, but subject always to the
provisions of this clause.
f.2 After taking into account amounts previously paid under this Contract/Agreement, the Contractor shall be paid
by the Owner:
f.2.1 The total value of work completed at the date of determination.
f.2.2 Any sum ascertained in respect of direct loss and/or expense under Clause 32 of these General
Conditions (whether ascertained before or after the date of determination).
g. Provided always that, against any payments due from the Owner under this subclause, the Owner shall be entitled to
be credited with any outstanding balance due from the Contractor for the Advanced Payment, if there is any, and any
P a g e 22 | 25
other sums which at the date of such determination were recoverable by the Owner from the Contractor under these
General Conditions.
43. TERMINATION OF CONTRACT BY CONTRACTOR
a. The Contractor has the right to terminate the Contract/Agreement, without prejudice to any rights and remedies, which
the Contractor may possess if:
a.1 The Owner does not pay to the Contractor the amount due on any certificate within the date stated in Contract
Agreement, and continues such default for forty five (45) calendar days after receipt by registered post or
recorded delivery of a notice from the Contractor stating that notice of determination under this General
Condition will be served if payment is not made within forty five (45) calendar days from receipt thereof;
a.2 The Owner wrongfully interferes with or obstructs the issue of any certificate due under this Contract and
continues such default for forty five (45) calendar days after receipt by registered post or recorded delivery of
a notice from the Contractor specifying the default;
a.3 The carrying out of the whole or substantially the whole of the uncompleted Contract Works (other than the
execution of the work required under Clause 25: Variation Orders, of these General Conditions) is suspended
for a continuous period of the length stated in these General Conditions by reason of typhoon, flood, fire,
lightning, seismic disturbance, explosion, riot, civil commotion, and/or civil disorder; or
a.4 The Owner passes a resolution for voluntary winding up, then the Contractor may, thereupon by notice by
registered post or recorded delivery to the Owner or Project Managers, forthwith determine this Contract;
provided that such notice shall not be given unreasonably or vexatiously;
a.5 Provided that Paragraph (a.3) of this sub-clause shall not be applicable if the suspension arises out of the
default, negligence or act of the Contractor.
b. Upon such determination, then without prejudice to the accrued rights or remedies of either party or to any liability of
the classes mentioned herein before which may accrue either the Contractor or any Subcontractor shall have removed
his temporary buildings, plant, tools, equipment, materials or goods or by reason of his or their so removing the same,
the respective rights and liabilities of the Contractor and the Owner shall be as follows, that is to say:
b.1 The Contractor shall, with all reasonable dispatch and in such manner and with such precautions as will
prevent injury, death or damage of the classes in respect of which before the date of determination he was
liable to indemnify the Owner, remove from the Site all his temporary buildings, plant, tools, equipment,
materials and goods and shall give facilities for his subcontractors to do the same.
b.2 After taking into account amounts previously paid under this Contract, the Contractor shall be paid by the
Owner;
b.2.1 The total value of work completed at the date of determination.
b.2.2 Any sum ascertained in respect of direct loss and/or expense under Clause 32 of these General
Conditions (whether ascertained before or after the date of determination).
b.3 Provided always that against any payments due from the Owner under this sub-clause, the Owner shall be
entitled to be credited with any outstanding balance due from the Contractor for any other sums which at the
date of such determination were recoverable by the Owner from the Contractor under these General
Conditions.
44. OWNER/DEVELOPER’S RIGHT TO TAKE OVER THE CONTRACT WORKS
a. If, any time within the Contract Period, the Contractor incurs a slippage of ten (10) calendar days or fifteen percent
(15%), whichever is less, from the progress indicated in his Project Schedule, the Contractor is required to submit to
P a g e 23 | 25
the Project Managers within three (3) working days a confirmed catch-up schedule, including the required resources to
perform the catch-up schedule, to get over the delays or slippage incurred. The intention of this clause is not to extend
the date for Practical/Substantial and/or Final Completion but to be able to perform and complete the balance of Contract
Works within the Contract Period.
b. Should the Contractor fail to perform in accordance with the catch-up schedule within five (5) calendar days after the
Contractor was required by the Project Managers to comply with the catch-up schedule, including the required resources
to perform the catch-up schedule, to get over the delays/slippage incurred, the Owner has the right to take the following
courses of actions:
b.1 Take over certain portion of the Contract Works as deemed necessary.
b.2 Stop the Contract Works by giving Notice to the Contractor and take over the remaining Contract Works. The
take-over of the Contract Works by the Owner may be performed either by employing another contractor to
complete the Contract Works or employing in-house organizations to undertake and complete the balance of
the Contract Works. Resources of the Contractor shall be under the disposition of the Owner for use in the
project, or
b.3 Terminate the Contract in accordance with Clauses 43 and 44 of these General Conditions.
c. All costs incurred by the Owner in undertaking any of the above courses of action shall be for the sole account of the
Contractor.
45. SETTLEMENT OF DISPUTES
a. Any dispute which arises out of the Contract, between the Owner and the Contractor, whether the dispute arises from
any action(s) of those employed by the Owner, including but not limited to the Project Managers, Architects, Design
Professionals and Task Force, shall by all means possible be settled amicably by the parties thereto.
b. Failing an amicable settlement of any dispute, the aggrieved party shall submit the dispute to the Construction Industry
Arbitration Commission (CIAC) for resolution under the Commission’s Rules of Conciliation and Arbitration. Provided,
however, such dispute(s) shall not be referred to the Commission until after the issuance of the Certificate of
Practical/Substantial Completion of the Contract Works or termination of the Contract by either party.
c. The Contractor shall continue to proceed with the Contract Works with all due diligence, including any disputed portion
thereof, without prejudice to the rights of both parties in any arbitration proceedings.
d. The Arbitrator(s)’ decision will be final and binding on both parties, and neither has recourse to litigation, save for the
purposes of implementing the decision.
e. Any Arbitration or Legal Proceedings shall take place in the courts of Metro Manila, Philippines.
46. WARRANTY AGAINST GIVING BENEFITS TO EMPLOYEES AND OFFICIALS AND OTHER CONSULTANTS OF THE
OWNER:
The Contractor warrants that it has not given or has not promised to give any trade commissions, discounts, allowances,
money, gifts, other indirect payments or any other considerations or has in any way exercised influence on any employee or
official who is directly or indirectly involved in the evaluation and/or award of contracts or project execution. Any violation of
this warranty shall be sufficient grounds for cancellation of the contract/agreement, without prejudice to filing court charges
against the Contractor and any employee or official of the Owner and its agents and consultants for violation of this warranty.
47. MISCELLANEOUS CONDITIONS
a. Words importing the singular also include the plural and vice-versa where the context requires.
P a g e 24 | 25
b. All references herein to clauses are references to clauses numbered in these General Conditions of Contract and not
to those in any other document forming part of the Contract unless otherwise stated.
c. Whenever the expressions “shall/will advise,” “shall/will inform,” “shall/will notify” and the like appear in the contract
documents, it is understood that the cited communication shall be in writing.
d. The word “cost” when used in these General Conditions of Contract shall be deemed to include all respective direct and
indirect costs and overhead costs whether on or off the Site except where the contrary is expressly stated.
e. The terms “furnish” or “supply” or “provide;” “erect” or “install” or “place” or “apply” “furnish and erect” or “furnish and
install” or “furnish and place” or the like, shall include all required work and expenses for the applicable contract item
including supervision, labor, materials, transport, samples, tests, overhead, profit, fees and other changes.
f. When the terms “as approved,” “subject to approval,” “to the satisfaction,” “as directed,” “where directed,” “as
determined,” “as designated,” and the like are used without reference to the person, the approval, direction,
determination, or action is implied to be that of the Consultant, Project Managers or the Owner.
g. The terms “plant” or “construction plant” shall mean the Contractor’s temporary construction facilities and other support
facilities required in the construction of the work.
h. Non-enforceability of any provision of the Contract Documents shall not affect enforceability of any other provision
therein, unless the latter is indispensably or inextricably related to the invalid provision. The said non-enforceability
shall be corrected by written agreement of the parties hereto.
i. No employer-employee relationship exists between the Owner and the Contractor’s workers or the workers of the
Contractor’s subcontractors and suppliers. The Contractor shall bear full responsibility for complying with the required
labor laws with respect to its employees working on the project. All provisions required by statutory laws for labor, tax
and others are to be strictly followed. The Owner reserves the right to require the Contractor to show proof of compliance
with such laws.
j. The waiver of any breach, or failure to enforce any of the conditions or other provisions of this Contract at any time shall
not in any way limit or waive the Owner’s right thereafter to enforce strict compliance with every condition or provision
hereof.
k. The use of headings and subheadings in these General Conditions shall not be used for interpreting the construction of
the Contract Documents in any way, or limit, modify or increase the responsibilities, obligations, rights and benefits of
the parties or their representatives under the Contract Documents.
Prepared by:
PRIME MANAGERS INC

Project Managers & Quantity Surveyors
P a g e 25 | 25

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GENERAL CONDITIONS OF CONTRACT

Project : FRANSSEN RESIDENCE

CONTRACT DEFINITION OF TERMS

Contract Works - mean the Building, Structure, Building Elements or Services,

Contractor - means the construction firm or company duly organized and

Day - means a calendar day. All references to days are deemed to

Owner/Developer or Owner - means IVO FRANSSEN or his representatives

Project - means the FRANSSEN RESIDENCE located at Maddela,

Specifications - mean the bid and contract technical specifications of the

INTENT OF CONTRACT DOCUMENTS:

2. LANGUAGE AND UNIT SYSTEM

3. AUTHORIZED REPRESENTATIVE AND COMMUNICATIONS

4. BID DOCUMENT NO. 08: BILLS OF QUANTITIES/BOOK PROPOSAL FORM “B”

6. CONTRACTOR’S RESPONSIBILITIES, RISK, SUBMITTALS AND OBLIGATIONS

8. CONTRACTOR’S RISK AND RESPONSIBILITY

9. FAMILIARITY WITH SITE AND CONTRACT WORKS

10. SITE INFORMATION

11. PROVISION AND PAYMENT BY THE CONTRACTOR

12. MATERIALS AND WORKMANSHIP

13. INSTALLATION PROCEDURES

15. CONTRACTOR’S EMPLOYEES

16. PATENT RIGHTS, ROYALTIES AND INDEMNITY

17. TROPICAL SERVICEABILITY

18. SETTING OUT

19. WORKS TO BE CONCEALED

21. NATIONAL GOVERNMENT AND MUNICIPAL NOTICES, PERMITS & CLEARANCES

23. VARIATIONS/CHANGE ORDERS

24. EVALUATION OF VARIATIONS / CHANGE ORDERS

25. PRACTICAL COMPLETION/SUBSTANTIAL COMPLETION OR OWNER’S PARTIAL POSSESSION

26. LIQUIDATED AND ASCERTAINED DAMAGES

28. NO CONTRACT PRICE ADJUSTMENT/ESCALATION

29. EXTENSION OF TIME

b.8 any delay or act of prevention on the part of the Owner/Developer;

30. LOSS AND EXPENSE CAUSED BY DELAY

a.5 any delay or prevention on the part of the Owner/Developer;

31. FORCE MAJEURE AND SPECIAL RISKS

32. SPECIALIST/TRADE CONTRACTORS

33. PROGRESS BILLINGS

i. Request for Payment by the Contractor

34. MATERIALS ON SITE

36. FINAL ACCOUNT

38. BONDS AND GUARANTEES

39. ANTIQUES, FOSSILS AND OBJECTS OF VALUE

41. TERMINATION OF CONTRACT – GENERAL

42. TERMINATION OF CONTRACT BY OWNER

c.3 If he fails to provide the necessary bonds and guarantees.

f.2.1 The total value of work completed at the date of determination.

43. TERMINATION OF CONTRACT BY CONTRACTOR

b.2.1 The total value of work completed at the date of determination.

44. OWNER/DEVELOPER’S RIGHT TO TAKE OVER THE CONTRACT WORKS

45. SETTLEMENT OF DISPUTES

47. MISCELLANEOUS CONDITIONS

PRIME MANAGERS INC

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