XXX/OP-7174-122-19

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25 June 2020

XXX
Municipality of XXX,
Province of XXX, Philippines

Attention : Mr. XXX

Project Manager

Subject : Declination of Additional Scope of Work under Engineer’s

Instructions with reference nos. EI/GC/B1/043 Rev A and
EI/GC/B1/046 Rev A
New Bohol Airport Construction and Sustainable Environment
Protection Project

Dear Mr. XXX,

Reference is made to the Contractor’s corresspondences, XXXX/XXX-T-2019-0152 dated

08 February 2019 and XXXX/XXX-2019-062 dated 20 February 2019, wherein Contractor
request the Subcontractor to provide cost estimate for the supply and installation of
additional IP CCTV Cameras at Passenger Terminal Building (PTB) in accordance to
Engineer’s Instruction, EI/GC/B1/043_A issued 08 February 2019 and EI/GC/B1/046_A
issued 19 February 2019 respectively. Such instructions by the Engineer requires the
following works:
(a) Supply and Install of IP CCTV Outdoor Type Cameras
(b) Supply and Install of Electrical conduit, cables and accessories
(c) Chipping works for Electrical roughing-ins
(d) Testing and Commisioning of New Devices

Firstly, Subcontractor refutes Engineer’s determination of the work to be evaluated in

accordance with Clause 12.0 [measurement and evaluation]. Subcontractor asserts that
this work shall constitute a variation in pursuant to GCC Sub-clause 13.1, Paragraph (a)
and (b);
a) Changes to the quantities of any item of work included in the
Contract (however, such changes do not necessarily constitute a
Variation)
b) Changes to the quality and other characteristics of any item of
work
c) Changes to the levels, positions and/or dimension of any part of the works
d) Omission of any work unless it is to be carried out by others

Moreover, Subcontractor reiterates that this work is not to be executed under similar
conditions as any other item in the Contract. Since the project is already operational,
Subcontractor is only given limited time (night) and space to undertake the works which
lead to high difficulty and prolonged duration. Kindly note that, the consideration of
XXX/OP-7174-122-19
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Subcontract rates is at the given normal condition of the implementation of the process
and such external factors are not involved.

Notwithstanding the above, Subcontractor hereby informs the Contractor that such
provision of additional items cannot be complied and executed by the Subcontractor
with the following reasons:

1. Prolonged Procurement of Permanent Materials

Subcontractor informs the Contractor that original Supplier of IP CCTV Camera
and its accessories does not assure that such items are readily available in their
stock, thus, since these items are purchased out the Philippines at would require
long lead time.

Further, original works for CCTV System has been completed and operational at
Site. Also, functionality test has been carried out and pre-commissioning test is
to be undertaken. Hence, these instructions would require repetition of test and
documentation process.

2. Demobilized Equipment
It has come that Subcontractor considered to demobilize the necessary
equipment utilized for the original scope of work since such scope was already
completed and served at site.

3. Inadequate Manpower at Site

Subcontractor clarifies that the remaining number of workers intended for this
project was limited to work on the punchlisting activities only. In connection to
the Item 1 to 2 reasons, remobilization of our skilled workers will incur additional
cost with no assurance of the availability of other fundamental resources
required to complete such a variation.

Furthermore, Subcontractor would like to clarify that in reference to the submitted

weekly report with ref. no. WRO#191 (Attachment-4) dated 15 February 2019, the
overall accomplishment for the original contract scope of works is 99.16%.
Subcontractor has substantially served its original scope of work and has made the most
appropriate decision, considering the aforementioned reasons, to decline this variation
issued by the Engineer pursuant to the GCC Sub-clause 13.3 Variation Procedure.

Subcontractor is hoping that Contractor finds above in order.

Very truly yours,

Project Manager

Enc: Attachment-1 XXXX/XXX-2019-060 dated 20 February 2019 (3 Pages)

Enc: Attachment-2 XXXX/XXX-2019-061 dated 20 February 2019 (7 Pages)
Enc: Attachment-4 Weekly Report dated 15 February 2019 (2 Pages)