Name : Kristia Jolina B.

Alde

Subject : MEC 555 - Applied Project Management of Public Infrastructure

Professor : Dr. Ruel R. Cabahug

Date : March 13, 2021

Assignment No. 2: Project Management

Scenario/Case:

An on-going government contract project has been doing well in its progress at about 40% actual
accomplishment as reported by the project engineer during the cut-off date July 31, 2017. After
collecting the 15% mobilization (in March 2017), the contractor requested for its FIRST partial
billing on August 10, 2017. The contractor has already procured materials such as steel bars,
cement and aggregates which are already delivered on site. The cost of these materials is about
20% of the contract cost thereby the contractor requested to include payment of these materials
for this billing at 60% actual work accomplished.

Question:

As project engineer, what will be your course of action for this request? Present how you will
process the proper payment of the contractor without creating friction between the government
and the contractor. Provide a win-win solution to this scenario. Provide relevant references to
support your action. (Opinions are not acceptable).

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For the sake of discussion, let’s
assume that the project on point
is the Implementation of Civil
Works for Annual Work Program
3 / Preventive Maintenance
(AWP3/PM), Bukidnon-Davao
City Road Section, under the Road
Upgrading and Preservation
Project (RUPP), Asset
Preservation Contract –
Preventive Maintenance (APC)
Component, JICA Loan
Agreement No. PH-P247, located
in the Province of Bukidnon,
Region X with Contract ID No.
19K00399.

The Contract Agreement for the

aforementioned project, by and
between the Procuring Entity
(Department of Public Works and
Highways - DPWH) and the Contractor (M. Montesclaros Enterprises Incorporated) is accessible
on DPWH’s website; shown above is page 5 of the document. Quoting item number 8:

“The Implementing Rules and Regulations of the RA 9184, PD1759, other existing laws,
decrees, executive and administrative orders, circulars issued by proper authorities
affecting government construction projects shall be made and formed as integral part
of the Contract.”

Hence, with reference to part 5 – Progress Payment of the 2016 Revised Implementing Rules and
Regulations (IRR) – Annex “E” of the RA 9184, sub-part number 5.2, it explicitly states that:

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 “. . . Except as otherwise stipulated in the Instruction to Bidders, materials and
equipment delivered on the site but not completely put in place shall not be included
for payment.”

Therefore, as a project engineer, with the intention of fulfilling my duties and responsibilities in
accordance with
pertinent laws and
the Contract
Agreement, the
first progress billing
shall correspond to
the actual
accomplishment of
40% as initially
declared, deductive
of the recoupment
from the advance
payment and a 10%
retention as
stipulated for on
item #6 of the
Contract.

However, in an
effort to
accommodate the
request of the Contractor to process a first progress billing equivalent to 60% work
accomplishment. As a project engineer, I could provide two guided recommendations in
compliance with Department Order No. 19, Series of 2011: (1) Preparation of an updated
Statement of Work Accomplished (as of August 10, 2017), and/or (2) Putting off the first progress
billing to a later date (i.e., September 10, 2017).

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It is to be noted that, the declared
40% actual accomplishment was
for the cut-off date of
July 31, 2017. On the other hand,
as stated on the 2nd paragraph of
Department Order No. 19,
Series of 2011, to quote:

“. . . the cut-off date of

physical accomplishments
to be reflected in Progress
Billings shall hereon, be
reckoned on the 10th day of
each month. . . Thus, the
monthly accomplishment
for any project shall
constitute the works
completed and accepted
from the 11th day of the
preceding month up to the
10th day of the current
month.”

With this, the previously declared 40% actual accomplishment could then be increased based on
the weight of works completed within August 1 – 10, 2017 (e.g., First Progress Billing at 43% -
with the 3% increase caused by laying of gravel bed for footings on August 5, 2017).

Furthermore, materials to be specifically FURNISHED as listed for in the Contract which have
been delivered during the 10-day span, could form part of the accomplishment (e.g., the delivery
of Structural Steel Sheet Piles, furnished – Pay item 1052(6) on August 8, 2017). Therefore,
increasing the then declared 40% actual accomplishment.

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If per se, the works carried out during the span of 10 days (August 1-10, 2017), does not
constitute any weighted actual accomplishment (e.g., fabrication of reinforcing steel for stirrups),
the Contractor may put-off the processing of the first progress billing until the next cut-off date
on September 10, 2017.

Finally, in processing the First Progress Billing of the Contractor, documents as listed on
pages 36 and 37 of Annex K for Department Order No. 11, Series of 2021 – Checklist of Supporting
Documents and Attachments for DoTS are to be complied both by the Contractor and the
Implementing Office (as presented in the images below).

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