IX.

IMPLEMENTING RULES AND REGULATIONS OF RA 9184

 RA 9184 - GOVERNMENT PROCUREMENT REFORM ACT

 SCOPE OF APPLICATION OF RA 9184: PROCUREMENT OF:

a) INFRASTRUCTURE PROJECTS
b) GOODS AND SERVICES

 DEFINITION OF TERMS:
 APPROVED BUDGET FOR THE CONTRACT (ABC) - THE
BUDGET FOR THE CONTRACT DULY APPROVED BY THE HEAD
OF THE PROCURING ENTITY.

 BAC - THE BIDS AND AWARDS COMMITTEE

 BIDDING DOCUMENTS (BID DOCS.) - THE DOCUMENT ISSUED
BY THE PROCURING ENTITY AS BASIS FOR BIDS OF QUALIFIED
BIDDERS.

 BID- A SIGNED OFFER OR PROPOSAL SUBMITTED BY A

SUPPLIER, CONTRACTOR, ETC. IN RESPONSE TO THE BIDDING
DOCUMENTS.

 G-EPS - THE GOVERNMENT ELECTRONIC PROCUREMENT

SYSTEM

 GOODS - ALL ITEMS, SUPPLIES, MATERIALS,

INFRASTRUCTURE PROJECTS, CONSULTING SERVICES, ETC.
 INFRASTRUCTURE PROJECTS - INCLUDE THE
CONSTRUCTION, IMPROVEMENT, REHABILITATION,
DEMOLITION, REPAIR, RESTORATION OR MAINTAINANCE OF
ROADS, AIRPORTS, SEAPORTS, BRIDGES, GOVERNMENT
OWNED BUILDINGS, ETC.

 PROCUREMENT - THE ACQUISITION OF GOODS, CONSULTING

SERVICES, AND THE CONTRACTING FOR INFRASTRUCTURE
PROJECTS BY THE PROCURING ENTITY

 PROCURING ENTITY - ANY BRANCH, DEPARTMENT, OFFICE,

AGENCY, OR INSTRUMENTALITY OF THE GOVERNMENT.
 THE BIDS AND AWRDS COMMITTEE (BAC):

 FUNCTIONS OF THE BAC - THE BAC SHALL HAVE THE

FOLLOWING FUNCTIONS:

1) ADVERTISE OR POST THE INVITATION TO BID

2) CONDUCT PRE-PROCUREMENT AND PRE-BID
CONFERENCES
3) DETERMINE THE ELIGIBILITY OF PROSPECTIVE
BIDDERS
4) RECEIVE BIDS
5) CONDUCT EVALUATION OF BIDS
6) UNDERTAKE POST-QUALIFICATION PROCEEDINGS
7) RECOMMEND AWARD OF CONTRACTS TO THE HEAD OF THE
PROCURING ENTITY
 COMPOSITION OF THE BAC - AT LEAST FIVE (5) BUT NOT
MORE THAN SEVEN (7) MEMBERS.

REGULAR MEMBERS:
1) CHAIRMAN - A LEAST A THIRD RANKING PERMANENT
OFFICIAL OF THE PROCURING ENTITY OTHER THAN
ITS HEAD
2) AN OFFICER - WHO IS AT LEAST A 5TH RANKING
PERMANENT OFFICIAL WITH KNOWLEDGE,
EXPERIENCE AND EXPERTISE IN PROCUREMENT. IN
CASE OF BUREAUS, REGIONAL OFFICES AND DISTRICT
OFFICES, BAC MEMBERS SHALL BE AT LEAST A 3RD
RANKING PERMANENT PERSONNEL
 OTHER BAC MEMBERS:

TWO (2) OBSERVER MEMBERS - FROM ORGANIZATIONS DULY

REGISTERED WITH THE SEC LIKE PICE, IIEE, PSME, ETC.

ONE (1) REPRESENTATIVE FROM THE COMMISSION ON

AUDIT (COA)

 MEMBERS OF THE BAC INCLUDING THE CHAIRMAN AND VICE

CHAIRMAN SHALL BE DESIGNATED BY THE HEAD OF THE
PROCURING ENTITY.

 MEMBERS OF THE BAC HAS A FIXED TERM OF ONE (1) YEAR

 COMPOSITION OF BAC FOR LGU’S:

 ONE (1) REPRESENTATIVE EACH FROM THE REGULAR OFFICES

UNDER THE OFFICE OF THE LOCAL CHIEF EXECUTIVE
OCCUPYING PLANTILLA POSITIONS

 THE CHAIRMAN SHALL BE AT LEAST 3RD RANKING

PERMANENT OFFICIAL OF THE PROCURING ENTITY

 THE CHIEF EXECUTIVE SHALL DESIGNATE THE MEMBERS OF

THE BAC. THE MEMBERS SHALL ELECT AMONG THEMSELVES
WHO SHALL ACT AS CHAIRMAN AND VICE CHAIRMAN. IN NO
CASE, THE HEAD OF THE PROCURING ENTITY SHALL BE THE
CHAIRMAN OR MEMBER OF THE BAC.
 XX. THE BIDDING PROCESS

 PREPARATION OF BIDDING DOCUMENTS - THE FORM AND

CONTENTS OF BIDDING DOCUMENTS INCLUDES THE
FOLLOWING:

a) APPROVED BUDGET FOR THE CONTRACT (ABC)

b) INSTRUCTION TO BIDDERS – INCLUDES CRITERIA FOR
ELIGIBILITY; BID EVALUATION; POST-QUALIFICATION; DATE,
TIME, AND PLACE OF PRE-BID CONFERENCE; AND
SUBMISSION AND OPENING OF BIDS.
c) TERMS OF REFERENCE
d) ELIGIBILITY REQUIREMENTS
e) PLANS AND TECHNICAL SPECIFICATIONS
f) FORM OF BID, PIECE FORM, AND LIST OF GOODS OR BILL OF
QUANTITIES (BOQ)
g) DELIVERY TIME OR COMPLETION SCHEDULE
h) FORM AND AMOUNT OF BID SECURITY
i) FORM AND AMOUNT OF PERFORMANCE SECURITY AND
WARRANTY
j) FORM OF CONTRACT, AND GENERAL AND SPECIAL
CONDITIONS OF CONTRACT
 XXI. ELIGIBILITY REQUIREMENTS OR
PRE-QUALIFICATION OF BIDDERS

 REQUIRED DOCUMENTS FOR PRE-QUALIFICATION: LETTER OF

INTENT TO PARTICIPATE IN THE BIDDING.

 LEGAL DOCUMENTS:

 CONTRACTOR’S VALID PCAB LICENSE

 VALID JOINT VENTURE AGREEMENT IN CASE OF A JOINT
VENTURE
 LETTER AUTHORIZING THE HEAD OF OFFICE / AGENCY OR HIS
REPRESENTATIVES TO VERIFY ANY OR ALL OF THE
DOCUMENTS SUBMITTED FOR ELIGIBILITY SCREENING.
 STATEMENT THAT CONTRACTOR IS NOT INCLUDED IN THE
“BLACKLIST” OF CONTRACTORS ISSUED BY CIAP.
 TECHNICAL DOCUMENTS:

 STATEMENT OF ALL GOVERNMENT AND PRIVATE

CONSTRUCTION CONTRACTS, COMPLETED IN THE LAST
THREE (3) YEARS WHICH ARE SIMILAR IN NATURE AND
COMPLEXITY TO THE CONTRACT TO BE BID.
THE VALUE OF THE CONTRACTOR’S LARGEST SINGLE
CONTRACT SIMILAR TO THE CONTRACT TO BE BID MUST BE AT
LEAST 50% OF THE APPROVE BUDGET FOR THE CONTRACT
(ABC) TO BE BID.

 STATEMENT OF ALL ONGOING GOVERNMENT AND PRIVATE

CONSTRUCTION CONTRACTS, INCLUDING CONTRACTS
AWARDED BUT NOT YET STARTED.
 STATEMENT THAT THE CONTRACTOR HAS KEY PERSONNEL,
SUCH AS PROJECT MANAGER, PROJECT ENGINEER,
MATERIALS ENGINEER, AND FOREMAN THAT MAY USED FOR
THE CONTRACT.

 STATEMENT THAT THE CONTRACTOR OWNS, AND/OR HAS

UNDER LEASE, AND/OR HAS UNDER PURCHASE
AGREEMENTS, EQUIPMENT THAT MAY BE USED FOR THE
CONTRACT.
 FINANCIAL DOCUMENTS:
 AUDITED FINANCIAL STATEMENTS, STAMPED “RECEIVED” BY THE BIR
FOR THE PAST THREE (3) CALENDAR YEARS SHOWING, AMONG
OTHERS, THE CONTRACTOR’S TOTAL AND CURRENT ASSETS AND
LIABILITIES.

 THE CONTRACTOR’S NET FINANCIAL CONTRACTING CAPACITY

(NFCC).
NFCC = K (CA - CL) - V
Where: K = 10 for one year contracts or less;
K = 15 for contracts more than one year up to two years
K = 20 for contracts more than two years
V = Value of all outstanding works ongoing or awarded
contracts
CA = Current Assets; CL = Current Liabilities
 STEPS IN THE BIDDING PROCESS

1) INVITATION TO BID - PUBLISHED IN LOCAL OR NATIONAL

NEWSPAPERS AND POSTED IN G-EPS (PHILGEPS), AND WEBSITE OF
THE PROCURING ENTITY

2) ELIGIBILITY SCREENING

3) PRE-BID CONFERENCE – AT LEAST 12 CD BEFORE SUBMISSION OF

BIDS

4) RECEIPT AND OPENING OF BIDS - TWO ENVELOPE SYSTEM

5) BID EVALUATION – FORM OF BID SECURITY, COMPLETENESS OF

BID, NO MAJOR DEVIATIONS FROM INSTRUCTION TO BIDDERS

6) POST QUALIFICATION - THE STAGE WHERE THE BIDDER WITH THE

LOWEST CALCULATED RESPONSIVE BID UNDERGOES VERIFICATION
AND VALIDATION WHETHER HE PASSED ALL THE REQUIREMENTS
AND CONDITIONS IN THE BIDDING DOCUMENTS
7) AWARD OF CONTRACT - INCLUDES CONTRACT SIGNING

8) IMPLEMENTATION OF CONTRACT

9) NOTICE TO PROCEED

10) TERMINATION OF CONTRACT

 FAILURE OF BIDDING: UNDER THE FOLLOWING CONDITIONS:

 NO BIDS ARE RECEIVED

 NO BID QUALIFIES AS THE LOWEST CALCULATED RESPONSIVE
BID
 WHENEVER THE BIDDER WITH THE LOWEST CALCULATED
RESPONSIVE BID REFUSES WITHOUT JUSTIFIABLE CAUSE TO
ACCEPT THE AWARD OF CONTRACT.
 INSTRUCTION TO BIDDERS - REFER TO PRE-CONSTRUCTION
ACTIVITIES FROM ADVERSTISEMENT TO CONTRACT AWARD.

 WHO MAY BE ALLOWED TO BID:

 FILIPINO CITIZEN - SINGLE PROPRIETORSHIP

 PARTNERSHIP OR CORPORATIONS - 75% OF THE CAPITAL
STOCK MUST BELONG TO FILIPINO CITIZENS.
 CONTRACTORS FORMING THEMSELVES INTO JOINT
VENTURES WHERE FILIPINO OWNERSHIP IS AT LEAST 75%.
 FOREIGN CONTRACTORS FOR INTERNATIONALLY BID
FOREIGN-ASSISTED PROJECTS.
 COOPERATIVES DULY REGISTERED WITH CDA
 PCAB REGISTRATION OF CONTRACTORS

 CONTRACTOR’S LICENSE CATEGORY:

 CATEGORY ALLOWABLE RANGE OF CONTRACT COST

 (IN MILLION PESOS)

 SMALL A UP TO 0.5
 SMALL B UP TO 3.0
 MEDIUM A UP TO 15.0
 MEDIUM B UP TO 30.0
 LARGE A UP TO 50.0
 LARGE B LESS THAN OR ABOVE 50.0
 BID SECURITY
- A FORM OF GUARANTEE THAT A WINNING
BIDDER WILL ENTER INTO A CONTRACT WITH THE
GOVERNMENT.

 FORMS OF BID SECURITY:

 CASH, MANAGER’S CHECK, CASHIERS’S CHECK,

IRREVOCABLE LETTER OF CREDIT OR BANK DRAFT - 1% OF
THE ABC

 BANK GUARANTEE - 1.5 % OF THE ABC

 SURETY BOND - 2.5 % OF THE ABC

 PERFORMANCE SECURITY - A FORM OF GUARANTEE THAT A

WINNING BIDDER WILL PERFORM DELIGENTLY THE WORK ON
THE CONTRACT AWARDED.
 SUBMISSION AND OPENING AND OF BIDS

 SUBMISSION, OPENING AND ABSTRACTING OF BIDS /

TENDERS - THE TWO ENVELOPE SYSTEM

CONTENTS OF THE FIRST ENVELOPE:

 AUTHORITY OF THE SIGNING OFFICIAL

 CONSTRUCTION SCHEDULE AND S-CURVE
 CONSTRUCTION METHODS
 ORGANIZATIONAL CHART FOR THE CONTRACT TO BE BID
 LIST OF CONTRACTOR’S PERSONNEL, TO BE ASSIGNED TO
THE CONTRACT TO BE BID
 MANPOWER SCHEDULE
 LIST OF CONTRACTOR’S EQUIPMENT UNITS, OWNED AND/OR
LEASE AND/OR UNDER PURCHASE AGREEMENTS INTENTED
FOR USE IN THE CONTRACT TO BE BID.
 EQUIPMENT UTILIZATION SCHEDULE
 AFFIDAVIT OF SITE INSPECTION
 BID SECURITY
 COMMITMENT FROM THE CONTRACTOR’S BANK TO EXTEND
TO HIM A CREDIT LINE IF AWARDED THE CONTRACT TO BE
BID OR CASH DEPOSIT CERTIFICATE, AT LEAST 10% OF THE
ABC.
 CONSTRUCTION SAFETY AND HEALTH PROGRAM OF THE
CONTRACTOR.
 CERTIFICATE FROM THE BIDDER UNDER OATH OF ITS
COMPLIANCE WITH EXISTING LABOR LAWS AND STANDARDS
 A SWORN AFFIDAVIT OF COMPLIANCE WITH THE
DISCLOSURE PROVISION UNDER SECTION 47 OF RA3019.
 DOCUMENTS OR MATERIAL TO COMPLY WITH OTHER NON-
DISCRETIONARY CRITERIA AND REQUIREMENTS AS STATED
IN INSTRUCTION TO BIDDERS

CONTENTS OF THE SECOND ENVELOPE:

 BID PRICES IN THE BILL OF QUANTITIES ON PRESCRIBED BID

FORM
 DETAILED ESTIMATES INCLUDING A SUMMARY SHEET
INDICATING THE UNIT PROCES OF CONSTRUCTION
MATERIALS, LABOR RATES AND EQUIPMENT RENTALS USED
IN COMING UP WITH THE BID
 CASH FLOW BY QUARTER AND PAYMENT SCHEDULES
 AWARDING OF CONTRACT:

 IF THE CONTRACTOR WITH THE LOWEST RESPONSIVE BID

PASS THE POST QUALIFICATION, IT SHALL BE AWARDED THE
CONTRACT.
 DOCUMENTS COMPRISING THE CONTRACT:

 CONTRACT AGREEMENT
 CONDITIONS OF THE CONTRACT
 DRAWINGS / PLANS
 SPECIFICATIONS
 INVITATION TO BID
 INSTRUCTION TO BIDDERS
 ADDENDA
 BID FORM IN TWO ENVELOPES
 PERFORMANCE SECURITY
 PREQUALIFICATION STATEMENTS - LEGAL DOCS, TECHNICAL
DOCS, AND FINANCIAL DOCS.
 CREDIT LINE ISSUED BY AN AUTHORIZED BANK IN AN AMOUNT
EQUAL TO THE AVERAGE OPERATING EXPENSES OF THE PROJECT
FOR TWO MONTHS OR 10% OF THE TOTAL PROJECT COST.
 NOTICE OF AWARD OF CONTRACT AND CONTRACTOR’S “CONFORME”
THERETO
 OTHER CONTRACT DOCUMENTS THAT MAY BE REQUIRED BY THE
OFFICE / AGENCY

APPROVAL OF THE CONTRACT - WITHIN 15 DAYS FROM THE DATE THE

CONTRACT WAS EXECUTED FOR PROJECTS THAT DOES NOT
REQUIRE THE APPROVAL OF THE OFFICE OF THE PRESIDENT.
OTHERWISE IT IS 30 DAYS.

ISSUANCE OF NOTICE TO PROCEED: - NOT LATER THAN 15 DAYS FROM

THE DATE OF THE APPROVAL OF THE CONTRACT.
 ADVANCE PAYMENT - 15% OF THE TOTAL PROJECT PRICE GRANTED
BY THE GOVERNMENT UPON WRITTEN REQUEST OF THE
CONTRACTOR AND SUBMITTED AS PART OF THE CONTRACT
DOCUMENTS.

 PROGRESSPAYMENT - MADE ONCE A MONTH FOR WORK

ACCOMPLED SUBJECT TO VERIFICATION.

 RETENTION MONEY - 10% OF THE PROGRESS PAYMENTS UNTIL 50%

OF THE VALUE OF WORKS ARE COMPLETED. IF, AFTER 50%
COMPLETION, THE WORK IS SATISFACTORILY DONE AND ON
SCHEDULE, NO ADDITIONAL RETENTION SHALL BE MADE.

 IT IS INTENDED TO COVER UNCORRECTED DISCOVERED DEFECTS

AND THIRD PARTY LIABILITIES. IT IS DUE FOR RELEASE UPON FINAL
ACCEPTANCE OF THE WORKS.
 LIQUIDATED DAMAGES - WHERE THE CONTRACTOR REFUSES OR
FAILS TO SATISFACTORILY COMPLETE THE WORK WITHIN THE
SPECIFIED CONTRACT TIME, THE CONTRACTOR PAYS THE
PROCURING ENTITY LIQUIDATED DAMAGES COMPUTED ACCORDING
TO THE FOLLOWING FORMULA:

 TLD = [VUUP] [(1 + OCC) (n - 1)] [K]

 VUUP = TCP - VCUP

 Where:
 TLD = TOTAL LIQUIDATED DAMAGES
 VUUP = VALUE OF UNCOMPLETED AND UNUSABLE PORTIONS OF THE
 CONTRACT WORK AS OF THE EXPIRY DATE OF THE CONTRACT
 OCC = PREVAILING OPPORTUNITY COST OF CAPITAL SET BY NEDA
 VCUP = VALUE OF COMPLETED AND USABLE PORTION OF THE CONTRACT
 TCP = TOTAL CONTRACT PRICE
 n = TOTAL NUMBER OF YEARS THAT THE CONTRACT WORK IS DELAYED
 AFTER THE EXPIRY DATE OF THE CONTRACT
 K = ADJUSTMENT FACTOR TO COVER ADDITIONAL LOSSES
 K = 1 + C + (I X n)

 C = COST OF CONSTRUCTION SUPERVISION AS A PERCENTAGE, NOT

 EXCEEDING 10% OF CONSTRUCTION COST
 I = ANNUAL INFLATION RATE AS SET BY NEDA
 CONTRACT COMPLETION - PROCURING ENTITY MAY
CONDUCT FINAL INSPECTION ONCE COMPLETION OR WORK
ITEMS REACHES 95%.

 SUSPENSION OF WORK WHOLLY OR PARTLY - ISSUED UNDER

THE FOLLOWING CONDITIONS:

 FORCE MAJEURE OR ANY FORTUITOUS EVENTS

 FAILURE OF CONTRACTOR TO CORRECT UNSAFE CONDITIONS

 ADJUSTMENT IN PLANS TO SUIT FIELD CONDITIONS AS

FOUND NECESSARY DURING CONSTRUCTION
 RIGHT-OF-WAY PROBLEMS WHICH PROHIBIT CONTRACTOR
FROM PERFORMING WORK

 PEACEAND ORDER CONDITIONS MAKE IT EXTREMELY

DANGEROUS IF NOT IMPOSSIBLE TO WORK

 FAILURE ON THE PART OF THE PROCURING ENTITY TO

DELIVER GOVERNMENT FURNISHED MATERIALS AND
EQUIPMENT

 DELAY IN PAYMENT OF CONTRACTORS’ CLAIM FOR PROGRESS

BILLING BEYOND 45 DAYS

 OWNER FURNISHED PLANS NOT ISSUED TO THE CONTRACTOR

 CONTRACT PRICES AND WARRANTIES

 CONTRACT PRICES:

 ALL BID PRICES SHALL BE CONSIDERED AS FIXED PRICES AND

NOT SUBJECT TO ANY PRICE ESCALATION DURING THE
IMPLEMENTATION OF THE CONTRACT, EXCEPT UNDER
EXTRAORDINARY CIRCUMSTANCES.

 REQUESTFOR PRICE ESCALATION UNDER EXTRAORDINARY

CIRCUMSTANCES SHALL BE SUBMITTED TO NEDA

 EXTRAORDINARY CIRCUMSTANCES SHALL REFER TO EVENTS

THAT MAY BE DETERMINED BY NEDA
 WARRANTY:

 THE CONTRACTOR SHALL ASSUME FULL RESPONSIBILITY FOR

THE CONTRACT WORK FROM THE TIME THE PROJECT
CONSTRUCTION COMMENCED UP TO FINAL ACCEPTANCE.

 THE CONTRACTOR SHALL BE FULLY RESPONSIBL FOR THE

SAFETY, PROTECTION, SECURITY AND CONVENIENCE OF HIS
PERSONNEL, THIRD PARTIES, AND THE PUBLIC AT LARGE

 THE DEFECTS LIABILITY PERIOD FOR INFRASTRUCTURE

PROJECTS SHALL BE ONE YEAR FROM PROJECT COMPLETION
UP TO FINAL ACCEPTANCE
 AFTER FINAL ACCEPTANCE OF THE PROJECT, THE
CONTRACTOR SHALL BE HELD RESPONSIBLE FOR
STRUCTURAL DEFECTS AND OR FAILURE OF THE COMPLETED
PROJECT WITHIN THE FOLLOWING WARRANTY PERIODS FROM
FINAL ACCEPTANCE EXCEPT THOSE CAUSED BY FORCE
MAJEURE AND THOSE CAUSED BY THIRD PARTIES:

a) PERMANENT STRUCTURES - 15 YEARS

b) SEMI PERMANENT STRUCTURES - 5 YEARS
c) OTHER STRUCTURES - 2 YEARS
 IN CASES WHERE DEFECTS AND OR FAILURES ARISE DURING THE
WARRANTY PERIOD, THE FOLLOWING SHALL BE HELD LIABLE:

a) CONTRACTOR - WHERE STRUCTURAL DEFECTS / FAILURES ARISE

DUE TO IMPROPER CONSTRUCTION, USE OF INFERIOR MATERIALS,
AND ANY VIOLATION OF THE CONTRACT PLANS AND
SPECIFICATIONS.

b) CONSULTANTS - WHERE STRUCTURAL DEFECTS / FAILURES ARISE

DUE TO FAULTY AND OR INADEQUATE DESIGN AND SPECIFICATIONS
AS WELL AS CONSTRUCTION SUPERVISION

c) PROCURING ENTITY’S REPRESENTATIVE - IN CASES WHERE

STRUCTURAL DEFECTS / FAILURE ARE DUE TO THEIR
INTERVENTION IN ALTERING THE DESIGN AND OTHER
SPECIFICATIONS NEGLIGENCE OR OMISSIONS.
d) THIRD PARTIES - IN CASES WHERE STRUCTURAL DEFECTS /
FAILURES ARE CAUSED BY WORK UNDERTAKEN BY THEM

e) USERS - IN CASES WHERE STRUCTURAL DEFECTS / FAILURES ARE

DUE TO ABUSE / MISUSE BY THE END USER OF THE CONSTRUCTED
FACIILITY AND OR NON-COMPLIANCE BY A USER WITH THE
TECHNICAL DESIGN LIMITS AND OR INTENDED PURPOSE OF THE
SAME.

STRUCTURAL DEFECTS - SHALL MEAN MAJOR FAULTS; FLAWS;

DEFICIENCIES; IN ONE OR MORE KEY STRUCTURAL ELEMENT OF THE
PROJECT.

STRUCTURAL FAILURES - AN OCCURRENCE WHERE ONE OR MORE KEY

STRUCTURAL ELEMENTS FAILS OR COLLAPSES, THEREBY RENDERING
THE FACILITY OR PART THEREOF INCAPABLE OF WITHSTANDING THE
DESIGN LOADS AND OR ENDAGERING THE SAFETY OF THE USERS.
 XXII. DETAILED ENGINEERING OF
INFRASTRUCTURE PROJECTS

DETAILED ENGINEERING ACTIVITIES INCLUDE THE FOLLOWING:

a) SURVEY
b) SITE INVESTIGATION
c) SOILS AND FOUNDATION INVESTIGATION
d) CONSTRUCTION MATERIALS INVESTIGATION
e) PREPARATION OF DESIGN PLANS
f) PREPARATION OF TECHNICAL SPECIFICATIONS
g) PREPARATION OF QUANTITY AND COST ESTIMATES
h) PREPARATION OF PROGRAM OF WORK
i) PREPARATION OF PROPOSED CONSTRUCTION SCHEDULE AND
CASH FLOW
j) PREPARATION OF RIGHT-OF-WAY PLANS INCLUDING
SCHEDULED ACQUISITION
k) PREPARATION OF UTILITY RELOCATION PLAN
 PREPARATION AND SUBMISSION OF DESIGN REPORT
Iil)m)
ENVIRONMENTAL IMPACT STATEMENT FOR CRITICAL PROJECTS
n) PREPARATION OF TENDER/BID DOCUMENTS
o) PREPARATION OF MINIMUM REQUIREMENTS FOR A
CONSTRUCTION SAFETY AND HEALTH PROGRAM FOR THE
PROJECT.

WORK UNDER DETAILED ENGINEERING INCLUDES THE

FOLLOWING:

 DESIGN STANDARDS - IN ACCORDANCE WITH APPROPRIATE

AND STANDARDS ADOPTED BY THE AGENCY CONCERNED
WHICH SHALL TAKE INTO ACCOUNT THE SEISMICITY OF THE
AREA.
 FIELD SURVEYS AND INVESTIGATIONS - MAY INCLUDE
AERIAL, HYDROGRAPHIC, TOPOGRAPHIC, HYDROLOGIC, SUB-
SURFACE, MONUMENTING AND OTHER SURVEYS.

 CONTRACT PLANS - INCLUDES THE FOLLOWING:

1) SITE DEVELOPMENT PLAN

2) PLANS AND PROFILE SHEET
3) TYPICAL SECTIONS AND DETAILS
4) DRAINAGE DETAILS WHERE APPLICABLE
5) STRUCTURAL PLANS
6) OTHER DETAILS WHICH MAY BE REQUIRED
 QUANTITIES - DEGREE OF ACCURACY IS PLUS OR MINUS 10%

 SPECIAL PROVISIONS - SPECIFICATIONS PREPARED FOR

SPECIFIC ITEMS OF WORK OR METHODS OF CONSTRUCTION,
MEASUREMENT, AND PAYMENT UNDER EACH CONTRACT,
WHICH ARE NOT COVERED BY STANDARD CONSTRUCTION
AND MATERIALS SPECIFICATIONS.

 UNIT PRICES - BASED ON APPROVED CURRENT PRICES.

 APPROVED BUDGET FOR THE CONTRACT - THE BUDGET FOR

THE CONTRACT TO BE BID. IT SPECIFIES EACH MAJOR ITEM,
SUCH AS EARTHWORK, ROADWORK, CONCRETE WORKS, ETC.
WITH COMPONENTS FOR LABOR, MATERIALS, OVERHEAD,
EQUIPMENT RENTALS AND FUEL.
 BID / TENDER DOCUMENTS - INCLUDE INSTRUCTION TO
BIDDERS, GENERAL CONDITIONS, ADDENDA, ITEMIZED BILL
OF QUANTITIES, DAY WORK SCHEDULE, FORM OF BID
SECURITY, PERFORMANCE SECURITY, CONTRACT PLANS AND
SPECIFICATIONS, A DRAFT CONTRACT, ETC.

 PROGRAM OF WORK - INCLUDE ESTIMATES OF WORK ITEMS,

QUANTITIES AND COSTS, PERT / CPM NETWORK.

 DURATION OF CONSTRUCTION ACTIVITIES - UNLESS

OTHERWISE SPECIFICALLY STATED, ALL “DAYS” SHALL MEAN
CALENDAR DAYS.
 XXIII. VARIATION ORDERS

VARIATION ORDERS - MAY BE ISSUED BY THE PROCURING

ENTITY TO COVER ANY INCREASE / DECREASE IN QUANTITIES,
INCLUDING INTRODUCTION OF NEW WORK ITEMS AFTER AWARD
OF THE CONTRACT.

LIMITATIONS OF VARIATION ORDERS - SHALL NOT BE MORE

THAN 10% OF THE ORIGINAL PROJECT COST.

FORMS OF VARIATION ORDERS - CHANGE ORDER; EXTRA

WORK ORDER; AND SUPPLEMENTAL AGREEMENT

CHANGE ORDER - MAY BE ISSUED BY THE IMPLEMENTING

OFFICIAL TO COVER ANY INCREASE / DECREASE IN QUANTITIES
OF ORIGINAL WORK ITEMS IN THE CONTRACT.
 EXTRA WORK ORDER - MAY BE ISSUED BY THE
IMPLEMENTING OFFICIAL TO COVER THE INTRODUCTION OF
NEW WORK ITEMS NECESSARY FOR THE COMPLETION,
IMPROVEMENT, OR PROTECTION OF THE PROJECT WHICH
WERE NOT INCLUDED AS ITEMS OF WORK IN THE ORIGINAL
CONTRACT.

 CUMULATIVE VARIATION ORDER (BEYOND 10%) - SHALL BE

SUBJECT TO ANOTHER CONTRACT TO BE BID OUT. IN
EXCEPTIONAL CASES WHERE IT IS URGENTLY NECESSARY TO
COMPLETE THE ORIGINAL SCOPE OF WORK, THE HEAD OF
THE PROCURING ENTITY MAY AUTHORIZE VARIATION ORDER
BEYOND 10% BUT NOT MORE THAN 20% OF THE ORIGINAL
PROJECT COST SUB JECT TO GOVERNING GUIDELINES.
 CONDITIONS FOR THE CONTRACTOR TO START WORK UNDER
VARIATION ORDERS AND RECEIVE PAYMENTS - UNDER NO
CIRCUMSTANCES SHALL A CONTRACTOR PROCEED TO WORK
UNDER ANY CHANGE ORDER OR EXTRA WORK ORDER UNLESS
IT HAS BEEN APPROVED BY THE HEAD OF THE PROCURING
ENTITY.

 ADVANCE PAYMENT - UPON WRITTEN REQUEST OF THE

CONTRACTOR, 15% OF THE TOTAL CONTRACT PRICE.

 PROGRESS PAYMENT - ONCE A MONTH, THE CONTRACTOR

MAY REQUEST FOR PROGRESS PAYMENT BASED ON WORK
ACCOMPLISHED AND SUBJECT TO 10% RETENTION MONEY .
 XXIV. CONTRACTS AND SPECIFICATIONS

 SPECIFICATION:
A DETAILED DESCRIPTION OF REQUIREMENTS, DIMENSIONS,
MATERIALS, AND OTHER CONSTRUCTION REQUIREMENTS
THAT IS PART OF THE CONTRACT DOCUMENTS. IT DEFINES
THE QUALITATIVE REQUIREMENTS OF THE PROJECT THAT IS
TO BE BUILT.

CONFLICT BETWEEN DRAWINGS AND SPECIFICATIONS:

IN CASE SOMETHING IS SHOWN OR NOTED ONE WAY IN

THE DRAWINGS AND DESCRIBED DIFFERENTLY IN THE
SPECIFICATIONS, THE SPECIFICATIONS WILL NORMALLY
TAKE PRECEDENCE UNLESS IT SAYS IN THE
SPECIFICATIONS THAT THE PLANS WILL GOVERN.
 CONTENT AND COMPONENT PARTS OF A SPECIFICATION:

 PART I. BIDDING, CONTRACTUAL DOCUMENTS AND FORMS

1. NOTICE INVITING BIDS

2. INSTRUCTION TO BIDDERS

3. BID FORMS
BID SCHEDULE
CONTRACTOR CERTIFICATES
LIST OF SUBCONTRACTORS
NON-COLLUSION AFFIDAVIT
BIDDER’S GENERAL INFORMATION
BID SECURITY
 4. AGREEMENT AND BONDS

AGREEMENT (CONTRACT)
PERFORMANCE BOND

PART II. CONDITIONS OF THE CONTRACT

GENERAL CONDITIONS OF THE CONSTRACTION CONTRACTS

OR THE GENERAL PROVISIONS - SPECIFIY THE MANNER AND
THE PROCEDURES FOR IMPLEMENTING THE PROVISIONS OF
THE CONSTRUCTION CONTRACT ACCORDING TO ACCEPTED
PRACTICES WITHIN THE CONSTRUCTION INDUSTRY.
 PART III. TECHNICAL SPECIFICATIONS

 a) GENERAL CONDITIONS - QUALITY, QUANTITY, METHODS

 b) BODY OR PARTS OF THE SPECIFICATIONS

SECTION 1.0 - SPECIFIC – SCOPE OF WORK & CONTRACT

DRAWINGS
SECTION 2.0 - GENERAL CONDITIONS - WORKMANSHIP,
CHANGE ORDERS, CONFLICT BETWEEN
PLANS AND SPECIFICATIONS, etc.
SECTION 3.0 - CONCRETE AND MASONRY - SCOPE,
MATERIALS, PROPORTIONING, CURING,
TESTING, DESPOSING, etc.
SECTION 4.0 - CARPENTRY AND JOINERY WORKS
SECTION 5.0 - HARDWARE
SECTION 6.0 - STEEL WORKS - MATERIALS, WELDING AND
RIVETING, STEEL PROTECTION
SECTION 7.0 - GLASS WORKS
SECTION 8.0 - TILE WORKS AND FLOOR FINISHES
SECTION 9.0 - PLUMBING & WATER SUPPLY - GENERAL
PROVISIONS, SEWERAGE DISPOSAL,
WORKMANSHIP, GRADE, FIXTURES &
ACCESSORIES
SECTION 10.0 – ROOFING AND ROOF FRAMING
SECTION 11.0 – PAINTING, VARNISHING AND OTHER FINISHES,
PREPARATION OF SURFACES, COLORS, etc.
SECTION 12.0 – ELECTRICAL WORKS
SECTION 13.0 – SITE DEVELOPMENT AND LANDSCAPING -
SCOPE OF WORKS AND GENERAL
PROVISIONS
SECTION 14.0 - SPECIAL PROVISIONS – SUB-
CONTRACTORS,
MOBILIZATION, TEMPORARY STRUCTURES,
TEMPORARY CONNECTIONS, SAFETY, etc.
 CONTRACTS FOR CONSTRUCTION -
CONSISTS OF PROMISES
THAT ARE MADE BY THE OWNER TO THE CONTRACTOR IN
EXCHANGE FOR RETURN PROMISES THAT ARE MADE BY THE
CONTRACTOR TO THE OWNER.

 TYPES OF CONSTRUCTION CONTRACTS:

 a) FIXED-PRICE CONTRACTS:

a.1 LUMP-SUM CONTRACTS - ONE IN WHICH THE CONTRACTOR

AGREES TO DO SPECIFIED CONSTRUCTION FOR A FIXED
PRICE SET FORTH IN THE CONTRACT. THE ONLY
CHANGES ALLOWED TO THE FIXED PRICE ARE FOR
EXTRAS OR CHANGE ORDERS.
 a.2 UNIT-PRICE CONTRACTS - IT SETS FORTH THE PRICE FOR
 EACH UNIT OF WORK CONSTRUCTED.

b) COST-REIMBURSABLE CONTRACTS – COST-PLUS CONTRACTS ARE

THOSE IN WHICH THE CONTRACTOR IS PAID ITS ACTUAL COSTS
OF THE CONSTRUCTION PLUS A SPECIFIED MARKUP TO COVER
OVERHEAD AND PROFIT.

c) COST-PLUS-PERCENTAGE-OF-A-COST CONTRACTS - THE

CONTRACTOR IS PAID ITS ACTUAL COSTS PLUS A SPECIFIED
PERCENTAGE OF THOSE COSTS FOR OVERHEAD AND PROFIT.

d) COST-PLUS-FIXED-FEE CONTRACTS - THE CONTRACTOR IS PAID

ITS ACTUAL COSTS PLUS A FIXED FEE THAT IS IN ADVANCE.
e) GUARANTEED MAXIMUM PRICE CONTRACTS - THE OWNER
AND CONTRACTOR AGREE THAT THE PROJECT WILL NOT
COST THE OWNER MORE THAN A SET PRICE, THE
GUARANTEED MAXIMUM. THE CONTRACTOR IS PAID ON A
COST-PLUS FIXED FEE OR PERCENTAGE OF COST BASIS,
BUT IN NO EVENT MORE THAN THE SET MAXIMUM PRICE.