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IDESIA DASMARIÑAS

OWNER
P.A. PROPERTIES HANKYU HANSHIN

BID DOCUMENTS

FOR

PHASE 2 and 3 SLOPE PROTECTION

NOVEMBER 2020

PREPARED BY:

RIDER LEVETT BUCKNALL PHILIPPINES, INC.


Quantity Surveyors * Projects and Claims Managers * Construction Cost Consultants
IDESIA DASMARIÑAS
Bid Documents for Phase 2 and 3 Slope Protection Works

TABLE OF CONTENTS

Section 1 Instruction’s to Bidders

Section 2 Form of Bid

Section 3 Contract Agreement

Section 4 General Conditions of Contract

Section 5 Summary of Bid

Section 6 Bill of Preliminaries

Section 7 Trade Preambles and Rules for


Construction Measurement

Section 8 Bills of Quantities

Section 9 Bid Specifications

Section 10 Bid Drawings

Section 11 Bid Submission Checklist

Appendices A – G inclusive
Section 1

Instructions to Bidders
INSTRUCTIONS TO BIDDERS
1. PROJECT DESCRIPTION

a) Construction of Phase 2 and 3 Slope Protection Works of Idesia Dasmariñas project. A


land development project with residential housing, commercial area and other amenities
located at Brgy. San Agustin, Dasmariñas, Cavite.

b) Owner: P.A. Properties Hankyu Hanshin

c) Project Director P.A. Alvarez Properties and Development Corp.

d) Project Manager: P.A. Alvarez Properties and Development Corp.

e) Construction Manager: Rider Levett Bucknall Philippines, Inc.

f) Architect of Record: VCA International Inc.

g) Design Consultant: VCA International Inc.

2. WORKS UNDER THIS PACKAGE

a) Provide all necessary plant, materials, labor, supervision including coordination with other
contractors, subcontractors and suppliers including Nominated or directly employed by the Owner
and all other items as required for the complete execution of Works contained within Phase 2
and 3 Slope Protection Works in accordance with the Bid Documents.
b) All such other works as may be shown on the drawings or described in the Specifications or may
be otherwise be in accordance with the Conditions of Contract.
c) Provision of Site Establishment for the whole Project including but not limited to temporary
fencing & gate, access roads, Contractor’s offices, storage yard, staging area, temporary lighting
& power, water, toilet & sanitary facilities, telecommunications, temporary plant & equipment,
project sign board, provision of tapping points for the use of the Nominated & Direct
Subcontractors, safety, signal & warning, security, protection of public roads upon completion of
the Project, Maintenance of facilities & other temporary facilities to complete the works as
described in the Bill of Preliminaries and as directed by the Owner & the Project Manager. The
Bidder is required to submit a comprehensive layout & details for the proposed temporary
facilities for the Project.

d) Provision of sufficient site management team to include internal quality assurance/ quality control
& environmental/ health/ Safety teams for the construction of the Project.

e) The Bidder shall secure the following permits for the construction of the Project:-

• Locational & Barangay Clearance (if required)


• Building Permit
• Occupancy Permit
• Any other statutory/authority requirements to permit construction

f) The duration of the works shall be as follows;

Anticipated Commencement Date: 3rd Week of December 2020


Contract Duration: 3 Months
Estimated Completion Date: 3rd Week of March 2021

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3. OWNER SUPPLIED MATERIALS

The Owner reserves the right to delete any item or materials from the Contractor’s scope of Work
anytime after the Contract Award and have it supplied by the Owner but still to be installed and
commissioned by the Contractor for the same rates included in the Bills of Quantities for “labor”
and its directly proportional amount in “others” if it is deemed advantageous to the Owner.

4. SITE VISIT

4.1 The Bidder is required to visit the Site of the Works and ascertain for himself the conditions,
approaches and all matters and things which may affect his Bid. The cost of such visit shall be
borne by the Bidder. No increase in costs or extension of time shall be considered in the event
the Bidder fails to observe this requirement.

4.2 A specimen form of the Certificate of Site Inspection is included as Appendix “F” which shall be
completed and submitted by the Bidder.

5. BID DOCUMENTS

The documents issued for bidding purposes comprise the following:

a) Instructions to Bidders
b) Form of Bid
c) Contract Agreement
d) General Conditions of Contract
e) Summary of Bid
f) Bill of Preliminaries
g) Trade Preambles and Rules for Construction Measurement
h) Bills of Quantities
i) Bid Specifications
j) Bid Drawings
k) Bid Submission Checklist
l) Appendices A - G inclusive

6. INTERPRETATION OF DOCUMENTS

6.1 Any Bidder who is in doubt as to the exact meaning or interpretation of any part of the Bid
Documents shall immediately seek clarification in writing from:

Rider Levett Bucknall Philippines Inc.


Unit 201, Brain Train Center, B-3 L-11
Sta. Rosa Business Park,
Don Jose, Sta. Rosa City, Laguna

Attention: Francis V. Dela Rosa


Project Quantity Surveyor - CE
E-mail: francis.delarosa@ph.rlb

6.2 Any query must reach the aforementioned not later than November 23, 2020. Copies of Bidder’s
queries and the replies shall be furnished to all Bidders. The Owner reserves the right to alter the
Bid Documents to accord with the queries and extend the date for submission of Bids, if
necessary.

6.3 The Owner shall not assume any responsibility regarding erroneous interpretations or
conclusions by the Bidder out of the data furnished by the Owner.

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7. THE BIDS

7.1 The Bidder shall insert within Appendix A the percentage to be added to the actual cost of any
item included as a Prime Cost Sum to fulfill his obligations under the Contract, if awarded, until
the issuance of the Certificate of Acceptance for the Works as a whole.

7.2 All Bid Documents shall be fully completed, extended and totaled in ink and submitted. The sum
shown on the Form of Bid must be the same as the total of the Summary of Bid.

7.3 The value of any item left unpriced shall be deemed to have been included elsewhere within the
Bid Documents.

7.4 The completed Bid Documents shall be without interlineations or erasures except those required
so as to correct errors made by the Bidder, and where such occur, they shall be initialed by the
Bidder.

7.5 The Bills of Quantities submitted with the bids, shall be used by the Owner as a basis of bid
evaluation, and subsequently during the execution of the Works as a basis for evaluating
accomplishment and for valuing variations.

7.6 Note that the Bills of Quantities has been issued to assist the Bidders in preparing their bids and
shall be used as a guide only, with the Bidders being responsible for checking the contents. The
Bidders are entitled to amend the quantities as they consider necessary to reflect the actual
scope of work contained in the Works.

7.7 Any item not indicated in the Bills of Quantities but necessary to complete the scope of Works
under Phase 2 and 3 Slope Protection shall be the responsibility of the Bidder and is deemed
included in the Total Bid Price.

8. BIDDER’S RESPONSIBILITIES

8.1 The Bidder shall be responsible to carefully examine all the Bid Documents and to have
knowledge of all conditions, local or otherwise, affecting the execution of the Works and to have
determined the facilities available and needed for the Works. Failure to do so shall be at the
Bidder’s risk.

8.2 It shall be the sole responsibility of the Bidder to determine and satisfy himself by such means as
he considers necessary or desirable, as to all matters pertaining to the Works, including the
location of the Site; climatic conditions; the nature and conditions of the terrain; geological
conditions; transportation and communication facilities; the requirements and the availability of
materials, labor, water, electric power and roads; the locations and extent of material sources,
and other factors that may affect the cost, duration and execution of the Works.

8.3 The Bidder shall submit with his bid, a schedule of equipment including a site layout plan for such
as cranes, hoists, storage areas, utility lines, offices, workshops, stores, toilet facilities, access
and egress points, permanent and temporary site roads, fuel storage, batching plant and silo,
temporary elevators, security stations, first-aid facility and parking areas.

8.4 The Bidder shall submit his Construction Methodology with his Bid. This program shall show the
manner and sequence of construction in bar chart form and the critical path shall be identified on
it. It shall indicate the appropriate duration of each activity.

8.5 The Bidder shall be solely responsible for compliance with all acts, laws, codes, decrees and
regulations of the Government of the Republic of the Philippines together with any and all
Authorities having jurisdiction over the Project, the Site, the Works and any matter effecting the
same whether supplied or performed on or off the Site.

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8. BIDDER’S RESPONSIBILITIES (continued)

8.6 If within twenty eight (28) days prior to the date for submission of the bid for the Works and within
the Republic of the Philippines any law ordinance, regulation, or government issuance and the
like, either nationally or locally are introduced which may add or reduce the costs of the Bidder
who may execute the Works the Project Manager will upon receipt of particulars from the Bidder
discuss the same with the Owner and advise the Bidder accordingly.

8.7 The Bidders shall submit a “Sworn Statement of Compliance”, signed on company letter headed
paper, certifying that the bid is fully compliant with the Bid Documents and has taken into
consideration all items issued within the Minutes of Pre-Bid Meeting/s, Bid Bulletins, and all other
Pre-Bid Correspondences. The said Sworn Statement shall be submitted together with the Bid
Documents and shall form part of any eventual Contract. A specimen form of the Sworn
Statement of Compliance is included as Appendix “F”.

9. BID VALIDITY
The Bid shall remain valid for a period of One Hundred and Twenty (120) Days after the Bid
submission date.

10. SUBMISSION OF BIDS


10.1 The date and time for submission shall be disclosed during a Pre-Bid Conference Meeting.

10.2 The completed bid documents together with the Bidder’s additions all as listed within sub-clause
c) below shall be submitted as follows:

a) An outer sealed envelope, containing the four (4) separately sealed envelopes shall be
addressed to:
P.A. Properties - Hankyu Hanshin
Unit 902 9th floor Alabang Business Tower
#1216 Acacia Ave., Madrigal Business Park,
Ayala Alabang, Muntinlupa City 1780

Attention: Atty. Mark Anthony Bayquen


VP- Joint Venture, Land Acquisition and Proj. Doc.

The name of the Project shall be clearly written on it, together with the date and time of
receipt. The Bidder’s name shall NOT be written on this envelope.

b) The four (4) inner envelopes shall have the Bidder’s name and address clearly written on
them, so that late submissions may be returned unopened.

c) One (1) inner envelope clearly marked “1” shall contain the originals of the following:

i) Instructions to Bidders;
ii) A Letter of Certification from the Owner’s approved bonding and/or insurance
company, stating its agreement to furnish an Advance Payment Bond, Performance
Bond, and Retention Bond to the Contractor/Owner, to guarantee the recoupment of
the Advance Payment, the due performance of the Works and fulfillment of the
obligations during the Defects Liability Period by the Bidder respectively upon Contract
Award, including all insurances specified under Clause 2.4 of the General Conditions of
Contract;
iii) Form of Bid;
iv) Contract Agreement;
v) General Conditions of Contract;
vi) Summary of Bid;
vii) Bill of Preliminaries;
viii) Trade Preambles and Rules of Construction Measurement;
ix) Bills of Quantities;
x) Master Construction Program;
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xi) Manpower Schedule;
xii) Cash Flow forecast based on above;
xiii) Contractor’s Equipment Schedule and Site Layout;
xiv) Organization Chart;
xv) List of Domestic Sub-contractors;
xvi) Key Personnel Resumes;
xvii) Construction Methodology;
xix) Site Safety Program;
xx) Sworn Statement of Compliance as per Appendix F;
xxi) Certificate of Site Inspection as per Appendix G;
xxii) Completed BOQ on CD in Excel Format;
xxiii) Bid Submission Checklist duly completed;
xxiv) Appendices A – G inclusive.

All pages as detailed above must be signed / initialed by the Bidder.

d) Each one (1) of the remaining three (3) inner envelopes shall contain photocopies of the Bid
Documents as stated within sub-clause c) above.

10.3 All bidders must also submit (1) flash drive of any capacity containing an excel copy of the
financial bid proposal.

10.4 Bid Documents shall be opened at a date, time and place to be nominated by the Owner. No
revision, reduction, addition, alteration or modification shall be allowed after the date and time of
submission.

10.4 Under no circumstances shall the receiving copy of the letter of Bid state the amount, or any other
details. A simple cover letter will only be acknowledged.

11. BID EVALUATION

11.1 Bids that do not comply with all the conditions and requirements will be rejected. However, the
Owner reserves the right to waive any deviation in the Bid Documents received which do not
affect the substance, price, or validity of the same.

11.2 Conforming Bid Documents shall be checked arithmetically and any error found shall be
corrected, adjustment made either deductive or additive and the Bidder has the option to abide by
his Total Bid Price or revise accordingly.

11.3 Any item found to be over or under-priced shall be adjusted to a fair rate, with the agreement of
the Bidder, and the new rate shall be used for the purposes of evaluating accomplishments and
variations to the Works and for no other purpose. Such rates are to be agreed prior to the signing
of the Contract with the Owner.

11.4 The Owner may request the Bidder to clarify, expand or provide detailed breakdowns of their unit
or lump-sum prices, and in complying with the request the Bidder shall not alter the substance or
price of his Bid.

11.5 The Owner shall have the option to further evaluate and investigate the Bidder’s technical and
financial capabilities to satisfactorily perform the Works and the results of which shall form part of
the award criteria, including, but not limited to, requesting for appropriate information, data,
papers, and documents from the Bidder.

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12. AWARD OF THE CONTRACT

12.1 As soon as possible after Bid Evaluation but not later than the date of bid validity, the Owner shall
notify the successful Bidder that his bid is acceptable, subject to the bidder executing a contract
and obtaining the required bonds. The Letter of Intent/ Notice of Award/to Proceed (hereinafter
referred to as Contract Award) shall constitute a binding Contract, until the formality of signing the
Contract Documents occurs between the successful Bidder and the Owner.

12.2 The Owner reserves the right to reject any or all bids received, or to annul the bidding for any
reason, without incurring any liability to any or all bidders. The Owner also reserves the right to
waive any formality required in the bids received and to disregard any which is, in the opinion of
the Quantity Surveyor, unevenly priced.

13. SIGNING OF CONTRACT DOCUMENTS

Within thirty (30) days of the issuance of the Contract Award, the successful Bidder shall sign,
witness, and date the Contract Documents, which shall be furnished by the Owner. Should the
successful Bidder fail to execute the Contract or fail to obtain the required bonds and insurances,
he would have his bid rejected, and the Owner will then re-commence bidding or will accept the
next acceptable bid.

14. ADVANCE PAYMENT BOND

The Owner shall allow an Advance Payment of twenty percent (20%) of the Contract Sum less
the amount of Provisional and Prime Cost Sums to the successful Bidder provided they furnish
the Owner with an Advance Payment Bond drawn from an Owner-approved bonding or insurance
company. A sample of an Advance Payment Bond is attached hereto and marked as Appendix
“D”.

15. PERFORMANCE BOND

The Performance Bond shall be valid up to one (1) year after the scheduled contract completion,
and shall be extended as necessary for the account of the successful Bidder. Amount of
Performance Bond shall be equivalent to twenty percent (20%) of the Contract Sum of the
successful Bidder. A sample of a Performance Bond is attached hereto and marked as Appendix
“C”.

16. RETENTION BOND

The Owner shall release the total retention sum withheld from interim certificates upon the
issuance of the Certificate of Practical Completion and upon receipt by the Owner of an
undertaking for the Rectification of Defects within the Defects Liability Period and a Retention
Bond drawn from an Owner-approved bonding or insurance company. A Sample of a Retention
Bond is attached hereto and marked as Appendix “E”.

17. INSURANCES

The Contractor shall submit and deliver the Contractor’s All-Risk, Third Party Liability insurance
policies in the amounts as shown within Appendix “A” together with General Liability insurance if
required all of which shall remain in force until the Works are satisfactorily completed and
accepted by the Owner.

18. PRE-BID CONFERENCE MEETING

The Principal and person-in-charge of each bid is required to attend the Pre-Bid Conference
Meeting at a venue, date and time to be specified by the Owner, which shall be advised through a
Bid Bulletin.

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Section 2

Form of Bid
FORM OF BID

For : PHASE 2 AND 3 SLOPE PROTECTION


P.A. PROPERTIES HANKYU HANSHIN

To : ATTY. MARK ANTHONY BAYQUEN


VP- Joint Venture, Land Acquisition and Proj. Doc.

Gentlemen,

Having read and fully understood the Instructions to Bidders, Contract Agreement, Special Conditions
of Contract (if any), General Conditions of Contract, Trade Preambles, Rules of Construction
Measurement, Bill of Preliminaries, Bills of Quantities, Bid Drawings and Specifications and any other
document which we have received in connection with the above-named Contract Package, we, the
undersigned, hereby offer to execute and complete the whole of the Works in total and absolute
conformity with the said Bid Documents for the sum of the Philippine Pesos:
_________________________ ____________________________________ (Php _____________).

If our bid is accepted, we undertake to commence the Phase 2 and 3 Slope Protection, Works on the
date as required by the Owner and to deliver and complete the same as comprised in the Contract,
within the time required by the Owner.

If our bid is accepted, we shall obtain all the Bonds and Insurances which are acceptable to the Owner
and as required by the Bid Documents.

We agree to have our bid remain valid without change for a period of One Hundred and Twenty
(120) Days from the date of submission of bids, and it may be accepted at any time prior to the
expiration of this period.

We understand and accept that the Contract Award shall constitute a binding and legal Contract
between us until a formal Agreement is executed.

We understand and agree that you are not bound to accept the lowest or any bid received, and you
reserve the right to waive any irregularity.

We fully understand all the terms of the bid documents and unconditionally accept and abide by same.

We are,

Yours faithfully,

Name of Bidder : _____________________________________


Registered Address : _____________________________________
Signed by : _____________________________________
Signature : _____________________________________
Date : _____________________________________

Witness Name : ________________________


Signature : ________________________
Address : ________________________
Date : ________________________

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Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils., Inc.
Section 3

Contract Agreement
CONTRACT AGREEMENT
This Contract made and executed by and between::

P.A. Properties Hankyu Hanshin, a corporation duly organized and existing under and by virtue
of the laws of the Republic of the Philippines, with principal office at P.A. Builders, General Malvar
Street Brgy. Tubigan, Biñan Laguna, Philippines, presented in this act by its duly authorized
Attorneys-in-Fact, Atty. Mark Anthony Bayquen (hereinafter referred to as the “Owner”)

-and-

{INSERT COMPANY NAME OF CONTRACTOR}, a corporation duly organized and existing


under and by virtue of the laws of the Republic of the Philippines, with principal office at {Insert
Complete Office/ Business Address of the Contractor} presented in this act by its duly authorized
Attorneys-in-Fact, {INSERT NAME OF CONTRACTOR’S ATTORNEY-IN-FACT NO. 1} and
{INSERT NAME OF CONTRACTOR’S ATTORNEY-IN-FACT NO. 2} (hereinafter referred to as
the “Contractor”)

SETS FORTH THAT:

The Owner desires the following works to be constructed:

Idesia Dasmariñas, a land development project with residential housing, commercial areas and
other amenities (hereinafter referred to as the “Project”) located at Brgy. San Agustin,
Dasmariñas, Cavite (hereinafter referred to as the “Site”), and has caused Drawings and
Specifications to be prepared which show and ascribe the Works to be done. The Contractor shall
undertake the PHASE 2 AND 3 SLOPE PROTECTION, including installation of Owner-supplied
materials; attendance to Nominated Sub-contractors and Suppliers – whichever and whenever
applicable, and coordination with the Owner, its Representative(s), Project Consultants, Other
Contractors and Suppliers directly contracted by the Owner (hereinafter referred to as the
“Works”).

NOW, THEREFORE, for and in consideration of the foregoing the Owner and the Contractor (collectively,
the “Parties”) agree as follows:

1. Contract Documents

The Works shall be commenced and completed in accordance with the terms and conditions of
the Contract Documents listed hereunder, which in the event of any inconsistency or conflict
between or among them, shall have the following order or priority:

a) This Contract
b) Contract Award
c) Bid Bulletins, Minutes of Pre-Bid Meeting(s) and other post Bid Correspondence;
d) General Conditions of Contract;;
e) Specifications;
f) Drawings;
g) Contractor’s Final Proposal dated {Insert date of Contractor’s Final Proposal};
h) Contractor’s Approved Master Construction Program;

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1. Contract Documents (continued)

i) Nominated Sub-contractors and Suppliers’ Approved Construction Program, whenever


applicable;
j) Contractor’s Approved Manpower Schedule;
k) Contractor’s Approved Equipment Schedule and
l) other itemized Bid Documents

2. Scope of Work:

2.1 The Contractor shall undertake the PHASE 2 AND 3 SLOPE PROTECTION contract
package for the Project in strict compliance with the Contract Documents.

2.2 The Contractor shall indemnify and hold harmless the Owner, its agents and employees
from and against all claims in respect of any negligence/ omission, damages, losses and
expenses in case of litigation arising out of the Contractor’s performance of the Works.

3. Contract Period:

3.1 Notwithstanding the date of execution of this Contract, the Works shall commence and be
completed on the date stated within Appendix “A” to this Contract.

3.2 The Contractor acknowledges the fact that Nominated Sub-contractors/ Suppliers, other
contractors, sub-contractors, suppliers, vendors, or even the Owner may carry out works
on adjacent sites or within the Site itself. The Contractor shall coordinate all Site activities
and follow the Owner’s instructions to prevent interference that may adversely affect the
progress of the Works or the Project as a whole.

3.3 Interference with the Works, should it arise, shall be contained, coordinated and remedied
so as not to serve as ground for slowing down, delaying or failing to execute the Works.

4. Contract Sum:

For and in consideration of the construction and completion of the Works in accordance with the
Contract Documents, the Owner shall pay the Contractor the sum of Philippine Pesos: {Insert
Contract Sum Amount in Words} {Insert Contract Sum Amount in Numbers} only (the “Contract
Sum”) under the following terms and conditions:

4.1 The Contract Sum is inclusive of Value-Added Tax (VAT).

4.2 The Contract Sum is a lump sum and fixed price until completion with all quantities and unit
rates guaranteed by the Contractor, and in full compliance with the Contract Documents.

4.3 The Contractor is deemed to have included in the Contract Sum for all labor, overtime,
materials, plant, allowances, and sundries necessary to complete the Works.

4.4 All sums payable to the Contractor shall be paid in Philippine Pesos.

5. Contractor’s Right to Take-Over Nominated Sub-contract/Supplier Contract


Works:

The Contractor shall have the same rights to take over the Nominated Sub-contract/Supplier
Works in the same manner has the Rights of the Owner has according to clause 2.13 of the
General Conditions of Contract subject to agreement with the Project Manager and Owner.

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6. Project Management Team:

The Project Management Team shall consist of the following:

a) The Project Director shall be P.A. Alvarez Properties and Development Corp.
b) The Project Manager shall be P.A. Alvarez Properties and Development Corp.
c) The Construction Manager shall be Rider Levett Bucknall Philippines, Inc.
d) The Architect of Record shall be VCA International Inc.
e) The Design Consultant shall be shall be VCA International Inc.
f) Such other persons or entities to be named by the Owner from time to time during the
Contract Period.

During the Contract Period, and subject to the Contract Documents, the Owner may change the
persons or entities listed above.

The coordination for the Project and the Works shall be in accordance with the Project
Management Plan to be prepared by the Project Manager and approved by the Owner.

7. Notices:

For purposes of the Contract the Parties shall send all written notices required to the following
addresses:

To the Owner : P.A. Properties Hankyu Hanshin


P.A. Builders, General Malvar Street
Brgy. Tubigan, Biñan Laguna, Philippines
Attention: Atty. Mark Anthony Bayquen

To the Contractor : {Insert complete business address of the Contractor}


{ }
{ }
Attention: {Insert Name of Contact Person of Contractor}

Both parties may change the persons authorized to receive notices and such change shall take
effect only on the date of receipt of a notice in writing by one party to the other.

All written communications by the Nominated Sub-contractor/ Supplier to the Owner shall be
coursed through the Contractor.

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8. Other Terms and Conditions:

The other terms and conditions under which the Works shall be constructed and completed are
provided in the other Contract Documents signed by the Contractor and the Owner which form an
integral part of the Contract, and to which reference should be made by these parties for their
other respective rights and obligations.

The Contract Documents specified in Clause 1, shall supersede all other prior communications,
promises, undertakings of whatever nature, whether oral or written, between the parties on the
same subject matter which have not been incorporated into the Contract or attached as part of the
Contract.

IN WITNESS WHEREOF, the authorized representatives of the Parties have caused these presents to be
signed on { } at { }.

{INSERT NAME OF OWNER}


Owner

_____________________________ ___________________________
{INSERT OWNER’S A-I-F NO. 1} {INSERT OWNER’S A-I-F NO. 2}
Attorney-in-Fact Attorney-in-Fact

{INSERT NAME OF CONTRACTOR}


Contractor

_____________________________ ___________________________
{INSERT CONTRACTOR’S A-I-F NO. 1} {INSERT CONTRACTOR’S A-I-F NO. 2}
Attorney-in-Fact Attorney-in-Fact

SIGNED IN THE PRESENCE OF:

___________________________ ________________________

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ACKNOWLEDGEMENT
Republic of the Philippines
{Insert Applicable City for Province} S.S..

I certify that on this day, before me, a notary public duly authorized in the city named above to take
acknowledgements, personally appeared:

Name Government ID No. Date/ Place of Issue

{INSERT NAME OF OWNER} _______________ _______________


Represented by:
{Insert Owner’s A-I-F No. 1} _______________ _______________

{Insert Owner’s A-I-F No. 2} _______________ _______________

{INSERT NAME OF CONTRACTOR} _______________ _______________


Represented by:
{Insert Contractor’s A-I-F No. 1} _______________ _______________

{Insert Contractor’s A-I-F No. 2} _______________ _______________

who were identified by me through competent evidence of identity to be the same persons described in the
foregoing instrument, who acknowledged before me that their respective signatures on the instrument
were voluntarily affixed by them for the purposes stated therein, and who declared to me that they have
executed the instrument as their free and voluntary act and deed and that they have the authority to sign
on behalf of their principal.

This instrument consists of {insert number of pages, in words} {insert number of pages, in numbers}
pages, including the page where this acknowledgement is written {insert:” to which Annexe(s), and have
been attached” whenever applicable}. Each and every page of this instrument has been signed by the
parties and their witnesses.

Witness my hand and seal this ____________________________

Doc.No. { };
Page No. { };
Book No. { }:
Series of { }.

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Section 4

General Conditions of
Contract
GENERAL CONDITIONS OF CONTRACT
for Building and Engineering Works designed by the Owner and Executed in
The Republic of the Philippines

TABLE OF CONTENTS

CLAUSE PAGE NO.

Definitions 3

1 General Conditions 5
1.1 Intent of Contract 5
1.2 Contract Documents 5
1.3 Law, Language and Unit System 5
1.4 Authorized Representative and Communication 6
1.5 Singular and Plural 6
1.6 Clause References 6
1.7 Non-Enforcement 6
1.8 Headings 6
1.9 Timely Manner 6
1.10 Public Relations 6

2 Commencement and Progress of the Works 7


2.1 Owner’s Obligations 7
2.2 Opening a Letter of Credit 7
2.3 Contractor’s Risk, Submittals, Obligations and Responsibilities 7
2.4 Insurances 9
2.5 Bonds and Guarantees 10
2.6 Provision of Payment by the Contractor 10
2.7 Government and Municipality Notices 10
2.8 Commencement of the Works 11
2.9 Materials and Workmanship 12
2.10 Contractor’s Employees 14
2.11 Antiques 15
2.12 Explosives and Firearms 15
2.13 Owner’s Right to Take-Over the Works 15

3 Nominated Sub-contractors/ Suppliers 16

4 Owner’s Contractor’s/ Sub-contractors/ Specialist Contractors/ Suppliers 18

5 Contract Sum 18

6 Variations, Instructions and Orders 18

7 Evaluation of Variations 20

8 Interim Valuations and Payments 20

9 Liquidated Damages 21

10 Extension of Time 22

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CLAUSE PAGE NO.

11 Loss and Expense Caused by Delay 23

12 Force Majeure 24

13 Practical Completion and Partial Possession 24

14 Final Account 25

15 Completion of Defects Liability Period 26

16 Release of Retention 27

17 Termination of Contract - General 27

18 Termination of Contract by Owner 27

19 Termination of Contract by Contractor 29

20 Settlements of Disputes 30

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DEFINITIONS

Within the Contract/ Contract Documents (as hereinafter defined) the following words and expressions shall have
the meanings hereby assigned to them except where the context otherwise requires:

Beneficial Occupancy means such occupancy as is not unduly affected by rectification works for the
practical use intended by the occupant

Bid means the Contractor’s price for the Works including the remedying of any defects all in accordance
with the Contract.

Bills of Quantities means the priced and completed bills of quantities contained within the Contract
Documents.

Certificate of Acceptancemeans the Certificate signed by the Project Manager upon the satisfactory
completion of the Defects Liability Period for the Works pursuant to clause 15.d).

Certificate of Practical Completion means the certificate signed by the Project Manager upon completion
of the Works pursuant to clauses 13.a), b), c) and d).

Construction Drawings means the drawings issued by the Project Manager and marked ‘For
Construction’ to be used as the basis by the Contractor in the execution of the Works.

Contract Award means the Letter of Intent, Notice of Award, Notice to Proceed or any similar document
advising the Contractor that his bid is acceptable.

Contract/ Contract Documents means the Special Conditions of Contract (if any), these General
Conditions, the Technical Specifications, the Contract Drawings, the Bill of Preliminaries, the Bills of
Quantities, the Bid, the Contract Award, the Form of Contract and such further documents as may be
expressly incorporated in the Contract.

Contract Drawings means the drawings, calculations and technical information of a similar intent which
form part of the Contract.

Contractor means the party so named in the Contract, including their domestic sub-contractors together
with all persons employed by the same in connection with the Works.

Contract Period means the period of time stated in Appendix A, or as adjusted in accordance with the
Contract, within which the Contractor must complete the entire Works included in the Contract.

Contractor’s Equipment means all machinery, tools, etc. required for the execution and completion of the
Works including the remedying of defects however excluding such things which will form part of the
permanent Works.

Contract Price means the Contract Sum adjusted by variations, Loss and Expense claims and any other
sums duly authorized by the Project Manager and/or the Owner.

Contract Sum means the sum stated in the Contract for the completed Works including the remedying of
any defects all in accordance with the Contract Documents.

Cost means proper expenditure whether on or off the Site including overheads except where the contrary
is expressly stated. No allowance for Profit is allowable.

Day means a calendar day. All references to days are deemed to include holidays, Saturdays, Sundays
and any days of typhoon or inclement weather unless stated otherwise.

Defects Liability Period means the period stated in Appendix A which commences upon the issuance of
the Certificate of Practical Completion.

Duties, Responsibilities’ and Authorities refers to the Owner’s Representatives’ who have the authority
to perform their obligations, duties and responsibilities impartially as specified in the Contract. Similarly the
appointment of any assistants by them is also authorized.

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DEFINITIONS (continued)

Force Majeure means any act of nature like earthquakes, lightning, war hostilities (whether declared or
not), invasion, acts of public enemies, rebellion, revolution, insurrection, riots, strikes, epidemics, and
quarantine.

Interpretation refers to words importing persons or parties include any corporation, firm and organization
having legal capacity to contract.

Nominated Sub-contractor/ Supplier means a sub-contractor/ supplier selected on behalf of the Owner
but employed by and under the control of the Contractor for the purpose of having such sub-contractor/
supplier undertake a specific portion or supply element of the Works.

Owner means the party for which the Works are being executed.

Owner’s Representative means any person or entity appointed by the Owner to manage and administer
the Works. This includes but not limited to the Project Manager, Architect, Quantity Surveyor and
Engineers.

Owner’s Contractors/ Sub-contractors/ Specialist Contractors/ Suppliers means a party engaged by


the Owner to perform such work or supply materials that do not form part of the Works but are connected
with the Project or the Works.

Plant means machinery, equipment, apparatus and the like incorporated or intended for incorporation into
the Works.

Prime Cost Sum means a sum included in the Contract for works that are known but the value thereof
cannot be accurately ascertained

Project means the entire works on the Site for which this Contract forms part thereof.

Provisional Sum means a sum included in the Contract for works that cannot be fully determined or as a
contingency.

Section means a part of the Works identified in the Contract as such.

Site means the place or area where the Works will be executed.

Specification means the technical specification of the Works included within the Contract and any
modification thereof or addition thereto made under these General Conditions.

Valuation means the Contractor’s application/request for payment for works executed, unfixed materials
on Site together with a proportion of preliminaries properly expended.

Works means the building, structure 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,
including temporary works, improvements or facilities required for the execution and the maintenance of
the building, structure or permanent improvement to be constructed or installed pursuant to the Contract.

Writing means any hand-written, typed or printed communication, including telex, telegram, facsimile and
email and delivered, sent by mail or courier or transmitted as further defined relevant and stated as
applicable to each clause of the Contract.

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1. GENERAL CONDITIONS

1.1 INTENT OF CONTRACT

The intent and spirit of the Contract is to provide for all the Works, as specified and shown and to be
executed professionally with all due diligence and responsibility and to be executed between the Date for
Commencement as defined within clause 2.8 and completed on or before the Date for Completion as
stated within Appendix A.

The Contractor shall execute the Works faithfully and strictly in accordance with every detail for which it is
specifically designed and agrees to furnish everything reasonably and indispensably necessary for the
same to ensure its timely completion and to leave the Works to the entire satisfaction of the Project
Manager and the Owner in accordance with the Contract.

All matters, which may have been omitted from the Contract but may reasonably be inferred to be
obviously necessary for the efficient execution, completion and operation of the Works, shall be deemed
to have been included in the Contract Sum.

If the Contractor is in any doubt as to the exact meaning and intent of any part of the Contract, or finds
any discrepancy in or divergence between the same, he shall immediately inform the Project Manager in
writing, who will issue instruction relative to the query. The Contractor shall be held responsible for any
error and/or loss he may make as a consequence of failing to obtain such meaning or intent, or not
informing the Project Manager of any discrepancy or divergence. The Contractor shall not take
advantage of any apparent error, omission, discrepancy or divergence in, from or between the Contract
Documents.

1.2 CONTRACT DOCUMENTS

Subject to Clause 1 of the Form of Contract, all parts of the Contract, shall be of equal weight and shall
be taken as mutually explanatory of one another.

Four (4) sets of the Contract shall be signed by the parties to the Contract, three (3) furnished to the
Owner, and one (1) to the Contractor for safekeeping.

Upon commencement of the Works, the Project Manager may issue, if deemed necessary, additional
drawings, sketches or details, which may be reasonably necessary to explain or amplify the Contract
Drawings or the Works.

The Contract Documents shall not be used by any party for any purpose other than this Contract.

The Contract Documents shall supersede and supplant all other prior communications, promises,
covenants, and undertakings of whatever nature, on the same subject matter, which have not been
incorporated into the Contract.

No amendments or change in any of the provisions of the Contract shall bind either party unless agreed
to in writing by their duly authorized representatives.

1.3 LAW, LANGUAGE AND UNIT SYSTEM

The Law of the Republic of the Philippines shall apply to the Contract as a whole.

All drawings, designs, specifications, manuals, name plates, markings, instructions, statements,
schedules, programs, notices, documents and all communications concerning the Works shall be in the
English Language.

The metric systems of weights and measures shall be used unless otherwise specified or required in
writing by the Project Manager.

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1. GENERAL CONDITIONS (continued)

1.4 AUTHORIZED REPRESENTATIVES AND COMMUNICATIONS

The Project Manager shall be duly authorized to act on behalf of the Owner with respect to the execution
and supervision of the Works and the Project as a whole. The Project Manager shall also be entitled to
appoint representatives to exercise on his behalf the duties and powers authorized under the Contract.
Such appointment shall be notified in writing to the Contractor.

The representative of the Contractor shall be duly authorized to act on behalf and in respect to any or all
matters relating to the execution of the Works. The Contractor immediately upon Contract Award shall
appoint this representative and request the Project Manager for approval thereof.

Unless otherwise required by the Project Manager, all notices concerning the Works shall be in writing
and sent by fax, telegraph, telex or given either by personal delivery or by registered mail.

1.5 SINGULAR AND PLURAL

Words’ importing the singular also includes the plural and vice-versa where the context requires.

1.6 CLAUSE REFERENCES

All references herein to clauses are those numbered in these General Conditions of Contract and not to
those in any other documents unless otherwise stated.

1.7 NON-ENFORCIBILITY

Non-enforceability of any provision of the Contract Documents shall not affect the 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.

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.

1.8 HEADINGS

The use of headings and subheadings in these General Conditions of Contract shall not be used for
interpreting the construction of the Contract in any way, or limit, modify or increase the responsibilities,
obligations, rights and benefits of the parties or their representatives under the Contract.

1.9 TIMELY MANNER

All information and/or action required by the Contract including the issue of any notice, consent, approval,
certificate or determination shall be acted upon in such timely manner and shall not be unreasonably
withheld or delayed.

1.10 PUBLIC RELATIONS

The Contractor agrees that all public relations matters arising out of or in connection with the Owner, the
Project and/or the Works shall be the sole responsibility of the Owner. The Contractor shall obtain the
Owner’s written approval of any publication, announcement or other type of communication concerning
the Owner, the Project and/or the Works prior to release.

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2. COMMENCEMENT AND PROGRESS OF THE WORKS

2.1 OWNER’S OBLIGATIONS

a) The Owner shall provide the Contractor with two (2) sets of detailed Construction Drawings and
Specifications, one (1) copy of which, together with all subsequent drawings and documents shall
always be kept in the site for use by the Project Director or Project Manager. All documents shall be
returned, if requested to the Owner or Project Manager upon the issue of the Certificate of
Acceptance.

The Contractor shall pay for any additional sets of construction drawings and specifications

b) All information and/or action required by the Contractor or any responsible party involved in the
Works, 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 Works, provided that a written request for
such information or action has been made within a reasonably sufficient time prior to the Works they
will effect.

2.2 OPENING A LETTER OF CREDIT

Subject to agreement between the Owner and the Contractor, the Owner shall have the option to open a
Letter of Credit in favor of a foreign supplier or manufacturer of the Contractor/ Supplier to cover the
importation of materials or plant required for the performance of the Contract Package awarded to the
Contractor or a Nominated Sub-contractor/ Supplier. All costs of such opening shall be deducted from
monies due, or which shall become due, to the Contractor.

2.3 CONTRACTOR’S RISK, SUBMITTALS, OBLIGATIONS AND RESPONSIBILITIES

a) The Contractor shall 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 and sub-soil (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, local socio-political
conditions, national and local government actions and requirements on the Site, the extent and
nature of the Works, and materials necessary for the completion of the 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 (subject as above-mentioned) as to risks,
contingencies and all other circumstances influencing or affecting his Bid.

b) Any information given in relation to the Site and existing utilities, whether contained in the Bills of
Quantities or Specifications or shown on Contract drawings, or otherwise is given in good faith, but
no guarantee is given as to its accuracy. If the information is inadequate or incorrect, or incomplete,
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, or incomplete.

c) The Contractor shall take upon himself the whole risk of executing the Works in compliance with the
provisions of the Contract, and all the materials provided for the purpose of the Contract and all the
Work executed by him under the Contract, including Construction Equipment shall be at his own risk
until Practical Completion of all portions of the Works, subject to any other provisions of the Contract.

d) If at any time prior to the issue of the Certificate of Acceptance and by reason of any accident, failure
or any other event in the Project Manager’s opinion requires urgent repair or remedial work and the
Contractor is unable or unwilling to perform such work then the Project Manager shall be entitled to
employ other persons to complete the same. Should the Project Manager also determine that the
work was the liability of the Contractor then the amount for such work shall be deducted from any
monies due to or become due to the Contractor.

e) The Contractor shall be deemed to have satisfied himself before submitting his bid as to the
correctness and sufficiency of the rates and prices stated by him in the Bill of Preliminaries and Bills
of Quantities which shall (except in so far as it is otherwise provided in the Contract) cover all his
obligations under the Contract.

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2.3 CONTRACTOR’S RISK, SUBMITTALS, OBLIGATIONS AND RESPONSIBILITIES (continued)

f) The Contractor shall, within seven (7) days of Contract Award, submit for approval of the Project
Manager a fully detailed Master Construction Program, in PERT/CPM form, showing each and every
activity and their interdependency on each other. It shall also show any off-site work, which will be
carried out. The Contractor shall update the program monthly or as required by the Project Manager.

g) In addition to the Works specified in the Contract, the Contractor shall design (where there is such
requirement included in the Contract) perform, undertake and submit the following:

i) The timely, proper preparation and submission of six (6) copies of detailed composite utility
drawings and shop drawings based on the latest Construction Drawings and Specifications and
any other drawings necessary for the complete execution of the Works;

ii) The securing, at his own expense, of all necessary permits and licenses that are required for the
execution and completion of the Works and shall submit to the Owner, through the Project
Manager, the original and three (3) copies of the same including the Occupancy Permit. 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 the same shall be deducted from any amounts due or to become
due to the Contractor;

iii) Attend all project meetings that will be required by the Construction and Project Managers and as
specified below:

a) Within twenty-one (21) days of the Contract Award the Project Manager shall convene a
meeting of all parties involved in the Project. The meeting will be the forum for the
Contractor to advise the Owner and Project Manager as to his general plan for the carrying
out of the Works, and to meet and be acquainted with the personnel involved and their
respective duties. The Minutes of said Meeting shall be distributed to all attendees by the
Project Manager.

b) Every week the Project Manager shall convene a meeting on site and in attendance shall be
the Contractor’s senior personnel, the Nominated Sub-contractors/ Suppliers, the Project
Manager, Construction Manager and the Quantity Surveyor. The Owner reserves the right to
attend at his option. The purpose of this meeting is to discuss the progress of the Works
and the resolution of any problems hindering the progress. Other matters shall be taken up
as required. The minutes of this meeting shall be distributed by the Project Manager as soon
as possible after the meeting date but not later than two (2) days prior to the next meeting.
The minutes of this meeting shall be deemed true and accurate if not objected to in writing
within seven (7) days from receipt thereof by Contractor.

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2.3 CONTRACTOR’S RISK, SUBMITTALS, OBLIGATIONS AND RESPONSIBILITIES (continued)

iv) Monthly Progress Reports (five (5) copies), including the following:

- The true progress of the Works


- Particulars of deviations from the approved Master Construction Program
- Circumstances adversely affecting work performance
- Particulars of remedial action taken or to be taken in respect of the circumstances
adversely affecting the Works
- Imported Materials (logistics and shipping), (if any)
- Expected delivery dates of imported materials in the next three (3) months
- Requests for Information (RFI) Summary/ Status
- Submittals Summary/ Status
- Instructions/ Variation Orders Summary
- Updates on Nominated Sub-contractors/ Suppliers
- Copy of the Master Construction Program with proposed schedule which highlights
changes for the Project Manager’s approval
- Progress for the month in terms of percentage complete
- Register of Staff and labour including grades employed on and off Site
- Off-Site Works
- Schedule of construction equipment on site
- Key decisions required from the Project Manager and/or consultants
- Major milestones/ events for the next month
- Contractor’s claims made
- Requests for Extension of Time, if any
- Notice of any intended contractual claims.
- A narrative of the previous month’s events
- Photographs (colored)

h) The Contractor shall provide a sufficient number of Time Recording machines including insert cards
for all personnel for which the Contractor is responsible including those personnel employed either as
a Nominated and/or Domestic Sub-contractors for the entire duration of the Works including any
extended period as the Contract dictates.

2.4 INSURANCES

Without limiting his obligations and responsibilities under the Contract, the Contractor shall effect and
maintain the following insurances;

i) Contractor’s All Risk Insurance : The Contractor shall submit and deliver this policy in an amount
equivalent to the Contract Sum for the purpose of insuring against loss and damage caused by fire,
storm, typhoon, tempest, lightning, floods, earthquake, aircraft or anything dropped there from, aerial
objects, riots and civil commotion for at least the full reinstatement value thereof of all work executed
and all unfixed materials and plant 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 Contractor or any
domestic sub-contractor, and shall keep such work, materials and plant insured until the Works are
completed and accepted by the Owner. The insurance coverage shall include Third Party Liability
coverage of at least Pesos: FIVE MILLION (PHP 5,000,000.00), single limit, for death, bodily injury,
sickness and disease and property damages. The Contractor shall present and deliver these
insurance policies to the Owner within ten (10) days of the Contract Award, and the same shall
remain in force until the Works are satisfactorily completed and accepted by the Owner.

ii) Any other insurances required by law, be said law enacted prior to or after the Contract Award.

The Contractor shall be responsible for the payment of all premiums and for keeping all insurances
maintained. With the exception of the Third Party Liability Insurance, which shall be valid until the
Certificate of Acceptance is issued; all policies should be maintained until the issuance of the
Certificate of Practical Completion.

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 or to become due to the Contractor the cost of said insurance.

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2.4 INSURANCES (continued)

All insurances shall be with insurers approved by the Owner and the premium receipts and
policies must be deposited with the Owner.

The Contractor shall ensure that the reinstatement of the works are to a quality satisfactory to
the owner, and that amount insured covers all penalties set down by Government Authorities
as a result of any construction failure.

2.5 BONDS AND GUARENTEES

a) The Contractor shall submit to the Owner an Advance Payment Bond in the amount equal to the
Advance Payment to guarantee the recoupment by the Owner of the amount of the Advance
Payment given to the Contractor. This will be in a format acceptable to the Owner and from a
reputable insurance/bonding company acceptable to the Owner.

b) The Contractor shall obtain and pay for a Performance Bond in the form of a guarantee from a
reputable insurance/bonding company acceptable to the Owner, to jointly and severally bind with the
Contractor and the surety company to the Owner in the amount specified in Appendix A, for the due,
proper and faithful performance of the Contract. The insurance/bonding firm and the Contractor shall
be released from their obligations one (1) year after the issuance of a Certificate of Practical
Completion or the issuance of the Certificate of Acceptance of the Works whichever is the latter and
upon receipt from the Contractor a Statement confirming that the amount stated therein represents
the full and final sum due to the Contractor in respect of the Contract.

c) The Owner shall afford the Contractor the advance payment, interest free, upon the issue of the
Contract Award or the signing of the Contract, provided that the Owner has received all relevant
insurances and a notarized copy of the Performance Bond which shall jointly and severally bind the
Contractor and the Surety to the Owner, Advance Payment Bond, and insurance policies as required
by this Contract, and as applicable an acceptable guarantee issued by a reputable insurance/bonding
firm acceptable to the Owner, where applicable in the total amount of the relevant advance payment.
Said guarantee shall remain in force until the advance payment has been fully repaid. The costs of
providing the bonds shall be borne by the Contractor. The value of the Advance Payment and Bond
is stated in Appendix A.

d) The advance payment will be made to assist the Contractor in mobilizing resources for this Contract,
and shall not be used for any other purpose, and if so used it should become repayable immediately.

e) Repayment of the advance payment shall commence with the first interim certificate, and be done
through prorated deductions from the value of interim certificates.

f) In the event of any default in the performance of the Works by the Contractor, whether such default
occurs by itself or in combination with the default of the Nominated Sub-contractors/ Suppliers, the
Owner shall have the right to seek satisfaction from the bonds submitted by the Contractor.

2.6 PROVISION AND PAYMENT BY THE CONTRACTOR

Unless otherwise clearly and specifically provided in the Contract, the Contractor shall provide and pay
for all labor, materials, plant, tools, machinery, water, electricity, oil, fuel, utilities, transportation and all
other facilities and services, as well as any temporary offices, accommodation and other structures
necessary for proper execution and completion of the Works.

2.7 GOVERNMENT AND MUNICIPALITY NOTICES

a) The Contractor shall pay for any and all fees and charges imposed under any act, decree or
ordinance of the national and/or local government or their instrumentalities and agencies as well as
the rules and regulations of any company furnishing utilities in respect of the Works.

b) The Contractor shall comply with and give all notices required by any act, decree or ordinance issued
by the national and/or local government or their instrumentalities and agencies as well as the rules
and regulations of any company furnishing utilities which has jurisdiction over the Site or the Works,
or with whose systems the same are or will be connected.

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2.7 GOVERNMENT AND MUNICIPALITY NOTICES (continued)

c) The Contractor shall ensure timely orders; instructions and requests are issued to any government,
instrumentalities, agency or company providing services and/or utilities to or for the Works to ensure
that no delay occurs to the Completion Date. The Contractor will be held totally responsible for any
and all delays caused by or due to delays by any government, instrumentalities, agency or company
providing services and/or utilities.

2.8 COMMENCEMENT OF THE WORKS

The Contractor shall commence the Works on the date stipulated within Appendix A and/or within seven
(7) days of receipt from the Project Manager of the Contract Award whichever is the sooner.

The Contractor shall proceed with the Works expeditiously and without delay.

Contractor’s Equipment

The Contractor’s Equipment and the like when delivered to the Site shall be deemed to be for the
purpose of the execution of the Works and therefore shall not be removed from the Site without the prior
approval of the Project Manager.

The Contractor together with Nominated Sub-contractors/Suppliers shall only bring to the Site hired
equipment, if any, where there is an agreement that in event of the Contractor and/or Nominated Sub-
contractors/ Suppliers default on the Contract the Owner and/or the Project Manager may continue the
hire on the same basis as the Contractor/ Nominated Sub-contractor/ Supplier including rates and prices
to ensure the execution and completion of the Works together with the remedying of any defects. The
Owner and/or Project Manager undertake to pay all hire charges in respect thereof and these will be
included as necessary for completing the Works as the Contract demands to ascertain the amount for
the Works as a whole. Any additional amount for the completed Works which exceeds the sum payable
to the Contractor as if he had completed the same shall be deemed a debt by the Contractor and due to
the Owner/ Project Manager.

Setting Out

The Contractor shall be responsible for accurately setting out the Works from drawings supplied by the
Project Manager, to the lines and levels as directed, and shall at his own expense correct any error
arising from his own inaccuracy.

Access to the Site and the Works

The Contractor is responsible for the provision of access to the site including temporary rights of way and
the like together with any other means of access or any other facility required by him for the execution of
the Works and all costs, fees and charges shall be borne by him.

At all reasonable times the Owner and all those employed or authorized by him, including but not limited
to the Project Manager, Architects, Quantity Surveyors, Consultants, Sub-contractors/ Suppliers, Testing
Agencies and their authorized staff shall have access to the Works and any other areas (including those
outside the Site) where the Contractor is performing work in connection with the Contract.

Obstruction Avoidance

During the execution of the Works the Contractor shall keep the entire Site reasonably free from all
unnecessary obstructions and shall move or dispose of any/all obstructions, Contractor’s Equipment and
surplus materials.

Safety and the Environment

In addition to the Contractor’s obligations to the Owner and all other parties in the Contract or connected
to or venturing on to the Works and/or the Site the Contractor shall ensure general safety, security,
cleanliness and sanitation until the Works are completed and accepted by the Owner.

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2.8 COMMENCEMENT OF THE WORKS (continued)

Contemporary Records

For the duration of the Contract the Contractor and Nominated/ Sub- contractor/ Suppliers shall keep
contemporary records in sufficient details as necessary to support any entitlement to which the
Contractor and/or Nominated Sub-contractor/ Suppliers considers themselves entitled to. These
records shall be preserved and available at any reasonable time for audit including the right to photocopy
or reproduce any or all documents in respect of the Contract and the Works.

Project Manager’s Approval

The approval by the Project Manager of any Design, Drawing, Program, Material submission or any other
approvals shall not relieve the Contractor of any duties or responsibilities under the Contract. The issue
of the Certificate of Acceptance is the only approval acknowledged as final acceptance.

Contractor’s Liability

The Contractor shall be liable for, and shall indemnify the Owner against, any expense, liability, loss or
claim or proceedings whatsoever in respect of personal injury or death of any person whomsoever arising
out of, or in the course of, or caused by the carrying out of the Works.

The Contractor shall be liable for, and shall indemnify the Owner against, any expense, liability, loss
claim or proceedings in respect of any harm or damage whatsoever to any property real or personal
including, but not limited to, the Works and all materials and goods for incorporation therein insofar as
such harm or damage arises out of, or in the course of, or by reason of the carrying out of the Works

2.9 MATERIALS AND WORKMANSHIP

All materials and plant incorporated in the 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 follow internationally accepted standards to the best modern practice and proven
technology for the completion of the high grade required, notwithstanding any omission from the Contract
Documents.

Where a name of any proprietary article or any firm is included in the Specification and/or Bills of
Quantities, it is to be understood as ‘read only’ and an indication of the class or quality of materials and
workmanship required.

Quantities and Dimensions

The Contractor shall not order any materials based on the Bills of Quantities, but shall measure his
requirements from the Construction Drawings. Figured dimensions on Drawings shall be taken in all
cases.

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 Manager for resolution.

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 work shall be borne by
the Contractor.

Patent Rights, Royalties and Indemnity

The Contract Sum shall be deemed to have included all amounts payable for intellectual property rights
on or in respect of the goods, materials and plant, used in the Works or any parts thereof; and the
Contractor shall indemnify and keep free and harmless exempt the Owner against all actions and claims
arising out of the use of and/or exercise of any invention or other intellectual property rights by reason of
purchase, possession or the use of such goods, materials and plant.

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2.9 MATERIALS AND WORKMANSHIP (continued)

Samples

The Contractor shall submit two (2) samples, free of charge for all materials to be incorporated into the
Works, for the Project Manager’s approval, prior to ordering the said materials. However, the approval of
same does not relieve the Contractor from his express obligation to provide satisfactory materials.
Materials found to be non-conforming to that specified or approved shall be removed from Site
immediately, and replaced with approved materials;

Testing

The Project Manager may require materials, plant and workmanship to be inspected and/or tested either
at the place of production, fabrication, assembly or on Site. The Contractor shall provide sufficiently
qualified persons together with such equipment, instruments, electricity and fuels to perform such tests to
the satisfaction of the Project Manager. The costs of such tests are deemed to be included in the
Contract Sum.

The Contractor and the Project Manager shall agree on the arrangements for any such tests. If the
Project Manager or his representative, without notice does not attend, the Contractor shall continue with
the tests and issue the test certificates to the Project Manager within three (3) days of each test.

The Project Manager may require tests to be repeated prior to the issuance of the Certificate of Practical
Completion. The results of such tests shall be compared with the original test results by the Project
Manager and after consideration of the Owner’s use, (if any); of the Works or part thereof so tested the
Works shall be accepted or rejected and remedial work and/or replacement instructed

The Contractor shall furnish the Project Manager, with all test certificates, warranties, guarantees and the
like in respect of plant, materials, structures and workmanship showing compliance with the standards
required. These warranties and guaranties shall be handed over to the Project Manager, and be in favor
of the Owner upon Practical Completion of the Works.

Rejection

If the Project Manager rejects any material, plant or workmanship upon inspection or testing then the
Contractor shall within the shortest possible time take whatever remedial action as is necessary to
ensure that the same complies with the requirements of the Contract. The Project Manager may
formulate charges for any repeated testing and the same shall be deducted from the Contractor
accordingly.

The Project Manager is authorized to issue instructions for the removal, replacement and/or re-erection
of any part of the Works which in his opinion are not in accordance with the Contract.

If the Contractor should fail to perform and complete such instruction in a timely manner then the Project
Manager may employ another party and the total sum payable for this work will be deducted from any
monies due or to become due to the Contractor.

Work to be Concealed

The Contractor shall give the Project Manager a minimum of two (2) working days written notice, prior to
covering up or concealing any work. Any work covered up or concealed without such notice shall be
opened up, reinstated and made good by the Contractor at his own expense.

Subletting

The Contractor shall not sublet the whole or any part of the Works, without the prior written consent of
the Project Manager. 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 Domestic Sub-contractor as
fully as if they were the acts, defaults or neglects of the Contractor.

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2.9 MATERIALS AND WORKMANSHIP (continued)

Subletting (continued)

No contractual relationship shall exist between the Owner and the Domestic Sub-contractor of the
Contractor as a result of the above sub-contract. Should a Domestic Sub-contractor given prior
approval, prove to be unsuitable for performance of his portion of the Contract, the Project Manager may
direct the replacement of the said Sub-contractor, and the Contractor shall immediately comply with such
direction

2.10 CONTRACTOR’S EMPLOYEES

a) All employees of the Contractor assigned to the execution of the Works shall, at all times, be
identified and considered as his employees under his administrative control and complete
supervision, and shall at no time be considered as employees of the Owner or any of the authorized
representatives of the Owner.

b) The Contractor shall obtain and furnish necessary security clearance and other documents for his
employees performing the Works. None of such employees, whatsoever including senior staff, shall
be allowed to live on the Site or the Works.

c) The Contractor and his employees shall conform to all applicable laws, regulations, and ordinances,
and shall promptly correct any violations brought to his attention or observed.

d) 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 all laws and customs, and conform to a high standard of moral and ethical
conduct. The Contractor’s senior staff must be proficient in the English language, both in written and
oral communications.

e) Unless otherwise prohibited by the Owner or the appropriate governmental authority, the Contractor
may execute the Works at night or on Sundays or holidays and the Contractor shall ensure sufficient
numbers of employees are available at these times and/or days.

f) The Contractor agrees, upon written request from the Project Manager and after discussion with him,
to terminate the employment of any of his employees performing the Works, if the Project Manager
considers such termination necessary to protect the interest of the Owner and the Works. The
Contractor shall bear all expenses brought about by such termination and shall provide a competent
person for replacement, at his own expense. The person so terminated shall not be re-employed on
the Site in any capacity.

g) The Contractor shall provide sufficient numbers of technical assistants, skilled, semi-skilled and un-
skilled workers as necessary for the proper and timely execution of the Works.

h) The Contractor shall observe the requirements of the Philippine Labor Code, Social Security,
PhilHealth and Pag-Ibig laws and any other law and/or regulation on employment or employee
welfare and benefits issued by the national or local government for the duration of the Contract and
the Contractor shall provide evidence of such compliance.

i) It shall be understood, however, that stoppage of the execution of the Works at night or on holidays
or Sundays shall not be a ground for any additional cost claim to the Owner or extension of any date
for the completion of the Works or portion thereof. The Contractor shall execute the Works, using his
best skill and attention. The Contractor shall be solely responsible for all installation means,
methods, techniques, sequences and procedures and for coordinating all portions of the Work under
the Contract, and should comply with performance, specifications, installation and application
procedures as called for by the product manufacturers.

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 of or his relationship with his employees.

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2.10 CONTRACTOR’S EMPLOYEES

k) Furthermore should any of the Contractor’s employees commit or attempt any act such as but not
limited to corruption, bribery, fraud, dishonesty, fraudulent concealment, deceit, theft, violence on or
off the Site the employee shall be removed from the Site and refused re-entry and the appropriate
authorities informed of the event.

l) No employer-employee relationship exists between the Owner and the Contractor’s workers. The
Contractor shall bear full responsibility for complying with the required labor laws with respect to its
employees working on the Contract. 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.

2.11 ANTIQUES

Should the Contractor find, uncover, or excavate, any antiques, or other things 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 Manager of said find, and request for directions. When such find or discovery occurs, the object
shall, either immediately or subsequently after proper excavation either by others or under instructions,
be handed over to the Owner.

2.12 EXPLOSIVES AND FIREARMS

a) The Contractor is informed that explosives shall not be allowed on the Site. Firearms are not allowed
on the Site, save for those carried by authorized security guards.

b) Any person in possession of either explosives and/or a firearm, other than those so authorized to do
so, shall be instantly dismissed, and shall not be allowed to enter the Site thereafter.

2.13 OWNER’S RIGHT TO TAKE-OVER THE WORKS

a) If, at any time within the Contract Period the Contractor incurs a slippage of twenty one (21) days
from the progress indicated in his Master Construction Program, the Contractor is required to submit
to the Project Manager within three (3) days a catch-up program, including the required resources to
enable the Contractor, to get over the delays or slippage incurred. The intention of this clause is not
to extend the Date for Completion or to accelerate the Works but to enable the Contractor to perform
and complete the balance of Works within the remaining Contract Period.

b) Should the Contractor fail to perform in accordance with the catch-up program within seven (7) days
after the Contractor was required by the Project Manager to comply with the same, including the
required resources to perform the same, to get over the delay/slippage incurred, the Owner has the
right to take the following courses of actions:

i) Take over certain portions of the Works as deemed necessary;

ii) Stop the Works by giving Notice to the Contractor and take over the remaining Works. The take-
over of the Works by the Owner may be performed either by employing another contractor to
complete the Works or employing in-house organizations to undertake and complete the balance
of the Works. Resources of the Contractor shall be under the disposition of the Owner for use for
the Works;

iii) Terminate the Contract in accordance with clause 18.

c) All costs incurred by the Owner in undertaking any of the above courses of action shall be deducted
from the account of the Contractor.

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3. NOMINATED SUB-CONTRACTORS/ SUPPLIERS

a) The Project Manager shall have the discretion to choose sub-contractors/ suppliers to perform
specific work or supply materials or plant for the Works, wherein: a certain item of work or specific
plant or materials are identified in the Contract Documents as to be performed or supplied by a
Nominated Sub-contractor/ Supplier, or where the work to be performed by a particular sub-
contractor or supplier cannot be sufficiently nor precisely described for pricing purposes at the time of
the bidding or negotiation, the Project Manager shall have the right to select a sub-contractor/
supplier to carry out work and/or supply plant or materials so described.

b) In the event that the Project Manager elects to designate certain sub-contractors and/or suppliers to
undertake specific items of work or to supply specific plant/ materials and the Contractor accepts and
approves the nomination of these sub-contractors and/or suppliers, the Contractor shall become fully
responsible for the Nominated Sub-contractors/ Suppliers and for any default or breach of contract
on their part in the same way and to the same extent that the Contractor is liable for his performance
of the Works or those of his domestic sub-contractors. In all cases, the Owner shall in no
circumstance be liable to the Contractor for the default of any Sub-contractor/ Supplier Nominated or
otherwise. Without prejudice to the generality of the foregoing, the Contractor shall be deemed to
have accepted as its own responsibility under the Contract Documents all the obligations expressed
or implied, undertaken by Nominated Sub-contractors/ Suppliers under their respective sub-
contracts, including any obligations as to the design, suitability, quality or performance of their work,
materials or plant, or in regard to providing design services and whether or not such obligations are
expressly mentioned or repeated in the Contract Documents. In particular, in cases where the Owner
relies, and having regard to all the circumstances may be reasonably expected by the Contractor to
have relied upon the skill and judgment of a Nominated Sub-contractor/ Supplier for the design or
suitability of the latter’s work, materials or plant, the Owner shall for the purposes of the Contract
Documents be deemed to have so relied upon the skill and judgment of the Contractor.

c) Upon the acceptance of the designation of the Nominated Sub-contractor/ Supplier by the
Contractor, the latter shall forthwith enter into a sub-contract/ supply contract with the Nominated
Sub-contractor/ Supplier in accordance with the terms (if any) agreed upon between the Owner,
Contractor and Nominated Sub-contractor/ Supplier, which shall include the following :

i) The Nominated Sub-contractor/ Supplier shall carry out and complete the sub-contract work/
supply in every respect to the reasonable satisfaction of the Contractor and the Project Manager.

ii) The Nominated Sub-contractor/ Supplier shall observe, perform and comply with all the
provisions of the Contract Documents as far as they relate and apply to the sub-contract work/
supply.

iii) The Nominated Sub-contractor/ Supplier shall indemnify the Contractor against the same
liabilities in respect of the sub-contract work/ supply which the Contractor is liable for under the
Contract Documents.

iv) The Nominated Sub-contractor/ Supplier shall indemnify the Contractor against claims arising
from any negligence, omission or fault of such Nominated Sub-contractor/ Supplier.

v) The Nominated Sub-contractor/ Supplier shall indemnify the Contractor against all loss and
expenses caused by delay, breach or failure to perform by the Nominated Sub-contractor/
Supplier.

vi) The work of the Nominated Sub-contractor/ Supplier shall be completed within the period
required by the Contractor, and any delay in the completion of the sub-contract work/ supply
arising from the negligence, fault or omission of the Nominated Sub-contractor/ Supplier shall
result in liquidated damages proportionate to the contract price of the sub-contract work.
Payment of liquidated damages by the Nominated Sub-contractor/ Supplier shall not prejudice
the right of the Contractor to claim for other damages caused by the Nominated Sub-contractor/
Supplier’s failure to perform its work.

vii) The Nominated Sub-contractor/ Supplier shall submit the bonds and insurance required under
the relevant clauses of the Contract Documents and/ or the Nominated Sub-contract/ Supply
Documents.

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3. NOMINATED SUB-CONTRACTORS/ SUPPLIERS (continued)

viii) The Nominated Sub-contractor/ Supplier shall be responsible for securing, at his own expense,
all necessary permits that are required specifically for the execution and completion of the Sub-
contract Works/ Supply as described within clause 2.7.

d) The Owner shall not require the Contractor to enter into a Nominated Sub-contract/ Supply contract
with any sub-contractor against whom the Contractor has made a reasonable objection except that
the Contractor shall not object to any sub-contractor/ supplier identified in the Bills of Quantities. The
Contractor shall provide such information as the Project Manager may reasonably require in relation
to any objection, which they make under this sub-clause. The decision of the Project Manager as to
whether any objection is reasonable shall be final and conclusive and not subject to Arbitration or
Litigation.

e) Once the Contractor has entered into a contract with a Nominated Sub-contractor/ Supplier it shall
not terminated or assigned without the agreement of the Project Manager. Where the Project
Manager has agreed to the termination of the Nominated Sub-contract/ Supply Contract, the Project
Manager shall as soon as reasonably practicable either nominate a replacement Nominated Sub-
contractor/ Supplier or direct the Contractor to complete the work or supply in question with their own
resources or by a sub-contractor of their own choice, approved by the Project Manager.

f) If a Nominated Sub-contract/ Supply Contract is terminated or assigned, the Owner shall not be
required to pay the Contractor any greater sums than would have been payable if termination or
assignment had not occurred.

g) The Contractor shall submit with each application, evidence that Nominated Sub-contractors/
Suppliers valuations included in the last Interim Certificate have been paid. The Owner reserves the
right to make direct payments to the Nominated Sub-contractors/ Suppliers in the event the
Contractor defaults on payment, or is late in paying or unreasonably withholds monies. Such sums
shall be recovered by the Owner from monies otherwise due to the Contractor.

h) The Nominated Sub-contractor/ Supplier shall indemnify the Contractor against all loss and expenses
caused by delay, breach or failure to perform by the Nominated Sub-contractor/ Supplier. The
Contractor will not be reimbursed by the Owner due to any default, delay, breach or failure to perform
by the Nominated Sub-contractor/ Supplier.

i) If the Project Manager wishes to secure final payment to any Nominated Sub-contractor/ Supplier
before final payment is due to the Contractor, and if such Nominated Sub-contractor/ Supplier has
satisfactorily indemnified the Contractor against any defect or unsuitability subsequently appearing in
their work, then the Project Manager may in an Interim Certificate to the Contractor include an
amount to cover such final payment, and upon payment by the Owner the Contractor shall pay the
full amount so certified to the Nominated Sub-contractor/ Supplier. Upon such final payment the Limit
of Retention under these Conditions shall be reduced proportionately to the value of the Works so
certified compared with the then Contract Price for the whole of the Works. The Owner’s remedies in
relation to defective works shall remain unaffected.

j) The Contractor shall provide supervision, coordination and provision of attendance together with the
following services or facilities, free of charge, and shall be fully responsible for the Works of the
Nominated Sub-contractors/ Suppliers, so as not to hinder the program of their Works and the
Contract as a whole;

i) space in the building under construction or on the Site to allow them to erect their own offices,
amenities and warehouses with provisions for adequate security for the Site;

ii) use of roads and working space on the Site for access to their respective work with due regard to
the nature of such work;

iii) use of such ladders or scaffolding as may have been provided or erected by the Contractor;
provided that, such use shall be at the convenience of the Contractor and subject to its prior
agreement; provided further that, the Contractor shall be under no obligation to retain such
ladders or scaffolding for a period longer than is necessary for its own use;

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3. NOMINATED SUB-CONTRACTORS/ SUPPLIERS (continued)
iv) use of mess rooms, latrines and all other facilities of the site, provided that the Nominated Sub-
contractor/ Supplier provides reasonable assistance in maintaining these facilities clean and tidy;

v) tapping points for power and water; provided that, the consumption of the same shall be paid for
by the Nominated Sub-contractor/ Supplier directly to the Contractor;

vi) facilities for unloading, hoisting and storing materials, returning packing materials and placing in
position of materials; provided that, if the load of the materials to be hoisted exceeds the lifting
capacity of the Contractor’s hoisting facilities, the Contractor will not be required to provide for
additional facilities specifically for such materials, and the Nominated Sub-contractor/ Supplier
may be required to either disassemble the materials or plant to be hoisted to reduce their load at
any one time or provide their own equipment to handle the load requirements of the materials to
be hoisted

vii) coordination with respect to provision for necessary facilities for cutting away, making good,
covering up and protecting their work for the entire duration of such work, including the
necessary removal and disposal off Site of rubbish and debris; and thorough cleaning of affected
areas within the Site up to the completion of the Works;

viii) removal of rubbish from the Works, provided that the Nominated Sub-contractor/ Supplier will
deposit all rubbish, crates, drums etc. at positions on each floor to be indicated by the Contractor;
and

ix) use of the personnel and material elevators for their works.

k) Nominated Sub-contractors/ Suppliers shall abide to the same regulations as established for Site
Safety and Obstruction Prevention (hereinafter referred to as the “House Rules”) provided by the
Contractor to ensure general safety, security, cleanliness and sanitation of the site during the
construction period up to its completion and acceptance by the Owner.

4. OWNER’S CONTRACTORS/ SUB-CONTRACTORS/ SPECIALIST CONTRACTORS/


SUPPLIERS
The Owner reserves the right to directly employ other Contractors/ Sub-Contractors/ Specialist
Contractors/ Suppliers, artists, or tradesmen, to carry out work on the Site but not forming part of this
Contract and shall require them to abide by the “House Rules”. The Contractor shall coordinate and
afford such persons the full facilities of the Site and access to the Works, free of charge so as not to
hinder their progress or the progress of the Project as a whole.

5. CONTRACT SUM

a) Any error in quantity or omission of items from the Bills of Quantities shall not vitiate the Contract and
shall not entitle the Contractor to any adjustment in the Contract Sum, as he is deemed to have
satisfied himself as to the accuracy of the quantities at the bid stage. Any error in description in the
Bills of Quantities shall not vitiate the Contract, but shall be corrected to comply with the drawn and
specified quality. No adjustment in the Contract Sum or Completion date will be made due to any
error in rates, calculation or computations made by the Contractor.

b) The Contractor shall issue to the Project Manager details regarding the breakdown of any lump sum
included within Contract within seven (7) days from the receipt of a request to provide.

6. VARIATIONS, INSTRUCTIONS AND ORDERS

a) The quality and quantity of the Works included in the Contract Sum shall be deemed to be those,
which are set out in the Contract Drawings, Specifications and Bills of Quantities. Bills of Quantities
shall NOT be subject to final re-measurement by the Quantity Surveyor during the actual execution of
the Works nor upon its completion, except however whenthere exist quantities or works marked as
“Provisional Sums” or “Prime Cost Sums”.

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6. VARIATIONS, INSTRUCTIONS AND ORDERS (continued)
b) The payment of the portion of the Contract Sum which is described in the Bills of Quantities as
Provisional Sums and/ or Prime Cost Sums shall be made to the Contractor provided the Contractor
has promptly notified and requested approval from the Project Manager in writing in regard to the
expenditure of such sums, use of materials and/ or execution of work so described in the Bills of
Quantities. The Project Manager shall require the Contractor, within seven (7) days from receipt of
such request, to submit a detailed estimate including quotations, invoices, receipts and the like of the
value of work and time duration for which a Provisional Sum or Prime Cost Sum is included in the
Bills of Quantities.

c) All quantities or items marked “Provisional” will be subject to re-measurement. The re-measured
quantities or items at the rate specified in the Bills of Quantities shall be added to the Contract Sum
and the quantities or items marked “Provisional” are deducted for the purpose of evaluating the
Contract Price.

d) The term “Variation” shall mean alteration, or modification of the design, quality or quantity of the
Works as shown on the Contract Drawings including the sequence and timing thereof, and described
by or referred to in the Specifications; and includes 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
Works.

e) The Project Manager may issue a Variation Price Request to the Contractor requesting an estimate
of the time and cost effect of the same. The Contractor shall provide the necessary information within
five (5) days (or sooner if deemed necessary by the Project Manager). The Project Manager may
then issue to the Contractor a formal variation order stating the price to be paid and time allowed to
comply with the variation order; or the Project Manager may withdraw it.

f) The Project Manager may issue an instruction at any time [even if the Contractor is still executing the
Works after the Date for Completion (or after any extended date) and Practical Completion has not
yet been achieved] and the Contractor is obliged to comply with such instruction. Only the direct time
effect of that specific instruction on Practical Completion will be taken into account by the Project
Manager when calculating any extension of time due to the Contractor. No variation shall vitiate or
invalidate the Contract.

g) Should the Contractor fail to comply with any instruction or order of the Project Manager, within seven
(7) days from receipt hereof, then the Owner 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.

h) All instructions and orders given by the Project Manager 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 would endanger life or limb.

i) The Project Manager reserves the right to vary the Works by addition or deduction and the Rates
and/or Prices included in the Contract shall form the basis of the evaluation of the same throughout
the Contract Period or any extended period thereof. Where no such rates are available then the
provisions of Clause 7. (a) shall apply.

j) The Project Manager reserves the right to delete any items or materials from the Contractor’s scope
of works after the Contract Award and/or during the construction period and have it the same
supplied by the Owner but still installed and commissioned by the Contractor for the same rates
included in the Bills of Quantities for “labor” and its directly proportional amount in “others” if it is
deemed advantageous to the Owner.

k) The Contractor may request variation to the Works which may shorten the Contract Period, reduce
operating and maintenance costs, enhance efficiency or value of the Works or generally be of benefit
to the Owner and if such request is approved, then it shall be issued as a variation by the Project
Manager. No other Variations to the Works will be allowed.

l) When requesting a variation, the Contractor must state the reason for same together with the time
and price consequences. The request shall be submitted with due consideration of the sequence and
timing of the work including the issuance of any revised drawings and specifications.

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6. VARIATIONS, INSTRUCTIONS AND ORDERS (continued)

m) If the request for the variation is received in good time and subsequently approved, then the Project
Manager shall assess the time effect of the variation and the Quantity Surveyor shall assess the cost
effect. The Project Manager shall communicate to the Contractor in writing the result of such
assessments.

7. EVALUATION OF VARIATIONS
a) The unit rates in the Bills of Quantities shall be the basis of valuation of variations. Where work is not
of a similar character or not executed under similar conditions, the unit rates in the Bills of Quantities
shall be the basis of establishing the new rates for the Variation so far as may be reasonable, failing
which a fair valuation thereof shall be made by the Project Manager in consultation with the Quantity
Surveyor.

b) Where the work to be effected under a Variation cannot properly be measured and valued in
accordance with the foregoing rules, the Contractor shall be allowed daywork rates at the rates
specified by the Contractor in the Bill of Preliminaries, or when no such rates have been specified, at
the actual cost to the Contractor plus a margin of 10%, which percentage shall already include the
use of ordinary machinery, tools and existing scaffolding, and for supervision, overhead, profit, plus
value added tax; provided that, day work sheets specifying the time daily spent in executing the
Variation, including the workmen’s names and profession of those employed and the materials used,
shall be delivered for verification to the Project Manager not later than three (3) days after the
execution of the Variation.

c) Work on a daywork basis shall not be carried out without the express written permission of the
Project Manager 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.

d) The Contractor shall submit to the Project Manager a written request to carry out work on a daywork
basis at least three (3) 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, tools
and consumables.

e) 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 Manager, his record of labor, materials
and tools or equipment being used for the work. No payment shall be made for days when the
Project Manager does not receive records.

f) The value of all variations, when valued and agreed between the Quantity Surveyor, Project Manager
and the Contractor, shall be included in interim valuations and the Contract Sum or Price shall be
adjusted accordingly. No addition or deduction in the Advance Payment shall be made as a result of
the evaluation of variations.

g) The value of variations shall not include any amount for direct or indirect loss and/or expense
incurred by the Contractor as a result of delay and/or disruption of the Works, nor shall the value
include fluctuations in prices of materials, labor, tools and/or consumables.

8. INTERIM VALUATIONS AND PAYMENT


a) At the beginning of each month, or as is otherwise agreed, the Contractor shall submit valuations to
the Project Manager who shall forward the same, immediately, to the Quantity Surveyor for
appropriate evaluation.

b) The Quantity Surveyor shall check the Contractor’s valuations and recommend the resulting value
expeditiously that the Project Manager can certify for payment the Interim Certificates to the Owner
within fifteen (15) days of receipt of them, subject to the Contractor providing sufficient information as
requested by the Quantity Surveyor. The fifteen (15) days shall be counted from the receipt by the
Quantity Surveyor of all information requested. Such information shall not be vexatiously or
unreasonably requested.

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8. INTERIM VALUATIONS AND PAYMENT (continued)

c) The value certified for payment in the Interim Certificate by the Project Manager shall be paid to the
Contractor by the Owner within the Period of Honoring Certificates given in Appendix A, commencing
from the date of issue of the Interim Certificate.

d) Interim Valuations shall include the value of Work properly executed or accomplished, the value of
agreed variations to the extent that they have been completed, together with any approved loss and
expense claims.

e) The value of interim valuations shall be reduced by the percentage of retention stated in Appendix A,
and by the repayment of the Advance Payment and by any sums due to the Owner from the
Contractor by virtue of the provisions of this Contract. All payments to the Contractor shall be net of
legally mandated tax withholding.

f) The amount of retention retained by the Owner from Interim Certificates shall not exceed the
percentage or the maximum amount stated in Appendix A, and shall be held in the account under the
name of the Owner only, with any accrued interest to be allocated to the Owner.

g) Payment for work, materials, or Plant in Interim Certificates shall not be construed as proof that the
same is acceptable to the Project Manager or in accordance with the Contract.

h) The Project Manager may make any correction to any previous Interim Certificate if any work or
material so included, in his opinion is not to the standard required by the contract. A reduction or
omission for this occurrence can be made in any Interim Certificate.

i) All valuations shall be supported by an affidavit of the Contractor to the effect that all costs of labor,
materials, services, plant and supplies used in the accomplishment of the works claimed, have been
paid for by the Contractor. Any valuation not supported by this affidavit will not be recommended for
payment. A specimen form of an Affidavit of Lien is attached as Appendix “B”.

j) Materials on Site; for supply and install packages, interim valuations shall account for delivered and
installed materials only. Major materials delivered at site but yet to be installed can be included only
upon formal request of the Contractor and approval of the Owner, the value of which shall be
equivalent to the actual invoiced price of the items/ materials or the material content of the items in
the Bills of Quantities, whichever is lower.

These unfixed items and materials delivered at site shall be properly protected against damage or
deterioration. It is also understood that such unfixed items and materials shall not be removed
except for use upon the Works unless the Project Director has consented in writing to such removal,
which consent shall not be unreasonably withheld.

9. LIQUIDATED DAMAGES
a) If the Contractor fails to achieve Practical Completion of the Works within the Contract Period or any
authorized extended date, then he shall allow to the Owner the amount stated in Appendix A as
Liquidated Damages, for every day or part of a day he continues to execute the Works after the
Contract Period or any authorized extended date. The Owner shall deduct such amount of Liquidated
Damages, from any monies due or to become due to the Contractor up to the limit as specified in
Appendix A. The deduction of such damages shall not relieve the Contractor from his obligations to
complete the 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 same.

b) It is further agreed and understood that the right of the Owner to deduct Liquidated Damages shall be
without prejudice to its rights and remedies against the Contractor as provided for under the Contract
or to which the Owner may be 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/or deed, authorizes the
Owner to deduct any amount that may be due or may become due to the Contractor in accordance
with the Contract and/or to collect such amounts from the Performance Bond and other bonds that
have been submitted by the Contractor in accordance with the Contract.

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10. EXTENSION OF TIME
a) The Contractor shall at all times have the Bid and Master Construction Program on display in his site
office, and have it marked up to date, in addition to issuing updated programs. The Project Manager
shall not consider any request for an extension of the Contract Period unless the foregoing programs
and reports are maintained and are current at the time when the event which gives rise to the request
took place.

b) The Contractor shall carry out the Works strictly in accordance with his approved Construction
Program. If the Contractor is delayed in any area, which may affect Practical Completion of the
Works, then he shall notify the Project Manager immediately giving the reason for the delay and the
actions he proposes to take to mitigate such delay.

c) In the event of a delay occurring which will prevent the Contractor from completing the Works or
meeting any agreed milestones within the Contract Period or any authorized extended period then
the Contractor shall, not later than twenty eight (28) days after the cause of the delay, provide all
supporting documentation substantiating such delay and extra time required. The Contractor must
also provide full details of the effect on the progress of the Works, the effect on the other trades or
activities, including the works of Nominated Sub-contractors/ Suppliers and the steps to be taken by
the Contractor to comply with his obligation to prevent or mitigate the delay. Any delay attributable to
the Contractor, shall not be considered for an extension of time, but shall be taken into account when
the Project Manager is assessing an extension of time request.

d) If the Project Manager considers that the completion of the Works is likely to be, or has been delayed
beyond the Date for Contract Completion stated in Appendix A or beyond any extended time
previously awarded, due to :-

i) Force Majeure directly affecting the Site and the Works;

ii) issuance by the Project Manager of instructions authorizing a variation;

iii) the failure by the Contractor to receive in due time all the necessary instructions, drawings,
details or levels from the Project Manager which were specifically applied for in writing by the
Contractor on a date which having regard to the then date of Practical 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;

iv) delay on the part of artists, tradesmen, or others engaged by the Owner in executing work not
forming part of the Works;

v) opening up for inspection of any work covered up or the testing of any work, materials or plant in
accordance with these Conditions, unless the inspection or test showed that the work, materials
or plant were not in accordance with the Contract, or was as a result of the Contractor covering
up work before giving notice for inspection;

vi) the hoisting of typhoon signal No. 3 or greater by the Philippine Geological and Astronomical
Administration (PAGASA);

vii) the compliance with the provisions of clause 2.11 (Antiques);

viii) any delay or act of prevention on the part of the Owner;

then the Project Manager 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 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 critical path indicated in the latest approved Master
Construction Program.

e) 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.

f) The Contractor shall submit with his notification under sub-clause (a) herein, the measures, means
and methods he proposes to adopt to mitigate delays.

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10. EXTENSION OF TIME (continued)
g) The Contractor shall at all times foresee his requirements and must notify the Project Manager in due
time when he requires drawings, details, instructions, or any other matter necessary to complete the
Works. No extension of time shall be considered if the Contractor fails to observe this sub-clause.

h) The Project Manager reserves the right to delay possession of the Site or portion thereof or access
thereto, or the postponement of any part of the Works, without compensation to the Contractor
except the express provisions for extension of time.

i) The Contractor’s compliance with the requirements of this clause is a condition precedent to its
entitlement to an extension of time.

j) It shall be understood that the Works are to be constructed and carried out in a manner so as not to
cause unnecessary nuisance, noise, dust, smoke or any other inconveniences to nearby building
occupants or residents and the contractor shall employ processes, methods, and equipment to
mitigate such disturbances. Stoppage or deferment of the Works in this regard shall not be a ground
for any additional cost claim to the Owner or extension of any date specified herein for the completion
of the Works or portion thereof.

11. 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;

i) issuance by the Project Manager of instructions authorizing a variation;

ii) the failure by the Contractor to receive in due time all the necessary instructions, drawings,
details or levels from the Project Manager 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;

iii) delay on the part of artists, tradesmen, or others engaged by the Owner in executing work not
forming part of the Works;

iv) opening up for inspection of any work covered up or the testing of any work, materials or plant in
accordance with these General Conditions, unless the inspection or test showed that the work,
materials or plant were not in accordance with the Contract or was as a result of the Contractor
covering up work before giving notice for inspection;

v) any delay or act of prevention on the part of the Owner.

He shall notify the Project Manager of the same within fourteen (14) days of such occurrence, and
provide fully substantiated documentation within twenty eight (28) 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.

b) If the written application is made within the time specified, then the Project Manager 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 interim valuations and the Contract Sum or Price shall be
adjusted accordingly. No addition to the Advance 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 being
accepted for consideration. Notification only of a future intention to submit a claim will not be
accepted as complying with the requirement of this clause. Furthermore, if the Contractor fails to
comply then his entitlement to payment thereof will be limited to such amount as the Project Manager
considers verified by such substantiation.

d) Loss and expense shall not include; loss of opportunity costs, loss of profit or financing costs.

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12. FORCE MAJEURE
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 Force Majeure. The riots specified herein shall refer to public
riots and national strikes. Any local or company related riots or strikes shall not be considered as
Force Majeure and the Contractor shall therefore be responsible and liable for any delays or failure in
the fulfillment of this Contract thereby caused.

b) The Contractor shall report in writing to the Project Manager within five (5) days of the onset of Force
Majeure stating the reason thereof and at the termination of such Force Majeure.

c) In case of such Force Majeure, the Contract may be amended or terminated, wholly or partially, by
mutual written agreement of both parties, subject to the approval of the Project Manager.

d) In case of Force Majeure as described, the Contractor shall, after mutual agreement with the Project
Manager, be entitled to suspend the execution of the Works for such period as the Force Majeure will
last. During this suspension period, the Contractor shall protect and secure the Works. If such
protection and securing of the Works are deemed impracticable, the Contractor shall notify the
Project Manager in writing of such fact, stating the reason, the Project Manager shall issue
instructions accordingly which the Contractor shall comply with.

e) If such suspension exceeds 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 cost of the materials on Site
and the cost of the Works executed prior to the date of termination less amounts previous paid less
any outstanding balance due from the Contractor for the Advance Payment and any other sums
which at the date of such determination were recoverable by the Owner from the Contractor.

g) If the Works or any part thereof, suffers any damages due to Force Majeure, then the Project
Manager shall issue instructions as to the disposal of debris, or damaged work and the reinstatement
or making good of work.

h) The Contractor shall carry out such instructions issued under sub-clause (g) hereof, regardless of
any notice of termination having been issued.

13. PRACTICAL COMPLETION AND PARTIAL POSSESSION

a) Practical Completion shall be deemed to have taken place on the date when, in the Project
Manager’s opinion, such has taken place and subject to receipt of all permits, licenses, draft
operation and preventative maintenance manuals, warranties, test certificates, insurances, bonds,
guarantees and undertakings as required by clauses 2.3 g) ii), 2.4, 2.5, 2.9 j), 13.c), d) and e)
respectively a certificate will be issued and the Defects Liability Period commences.

b) Practical Completion is attained when the Works are complete to the stage where the Owner can
have beneficial occupancy of the Works and where the rectification of any defects found can be
performed during the Defects Liability Period which shall not cause undue disturbance to the
occupants and subject to receipt of all permits, licenses, draft operation and preventative
maintenance manuals, warranties, test certificates, insurances, bonds, guarantees and undertakings
as required by clauses 2.3 g) ii), 2.4, 2.5, 2.9 j) and 13.c), d) and e) respectively a certificate will be
issued and the Defects Liability Period commences; provided, that “beneficial occupancy” shall mean
such occupancy as is not unduly affected by rectification works for the practical use intended by the
occupant.

c) In all cases prior to issuance of Certificate of Practical Completion the Contractor shall execute a
written undertaking to finish any and all outstanding work and the rectification of defects within thirty
(30) days of the start of the Defects Liability Period.

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13. PRACTICAL COMPLETION AND PARTIAL POSSESSION (continued)

d) As a precedent to the issue of the Certificate of Practical Completion the Contractor shall submit for
approval six (6) months prior to the original completion date a first draft of the operation and
preventive maintenance manuals, supplier’s warranties, and spare parts list of machinery and plant
supplied and installed by the Contractor, and Nominated Sub-contractors/ Suppliers.

e) All operation and preventative maintenance manuals shall be similarly bound when finalized. The
Contractor shall arrange and pay for the teaching of the Owner’s staff as nominated by him, in the
operation and maintenance as required. Time, location and duration of teaching shall be determined
by the Project Manager;

f) Upon the issue of a Certificate of Practical Completion the Contractor shall remove all Temporary
Works, Contractor’s Equipment, surplus materials and waste and leave the Site in a condition to the
satisfaction of the Project Manager.

In the event that numerous Certificates of Practical Completion are issued the clearance as stated
above shall apply only to the part or section of the Works to which the Certificate of Practical
Completion relates.

The Contractor will be permitted to retain on site the necessary equipment, materials and any other
facility for the completion of any outstanding works and in fulfillment of his obligations in respect of
the Rectification of Defects. However, upon completion of the same all retained equipment, materials
and facilities shall be removed and leave the Site in a condition to the satisfaction of the Project
Manager.

g) The Owner reserves the right to occupy any part of the Works, prior to Practical Completion,
providing such part is deemed to be practically complete and a certificate issued by the Project
Manager to that effect. The Defects Liability Period shall be deemed to have commenced on the
date of issue of the Certificate of Practical Completion for the part of the Works so occupied. The
Contractor may reduce his insurances required by the Contract by the value of the Works so
occupied. The value of any part occupied by the Owner shall be certified by the Project Manager.

h) The occupation of any portion of the Works by the Owner shall be deemed only to be the actual
portion involved and shall not include the services, (including but not limited to mechanical, electrical,
fire protection, elevator services, building management, security and communication systems), but
the Contractor shall afford the Owner the full use of all such services and systems. Practical
completion of these services and systems shall not occur until the entire Contract services are
completed, tested and commissioned to the entire satisfaction of the Project Manager and in
accordance with the Contract.

i) The Contractor may apply for inspection of the portions of the Works, which are distinct and
separable from the remainder of the Works. If the Project Manager agrees, then such area or areas
shall be closed off after rectification of defects and shall be inaccessible until the Date of Practical
Completion, save where the Project Manager requests entry. Closing-off and provision of security
personnel, as necessary, shall be provided by the Contractor at his own cost.

j) The Project Manager reserves the right to re-inspect the area or areas closed-off prior to the Date of
Practical Completion and any defects found shall be made good to his entire satisfaction.

k) The Contractor shall not receive any reduction of his responsibility for the area or areas so closed off.

14. FINAL ACCOUNT

a) Upon the issue of a Certificate of Practical Completion for the Works the Contractor shall issue to the
Project Manager the Final Account and then within the Period of Final Measurement as given in
Appendix A, the Quantity Surveyor shall issue and recommend the Final Evaluation of the Works,
and the Project Manager 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 which may have previously
been referred to Arbitration. This recommendation shall be called the Final Certificate.

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14. FINAL ACCOUNT (continued)

b) Original and a copy of the Certificate of Practical Completion, together with evidence regarding the
fulfillment of the Contractor’s obligations in regards to clauses 2.3 g) ii), 2.4, 2.5, 2.9 j) and 14.c) must
be submitted to the Owner before the Final Certificate shall be released;

c) If a dispute has not been referred to Arbitration prior to the issue of the Final Certificate, or within
fourteen (14) days of its issue, the Final Certificate 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.

d) Notwithstanding the issuance of the Certificate of Practical Completion, the completion of outstanding
works (if any) and the rectification of defects (if any) as stated within clause 14.c) the Period for
Honoring the Final Certificate shall be as given in Appendix A for this clause only.

e) The Contractor shall provide a signed Statement confirming that the amount stated therein
represents the full and final sum due to the Contractor in respect of the Contract as also requested to
satisfy clause 2.5 c).

f) Any sum 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
Works not discovered during the course of the Works, any inclusion or exclusion of any work,
materials, goods, or figure in any computation or any arithmetical error in any computation.

15. COMPLETION OF DEFECTS LIABILITY PERIOD

a) Within the Defects Liability Period specified in Appendix A, the Contractor shall make good all
defects, shrinkages, or other faults which have been identified on the date of or prior to the date of
Practical Completion or have arisen during the Defects Liability Period, entirely at the Contractor’s
own cost. Upon completion of the Defects Liability Period, the Contractor shall give written notice for
inspection of the completed Works.

b) The Owner or any of his authorized representative(s) shall issue to the Contractor, the list(s) of
defects found or discovered at the date of completion of the Defects Liability Period of the Works,
otherwise known as the punchlist, which the Contractor, must receive from the Owner not later than
thirty (30) days from inspection date.

c) The Contractor shall rectify the said punchlisted works within a period not to exceed thirty (30) days.

d) When in the opinion of the Project Manager any defects, shrinkages or other faults which he may
have required to be made good under this clause shall have been made good or on completion of the
Defects Liability Period, whichever comes later, the Project Manager shall issue a Certificate of
Acceptance of the Works. The Contract shall deem 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) Furthermore, should the Works or any part thereof including major Plant be found damaged and/or
defective and/or be unfit for the purpose for which the Owner intended then the Defects Liability
Period may be extended by the Owner in writing for a maximum period of one (1) year from when the
damage and/or defect was rectified and/or the Owner was satisfied regarding fitness for purpose.

f) The Contractor shall remain responsible for any and all unfulfilled obligations as at the date of issue
of Certificate of Acceptance and to this therefore the Contract shall be enforceable for the purposes
of establishing the nature and extent of the same.

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16. RELEASE OF RETENTION

a) All of the retention retained by the Owner, without accrued interest shall be paid to the Contractor in
the Interim Certificate following the issue of the Certificate of Practical Completion, provided that the
Contractor has returned all excess quantities of Owner supplied materials (if any) and has submitted
the required Retention Bond to guarantee the rectification of defects in the Works during the Defects
Liability Period and any other requirements stated within the Contract Documents.

b) The insurance/ bonding firm and the Contractor agree the validity of this Retention Bond to be one
(1) year after the issuance of a Certificate of Practical Completion; or until all works and defects have
been completed and/or rectified, or until the issuance of the Certificate of Acceptance whichever is
the latter.

c) The Owner shall be in receipt of all as-built drawings before final payment is made to the Contractor;

d) Furthermore before final payment, the final and approved original and three (3) copies of the
operation and preventive maintenance manuals, supplier’s warranties, and spare parts list of
machinery and plant supplied and installed by the Contractor, and Nominated Sub-contractors/
Suppliers shall be in the possession of the Project Manager.

17. TERMINATION OF CONTRACT - GENERAL

Either party is entitled to request for the suspension or termination of this Contract or any part thereof in
case the other party should fail to comply with his Contractual obligations, and has continued to so fail for
a reasonable period after being given notice of the failure. Such facility however, shall not be executed
when the failure to comply is not of major importance, considering the Works as a whole.

If either party to the Contract finds circumstances beyond the control of either party which are either
impossible or unlawful for either or both parties to fulfill their obligations under the Contract then both
parties shall be released from continuing their obligations. In such event the amount payable by either
party shall be determined in accordance with clauses 18.f) ii) and 18.g).

18. TERMINATION OF CONTRACT BY OWNER

a) The Owner shall have the right to determine the Contract, if the Contractor fails to perform the
Contract with due diligence and expedition or refuses or neglects to comply with any reasonable
order or instruction of the Project Manager in respect of the Contract.

b) The Owner shall require the Contractor to make good the said failure, neglect or contravention within
ten (10) days of the occurrence of same and the Contractor must comply with this notice within
fourteen (14) days of receipt. 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 of money which may be otherwise become due to the Contractor, towards the payment of
the total sum to complete the 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:

i) If he without reasonable cause suspends the carrying out of the Works or part of the Works
before completion thereof, or

ii) If he fails to proceed regularly and diligently with the Works, or

iii) If he fails to provide the necessary bonds and guarantees;

then the Project Manager may give the Contractor a notice, by hand, by registered post or recorded
delivery, specifying the default, and if the Contractor either continues such default for fourteen (14)
days after receipt of such notice, or at any time thereafter repeats such default (whether previously
repeated or not), then the Owner without prejudice to any other rights or remedies, may within ten
(10) days after such continuance or repetition, by notice by hand, by registered post or recorded
delivery, forthwith terminate the engagement of the Contractor under this Contract.

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18. TERMINATION OF CONTRACT BY OWNER (continued)

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 terminated, 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 terminated 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.

i) The Owner may engage and pay other persons to carry out and complete the Works and he or
they may enter upon the Works and use all temporary buildings, plant, tools, equipment and
materials intended for, or delivered to the Site, and may purchase all materials and plant
necessary for carrying out and completing the Works.

ii) The Contractor shall [except where the termination 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
Manager, within fourteen (14) days of the date of termination, assign to the Owner or to any
subsequent Contractor appointed by the Owner to complete the Works, without payment, the
benefit of any agreement for the supply of plant, materials or equipment and/or for the execution
of any works for the purposes of this Contract but on the same terms that a supplier or Sub-
contractor for any plant, materials or equipment delivered or works executed for the purposes of
this Contract, (whether before or after the date of termination) in so far as the price thereof has
not already been paid by the Contractor.

iii) The Contractor shall, when required in writing by the Project Manager so to do (but not before),
remove from the Site any temporary buildings, plant, tools, equipment, and materials, belonging
to or hired by him. If within a reasonable time 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.

iv) The Contractor shall pay to the Owner in the manner hereinafter appearing, the amount of any
direct loss and/or damage caused to the Owner by the termination. Until after completion of the
Works under clause 15.d) the Owner shall not be bound by any provision of this Contract to
make any further payment to the Contractor, but upon such completion and verification within a
reasonable time of the accounts therefore, the Project Manager with the assistance of the
Quantity Surveyor 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 termination
and, if such amounts when added to the monies paid to the Contractor before the date of
termination 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 terminate the engagement of the Contractor under this Contract at any time, by
giving the Contractor a minimum of thirty (30) days written notice of his intention to terminate the
Contract. Upon such termination, then without prejudice to the accrued rights or remedies of either
party or to any liability of the clauses mentioned herein before which may accrue either before the
Contractor 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:

i) 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 termination he was liable to indemnify the Owner, remove from the Site all his temporary
buildings, tools, equipment, and materials but subject always to the provisions of this clause.

__________________________________________________________________________________________________________
General Conditions of Contract Page 28 of 30
Phase 2 and 3 Slope Protection Bid Documents - Nov 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils., Inc.
18. TERMINATION OF CONTRACT BY OWNER (continued)

f) ii) After taking into account amounts previously paid under this Contract, the Contractor shall be
paid by the Owner:

a) The total value of work completed at the date of termination.

b) Any sum ascertained in respect of direct loss and/or expense under clause 12 (whether
ascertained before or after the date of termination).

g) 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 the Advance
Payment and any other sums which at the date of such termination were recoverable by the Owner
from the Contractor under the Contract.

19. TERMINATION OF CONTRACT BY CONTRACTOR

a) The Contractor has the right to terminate the Contract, without prejudice to any rights and remedies,
which the Contractor may possess if:

i) The Owner does not pay to the Contractor the amount due on any certificate within the Period for
Honoring Certificates as stated in Appendix A, and continues such default for fourteen (14) days
after receipt by registered post or personal delivery of a notice from the Contractor stating that a
notice of determination under the Contract will be served if payment is not made within fourteen
(14) days from receipt thereof; or

ii) The Owner wrongfully interferes with or obstructs the issue of any certificate due under the
Contract and continues such default for fourteen (14) days after receipt by registered post or
personal delivery of a notice from the Contractor specifying the default; or

iii) The execution of the whole or a substantial part of the Works (other than the execution of the
work required under clause 6. h) is suspended for a continuous period of the length stated in
clause 12(e) by reason of fire, lightning, seismic disturbance, explosion, riot, civil commotion,
and/or civil disorder. Provided that this sub-clause shall not be applicable if the suspension arises
out of the default, negligence or act of the Contractor.

iv) The Owner passes a resolution for voluntary winding up, then the Contractor may, thereupon by
notice by registered post or by hand to the Owner or Project Manager, forthwith terminate this
Contract; provided that such notice shall not be given unreasonably or vexatiously.

b) Upon such termination, then without prejudice to the accrued rights or remedies of either party or to
any liability of the clauses mentioned herein before which may accrue either before the Contractor
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:

i) 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
termination he was liable to indemnify the Owner, remove from the Site all his temporary
buildings, plant, tools, equipment, and materials.

ii) After taking into account amounts previously paid under the Contract, the Contractor shall be
paid by the Owner;

a) The total value of work completed at the date of termination.

b) Any sum ascertained in respect of direct loss and/or expense under clause 11 (whether
ascertained before or after the date of termination).

c) However if such termination is resultant of the default, negligence or act of the Contractor as
described in clause 18 c) above then such payment will only be certified upon the issue of
the Certificate of Acceptance.

__________________________________________________________________________________________________________
General Conditions of Contract Page 29 of 30
Phase 2 and 3 Slope Protection Bid Documents - Nov 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils., Inc.
19. TERMINATION OF CONTRACT BY CONTRACTOR (continued)
iii) 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 the Advance
Payment and any other sums which at the date of such termination were recoverable by the Owner
from the Contractor.

20. SETTLEMENT OF DISPUTES


a) Any dispute which arises out of the Contract, between the Owner and / or the Owner’s
Representative and the Contractor shall by all means possible, be settled amicably by the parties
thereto.

b) Failing an amicable agreement of any dispute, any dispute out of or in connection with this contract,
including any question regarding its existence, validity, or termination shall be referred to and finally
resolved by arbitration under the Rules of Procedure Governing Construction Arbitration promulgated
pursuant to Executive Order 1008 (the Construction Industry Arbitration Law) by three (3) arbitrators
to be appointed in accordance with such rules. The place of arbitration shall be at the office of the
Construction Industry Arbitration Commission.

c) The Contractor shall continue to proceed with the Works with all due diligence, including any
disputed portion thereof, without prejudice to the rights of both parties in any arbitration proceedings.

d) Any Arbitration Proceedings shall take place in Metro Manila, Republic of the Philippines.

__________________________________________________________________________________________________________
General Conditions of Contract Page 30 of 30
Phase 2 and 3 Slope Protection Bid Documents - Nov 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils., Inc.
Section 5

Summary of Bid
SUMMARY OF BID
Project : IDESIA DASMARIÑAS

Location : Brgy. San Agustin, Dasmariñas, Cavite


Owner : P.A. PROPERTIES HANKYU HANSHIN

PHASE 2 AND 3 SLOPE PROTECTION

BILL OF PRELIMINARIES Php

BILLS OF QUANTITES Php

NET BID PRICE Php

VALUE ADDED TAX Php Included

TOTAL BID PRICE Php

Summary of Bid Page 1 of 1


Phase 2 and 3 Slope Protection Bid Documents - November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils., Inc.
Section 6

Bill of Preliminaries
QS-011 / Rev. 0 / 10 July 2017

[Bidder's Logo] BILL OF PRELIMINARIES


NOVEMBER 2020

Item Description Unit Quantity Rate Amount

PRELIMINARIES

Supply of all materials, labor and equipment


necessary for the execution of the project but
not limited to the following:

A Mobilization/Demobilization item -

B Temporary Power and Light item -

C Water for the Works item -

D Temporary Telecommunications item -

E Security item -

F Barracks and Staff house item

G Storage, Workshops and Offices item -

H Environmental Health and Safety (EHS) item

I Reference Points (Line and Grade Survey) mo.

K Bonds and Insurances item


Surety Bond
Warranty Bond
Contractor's All Risk Insurance

L Material Testing item

M As-built Drawings item

To Collection Php -

975 - IDESIA DASMA


PHASE 2 SLOPE PROTECTION WORKS BILL OF PRELIMINARIES
PAGE 1 OF 3
QS-011 / Rev. 0 / 10 July 2017

[Bidder's Logo] BILL OF PRELIMINARIES


NOVEMBER 2020

Item Description Unit Quantity Rate Amount

Others

Allow other items for which the contractor


requires payment to comply with all respect
with the provisions of the relevant conditions
of the contract

NOTES:
1. Refer to Preliminaries - Terms and
Conditions
2. Fixed and time related costs together with
allowances for mobilization costs and
demobilization costs shall be validated prior to
issuance of the first progress billing.

To Collection Php -

975 - IDESIA DASMA


PHASE 2 SLOPE PROTECTION WORKS BILL OF PRELIMINARIES
PAGE 2 OF 3
QS-011 / Rev. 0 / 10 July 2017

[Bidder's Logo] BILL OF PRELIMINARIES


NOVEMBER 2020

Item Description Unit Quantity Rate Amount

TO COLLECTION Page 1 of 3 -

Page 2 of 3 -

Preliminaries To Summary Php -

975 - IDESIA DASMA


PHASE 2 SLOPE PROTECTION WORKS BILL OF PRELIMINARIES
PAGE 3 OF 3
Section 7

Trade Preambles and


Rules for Construction
Measurement
TRADE PREAMBLES
A. General

1.0 All descriptions in the Bills of Quantities shall be deemed to have been read in
conjunction with these Preambles, which are relevant to the Whole of the
Works for this Project.

2.0 All materials and workmanship shall be the best of its respective kind, and shall
be equal to or better than the specified quality, and the rates shall include for
work being carried out in accordance with the appropriate Specification.

3.0 The rates for “materials” shall be the net cost of the material required by the
item and shall be inclusive of waste but exclusive of profit, fixing, value added
tax, etc.

4.0 The rates for “labor” shall be the direct cost of labor required for the installation
of the item and shall be exclusive of supervision, profit, value added tax, etc.

5.0 The rates for “others” shall include the following:

 Supervision and all cost in connection therewith;


 Costs of conveying materials, i.e. delivery, insurance, unloading,
storage, returning packages and packing, handling, hoisting and
lowering;
 The use of all plant, tools and equipment;
 Establishment charges, profit and overhead charges;
 Anything that can be reasonably inferred from the description of the item
or indispensably necessary thereto;
 All other charges as deemed necessary.

6.0 The cost for value-added tax (VAT) shall be included in the Total Bid Price
and may be reflected in the Summary of Bid.

7.0 The term "as described" contained in the Bills of Quantities refers to the
materials and workmanship described on the Drawings, in the relevant
Specification and/or in these Preambles.

B. Excavation

1.0 The Contractor is deemed to have visited the Site and acquainted himself with
the nature of the soil or materials to be excavated.

2.0 Rates for excavation are to include for excavating in any material found,
including rock and boulders.

3.0 Disposal shall mean disposal off the Site by the Contractor unless otherwise
stated. The Contractor shall find the dumpsite and pay for all charges in
connection therewith.

Trade Preambles Page 1 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
B. Excavation (continued)

4.0 The volume of excavation measured for a structure or foundation shall be the
net volume, which is to be either occupied by, or vertically above any part of
the structure of foundation.

5.0 Rates for “others” for excavation shall include:

a) Up-holding the sides of excavation;

b) Working space as required by the Contractor;

c) Excavating any material by any means;

d) Trimming, leveling or grading and compacting the bottoms and trimming


the sides, and where over-excavated, filling with specified lean
concrete;

e) Supporting existing pipes, ducts and the like;

f) Hand excavation where necessary;

g) Everything indispensably necessary.

6.0 Multiple handling of excavated material is deemed to be allowed for in the rates
inserted by the Contractor.

7.0 The measurements for all earth and stone filling and back filling shall be the
net volume of those voids to be filled and the rates are to include for:

a) Filling and compacting in layers as specified;

b) Any variation in bulk before and after compaction;

c) Any additional material required allowing for compaction;

d) All necessary hand packing at steps, thickness behind walls or similar


positions.

8.0 The rates for filling shall include laying to falls and cambers as required.

9.0 When disposing of excavated material or transporting stone to the Site, the
rates for same are to include for taking the following precautions to prevent
material being deposited on the roads during haulage.

a) All trucks shall have properly fitted and secured sides and tail board;

b) The truck shall only be filled to the same height of the side’s boards;

c) Employing labor at the Site, and dump site to clean the wheels of the
truck prior to entering roads, and for cleaning roads affected by any
deposits which fall from the truck.

Trade Preambles Page 2 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
C. Concrete Works

1.0 Precast, plain and reinforced concrete shall be measured separately.

2.0 The whole of the concrete work shall be executed in accordance with the
relevant specification clauses, and to the best trade practice.

3.0 The rates for “material” shall be the net cost as before described.

4.0 The rates for “others” shall include:

a) Handling, hoisting, lowering, and waste;

b) Placing, fixing, and use of plant tools and equipment;

c) Establishment charges, profit and overheads;

d) Tamping, consolidating, vibrating, curing and protection;

e) All samples and testing requirements, including trial mixes and


submission of test cubes for testing;

f) Construction joints;

g) Starter bars for columns and walls;

h) Concrete bonding agent if required;

i) Water reducing admixtures where required;

j) Curing, hardening and sealing agents as required;

k) The use of various types of cement;

l) Laying level or to falls, in alternate bays including formwork between


bays;

m) Finishing the surface level or to falls and cambers;

n) Floating, trowelling, scratching, brooming, curing, hardening, and


sealing.

5.0 The rates for “others” for water stops shall include the following:

a) Joints in the running lengths;

b) Handling, hoisting, lowering, and waste;

c) All fixings, temporary or permanent;

d) Everything indispensably necessary thereto.

6.0 Steel bar reinforcement shall be measured net as shown on the Drawings or
the bar bending schedule, including splices, laps, and hooks at ends.

Trade Preambles Page 3 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
C. Concrete Works (continued)

7.0 The rates for “others” for steel bar reinforcement shall include the following:

a) Allowance for rolling margin;

b) Cutting to length, waste and bending as required;

c) Hoisting, lowering and fixing in position;

d) Tying with approved tying wire;

e) Positioning and supporting with and including all spacers, chairs,


supports, hangers or other subsidiary reinforcement not included in the
measured weight, or precast concrete or proprietary spacers;

f) Supervision and all costs in connection therewith;

g) The provision of test certificates and the provision and submission of


reinforcement for testing.

8.0 Bar reinforcement shall be calculated and paid for at the following standard
weights per linear meter, regardless of actual weight.

DIAMETER KG/M.
6mm 0.222
8mm 0.395
10mm 0.616
12mm 0.888
16mm 1.579
20mm 2.466
25mm 3.854
28mm 4.834
32mm 6.313
36mm 7.990
40mm 9.864

9.0 Steel mesh reinforcement shall be measured net with no allowance for laps.

10.0 The rates for steel mesh reinforcement shall be inclusive of all laps, waste,
cutting around, notchings, obstructions, slopes and the like, and all material,
labor, supervision, etc. as before.

Trade Preambles Page 4 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
C. Concrete Works (continued)

11.0 The rates for materials, labor and others for formworks shall be as described
on item A, which shall include the following and apportioned to whichever they
are deemed part of.

a) Supplying the necessary material, supports, etc;

b) Erecting and strutting up and exceeding 3.50 meters high unless


otherwise stated;

c) All necessary strutting for all cambers required on beams, slabs, etc;

d) Making allowance for all cambers required on beams, slabs, etc;

e) Straight, circular and raking cutting and waste, splayed edges,


notchings, allowance for overlaps and passings at angles, battens,
fillets for chases, drips, grooves, recesses, and the like (other than for
formwork to form ornamental features in self-finished concrete
surfaces), rebates, chamfered and rounded or molded edges, splayed
angles and the like and stops to chamfers, rounded or molded edges
and splayed edges;

f) Coating with mold oil, mold liquid, lime white or other required form work
release agents;

g) Forming cavities and holes for pipes, etc. not exceeding 150mm
diameter and for openings not exceeding 0.025 square meter sectional
area;

h) Obtaining and fixing in position all bolts, fixings, cores, pipe sleeves or
other approved ferrules and any other inserts necessary;

i) Shuttering simultaneously as many floors as may be necessary for the


continuous and expeditious progress of the work to the satisfaction of
the Project Manager;

j) Easing, striking and removal.

12.0 Wherever formwork is described as "to produce ordinary formed surface finish"
such term shall be held to include any work required to produce the surface
finish as required by the Specification.

13.0 Wherever formwork is described as "to produce a fair face finish" such term
shall be held to include any smooth fair faced finish as specified and the rates
are further to include for forms to be closed jointed to produce a smooth finished
appearance in the concrete surface, free from board marks, voids, holes and
other imperfections and any such marks are to be carefully rubbed down and
any holes filled with bead filler as specified. Fillets or battens to form grooves,
rebates, ribs, etc., as features in fair face concrete have been measured.

Trade Preambles Page 5 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
C. Concrete Works (continued)

14.0 Where steel forms are specifically required to be used in producing a fair face
finish, the rates are further to include for formwork of an approved material at
margins of irregular shape or size such as intersections with other concrete
members, projections, voids, openings and the like.

15.0 The rates for precast concrete works and precast pre stressed concrete works
are to include for all molds, finishing exposed surfaces with a self-finished
concrete surface as herein previously described using additional cement, or
leaving rough to receive finishings, the formation of all angles, miters and ends
and stoolings, etc., hoisting and building in, bedding and pointing in cement
mortar, for all temporary supports, lifting devices and any additional
reinforcement required for lifting.

D. Masonry Works

1.0 Unless otherwise described the whole of the masonry work, which includes
block work, brickwork and stone, shall be executed in accordance with the
relevant Specification Clauses.

2.0 The rates for materials, labor and others for masonry works shall be as
described on item A, which shall include the following and apportioned to
whichever they are deemed part of.

a) Waste, cutting, bonding, mortar, etc;

b) Everything indispensably necessary to the items;

c) All other charges as is deemed necessary.

3.0 The rates for reinforced hollow block work are to include for the reinforcement
as before described.

4.0 The rates for faced masonry work are to include for keeping the work perfectly
clean during the progress of the Works, and any special jointing or tooling
required.

Trade Preambles Page 6 of 6


Phase 2 &3 Slope Protection Works Bid Documents – November 2020
Idesia Dasmariñas Prepared by: Rider Levett Bucknall Phils.,
Inc.
Section 8

Bills of Quantities
Section 9

Bid Specifications
(Refer to separately bound document)
Section 10

Bid Drawings
(Refer to separately bound document)
Section 11

Bid Submission
Checklist
Appendices A – G
inclusive

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