0422R - Commercial Provisions

BRIDGING POWER & PROGRESS
BIDDING DOCUMENTS
VISAYAS SUBSTATION UPGRADING PROJECT, STAGE 1

(REBIDDING)
Calbayog Substation : Brgy. Carayman, Calbayog, Samar, Visayas

Maasin Substation: Brgy. Tam-is, Maasin, Southern Leyte , Visayas
Tabango Substation : Brgy. Tugas, Tabango Leyte, Visayas
Daanbantayan Substation : Brgy. Talisay, Daanbantayan, Cebu
Sp19.VSUP1.Vt-0422R
~iiiiiill' COMPOSITION
VOLUME I - COMMERCIAL PROVISIONS
VOLUME 11.1 - STANDARD SPECIFICATIONS (PART 1)
VOLUME 11.2 - ~TANDARD SPECIFICATIONS (PART 3, 4 & 5)
VOLUME 11.3 - STANDARD SPECIFICATIONS (PART 9, 10, 11 & ANNEXES)
VOLUME 111.1 - TECHNICAL DATA SHEETS (PART 1)
VOLUME 111.2 - TECHNICAL DATA SHEETS (PART 3, 4, 5 & ANNEXES)
VOLUME IV - BID PRICE SCHEDULE AND BID FORMS
VOLUME V.1 - BID DRAWINGS (PART 1)
VOLUME V .6 - BID DRAWINGS (PART 6)
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Attachment E
PM-PE-EDD-01
Page 1 of 1
Sp19.VSUP1.Vt-0422R
BIDDING DOCUMENT COMPOSITION
VOLUME I COMMERCIAL PROVISIONS

Section 1 Invitation to Bid
Section 2 - Instruction to Bidders
Section 2a - Bid Data Sheet
Section 3 - General Condition of Contract
Section 3a - Special Conditions of Contract
VOLUME 11.1 STANDARD SPECIFICATIONS

Part 1 Substation Equipment and Materials

Part 3 Substation Control and Monitoring Equipment
Part 4 Communication System Equipment
Part 5 Protection System & Associated Monitoring
Equipment

Part 9 Civil Works
Part 10 Mechanical Works
Part 11 Architectural Works
Annex A Classification System of Drawings and Documents
Annex B Typical Sample of Masterlist of Design Documents/
Drawings
VOLUME 111.1 TECHNICAL DATA SHEETS:

Part 1 Substation Equipment and Materials

Part 3 Substation Control and Monitoring Equipment
Part 4 Communication System Equipment
Part 5 Protection System and Associated Monitoring
Equipment
Annex A Scope of Works
Annex B Engineering Geological and Geotechnical
Investigation Report
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Attachment E
PM-PE-EDD-01
Page 1 of 1
Sp19.VSUP1.Vt-0422R
BIDDING DOCUMENT COMPOSITION
VOLUME IV BID PRICE SCHEDULE AND BID FORMS

Section 1 Bid Price Schedule
Section 2 - Bid Forms
VOLUME V BID DRAWINGS

Part 1 Electrical Drawings
Part 2 Protection, Control and Communication Drawings
Part 3 Civil Drawings
Part 4 Architectural Drawings
Part 5 Mechanical Drawings
Part 6 Standard Drawings
VOLUME I
COMMERCIAL PROVISIONS
SECTION 1:
INVITATION To BID
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VOLUME I
SECTION 2:
INSTRUCTIONS To BIDDERS
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BIDDING DOCUMENTS Standard Bidding Documents
SECTION 2- INSTRUCTIONS TO BIDDERS Series of 2018 Version 1
Section 2. Instructions to Bidders
TABLE OF CONTENTS
CLAUSE PAGE
NUMBER TOPIC NUMBER
1. Scope of Bid ........................................................................2- 1

2. The Owner ..........................................................................2 - 1
3. Corrupt, Fraudulent, and Coercive Practices ...................... 2- 1
4. Removal of Contractors from the List of
Accredited Contractors ....................................................... 2 - 2
5. Eligible Bidders ...................................................................2 - 3
6. Subcontracts .......................................................................2- 4
7. Disclosure of Relationship ................................................... 2 - 4
8. Content of the Bidding Documents ..................................... 2 - 5
9. Pre-Bid Conference ............................................................2- 5
10. Amendment of Bidding Documents ..................................... 2- 6
11. Site Visit ........ ......................................................................2- 7
12. Cost of Bidding ....................................................................2- 7
13. Language of Bid ..................................................................2 - 7
14. Documents Comprising the Bid ........................................... 2- 7
15. Documents Establishing Conformity of Plant
and Equipment and Services to the Bidding
Documents ..........................................................................2 - 9
16. Bid Prices ........................................................ .................. 2 - 10
17. Bid Currencies .................................................................. 2 - 12
18. Bid Validity ........................................................................2 - 12
19. Bid Security .......................................................................2- 13
20. Format and Signing of Bids ............................................... 2- 14
21. Sealing and Marking of Bids ............................................. 2- 15
22. Deadline for Submission of Bids ....................................... 2- 15
23. Late Bids ...........................................................................2- 15
24. Modification and Withdrawal of Bids ................................. 2 - 16
25. Opening and Preliminary Examination of Bids .................. 2 - 16
26. Confidentiality ................................................................... 2 - 16
27. Clarification of Bids ........................................................... 2 - 17
28. Deviations, Reservations, and Omissions ......................... 2- 17
29. Determination of Responsiveness .................................... 2- 17
30. Nonconformities, Errors, and Omissions ........................... 2- 18
31. Conversion to a Single Currency .. .................................... 2- 18
32. Detailed Evaluation and Comparison of Bids .................... 2- 19
33. Owner's Right to Accept Any Bid, to Reject
Any or All Bids, Conduct Negotiation or
Declare a Failure of Bidding .............................................. 2- 20
34. Single Calculated Bid Submission .................................... 2- 20
35. Award Criteria ...................................................................2- 21
36. Notice of Award .................................................................2- 21
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CLAUSE PAGE
NUMBER TOPIC NUMBER
37. Signing of the Contract ..................................................... 2- 21

38. Notice to Proceed ............................................................. 2- 21
39. Performance Security ..... .................................................. 2- 22
NATIONAL GRID CORPORATION OF THE PHILIPPINES 2- ii
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SECTION 2 - INSTRUCTIONS TO BIDDERS Series of 2018 Version 1
Section 2. Instructions to Bidders
1. Scope of Bid
1.1 . The National Grid Corporation of the Philippines (NGCP)

(hereinafter referred to as the Owner), wishes to receive bids for the
project named in the Bid Data Sheet (BDS) as defined in these
bidding documents (hereinafter referred to as the "Works").
1.2. Bids shall be for the entire Works on a single responsibility basis
covering site inspection and assessment of the extent of Works to
be done, including supply, delivery, erection, installation, testing and
commissioning, and other necessary works.
1.3. Bids shall cover all items as indicated in the prescribed Bid Form.
Bids covering only a portion of the Works called for shall not be
considered. The quantity and unit of each item stated in the
prescribed Bid Form shall not be changed by the Bidder when
calculating his Bid Price for such item.
1.4. The successful Bidder shall be expected to complete the entire

Works within the period specified in GCC Clause 1.4b of the Special
Conditions of Contract commencing from the Start Date stated in
ITB Clause 38.1 .
2. The Owner
2.1. The Owner shall determine the eligible prospective Bidders, receive
and open bids, conduct evaluation of bids, and award the Contract.
2.2. The Owner shall be represented by its authorized representatives

who shall be responsible for administering the Contract and
supervising the execution of the Works.
3. Corrupt, Fraudulent, and Coercive Practices
3.1. The Bidders, Contractors, Manufacturers, Suppliers or Distributors

shall observe the highest standard of ethics during the procurement
and execution of such contracts. In pursuance of this policy, the
Owner:
a. defines, for purposes of this provision, the terms set forth below
as follows:
1. "corrupt practice" means behavior on the part of officials

in the public or private sectors by which they improperly
and unlawfully enrich themselves, others, or induce
NATIONAL GRID CORPORATION OF THE PHILIPPINES 2- 1
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others to do so, by misusing the position in which they

are placed, and includes the offering, giving, receiving,
or soliciting of anything of value to influence the action of
any such official in the procurement process or in
contract execution;
2. "fraudulent practice" means a misrepresentation of facts

in order to influence a procurement process or the
execution of a contract to the detriment of the Owner,
and includes collusive practices among Bidders (prior to
or after Bid submission) designed to establish Bid prices
at artificial, non-competitive levels and to deprive the
Owner of the benefits of free and open competition;
3. "collusive practices" means a scheme or arrangement

between two or more Bidders, with or without the
knowledge of the Owner, designed to establish Bid
prices at artificial, non-competitive levels; and
4. "coercive practices" means harming or threatening to

harm, directly or indirectly, persons, or their property to
influence their participation in a procurement process, or
affect the execution of a contract; and
b. will reject a proposal for award if it determines that the Bidder

recommended for award has engaged in corrupt or fraudulent
practices in competing for the Contract.
3.2. Further, the Owner will file the necessary civil and criminal cases
available under the applicable law on individuals and organizations
deemed to be involved with corrupt, fraudulent, or collusive and
coercive practices.
4. Removal of Contractors from the List of Accredited Contractors
4.1. Accredited Bidders/Contractors shall be suspended or removed from

the List under the following circumstances:
a. Withdrawal of a bid, or refusal to accept an award or enter into

Contract without justifiable reason;
b. Poor performance;
c. Unethical practices such as collusion, bid rigging, corruption,

fraud, falsification, and improper or unsolicited attempt to
unduly influence the outcome of the bid;
NATIONAL GRID CORPORATION OF THE PHILIPPINES 2-2
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d. Refusal to post, renew or extend the Securities required under

this Bidding Documents within the required time; or
e. Delay, non-performance or breach of Contract, or suspension

or termination of Contract due to the fault of the Contractor.
4.2. Removal/ lifting of suspension/ re-accreditation/ reinstatement of

Contractors from the List shall be upon prior approval by the Owner.
5. Eligible Bidders
5.1. Eligible Bidders may participate in the bidding and subsequently

may be awarded the Contract.
5.2. A Foreign Corporation established abroad intending to participate in

the Bidding shall:
a. secure a business registration and establish a local branch in

the Philippines before award of the contract, and submit a
PCAB Special License for Foreign Corporation after award of
Contract or
b. enter in a Joint Venture (JV), Consortium, or any form of

Partnership with a local contractor with valid PCAB license and
business permit, provided that the Foreign Corporation shall,
before award of the contract, secure a business registration
and establish a local branch in the Philippines.
5.3. For purposes of undertaking construction projects, Bidders are

required to comply with all tax laws, and pertinent BIR rules and
regulations, including, but not limited to those stated in the BDS,
governing Joint Ventures, Consortium, or Partnerships.
5.4. A Joint Venture (JV), Consortium, or any form of Partnership of two

or more firms shall comply with the following requirements:
a. the JV, Consortium or Partnership Agreement shall be signed

so as to be legally binding on all partners;
b. one of the partners shall be authorized to be in charge; and this

authorization shall be evidenced by submitting a special power
of attorney signed by legally authorized signatories of all the
partners;
c. the partner in charge shall be authorized to incur liabilities,

receive payments and receive instructions for and on behalf of
any or all partners of the JV, Consortium or Partnership;
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d. all partners of the JV, Consortium or Partnership shall be jointly

and severally liable for adherence to this ITS and performance
of the Contract in accordance with the Contract terms, and a
relevant statement to this effect shall be included in the
authorization mentioned under (b) above as well as in the Bid
Form and the Form of Contract Agreement (in case of a
successful Bid); and
e. a copy of the notarized JV, Consortium or Partnership

Agreement shall be submitted with the Bid.
6. Subcontracts
6.1. The Bidder shall include in the Bid the details of all the major items
of Works that it will subcontract which shall not be more than fifty
percent (50%) of the value of the Contract. The Bidder shall indicate
the specific items or major items of the Works that will be
subcontracted.
6.2. Prospective Bidders shall engage Subcontractor/(s) with track record

similar to the specific items or major items of the Works that will be
subcontracted per ITS Clause 6.1. The Subcontractor must have a
valid PCAB License, must be registered with the SIR, and should not
be in the blacklist of the Owner.
6.3. The Contractor shall be responsible for the acts or defaults of any
Subcontractor, his agents or employees, as if they were acts or
defaults of the Contractor.
7. Disclosure of Relationship
7.1. All Bidding Documents shall be accompanied by a sworn affidavit of

the Bidder stating the relationship of the Bidder or any of its officers
to any employee, officer, director, shareholder and affiliate of the
Owner, or of the affiliate of the Owner's shareholder, by
consanguinity or affinity up to the third civil degree and any
employment, consultancy, fiduciary, contractual, commercial or other
economic relationship or interest with any officer, employee, director,
shareholder or affiliate of the Owner. Failure to comply with this
provision or a false declaration here shall be a ground for the
disqualification of the Bidder. The Owner shall decide if the
disclosed relationship under this provision will disqualify the
concerned Bidder or not.
7.2. For this purpose, "Affiliate" means any person which, directly or
indirectly, is in control of, is controlled by, or is under common
control with, another person. For the purposes of this definition,
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"control" of a Person means the power, directly or indirectly, either to

(i) vote ten percent (1 0%) or more of the shares having ordinary
voting power for the election of directors of such Person, or (ii) direct
or cause the direction of the management and policies of such
Person, whether by contract or otherwise.
8. Content of the Bidding Documents
8.1. The Bidding Documents shall consist of the following:
I.VOLUME I -COMMERCIAL PROVISIONS
1. Section 1 - Invitation to Bid

2. Section 2 - Instructions to Bidders
3. Section 2a- Bid Data Sheet
4. Section 3 - General Conditions of Contract
5. Section 3a- Special Conditions of Contract
II.VOLUME II -STANDARD SPECIFICATIONS, as indicated in the

BDS
III.VOLUME Ill -TECHNICAL DATA SHEETS, as indicated in the BDS
IV.VOLUME IV -BID PRICE SCHEDULE AND BID FORMS
1. Part 1 -Bid Price Schedule

2. Part 2 - Bid Forms
V.VOLUME V- BID DRAWINGS.
8.2. The Bidding Documents should be read in conjunction with any

amendment issued in accordance with ITB Clause 10.
8.3. The Bidder is expected to examine all instructions, forms, terms, and
specifications in the Bidding Documents. Failure to furnish all
information or documentation required in the Bidding Documents
shall result in the rejection of the Bid and the disqualification of the
Bidder.
9. Pre-Bid Conference
9.1. The Bidder by the act of submitting its Bid, shall be deemed to have
inspected the site and determined the general characteristics of the
contract works and the conditions of the contract to bid.
9.2. To clarify and address Bidders' questions on the requirements,

terms and conditions, and specifications stipulated in the Bidding
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Documents, a Pre-Bid Conference shall be held at the venue and on

the date indicated in the Invitation to Bid. The Pre-Bid Conference
shall discuss among other things, the legal, technical and financial
components of the Contract to be bid. Bidders are encouraged to
attend the Pre-Bid Conference to ensure that they fully understand
the Owner's requirements. Non-attendance of the Bidder will not
prejudice its Bid , but the Bidder shall be deemed to have agreed to
all the changes and/or amendments to the Bidding Documents as
discussed and introduced during the Pre-Bid Conference which shall
be issued via Bid Bulletin/Amendment. Any statement made at Pre-
Bid Conference shall not modify the terms of the bidding documents
unless such statement is specifically identified in writing as an
amendment thereto and issued as a Bid Bulletin/Amendment.
9.3. The Owner, whenever necessary, may arrange a Pre-Bid

Conference concurrent with the site visit.
9.4. A prospective Bidder requiring any clarification on the Bidding

Documents shall submit their request for clarification in writing at the
contact information indicated in the BDS. The Owner will respond in
writing to any request for clarification by issuing a Bid Bulletin/
Amendment provided that such request is received at least ten (1 0)
calendar days before the deadline for submission and receipt of
Bids. The Owner shall issue its response to be made available to all
Bidders who have officially acquired the Bidding Documents,
including a description of the inquiry but without identifying its
source. Should the Owner deem it necessary to amend the Bidding
Documents as a result of a clarification, it shall do so following the
procedure under ITB Clause 10.
10. Amendment of Bidding Documents
10.1. Bid Bulletins may be issued upon the Owner's initiative for purposes
of clarifying any provision of the Bidding Documents at any time prior
to the deadline for the submission of Bids. Any modification to the
Bidding Documents shall be identified as an amendment which shall
be communicated in writing to all who have obtained the Bidding
Documents . Bidders who have submitted Bids before the issuance
of the Bid Bulletin/Amendment must be informed and allowed to
modify or withdraw their Bids.
10.2. It shall be the responsibility of all Bidders who secure the Bidding
Documents to ensure that they are aware of and secure any Bid
Bulletins/Amendments that may be issued thru the Owner's website
as indicated in the Invitation to Bid.
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11. Site Visit
11.1. The Bidder is advised to visit and examine the Site of Works and its
surroundings and obtain for itself on its own responsibility all
information that may be necessary for preparing the bid and entering
into a Contract for the completion of the Works. The costs of visiting
the Site shall be at the Bidder's own expense.
11.2. The Bidder and any of its authorized personnel or agents will be
granted permission by the Owner to enter upon its premises and
lands for the purpose of such inspection. The Bidder, its personnel
and agents, will release and indemnify the Owner and its personnel
and agents from and against all liability in respect thereof and will be
responsible for death or personal injury, loss of or damage to
property and any other loss, damage, costs and expenses incurred
as a result of the inspection.
11.3. A Pre-Bid Conference may be conducted together with a site visit,

whenever necessary.
12. Cost of Bidding
12.1. The Bidder shall bear all costs associated with the preparation and
submission of its Bid, and the Owner shall not be responsible or
liable for those costs, regardless of the conduct or outcome of the
bidding process.
13. Language of Bid
13.1. The Bid, as well as all correspondences and documents relating to

the Bid exchanged by the Bidder and the Owner, shall be written in
the English language. Supporting documents and printed literature
furnished by the Bidder may be in another language provided they
are accompanied by an accurate translation of the relevant
passages into the English language, in which case, for purposes of
interpretation of the Bid, the English translation shall govern.
14. Documents Comprising the Bid
14.1. The first envelope shall contain the Bid Security.
14.2. The Technical Proposal shall contain the following documents:
a. Authority of Signatory. Affidavit of Authorization of person/s who

shall sign, make and file, for and in behalf, of the bidder issued
by owner/s and/or governing Board of Directors or by authority
of the JV, Consortium or Partnership, whichever is applicable;
1. For Corporation, Secretary's Certificate - Form 02a

2. For Proprietor, Special Power of Attorney - Form 02b
3. For JV, Consortium or Partnership Agreement - Form
02c (only lead partner must submit)
b. Valid Joint Venture, Consortium or Partnership Agreement

pursuant to ITB Clause 5.4;
c. Accomplished Technical Data Sheets (Volume Ill);
d. Proposed Contract Implementation/Delivery Schedule;
e. Bidder's Sworn Statement and Disclosure of Relationship

(Form 04);
f. Declaration and Undertaking (Form 015) and Nomination

Consent Form (Form 015A); and
g. Other documents as indicated in the BDS.
In addition, the following documents shall also be submitted :
A. For Supply Contracts:
1. Manufacturer's Authorization (Form 03) for the

equipment/materials, indicated in the BDS;
The Bidder shall submit only one (1) manufacturer for

each equipment/material, chosen from the list of
manufacturers accredited by NGCP. If the Bidder
submits more than one (1) manufacturer for particular
equipment/material, its bid shall be considered as non-
responsive.
B. For Erection and Installation Projects:
1. The Bidder's statement of availability of the prospective

Bidder's key personnel, as indicated in the BDS (Form
06) that may be assigned for construction contracts and
the availability of the equipment stated in the BDS that
it owns, or under lease, and/or has under purchase
agreements that may be used for construction
contracts;
2. Company Profile of the Design Company/ies responsible

for the detailed design and preparation of drawings and
other technical documents (electrical and civil) including
profiles of the design personnel who will be involved in
the Project;
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3. Certificate of Site Inspection issued by NGCP Regional

Project Division Head (whenever necessary);
C. For Supply and Installation Projects, all documents required for

Supply Contracts and For Erection and Installation Projects are
required to be submitted.
14.3. The Financial Proposal shall contain documents:
a. Bid Form Letter (Form 05);
b. Completed Bid Price Schedule stating the unit price, total prices
per item for all items, total amount and the expected countries
of origin of the Plant and Equipment and Works to be
performed under the Contract;
Bidders are encouraged to submit with the Financial Proposal

Envelope a CD copy of the Bid Price Schedule. This CD copy
intends only to facilitate the correction of arithmetical errors in
the Bid Prices and should not, in any way, be construed to
replace the hard copy of price schedules to be signed by the
bidders. Hence, should there be any discrepancy between the
signed price schedules and the CD copy of such, the former
shall prevail. Non-submission of the CD copy will in no way
prejudice the Bid.
c. Other documents as indicated in the BDS.
15. Documents Establishing Conformity of Plant and Equipment and

Services to the Bidding Documents
15.1. The documentary evidence of conformity of the Plant and Equipment

and Services to the Bidding Documents may be in the form of
literature, drawings, and data, and shall consist of:
a. detailed description of the essential technical and performance

characteristics of the Plant and Equipment; and
b. a list giving full particulars, including available sources and

current prices of spare parts, special tools, etc., necessary for
the proper and continuous functioning of the Plant and
Equipment.
15.2. Standards for workmanship, process, material, and equipment, are

intended to be descriptive only and not restrictive. The Bidder may
offer other standards of quality, brand names, and/or catalogue
numbers, provided that it demonstrates, to the Owner's satisfaction,
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that the substitutions are equivalent or as specified in the technical

specifications and/ or Scheduled performance.
16. Bid Prices
16.1. The Bidder shall complete the appropriate Bid Price Schedules
included herein, stating the unit price, total price per item, the total
amount and the expected countries of origin of the Plant and
Equipment and Services to be performed under the Contract.
16.2. Bidders shall indicate in the Bid Price Schedule furnished in the
Bidding Documents the unit price for every pay item.
16.3. The Owner shall not accept any unconditional or unsolicited discount
proposed by the Bidder. Any unsolicited discount shall not be
included in the evaluation of bids.
16.4. Unless otherwise specified in the Technical Specifications, Bidders

shall quote for the entire scope of work on a "single responsibility"
basis such that the total bid price covers all the Contractor's
obligations mentioned in or to be reasonably inferred from the
Bidding Documents in respect of the manufacture, including
procurement and subcontracting (if any), delivery, construction,
installation and any other activity required to complete the Works.
This includes all requirements under the Contractor's responsibilities
for testing and commissioning of the Facilities and , where so
required by the Bidding Documents, the acquisition of all permits,
approvals and licenses, etc. , operation , maintenance, training
services and such other items and services as may be specified in
the Bidding Documents, all in accordance with the requirements of
the Conditions of Contract.
16.5. The Bidder shall fill in the prices corresponding to all the pay items
specifically described in the Bid Price Schedule. When any of the
pay items in the Bid Price Schedule is/are left blank or no prices are
indicated, it is deemed that the price/s for the particular pay item/s
is/are included in the total submitted bid price proposal.
16.6. Prices indicated on the Price Schedule shall be entered separately

in the following manner:
a. For Plant and Equipment (including spares, spare parts and

tools) to be supplied from outside the Philippines, prices shall
be quoted CIF (Port of Delivery in the Philippines) (Offshore).
b. Receipt and Delivery of Plant and Equipment under item (a)

from the Port of Delivery to the designated job or project sites
specified in SCC of GCC 1.7b, prices shall be quoted inclusive
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of Load Port Survey Report (LPSR) and Summary Report (SR)

for bulk, break bulk, containerized and non-containerized
cargoes; customs clearance; costs of carrying out custom's
formalities; transportation; insurance; cost of loading and
unloading; applicable taxes; fees; permits; clearances and
other incidental/related expenses (Onshore) except for the
following which shall be for the account of the Owner:
1. Value Added Tax (VAT) on importation;

2. Import Processing Fee (IPF);
3. Container Security Fee (CSF);
4. Customs Document Stamp (CDS);
5. Internal Revenue Stamp (IRS).
c. For Plant and Equipment (including spares, spare parts and

tools) to be supplied from within the Philippines, prices shall be
quoted including delivery to the designated job or project sites
specified in SCC of GCC Clause 1.7b, inclusive of
transportation, insurance, cost of loading and unloading and all
applicable taxes, fees, permits, clearances and other incidental/
related expenses (Onshore).
d. The Works such as the Erection/Installation/Civil Works/

Testing/ Commissioning/Trainings and other services to be
performed in the Philippines, identified in the Bidding
Documents as necessary for the completion of the Project shall
include the prices for all labor, contractor's equipment,
temporary works, materials, consumables, supervision related
to erection/installation, local transportation, testing and
commissioning of equipment, and applicable taxes, fees,
permits, clearances, insurance and other related expenses
identified in the Bidding Documents as necessary for the
completion of the project (Onshore).
16.7. The Bidder shall comply with the above instructions on the manner
of entering prices for items under ITB Clause 16.6.a, ITB Clause
16.6.b, ITB Clause 16.6.c and ITB Clause 16.6.d in the
corresponding columns in the Bid Price Schedule. Bids which do not
comply with aforesaid manner of entering prices shall be considered
as non-responsive pursuant to ITB Clause 32 and shall be rejected.
16.8. The term CIF and all lncoterms shall be governed by the rules
prescribed in the current edition of lncoterms, published by the
International Chamber of Commerce, Paris France, on the date of
the Invitation to Bids.
16.9. Prices quoted by the Bidder shall be fixed during the Bidder's
performance of the Contract and not subject to price escalation on
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any account. A Bid submitted with an adjustable price quotation shall

be treated as non-responsive and shall be rejected.
17. Bid Currencies
17.1. Prices shall be quoted in the following currencies:
a. For Plant and Equipment (including spares, spare parts and

tools) to be supplied from outside the Philippines including
other expenses indicated under ITB Clause 16.6.a shall be
quoted in US Dollars and/or Euros (Offshore).
b. For items under ITB Clause 16.6.b, Receipt and Delivery of

Plant and Equipment under item ITB Clause 16.6.a from the
Port of Delivery to the designated job or project sites, prices
shall be quoted in Philippine Pesos (Onshore).
c. For Plant and Equipment (including spares, spare parts and

tools) to be supplied from within the Philippines including other
expenses indicated under item ITB Clause 16.6.c, prices shall
be quoted in Philippine Pesos (Onshore).
d. For items under ITB Clause 16.6.d, Erection/Installation/Civil

Works/Testing/Commissioning/Training and other Services to
be performed in the Philippines, prices shall be quoted in
Philippine Pesos (Onshore).
17 .2. Contract Price may be denominated in the currencylies stated in the

Bid. Payment of the Contract Price shall be made in the same
currency/ies stated in the Contract in accordance with GCC Clause
70.5.
17 .3. The Bidder shall comply with the above instructions in quoting the
corresponding currencies indicated in ITB Clause 17 .1.a, ITB Clause
17.1 .b, ITB Clause 17.1.c, and ITB Clause 17.1.d. Bids which do not
comply with above instructions in quoting the currencies shall be
considered as non-responsive pursuant to ITB Clause 32 and shall
be rejected.
18. Bid Validity
18.1. Bids shall remain valid for a period of One Hundred Eighty (180)
days from the deadline of submission of Bids.
18.2. In exceptional circumstances, prior to the expiration of the Bid

validity period, the Owner may request Bidders to extend the period
of validity of their Bids. The request and the responses shall be
made in writing. The Bid of the Bidder who refuses the request shall
: . . .
02-922905510917 - 8459055/w h l stleblower~ngcp . ph
no longer be considered for further evaluation and award. A Bidder

granting the request shall not be permitted to modify its Bid.
19. Bid Security
19.1. All bids shall be accompanied by a Bid Security, payable to the

Owner. The Bid Security shall guarantee that the Bidder will comply
with the terms and conditions under the Bidding Documents.
Bid Security shall also serve as a guarantee that, after receipt of the
Notice of Award, the winning bidder shall enter into contract with the
Owner within the prescribed time and furnish the securities required
under the Bidding Documents.
19.2. The Bid Security shall be in the form of cash, manager's check or
Surety Bond issued by a bonding company accredited by the Owner,
in an amount indicated in the BDS based on the Exchange Rate
Bulletin from the Treasury Department of Bangko Sentral ng
Pilipinas, ten (1 0) days before the Bid Opening Date.
19.3. The Bid Security shall be forfeited in any of the following cases:
a. The Bidder has withdrawn its Bid after Bid opening or prior to its
expiry-date;
b. The Bidder did not accept the correction of the Bid Price;
c. The Bidder failed to sign the Contract awarded to him;
d. The Bidder failed to provide the Securities required within the

period stated in the Bidding Documents;
e. The Bidder submitted a Bid that contains false information,

falsified documents, or concealed such information in the Bid at
any stage of the bidding in order to influence the outcome
thereof;
f. The Bidder, without proper authority, allowed the use of one's

name or used the name of another person for purposes of the
bidding;
g. Modification or amendment of any of the terms of Joint Venture,

Consortium, Partnership or Association or withdrawal of any of
its member, after Bid opening or prior to issuance of notice of
award;
h. The Bidder refused to enter into contract with the Owner

without justifiable cause after being notified of the award of
Contract;
i. The Bidder attempted to unduly influence the outcome of the

Bidding to his favour/advantage; or
j. The Bidder failed to perform and observe all due terms,

conditions, and provisions stipulated in the bidding documents
and the amendments thereto.
19.4. The Bid Security shall be valid for a period of Two Hundred Ten
(21 0) days from the deadline of submission of Bids and any period
of extension, if requested under ITB Clause18.2.
19.5. Any Bid not accompanied by an acceptable Bid Security shall be

rejected by the Owner.
19.6. Bid Securities shall be returned to the bidders after the Contract for
the project has been signed and the Securities required under the
Bidding Documents has been furnished to the Owner, but in no case
later than sixty (60) days after the expiration of the Bid Validity
Period.
20. Format and Signing of Bids
20.1. The Bidder shall submit one (1) original of the Bid Security, one (1)
original of the Technical Proposal and one (1) original of the
Financial Proposal as described in ITB Clause 14 and clearly mark
each as "ORIGINAL - BID SECURITY", "ORIGINAL - TECHNICAL
PROPOSAL" and "ORIGINAL - FINANCIAL PROPOSAL". In
addition , the Bidder shall submit one (1) copy of the Bid Security,
Technical Proposal and the Financial Proposal, and clearly mark
them "COPY NO. 1 - BID SECURITY", "COPY NO. 1 -TECHNICAL
PROPOSAL" and "COPY NO. 1 - FINANCIAL PROPOSAL". In the
event of any discrepancy between the original and the copy, the
original shall prevail.
20 .2. The original and one (1) copy of the Bid shall be typed or written in
indelible ink and shall be signed by the Bidder or a person or
persons duly authorized to bind the Bidder to the Contract. All pages
of the Bid where entries or amendments have been made shall be
initialed by the person or persons signing the Bid.
20.3. Any interlineations, erasures, alterations or overwriting shall be valid

only if they are signed or initialed by the person signing the Bid.
20.4. The Bidder shall submit its Bid through their authorized managing
officer or their authorized representative using the appropriate Bid
Forms on or before the deadline specified in the ITB Clause 22.
These forms must be completed without any alterations to their

format, and no substitute form shall be accepted. All blank spaces

shall be filled in with the information requested.
21. Sealing and Marking of Bids
21.1. Bidders shall seal and mark their bids as follows:
a. Envelope 1 - Bid Security, sealed in one envelope consisting of

one(1) original and one (1) copy, each sealed in separate
envelopes marked "ORIGINAL" and "Copy No.1";
b. Envelope 2 - Technical Proposal, sealed in one envelope

consisting of one (1) original and one (1) copy, each sealed in
separate envelopes marked "ORIGINAL" and "Copy No. 1";
and
c. Envelope 3 - Financial Proposal, sealed in one envelope

consisting of one (1) original and one (1) copy, each sealed in
separate envelopes marked "ORIGINAL" and "Copy No.1".
21.2. All envelopes shall be marked and addressed as described in the

BDS.
21.3. If any of the envelopes are not sealed and marked as required, the
Owner will assume no responsibility for the misplacement or
inadvertent opening of the Bid.
22. Deadline for Submission of Bids
22.1. Bids must be received by the Owner at the address and on or before
the date and time indicated in the Invitation to Bid.
22.2. The Owner may, at its discretion, extend the deadline for the
submission of bids by amending the Bidding Document in
accordance with ITB Clause 10, Amendment of Bidding Documents,
in which case all rights and obligations of the Owner and Bidders
previously subject to the deadline shall thereafter be subject to the
deadline as extended.
23. Late Bids
23.1. Any Bid submitted after the deadline for submission and receipt of
Bids prescribed by the Owner, pursuant to ITB Clause 22, shall be
declared "Late" and will not be accepted by the Owner.
: . . .
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24. Modification and Withdrawal of Bids
24.1. A Bidder may modify his bid anytime after it has been submitted;
provided that this is done before the deadline for the submission and
receipt of bids. The Bidder shall not be allowed to retrieve its original
bid, but shall be allowed to submit another bid equally sealed,
properly identified, linked to its original bid marked as "TECHNICAL
MODIFICATION" or "FINANCIAL MODIFICATION" and stamped
received by the Owner.
24.2. A Bidder may, through a Letter of Withdrawal, withdraw its Bid after
it has been submitted, for valid and justifiable reasons, provided that
the Letter of Withdrawal is received by the Owner prior to the
deadline prescribed for submission and receipt of Bids. Provided
further, that the corresponding Letter of Withdrawal contains a valid
authorization from the signing authority requesting for such
withdrawal.
24.3. Bids requested to be withdrawn in accordance with ITB Clause 24.2

shall be returned unopened to the Bidders. A Bidder may also
express its intention not to participate in the bidding through a letter
or e-mail which should reach and be stamped by the Owner before
the deadline for submission and receipt of Bids. A Bidder that
withdraws its Bid shall not be permitted to submit another Bid,
directly or indirectly, for the same contract.
24.4. No Bid may be modified after the deadline for submission of bids. No
Bid may be withdrawn in the interval between the deadline for
submission of Bids and the expiration of the period of Bid validity
specified by the Bidder on the Bid Form. Withdrawal of a Bid during
this interval may result in the forfeiture of the Bidder's Bid Security.
25. Opening and Preliminary Examination of Bids
25.1. The Owner shall open bid envelopes at the time, date, and place
specified in the Invitation to Bid in the presence of the Owner's
representatives only.
26. Confidentiality
26.1. Information relating to the examination, evaluation , comparison of

bids and recommendation of Contract award shall not be disclosed
to Bidders or any other persons not officially concerned with such
process until information on Contract award is communicated to all
Bidders.
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26.2. Any unethical actions or attempt by a Bidder to influence the Owner

in the evaluation of the bids or Contract award decisions may result
in the rejection of its Bid.
26.3. Notwithstanding ITB Clause 26.2 , from the time of bid opening to the
time of Contract Award, if any Bidder wishes to contact the Owner
on any matter related to the bidding process, it may do so in writing.
27. Clarification of Bids
27 .1. To assist in the examination , evaluation, and comparison of the bids,

the Owner may, at its discretion , ask any Bidder for a clarification of
its bid. Any clarification submitted by a Bidder that is not in response
to a request by the Owner shall not be considered. The Owner's
request for clarification and the response shall be in writing. No
change in the prices or substance of the bid shall be sought, offered,
or permitted, except to confirm the correction of arithmetic errors
discovered by the Owner in the evaluation of the bids, in accordance
with ITB Clause 32.
27.2. If a Bidder does not provide clarifications of its Bid by the date and
time set in the Owner's request for clarification , its Bid may be
rejected.
28. Deviations, Reservations, and Omissions
28.1. During the evaluation of Bids, the following definitions apply:
a. "Deviation" is a departure from the requirements specified in

the Bidding Document;
b. "Reservation" is the setting of limiting conditions or withholding

from complete acceptance of the requirements specified in the
Bidding Document; and
c. "Omission" is the failure to submit part or all of the information

or documentation required in the Bidding Document.
29. Determination of Responsiveness
29.1. The Owner's determination of a bid's responsiveness is to be based

on the contents of the bid itself, as defined in ITB Clause 14.
29.2. A substantially responsive bid is one that meets the requirements of

the Bidding Document without material deviation, reservation, or
omission . A material deviation, reservation , or omission is one that,

a. if accepted, would:
1. affect in any substantial way the scope, quality, or

performance of the Works specified in the Contract; or
2. limit in any substantial way, inconsistent with the Bidding

Document, the Owner's rights or the Bidder's obligations
under the proposed Contract; or
b. if rectified , would unfairly affect the competitive position of other

Bidders presenting substantially responsive bids.
29 .3. The Owner shall examine the Bid submitted to confirm that all
requirements of the Bidding Documents have been met without any
material deviation or reservation.
29.4. Bids with conditions of payment different from what is specified in

"Contract Price and Payment" in the Bidding Documents shall be
considered a Bid with material deviation.
30. Nonconformities, Errors, and Omissions
30.1. Provided that a bid is substantially responsive, the Owner may waive
any nonconformity in the bid that does not constitute a material
deviation, reservation or omission.
30.2. Provided that a bid is substantially responsive, the Owner may

request that the Bidder submit the necessary information or
documentation, within a reasonable period of time, to rectify
nonmaterial nonconformities in the bid related to documentation
requirements. Requesting information or documentation on such
nonconformities shall not be related to any aspect of the price of the
bid. Failure of the Bidder to comply with the request may result in the
rejection of its bid.
31. Conversion to a Single Currency
31.1. If so allowed in accordance with ITB Clause 17.1, the Owner for
purposes of Bid evaluation and comparing the bid prices will convert
the amounts in various currencies in which the Bid Price is
expressed to Philippine Pesos at the exchange rates officially
prescribed for similar transactions as established by the Bangko
Sentral ng Pilipinas on the date of Bid opening.
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32. Detailed Evaluation and Comparison of Bids
32.1. The Owner shall conduct a detailed evaluation of the Bids and
submit the Bid Evaluation Report to the ABEAC for approval.
32.2. The following shall be determined in the detailed evaluation of bids:
a. Whether the Technical and Commercial Proposals and

Financial Proposals are consistent with the requirements of the
Bid; and
b. The calculated Bid.
32.3. In evaluating the Bid Price Proposal, the Owner shall undertake the
following:
a. Determine if the Bidder completely and correctly filled up the

rates and prices for all pay items described in the Bid Price
Schedule. Bids which do not comply with the manner of
entering/filling-up of the rates and prices of the required pay
items in the Bid Price Schedule shall be considered non-
responsive.
b. Evaluate the financial components of the Bid and consider the

errors in computation, arithmetical corrections, omissions and
discounts in order to establish the correct calculated prices.
c. Apply the adjustments specified in the Technical Data Sheets

to consider capitalized transformer losses and other factors for
purposes of comparing bids, if applicable, and arrange the bids
in ascending order based on the calculated prices.
d. If there is discrepancy between the unit price and the total price
that is obtained by multiplying the unit price and quantity, the
unit price shall prevail and the total price shall be corrected,
unless in the opinion of the Owner, there is an obvious
misplacement of the decimal point in the unit price, in which
case, the total price as quoted shall govern and the unit price
shall be corrected.
e. If there is an error in a total corresponding to the addition or

subtraction of sub-totals, the sub-totals shall prevail and the
total shall be corrected.
32.4. The Owner shall have the right to verify/validate the authenticity of
the Joint Venture or Consortium and other pertinent documents
submitted by the Bidder. In case of a misrepresentation or false
statement, the Bidder's Bid Security shall be forfeited in favor of the
Owner.
: ...
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33. Owner's Right to Accept Any Bid, to Reject Any or All Bids, Conduct
Negotiation or Declare a Failure of Bidding
33.1. The Owner reserves the right to accept or reject any bid, conduct
negotiation , and to annul the bidding process and reject all bids at
any time prior to Contract award, without thereby incurring any
liability to Bidders. In case of annulment, all bids submitted shall be
promptly returned to the Bidders.
33.2. The Owner reserves the right to conduct negotiation with Bidders as
deemed necessary through other forms of negotiation to obtain the
most advantageous bid and to ensure that the contract amount is
within the approved budget. The Owner may invite a shortlist of
complying bidders to participate in the negotiation. The result of
negotiation shall be subject for approval by the approving authority.
33 .3. The Owner may likewise declare a failure of bidding when :
a. No bids are received; or
b. All bids failed to comply with the bid requirements; or
c. The Bidder issued with the Notice of Award refused, without

justifiable cause to accept the award of Contract.
33.4. In such instance as described in ITB Clause 33.3.c, the Owner shall
consider other complying Bidders for award or to conduct a re-
bidding if necessary.
33.5. After the second failed bidding, however, single source contracting
(negotiation) may be resorted to.
33.6. It is also a failure of bidding if the winning Bidder is disqualified for a

cause, in which case ITB Clause 33.4 above may also apply.
34. Single Calculated Bid Submission
34.1. If only one Bid is received, the Owner may either:
a. Award the Contract to the Bidder upon determination that:
1. The price submitted is fair and reasonable;

2. The Bid is responsive;
3. The Bidder is capable to undertake the Contract; and
4. The award of Contract is advantageous to the Owner.
02 -9229055/0917-8459055/whlstleblower@ngcp.ph
or
b. Reject the bid and:
1. Conduct a new bidding; or

2. Use a different source selection method authorized by
the Owner; or
3. Cancel the procurement.
35. Award Criteria
35.1. The Owner shall award the Contract to any of the complying Bidders
based on the Submitted Bid Price or Corrected Bid Price, whichever
is lower.
36. Notice of Award
36.1. The Owner shall issue a written Notice of Award to the successful
Bidder. The Notice of Award shall be sent to the successful Bidder
either by registered mail, personal delivery or by facsimile. The
Notice of Award shall state the proposed Contract Price together
with documentary requirements for the Contract.
36.2. Upon the issuance of the Notice of Award to the successful Bidder,
the Owner shall furnish the successful Bidder the Contract Form,
incorporating all the agreements between the contracting parties.
37. Signing of the Contract
37.1. The Contract shall be signed by the Owner and successful Bidder
within ten (1 0) days from receipt of the Notice of Award. The
successful Bidder shall, within thirty (30) days from receipt of the
Notice of Award and/or PO/Contract whichever comes first, submit
to the Owner:
a. The Securities required under this Bidding Documents; and
b. All other documentary requirements for the Contract.
38. Notice to Proceed
38.1. The Owner shall issue the Notice to Proceed to the successful
Bidder on the Effective Date of the Contract indicating therein the
Start Date.
02-922905510 917-8459055/whlstle bl ower@ngc p.p h

38.2. The Contract Effectivity Date shall be the date of the contract signing
unless the Parties agreed on a different date, which date shall be
stated in the Contract, but such date shall not be earlier than the
date of signing of the Contract.
39. Performance Security
39.1. To guarantee the faithful performance by the winning Bidder of its

obligations under the contract, the successful Bidder shall, within
thirty (30) days from receipt of the Notice of Award, post the
Performance Security in accordance with the General Conditions of
Contract.
39.2. The forms and schedule of Performance Security shall be in

accordance with GCC Clause 18.1.
39.3. The Performance Security shall cover the period from the time of the
signing of the contract until the Final Acceptance of the Project,
which includes the Defects Liability Period plus thirty (30) days.
39.4. Failure of the successful Bidder to comply with any of the

requirements of ITB Clause 37.1 shall constitute sufficient ground for
cancellation of the award and forfeiture of the Bid Security.
39.5. Upon the furnishing by the successful Bidder of the Performance

Security and signing of the Contract, the Owner will promptly notify
the other Bidders that their Bids have been unsuccessful.
39.6. The Contractor shall extend the validity of Performance Security

corresponding to the period of Contract Time Extension until the
Final Acceptance.
XXX End of document XXX
: . . .
02-9229055/0917-8459055/whlslleblower@ngcp.ph
VOLUME I
SECTION 2a:
BID DATA SHEETS
02- 92290 55/091 7 - 8 4 5905 5/whi stl e b I owe r@ n gcp . p h

BIDDING DOCUMENTS VISAYAS SUBSTATION UPGRADING
PROJECT, STAGE 1 (REBIDDING)
SECTION 2a- BID DATA SHEET Sp19.VSUP1 .Vt-0422R
Section 2a. Bid Data Sheet
ITB Clause
1.1 The name of Project is:
Visayas Substation Upgrading Project, Stage 1 (Rebidding)

Sp19.VSUP1.Vt-0422R
The Project is composed of the following substations which are

independent from each other:
No. Description
1. Calbayog Substation
2. Daanbantayan Substation
3. Maasin Substation
4. Tabango Substation
5.3 BIR Revenue Regulations 10-2012 - Joint Venture or Consortium
Formed for the Purpose of Undertaking Construction Projects and
Mandatory Enrollment of Local Contractors in the Electronic Filing
and Payment System (EFPS).
8.1 (II) VOLUME II-STANDARD SPECIFICATIONS
Part 1 - Substation Equipment and Materials

Part 2 - Transmission Line Materials
Part 3 - Substation Control & Monitoring Equipment
Part 4 - Communication System Equipment
Part 5 - Protection System and Associated Monitoring
Equipment
Part 8 - Transmission Line Construction
Part 9 - Civil Works
Part 10 - Architectural Works
Part 11 - Mechanical Works
Annex A - Classification System of Drawings and Documents
Annex B - Typical Sample of Masterlist of Design
Documents/Drawings
8.1 (Ill) VOLUME Ill - TECHNICAL DATA SHEETS
Part 1 -Substation Equipment and Materials

Part 2 -Transmission Line Materials
Part 3 -Substation Control & Monitoring Equipment
Part 4 -Communication System Equipment
Part 5 -Protection System and Associated Monitoring
Equipment
Annex A - Scope of Works
Annex B - Geological and Geotechnical Investigation
NATIONAL GRID CORPORATION OF THE PHILIPPINES 2a- 1
; . . .
02-9229055/091 7 -8459055/whlstleblower@ngcp. ph
SECTION 2a- BID DATA SHEET Sp19 .VSUP1 .Vt-0422R
ITB Clause
9.4 The Owner's contact information is:
Technical Strategic Sourcing Department

National Grid Corporation of the Philippines
Ground Floor, Main Building , Power Center
Quezon Avenue corner BIR Road
Diliman, Quezon City, Metro Manila, Philippines
Telephone No.: 8981-2213; 8981 -2212
Telefax No.: 8921-2308
14.2.(g)
14.2(A.1) Manufacturer's Authorization for the following:
A. Substation Equipment:
1. Power Transformer
2. Power Circuit Breaker
3. Disconnect Switch/Earthing Switch
4. Current Transformer
5. Voltage Transformer
6. Surge Arrester
B. Secondary Devices:
1. Substation Protection System
2. Network Disturbance Monitoring Equipment
3. Power Line Carrier
4. Remote Terminal Unit
C. Transmission Line Materials:

1. Steel Poles
2. Insulators
3. Line Hardwares
4. Overhead Ground Wire (OHGW)
5. Power Conductors
14.2(B.1) Required Bidder's key personnel:
A. Two (2) Project Managers

1. One (1) Licensed Electrical Engineer
2. One (1) Licensed Civil Engineer
B. Ten (1 0) Project Engineers

1. Four (4) Licensed Electrical Engineers
2. Four (4) Licensed Civil Engineers
3. One (1) Licensed Mechanical Engineer
4. One (1) Licensed Architect
: . . .
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SECTION 2a- BID DATA SHEET Sp19.VSUP1 .Vt-0422R
ITB Clause
C. Two (2) QA/QC Engineers
1. One (1) Electro - Mechanical Engineer
2. One (1) Civil- Architect
D. Four (4) Safety Engineers
E. Four (4) Testing & Commissioning Engineers
Required equipment to be used for the Project:
1. One (1) unit of Generator

2. Eight (8) units of Backhoe
3. Four (4) units of Concrete Mixer, 1 bagger
4. Two (2) units of Concrete Mixer, 2 bagger
5. Ten (1 0) units of Dump Truck
6. Four (4) units of Service Vehicle
7. Four (4) units of Concrete Vibrator
8. Four (4) units of Water Truck
9. Four (4) units of Plate Compactor
10. Four (4) units of Jack Hammer
11. Four (4) units of Bulldozer
12. Four (4) units of Loader
13. Four (4) units of Grader
14. Four (4) units of Soil Compactor/Road Roller
15. Four (4) units of Portable Water Pump
14.3.c
19.2 The Bid Security shall be in the amount of Twenty Million Pesos
(Php20,000,000.00}
21.2 The envelope shall be marked and addressed as follows:
Bid for: Visayas Substation Upgrading Project,

Stage 1 (Rebidding}
Sp19.VSUP1.Vt-0422R
Submitted To:
Technical Strategic Sourcing Department

Ground Floor, Main Building,
Quezon Avenue corner BIR Road
Diliman, Quezon City, Metro Manila, Philippines
: . . .
02-922 9055/0917 -8459055/whistleblower@ngc p.ph
SECTION 2a- BID DATA SHEET Sp19 .VSUP1 .Vt-0422R
ITB Clause
Submitted By:
[Name and Address of Bidder]
DO NOT OPEN BEFORE
[date and time for bid opening]
; . . .
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VOLUME I
SECTION3:
GENERAL CONDITIONS OF
THE CONTRACT
SECTION 3- GENERAL CONDITIONS OF CONTRACT Series of 2018 Version 1
Section 3. General Conditions of Contract
TABLE OF CONTENTS
CLAUSE PAGE
NUMBER TOPIC NUMBER
GENERAL PROVISIONS .......................................................................... 3- 1

1. 3- 1
DEFINITIONS ...........................................................................
2. 3-6
INTERPRETATION ................... . .................................................
3. COMMUNICATIONS .. . ................................................................ 3 - 7
4. GOVERNING LAW AND LANGUAGE ............................................. 3 - 7
5. PRIORITY OF CONTRACT DOCUMENTS ....................................... 3-8
6. RIGHT TO COPY AND REPRODUCE DRAWINGS, ETC .................... 3 -9
7. CONFIDENTIAL DETAILS ........................................................... 3-9
8. COMPLIANCE WITH LAWS ............. . ........................................... 3-9
THE OWNER ..................................................................................... ...... 3- 10
9. POSSESSION OF SITE ............................................................ 3-
10
10. OWNER'S CLAIMS .................................................................. 3-
11
11. OWNER'S REPRESENTATIVE'S DECISIONS ............................... 3-12
12. INSTRUCTIONS, INSPECTIONS AND AUDITS ............................... 3- 12
13. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY THE
OWNER'S REPRESENTATIVE ................................................... 3- 13
14. DETERMINATIONS .................................................................. 3- 13
THE CONTRACTOR ............................................................................... 3 - 13

15. THE CONTRACTOR'S OBLIGATIONS ....................... .................. 3- 13
16. JOINT VENTURE, CONSORTIUM OR ASSOCIATION ..................... 3- 16
17. LICENSES AND PERMITS ......................................................... 3 - 16
18. PERFORMANCE SECURITY ...................................................... 3- 16
19. CONTRACTOR'S REPRESENTATIVE .......................................... 3- 18
20. Sus-CoNTRACTING ............................................................... 3- 18
21. 3- 18
ACCESS ROUTE · ···································································
22. RIGHTS OF WAY AND FACILITIES ............................................. 3- 19
23. TRANSPORT TO THE SITE ....................................................... 3- 19
24. DELIVERY AND DOCUMENTS ................................................... 3 - 19
25. PROTECTION OF THE ENVIRONMENT ........................................ 3-21
26. CONTRACTOR'S OPERATIONS ON SITE .................................... 3-21
27. CONTRACTOR'S PLANT AND EQUIPMENT, TEMPORARY WORKS
AND MATERIALS ....................................................................3-22
28. ELECTRICITY AND WATER ...................................................... 3-23
29. FOSSILS AND ARTICLES OF VALUE .......................................... 3 - 23
30. COORDINATION MEETINGS ..................................................... 3-23
31. LIMITATION OF LIABILITY ......................................................... 3- 24
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3- i

CLAUSE PAGE
NUMBER TOPIC NUMBER
STAFF AND LABOUR ................................................. ......... ................... 3-24

32. OVERTIME AND HOLIDAY PAY ................................................. 3-24
33. HEALTH AND SAFETY ............................................................. 3- 24
34. CONTRACTOR'S PERSONNEL .... .............................................. 3- 25
PLANT, MATERIALS AND WORKMANSHIP .......................................... 3- 26

35. MATERIALS AND WORKMANSHIP ............................................. 3 - 26
36. MATERIALS AND/OR EQUIPMENT TO BE FURNISHED BY THE
CONTRACTOR AND BY THE OWNER ......................................... 3 - 26
37. CERTIFICATION OF MATERIALS ... ....... ......... ............................ 3-28
38. SUBMISSION OF SAMPLES ...................................................... 3-28
39. SUBSTITUTION OF MATERIALS ................................................ 3-29
40. SPARE PARTS ..................................................... ..... ............. 3-29
41. PACKAGING .......................................................................... 3- 30
42. TECHNICAL STANDARDS AND REGULATIONS ............................ 3-31
43. INSPECTION AND TESTS ................................................. ........ 3-31
CONTRACT TIME, COMPLETION AND DELAYS .................................. 3 - 33

44. 3- 33
CONTRACT TIME ........................................ ····· .......................
45. 3-34
PROGRAM OF WORK ......... .. ...... ............ .. ... ............................
46. EXTENSION OF CONTRACT TIME ....................... ........... ... ..... ... 3-38
47. EARLYWARNING ................................................................... 3-39
48. LIQUIDATED DAMAGES ........................................................... 3-40
49. SUSPENSION OF WORK .......................................................... 3-41
50. ACCELERATION AND DELAYS ORDERED BY THE OWNER'S
REPRESENTATIVE ............... ....... ............................................ 3-42
OWNER'S TAKING OVER ..................... .. .......................................... ... .. 3 - 43
51. TAKING OVER ....................................................................... 3-43
52. RIGHT OF THE OWNER TO TAKE OVER .................. ...... ......... ... 3- 43
53. WAIVER ................................................................................ 3-45
54. FINAL ACCEPTANCE ............................................................... 3-45
DEFECTS LIABILITY ............................................................................... 3 - 45

55. DEFECTS LIABILITY PERIOD .................................................... 3-45
56. IDENTIFYING DEFECTS ............................. .............................. 3 - 46
57 . COST OF REPAIRS ................................................................. 3- 46
58. CORRECTION OF DEFECTS ..................................................... 3-47
59. UNCORRECTED DEFECTS ....................................................... 3-47
60. WARRANTY PERIOD AND WARRANTY SECURITY ....................... 3-47
61. CLEAN UP .................................... .... .. ................................... 3-50
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3- ii
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SECTION 3 -GENERAL CONDITIONS OF CONTRACT Series of 2018 Version 1
CLAUSE PAGE
NUMBER TOPIC NUMBER
VARIATIONS AND ADJUSTMENTS ....................................................... 3 - 50

62. 3 - 50
RIGHT TO VARY .....................................................................
63. VARIATION ORDERS ............................................................... 3-50
64. EXTRA WORK MAY BE AWARDED TO OTHER PERSON OR
CONTRACTOR ....................................................................... 3 - 51
65. PRICES ................................................................................. 3-52
66. 3- 52
PRICE ADJUSTMENT .............................................. ................
67. CHANGES IN LAWS AND REGULATIONS ............ ........................ 3-52
CONTRACT PRICE AND PAYMENT ...................................................... 3-53

68. ADVANCE PAYMENT ......... ................. ..................................... 3- 53
69. PROGRESS PAYMENTS .......................................................... 3-53
70. CONDITIONS OF PAYMENT ...................................................... 3-53
71. PAYMENTS THAT MAY BE WITHHELD ....................................... 3-54
72. ESTIMATES FOR PAYMENTS .................................................... 3-55
73. PAYMENT CERTIFICATES .... .................................................... 3-56
74. RETENTION ........................................................................... 3 - 57
75. OFFSETTING OF OUTSTANDING OBLIGATIONS OF
CONTRACTOR ....................................................................... 3 - 57
TERMINATION ........................................................................................ 3-58
76. TERMINATION FOR DEFAULT OF CONTRACTOR ......................... 3-58

77. TERMINATION FOR DEFAULT OF OWNER ..... ............................. 3-58
78. TERMINATION FOR OTHER CAUSES ......................................... 3- 59
79. PROCEDURES FOR TERMINATION OF CONTRACTS .................... 3- 60
80. PAYMENT ON TERMINATION .................................................... 3-62
RISK AND RESPONSIBILITY ................................................................. 3 - 62

81. OWNER'S RISK ...................................................................... 3- 62
82. PATENTS AND COPYRIGHTS ................................................... 3-63
INSURANCE ............................................................................................ 3-63
83. CONTRACTOR'S LIABILITY FOR ACCIDENT AND DAMAGES .......... 3- 63

84. INSURANCE ........................................................................... 3- 65
FORCE MAJEURE ......................... ......................................................... 3-67
85. FORCE MAJEURE, RELEASE FROM PERFORMANCE ................... 3 - 67

CLAIMS, DISPUTES AND ARBITRATION .............................................. 3-69
86. CONTRACTORS RIGHT TO CLAIM ............................................. 3-69
87. SETTLEMENT OF DISPUTES .................................................... 3 - 70
ASSIGNABILITY OF CONTRACT ........................................................... 3 - 70

88. ASSIGNABILITY OF CONTRACT ................................................ 3-70
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3. iii
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Section 3. GENERAL CONDITIONS OF CONTRACT
GENERAL PROVISIONS
1. Definitions
1.1 For purposes of this Clause, capitalized word is used to identify

defined terms.
1.2 The Contract
a. The Contract is the agreement between the Owner and the

Contractor to execute, complete, and maintain the Works. It
consists of the documents listed in GCC Clause 5, Priority of
Documents.
b. The Notice to Proceed is a written notice issued by the Owner to

the Contractor requiring the latter to begin the execution of the
Works on the specific date stated therein.
c. The Contractor's Bid is the signed offer or proposal submitted by

the Contractor to the Owner in response to and in consonance
with the requirements of the Bidding Documents.
d. Securities shall include the Bid Security, Performance Security,

and other securities as may be required from the Contractor by
the Owner under the Bidding Documents.
e. Specifications mean the description of Works to be done and the

qualities of materials to be used, the equipment to be installed
and the mode of construction.
f. Bill of Quantities refers to a list of the specific items of the Work

and their corresponding unit prices, lump sums.
g. GCC means the General Conditions of Contract contained in this

Section.
h. SCC means the Special Conditions of Contract contained in this

Section.
1.3 Parties and Persons
a. The Owner is the party who employs the Contractor to carry out
the Works as named in the SCC.
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b. Owner's Representative means the person appointed by the

Owner, identified in the SCC, who shall be responsible for
supervising the execution of the Works and administering this
Contract.
c. The Contractor is the juridical entity whose proposal had been

accepted by the Owner and to whom the Contract to execute the
Work was awarded.
d. A Subcontractor is any person or organization to whom a part of

the Works has been subcontracted by the Contractor, as allowed
by the Owner.
e. The Arbiter is the person appointed jointly by the Owner and the
Contractor to resolve disputes in the first instance, as provided
for in GCC Clause 87, Settlement of Disputes.
1.4 Dates, Tests, Periods and Completion
a. The Start Date, as specified in the Notice to Proceed , is the date

when the Contractor is obliged to commence execution of the
Works. It does not necessarily coincide with any of the Site
Possession Dates.
b. The Contract Time is the period of time as specified in the SCC

within which the Works should be completed by the Contractor
reckoned from Start Date, in accordance with GCC Clause 44.
c. Final Completion means the state of completion when the whole

of the Works has been completed , inspected, and has passed
any and all tests as prescribed in the Contract.
d. Commissioning refers to putting into satisfactory operation of the

Plant and Equipment by the Contractor before the issuance of
Certificate of Final Completion , as applicable.
e. A Defect is any part of the Works not completed in accordance

with the Contract.
f. The Defects Liability Clearance Certificate is the certificate

issued by Owner's Representative upon correction of defects by
the Contractor.
g. The Defects Liability Period is the one (1) year period or as

extended for the period stated in GCC Clause 55.2 between
project completion and Final Acceptance within which the
Contractor assumes the responsibility to undertake the repair of
any defect to the Works at his own expense.
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h. Final Acceptance means the issuance of the Certificate of Final

Acceptance of the Works when the Works are finally accepted by
the Owner.
i. Warranty Period means one year or as extended for the period

stated in GCC Clause 60.2 from the date of Final Acceptance
during which the Contractor is responsible for defects with
respect to the Works (or the relevant part thereof) as provided in
GCC Clause 60 (Warranty Period and Warranty Security) hereof.
j. Contract Time Extension is the allowable period for the

Contractor to complete the Works in addition to the original
Contract Time stated in this Contract.
k. Slippage is a delay in work execution occurring when actual

accomplishment falls below the target as measured by the
difference between the scheduled and actual accomplishment of
the Work by the Contractor as established from the work
schedule. This is actually described as a percentage of the
whole Works.
I. Force Majeure is an event that the Contractor could not have

foreseen or even though foreseen was inevitable. An event of
force majeure is generally beyond the reasonable control of the
Contractor. It is synonymous with Fortuitous Event. It shall not
include (i) ordinary unfavorable weather conditions ; and (ii) any
other cause the effects of which could have been avoided with
the exercise of reasonable diligence by the Contractor.
m. Days are calendar days; months are calendar months.
1.5 Money and Payments
a. The Contract Price is the consideration agreed by the Owner and

the Contractor, which is stated in the Notice of Award, and in the
Contract, payable to the Contractor for the execution of the
Works in accordance with the Contract.
b. Monthly Payment Certificate or Progress Payment Certificate

means any payment certificate issued by the Owner's
Representative under GCC Clause 73.5, other than the Final
Payment Certificate.
c. Retention Money means the accumulated retention monies

retained by the Owner under GCC Clause 74.1.
d. Final Payment Certificate means the payment certificate issued

by the Owner's Representative under GCC Clause 73 .6.
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1.6 Works and Plant and Equipment
a. Construction Plant and Equipment or Contractor's Plant and

Equipment. All plant, equipment, works, supplies, appliances,
materials or things required for the execution and completion of
the Works and which shall not form or are not intended to form
part of the Permanent Works.
b. Materials are all supplies, including consumables, used by the

Contractor for incorporation in the Works.
c. Permanent Works. All Plant and Equipment, permanent

structures and all other project features and facilities required to
be constructed and completed in accordance with this Contract
which shall be delivered to the Owner and which shall remain at
the Site after the removal of all Temporary Works.
d. Plant and Equipment refers to the machinery, apparatus, and the

like intended to form an integral part of the Permanent Works.
The term "Goods" is synonymous with "Plant and Equipment".
e. Temporary Works are works designed, constructed, installed,

and removed by the Contractor that are needed for construction
or installation of the Permanent Works.
f. Work(s) refers to the Permanent Works and Temporary Works to

be executed by the Contractor in accordance with this Contract ,
including (i) the furnishing of all labor, materials, equipment and
others incidental, necessary or convenient to the complete
execution of the Works; (ii) the passing of any tests before
acceptance by the Owner's Representative ; (iii) and the carrying
out of all duties and obligations of the Contractor imposed by this
Contract.
g. Drawings are graphical presentations of the Works. They include

all supplementary details, shop drawings, calculations, and other
information provided or approved for the execution of this
Contract.
h. Change Order is an order issued to cover any increase or

decrease in quantities of original pay items in the Contract.
i. Extra Work means an additional work needed and necessary for

the completion, improvement or protection of the Works which is
not included as pay item in the original Contract.
j. Variation. A written order to the Contractor issued by the Owner

authorizing Extra Work as well as deletions from or revisions in
the Works as defined in the original Contract. The word
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'Variation' is synonymous with 'Variation Order', which comprises

of 'Change Order' and 'Extra Work Order'.
1.7 Other Definitions.
a. Right of Way - A general term denoting a right to use property or

an interest therein, acquired for the purpose of enabling the
Contractor to gain access to the Site during the performance of
the Works or to comply with his warranty.
b. The Site is the place provided by the Owner where the Works
shall be executed and any other place or places designated in
the SCC, or notified to the Contractor by the Owner's
Representative as forming part of the Site.
c. The terms Furnish or Supply or Provide include all works done

and all expenses including labor, materials, plant, overhead
(including all applicable fees) and profit margin of the Contractor
in furnishing and delivering to a geographical location designated
in these Specifications, a specified item or article, and unless
otherwise specified, to be at the expense of the Contractor.
d. The terms Erect, Install, Place, Apply, Lay, Test include all works
done and all expenses, including labor, materials, tests, plant,
overhead (including all applicable fees) and profit margin of the
Contractor in receiving a specified item or article at a
geographical location designated in these Specifications, in
transporting it to and storing it at the site of Work, and thereby
erecting, installing, placing, applying, laying, or testing it as
shown on the drawings or as directed, and unless otherwise
specified, to be by and at the expense of the Contractor.
e. The phrases Furnish and Erect, Furnish and Install, Furnish and
Place, Furnish and Apply, Furnish and Lay, Furnish, Install and
Test include all works done and all expenses, including labor,
materials, tests, plant, overhead (including all applicable fees),
and profit margin in providing, delivering, transporting, storing
and erecting, installing, placing, applying, laying or testing a
specified item or article, as shown on the drawings or as
directed, and unless otherwise specified, to be by and at the
expense of the Contractor.
f. Terms of Approval, Judgment, or Direction. When Approved,

Subject To Approval, Satisfactory, Equal To, Or Equal, As
Directed , Where Directed, When Directed, Determined By,
Designated, etc. are used, the approval, judgment or direction
implied is understood to be the function of the Owner.
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g. Or Equal, Or Approved Equal, Or Similar when used after a

specified material or equipment means that the Contractor may
request tor substitute material or equipment to that one originally
specified, provided such substitute material or equipment is
equal to or better than or substantially equivalent in function,
performance, quality, durability and dimension as that originally
specified and supported by catalog sheets, test data,
specifications, etc. , and approved in writing by the Owner.
Request for substitution by the Contractor shall be made in
writing and with sufficient anticipation so as not to delay the
timely delivery of the Plant and Equipment originally specified in
the event the proposed substitution is disapproved by the
Owner.
h. When the word "shall" is used it is to be understood in its

mandatory sense as implying an absolute obligation, unless the
context does not reasonably permit such a sense. Where the
word "shall" is used in the passive sense without explicit agent,
or in the active sense without a personal subject, it is to be
understood that the Contractor is the agent or the party
responsible tor carrying out the obligation , unless the context
does not reasonably permit such a sense.
2. Interpretation
2.1 In interpreting the Conditions of Contract, singular also means

plural, male also means female or neuter, and the other way around.
Headings have no significance. Words have their normal meaning
under the language of this Contract unless specifically defined. The
Owner's Representative will provide instructions clarifying queries
about the Conditions of Contract. Anything mentioned in the
Specifications and not shown on the drawings, or shown on the
drawings and not mentioned in the Specifications, shall be of like
effect as it shown or mentioned in both. In case of differences
between drawings and Specifications, the drawings shall govern. In
case of difference between the units of measurement in the
Specifications and the Bid Forms, the latter shall govern over the
former. In case of discrepancy, in Bid Forms , in drawings and in
Specifications, the matter shall be promptly submitted to the Owner
who shall promptly make determination in writing. Any adjustment
made by the Contractor without this determination shall be at its own
risk and expense.
2.2 The General Conditions of Contract (GCC) shall be read in

conjunction with the Special Conditions of Contract and other
Contract documents listed in GCC Clause 5.1.

2.3 lncoterms
The term CIF and all lncoterms shall be governed by the rules
prescribed in the current edition of lncoterms, published by the
International Chamber of Commerce, Paris France, on the date of
the Invitation to Bids.
2.4 Entire Agreement
The Contract constitutes the agreement between the Owner and the
Contractor and supersedes all communications, negotiations and
agreements (whether written or oral) of parties with respect thereto
made prior to the date of Contract.
2.5 Non-waiver
a. Subject to GCC Clause 2.5b , no relaxation , forbearance, delay,

or indulgence by either party in enforcing any of the terms and
conditions of the Contract or the granting of time by either party
to the other shall prejudice, affect, or restrict the rights of that
party under the Contract, neither shall any waiver by either party
of any breach of Contract operate as waiver of any subsequent
or continuing breach of Contract.
b. Any waiver of a party's rights, powers, or remedies under the

Contract must be in writing, dated, and signed by an authorized
representative of the party granting such waiver, and must
specify the right and the extent to which it is being waived.
2.6 Severability
If any provision or condition of the Contract is prohibited or rendered

invalid or unenforceable, such as prohibition, invalidity or
unenforceability shall not affect the validity or enforceability of any
other provisions and conditions of the Contract.
3. Communications
3.1 All communications between parties that are referred to in the

General Conditions of Contract shall be effective only when in
writing. A notice shall be effective only when it is received by the
concerned party.
4. Governing Law and Language
4.1 This Contract has been executed in the English language, which
shall be the binding and controlling language for all matters relating
to the meaning or interpretation of this Contract. All correspondence
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3·7
and other documents pertaining to this Contract which are

exchanged by the parties shall be written in English.
4.2 This Contract shall be interpreted in accordance with the laws of the
Republic of the Philippines.
4.3 If any of the Contract Documents, correspondence,

communications, printed literature/ brochures or any supporting
documents are prepared in any language other than the English
language, the English translation of such documents shall prevail in
matters of interpretation.
4.4 Erection and/or installation instructions and maintenance

instructions shall be submitted in English language.
4.5 The Contractor shall bear all costs of translation to the governing
language and all risks of the accuracy of such translation.
5. Priority of Contract Documents
5.1 The documents forming the Contract are to be taken as mutually

explanatory of one another, but in case of ambiguities or
discrepancies, the same shall be explained and adjusted by the
Owner's Representative who shall thereupon issue to the Contractor
instruction thereon and in such event, unless otherwise provided in
the Contract, the priority of the documents forming the Contract shall
be as follows:
a. Contract Agreement and Appendices;
b. Amendment to Bidding Documents;
c. Scope of Work;
d. Technical Data Sheets;
e. Drawings;
f. Technical Specifications;
g. Special Conditions of Contract;
h. General Conditions of Contract;
i. Notice of Award;
j. Notice to Proceed;
k. Environmental Compliance Certificate (ECC), if applicable;

I. Performance Security;
m. Contractor's Bid Proposals;
n. Instructions to Bidders; and
o. Other documents forming part of the Contract as attached

thereto or incorporated therein by reference.
6. Right to Copy and Reproduce Drawings, etc.
6.1 The Owner shall have the right without further authorization from the
Contractor to use, copy, reproduce and forward to any third party
the drawings, instructions and any other information related to the
Project to the extent that it is necessary to the work of third parties
performing any work related to the Project or part thereof. No
statement, stamp or any other reference shall exist in the
documents which might bind or seem to limit the Owner's rights in
respect to these Clauses. The Contractor shall delete, or add a
note, waiving the restrictions imposed by all such markings
appearing on drawings and other documents and witness such
deletions or waivers with its signature.
7. Confidential Details
7.1 The Contractor's and the Owner's Personnel shall disclose all such
confidential and other information as may be reasonably required in
order to verify the Contractor's compliance with the Contract and
allow its proper implementation.
7.2 Each of them shall treat the details of the Contract as private and
confidential, except to the extent necessary to carry out their
respective obligations under the Contract or to comply with
applicable laws. Each of them shall not publish or disclose any
particulars of the Works prepared by one Party without the previous
agreement of the other Party. However, the Contractor shall be
permitted to disclose any publicly available information, or
information otherwise required to establish his qualifications to
compete for other projects.
8. Compliance with Laws
8.1 The Contractor shall keep himself fully informed of all the laws,
ordinances, regulations, orders and decrees of government
agencies having any jurisdiction or authority, which, in any manner,
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may affect those engaged or employed in the execution of the

Works under the Contract.
8.2 The Contractor shall, at all times, observe and comply with all such
laws, ordinances, regulations, orders and decrees, and shall protect
and indemnify the Owner and its representatives against any claim
or liability arising from or based on the violation of any such laws,
ordinance, regulation, order or decree, whether by himself, its
employees, or its subcontractor.
Applicable taxes and fees, but not limited to, withholding taxes,
VAT, municipal licenses, permits, fees, clearances and other similar
expenses, shall be for the account of the Contractor, and shall be
deemed included in the Contract Price.
8.3 For the purpose of the Contract, it is agreed that the Contract Price
of the Contract Agreement shall consider applicable taxes, levies
and charges (herein after called "Tax") prevailing after the date of
the Invitation to Bid in the Philippines. If any rates of Tax are
increased or decreased, a new Tax is introduced, an existing Tax is
abolished, or any change in interpretation or application of any Tax
occurs in the course of the performance of the Contract, which was
or will be assessed on the Contractor, Subcontractor or their
employees in connection with the performance of the Contract, an
equitable adjustment of the Contract Price shall be made to fully
take into account any such change by addition to the Contract Price
or deduction therefrom, as the case maybe, in accordance with
GCC Clause 67.1, hereof.
THE OWNER
9. Possession of Site
9.1 On the date specified in the Notice to Proceed, the Owner shall
grant the Contractor possession over the Site, as indicated in the
sec, as may be required to enable the latter to proceed with the
execution of the Works. If the Contractor suffers delay due to
Owner's failure to grant possession, the Contractor can request for a
Contract Time Extension but it shall not exceed the number of days
of delay in taking possession over the site .
9.2 If possession of a portion is not given by the date referred to in GCC

Clause 9.1 the Owner will be deemed to have delayed the start of
the relevant activities. The resulting adjustments in Contract Time to
address such delay shall be in accordance with GCC Clause 46.
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9.3 The Contractor shall be responsible in securing special or temporary

right-of-way required by it in connection with access to the Site and
shall bear all corresponding costs and charges. The Contractor shall
also provide at his own cost any additional facilities outside the Site
required by it for purposes of the Works. No Contract Time
Extension shall be granted for delays due to unavailability of
temporary-right-of-way or construction access.
9.4 The Contractor shall allow the Owner's Representative and any
person authorized by the Owner's Representative access to the Site
and to any place where work in connection with this Contract is
being carried out or is intended to be carried out.
10. Owner's Claims
10.1 If the Owner considers himself to be entitled to any payment under

any Clause of these Conditions of Contract or otherwise in
connection with the Contract, and/or to any extension of the Defects
Notification Period, the Owner or the Owner's Representative shall
give notice and particulars to the Contractor. However, notice is not
required for payments due under GCC Clause 28 Electricity and
Water or for other services requested by the Contractor.
10.2 The notice shall be given as soon as practicable and no longer than
28 days after the Owner became aware, or should have become
aware, of the event or circumstances giving rise to the claim. A
notice relating to any extension of the Defects Notification Period
shall be given before the expiry of such period.
10.3 The particulars shall specify the Clause or other basis of the claim,
and shall include substantiation of the amount and/or extension to
which the Owner considers itself to be entitled in connection with the
Contract. The Owner's Representative shall then proceed to agree
or determine (i) the amount (if any) which the Owner is entitled to be
paid by the Contractor, and/or (ii) the extension (if any) of the
Defects Notification Period.
10.4 This amount may be included as a deduction in the Contract Price

and Payment Certificates. The Owner shall only be entitled to off-set
against or make any deduction from an amount certified in a
Payment Certificate, or to otherwise claim against the Contractor, in
accordance with this Clause.

11. Owner's Representative's Decisions
11 .1 Except where otherwise specifically stated, the Owner's

Representative will decide on contractual matters between the
Owner and the Contractor in the role representing the Owner.
11 .2 The Owner's Representative may delegate any of his duties and

responsibilities to other people, except to the Arbiter, after notifying
the Contractor, and may cancel any delegation after notifying the
Contractor.
11 .3 In all questions relating to the acceptability of materials,

classification of materials, the proper execution of the Works, and
the interpretation of the Technical Provisions and Drawings, the
decision of the Owner shall be final unless appealed to as provided
for in GCC Clause 87, Settlement of Disputes.
12. Instructions, Inspections and Audits
12.1 The Owner's personnel shall at all reasonable times during

construction of the Work be entitled to examine, inspect, measure
and test the materials and workmanship, and to check the progress
of the construction.
12.2 If the Owner's Representative instructs the Contractor to carry out a

test not specified in the Specifications to check whether any work
has a defect and the test shows that it does, the Contractor shall
pay for the test and any samples. If there is no defect, the test shall
be for the account of the Owner.
12.3 The presence of the Owner's Representative shall not relieve the
Contractor or the Contractor's representative of any responsibility for
the proper execution of the Works. The decision of the Owner as to
the quality of the material and workmanship shall be final.
12.4 No work shall be covered up or put out of view without the approval
of the Owner. The Contractor shall afford full opportunity for the
Owner to examine and measure any work which is about to be
covered up or put out of view. Accordingly, the Contractor shall give
written notice to the Owner whenever such work is ready for
examination and the Owner will attend as required for the
examination and measurement of the work unless the Contractor is
advised to the contrary by the Owner.
12.5 Failure of the Owner to reject unsatisfactory work or workmanship

shall not imply acceptance of the same if such is not discovered
prior to the time of Final Acceptance of the Works by the Owner.
Any payment made or failure of the Owner to demand compliance
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with any of the terms and conditions of this Contract shall not be
considered as a waiver on the part of the Owner for the enforcement
of the Contract, nor shall it relieve the Contractor of any of its
obligations provided therein.
13. Approval of Drawings and Temporary Works by the Owner's

Representative
13.1 All Drawings prepared by the Contractor for the execution of the
Temporary Works, are subject to prior approval by the Owner's
Representative before its use.
13.2 The Contractor shall be responsible for design of Temporary Works.
13.3 The Owner's Representative's approval shall not alter the

Contractor's responsibility for design of the Temporary Works.
13.4 The Contractor shall obtain approval of third parties on the design of
the Temporary Works, when required by the Owner.
14. Determinations
14.1 Whenever these Conditions of Contract provide that the Owner

determine any matter, the Owner shall consult with each party in an
endeavor to reach agreement. If agreement is not achieved, the
Owner shall make a fair determination in accordance with the
Contract, taking due regard of all relevant circumstances.
14.2 The Owner shall give notice to both Parties of each agreement or
determination , with supporting particulars within 28 days from the
receipt of the corresponding claim or request except when otherwise
specified. Each Party shall give effect to each agreement or
determination unless and until revised under GCC Clause 87,
Settlement of Disputes.
THE CONTRACTOR
15. The Contractor's Obligations
15.1 General Conditions
a. The Contractor shall design (if necessary), supply/manufacture

including associated purchases and/or subcontracting , install
and complete the Works in accordance with the Contract. When
completed , the Works should be fit for the purposes for which
they are intended as defined in the Contract.
b. The duly executed Agreement with the approved Design

Company shall be furnished by the Contractor to the Owner
within thirty (30) calendar days after Contract Effectivity. For
failure to submit the said agreement within the required period,
the Contractor shall not be allowed any time extension due to
delays in manufacturing and/or delivery of equipment/materials.
Furthermore, the Contractor may not be allowed to participate in
future biddings to be conducted by the Owner.
c. The Contractor confirms that it has entered into this Contract on

the basis of a proper examination of the data relating to the
Works including any data as to boring tests provided by the
Owner, and on the basis of information that the Contractor could
have obtained from a visual inspection of the Site if access
thereto was available and of other data readily available to it
relating to the Works prior to bid submission. The Contractor
acknowledges that any failure to acquaint itself with all such data
and information shall not relieve its responsibility for properly
estimating the difficulty or cost of successfully performing the
Works.
d. The Contractor shall carry out the Works properly and in

accordance with this Contract. The Contractor shall provide all
supervision, labor, Materials, Plant and Contractor's Equipment,
which may be required. All Materials and Plant on Site shall be
deemed to be the property of the Owner.
e. The Contractor shall commence execution of the Works on the

Start Date and shall carry out the Works in accordance with the
Program of Work submitted by the Contractor, as updated with
the approval of the Owner's Representative, and complete the
works within the Contract Time as stated in GCC Clause 1.4b.
f. The Contractor shall provide all necessary superintendence

during the execution of the Works and for such time as the
Owner may consider necessary for the performance of the
Contractor's obligations under the Contract. Such
superintendence shall be given by sufficient persons having
adequate knowledge of the operations to be carried out
(including the methods and techniques required, the hazards
likely to be encountered and methods of preventing accidents)
for the satisfactory and safe execution of the Works. The
Contractor or the Contractor's Project Manager shall be
constantly present at the Project Site and shall give his whole
time to the superintendence of the project.
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g. In case of similar provisions or conflicting interpretation, in so far

as the Contract Documents are concerned, the interpretation or
decision of the Owner shall prevail.
h. In general, the Contractor is totally responsible for the execution

of the Works and therefore, takes upon himself all the technical,
legal and economic risks and all obligations which could arise
therefrom or connected therewith.
i. Said overall responsibility shall lie with the Contractor until the
date of Final Acceptance. After such date the responsibility will
lie with the Owner. Should the Contractor, after the Final
Acceptance have to perform modifications to some works, these
shall again be placed under its responsibility throughout the
duration of the repair work, according to a certificate of
commencement and termination of repair work, which will be
issued by the Owner.
15.2 Security
a. The Contractor shall be responsible for the security of the Project

awarded to until it is completed, turned-over and accepted by the
Owner for the latter's operation, control and management.
b. The Contractor shall be required to hire a competent security

officer/consultant who shall serve as the official contact person to
the Owner's security management. The Contractor's security
officer/consultant shall prepare a comprehensive security plan
for the Project, which shall include the following:
1. Personnel Security - including security of the travels/

movements of key staff to the project-site.
2. Assets Protection - hiring of own security guards to secure

the field offices and lay-down areas of the equipment &
materials for the project.
3. Incident Management Plan.
4. Security Risk Review and Threat Assessment of the Project.
c. The Contractor's security officer/consultant shall coordinate with

the Owner's Security Department in the implementation of the
Project's Security Plan. The Owner's Security Department shall
provide assistance to the Contractor in the implementation of the
Project's Security Plan and linkages with the local authorities in
the Project areas.
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3 - 15

d. The organic security officer of the Owner assigned with the

engineering projects shall oversee the security operations of the
Project to ensure that the Contractor is properly managing the
security risks and any threat that would affect the implementation
of the Project.
16. Joint Venture, Consortium or Association
16.1 If the Contractor is a joint venture, consortium, or association, all of

the parties shall be jointly and severally liable to the Owner for the
fulfillment of the provisions of the Contract and shall designate one
party to act as a leader with authority to bind the joint venture ,
consortium, or association. The composition or the constitution of
the joint venture, consortium, or association, shall not be altered
without the prior consent of the Owner.
17. Licenses and Permits
17.1 Prior to the start of Works, the Contractor shall secure all necessary
licenses, permits and clearances to import, to construct/install
required by government entities, agencies, and local government
units (LGU's). These may include, but are not limited to, building
permit, sanitary permit, electrical permit, water permit, ground
excavation permit, permit to operate generator sets, National
Telecommunication Commission (NTC) permits. All costs and
expenses for licenses, permits, clearances and certificates shall be
for the account of the Contractor.
18. Performance Security
18.1 The Contractor shall post a Performance Security, which covers the
Advance Payment Security, within thirty (30) days from receipt of
the Notice of Award, in the form of Surety Bond callable on demand
issued by a bonding company accredited by the Owner, in the
amount of Thirty Percent (30%) of the Total Contract Price.
In case of Projects with various independent components, segments

or stages as described in ITB Clause 1.1 , the Contractor shall post
separate Performance Securities for each component, segment or
stage.
Failure of the successful Bidder to submit the Performance Security

under this Clause and other documentary requirements under the
Contract shall constitute sufficient ground for cancellation of the
award and forfeiture of the Bid Security.
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18.2 The Performance Security shall cover the period from the time of the
signing of the Contract until the Final Acceptance of the Project, or
in case of Projects with various independent components, segments
or stages, until the final acceptance of each component, segment or
stage, by the Owner wherein the Warranty Period as prescribed in
GCC Clause 60 shall have commenced. The coverage of the
Performance Security shall include a period of thirty (30) days after
the Defects Liability Period and shall be due for release only after
the Certificate of Final Acceptance is issued by the Owner.
The validity of Performance Security shall be extended

corresponding to the period of Contract Time Extension until the
Final Acceptance. In case of project with various independent
components, segment, or stages, the Performance Security shall be
extended to the Contract Time Extension corresponding to each
component, segment, or stage.
18.3 The Performance Security shall be posted in favor of the Owner and
shall be forfeited in favor of the Owner in the event that the
Contractor violates or is in default of any of its obligations under the
Contract, including failure to satisfactorily perform the Works within
the period/s specified in the Contract.
18.4 In the execution of the Performance Security, the following

conditions shall be complied with :
a. The Performance Security shall be executed in the form

prescribed by the Owner; and
b. The validity period of the Performance Security shall be at least

co-terminus with the Final Acceptance of the Contract.
18.5 Subject to the conditions of the Contract, the Performance Security

may be released by the Owner after the issuance of the Certificate
of Final Acceptance of the project, provided that there are no claims
filed against the Contractor.
18.6 The Contractor shall post an additional Performance Security to

cover any cumulative increase of more than ten percent (1 0%) over
the original value of the Contract as a result of change orders, extra
work orders and supplemental agreements, as the case may be.
The Contractor shall cause the extension of the validity of the
Performance Security to cover the period until Final Acceptance .
18.7 In case of reduction in the contract value, the Owner shall allow a
proportional reduction in the original Performance Security, provided
that any such reduction is more than ten percent (1 0%) and that the
aggregate of such reduction is not more than fifty percent (50%) of
the original Performance Security.
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19. Contractor's Representative
19.1 The Contractor shall submit to the Owner for its consent the name
and particulars of the person authorized to receive instructions on
behalf of the Contractor.
20. Sub-Contracting
20.1 The Contractor shall furnish the Owner with the duly executed
Subcontractor Agreement within thirty (30) days after contract
signing.
20.2 Subcontracting arrangements shall not be changed during the

implementation of the Project unless otherwise directed by the
Owner. The Contractor shall not allow his Subcontractor to
subcontract to another local contractor the specific portion of the
Works which the Contractor's Subcontractor is committed to
perform.
20.3 Subcontracting of any portion of the Works shall not relieve the
Contractor of any liability or obligation under the Contract. The
Contractor shall be held responsible for the acts, omissions,
defaults, or negligence of its Subcontractor, agents, servants or
workmen. Such acts, omissions, defaults, or negligence of its
Subcontractor, agents, servants, and workmen shall be considered
as the Contractor's own acts, omission, defaults or negligence.
21. Access Route
21 .1 The Contractor shall be deemed to have satisfied itself as to the

suitability and availability of the access routes it chooses to use. The
Contractor shall (as between the parties) be responsible for the
maintenance of access routes. The Contractor shall provide any
signs or directions which it may consider necessary for the guidance
of its staff, labor and others. The Contractor shall obtain the
necessary permission that may be required from the relevant
authorities for the use of such routes, signs and directions.
21 .2 The Owner will not be responsible for any claims which may arise
from the use or non-use of any access route. The Owner does not
guarantee the suitability or availability of any particular access route,
and will not entertain any claim for any non-suitability or non-
availability for continuous use during construction of any such route.
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22. Rights of Way and Facilities
22.1 The Contractor shall bear all costs and charges for special or
temporary rights-of-way required for access to the Site. The
Contractor shall also provide, at its own cost, any additional facilities
outside the Site required by the Contractor for the purposes of the
Works.
23. Transport to the Site
23.1 The Contractor shall be responsible for the air, sea and land
transportation of all Plant and Equipment, Materials and Supplies as
well as equipment and machineries to be used for construction,
operation and maintenance and testing of the Works from their
place of origin to the Site and more precisely to their point of
utilization at the Site. All incidental works shall be performed by the
Contractor and corresponding costs related therewith including, but
not limited to, transportation, insurances, cost of loading and
unloading, customs clearance, cost of carrying out customs
formalities, all applicable taxes, permits, licenses and other fees
shall be for the account of the Contractor.
23.2 The Contractor in its own interest shall check the capacity of the
loading and unloading facilities available, as well as the limitations in
respect of roads, bridges, and railways, piers, etc. Any damages to
roads, bridges and railways, piers, etc. arising out of the neglect by
the Contractor, its representative or its subcontractors, or its
employees shall be the responsibility of the Contractor.
23.3 All Plant and Equipment and Materials and Supplies as well as
equipment and machineries to be used for construction requiring
covers and/or shelters shall be provided by the Contractor at its own
expense.
23.4 In the event that the Owner, as consignee, is made liable for the
costs or charges in relation to the transportation and delivery of all
Plant and Equipment, the Owner may advance the payment of the
costs or charges, subject to reimbursement by the Contractor of
actual costs and charges paid by the Owner, and/or deduction from
the Contractor's progress billing, retention money, or any amount
due to the Contractor, whichever is convenient to NGCP.
24. Delivery and Documents
24.1 The Contractor shall be responsible for procurement, transport,

receiving, unloading and safekeeping of all Plant and Equipment
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and Materials and other things required for the completion of the
Works.
24.2 The shipment shall be consigned to the Owner and the details of
shipping and/or other documents to be furnished by the Contractor
are as follows:
a. For Plant and Equipment supplied from outside the Philippines:
Upon shipment, the Contractor shall notify the Owner, c/o Head
of Technical Strategic Sourcing Department, by fax or email the
full details of the shipment including Contract Number,
description of Plant and Equipment, quantity, the vessel, the Bill
of Lading (sea freight)/Airway Bill (air freight) number and date,
port of loading, date of shipment, port of discharge, etc., and
shall provide the Owner the original copies of the following
shipping documents, which should contain the Contract Number,
project description and invoice number, not later than two (2)
days after loading of shipment in the port of origin for purposes
of filing with the Department of Finance (DOF) :
1. Commercial Invoice signed by the Contractor showing the

Contract Number, Bill of Lading (sea freight)/Airway Bill (air
freight) number, description of Plant and Equipment, quantity,
unit price, total amount, deductions and the net amount due
for payment;
2. One (1) set of original Bill of Lading (sea freight)/Airway Bill

(air freight) , clean on board marked Freight Prepaid. Another
one (1) set of original Bill of Lading (sea freight)/Airway Bill
(air freight) shall be submitted upon actual billing, as
applicable ;
3. Packing list identifying the contents of each package

indicating the Seal Number (if Full Container Load , FCL);
4. Insurance certificate for 110% of the full CIF value of Plant

and Equipment on "All Risks" basis including War Risks,
Riots, and Civil Commotion, and Strike and Terrorism
clauses;
5. Certificate of origin;
6. Inspection Certificate or Waiver of Inspection signed by the

Owner's Representative ;
7. Load Port Survey Report (LPSR) and Summary Report (SR)

for bulk, break bulk, containerized and non-containerized
cargoes to be conducted by any of the approved Cargo
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Surveyors of the Owner, as indicated in the SCC, for customs

requirement for the clearing and releasing; and
8. Other documents as may be required in the SCC.
In the event the Contractor fails to provide copies of the

original shipping documents within the said period , all
charges/fees , i.e., demurrage/ storage/ handling/ overtime/
etc., that may be incurred by the Company until the shipment
is released from custom custody, as a result of such delay in
the submission of shipping documents so required , shall be
for the account of the Contractor to be deducted from the its
billings.
b. For the Plant and Equipment supplied from within the

Philippines :
Upon delivery of the Plant and Equipment to the transporter, the

Contractor shall notify the Owner and provide the following
documents, which should contain Contract Number, project
description, and invoice number, except for item no. 4 which
shall be submitted together with the billing, to the Owner:
1. The Contractor's signed commercial invoice showing

Contract Number, description of Plant and Equipment,
quantity, unit price, total amount, deductions (if any) and net
amount due for payment;
2. Delivery receipt;
3. Packing list identifying content of each package; and
4. Inspection Certificate or Waiver of Inspection signed by the

Owner's Representative.
25. Protection of the Environment
25.1 The Contractor shall strictly comply with the requirements of, and
shall be liable for any damage/destruction to the environment
including penalties that will be imposed by the Department of
Environment and Natural Resources (DENR).
26. Contractor's Operations on Site
26.1 The Contractor shall cooperate and share the Site with other
contractors, public authorities, utilities, and the Owner between the
dates given in the schedule of other contractors particularly when

they need to access the Site. The Contractor shall also provide
facilities and services for them during this period. The Owner may
modify the schedule of other contractors, and shall notify the
Contractor of any such modification.
27. Contractor's Plant and Equipment, Temporary Works and Materials
27.1 All Construction Plant and Equipment, Temporary Works and

Materials provided by the Contractor shall, when brought to the Site,
be deemed to be exclusively intended for the execution of the
Works and the Contractor shall not remove the same or any part
thereof, except for the purpose of moving it from one part of the Site
to another, without the consent, in writing, of the Owner. Upon
completion of the Works the Contractor shall remove from the Site
all the said Construction Plant and Equipment and Temporary
Works remaining thereon and any unused materials provided by the
Contractor and unpaid by the Owner. The Owner shall not, at any
time, be liable for the loss or damage to any of the said Construction
Plant and Equipment, Temporary Works or Materials.
27.2 Upon completion of the Works, the Contractor shall remove from the
Site all said Construction Plant and Equipment and Temporary
Works remaining thereon and any unused materials provided by the
Contractor. However, the unused/excess imported materials shall be
accounted by the Contractor and turned-over to the Owner in
accordance with GCC Clause 36.4.
27.3 In the event of termination of the Contract under GCC Clause 76

and during the Contract Period:
a. The Contractor shall not be allowed to remove from the Site

Construction Plant and Equipment, Temporary Works or
Materials on Site and Plant and Equipment and Materials
intended for the Works or which shall form part of the Permanent
Works wherever they are situated unless the Owner specifically
authorizes the removal of any of them because it shall not be
needed by the Owner to complete or cause the completion of the
Works or to remedy any defects therein.
b. In case of rented equipment, the Contractor shall cause to be

inserted in the rental agreement with the equipment Owner the
latter's prior consent to the assignment of the rental agreement
by the Contractor to the Owner under the same terms and
conditions and for such period of time as the Owner may require
to complete or cause the completion of the Works and for
remedying defects therein.

c. The Owner shall have the right to use the equipment owned by
the Contractor and pay such reasonable rental therefor in such
amount as the Owner's Representative shall fix taking into
account current market rates for the rental of similar equipment
and the age and efficiency of the equipment.
d. The value of Temporary Works and Materials of the Contractor

used by the Owner shall be determined by the Owner's
Representative in accordance with GCC Clause 80.
27.4 The Contractor shall, when entering into any subcontract for the
execution of any part of the Works, incorporate in such subcontract
(by reference or otherwise) the provisions of this Clause in relation
to Contractor's Plant and Equipment, Temporary Works or Materials
brought on to the Site by the Subcontractor.
28. Electricity and Water
28.1 The Contractor shall be entitled to use, for purposes of the Works,
supplies of electricity, water and other services as may be available
on the Site the details of which are given in the Technical
Specifications. The quantities consumed shall be determined by the
Owner's Representative, the amount of which may be deducted by
the Owner from the Monthly Progress Payment and Final Payment
Certificates . The Contractor may, at his own risk and cost, provide
any apparatus necessary for such determination and for his use of
these services.
29. Fossils and Articles of Value
29.1 Should anything of historical or other interest or of significant value

be unexpectedly discovered on the Site, it shall be the property of
the Owner. The Contractor shall notify the Owner's Representative
of any such discovery and carry out the Owner's Representative 's
instructions in dealing with them.
30. Coordination Meetings
30.1 Either the Owner's Representative or the Contractor may require the
other to attend a coordination meeting. The coordination meeting
shall review the plans for remaining work and deal with matters
raised in accordance with the early warning procedure stated in
GCC Clause 47. The responsibility of the parties for actions to be
taken shall be decided by the Owner's Representative either at the
coordination meeting or after the coordination meeting and stated in
writing to all who attended the meeting.
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30.2 The Owner's Representative shall record the minutes of the

coordination meeting. Attendees shall be provided copies thereof.
31. Limitation of Liability
31 .1 Except in cases of criminal negligence or willful misconduct, and in

the case of infringement of patent rights, if applicable, the aggregate
liability of the Contractor to the Owner for any and all losses and
damages, including consequential damages, incurred due to
Contractor's default or breach under the Contract shall not exceed
the Total Contract Price, provided that this limitation shall not apply
to the cost of repairing or replacing defective Plant and Equipment.
31.2 This GCC Clause 31 shall not exclude or limit liability in all the cases
where the applicable Law prohibits such exclusion/limitation.
STAFF AND LABOUR
32. Overtime and Holiday Pay
32.1 The Contractor shall be responsible for the payment of overtime,

night-shift differential, holiday pay, etc., in accordance with existing
Philippine Labor Laws. All these are deemed included in the Bid
Price. The Contractor shall provide the Owner with a schedule of
overtime works from time to time, and upon receipt thereof, the
Owner shall, for its own account, provide the necessary inspection/
test personnel to permit the prosecution of overtime work.
33. Health and Safety
33.1 The Contractor shall conduct the Works with due regard to health
and safety in accordance with its Construction Safety and Health
Program (CSHP) duly approved by the Owner in compliance with
the DOLE Department Order No. 13 - The Guidelines Governing
Occupational Safety and Health in the Construction Industry which
includes but not limited to the following:
a. Personal Protective Equipment (PPE)
The PPEs including worker's uniform (colored long sleeves shirt

with Company name/logo) shall be provided by the Contractor.
The use of the PPEs shall conform to Rule 1080, Personal
Protective Equipment and Devices of Occupational Safety and
Health Standard (OSHS), as amended.
02-9229055/0917-845905Siwhlstle blower@ngc p.ph

b. Clinical Materials and Equipment
Clinical materials and equipment such as medicines, beds and

linens, other related accessories as applicable shall be in
accordance with Rule 1060, Occupational Health Services of
OSHS.
c. Signages and Barricades
General signages and barricades necessary for promoting safety

in and around the construction site.
d. Salaries/wages of Health and Safety Personnel
Manpower cost for medical and safety personnel to be assigned

in the field.
e. Safety and Health Training
Basic and continuing construction safety and health training to all

safety and technical personnel.
33.2 The cost associated with the implementation of the approved CSHP
of the Contractor shall be made part of indirect/overhead cost of the
Contractor's Bid Price.
33.3 If the Owner notifies the Contractor of any non-compliance with the
provisions of the CSHP, the Contractor shall make all reasonable
efforts to correct the unsafe conditions or acts. Satisfactory
corrective action shall be taken within the specified time.
33.4 If the Contractor or any of its subcontractors refuses to immediately

correct unsafe or unhealthy conditions or acts, the Owner may take
one or more of the following steps:
a. Direct the immediate termination of the operation or a portion

thereof until the condition is brought into compliance with the site
safety procedures, at no additional cost to the Owner.
b. Stop payment for the work being performed.
c. Correct the situation using other employees and charge the

Contractor for expenses incurred.
34. Contractor's Personnel
34.1 The Contractor shall employ competent personnel to carry out the
Works.

34.2 If the Owner's Representative asks the Contractor to remove a

member of the Contractor's staff or work force, for justifiable cause,
the Contractor shall ensure that the person leaves the Site within
seven (7) days and not to have any connection with the Work in this
Contract. Such discharge shall not form the basis of any claim for
compensation or damage upon the Owner.
PLANT, MATERIALS AND WORKMANSHIP
35. Materials and Workmanship
35.1 All materials incorporated in the Works shall be new and unused ,
free from all defects and imperfections, and of first class commercial
quality.
35.2 Whenever the brand name or trademark of a certain product of a

particular manufacturer is mentioned in the Specifications but not
followed by the phrase "or approved equal", such phrase is implied
to have also been mentioned. The Contractor, therefore, is
permitted to use similar products equal or better in quality, standard
or performance subject to the approval of the Owner.
35.3 All Works shall be performed and completed in a thorough and

workmanlike manner and shall follow the best modern practice in
the manufacture of high grade products of the type to be furnished,
notwithstanding any omission from these Specifications. All Works
shall be performed by craftsmen skilled in their respective trades. All
parts shall be made accurately and where practicable, to standard
gauges so as to facilitate replacement and repair.
35.4 Materials and supplies required in the Works but which may not be
covered by the Specifications shall be standard products of
reputable manufacturers suitable for the intended use. Such items
will be subject to the approval of the Owner.
36. Materials and/or Equipment to be Furnished by the Contractor and by

the Owner
36.1 Furnished by the Contractor
Except for the items indicated in GCC Clause 36.2, the Contractor
shall furnish all materials and equipment necessary to complete the
Works under the Contract. No separate payment will be made for
the cost of furnishing, transporting, storing and caring of these
equipment and materials. All costs incurred thereof shall be included
in the unit and lump sum prices of pay items to which they pertain.
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SECTION 3 - GENERAL CONDITIONS OF CONTRACT Series of 2018 Version 1
36.2 Furnished by the Owner
The Owner shall furnish and issue to the Contractor the materials
and/or equipment at the stockyard/warehouse specified in the
detailed description of work on the technical data sheets (as
applicable). The Contractor shall be held responsible and
accountable for all equipment and materials furnished to him. In this
regards , the Contractor shall check all items issued to him regarding
their condition prior to receiving them. Any equipment or materials
damaged, lost or unaccounted for after his receipt thereof, shall
either be replaced in kind by the Contractor or charged to his
account in the amount it cost to the Owner including applicable
taxes, plus fifteen percent (15%) surcharge. Deduction for such loss
or damage shall be made from payment due or which may become
due to the Contractor under the Contract and/or collect such loss or
damage from the Retention Money of the Contractor or Contractor's
Performance Security whichever is convenient and expeditious to
the Owner.
The Contractor at its own expense, shall return to the warehouse/

stockyard of the Owner all unused or excess materials, empty reels,
tools and equipment and any other items furnished by the Owner in
the condition acceptable to the Owner upon completion of the
Works under the Contract. Failure of the Contractor to return the
aforementioned materials and tools maybe ground to withhold
payments of the progress billings and other claims and the issuance
of the Certificate of Final Completion.
A penalty of Ten Thousand Pesos (P 10,000.00) for wooden reel

and Twenty Thousand Pesos (P 20,000.00) for steel reel shall be
charged to the Contractor for every unreturned empty reel and
which shall be deducted from the final payment.
36.3 Accounting of Materials and/or Equipment Furnished by the Owner
All materials and/or equipment furnished by the Owner to the

Contractor, if any, shall be accounted for on a monthly basis, that is,
every month together with the submission of the monthly progress
estimate specified in GCC Clause 72, Estimates for Payments, the
Contractor shall submit to the Owner issued vouchers supporting
the utilization of the materials and/or equipment received from the
Owner.
Losses arising from the negligence of the Contractor as determined

by the Owner shall be charged against the Contractor which shall be
deducted immediately from its billing/claims. In case of losses not
arising from the negligence on the part of the Contractor, the said
Contractor shall, within twenty-four (24) hours, report the incident to
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the nearest Police Station or law enforcing agency for investigation

with proper notification to the Project Manager, Property Custodian
and Insurance Division of the Owner. For losses arising from
fortuitous event such as earthquake, storm, flood, etc., Contractor
shall, within twenty four (24) hours report such losses to the Project
Manager, Property Custodian and Insurance Division of the Owner.
A request for relief accountability shall be submitted by the

Contractor to the Project Manager within fifteen (15) days from the
date of the incident. The request shall indicate the materials and/or
equipment lost and the cost involved. No request for the relief of
accountability shall be entertained pending the submission of the
required documents for the purpose of insurance claim.
The right is reserved by the Owner to hold monthly progress

payments of Contractor's accomplishment in case of failure of the
Contractor to comply with the above requirements.
36.4 Unused/Excess Imported Materials Furnished by the Contractor
Upon completion of the Works, the Contractor shall turn-over the

excess/unused imported materials to the Owner and shall deliver
the same to the designated NGCP Warehouse for proper
accounting and inventory as the same are owned by NGCP.
37. Certification of Materials
37.1 The Contractor shall submit to the Owner signed certificates from
manufacturers or sole distributors of materials to be furnished and
installed by the Contractor, certifying as to the kind, quality, quantity
and other descriptions of the materials delivered under a receipt
number and date.
37.2 No materials, including but not limited to cement and reinforcing

steel, concrete, G.l. and C.l. pipes, valves and fittings, plumbing and
sanitary fixtures, building materials and finishes, paint and
waterproofing shall be erected, installed or applied without the
required certificates.
38. Submission of Samples
38.1 Before the start of any installation or application of materials

enumerated in GCC Clause 37, Certification of Materials, the
Contractor shall submit samples of same to the Owner for approval
at least one (1) month before their actual installation or application.

38.2 Failure by the Owner to approve samples on time due to failure of

Contractor to submit the samples mentioned in GCC Clause 38.1
shall not entitle the Contractor any extension of time nor any claim
whatsoever for any delay in the Works.
38.3 To avoid unnecessary delays, orders and/or purchase of imported

and local materials shall be made by the Contractor within a
sufficient period prior to their use in order that adequate supply is
available when needed .
39. Substitution of Materials
39.1 The Contractor shall submit a written request for substitution of

materials in lieu of those specified when deemed very necessary
and urgent. Such request shall indicate the reasons for substitution.
No substitute materials shall be used without written authorization
from the Owner.
39 .2 In extreme cases of approved substitution of materials of an inferior

kind, a reduction in the Contract Price equal to the difference in cost
of the two kinds of materials shall be made. Market prices at the
provincial capital or at the commercial center agreed upon by the
Owner and the Contractor, on the date upon which authority for
substitution is granted, shall be the basis of said price reduction.
Price differentials shall be determined and agreed upon by both
parties and incorporated in the approved letter of substitution.
39.3 The Contractor shall submit a written request for substitution at least
one (1) month before such materials are actually needed. Such
request shall be accompanied by samples to be substituted and
corresponding certification as required in GCC Clause 37,
Certification of Materials.
39.4 The Contractor shall bear the cost for the approved substitution of
materials of a better kind.
40. Spare Parts
40.1 The Contractor is required to provide all of the following materials,

notifications, and information pertaining to spare parts manufactured
or distributed by the Contractor:
a. such spare parts as the Owner may elect to purchase from the
Contractor, provided that this election shall not relieve the
Contractor of any warranty obligations under this Contract; and
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b. in the event of termination of production of the spare parts:
1. advance notification to the Owner of the pending termination,

in sufficient time to permit the Owner to procure needed
requirements; and
2. following such termination , furnishing at no cost to the Owner,

the blueprints, drawings, and specifications of the spare
parts, if requested.
40.2 The spare parts required are listed in the Technical Data Sheet of
the equipment and the costs thereof are included in the Contract
Price.
41. Packaging
41 .1 The Contractor shall provide such packaging of the Plant and

Equipment as is required to prevent their damage or deterioration
during transit to their final destination, as indicated in this Contract.
The packaging shall be sufficient to withstand , without limitation,
rough handling during transit and exposure to extreme
temperatures, salt and precipitation during transit, and open
storage. Packaging case size and weights shall take into
consideration, where appropriate, the remoteness of the Plant and
Equipments' final destination and the absence of heavy handling
facilities at all points in transit.
41.2 The packaging , marking, and documentation within and outside the
packages shall comply strictly with such special requirements as
shall be expressly provided for in the Contract, including additional
requirements, if any, specified below, and in any subsequent
instructions ordered by the Owner. The packaging case of the Plant
and Equipment shall be marked "Tax and Duty Free".
41 .3 The Contractor shall prepare and load all equipment, materials and
accessories supplied, under the Contract for overseas export
shipment in such a manner as to protect them from damage in
transit and shall be responsible for and make good any and all
damages due to improper preparation or loading for shipment until
Final Acceptance. Any article or material that might otherwise be
lost shall be boxed or bundled with steel bands and plainly marked
for identification. Boxed parts, whenever it is unsafe to attach slings
to the box, shall be packed with slings attached to the parts, the
slings to project through the box or crate so that attachment to the
hoisting equipment can be made. Boxes, which must remain upright,
shall be marked with large arrows pointing to the side which is to be
up. The equipment will be subject to open storage for several
months at the project site and shall be suitably protected from
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weather damage. All electrical and mechanical parts subject to

damage from moisture shall be packed in hermetically sealed metal
containers, in plastic envelopes, or in other approved containers
within their respective packing case, with all machined surface
heavily coated with a rust preventing paint.
41.4 On account of limited shipping, transport and handling facilities in

the Philippines, it is necessary that the equipment be manufactured
and prepared for shipment so that the largest part shall not exceed
the shipping and transport limitation specified in the Technical Data
Sheets for each equipment.
42. Technical Standards and Regulations
42.1 The design, the Plant and Equipment, the construction documents,
the execution, and the completed Works shall comply to the
Philippines' national specifications, technical standards, building,
construction and environmental regulations, regulations applicable
to the product being produced from the Works and the standards
specified in the Contract Document or defined by law. References in
the Contract to such specifications and other matters shall be
understood to be references to the edition applicable at the date
thirty (30) days prior to deadline for submission of Bids, unless
stated otherwise. If substantially changed or new applicable national
specifications, technical standards or regulations shall become
effective after the above said date, the Contractor shall submit
proposals to comply with the new or revised standards,
specifications, regulations, etc., to the Owner's Representative. In
the event that the Owner's Representative determines that such
proposals constitute a variation, he shall then initiate a variation in
accordance with GCC Clause 63.
43. Inspection and Tests
43.1 The Owner or its representative shall have the right to inspect
and/or to test the Plant and Equipment or Works in accordance with
the provision stated in the Technical Specifications. If factory test is
required in the Technical Data Sheets, the Owner shall notify the
Contractor in writing, in a timely manner, of the identity of any
representatives retained for these purposes.
43.2 If applicable, the inspections and tests may be conducted on the

premises of the Contractor or its subcontractor(s), at point of
delivery, and/or at the Plant and Equipment' final destination. If
conducted on the premises of the Contractor or its subcontractor(s) ,
all reasonable facilities and assistance, including access to drawings

and production data, shall be furnished to the inspectors at no

charge to the Owner.
43.3 Whenever the Contractor is ready to carry out any such test and
inspection, it shall give a reasonable advance notice, including the
place and time, to the Owner. The Contractor shall obtain from any
relevant third party or manufacturer any necessary permission or
consent to enable the Owner or its designated representative to
attend the test and/or inspection.
43.4 The Owner may require the Contractor to carry out any test and/or
inspection not required by the Contract but deemed necessary to
verify that the characteristics and performance of the Plant and
Equipment comply with the technical specifications, codes and
standards under the Contract, provided that the Contractor's
reasonable costs and expenses incurred in the carrying out of such
test and/or inspection shall be added to the Contract Price. Further,
if such test and/or inspection impede the progress of manufacturing
and/or the Contractor's performance of its other obligations under
the Contract, due allowance will be made in respect of the Delivery
Dates and Completion Dates and the other obligations so affected.
43.5 The Contractor shall provide the Owner with a report of the results
of any such test and/or inspection.
43.6 The Owner may reject any Plant and Equipment or Works or any
part thereof that fail to pass any test and/or inspection or do not
conform to the specifications. The Contractor shall either rectify or
replace such rejected Plant and Equipment or parts thereof or make
alterations necessary to meet the specifications at no cost to the
Owner, and shall repeat the test and/or inspection, at no cost to the
Owner, upon giving a notice pursuant to GCC Clause 3.
43.7 The Contractor agrees that neither the execution of a test and/or
inspection of the Plant and Equipment or Works or any part thereof,
nor the attendance by the Owner or its representative, shall release
the Contractor from any warranties or other obligations under this
Contract.
43.8 Nothing in this clause shall in any way release the Contractor from
any warranty or other obligations under this Contract.
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CONTRACT TIME, COMPLETION AND DELAYS
44. Contract Time
44.1 The whole of the Works and its various components, segments or
stages, if applicable, under this Contract shall be completed within
the time stated in the SCC reckoned from the Start Date, plus any
contract time extension, as may be allowed under GCC Clause 46.
For this purpose, the period to complete each component, segment
or stage shall be treated as a separate Contract Time.
44.2 Completion of Works
Upon the request of the Contractor, or upon determination by the

Owner that the project, or its components, segments or stages is
ready for inspection, the Owner shall create an inspectorate team to
make preliminary inspection and punch list. The Owner will submit a
punch-list to the Contractor in preparation for the final turnover of
the project.
The punch-list will contain , among others, the remaining Works,

work deficiencies for necessary corrections, and the specific
duration/time to fully complete the project considering the approved
remaining contract time. The Inspectorate Team shall issue an
Inspection Report upon completion or correction of works in the
punch list. This procedure, however, shall not preclude the claim of
the Owner for liquidated damages.
44.3 Certificate of Final Completion
When the whole of the Works have been completed and have
satisfactorily passed all final tests that are required by the Contract,
the Contractor may give notice to this effect to the Owner. Such
notice shall be deemed to be a request by the Contractor for the
Owner to issue a Certificate of Final Completion in respect of the
Works.
For projects with various components, segments, or stages, which

are dependent to each other, the Owner shall issue a Certificate of
Final Completion only upon the completion of whole of the Works.
For projects with independent components, segments or stages, the
Owner shall issue individual Certificates of Final Completion for
each component, segment or stage, from which the defects liability
period for each component, segment or stage shall commence.
The Owner shall, within fifteen (15) days from receipt of such notice,
issue a Certificate of Final Completion stating the date on which, in
its opinion, the Works were completed in accordance with the
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Contract, and upon submission by the Contractor of the following

documents:
a. a sworn statement, in a form satisfactory to the Owner, that all

liabilities incurred by the Contractor in carrying out the Contract
were paid, and that there are no outstanding liens,
garnishments, attachments or claims relating to the Works;
b. a quitclaim and release by the Contractor, in a form satisfactory

to the Owner, releasing the Owner from, or waiving against it,
any further claims relating to the Contract;
c. the Contractor's final measurement and claim for payment;
d. set of As-Built Drawings, if applicable;
e. Inspection Report; and
f. Other documents as may be required in the SCC.
45. Program of Work
45.1 Critical Path Network and Time Bar Diagram
Immediately after the receipt of Notice of Award and before the

signing of the Contract, the Contractor shall submit the Critical Path
Network and Time Bar Diagram in accordance with the Contract for
the approval of the Owner. The "Agreed Critical Path Network" and
the "Agreed Time Bar Diagram" shall not be revised or modified
without the prior written approval of the Owner, except where an
extension of the contract period is approved in accordance with
GCC Clause 46, Extension of Contract Time.
Every month thereafter during the life of the Contract, the Contractor
shall furnish the Owner with a certificate to the effect that "Agreed
Critical Path Network" and "Agreed Time Bar Diagram", or as the
case may be, their latest approved revisions are still in effect. Any
approved revisions and subsequent approved revisions thereof,
shall be prepared based only on the previous Agreed Critical Path
Network and Agreed Time Bar Diagram. If, in the opinion of the
Owner, the Works are not being adequately or properly prosecuted
in any respect, the Owner shall require the Contractor to submit a
new Critical Path Network and Time Bar Diagram providing for the
proper and timely completion of the Works.
The Contractor shall see to it that the "Agreed Critical Path Network"
is followed as much as possible. No activity in the Network shall be
started ahead of time at the expense of another unless it can be
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shown that the change in the sequence of operations is beneficial to

the Owner, in which case the prior approval of the Owner shall be
secured.
The Agreed/revised-Agreed Critical Path Network and Agreed/

revised-Agreed Time Bar Diagram shall form part of the supporting
documents in evaluating requests of Contractor for extension of
contract time and/or in evaluating claims for price escalation , if shall
be allowed.
45.2 Schedule of Accomplishment
The successful Bidder shall submit, together with and in relation to

the "Agreed Critical Path Network", "Agreed Time Bar Diagram" and
"Agreed Cash Flow and Payment Schedule" a tabulated schedule of
anticipated monthly accomplishment and contract value of each item
in the Bill of Quantities for every month covered by the Contract
Period.
45.3 Cash Flow and Payment Schedule
In accordance with "Critical Path Network" and the "Time Bar

Diagram", the Contractor shall submit a cash flow and payment
schedule for approval of the Owner.
45.4 Percentage the Contractor is Ahead or Behind Schedule
The percentage which shall be the basis of judgment on the

progress of the Works shall be computed in percent of progress in
each different items of Works and integrated on the "Agreed Critical
Path Network" and "Agreed Time Bar Diagram", (with approved
modifications or revisions , if any). The actual value or quantity of
work done divided by the value or the quantity of the total work,
respectively, and multiplied by one hundred (1 00) shall be the
Contractor's percentage of accomplishment. The difference between
percentage of accomplishment and the anticipated percentage on
the "Agreed Critical Path Network" and "Agreed Time Bar Diagram"
is the percentage which shall determine if the Contractor is ahead or
behind in its work.
45.5 If, in the opinion of the Owner, the Contractor falls behind his work
schedule, the Contractor shall take such steps as may be necessary
to improve its work progress and submit a supplemental schedule or
schedules as may be directed to demonstrate the manner in which
the agreed rate of progress will be regained. In the event the
Contractor fails to demonstrate to the satisfaction of the Owner that
he can regain the agreed progress or falls behind on the revised
work schedule, the Owner may require him to increase the number
of shifts and/or overtime operations, days of work, and/or the
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amount of construction plant or equipment, all without additional

cost to the Owner.
45.6 None of the statements contained herein, nor anything in the

Owner's Tentative Construction Schedule shall relieve the
Contractor of the obligation to commence, prosecute and complete
the Works.
45.7 After the receipt of the Notice of Award and before the signing of the
Contract, the Contractor shall submit the Program of Work showing
the general methods, arrangements, and schedule of all the
activities involved in the execution of the Works to the Owner's
Representative for the latter's approval.
45.8 An update of the Program of Work shall show the actual progress
achieved on each activity and the effect of the progress achieved on
the timing of the remaining work, including any changes to the
sequence of the activities.
45.9 The Contractor shall submit to the Owner's Representative for

approval an updated Program of Work at intervals no longer than
once a month. If the Contractor does not submit an updated
Program of Work within this period , the Owner's Representative
may withhold the amount of one percent (1 %) of the billing for the
month of the next payment certificate and continue to withhold this
amount until the next payment after the date on which the overdue
Program of Work has been submitted.
45.10 The Owner's Representative's approval of the Program of Work

shall not alter the Contractor's obligations. The Contractor may
revise the Program of Work and submit it to the Owner's
Representative again at any time. A revised Program of Work shall
show the effect of any approved Variations.
45.11 When the Program of Work is updated, the Contractor shall provide
the Owner's Representative with an updated cash flow forecast. The
cash flow forecast shall include different currencies, as defined in
the Contract, converted as necessary using the Contract exchange
rates.
45.12 All Variations shall be included in updated Program of Work

produced by the Contractor.
45.13 Submission, Review, Revision and Approval of Contractor's!

Manufacturer's Design Documents and Drawings
a. Within thirty (30) days upon Contract Effectivity, the Contractor

shall submit "Masterlist of Design Documents/Drawings" required
for the project. The Masterlist shall include proposed schedule of
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submission of documents/drawings for concurrence by the

Owner. Detailed documents/drawings to be prepared by the
Contractor are prescribed in NGCP Standard Specifications,
General Administrative Requirements, Clause 1.6. Typical
Sample of Masterlist of Design Documents/Drawings is attached
as Annex B.
b. The Contractor shall comply with the sequence of submittal of

design documents/drawings such that the documents needed for
procurement of equipment/materials (basic drawings, equipment/
material specifications, technical data sheets, nameplate and
catalogue cut, outline manufacturing drawings, design
calculations, etc.) shall be submitted ahead of
documents/drawings for construction.
These manufacturing/design drawings shall be submitted sixty

(60) days from Contract Effectivity while the documents/drawings
for construction shall be submitted at least thirty (30) calendar
days prior to actual construction works, all in accordance with the
schedules indicated in the agreed Masterlist of Design
Documents/Drawings. Consequent delays in the approval of
Contractor's documents/drawings due to late submission of
Contractor shall not be considered as a reason for contract time
extension.
c. The Owner shall complete the review and/or approval of

Contractor's documents/drawings within twenty (20) calendar
days after receipt by the Owner's Representative, provided that
the documents/drawings are submitted in accordance with the
schedule indicated in the Masterlist of Design Documents/
Drawings. Similarly, subsequent submission of revised
documents/drawings shall be processed within twenty (20)
calendar days. Furthermore, documents/ drawings which are
submitted earlier than the agreed schedule may not be
processed until the scheduled date of submission. Delay in the
approval of documents/ drawings on submissions which were not
in accordance with the agreed schedule shall not be considered
as a reason for time extension.
d. The Contractor shall strictly comply with the corrections made by

the Owner on the drawings/documents within the period required
by the Owner. Delays in the approval of Contractor's
drawings/documents due to revisions and non-compliance of
Contractor to the Owner's specifications shall not be considered
as a reason for contract time extension.
e. No revisions shall be made after a drawing has been "Approved"

unless otherwise directed by the Owner.
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45.14 Schedule of Testing and Commissioning , Request for Shutdown by

the Contractor
The Contractor is required to conduct study and propose schemes

on how to avoid and/or minimize the system shutdown period during
construction activities which involve installation , testing and
commissioning. If found necessary to request shutdown in the
system , the Contractor is required to submit to the Owner their
request, forty five (45) calendar days from the proposed shutdown
schedule. Otherwise, there will be no assurance that shutdown shall
be granted on the requested date. Consequent to this, NGCP shall
not be liable for the cause of delay in the commissioning of the
project resulting from the deferment of the proposed shutdown
schedule and the Contractor cannot use this as reason for contract
time extension.
46. Extension of Contract Time
46.1 Should the amount of additional work of any kind , or other

significant circumstances of any kind whatsoever, occur such as to
fairly entitle the Contractor to an extension of contract time, the
Owner may, upon its own initiative, or upon notice of the Contractor,
grant contract time extension.
In the latter case, the Owner is not bound to take into account any
claim for an extension of time unless the Contractor has delivered
Notice to the Owner, prior to the expiration of the contract time for
the whole of the Works, or for each component, segment or stage,
and within thirty (30) days after such work has been commenced, or
not later than thirty (30) days after the circumstances leading to
such claim have arisen.
46.2 Failure to provide such notice shall constitute a waiver by the

Contractor of any claim. Upon receipt of full and detailed particulars,
the Owner shall examine the facts and extent of the delay and shall
extend the contract time for completing the Works when, in the
Owner's opinion , the findings of facts justify an extension.
46.3 Requests for Contract Time Extensions not acted upon by the
Owner within a period thirty (30) days from receipt thereof, shall be
deemed disapproved by the Owner.
46.4 For Projects with various components, segments or stages, the

Contractor shall specify the particular component, segment or stage ,
where claim for extension is requested. Accordingly, the Owner shall
specify the approved Contract Time Extension for each component,
segment, or stage, and such approved Contract Time Extension
shall not affect the contract time for other components, segments or
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stages, unless it can be proven that the contract time extension will
affect the other components, segments or the succeeding stages. In
such case, the Owner shall specify the approved Contract Time
Extension for each component, segment or stage, so affected.
46.5 No extension of contract time shall be granted the Contractor due to

(a) any rainy/unfavorable weather condition except during typhoon;
and (b) inexcusable failure or negligence of Contractor to provide
the required equipment, supplies or materials.
46.6 In case of occurrence of significant circumstances or events, the

Owner and Contractor shall record such circumstances or events to
document its occurrence, but the Owner is not bound to grant
contract time extension, unless it can be proven that such significant
circumstances or events will affect the completion of the Project.
46.7 Generally, variation order is not a ground for extension of contract

time. Extension of contract time may be granted only when the
affected activities fall within the critical path of the PERT/CPM
network based on the approved Project Implementation Schedule of
the whole works, or per component, segment or stage, as the case
may be.
46.8 Extension of contract time may be granted for other causes such as:
a. Typhoons, earthquakes and other Force Majeure events;
b. Right-Of-Way concerns, if any, as indicated in the SCC;
c. Other causes or situations which are beyond the control of the

Owner or the Contractor and mutually agreed to by the Owner
and Contractor.
46.9 The Contractor shall be required to extend the validity period of the
Performance Security in case of Contract Time Extensions until the
date of Final Acceptance of the Project.
47. Early Warning
47.1 The Contractor shall warn the Owner's Representative at the

earliest opportunity of specific likely future events or circumstances
that may adversely affect the quality of the work, increase the
Contract Price, or delay the execution of the Works. The Owner's
Representative may require the Contractor to provide an estimate of
the expected effect of the future event or circumstance on the
Contract Price and Completion Date. The estimate shall be provided
by the Contractor as soon as reasonably possible.
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47.2 The Contractor shall cooperate with the Owner's Representative in

making and considering proposals on how the effect of such an
event or circumstance can be avoided or reduced by anyone
involved in the work and in carrying out any resulting instruction of
the Owner's Representative.
48. Liquidated Damages
48.1 If the Works is not completed within the period indicated in GCC
Clause 44 (Contract Time), or in case of projects with various
components, segments or stages, within the period indicated in
each component, segment or stage under GCC Clause 44, inclusive
of any duly approved contract time extensions, the Contractor shall ,
without need of any demand, pay the Owner, liquidated damages an
amount equal to one-tenth (1 /1 0) of one percent (1 %) of the Total
Contract Price, for every day of delay, but in no case shall the
liquidated damages exceed ten percent (1 0%) of the Total Contract
Price, unless otherwise stated in the SCC.
48 .2 The liquidated damages shall be immediately due and demandable

upon the expiration of the Contract Time and any approved Contract
Time Extensions, and shall be imposed in whatever stage of the
project, from the intended completion date until the date the Works
are actually completed , without prejudice to such other remedies as
the Owner may, in its discretion, employ including the termination of
this Contract.
48.3 For projects with various components, segments or stages, the

liquidated damages is due and demandable upon the expiration of
Contract Time for each component, segment or stage until the
works for such component, segment or stage are actually
completed.
48.4 To be entitled to such liquidated damages, the Owner does not have
to prove that it has incurred actual damages. Any sum payable to
the Owner for such liquidated damages shall be deducted from:
a. the amounts retained under GCC Clause 74 (Retention Money);

or
b. the amounts which may be due or become due the Contractor

when any particular works called for under the Contract shall
have been finished or completed (progress billing); or
c. Other amounts due to the Contractor under any other

contracts/projects with the Owner in accordance with GCC
Clause 75, Offsetting of Outstanding Obligations of the
Contractor; or
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d. Other securities posted by the Contractor, or as may be required

to be posted by the Owner, whichever is convenient to the
Owner.
48.5 In case the amount of liquidated damages exceeds ten percent

(1 0%) of the Total Contract Price, the Owner has the option to
terminate the Contract and take over the Project or award the same
to another contractor, and to forfeit the performance security. The
amount of the forfeited performance security shall be in addition to
the amount of liquidated damages that the Contractor shall pay the
Owner under the provisions of this clause.
48.6 The obligation of the Contractor to pay liquidated damages shall not
relieve the Contractor from its obligation to complete and finish the
performance of the Works.
48.7 Neither the taking over by the Owner of the Work for completion by
administration nor the award of the same to another Contractor shall
be construed as a waiver of the Owner's rights to recover liquidated
damages against the Contractor.
48.8 The provisions for liquidated damages shall not prevent the Owner
from terminating the rights of the Contractor and to proceed in taking
over the Works in case of default, as provided for in GCC Clause
52, Right of the Owner to Take Over.
49. Suspension of Work
49.1 The Owner shall have the authority to suspend the work wholly or
partly by written order for such period as may be deemed
necessary: (1) due to force majeure or any fortuitous events, (2) for
failure on the part of the Contractor to correct bad conditions which
are unsafe for workers, or for the general public, (3) to carry out
valid orders given by the Owner (4) to perform any provisions of the
Contract, and (5) due to adjustment of plans to suit field conditions
as found necessary during construction. The Contractor shall
immediately comply with such order to suspend the work wholly or
partly.
49.2 The Contractor or its duly authorized representative shall have the
right to suspend work operation on any or all projects/activities along
the critical path of activities after fifteen (15) calendar days from date
of receipt by the Owner of the written notice from the Contractor
without the Owner acting on the written notice, under any of the
following cases:
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a. There exist right-of-way problems which prohibit the Contractor

from performing work in accordance with the approved
construction schedule.
b. Requisite construction plans which must be owner-furnished are

not issued to the Contractor precluding any work called for by
such plans.
c. Peace and order conditions make it extremely dangerous, or

impossible, to work. However, this condition must be certified in
writing by the Philippine National Police (PNP) station which has
responsibility over the affected area and confirmed by the
Department of Interior and Local Government (DILG) Regional
Director.
d. Delay in the payment of Contractor's claim for progress billing

beyond forty-five (45) calendar days from the time the
Contractor's claim has been certified to by the Owner's
authorized representative that the documents are complete
unless there are justifiable reasons for the same which shall be
communicated in writing to the Contractor.
49.3 In case of total suspension, or suspension of activities along the

critical path, which is not due to any fault of the Contractor, the
elapsed time between the effective order of suspending operation
and the order to resume work shall be allowed the Contractor by
adjusting the contract time accordingly.
49.4 Before the suspension order expires, the Owner shall either lift such
order or terminate the work covered by the same. If the suspension
order is lifted, or if the period of the order expires, the Contractor
shall have the right to resume work. Appropriate adjustments shall
be made in the contract schedule, accordingly.
50. Acceleration and Delays Ordered by the Owner's Representative
50.1 When the Owner wants the Contractor to finish before the Contract
Time of the whole of the Works, or for each component, segment or
stage, as the case may be, the Owner's Representative will obtain
price proposal for achieving the necessary acceleration from the
Contractor. If the Owner accepts this proposal, the Contract Time of
the whole of the Works, or for each component, segment or stage,
will be adjusted accordingly and confirmed by both the Owner and
the Contractor.
50.2 If the Contractor's Financial Proposal for acceleration is accepted by

the Owner, it will be incorporated in the Contract Price and treated
as a Variation.
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OWNER'S TAKING OVER
51. Taking Over
51 .1 The Owner shall take over the Site and the Works, or any
component, segment or portion thereof, within seven (7) days from
the date the Owner's Representative issues a Certificate of Final
Completion.
52. Right of the Owner to Take Over
52.1 If the Contractor fails to complete the Works herein specified and
agreed upon, or if the Works are abandoned, or the Contract is
assigned otherwise than specified herein, or if at any time the
Owner is of the opinion , after verifying the facts, that the Works or
portion thereof are unnecessarily or unreasonably delayed, or that
the Contractor is violating any of the conditions, covenants and
agreements of this Contract, or he is not executing the same in
good faith or is not making such progress in the Works or portion
thereof as to insure its completion within the required time, then in
any of these cases, the Owner shall have the right to take over the
Works or portions thereof, by giving notice in writing to that effect to
the Contractor and its sureties of the intention of the Owner to take
over the Works, or portion thereof. Such notice shall contain the
reasons for such intention to take over.
52.2 If within ten (1 0) calendar days after serving such notice, the
Contractor fails to remove the cause or causes of the delay or the
violation or if the Contractor fails to make satisfactory arrangement
for its correction, upon expiration of said ten (1 0) calendar days, the
right of the Contractor to execute the Works, or portion thereof,
himself ceases.
52.3 Upon expiration of the said ten (1 0) calendar days, the Owner shall
proceed to take over and perform the Works or portions thereof,
either by administration or otherwise for the account of, and
chargeable to the Contractor.
52.4 The Owner may use such equipment, tools, appliances and
materials of every description owned by the Contractor as may be
found on the Site of the Works or at points where materials are built
or framed for the Works, and also may procure such or other
equipment, tools and materials for the completion of the Works or
portions thereof, as may be required.
52.5 Before such equipment, tools, appliances and materials are used by
the Owner, they shall be inventoried in the presence of
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representatives of the Owner and the Contractor. If the

representative of the latter is unavailable or if the Contractor refuses
to appoint such representative, then the inventory made by the
representative of the Owner shall be considered binding to both
parties.
52.6 The determination by the Owner of the existence of facts justifying a

takeover shall be binding upon the Contractor unless such
determination, if in the opinion of the Contractor is unreasonable,
arbitrary or unfair, in which case the Contractor may raise its appeal
in accordance with GCC Clause 87, Settlement of Disputes,
provided however, that pending such appeal as above outlined, the
implementation of the immediate take over may, at the option of the
Owner, proceed.
52.7 Should the Owner take over the Works or portions thereof, and
complete it by administration or otherwise, it shall ascertain and fix
the value of the Works already completed by the Contractor but not
paid for and all usable materials on the Site of the Works taken over
by the Owner. The price of completing the Works or portions thereof
shall be charged against the Contract Price of the remaining work
including retention money and in case of insufficiency thereof, the
excess shall be charged to the Contractor and/or its Performance
Securities.
52.8 In the event the total expenditures of the Owner on completion of

the Works or portions thereof taken over, including charges against
the Works prior to the taking over of the Works, are not in excess of
the Contract Price, the difference between the total Contract Price
and the said total expenditures including charges against the Works
prior to the taking over of the work shall be applied to settle claims
filed under GCC Clause 73.6, Final Payment, and the balance if
any, shall be paid to the Contractor; but no amount in excess of the
combined value of the unpaid completed work, retained
percentages and usable materials at the time of the taking over of
the Works shall be paid, nor shall any claim for prospective profits of
the work done after the Owner shall have taken over, be considered
or allowed.
52.9 It is expressly agreed that in the event the Owner takes over the
Works or portions thereof, from the Contractor, the latter and its
sureties shall continue to be liable under this Contract for any
expense in the completion of the Works in excess of the Contract
Price and the Performance Securities filed by the Contractor shall
be answerable for such expenses and for any and all damages that
the Owner may suffer as a result of and in connection with the
takeover.
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53. Waiver
53.1 Neither an extension of time nor the acceptance of any part of the
Works shall be deemed a waiver by the Owner of the right to take
over the Works for any of the causes expressly provided for in GCC
Clause 52, Right of the Owner to Take Over.
54. Final Acceptance
54.1 Upon expiry of the Defects Liability Period, provided that there are
no reservations pending in the Works, the Owner shall issue the
Certificate of Final Acceptance for the completed Works.
54.2 No certificate other than the Certificate of Final Acceptance shall be

deemed to constitute approval of the Works or other matter in
respect of which is issued or shall be taken as an admission of the
performance of the Contract or any portion thereof or of additional or
varied work having been ordered by the Owner nor shall any other
certificate conclude or prejudice any of the right of the Owner.
54.3 The Contract shall not be considered as completed until a Certificate

of Final Acceptance shall have been signed and issued by the
Owner stating that the Works have been completed and maintained
to their satisfaction.
54.4 The Certificate of Final Acceptance will be issued by the Owner

within thirty (30) calendar days after the expiration of the Defects
Liability Period (or if different defects liability periods shall become
applicable to different portions of the Works, the expiration of the
last of such period) or as soon thereafter as any works ordered
during such period pursuant to GCC Clause 12, Instructions,
Inspections and Audits and GCC Clause 55, Defects Liability Period
shall have been completed to the satisfaction of the Owner and in
full effect shall be given to this provision notwithstanding any
previous entry on the works or taking possession, working or using
thereof or any part thereof by the Owner.
DEFECTS LIABILITY
55. Defects Liability Period
55.1 The Contractor shall assume full responsibility for the Works from
the time the project commenced up to Final Acceptance by the
Owner and shall be held responsible for any damage or destruction
of the Works except those occasioned by force majeure. The
Contractor shall be fully responsible for the safety, protection,

security, and convenience of his personnel, third parties, and the

public at large, as well as the Works, Plant and Equipment,
installation, and the like to be affected by his construction work.
55.2 The Defects Liability Period shall be one (1) year, or as extended for
the period stated in the SCC, from project completion up to Final
Acceptance by the Owner. For project with various independent
components, segments, or stages with individual Contract Time and
completion date, Defects Liability Period shall commence from the
completion date of each component, segment, or stage.
55.3 During this period, the Contractor shall undertake the repair works,
at his own expense, of any damage to the Works on account of any
breach of contract by the Contractor, including the use of materials
of inferior quality, within ninety (90) days from the time the Owner
has issued an order to undertake repair. In case of failure or refusal
of the Contractor to comply with this order, the Owner shall
undertake such repair works and shall be entitled to full
reimbursement of expenses incurred therein upon demand from the
Contractor.
55.4 In case the Contractor fails to comply with the preceding paragraph,
it shall be disqualified from participating in any bidding conducted by
the Owner and its property or properties shall be subject to
attachment or garnishment proceedings to recover the costs. All
payables of the Owner in the Contractor's favor shall be offset to
recover the costs.
56. Identifying Defects
56.1 The Owner's Representative shall check the Contractor's work and
notify the Contractor of any defects that are found. Such checking
shall not affect the Contractor's responsibilities. The Owner's
Representative may instruct the Contractor to search , uncover
defects and test any work that the Owner's Representative
considers below standard or defective.
57. Cost of Repairs
57.1 Loss or damage to the Works or Materials to be incorporated in the

Works between the Start Date and the end of the Defects Liability
Periods shall be remedied by the Contractor at its expense if the
loss or damage arises from its acts or omissions.

58. Correction of Defects
58.1 The Owner's Representative shall give notice to the Contractor of

any defects before the end of the Defects Liability Period, which
begins at Completion Date up to Final Acceptance by the Owner.
The Defects Liability Period shall be reasonably extended for as
long as defects remain uncorrected, and the validity of the
Performance Security shall be extended for the same period.
58.2 Every time notice of defect is given by the Owner's representative;

the Contractor shall correct the said defect within the length of time
specified in the notice.
58.3 The Contractor shall correct the defects which it discovers before
the end of the Defects Liability Period.
58.4 The Owner shall certify that all defects have been corrected. If the
Owner considers that correction of a defect is not essential, it can
request the Contractor to submit a quotation for the corresponding
reduction in the Contract Price. If the Owner accepts the quotation,
the corresponding change is a Variation.
59. Uncorrected Defects
59.1 The Owner shall give the Contractor at least fourteen (14) days'
notice if it has the intention to use a third party to correct a Defect. If
the Contractor does not correct the Defect within the period, the
Owner may have the Defect corrected by the third party. The Owner
shall be entitled to full reimbursement of expenses incurred therein
upon demand from the Contractor.
59.2 The use of a third party to correct defects that are uncorrected by
the Contractor will in no way relieve the Contractor of its liabilities
and warranties under the Contract.
60. Warranty Period and Warranty Security
60.1 The Contractor warrants that the Works or any part thereof shall be
free from defects in the design, engineering, materials and
workmanship of the Plant and Equipment supplied and of the Works
executed.
60.2 The Warranty Period shall be one (1) year from the date of Final
Acceptance of the Project, or as extended for the period stated in
the SCC. For projects with various independent components,
segments, or stages with individual date of Final Acceptance, the
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Warranty Period shall commence from the date of Final Acceptance

of each component, segment, or stage.
The Contractor shall be required to post a Warranty Security in the

form of Surety Bond callable on demand issued by a bonding
company accredited by the Owner, in the amount of Ten Percent
(1 0%) of the Total Contract Price. In case of Projects with various
independent components, segments or stages, the Contractor shall
be required to post a separate Warranty Security for each
component, segment or stage.
The Warranty Security shall remain effective during the Warranty

Period and shall be returned only after the lapse of the said
Warranty Period. The proceeds of the Warranty Security shall be
payable to the Owner as compensation for any defective Works,
Plant, Equipment and Materials during the Warranty Period.
60.3 If during the Warranty Period a defect is discovered in the design ,

engineering, materials and workmanship of the Plant and Equipment
supplied or of the Works executed by the Contractor, the Contractor
shall promptly, in consultation and in agreement with the Owner
regarding the appropriate remedy for the defects, and at the
Contractor's cost, repair, replace or otherwise make good as the
Contractor shall determine at its discretion, such defect as well as
any damage to the Works caused by such defect. The Contractor
shall not be responsible for the repair, replacement or making good
of any defect or of any damage to the Works arising out of or
resulting from any of the following causes:
a. improper operation or maintenance of the Plant and Equipment

by the Owner;
b. operation of the Plant and Equipment outside specifications

provided in the Contract; or
c. normal wear and tear.
60.4 The Contractor's obligations under this GCC Clause 60 shall not
apply to:
a. any materials that are supplied by the Owner, if applicable, are

normally consumed in operation, or have a normal life shorter
than the Warranty Period stated herein ;
b. any designs, specifications or other data designed, supplied or

specified by or on behalf of the Owner or any matters for which
the Contractor has disclaimed responsibility herein; or
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c. any other materials supplied or any other work executed by or on

behalf of the Owner, except for the work executed by the Owner
under GCC Clause 60.1 0.
60.5 The Owner shall give the Contractor a notice stating the nature of
any defect together with evidence thereof, promptly upon discovery.
The Owner shall afford all reasonable opportunities for the
Contractor to inspect such defect.
60.6 The Owner shall afford the Contractor all necessary access to the
Plant and Equipment and the Site to enable the Contractor to
perform its obligations under this GCC Clause 60.
60.7 The Contractor may, with the consent of the Owner, remove from
the Site any Plant or any part of the Plant and Equipment that are
defective if the nature of the defect, and/or any damage to the Plant
and Equipment caused by the defect, is such that repairs cannot be
expeditiously carried out at the Site.
60.8 If the repair, replacement or making good is of such a character that

it may affect the efficiency of the Plant and Equipment or any part
thereof, the Owner may give to the Contractor a notice requiring that
tests of the defective part of the Plant and Equipment shall be made
by the Contractor immediately upon completion of such remedial
work, whereupon the Contractor shall carry out such tests.
60.9 If such part fails the tests, the Contractor shall carry out further
repair, replacement or making good, as the case may be, until that
part of the Plant and Equipment passes such tests. The tests shall
be agreed upon by the Owner and the Contractor.
60.10 If the Contractor fails to commence the work necessary to remedy

defects or damage within a fifteen (15) day period, the Owner may,
following notice to the Contractor, proceed to do such Works, and
the reasonable costs incurred by the Owner shall be paid to the
Owner by the Contractor or may be deducted by the Owner from
any monies due the Contractor or claimed under the Warranty
Security.
60.11 If the Plant and Equipment or any part of the completed Works
cannot be used by reason of a defect or failure to correct such
defects, the Warranty Period of the Plant and Equipment or such
part of the completed Works, as the case may be, shall be extended
by a period equal to the period during which the Plant and
Equipment or such part of the completed Works cannot be used by
the Owner because of the defects or failure to correct such defects.
60.12 Except as provided in GCC Clauses 60, the Contractor shall not be
liable in respect of defects in the Plant and Equipment or any part
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thereof, design or engineering or work executed that appear after

Final Acceptance except where such defects are the result of the
gross negligence, fraud, criminal or willful action of the Contractor.
60.13 In addition, any such component of the Plant and Equipment shall
be subject to an extended Warranty Period. Such obligation of the
Contractor shall be in addition to the Warranty Period specified
under GCC Clause 60.2.
61. Clean Up
61.1 When the Works are completed and before the issuance of the
Certificate of Final Completion, the Contractor shall remove from the
Site, without expense to the Owner, all temporary structures, all
surplus materials (except the imported unused/excess materials
which shall be turned-over to the Owner in accordance with GCC
Clause 36.4) and rubbish of every sort, shall fill and dress all holes
and cavities made for Contractor's convenience, and shall leave the
whole area in good order and condition , all as required and directed
by the Owner.
VARIATIONS AND ADJUSTMENTS
62. Right to Vary
62.1 The Owner's Representative with the prior approval of the Owner
may instruct Variations, up to a maximum cumulative amount of ten
percent (1 0%) of the original contract cost.
62.2 Variations shall be valued as follows:
a. At a lump sum price agreed between the parties;
b. where appropriate, at rates in this Contract;
c. in the absence of appropriate rates, the rates in this Contract

shall be used as the basis for valuation; or failing which
d. at appropriate new rates, equal to or lower than current industry

rates and to be agreed upon by both parties and approved by
the Owner.
63. Variation Orders
63.1 Variation Orders may be issued by the Owner to cover any increase/
decrease in quantities, including the introduction of new work items
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that are not included in the original Contract or reclassification of

work items that are either due to change of plans, design or
alignment to suit actual field conditions resulting in disparity between
the preconstruction plans used for purposes of bidding and the "as
staked plans" or construction drawings prepared after a joint survey
by the Contractor and the Owner after award of the Contract,
provided that the cumulative amount of the Variation Order does not
exceed ten percent (1 0%} of the original project cost. The addition/
deletion of Works shall be within the general scope of the project as
bid and awarded. A Variation Order may either be in the form of a
Change Order or Extra Work Order.
63.2 A Change Order may be issued by the Owner's approving authority

to cover any increase/decrease in quantities of original Work items
in the Contract.
63.3 An Extra Work Order may be issued by the Owner's approving

authority to cover the introduction of new work necessary for the
completion, improvement or protection of the project which were not
included as items of Work in the original Contract, such as, where
there are subsurface or latent physical conditions at the site
substantially different from those indicated in the Contract, or where
there are unknown physical conditions at the site of an unusual
nature substantially different from those ordinarily encountered and
generally recognized as inherent in the Work or character provided
for in the Contract.
63.4 Any cumulative Variation Order beyond ten percent (1 0%) shall be
subject of another contract to be bid out if the works are separable
from the original contract. In exceptional cases where it is urgently
necessary to complete the original scope of work, the Owner may
authorize the Variation Order beyond ten percent (1 0%) but not
more than twenty percent (20%).
63.5 In claiming for any Variation Order, the Contractor shall, within
seven (7) calendar days after such work has been commenced or
after the circumstances leading to such condition(s) leading to the
extra cost, and within twenty-eight (28) calendar days deliver a
written communication giving full and detailed particulars of any
extra cost in order that it may be investigated at that time. Failure to
provide either of such notices in the time stipulated shall constitute a
waiver by the Contractor for any claim.
64. Extra Work May Be Awarded to Other Person or Contractor
64.1 In case any Extra Work shall be required in the proper performance
of the Works contemplated under this Contract, it is understood that
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if the Contractor and the Owner fail to arrive at any agreement as to

the price of such extra work, the Owner reserves the right to have
such extra work done by another person or firm, other than the
Contractor or to perform the same by day labor under the charge
and supervision of the Owner and no claim of any sort shall be
made by the Contractor on account thereof.
65. Prices
65.1 Prices charged by the Contractor for Works performed under this
Contract shall not vary from the prices quoted by the Contractor in
its Bid, with the exception of any change in price resulting from a
Change Order issued in accordance with GCC Clause 63.
66. Price Adjustment
66.1 For the given scope of work in this Contract as awarded, all bid
prices are considered fixed prices, and therefore not subject to price
escalation during contract duration, except under extraordinary
circumstances and upon approval of the Owner.
66.2 The Contractor shall pay all applicable fees and other similar
expenses in consequence of his obligations under the Contract, and
the Contract Price shall not be adjusted for such costs, except as
stated herewith.
67. Changes in Laws and Regulations
67.1 Unless otherwise specified in the Contract, if after the date of the
Invitation to Bid, in the Philippines, any law, regulation, ordinance ,
order or by-law having the force of law is enacted, promulgated ,
abrogated or changed (which shall be deemed to include any
change in interpretation or application by the competent authorities)
that subsequently affects the costs and expenses of the Contractor
and/or the time schedule prescribed by the Owner in GCC Clause
44.2, Completion of Works, the Contract Price shall be
correspondingly increased or decreased, and/or the time schedule
prescribed by the Owner, shall be reasonably adjusted to the extent
that the Contractor has thereby been affected in the performance of
any of its obligations under the Contract. Notwithstanding the
foregoing, such additional or reduced costs shall not be separately
paid or credited if the same has already been accounted for in the
price adjustment provisions where applicable , in accordance with
GCC Clause 66.1 .
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CONTRACT PRICE AND PAYMENT
68. Advance Payment
68.1 The Owner shall, upon a written request of the Contractor, which
shall be submitted as a Contract Document, make an advance
payment to the Contractor for an amount not to exceed fifteen
percent (15%) of the Total Contract Price, provided that the
Contractor has posted an acceptable Performance Security required
under the Contract.
68.2 The advance payment shall be repaid by the Contractor by

deducting a percentage equal to that used for the advance payment
from periodic progress payments to be made to the Contractor.
69. Progress Payments
69.1 The Contractor may submit a request for payment for Work
accomplished. Such request for payment shall be verified and
certified by the Owner's Representative.
The Contractor may request for Partial Payment for the delivered/
accepted materials per shipment at site and/or Partial Payment for
completed works subject to approval by the Owner.
69.2 The Owner shall have the right to deduct from the Contractor's
progress billing such amount as may be necessary to cover third
party liabilities, as well as uncorrected discovered defects in the
project.
69.3 Payments shall be adjusted by deducting therefrom the amounts for

advance payments and retention. The Owner shall pay the
Contractor the amounts certified by the Owner's Representative
upon receipt of complete documentary requirements. No payment of
interest for delayed payments and adjustments shall be made by the
Owner.
70. Conditions of Payment
70.1 This is an entire Contract for whole and completed Works and any
partial payment effected or made in pursuance of the Contract
Documents shall not relieve the Contractor of any of its obligations
under the Contract. No progress payment shall be construed as an
acceptance of the Works or any portion of the Works, nor shall the
making of such payment preclude the Owner from demanding and
recovering from the Contractor such damages as the Owner may

sustain by reason of the Contractor's failure to comply with the

requirements of the Contract.
No progress payment would be made to the Contractor, unless an

acceptable Performance Security has been posted, renewed or
extended, as may be required by the Owner.
70.2 It is likewise understood that the Contractor shall, when required ,

show proof evidencing payments for labor, materials, supplies,
equipment, subcontract works, insurance premiums, etc. used in the
Works, before any payments are made.
70.3 For this purpose, the President/General Manager of the Contractor

shall, before payment is made in the works accomplished, submit an
affidavit certifying the fact of payment of said labor, materials,
supplies, equipment, subcontract works, insurance premiums, etc.
70.4 All payments under the Contract shall be subjected to existing laws,
rules and regulations of the Republic of the Philippines concerning
generally accepted accounting and auditing principles.
70.5 Payment for foreign currency portion shall be made through

confirmed Irrevocable Letter of Credit or through Telegraphic
Transfer. Payment for Plant and Equipment supplied from abroad
shall be made upon shipment and after receipt of complete
documents stated in GCC Clause 24, Delivery and Documents.
Local currency portion shall be paid through disbursement vouchers/
check.
70.6 All charges including other incidental expenses incurred for payment
through Letter of Credit shall be for the account of the Contractor.
NGCP will advance the payment of related charges for the opening
of UC to be deducted from the Contractor's payments or to be
reimbursed by the Contractor.
71. Payments that May Be Withheld
71.1 In addition to the ten percent (1 0%) retention and other withhold
payments mentioned in GCC Clause 73, Payment Certificates, the
Owner may withhold in whole or in part any monthly payment to
such extent as may be necessary to protect its interest on account
of:
a. Order issued by any Philippine Court against the Contractor,

which may affect the Contract;
b. Defective work not remedied or guarantee not met;
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c. Accounting of Plant and Equipment and Materials furnished by

the Owner to the Contractor as indicated in GCC Clause 36;
d. Any amount paid by the Owner for the costs or charges in

relation to the transportation and delivery of all Plants and
Equipment under GCC Clause 23.4.
e. A reasonable doubt that the scope of the Contract can be

completed ;
f. Amount due as liquidated damages; and
g. Miscellaneous charges and billings which Contractor is bound to

pay periodically to the Owner and/or others , if any, under the
Contract.
72. Estimates for Payments
72.1 Monthly Estimates
Within the first five (5) days of the month, the Contractor shall
submit in writing to the Owner's Representative for approval, and in
accordance with a prescribed form , the work done during the
preceding month. All measurements and surveys for purposes of
monthly progress estimates shall be made by the Contractor in the
presence of the Owner's Representative. The estimates shall be
supported by the computation of quantities subject to the approval
of the Owner's Representative . The first of such estimates shall be
of the amount or quantity and value of work done since the
Contractor commenced the performance of this Contract, and every
subsequent monthly estimate (except the final one) shall be of the
amount or quantity and value of the work done since the preceding
estimate was done. The quantities used for the monthly progress
estimate shall be subject to correction in the final estimate.
72.2 Final Estimate
The Final Estimate shall be prepared after all the Works has been
completed. It shall be based on the measurement performed on the
completed Works and shall be submitted to the Owner after a joint
inspection and prior to the issuance of a Certificate of Final
Completion.

73. Payment Certificates
73.1 The Contractor shall submit to the Owner's Representative monthly

statements of the estimated value of the work executed less the
cumulative amount certified previously.
73.2 The Owner's Representative shall check the Contractor's monthly

statement and certify the amount to be paid to the Contractor.
73.3 The value of Work executed shall:
a. be determined by the Owner's Representative;
b. comprise the value of the quantities of the items in the Bill of

Quantities completed; and
c. include the valuations of approved variations.
73.4 The Owner's Representative may exclude any item certified in a

previous certificate or reduce the proportion of any item previously
certified in any certificate in the light of later information.
73.5 Monthly Progress Payments
The Monthly Payment Certificate will authorize payment to the

Contractor in an amount equal to the value of all works completed
and approved by the Owner less:
a. Retention Money as specified in GCC Clause 74, Retention.
b. Amounts payable by the Contractor to the Owner for equipment

or materials furnished, services rendered, liquidated damages,
repayment of advance payments made by the Owner, including
costs or charges relative to transportation and delivery of Plants
and Equipment, or for any other reason under the Contract.
c. The total amount of all previous progress payments to the

Contractor.
d. Withholding tax, VAT, other taxes, as applicable.
73.6 Final Payment
Provided that the documents and the Final Estimate submitted in

accordance with GCC Clause 72, Estimates for Payments, are
found to be correct, the Owner will approve and issue the Final
Payment Certificate, provided also that the Certificate of Final
Completion has been issued and that Head Office Clearance and
Field Office Clearance Certificate have been secured.

The Owner shall then, except for cause herein specified, pay the
Contractor promptly, after the execution of said certificates the
remainder which shall be found due excepting therefrom such sum
or sums as may be lawfully retained under any of the provisions of
this Contract.
Provided that the Final Payments on the Contract shall not be made
until the Contractor has submitted a statement sworn to before an
officer duly authorized to administer oath that all the taxes due from
him, and all obligations for materials used and labor employed in
connection with this Contract have been duly paid , and provided
further, that nothing herein contained shall be construed to waive
the right of the Owner which is hereby reserved to reject the whole
or any portion of the aforesaid Works should the same be found to
have been constructed in violation of the plans and specifications or
of any of the conditions or covenants of this Contract, the Owner
shall make payment to the Contractor on the Final Payment
Certificate.
74. Retention
74.1 Progress payments are subject to retention of ten percent (1 0%),

referred to as the "retention money." Such retention shall be based
on the total amount due to the Contractor prior to any deduction and
shall be retained from every progress payment until fifty percent
(50%) of the value of Works, as determined by the Owner, are
completed. If, after fifty percent (50%) completion, the Work is
satisfactorily done and on schedule, no additional retention shall be
made; otherwise, the ten percent (1 0%) retention shall again be
imposed using the rate specified therefor.
74.2 The total "retention money" shall be due for release upon Final
Acceptance of the Works.
74.3 On completion of the whole Works, the Contractor may substitute

retention money with Surety Bond callable on demand issued by a
bonding company accredited by the Owner in the amount of Ten
Percent (1 0%) of the Total Contract Price.
75. Offsetting of Outstanding Obligations of Contractor
75.1 Any and all payments due to the Contractor under this Contract
may, at the discretion of the Owner, be offset or charged against
any or all outstanding obligations of the Contractor to the Owner
under any or all other contracts with the Owner or other business
transactions between the Contractor and the Owner, subject to the
usual pre-audit requirement.
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TERMINATION
76. Termination for Default of Contractor
76.1 The Owner shall terminate a Contract for default when any of the
following conditions attend its implementation:
a. Due to the Contractor's fault and while the project is on-going, it

has incurred negative slippage of fifteen percent (15%) or more,
after previous warnings and notices have been issued to the
Contractor to improve his performance;
b. The Contractor incurs delay in the completion of the Works after

the Contract has expired due to its own fault; or
c. The Contractor:
1. abandons the contract works, refuses or fails to comply with a

valid instruction of the Owner or fails to proceed expeditiously
and without delay despite a written notice from the Owner;
2. does not actually have on the project site the minimum

essential equipment listed on the Bid necessary to prosecute
the Works in accordance with the approved Program of Work
and equipment deployment schedule as required for the
project;
3. does not execute the Works in accordance with this Contract

or persistently or flagrantly neglects to carry out its
obligations under this Contract;
4. neglects or refuses to remove materials that have been

rejected as defective or unsuitable; or
5. subcontracts any part of this contract works without approval

by the Owner.
76.2 All materials on the Site, Plant, Equipment, and Works shall be
deemed to be the property of the Owner if this Contract is rescinded
because of the Contractor's default.
77. Termination for Default of Owner
77.1 The Contractor may terminate this Contract with the Owner if the
works are completely stopped for a continuous period of at least
sixty (60) calendar days through no fault of its own, due to any of
the following reasons:
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a. Failure of the Owner to deliver, within a reasonable time,

supplies, materials, right-of-way, or other items it is obligated to
furnish under the terms of this Contract; or
b. The prosecution of the Work is disrupted by the adverse peace

and order situation, as certified by the Armed Forces of the
Philippines Provincial Commander and approved by the
Secretary of National Defense.
78. Termination for Other Causes
78.1 The Owner may terminate this Contract, in whole or in part, at any
time for its convenience. The Owner may terminate this Contract for
the convenience of the Owner if he has determined the existence of
conditions that make Project Implementation economically,
financially or technically impractical and/or unnecessary, such as,
but not limited to, fortuitous event(s) or changes in law and National
Government policies.
78.2 The Owner or the Contractor may terminate this Contract if the other
party causes a fundamental breach of this Contract.
78.3 Fundamental breaches of Contract shall include, but shall not be

limited to, the following:
a. The Contractor stops work for twenty eight (28) days when no
stoppage of work is shown on the current Program of Work and
the stoppage has not been authorized by the Owner's
Representative;
b. The Owner's Representative instructs the Contractor to delay the

progress of the Works, and the instruction is not withdrawn within
twenty eight (28) days;
c. The Owner shall terminate this Contract if the Contractor is

declared bankrupt or insolvent as determined with finality by a
court of competent jurisdiction. In this event, termination will be
without compensation to the Contractor, provided that such
termination will not prejudice or affect any right of action or
remedy which has accrued or will accrue thereafter to the Owner
and/or the Contractor. In the case of the Contractor's insolvency,
any Contractor's Equipment which the Owner instructs in the
notice is to be used until the completion of the Works;
d. A payment certified by the Owner's Representative is not paid by

the Owner to the Contractor within eighty four (84) days from the
date of the Owner's Representative's certificate;
: . . .
02·92290SS/0917-84590SS/whlstle blower@ngcp.ph
e. The Owner's Representative gives Notice that failure to correct a

particular Defect is a fundamental breach of Contract and the
Contractor fails to correct it within a reasonable period of time
determined by the Owner's Representative;
f. The Contractor does not maintain a Security, which is required;
g. The Contractor has delayed the completion of the Works by the

number of days for which the maximum amount of liquidated
damages can be paid, as defined in the GCC Clause 48; and
h. In case it is determined prima facie by the Owner that the

Contractor has engaged, before or during the implementation of
the Contract, in unlawful deeds and behaviors relative to contract
acquisition and implementation, such as, but not limited to, the
following:
1. corrupt, fraudulent, collusive and coercive practices as

defined in ITB Clause 3.1 a;
2. drawing up or using forged documents;
3. using adulterated materials, means or methods, or engaging

in production contrary to rules of science or the trade; and
4. any other act analogous to the foregoing.
78.4 The Owner can file civil, administrative and/or criminal actions
available under the applicable law on individuals and organizations
deemed to be involved with corrupt, fraudulent, or coercive
practices.
78.5 When persons from either party to this Contract gives notice of a
fundamental breach to the Owner's Representative in order to
terminate the existing Contract for a cause other than those listed
under GCC Clause 78.3, the Owner's Representative shall decide
whether the breach is fundamental or not.
78.6 If this Contract is terminated, the Contractor shall stop work

immediately, make the Site safe and secure, and leave the Site as
soon as reasonably possible.
79. Procedures for Termination of Contracts
79.1 The following provisions shall govern the procedures for the
termination of this Contract:
a. Upon receipt of a written report of acts or causes which may

constitute ground(s) for termination as aforementioned, or upon
02-9229055/0917 -8459055/whlstleblower@ngcp .ph

its own initiative, the Owner's Representative shall, within a

period of seven (7) calendar days, verify the existence of such
ground(s) and cause the execution of a Verified Report, with all
relevant evidence attached;
b. Upon recommendation by the Owner's Representative, the

Owner shall terminate this Contract only by a written notice to
the Contractor conveying the termination of this Contract. The
notice shall state:
1. that this Contract is being terminated for any of the ground(s)

afore-mentioned , and a statement of the acts that constitute
the ground(s) constituting the same;
2. the extent of termination, whether in whole or in part;
3. an instruction to the Contractor to show cause as to why this

Contract should not be terminated;
4. special instructions of the Owner, if any; and
5. the Notice to Terminate shall be accompanied by a copy of

the Verified Report;
c. Within a period of seven (7) calendar days from receipt of the

Notice of Termination , the Contractor shall submit to the Owner a
verified position paper stating why the Contract should not be
terminated. If the Contractor fails to show cause after the lapse
of the seven (7) day period, either by inaction or by default, the
Owner shall issue an order terminating the Contract;
d. The Owner may, at any time before receipt of the Contractor's

verified position paper to withdraw the Notice to Terminate if it is
determined that certain items or works subject of the notice had
been completed, delivered, or performed before the Contractor's
receipt of the notice; and
e. Within a non-extendible period of ten (1 0) calendar days from

receipt of the verified position paper, the Owner shall decide
whether or not to terminate this Contract. It shall serve a written
notice to the Contractor of its decision and, unless otherwise
provided in the said notice, this Contract is deemed terminated
from receipt of the Contractor of the notice of decision. The
termination shall only be based on the ground(s) stated in the
Notice to Terminate.
79.2 The Owner may create a Contract Termination Review Committee

(CTRC) to assist him in the discharge of this function. All decisions
: . . .
02-9229055/0917-8459055/whistleblower@ngcp.ph
recommended by the CTRC shall be subject to the approval of the

Owner.
79.3 For termination because of Contractor's default, the Performance

Security posted by the Contractor shall be forfeited and applicable
liquidated damages shall be imposed on the Contractor for delayed
performance of the Works.
80. Payment on Termination
80.1 If the Contract is terminated because of a fundamental breach of

Contract by the Contractor, the Owner's Representative shall issue
a certificate for the value of the work done and Materials ordered
less advance payments received up to the date of the issue of the
certificate and less the percentage to apply to the value of the work
not completed. Additional Liquidated Damages shall not apply. If the
total amount due to the Owner exceeds any payment due to the
Contractor, the difference shall be a debt payable to the Owner.
80.2 If the Contract is terminated for the Owner's convenience or

because of a fundamental breach of Contract by the Owner, the
Owner's Representative shall issue a certificate for the value of the
work done, Materials ordered, the reasonable cost of removal of
Equipment, repatriation of the Contractor's personnel employed
solely on the Works, and the Contractor's costs of protecting and
securing the Works, and less advance payments received up to the
date of the certificate.
80.3 The net balance due shall be paid or repaid within twenty eight (28)
days from the notice of termination.
80.4 If the Contractor has terminated the Contract under GCC Clauses
77 or 78, the Owner shall promptly return the Performance Security
to the Contractor.
RISK AND RESPONSIBILITY
81. Owner's Risk
81.1 From the Start Date until the Certificate of Final Acceptance has
been issued, the following are risks of the Owner:
a. The risk of personal injury, death, or loss of or damage to

property (excluding the Works, Plant, Materials, and Equipment),
which are due to:
: ...
02·92.2 905510917-8459055/whlstle blower@ngcp.ph
1. any type of use or occupation of the Site authorized by the

Owner after the official acceptance of the works; or
2. negligence, breach of statutory duty, or interference with any

legal right by the Owner or by any person employed by or
contracted by it except the Contractor.
b. The risk of damage to the Works, Plant, Materials, and

Equipment to the extent that it is due to a fault of the Owner or in
the Owner's design, or due to war or radioactive contamination
directly affecting the country where the Works are to be
executed.
82. Patents and Copyrights
82.1 The Contractor shall hold and save harmless the Owner, its officers,
agents and employees, from liabilities, damages or obligations of
any nature or kind, including costs and expenses on account of any
copyrighted or uncopyrighted composition, secret process, patented
or unpatented invention, article, method or equipment manufactured
or used in the performance of this Contract.
82.2 The Contract Price is to include all royalties and costs arising from
patents, trademarks and copyrights in any way involved in the
Works. Whenever the Contractor is required or desires to use any
design, device, material, or process covered by a letter patent,
trademark or copyright, the Contractor shall indemnify and save
harmless the Owner from any and all claims for infringement by
reasons of the use of any such patented design, device or material
or process to be performed under the Contract, and shall indemnify
the Owner for all costs, expenses and damages which it may be
obliged to pay by reason of such infringement at any time during the
execution of or after the completion of the Works.
INSURANCE
83. Contractor's Liability for Accident and Damages
83.1 Contractor's Responsibility for Care of the Works
From the commencement of the Works until the effective date of

issuance of the Certificate of Final Completion, the Contractor will
be fully responsible for the care of the Works and for the care of all
materials of the Owner therein and for all temporary works. Should
any damage, injury, or loss happen to the Works, materials, or to
any part thereof from any cause whatsoever other than the
: ...
02·922905510917-8459055/whlstle blower@ngcp.ph
Excepted Risks, the Contractor shall, at its own cost, repair the
damage and injury, or replace the loss so that at completion, the
Works shall be in good order and condition and in conformity in
every respect with the requirements of the Contract. The Contractor
shall also be liable for any damage, loss, or injury to the Works
occasioned by the Contractor for the purpose of complying with its
obligations under GCC Clause 56 Identifying Defects and GCC
Clause 15 The Contractor's Obligations of this Contract and for any
damage, loss or injury due to a cause occurring prior to the issuance
of Certificate of Final Completion.
Unless specifically provided for in these specifications, the Owner

will not be responsible for any damage, delay or any increased
difficulty in the performance of the Works under this Contract due to
any cause whatsoever, in the progress of the Works. No adjustment
in the prices will be made on account of any damage, delay or any
increased difficulty, except reasonable delay which may entitle the
Contractor as herein provided.
83.2 Contractor's Responsibility for Construction Plant
The Owner shall not, at any time, be liable for, and shall be
indemnified and held harmless by the Contractor in respect of any
damage, injury or loss to any construction plant or support used or
intended for use in the execution of the Contract by the Contractor
or its subcontractors.
83.3 Contractor's Responsibility for Injury, Illness, etc. to its Employees
The Owner shall not be liable for any damage or compensation

payable in respect of or in consequence of any accident, injury,
death, illness or disease to any person in the employment of the
Contractor or of any Subcontractor and the Contractor shall
indemnify and hold harmless the Owner against all damages or
compensation and all damages or charges and expenses
whatsoever in respect thereof or in relation thereto.
83.4 Contractor's Responsibility for Damage to Property and Other

Injuries or Illness
Without prejudice to or in limitation of the provisions of the preceding

Clauses, the Contractor shall indemnify and hold harmless the
Owner in respect of any loss, claim, proceedings, damages or
expenses of whatsoever nature arising out of the death, injury,
illness or disease of any person (including any employee of the
Owner) or the loss of or damage to any property (including property
of the Owner) caused by or arising out of the execution of the
Contract by the Contractor or its Subcontractors or agents except to
: ...
02-92290SS/0917-84590SStwh lst1eblowec@ngcp.ph
the extent that such loss, claim , proceedings, damages or expenses

be due to any negligence on the part of the Owner, its employees or
agents.
84. Insurance
84.1 The Contractor shall, at his own expense, maintain in force the
following insurances from reputable companies acceptable to the
Owner for the duration of the Contract:
a. All Risks Marine Cargo Insurance (Ocean and Inland) to protect

the Owner and the Contractor from loss or damages which may
occur with respect to any and all machinery, equipment,
materials and tools where coverage starts from loading of
cargoes at the warehouse of origin and ends upon completion of
unloading of cargoes at the final destination. Such insurance
shall cover all risks , including Institute War, Strikes, Riots and
Civil Commotion.
The Marine Cargo Insurance shall not cover the permanent and
temporary installation cost. The insurance coverage shall be one
hundred and ten percent (11 0%) of the delivered cost and the
Owner shall be the beneficiary.
b. Contractor's All Risks/Erection All Risks Insurance to cover the

entire Works (permanent or temporary) including property of the
Owner other than the Works, to their full replacement value, from
any causes whatsoever.
c. Third Party Liability Insurance to cover death or injury to persons

or damages to property caused by the Works or by the
Contractor's vehicles, tools and/or equipment or personnel.
d. Workmen 's Compensation Insurance. This type of insurance is

required under the Social Security Law, to be secured by the
Contractor for his employees. The Contractor shall, therefore
faithfully comply with the requirements of said law.
84.2 For the following insurance:
a. The Contractor shall be responsible for securing the insurance

mentioned in items (b) and (c) from a bonding company
accredited by the Owner. The Contractor shall promptly submit
to the Owner (c/o Treasury Department) the insurance
document.
: . . .
02 -922905510917-8459055/whlstleblower@ngcp.ph
b. The Contractor shall secure insurance mentioned in items (a)

and (d) from a reputable insurance company acceptable to the
Owner.
Insurance coverage shall be for a period up to the Final Acceptance

of the Works.
Before commencing the work, the Contractor shall submit to the

Owner a certified copy of the Insurance Policy together with the
Official Receipt evidencing premium payment.
84.3 The Contractor shall, in accordance with the prov1s1ons of the

Contract Agreement, deliver to the Owner certificates of insurance
(or copies of the insurance policies) as evidence that the required
policies are in full force and effect. The Contractor shall effect all
insurances for which he is responsible with insurers and in terms
approved by the Owner. Each policy insuring against loss or
damage shall provide for payments to be made in the currencies
required to rectify such loss or damage. Payments received from
insurers shall be used for the rectification of such loss or damage.
84.4 The Contractor (and, if appropriate, the Owner) shall comply with
the conditions stipulated in each of the insurance policies. The
Contractor shall make no material alteration to the terms of any
insurance without the prior approval of the Owner. If an insurer
makes (or purports to make) any alteration , the Contractor shall
notify the Owner immediately. The certificates shall provide that not
less than thirty (30) days' notice shall be given to the Owner by
insurers prior to cancellation or material modification of a policy .
84.5 If the Contractor fails to obtain and keep in force the insurances
referred to herein or any other insurance which the Contractor may
be required to obtain under the terms of this Contract, the Owner
may obtain and keep in force any such insurances and pay such
premiums as may be necessary for the purpose, and any and all
expenses incurred thereby shall be deducted from any and all sums
due or may become due to the Contractor without prejudice to the
Owner exercising its right to impose other sanctions against the
Contractor pursuant to the provisions of this Contract. The
Performance Security submitted by the Contractor shall also be held
responsible for this contingency.
84.6 If the Contractor is of the opinion that the amount of insurance is

inadequate, the Contractor is allowed to secure additional insurance
at its own expense. It shall be understood that the Owner shall not,
in any way, be liable for inadequate coverage.
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02-92290SS/0917-B4590SS/whlstleb lower @ngcp.ph

84.7 The Contractor shall immediately replace the insurance policy

obtained as required in this Contract, without need of the Owner's
demand , with a new policy issued by a new insurance company
acceptable to the Owner for any of the following grounds:
a. The issuer of the insurance policy to be replaced has:
1. become bankrupt;
2. been placed under receivership or under a management

committee;
3. been sued for suspension of payment; or
4. been suspended by the Insurance Commission and its

license to engage in business or its authority to issue
insurance policies is cancelled; or
b. Where reasonable grounds exist that the insurer may not be

able, fully and promptly, to fulfill its obligation under the
insurance policy.
84.8 The Contractor shall be responsible for notifying the Owner within
forty-eight (48) hours for any losses or damages arising out of the
Contract. Failure to notify the Owner within this period of time shall
constitute sufficient grounds for the Owner to exercise its rights
under the Contract.
84.9 The Contractor shall ensure that, where applicable, its

Subcontractor(s) shall take out and maintain in effect adequate
insurance policies for their personnel and vehicles and for work
executed under the Contract, unless such Subcontractors are
covered by the policies taken out by the Contractor.
84.10 Nothing in this Clause limits the obligations, liabilities or

responsibilities of the Contractor or the Owner, under the other
terms of the Contract or otherwise. Any amounts not insured or not
recovered from the insurers shall be borne by the Contractor and/or
the Owner accordingly.
FORCE MAJEURE
85. Force Majeure, Release from Performance
85.1 For purposes of this Contract the terms "force majeure" and
"fortuitous event" may be used interchangeably. In this regard, a
fortuitous event or force majeure shall be interpreted to mean an
event which the Contractor could not have foreseen, or which
: ...
02-92290SS/0917-B4590SS/whlstle blower@ngcp.ph
though foreseen, was inevitable. It shall not include ordinary

unfavorable weather conditions; and any other cause the effects of
which could have been avoided with the exercise of reasonable
diligence by the Contractor.
85.2 During the continuance of such Force Majeure, the Contractor is

obliged to take all suitable measures for the protection and
maintenance of the Works, with a view to minimize damage
resulting therefrom. Also, the Contractor shall make every
reasonable effort to eliminate without delay the results of Force
Majeure.
85.3 The Contractor is obliged to rebuild, repair or replace completely the

parts of the Works destroyed or damaged by Force Majeure.
Rebuilding, repairing or replacing work will be paid under the
applicable contractual unit and lump sum prices of the Bill of
Quantities.
85.4 It is specifically agreed that cases of Force Majeure affecting the

Works are only acceptable as reasons for granting time extension,
provided that delays caused by Force Majeure directly affect the
completion time of the Works.
85.5 If the Contractor, as a result of an event constituting a case of Force

Majeure is rendered unable to execute the performance of the
Works, whether financially or otherwise, in total or in part, he shall
forthwith give notice in writing to the Owner of such event giving at
the same time as many data and particulars as possible thereof (i.e.
the circumstances under which the damages have occurred, the
nature and the extent thereof, the expense required for their
remedy, the extension of time required if any, etc.). Such written
notice shall be given to the Owner by the Contractor within a period
of five (5) calendar days from the day on which the damages and/or
the delay began.
85.6 An additional notice including full data and full particulars of the said
event shall be given to the Owner within a period of ten (1 0)
calendar days from the cessation of the event of Force Majeure
involved.
85.7 Contractor's notice shall be jointly examined by him and the Owner
and the conclusions the Owner will reach from such examination
shall be set forth in Protocol(s) which the Contractor shall be
requested to sign.
85.8 In case of the Contractor's failure to participate in the said joint

examination or to sign the Protocol(s) prepared by the Owner, the
Owner shall send the Protocol(s) to the Contractor and the

: . . .
02-922905510917 -8459055/whlsll• blow•r@ngc p .ph
Contractor shall be entitled, within a period of five (5) calendar days

from receipt of such notification, to set forth in writing to the Owner
its objections to the Protocol(s).
85.9 Contractor's failure, for any reason or cause whatsoever, to effect

the notification stipulated in this provision and to submit the required
data and particulars within the time limits set forth herein shall
render unacceptable, null and void, any claim by Contractor for
extension of time.
85.10 If this Contract is discontinued by an outbreak of war or by any other

event entirely outside the control of either the Owner or the
Contractor, the Owner's Representative shall certify that this
Contract has been discontinued. The Contractor shall make the Site
safe and stop work as quickly as possible after receiving this
certificate and shall be paid for all works carried out before receiving
it and for any work carried out afterwards to which a commitment
was made.
85.11 If the event continues for a period of eighty four (84) days, either
party may then give notice of termination, which shall take effect
twenty eight (28) days after the giving of the notice.
85.12 After termination, the Contractor shall be entitled to payment of the

unpaid balance of the value of the Works executed and of the
materials and Plant reasonably delivered to the Site, adjusted by the
following:
a. any sum to which the Contractor is entitled under GCC Clause

72.1;
b. the cost of his suspension and demobilization;
c. any sum to which the Owner is entitled.
85.13 The net balance due shall be paid or repaid within a reasonable
time period from the time of the notice of termination.
CLAIMS, DISPUTES AND ARBITRATION
86. Contractors Right to Claim
86.1 If the Contractor incurs cost as a result of any of the events under
GCC Clause 81, the Contractor shall be entitled to the amount of
such cost. If as a result of any of the said events, it is necessary to
change the Works, this shall be dealt with as a Variation.
: ...
02·92290SS/0917-84590SS/whls11oblowor@ngcp.ph
87. Settlement of Disputes
87.1 If any dispute or difference of any kind whatsoever shall arise

between the Owner and the Contractor in connection with or arising
out of this Contract, the parties shall make every effort to resolve
amicably such dispute or difference by mutual consultation.
87.2 If after thirty (30) days, the parties have failed to resolve their
dispute or difference by such mutual consultation, then either the
Owner or the Contractor may give notice to the other party of its
intention to commence arbitration, as hereinafter provided, as to the
matter in dispute, and no arbitration in respect of this matter may be
commenced unless such notice is given.
87.3 Any dispute or difference in respect of which a notice of intention to

commence arbitration has been given in accordance with this
Clause shall be settled by arbitration.
87.4 In the case of a dispute between the Owner and the Contractor, the
dispute shall be resolved in accordance with Republic Act 9285
("R.A. 9285"), otherwise known as the "Alternative Dispute
Resolution Act of 2004." The place for arbitration shall be
exclusively in Quezon City, Philippines, only.
87.5 Notwithstanding any reference to arbitration herein, the parties shall

continue to perform their respective obligations under the Contract
unless they otherwise agree; and the Owner shall pay the
Contractor any monies due the Contractor.
ASSIGNABILITY OF CONTRACT
88. Assignability of Contract
88.1 NGCP and the Contractor agree to the Assignment of this Contract,
at the option of the National Transmission Corporation (TransCo), to
TransCo or its nominee, upon the expiration of the Concession
Period or the earlier termination of the Concession Agreement
between NGCP, Power Sector Assets and Liabilities Management
Corporation (PSALM) and Transco.
XXX End of document XXX

VOLUME I
·SECTION 3a:
SPECIAL CONDITIONS OF
THE CONTRACT
02 - 92290.55/091 7 - 8 4 59055/whi stl eblower@n gcp . p h

BIDDING DOCUMENTS VISAYAS SUBSTATION UPGRAD ING
SECTION 3a- SPECIAL CONDITIONS OF CONTRACT Sp19.VSUP1 .Vt-0422R
Section 3a. Special Conditions of Contract
GCC
Clause
1.3a National Grid Corporation of the Philippines (NGCP)
Power Center, Quezon Avenue corner BIR Road
Diliman, Quezon City, Philippines 1104
1.3b Owner's Representative is
Mr. Anthony L. Almeda

President and CEO
The responsibilities of the Owner can also be exercised through its

designated representatives at the Site of the Works and at the Home
Office in Quezon City.
a. Communications regarding the Technical Specification shall

be addressed to:
Vice President
Planning and Engineering
Attention: Asst. Vice President and Head

Engineering Design Department
b. Communications regarding the implementation of the Contract

shall be addressed to:
Vice President
Planning and Engineering
Attention: Asst. Vice President and Head

Engineering Construction Department
1.7b The Project sites:

Substation Location
Brgy. Carayman, Calbayog
Calbayog Substation
City, Samar
Brgy. Talisay, Daanbantayan,
Daanbantayan Substation
Cebu
Brgy. Tam-is, Maasin City,
Maasin Substation
Southern Leyte
Tabango Substation Brgy. Tugas, Tabango, Leyte
9.1
NATIONAL GRID CORPORATION OF THE PHILIPPINES 3a - 1
: ...
02·922905 5/0917·8459055/whistleblower@ngcp.ph
SECTION 3a- SPECIAL CONDITIONS OF CONTRACT Sp19 .VSUP1. Vt-0422R
GCC
Clause
24.2a(7) The following are NGCP's approved Cargo Surveyors:
i. lntertek International, Ltd.

ii. Bureau Veritas
iii. SGS Philippines, Inc.
24.2a(8)
44.1 The whole of the Works is divided into four (4) substations which are
independent from each other. The completion period shall be as follows:
Completion Period
Substation
(reckoned from Start Date)
1. Calbayog Substation 390 calendar days

2. Daanbantayan Substation 390 calendar days
3. Maasin Substation 390 calendar days
4. Tabango Substation By September 30, 2020
44.3(f)
46.8b
48.1 If the Works is not completed within the period indicated in GCC Clause 44
(Contract Time), or in case of projects with various components or
segments, within the period indicated in each component or segment under
GCC Clause 44, inclusive of any duly approved contract time extensions,
the Contractor shall, without need of any demand, pay the Owner, liquidated
damages (LD) in the amount equal to the following:
Completion Period
Substation (reckoned from Amount of LD
Start Date)
Calbayog Three Hundred 1/10 of 1% of the Total
Substation Ninety (390) Contract Price of
calendar days Calbayog SS for every
day of delay, but not to
exceed 10% of the Total
Contract Price of
Calbayog SS.
Daanbantayan Three Hundred 1/10 of 1% of the Total

Substation Ninety (390) Contract Price of
calendar days Daanbantayan for ss
every day of delay, but
not to exceed 10% of the
Total Contract Price of
Daanbantayan SS.
: ...
02· 922905 5/ 09 17 -8459055/whi stle blow er@ngcp .ph
SECTION 3a - SPECIAL CONDITIONS OF CONTRACT Sp19.VSUP1 .Vt-0422R
GCC
Clause
Maasin Substation Three Hundred 1/10 of 1% of the Total
Ninety (390) Contract Price of Maasin
calendar days SS for every day of delay,
but not to exceed 10% of
the Total Contract Price of
Maasin SS.
Tabango Substation By September 30, 1/10 of 1% of the Total

2020 Contract Price of
Tabango SS for every
day of delay, but not to
exceed 10% of the Total
Contract Price of
Tabango SS.
55_2
60.2 Warranty Period and Warranty Security
For the following substation equipment, the Contractor shall be

required to provide an extended warranty period of three (3) years
reckoned from the expiration of the original Warranty Period or of the
period of extension pursuant to GCC Clause 60.11:
A. Substation Equipment
1. Power Transformer
2. Power Circuit Breaker
3. Disconnect Switch/Earthing Switch
4. Current Transformer
5. Voltage Transformer
6. Surge Arrester
B. Secondary Device
1. Substation Protection System
2. Network Disturbance Monitoring Equipment
3. Power Line Carrier
4. Remote Terminal Unit
The extended Warranty Period of three (3) years shall be covered by

a Warranty Certificate issued by the Contractor and/or the
Manufacturer of particular equipment.
The warranty conditions stated in GCC Clause 60 shall also apply to

the extended warranty period.

0422R - Commercial Provisions

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0422R - Commercial Provisions

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BRIDGING POWER & PROGRESS

VISAYAS SUBSTATION UPGRADING PROJECT, STAGE 1

Calbayog Substation : Brgy. Carayman, Calbayog, Samar, Visayas

02- 9229055/0917 - 8 4 59055/whi stleblower@n gcp . p h

BIDDING DOCUMENT COMPOSITION

VOLUME I COMMERCIAL PROVISIONS

VOLUME 11.1 STANDARD SPECIFICATIONS

VOLUME 11.2 STANDARD SPECIFICATIONS

VOLUME 11.3 STANDARD SPECIFICATIONS

VOLUME 111.1 TECHNICAL DATA SHEETS:

VOLUME 111.2 STANDARD SPECIFICATIONS

0 2 - 9229055/0917- 8 4 59055/whi stleblower@ n g c p . p h

BIDDING DOCUMENT COMPOSITION

VOLUME IV BID PRICE SCHEDULE AND BID FORMS

VOLUME V BID DRAWINGS

02- 922 90 55/091 7 - 8 4 5905 5/whi stl e b I owe r @n gcp . p h

02 - 92290.55/091 7 - 8 4 590.55/vv h i stl ebl ower@ n gcp . p h

Section 2. Instructions to Bidders

1. Scope of Bid ........................................................................2- 1

37. Signing of the Contract ..................................................... 2- 21

NATIONAL GRID CORPORATION OF THE PHILIPPINES 2- ii

02-9229055/0917 ,8459055/whlstleblower@ngc p.ph

Section 2. Instructions to Bidders

1.1 . The National Grid Corporation of the Philippines (NGCP)

1.4. The successful Bidder shall be expected to complete the entire

2.2. The Owner shall be represented by its authorized representatives

3. Corrupt, Fraudulent, and Coercive Practices

3.1. The Bidders, Contractors, Manufacturers, Suppliers or Distributors

1. "corrupt practice" means behavior on the part of officials

others to do so, by misusing the position in which they

2. "fraudulent practice" means a misrepresentation of facts

3. "collusive practices" means a scheme or arrangement

4. "coercive practices" means harming or threatening to

b. will reject a proposal for award if it determines that the Bidder

4. Removal of Contractors from the List of Accredited Contractors

4.1. Accredited Bidders/Contractors shall be suspended or removed from

a. Withdrawal of a bid, or refusal to accept an award or enter into

c. Unethical practices such as collusion, bid rigging, corruption,

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d. Refusal to post, renew or extend the Securities required under

e. Delay, non-performance or breach of Contract, or suspension

4.2. Removal/ lifting of suspension/ re-accreditation/ reinstatement of

5.1. Eligible Bidders may participate in the bidding and subsequently

5.2. A Foreign Corporation established abroad intending to participate in

a. secure a business registration and establish a local branch in

b. enter in a Joint Venture (JV), Consortium, or any form of

5.3. For purposes of undertaking construction projects, Bidders are

5.4. A Joint Venture (JV), Consortium, or any form of Partnership of two

a. the JV, Consortium or Partnership Agreement shall be signed

b. one of the partners shall be authorized to be in charge; and this

c. the partner in charge shall be authorized to incur liabilities,

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d. all partners of the JV, Consortium or Partnership shall be jointly

e. a copy of the notarized JV, Consortium or Partnership

6.2. Prospective Bidders shall engage Subcontractor/(s) with track record

7.1. All Bidding Documents shall be accompanied by a sworn affidavit of

"control" of a Person means the power, directly or indirectly, either to

8. Content of the Bidding Documents

8.1. The Bidding Documents shall consist of the following:

I.VOLUME I -COMMERCIAL PROVISIONS

1. Section 1 - Invitation to Bid

II.VOLUME II -STANDARD SPECIFICATIONS, as indicated in the

III.VOLUME Ill -TECHNICAL DATA SHEETS, as indicated in the BDS

IV.VOLUME IV -BID PRICE SCHEDULE AND BID FORMS