SECTION XI - SCHEDULE OF TIME LIMITS

SECTION XI - SCHEDULE OF TIME LIMITS

A. CONTRACT TIME
1. When is the Contract Time Reckoning?

The Contractor shall Commence the Work within seven (7) days from receipt of Notice
to Proceed unless the notice or the Contract provides for a later date. (21.02)

2. When shall the Request for Time be filed?

The Request for Time shall be filed within fifteen (15) days from occurrence of event
which caused the delay (21.04)

B. CONTRACT SUM

1. When should the Breakdown of Work & Corresponding Value be submitted?

The Breakdown of Work & Corresponding Value should be submitted within fifteen (15)
days from receipt of the Notice to Proceed. ( 22.01)

2. When should notice be given to Owner for Claim for Extra Cost?

The Claim for Extra Cost should be submitted within fifteen (15) days: (a) after receipt
of instruction involving extra cost; or (b) after recognition of delay due to Owner's fault. (
20.08)

C. PROGRESS/FINAL PAYMENT

1. What is the period within which the Owner should act on Payment Request?

The Owner should act on payment request within thirty (30) days after receipt thereof(
22.05)
2. What is the period within which the Owner should act on Final Payment Request?

The Owner should act on final payment request within thirty (30) days from receipt
thereof ( 22.05)
3. When should interest accrue for delayed payment by Owner?

Delay in payment of the amount due shall entitle the Contractor to interest from due
date based on the thirty (30) day loan rate of the Land Bank of the Philippines. (22.05)
4. When should the retention be released?

Not later than sixty (60) days from substantial completion upon posting of Contractor's
Guarantee Bond. (22.11)

D. SUBSTANTIAL COMPLETION AND ITS EFFECTS

 1. When is there substantial completion?

If the Contractor completes ninety-five percent (95%) of the work; or the Owner
approves the Contractor's billing for completing at least 95% of the work unless the
Owner can establish that the unfinished portion prevents the normal use of the
completed portion. [20.11 par. A(a) and (b)]

A Contractor who substantially completes the Work is not liable for liquidated damages,
but only to damages representing the unaccomplished works.
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2. Is the date of the Certificate of Substantial Completion or equivalent document

controlling?

No, if substantial completion is shown to have been attained earlier, unless the
Contractor accepts the certificate without taking any exceptions thereto in writing within
fifteen (15) days from receipt of certificate. [20.11 par. A(c)]

E. CORRECTION OF WORK
1. When should the Contractor receive the punch list/s?

The Owner shall issue the punch list/s which the Contractor must receive not later than
thirty (30) days from date of substantial completion. (20.11 par C[a])
2. When can the Owner add to the punch list items?

The Owner may add to the punch list items but only as to corrective work in the original
punch list/s not later than sixty (60) days from substantial completion. (20.11 par. C[b])
3. What is the prescriptive period for the Owner to correct, remove, replace poor or
inferior work of the Contractor?

The Owner has one (1) year from date of final payment to condemn poor or inferior
work, otherwise, instructions to remove or replace such shall be treated as change
order. (22.10)
4. When should known defects be corrected by Contractor?

The Contractor has thirty (30) days from receipt of the last item in the punch list to
complete the corrective works. 20.12 and 20.13)

F. CONTRACTORS RIGHT TO SUSPEND WORK OR TERMINATE CONTRACT

1. What are the instances when a Contractor suspend work or terminate Contract?
• If any court or other public authority orders work to be stopped or suspended for ninety (90)
days through no fault of the Contractor or his employees;
• If Owner fails to pay Contractor the approved request for payment within thirty (30) days from
receipt;
• If Owner fails to pay Contractor the agreed sum within thirty (30) days after its award by
arbitrators;
• If the Owner suspends the work without just cause for more than fifteen (15) days without
Contractor's consent;
 • If the Owner fails to deliver at the construction site Owner-supplied/furnished materials and/or
equipment, for work along the critical path beyond fifteen (15) days after its scheduled delivery date;
and
• If approval of Variation Orders for additional works along the critical path is delayed beyond
fifteen (15) days after submission for approval by the Owner.

G. OWNER'S RIGHT TO TERMINATE CONTRACT

1. When can the Owner immediately and without notice terminate the Contract?

If the Contractor should declare bankruptcy, become insolvent or assigns his assets for
the benefit of his creditors or appointment of trustee/receiver for Contractor or any of its
property.
2. When can the Owner terminate the Contract after giving fifteen (15) days written
notice to the Contractor or his Surety?

If the Contractor:
• Disregards or violates provisions of the Contract Documents or Owner's instructions;
• Fails to provide skilled superintendent, workmen or suitable materials or equipment;
• Fails to make prompt payment to subcontractors, for labor or materials or equipment;
• Disregards the authority of the Owner's Representative;
• Violates in any substantial way any provisions of the Contract Documents;
• Repeatedly delays prosecution of work per agreed Construction Schedule and/or PERT/CPM
plus any time extension duly granted the Contractor

H. DISPUTES
1. When should the Owner or his representative act on all matters under the Contract?

The Owner or his representative shall act within a period of fifteen (15) days on all
matters under the Contract requiring the Owner's approval, acceptance or decision.
2. What is the period within which the Contractor may submit to the adjudicator his
disagreement with the determination made by the Owner?

If the Contractor disagrees with the determination by the Owner or his representative,
the same shall be submitted to an adjudicator to be jointly engaged within fifteen (15)
days before the commencement of the work. If either party disagrees with the resolution
of the adjudicator, such shall be deemed a dispute that may be submitted to arbitration.

I. GUARANTEE BOND
1. When should the guarantee bond be furnished?

Upon release of retention.

2. How long will it be effective?

One year commencing from the date of acceptance as guarantee that all materials and
workmanship installed are of good quality.

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Transcept Construction and Management Professionals, Inc. v. Aguilar, G.R. No. 177556, 8 December 2010.