ART.
1: DEFINITIONS
ACT OF GOD OR FORCE MAJEURE includes an event
which cannot be foreseen, or which though foreseen, was
inevitable. Rain, wind, flood or other natural phenomenon
of inconsequential degree for the locality shall not be
construed as an Act of God or Force Majeure.
ADVERTISEMENT or INVITATION TO BID refers to the
notice published by the Owner or the invitation issued to
prospective bidders, giving information as to the nature of
the proposed project, conditions for the issuance of
Contract documents, date of bidding, and information that
would give the Contractor a general idea of the magnitude
and extent of the project.
AGREEMENT is the term used to describe the agreement
signed by the Owner and the Contractor excluding the
Contract Documents which are attached thereto.
BID is the tender, or proposal, or quotation, or offer of a
bidder to perform the work described in the Contract which
in form and substance complies with the Instruction to
Bidders.
BID BOND refers to any acceptable form of bond
accompanying the Bid submitted by the bidder as a
guarantee that the bidder will enter into the Contract with
the Owner for the construction of the Work, if the Contract
is awarded to him.
BID DOCUMENTS collectively refer to all documents
provided or made available to prospective bidders which
include the Invitation to Bid and a copy of the Contract
which the winning bidders would be required to sign with
the Owner.
BID BULLETIN is a document containing additional
information on Bid Documents issued to bidders before
date of bidding.
BREAKDOWN OF WORK AND CORRESPONDING
VALUE is a listing of the different parts of the work
indicating each part and its corresponding value.
CHANGE ORDER is a written order to the Contractor
issued by the Owner after the execution of the Contract,
authorizing a change or variation in the work or an
adjustment in the Contract Price or Contract time.
CONTRACT is the term used to describe the Agreement
and the Contract Documents
CONTRACT DOCUMENTS are the documents attached
to the Agreement identified therein as
Contract Documents, including all additions, deletions and
modifications incorporated therein. These generally
include the following documents:
a. Special Provisions or Conditions
b. General Conditions
c. Drawings
d. Specifications
e. Other Bid Documents
CONTRACT PRICE is the amount in money or other
consideration to be paid by the Owner to the Contractor for
the execution of the Work in accordance with the Contract.
CONTRACTOR is the person or firm duly registered and
licensed by the Philippine Contractors Accreditation Board
whose proposal has been accepted and to whom was
awarded the Contract to execute the Work.
DRAWINGS are graphical presentations of the Work. They
include all supplementary details and shop drawings.
FINAL PAYMENT refers to the payment of the final
progress billing and all approved claims including but not
limited to those variations in the work, Contract Price
adjustments and/or escalation, acceleration of work, and
others. It does not include the retention money.
GUARANTEE BOND is the approved form of security
furnished by the Contractor and his Surety as a guarantee
of the quality of the materials provided, the equipment
installed, and the workmanship performed by the
Contractor.
INSTRUCTION TO BIDDERS refers to the list of
instructions regarding the manner bids are to be prepared
and the conditions for the award of the Contract.
LAWS refers to all laws, ordinances and other
governmental rules and regulations applicable to the
project and to its execution.
OWNER is the person or entity or authorized
representative thereof who signed the Contract as Owner.
OWNER'S REPRESENTATIVE refers to the person or
entity commissioned by the Owner or authorized in writing
by the Owner to act on his behalf.
PAYMENT BOND is the approved form of security
furnished by the Contractor and his Surety as a guarantee
of good faith on the part of the Contractor to faithfully
comply with the Contract in respect of its obligations arising
therefrom to its workers, subcontractors, and suppliers.
PERFORMANCE BOND is the approved form of security
furnished by the Contractor and his Surety as a guarantee
of good faith on the part of the Contractor to execute the
Work in accordance with the Contract.
SCHEDULE OF MATERIALS AND FINISHES is an
outline specification enumerating the type or trade names
of materials required to be used by the Contractor for the
Work.
SPECIFICATIONS are the written or printed description of
the work to be done describing qualities of the material to
be used, the equipment to be installed and the mode of
construction.
SPECIAL PROVISIONS OR CONDITIONS are
instructions which are issued prior to bidding to
supplement and/or modify the Drawings, Specifications
and/or General Conditions of the Contract.
SUB-CONTRACTOR is a contractor duly registered and
licensed by the Philippine Contractors Accreditation Board
having a direct contract with the Contractor who acts for or
in behalf of the Contractor in executing any part of the
Contract. One who merely furnishes materials without
labor is a supplier and not a Sub-Contractor.
SUPPLEMENTARY SPECIFICATIONS refers to
additional information which may be issued as an addition
to or amendment of the provisions of the Specifications.
SURETY is the person, firm or corporation which issues
the bond required of the Contractor.
TIME LIMIT OR COMPLETION TIME is the period of time
allowed by the Contract for the
completion of the project or any stipulated portions thereof.
WRITTEN NOTICE means information, advice or
notification pertinent to the project delivered in person or
sent by registered mail to an individual, firm or corporation
at the latter's last known business address.
WORK refers to all the Contractor-provided labor or
materials or both as well as equipment
transportation, or other facilities necessary to commence
and complete the construction and to fulfill all his
obligations which are called for in the Contract.