CE181 CE Law, Contracts & Ethics

LECTURE - 7
PROJECT CONTRACT or AGREEMENT
CONTRACT AND BID DOCUMENT
FOR A PROJECT

Reynaldo S. Sitjar, Civil Engineer

 LECTURE - 7
PROJECT CONTRACT or AGREEMENT

7.0 Instruction to Bidders For a competitive bidding to be a

valid procedure, all competitors must bid under exactly the
same conditions for an identical “package of work”.

7.1 A competitive proposal was requested:

a) It requires that a set of bidding procedure will be

established and all bidders be required to conform.
b) It comprises the first division of the project manual and is
designated as instructions to bidders.
c) It prescribes certain procedures with the bidding
contractors.
d) Failure to comply with any stipulation of the instruction
to bidders can result in a contractors bid not being
accepted.
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PROJECT CONTRACT or AGREEMENT

7.2 Contracts Documents.

a) Notice to Bidders
b) Instruction to Bidders
c) General Conditions
d) Supplementary Conditions
e) Drawings and Specifications
f) Contractor’s Proposal Form
g) Agreement (as finally negotiated)
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PROJECT CONTRACT or AGREEMENT

7.3 Printed Form for Proposal are must be made upon the
Contractor’s Proposal Form attached;

a) It should give the amounts bid for the work:

• in words (Five hundred eighty thousand pesos.)
• in figures (Php 580,000.00)
b) It must be signed by both parties:
• the Owner and
• acknowledged by the Contractor
c) It should enclosed in a sealed envelop marked with:
• project name
• Sender’s name
• Return address
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PROJECT CONTRACT or AGREEMENT

7.4 Alternatives
Each bidder shall submit with his proposal, on forms
provided alternate proposals

a) Stating the differences in price from the bid base:

• Additions
• Deductions
b) Substituting
• Materials with different specifications and/or
• Change or adjustment of all trades
c) Omision:
• Opted as owner supplied materials OSM
• A different technology done by specialty Contractor
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PROJECT CONTRACT or AGREEMENT

7.5 Delivery of Proposal

a) It is the bidder’s responsibility to deliver his proposal at the

proper time to the proper place.

b) The mere fact that a proposal was dispatched will not be

considered.

c) The bidder must have the proposal actually delivered.

d) Any proposal received after the scheduled closing time will

be returned unopened to the bidder.
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PROJECT CONTRACT or AGREEMENT

7.6 Opening of Proposal

a) At the scheduled bid opening, the Owner’s bid committee

will open all the proposals.

b) Except those which have been withdrawn in accordance

with Item 7.9 Withdrawal of Proposal received prior to the
scheduled closing time for receipt of proposals.

c) The bids will be publicly opened known as open bidding.

d) The bids opened by the bid committee only is a close bid

with each of the member will sign on the bid document
including the minutes of meeting and the comparative bid
form filled up for each contractors.
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PROJECT CONTRACT or AGREEMENT
7.7 Alterations in Proposal

The proposals which are not in conformity or may be altered

may be rejected as informal.
a) which are incomplete
b) which are conditioned in any way
c) which contain erasures
d) which are not authentic

7.8 Proposals with Erasures

The proposal submitted must not contain erasures

interlineations or other corrections unless each such
correction is suitably authenticated by affixing in the margin
immediately opposite the correction the surname or
surnames of the person or persons signing the bid.
 LECTURE - 7
PROJECT CONTRACT or AGREEMENT

7.9 Withdrawal of Proposals

At any time prior to schedule of closing time for receipt of

proposals, any biidder may withdraw his proposal, either
personally or by electronic mail or written request.
If the withdrawal is made personally, proper receipt shall be
given therefore.

7.10 Rejection of Proposals

The Owner reserves the right to reject any or all proposals.

Without limiting the generality of the following:
a) Any proposal which is incomplete, obscure or irregular.
b) Any proposal in which unit prices are omitted or in which
unit price are obviously unbalanced
c) Bid bond may be rejected.
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PROJECT CONTRACT or AGREEMENT

7.11 Acceptance of Proposals Within 30 days after the receipt of

the proposals, the Owner will act upon them.
The acceptance of the proposal will be a Notice of Acceptance in
writing signed by a duly authorized representative of the Owner.
No other act of the Owner shall constitute shall constitute the
acceptance of the Owner.

7.12 Prices In the event of a discrepancy between the price quoted

in words and those quoted in figures in the proposal, the words shall
control. The prices are to include:

a) the furnishings of all materials, plant, equipment, tools, and

all other facilities
b) the performance of all labor and services necessary or
proper for the completion of the work except as may be
otherwise expressly provided in the contract document.
 LECTURE - 7
PROJECT CONTRACT or AGREEMENT
 HOMEWORK No. 7

SITUATION 7.1 Consider the plans on (Page A-3 and A-4 of

Estimating Bill of Material by Vicente A. Tagayun and the answers in
your Homework No.3
a) Create a project contract for a Client with you being the
Contractor?
b) Include the following the paragraphs stated in the same book
page total amount for of the project including the site
development cost in Philippine Peso?

SITUATION 7.2 Why is it important to study the conditions agreed in

the contract agreement before signing?

SITUATION 7.3 In the figure below, just give one answer. YES or NO
THANK YOU