PHILIPPINE BIDDING DOCUMENTS

(As Harmonized with Development Partners)

Procurement of
INFRASTRUCTURE
PROJECTS
Government of the Republic of the Philippines

Fifth Edition
August 2016
 Preface
These Philippine Bidding Documents (PBDs) for the procurement of Infrastructure
Projects (hereinafter referred to also as the “Works”) through Competitive Bidding have been
prepared by the Government of the Philippines (GoP) for use by all branches, agencies,
departments, bureaus, offices, or instrumentalities of the Government, including government-
owned and/or -controlled corporations (GOCCs), government financial institutions (GFIs),
state universities and colleges (SUCs), local government units (LGUs), and autonomous
regional government. The procedures and practices presented in this document have been
developed through broad experience, and are for mandatory1 use in projects that are financed
in whole or in part by the GoP or any foreign government/foreign or international financing
institution in accordance with the provisions of the 2016 Revised Implementing Rules and
Regulations (IRR) of Republic Act No. 9184 (R. A. 9184).

This PBDs is intended as a model for admeasurements (unit prices or unit rates in a
bill of quantities) types of contract, which are the most common in Works contracting.

The Bidding Documents shall clearly and adequately define, among others: (a) the
objectives, scope, and expected outputs and/or results of the proposed contract; (b) the
eligibility requirements of Bidders; (c) the expected contract duration; and (d) the obligations,
duties, and/or functions of the winning bidder.

In order to simplify the preparation of the Bidding Documents for each procurement,
the PBDs groups the provisions that are intended to be used unchanged in Section II.
Instructions to Bidders (ITB) and in Section IV. General Conditions of Contract (GCC). Data
and provisions specific to each procurement and contract should be included in Section III.
Bid Data Sheet (BDS); Section V. Special Conditions of Contract (SCC); Section VI.
Specifications; Section VII. Drawings; Section VIII. Bill of Quantities; and Section X.
Foreign-Assisted Projects. The forms to be used are provided in Section IX. Bidding Forms.

Care should be taken to check the relevance of the provisions of the Bidding
Documents against the requirements of the specific Works to be procured. In addition, each
section is prepared with notes intended only as information for the Procuring Entity or the
person drafting the Bidding Documents. They shall not be included in the final documents,
except for the notes introducing Section IX. Bidding Forms, where the information is useful
for the Bidder. The following general directions should be observed when using the
documents:

(a) All the documents listed in the Table of Contents are normally required for the
procurement of Infrastructure Project. However, they should be adapted as
necessary to the circumstances of the particular Project.

(b) Specific details, such as the “name of the Procuring Entity” and “address for
proposal submission,” should be furnished in the BDS and SCC. The final
documents should contain neither blank spaces nor options.

(c) This Preface and the footnotes or notes in italics included in the Invitation to Bid,
BDS, SCC, Specifications, Drawings, and Bill of Quantities are not part of the
1 Unless the Treaty or International or Executive Agreement expressly provides use of foreign
government/foreign or international financing institution procurement guidelines.

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 text of the final document, although they contain instructions that the
Procuring Entity should strictly follow. The Bidding Documents should
contain no footnotes except Section IX. Bidding Forms since these provide
important guidance to Bidders.

(d) The cover should be modified as required to identify the Bidding Documents as to
the names of the Project, Contract, and Procuring Entity, in addition to date of
issue.

(e) If modifications must be made to bidding procedures, they can be presented in the
BDS. Modifications for specific Project or Contract details should be provided
in the SCC as amendments to the Conditions of Contract. For easy
completion, whenever reference has to be made to specific clauses in the BDS
or SCC these terms shall be printed in bold type face on Section II.
Instructions to Bidders, and Section IV. General Conditions of Contract,
respectively.

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 TABLE OF CONTENTS

SECTION I. INVITATION TO BID 5

SECTION II. INSTRUCTIONS TO BIDDERS 9
SECTION III. BID DATA SHEET 39
SECTION IV. GENERAL CONDITIONS OF CONTRACT 44
SECTION V. SPECIAL CONDITIONS OF CONTRACT 77
SECTION VI. SPECIFICATIONS 81
SECTION VII. DRAWINGS 83
SECTION VIII. BILL OF QUANTITIES 84
SECTION IX. BIDDING FORMS 86
Section X. Foreign-Assisted Projects Error! Bookmark
not defined.

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 Section I. Invitation to Bid
Notes on the Invitation to Bid
The Invitation to Bid provides information that enables potential Bidders to decide whether
to participate in the procurement at hand. The Invitation to Bid shall be:

(a) Posted continuously in the Philippine Government Electronic Procurement System

(PhilGEPS) website and the website of the Procuring Entity concerned, if available,
and the website prescribed by the foreign government/foreign or international
financing institution, if applicable, for seven (7) calendar days starting on the date
of advertisement; and
(b) Posted at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned for seven (7) calendar days, as certified by the head of
the Bids and Awards Committee (BAC) Secretariat of the Procuring Entity
concerned.
(c) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Sections 21.2.1(c) of the 2016 Revised IRR of R.A. 91842;
Apart from the essential items listed in the Bidding Documents, the Invitation to Bid
should also indicate the following:
(a) The date of availability of the Bidding Documents, which shall be from the time
the Invitation to Bid is first advertised/posted until the deadline for the submission
and receipt of bids.
(b) The place where the Bidding Documents may be acquired or the website where
it may be downloaded.
(c) The deadline for the submission and receipt of bids from the last day of posting
of the Invitation to Bid; and
(d) Any important bid evaluation criteria.

The Invitation to Bid should be incorporated into the Bidding Documents. The
information contained in the Invitation to Bid must conform to the Bidding Documents and
in particular to the relevant information in the BDS.
For foreign-assisted projects, the Invitation to Bid to be used is provided in Section X-
Foreign-Assisted Projects.

2 Two years after the effectivity of the 2016 Revised IRR of RA 9184 on 28 October 2016, advertisement in a
newspaper of general nationwide circulation shall no longer be required. However, a Procuring Entity that
cannot post its opportunities in the PhilGEPS for justifiable reasons shall continue to publish its advertisements
in a newspaper of general nationwide circulation.

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 Kagawaran ng Interyor at Pamahalaang Lokal
(Department of the Interior and Local Government Regional Office No. IX)
A.T.D. Building, F.S. Pajares Avenue, San Jose District, Pagadian City

Invitation to Bid for Procurement of Infrastructure

Project for the Proposed Construction of DILG Provincial
Office located in Barangay Sta. Felomina, Dipolog City,
Zamboanga del Norte

1. The DILG Regional Office No. IX, through the [insert source of funding and year]3
intends to apply the sum of [insert the approved budget for the contract] being the
Approved Budget for the Contract (ABC) to payments under the contract for
Procurement of Infrastructure Project for the Proposed Construction of DILG
Provincial Office in Brgy. Sta. Felomina, Dipolog City, Zamboanga del Norte. Bids
received in excess of the ABC shall be automatically rejected at bid opening.

Select this for lot-procurement:

The DILG Regional Office No. IX, through the [insert source of funding and year]4
intends to apply the sum of [insert the approved budget for the contract corresponding
to each lot, and the name/identification/number of contract for each lot] being the
Approved Budget for the Contract (ABC) to payments under the contract for each lot.
Bids received in excess of the ABC for each lot shall be automatically rejected at bid
opening.

2. The DILG Regional Office No. IX now invites bids for the Procurement of
Infrastructure Project for the Proposed Construction of DILG Provincial Office
located in Brgy. Sta. Felomina, Dipolog City, Zamboanga del Norte.5 Completion of
the Works is required [insert the required completion date or expected contract
duration]. Bidders should have completed a contract similar to the Project. The
description of an eligible bidder is contained in the Bidding Documents, particularly, in
Section II. Instructions to Bidders.

3. Bidding will be conducted through open competitive bidding procedures using non-
discretionary “pass/fail” criterion as specified in the 2016 Revised Implementing Rules
and Regulations (IRR) of Republic Act 9184 (RA 9184), otherwise known as the
“Government Procurement Reform Act.”

Bidding is restricted to Filipino citizens/sole proprietorships, cooperatives, and

partnerships or organizations with at least seventy five percent (75%) interest or
outstanding capital stock belonging to citizens of the Philippines.
3 In the case of National Government Agencies, the General Appropriations Act and/or continuing
appropriations; in the case of GOCCs, GFIs, and SUCs, the Corporate Budget for the contract approved by the
governing Boards; in the case of LGUs, the Budget for the contract approved by the respective Sanggunian.
(Section 5(a), R.A. 9184)
4 Ibid.
5 A brief description of the scope of Works should be provided, including quantities, location of project, and
other information necessary to enable potential bidders to decide whether or not to respond to the invitation.
4. Interested bidders may obtain further information from DILG Regional Office No. IX
and inspect the Bidding Documents at the address given below from 8:00 am to 5:00
pm.

5. A complete set of Bidding Documents may be acquired by interested bidders on [insert

date of availability of Bidding Documents] from the address below {Insert if necessary:
and upon payment of the applicable fee for the Bidding Documents, pursuant to the
latest Guidelines issued by the GPPB, in the amount of [insert amount in Pesos].}

It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS) and the website of the
Procuring Entity, provided that bidders shall pay the applicable fee for the Bidding
Documents not later than the submission of their bids.

6. The DILG Regional Office No. IX will hold a Pre-Bid Conference6 on [insert time and
date] at [insert address for Pre-Bid Conference, if applicable], which shall be open to
prospective bidders.

7. Bids must be duly received by the BAC Secretariat at the address below on or before
[insert date and time]. All bids must be accompanied by a bid security in any of the
acceptable forms and in the amount stated in ITB Clause 27.

Bid opening shall be on [insert time and date] at [insert address for bid opening]. Bids
will be opened in the presence of the bidders’ representatives who choose to attend at
the address below. Late bids shall not be accepted.

8. [Insert such other necessary information deemed relevant by the Procuring Entity]

9. The DILG Regional Office No. IX reserves the right to reject any and all bids, declare
a failure of bidding, or not award the contract at any time prior to contract award in
accordance with Section 41 of RA 9184 and its IRR, without thereby incurring any
liability to the affected bidder or bidders.

10. For further information, please refer to:

Ginagene S. Vano Uy
Chairman, Bids and Awards Committee (BAC)
DILG Regional Office No. IX
San Jose District, Pagadian City
[Insert telephone number, indicate city code]
[Insert contact’s email address]
[Insert facsimile number]
[Insert website address, if applicable]

_________________________________
[Insert Name and Signature of the BAC

6 May be deleted in case the ABC is less than One Million Pesos (PhP1,000,000) where the Procuring Entity
may not hold a pre-bid conference.
Chairperson or the Authorized
Representative of the BAC Chairperson]
 Section II. Instructions to Bidders
Notes on the Instructions to Bidders
This Section of the Bidding Documents provides the information necessary for Bidders to
prepare responsive bids, in accordance with the requirements of the Procuring Entity. It
also provides information on the bid submission, eligibility check, opening and evaluation
of bids, and on the award of contract.

This Section also contains provisions that are to be used unchanged. Section III. Bid Data
Sheet consists of provisions that supplement, amend, or specify in detail information or
requirements included in this Section and which are specific to each procurement.

Matters governing the performance of the Contractor, payments under the contract, or
matters affecting the risks, rights, and obligations of the parties under the contract are not
normally included in this Section, but rather under Section IV. General Conditions of
Contract (GCC), and/or Section V. Special Conditions of Contract (SCC). If duplication of
a subject is inevitable in the other sections of the document prepared by the Procuring
Entity, care must be exercised to avoid contradictions between clauses dealing with the
same matter.

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 TABLE OF CONTENTS
A. GENERAL 12
1. Scope of Bid 12
2. Source of Funds 12
3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices 12
4. Conflict of Interest 14
5. Eligible Bidders 15
6. Bidder’s Responsibilities 16
7. Origin of GOODS and Services 19
8. Subcontracts 19
B. CONTENTS OF BIDDING DOCUMENTS 19
9. Pre-Bid Conference 19
10. Clarification and Amendment of Bidding Documents 20
C. PREPARATION OF BIDS 20
11. Language of Bids 20
12. Documents Comprising the Bid: Eligibility and Technical Components 21
13. Documents Comprising the Bid: Financial Component 23
14. Alternative Bids 24
15. Bid Prices 24
16. Bid Currencies 25
17. Bid Validity 25
18. Bid Security 25
19. Format and Signing of Bids 28
20. Sealing and Marking of Bids 28
D. SUBMISSION AND OPENING OF BIDS 29
21. Deadline for Submission of Bids 29
22. Late Bids 29
23. Modification and Withdrawal of Bids 29
24. Opening and Preliminary Examination of Bids 30
E. EVALUATION AND COMPARISON OF BIDS 32
25. Process to be Confidential 32
26. Clarification of Bids 32
27. Detailed Evaluation and Comparison of Bids 32

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 28. Post Qualification 33
29. Reservation Clause34
F. AWARD OF CONTRACT 35
30. Contract Award 35
31. Signing of the Contract 36
32. Performance Security 37
33. Notice to Proceed 38
34. Protest Mechanism………………………………………………………………..36

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 A. General

1. Scope of Bid
2. The Procuring Entity named in the BDS, invites bids for the construction of Works, as
described in Section VI. Specifications.

3. The name, identification, and number of lots specific to this bidding are provided in
the BDS. The contracting strategy and basis of evaluation of lots is described in ITB
Clause 27.

4. The successful Bidder will be expected to complete the Works by the intended
completion date specified in SCC Clause 1.17.

5. Source of Funds
The Procuring Entity has a budget or received funds from the Funding Source named
in the BDS, and in the amount indicated in the BDS. It intends to apply part of the
funds received for the Project, as defined in the BDS, to cover eligible payments
under the Contract for the Works.

6. Corrupt, Fraudulent, Collusive, Coercive, and

Obstructive Practices
7. Unless otherwise specified in the BDS, the Procuring Entity, as well as bidders and
contractors, shall observe the highest standard of ethics during the procurement and
execution of the contract. In pursuance of this policy, the Funding Source:

()a defines, for purposes of this provision, the terms set forth below as
follows:

()i "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 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; entering, on behalf of the
Procuring Entity, into any contract or transaction manifestly
and grossly disadvantageous to the same, whether or not the
public officer profited or will profit thereby, and similar acts as
provided in Republic Act 3019;

()ii "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 Procuring Entity, 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 Procuring Entity of the
benefits of free and open competition;

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 ()iii “collusive practices” means a scheme or arrangement between
two or more Bidders, with or without the knowledge of the
Procuring Entity, designed to establish bid prices at artificial,
non-competitive levels; and

()iv “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;

()v “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an administrative
proceedings or investigation or making false statements
to investigators in order to materially impede an
administrative proceedings or investigation of the
Procuring Entity or any foreign government/foreign or
international financing institution into allegations of a
corrupt, fraudulent, coercive or collusive practice;
and/or threatening, harassing or intimidating any party
to prevent it from disclosing its knowledge of matters
relevant to the administrative proceedings or
investigation or from pursuing such proceedings or
investigation; or

(bb) acts intended to materially impede the exercise of the

inspection and audit rights of the Procuring Entity or
any foreign government/foreign or international
financing institution herein.

()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; and

()c will declare a firm ineligible, either indefinitely or for a stated period
of time, to be awarded Contract funded by the Funding Source if it at
any time determines that the firm has engaged in corrupt or fraudulent
practices in competing or, or in executing, a Contract funded by the
Funding Source.

()a Further, the Procuring Entity will seek to impose the maximum civil,
administrative, and/or criminal penalties available under the applicable
laws on individuals and organizations deemed to be involved in any of
the practices mentioned in ITB Clause 3.1()a.

()b Furthermore, the Funding Source and the Procuring Entity reserve the
right to inspect and audit records and accounts of a contractor in the
bidding for and performance of a contract themselves or through
independent auditors as reflected in the GCC Clause 61.

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8. Conflict of Interest
9. All Bidders found to have conflicting interests shall be disqualified to participate in
the procurement at hand, without prejudice to the imposition of appropriate
administrative, civil, and criminal sanctions. A Bidder may be considered to have
conflicting interests with another Bidder in any of the events described in paragraphs
(a) through (c) and a general conflict of interest in any of the circumstances set out in
paragraphs (d) through (g) below:

()a A Bidder has controlling shareholders in common with another Bidder;

()b A Bidder receives or has received any direct or indirect subsidy from
any other Bidder;

()c A Bidder has the same legal representative as that of another Bidder for
purposes of this Bid;

()d A Bidder has a relationship, directly or through third parties, that puts
them in a position to have access to information about or influence on
the bid of another Bidder or influence the decisions of the Procuring
Entity regarding this bidding process;

()e A Bidder submits more than one bid in this bidding process. However,
this does not limit the participation of subcontractors in more than one
bid;

()f A Bidder who participated as a consultant in the preparation of the

design or technical specifications of the goods and related services that
are the subject of the bid; or

()g A Bidder who lends, or temporarily seconds, its personnel to firms or

organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the
project, if the personnel would be involved in any capacity on the same
project.

()h In accordance with Section 47 of the IRR of RA 9184, all Bidding

Documents shall be accompanied by a sworn affidavit of the Bidder
that it is not related to the Head of the Procuring Entity (HoPE),
members of the Bids and Awards Committee (BAC), members of the
Technical Working Group (TWG), members of the BAC Secretariat,
the head of the Project Management Office (PMO) or the end-user
unit, and the project consultants, by consanguinity or affinity up to the
third civil degree. On the part of the Bidder, this Clause shall apply to
the following persons:

()i If the Bidder is an individual or a sole proprietorship, to the Bidder

himself;

()j If the Bidder is a partnership, to all its officers and members;

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 ()k If the Bidder is a corporation, to all its officers, directors, and
controlling stockholders;

()l If the Bidder is a cooperative, to all its officers, directors, and

controlling shareholders or members; and

()m If the Bidder is a joint venture (JV), the provisions of items (a), (b), (c)
or (d) of this Clause shall correspondingly apply to each of the
members of the said JV, as may be appropriate.

Relationship of the nature described above or failure to comply with this

Clause will result in the automatic disqualification of a Bidder.

10. Eligible Bidders

11. Unless otherwise indicated in the BDS, the following persons shall be eligible to
participate in this Bidding:

()a Duly licensed Filipino citizens/sole proprietorships;

()b Partnerships duly organized under the laws of the Philippines and of
which at least seventy five percent (75%) of the interest belongs to
citizens of the Philippines;

()c Corporations duly organized under the laws of the Philippines, and of
which at least seventy five percent (75%) of the outstanding capital
stock belongs to citizens of the Philippines;

()d Cooperatives duly organized under the laws of the Philippines.

()e Persons/entities forming themselves into a JV, i.e., a group of two (2)
or more persons/entities that intend to be jointly and severally
responsible or liable for a particular contract: Provided, however, that,
in accordance with Letter of Instructions No. 630, Filipino ownership
or interest of the joint venture concerned shall be at least seventy five
percent (75%): Provided, further, that joint ventures in which Filipino
ownership or interest is less than seventy five percent (75%) may be
eligible where the structures to be built require the application of
techniques and/or technologies which are not adequately possessed by
a person/entity meeting the seventy five percent (75%) Filipino
ownership requirement: Provided, finally, that in the latter case,
Filipino ownership or interest shall not be less than twenty five percent
(25%). For this purpose, Filipino ownership or interest shall be based
on the contributions of each of the members of the joint venture as
specified in their JVA.

()f The Procuring Entity may also invite foreign bidders when provided
for under any Treaty or International or Executive Agreement as
specified in the BDS.

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 ()g Government owned or controlled corporations (GOCCs) may be
eligible to participate only if they can establish that they (a) are legally
and financially autonomous, (b) operate under commercial law, and (c)
are not attached agencies of the Procuring Entity.

()h (a) The Bidder must have an experience of having completed a Single
Largest Completed Contract that is similar to this Project, equivalent
to at least fifty percent (50%) of the ABC adjusted, if necessary, by the
Bidder to current prices using the Philippine Statistics Authority (PSA)
consumer price index. However, contractors under Small A and Small
B categories without similar experience on the contract to be bid may
be allowed to bid if the cost of such contract is not more than the
Allowable Range of Contract Cost (ARCC) of their registration based
on the guidelines as prescribed by the PCAB.

(b) For Foreign-funded Procurement, the Procuring Entity and the foreign
government/foreign or international financing institution may agree on another
track record requirement, as specified in the BDS.

For this purpose, contracts similar to the Project shall be those described in the
BDS.

The Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC),
which must be at least equal to the ABC to be bid, calculated as follows:

NFCC = [(Current assets minus current liabilities) (15)] minus the value of
all outstanding or uncompleted portions of the projects under ongoing
contracts, including awarded contracts yet to be started coinciding with the
contract for this Project.

The values of the domestic bidder’s current assets and current liabilities shall
be based on the latest Audited Financial Statements (AFS) submitted to the
BIR.

For purposes of computing the foreign bidders’ NFCC, the value of the current
assets and current liabilities shall be based on their audited financial
statements prepared in accordance with international financial reporting
standards.

1. Bidder’s Responsibilities
2. The Bidder or its duly authorized representative shall submit a sworn statement in the
form prescribed in Section IX. Bidding Forms as required in ITB Clause .8.1.()b()iii.

3. The Bidder is responsible for the following:

()a Having taken steps to carefully examine all of the Bidding

Documents;

()b Having acknowledged all conditions, local or otherwise, affecting the

implementation of the contract;

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()c Having made an estimate of the facilities available and needed for the
contract to be bid, if any;

()d Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin/s as provided under ITB Clause 5.

()e Ensuring that it is not “blacklisted” or barred from bidding by the GoP
or any of its agencies, offices, corporations, or LGUs, including
foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the GPPB;

()f Ensuring that each of the documents submitted in satisfaction of the

bidding requirements is an authentic copy of the original, complete,
and all statements and information provided therein are true and
correct;

()g Authorizing the HoPE or its duly authorized representative/s to verify

all the documents submitted;

()h Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary to participate, submit the bid, and to
sign and execute the ensuing contract, accompanied by the duly
notarized Special Power of Attorney, Board/Partnership Resolution, or
Secretary’s Certificate, whichever is applicable;

()i Complying with the disclosure provision under Section 47 of RA 9184

and its IRR in relation to other provisions of RA 3019;

()j Complying with existing labor laws and standards, in the case of
procurement of services. Moreover, bidder undertakes to:

()i Ensure the entitlement of workers to wages, hours of work,

safety and health and other prevailing conditions of work as
established by national laws, rules and regulations; or collective
bargaining agreement; or arbitration award, if and when
applicable.

In case there is a finding by the Procuring Entity or the DOLE

of underpayment or non-payment of workers’ wage and wage-
related benefits, bidder agrees that the performance security or
portion of the contract amount shall be withheld in favor of the
complaining workers pursuant to appropriate provisions of
Republic Act No. 9184 without prejudice to the institution of
appropriate actions under the Labor Code, as amended, and
other social legislations.

()ii Comply with occupational safety and health standards and to

correct deficiencies, if any.

In case of imminent danger, injury or death of the worker,

bidder undertakes to suspend contract implementation pending

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 clearance to proceed from the DOLE Regional Office and to
comply with Work Stoppage Order; and

()iii Inform the workers of their conditions of work, labor clauses

under the contract specifying wages, hours of work and other
benefits under prevailing national laws, rules and regulations;
or collective bargaining agreement; or arbitration award, if and
when applicable, through posting in two (2) conspicuous places
in the establishment’s premises; and

()k Ensuring that it did not give or pay, directly or indirectly, any
commission, amount, fee, or any form of consideration, pecuniary or
otherwise, to any person or official, personnel or representative of the;

Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.

The Bidder, by the act of submitting its bid, shall be deemed to have inspected the site,
determined the general characteristics of the contract works and the conditions for this
Project and examine all instructions, forms, terms, and project requirements in the
Bidding Documents.

It shall be the sole responsibility of the prospective bidder to determine and to satisfy itself by
such means as it considers necessary or desirable as to all matters pertaining to this
Project, including: (a) the location and the nature of the contract, project, or work; (b)
climatic conditions; (c) transportation facilities; (c) nature and condition of the terrain,
geological conditions at the site communication facilities, requirements, location and
availability of construction aggregates and other materials, labor, water, electric power
and access roads; and (d) other factors that may affect the cost, duration and execution
or implementation of the contract, project, or work.

The Procuring Entity shall not assume any responsibility regarding erroneous interpretations
or conclusions by the prospective or eligible bidder out of the data furnished by the
procuring entity. However, the Procuring Entity shall ensure that all information in
the Bidding Documents, including supplemental/bid bulletins issued are correct and
consistent.

Before submitting their bids, the Bidders are deemed to have become familiar with all
existing laws, decrees, ordinances, acts and regulations of the Philippines which may
affect the contract in any way.

The Bidder shall bear all costs associated with the preparation and submission of his bid, and
the Procuring Entity will in no case be responsible or liable for those costs, regardless
of the conduct or outcome of the bidding process.

The Bidder should note that the Procuring Entity will accept bids only from those that have
paid the applicable fee for the Bidding Documents at the office indicated in the
Invitation to Bid.

1. Origin of Goods and Services

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 There is no restriction on the origin of Goods, or Contracting of Works or Services
other than those prohibited by a decision of the United Nations Security Council taken
under Chapter VII of the Charter of the United Nations.

2. Subcontracts
3. Unless otherwise specified in the BDS, the Bidder may subcontract portions of the
Works to an extent as may be approved by the Procuring Entity and stated in the BDS.
However, subcontracting of any portion shall not relieve the Bidder from any liability
or obligation that may arise from the contract for this Project.

4. Subcontractors must submit the documentary requirements under ITB Clause 7 and
comply with the eligibility criteria specified in the BDS. In the event that any
subcontractor is found by the Procuring Entity to be ineligible, the subcontracting of
such portion of the Works shall be disallowed.

5. The Bidder may identify the subcontractor to whom a portion of the Works will be
subcontracted at any stage of the bidding process or during contract implementation.
If the Bidder opts to disclose the name of the subcontractor during bid submission, the
Bidder shall include the required documents as part of the technical component of its
bid.

B. Contents of Bidding Documents

6. Pre-Bid Conference
7. (a) If so specified in the BDS, a pre-bid conference shall be held at the venue and on
the date indicated therein, to clarify and address the Bidders’ questions on the
technical and financial components of this Project.

(b) The pre-bid conference shall be held at least twelve (12) calendar days
before the deadline for the submission of and receipt of bids, but not earlier
than seven (7) calendar days from the posting of the Invitation to Bid/Bidding
Documents in the PhilGEPS website. If the Procuring Entity determines that,
by reason of the method, nature, or complexity of the contract to be bid, or
when international participation will be more advantageous to the GoP, a
longer period for the preparation of bids is necessary, the pre-bid conference
shall be held at least thirty (30) calendar days before the deadline for the
submission and receipt of bids, as specified in the BDS.

Bidders are encouraged to attend the pre-bid conference to ensure that they fully understand
the Procuring Entity’s requirements. Non-attendance of the Bidder will in no way
prejudice its bid; however, the Bidder is expected to know the changes and/or
amendments to the Bidding Documents as recorded in the minutes of the pre-bid
conference and the Supplemental/Bid Bulletin. The minutes of the pre-bid conference
shall be recorded and prepared not later than five (5) calendar days after the pre-bid
conference. The minutes shall be made available to prospective bidders not later than
five (5) days upon written request.

19
Decisions of the BAC amending any provision of the bidding documents shall be issued in
writing through a Supplemental/Bid Bulletin at least seven (7) calendar days before
the deadline for the submission and receipt of bids.

1. Clarification and Amendment of Bidding Documents

2. Prospective bidders may request for clarification(s) on and/or interpretation of any
part of the Bidding Documents. Such a request must be in writing and submitted to
the Procuring Entity at the address indicated in the BDS at least ten (10) calendar days
before the deadline set for the submission and receipt of Bids.

3. The BAC shall respond to the said request by issuing a Supplemental/Bid Bulletin, to
be made available to all those who have properly secured the Bidding Documents, at
least seven (7) calendar days before the deadline for the submission and receipt of
Bids.

4. Supplemental/Bid Bulletins may also be issued upon the Procuring Entity’s initiative
for purposes of clarifying or modifying any provision of the Bidding Documents not
later than seven (7) calendar days before the deadline for the submission and receipt
of Bids. Any modification to the Bidding Documents shall be identified as an
amendment.

5. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of the Procuring Entity concerned, if available, and at any
conspicuous place in the premises of the Procuring Entity concerned. It shall be the
responsibility of all Bidders who have properly secured the Bidding Documents to
inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC.
However, Bidders who have submitted bids before the issuance of the
Supplemental/Bid Bulletin must be informed and allowed to modify or withdraw their
bids in accordance with ITB Clause 10.

C. Preparation of Bids

6. Language of Bids
The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or statements,
the bids, and all other documents submitted to the BAC are in foreign language other
than English, it must be accompanied by a translation of the documents in English.
The documents shall be translated by the relevant foreign government agency, the
foreign government agency authorized to translate documents, or a registered
translator in the foreign bidder’s country; and shall be authenticated by the
appropriate Philippine foreign service establishment/post or the equivalent office
having jurisdiction over the foreign bidder’s affairs in the Philippines. The English
translation shall govern, for purposes of interpretation of the bid.

7. Documents Comprising the Bid: Eligibility and

Technical Components

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8. Unless otherwise indicated in the BDS, the first envelope shall contain the following
eligibility and technical documents:

()a Eligibility Documents –

Class “A” Documents

()i PhilGEPS Certificate of Registration and Membership in

accordance with Section 8.5.2 of the IRR, except for foreign
bidders participating in the procurement by a Philippine
Foreign Service Office or Post, which shall submit their
eligibility documents under Section 23.1 of the IRR, provided,
that the winning bidder shall register with the PhilGEPS in
accordance with Section 37.1.4 of the IRR;

()ii Statement of all its ongoing government and private contracts,

including contracts awarded but not yet started, if any, whether
similar or not similar in nature and complexity to the contract
to be bid; and

Statement of the Bidder’s SLCC similar to the contract to be

bid, in accordance with ITB Clause 5.4.

The two statements required shall indicate for each contract the
following:

(ii.1) name of the contract;

(ii.2) date of the contract;

(ii.3) contract duration;

(ii.4) owner’s name and address;

(ii.5) nature of work;

(ii.6) contractor’s role (whether sole contractor,

subcontractor, or partner in a JV) and percentage of
participation;

(ii.7) total contract value at award;

(ii.8) date of completion or estimated completion time;

(ii.9) total contract value at completion, if applicable;

(ii.10) percentages of planned and actual accomplishments, if

applicable; and

(ii.11) value of outstanding works, if applicable.

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 The statement of the Bidder’s SLCC shall be supported by the
Notice of Award and/or Notice to Proceed, Project Owner’s
Certificate of Final Acceptance issued by the Owner other than
the Contractor or the Constructors Performance Evaluation
System (CPES) Final Rating, which must be at least
satisfactory. In case of contracts with the private sector, an
equivalent document shall be submitted;

()iii Unless otherwise provided in the BDS, a valid special PCAB

License in case of joint ventures, and registration for the type
and cost of the contract for this Project; and

()iv NFCC computation in accordance with ITB Clause 5.5.

Class “B” Documents

()v If applicable, Joint Venture Agreement (JVA) in accordance

with RA 4566.

()b Technical Documents –

()i Bid security in accordance with ITB Clause 27. If the Bidder
opts to submit the bid security in the form of:

(.i.1) a bank draft/guarantee or an irrevocable letter of credit

issued by a foreign bank, it shall be accompanied by a
confirmation from a Universal or Commercial Bank; or

(.i.2) a surety bond accompanied by a certification coming

from the Insurance Commission that the surety or
insurance company is authorized to issue such
instruments.

()ii Project Requirements, which shall include the following:

(.ii.1) Organizational chart for the contract to be bid;

(.ii.2) List of contractor’s personnel (e.g., Project Manager,

Project Engineers, Materials Engineers, and Foremen),
to be assigned to the contract to be bid, with their
complete qualification and experience data. These
personnel must meet the required minimum years of
experience set in the BDS; and

(.ii.3) List of contractor’s major equipment units, which are

owned, leased, and/or under purchase agreements,
supported by proof of ownership, certification of
availability of equipment from the equipment
lessor/vendor for the duration of the project, as the case
may be, which must meet the minimum requirements
for the contract set in the BDS; and

22
 ()iii Sworn statement in accordance with Section 25.3 of the IRR of
RA 9184 and using the form prescribed in Section IX. Bidding
Forms.

9. Documents Comprising the Bid: Financial

Component
10. Unless otherwise stated in the BDS, the financial component of the bid shall contain
the following:

()a Financial Bid Form, which includes bid prices and the bill of
quantities, in accordance with ITB Clauses 15.1 and 15.3; and

()b Any other document related to the financial component of the bid as
stated in the BDS.

()c (a) Unless otherwise stated in the BDS, all Bids that exceed the ABC shall
not be accepted.

(b) Unless otherwise indicated in the BDS, for foreign-funded

procurement, a ceiling may be applied to bid prices provided the
following conditions are met:

(i) Bidding Documents are obtainable free of charge on a freely

accessible website. If payment of Bidding Documents is required
by the procuring entity, payment could be made upon the
submission of bids.

(ii) The procuring entity has procedures in place to ensure that the
ABC is based on recent estimates made by the engineer or the
responsible unit of the procuring entity and that the estimates are
based on adequate detailed engineering (in the case of
infrastructure projects) and reflect the quality, supervision and
risk and inflationary factors, as well as prevailing market prices,
associated with the types of works or goods to be procured.

(iii) The procuring entity has trained cost estimators on estimating

prices and analyzing bid variances. In the case of infrastructure
projects, the procuring entity must also have trained quantity
surveyors.

(iv) The procuring entity has established a system to monitor and

report bid prices relative to ABC and engineer’s/procuring
entity’s estimate.

(v) The procuring entity has established a monitoring and evaluation

system for contract implementation to provide a feedback on
actual total costs of goods and works.

11. Alternative Bids

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12. Alternative Bids shall be rejected. For this purpose, alternative bid is an offer made by
a Bidder in addition or as a substitute to its original bid which may be included as part
of its original bid or submitted separately therewith for purposes of bidding. A bid
with options is considered an alternative bid regardless of whether said bid proposal is
contained in a single envelope or submitted in two (2) or more separate bid envelopes.

13. Bidders shall submit offers that comply with the requirements of the Bidding
Documents, including the basic technical design as indicated in the drawings and
specifications. Unless there is a value engineering clause in the BDS, alternative bids
shall not be accepted.

14. Each Bidder shall submit only one Bid, either individually or as a partner in a JV. A
Bidder who submits or participates in more than one bid (other than as a subcontractor
if a subcontractor is permitted to participate in more than one bid) will cause all the
proposals with the Bidder’s participation to be disqualified. This shall be without
prejudice to any applicable criminal, civil and administrative penalties that may be
imposed upon the persons and entities concerned.

15. Bid Prices

16. The contract shall be for the whole Works, as described in ITB Clause 2, based on the
priced Bill of Quantities submitted by the Bidder.

17. The Bidder shall fill in rates and prices for all items of the Works described in the Bill
of Quantities. Bids not addressing or providing all of the required items in the
Bidding Documents including, where applicable, Bill of Quantities, shall be
considered non-responsive and, thus, automatically disqualified. In this regard, where
a required item is provided, but no price is indicated, the same shall be considered as
non-responsive, but specifying a zero (0) or a dash (-) for the said item would mean
that it is being offered for free to the Government, except those required by law or
regulations to be provided for.

18. All duties, taxes, and other levies payable by the Contractor under the Contract, or for
any other cause, prior to the deadline for submission of bids, shall be included in the
rates, prices, and total bid price submitted by the Bidder.

19. All bid prices for the given scope of work in the contract as awarded shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances as specified in
GCC Clause 114. Upon the recommendation of the Procuring Entity, price escalation
may be allowed in extraordinary circumstances as may be determined by the National
Economic and Development Authority in accordance with the Civil Code of the
Philippines, and upon approval by the GPPB. Furthermore, in cases where the cost of
the awarded contract is affected by any applicable new laws, ordinances, regulations,
or other acts of the GoP, promulgated after the date of bid opening, a contract price
adjustment shall be made or appropriate relief shall be applied on a no loss-no gain
basis.

20. Bid Currencies

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21. All bid prices shall be quoted in Philippine Pesos unless otherwise provided in the
BDS. However, for purposes of bid evaluation, bids denominated in foreign
currencies shall be converted to Philippine currency based on the exchange rate
prevailing on the day of the Bid Opening.

22. If so allowed in accordance with ITB Clause 21, the Procuring Entity 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 rate
as published in the Bangko Sentral ng Pilipinas (BSP) reference rate bulletin on the
day of the bid opening.

23. Unless otherwise specified in the BDS, payment of the contract price shall be made in
Philippine Pesos.

24. Bid Validity

25. Bids shall remain valid for the period specified in the BDS which shall not exceed one
hundred twenty (120) calendar days from the date of the opening of bids.

26. In exceptional circumstances, prior to the expiration of the bid validity period, the
Procuring Entity may request Bidders to extend the period of validity of their bids.
The request and the responses shall be made in writing. The bid security described in
ITB Clause 27 should also be extended corresponding to the extension of the bid
validity period at the least. A Bidder may refuse the request without forfeiting its bid
security, but his bid shall no longer be considered for further evaluation and award. A
Bidder granting the request shall not be required or permitted to modify its bid.

27. Bid Security

28. The Bidder shall submit a Bid Securing Declaration or any form of Bid Security in an
amount stated in the BDS, which shall be not less than the percentage of the ABC in
accordance with the following schedule:

Amount of Bid Security

Form of Bid Security (Not less than the Percentage of
the ABC)
()a Cash or Two percent (2%)
cashier’s/manager’s check issued
by a Universal or Commercial
Bank.

For biddings conducted by

LGUs, the cashier’s/manager’s
check may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

25
 ()b Bank
draft/guarantee or irrevocable
letter of credit issued by a
Universal or Commercial Bank:
Provided, however, that it shall
be confirmed or authenticated by
a Universal or Commercial Bank,
if issued by a foreign bank.

For biddings conducted by

LGUs, the Bank Draft/
Guarantee, or irrevocable letter
of credit may be issued by other
banks certified by the BSP as
authorized to issue such
financial instrument.

()c Surety bond

callable upon demand issued by a
surety or insurance company
Five percent (5%)
duly certified by the Insurance
Commission as authorized to
issue such security; and/or

The Bid Securing Declaration mentioned above is an undertaking which

states, among others, that the Bidder shall enter into contract with the
procuring entity and furnish the performance security required under ITB
Clause 32.2, within ten (10) calendar days from receipt of the Notice of
Award, and commits to pay the corresponding amount as fine, and be
suspended for a period of time from being qualified to participate in any
government procurement activity in the event it violates any of the conditions
stated therein as provided in the guidelines issued by the GPPB.

The bid security should be valid for the period specified in the BDS. Any bid not
accompanied by an acceptable bid security shall be rejected by the Procuring Entity as
non-responsive.

No bid securities shall be returned to Bidders after the opening of bids and before contract
signing, except to those that failed or declared as post-disqualified, upon submission
of a written waiver of their right to file a request for reconsideration and/or protest, or
lapse of the reglementary period without having filed a request for reconsideration or
protest. Without prejudice on its forfeiture, Bid Securities shall be returned only after
the Bidder with the Lowest Calculated Responsive Bid (LCRB) has signed the
contract and furnished the Performance Security, but in no case later than the
expiration of the Bid Security validity period indicated in ITB Clause .

Upon signing and execution of the contract, pursuant to ITB Clause 8, and the posting of the
performance security, pursuant to ITB Clause 13, the successful Bidder’s Bid Security
will be discharged, but in no case later than the Bid Security validity period as
indicated in ITB Clause .

26
The bid security may be forfeited:

()a if a Bidder:

()i withdraws its bid during the period of bid validity specified in
ITB Clause 17;

()ii does not accept the correction of errors pursuant to ITB Clause
.7.1.()e;

()iii has a finding against the veracity of the required documents

submitted in accordance with ITB Clause 28.2;

()iv submission of eligibility requirements containing false

information or falsified documents;

()v submission of bids that contain false information or falsified

documents, or the concealment of such information in the bids
in order to influence the outcome of eligibility screening or any
other stage of the public bidding;

()vi allowing the use of one’s name, or using the name of another
for purposes of public bidding;

()vii withdrawal of a bid, or refusal to accept an award, or enter into

contract with the Government without justifiable cause, after
the Bidder had been adjudged as having submitted the LCRB;

()viii refusal or failure to post the required performance security

within the prescribed time;

()ix refusal to clarify or validate in writing its bid during post-

qualification within a period of seven (7) calendar days from
receipt of the request for clarification;

()x any documented attempt by a Bidder to unduly influence the

outcome of the bidding in his favor;

()xi failure of the potential joint venture partners to enter into the
joint venture after the bid is declared successful; or

()xii all other acts that tend to defeat the purpose of the competitive
bidding, such as habitually withdrawing from bidding,
submitting late Bids or patently insufficient bid, for at least
three (3) times within a year, except for valid reasons.

()b if the successful Bidder:

()i fails to sign the contract in accordance with ITB Clause 8;

()ii fails to furnish performance security in accordance with ITB

Clause 13.

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2. Format and Signing of Bids
19.1 Bidders shall submit their bids through their duly authorized representative
using the appropriate forms provided in Section IX. Bidding Forms on or
before the deadline specified in the ITB Clause 8 in two (2) separate sealed
bid envelopes, and which shall be submitted simultaneously. The first shall
contain the technical component of the bid, including the eligibility
requirements under ITB Clause 8, and the second shall contain the financial
component of the bid. This shall also be observed for each lot in the case of lot
procurement.

19.2 Forms as mentioned in ITB Clause 19.1 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.

19.3 The Bidder shall prepare and submit an original of the first and second
envelopes as described in ITB Clauses 7 and 9. In addition, the Bidder shall
submit copies of the first and second envelopes. In the event of any
discrepancy between the original and the copies, the original shall prevail.

19.4 Each and every page of the Bid Form, including the Bill of Quantities, under
Section IX hereof, shall be signed by the duly authorized representative/s of
the Bidder. Failure to do so shall be a ground for the rejection of the bid.

19.5 Any interlineations, erasures, or overwriting shall be valid only if they are
signed or initialed by the duly authorized representative/s of the Bidder.

3. Sealing and Marking of Bids

4. Bidders shall enclose their original eligibility and technical documents described in
ITB Clause 7, in one sealed envelope marked “ORIGINAL - TECHNICAL
COMPONENT,” and the original of their financial component in another sealed
envelope marked “ORIGINAL - FINANCIAL COMPONENT,” sealing them all in an
outer envelope marked “ORIGINAL BID.”

5. Each copy of the first and second envelopes shall be similarly sealed duly marking the
inner envelopes as “COPY NO. ___ - TECHNICAL COMPONENT” and “COPY
NO. ___ – FINANCIAL COMPONENT” and the outer envelope as “COPY NO.
___,” respectively. These envelopes containing the original and the copies shall then
be enclosed in one single envelope.

6. The original and the number of copies of the bid as indicated in the BDS shall be
typed or written in ink and shall be signed by the Bidder or its duly authorized
representative/s.

7. All envelopes shall:

()a contain the name of the contract to be bid in capital letters;

()b bear the name and address of the Bidder in capital letters;

28
 ()c be addressed to the Procuring Entity’s BAC in accordance with ITB
Clause 20.1;

()d bear the specific identification of this bidding process indicated in the
ITB Clause 1.2; and

()e bear a warning “DO NOT OPEN BEFORE…” the date and time for
the opening of bids, in accordance with ITB Clause 8.

()f Bid envelopes that are not properly sealed and marked, as required in
the bidding documents, shall not be rejected, but the Bidder or its duly
authorized representative shall acknowledge such condition of the bid
as submitted. The BAC or the Procuring Entity shall assume no
responsibility for the misplacement of the contents of the improperly
sealed or marked bid, or for its premature opening.

D. Submission and Opening of Bids

8. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and on or before
the date and time indicated in the BDS.

9. Late Bids
Any bid submitted after the deadline for submission and receipt of bids prescribed by
the Procuring Entity, pursuant to ITB Clause 8, shall be declared “Late” and shall not
be accepted by the Procuring Entity. The BAC shall record in the minutes of Bid
Submission and Opening, the Bidder’s name, its representative and the time the late
bid was submitted.

10. Modification and Withdrawal of Bids

11. The Bidder may modify its bid after it has been submitted; provided that the
modification is received by the Procuring Entity prior to the deadline prescribed for
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 and properly identified
in accordance with Clause 20, linked to its original bid marked as “TECHNICAL
MODIFICATION” or “FINANCIAL MODIFICATION” and stamped “received” by
the BAC. Bid modifications received after the applicable deadline shall not be
considered and shall be returned to the Bidder unopened.

12. A Bidder may, through a Letter of Withdrawal, withdraw its bid after it has been
submitted, for valid and justifiable reason; provided that the Letter of Withdrawal is
received by the Procuring Entity prior to the deadline prescribed for submission and
receipt of bids. The Letter of Withdrawal must be executed by the authorized
representative of the Bidder identified in the Omnibus Sworn Statement, a copy of
which should be attached to the letter.

13. Bids requested to be withdrawn in accordance with ITB Clause 11 shall be returned
unopened to the Bidders. A Bidder, who has acquired the bidding documents may also

29
 express its intention not to participate in the bidding through a letter which should
reach and be stamped by the BAC 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.

14. 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 Financial Bid
Form. Withdrawal of a bid during this interval shall result in the forfeiture of the
Bidder’s bid security, pursuant to ITB Clause , and the imposition of administrative,
civil, and criminal sanctions as prescribed by RA 9184 and its IRR.

15. Opening and Preliminary Examination of Bids

16. The BAC shall open the Bids in public, immediately after the deadline for the
submission and receipt of bids in public, as specified in the BDS. In case the Bids
cannot be opened as scheduled due to justifiable reasons, the BAC shall take custody
of the Bids submitted and reschedule the opening of Bids on the next working day or
at the soonest possible time through the issuance of a Notice of Postponement to be
posted in the PhilGEPS website and the website of the Procuring Entity concerned.

17. Unless otherwise specified in the BDS, the BAC shall open the first bid envelopes and
determine each Bidder’s compliance with the documents prescribed in ITB Clause 12,
using a non-discretionary “pass/fail” criterion. If a Bidder submits the required
document, it shall be rated “passed” for that particular requirement. In this regard,
bids that fail to include any requirement or are incomplete or patently insufficient
shall be considered as “failed”. Otherwise, the BAC shall rate the said first bid
envelope as “passed”.

18. Unless otherwise specified in the BDS, immediately after determining compliance
with the requirements in the first envelope, the BAC shall forthwith open the second
bid envelope of each remaining eligible Bidder whose first bid envelope was rated
“passed.” The second envelope of each complying Bidder shall be opened within the
same day. In case one or more of the requirements in the second envelope of a
particular bid is missing, incomplete or patently insufficient, and/or if the submitted
total bid price exceeds the ABC unless otherwise provided in ITB Clause 13.2, the
BAC shall rate the bid concerned as “failed.” Only bids that are determined to contain
all the bid requirements for both components shall be rated “passed” and shall
immediately be considered for evaluation and comparison.

19. Letters of Withdrawal shall be read out and recorded during bid opening, and the
envelope containing the corresponding withdrawn bid shall be returned to the Bidder
unopened.

20. All members of the BAC who are present during bid opening shall initial every page
of the original copies of all bids received and opened.

21. In the case of an eligible foreign bidder as described in ITB Clause 10, the following
Class “A” Documents may be substituted with the appropriate equivalent documents,
if any, issued by the country of the foreign bidder concerned, which shall likewise be

30
 uploaded and maintained in the PhilGEPS in accordance with Section 8.5.2 of the
IRR.:

a) Registration certificate from the Securities and Exchange Commission

(SEC), Department of Trade and Industry (DTI) for sole proprietorship, or
CDA for cooperatives;

b) Mayor’s/Business permit issued by the local government where the

principal place of business of the Bidder is located; and

c) Audited Financial Statements showing, among others, the prospective

Bidder’s total and current assets and liabilities stamped “received” by the
Bureau of Internal Revenue or its duly accredited and authorized
institutions, for the preceding calendar year which should not be earlier
than two years from the date of bid submission.

Each partner of a joint venture agreement shall likewise submit the document required in ITB
Clause 12.1(a)(i). Submission of documents required under ITB Clauses .8.1.
()a(.i.1).1()ii to 12.1(a)(iv) by any of the joint venture partners constitutes compliance.

The Procuring Entity shall prepare the minutes of the proceedings of the bid opening that
shall include, as a minimum: (a) names of Bidders, their bid price (per lot, if
applicable, and/or including discount, if any), bid security, findings of preliminary
examination, and whether there is a withdrawal or modification; and (b) attendance
sheet. The BAC members shall sign the abstract of bids as read.

24.8. The Bidders or their duly authorized representatives may attend the opening of
bids. The BAC shall ensure the integrity, security, and confidentiality of all
submitted bids. The Abstract of Bids as read and the minutes of the Bid
Opening shall be made available to the public upon written request and
payment of a specified fee to recover cost of materials.

24.9 To ensure transparency and accurate representation of the bid submission, the
BAC Secretariat shall notify in writing all Bidders whose bids it has received
through its PhilGEPS-registered physical address or official e-mail address.
The notice shall be issued within seven (7) calendar days from the date of the
bid opening.

E. Evaluation and Comparison of Bids

1. Process to be Confidential
2. Members of the BAC, including its staff and personnel, as well as its Secretariat and
TWG, are prohibited from making or accepting any kind of communication with any
Bidder regarding the evaluation of their bids until the issuance of the Notice of Award,
unless otherwise allowed in the case of ITB Clause 26.

3. Any effort by a Bidder to influence the Procuring Entity in the Procuring Entity’s
decision in respect of bid evaluation, bid comparison or contract award will result in
the rejection of the Bidder’s bid.

31
4. Clarification of Bids
To assist in the evaluation, comparison and post-qualification of the bids, the
Procuring Entity may ask in writing any Bidder for a clarification of its bid. All
responses to requests for clarification shall be in writing. Any clarification submitted
by a Bidder in respect to its bid and that is not in response to a request by the
Procuring Entity shall not be considered

5. Detailed Evaluation and Comparison of Bids

6. The Procuring Entity will undertake the detailed evaluation and comparison of Bids
which have passed the opening and preliminary examination of Bids, pursuant to ITB
Clause 24, in order to determine the Lowest Calculated Bid.

7. The Lowest Calculated Bid shall be determined in two steps:

()a The detailed evaluation of the financial component of the bids, to

establish the correct calculated prices of the bids; and

()b The ranking of the total bid prices as so calculated from the lowest to
highest. The bid with the lowest price shall be identified as the Lowest
Calculated Bid.

()c The Procuring Entity's BAC shall immediately conduct a detailed

evaluation of all bids rated “passed,” using non-discretionary
“pass/fail” criterion. The BAC shall consider the following in the
evaluation of bids:

()d Completeness of the bid. Unless the BDS allows partial bids, bids not
addressing or providing all of the required items in the Schedule of
Requirements including, where applicable, bill of quantities, shall be
considered non-responsive and, thus, automatically disqualified. In this
regard, where a required item is provided, but no price is indicated, the
same shall be considered as non-responsive, but specifying a zero (0)
or a dash (-) for the said item would mean that it is being offered for
free to the Procuring Entity, except those required by law or
regulations to be provided for; and

()e Arithmetical corrections. Consider computational errors and omissions

to enable proper comparison of all eligible bids. It may also consider
bid modifications. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.

()f Based on the detailed evaluation of bids, those that comply with the
above-mentioned requirements shall be ranked in the ascending order
of their total calculated bid prices, as evaluated and corrected for
computational errors, discounts and other modifications, to identify the
Lowest Calculated Bid. Total calculated bid prices, as evaluated and
corrected for computational errors, discounts and other modifications,
which exceed the ABC shall not be considered, unless otherwise
indicated in the BDS.

32
 ()g The Procuring Entity’s evaluation of bids shall be based on the bid
price quoted in the Bid Form, which includes the Bill of Quantities.

()h Bids shall be evaluated on an equal footing to ensure fair competition.

For this purpose, all Bidders shall be required to include in their bids
the cost of all taxes, such as, but not limited to, value added tax (VAT),
income tax, local taxes, and other fiscal levies and duties which shall
be itemized in the bid form and reflected in the detailed estimates.
Such bids, including said taxes, shall be the basis for bid evaluation
and comparison.

()i If so indicated pursuant to ITB Clause 1.2. Bids are being invited for
individual lots or for any combination thereof, provided that all Bids
and combinations of Bids shall be received by the same deadline and
opened and evaluated simultaneously so as to determine the bid or
combination of bids offering the lowest calculated cost to the
Procuring Entity. Bid prices quoted shall correspond to all of the
requirements specified for each lot. Bid Security as required by ITB
Clause 18 shall be submitted for each contract (lot) separately. The
basis for evaluation of lots is specified in BDS Clause 27.3.

8. Post Qualification
9. The BAC shall determine to its satisfaction whether the Bidder that is evaluated as
having submitted the Lowest Calculated Bid complies with and is responsive to all the
requirements and conditions specified in ITB Clauses 5, 7, and 9.

10. Within a non-extendible period of five (5) calendar days from receipt by the Bidder of
the notice from the BAC that it submitted the Lowest Calculated Bid, the Bidder shall
submit its latest income and business tax returns filed and paid through the BIR
Electronic Filing and Payment System (eFPS) and other appropriate licenses and
permits required by law and stated in the BDS.

Failure to submit any of the post-qualification requirements on time, or a

finding against the veracity thereof, shall disqualify the Bidder for award.
Provided in the event that a finding against the veracity of any of the
documents submitted is made, it shall cause the forfeiture of the bid security in
accordance with Section 69 of the IRR of RA 9184.

The determination shall be based upon an examination of the documentary evidence of the
Bidder’s qualifications submitted pursuant to ITB Clauses 7 and 9, as well as other
information as the Procuring Entity deems necessary and appropriate, using a non-
discretionary “pass/fail” criterion, which shall be completed within a period of twelve
(12) calendar days.

If the BAC determines that the Bidder with the Lowest Calculated Bid passes all the criteria
for post-qualification, it shall declare the said bid as the LCRB, and recommend to the
HoPE the award of contract to the said Bidder at its submitted price or its calculated
bid price, whichever is lower, subject to ITB Clause 7.

33
A negative determination shall result in rejection of the Bidder’s bid, in which event the
Procuring Entity shall proceed to the next Lowest Calculated Bid, with a fresh period
to make a similar determination of that Bidder’s capabilities to perform satisfactorily.
If the second Bidder, however, fails the post qualification, the procedure for post
qualification shall be repeated for the Bidder with the next Lowest Calculated Bid,
and so on until the LCRB is determined for recommendation of contract award.

Within a period not exceeding fifteen (15) calendar days from the determination by the BAC
of the LCRB and the recommendation to award the contract, the HoPE or his duly
authorized representative shall approve or disapprove the said recommendation.

In the event of disapproval, which shall be based on valid, reasonable, and justifiable grounds
as provided for under Section 41 of the IRR of RA 9184, the HoPE shall notify the
BAC and the Bidder in writing of such decision and the grounds for it. When
applicable, the BAC shall conduct a post-qualification of the Bidder with the next
Lowest Calculated Bid. A request for reconsideration may be filed by the Bidder with
the HoPE in accordance with Section 37.1.3 of the IRR of RA 9184.

1. Reservation Clause
2. Notwithstanding the eligibility or post-qualification of a Bidder, the Procuring Entity
concerned reserves the right to review its qualifications at any stage of the
procurement process if it has reasonable grounds to believe that a misrepresentation
has been made by the said Bidder, or that there has been a change in the Bidder’s
capability to undertake the project from the time it submitted its eligibility
requirements. Should such review uncover any misrepresentation made in the
eligibility and bidding requirements, statements or documents, or any changes in the
situation of the Bidder which will affect its capability to undertake the project so that
it fails the preset eligibility or bid evaluation criteria, the Procuring Entity shall
consider the said Bidder as ineligible and shall disqualify it from submitting a bid or
from obtaining an award or contract.

3. Based on the following grounds, the Procuring Entity reserves the right to reject any
and all Bids, declare a Failure of Bidding at any time prior to the contract award, or
not to award the contract, without thereby incurring any liability, and make no
assurance that a contract shall be entered into as a result of the bidding:

()a If there is prima facie evidence of collusion between appropriate public

officers or employees of the Procuring Entity, or between the BAC and
any of the Bidders, or if the collusion is between or among the Bidders
themselves, or between a Bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict, suppress or
nullify competition;

()b If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or

()c For any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the GOP as follows:

34
 ()i If the physical and economic conditions have significantly
changed so as to render the project no longer economically,
financially or technically feasible as determined by the HoPE;

()ii If the project is no longer necessary as determined by the

HoPE; and

()iii If the source of funds for the project has been withheld or
reduced through no fault of the Procuring Entity.

()iv In addition, the Procuring Entity may likewise declare a failure

of bidding when:

()d No bids are received;

()e All prospective Bidders are declared ineligible;

()f All bids fail to comply with all the bid requirements, fail post-
qualification; or

()g The Bidder with the LCRB refuses, without justifiable cause, to accept
the award of contract, and no award is made in accordance with
Section 40 of the IRR of RA 9184.

F. Award of Contract

4. Contract Award
5. Subject to ITB Clause 8, the HoPE or its duly authorized representative shall award
the contract to the Bidder whose bid has been determined to be the LCRB.

6. Prior to the expiration of the period of bid validity, the Procuring Entity shall notify
the successful Bidder in writing that its bid has been accepted, through a Notice of
Award duly received by the Bidder or its representative personally or by registered
mail or electronically, receipt of which must be confirmed in writing within two (2)
days by the Bidder with the LCRB and submitted personally or sent by registered mail
or electronically to the Procuring Entity.

7. Notwithstanding the issuance of the Notice of Award, award of contract shall be

subject to the following conditions:

()a Submission of the following documents within ten (10) calendar days
from receipt of the Notice of Award:

()i In the case of procurement by a Philippine Foreign Service

Office or Post, the PhilGEPS Registration Number of the
winning foreign Bidder; or

()ii Valid PCAB license and registration for the type and cost of the
contract to be bid for foreign bidders when the Treaty or
International or Executive Agreement expressly allows
submission of the PCAB license and registration for the type

35
 and cost of the contract to be bid as a pre-condition to the
Award;

()b Posting of the performance security in accordance with ITB Clause 13;

()c Signing of the contract as provided in ITB Clause 8; and

()d Approval by higher authority, if required, as provided in Section 37.3

of the IRR of RA 9184.

8. Signing of the Contract

9. At the same time as the Procuring Entity notifies the successful Bidder that its bid has
been accepted, the Procuring Entity shall send the Contract Form to the Bidder, which
Contract has been provided in the Bidding Documents, incorporating therein all
agreements between the parties.

10. Within ten (10) calendar days from receipt of the Notice of Award, the successful
Bidder shall post the required performance security, sign and date the contract and
return it to the Procuring Entity.

11. The Procuring Entity shall enter into contract with the successful Bidder within the
same ten (10) calendar day period provided that all the documentary requirements are
complied with.

12. The following documents shall form part of the contract:

()a Contract Agreement;

()b Bidding Documents;

()c Winning Bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted (e.g., Bidder’s response
to request for clarifications on the bid), including corrections to the
bid, if any, resulting from the Procuring Entity’s bid evaluation;

()d Performance Security;

()e Notice of Award of Contract; and

()f Other contract documents that may be required by existing laws and/or
specified in the BDS.

13. Performance Security

14. To guarantee the faithful performance by the winning Bidder of its obligations under
the contract, it shall post a performance security within a maximum period of ten (10)
calendar days from the receipt of the Notice of Award from the Procuring Entity and
in no case later than the signing of the contract.

36
15. The Performance Security shall be denominated in Philippine Pesos and posted in
favor of the Procuring Entity in an amount not less than the percentage of the total
contract price in accordance with the following schedule:

Amount of Performance Security

Form of Performance Security (Not less than the Percentage of the
Total Contract Price)
()a Cash or
cashier’s/manager’s check
issued by a Universal or
Commercial Bank.

For biddings conducted by the

LGUs, the
Cashier’s/Manager’s Check
may be issued by other banks
certified by the BSP as
authorized to issue such
financial instrument.

()b Bank
draft/guarantee or irrevocable
letter of credit issued by a Ten percent (10%)
Universal or Commercial Bank:
Provided, however, that it shall
be confirmed or authenticated
by a Universal or Commercial
Bank, if issued by a foreign
bank.

For biddings conducted by the

LGUs, Bank Draft/Guarantee,
or Irrevocable Letter of Credit
may be issued by other banks
certified by the BSP as
authorized to issue such
financial instrument.

()c Surety bond

callable upon demand issued by Thirty percent (30%)
a surety or insurance company
duly certified by the Insurance
Commission as authorized to
issue such security.

16. Failure of the successful Bidder to comply with the above-mentioned requirement
shall constitute sufficient ground for the annulment of the award and forfeiture of the
bid security, in which event the Procuring Entity shall have a fresh period to initiate
and complete the post qualification of the second Lowest Calculated Bid. The
procedure shall be repeated until LCRB is identified and selected for recommendation

37
 of contract award. However if no Bidder passed post-qualification, the BAC shall
declare the bidding a failure and conduct a re-bidding with re-advertisement, if
necessary.

17. Notice to Proceed

Within seven (7) calendar days from the date of approval of the Contract by the
appropriate government approving authority, the Procuring Entity shall issue the
Notice to Proceed (NTP) together with a copy or copies of the approved contract to
the successful Bidder. All notices called for by the terms of the contract shall be
effective only at the time of receipt thereof by the successful Bidder.

18. Protest Mechanism

Decision of the procuring entity at any stage of the procurement process may be
questioned in accordance with Sections 55 of the IRR of RA 9184.

38
 Section III. Bid Data Sheet

Notes on the Bid Data Sheet

This Section is intended to assist the Procuring Entity in providing the specific information
in relation to corresponding clauses in the ITB included in Section II, and has to be
prepared for each specific procurement.

The Procuring Entity should specify in the BDS information and requirements specific to
the circumstances of the Procuring Entity, the processing of the procurement, the
applicable rules regarding bid price and currency, and the bid evaluation criteria that will
apply to the Bids. In preparing this Section, the following aspects should be checked:

(a) Information that specifies and complements provisions of Section II. Instructions to
Bidders must be incorporated.

(b) Amendments and/or supplements, if any, to provisions of Section II. Instructions to

Bidders as necessitated by the circumstances of the specific procurement, must also
be incorporated.

For foreign-assisted projects, the Bid Data Sheet to be used is provided in Section X-
Foreign-Assisted Projects.

39
 Bid Data Sheet

ITB Clause
2 The Procuring Entity is :
Department of the Interior and Local Government
Regional Office No. IX
San Jose District, Pagadian City.

The name of the Contract is:

Procurement of Infrastructure Project for the Proposed Construction of

DILG Provincial Office located in Barangay Sta. Felomina, Dipolog
City, Zamboanga del Norte

The identification number of the Contract is [insert identification number of

the contract as provided in the Invitation to Bid].

5 The Funding Source is:

The Government of the Philippines (GoP) through [indicate source of

funding and year] in the amount of [insert amount of funds].

NOTE: In the case of National Government Agencies, the General

Appropriations Act and/or continuing appropriations; in the case of
Government-Owned and/or –Controlled Corporations, Government
Financial Institutions, and State Universities and Colleges, the Corporate
Budget for the contract approved by the governing Boards; in the case of
Local Government Units, the Budget for the contract approved by the
respective Sanggunian.

The name of the Project is Procurement of Infrastructure Project for the

Proposed Construction of DILG Provincial Office located in Barangay
Sta. Felomina, Dipolog City, Zamboanga del Norte

3.1 No further instructions.

5.1 No further instructions.

.11.1.()f Select one, delete the other.

Foreign bidders may participate in this Project as provided for in [State

relevant provisions of the applicable Treaty or International or Executive
Agreement.] or

Bidding is restricted to eligible bidders as defined in ITB Clause 5.1.

.11.1.()h(a) No further instructions.

40
5.4(b) For this purpose, similar contracts shall refer to contracts which have the
same major categories of work. [insert description/clarification of what are
major categories of work].

3 State either “Subcontracting is not allowed.” or specify the portions of Works

and the maximum percentage allowed to be subcontracted.

NOTE: The contractor shall undertake not less than 50% of the contracted
works with its own resources.

4 If subcontracting is allowed, specify the eligibility criteria that subcontractors

must comply with; including the corresponding documentary requirements
therefor; otherwise, state “Not applicable.”

7 The Procuring Entity will hold a pre-bid conference for this Project on
[State date and time] at [State address of venue] {insert if applicable and
through video-conferencing/webcasting via [insert website, application or
technology to be used].}.

10.1 The Procuring Entity’s address is:

Department of the Interior and Local Government
Regional Office No. IX
A.T.D. Building, F.S. Pajares Ave.,
San Jose District, Pagadian City

Ginagene S. Vano Uy
Chairman, Bids and Awards Committee
[Insert telephone and fax number of Contact]
[Insert email address of contact (if applicable)]
5 No further instructions.

8 No further instructions.

.8.1. No further instructions.

()a(.i.1).1()iii

12.1(b)(ii.2) The minimum work experience requirements for key personnel are the
following:

Key Personnel General Experience Relevant Experience

12.1(b)(iii.3) The minimum major equipment requirements are the following:

Equipment Capacity Number of Units

10 List any additional requirements or state “No additional Requirements”

41
13.1(b) This shall include all of the following documents:

1) Bid prices in the Bill of Quantities;

2) Detailed estimates, including a summary sheet indicating the unit

prices of construction materials, labor rates, and equipment rentals
used in coming up with the Bid; and

3) Cash flow by quarter or payment schedule.

13.2 The ABC is [insert amount]. Any bid with a financial component exceeding
this amount shall not be accepted.

13 Insert value engineering clause if allowed, otherwise state “No further

instructions.”

15.4 No further instruction.

21 Select one, delete the other:

The bid prices shall be quoted in Philippine Pesos.

Or

The bid prices shall be quoted either in Philippine Pesos or United States
Dollars at the discretion of the Bidder.

16.3 No further instructions.

25 Bids will be valid until [insert date].

28 The bid security shall be in the form of a Bid Securing Declaration or any of
the following forms and amounts:

1. The amount of not less than __________ [Insert 2% of ABC], if bid

security is in cash, cashier’s/manager’s check, bank draft/guarantee or
irrevocable letter of credit;

2. The amount of not less than __________ [Insert 5% of ABC] if bid

security is in Surety Bond.

The bid security shall be valid until [insert date].

6 Each Bidder shall submit [insert required number] original and [insert
required number] copies of the first and second components of its bid.

8 The address for submission of bids is:

Department of the Interior and Local Government

Regional Office No. IX
A.T.D. Building, F.S. Pajares Ave.,

42
 San Jose District, Pagadian City

The deadline for submission of bids is [insert time and date].

16 The place of bid opening is:

Department of the Interior and Local Government

Regional Office No. IX
A.T.D. Building, F.S. Pajares Ave.,
San Jose District, Pagadian City

The date and time of bid opening is [insert time and date].

24.2 No further instructions.

24.3 No further instructions.

27.3 Select one of the following paragraphs and delete the other:

Partial bid is not allowed. The infrastructure project is packaged in a single

lot and the lot shall not be divided into sub-lots for the purpose of bidding,
evaluation, and contract award.

Or

All infrastructure projects are packaged in lots listed below. Bidders shall
have the option of submitting a proposal on any or all lots and evaluation
and contract award will be undertaken on a per lot basis. Lots shall not be
divided further into sub-lots for the purpose of bidding, evaluation, and
contract award.

In all cases, the NFCC computation, if applicable, must be sufficient for all
the lots or contracts to be awarded to the Bidder.

[Insert grouping of lots]

.7.1.()f No further instructions.

28.2 List licenses and permits relevant to the Project and the corresponding law
requiring it or state “None.”

.12.1.()f List additional contract documents relevant to the Project that may be
required by existing laws and/or the Procuring Entity, such as construction
schedule and S-curve, manpower schedule, construction methods,
equipment utilization schedule, construction safety and health program
approved by the Department of Labor and Employment, and PERT/CPM or
other acceptable tools of project scheduling.

43
 Section IV. General Conditions of Contract

Notes on the General Conditions of Contract

The GCC in Section IV, read in conjunction with the SCC in Section V and other
documents listed therein, should be a complete document expressing all the rights and
obligations of the parties.

The GCC herein shall not be altered. Any changes and complementary information, which
may be needed, shall be introduced only through the SCC in Section V.

44
 TABLE OF CONTENTS

1. DEFINITIONS 47
2. INTERPRETATION 49
3. GOVERNING LANGUAGE AND LAW 50
4. COMMUNICATIONS 50
5. POSSESSION OF SITE 50
6. THE CONTRACTOR’S OBLIGATIONS 50
7. PERFORMANCE SECURITY 51
8. SUBCONTRACTING 52
9. LIQUIDATED DAMAGES 53
10. SITE INVESTIGATION REPORTS 53
11. THE PROCURING ENTITY, LICENSES AND PERMITS
53
12. CONTRACTOR’S RISK AND WARRANTY SECURITY 53
13. LIABILITY OF THE CONTRACTOR 56
14. PROCURING ENTITY’S RISK 56
15. INSURANCE 56
16. TERMINATION FOR DEFAULT OF CONTRACTOR 57
17. TERMINATION FOR DEFAULT OF PROCURING ENTITY
58
18. TERMINATION FOR OTHER CAUSES 58
19. PROCEDURES FOR TERMINATION OF CONTRACTS 60
20. FORCE MAJEURE, RELEASE FROM PERFORMANCE 62
21. RESOLUTION OF DISPUTES 63
22. SUSPENSION OF LOAN, CREDIT, GRANT, OR
APPROPRIATION 64
23. PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS
64
24. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY
THE PROCURING ENTITY’S REPRESENTATIVE 64

45
25. ACCELERATION AND DELAYS ORDERED BY THE
PROCURING ENTITY’S REPRESENTATIVE 64
26. EXTENSION OF THE INTENDED COMPLETION DATE
65
27. RIGHT TO VARY 65
28. CONTRACTORS RIGHT TO CLAIM 65
29. DAYWORKS 65
30. EARLY WARNING 66
31. PROGRAM OF WORK 66
32. MANAGEMENT CONFERENCES 67
33. BILL OF QUANTITIES 67
34. INSTRUCTIONS, INSPECTIONS AND AUDITS 67
35. IDENTIFYING DEFECTS 68
36. COST OF REPAIRS 68
37. CORRECTION OF DEFECTS 68
38. UNCORRECTED DEFECTS 68
39. ADVANCE PAYMENT 69
40. PROGRESS PAYMENTS 69
41. PAYMENT CERTIFICATES 70
42. RETENTION 70
43. VARIATION ORDERS 71
44. CONTRACT COMPLETION 72
45. SUSPENSION OF WORK 73
46. PAYMENT ON TERMINATION 73
47. EXTENSION OF CONTRACT TIME 74
48. PRICE ADJUSTMENT 75
49. COMPLETION 75
50. TAKING OVER 75
51. Operating and Maintenance Manuals 75

46
47
1. Definitions
For purposes of this Clause, boldface type is used to identify defined terms.

.1.1. The Arbiter is the person appointed jointly by the Procuring Entity and the
Contractor to resolve disputes in the first instance, as provided for in GCC
Clause 16.

.1.2. Bill of Quantities refers to a list of the specific items of the Work and their
corresponding unit prices, lump sums, and/or provisional sums.

.1.3. The Completion Date is the date of completion of the Works as certified by
the Procuring Entity’s Representative, in accordance with GCC Clause 115.

.1.4. The Contract is the contract between the Procuring Entity and the Contractor
to execute, complete, and maintain the Works.

1.5 The Contract Effectivity Date is the date of signing of the Contract.
However, the contractor shall commence execution of the Works on the Start
Date as defined in GCC Clause 1.28.

1.6 The Contract Price is the price stated in the Notice of Award and thereafter to
be paid by the Procuring Entity to the Contractor for the execution of the
Works in accordance with this Contract

1.7 Contract Time Extension is the allowable period for the Contractor to
complete the Works in addition to the original Completion Date stated in this
Contract.

1.8 The Contractor is the juridical entity whose proposal has been accepted by
the Procuring Entity and to whom the Contract to execute the Work was
awarded.

1.9 The Contractor’s Bid is the signed offer or proposal submitted by the
Contractor to the Procuring Entity in response to the Bidding Documents.

1.10 Days are calendar days; months are calendar months.

1.11 Dayworks are varied work inputs subject to payment on a time basis for the
Contractor’s employees and Equipment, in addition to payments for associated
Materials and Plant.

1.12 A Defect is any part of the Works not completed in accordance with the
Contract.

1.13 The Defects Liability Certificate is the certificate issued by Procuring

Entity’s Representative upon correction of defects by the Contractor.

1.14 The Defects Liability Period is the one year period between contract
completion and final acceptance within which the Contractor assumes the

48
 responsibility to undertake the repair of any damage to the Works at his own
expense.

1.15 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.

1.16 Equipment refers to all facilities, supplies, appliances, materials or things

required for the execution and completion of the Work provided by the
Contractor and which shall not form or are not intended to form part of the
Permanent Works.

1.17 The Intended Completion Date refers to the date specified in the SCC when
the Contractor is expected to have completed the Works. The Intended
Completion Date may be revised only by the Procuring Entity’s
Representative by issuing an extension of time or an acceleration order.

1.18 Materials are all supplies, including consumables, used by the Contractor for
incorporation in the Works.

1.19 The Notice to Proceed is a written notice issued by the Procuring Entity or the
Procuring Entity’s Representative to the Contractor requiring the latter to
begin the commencement of the work not later than a specified or
determinable date.

1.20 Permanent Works are all 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 Procuring Entity and which shall
remain at the Site after the removal of all Temporary Works.

1.21 Plant refers to the machinery, apparatus, and the like intended to form an
integral part of the Permanent Works.

1.22 The Procuring Entity is the party who employs the Contractor to carry out
the Works stated in the SCC.

1.23 The Procuring Entity’s Representative refers to the Head of the

Procuring Entity or his duly authorized representative, identified in the SCC,
who shall be responsible for supervising the execution of the Works and
administering this Contract.

1.24 The Site is the place provided by the Procuring Entity where the Works shall
be executed and any other place or places which may be designated in the
SCC, or notified to the Contractor by the Procuring Entity’s Representative as
forming part of the Site.

1.25 Site Investigation Reports are those that were included in the Bidding
Documents and are factual and interpretative reports about the surface and
subsurface conditions at the Site.

1.26 Slippage is a delay in work execution occurring when actual accomplishment

falls below the target as measured by the difference between the scheduled and

49
 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.

1.27 Specifications means 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.

1.28 The Start Date, as specified in the SCC, 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.

1.29 A Subcontractor is any person or organization to whom a part of the Works

has been subcontracted by the Contractor, as allowed by the Procuring Entity,
but not any assignee of such person.

1.30 Temporary Works are works designed, constructed, installed, and removed
by the Contractor that are needed for construction or installation of the
Permanent Works.

1.31 Work(s) refer 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 Procuring Entity’s Representative; (iii) and the
carrying out of all duties and obligations of the Contractor imposed by this
Contract as described in the SCC.

19. Interpretation
20. 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 Procuring Entity’s Representative will provide instructions
clarifying queries about the Conditions of Contract.

21. If sectional completion is specified in the SCC, references in the Conditions of Contract
to the Works, the Completion Date, and the Intended Completion Date apply to any
Section of the Works (other than references to the Completion Date and Intended
Completion Date for the whole of the Works).

22. The documents forming this Contract shall be interpreted in the following order of
priority:

a) Contract Agreement;

b) Bid Data Sheet;

c) Instructions to Bidders;

d) Addenda to the Bidding Documents;

e) Special Conditions of Contract;

50
 f) General Conditions of Contract;

g) Specifications;

h) Bill of Quantities; and

i) Drawings.

23. Governing Language and Law

24. 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 and other documents pertaining to this Contract
which are exchanged by the parties shall be written in English.

25. This Contract shall be interpreted in accordance with the laws of the Republic of the
Philippines.

26. Communications
Communications between parties that are referred to in the Conditions shall be
effective only when in writing. A notice shall be effective only when it is received by
the concerned party.

27. Possession of Site

28. On the date specified in the SCC, the Procuring Entity shall grant the Contractor
possession of so much of the Site as may be required to enable it to proceed with the
execution of the Works. If the Contractor suffers delay or incurs cost from failure on
the part of the Procuring Entity to give possession in accordance with the terms of this
clause, the Procuring Entity’s Representative shall give the Contractor a Contract
Time Extension and certify such sum as fair to cover the cost incurred, which sum
shall be paid by Procuring Entity.

29. If possession of a portion is not given by the date stated in the SCC Clause 28, the
Procuring Entity 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 108.

30. The Contractor shall bear all costs and charges for special or temporary right-of-way
required by it in connection with access to the Site. The Contractor shall also provide
at his own cost any additional facilities outside the Site required by it for purposes of
the Works.

31. The Contractor shall allow the Procuring Entity’s Representative and any person
authorized by the Procuring Entity’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.

32. The Contractor’s Obligations

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33. 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 Procuring Entity.

34. 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 Procuring Entity’s Representative, and
complete them by the Intended Completion Date.

35. The Contractor shall be responsible for the safety of all activities on the Site.

36. The Contractor shall carry out all instructions of the Procuring Entity’s Representative
that comply with the applicable laws where the Site is located.

37. The Contractor shall employ the key personnel named in the Schedule of Key
Personnel, as referred to in the SCC, to carry out the supervision of the Works. The
Procuring Entity will approve any proposed replacement of key personnel only if their
relevant qualifications and abilities are equal to or better than those of the personnel
listed in the Schedule.

38. If the Procuring Entity’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 has no further connection
with the Work in this Contract.

39. During Contract implementation, the Contractor and his subcontractors shall abide at
all times by all labor laws, including child labor related enactments, and other relevant
rules.

40. The Contractor shall submit to the Procuring Entity for consent the name and
particulars of the person authorized to receive instructions on behalf of the Contractor.

41. The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities, and the Procuring Entity between the dates given in the schedule
of other contractors particularly when they shall require access to the Site. The
Contractor shall also provide facilities and services for them during this period. The
Procuring Entity may modify the schedule of other contractors, and shall notify the
Contractor of any such modification thereto.

42. Should anything of historical or other interest or of significant value be unexpectedly

discovered on the Site, it shall be the property of the Procuring Entity. The Contractor
shall notify the Procuring Entity’s Representative of such discoveries and carry out
the Procuring Entity’s Representative’s instructions in dealing with them.

43. Performance Security

44. Within ten (10) calendar days from receipt of the Notice of Award from the Procuring
Entity but in no case later than the signing of the contract by both parties, the
Contractor shall furnish the performance security in any of the forms prescribed in
ITB Clause 15.

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45. The performance security posted in favor of the Procuring Entity shall be forfeited in
the event it is established that the Contractor is in default in any of its obligations
under the Contract.

46. The performance security shall remain valid until issuance by the Procuring Entity of
the Certificate of Final Acceptance.

47. The performance security may be released by the Procuring Entity and returned to the
Contractor after the issuance of the Certificate of Final Acceptance subject to the
following conditions:

()a There are no pending claims against the Contractor or the surety
company filed by the Procuring Entity;

()b The Contractor has no pending claims for labor and materials filed
against it; and

()c Other terms specified in the SCC.

()d The Contractor shall post an additional performance security following

the amount and form specified in ITB Clause 15 to cover any
cumulative increase of more than ten percent (10%) over the original
value of the contract as a result of amendments to order or 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 approved contract time extensions.

()e In case of a reduction in the contract value or for partially completed

Works under the contract which are usable and accepted by the
Procuring Entity the use of which, in the judgment of the implementing
agency or the Procuring Entity, will not affect the structural integrity of
the entire project, the Procuring Entity shall allow a proportional
reduction in the original performance security, provided that any such
reduction is more than ten percent (10%) and that the aggregate of such
reductions is not more than fifty percent (50%) of the original
performance security.

()f Unless otherwise indicated in the SCC, the Contractor, by entering into
the Contract with the Procuring Entity, acknowledges the right of the
Procuring Entity to institute action pursuant to Act 3688 against any
subcontractor be they an individual, firm, partnership, corporation, or
association supplying the Contractor with labor, materials and/or
equipment for the performance of this Contract.

48. Subcontracting
49. Unless otherwise indicated in the SCC, the Contractor cannot subcontract Works
more than the percentage specified in BDS Clause 3.

50. Subcontracting of any portion of the Works does not relieve the Contractor of any
liability or obligation under this Contract. The Contractor will be responsible for the

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 acts, defaults, and negligence of any subcontractor, its agents, servants or workmen as
fully as if these were the Contractor’s own acts, defaults, or negligence, or those of its
agents, servants or workmen.

51. If subcontracting is allowed. The contractor may identify its subcontractor during
contract implementation stage. Subcontractors disclosed and identified during the
bidding may be changed during the implementation of this Contract. In either case,
subcontractors must submit the documentary requirements under ITB Clause 12 and
comply with the eligibility criteria specified in the BDS. In the event that any
subcontractor is found by any Procuring Entity to be eligible, the subcontracting of
such portion of the Works shall be disallowed.

52. Liquidated Damages

53. The Contractor shall pay liquidated damages to the Procuring Entity for each day that
the Completion Date is later than the Intended Completion Date. The applicable
liquidated damages is at least one-tenth (1/10) of a percent of the cost of the
unperformed portion for every day of delay. The total amount of liquidated damages
shall not exceed ten percent (10%) of the amount of the contract. The Procuring
Entity may deduct liquidated damages from payments due to the Contractor. Payment
of liquidated damages shall not affect the Contractor’s liabilities. Once the cumulative
amount of liquidated damages reaches ten percent (10%) of the amount of this
Contract, the Procuring Entity may rescind or terminate this Contract, without
prejudice to other courses of action and remedies available under the circumstances.

54. If the Intended Completion Date is extended after liquidated damages have been paid,
the Engineer of the Procuring Entity shall correct any overpayment of liquidated
damages by the Contractor by adjusting the next payment certificate.

55. Site Investigation Reports

The Contractor, in preparing the Bid, shall rely on any Site Investigation Reports
referred to in the SCC supplemented by any information obtained by the Contractor.

56. The Procuring Entity, Licenses and Permits

The Procuring Entity shall, if requested by the Contractor, assist him in applying for
permits, licenses or approvals, which are required for the Works.

57. Contractor’s Risk and Warranty Security

58. The Contractor shall assume full responsibility for the Works from the time project
construction commenced up to final acceptance by the Procuring Entity 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, Equipment, installation, and the like to be affected by his
construction work.

59. The defects liability period for infrastructure projects shall be one year from contract
completion up to final acceptance by the Procuring Entity. During this period, the

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 Contractor shall undertake the repair works, at his own expense, of any damage to the
Works on account of the use of materials of inferior quality within ninety (90) days
from the time the HoPE has issued an order to undertake repair. In case of failure or
refusal to comply with this mandate, the Procuring Entity shall undertake such repair
works and shall be entitled to full reimbursement of expenses incurred therein upon
demand.

60. Unless otherwise indicated in the SCC, in case the Contractor fails to comply with the
preceding paragraph, the Procuring Entity shall forfeit its performance security,
subject its property(ies) to attachment or garnishment proceedings, and perpetually
disqualify it from participating in any public bidding. All payables of the GoP in his
favor shall be offset to recover the costs.

61. After final acceptance of the Works by the Procuring Entity, the Contractor shall be
held responsible for “Structural Defects,” i.e., major faults/flaws/deficiencies in one
or more key structural elements of the project which may lead to structural
failure of the completed elements or structure, or “Structural Failures,” i.e.,
where one or more key structural elements in an infrastructure facility fails or
collapses, thereby rendering the facility or part thereof incapable of withstanding the
design loads, and/or endangering the safety of the users or the general public:

()a Contractor – Where Structural Defects/Failures arise due to faults

attributable to improper construction, use of inferior
quality/substandard materials, and any violation of the contract plans
and specifications, the contractor shall be held liable;

()b Consultants – Where Structural Defects/Failures arise due to faulty

and/or inadequate design and specifications as well as construction
supervision, then the consultant who prepared the design or undertook
construction supervision for the project shall be held liable;

()c Procuring Entity’s Representatives/Project Manager/Construction

Managers and Supervisors – The project owner’s representative(s),
project manager, construction manager, and supervisor(s) shall be held
liable in cases where the Structural Defects/Failures are due to his/their
willful intervention in altering the designs and other specifications;
negligence or omission in not approving or acting on proposed changes
to noted defects or deficiencies in the design and/or specifications; and
the use of substandard construction materials in the project;

()d Third Parties - Third Parties shall be held liable in cases where
Structural Defects/Failures are caused by work undertaken by them
such as leaking pipes, diggings or excavations, underground cables and
electrical wires, underground tunnel, mining shaft and the like, in
which case the applicable warranty to such structure should be levied
to third parties for their construction or restoration works.

()e Users - In cases where Structural Defects/Failures are due to

abuse/misuse by the end user of the constructed facility and/or non–
compliance by a user with the technical design limits and/or intended
purpose of the same, then the user concerned shall be held liable.

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 ()f The warranty against Structural Defects/Failures, except those
occasioned on force majeure, shall cover the period specified in the
SCC reckoned from the date of issuance of the Certificate of Final
Acceptance by the Procuring Entity.

()g The Contractor shall be required to put up a warranty security in the

form of cash, bank guarantee, letter of credit, GSIS or surety bond
callable on demand, in accordance with the following schedule:

Amount of Warranty Security

Form of Warranty Not less than the Percentage
(%) of Total Contract Price
()h Cash or letter of
credit issued by Universal or
Commercial bank: provided, however,
that the letter of credit shall be Five Percent (5%)
confirmed or authenticated by a
Universal or Commercial bank, if
issued by a foreign bank
()i Bank guarantee
confirmed by Universal or
Commercial bank: provided, however,
that the letter of credit shall be Ten Percent (10%)
confirmed or authenticated by a
Universal or Commercial bank, if
issued by a foreign bank
()j Surety bond callable
upon demand issued by GSIS or any
Thirty Percent (30%)
surety or insurance company duly
certified by the Insurance Commission

The warranty security shall be stated in Philippine Pesos and shall remain effective for one
year from the date of issuance of the Certificate of Final Acceptance by the Procuring
Entity, and returned only after the lapse of said one year period.

In case of structural defects/failure occurring during the applicable warranty period provided
in GCC Clause .61.1.()f, the Procuring Entity shall undertake the necessary
restoration or reconstruction works and shall be entitled to full reimbursement by the
parties found to be liable for expenses incurred therein upon demand, without
prejudice to the filing of appropriate administrative, civil, and/or criminal charges
against the responsible persons as well as the forfeiture of the warranty security
posted in favor of the Procuring Entity.

1. Liability of the Contractor

Subject to additional provisions, if any, set forth in the SCC, the Contractor’s liability
under this Contract shall be as provided by the laws of the Republic of the
Philippines.

2. Procuring Entity’s Risk

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3. From the Start Date until the Certificate of Final Acceptance has been issued, the
following are risks of the Procuring Entity:

()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:

()i any type of use or occupation of the Site authorized by the

Procuring Entity after the official acceptance of the works; or

()ii negligence, breach of statutory duty, or interference with any

legal right by the Procuring Entity or by any person employed
by or contracted to him 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 Procuring Entity or in the
Procuring Entity’s design, or due to war or radioactive contamination
directly affecting the country where the Works are to be executed.

4. Insurance
5. The Contractor shall, under his name and at his own expense, obtain and maintain, for
the duration of this Contract, the following insurance coverage:

()a Contractor’s All Risk Insurance;

()b Transportation to the project Site of Equipment, Machinery, and

Supplies owned by the Contractor;

()c Personal injury or death of Contractor’s employees; and

()d Comprehensive insurance for third party liability to Contractor’s direct

or indirect act or omission causing damage to third persons.

()e The Contractor shall provide evidence to the Procuring Entity’s

Representative that the insurances required under this Contract have
been effected and shall, within a reasonable time, provide copies of the
insurance policies to the Procuring Entity’s Representative. Such
evidence and such policies shall be provided to the Procuring Entity’s
through the Procuring Entity’s Representative.

()f The Contractor shall notify the insurers of changes in the nature,
extent, or program for the execution of the Works and ensure the
adequacy of the insurances at all times in accordance with the terms of
this Contract and shall produce to the Procuring Entity’s
Representative the insurance policies in force including the receipts for
payment of the current premiums.

The above insurance policies shall be obtained from any reputable insurance
company approved by the Procuring Entity’s Representative.

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If the Contractor fails to obtain and keep in force the insurances referred to herein or any
other insurance which he may be required to obtain under the terms of this Contract,
the Procuring Entity may obtain and keep in force any such insurances and pay such
premiums as may be necessary for the purpose. From time to time, the Procuring
Entity may deduct the amount it shall pay for said premiums including twenty five
percent (25%) therein from any monies due, or which may become due, to the
Contractor, without prejudice to the Procuring Entity exercising its right to impose
other sanctions against the Contractor pursuant to the provisions of this Contract.

In the event the Contractor fails to observe the above safeguards, the Procuring Entity may, at
the Contractor’s expense, take whatever measure is deemed necessary for its
protection and that of the Contractor’s personnel and third parties, and/or order the
interruption of dangerous Works. In addition, the Procuring Entity may refuse to
make the payments under GCC Clause 81 until the Contractor complies with this
Clause.

The Contractor shall immediately replace the insurance policy obtained as required in this
Contract, without need of the Procuring Entity’s demand, with a new policy issued by
a new insurance company acceptable to the Procuring Entity for any of the following
grounds:

()a The issuer of the insurance policy to be replaced has:

()i become bankrupt;

()ii been placed under receivership or under a management

committee;

()iii been sued for suspension of payment; or

()iv been suspended by the Insurance Commission and its license to

engage in business or its authority to issue insurance policies
cancelled; or

()v Where reasonable grounds exist that the insurer may not be
able, fully and promptly, to fulfill its obligation under the
insurance policy.

2. Termination for Default of Contractor

3. The Procuring Entity shall terminate this Contract for default when any of the
following conditions attend its implementation:

()i Due to the Contractor’s fault and while the project is on-going,
it has incurred negative slippage of fifteen percent (15%) or more in
accordance with Presidential Decree 1870, regardless of whether or not
previous warnings and notices have been issued for the Contractor to
improve his performance;

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 ()ii Due to its own fault and after this Contract time has expired,
the Contractor incurs delay in the completion of the Work after this
Contract has expired; or

()iii The Contractor:

()i abandons the contract Works, refuses or fails to comply with a

valid instruction of the Procuring Entity or fails to proceed
expeditiously and without delay despite a written notice by the
Procuring Entity;

()ii 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;

()iii does not execute the Works in accordance with this Contract or
persistently or flagrantly neglects to carry out its obligations
under this Contract;

()iv neglects or refuses to remove materials or to perform a new

Work that has been rejected as defective or unsuitable; or

()v sub-lets any part of this Contract without approval by the

Procuring Entity.

()viAll materials on the Site, Plant, Works, including Equipment

purchased and funded under the Contract shall be deemed to be
the property of the Procuring Entity if this Contract is rescinded
because of the Contractor’s default.

4. Termination for Default of Procuring Entity

The Contractor may terminate this Contract with the Procuring Entity 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:

()a Failure of the Procuring Entity 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.

5. Termination for Other Causes

6. The Procuring Entity may terminate this Contract, in whole or in part, at any time for
its convenience. The HoPE may terminate this Contract for the convenience of the
Procuring Entity if he has determined the existence of conditions that make Project
Implementation economically, financially or technically impractical and/or

59
 unnecessary, such as, but not limited to, fortuitous event(s) or changes in law and
National Government policies.

7. The Procuring Entity or the Contractor may terminate this Contract if the other party
causes a fundamental breach of this Contract.

8. 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 Procuring Entity’s
Representative;

()b The Procuring Entity’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 Procuring Entity 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 Procuring Entity and/or the Contractor.
In the case of the Contractor's insolvency, any Contractor's Equipment
which the Procuring Entity instructs in the notice is to be used until the
completion of the Works;

()d A payment certified by the Procuring Entity’s Representative is not

paid by the Procuring Entity to the Contractor within eighty four (84)
days from the date of the Procuring Entity’s Representative’s
certificate;

()e The Procuring Entity’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 Procuring Entity’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 52; and

()h In case it is determined prima facie by the Procuring Entity 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:

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 ()i corrupt, fraudulent, collusive, coercive, and obstructive
practices as defined in ITB Clause 3.1()a, unless otherwise
specified in the SCC;

()ii drawing up or using forged documents;

()iii using adulterated materials, means or methods, or engaging in

production contrary to rules of science or the trade; and

()iv any other act analogous to the foregoing.

()v The Funding Source or the Procuring Entity, as appropriate,

will seek to impose the maximum civil, administrative and/or
criminal penalties available under the applicable law on
individuals and organizations deemed to be involved with
corrupt, fraudulent, or coercive practices.

()vi When persons from either party to this Contract gives notice of
a fundamental breach to the Procuring Entity’s Representative
in order to terminate the existing contract for a cause other than
those listed under GCC Clause 8, the Procuring Entity’s
Representative shall decide whether the breach is fundamental
or not.

()vii 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.

9. Procedures for Termination of Contracts

10. 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 its own initiative,
the Procuring Entity 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 Procuring Entity, the HoPE shall

terminate this Contract only by a written notice to the Contractor
conveying the termination of this Contract. The notice shall state:

()i 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;

()ii the extent of termination, whether in whole or in part;

()iii an instruction to the Contractor to show cause as to why this

Contract should not be terminated; and

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 ()iv special instructions of the Procuring Entity, if any.

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 HoPE 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 HoPE shall issue an order
terminating the contract;

()d The Procuring Entity may, at anytime before receipt of the Contractor’s
verified position paper described in item (c) above 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;

()e Within a non-extendible period of ten (10) calendar days from receipt
of the verified position paper, the HoPE 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; and

()f The HoPE may create a Contract Termination Review Committee

(CTRC) to assist him in the discharge of this function. All decisions
recommended by the CTRC shall be subject to the approval of the
HoPE.

()g Pursuant to Section 69(f) of RA 9184 and without prejudice to the

imposition of additional administrative sanctions as the internal rules
of the agency may provide and/or further criminal prosecution as
provided by applicable laws, the procuring entity shall impose on
contractors after the termination of the contract the penalty of
suspension for one (1) year for the first offense, suspension for two (2)
years for the second offense from participating in the public bidding
process, for violations committed during the contract implementation
stage, which include but not limited to the following:

()h Failure of the contractor, due solely to his fault or negligence, to

mobilize and start work or performance within the specified period in
the Notice to Proceed (“NTP”);

()i Failure by the contractor to fully and faithfully comply with its
contractual obligations without valid cause, or failure by the contractor
to comply with any written lawful instruction of the procuring entity or
its representative(s) pursuant to the implementation of the contract.
For the procurement of infrastructure projects or consultancy contracts,
lawful instructions include but are not limited to the following:

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 ()i Employment of competent technical personnel, competent
engineers and/or work supervisors;

()ii Provision of warning signs and barricades in accordance with

approved plans and specifications and contract provisions;

()iii Stockpiling in proper places of all materials and removal from

the project site of waste and excess materials, including broken
pavement and excavated debris in accordance with approved
plans and specifications and contract provisions;

()iv Deployment of committed equipment, facilities, support staff

and manpower; and

()v Renewal of the effectivity dates of the performance security

after its expiration during the course of contract
implementation.

()j Assignment and subcontracting of the contract or any part thereof or

substitution of key personnel named in the proposal without prior
written approval by the procuring entity.

()k Poor performance by the contractor or unsatisfactory quality and/or

progress of work arising from his fault or negligence as reflected in the
Constructor's Performance Evaluation System (“CPES”) rating sheet.
In the absence of the CPES rating sheet, the existing performance
monitoring system of the procuring entity shall be applied. Any of the
following acts by the Contractor shall be construed as poor
performance:

()i Negative slippage of 15% and above within the critical path of
the project due entirely to the fault or negligence of the
contractor; and

()ii Quality of materials and workmanship not complying with the

approved specifications arising from the contractor's fault or
negligence.

()l Willful or deliberate abandonment or non-performance of the project

or contract by the contractor resulting to substantial breach thereof
without lawful and/or just cause.

In addition to the penalty of suspension, the performance security posted by

the contractor shall also be forfeited.

11. Force Majeure, Release From Performance

12. 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
though foreseen, was inevitable. It shall not include ordinary unfavorable weather

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 conditions; and any other cause the effects of which could have been avoided with the
exercise of reasonable diligence by the Contractor.

13. If this Contract is discontinued by an outbreak of war or by any other event entirely
outside the control of either the Procuring Entity or the Contractor, the Procuring
Entity’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.

14. 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.

15. 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 38;

()b the cost of his suspension and demobilization;

()c any sum to which the Procuring Entity is entitled.

()d The net balance due shall be paid or repaid within a reasonable time
period from the time of the notice of termination.

16. Resolution of Disputes

17. If any dispute or difference of any kind whatsoever shall arise between the parties in
connection with the implementation of the contract covered by the Act and this IRR,
the parties shall make every effort to resolve amicably such dispute or difference by
mutual consultation.

18. If the Contractor believes that a decision taken by the Procuring Entity’s
Representative was either outside the authority given to the Procuring Entity’s
Representative by this Contract or that the decision was wrongly taken, the decision
shall be referred to the Arbiter indicated in the SCC within fourteen (14) days of the
notification of the Procuring Entity’s Representative’s decision.

19. Any and all disputes arising from the implementation of this Contract covered by the
R.A. 9184 and its IRR shall be submitted to arbitration in the Philippines according to
the provisions of Republic Act No. 876, otherwise known as the “ Arbitration Law”
and Republic Act 9285, otherwise known as the “Alternative Dispute Resolution Act
of 2004”: Provided, however, That, disputes that are within the competence of the
Construction Industry Arbitration Commission to resolve shall be referred thereto.
The process of arbitration shall be incorporated as a provision in this Contract that
will be executed pursuant to the provisions of the Act and its IRR: Provided, further,
That, by mutual agreement, the parties may agree in writing to resort to other
alternative modes of dispute resolution.

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20. Suspension of Loan, Credit, Grant, or Appropriation
In the event that the Funding Source suspends the Loan, Credit, Grant, or
Appropriation to the Procuring Entity, from which part of the payments to the
Contractor are being made:

()a The Procuring Entity is obligated to notify the Contractor of such suspension
within seven (7) days of having received the suspension notice.

()b If the Contractor has not received sums due it for work already done within
forty five (45) days from the time the Contractor’s claim for payment has been
certified by the Procuring Entity’s Representative, the Contractor may
immediately issue a suspension of work notice in accordance with GCC
Clause 102.

21. Procuring Entity’s Representative’s Decisions

22. Except where otherwise specifically stated, the Procuring Entity’s Representative will
decide contractual matters between the Procuring Entity and the Contractor in the role
representing the Procuring Entity.

23. The Procuring Entity’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.

24. Approval of Drawings and Temporary Works by the

Procuring Entity’s Representative
25. All Drawings prepared by the Contractor for the execution of the Temporary Works,
are subject to prior approval by the Procuring Entity’s Representative before its use.

26. The Contractor shall be responsible for design of Temporary Works.

27. The Procuring Entity’s Representative’s approval shall not alter the Contractor’s
responsibility for design of the Temporary Works.

28. The Contractor shall obtain approval of third parties to the design of the Temporary
Works, when required by the Procuring Entity.

29. Acceleration and Delays Ordered by the Procuring

Entity’s Representative
30. When the Procuring Entity wants the Contractor to finish before the Intended
Completion Date, the Procuring Entity’s Representative will obtain priced proposals
for achieving the necessary acceleration from the Contractor. If the Procuring Entity
accepts these proposals, the Intended Completion Date will be adjusted accordingly
and confirmed by both the Procuring Entity and the Contractor.

31. If the Contractor’s Financial Proposals for an acceleration are accepted by the
Procuring Entity, they are incorporated in the Contract Price and treated as a
Variation.

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32. Extension of the Intended Completion Date
33. The Procuring Entity’s Representative shall extend the Intended Completion Date if a
Variation is issued which makes it impossible for the Intended Completion Date to be
achieved by the Contractor without taking steps to accelerate the remaining work,
which would cause the Contractor to incur additional costs. No payment shall be
made for any event which may warrant the extension of the Intended Completion
Date.

34. The Procuring Entity’s Representative shall decide whether and by how much to
extend the Intended Completion Date within twenty one (21) days of the Contractor
asking the Procuring Entity’s Representative for a decision thereto after fully
submitting all supporting information. If the Contractor has failed to give early
warning of a delay or has failed to cooperate in dealing with a delay, the delay by this
failure shall not be considered in assessing the new Intended Completion Date.

35. Right to Vary

36. The Procuring Entity’s Representative with the prior approval of the Procuring Entity
may instruct Variations, up to a maximum cumulative amount of ten percent (10%) of
the original contract cost.

37. 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 HoPE.

38. Contractor's Right to Claim

If the Contractor incurs cost as a result of any of the events under GCC Clause 1, 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.

39. Dayworks
40. Subject to GCC Clause 93 on Variation Order, and if applicable as indicated in the
SCC, the Dayworks rates in the Contractor’s bid shall be used for small additional
amounts of work only when the Procuring Entity’s Representative has given written
instructions in advance for additional work to be paid for in that way.

41. All work to be paid for as Dayworks shall be recorded by the Contractor on forms
approved by the Procuring Entity’s Representative. Each completed form shall be
verified and signed by the Procuring Entity’s Representative within two days of the
work being done.

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42. The Contractor shall be paid for Dayworks subject to obtaining signed Dayworks
forms.

43. Early Warning

44. The Contractor shall warn the Procuring Entity’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 Procuring Entity’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.

45. The Contractor shall cooperate with the Procuring Entity’s Representative in making
and considering proposals for 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 Procuring Entity’s Representative.

46. Program of Work

47. Within the time stated in the SCC, the Contractor shall submit to the Procuring
Entity’s Representative for approval a Program of Work showing the general methods,
arrangements, order, and timing for all the activities in the Works.

48. 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.

49. The Contractor shall submit to the Procuring Entity’s Representative for approval an
updated Program of Work at intervals no longer than the period stated in the SCC. If
the Contractor does not submit an updated Program of Work within this period, the
Procuring Entity’s Representative may withhold the amount stated in the SCC from
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.

50. The Procuring Entity’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 Procuring Entity’s Representative again at any time. A revised
Program of Work shall show the effect of any approved Variations.

51. When the Program of Work is updated, the Contractor shall provide the Procuring
Entity’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.

52. All Variations shall be included in updated Program of Work produced by the
Contractor.

53. Management Conferences

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54. Either the Procuring Entity’s Representative or the Contractor may require the other to
attend a Management Conference. The Management Conference shall review the
plans for remaining work and deal with matters raised in accordance with the early
warning procedure.

55. The Procuring Entity’s Representative shall record the business of Management
Conferences and provide copies of the record to those attending the Conference and to
the Procuring Entity. The responsibility of the parties for actions to be taken shall be
decided by the Procuring Entity’s Representative either at the Management
Conference or after the Management Conference and stated in writing to all who
attended the Conference.

56. Bill of Quantities

57. The Bill of Quantities shall contain items of work for the construction, installation,
testing, and commissioning of work to be done by the Contractor.

58. The Bill of Quantities is used to calculate the Contract Price. The Contractor is paid
for the quantity of the work done at the rate in the Bill of Quantities for each item.

59. If the final quantity of any work done differs from the quantity in the Bill of
Quantities for the particular item and is not more than twenty five percent (25%) of
the original quantity, provided the aggregate changes for all items do not exceed ten
percent (10%) of the Contract price, the Procuring Entity’s Representative shall make
the necessary adjustments to allow for the changes subject to applicable laws, rules,
and regulations.

60. If requested by the Procuring Entity’s Representative, the Contractor shall provide the
Procuring Entity’s Representative with a detailed cost breakdown of any rate in the
Bill of Quantities.

61. Instructions, Inspections and Audits

62. The Procuring Entity’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.

63. If the Procuring Entity’s Representative instructs the Contractor to carry out a test not
specified in the Specification 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 a Compensation Event.

64. The Contractor shall permit the Funding Source named in the SCC to inspect the
Contractor’s accounts and records relating to the performance of the Contractor and to
have them audited by auditors appointed by the Funding Source, if so required by the
Funding Source.

65. Identifying Defects

The Procuring Entity’s Representative shall check the Contractor’s work and notify
the Contractor of any defects that are found. Such checking shall not affect the

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 Contractor’s responsibilities. The Procuring Entity’s Representative may instruct the
Contractor to search uncover defects and test any work that the Procuring Entity’s
Representative considers below standards and defective.

66. Cost of Repairs

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 the Contractor’s cost if the loss or damage arises from the Contractor’s
acts or omissions.

67. Correction of Defects

68. The Procuring Entity’s Representative shall give notice to the Contractor of any
defects before the end of the Defects Liability Period, which is One (1) year from
project completion up to final acceptance by the Procuring Entity’s Representative.

69. Every time notice of a defect is given, the Contractor shall correct the notified defect
within the length of time specified in the Procuring Entity’s Representative’s notice.

70. The Contractor shall correct the defects which he notices himself before the end of the
Defects Liability Period.

71. The Procuring Entity shall certify that all defects have been corrected. If the Procuring
Entity considers that correction of a defect is not essential, he can request the
Contractor to submit a quotation for the corresponding reduction in the Contract
Price. If the Procuring Entity accepts the quotation, the corresponding change in the
SCC is a Variation.

72. Uncorrected Defects

73. The Procuring Entity shall give the Contractor at least fourteen (14) days notice of his
intention to use a third party to correct a Defect. If the Contractor does not correct the
Defect himself within the period, the Procuring Entity may have the Defect corrected
by the third party. The cost of the correction will be deducted from the Contract Price.

74. 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.

75. Advance Payment

76. The Procuring Entity shall, upon a written request of the contractor which shall be
submitted as a contract document, make an advance payment to the contractor in an
amount not exceeding fifteen percent (15%) of the total contract price, to be made in
lump sum or, at the most two, installments according to a schedule specified in the
SCC.

77. The advance payment shall be made only upon the submission to and acceptance by
the Procuring Entity of an irrevocable standby letter of credit of equivalent value from
a commercial bank, a bank guarantee or a surety bond callable upon demand, issued

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 by a surety or insurance company duly licensed by the Insurance Commission and
confirmed by the Procuring Entity.

78. The advance payment shall be repaid by the Contractor by an amount equal to the
percentage of the total contract price used for the advance payment.

79. The contractor may reduce his standby letter of credit or guarantee instrument by the
amounts refunded by the Monthly Certificates in the advance payment.

80. The Procuring Entity will provide an Advance Payment on the Contract Price as
stipulated in the Conditions of Contract, subject to the maximum amount stated in
SCC Clause 76.

81. Progress Payments

82. The Contractor may submit a request for payment for Work accomplished. Such
request for payment shall be verified and certified by the Procuring Entity’s
Representative/Project Engineer. Except as otherwise stipulated in the SCC,
materials and equipment delivered on the site but not completely put in place shall not
be included for payment.

83. The Procuring Entity shall deduct the following from the certified gross amounts to be
paid to the contractor as progress payment:

()a Cumulative value of the work previously certified and paid for.

()b Portion of the advance payment to be recouped for the month.

()c Retention money in accordance with the condition of contract.

()d Amount to cover third party liabilities.

()e Amount to cover uncorrected discovered defects in the works.

()f Payments shall be adjusted by deducting therefrom the amounts for

advance payments and retention. The Procuring Entity shall pay the
Contractor the amounts certified by the Procuring Entity’s
Representative within twenty eight (28) days from the date each
certificate was issued. No payment of interest for delayed payments
and adjustments shall be made by the Procuring Entity.

()g The first progress payment may be paid by the Procuring Entity to the
Contractor provided that at least twenty percent (20%) of the work has
been accomplished as certified by the Procuring Entity’s
Representative.

()h Items of the Works for which a price of “0” (zero) has been entered
will not be paid for by the Procuring Entity and shall be deemed
covered by other rates and prices in the Contract.

84. Payment Certificates

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85. The Contractor shall submit to the Procuring Entity’s Representative monthly
statements of the estimated value of the work executed less the cumulative amount
certified previously.

86. The Procuring Entity’s Representative shall check the Contractor’s monthly statement
and certify the amount to be paid to the Contractor.

87. The value of Work executed shall:

()a be determined by the Procuring Entity’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.

()d The Procuring Entity’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.

88. Retention
89. The Procuring Entity shall retain from each payment due to the Contractor an amount
equal to a percentage thereof using the rate as specified in GCC Sub-Clause 90.

90. Progress payments are subject to retention of ten percent (10%), 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 Procuring Entity,
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 (10%) retention shall again be imposed using the rate specified therefor.

91. The total “retention money” shall be due for release upon final acceptance of the
Works. The Contractor may, however, request the substitution of the retention money
for each progress billing with irrevocable standby letters of credit from a commercial
bank, bank guarantees or surety bonds callable on demand, of amounts equivalent to
the retention money substituted for and acceptable to the Procuring Entity, provided
that the project is on schedule and is satisfactorily undertaken. Otherwise, the ten
(10%) percent retention shall be made. Said irrevocable standby letters of credit,
bank guarantees and/or surety bonds, to be posted in favor of the Government shall be
valid for a duration to be determined by the concerned implementing office/agency or
Procuring Entity and will answer for the purpose for which the ten (10%) percent
retention is intended, i.e., to cover uncorrected discovered defects and third party
liabilities.

92. On completion of the whole Works, the Contractor may substitute retention money
with an “on demand” Bank guarantee in a form acceptable to the Procuring Entity.

93. Variation Orders

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94. Variation Orders may be issued by the Procuring Entity to cover any increase/decrease
in quantities, including the introduction of new work items 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
Procuring Entity after award of the contract, provided that the cumulative amount of
the Variation Order does not exceed ten percent (10%) of the original project cost. The
addition/deletion of Works should be within the general scope of the project as bid
and awarded. The scope of works shall not be reduced so as to accommodate a
positive Variation Order. A Variation Order may either be in the form of a Change
Order or Extra Work Order.

95. A Change Order may be issued by the Procuring Entity to cover any increase/decrease
in quantities of original Work items in the contract.

96. An Extra Work Order may be issued by the Procuring Entity 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 differing materially from
those indicated in the contract, or where there are duly unknown physical conditions
at the site of an unusual nature differing materially from those ordinarily encountered
and generally recognized as inherent in the Work or character provided for in the
contract.

97. Any cumulative Variation Order beyond ten percent (10%) 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 HoPE may authorize a positive Variation Order go beyond ten percent
(10%) but not more than twenty percent (20%) of the original contract price, subject
to the guidelines to be determined by the GPPB: Provided, however, That appropriate
sanctions shall be imposed on the designer, consultant or official responsible for the
original detailed engineering design which failed to consider the Variation Order
beyond ten percent (10%).

98. 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.
The preparation and submission of Variation Orders are as follows:

()a If the Procuring Entity’s representative/Project Engineer believes that a

Change Order or Extra Work Order should be issued, he shall prepare
the proposed Order accompanied with the notices submitted by the
Contractor, the plans therefore, his computations as to the quantities of
the additional works involved per item indicating the specific stations
where such works are needed, the date of his inspections and
investigations thereon, and the log book thereof, and a detailed
estimate of the unit cost of such items of work, together with his

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 justifications for the need of such Change Order or Extra Work Order,
and shall submit the same to the HoPE for approval.

()b The HoPE or his duly authorized representative, upon receipt of the
proposed Change Order or Extra Work Order shall immediately
instruct the appropriate technical staff or office of the Procuring Entity
to conduct an on-the-spot investigation to verify the need for the Work
to be prosecuted and to review the proposed plan, and prices of the
work involved.

()c The technical staff or appropriate office of the Procuring Entity shall
submit a report of their findings and recommendations, together with
the supporting documents, to the Head of Procuring Entity or his duly
authorized representative for consideration.

()d The HoPE or his duly authorized representative, acting upon the
recommendation of the technical staff or appropriate office, shall
approve the Change Order or Extra Work Order after being satisfied
that the same is justified, necessary, and in order.

()e The timeframe for the processing of Variation Orders from the
preparation up to the approval by the Procuring Entity concerned shall
not exceed thirty (30) calendar days.

99. Contract Completion

Once the project reaches an accomplishment of ninety five (95%) of the total contract
amount, the Procuring Entity may create an inspectorate team to make preliminary
inspection and submit a punch-list to the Contractor in preparation for the final
turnover of the project. Said 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. This,
however, shall not preclude the claim of the Procuring Entity for liquidated damages.

100. Suspension of Work

101. The Procuring Entity shall have the authority to suspend the work wholly or partly by
written order for such period as may be deemed necessary, due to force majeure or
any fortuitous events or for failure on the part of the Contractor to correct bad
conditions which are unsafe for workers or for the general public, to carry out valid
orders given by the Procuring Entity or to perform any provisions of the contract, or
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.

102. 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 of written notice from the
Contractor to the district engineer/regional director/consultant or equivalent official,
as the case may be, due to the following:

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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, if not

possible, 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 There is failure on the part of the Procuring Entity to deliver

government-furnished materials and equipment as stipulated in the
contract.

()e 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 procuring entity’s authorized representative
that the documents are complete unless there are justifiable reasons
thereof which shall be communicated in writing to the Contractor.

()f 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 effectivity of the order suspending operation and the order
to resume work shall be allowed the Contractor by adjusting the
contract time accordingly.

103. Payment on Termination

104. If the Contract is terminated because of a fundamental breach of Contract by the
Contractor, the Procuring Entity’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, as indicated in the SCC. Additional Liquidated Damages shall not
apply. If the total amount due to the Procuring Entity exceeds any payment due to the
Contractor, the difference shall be a debt payable to the Procuring Entity.

105. If the Contract is terminated for the Procuring Entity’s convenience or because of a
fundamental breach of Contract by the Procuring Entity, the Procuring Entity’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.

106. The net balance due shall be paid or repaid within twenty eight (28) days from the
notice of termination.

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107. If the Contractor has terminated the Contract under GCC Clauses 4 or 5, the
Procuring Entity shall promptly return the Performance Security to the Contractor.

108. Extension of Contract Time

109. Should the amount of additional work of any kind or other special circumstances of
any kind whatsoever occur such as to fairly entitle the contractor to an extension of
contract time, the Procuring Entity shall determine the amount of such extension;
provided that the Procuring Entity is not bound to take into account any claim for an
extension of time unless the Contractor has, prior to the expiration of the contract time
and within thirty (30) calendar days after such work has been commenced or after the
circumstances leading to such claim have arisen, delivered to the Procuring Entity
notices in order that it could have investigated them at that time. Failure to provide
such notice shall constitute a waiver by the Contractor of any claim. Upon receipt of
full and detailed particulars, the Procuring Entity shall examine the facts and extent of
the delay and shall extend the contract time completing the contract work when, in the
Procuring Entity’s opinion, the findings of facts justify an extension.

110. No extension of contract time shall be granted the Contractor due to (a) ordinary
unfavorable weather conditions and (b) inexcusable failure or negligence of
Contractor to provide the required equipment, supplies or materials.

111. Extension of contract time may be granted only when the affected activities fall within
the critical path of the PERT/CPM network.

112. No extension of contract time shall be granted when the reason given to support the
request for extension was already considered in the determination of the original
contract time during the conduct of detailed engineering and in the preparation of the
contract documents as agreed upon by the parties before contract perfection.

113. Extension of contract time shall be granted for rainy/unworkable days considered
unfavorable for the prosecution of the works at the site, based on the actual conditions
obtained at the site, in excess of the number of rainy/unworkable days pre-determined
by the Procuring Entity in relation to the original contract time during the conduct of
detailed engineering and in the preparation of the contract documents as agreed upon
by the parties before contract perfection, and/or for equivalent period of delay due to
major calamities such as exceptionally destructive typhoons, floods and earthquakes,
and epidemics, and for causes such as non-delivery on time of materials, working
drawings, or written information to be furnished by the Procuring Entity, non-
acquisition of permit to enter private properties or non-execution of deed of sale or
donation within the right-of-way resulting in complete paralyzation of construction
activities, and other meritorious causes as determined by the Procuring Entity’s
Representative and approved by the HoPE. Shortage of construction materials,
general labor strikes, and peace and order problems that disrupt construction
operations through no fault of the Contractor may be considered as additional grounds
for extension of contract time provided they are publicly felt and certified by
appropriate government agencies such as DTI, DOLE, DILG, and DND, among
others. The written consent of bondsmen must be attached to any request of the
Contractor for extension of contract time and submitted to the Procuring Entity for
consideration and the validity of the Performance Security shall be correspondingly
extended.

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114. Price Adjustment
Except for extraordinary circumstances as determined by NEDA and approved by the
GPPB, no price escalation shall be allowed. Nevertheless, in cases where the cost of
the awarded contract is affected by any applicable new laws, ordinances, regulations,
or other acts of the GoP, promulgated after the date of bid opening, a contract price
adjustment shall be made or appropriate relief shall be applied on a no loss-no gain
basis.

115. Completion
The Contractor shall request the Procuring Entity’s Representative to issue a
certificate of Completion of the Works, and the Procuring Entity’s Representative will
do so upon deciding that the work is completed.

116. Taking Over

The Procuring Entity shall take over the Site and the Works within seven (7) days
from the date the Procuring Entity’s Representative issues a certificate of Completion.

117. Operating and Maintenance Manuals

118. If “as built” Drawings and/or operating and maintenance manuals are required, the
Contractor shall supply them by the dates stated in the SCC.

119. If the Contractor does not supply the Drawings and/or manuals by the dates stated in
the SCC, or they do not receive the Procuring Entity’s Representative’s approval, the
Procuring Entity’s Representative shall withhold the amount stated in the SCC from
payments due to the Contractor.

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 Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract
Similar to the Section III. Bid Data Sheet, the clauses in this Section are intended to assist
the Procuring Entity in providing contract-specific information in relation to corresponding
clauses in the GCC.
The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Works procured. In preparing this Section, the following aspects should
be checked:
()a Information that complements provisions of Section IV. General
Conditions of Contract must be incorporated.
()b Amendments and/or supplements to provisions of Section IV.
General Conditions of Contract, as necessitated by the circumstances of the specific
project, must also be incorporated.
However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV. General Conditions of Contract should be incorporated herein.
For foreign-assisted projects, the Special Conditions of Contract to be used is provided in
Section X-Foreign-Assisted Projects.

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 Special Conditions of Contract

GCC Clause

1.17 The Intended Completion Date is [Insert date].

NOTE: The contract duration shall be reckoned from the start date
and not from contract effectivity date.
1.22 The Procuring Entity is:

Department of the Interior and Local Government

Regional Office No. IX
A.T.D. Building, F.S. Pajares Ave.,
San Jose District, Pagadian City

1.23 The Procuring Entity’s Representative is:

Ginagene S. Vano Uy
Chairman, Bids and Awards Committee (BAC)
DILG Regional Office No. IX
San Jose District, Pagadian City
1.24 The Site is located at Barangay Sta. Felomina, Dipolog City,
Zamboanga del Norte and is defined in drawings No. [Insert
Number].

List here locations of other Sites, if any.

1.28 The Start Date is [Insert date].

NOTE: The start date shall be the date of receipt of the Notice to
Proceed.
1.31 The Works consist of [insert a brief summary, including relationship to
other contracts under this Project].

21 If different dates are specified for completion of the Works by section

(“sectional completion”), these dates should be listed here

28 The Procuring Entity shall give possession of all parts of the Site to the
Contractor [insert date].

37 The Contractor shall employ the following Key Personnel:

[List key personnel by name and designation]

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 NOTE: The names of the Key Personnel and their designation shall be
filled out by winning contractor prior to contract signing.
.47.1.()c Specify additional conditions, if any, that must be met prior to the
release of the performance security, otherwise, state “No further
instructions.”

.47.1.()f No further instructions.

49 No further instructions.

55 The site investigation reports are: [list here or state none]

60 No further instructions.

.61.1.()f Select one, delete the other.

In case of permanent structures, such as buildings of types 4 and 5 as

classified under the National Building Code of the Philippines and other
structures made of steel, iron, or concrete which comply with relevant
structural codes (e.g., DPWH Standard Specifications), such as, but not
limited to, steel/concrete bridges, flyovers, aircraft movement areas,
ports, dams, tunnels, filtration and treatment plants, sewerage systems,
power plants, transmission and communication towers, railway system,
and other similar permanent structures: Fifteen (15) years.

In case of semi-permanent structures, such as buildings of types 1, 2, and

3 as classified under the National Building Code of the Philippines,
concrete/asphalt roads, concrete river control, drainage, irrigation lined
canals, river landing, deep wells, rock causeway, pedestrian overpass,
and other similar semi-permanent structures: Five (5) years.

In case of other structures, such as Bailey and wooden bridges, shallow

wells, spring developments, and other similar structures: Two (2) years.
1 State here “No additional provision.” or, if the Contractor is a joint
venture, “All partners to the joint venture shall be jointly and severally
liable to the Procuring Entity.”

18.3(h)(i) No further instructions.

18 The Arbiter is: [Insert name]

[Insert address]
40 Select one, delete the other:

Dayworks are applicable at the rate shown in the Contractor’s original

Bid.

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 Or

No dayworks are applicable to the contract.

47 The Contractor shall submit the Program of Work to the Procuring
Entity’s Representative within [insert number] days of delivery of the
Notice of Award.

49 The period between Program of Work updates is [insert number] days.

The amount to be withheld for late submission of an updated Program of

Work is [insert amount].
64 The Funding Source is the Government of the Philippines.

76 The amount of the advance payment is [insert amount as percentage of

the Contract Price and schedule of payment]

82 Select one and delete the other.

No further instructions. Or

Materials and equipment delivered on the site but not completely put in
place shall be included for payment.
118 The date by which operating and maintenance manuals are required is
[date].

The date by which “as built” drawings are required is [date].

119 The amount to be withheld for failing to produce “as built” drawings
and/or operating and maintenance manuals by the date required is
[amount in local currency].

80
81
 Section VI. Specifications
Notes on Specifications
A set of precise and clear specifications is a prerequisite for Bidders to respond realistically
and competitively to the requirements of the Procuring Entity without qualifying or
conditioning their Bids. In the context of international competitive bidding, the
specifications must be drafted to permit the widest possible competition and, at the same
time, present a clear statement of the required standards of workmanship, materials, and
performance of the goods and services to be procured. Only if this is done will the
objectives of economy, efficiency, and fairness in procurement be realized, responsiveness
of Bids be ensured, and the subsequent task of bid evaluation facilitated. The
specifications should require that all goods and materials to be incorporated in the Works
be new, unused, of the most recent or current models, and incorporate all recent
improvements in design and materials unless provided otherwise in the Contract.

Samples of specifications from previous similar projects are useful in this respect. The use
of metric units is mandatory. Most specifications are normally written specially by the
Procuring Entity or its representative to suit the Works at hand. There is no standard set of
Specifications for universal application in all sectors in all regions, but there are
established principles and practices, which are reflected in these PBDs.

There are considerable advantages in standardizing General Specifications for repetitive

Works in recognized public sectors, such as highways, ports, railways, urban housing,
irrigation, and water supply, in the same country or region where similar conditions
prevail. The General Specifications should cover all classes of workmanship, materials,
and equipment commonly involved in construction, although not necessarily to be used in
a particular Works Contract. Deletions or addenda should then adapt the General
Specifications to the particular Works.

Care must be taken in drafting specifications to ensure that they are not restrictive. In the
specification of standards for goods, materials, and workmanship, recognized international
standards should be used as much as possible. Where other particular standards are used,
whether national standards or other standards, the specifications should state that goods,
materials, and workmanship that meet other authoritative standards, and which ensure
substantially equal or higher quality than the standards mentioned, will also be acceptable.
The following clause may be inserted in the SCC.

Sample Clause: Equivalency of Standards and Codes

Wherever reference is made in the Contract to specific standards and codes to be met by
the goods and materials to be furnished, and work performed or tested, the provisions of
the latest current edition or revision of the relevant standards and codes in effect shall
apply, unless otherwise expressly stated in the Contract. Where such standards and codes
are national, or relate to a particular country or region, other authoritative standards that
ensure a substantially equal or higher quality than the standards and codes specified will be
accepted subject to the Procuring Entity’s Representative’s prior review and written
consent. Differences between the standards specified and the proposed alternative
standards shall be fully described in writing by the Contractor and submitted to the

82
Procuring Entity’s Representative at least twenty eight (28) days prior to the date when the
Contractor desires the Procuring Entity’s Representative’s consent. In the event the
Procuring Entity’s Representative determines that such proposed deviations do not ensure
substantially equal or higher quality, the Contractor shall comply with the standards
specified in the documents.

These notes are intended only as information for the PRO Procuring Entity or the person
drafting the Bidding Documents. They should not be included in the final Bidding
Documents.

83
 Section VII. Drawings

Insert here a list of Drawings. The actual Drawings, including site plans, should be
attached to this section or annexed in a separate folder.
 Section VIII. Bill of Quantities

Notes on the Bill of Quantities

Objectives
The objectives of the Bill of Quantities are:
(a) to provide sufficient information on the quantities of Works to be performed to
enable Bids to be prepared efficiently and accurately; and
(b) when a Contract has been entered into, to provide a priced Bill of Quantities for use
in the periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of Quantities in
sufficient detail to distinguish between the different classes of Works, or between Works of
the same nature carried out in different locations or in other circumstances which may give
rise to different considerations of cost. Consistent with these requirements, the layout and
content of the Bill of Quantities should be as simple and brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work,
outside the items included in the Bill of Quantities, is high. To facilitate checking by the
Entity of the realism of rates quoted by the Bidders, the Daywork Schedule should
normally comprise the following:
(a) A list of the various classes of labor, materials, and Constructional Plant for which
basic daywork rates or prices are to be inserted by the Bidder, together with a
statement of the conditions under which the Contractor will be paid for work
executed on a daywork basis.

(b) Nominal quantities for each item of Daywork, to be priced by each Bidder at
Daywork rates as Bid. The rate to be entered by the Bidder against each basic
Daywork item should include the Contractor’s profit, overheads, supervision, and
other charges.

Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by
including a provisional sum in the Summary Bill of Quantities. Similarly, a contingency
allowance for possible price increases should be provided as a provisional sum in the
Summary Bill of Quantities. The inclusion of such provisional sums often facilitates
budgetary approval by avoiding the need to request periodic supplementary approvals as
the future need arises. Where such provisional sums or contingency allowances are used,
the SCC should state the manner in which they will be used, and under whose authority
(usually the Procuring Entity’s Representative’s).
The estimated cost of specialized work to be carried out, or of special goods to be supplied,

85
by other contractors (refer to GCC Clause 48) should be indicated in the relevant part of
the Bill of Quantities as a particular provisional sum with an appropriate brief description.
A separate procurement procedure is normally carried out by the Procuring Entity to select
such specialized contractors. To provide an element of competition among the Bidders in
respect of any facilities, amenities, attendance, etc., to be provided by the successful
Bidder as prime Contractor for the use and convenience of the specialist contractors, each
related provisional sum should be followed by an item in the Bill of Quantities inviting the
Bidder to quote a sum for such amenities, facilities, attendance, etc.

Signature Box

A signature box shall be added at the bottom of each page of the Bill of Quantities where
the authorized representative of the Bidder shall affix his signature. Failure of the
authorized representative to sign each and every page of the Bill of Quantities shall be a
cause for rejection of his bid.

These Notes for Preparing a Bill of Quantities are intended only as information for the
Procuring Entity or the person drafting the Bidding Documents. They should not be
included in the final documents.

86
 Section IX. Bidding Forms

TABLE OF CONTENTS

Bid Form 87
Form of Contract Agreement 89
Omnibus Sworn Statement 91
Bid Securing Declaration………………………………………………………91

87
 Bid Form

Date: ________________________
IB7 No: _______________________

To: [name and address of PROCURING ENTITY]

Address: [insert address]

We, the undersigned, declare that:

(a) We have examined and have no reservation to the Bidding Documents, including
Addenda, for the Contract [insert name of contract];

(b) We offer to execute the Works for this Contract in accordance with the Bid and Bid Data
Sheet, General and Special Conditions of Contract accompanying this Bid;

The total price of our Bid, excluding any discounts offered below is: [insert
information];

The discounts offered and the methodology for their application are: [insert
information];

(c) Our Bid shall be valid for a period of [insert number] days from the date fixed for the
Bid submission deadline in accordance with the Bidding Documents, and it shall remain
binding upon us and may be accepted at any time before the expiration of that period;

(d) If our Bid is accepted, we commit to obtain a Performance Security in the amount of
[insert percentage amount] percent of the Contract Price for the due performance of the
Contract;

(e) Our firm, including any subcontractors or suppliers for any part of the Contract, have
nationalities from the following eligible countries: [insert information];

(f) We are not participating, as Bidders, in more than one Bid in this bidding process, other
than alternative offers in accordance with the Bidding Documents;

(g) Our firm, its affiliates or subsidiaries, including any subcontractors or suppliers for any
part of the Contract, has not been declared ineligible by the Funding Source;

(h) We understand that this Bid, together with your written acceptance thereof included in
your notification of award, shall constitute a binding contract between us, until a formal
Contract is prepared and executed; and

7 If ADB, JICA and WB funded projects, use IFB.

88
(i) We understand that you are not bound to accept the Lowest Calculated Bid or any other
Bid that you may receive.

(j) We likewise certify/confirm that the undersigned, is the duly authorized

representative of the bidder, and granted full power and authority to do, execute
and perform any and all acts necessary to participate, submit the bid, and to sign
and execute the ensuing contract for the [Name of Project] of the [Name of the
Procuring Entity].

(k) We acknowledge that failure to sign each and every page of this Bid Form,
including the Bill of Quantities, shall be a ground for the rejection of our bid.

Name:

In the capacity of:

Signed:

Duly authorized to sign the Bid for and on behalf of:

Date: ___________

89
 Form of Contract Agreement

THIS AGREEMENT, made this [insert date] day of [insert month], [insert year]
between [name and address of PROCURING ENTITY] (hereinafter called the“Entity”) and
[name and address of Contractor] (hereinafter called the “Contractor”).

WHEREAS, the Entity is desirous that the Contractor execute [name and
identification number of contract] (hereinafter called “the Works”) and the Entity has
accepted the Bid for [insert the amount in specified currency in numbers and words] by the
Contractor for the execution and completion of such Works and the remedying of any defects
therein.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement, words and

expressions shall have the same meanings as are respectively assigned to them
in the Conditions of Contract hereinafter referred to.

2. The following documents shall be attached, deemed to form, and be read and
construed as integral part of this Agreement, to wit:

(a) General and Special Conditions of Contract;

(b) Drawings/Plans;
(c) Specifications;
(d) Invitation to Bid;
(e) Instructions to Bidders;
(f) Bid Data Sheet;
(g) Addenda and/or Supplemental/Bid Bulletins, if any;
(h) Bid form, including all the documents/statements contained in the
Bidder’s bidding envelopes, as annexes, and all other documents
submitted (e.g., Bidder’s response to request for clarifications on the
bid), including corrections to the bid, if any, resulting from the
Procuring Entity’s bid evaluation;
(i) Eligibility requirements, documents and/or statements;
(j) Performance Security;
(k) Notice of Award of Contract and the Bidder’s conforme thereto;
(l) Other contract documents that may be required by existing laws and/or
the Entity.

3. In consideration of the payments to be made by the Entity to the Contractor as

hereinafter mentioned, the Contractor hereby covenants with the Entity to
execute and complete the Works and remedy any defects therein in conformity
with the provisions of this Contract in all respects.

90
 4. The Entity hereby covenants to pay the Contractor in consideration of the
execution and completion of the Works and the remedying of defects wherein,
the Contract Price or such other sum as may become payable under the
provisions of this Contract at the times and in the manner prescribed by this
Contract.

IN WITNESS whereof the parties thereto have caused this Agreement to be executed
the day and year first before written.

Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (for the Contractor).

Binding Signature of Procuring Entity

________________________________________________

Binding Signature of Contractor

_____________________________________________

[Addendum showing the corrections, if any, made during the Bid evaluation should be
attached with this agreement]

91
 Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

A F F I D AV I T

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at [Address
of Affiant], after having been duly sworn in accordance with law, do hereby depose and state
that:

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor or authorized representative of

[Name of Bidder] with office address at [address of Bidder];

If a partnership, corporation, cooperative, or joint venture: I am the duly authorized

and designated representative of [Name of Bidder] with office address at [address of
Bidder];

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor or authorized representative

of [Name of Bidder], I have full power and authority to do, execute and perform any
and all acts necessary to participate, submit the bid, and to sign and execute the
ensuing contract for [Name of the Project] of the [Name of the Procuring Entity]
[insert “as shown in the attached duly notarized Special Power of Attorney” for the
authorized representative];

If a partnership, corporation, cooperative, or joint venture: I am granted full power

and authority to do, execute and perform any and all acts necessary to participate,
submit the bid, and to sign and execute the ensuing contract for [Name of the Project]
of the [Name of the Procuring Entity], accompanied by the duly notarized Special
Power of Attorney, Board/Partnership Resolution, or Secretary’s Certificate,
whichever is applicable;

3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government of

the Philippines or any of its agencies, offices, corporations, or Local Government
Units, foreign government/foreign or international financing institution whose
blacklisting rules have been recognized by the Government Procurement Policy
Board;

4. Each of the documents submitted in satisfaction of the bidding requirements is an

authentic copy of the original, complete, and all statements and information provided
therein are true and correct;

92
 5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;
6. Select one, delete the rest:
If a sole proprietorship: The owner or sole proprietor is not related to the Head of the
Procuring Entity, members of the Bids and Awards Committee (BAC), the Technical
Working Group, and the BAC Secretariat, the head of the Project Management Office
or the end-user unit, and the project consultants by consanguinity or affinity up to the
third civil degree;
If a partnership or cooperative: None of the officers and members of [Name of
Bidder] is related to the Head of the Procuring Entity, members of the Bids and
Awards Committee (BAC), the Technical Working Group, and the BAC Secretariat,
the head of the Project Management Office or the end-user unit, and the project
consultants by consanguinity or affinity up to the third civil degree;
If a corporation or joint venture: None of the officers, directors, and controlling
stockholders of [Name of Bidder] is related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group,
and the BAC Secretariat, the head of the Project Management Office or the end-user
unit, and the project consultants by consanguinity or affinity up to the third civil
degree;
7. [Name of Bidder] complies with existing labor laws and standards; and

8. [Name of Bidder] is aware of and has undertaken the following responsibilities as a

Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the implementation of
the Contract;
c) Made an estimate of the facilities available and needed for the contract to be bid,
if any; and
d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the
Project].
9. [Name of Bidder] did not give or pay directly or indirectly, any commission, amount,
fee, or any form of consideration, pecuniary or otherwise, to any person or official,
personnel or representative of the government in relation to any procurement project
or activity.
IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.
_____________________________________
Bidder’s Representative/Authorized Signatory

93
 SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place
of execution], Philippines. Affiant/s is/are personally known to me and was/were identified by
me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice
(A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with no.
________ and his/her Community Tax Certificate No. _______ issued on ____ at ______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission _______________
Notary Public for _______ until __________
Roll of Attorneys No. __________________
PTR No. ______ [date issued], [place issued]
IBP No. ______ [date issued], [place issued]

Doc. No. _____

Page No. _____
Book No. _____
Series of _____

* This form will not apply for WB funded projects.

94
Bid-Securing Declaration

(REPUBLIC OF THE PHILIPPINES)

CITY OF _______________________ ) S.S.
x-------------------------------------------------------x

Invitation to Bid [Insert reference number]

To: [Insert name and address of the Procuring Entity]

I/We, the undersigned, declare that:

1. I/We understand that, according to your conditions, bids must be supported by a Bid
Security, which may be in the form of a Bid-Securing Declaration.

2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any contract
with any procuring entity for a period of two (2) years upon receipt of your Blacklisting
Order; and, (b) I/we will pay the applicable fine provided under Section 6 of the
Guidelines on the Use of Bid Securing Declaration, within fifteen (15) days from receipt
of written demand by the procuring entity for the commission of acts resulting to the
enforcement of the bid securing declaration under Sections 23.1(b), 34.2, 40.1 and 69.1,
except 69.1 (f), of the IRR of RA 9184; without prejudice to other legal action the
government may undertake.

3. I/We understand that this Bid-Securing Declaration shall cease to be valid on the
following circumstances:

a. Upon expiration of the bid validity period, or any extension thereof pursuant to your
request;
b. I am/we are declared ineligible or post-disqualified upon receipt of your notice to
such effect, and (i) I/we failed to timely file a request for reconsideration or (ii) I/we
filed a waiver to avail of said right;
c. I am/we are declared as the bidder with the Lowest Calculated Responsive Bid, and
I/we have furnished the performance security and signed the Contract.

95
IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of [month]
[year] at [place of execution].

[Insert NAME OF BIDDER’S AUTHORIZED REPRESENTATIVE]

[Insert signatory’s legal capacity]

Affiant

SUBSCRIBED AND SWORN to before me this __ day of [month] [year] at [place of

execution], Philippines. Affiant/s is/are personally known to me and was/were identified by
me through competent evidence of identity as defined in the 2004 Rules on Notarial Practice
(A.M. No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government
identification card used], with his/her photograph and signature appearing thereon, with no.
______.

Witness my hand and seal this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Serial No. of Commission ___________

Notary Public for ______ until _______
Roll of Attorneys No. _____
PTR No. __, [date issued], [place issued]
IBP No. __, [date issued], [place issued]
Doc. No. ___
Page No. ___
Book No. ___
Series of ____.

96
 Section X. Foreign-Assisted Projects

Notes on Foreign-Assisted Projects

This Section is intended to assist the Procuring Entity in providing the specific information
for foreign-assisted projects of the Asian Development Bank (ADB), the Japan
International Cooperation Agency (JICA), and the World Bank.

(a) If the Funding Source is ADB, the Procuring Entity should use the ADB Bid Data
Sheet and ADB Special Conditions of Contract.

(b) If the Funding Source is JICA, the Procuring Entity should use Section III. Bid Data
Sheet and Section V. Special Conditions of Contract, both of the GoP.

(c) If the Funding Source is World Bank, the Procuring Entity should use the World Bank
Bid Data Sheet and the World Bank Special Conditions of Contract.

The Procuring Entity shall use these PBDs with minimum changes as necessary to address
project-specific conditions. Any such changes shall be introduced only through the Bid
Data Sheet or through the Special Conditions of Contract, and not by introducing changes
in the standard wording of the Instructions to Bidders and the General Conditions of
Contract.

The Procuring Entity shall allow the Bidders sufficient time to study the Bidding
Documents, prepare and complete responsive bids, and submit their bids. A period of at
least twenty (20) days for bid preparation shall be required.

Notes on the Invitation to Bid

The Invitation to Bid provides information that enables potential Bidders to decide whether
to participate in the procurement at hand. The Invitation to Bid shall be:

(a) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Sections 21.2.1(c) of the IRR of R.A. 91848;

(b) Posted continuously in the Philippine Government Electronic Procurement System

(PhilGEPS) website, the website of the Procuring Entity concerned, if available,
and the website prescribed by the foreign government/foreign or international
financing institution, if applicable, from the time the Invitation to Bid is advertised
until the deadline for the submission and receipt of bids; and

(c) Posted at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned from the time the Invitation to Bid is advertised until
the deadline for the submission and receipt of bids, as certified by the head of the

8 Two years after the effectivity of the 2016 Revised IRR of RA 9184 on ___________, advertisement in a
newspaper of general circulation shall no longer be required. However, a Procuring Entity that cannot post its
opportunities in the PhilGEPS for justifiable reasons shall continue to publish its advertisements in a
newspaper of general nationwide circulation.
97
 Bids and Awards Committee (BAC) Secretariat of the Procuring Entity concerned.

Apart from the essential items listed in the Bidding Documents, the Invitation to Bid
should also indicate the following:

(a) The date of availability of the Bidding Documents, which shall be from the time
the Invitation to Bid is first advertised/posted until the deadline for the
submission and receipt of bids.

(b) The place where the Bidding Documents may be acquired or the website where
it may be downloaded.

(c) The deadline for the submission and receipt of bids; and

(d) Any important bid evaluation criteria.

The Invitation to Bid should be incorporated into the Bidding Documents. The information
contained in the Invitation to Bid must conform to the Bidding Documents and in
particular to the relevant information in the BDS.

Notes on the Bid Data Sheet

This Section is intended to assist the Procuring Entity in providing the specific information
in relation to the corresponding clauses in the ITB, and has to be prepared for each specific
procurement.

The Procuring Entity should specify in the BDS information and requirements specific to
the circumstances of the Procuring Entity, the processing of the procurement, the
applicable rules regarding Bid price and currency, and the Bid evaluation criteria that will
apply to the Bids. In preparing this Section, the following aspects should be checked:

(a) Information that specifies and complements provisions of Section II. Instructions to
Bidders must be incorporated.

(b) Amendments and/or supplements, if any, to provisions of Section II. Instructions to

Bidders as necessitated by the circumstances of the specific procurement, must also
be incorporated.

Notes on the Special Conditions of the Contract

Similar to the Section III. Bid Data Sheet, the clauses in this Section are intended to assist
the Procuring Entity in providing contract-specific information in relation to corresponding
clauses in the GCC.

The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Works procured. In preparing this Section, the following aspects should
be checked:

()a Information that complements provisions of Section IV. General

98
 Conditions of Contract must be incorporated.

()b Amendments and/or supplements to provisions of Section IV.

General Conditions of Contract, as necessitated by the circumstances of the specific
project, must also be incorporated.

However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV. General Conditions of Contract should be incorporated herein.

99
 TABLE OF CONTENTS

INVITATION TO BID FOR FOREIGN-ASSISTED PROJECTS............ERROR! BOOKMARK NOT

DEFINED.
ASIAN DEVELOPMENT BANK BID DATA SHEET.......................ERROR! BOOKMARK NOT
DEFINED.
ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS OF CONTRACT........................ERROR!
BOOKMARK NOT DEFINED.
WORLD BANK BID DATA SHEET......................... ERROR! BOOKMARK NOT DEFINED.
WORLD BANK SPECIAL CONDITIONS OF CONTRACT................ERROR! BOOKMARK NOT
DEFINED.

100
 Invitation to Bid for Foreign-Assisted Projects

[Letterhead of the Procuring Entity]

INVITATION TO BID FOR [Insert name of Project]

1. The Government of the Philippines (GoP) [has received/has applied for/intends to

apply for] a [Loan//Grant] from the [state the foreign government/foreign or
international financing institution (e.g., Asian Development Bank, Japan International
Cooperation Agency, or World Bank)] toward the cost of [insert name of project], and it
intends to apply part of the proceeds of this [loan//grant] to payments under the
contract for [insert name/no. of contract].

2. The [insert name of Procuring Entity] now invites bids for [insert brief description of
Works to be procured].9 Completion of the Works is required [insert the required
completion date or expected contract duration]. Bidders should have completed, within
________ (__), a contract similar to the Project. The description of an eligible bidder is
contained in the Bidding Documents, particularly, in Sub-section 5, Section II.
Instructions to Bidders and the corresponding {[insert Asian Development Bank or
World Bank, as appropriate]} Bid Data Sheet.

3. Bidding will be conducted in accordance with relevant procedures for open competitive
bidding as specified in the IRR of RA 9184 (R.A. 9184), with some amendments, as
stated in these bidding documents and is open to all bidders from eligible source
countries as defined in the applicable procurement guidelines of the [state the foreign
government/foreign international financing institution concerned )]. The contract shall
be awarded to the Lowest Calculated Responsive Bidder (LCRB) who was determined
as such during post-qualification. The approved budget for the contract (ABC) is
[insert here the amount of the ABC].

[If ADB-funded project, ABC may be published, but it shall not be stated or implied that
bid prices may not exceed ABC.]

4. Interested bidders may obtain further information from [insert name of the Procuring
Entity] and inspect the Bidding Documents at the address given below from [insert
office hours].

5. A complete set of Bidding Documents may be acquired by the interested bidders on

[insert date of availability of Bidding Documents] from the address below {[insert if
necessary and upon payment of the applicable fee for the bidding documents, pursuant
to the latest Guidelines issued by the GPPB, in the amount of [ insert amount in
pesos]10.}

9 A brief description of the scope of Works should be provided, including quantities, location of project, and
other information necessary to enable potential bidders to decide whether or not to respond to the invitation.
10 For ADB-funded projects, the bidding documents fee should only cover reproduction and mailing/courier
costs, and may not be in accordance with the GPPB Guidelines. As such, the text “, pursuant to the latest
Guidelines issued by the GPPB,” shall be deleted.
101
 It may also be downloaded free of charge from the website of the Philippine
Government Electronic Procurement System (PhilGEPS) {[insert and the website of the
Procuring Entity, as applicable, ]} provided that bidders shall pay the applicable fee for
the Bidding Documents not later than the submission of their bids.

6. The [insert name of the Procuring Entity] will hold a Pre-Bid Conference11 on [insert
time and date] at [insert address for Pre-Bid Conference, if applicable], which shall be
open to prospective bidders.

7. Bids must be duly received by the BAC Secretariat at the address below on or before
[insert date and time]. All bids must be accompanied by a bid security in the amount of
__________ in [insert the acceptable form].

Bids will be opened in the presence of the bidders’ representatives who choose to attend
at the address below. Late bids shall not be accepted.

8. [Insert such other necessary information deemed relevant by the Procuring Entity]

9. The [insert name of the Procuring Entity] reserves the right to accept or reject any bid,
to annul the bidding process, and to reject all bids at any time prior to contract award,
in accordance with Section 41 of RA 9184 and its IRR, without thereby incurring any
liability to the affected bidder or bidders.

10. For further information, please refer to:

[Insert name of officer]

[Insert name of office]
[Insert postal address] and/or [Insert street address]
[Insert telephone number, indicate city code]
[Insert contact’s email address]
[Insert facsimile number]
[Insert website address, if applicable]

_________________________________

[Insert Name and Signature of the BAC

Chairperson or the Authorized
Representative of the BAC Chairperson]

11 May be deleted in case the ABC is less than One Million Pesos (P1,000,000) where the Procuring Entity may
not hold a pre-bid conference.
102
 Asian Development Bank Bid Data Sheet

ITB Clause

1.1 The Procuring Entity is [insert name of Procuring Entity].

The name of the Contract is [insert the name of the contract].

The identification number of the Contract is [insert identification number of

the contract].

2 The Funding Source is the Asian Development Bank (ADB) through

[indicate the Loan/Grant/Financing No.] in the amount of [insert amount of
funds].

The name of the Project is [Insert the name of the project]

Payments by the Foreign Funding Source will be made only at the request of
the Procuring Entity and upon approval by the Funding Source in
accordance with the terms and conditions of the Loan {[or Grant, or
Financing]} Agreement No. _________ (hereinafter called the "Financing
Agreement") and

will be subject in all respect to the terms and conditions of that Financing
Agreement and the applicable law. No party other than the Procuring Entity
shall derive any rights from the Financing Agreement or have any claim to
the funds.

3.1

ADB’s Anticorruption Policy requires Borrowers (including beneficiaries of

ADB-financed activity), as well as Bidders, Suppliers, and
Contractors under ADB-financed contracts, observe the highest
standard of ethics during the procurement and execution of such
contracts. In pursuance of this policy, ADB

(a) defines, for the purposes of this provision, the terms set forth below
as follows:

(i) “corrupt practice” means the offering, giving, receiving, or

soliciting, directly or indirectly, anything of value to
influence improperly the actions of another party;

(ii) “fraudulent practice” means any act or omission, including a

misrepresentation, that knowingly or recklessly misleads, or
attempts to mislead, a party to obtain a financial or other
benefit or to avoid an obligation;

(iii) “coercive practice” means impairing or harming, or

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 threatening to impair or harm, directly or indirectly, any party
or the property of the party to influence improperly the
actions of a party;

(iv) “collusive practice” means an arrangement between two or

more parties designed to achieve an improper purpose,
including influencing improperly the actions of another party;

(v) “obstructive practice” means (a) deliberately destroying,

falsifying, altering, or concealing of evidence material to an
ADB investigation; (b) making false statements to
investigators in order to materially impede an ADB
investigation; (c) failing to comply with requests to provide
information, documents or records in connection with an
Office of Anticorruption and Integrity (OAI) investigation;
(d) threatening, harassing, or intimidating any party to
prevent it from disclosing its knowledge of matters relevant
to the investigation or from pursuing the investigation; or (e)
materially impeding ADBʼs contractual rights of audit or
access to information; and

(vi) “integrity violation" is any act which violates ADB’s

Anticorruption Policy, including (i) to (v) above and the
following: abuse, conflict of interest, violations of ADB
sanctions, retaliation against whistleblowers or witnesses, and
other violations of ADB's Anticorruption Policy, including
failure to adhere to the highest ethical standard.

(b) will reject a proposal for award if it determines that the Bidder
recommended for award has, directly or through an agent, engaged
in corrupt, fraudulent, collusive, coercive, or obstructive practices or
other integrity violations in competing for the Contract;

(c) will cancel the portion of the financing allocated to a contract if it

determines at any time that representatives of the Borrower or of a
beneficiary of ADB financing engaged in corrupt, fraudulent,
collusive, coercive, or obstructive practices or other integrity
violations during the procurement or the execution of that contract,
without the Borrower having taken timely and appropriate action
satisfactory to ADB to remedy the situation;

(d) will impose remedial actions on a firm or an individual, at any time,

in accordance with ADB’s Anticorruption Policy and Integrity
Principles and Guidelines (both as amended from time to time),
including declaring ineligible, either indefinitely or for a stated
period of time, to participate in ADB-financed, administered, or
supported activities or to benefit from an ADB-financed,
administered, or supported contract, financially or otherwise, if it at
any time determines that the firm or individual has, directly or
through an agent, engaged in corrupt, fraudulent, collusive, coercive,

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 or obstructive practices or other integrity violations; and

(e) will have the right to require that a provision be included in bidding
documents and in contracts financed by ADB, requiring Bidders,
suppliers, and contractors to permit ADB or its representative to
inspect their accounts and records and other documents relating to
the bid submission and contract performance and to have them
audited by auditors appointed by ADB.

5.1 Eligible Bidders are as described in ADB Procurement Guidelines as stated

in the Financing Agreement and as described on ADB’s web page
www.adb.org

An Eligible Bidder shall be deemed to have the nationality of a country if it

is a citizen or constituted or incorporated, and operates in conformity with
the provisions of the laws of that country.

5.2 Eligible Bidders are as described in ADB Procurement Guidelines as stated

in the Financing Agreement and as described on ADB’s web page
www.adb.org.

5.4 Instruction is the same as the GoP Bid Data Sheet

8.1 Instruction is the same as the GoP Bid Data Sheet

8.2 Instruction is the same as the GoP Bid Data Sheet

9.1 Instruction is the same as the GoP Bid Data Sheet

10.1 Instruction is the same as the GoP Bid Data Sheet

10.4 Instruction is the same as the GoP Bid Data Sheet

12.1 The first envelope shall contain the following eligibility and technical
documents:

a. Eligibility Requirements

i. Registration Certification of the Company;

ii. List of relevant contracts that comply to the experience requirement
as specified in ITB Clause 5.4;
iii. Audited financial statement for the past two years;
iv. In case of Joint Venture, the JV Agreement, if existing, or a signed
statement from the partner companies that they will enter into a JV
in case of award of contract;
b. Technical Documents
(To Be Revisited)

v. Project Requirements, which shall include the following:

(v.1) List of contractor’s personnel (e.g., Project Manager,

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 Project Engineers, Materials Engineers, and Foremen), to be
assigned to the contract to be bid, with their complete
qualification and experience data; and

(v.2) List of contractor’s major equipment units, which are

owned, leased, and/or under purchase agreements, supported by
proof of ownership, certification of availability of equipment
from the equipment lessor/vendor for the duration of the
project;

vi. Bid Security or a Bid Securing Declaration as required in the ITB

18;

vii. Sworn statement in accordance with Section 25.3 of the IRR of RA

9184 and using the form prescribed in Section VIII. Bidding Forms;
and
viii. Credit line from a Universal or Commercial Bank extended in favor
of the bidder if awarded the contract for the project.

Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder.

12.1(a)(iii) Foreign bidders may submit their valid Philippine Contractors Accreditation
Board (PCAB) license or special PCAB License in case of joint ventures,
and registration for the type and cost of the contract for this Project as a pre-
condition for award as provided in the Financing Agreement.

13.1 Instruction is the same as the GoP Bid Data Sheet

13.1(b) This shall include the following document:

1) Priced Bill of Quantities

(To Be Revisited- the GOP’s requirements of detailed estimates and

cashflow/payment schedule)

13.2(a) and ABC does not apply as ceiling for bid prices
(b)

14.2 Instruction is the same as the GoP Bid Data Sheet

15.4 Instruction is the same as the GoP Bid Data Sheet

16.1 Instruction is the same as the GoP Bid Data Sheet

16.3 Instruction is the same as the GoP Bid Data Sheet

17.1 Instruction is the same as the GoP Bid Data Sheet

18.1 Instruction is the same as the GoP Bid Data Sheet

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18.2 Instruction is the same as the GoP Bid Data Sheet

20.3 Instruction is the same as the GoP Bid Data Sheet

21 Instruction is the same as the GoP Bid Data Sheet

24.1 The BAC shall open the bids in public on [insert date and time of bid
opening], at [insert place of bid opening].

The time for the bid opening shall be the same as the deadline for receipt of
bids or promptly thereafter. Rescheduling the date of the opening of bids
shall not be considered except for force majeure, such as natural calamities.
In re-scheduling the opening of bids, the BAC shall issue a Notice of
Postponement to be posted at the PhilGEPS’ and the Procuring Entity’s
websites.

24.2 During bid opening, if the first envelope lacks any of the documents listed in
the ADB BDS 12.1, the bid shall be declared non-responsive but the
documents shall be kept by the Procuring Entity. Only the unopened second
envelope shall be returned to the Bidder.

24.3 The BAC shall immediately open the financial proposals in the second
envelope of the responsive bids. The bid price shall be read and recorded.

27.4 ABC does not apply as ceiling for bid prices.

28.2 Instruction is the same as the GoP Bid Data Sheet

31.4(f) Instruction is the same as the GoP Bid Data Sheet

(To Be Revisited together with the Technical Documents)

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 Asian Development Bank Special Conditions of Contract
(Maybe subject to further changes)

GCC Clause

1.17 Instruction is the same as the GoP Special Condition of Contract

1.22 Instruction is the same as the GoP Special Condition of Contract

1.23 Instruction is the same as the GoP Special Condition of Contract

1.24 Instruction is the same as the GoP Special Condition of Contract

1.28 Instruction is the same as the GoP Special Condition of Contract

1.31 Instruction is the same as the GoP Special Condition of Contract

2.2 Instruction is the same as the GoP Special Condition of Contract

5.1 Instruction is the same as the GoP Special Condition of Contract

6.5 Instruction is the same as the GoP Special Condition of Contract

7.4(c) Instruction is the same as the GoP Special Condition of Contract

7.7 The Contractor shall be primarily and solely responsible for the acts,
defaults, and negligence of any subcontractor.

8.1 Instruction is the same as the GoP Special Condition of Contract

10 Instruction is the same as the GoP Special Condition of Contract

12.3 In case the Contractor fails to comply with the preceding paragraph, the
Procuring Entity shall forfeit its performance security. All payables of the
GoP in the Contractor's favor shall be offset to recover the costs.

12.5 Instruction is the same as the GoP Special Condition of Contract

13 Instruction is the same as the GoP Special Condition of Contract

18.3 (h) (i) In case it is determined prima facie by the Procuring Entity 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, corrupt, fraudulent,
collusive, coercive and obstructive practices as defined in ITB Clause
3.1()a

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21.2 Instruction is the same as the GoP Special Condition of Contract

29.1 Instruction is the same as the GoP Special Condition of Contract

31.1 Instruction is the same as the GoP Special Condition of Contract

31.3 Instruction is the same as the GoP Special Condition of Contract

34.3 The Funding Source is the Asian Development Bank through [indicate the
Loan/Grant/Financing No.] in the amount of [insert amount of funds].

39.1 Instruction is the same as the GoP Special Condition of Contract

40.1 Materials and equipment delivered on the site but not completely put in
place shall be included for payment.

40.3 If the Procuring Entity delays payment, the Contractor shall be paid interest
on such payment. Interest shall be calculated from the date by which the
payment should have been made up to the date when the late payment is
made at the annual rate of [insert percentage rate].

51.1 Instruction is the same as the GoP Special Condition of Contract

51.2 Instruction is the same as the GoP Special Condition of Contract

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 World Bank Bid Data Sheet

ITB Clause

1.1 The Procuring Entity is [insert name ].

The name of the Contract is [insert the name of the contract].

The identification number of the Contract is [insert identification number of

the contract].

2 The Funding Source is World Bank through [indicate the Financing

Agreement No.] in the amount of [insert amount of funds].

The name of the Project is [Insert the name of the project]

3.1 The World Bank Guidelines on Anti-Corruption, as stated in the Financing

Agreement and as annexed to the World Bank Standard Conditions of
Contract, shall be adopted.

5.1 The Financing Agreement provides that procurement shall follow the
Bank’s Procurement Guidelines and Section 1.8 thereof permits the
participation of firm from all countries except for those mentioned in
Section 1.10 thereof.

5.2 The Financing Agreement provides that procurement shall follow the
Bank’s Procurement Guidelines and Section 1.8 thereof permits the
participation of firm from all countries except for those mentioned in
Section 1.10 thereof.

5.4 Instruction is the same as the GoP Bid Data Sheet

8.1 Instruction is the same as the GoP Bid Data Sheet

8.2 Instruction is the same as the GoP Bid Data Sheet

9.1 Instruction is the same as the GoP Bid Data Sheet

10.1 Instruction is the same as the GoP Bid Data Sheet

10.4 Instruction is the same as the GoP Bid Data Sheet

12.1 During Bid opening, if the first bid envelope lacks any of the following
documents, the bid shall be declared non-responsive.

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 The first envelope shall contain the following eligibility and technical
documents:

a. Eligibility Requirements

i. Registration Certification of the Company;

ii. List of relevant contracts that comply to experience requirement as

specified in ITB Clause 5.4;

iii. Audited financial statement for the past 2 years;

iv. In case of Joint Venture, the JV Agreement, if existing, or a signed

Statement from the partner companies that they will enter into a JV in case
of award of contract.

b. Technical Documents

v. Project Requirements, to include:

(v.1) List of contractor’s personnel (e.g. Project Manager, Project

Engineers, Materials Engineers, and Foremen). To be assigned to the
contract to be bid, with their complete qualification and experience data; and

(v.2) List of contractor’s major equipment units, which are owned, leased
and/or under purchase agreements, supported by proof of ownership,
certification of availability of equipment from equipment lessor/vendor for
the duration of the project;

vi. Bid Security or Bid Securing Declaration as required in ITB 18;

vii. Sworn statement in accordance with Section 25.3 of the IRR of RA 9184
and using the form prescribed in Section VIII. Bidding Forms.

viii. Credit line from a universal or commercial bank extended in favor of

the bidder is awarded the contract for the project.

Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder.

12.1(a)(iii) Foreign bidders may submit their valid Philippine Contractors Accreditation
Board (PCAB) license or special PCAB License in case of joint ventures,
and registration for the type and cost of the contract for this Project as a pre-
condition for award as provided in the Financing Agreement, and ITB Nos.
12.1(b)(ii.2) and 12.1(b)(iii.3)

13.1 Instruction is the same as the GoP Bid Data Sheet

13.2 (a) & (b) ABC does not generally apply as a ceiling for bid prices.

111
 However, subject to prior concurrence by the World Bank, a ceiling may be
applied to bid prices provided the following conditions are met:

a) Bidding Documents are obtainable free of charge on a freely

accessible website. If payment of Bidding Documents is required by the
procuring entity, payment could be made upon the submission of bids.

b) The procuring entity has procedures in place to ensure that the ABC
is based on recent estimates made by the engineer or the responsible unit of
the procuring entity and that the estimates are based on adequate detailed
engineering (in the case of works) and reflect the quality, supervision and
risk and inflationary factors, as well as prevailing market prices,
associated with the types of works or goods to be procured.

c) The procuring entity has trained cost estimators on estimating prices

and analyzing bid variances. In the case of infrastructure projects, the
procuring entity must also have trained quantity surveyors.

d) The procuring entity has established a system to monitor and report

bid prices relative to ABC and engineer’s/procuring entity’s estimate.

e) The procuring entity has established a monitoring and evaluation

system for contract implementation to provide a feedback on actual total
costs of goods and works.
14.2 Instruction is the same as the GoP Bid Data Sheet

15.4 Instruction is the same as the GoP Bid Data Sheet

16.1 Instruction is the same as the GoP Bid Data Sheet

16.3 Instruction is the same as the GoP Bid Data Sheet

17.1 Instruction is the same as the GoP Bid Data Sheet

18.1 Instruction is the same as the GoP Bid Data Sheet

18.2 Instruction is the same as the GoP Bid Data Sheet

20.3 Instruction is the same as the GoP Bid Data Sheet

21 Instruction is the same as the GoP Bid Data Sheet

24.1 The BAC shall open the bids in public on {insert date and time of bid
opening}, at {insert place of bid opening}.

The time for the bid opening shall be the same as the deadline for receipt of

112
 bids or promptly thereafter. Rescheduling the date of the opening of bids
shall not be considered except for force majeure, such as natural calamities.
In re-scheduling the opening of bids, the BAC shall issue a Notice of
Postponement to be posted at the PhilGEPS’ and the Procuring Entity’s
websites.

24.2 During Bid opening, if the first envelope lacks any of the documents listed
in World Bank BDS 12.1, the bid shall be declared non-responsive but the
documents shall be kept by the Procuring Entity.

24.3 The financial proposals in the second envelope of all the bidders shall be
read for record purposes. The first and second envelopes shall not be
returned to the bidders.

27.4 ABC does not generally apply as a ceiling for bid prices; unless the
conditions mentioned in ITB No. 13.2 are obtaining and that there is prior
World Bank concurrence.

28.2 Instruction is the same as the GoP Bid Data Sheet

31.4(f) Instruction is the same as the GoP Bid Data Sheet

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World Bank Special Conditions of Contract

The World Bank adopts the provisions of the Special Conditions of Contract of the GOP as
contained in the Harmonized Philippine Bidding Documents dated ________, except GCC
Clauses 18.3(h)(i) and 18.4, 34.3as follows:

GCC Clause

18.3 (h) (i) The World Bank’s Guidelines On Preventing and Combating Fraud and
Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants
as annex herein shall be applied.

18.4 The World Bank is the Funding Source through Loan Agreement No.____.

34.3 The Funding Source is the World Bank.

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115