Philippine Association of Landscape Arch PDF

© PALA 2004
THE LANDSCAPE ARCHITECT’S NATIONAL CODE

TECHNICAL STANDARDS OF
OF PROFESSIONAL PRACTICE
PALA Document 201 Pre-Planning and Pre-Design Services

202 Regular Landscape Architecture Design
Services
203 Specialized Landscape Design and Allied
Services
204 Landscape Construction Management
Services
205 Post-Construction Services
206 Project Management Services
207 Design-and-Build Engagements
The Documents contained herein are guides to the

Landscape Architect’s professional practice.
Along with the Code of Professional Ethics (PALA
Document 100), these Technical Standards of
Professional Practice are to be read and interpreted
in line with the
Landscape Architecture Act of 2000 (Republic Act
9053) and its Implementing Rules and Regulations
(IRR).
These Documents may be amended from time to

time by the Philippine Association of Landscape
Architects (PALA).
Technical Standards of Professional Practice / Philippine Association of Landscape Architects
Foreword
These Technical Standards aim to bring the practice of Landscape Architecture in the country
in the orbit of global competitiveness.
They are adopted primarily to set a norm of practice for Landscape Architecture, establishing
in broad scope how the Landscape Architect shall render services. These Standards also
prescribe the manner and methods of compensation, minimum basic fees, and the rights and
obligations of the Landscape Architect and the Client.
Only individuals qualified under the provisions of the Landscape Architecture Act of 2000 (RA
9053) shall be allowed to practice Landscape Architecture in the Philippines.
The Philippine Association of Landscape Architects (PALA) and the Board of Landscape
Architecture (BOLA), with the assistance of the Professional Regulation Commission (PRC),
shall have the original power to interpret the provisions of these Standards.
Technical Standards of Professional Practice / Philippine Association of Landscape Architects p 01
PALA 201 Pre-Planning and Pre-Design Services

201.1 Introduction. The Landscape Architect may perform for the Client services
prerequisite to planning and design, or as stand-alone background studies to support any
future planning and design efforts. These services include, among others, technical advice in
the process of site selection, land acquisition, Project promotions, assistance in determining
appropriate technologies, visual resources mapping and inventory and study of financing
options. Where background studies need to be prepared to meet government requirements,
such as an environmental impact assessment (EIA) or an initial environmental examination
(IEE), the Landscape Architect may take the lead consulting role or participate as part of a
team.
Considering the Landscape Architect’s knowledge in site evaluation, construction techniques,

materials and new or appropriate technologies that bear on the cost of a Project, the basic
plan and design parameters may be established to determine the size of land needed and the
extent of landscape development, vis-à-vis available resources and attendant constraints.
201.2 Manner of Providing Services. The Landscape Architect may provide services
directly to the Client, or indirectly as an associated consultant to a lead consultant. In either
case, the Landscape Architect’s in-house (i.e., employed) or out-sourced (i.e., contracted)
staff should possess the requisite relevant skills for the Project, and at all times be under the
direct supervision and control of the Landscape Architect to ensure a unified result.
201.3 Scope and Definition of Pre-planning and Pre-design Services . The Landscape
Architect may be engaged for, but not limited to, any of the following:
201.3.1 Economic Feasibility Studies. To determine the viability of a Project, i.e.,

its cost of development vis-à-vis its potential returns to the Client. This is to help the
Client and the Landscape Architect select the most viable plan.
201.3.2 Project Finance. To apprise the Client of the requirements of lending

agencies, income-expense relationships and relative demand for different types of
development in actual financing negotiations.
201.3.3 Site Development / Landscape Architectural Programming. To

investigate, identify, document, interpret and prescribe the needs of the Client for
future planning & design of a Project.
201.3.4 Site Selection and Analysis. To help identify and locate candidate sites
and alignments for the proposed Project and evaluate their adequacy in meeting
certain criteria (e.g., current land uses, topography, accessibility, proximity to certain
locations, geotechnical conditions, probable development costs, or community and
legal considerations).
201.3.5 Site Utilization and Land Use Studies, Potentials Assessment. To

uncover site constraints and potentials for development through the appropriate
utilization of land.
201.3.6 Space Management Studies. To analyze the space requirements of a

Project based on structural organization and functional set-up (e.g. human behavior
and transactional analysis to pinpoint linkages and interaction of spaces). This
service covers space use and character analysis, work station and anthropometric
module design and programming of space to serve as the basis for landscape
architectural design.
201.3.7 Project Promotions. To generate financial support for and public

acceptance of a Project. This includes the preparation of promotion materials (e.g.
brochures and audio-visual presentations in hardcopy and electronic format that
simulate the intended development, virtual, analog and working models, written
articles for journals or publications), attendance in conferences and meetings, media
appearances and translation services.
201.3.8 Visual Resources (VR) Inventory and Assessment. To itemize the

site’s visual resources and assess them, vis-à-vis the Project’s intended
development. Such a study may either be a stand-alone service or a part of the
environmental baseline studies that are usually made in preparation of an
environmental impact assessment (EIA).
201.3.9 Environmental Impact Assessment (EIA) / Initial Environmental

Examination (IEE). To determine and predict, through a full-dress and an
abbreviated study, both negative and positive impacts a Project may have on the
environment and prescribe mitigating measures for any negative impacts, if the same
cannot be totally eliminated.
201.3.10 Preparation of Project Brief and Terms of Reference (TOR). Where a

Client is unable to prepare its own Project Brief and Terms of Reference (TOR) for
the Project, the Landscape Architect may prepare them. The Project Brief and TOR
shall outline the requirements of the Project, and the manner and format in which
proposals, submittals and schedule of accomplishments are to be made.
201.3.11 Review of Plans and Designs Made by Others. To evaluate the plans
and designs made by other Landscape Architects.
201.3.13 Expert Witness Service. To provide professional expert opinion before

any government agency, judicial court, legislative inquiry, adjudicating body or
professional association, when so requested or required.
201.4 Methods of Fee Compensation. The method of compensation for services

rendered under this Section shall ultimately be agreed upon by the Landscape Architect and
the Client. Considering that these services are advisory, compensation may be on a time
scale, percentage scale or lump sum basis. For government Projects, Item 201.4.4
hereunder shall be controlling.
201.4.1 Time-Scale Charges. Compensation under a time-scale arrangement

shall either cover the actual man-hours spent for the services rendered, or include
the negotiated upper limit thereof. The Landscape Architect shall give the Client
adequate advance notice before the agreed upper limit is reached. Services
rendered beyond the upper limit shall be compensable only when agreed upon
by the Landscape Architect and the Client. This notwithstanding, services rendered
below the upper limit shall be compensable. The hourly rates may be applied with a
multiplier to cover overhead and reasonable profit.
201.4.2 Lump-sum Charges. Compensation under a lump-sum arrangement is

computed based on the estimated time required for the Project, or a percentage of
the Project cost. The Landscape Architect shall be entitled only to the lump-sum fee
agreed upon, unless the same has been previously agreed to be subject to variation.
201.4.3 Percentage-Scale Charges. Compensation herein is a percentage of the

Project’s development cost, where the same can be reasonably estimated. This
includes the preparation of feasibility studies or environmental impact assessments
(EIAs).
201.4.4 Government Projects. Where any agency of the government is required

under the law to engage the services of a licensed Landscape Architect, the latter’s
compensation shall be subject to the limitations set forth under applicable laws, rules
and regulations or guidelines on the Hiring of Consultants.
201.4.5 Interest Due on Late Payment of Fees. The Landscape Architect shall
be entitled to interest at the prevailing BSP rate, plus two (2%) percent per annum,
unless otherwise agreed upon, on all fees, other charges and reimbursements due
and not paid within 30 days from receipt of billing.
201.5 Taxes on Fees. The Landscape Architect’s fee is net of tax. Any tax due thereon
shall be for the Client’s account.
201.6 Reimbursable Costs and Associated Charges. The Landscape Architect shall be
reimbursed by the Client for disbursements actually and properly incurred in rendering the
contracted services. See Annex B, Cost Items for Reimbursement to the Landscape
Architect.
201.7 Progress Payments. The following are the recommended ranges of progress
payments for progress submittals made by the Landscape Architect:
201.7.1 Upon signing of Agreement 10% - 15%

201.7.2 Upon submission of Inception Report 10% - 15%
201.7.3 Upon submission of Pre-final Report 40% - 50%
201.7.4 Upon submission of Final Report 20% - 40%
201.8 Submittals. Drawings, specifications, documents and materials, submitted by the

Landscape Architect are instruments of service, and as such, shall bear the prescribed seal
and signature of the Landscape Architect. Such signed and sealed drawings, specifications,
documents and materials shall remain the property and documents of the Landscape
Architect, whether the project for which they were made is executed or not. No person
without the written consent of the Landscape Architect or author of said documents shall
duplicate or make copies of said documents for use in the repetition of and for other projects
or buildings, whether executed partly or in whole.
PALA 202 Regular Landscape Architecture Design Services
202.1 Introduction. The Regular Landscape Architectural Design Services come in a

sequence of phases: the Schematic or Conceptual Design Phase; the Design Development
Phase; the Contract Documents Phase; and the Construction Phase. The objective is to carry
the conceptual design to a stage where the Project may be bid out and constructed in
accordance with the intent of design. In certain cases, the Landscape Architect may be
engaged by the Client to render service for any phase or phases of design.
202.3 Scope and Definition of Design Services. The Landscape Architect may be
engaged for any or all phases of the design process, as follows:
202.3.1 Schematic / Conceptual Design Phase. This phase establishes the

design theme and concept in the schematic design studies leading to a
recommended solution for the approval of the Client. The concept plan is usually
accompanied by a general narrative of the Project and a Statement of Probable Cost
of Construction based on current parameters.
202.3.2 Design Development Phase. This phase entails the preparation of

plans, elevations, other drawings, and outline specifications that fix and illustrate the
size, quality and character of the entire Project, specifying the kind of materials,
structures and other related works that may be required. An updated Statement of
Probable Cost of Construction shall also be submitted to the Client.
202.3.3 Contract Documents Phase. This phase brings the developed designs to
a bid-ready stage, by the production of complete Plans and Construction Drawings,
and Technical Specifications setting forth in detail the quality of materials, products,
finishes and workmanship of hardscape and softscape items of work. It also includes
the preparation of detailed Cost Estimates. Documents prepared under this phase for
government permit purposes, usually consisting of five (5) complete sets of hardcopy
format, shall be free of charge. Any additional set(s) for any other purpose shall be
subject to a corresponding charge.
202.3.4 Construction Phase. This phase includes: a) the bidding period, which
involves the preparation of documents for contract-letting, bidding, and construction,
assistance to the Client in obtaining proposals from Bidders, and the evaluation of
the same, and b) the construction period, where the Landscape Architect makes
periodic visits to the Project site to monitor general progress of construction, decides
on claims of the Client and the Contractor, and recommends the issuance of
Certificates of Payment for the Contractor.
202.4 Methods of Fee Compensation. Several methods of compensation may be used for
services under this Section, as may be agreed upon by the Landscape Architect and the
Client. For government Projects, Item 202.4.3 hereunder shall be controlling.
202.4.1 Percentage-Scale Charges. This Scale may be used whether a Project’s

development cost can be reasonably estimated, or not. The percentage scale shall
vary according to the complexity of the Project, as reflected in the Project
classification schedule in the nomograph below.
The percentage scale is more appropriate where the Project is of a straightforward

nature and/or the contract cost of the landscape works exceeds minimum contract
value as shown, and/or the Landscape Architect is the principal consultant and/or
acts as a specialist (sub) consultant and the commission is easily separated from, but
forms part of, any capital works Project.

This method may be used where the Client’s ability to enter into a service agreement
depends on having, at firsthand, a definite budget for services.

202.4.4 Interest Due on Late Payment of Fees. The Landscape Architect shall
be entitled to interest at the prevailing BSP rate, plus two (2%) percent per annum,
unless otherwise agreed upon, on all fees, other charges and reimbursements due
and not paid within 30 days from receipt of billing.
Architect.
202.7.1 Upon signing of contract 5-15%

202.7.2 Upon completion of Schematic/Concept Phase 5-15%
202.7.3 Upon completion of Design Development Phase 25-35%
202.7.4 Upon completion of Contracts Document Phase 30-45%
202.7.5 During construction supervision 10-15%

PALA 203 Specialized Landscape Design and Allied Services
203.1 Introduction. The Landscape Architect may be engaged for specialized allied
services that cover a range of engagements including, but not limited to, design of golf course
or zoo, prepare rehabilitation plans that require erosion control, plan agro forestry and farm
systems, develop an interpretative program for trail systems, site graphics and signage and
park art installations.
203.3 Scope and Definition of Specialized Landscape Design and Allied Services.
These are services beyond the mainstream of Landscape Architecture, interfacing with allied
professions. Due to trends in technology integration, the Landscape Architect who has
gained either proficiency or reputation in interfacing fields may find a variety of engagements
outside the mainstream practice.
202.4 Methods of Fee Compensation. Several methods of compensation may be used

for services under this Section, as may be agreed upon by the Landscape Architect and the
203.4.1 Percentage-Scale Charges. Compensation may be based on a

percentage scale where a Project’s development cost can be reasonably estimated,
such as in the preparation of special studies.

203.4.3 Time-Scale Charges. Compensation under a time-scale arrangement shall

either cover the actual man-hours spent for the services rendered, or include the
negotiated upper limit thereof.
The Landscape Architect shall give the Client adequate advance notice before the
agreed upper limit is reached. Services rendered beyond the upper limit shall be
compensable only when agreed upon by the Landscape Architect and the Client.
This notwithstanding, services rendered below the upper limit shall be compensable.
The hourly rates may be applied with a multiplier to cover overhead and reasonable
profit.

and regulations or guidelines on the Hiring of Consultants. Depending on the
complexity of the Project, special studies shall not exceed three (3%) percent of the
estimated Project development cost.
203.5 Interest Due on Late Payment of Fees. The Landscape Architect shall be
entitled to interest at the prevailing BSP rate, plus two (2%) percent per annum, unless
otherwise agreed upon, on all fees, other charges and reimbursements due and not paid
within 30 days from receipt of billing.
Architect.

203.8.2 Upon completion of Schematic/Concept Phase 5-15%
203.8.3 Upon completion of Design Development Phase 25-35%
203.8.4 Upon completion of Contracts Document Phase 30-45%
203.8.5 During construction supervision 10-15%

PALA 204 Landscape Construction Management Services

204.1 Introduction. The Landscape Architect may be engaged by the Client to manage the
construction of the Project that he has designed or that which has been designed by another
Landscape Architect. Construction Management ensures that the intent of the landscape
design is met by the Landscape Contractor and the construction delivered and turned-over
within budget and schedule to the extent possible. Depending on the Project’s complexity, the
Landscape Architect may assign a qualified fulltime resident staff onsite to supervise,
manage and monitor overall Project schedules and coordinate with the various Contractors
and trades engaged for the Project.
204.3 Scope and Definition of Construction Management Services. These services

include pre-construction assistance for contract letting through the evaluation of bid tenders,
and the supervision of works-in-progress.
204.3.1 Pre-bid Preliminaries. This involves the preparation of documents for

construction, including the forms for contract letting, invitation and instructions to
bidders, and bid proposals.
204.3.2 Bid Evaluation. This entails assisting the Client in obtaining proposals
from Contractors, preparing an abstract of bids, evaluating bid tenders, awarding and
preparing the Contracts therefor.
204.3.3 Construction Management. This includes deciding on all claims of the

Client and Contractor and on matters relating to the execution and progress of work,
interpreting Contract Documents, preparing change orders, gathering and submitting
to the Client written guarantees required of the Contractor or sub-Contractors,
determining the amount owing and due the Contractor based on assessments made
vis-à-vis the Contractors’ requests for payment, and issuing the corresponding
Certificates for Payment. These Certificates for Payment shall certify the current
quantity and quality of work actually done vis-à-vis the Contract Documents. As a
Construction Manager, the Landscape Architect shall also determine the date of
substantial and final completion, and issue the corresponding Final Certificate for
Payment to the Contractor.
204.4 Methods of Fee Compensation. Several methods of compensation may be used

for services under this Section, as may be agreed upon by the Landscape Architect and the


compensable only when agreed to by the Landscape Architect and the Client. This
notwithstanding, services rendered below the upper limit shall be compensable. The
hourly rates may be applied with a multiplier to cover overhead and reasonable profit.
204.4.3 Percentage-Scale Charges. Compensation may be based on a

percentage-scale where a Project’s development cost can be reasonably estimated,
such as in the preparation of special studies.

204.5 Interest Due on Late Payment of Fees. The Landscape Architect shall be entitled to
interest at the prevailing BSP rate, plus two (2%) percent per annum, unless otherwise agreed
upon, on all fees, other charges and reimbursements due and not paid within 30 days from
receipt of billing.
entitled to interest at the prevailing BSP rate, plus two (2%) percent per annum, unless
otherwise agreed upon, on all fees, other charges and reimbursements due and not paid
within 30 days of billing to the Client.
payments for progress submittals made by the Landscape Architect

204.8.2 Upon completion of 50% of the works 35-40%
204.8.3 Upon completion of 75% of the works 35-40%
204.8.4 Upon turn over of the Project to Client 10-15%

204.9.1 Reportorial Requirements for Resident Staff. The Landscape Architect,

whether engaged independently by a Client or under the supervision of a third-party
Project Manager, shall have its resident staff prepare, submit and maintain daily
records of inspections, deliveries, notices to Contractors, requests by Contractors,
work stoppages and test results, among others. The reports shall be in the prescribed
format of the Landscape Architect or the Project Manager in the prescribed number
of sets and shall be summarized into weekly and monthly accomplishment reports
carrying a full assessment of the accomplished work, certificates of payments made,
adjusted schedules of works-in-progress, minutes of meetings, and a full discussion
of issues requiring action. These records shall be maintained and continually updated
until the Project is turned-over and accepted by the Client.
204.9.2 Reportorial Requirements for Non-Resident Staff on Site Visits. The

Landscape Architect, whether engaged independently by a Client or under the
supervision of a third-party Project Manager, shall have its visiting staff prepare,
submit and maintain records of inspections made, deliveries, requests of Contractors,
work stoppages and test results, among others. The reports shall be in the prescribed
format of the Landscape Architect or the Project Manager in the prescribed number
of sets and shall be summarized into weekly or monthly accomplishment reports as
may be agreed upon, carrying a full assessment of the accomplished work,
certificates of payments made, minutes of meetings, adjusted schedules of works-in-
progress and a full discussion of issues requiring action. These records shall be
maintained and continually updated until the Project is turned-over and accepted by
the Client.
PALA 205 Post-Construction Services

205.1 Introduction. The Landscape Architect may be engaged by a Client either for post-
construction operations and maintenance or for evaluating the performance of the facility or
Project after completion of construction.
Manner of Providing Services. The Landscape Architect may provide services directly to
the Client, or indirectly as an associated consultant to a lead consultant. In either case, the
Landscape Architect’s in-house (i.e., employed) or out-sourced (i.e., contracted) staff should
possess the requisite relevant skills for the Project, and at all times be under the direct
supervision and control of the Landscape Architect to ensure a unified result.
In cases of operations and maintenance, the Landscape Architect himself may be directly
employed by the Client, or alternatively, retained as in-house Consultant.
205.3 Scope and Definition of Post-Construction Services. The Landscape Architect

may be engaged for any of, but not limited to, the following:
205.3.1 Grounds keeping Maintenance Supervision. Where a facility has a

considerable area of landscaped and semi-managed open space that require a
landscape design intent to be maintained, the Landscape Architect’s role is to ensure
that the design intent shall continue into the future through an overall landscape
maintenance and grounds keeping regime in place. The Landscape Architect shall
control and coordinate all maintenance and grounds keeping activities.
205.3.2 Post-Construction Evaluation. This involves the evaluation, among

others, of how well the facility’s component spaces are used, the effectiveness of
materials used for softscapes and hardscapes, and the overall functional
effectiveness of the plan designs as constructed. Said evaluation is particularly
important as a feedback mechanism in medium to large-scale phased developments,
or for Projects that need to be site-adapted to several other separate Project sites.

rendered under this Section shall be agreed upon by the Landscape Architect and the Client.
Considering that these services are advisory, compensation may be on a time scale,
percentage scale or lump sum basis. For government Projects, Item 201.4.4 hereunder shall
be controlling.
For grounds keeping maintenance supervision, compensation may either be by salary or

management fee based on percentage scales.

compensable only when agreed to by the Landscape Architect and the Client. This
notwithstanding, services rendered below the upper limit shall be compensable. The
hourly rates may be applied with a multiplier to cover overhead and reasonable profit.

205.4.3 Percentage Scale Charges Based on Gross Rental. The professional fee
shall be between four (4%) and six (6%) percent of the facility’s gross rental income,
if the facility operates for rental income. For government facilities, the Consultants’
rates for services are subject to similarly-situated provisions in laws, rules and
regulations or guidelines in the Hiring of Consultants.
205.4.4 Salary Basis. Salary compensation is usually based on a competitive basic rate with
an attendant package of bonuses and benefits as may be agreed upon between the Client
and the Landscape Architect.
205.4.5 Government Projects. Where the government facility does not earn rental
income, and where the agency of the government is required under the law to
engage the services of a licensed Landscape Architect, the latter’s compensation
shall be subject to the limitations set forth under applicable laws, rules and
regulations or guidelines on the Hiring of Consultants.. For those that enjoy rental
income, fees based on standard practice as in Item 205.4.3 shall be used.
205.6 Interest Due on Late Payment of Fees. The Landscape Architect shall be entitled
to interest at the prevailing BSP rate, plus two (2%) percent per annum, unless otherwise
agreed upon, on all fees, other charges and reimbursements due and not paid within 30 days
from receipt of billing.
Architect.
205.8 Progress Payments. Progress payments for progress submittals made by the
Landscape Architect shall be agreed to by the latter and the Client

PALA 206 Project Management

206.1 Introduction. The Landscape Architect‘s firm may be engaged for Project
Management considering its relevant experience in cost control and forecasting, work
scheduling, familiarity with materials, equipment and construction methods, contracting
principles and procedures, local building , labor and safety codes, taxation and legal issues,
among others. In this engagement, the independent third-party role of the Landscape
Architect is entirely devoted to coordinating the work outputs and schedules of several
planning, architectural, engineering and specialist Consultants and Contractors, as well as
having a command of the Project’s financing insofar as this bears on the Project schedules
and costs.
Where the Landscape Architect is directly hired by the Client as a Project Manager, it shall be
his responsibility to hire under him a Construction Manager, together with the attendant
support staff of cost and quantity surveyors, architects, engineers, safety inspectors and
other related Consultants needed for the Project, either on his or the Client’s account.
206.3 Scope and Definition of Project Management. Project Management shall include
the planning, programming and monitoring of the various activities for better forecasts and
control of costs and schedules, and on materials and construction methods as necessary.
The objective hereof is to relieve the Client of the concerns relating to construction and
contractual matters.
206.3.1 Planning and Design Phase. In regular consultation with the planning,
architectural and engineering Consultants, the Project Manager shall advise the
Client and the Consultants of the consequences of design decisions and options, and
how these bear on schedules and costs. The Project Manager shall review plans,
designs and specifications to enable him to advise on site conditions, appropriate
materials alternates and the construction feasibility of various systems. He shall also
prepare periodic evaluation and estimates of costs and how these relate to the
overall budget, recommend early purchase of materials and equipment that require a
long lead time of procurement, identify critical paths affecting work schedules and
check bid packages and specifications to eliminate overlapping jurisdictions among
service providers and Contractors.
206.3.2 Construction and Post-Construction Phase. In concurrence with

Consultants, the Project Manager shall review bids for compliance to stipulated
conditions, make recommendations on awards of bids, observe works-in-progress for
compliance with specifications, confer with the Consultants for the interpretation of
plans, drawings and specifications, establish clear lines of authority and
communication onsite to ensure the Contractors’ works-in-progress remain
unimpeded and adhere to the design intent, obtain assurances in the form of
organizational charts, staffing, and equipment complement onsite and established
protocols of testing and acceptance procedures for materials and deliveries,
maintain cost accounting records of all work components and a host of other
coordinating and monitoring functions, including the review and approval of request
payments by Contractors for accomplished work.
206.4 Legal Responsibility. The Landscape Architect, acting as Project Manager, has no
legal responsibility under the law should the structure collapse or the edifice thereof fall within
fifteen years from completion. For this reason, the Construction Manager and Project
Manager are not allowed to, and should not, interfere in the design and construction aspect of
the project.
206.5 Methods of Fee Compensation. The method of compensation for services rendered
under this Section shall be agreed upon by the Project Manager and the Client. Considering
that services for post-construction evaluation are advisory, compensation is usually on a
percentage scale basis. However, where the Project Manager is directly hired by the Client,
compensation may be on a salary basis. For government Projects, the applicable laws, rules
and regulations and guidelines on Hiring of Consultants shall be controlling.
206.5.1 Percentage-Scale Charges Based on Project Cost. The professional fee

may be between two (2%) and five (5%) percent of the estimated Project cost. For
government facilities, the Consultants’ rates for services are subject to similarly-
situated provisions in the applicable laws, rules and regulations and guidelines on the
Hiring of Consultants.
206.5.2 Salary Basis. Salary compensation is usually a competitive basic rate with
an attendant package of bonuses and benefits as may be agreed upon by the Project
Manager and the Client.

206.6 Interest Due on Late Payment of Fees. The Landscape Architect shall be entitled
to interest at the prevailing BSP rate, plus two (2%) percent per annum, unless otherwise
206.7 Reimbursable Costs and Associated Charges. The Landscape Architect, as

Project Manager, shall be reimbursed by the Client for disbursements actually and properly
incurred in rendering the contracted services. See Annex B, Cost Items for
Reimbursement to the Landscape Architect.

Consolidated weekly and monthly reports reflecting the status of completion of work by all
Consultants and Contractors engaged for the Project, revised cost estimates, schedules and
certificates of payments made and a full discussion of issues requiring action, among others,
shall be submitted to the Client in the prescribed format and number of sets.
PALA 207 Design-and-Build Engagements

207.1 Introduction. The Landscape Architecture profession is at times under pressure to
deliver a Project on a single-point responsibility of design-and-build arrangement. The aim of
such arrangement is the delivery of a Project at the shortest time possible.
207.2 Manner of Providing Services. The Landscape Architect‘s firm directly provides
services to the Client through an agreement for services that begins with landscape design
and ends with construction. For such engagement, the Landscape Architect shall clearly
indicate both the design and construction components of the package, with their respective
compensation proposals.
207.2.1 The Landscape Architect’s Responsibility in the Design Component of

the Package. No landscape design shall be offered by the Landscape Architect to
the Client for free in exchange for obtaining the construction component of the
package. It shall be the Landscape Architect’s responsibility to clearly indicate the
delineation of these components and their corresponding costs. The design rates
shall be competitive, typical of the industry, and appropriate to the scale and
complexity of the work at hand.
207.2.2 The Landscape Architect’s Responsibility in the Construction

Component Package. The Landscape Architect may opt for either a design-build
arrangement by administration, or design-build on a guaranteed maximum cost. In
either case, it is the Landscape Architect’s responsibility to clearly delineate the
construction component of the package and its corresponding cost separate from
design.
207.3 Scope and Definition of Design-Build Services. The Landscape Architect may
engage in either of the following design-build arrangements:
207.3.1 Design-Build by Administration. All costs for labor and materials are
directly paid by the Client to the suppliers and the laborers or contractors. The
Landscape Architect shall not advance any amount for expenditures connected with
the Project. Although the Landscape Architect may prepare a detailed cost estimate
of the Project, the estimate may be guaranteed only within a ten (10%) percent range
of variance. Subject to the Client’s approval, the Landscape Architect shall appoint a
construction superintendent, a purchasing agent, timekeeper(s) and property
custodian from the usual labor required. The salaries of these personnel, including
all fees and permits, shall be directly paid by the Client and not deductible from the
Landscape Architect’s fee.
207.3.2 Design-Build on a Guaranteed Maximum Cost. The aspects of Build-

Design by Administration shall apply, except that in a Design-Build on a Guaranteed
Maximum Cost, the Landscape Architect guarantees the maximum cost of the
Project. Furthermore, the Client shall advance a revolving capital to finance the
construction. Any savings realized after the Project is completed is divided equally
between the Client and the Landscape Architect.
Any excess in cost within Ten Percent (10%) of the guaranteed maximum amount,
shall be equally shouldered by the Client and the Landscape Architect. However, if
the excess is more than Ten Percent (10%) of the guaranteed maximum cost, all
such amount in excess of Ten Percent (10%) is to be assumed by the Landscape
Architect.

rendered under this Section shall be agreed upon by the Project Manager and the Client.
However, the common practice is to use the percentage scale charge. For government
Projects, the applicable laws, rules and regulations and guidelines on Hiring of Consultants
shall be controlling.
207.4.1 Design-Build by Administration. The professional fee for this arrangement

shall be seven (7%) of the Project construction cost over and above the Landscape
Architect’s design fee. For the design fee, refer to Section 202 hereof, on Regular
Landscape Architectural Design Services.
207.4.2 Design-Build on a Guaranteed Maximum Cost. The professional fee for

this arrangement shall be either Ten Percent (10%) of the Project Construction cost
or as tucked in the guaranteed maximum cost. However, the Landscape Architect’s
design fee shall be over and above this amount. For the design fee, refer to Section
202 hereof, on Regular Landscape Architectural Design Services.
207.4.3 Government Projects. Where any agency of the government is required under the
law to engage the services of a licensed Landscape Architect, the latter’s compensation shall
be subject to the limitations set forth under applicable laws, rules and regulations or
guidelines on the Hiring of Consultants.
207.5 Legal Responsibility. The Landscape Architect is liable for the design and
construction, as provided under the law.
207.6 Interest Due on Late Payment of Fees. The Landscape Architect shall be entitled to
interest at the prevailing BSP rate, plus two (2%) percent per annum, unless otherwise
Architect.
207.10 Submittals. Documents and other materials submitted by the Landscape Architect
are instruments of service, intellectual property and professional responsibility. As such, they
shall bear the prescribed seal and signature of the Landscape Architect; provided, that where
the same is made by or under the supervision of another Landscape Architect, such
documents and materials submitted shall clearly indicate the parts thereof or any function of
Landscape Architecture practice therein not actually made or performed by the former.
List of Annexes
Annex A Cost Items for Reimbursement to the Landscape Architect
Annex B Guide to the Landscape Architect’s

Methods of Compensation
Annex C Master Format for a Landscape Architect’s Agreement
Annex D Supplementary Guidelines on Foreign-Currency

Denominated Agreements
Annex E Glossary of Terms
Annex F R.A. 9184. Government Procurement Reform Act
Annex G DPWH Forms (separately attached)
Annex H Consulting Firm Registration Form

Annex A
Cost Items for Reimbursement to the
Landscape Architect
The Landscape Architect shall be reimbursed by the Client for disbursements actually and
properly incurred in rendering services under an Agreement. These are items normally
subject to reimbursements and other charges billable to the Client for the effort and cost the
Landscape Architect has incurred outside the Agreement, pursuant to the request of the
Client.
1.0 Items Subject to Reimbursements. Reimbursements may include, but not limited to, the
following items normally billed as reimbursable:
1.01 Traveling, accommodation and meals of a reasonable standard at cost;

1.02 Fees for time spent in travel on a time charge basis;
1.03 Printing, reproduction and purchasing of documents, drawings, maps, records,
journals, other than those prepared by the Landscape Architect, assessed at
normal commercial rates plus a 10% administration fee,
1.04 The cost of provision of more copies of any documents prepared by the 
Landscape Architect than mutually agreed upon in contract based on current
commercial rates plus a 10% administration fee. Such documents include
sketches, reports, drawings, specifications, manuals and those supplied to
specialist sub-Consultants. No charge will be made for copies used within the
Landscape Architect's own office;
1.05 Specialized computer services (e.g., virtual models and animation);
1.06 Telephone calls, other than local, and telex, telegrams, facsimiles, cables, parcels
by air or post, and other courier expenses at cost;
1.07 The use of the Landscape Architect's motor vehicle(s) beyond thirty (30)
kilometers from the Landscape Architect's office at a rate per kilometer as may be
agreed upon;
1.08 Cost of advertisements and preparation of copy authorized by the Client;
1.09 Cost of reprographics where authorized by the Client;
1.10 Cost of models and professionally rendered perspectives where authorized by the
Client
1.11 Fees and permits paid to statutory authorities in behalf of the Client or in the
exercise of work under an Agreement with the Client;
1.12 Fees to specialist Consultants, including the Quantity Surveyor, where not paid
directly by the Client. The Landscape Architect shall be entitled to render accounts
for disbursements, with supporting evidence, at the same time as accounts for fees.
2.0 Items Subject to Other Charges. The Client shall reimburse the Landscape Architect for
additional work undertaken on the Client's instruction, where such work does not form part of
the agreed commission. Such work may include, but not limited to, the following:
2.01 Site inspections prior to formal engagement;

2.02 Preparation of Project briefs where not provided by the Client;
2.03 Collecting and/or collating base data normally provided by the Client (e.g. base
maps, legal surveys);
2.04 Field and detailed surveys and special research;
2.05 Feasibility studies prior to the establishment of a brief;
Annex A. Cost Items for Reimbursement PALA Standards of Professional Practice p 02
2.06 Site planning, including resolution, design and administration of associated work
not included in the contract;
2.07 Presentation and perspective drawings, models, photographic presentations;
2.08 Special negotiations with respect to Project reviews (e.g. community participation);
2.09 Special detailed reports and estimates;
2.10 Cost planning, preparing Bills of Quantity, preparation f critical path network
analysis, work schedules;
2.11 Time spent for personal selection and pre-ordering of plants and other materials at
the request of the Client;
2.12 Full-time inspection of contract work or sections of such work;
2.13 Measurement of as-built work or variations;
2.14 Services consequent on the failure of the Contractor and need for the terms and
conditions of the Landscape Architect’s contract to be negotiated.
Annex B
Guide to the Landscape Architect’s
Methods of Compensation
1.0 Criteria for Establishing the Landscape Architect’s Method of Compensation
Considering the demands on the Landscape Architect’s time and effort, the Landscape Architect incurs
expenses for overhead and associated Consultants. These expenses affect the Landscape Architect’s
professional fees. Depending on the nature of the Project, the choice of a Landscape Architect based solely
on fees may be detrimental. There have been cases where Projects have been abandoned by professional
designers to cut corners and losses, leaving Clients at the losing end.
The experienced Landscape Architect knows that a fair margin of profit in the practice makes it easier to
serve the Client’s interest more effectively. Furthermore, the successful work of a Landscape Architect
enhances the image and reputation of the profession. There are certain criteria by which the Landscape
Architect’s method of compensation may be established.
1.01 Fair to the Landscape Architect in that it should permit him to recover his cost and net him
an adequate profit, provided he is reasonably efficient.
1.02 Fair to the Client and the Landscape Architect by reflecting the value of his services.
1.03 Flexible enough to protect the Landscape Architect from cost increases because of changes
in the scope of the commission.
1.04 Creates no needless legal complications for the Landscape Architect.
1.05 Encourages the Client to assume a cooperative and supportive role.
1.06 Provides incentive for the Landscape Architect to produce a high quality of technical and
management performance.
1.07 Easy to understand and simple to use.
1.08 Provide a basis for the Client to predetermine costs for services, and be otherwise
acceptable to the Client.
1.09 Encourage the Landscape Architect to develop a solution which will result in the lowest
possible construction cost consistent with the Client’s requirements.
1.10 Not focus the Client’s attention on “price” but rather on the quality and performance of
services.
1.11 Protect the Landscape Architect against the rising costs of providing services during the
course of a commission.
Annex B. Methods of Compensation PALA Standards of Professional Practice p 02
2.0 Methods of Compensation
2.1 Percentage of Construction Cost
This is a widely used method of compensation for architectural services. It is fair for the
Client and the Architect, as the fee is determined by the cost of the Project, which cost the
Client is willing to undertake. It is flexible and easy to apply, since changes, additions or
deductions of the work demanded by the Project or required by the Client would not require
an amendment of the service agreement.
2.2 Multiple of Direct Personnel Expenses
This cost-based method of compensation is usually applicable only to non-creative work,

such as accounting, secretarial, research, data gathering, supervision, preparation of reports
or work of repetitive nature. This method does not account for creative work because the
value of a creative design cannot be measured by the length of time the designer has spent
on his work.
This method may, however, be applied for engagements of pre-design and pre-planning
services, as well as the preparation of background studies, supervision of work and other
works that the Landscape Architect may perform other than the regular design, specialized
design and allied services. The computation is made by adding all costs of technical services
(man-hours x rate) and multiplying it by a multiplier to account for overhead and profit. This
multiplier may range from 2.0 to 3.0, depending on the office set-up, overhead, experience of
the Landscape Architect and the Project’s complexity.
Other items such as cost of transportation, living and housing allowances of foreign
Consultants and the like are to be charged to the Client. At the start of the commission, the
Landscape Architect shall make known to the Client the rate of professionals and personnel
who would be assigned to the Project and the multiplier that has to be applied.
Formula for Computation

Assume A is Landscape Architect’s rate per hour;
C is Consultant’s rate per hour
T is rate per hour of technical support staff involved in the Project
N1, N2, N3 number of hrs spent by Landscape Architect, Consultants and support staff
M is multiplier, 2.0 to 3.0
R reimbursable expenses (e.g. transportation, housing, per diem)
Direct Cost = AN1 + CN2 + TN3

Fee = Direct Cost x Multiplier
Total Fee
charged to = Fee + R, net of tax
the Client
Annex B. Methods of Compensation PALA Standards of Professional Practice p 03
2.3 Professional Fee Plus Expenses
This method of compensation is used when the work involves a series of Projects. A fixed
sum over and above the fee for the Landscape Architect’s technical time and overhead is
established beforehand. In this method the general scope of work is necessary to determine
an equitable fee.
2.4 Lump sum or Fixed Fee
Some government agencies require a contract that establishes a fixed sum for architectural
and engineering services. This method is often detrimental to the Client and the Landscape
Architect.
It is unfavorable to the Landscape Architect since his costs may exceed the agreed amount.
It is critical to the Client since any change he makes, either during the design or construction
stage, may add to the cost of construction and the Landscape Architect’s work.
Consequently, every time a change is made, the Landscape Architect and the Client would
have to supplement the contract to include the additional fee and time involved.
Considering the bureaucracy of the government and large corporations, supplementing the
original agreement may entail loads of paperwork and effort. Hence, the work of the
Landscape Architect is bound to be delayed and the timetable for the Project upset.
2.5 Per Diem Plus Reimbursable Expense
In some cases, a Client may request the Landscape Architect to do work that would require
his personal time, such as attending board meetings or conferences, ocular inspection of
potential sites, or confer with others regarding prospective investments or ventures. For
these, the Landscape Architect may be paid on a per diem basis, plus out-of-pocket
expenses for travel, accommodations and meals, long distance telephone calls, secretarial
services and the like, if any.
2.6 Mixed Methods of Compensation
These PALA Documents provide for more than one method of compensation on any
particular Project. Each Project should be examined to determine the most appropriate
method of compensation. These methods may also be combined to arrive at a mutually
beneficial arrangement.
E.g., Pre-Design services and construction supervision could be compensated on a multiple

of direct personnel cost basis, while the regular, specialized and allied design services
could be compensated on a percentage of construction cost basis.
A nnex C
Master Format for a Landscape
Architect’s Agreement
Why Mind your Contract? The prospect for profit or loss hinges on a comprehensive and well written
agreement for services between the Landscape Architect and the Client. The requirement for services is
Project-specific. Hence, an agreement should be tailor-made for it. This master format itemizes in broad-
scope the essential elements of a service agreement based on the best practices available. The Landscape
Architect, in writing out an agreement, should strive to have an agreement that adequately covers all grounds
possible, avoiding ambiguities, without using ‘legalese’ and non-essential clauses.
What to Do with a Client-Prescribed Contract? Some large corporate and institutional Clients prescribe a
pro-forma contract, some clauses thereof may be disadvantageous to the Landscape Architect. The
Landscape Architect should negotiate with the Client’s technical and legal departments to have a mutually
beneficial contract. The following items are highly recommended in a Landscape Architect’s contract.
1.0 Definition of Terms
1.1 Project. Define its boundaries, area and location

1.2 Parties. Define the contracting parties and signatories
1.3 Definition of Terms. Define terms used in the contract
1.4 Points of Assumption. Given any unknown variables, post the assumptions that may bear
on the proposed schedule and cost of services (e.g. quality of data available, Project area
subject to survey verification, US$ exchange rate if foreign-currency denominated contract)
2.0 Scope of Work and Target Output Documents
2.1 Scope of Work. Itemize work according to phases

2.2 Target Output Documents. Itemize the outputs by phase of work, specify the formats and
number of sets in which the outputs are to be submitted.
2.3 Excluded Services. Identify exclusions such as work normally done by others (e.g.,
geodetic surveys, building architecture, detailed engineering of work items); work of
proprietary products and processes (e.g., swimming pool design, design of faux rockwork); or
work which the landscape architect is capable of doing but is a Project-specific exclusion in
the agreement (e.g., land planning, construction super-vision)
3.0 Consultants’ Work Schedule

Set out the Landscape Architect’s proposed work schedule according to the phases of work. A bar
chart is occasionally required.
4.0 The Client’s Responsibilities

Itemize the Client’s responsibilities and obligations in the Project (e.g., provision of data and Project
brief, designate representative(s) for the Project, payment of reimbursable over and above the
professional fee, escalation costs if any, ensuring the safety of the Landscape Architect’s staff for
travel to and from, and while in, the Project site, and acknowledgement of credits and intellectual
property).
Annex C. Master Format Landscape Architect’s Agreement PALA Standards of Professional Practice p 02
5.0 The Consultant’s (Landscape Architect’s) Responsibilities

Itemize the Landscape Architect’s responsibilities (e.g., completion of work, assignment of qualified
personnel, confidentiality of information, none engagement of activities that have a conflict of interest)
6.0 Professional Fee and Manner of Payment
6.1 Fee. Itemize the fee according to the phases of work, with fees expressly stipulated as being
net of tax to the Landscape Architect.
6.2 Manner of Payment. Set out the manner of progress payments in tranches according to
work accomplished.
7.0 Reimbursable Costs Associated to the Project

Itemize which reimbursable costs are for the Client’s account, and prescribe their method of
computation and manner of payment.
8.0 Modifications to the Scope of Work

Set out the conditions for treating modifications (i.e., change and variation orders) to the original
scope of work, if any.
9.0 Termination of Agreement

Set out the conditions and manner by which, the Agreement may be terminated by either party, and
the payment of the Consultant’s work in quantum merit.
10.0 Intellectual Property Rights

Set out the conditions for the acknowledgment, credit and use of the Landscape Architect’s work as
intellectual property.
11.0 Effectivity
11.1 Agreement’s Effectivity. Often stipulated as the date of signing
11.2 Effectivity of the Consultant’s (Landscape Architect’s) Work Schedule. Usually set out
as the date by which the Consultant has received the necessary Project brief, initial payment
and notice to proceed.
Notary’s Acknowledgment. At the end of the contract.
Annexes. As required.
These may include the Terms of Reference (TOR), the Client’s Project Brief with maps, or the Client’s
handwritten instructions or annotations. Large complex Projects may have a Client-supplied, but mutually
agreed upon, General Conditions annexed, setting out the conditions under which the Consultant is to render
service.
Annex D
Supplementary Guidelines for
Foreign-Currency Denominated Agreements
1.0 Modes of Globalized Trade in Services. The globalization of trade in services under the General
Agreement for Trade in Services (GATS) will have a long-term impact on how Landscape Architects
in the Philippines would practice within the country and overseas. The following are the different
modes of globalization of trade in services.
Mode 1. Cross-Border Trade. Refers to a service from a foreign professional that crosses
Philippine borders without the physical presence of the foreigner; or conversely, a Filipino
professional that crosses foreign borders without the physical presence of the Filipino.
Mode 2. Consumption Abroad. Refers to a Filipino travelling overseas and securing

professional services from a foreign market, or conversely; a foreign professional
travelling into the Philippines and securing professional services thereat.
Mode 3. Commercial Presence. Refers to the presence of the name and office of a foreign
professional in the Philippines, or conversely, the presence of the name and office of a
Filipino landscape architect in a foreign country.
Mode 4. Movement of a Natural Person. The actual presence of a foreign professional in the
Philippines, practicing landscape architecture in the country, or conversely; the actual
presence of a Filipino landscape architect in a foreign country, practicing his profession in
that country.
2.0 Foreign-Currency Denominated Agreements. A variety of conditions exist for which a foreign-
currency denominated agreement is advantageous to the Landscape Architect. Agreements made in
a foreign country are usually denominated in a foreign currency, often in the most stable currency of
choice, the United States Dollar. The Landscape Architect has to verify local banking rules and
regulations as each country may have specific restrictions in the repatriation or remittances of foreign
currency outside their borders. There may be instances where a foreign Client, having a Project
located outside the Philippines, requires the services of a Filipino Landscape Architect for work to be
performed in the Philippines.
Annex E
Glossary of Terms
A&E design services Complete architectural design services including building
architectural design supported by civil, structural, sanitary, electrical
and mechanical engineering design in one complete package.
advocacy work which includes, but is not necessarily limited to, community
organizing, public promotions and media appearances, and
legislative lobbying for the purpose of obtaining administrative and
legislative action, public awareness and support for an issue or
cause; most of advocacy work is effective when done as part of a
non-government organization (NGO), a movement or coalition which
enjoys funding support for advocated issues.
approved agency estimate (AAE) the total estimated cost of a Project as reasonably established by
design and against which proposed bids are benchmarked and
evaluated.
bank overdraft rate the prevailing rate or penalty which a bank charges an account for an
amount to be drawn from it in which there are no sufficient funds in
the balance.
bid tender a proposal or bid to undertake a Project for a specified amount.
bid bulletin a notice of new instructions, clarification or supplementary

information prepared by the consultant and issued to bidders prior to
their submission of bid tenders.
basic rate rate of compensation of the consultant’s personnel.
billing rate basic rate X a multiplier; the rate for which the Client is billed.
Bill of Quantities, BOQ prepared as part of a Project’s Contract Documents, usually but not
necessarily by a registered quantity surveyor; the bill of quantities
itemizes the Project’s various work items in spread-sheet format with
corresponding costs for each; hardscape and softscape work items
carry separate BOQs and are usually accompanied by a
Consolidated BOQ which sums up the total work items.
commission Project or engagement.
conflict of interest a situation of anti-trust in which simultaneously opposing interests

make it impossible for rendering an impartial judgment or service, as
for instance, when a supplier of planting materials is also the
landscape designer or when a landscape architect who is designing
for a Project also takes commission income from suppliers of
materials or products for the same Project; in professional practice,
engaging in activities that are a conflict of interest is considered
unethical.
Contract Documents a set of bid-ready documents generated as part of design; the

documents include complete plans and drawings, the Technical
Specifications, Bills of Quantities and the approved agency Cost
Estimate of the Project. Large and complex Projects often require
separate General and Specific Conditions made part of the set.
Annex E. Glossary PALA Standards of Professional Practice p 02
contracts administrator a specialist dedicated to the evaluation and monitoring of service and
construction contracts insofar as these concern effectivity,
modifications, payment schedules and deadlines among other
matters; for large and complex Projects the contracts administrator is
a dedicated position, attached in a sensitive advisory capacity to the
Project Manager
design development a phase of the detailed design process which entails generating
plans, elevations, and other drawings, and outline specifications
meant to fix and illustrate the size, quality and character of the
entire Project in its essence as to kind of materials, structures and
other such related work as may be required.
detailed design generation of design in sufficient detail that the kind of materials,
finishes and character are being set and frozen
detailed engineering detailed design of a Project necessary to bring the design to

completion to include all aspects of engineering (e.g. civil, structural,
sanitary, plumbing, HVAC, lighting and electrical, irrigation)
dummy a person who allows his name and signature to be used in abet-ting
the illegal practice of a profession; most dummies hold only token
shares of ownership and do not own controlling shares in a
partnership or corporation
environmental impact assessment (EIA), a study required to be generated by the Client for Projects
that are known to create a negative impact on the environment
or are to be located in an environmentally sensitive area; the study
scopes the range of both positive and negative impacts and
recommends mitigating measures for the negative impacts; it also
predicts the magnitude of these impacts on the environment. It is the
Environmental Management Bureau (EMB) of the Department of
Environment and Natural Resources (DENR) which has review
powers over the EIAs to be submitted.
environmental baseline study may either be a stand-alone study or a component input for an EIA;
depending upon the scope of the proposed Project, the baseline
study covers ground in both qualitative and quantitative assessment
of a site’s attributes (e.g. landforms and scenic resources,
geotechnics, biota, cultural heritage, demographics, existing land
uses, vegetative cover, hydrogeology).
environmental compliance an approval by the DENR to the proposed Project’s propo-

certificate (ECC) nents to proceed with the development; Projects with negative
impacts but for which mitigating measures are deemed feasible are
issued ECCs, often with guarantees from the proponent attached as
collateral in an Environmental Guarantee Fund (EGF).
environmental guarantee fund (EGF), a fund amount which a Project’s proponent posts as
collateral in exchange for being given the DENR’s approval to
develop. Put in escrow, the fund is solely used for any untoward
eventuality of the Project’s failure that may cause damage to the
environment and to communities; the cost of clean-up and
rehabilitation and compensation to those affected are drawn from the
fund.
equipment complement the various equipment and computer application software which a
consultant or a Contractor is expected to have for it to be able to
carry out its service under an agreement; some invitations for
prequalification or proposals require submission of a schedule of
equipment.
force majeure a condition beyond the control of the Client or the consultant /
Contractor which excuses the parties from fulfillment of an
agreement in whole or in part such as an act of God (e.g. natural
disasters), wars and rebellions, labor strikes or extreme currency
fluctuations.
geotechnical report findings by commissioned geotechnical engineers which report on

the quality of subsurface soil and bedrock insofar as their suitability
for building and road foundations is concerned, as well
as identifying onsite the most probable sources of groundwater and
their estimated yields; these reports are usually required as a
prerequisite to land and site planning and are used as background
studies for the preparation of EIAs.
geohazards assessment report (GAR), findings by commissioned geologists which report on the
potential geologic hazards of the proposed Project’s site; toge-
ther with the geotechnical report, the GAR often is a parallel
background study to an EIA and may be a prerequisite for it
depending upon a Project’s size and complexity.
General Conditions a separate document often part of the Contract Documents for large
and complex Projects which sets out the general conditions (e.g.
conformity to safety and labor codes, official workdays,
arbitration, which documents of the contract shall prevail in the event
of any conflict of interpretation, acceptable variances from the norm,
applicable standards) within which the consultant or Contractor is to
render service under an agreement.
government Project a Project owned and operated by an agency of government, a

government owned or controlled corporation (GOCC), a joint-venture
or a foreign-assisted / foreign-funded Project in which government
has a stake.
gross rental pretax rental receipts.
Inception Report in preparing background or special studies, it is the first report made
by the consultant, usually followed by a Prefinal and the Final Report
in-house within easy access of an office, such as employed personnel (e.g.

permanent or contractual)
Initial Environmental Examination (IEE), similar to an EIA but more abbreviated; it is the Environ-
mental Management Bureau (EMB) which has review powers over
IEEs submitted. An IEE is often required for locations where similar
Projects as that being proposed exist nearby.
invitation for prequalification calls by an agency of government, institution or corporation to

shortlist a pool of Consultants and Contractors; the invitations specify
which documents are to be submitted for review (e.g. company
profile, financial statements) in the prescribed format; those accepted
in the prequalification process are usually the accredited entities
invited to propose for ensuing Projects. Accreditation has a lifespan
(e.g. 3, 5 years), after which invita-tions for prequalification are
again called.
modifications to the scope of work work outside of the scope of work of the original service contract yet
mutually agreed upon by Client and consultant to be consi-dered
either as an addition or change order, or may in cases, even be
subtracted from the original contract agreement.
multiplier, billing factor a factor between 2.0 and 3.0 normally applied to a consultant’s
basic minimum fee or direct time rate charges to allow for over-
head and a reasonable profit; the multiplier is used to arrive at the
consultant’s total fee.
net of tax the amount net to the Consultant, with the withholding tax com-
ponent assumed by the Client; the fees net are not however exempt
of the Consultant’s income tax.
nomograph a curve graph used as a guide to establish a consultant’s fee as a

percentage of total development cost of a particular type of Project.
Operations and Maintenance (O&M), a regime or system by which a facility which has been
turned-over is expected to operate and continue into the future.
O&M regimes subsume under it a number of maintenance systems,
including grounds keeping maintenance.
outsource obtaining additional personnel from an on-call pool; many small

to medium practices retain their competitiveness by resorting to this
trend; the need for outsourcing usually is on a Project-basis.
per diem a flat rate per day for each of the consultant’s personnel charged to a
Client for official visits to the Project site or for assignments
elsewhere ; rates vary with each category of expertise. The per diem
is net to the personnel and is over and above reimbursable costs for
travel, meals and accommodation. Certain agencies of government
have their specific definitions of per diem.
practice in a strict sense, the practice of the profession as a self-employed

independent service provider; the Landscape Architecture Law (RA
9053) has an expanded definition of practice to include certain
salaried positions such as in teaching and grounds keeping. A
practice may be a sole-proprietorship, a partnership or corporation.
Partnerships and corporations registered for the practice of
Landscape Architecture must, by law, have at least eighty (80%) of
its members being properly registered as landscape architects.
pre-construction conference in construction management, a conference organized either by the

selected Contractor or the Client, prior to commencing any
construction activity; its purpose is to initiate lines of authority,
protocol and communications that would govern over the Project’s
construction.
Project brief a document issued by a Client describing the Project for which
consulting or contracting services are required; it contains plans and
maps, a Project history and sets the context for the Project. The brief
is often issued together with the Terms of Reference (TOR).
pro rata rated or computed in proportion.
Project turn-over formal transfer of responsibility over a Project to the Client by the
Contractor; the turn-over often is marked by the submission by
the Contractor of documents (e.g. As-built Plans, Operations and
Maintenance manuals).
proprietary products / processes products or processes covered by registered trademarks or patents

including the fabrication and installation of work onsite (e.g.
swimming pools and specialized water features, faux rockwork,
special finishes, play equipment) which technically are outside the
scope and coverage of Landscape Architecture design but
interfacing with it.
provisional temporary and tentative, still requiring finalizing as in a schedule or

budget.
quantity surveyor a specialist who prepares analyses, accounting, estimates and

evaluation of costs for a Project’s various work items; the term
is largely of British usage rarely used in the Philippines; its
nearest equivalent is loosely known as quantity estimator or cost
engineer; in the Commonwealth, quantity surveying is a register-
ed profession with quantity surveyors acting in a sensitive advisory
capacity to the Project Manager.
quantum merit a provision in a service agreement which entitles the consultant

to be compensated for work actually accomplished up to the
point when the agreement has either been suspended or terminated
for cause.
reprographics items such as CAD plotting, photocopying, photo printing, digital

imaging and reproduction, binding and mounting among others.
resident staff staff of several disciplines dedicated to a Project’s day-to-day

construction management, often based in or near the Project site
and reporting to a Project Manager.
social costs costs part of overhead which a consultant or Contractor reckons with
as part of a service agreement for a Project which includes employee
benefits (e.g. vacation and sick leaves, bonuses), cost
of living allowances, employer’s share of annual gratuity and
medicare contributions for personnel.
staffing complement the various personnel which a consultant or a Contractor is expected

to have for it to be able to carry out its service under an agreement; ;
some invitations for prequalification or proposals require submission
of a schedule of staff.
subletting of contract assigning a service or construction contract, in whole or in part, to a

party other than the winning bidder to whom the contract was
originally awarded; Clients often restrict such a situation and is only
allowed in special cases given the Client’s prior consent.
Technical Specifications a document part of the Contract Documents which specifies the
quality of materials and products, their finishes and workmanship,
sources and testing procedures, installation and methods of
construction. Large and complex Projects require full-dress
specifications while for simple ones, abbreviated specifications may
be adequate. Specifications may be written in a number of
internationally accepted formats such as in CSI (Construction
Specifications Institute), in BS (British Standards) or in a custom
hybrid format.
Terms of Reference (TOR) a document usually issued by a Client for the purpose of giving a
consultant or a Contractor a prescribed format of what a proposal for
services should address and contain, how and when these should
be submitted.
tranche a partial release of funds.
unit rate the cost of an item at its basic unit (e.g. per hour, piece or unit, cubic
meter, square meter, meter, liter, ton).
work abandoned work unilaterally stopped by a consultant or Contractor without

benefit of formal notice to the Client; the reasons for such often are
mounting losses or inadequate capability for Project delivery.
work stoppage a pause in the progress of work of the consultant or a Contractor

owing to factors such as force majeure, or as may be requested by
the Client, the consultant or the Contractor; under a work stoppage,
billing for amounts for work is temporarily suspended.
Annex F
Republic of the Philippines

Congress of the Philippines
Metro Manila
Twelfth Congress
Second Regular Session
Begun and held in Metro Manila, on Monday, the Twenty-second day of
July, Two Thousand Two.
[ REPUBLIC ACT NO. 9184 ]

AN ACT PROVIDING FOR THE MODERNIZATION,
STANDARDIZATION AND REGULATION OF THE
PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR
OTHER PURPOSES
Republic Act 9184

Government Procurement Reform Act
Be it enacted by the Senate and the House of Representatives of the Philippines in

Congress assembled:
ARTICLE I
GENERAL PROVISIONS
SECTION 1. Short Title. - This Act shall be known as the "Government

Procurement Reform Act."
SEC. 2. Declaration of Policy. - It is the declared policy of the State to promote the
ideals of good governance in all its branches, departments, agencies, subdivisions, and
instrumentalities, including government-owned and/or controlled corporations, and local
government units.
SEC. 3. Governing Principles on Government Procurement. - All procurement of

the national government, its departments, bureaus, offices and agencies, including state
universities and colleges, government-owned and/or controlled corporations, government
financial institutions and local government units, shall, in all cases, be governed by these
principles:
a) Transparency in the procurement process and in the implementation of
procurement contracts.
b) Competitiveness by extending equal opportunity to enable private contracting
parties who are eligible and qualified to participate in public bidding.
c) Streamlined procurement process that will uniformly apply to all government
procurement. The procurement process shall be simple and made adaptable to advances
in modern technology in order to ensure an effective and efficient method.
d) System of accountability where both the public officials directly or indirectly
involved in the procurement process as well as in the implementation of procurement
contracts and the private parties that deal with government are, when warranted by
circumstances, investigated and held liable for their actions relative thereto.
Annex F. Government Procurement Reform Act PALA Standards of Professional Practice p 02
e) Public monitoring of the procurement process and the implementation of awarded

contracts with the end in view of guaranteeing that these contracts are awarded pursuant to
the provisions of this Act and its implementing rules and
regulations, and that all these contracts are performed strictly according to specifications.
SEC. 4. Scope and Application. - This Act shall apply to the Procurement of
Infrastructure Projects, Goods, and Consulting Services, regardless of source of funds,
whether local or foreign, by all branches and instrumentalities of government, its
departments, offices and agencies, including government-owned and/or -controlled
corporations and local government units, subject to the provisions of Commonwealth Act
No. 138. Any treaty or international or executive agreement affecting the subject matter of
this Act to which the Philippine government is a signatory shall be observed.
SEC. 5. Definition of Terms. - For purposes of this Act, the following terms or
words and phrases shall mean or be understood as follows:
(a) Approved Budget for the Contract (ABC) - refers to the budget for the contract
duly approved by the Head of the Procuring Entity, as provided for in the General
Appropriations Act and/or continuing appropriations, in the case of National Government
Agencies; the Corporate Budget for the contract approved by the governing Boards,
pursuant to E.O. No. 518, series of 1979, in the case of Government-Owned and/or
Controlled Corporations, Government Financial Institutions and State Universities and
Colleges; and the Budget for the contract approved by the respective Sanggunian, in the
case of Local Government Units.
(b) BAC - refers to the Bids and Awards Committee established in accordance with
Article V of this Act.
(c) Bidding Documents - refer to documents issued by the Procuring Entity as the
basis for Bids, furnishing all information necessary for a prospective bidder to prepare a bid
for the Goods, Infrastructure Projects, and Consulting Services to be provided.
(d) Bid - refers to a signed offer or proposal submitted by a supplier, manufacturer,
distributor, contractor or consultant in response to the Bidding Documents.
(e) Competitive Bidding - refers to a method of procurement which is open to
participation by any interested party and which consists of the following processes:
advertisement, pre-bid conference, eligibility screening of prospective bidders, receipt and
opening of bids, evaluation of bids, post-qualification, and award of contract, the specific
requirements and mechanics of which shall be defined in the IRR to be promulgated under
this Act.
(f) Consulting Services - refer to services for Infrastructure Projects and other types
of projects or activities of the Government requiring adequate external technical and
professional expertise that are beyond the capability and/or capacity of the government to
undertake such as, but not limited to: (i) advisory and review services; (ii) pre-investment or
feasibility studies; (iii) design; (iv) construction supervision; (v) management and related
services; and (vi) other technical services or special studies.
(g) G-EPS - refers to the Government Electronic Procurement System as provided in
Section 8 of this Act.
(h) Goods - refer to all items, supplies, materials and general support services,
except consulting services and infrastructure projects, which may be needed in the
transaction of public businesses or in the pursuit of any government undertaking, project or
activity, whether in the nature of equipment, furniture, stationery, materials for construction,
or personal property of any kind, including non-personal or contractual services such as the
repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial,
security, and related or analogous services, as well as procurement of materials and

supplies provided by the procuring entity for such services.
(i) GPPB - refers to the Government Procurement Policy Board established in
accordance with Article XX of this Act.
(j) Head of the Procuring Entity - refers to: (i ) the head of the agency or his duly
authorized official, for national government agencies; (ii) the governing board or its duly
authorized official, for government-owned and/or controlled corporations; or (iii) the local
chief executive, for local government units. Provided, That in a department, office or
agency where the procurement is decentralized, the Head of each decentralized unit shall
be considered as the Head of the Procuring Entity subject to the limitations and authority
delegated by the head of the department, office or agency.
(k) Infrastructure Projects - include the construction, improvement, rehabilitation,
demolition, repair, restoration or maintenance of roads and bridges, railways, airports,
seaports, communication facilities, civil works components of information technology
projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid
waste management systems, shore protection, energy/power and electrification facilities,
national buildings, school buildings, hospital buildings and other related construction
projects of the government.
(l) IRR - refer to the implementing rules and regulations to be promulgated in
accordance with Section 75 this Act.
(m) Portal - refers to a website that aggregates a wide variety of content for the
purpose of attracting a large number of users.
(n) Procurement - refers to the acquisition of Goods, Consulting Services, and the
contracting for Infrastructure Projects by the Procuring Entity. Procurement shall also
include the lease of goods and real estate. With respect to real property, its procurement
shall be governed by the provisions of Republic Act No. 8974, entitled "An Act to Facilitate
the Acquisition of Right-of-Way Site or Location for National Government Infrastructure
Projects and for Other Purposes", and other applicable laws, rules and regulations.
(o) Procuring Entity - refers to any branch, department, office, agency, or
instrumentality of the government, including state universities and colleges, government-
owned and/or -controlled corporations, government financial institutions, and local
government units procuring Goods, Consulting Services and Infrastructure Projects.
SEC. 6. Standardization of Procurement Process and Forms. - To systematize

the procurement process, avoid confusion and ensure transparency, the procurement
process, including the forms to be used, shall be standardized insofar as practicable.
For this purpose, the GPPB shall pursue the development of generic procurement
manuals and standard bidding forms, the use of which once issued shall be mandatory
upon all Procuring Entities.
ARTICLE II
PROCUREMENT PLANNING
SEC. 7. Procurement Planning and Budgeting Linkage. - All procurement should

be within the approved budget of the Procuring Entity and should be meticulously and
judiciously planned by the Procuring Entity concerned. Consistent with government fiscal
discipline measures, only those considered crucial to the efficient discharge of
governmental functions shall be included in the Annual Procurement Plan to be specified in
the IRR.
No government Procurement shall be undertaken unless it is in accordance with the

approved Annual Procurement Plan of the Procuring Entity. The Annual Procurement Plan
shall be approved by the Head of the Procuring Entity and must be consistent with its duly
approved yearly budget. The Annual Procurement Plan shall be formulated and revised
only in accordance with the guidelines set forth in the IRR. In the case of Infrastructure
Projects, the Plan shall include engineering design and acquisition of right-of-way.
ARTICLE III
PROCUREMENT BY ELECTRONIC MEANS
SEC. 8. Procurement By Electronic Means. - To promote transparency and

efficiency, information and communications technology shall be utilized in the conduct of
procurement procedures.
Accordingly, there shall be a single portal that shall serve as the primary source of
information on all government procurement. The G-EPS shall serve as the primary and
definitive source of information on government procurement. Further, the GPPB is
authorized to approve changes in the procurement process to adapt to improvements in
modern technology, provided that such modifications are consistent with the provisions of
Section 3 of this Act.
To take advantage of the significant built-in efficiencies of the G-EPS and the
volume discounts inherent in bulk purchasing, all Procuring Entities shall utilize the G-EPS
for the procurement of common supplies in accordance with the rules and procedures to be
established by the GPPB.
With regard to the procurement of non-common use items, infrastructure projects
and consulting services, agencies may hire service providers to undertake their electronic
procurement provided these service providers meet the minimum requirements set by the
GPPB.
SEC. 9. Security, Integrity and Confidentiality. - The G-EPS shall ensure the
security, integrity and confidentiality of documents submitted through the system. It shall
include a feature that provides for an audit trail for on-line transactions and allow the
Commission on Audit to verify the security and integrity of the systems at any time.
ARTICLE IV
COMPETITIVE BIDDING
SEC. 10. Competitive Bidding. - All Procurement shall be done through

Competitive Bidding, except as provi ded for in Article XVI of this Act.
ARTICLE V
BIDS AND AWARDS COMMITTEE
SEC. 11. The BAC and its Composition. - Each procuring entity shall establish a
single BAC for its procurement. The BAC shall have at least five (5) members, but not more
than seven (7) members. It shall be chaired by at least a third ranking permanent official of
the procuring entity other than its head, and its composition shall be specified in the IRR.
Alternatively, as may be deemed fit by the head of the procuring entity, there may be
separate BACs where the number and complexity of the items to be procured shall so
warrant. Similar BACs for decentralized and lower level offices may be formed when
deemed necessary by the head of the procuring entity.
The members of the BAC shall be designated by the Head of Procuring Entity.
However, in no case shall the approving authority be a member of the BAC.
Unless sooner removed for a cause, the members of the BAC shall have a fixed
term of one (1) year reckoned from the date of appointment, renewable at the discretion of
the Head of the Procuring Entity. In case of resignation, retirement, separation, transfer, re-
assignment, removal, the replacement shall serve only for the unexpired term: Provided,
That in case of leave or suspension, the replacement shall serve only for the duration of the
leave or suspension. For justifiable causes, a member shall be suspended or removed by
the Head of the Procuring Entity.
SEC. 12. Functions of the BAC. - The BAC shall have the following functions:
advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid
conferences, determine the eligibility of prospective bidders, receive bids, conduct the
evaluation of bids, undertake post-qualification proceedings, recommend award of
contracts to the Head of the Procuring Entity or his duly authorized representative:
Provided, that in the event the Head of the Procuring Entity shall disapprove such
recommendation, such disapproval shall be based only on valid, reasonable and justifiable
grounds to be expressed in writing, copy furnished the BAC; recommend the imposition of
sanctions in accordance with Article XXIII, and perform such other related functions as may
be necessary, including the creation of a Technical Working Group from a pool of technical,
financial and/or legal experts to assist in the procurement process.
In proper cases, the BAC shall also recommend to the Head of the Procuring Entity
the use of Alternative Methods of Procurement as provided for in Article XVI hereof.
The BAC shall be responsible for ensuring that the Procuring Entity abides by the
standards set forth by this Act and the IRR, and it shall prepare a procurement monitoring
report that shall be approved and submitted by the Head of the Procuring Entity to the
GPPB on a semestral basis.
The contents and coverage of this report shall be provided in the IRR.
SEC. 13. Observers. - To enhance the transparency of the process, the BAC shall,
in all stages of the procurement process, invite, in addition to the representative of the
Commission on Audit, at least two (2) observers to sit in its proceedings, one (1) from a
duly recognized private group in a sector or discipline relevant to the procurement at hand,
and the other from a non-government organization: Provided, however, That they do not
have any direct or indirect interest in the contract to be bid out. The observers should be
duly registered with the Securities and Exchange Commission and should meet the criteria
for observers as set forth in the IRR.
SEC. 14. BAC Secretariat. - To assist the BAC in the conduct of its functions, the
Head of the Procuring Entity shall create a Secretariat that will serve as the main support
unit of the BAC. The Head of the Procuring Entity may also designate an existing organic
office within the agency to serve as the Secretariat.
SEC. 15. Honoraria of BAC Members. - The Procuring Entity may grant payment
of honoraria to the BAC members in an amount not to exceed twenty five percent (25%) of
their respective basic monthly salary subject to availability of funds. For this purpose, the
Department of Budget and Management (DBM) shall promulgate the necessary guidelines.
SEC 16. Professionalization of BAC, BAC Secretariat and Technical Working

Group Members. - The GPPB shall establish a sustained training program for developing
the capacity of the BACs, BAC Secretariats and Technical Working Groups of Procuring
Entities, and professionalize the same.
ARTICLE VI
PREPARATION OF BIDDING DOCUMENTS
SEC. 17. Form and Contents of Bidding Documents. - The Bidding Documents
shall be prepared by the Procuring Entity following the standard forms and manuals
prescribed by the GPPB. The Bidding Documents shall include the following:
(a) Approved Budget for the Contract;
(b) Instructions to Bidders, including criteria for eligibility, bid evaluation and post-
qualification, as well as the date, time and place of the pre-bid Conference (where
applicable), submission of bids and opening of bids;
(c) Terms of Reference;
(d) Eligibility Requirements;
(e) Plans and Technical Specifications;
(f) Form of Bid, Price Form, and List of Goods or Bill of Quantities;
(g) Delivery Time or Completion Schedule;
(h) Form and Amount of Bid Security;
(i) Form and Amount of Performance Security and Warranty; and,
(j) Form of Contract, and General and Special Conditions of Contract.
The Procuring Entity may require additional document requirements or specifications
necessary to complete the information required for the bidders to prepare and submit their
respective bids.
SEC. 18. Reference to Brand Names. - Specifications for the Procurement of

Goods shall be based on relevant characteristics and/or performance requirements.
Reference to brand names shall not be allowed.
SEC. 19. Access to Information. - In all stages of the preparation of the Bidding
Documents, the Procuring Entity shall ensure equal access to information. Prior to their
official release, no aspect of the Bidding Documents shall be divulged or released to any
prospective bidder or person having direct or indirect interest in the project to be procured.
ARTICLE VII
INVITATION TO BID
SEC. 20. Pre-Procurement Conference. - Prior to the issuance of the Invitation to

Bid, the BAC is mandated to hold a pre-procurement conference on each and every
procurement, except those contracts below a certain level or amount specified in the IRR,
in which case, the holding of the same is optional.
The pre-procurement conference shall assess the readiness of the procurement in
terms of confirming the certification of availability of funds, as well as reviewing all relevant
documents in relation to their adherence to law. This shall be attended by the BAC, the unit
or officials who prepared the bidding documents and the draft Invitation to Bid, as well as
consultants hired by the agency concerned and the representative of the end-user.
SEC. 21. Advertising and Contents of the Invitation to Bid. - In line with the
principle of transparency and competitiveness, all Invitations to Bid for contracts under
competitive bidding shall be advertised by the Procuring Entity in such manner and for such
length of time as may be necessary under the circumstances, in order to ensure the widest
possible dissemination thereof, such as, but not limited to, posting in the Procuring Entity's
premises, in newspapers of general circulation, the G-EPS and the website of the
Procuring Entity, if available. The details and mechanics of implementation shall be
provided in the IRR to be promulgated under this Act.
The Invitation to Bid shall contain, among others:
(a) A brief description of the subject matter of the Procurement;
(b) A general statement on the criteria to be used by the Procuring Entity for the
eligibility check, the short listing of prospective bidders, in the case of the Procurement of
Consulting Services, the examination and evaluation of Bids, and
post-qualification;
(c) The date, time and place of the deadline for the submission and receipt of the
eligibility requirements, the pre-bid conference if any, the submission and receipt of bids,
and the opening of bids;
(d) The Approved Budget for the Contract to be bid;
(e) The source of funds;
(f) The period of availability of the Bidding Documents, and the place where these
may be secured;
(g) The contract duration; and,
(h) Such other necessary information deemed relevant by the Procuring Entity.
SEC. 22. Pre-bid Conference. - At least one pre-bid conference shall be conducted
for each procurement, unless otherwise provided in the IRR. Subject to the approval of the
BAC, a pre-bid conference may also be conducted upon the written request of any
prospective bidder.
The pre-bid conference(s) shall be held within a reasonable period before the
deadline for receipt of bids to allow prospective bidders to adequately prepare their bids,
which shall be specified in the IRR.
ARTICLE VIII
RECEIPT AND OPENING OF BIDS
SEC. 23. Eligibility Requirements for the Procurement of Goods and

Infrastructure Projects. - The BAC or, under special circumstances specified in the IRR,
its duly designated organic office shall determine the eligibility of prospective bidders for the
procurement of Goods and Infrastructure Projects, based on the bidders' compliance with
the eligibility requirements within the period set forth in the Invitation to Bid. The eligibility
requirements shall provide for fair and equal access to all prospective bidders. The
documents submitted in satisfaction of the eligibility requirements shall be made under oath
by the prospective bidder or by his duly authorized representative certifying to the
correctness of the statements made and the completeness and authenticity of the
documents submitted.
A prospective bidder may be allowed to submit his eligibility requirements
electronically.
However, said bidder shall later on certify under oath as to correctness of the
statements made and the completeness and authenticity of the documents submitted.
SEC. 24. Eligibility Requirements and Short Listing for Consulting Services. -
The eligibility of prospective bidders for the Procurement of Consulting Services shall be
determined by their compliance with the eligibility requirements prescribed for the
Competitive Bidding concerned, within the period stated in the Invitation to Bid. The
eligibility requirements shall provide for fair and equal access to all prospective bidders.
The prospective bidder shall certify under oath as to the correctness of the statements
made, and the completeness and authenticity of the documents submitted.
A prospective bidder may be allowed to submit his eligibility requirements
electronically.
However, said bidder shall later on certify under oath as to correctness of the
statements made and the completeness and authenticity of the documents submitted.
The eligible prospective bidders shall then be evaluated using numerical ratings on
the basis of the short listing requirements prescribed for the Competitive Bidding
concerned, within the period stated in the Invitation to Bid to determine the short list of
bidders who shall be allowed to submit their respective bids.
SEC. 25. Submission and Receipt of Bids. - A bid shall have two (2) components,
namely the technical and financial components which should be in separate sealed
envelopes, and which shall be submitted simultaneously. The bids shall be received by the
BAC on such date, time and place specified in the invitation to bid. The deadline for the
receipt of bids shall be fixed by the BAC, giving it sufficient time to complete the bidding
process and giving the prospective bidders sufficient time to study and prepare their bids.
The deadline shall also consider the urgency of the procurement involved.
Bids submitted after the deadline shall not be accepted.
Notwithstanding the provisions of this Section and Section 26 of this Act, the GPPB
may prescribe innovative procedures for the submission, receipt and opening of bids
through the G-EPS.
SEC. 26 Modification and Withdrawal of Bids. - A bidder may modify his bid,
provided that this is done before the deadline for the receipt of bids. The modification shall
be submitted in a sealed envelope duly identified as a modification of the original bid and
stamped received by the BAC.
A bidder may, through a letter, withdraw his bid or express his intention not to
participate in the bidding before the deadline for the receipt of bids. In such case, he shall
no longer be allowed to submit another Bid for the same contract either directly or
indirectly.
SEC. 27. Bid Security. - All Bids shall be accompanied by a Bid security, which
shall serve as a guarantee that, after receipt of the Notice of Award, the winning bidder
shall enter into contract with the Procuring Entity within the stipulated time and furnish the
required performance security.
The specific amounts and allowable forms of the Bid security shall be prescribed in
the IRR.
SEC. 28. Bid Validity. - Bids and Bid securities shall be valid for such reasonable
period of time indicated in the Bidding Documents. The duration for each undertaking shall
take into account the time involved in the process of Bid evaluation and award of contract.
SEC. 29. Bid Opening. - The BAC shall publicly open all bids at the time, date, and
place specified in the bidding documents. The minutes of the bid opening shall be made
available to the public upon written request and payment of a specified fee.
ARTICLE IX
BID EVALUATION
SEC. 30. Preliminary Examination of Bids. - Prior to Bid evaluation, the BAC shall
examine first the technical components of the bids using "pass/fail" criteria to determine
whether all required documents are present. Only bids that are determined to contain all
the bid requirements of the technical component shall be considered for opening and
evaluation of their financial component.
SEC. 31. Ceiling for Bid Prices. - The ABC shall be the upper limit or ceiling for the
Bid prices. Bid prices that exceed this ceiling shall be disqualified outright from further
participating in the bidding. There shall be no lower limit to the amount of the award.
SEC. 32. Bid for the Procurement of Goods and Infrastructure Projects. - For
the procurement of Goods and Infrastructure Projects, the BAC shall evaluate the financial
component of the bids.
The bids that passed the preliminary examination shall be ranked from lowest to
highest in terms of their corresponding calculated prices. The bid with the lowest calculated
price shall be referred to as the "Lowest Calculated Bid."
SEC. 33. Bid Evaluation of Short Listed Bidders for Consulting Services. - For
the Procurement of Consulting Services, the Bids of the short listed bidders shall be
evaluated and ranked using numerical ratings in accordance with the evaluation criteria
stated in the Bidding Documents, which shall include factors such as, but not limited to,
experience, performance, quality of personnel, price and methodology. The Bids shall be
ranked from highest to lowest in terms of their corresponding calculated ratings. The Bid
with the highest calculated rating shall be the "Highest Rated Bid." After approval by the
Head of the Procuring Entity of the Highest Rated Bid, the BAC shall invite the bidder
concerned for negotiation and/or clarification on the following items: financial proposal
submitted by the bidder, terms of reference, scope of services, methodology and work
program, personnel to be assigned to the job, services/facilities/data to be provided by the
Procuring Entity concerned, and provisions of the contract. When negotiations with the first-
in-rank bidder fails, the financial proposal of the second rank bidder shall be opened for
negotiations: Provided, That the amount indicated in the financial envelope shall be made
as the basis for negotiations and the total contract amount shall not exceed the amount
indicated in the envelope and the ABC. Whenever necessary, the same process shall be
repeated until the bid is awarded to the winning bidder.
ARTICLE X
POST-QUALIFICATION
SEC. 34. Objective and Process of Post-qualification. - Post-qualification is the

stage where the bidder with the Lowest Calculated Bid, in the case of Goods and
Infrastructure Projects, or the Highest Rated Bid, in the case of Consulting Services,
undergoes verification and validation whether he has passed all the requirements and
conditions as specified in the Bidding Documents.
If the bidder with the Lowest Calculated Bid or Highest Rated Bid passes all the
criteria for post-qualification, his Bid shall be considered the "Lowest Calculated
Responsive Bid," in the case of Goods and Infrastructure or the "Highest Rated Responsive
Bid," in the case of Consulting Services. However, if a bidder fails to meet any of the
requirements or conditions, he shall be "post-disqualified" and the BAC shall conduct the
post-qualification on the bidder with the second Lowest Calculated Bid or Highest Rated
Bid. If the bidder with the second Lowest Calculated Bid or Highest Rated Bid is post-
disqualified, the same procedure shall be repeated until the Lowest Calculated Responsive
Bid or Highest Rated Responsive Bid is finally determined.
In all cases, the contract shall be awarded only to the bidder with the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid.
SEC. 35. Failure of Bidding. - There shall be a failure of bidding if:

a) No bids are received;
b) No bid qualifies as the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid; or,
c) Whenever the bidder with the highest rated/lowest calculated responsive bid
refuses, without justifiable cause to accept the award of contract, as the case may be.
Under any of the above instances, the contract shall be re-advertised and re-bid.
The BAC shall observe the same process and set the new periods according to the same
rules followed during the first bidding. After the second failed bidding, however, the BAC
may resort to negotiated procurement as provided for in Section 53 of this Act.
SEC. 36. Single Calculated/Rated and Responsive Bid Submission. - A single

calculated/rated and responsive bid shall be considered for award if it falls under any of the
following circumstances:
a) If after advertisement, only one prospective bidder submits a Letter of Intent
and/or applies for eligibility check, and meets the eligibility requirements or criteria, after
which it submits a bid, which is found to be responsive to the bidding requirements; .
b) If after the advertisement, more than one prospective bidder applies for eligibility
check, but only one bidder meets the eligibility requirements or criteria, after which it
submits a bid which is found to be responsive to the bidding requirements; or .
c) If after the eligibility check, more than one bidder meets the eligibility
requirements, but only one bidder submits a bid, and its bid is found to be responsive to the
bidding requirements. .
In all instances, the Procuring Entity shall ensure that the ABC reflects the most
advantageous prevailing price for the Government.
ARTICLE XI
AWARD, IMPLEMENTATION AND
TERMINATION OF THE CONTRACT
SEC. 37. Notice and Execution of Award. - Within a period not exceeding fifteen
(15) calendar days from the determination and declaration by the BAC of the Lowest
Calculated Responsive Bid or Highest Rated Responsive Bid, and the recommendation of
the award, the Head of the Procuring Entity or his duly authorized representative shall
approve or disapprove the said recommendation. In case of approval, the Head of the
Procuring Entity or his duly authorized representative shall immediately issue the Notice of
Award to the bidder with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid.
Within ten (10) calendar days from receipt of the Notice of Award, the winning bidder
shall formally enter into contract with the Procuring Entity. When further approval of higher
authority is required, the approving authority for the contract shall be given a maximum of
twenty (20) calendar days to approve or disapprove it.
In the case of government owned and/or controlled corporations, the concerned
board shall take action on the said recommendation within thirty (30) calendar days from
receipt thereof.
The Procuring Entity shall issue the Notice to Proceed to the winning bidder not later
than seven (7) calendar days from the date of approval of the contract by the appropriate
authority. All notices called for by the terms of the contract shall be effective only at the time
of receipt thereof by the contractor.
SEC. 38. Period of Action on Procurement Activities. - The procurement process

from the opening of bids up to the award of contract shall not exceed three (3) months, or a
shorter period to be determined by the procuring entity concerned. Without prejudice to the
provisions of the preceding section, the different procurement activities shall be completed
within reasonable periods to be specified in the IRR.
If no action on the contract is taken by the head of the procuring entity, or by his duly
authorized representative, or by the concerned board, in the case of government owned
and/or controlled corporations, within the periods specified in the preceding paragraph, the
contract concerned shall be deemed approved.
SEC. 39. Performance Security. - Prior to the signing of the contract, the winning
bidder shall, as a measure of guarantee for the faithful performance of and compliance with
his obligations under the contract prepared in accordance with the Bidding Documents, be
required to post a performance security in such form and amount as specified in the
Bidding Documents.
SEC. 40. Failure to Enter into Contract and Post Performance Security. - If, for
justifiable causes, the bidder with the Lowest Calculated Responsive Bid or Highest Rated
Responsive Bid fails, refuses or is otherwise unable to enter into contract with the
Procuring Entity, or if the bidder fails to post the required performance security within the
period stipulated in the Bidding Documents, the BAC shall disqualify the said bidder and
shall undertake post-qualification for the next-ranked Lowest Calculated Bid or Highest
Rated Bid. This procedure shall be repeated until an award is made. However, if no award
is possible, the contract shall be subjected to a new bidding.
In the case of a failure to post the required performance security, the bid security
shall be forfeited without prejudice to the imposition of sanctions prescribed under Article
XXIII.
SEC. 41. Reservation Clause. - The Head of the Agency reserves the right to reject
any and all Bids, declare a failure of bidding, or not award the contract in the following
situations:
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 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 government as defined in the IRR.
SEC. 42. Contract Implementation and Termination. - The rules and guidelines
for the implementation and termination of contracts awarded pursuant to the provisions of
this Act shall be prescribed in the IRR. The rules and guidelines shall include standard
general and special conditions for contracts.
ARTICLE XII
DOMESTIC AND FOREIGN PROCUREMENT
SEC. 43. Procurement of Domestic and Foreign Goods. - Consistent with the
country's obligations under international treaties or agreements, Goods may be obtained
from domestic or foreign sources and the procurement thereof shall be open to all eligible
suppliers, manufacturers and distributors. However, in the interest of availability, efficiency
and timely delivery of Goods, the Procuring Entity may give preference to the purchase of
domestically-produced and manufactured goods, supplies and materials that meet the
specified or desired quality.
ARTICLE XIII
BIDDING OF PROVINCIAL PROJECTS
SEC. 44. Bidding of Provincial Projects. - Priority programs and infrastructure

projects funded out of the annual General Appropriations Act which are intended for
implementation within the province shall be subject to the same public bidding and to the
procurement processes prescribed under this Act. For purposes of this Article, Engineering
District civil works projects, subject to consultation with the concerned Members of
Congress, are included and subsumed in the term "provincial projects" and shall be
governed by this Section and Section 45 hereof.
SEC. 45. Provincial Bidders. - Within five (5) years from the effectivity of this Act, a
contractor who participates in the bidding of provincial priority programs and infrastructure
projects, whose principal office is within the same province, and who submits the lowest bid
among the provincial bidders which is higher than the lowest bid made by a contractor with
principal office outside the said province shall be granted the privilege to match the bid
made by the latter: Provided, however, That the release of funds for said projects shall be
published in a local newspaper with the widest circulation and the website of the DBM, the
mechanisms of which shall be spelled-out in the IRR.
ARTICLE XIV
LEASE OF COMPUTERS, COMMUNICATIONS, INFORMATION
AND OTHER EQUIPMENT
SEC. 46. Lease Contracts. - Lease of construction and office equipment, including
computers, communication and information technology equipment are subject to the same
public bidding and to the processes prescribed under this Act.
ARTICLE XV
DISCLOSURE OF RELATIONS
SEC. 47. Disclosure of Relations. - In addition to the proposed contents of the

Invitation to Bid as mentioned under Section 21 of this Act, all bidding documents shall be
accompanied by a sworn affidavit of the bidder that he or she or any officer of their
corporation is not related to the Head of the Procuring Entity by consanguinity or affinity up
to the third civil degree. Failure to comply with the aforementioned provision shall be a
ground for the automatic disqualification of the bid in consonance with Section 30 of this
Act.
ARTICLE XVI
ALTERNATIVE METHODS OF PROCUREMENT
SEC. 48. Alternative Methods. - Subject to the prior approval of the Head of the
Procuring Entity or his duly authorized representative, and whenever justified by the
conditions provided in this Act, the Procuring Entity may, in order to promote economy and
efficiency, resort to any of the following alternative methods of Procurement:
a) Limited Source Bidding, otherwise known as Selective Bidding - a method of
Procurement that involves direct invitation to bid by the Procuring Entity from a set of pre-
selected suppliers or consultants with known experience and proven capability relative to
the requirements of a particular contract;
b) Direct Contracting, otherwise known as Single Source Procurement - a method of
Procurement that does not require elaborate Bidding Documents because the supplier is
simply asked to submit a price quotation or a pro-forma invoice together with the conditions
of sale, which offer may be accepted immediately or after some negotiations;
c) Repeat Order - a method of Procurement that involves a direct Procurement of
Goods from the previous winning bidder, whenever there is a need to replenish Goods
procured under a contract previously awarded through Competitive Bidding;
d) Shopping - a method of Procurement whereby the Procuring Entity simply
requests for the submission of price quotations for readily available off-the-shelf Goods or
ordinary/regular equipment to be procured directly from suppliers of known qualification; or
e) Negotiated Procurement - a method of Procurement that may be resorted under
the extraordinary circumstances provided for in Section 53 of this Act and other instances
that shall be specified in the IRR, whereby the Procuring Entity directly negotiates a
contract with a technically, legally and financially capable supplier, contractor or consultant.
In all instances, the Procuring Entity shall ensure that the most advantageous price
for the Government is obtained.
SEC. 49. Limited Source Bidding. - Limited Source Bidding may be resorted to
only in any of the following conditions:
a) Procurement of highly specialized types of Goods and Consulting Services which
are known to be obtainable only from a limited number of sources; or
b) Procurement of major plant components where it is deemed advantageous to limit
the bidding to known eligible bidders in order to maintain an optimum and uniform level of
quality and performance of the plant as a whole.
SEC. 50. Direct Contracting. - Direct Contracting may be resorted to only in any of
the following conditions:
a) Procurement of Goods of proprietary nature, which can be obtained only from the
proprietary source, i.e. when patents, trade secrets and copyrights prohibit others from
manufacturing the same item;
b) When the Procurement of critical components from a specific manufacturer,
supplier or distributor is a condition precedent to hold a contractor to guarantee its project
performance, in accordance with the provisions of his contract; or,
c) Those sold by an exclusive dealer or manufacturer, which does not have sub-
dealers selling at lower prices and for which no suitable substitute can be obtained at more
advantageous terms to the Government.
SEC. 51. Repeat Order. - When provided for in the Annual Procurement Plan,
Repeat Order may be allowed wherein the Procuring Entity directly procures Goods from
the previous winning bidder whenever there arises a need to replenish goods procured
under a contract previously awarded through Competitive Bidding, subject to post-
qualification process prescribed in the Bidding Documents and provided all the following
conditions are present:
a) The unit price must be equal to or lower than that provided in the original contract;
b) The repeat order does not result in splitting of requisitions or purchase orders;
c) Except in special circumstances defined in the IRR, the repeat order shall be
availed of only within six (6) months from the date of the Notice to Proceed arising from the
original contract; and,
d) The repeat order shall not exceed twenty-five percent (25%) of the quantity of
each item of the original contract.
SEC. 52. Shopping. - Shopping may be resorted to under any of the following
instances:
a) When there is an unforeseen contingency requiring immediate purchase:
Provided, however, That the amount shall not exceed Fifty Thousand Pesos (P50,000); or
b) Procurement of ordinary or regular office supplies and equipment not available in
the Procurement Service involving an amount not exceeding Two Hundred Fifty Thousand
Pesos (P250,000): Provided, however, That the Procurement does not result in Splitting of
Contracts: Provided, further, That at least three (3) price quotations from bona fide
suppliers shall be obtained.
The above amounts shall be subject to a periodic review by the GPPB. For this
purpose, the GPPB shall be authorized to increase or decrease the said amount in order to
reflect changes in economic conditions and for other justifiable reasons.
SEC. 53. Negotiated Procurement. - Negotiated Procurement shall be allowed only

in the following instances:
a) In cases of two failed biddings, as provided in Section 35 hereof;
b) In case of imminent danger to life or property during a state of calamity, or when
time is of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property, or to restore
vital public services, infrastructure facilities and other public utilities; .
c) Take-over of contracts, which have been rescinded or terminated for causes
provided for in the contract and existing laws, where immediate action is necessary to
prevent damage to or loss of life or property, or to restore vital public services,
infrastructure facilities and other public utilities;
d) Where the subject contract is adjacent or contiguous to an on-going infrastructure
project, as defined in the IRR: Provided, however, That the original contract is the result of
a Competitive Bidding; the subject contract to be negotiated has similar or related scopes
of work; it is within the contracting capacity of the contractor; the contractor uses the same
prices or lower unit prices as in the original contract less mobilization cost; the amount
involved does not exceed the amount of the ongoing project; and, the contractor has no
negative slippage: Provided, further, That negotiations for the procurement are commenced
before the expiry of the original contract. Whenever applicable, this principle shall also
govern consultancy contracts, where the consultants have unique experience and expertise
to deliver the required service; or,
e) Subject to the guidelines specified in the IRR, purchases of Goods from another
agency of the Government, such as the Procurement Service of the DBM, which is tasked
with a centralized procurement of commonly used Goods for the government in accordance
with Letters of Instruction No. 755 and Executive Order No. 359, series of 1989.
SEC. 54. Terms and Conditions for the use of Alternative Methods. - The
specific terms and conditions, including the limitations and restrictions, for the application of
each of the alternative methods mentioned in this Article shall be specified in the IRR.
ARTICLE XVII
PROTEST MECHANISM
SEC. 55. Protests on Decisions of the BAC. - Decisions of the BAC in all stages
of procurement may be protested to the head of the procuring entity and shall be in writing.
Decisions of the BAC may be protested by filing a verified position paper and paying a non-
refundable protest fee. The amount of the protest fee and the periods during which the
protests may be filed and resolved shall be specified in the IRR.
SEC. 56. Resolution of Protests. - The protests shall be resolved strictly on the
basis of records of the BAC. Up to a certain amount to be specified in the IRR, the
decisions of the Head of the Procuring Entity shall be final.
SEC. 57. Non-interruption of the Bidding Process. - In no case shall any protest
taken from any decision treated in this Article stay or delay the bidding process. Protests
must first be resolved before any award is made.
SEC. 58. Report to Regular Courts; Certiorari. - Court action may be resorted to
only after the protests contemplated in this Article shall have been completed. Cases that
are filed in violation of the process specified in this Article shall be dismissed for lack of
jurisdiction. The regional trial court shall have jurisdiction over final decisions of the head of
the procuring entity. Court actions shall be governed by Rule 65 of the 1997 Rules of Civil
Procedure.
This provision is without prejudice to any law conferring on the Supreme Court the
sole jurisdiction to issue temporary restraining orders and injunctions relating to
Infrastructure Projects of Government.
ARTICLE XVIII
SETTLEMENT OF DISPUTES
SEC. 59. Arbitration. - Any and all disputes arising from the implementation of a
contract covered by this Act shall be submitted to arbitration in the Philippines according to
the provisions of Republic Act No. 876, otherwise known as the "Arbitration Law": 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 the contract that will be executed pursuant to the
provisions of this Act: Provided, That by mutual agreement, the parties may agree in writing
to resort to alternative modes of dispute resolution.
SEC. 60. Appeals. - The arbitral award and any decision rendered in accordance
with the foregoing Section shall be appealable by way of a petition for review to the Court of
Appeals. The petition shall raise pure questions of law and shall be governed by the Rules
of Court.
ARTICLE XIX
CONTRACT PRICES AND WARRANTIES
SEC. 61. Contract Prices. - For the given scope of work in the contract as awarded,
all bid prices shall be considered as fixed prices, and therefore not subject to price
escalation during contract implementation, except under extraordinary circumstances and
upon prior approval of the GPPB.
For purposes of this Section, "extraordinary circumstances" shall refer to events that
may be determined by the National Economic and Development Authority in accordance
with the Civil Code of the Philippines, and upon the recommendation of the procuring entity
concerned.
SEC. 62. Warranty. - (a) For the procurement of Goods, in order to assure that
manufacturing defects shall be corrected by the supplier, manufacturer, or distributor, as
the case may be, for a specific time after performance of the contract, a warranty shall be
required from the contract awardee for such period of time as may be provided in the IRR,
the obligation for which shall be covered by either retention money in the amount
equivalent to a percentage of every progress payment, or a special bank guarantee
equivalent to a percentage of the total contract price, to be provided in the IRR. The said
amounts shall only be released after the lapse of the warranty period, provided that the
Goods supplied are free from defects and all the conditions imposed under the contract
have been fully met.
(b) For the procurement of infrastructure projects, the contractor shall assume full
responsibility for the contract work from the time project construction commenced up to a
reasonable period as defined in the IRR taking into consideration the scale and coverage of
the project from its final acceptance by the government and shall be held responsible for
any damage or construction of 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 and shall be required to put
up a warranty security in the form of cash, bank guarantee, letter of credit, Government
Service Insurance System bond, or callable surety bond.
The contractor shall undertake the repair works, at his own expense, of any defect or
damage to the infrastructure projects on account of the use of materials of inferior quality
within ninety (90) days from the time the Head of the Procuring Entity has issued an order
to undertake repair. In case of failure or refusal to comply with this mandate, the
government shall undertake such repair works and shall be entitled to full reimbursement of
expenses incurred therein upon demand.
Any contractor who fails to comply with the preceding paragraph shall suffer
perpetual disqualification from participating in any public bidding and his property or
properties shall be subject to attachment or garnishment proceedings to recover the costs.
All payables of government in his favor shall be offset to recover the costs.
ARTICLE XX
THE GOVERNMENT PROCUREMENT POLICY BOARD
SEC. 63. Organization and Functions. - A Government Procurement Policy Board

(GPPB) is hereby established to: (a) protect national interest in all matters affecting public
Procurement, having due regard to the country's regional and international obligations; (b)
formulate and amend, whenever necessary, the IRR and the corresponding standard forms
for Procurement; (c) ensure that Procuring Entities regularly conduct Procurement training
programs and prepare a Procurement operations manual for all offices and agencies of
government; and (d) conduct an annual review of the effectiveness of this Act and
recommend any amendments thereto, as may be necessary.
The GPPB shall convene within fifteen (15) days from the effectivity of this Act to
formulate the IRR and for other related purposes. The GPPB shall be supported by a
technical support office.
In addition to the powers granted under this Act, the GPPB shall absorb all the
powers, functions and responsibilities of the Procurement Policy Board created under
Executive Order No. 359, series of 1989. All affected functions of the Infrastructure
Committee of the National Economic and Development Authority Board are hereby
transferred to the GPPB.
SEC. 64. Membership. - The GPPB shall be composed of the Secretary of the
Department of Budget and Management, as Chairman, the Director-General of the National
Economic and Development Authority, as Alternate Chairman, with the following as
Members; the Secretaries of the Departments of Public Works and Highways, Finance,
Trade and Industry, Health, National Defense, Education, Interior and Local Government,
Science and Technology, Transportation and Communications, and Energy, or their duly
authorized representatives and a representative from the private sector to be appointed by
the President upon the recommendation of the GPPB.
The GPPB may invite a representative from the Commission on Audit to serve as a
resource person.
ARTICLE XXI
PENAL CLAUSE
SEC. 65. Offenses and Penalties. - (a) Without prejudice to the provisions of
Republic Act No. 3019, otherwise known as the "Anti-Graft and Corrupt Practices Act" and
other penal laws, public officers who commit any of the following acts shall suffer the
penalty of imprisonment of not less than six (6) years and one (1) day, but not more than
fifteen (15) years:
1. Open any sealed Bid including but not limited to Bids that may have been
submitted through the electronic system and any and all documents required to be sealed
or divulging their contents, prior to the appointed time for the public opening of Bids or other
documents.
2. Delaying, without justifiable cause, the screening for eligibility, opening of bids
evaluation and post evaluation of bids, and awarding of contracts beyond the prescribed
periods of action provided for in the IRR.
3. Unduly influencing or exerting undue pressure on any member of the BAC or any
officer or employee of the procuring entity to take a particular action which favors, or tends
to favor a particular bidder.
4. Splitting of contracts which exceed procedural purchase limits and competitive
bidding.
5. When the head of the agency abuses the exercise of his power to reject any and
all bids as mentioned under Section 41 of this Act with manifest preference to any bidder
who is closely related to him in accordance with Section 47 of this Act.
When any of the foregoing acts is done in collusion with private individuals, the
private individuals shall likewise be liable for the offense.
In addition, the public officer involved shall also suffer the penalty of temporary
disqualification from public office, while the private individual shall be permanently
disqualified from transacting business with the Government.
(b) Private individuals who commit any of the following acts, including any public officer,
who conspires with them, shall suffer the penalty of imprisonment of not less than six (6)
years and one (1) day but not more than fifteen (15) years:
1. When two or more bidders agree and submit different Bids as if they were bona
fide, when they knew that one or more of them was so much higher than the other that it
could not be honestly accepted and that the contract will surely be awarded to the pre-
arranged lowest Bid.
2. When a bidder maliciously submits different Bids through two or more persons,
corporations, partnerships or any other business entity in which he has interest to create
the appearance of competition that does not in fact exist so as to be adjudged as the
winning bidder.
3. When two or more bidders enter into an agreement which call upon one to refrain
from bidding for Procurement contracts, or which call for withdrawal of Bids already
submitted, or which are otherwise intended to secure an undue advantage to any one of
them.
4. When a bidder, by himself or in connivance with others, employ schemes which
tend to restrain the natural rivalry of the parties or operates to stifle or suppress competition
and thus produce a result disadvantageous to the public.
In addition, the persons involved shall also suffer the penalty of temporary or
perpetual disqualification from public office and be permanently disqualified from
transacting business with the Government.
(c) Private individuals who commit any of the following acts, and any public officer
conspiring with them, shall suffer the penalty of imprisonment of not less than six (6) years
and one (1) day but not more than fifteen (15) years:
1. Submit eligibility requirements of whatever kind and nature that contain false
information or falsified documents calculated to influence the outcome of the eligibility
screening process or conceal such information in the eligibility requirements when the
information will lead to a declaration of ineligibility from participating in public bidding.
2. Submit Bidding Documents of whatever kind and nature that contain false
information or falsified documents or conceal such information in the Bidding Documents, in
order to influence the outcome of the public bidding.
3. Participate in a public bidding using the name of another or allow another to use
one's name for the purpose of participating in a public bidding.
4. Withdraw a Bid, after it shall have qualified as the Lowest Calculated Bid/Highest
Rated Bid, or refuse to accept an award, without just cause or for the purpose of forcing the
Procuring Entity to award the contract to another bidder.
This shall include the non-submission within the prescribed time, or delaying the
submission of requirements such as, but not limited to, performance security, preparatory
to the final award of the contract.
(d) When the bidder is a juridical entity, criminal liability and the accessory penalties shall
be imposed on its directors, officers or employees who actually commit any of the foregoing
acts.
SEC. 66. Jurisdiction. - Jurisdiction over the offenses defined under this Article
shall belong to the appropriate courts, according to laws existing at the time of the
commission of the offenses.
ARTICLE XXII
CIVIL LIABILITY
SEC. 67. Civil Liability in Case of Conviction. - Without prejudice to administrative

sanctions that may be imposed in proper cases, a conviction under this Act or Republic Act
No. 3019 shall carry with it civil liability, which may either consist of restitution for the
damage done or the forfeiture in favor of the government of any unwarranted benefit
derived from the act or acts in question or both, at the discretion of the courts.
SEC. 68. Liquidated Damages. - All contracts executed in accordance with this Act
shall contain a provision on liquidated damages which shall be payable in case of breach
thereof. The amount thereof shall be specified in the IRR.
ARTICLE XXIII
ADMINISTRATIVE SANCTIONS
SEC. 69. Imposition of Administrative Penalties. - (a) In addition to the provisions

of Articles XXI and XXII of this Act, the Head of the Procuring Entity, subject to the authority
delegated to the BAC, if any, shall impose on bidders or prospective bidders, the
administrative penalty of suspension for one (1) year for the first offense, and suspension of
two (2) years for the second offense from participating in the public bidding process, for the
following violations:
1. Submission of eligibility requirements containing false information or falsified
documents.
2. 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.
3. Allowing the use of one's name, or using the name of another for purposes of
public bidding.
4. Withdrawal of a Bid, or refusal to accept an award, or enter into contract with the
Government without justifiable cause, after he had been adjudged as having submitted the
Lowest Calculated Responsive Bid or Highest Rated Responsive Bid.
5. Refusal or failure to post the required performance security within the prescribed
time.
6. Termination of the contract due to the default of the bidder.
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.
Any documented unsolicited attempt by a bidder to unduly influence the outcome of
the bidding in his favor.
All other acts that tend to defeat the purpose of the Competitive Bidding.
(b) In addition to the penalty of suspension, the Bid security or the performance security
posted by the concerned bidder or prospective bidder shall also be forfeited.
(c) The Head of the Procuring Entity may delegate to the BAC the authority to impose the
aforementioned administrative penalties.
SEC. 70. Preventive Suspension. - The head of the procuring entity may
preventively suspend any member of the Technical Working Group or the Secretariat, or
the BAC if there are strong reasons or prima facie evidence showing that the officials or
employees concerned are guilty of the charges filed against them under Articles XXI and
XXII of this Act or for dishonesty as defined by the Civil Service Laws. In all cases,
procedural and substantive due process as mandated by the Constitution and Civil Service
Laws, rules and regulations, shall be strictly observed.
SEC. 71. Lifting of Suspension and Removal of Administrative Disabilities.

Lifting of preventive suspension pending administrative investigation, as well as removal of
administrative penalties and disabilities shall be in accordance with the provisions of
Sections 52 and 53, Chapter 6 (Civil Service Commission), Book V of Executive Order No.
292, the Administrative Code of 1987.
ARTICLE XXIV
LEGAL ASSISTANCE AND INDEMNIFICATION
OF BAC MEMBERS
SEC. 72. Private Legal Assistance. All the members of the BAC are hereby
authorized to engage the services of private lawyers or extend counsel immediately upon
receipt of Court Notice that a civil or criminal action, suit or proceeding is filed against them.
The lawyer's fee shall be part of the indemnification package for the BAC members, subject
to the provisions of Section 73 hereof.
SEC. 73. Indemnification of BAC Members. - The GPPB shall establish an

equitable indemnification package for public officials providing services in the BAC, which
may be in the form of free legal assistance, liability insurance, and other forms of protection
and indemnification for all costs and expenses reasonably incurred by such persons in
connection with any civil or criminal action, suit or proceeding to which they may be, or
have been made, a party by reason of the performance of their functions or duties, unless
they are finally adjudged in such action or proceeding to be liable for gross negligence or
misconduct or grave abuse of discretion.
In the event of a settlement or compromise, indemnification shall be confined only on
matters covered by the settlement, as to which the Procuring Entity had been advised by
counsel that the public officials to be indemnified have not committed gross negligence or
misconduct in the performance of their functions and duties.
The members of the BAC and the BAC Secretariat shall also be entitled to medical
assistance for injuries incurred in the performance of their functions.
ARTICLE XXV
FINAL PROVISIONS
SEC. 74. Oversight Committee. - There is hereby created a Joint Congressional

Oversight Committee to oversee the implementation of this Act for a period not exceeding
five (5) years from the effectivity of this Act. The Committee shall be composed of the
Chairman of the Senate Committee on Constitutional Amendments and Revision of Laws
and two members thereof appointed by the Senate President, and the Chairman of the
House Committee on Appropriations, and two members thereof to be appointed by the
Speaker of the House of Representatives.
SEC. 75. Implementing Rules and Regulations and Standard Forms. - Within
sixty (60) days from the promulgation of this Act, the necessary rules and regulations for
the proper implementation of its provisions shall be formulated by the GPPB, jointly with the
members of the Oversight Committee created under Section 74 hereof. The said rules and
regulations shall be approved by the President of the Philippines. For a period not later
than thirty (30) days upon the approval of the implementing rules and regulations, the
standard forms for Procurement shall be formulated and approved.
SEC. 76. Repealing Clause. - This law repeals Executive Order No. 40, series of
2001, entitled "Consolidating Procurement Rules and Procedures for All National
Government Agencies, Government-Owned-or-Controlled Corporations and/or Government
Financial Institutions, and Requiring the Use of the Government Electronic Procurement
System"; Executive Order No. 262, Series of 2000, entitled "Amending Executive Order No.
302, series of 1996, entitled "Providing Polices, Guidelines, Rules and Regulations for the
Procurement of Goods/ Supplies by the National Government" and Section Three (3) of
Executive order No. 201, series of 2000, entitled "Providing Additional Policies and
Guidelines in the Procurement of Goods/Supplies by the National Government"; Executive
Order No. 302, series of 1996, entitled "Providing Policies, Guidelines, Rules and
Regulations for the Procurement of Goods/Supplies by the National Government" and
Presidential Decree No. 1594 dated June 11, 1978, entitled 'Prescribing Policies,
Guidelines, Rules and Regulations for Government Infrastructure Contracts." This law
amends Title Six, Book Two of Republic Act No. 7160, otherwise known as the 'Local
Government Code of 1991"; the relevant provisions of Executive Order No. 164, Series of
1987, entitled "Providing Additional Guidelines in the Processing and Approval of Contracts
of the National Government"; and the relevant provisions of Republic Act No. 7898 dated
February 23, 1995, entitled "An Act Providing for the Modernization of the Armed Forces of
the Philippines and for Other Purposes." Any other law, presidential decree or issuance,
executive order, letter of instruction, administrative order, proclamation, charter, rule or
regulation and/or parts thereof contrary to or inconsistent with the provisions of this Act is
hereby repealed, modified or amended accordingly.
SEC. 77. Separability Clause. - If any provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.
SEC. 78. Effectivity Clause. - This Act shall take effect fifteen (15) days following
its publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved: January 10, 2003

Annex G
DPWH Forms (separately attached)

Annex H
CONFEDERATION OF FILIPINO CONSULTING ORGANIZATIONS (COFILCO)
Unit 502, Manila Luxury Condominium, 30 Pearl Drive, Ortigas Center, Pasig City, 1600 Philippines
Telephone No.: (632) 910-0399; Fax No.: (632) 634-7340
Email: [email protected]; Website: http://www.cofilco.com
Reg. No. _____________

CONSULTING FIRM REGISTRATION FORM
To be filled up by COFILCO
Accreditation Committee
Date: ________________________
NAME OF FIRM ____________________________________________ Acronym:_______________
Email: __________________________________ Website: __________________________________
Address : ________________________________________________________________________
MEMBER ORGANIZATION (MEM-O)

ACCEP COFIC PAGEC PARCS
5 CCAPP CPMAP PEMPA
CECOPHIL IMPHIL SPAC
Tel. No.: ________________________________ Fax No.: ___________________________________
Contact Person ___________________________________________ Tel. No.: _________________
SEC Registration No.: ______________________________________ Date: ____________________
DTI Registration No.: _______________________________________ Date: ____________________
CLASSIFICATION: Corporation Partnership Sole Proprietorship
Types of Consulting Service(s)
Advisory/ Feasibility Detailed Construction 5 Architecture &
Review Service Study Engineering Supervision/ Design Services
Management Management
5 Environmental, Special Pre-Design Surveying Other
Urban, Regional Studies Services Services
Planning
Directors, (Latest GIS) Partners, Key Officers
Full Name Profession PRC No./ Title
(Regulated/Non-Regulated) Org. No.
_____________________________ _______________________ ____________ _________________________
_____________________________ _______________________ ____________ _________________________
_____________________________ _______________________ ____________ _________________________
_____________________________ _______________________ ____________ _________________________
_____________________________ _______________________ ____________ _________________________
Affix Signature Over Printed Name:
____________________________ ___________________________________ _________________________

Head of Firm/Year President, Member Organization (Mem-O) President, COFILCO
__________________________________________________ ____________________
Received for COFILCO Accreditation Committee Date
_______________________________________________________________________________________
Important Notes:
1) For registration, please prepare two (2) checks each in the amount of PhP Five Hundred Pesos (P500.00) only. One
shall be payable to the Council of Consulting Architects and Planners of the Philippines (CCAPP) and the other shall
be payable to COFILCO. Please send accomplished registration forms in triplicate together with the two (2) checks to
Archt. Armando D.N. ALLI at DACY Architects/ Planners Co. at Unit 5, 2/F, No. 32 Esteban Abada St., Loyola
Heights 1108 Quezon City, Metro Manila, PH on or before 07 December 2004 or send this accomplished registration
form in advance c/o fax 286-2678. Only the list of CCAPP-registered Member Firms (MFs) shall be forwarded by
COFILCO to the Philippine Government Procurement Policy Board (GPPB) for its 2005 data base.
2) For subsequent accreditation under the GPBB-monitored COFILCO accreditation system under the Government
Procurement reform Act or GPRA of 2003 (RA9184, its IRR & Guidelines), please submit the duly accomplished
st
MEM-O Accreditation Form by first (1 ) quarter 2005. Said form shall be made available only to registered MFs.

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© PALA 2004

THE LANDSCAPE ARCHITECT’S NATIONAL CODE

PALA Document 201 Pre-Planning and Pre-Design Services

The Documents contained herein are guides to the

These Documents may be amended from time to

PALA 201 Pre-Planning and Pre-Design Services

Considering the Landscape Architect’s knowledge in site evaluation, construction techniques,

201.3.1 Economic Feasibility Studies. To determine the viability of a Project, i.e.,

201.3.2 Project Finance. To apprise the Client of the requirements of lending

201.3.3 Site Development / Landscape Architectural Programming. To

201.3.5 Site Utilization and Land Use Studies, Potentials Assessment. To

201.3.6 Space Management Studies. To analyze the space requirements of a

201.3.7 Project Promotions. To generate financial support for and public

201.3.8 Visual Resources (VR) Inventory and Assessment. To itemize the

201.3.9 Environmental Impact Assessment (EIA) / Initial Environmental

201.3.10 Preparation of Project Brief and Terms of Reference (TOR). Where a

201.3.13 Expert Witness Service. To provide professional expert opinion before

201.4 Methods of Fee Compensation. The method of compensation for services

201.4.1 Time-Scale Charges. Compensation under a time-scale arrangement

201.4.2 Lump-sum Charges. Compensation under a lump-sum arrangement is

201.4.3 Percentage-Scale Charges. Compensation herein is a percentage of the

201.4.4 Government Projects. Where any agency of the government is required

201.7.1 Upon signing of Agreement 10% - 15%

201.8 Submittals. Drawings, specifications, documents and materials, submitted by the

PALA 202 Regular Landscape Architecture Design Services

202.1 Introduction. The Regular Landscape Architectural Design Services come in a

202.3.1 Schematic / Conceptual Design Phase. This phase establishes the

202.3.2 Design Development Phase. This phase entails the preparation of

202.4.1 Percentage-Scale Charges. This Scale may be used whether a Project’s

The percentage scale is more appropriate where the Project is of a straightforward

202.4.2 Lump-sum Charges. Compensation under a lump-sum arrangement is

202.4.3 Government Projects. Where any agency of the government is required

202.7.1 Upon signing of contract 5-15%

202.8 Submittals. Drawings, specifications, documents and materials, submitted by the

PALA 203 Specialized Landscape Design and Allied Services

202.4 Methods of Fee Compensation. Several methods of compensation may be used

203.4.1 Percentage-Scale Charges. Compensation may be based on a

203.4.2 Lump-sum Charges. Compensation under a lump-sum arrangement is

203.4.3 Time-Scale Charges. Compensation under a time-scale arrangement shall

203.4.4 Government Projects. Where any agency of the government is required

203.8.1 Upon signing of contract 5-15%

203.9 Submittals. Drawings, specifications, documents and materials, submitted by the

PALA 204 Landscape Construction Management Services

204.3 Scope and Definition of Construction Management Services. These services

204.3.1 Pre-bid Preliminaries. This involves the preparation of documents for

204.3.3 Construction Management. This includes deciding on all claims of the

204.4 Methods of Fee Compensation. Several methods of compensation may be used

204.4.1 Lump-sum Charges. Compensation under a lump-sum arrangement is

204.4.2 Time-Scale Charges. Compensation under a time-scale arrangement shall

204.4.3 Percentage-Scale Charges. Compensation may be based on a

204.4.4 Government Projects. Where any agency of the government is required

204.8.1 Upon signing of contract 10-15%

204.9 Submittals. Drawings, specifications, documents and materials, submitted by the

204.9.1 Reportorial Requirements for Resident Staff. The Landscape Architect,

204.9.2 Reportorial Requirements for Non-Resident Staff on Site Visits. The

PALA 205 Post-Construction Services

205.3 Scope and Definition of Post-Construction Services. The Landscape Architect

205.3.1 Grounds keeping Maintenance Supervision. Where a facility has a

205.3.2 Post-Construction Evaluation. This involves the evaluation, among