PHILIPPINE BIDDING DOCUMENTS

(As Harmonized with Development Partners)

Procurement of
INFRASTRUCTURE
PROJECTS

IMPROVEMENT OF WATER
SYSTEM AT COGON, CASTILLA,
SORSOGON

Government of the Republic of the Philippines

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

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

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

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

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

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

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

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

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

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

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

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 TABLE OF CONTENTS

SECTION I. INVITATION TO BID 5

SECTION II. INSTRUCTIONS TO BIDDERS 8
SECTION III. BID DATA SHEET 36
SECTION IV. GENERAL CONDITIONS OF CONTRACT 41
SECTION V. SPECIAL CONDITIONS OF CONTRACT 73
SECTION VI. SPECIFICATIONS 76
SECTION VII. DRAWINGS 78
SECTION VIII. BILL OF QUANTITIES 79
SECTION IX. BIDDING FORMS 82
Section X. Foreign-Assisted Projects 90

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 Section I. Invitation to Bid
Notes on the Invitation to Bid
The Invitation to Bid provides information that enables potential Bidders to decide whether
to participate in the procurement at hand. The Invitation to Bid shall be:
(a) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Sections 21.2.2 of the IRR of R.A. 9184;
(b) Posted continuously in the Philippine Government Electronic Procurement System
(PhilGEPS) website and the website of the Procuring Entity concerned, if available,
for a minimum period of seven (7) calendar days starting on the date of
advertisement; and
(c) Posted at any conspicuous place reserved for this purpose in the premises of the
Procuring Entity concerned for a minimum period of seven (7) calendar days, as
certified by the head of the Bids and Awards Committee (BAC) Secretariat of the
Procuring Entity concerned.
Apart from the essential items listed in the Bidding Documents, the Invitation to Bid
should also indicate the following:
(a) The date of availability of the Bidding Documents, which shall be from the time
the Invitation to Bid is first advertised/posted until the deadline for the submission
and receipt of bids.
(b) The place where the Bidding Documents may be purchased or the website
where it may be downloaded.
(c) The deadline for the submission and receipt of bids from the last day of posting
of the Invitation to Bid; and
(d) Any important bid evaluation criteria.
The Invitation to Bid should be incorporated into the Bidding Documents. The
information contained in the Invitation to Bid must conform to the Bidding Documents and
in particular to the relevant information in the BDS.
For foreign-assisted projects, the Invitation to Bid to be used is provided in Section X-
Foreign-Assisted Projects.

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 LGU- CASTILLA
Invitation to Bid for

IMPROVEMENT OF WATER SYSTEM AT COGON, CASTILLA,

SORSOGON
1. The LGU - CASTILLA, through the 20% DEVELOPMENT FUND2 intends to apply
the sum of THREE HUNDRED THOUSAND PESOS ONLY (Php. 300,000.00)
being the Approved Budget for the Contract (ABC) to payments under the contract for
Improvement of Water System at Cogon, Castilla, Sorsogon . Bids received in
excess of the ABC shall be automatically rejected at bid opening.

2. The LGU – CASTILLA through the BIDS AND AWARDS COMMITTEE now invites
bids for Improvement of Water System at Cogon, Castilla, Sorsogon . Completion
of the Works is required 90 calendar days. Bidders should have completed, within five
(5) years from the date of submission and receipt of bids, a contract similar to the
Project. The description of an eligible bidder is contained in the Bidding Documents,
particularly, in Section II. Instructions to Bidders.

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

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or

organizations with at least seventy five percent (75%) interest or outstanding capital
stock belonging to citizens of the Philippines. They must present the original and
submit copy of the PCAB License, Mayor’s Permit, DTI, and certified copy of proof
of completed contract similar to the project to bid (at least 50% of the ABC and
completed within the last five (5) years) which should be accompanied with a
Certification signed by the Municipal Engineer/Municipal Mayor together with their
contact telephone numbers, and must meet the following major criteria: PCAB license
applicable to the type and cost of the contract. The Net Financial Contracting
Capacity should be at least equal to ABC, or credit line commitment of at least 10%
of the ABC. All sets of documents to be submitted to BAC should be properly tabbed
and Certificate of Site Inspection duly signed by the LGU’s Municipal Engineer
should be attached to the bid documents. The non-discretionary pass/fail criteria will
be used in the eligibility check and preliminary examination of Bids.

4. Interested bidders may obtain further information from LGU – CASTILLA BAC
Secretariat and inspect the Bidding Documents during office hours from 8:00am to
5:00 pm.

5. A complete set of Bidding Documents may be purchased by interested Bidders from

BAC SECRETARIAT from the address below and upon payment of a nonrefundable
2 In the case of National Government Agencies, the General Appropriations Act and/or continuing
appropriations; in the case of GOCCs, GFIs, and SUCs, the Corporate Budget for the contract approved by the
governing Boards; in the case of LGUs, the Budget for the contract approved by the respective Sanggunian.
(Section 5(a), R.A. 9184)

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 fee for the Bidding Documents in the amount of Five Hundred Pesos (P500.00). The
LGU CASTILLA BIDS AND AWARDS COMMITTEE will hold a Pre-Bid
Conference on October 22, 2018, 10:00 A.M. at LGU CASTILLA BAC Office which
shall be open only to all interested parties who have purchased the Bidding Documents.

6. Bids must be delivered to the address below on or before November 6, 2018 from 8:00
A.M. to 8:30 A.M. only at LGU – CASTILLA BAC OFFICE. All bids must be
accompanied by a bid security in any of the acceptable forms and in the amount stated
in ITB Clause 18.

Bids will be opened on November 6, 2018, 9:00 AM at the BAC Office in the presence
of the bidders’ representatives who choose to attend at the address below. Late bids
shall not be accepted.

7. Failure to comply with any of the foregoing requirements is a ground for automatic
disqualification of a bidder. The Municipality of Castilla reserves the right to accept
or reject any bid documents as the sound discretion of the BAC so warrant without
thereby incurring any liability to the affected bidder/s.

8.

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 Section II. Instructions to Bidders
Notes on the Instructions to Bidders
This Section of the Bidding Documents provides the information necessary for bidders to
prepare responsive Bids, in accordance with the requirements of the Procuring Entity. It
also provides information on the eligibility check, bid submission, opening, and evaluation,
and on the award of contract.

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

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

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

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 28. Post Qualification 31
29. Reservation Clause32
F. AWARD OF CONTRACT 33
30. Contract Award 33
31. Signing of the Contract 33
32. Performance Security 34
33. Notice to Proceed 35

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 A. General

1. Scope of Bid
2. The Procuring Entity as defined in the BDS, invites bids for the construction of
Works, as described in Section VI. Specifications. The name and identification
number of the Contract is provided in the BDS.

3. The successful bidder will be expected to complete the Works by the intended
completion date specified in SCC Clause 1.16.

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

5. Corrupt, Fraudulent, Collusive, and Coercive

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

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

()i "corrupt practice" means behavior on the part of officials in the

public or private sectors by which they improperly and
unlawfully enrich themselves, others, or induce others to do so,
by misusing the position in which they are placed, and includes
the offering, giving, receiving, or soliciting of anything of value
to influence the action of any such official in the procurement
process or in contract execution; entering, on behalf of the
Procuring Entity, into any contract or transaction manifestly
and grossly disadvantageous to the same, whether or not the
public officer profited or will profit thereby, and similar acts as
provided in Republic Act 3019;

()ii "fraudulent practice" means a misrepresentation of facts in

order to influence a procurement process or the execution of a
contract to the detriment of the Procuring Entity, and includes
collusive practices among Bidders (prior to or after Bid
submission) designed to establish bid prices at artificial, non-
competitive levels and to deprive the Procuring Entity of the
benefits of free and open competition;

()iii “collusive practices” means a scheme or arrangement between

two or more bidders, with or without the knowledge of the

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 Procuring Entity, designed to establish bid prices at artificial,
non-competitive levels; and

()iv “coercive practices” means harming or threatening to harm,

directly or indirectly, persons, or their property to influence
their participation in a procurement process, or affect the
execution of a contract;

()v “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

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

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

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

()b will reject a proposal for award if it determines that the bidder
recommended for award has engaged in corrupt or fraudulent practices
in competing for the Contract; and

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

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

()b Furthermore, the Funding Source and the Procuring Entity reserve the
right to inspect and audit records and accounts of a contractor in the
bidding for and performance of a contract themselves or through
independent auditors as reflected in the GCC Clause 34.

7. Conflict of Interest

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

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

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

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

()d A Bidder has a relationship, directly or through third parties, that puts
them in a position to have access to information about or influence on
the bid of another Bidder or influence the decisions of the Procuring
Entity regarding this bidding process. This will include a firm or an
organization who lends, or temporarily seconds, its personnel to firms
or organizations which are engaged in consulting services for the
preparation related to procurement for or implementation of the project
if the personnel would be involved in any capacity on the same project;

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

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

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

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

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

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

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

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

himself;

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

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

controlling stockholders; and

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

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

Clause will result in the automatic disqualification of a Bidder.

9. Eligible Bidders
10. Unless otherwise indicated in the BDS, the following persons shall be eligible to
participate in this Bidding:

()a Duly licensed Filipino citizens/sole proprietorships;

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

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

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

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

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

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

()h (a) Unless otherwise provided in the BDS, the Bidder must have
completed, within five (5) years from the submission of bids, a single
contract that is similar to this Project, equivalent to at least fifty
percent (50%) of the ABC adjusted to current prices using the National
Statistics Office consumer price index.

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

For this purpose, contracts similar to the Project shall be those described in the
BDS, and completed within the period stated in the Invitation to Bid and ITB
Clause 12.1(a)(iii).

The Bidder must submit a computation of its Net Financial Contracting Capacity (NFCC) or
a Commitment from a Universal or Commercial bank to extend a credit line in its
favor if awarded the contract for this project (CLC).

The NFCC, computed using the following formula, must be at least equal to
the ABC to be bid:

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

Where:

K = 10 for a contract duration of one year or less, 15 for a contract

duration of more than one year up to two years, and 20 for a contract
duration of more than two years.

The CLC must be at least equal to ten percent (10%) of the ABC for this
Project. If issued by a foreign bank, it shall be confirmed or authenticated by a
Universal or Commercial Bank. In the case of local government units (LGUs),
the Bidder may also submit CLC from other banks certified by the Bangko
Sentral ng Pilipinas (BSP) as authorized to issue such financial instrument.

1. Bidder’s Responsibilities
2. The Bidder or its duly authorized representative shall submit a sworn statement in the
form prescribed in Section IX. Bidding Forms as required in ITB Clause 12.1(b)(iii).

3. The Bidder is responsible for the following:

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

Documents;

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 ()b Having acknowledged all conditions, local or otherwise, affecting the
implementation of the contract;

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

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

Supplemental/Bid Bulletin/s as provided under ITB Clause 10.3.

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

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

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

()g Authorizing the Head of the Procuring Entity or its duly authorized
representative/s to verify all the documents submitted;

()h Ensuring that the signatory is the duly authorized representative of the
Bidder, and granted full power and authority to do, execute and
perform any and all acts necessary and/or to represent the Bidder in the
bidding, with the duly notarized Secretary’s Certificate attesting to
such fact, if the Bidder is a corporation, partnership, cooperative, or
joint venture;

()i Complying with the disclosure provision under Section 47 of the Act in
relation to other provisions of Republic Act 3019; and

()j Complying with existing labor laws and standards, if applicable.

()k Ensuring that the eligibility documents contained in the first envelop
are numbered and arranged consecutively in accordance with the
prescribed checklist provided in page 111 of this document

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

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

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

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 and access roads; and (d) other factors that may affect the cost, duration and execution
or implementation of the contract, project, or work.

The Procuring Entity shall not assume any responsibility regarding erroneous interpretations
or conclusions by the prospective or eligible bidder out of the data furnished by the
procuring entity.

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

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

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

1. Origin of GOODS and Services

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

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

4. Subcontractors must submit the documentary requirements under ITB Clause 12 and
comply with the eligibility criteria specified in the BDS. In the event that any
subcontractor is found by the Procuring Entity to be ineligible, the subcontracting of
such portion of the Works shall be disallowed.

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

B. Contents of Bidding Documents

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

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 (b) The pre-bid conference shall be held at least twelve (12) calendar days
before the deadline for the submission of and receipt of bids. If the Procuring
Entity determines that, by reason of the method, nature, or complexity of the
contract to be bid, or when international participation will be more
advantageous to the GOP, a longer period for the preparation of bids is
necessary, the pre-bid conference shall be held at least thirty (30) calendar
days before the deadline for the submission and receipt of bids, as specified in
the BDS.

Bidders are encouraged to attend the pre-bid conference to ensure that they fully understand
the Procuring Entity’s requirements. Non-attendance of the Bidder will in no way
prejudice its bid; however, the Bidder is expected to know the changes and/or
amendments to the Bidding Documents as recorded in the minutes of the pre-bid
conference and the Supplemental/Bid Bulletin.

Any statement made at the pre-bid conference shall not modify the terms of the bidding
documents unless such statement is specifically identified in writing as an amendment
thereto and issued as a Supplemental/Bid Bulletin.

1. Clarification and Amendment of Bidding Documents

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

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

4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted on the
Philippine Government Electronic Procurement System (PhilGEPS) and the website
of the Procuring Entity concerned, if available. Unless, otherwise provided in the
BDS, it shall be the responsibility of all Bidders who secure the Bidding Documents
to inquire and secure Supplemental/Bid Bulletins that may be issued by the BAC.
However, bidders who have submitted bids before the issuance of the
Supplemental/Bid Bulletin must be informed and allowed to modify or withdraw their
bids in accordance with ITB Clause 23.

C. Preparation of Bids

5. Language of Bids
The Bid, as well as all correspondence and documents relating to the Bid exchanged
by the Bidder and the Procuring Entity, shall be written in English. Supporting
documents and printed literature furnished by the Bidder may be in another language
provided they are accompanied by an accurate translation in English certified by the

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 appropriate embassy or consulate in the Philippines, in which case the English
translation shall govern, for purposes of interpretation of the Bid.

6. Documents Comprising the Bid: Eligibility and

Technical Components
7. Unless otherwise indicated in the BDS, the first envelope shall contain the following
eligibility and technical documents which shall be numbered and arranged
consecutively in accordance with the prescribed checklist provided by the BAC:

()a Eligibility Documents –

Class "A" Documents:

()i Registration certificate from the Securities and Exchange

Commission (SEC), Department of Trade and Industry (DTI)
for sole proprietorship, or Cooperative Development Authority
(CDA) for cooperatives, or any proof of such registration as
stated in the BDS;

()ii Mayor’s permit issued by the city or municipality where the

principal place of business of the prospective bidder is located;

()iii Statement of all its ongoing and completed government and

private contracts within five (5) years from the submission of
bids, including contracts awarded but not yet started, if any;
and

Statement identifying the bidder’s single largest completed

contract similar to the contract to be bid.

The statement shall include, for each contract, the following:

(.iii.1) name of the contract;

(.iii.2) date of the contract;

(.iii.3) contract duration;

(.iii.4) owner’s name and address;

(.iii.5) nature of work;

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

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

(.iii.7) total contract value at award;

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

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

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 (.iii.10) percentages of planned and actual
accomplishments, if applicable;

(.iii.11)value of outstanding works, if applicable;

(.iii.12) the statement shall be supported by the notices

of award and/or notices to proceed issued by the
owners; and

(.iii.13) the statement shall be supported by the

Constructors Performance Evaluation System (CPES)
rating sheets, and/or certificates of completion and
owner’s acceptance.

()iv Unless otherwise provided in the BDS, valid Philippine

Contractors Accreditation Board (PCAB) license and
registration for the type and cost of the contract for this Project;

()v Audited financial statements, showing, among others, the

prospective total and current assets and liabilities, stamped
“received” by the BIR or its duly accredited and authorized
institutions, for the preceding calendar year which should not
be earlier than two (2) years from the date of bid submission;

()vi NFCC computation or CLC in accordance with ITB Clause 5.5;

and

()vii Tax Clearance per Executive Order 398. Series of 2005, as

finally reviewed and approved by the BIR.

Class "B" Document:

()viii If applicable, valid Joint Venture Agreement (JVA) or, in lieu

thereof, duly notarized statements from all the potential joint
venture partners stating that they will enter into and abide by
the provisions of the JVA in the instance that the bid is
successful shall be included in the bid.

()b Technical Documents –

()i Bid security as prescribed in ITB Clause 18. If the Bidder opts
to submit the bid security in the form of:

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

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

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

from an authorized Insurance Commission that a surety
or insurance company is authorized to issue such
instrument;

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

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

(.ii.2) List of contractor’s personnel (viz, project Manager,

Project Engineers, Materials Engineers, and Foremen),
to be assigned to the contract to be bid, with their
complete qualification and experience data; and

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

leased, and/or under purchase agreements, supported by
certification of availability of equipment from the
equipment lessor/vendor for the duration of the project;
and

()iii Sworn statement in accordance with Section 25.2(b)(iv) of the

IRR of RA 9184 and using the form prescribed in Section IX.
Bidding Forms.

8. Documents Comprising the Bid: Financial

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

()a Financial Bid Form in accordance with the form prescribed in Section
IX. Bidding Forms; and

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

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

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

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

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

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

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

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 (iii) The procuring entity has trained cost estimators on estimating
prices and analyzing bid variances. In the case of infrastructure
projects, the procuring entity must also have trained quantity
surveyors.

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

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

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

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

10. Alternative Bids

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

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

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

14. Bid Prices

15. The contract shall be for the whole Works, as described in ITB Clause 1.1, based on
the priced Bill of Quantities submitted by the Bidder.

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

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

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18. All bid prices for the given scope of work in the contract as awarded shall be
considered as fixed prices, and therefore not subject to price escalation during
contract implementation, except under extraordinary circumstances as specified in
GCC Clause 48. Price escalation may be allowed in extraordinary circumstances as
may be determined by the National Economic and Development Authority in
accordance with the Civil Code of the Philippines, and upon the recommendation of
the Procuring Entity. Furthermore, in cases where the cost of the awarded contract is
affected by any applicable new laws, ordinances, regulations, or other acts of the
GOP, promulgated after the date of bid opening, a contract price adjustment shall be
made or appropriate relief shall be applied on a no loss-no gain basis.

19. Bid Currencies

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

21. If so allowed in accordance with ITB Clause 16.1, the Procuring Entity for purposes
of bid evaluation and comparing the bid prices will convert the amounts in various
currencies in which the bid price is expressed to Philippine Pesos at the exchange rate
as published in the BSP reference rate bulletin on the day of the bid opening.

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

23. Bid Validity

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

25. In exceptional circumstances, prior to the expiration of the bid validity period, the
Procuring Entity may request Bidders to extend the period of validity of their bids.
The request and the responses shall be made in writing. The bid security described in
ITB Clause 18 should also be extended corresponding to the extension of the bid
validity period at the least. A Bidder may refuse the request without forfeiting its bid
security, but his bid shall no longer be considered for further evaluation and award. A
Bidder granting the request shall not be required or permitted to modify its bid.

26. Bid Security

27. The procuring entity shall prescribe in the BDS the acceptable forms of bid security
that bidders may opt to use, which shall include the Bid Securing Declaration or at
least one (1) other form, the amount of which shall be equal to the percentage of the
ABC in accordance with the following schedule:

Amount of Bid Security

Form of Bid Security
(Equal to Percentage of the ABC)

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 ()a Cash or
cashier’s/manager’s check issued
by a Universal or Commercial
Bank.
()b Bank
draft/guarantee or irrevocable
Two percent (2%)
letter of credit issued by a
Universal or Commercial Bank:
Provided, however, that it shall
be confirmed or authenticated by
a Universal or Commercial Bank,
if issued by a foreign bank.
()c Surety bond
callable upon demand issued by a
surety or insurance company
Five percent (5%)
duly certified by the Insurance
Commission as authorized to
issue such security; and/or
()d Any Proportionate to share of form
combination of the foregoing. with respect to total amount of
security
()e Bid Securing
Declaration

For biddings conducted by local government units, the Bidder may also submit
bid securities in the form of cashier’s/manager’s check, bank draft/guarantee,
or irrevocable letter of credit from other banks certified by the BSP as
authorized to issue such financial statement.

The Bid Securing Declaration mentioned above is an undertaking which

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

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

No bid securities shall be returned to bidders after the opening of bids and before contract
signing, except to those that failed or declared as post-disqualified, upon submission
of a written waiver of their right to file a motion for reconsideration and/or protest.
Without prejudice on its forfeiture, Bid Securities shall be returned only after the
bidder with the Lowest Calculated Responsive Bid has signed the contract and
furnished the Performance Security, but in no case later than the expiration of the Bid
Security validity period indicated in ITB Clause 18.2.

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Upon signing and execution of the contract, pursuant to ITB Clause 31, and the posting of the
performance security, pursuant to ITB Clause 32, the successful Bidder’s Bid security
will be discharged, but in no case later than the Bid security validity period as
indicated in ITB Clause 18.2.

The bid security may be forfeited:

()a if a Bidder:

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

()ii does not accept the correction of errors pursuant to ITB Clause
27.3(b);

()iii fails to submit the requirements within the prescribed period, or

a finding against their veracity, as stated in ITB Clause 28.2;

()iv submission of eligibility requirements containing false

information or falsified documents;

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

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

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

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

contract with the Government without justifiable cause, after
the Bidder had been adjudged as having submitted the Lowest
Calculated and Responsive Bid;

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

within the prescribed time;

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

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

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

outcome of the bidding in his favor;

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

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

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 ()b if the successful Bidder:

()i fails to sign the contract in accordance with ITB Clause 31;

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

Clause 32.

2. Format and Signing of Bids

3. Bidders shall submit their bids through their duly authorized representative using the
appropriate forms provided in Section IX. Bidding Forms on or before the deadline
specified in the ITB Clause 21 in two (2) separate sealed bid envelopes, and which
shall be submitted simultaneously. The first shall contain the technical component of
the bid, including the eligibility requirements under ITB Clause 12.1, and the second
shall contain the financial component of the bid.

4. Forms as mentioned in ITB Clause 19.1 must be completed without any alterations to
their format, and no substitute form shall be accepted. All blank spaces shall be filled
in with the information requested.

5. The Bidder shall prepare an original of the first and second envelopes as described in
ITB Clauses 12 and 13. In addition, the Bidder shall submit copies of the first and
second envelopes. In the event of any discrepancy between the original and the
copies, the original shall prevail.

6. The bid, except for unamended printed literature, shall be signed, and each and every
page thereof shall be initialed, by the duly authorized representative/s of the Bidder.

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

8. Sealing and Marking of Bids

9. Bidders shall enclose their original eligibility and technical documents described in
ITB Clause 12, in one sealed envelope marked “ORIGINAL - TECHNICAL
COMPONENT”, and the original of their financial component in another sealed
envelope marked “ORIGINAL - FINANCIAL COMPONENT”, sealing them all in an
outer envelope marked “ORIGINAL BID”.

10. Each copy of the first and second envelopes shall be similarly sealed duly marking the
inner envelopes as “COPY NO. _1_ - TECHNICAL COMPONENT” and “COPY
NO. _2_ – FINANCIAL COMPONENT” and the outer envelope as “COPY NO.
_3_”, respectively. These envelopes containing the original and the copies shall then
be enclosed in one single envelope.

11. The original and the number of copies of the Bid as indicated in the BDS shall be
typed or written in indelible ink and shall be signed by the bidder or its duly
authorized representative/s.

12. All envelopes shall:

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

26
 ()b bear the name and address of the Bidder in capital letters;

()c be addressed to the Procuring Entity’s BAC identified in ITB Clause

10.1;

()d bear the specific identification of this bidding process indicated in the
Invitation to Bid; and

()e bear a warning “DO NOT OPEN BEFORE…” the date and time for
the opening of bids, in accordance with ITB Clause 21.

()f If bids are not sealed and marked as required, the Procuring Entity will
assume no responsibility for the misplacement or premature opening of
the bid.

D. Submission and Opening of Bids

13. Deadline for Submission of Bids

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

14. Late Bids

Any bid submitted after the deadline for submission and receipt of bids prescribed by
the Procuring Entity, pursuant to ITB Clause 21, shall be declared “Late” and shall
not be accepted by the Procuring Entity.

15. Modification and Withdrawal of Bids

16. The Bidder may modify its bid after it has been submitted; provided that the
modification is received by the Procuring Entity prior to the deadline prescribed for
submission and receipt of bids. The Bidder shall not be allowed to retrieve its original
bid, but shall be allowed to submit another bid equally sealed, properly identified,
linked to its original bid marked as “TECHNICAL MODIFICATION” or
“FINANCIAL MODIFICATION” and stamped “received” by the BAC. Bid
modifications received after the applicable deadline shall not be considered and shall
be returned to the Bidder unopened.

17. A Bidder may, through a letter of withdrawal, withdraw its bid after it has been
submitted, for valid and justifiable reason; provided that the letter of withdrawal is
received by the Procuring Entity prior to the deadline prescribed for submission and
receipt of bids.

18. Bids requested to be withdrawn in accordance with ITB Clause 23.1 shall be returned
unopened to the Bidders. A Bidder may also express its intention not to participate in
the bidding through a letter which should reach and be stamped by the BAC before
the deadline for submission and receipt of bids. A Bidder that withdraws its bid shall
not be permitted to submit another bid, directly or indirectly, for the same contract.

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19. No bid may be modified after the deadline for submission of bids. No bid may be
withdrawn in the interval between the deadline for submission of bids and the
expiration of the period of bid validity specified by the Bidder on the Financial Bid
Form. Withdrawal of a bid during this interval shall result in the forfeiture of the
Bidder’s bid security, pursuant to ITB Clause 18.5, and the imposition of
administrative, civil, and criminal sanctions as prescribed by RA 9184 and its IRR.

20. Opening and Preliminary Examination of Bids

21. The BAC shall open the first bid envelopes of Bidders in public as specified in the
BDS to determine each Bidder’s compliance with the documents prescribed in ITB
Clause 12. For this purpose, the BAC shall check the submitted documents of each
bidder against a checklist of required documents to ascertain if they are all present,
using a non-discretionary “pass/fail” criterion. If a bidder submits the required
document, it shall be rated “passed” for that particular requirement. In this regard,
bids that fail to include any requirement or are incomplete or patently insufficient
shall be considered as “failed”. Otherwise, the BAC shall rate the said first bid
envelope as “passed”.

22. Unless otherwise specified in the BDS, immediately after determining compliance
with the requirements in the first envelope, the BAC shall forthwith open the second
bid envelope of each remaining eligible bidder whose first bid envelope was rated
“passed”. The second envelope of each complying bidder shall be opened within the
same day. In case one or more of the requirements in the second envelope of a
particular bid is missing, incomplete or patently insufficient, and/or if the submitted
total bid price exceeds the ABC unless otherwise provided in ITB Clause 13.1(b), the
BAC shall rate the bid concerned as “failed”. Only bids that are determined to contain
all the bid requirements for both components shall be rated “passed” and shall
immediately be considered for evaluation and comparison.

23. Letters of withdrawal shall be read out and recorded during bid opening, and the
envelope containing the corresponding withdrawn bid shall be returned to the Bidder
unopened. If the withdrawing Bidder’s representative is in attendance, the original bid
and all copies thereof shall be returned to the representative during the bid opening. If
the representative is not in attendance, the Bid shall be returned unopened by
registered mail. The Bidder may withdraw its bid prior to the deadline for the
submission and receipt of bids, provided that the corresponding letter of withdrawal
contains a valid authorization requesting for such withdrawal, subject to appropriate
administrative sanctions.

24. If a Bidder has previously secured a certification from the Procuring Entity to the
effect that it has previously submitted the above-enumerated Class “A” Documents,
the said certification may be submitted in lieu of the requirements enumerated in ITB
Clause 12.1(a), items (i) to (vi).

25. In the case of an eligible foreign Bidder as described in ITB Clause 5, the Class “A”
Documents enumerated in ITB Clause 12.1(a) may be substituted with the appropriate
equivalent documents, if any, issued by the country of the foreign Bidder concerned.

26. Each partner of a joint venture agreement shall likewise submit the documents
required in ITB Clauses 12.1(a)(i) and 12.1(a)(ii). Submission of documents required

28
 under ITB Clauses 12.1(a)(iii) to 12.1(a)(vi) by any of the joint venture partners
constitutes compliance.

27. A Bidder determined as “failed” has three (3) calendar days upon written notice or, if
present at the time of bid opening, upon verbal notification within which to file a
request for reconsideration with the BAC: Provided, however, that the request for
reconsideration shall not be granted if it is established that the finding of failure is due
to the fault of the Bidder concerned: Provided, further, that the BAC shall decide on
the request for reconsideration within seven (7) calendar days from receipt thereof. If
a failed Bidder signifies his intent to file a request for reconsideration, the BAC shall
keep the bid envelopes of the said failed Bidder unopened and/or duly sealed until
such time that the request for reconsideration or protest has been resolved.

E. Evaluation and Comparison of Bids

28. Process to be Confidential

29. Members of the BAC, including its staff and personnel, as well as its Secretariat and
TWG, are prohibited from making or accepting any kind of communication with any
bidder regarding the evaluation of their bids until the issuance of the Notice of Award,
unless n the case of ITB Clause 26.

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

31. Clarification of Bids

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

32. Detailed Evaluation and Comparison of Bids

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

34. In evaluating the Bids to get the Lowest Calculated Bid, the Procuring Entity shall
undertake the following:

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

establish the correct calculated prices of the bids; and

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

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 ()c The Procuring Entity's BAC shall immediately conduct a detailed
evaluation of all bids rated “passed,” using non-discretionary
“pass/fail” criterion. The BAC shall consider the following in the
evaluation of bids:

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

()e Arithmetical corrections. Consider computational errors and omissions

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

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

()g The Procuring Entity’s evaluation of bids shall only be based on the
bid price quoted in the Financial Bid Form

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

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

35. Post Qualification

36. The Procuring Entity shall determine to its satisfaction whether the Bidder that is
evaluated as having submitted the Lowest Calculated Bid (LCB) complies with and is
responsive to all the requirements and conditions specified in ITB Clauses 5, 12, and
13.

37. Within a non-extendible period of three (3) calendar days from receipt by the Bidder
of the notice from the BAC that it submitted the LCB, the Bidder shall submit the
following documentary requirements:

30
 ()a Tax clearance per Executive Order 398, Series of 2005;

()b Latest income and business tax returns in the form specified in the
BDS;

()c Certificate of PhilGEPS Registration; and

()d Other appropriate licenses and permits required by law and stated in
the BDS.

Failure of the Bidder declared as LCB to duly submit the requirements under
this Clause or a finding against the veracity of such, shall be ground for
forfeiture of the bid security and disqualification of the Bidder for award.

The determination shall be based upon an examination of the documentary evidence of the
Bidder’s qualifications submitted pursuant to ITB Clauses 12 and 13, as well as other
information as the Procuring Entity deems necessary and appropriate, using a non-
discretionary “pass/fail” criterion.

If the BAC determines that the Bidder with the Lowest Calculated Bid passes all the criteria
for post-qualification, it shall declare the said bid as the Lowest Calculated
Responsive Bid, and recommend to the Head of the Procuring Entity the award of
contract to the said Bidder at its submitted price or its calculated bid price, whichever
is lower, subject to ITB Clause 30.3.

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

Within a period not exceeding seven (7) calendar days from the date of receipt of the
recommendation of the BAC, the Head of the Procuring Entity shall approve or
disapprove the said recommendation. In the case of government owned and
government-owned and/or -controlled corporations (GOCCs) and government
financial institutions (GFIs), the period provided herein shall be fifteen (15) calendar
days.

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

31
 consider the said Bidder as ineligible and shall disqualify it from submitting a bid or
from obtaining an award or contract.

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

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

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

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

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

()i If the physical and economic conditions have significantly

changed so as to render the project no longer economically,
financially or technically feasible as determined by the head of
the procuring entity;

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

of the procuring entity; and

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

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

of bidding when:

()d No bids are received;

()e All prospective bidders are declared ineligible;

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

()g The bidder with the Lowest Calculated Responsive Bid refuses,
without justifiable cause to accept the award of contract, and no award
is made.

F. Award of Contract

4. Contract Award

32
5. Subject to ITB Clause 28, the Procuring Entity shall award the contract to the Bidder
whose Bid has been determined to be the Lowest Calculated and Responsive Bid
(LCRB).

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

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

subject to the following conditions:

()a Submission of the following documents within the prescribed period

from receipt by the Bidder of the notice that it has the Lowest
Calculated and Responsive Bid:

()i Valid JVA, if applicable, within ten (10) calendar days;

()ii Valid PCAB license and registration for the type and cost of the
contract to be bid for foreign bidders, within thirty (30)
calendar days, if allowed under a Treaty or International or
Executive Agreement mentioned in ITB Clause 12.1(a)(iv);

()b Posting of the performance security in accordance with ITB Clause 32;

()c Signing of the contract as provided in ITB Clause 31; and

()d Approval by higher authority, if required.

8. Signing of the Contract

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

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

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

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

()a Contract Agreement;

()b Bidding Documents;

33
 ()c Winning bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted;

()d Performance Security;

()e Credit line in accordance with ITB Clause 5.5, if applicable;

()f Notice of Award of Contract; and

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

13. Performance Security

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

15. The performance security shall be denominated in Philippine Pesos and posted in
favor of the Procuring Entity in an amount equal to the percentage of the total contract
price as stated in the BDS in accordance with the following schedule:

Amount of Performance Security

Form of Performance Security (Equal to Percentage of the Total
Contract Price)
()a Cash or
cashier’s/manager’s check
issued by a Universal or
Commercial Bank.
()b Bank
draft/guarantee or irrevocable
letter of credit issued by a 10 percent (10%)
Universal or Commercial Bank:
Provided, however, that it shall
be confirmed or authenticated
by a Universal or Commercial
Bank, if issued by a foreign
bank.
()c Surety bond
callable upon demand issued by Thirty percent (30%)
a surety or insurance company
duly certified by the Insurance
Commission as authorized to
issue such security; and/or
()d Any Proportionate to share of form with
combination of the foregoing. respect to total amount of security

16. Failure of the successful Bidder to comply with the above-mentioned requirement
shall constitute sufficient ground for the annulment of the award and forfeiture of the
bid security, in which event the Procuring Entity shall initiate and complete the post

34
 qualification of the second Lowest Calculated Bid. The procedure shall be repeated
until the Lowest Calculated and Responsive Bid is identified and selected for contract
award. However if no Bidder passed post-qualification, the BAC shall declare the
bidding a failure and conduct a re-bidding with re-advertisement.

17. Notice to Proceed

18. Within three (3) calendar days from the date of approval of the Contract by the
appropriate government approving authority, the Procuring Entity shall issue its
Notice to Proceed to the Bidder.

19. The contract effectivity date shall be provided in the Notice to Proceed by the
Procuring Entity, which date shall not be later than seven (7) calendar days from the
issuance of the Notice to Proceed.

20. Protest Mechanism

Decision of the procuring entity at any stage of the procurement process may be
questioned in accordance with Section 55 of the revised Implementing Rules and
Regulations of Republic Act 9184.

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 Section III. Bid Data Sheet

Notes on the Bid Data Sheet

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

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

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

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

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

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

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 Bid Data Sheet

ITB Clause
1.1 The PROCURING ENTITY is LGU – CASTILLA, SORSOGON

The name of the Contract is Improvement of Water System at Cogon,

Castilla, Sorsogon the identification number of the Contract is none. (no
identification number)

2 The Funding Source is:

The Government of the Philippines (GOP) through 20% Development Fund

the amount of THREE HUNDRED THOUSAND PESOS ONLY
(Php.300,000.00)

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

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

The name of the Project is Improvement of Water System at Cogon,

Castilla, Sorsogon

3.1 Submit and make proper tabbing of Letter of Intent(LOI) together with
Special Power of Attorney (SPA) or duly notarized board secretary’s
certificate issued to their authorized representative specially intended for the
aforementioned project, present the original and submit copy of the PCAB
License, Mayor’s Permit, DTI, Philgeps (Platinum Certificate), Tax
Clearance.

5.1 No further instructions.

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

5.4

8.1 Subcontracting is not allowed.

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

8.2 Not applicable.

9.1 The Procuring Entity will hold a pre-bid conference for this Project,
Improvement of Water System at Cogon, Castilla, Sorsogon on October
22, 2018 , 10:00 A.M. at BAC Office LGU - CASTILLA.

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10.1 The Procuring Entity’s address is:

BAC Office LGU-CASTILLA

OLIVIA L. LAURINARIA

BAC CHAIRPERSON

09985670744

10.3 No further instructions.

12.1 If the Procuring Entity maintains a registry system using the PhilGEPS or
its own electronic system:

The first envelope shall contain the eligibility and technical documents
stated in the ITB Clause. However, if the Bidder maintains a current and
updated file of his Class “A” Documents with the Procuring Entity, a written
letter of intent may be submitted in lieu of the Class “A” Documents;
otherwise, it shall apply for eligibility and its latest Class “A” Documents on
or before October 29, 2018. Any application for eligibility or updates
submitted after the deadline for the submission of the letter of intent shall
not be considered for the bidding at hand.

12.1(a)(i) List any additional acceptable proof of registration mentioned in the ITB
Clause or state “No other acceptable proof of registration is recognized.”

12.1(a)(iv) No further instructions.

13.1 No additional Requirements.

13.1(b) The ABC is P300,000.00 Any bid with a financial component exceeding this
amount shall not be accepted.

14.2 No further instructions.

15.4 No further instruction.

16.1 The bid prices shall be quoted in Philippine Pesos.

17.1 Bids will be valid until. 90 calendar days_.

18.1 The bid security shall be limited to Bid Securing Declaration or at least one (1)
other form in accordance with the following amount:

1. The amount of P _________________________if bid security is in cash,

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

2. The amount of P_____________________if bid security is in Surety Bond; or

3. Any combination of the foregoing proportionate to the share of form with

respect to total amount of security.

38
18.2 The bid security shall be valid until ________________________.

20.3 Each Bidder shall submit one original and four certified true copies of the first and
second components of its bid.

21 The address for submission of bids is BAC OFFICE LGU - CASTILLA

The deadline for submission of bids is ________________________.

24.1 The place of bid opening is BAC OFFICE LGU - CASTILLA

The date and time of bid opening is ________________________________.

24.2 No further instructions.

27.3(b) Bid modification is not allowed.

27.4 Certificate of Site Inspection duly signed by the Municipal Engineer.

28.2(b) Only tax returns filed and taxes paid through the Electronic Filing and
Payments System (EFPS) shall be accepted.

NOTE: The latest income and business tax returns are those within the last
six months preceding the date of bid submission.

28.2(d) List licenses and permits relevant to the Project and the corresponding law
requiring it.

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

32.2 The performance security shall be in the following amount:

1. The amount of P _________________ if performance security is in cash,

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

2. The amount of P __________________if performance security is in Surety

Bond; or

3. Any combination of the foregoing proportionate to the share of form with

respect to total amount of security.

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 Section IV. General Conditions of Contract

Notes on the General Conditions of Contract

The details in the GCC and SCC, and submission thereof, along with other required
documents listed therein, expressing all the rights and obligations of the parties, should be
complete.

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

40
 TABLE OF CONTENTS

1. DEFINITIONS 44
2. INTERPRETATION 46
3. GOVERNING LANGUAGE AND LAW 46
4. COMMUNICATIONS 46
5. POSSESSION OF SITE 46
6. THE CONTRACTOR’S OBLIGATIONS 47
7. PERFORMANCE SECURITY 48
8. SUBCONTRACTING 49
9. LIQUIDATED DAMAGES 49
10. SITE INVESTIGATION REPORTS 50
11. THE PROCURING ENTITY, LICENSES AND PERMITS
50
12. CONTRACTOR’S RISK AND WARRANTY SECURITY 50
13. LIABILITY OF THE CONTRACTOR 52
14. PROCURING ENTITY’S RISK 52
15. INSURANCE 52
16. TERMINATION FOR DEFAULT OF CONTRACTOR 54
17. TERMINATION FOR DEFAULT OF PROCURING ENTITY
55
18. TERMINATION FOR OTHER CAUSES 55
19. PROCEDURES FOR TERMINATION OF CONTRACTS 56
20. FORCE MAJEURE, RELEASE FROM PERFORMANCE 59
21. RESOLUTION OF DISPUTES 60
22. SUSPENSION OF LOAN, CREDIT, GRANT, OR
APPROPRIATION 60
23. PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS
60
24. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY
THE PROCURING ENTITY’S REPRESENTATIVE 61

41
25. ACCELERATION AND DELAYS ORDERED BY THE
PROCURING ENTITY’S REPRESENTATIVE 61
26. EXTENSION OF THE INTENDED COMPLETION DATE
61
27. RIGHT TO VARY 61
28. CONTRACTORS RIGHT TO CLAIM 62
29. DAYWORKS 62
30. EARLY WARNING 62
31. PROGRAM OF WORK 63
32. MANAGEMENT CONFERENCES 63
33. BILL OF QUANTITIES 64
34. INSTRUCTIONS, INSPECTIONS AND AUDITS 64
35. IDENTIFYING DEFECTS 64
36. COST OF REPAIRS 64
37. CORRECTION OF DEFECTS 65
38. UNCORRECTED DEFECTS 65
39. ADVANCE PAYMENT 65
40. PROGRESS PAYMENTS 66
41. PAYMENT CERTIFICATES 66
42. RETENTION 67
43. VARIATION ORDERS 67
44. CONTRACT COMPLETION 69
45. SUSPENSION OF WORK 69
46. PAYMENT ON TERMINATION 70
47. EXTENSION OF CONTRACT TIME 71
48. PRICE ADJUSTMENT 72
49. COMPLETION 72
50. TAKING OVER 72
51. Operating and Maintenance Manuals 72

42
43
21. Definitions
For purposes of this Clause, boldface type is used to identify defined terms.

.1.1. The Arbiter is the person appointed jointly by the Procuring Entity and the
Contractor to resolve disputes in the first instance, as provided for in GCC
Clause 21.

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

.1.3. The Completion Date is the date of completion of the Works as certified by
the Procuring Entity’s Representative, in accordance with GCC Clause 49.

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

.1.5. The Contract Price is the price stated in the Letter of Acceptance and
thereafter to be paid by the Procuring Entity to the Contractor for the
execution of the Works in accordance with this Contract.

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

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

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

.1.9. Days are calendar days; months are calendar months.

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

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

.1.12. The Defects Liability Certificate is the certificate issued by Procuring

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

.1.13. The Defects Liability Period is the one year period between contract
completion and final acceptance within which the Contractor assumes the
responsibility to undertake the repair of any damage to the Works at his own
expense.

44
.1.14. Drawings are graphical presentations of the Works. They include all
supplementary details, shop drawings, calculations, and other information
provided or approved for the execution of this Contract.

.1.15. Equipment refers to all facilities, supplies, appliances, materials or things

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

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

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

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

.1.19. Permanent Works all permanent structures and all other project features and
facilities required to be constructed and completed in accordance with this
Contract which shall be delivered to the Procuring Entity and which shall
remain at the Site after the removal of all Temporary Works.

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

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

.1.22. The Procuring Entity’s Representative refers to the Head of the

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

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

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

.1.25. Slippage is a delay in work execution occurring when actual accomplishment

falls below the target as measured by the difference between the scheduled and
actual accomplishment of the Work by the Contractor as established from the
work schedule. This is actually described as a percentage of the whole Works.

45
 .1.26. Specifications means the description of Works to be done and the qualities of
materials to be used, the equipment to be installed and the mode of
construction.

.1.27. The Start Date, as specified in the SCC, is the date when the Contractor is
obliged to commence execution of the Works. It does not necessarily coincide
with any of the Site Possession Dates.

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

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

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

.1.30. Work(s) refer to the Permanent Works and Temporary Works to be executed
by the Contractor in accordance with this Contract, including (i) the furnishing
of all labor, materials, equipment and others incidental, necessary or
convenient to the complete execution of the Works; (ii) the passing of any tests
before acceptance by the Procuring Entity’s Representative; (iii) and the
carrying out of all duties and obligations of the Contractor imposed by this
Contract as described in the SCC.

22. Interpretation
23. In interpreting the Conditions of Contract, singular also means plural, male also
means female or neuter, and the other way around. Headings have no significance.
Words have their normal meaning under the language of this Contract unless
specifically defined. The Procuring Entity’s Representative will provide instructions
clarifying queries about the Conditions of Contract.

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

25. Governing Language and Law

26. This Contract has been executed in the English language, which shall be the binding
and controlling language for all matters relating to the meaning or interpretation of
this Contract. All correspondence and other documents pertaining to this Contract
which are exchanged by the parties shall be written in English.

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

28. Communications

46
 Communications between parties that are referred to in the Conditions shall be
effective only when in writing. A notice shall be effective only when it is received by
the concerned party.

29. Possession of Site

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

31. If possession of a portion is not given by the date stated in the SCC Clause 5.1, the
Procuring Entity will be deemed to have delayed the start of the relevant activities.
The resulting adjustments in contact time to address such delay shall be in accordance
with GCC Clause 47.

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

33. The Contractor shall allow the Procuring Entity’s Representative and any person
authorized by the Procuring Entity’s Representative access to the Site and to any place
where work in connection with this Contract is being carried out or is intended to be
carried out.

34. The Contractor’s Obligations

35. The Contractor shall carry out the Works properly and in accordance with this
Contract. The Contractor shall provide all supervision, labor, Materials, Plant and
Contractor's Equipment, which may be required. All Materials and Plant on Site shall
be deemed to be the property of the Procuring Entity.

36. The Contractor shall commence execution of the Works on the Start Date and shall
carry out the Works in accordance with the Program of Work submitted by the
Contractor, as updated with the approval of the Procuring Entity’s Representative, and
complete them by the Intended Completion Date.

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

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

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

47
40. If the Procuring Entity’s Representative asks the Contractor to remove a member of
the Contractor’s staff or work force, for justifiable cause, the Contractor shall ensure
that the person leaves the Site within seven (7) days and has no further connection
with the Work in this Contract.

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

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

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

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

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

45. Performance Security

46. Within ten (10) calendar days from receipt of the Notice of Award from the Procuring
Entity but in no case later than the signing of the contract by both parties, the
Contractor shall furnish the performance security in any the forms prescribed in ITB
Clause 32.2.

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

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

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

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

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

()c Other terms specified in the SCC.

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

the amount and form specified in ITB Clause 32.2 to cover any

48
 cumulative increase of more than ten percent (10%) over the original
value of the contract as a result of amendments to order or change
orders, extra work orders and supplemental agreements, as the case
may be. The Contractor shall cause the extension of the validity of the
performance security to cover approved contract time extensions.

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

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

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

50. Subcontracting
51. Unless otherwise indicated in the SCC, the Contractor cannot subcontract Works
more than the percentage specified in ITB Clause 8.1.

52. Subcontracting of any portion of the Works does not relieve the Contractor of any
liability or obligation under this Contract. The Contractor will be responsible for the
acts, defaults, and negligence of any subcontractor, its agents, servants or workmen as
fully as if these were the Contractor’s own acts, defaults, or negligence, or those of its
agents, servants or workmen.

53. Subcontractors disclosed and identified during the bidding may be changed during the
implementation of this Contract, subject to compliance with the required
qualifications and the approval of the Procuring Entity.

54. Liquidated Damages

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

49
56. If the Intended Completion Date is extended after liquidated damages have been paid,
the Engineer of the Procuring Entity shall correct any overpayment of liquidated
damages by the Contractor by adjusting the next payment certificate. The Contractor
shall be paid interest on the overpayment, calculated from the date of payment to the
date of repayment, at the rates specified in GCC Clause 40.3.

57. Site Investigation Reports

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

58. The Procuring Entity, Licenses and Permits

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

59. Contractor’s Risk and Warranty Security

60. The Contractor shall assume full responsibility for the Works from the time project
construction commenced up to final acceptance by the Procuring Entity and shall be
held responsible for any damage or destruction of the Works except those occasioned
by force majeure. The Contractor shall be fully responsible for the safety, protection,
security, and convenience of his personnel, third parties, and the public at large, as
well as the Works, Equipment, installation, and the like to be affected by his
construction work.

61. The defects liability period for infrastructure projects shall be one year from contract
completion up to final acceptance by the Procuring Entity. During this period, the
Contractor shall undertake the repair works, at his own expense, of any damage to the
Works on account of the use of materials of inferior quality within ninety (90) days
from the time the Head of the Procuring Entity has issued an order to undertake repair.
In case of failure or refusal to comply with this mandate, the Procuring Entity shall
undertake such repair works and shall be entitled to full reimbursement of expenses
incurred therein upon demand.

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

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

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

attributable to improper construction, use of inferior

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 quality/substandard materials, and any violation of the contract plans
and specifications, the contractor shall be held liable;

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

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

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

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

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

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

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

()f The warranty against Structural Defects/Failures, except those

occasioned on force majeure, shall cover the period specified in the
SCC reckoned from the date of issuance of the Certificate of Final
Acceptance by the Procuring Entity.

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

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

Minimum Amount in
Form of Warranty Percentage (%) of Total
Contract Price
()h Cash or letter of
credit issued by Universal or
Commercial bank: provided, however,
that the letter of credit shall be Five Percent (5%)
confirmed or authenticated by a
Universal or Commercial bank, if
issued by a foreign bank
()i Bank guarantee Ten Percent (10%)
confirmed by Universal or
Commercial bank: provided, however,

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 that the letter of credit shall be
confirmed or authenticated by a
Universal or Commercial bank, if
issued by a foreign bank
()j Surety bond callable
upon demand issued by GSIS or any
Thirty Percent (30%)
surety or insurance company duly
certified by the Insurance Commission

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

In case of structural defects/failure occurring during the applicable warranty period provided
in GCC Clause 12.5, the Procuring Entity shall undertake the necessary restoration or
reconstruction works and shall be entitled to full reimbursement by the parties found
to be liable for expenses incurred therein upon demand, without prejudice to the filing
of appropriate administrative, civil, and/or criminal charges against the responsible
persons as well as the forfeiture of the warranty security posted in favor of the
Procuring Entity.

1. Liability of the Contractor

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

2. Procuring Entity’s Risk

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

()a The risk of personal injury, death, or loss of or damage to property

(excluding the Works, Plant, Materials, and Equipment), which are due
to:

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

Procuring Entity after the official acceptance of the works; or

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

legal right by the Procuring Entity or by any person employed
by or contracted to him except the Contractor.

()b The risk of damage to the Works, Plant, Materials, and Equipment to
the extent that it is due to a fault of the Procuring Entity or in the
Procuring Entity’s design, or due to war or radioactive contamination
directly affecting the country where the Works are to be executed.

4. Insurance

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

()a Contractor’s All Risk Insurance;

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

Supplies owned by the Contractor;

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

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

or indirect act or omission causing damage to third persons.

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

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

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

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

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

In the event the Contractor fails to observe the above safeguards, the Procuring Entity may, at
the Contractor’s expense, take whatever measure is deemed necessary for its
protection and that of the Contractor’s personnel and third parties, and/or order the
interruption of dangerous Works. In addition, the Procuring Entity may refuse to
make the payments under GCC Clause 40 until the Contractor complies with this
Clause.

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

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

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 ()i become bankrupt;

()ii been placed under receivership or under a management

committee;

()iii been sued for suspension of payment; or

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

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

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

2. Termination for Default of Contractor

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

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

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

6. The Contractor:

()a abandons the contract Works, refuses or fails to comply with a valid
instruction of the Procuring Entity or fails to proceed expeditiously and
without delay despite a written notice by the Procuring Entity;

()b does not actually have on the project Site the minimum essential
equipment listed on the Bid necessary to prosecute the Works in
accordance with the approved Program of Work and equipment
deployment schedule as required for the project;

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

()d neglects or refuses to remove materials or to perform a new Work that

has been rejected as defective or unsuitable; or

()e sub-lets any part of this Contract without approval by the Procuring
Entity.

()f All materials on the Site, Plant, Equipment, and Works shall be
deemed to be the property of the Procuring Entity if this Contract is
rescinded because of the Contractor’s default.

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7. Termination for Default of Procuring Entity
The Contractor may terminate this Contract with the Procuring Entity if the works are
completely stopped for a continuous period of at least sixty (60) calendar days
through no fault of its own, due to any of the following reasons:

()a Failure of the Procuring Entity to deliver, within a reasonable time,

supplies, materials, right-of-way, or other items it is obligated to furnish under
the terms of this Contract; or

()b The prosecution of the Work is disrupted by the adverse peace and
order situation, as certified by the Armed Forces of the Philippines Provincial
Commander and approved by the Secretary of National Defense.

8. Termination for Other Causes

9. The Procuring Entity may terminate this Contract, in whole or in part, at any time for
its convenience. The Head of the Procuring Entity may terminate this Contract for the
convenience of the Procuring Entity if he has determined the existence of conditions
that make Project Implementation economically, financially or technically impractical
and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law
and National Government policies.

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

11. Fundamental breaches of Contract shall include, but shall not be limited to, the
following:

()a The Contractor stops work for twenty eight (28) days when no
stoppage of work is shown on the current Program of Work and the
stoppage has not been authorized by the Procuring Entity’s
Representative;

()b The Procuring Entity’s Representative instructs the Contractor to delay

the progress of the Works, and the instruction is not withdrawn within
twenty eight (28) days;

()c The Procuring Entity shall terminate this Contract if the Contractor is
declared bankrupt or insolvent as determined with finality by a court of
competent jurisdiction. In this event, termination will be without
compensation to the Contractor, provided that such termination will
not prejudice or affect any right of action or remedy which has accrued
or will accrue thereafter to the Procuring Entity and/or the Contractor.
In the case of the Contractor's insolvency, any Contractor's Equipment
which the Procuring Entity instructs in the notice is to be used until the
completion of the Works;

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

paid by the Procuring Entity to the Contractor within eighty four (84)

55
 days from the date of the Procuring Entity’s Representative’s
certificate;

()e The Procuring Entity’s Representative gives Notice that failure to

correct a particular Defect is a fundamental breach of Contract and the
Contractor fails to correct it within a reasonable period of time
determined by the Procuring Entity’s Representative;

()f The Contractor does not maintain a Security, which is required;

()g The Contractor has delayed the completion of the Works by the
number of days for which the maximum amount of liquidated damages
can be paid, as defined in the GCC Clause 9; and

()h In case it is determined prima facie by the Procuring Entity that the
Contractor has engaged, before or during the implementation of the
contract, in unlawful deeds and behaviors relative to contract
acquisition and implementation, such as, but not limited to, the
following:

()i corrupt, fraudulent, collusive, coercive, and obstructive

practices as defined in ITB Clause 3.1(a), unless otherwise
specified in the SCC;

()ii drawing up or using forged documents;

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

production contrary to rules of science or the trade; and

()iv any other act analogous to the foregoing.

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

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

()vi When persons from either party to this Contract gives notice of
a fundamental breach to the Procuring Entity’s Representative
in order to terminate the existing contract for a cause other than
those listed under GCC Clause 18.3, the Procuring Entity’s
Representative shall decide whether the breach is fundamental
or not.

()vii If this Contract is terminated, the Contractor shall stop work

immediately, make the Site safe and secure, and leave the Site
as soon as reasonably possible.

12. Procedures for Termination of Contracts

13. The following provisions shall govern the procedures for the termination of this
Contract:

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()a Upon receipt of a written report of acts or causes which may constitute
ground(s) for termination as aforementioned, or upon its own initiative,
the Procuring Entity shall, within a period of seven (7) calendar days,
verify the existence of such ground(s) and cause the execution of a
Verified Report, with all relevant evidence attached;

()b Upon recommendation by the Procuring Entity, the Head of the

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

()i that this Contract is being terminated for any of the ground(s)
afore-mentioned, and a statement of the acts that constitute the
ground(s) constituting the same;

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

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

Contract should not be terminated; and

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

The Notice to Terminate shall be accompanied by a copy of the

Verified Report;

()c Within a period of seven (7) calendar days from receipt of the Notice
of Termination, the Contractor shall submit to the Head of the
Procuring Entity a verified position paper stating why the contract
should not be terminated. If the Contractor fails to show cause after
the lapse of the seven (7) day period, either by inaction or by default,
the Head of the Procuring Entity shall issue an order terminating the
contract;

()d The Procuring Entity may, at anytime before receipt of the Bidder’s
verified position paper described in item (c) above withdraw the Notice
to Terminate if it is determined that certain items or works subject of
the notice had been completed, delivered, or performed before the
Contractor’s receipt of the notice;

()e Within a non-extendible period of ten (10) calendar days from receipt
of the verified position paper, the Head of the Procuring Entity shall
decide whether or not to terminate this Contract. It shall serve a
written notice to the Contractor of its decision and, unless otherwise
provided in the said notice, this Contract is deemed terminated from
receipt of the Contractor of the notice of decision. The termination
shall only be based on the ground(s) stated in the Notice to Terminate;
and

()f The Head of the Procuring Entity may create a Contract Termination
Review Committee (CTRC) to assist him in the discharge of this

57
 function. All decisions recommended by the CTRC shall be subject to
the approval of the Head of the Procuring Entity.

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

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

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

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

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

()i Employment of competent technical personnel, competent

engineers and/or work supervisors;

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

approved plans and specifications and contract provisions;

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

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

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

and manpower; and

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

after its expiration during the course of contract
implementation.

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

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

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

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

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 following acts by the Contractor shall be construed as poor
performance:

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

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

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

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

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

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

the contractor shall also be forfeited.

14. Force Majeure, Release From Performance

15. For purposes of this Contract the terms “force majeure” and “fortuitous event” may be
used interchangeably. In this regard, a fortuitous event or force majeure shall be
interpreted to mean an event which the Contractor could not have foreseen, or which
though foreseen, was inevitable. It shall not include ordinary unfavorable weather
conditions; and any other cause the effects of which could have been avoided with the
exercise of reasonable diligence by the Contractor.

16. If this Contract is discontinued by an outbreak of war or by any other event entirely
outside the control of either the Procuring Entity or the Contractor, the Procuring
Entity’s Representative shall certify that this Contract has been discontinued. The
Contractor shall make the Site safe and stop work as quickly as possible after
receiving this certificate and shall be paid for all works carried out before receiving it
and for any Work carried out afterwards to which a commitment was made.

17. If the event continues for a period of eighty-four (84) days, either party may then give
notice of termination, which shall take effect twenty-eight (28) days after the giving
of the notice.

18. After termination, the Contractor shall be entitled to payment of the unpaid balance of
the value of the Works executed and of the materials and Plant reasonably delivered to
the Site, adjusted by the following:

()a any sum to which the Contractor is entitled under GCC Clause 28;

()b the cost of his suspension and demobilization;

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

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

19. Resolution of Disputes

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

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

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

23. Suspension of Loan, Credit, Grant, or Appropriation

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

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

()b If the Contractor has not received sums due it for work already done within
forty-five (45) days from the time the Contractor’s claim for payment has been
certified by the Procuring Entity’s Representative, the Contractor may
immediately issue a suspension of work notice in accordance with GCC
Clause 45.2.

24. Procuring Entity’s Representative’s Decisions

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

26. The Procuring Entity’s Representative may delegate any of his duties and
responsibilities to other people, except to the Arbiter, after notifying the Contractor,
and may cancel any delegation after notifying the Contractor.

27. Approval of Drawings and Temporary Works by the

Procuring Entity’s Representative

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

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

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

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

32. Acceleration and Delays Ordered by the Procuring

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

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

35. Extension of the Intended Completion Date

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

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

38. Right to Vary

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

40. Variations shall be valued as follows:

()a At a lump sum price agreed between the parties;

()b where appropriate, at rates in this Contract;

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 ()c in the absence of appropriate rates, the rates in this Contract shall be
used as the basis for valuation; or failing which

()d at appropriate new rates, equal to or lower than current industry rates
and to be agreed upon by both parties and approved by the Head of the
Procuring Entity.

41. Contractor's Right to Claim

If the Contractor incurs cost as a result of any of the events under GCC Clause 13, the
Contractor shall be entitled to the amount of such cost. If as a result of any of the said
events, it is necessary to change the Works, this shall be dealt with as a Variation.

42. Dayworks
43. Subject to GCC Clause 43 on Variation Order, and if applicable as indicated in the
SCC, the Dayworks rates in the Contractor’s Bid shall be used for small additional
amounts of work only when the Procuring Entity’s Representative has given written
instructions in advance for additional work to be paid for in that way.

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

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

46. Early Warning

47. The Contractor shall warn the Procuring Entity’s Representative at the earliest
opportunity of specific likely future events or circumstances that may adversely affect
the quality of the work, increase the Contract Price, or delay the execution of the
Works. The Procuring Entity’s Representative may require the Contractor to provide
an estimate of the expected effect of the future event or circumstance on the Contract
Price and Completion Date. The estimate shall be provided by the Contractor as soon
as reasonably possible.

48. The Contractor shall cooperate with the Procuring Entity’s Representative in making
and considering proposals for how the effect of such an event or circumstance can be
avoided or reduced by anyone involved in the work and in carrying out any resulting
instruction of the Procuring Entity’s Representative.

49. Program of Work

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

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51. An update of the Program of Work shall the show the actual progress achieved on
each activity and the effect of the progress achieved on the timing of the remaining
work, including any changes to the sequence of the activities.

52. The Contractor shall submit to the Procuring Entity’s Representative for approval an
updated Program of Work at intervals no longer than the period stated in the SCC. If
the Contractor does not submit an updated Program of Work within this period, the
PROCURING ENTITY’s Representative may withhold the amount stated in the SCC
from the next payment certificate and continue to withhold this amount until the next
payment after the date on which the overdue Program of Work has been submitted.

53. The Procuring Entity’s Representative’s approval of the Program of Work shall not
alter the Contractor’s obligations. The Contractor may revise the Program of Work
and submit it to the Procuring Entity’s Representative again at any time. A revised
Program of Work shall show the effect of any approved Variations.

54. When the Program of Work is updated, the Contractor shall provide the Procuring
Entity’s Representative with an updated cash flow forecast. The cash flow forecast
shall include different currencies, as defined in the Contract, converted as necessary
using the Contract exchange rates.

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

56. Management Conferences

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

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

59. Bill of Quantities

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

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

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

63
 the necessary adjustments to allow for the changes subject to applicable laws, rules,
and regulations.

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

64. Instructions, Inspections and Audits

65. The Procuring Entity’s personnel shall at all reasonable times during construction of
the Work be entitled to examine, inspect, measure and test the materials and
workmanship, and to check the progress of the construction.

66. If the Procuring Entity’s Representative instructs the Contractor to carry out a test not
specified in the Specification to check whether any work has a defect and the test
shows that it does, the Contractor shall pay for the test and any samples. If there is no
defect, the test shall be a Compensation Event.

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

68. Identifying Defects

The Procuring Entity’s Representative shall check the Contractor’s work and notify
the Contractor of any defects that are found. Such checking shall not affect the
Contractor’s responsibilities. The Procuring Entity’s Representative may instruct the
Contractor to search uncover defects and test any work that the Procuring Entity’s
Representative considers below standards and defective.

69. Cost of Repairs

Loss or damage to the Works or Materials to be incorporated in the Works between
the Start Date and the end of the Defects Liability Periods shall be remedied by the
Contractor at the Contractor’s cost if the loss or damage arises from the Contractor’s
acts or omissions.

70. Correction of Defects

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

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

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

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

75. Uncorrected Defects

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

77. The use of a third party to correct defects that are uncorrected by the Contractor will
in no way relieve the Contractor of its liabilities and warranties under the Contract.

78. Advance Payment

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

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

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

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

83. The Procuring Entity will provide an Advance Payment on the Contract Price as
stipulated in the Conditions of Contract, subject to the maximum amount stated in
SCC Clause 39.1.

84. Progress Payments

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

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

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

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

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

()d Amount to cover third party liabilities.

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

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

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

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

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

87. Payment Certificates

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

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

90. The value of Work executed shall:

()a be determined by the Procuring Entity’s Representative;

()b comprise the value of the quantities of the items in the Bill of
Quantities completed; and

()c include the valuations of approved variations.

()d The Procuring Entity’s Representative may exclude any item certified
in a previous certificate or reduce the proportion of any item
previously certified in any certificate in the light of later information.

91. Retention
92. The Procuring Entity shall retain from each payment due to the Contractor an amount
equal to a percentage thereof using the rate as specified in ITB Sub-Clause 42.2.

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93. Progress payments are subject to retention of ten percent (10%), referred to as the
“retention money.” Such retention shall be based on the total amount due to the
Contractor prior to any deduction and shall be retained from every progress payment
until fifty percent (50%) of the value of Works, as determined by the Procuring Entity,
are completed. If, after fifty percent (50%) completion, the Work is satisfactorily
done and on schedule, no additional retention shall be made; otherwise, the ten
percent (10%) retention shall again be imposed using the rate specified therefor.

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

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

96. Variation Orders

97. Variation Orders may be issued by the Procuring Entity to cover any increase/decrease
in quantities, including the introduction of new work items that are not included in the
original contract or reclassification of work items that are either due to change of
plans, design or alignment to suit actual field conditions resulting in disparity between
the preconstruction plans used for purposes of bidding and the “as staked plans” or
construction drawings prepared after a joint survey by the Contractor and the
Procuring Entity after award of the contract, provided that the cumulative amount of
the Variation Order does not exceed ten percent (10%) of the original project cost. The
addition/deletion of Works should be within the general scope of the project as bid
and awarded. The scope of works shall not be reduced so as to accommodate a
positive Variation Order. A Variation Order may either be in the form of a Change
Order or Extra Work Order.

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

99. An Extra Work Order may be issued by the Procuring Entity to cover the introduction
of new work necessary for the completion, improvement or protection of the project
which were not included as items of Work in the original contract, such as, where
there are subsurface or latent physical conditions at the site differing materially from
those indicated in the contract, or where there are duly unknown physical conditions
at the site of an unusual nature differing materially from those ordinarily encountered
and generally recognized as inherent in the Work or character provided for in the
contract.

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100. Any cumulative Variation Order beyond ten percent (10%) shall be subject of another
contract to be bid out if the works are separable from the original contract. In
exceptional cases where it is urgently necessary to complete the original scope of
work, the Head of the Procuring Entity may authorize a positive Variation Order go
beyond ten percent (10%) but not more than twenty percent (20%) of the original
contract price, subject to the guidelines to be determined by the GPPB: Provided,
however, That appropriate sanctions shall be imposed on the designer, consultant or
official responsible for the original detailed engineering design which failed to
consider the Variation Order beyond ten percent (10%).

101. In claiming for any Variation Order, the Contractor shall, within seven (7) calendar
days after such work has been commenced or after the circumstances leading to such
condition(s) leading to the extra cost, and within twenty-eight (28) calendar days
deliver a written communication giving full and detailed particulars of any extra cost
in order that it may be investigated at that time. Failure to provide either of such
notices in the time stipulated shall constitute a waiver by the contractor for any claim.
The preparation and submission of Variation Orders are as follows:

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

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

()b The Head of the Procuring Entity or his duly authorized representative,
upon receipt of the proposed Change Order or Extra Work Order shall
immediately instruct the technical staff of the Procuring Entity’s to
conduct an on-the-spot investigation to verify the need for the Work to
be prosecuted. A report of such verification shall be submitted directly
to the Head of the Procuring Entity or his duly authorized
representative.

()c The, Head of the Procuring Entity or his duly authorized

representative, after being satisfied that such Change Order or Extra
Work Order is justified and necessary, shall review the estimated
quantities and prices and forward the proposal with the supporting
documentation to the Head of Procuring Entity for consideration.

()d If, after review of the plans, quantities and estimated unit cost of the
items of work involved, the proper office of the procuring entity
empowered to review and evaluate Change Orders or Extra Work
Orders recommends approval thereof, Head of the Procuring Entity or
his duly authorized representative, believing the Change Order or Extra
Work Order to be in order, shall approve the same.

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

102. Contract Completion

Once the project reaches an accomplishment of ninety-five (95%) of the total contract
amount, the Procuring Entity may create an inspectorate team to make preliminary
inspection and submit a punch-list to the Contractor in preparation for the final
turnover of the project. Said punch-list will contain, among others, the remaining
Works, Work deficiencies for necessary corrections, and the specific duration/time to
fully complete the project considering the approved remaining contract time. This,
however, shall not preclude the claim of the Procuring Entity for liquidated damages.

103. Suspension of Work

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

105. The Contractor or its duly authorized representative shall have the right to suspend
work operation on any or all projects/activities along the critical path of activities
after fifteen (15) calendar days from date of receipt of written notice from the
Contractor to the district engineer/regional director/consultant or equivalent official,
as the case may be, due to the following:

()a There exist right-of-way problems which prohibit the Contractor from
performing work in accordance with the approved construction
schedule.

()b Requisite construction plans which must be owner-furnished are not

issued to the contractor precluding any work called for by such plans.

()c Peace and order conditions make it extremely dangerous, if not

possible, to work. However, this condition must be certified in writing
by the Philippine National Police (PNP) station which has
responsibility over the affected area and confirmed by the Department
of Interior and Local Government (DILG) Regional Director.

()d There is failure on the part of the Procuring Entity to deliver

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

()e Delay in the payment of Contractor’s claim for progress billing beyond
forty-five (45) calendar days from the time the Contractor’s claim has
been certified to by the procuring entity’s authorized representative

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 that the documents are complete unless there are justifiable reasons
thereof which shall be communicated in writing to the Contractor.

()f In case of total suspension, or suspension of activities along the critical

path, which is not due to any fault of the Contractor, the elapsed time
between the effective order of suspending operation and the order to
resume work shall be allowed the Contractor by adjusting the contract
time accordingly.

106. Payment on Termination

107. If the Contract is terminated because of a fundamental breach of Contract by the
Contractor, the Procuring Entity’s Representative shall issue a certificate for the value
of the work done and Materials ordered less advance payments received up to the date
of the issue of the certificate and less the percentage to apply to the value of the work
not completed, as indicated in the SCC. Additional Liquidated Damages shall not
apply. If the total amount due to the Procuring Entity exceeds any payment due to the
Contractor, the difference shall be a debt payable to the Procuring Entity.

108. If the Contract is terminated for the Procuring Entity’s convenience or because of a
fundamental breach of Contract by the Procuring Entity, the Procuring Entity’s
Representative shall issue a certificate for the value of the work done, Materials
ordered, the reasonable cost of removal of Equipment, repatriation of the Contractor’s
personnel employed solely on the Works, and the Contractor’s costs of protecting and
securing the Works, and less advance payments received up to the date of the
certificate.

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

110. If the Contractor has terminated the Contract under GCC Clauses 17 or 18, the
Procuring Entity shall promptly return the Performance Security to the Contractor.

111. Extension of Contract Time

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

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

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

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

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

117. Price Adjustment

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

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

119. Taking Over

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

120. Operating and Maintenance Manuals

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

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

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

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 Special Conditions of Contract

GCC Clause

1.16 The Intended Completion Date is 90 calendar days.

1.21 The Procuring Entity is LGU CASTILLA.

1.22 The Procuring Entity’s Representative is Engr. Danilo A. Laurinaria.

1.23 The Site is located at Cogon , Castilla Sorsogon and is defined in

drawings No. [see attached drawing].

List here locations of other Sites, if any.

1.27 The Start Date is issuance of Notice to Proceed.

.

1.30 The Works consist Improvement of Water System at Cogon, Castilla,

Sorsogon

2.2 If different dates are specified for completion of the Works by section
(“sectional completion”), these dates should be listed here

5.1 The Procuring Entity shall give possession of all parts of the Site to the
Contractor after the Pre-bid Conference.

6.5 The Contractor shall employ the following Key Personnel:

[List key personnel by name and designation as provided in the ITB)

7.4(c) No further instructions.

7.7 No further instructions.

8.1 No further instructions.

10 The site investigation reports are: none

12.3 No further instructions.

12.5 In case of other structures, such as Bailey and wooden bridges, shallow
wells, spring developments, and other similar structures: Two (2) years.

13 No additional provision.

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18.3(h)(i) No further instructions.

21.2 The Arbiter is: None.

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

31.1 The Contractor shall submit the Program of Work to the Procuring
Entity’s Representative within five (5) days of delivery of the Letter of
Acceptance.

31.3 The period between Program of Work updates is five (5) days.

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

Work is P ____________.
34.3 The Funding Source is the Government of the Philippines.

39.1 The amount of the advance payment is P _____________

40.1 Materials and equipment delivered on the site but not completely put in
place shall be included for payment.

51.1 The date by which operating and maintenance manuals are required is on
or before the project completion period 120 calendar days.

The date by which “as built” drawings are required is on or before the
project completion period 90 calendar days.
51.2 The amount to be withheld for failing to produce “as built” drawings
and/or operating and maintenance manuals by the date required is Php
_________

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

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

There are considerable advantages in standardizing General Specifications for repetitive

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

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

Sample Clause: Equivalency of Standards and Codes

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

76
consent. Differences between the standards specified and the proposed alternative
standards shall be fully described in writing by the Contractor and submitted to the
Procuring Entity’s Representative at least twenty eight (28) days prior to the date when the
Contractor desires the Procuring Entity’s Representative’s consent. In the event the
Procuring Entity’s Representative determines that such proposed deviations do not ensure
substantially equal or higher quality, the Contractor shall comply with the standards
specified in the documents.

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

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Section VII. Drawings
 Section VIII. Bill of Quantities

Notes on the Bill of Quantities

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

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

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

79
by other contractors (refer to GCC Clause 8) should be indicated in the relevant part of the
Bill of Quantities as a particular provisional sum with an appropriate brief description. A
separate procurement procedure is normally carried out by the Procuring Entity to select
such specialized contractors. To provide an element of competition among the Bidders in
respect of any facilities, amenities, attendance, etc., to be provided by the successful
Bidder as prime Contractor for the use and convenience of the specialist contractors, each
related provisional sum should be followed by an item in the Bill of Quantities inviting the
Bidder to quote a sum for such amenities, facilities, attendance, etc.

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

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Contract
Name: Improvement of Water System at Cogon, Castilla, Sorsogon
Location
: Cogon, Castilla, Sorsogon

BILL OF QUANTITIES

Item Unit
Description Unit Quantity Amount
No. Cost

I EXCAVATION & BACKFILLING 183.60 CU. M

II PIPELINES 1,020 L.M.

81
 Section IX. Bidding Forms

TABLE OF CONTENTS

Bid Form 83
Form of Contract Agreement 85
Omnibus Sworn Statement 87

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 Bid Form

Date: ________________________
IAEB3 No: ____________________

To: [name and address of PROCURING ENTITY]

Address: [insert address]

We, the undersigned, declare that:

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

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

The total price of our Bid, excluding any discounts offered in item (d) below is: [insert
information];

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

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

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

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

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

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

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

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

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

Name:

In the capacity of:

Signed:

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

Date: ___________

84
 Form of Contract Agreement

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

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

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement, words and

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

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

(a) General and Special Conditions of Contract;

(b) Drawings/Plans;
(c) Specifications;
(d) Invitation to Apply for Eligibility and to Bid;
(e) Instructions to Bidders;
(f) Bid Data Sheet;
(g) Addenda and/or Supplemental/Bid Bulletins, if any;
(h) Bid form, including all the documents/statements contained in the
Bidder’s bidding envelopes, as annexes;
(i) Eligibility requirements, documents and/or statements;
(j) Performance Security;
(k) Credit line issued by a licensed bank, if any;
(l) Notice of Award of Contract and the Bidder’s conforme thereto;
(m) Other contract documents that may be required by existing laws and/or
the Entity.

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

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

85
 4. The Entity hereby covenants to pay the Contractor in consideration of the
execution and completion of the Works and the remedying of defects wherein,
the Contract Price or such other sum as may become payable under the
provisions of this Contract at the times and in the manner prescribed by this
Contract.

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

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

Signed, sealed, delivered by the (for the

Contractor).

Binding Signature of PROCURING ENTITY

________________________________________________

Binding Signature of Contractor

_____________________________________________

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

86
 Omnibus Sworn Statement

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

A F F I D AV I T

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

1. Select one, delete the other:

If a sole proprietorship: I am the sole proprietor of [Name of Bidder] with office

address at [address of Bidder];

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

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

2. Select one, delete the other:

If a sole proprietorship: As the owner and sole proprietor of [Name of Bidder], I have
full power and authority to do, execute and perform any and all acts necessary to
represent it in the bidding for [Name of the Project] of the [Name of the Procuring
Entity];

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

and authority to do, execute and perform any and all acts necessary and/or to
represent the [Name of Bidder] in the bidding as shown in the attached [state title of
attached document showing proof of authorization (e.g., duly notarized Secretary’s
Certificate issued by the corporation or the members of the joint venture)];

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

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

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

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

87
 5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its duly
authorized representative(s) to verify all the documents submitted;

6. Select one, delete the rest:

If a sole proprietorship: I am not related to the Head of the Procuring Entity, members
of the Bids and Awards Committee (BAC), the Technical Working Group, and the
BAC Secretariat, the head of the Project Management Office or the end-user unit, and
the project consultants by consanguinity or affinity up to the third civil degree;

If a partnership or cooperative: None of the officers and members of [Name of

Bidder] is related to the Head of the Procuring Entity, members of the Bids and
Awards Committee (BAC), the Technical Working Group, and the BAC Secretariat,
the head of the Project Management Office or the end-user unit, and the project
consultants by consanguinity or affinity up to the third civil degree;

If a corporation or joint venture: None of the officers, directors, and controlling

stockholders of [Name of Bidder] is related to the Head of the Procuring Entity,
members of the Bids and Awards Committee (BAC), the Technical Working Group,
and the BAC Secretariat, the head of the Project Management Office or the end-user
unit, and the project consultants by consanguinity or affinity up to the third civil
degree;

7. [Name of Bidder] complies with existing labor laws and standards; and

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

Bidder:

a) Carefully examine all of the Bidding Documents;

b) Acknowledge all conditions, local or otherwise, affecting the implementation of

the Contract;

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

d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the

Project].

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.

_____________________________________
Bidder’s Representative/Authorized Signatory

[JURAT]

* This form will not apply for WB funded projects.

88
 Section X. Foreign-Assisted Projects
Notes on Foreign-Assisted Projects
This Section is intended to assist the Procuring Entity in providing the specific information
for foreign-assisted projects of the Asian Development Bank (ADB), the Japan
International Cooperation Agency (JICA), and the World Bank.

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

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

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

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

The Procuring Entity shall allow the Bidders sufficient time to study the Bidding
Documents, prepare and complete responsive bids, and submit their bids. A period of at
least 30 days for bid preparation shall be required.

Notes on the Invitation to Bid

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

(a) Advertised at least once in a newspaper of general nationwide circulation which has
been regularly published for at least two (2) years before the date of issue of the
advertisement, subject to Sections 21.2.2 of the IRR of R.A. 9184;

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

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

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

Apart from the essential items listed in the Bidding Documents, the Invitation to Bid

89
should also indicate the following:

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

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

(c) The deadline for the submission and receipt of bids from the last day of posting
of the Invitation to Bid; and

(d) Any important bid evaluation criteria.

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

Notes on the Bid Data Sheet

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

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

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

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

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

Notes on the Special Conditions of the Contract

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

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

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

Conditions of Contract must be incorporated.

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

90
 General Conditions of Contract, as necessitated by the circumstances of the specific
project, must also be incorporated.

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

91
 TABLE OF CONTENTS

INVITATION TO BID FOR FOREIGN-ASSISTED PROJECTS 94

ASIAN DEVELOPMENT BANK BID DATA SHEET 96
ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS OF
CONTRACT 101
World Bank Special Conditions of Contract 109

92
 Invitation to Bid for Foreign-Assisted Projects

[Letterhead of the Procuring Entity]

INVITATION TO BID FOR [Insert name of Project]

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

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

2. The [insert name of Procuring Entity] now invites bids for [insert brief description of
Works to be procured].4 Completion of the Works is required [insert the required
completion date or expected contract duration]. Bidders should have completed, within
________ (__), a contract similar to the Project. The description of an eligible bidder is
contained in the Bidding Documents, particularly, in Section II. Instructions to Bidders.

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

[If ADB-funded project, please do not indicate the ABC in this Invitation to Bid.]

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

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

[insert date of availability of Bidding Documents] from the address below and upon
payment of a nonrefundable fee for the bidding documents in the amount [ insert
amount in pesos].

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

4 A brief description of the scope of Works should be provided, including quantities, location of project, and
other information necessary to enable potential bidders to decide whether or not to respond to the invitation.
93
6. The [insert name of the Procuring Entity] will hold a Pre-Bid Conference on [insert
time and date] at [insert address for Pre-Bid Conference, if applicable], which shall be
open to all interested parties.

7. Bids must be delivered to the address below on or before [insert date and time] at
[insert address for submission and receipt of bids]. All bids must be accompanied by a
bid security in the amount of __________ in [insert the acceptable form].

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

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

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

10. For further information, please refer to:

[Insert name of officer]

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

_________________________________

[Insert Name and Signature of the BAC

Chairperson or the Authorized
Representative of the BAC Chairperson]

94
 Asian Development Bank Bid Data Sheet

ITB Clause

1.1 The PROCURING ENTITY is [insert name of purchasing organization].

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

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

the contract].

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

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

The name of the Project is [Insert the name of the project or “Not
Applicable”]

Payments by the Foreign Funding Source will be made only at the request of
the PROCURING ENTITY and upon approval by the Funding Source in
accordance with the terms and conditions of the Loan Agreement between
the PROCURING ENTITY and the Funding Source in accordance with the
International or Executive Agreement dated ______________________
(hereinafter called the "Loan Agreement").

The payments will be subject in all respect to the terms and conditions of
that Loan Agreement and the applicable law. No party other than the
PROCURING ENTITY shall derive any rights from the Loan Agreement or
have any claim to the funds.

3.1 ADB’s anticorruption policy requires borrowers (including beneficiaries of

ADB-financed activity), as well as bidders, suppliers, and contractors under
ADB-financed contracts, to observe the highest standard of ethics during the
procurement and execution of such contracts. In pursuance of this policy,
ADB:

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

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

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

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

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

(iii) “coercive practice” means impairing or harming, or

threatening to impair or harm, directly or indirectly, any party

95
 or the property of the party to influence improperly the
actions of a party;

(iv)“collusive practice” means an arrangement between two or more

parties designed to achieve an improper purpose, including
influencing improperly the actions of another party;

(b) will reject a proposal for award if it determines that the

bidder recommended for award has, directly or through an agent,
engaged in corrupt, fraudulent, collusive, or coercive practices in
competing for the contract in question;

(c) will cancel the portion of the financing allocated to a contract

if it determines at any time that representatives of the borrower or of
a beneficiary of ADB-financing engaged in corrupt, fraudulent,
collusive, or coercive practices during the procurement or the
execution of that contract, without the borrower having taken timely
and appropriate action satisfactory to ADB to remedy the situation;

(d) will sanction a firm or an individual, at any time, in accordance with

ADB’s Anticorruption Policy and Integrity Principles and Guidelines
(both as amended from time to time), including declaring ineligible,
either indefinitely or for a stated period of time, to participate in
ADB-financed or ADB-administered activities or to benefit from an
ADB-financed or ADB administered contract, financially or
otherwise, if it at any time determines that the firm or individual has,
directly or through an agent, engaged in corrupt, fraudulent,
collusive, or coercive or other prohibited practices.

5.1 Eligible Bidders are as described in ADB Procurement Guidelines as stated

in the Loan Agreement and as described on ADB’s web page www.adb.org

An Eligible Bidder shall be deemed to have the nationality of a country if it

is a citizen or constituted or incorporated, and operates in conformity with
the provisions of the laws of that country.

5.2 Eligible Bidders are as described in ADB Procurement Guidelines as stated

in the Loan Agreement and as described on ADB’s web page www.adb.org.

5.4 To be considered eligible and qualified a Bidder must have a successful

experience as prime contractor in the construction of at least one (1) work of
a nature and complexity equivalent to the Works generally in the last five (5)
years (to comply with this requirement, single works cited should be at least
eighty percent (80%) of value of estimated contract cost of Works under
bid), such being verifiable from completion certificates; and have an annual
turnover from all works averaged over the last three (3) years equal to one
hundred percent (100%) of the estimated value of the contract to be bid.

For this purpose, similar contracts shall refer to [insert description of

similar contracts].

96
 NOTE: ADB may set forth a different requirement depending on the nature,
method, or complexity of the contract to be bid provided said requirement is
clearly stated in the Bidding Documents.

8.1 Instruction is the same as the GOP Bid Data Sheet

8.2 Instruction is the same as the GOP Bid Data Sheet

9.1 The Procuring Entity will hold a pre-bid conference for this Project on [State
date and time] at [State address of venue].

NOTE: The pre-bid conference shall be held at least thirty (30) calendar
days before the deadline for the submission and receipt of bids.

10.1 Instruction is the same as the GOP Bid Data Sheet

12.1 The first envelope shall contain the following eligibility and technical
documents:

a. Eligibility Requirements

i. Registration Certification of the Company;

ii. List of relevant contracts that comply to the experience requirement
as specified in Section X BDS Clause 5.4 hereof;
iii. Audited financial statement for the past two years;
iv. In case of Joint Venture, the JV Agreement, if existing, or a signed
statement from the partner companies that they will enter into a JV
in case of award of contract;
b. Technical Documents

v. Project Requirements, which shall include the following:

(v.1) List of contractor’s personnel (viz, project Manager,

Project Engineers, Materials Engineers, and Foremen), to be
assigned to the contract to be bid, with their complete
qualification and experience data; and

(v.2) List of contractor’s equipment units, which are owned,

leased, and/or under purchase agreements, supported by
certification of availability of equipment from the equipment
lessor/vendor for the duration of the project;

vi. Bid security as required in the ITB;

vii. Sworn statement in accordance with Section 25.2(a)(iv) of the IRR

of RA 9184 and using the form prescribed in Section VIII. Bidding
Forms; and
viiii. A commitment from a Universal or Commercial Bank to extend a
credit line in favor of the bidder if awarded the contract for the
project.

97
 Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder.

12.1(a)(i) List any additional acceptable proof of registration mentioned in the ITB
Clause or state “No other acceptable proof of registration is recognized.
Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder. Such documents shall be translated in
English.”

12.1(a)(iv) Foreign bidders may submit their valid Philippine Contractors Accreditation
Board (PCAB) license and registration for the type and cost of the contract
for this Project as a pre-condition for award as provided in the Loan
Agreement.

13.1 Instruction is the same as the GOP Bid Data Sheet

13.2 There is no ceiling for Financial Proposals.

14.2 Instruction is the same as the GOP Bid Data Sheet

15.4 If the contract is less than eighteen (18) months duration, state "No further
instructions."

If the contract is of over eighteen (18) months duration, insert the

appropriate special condition of contract and state the following:
Adjustments are authorized in accordance with the price adjustment
provisions specified in the GCC Clause 48.

16.1 Instruction is the same as the GOP Bid Data Sheet

17.1 Instruction is the same as the GOP Bid Data Sheet

18.1 Instruction is the same as the GOP Bid Data Sheet

18.2 Instruction is the same as the GOP Bid Data Sheet

20.3 Instruction is the same as the GOP Bid Data Sheet

21 Instruction is the same as the GOP Bid Data Sheet

24.1 Instruction is the same as the GOP Bid Data Sheet

24.2 During bid opening, if the first bid envelope lacks any of the documents
listed in the ADB BDS 12.1(a), the bid shall be declared non-responsive but
the documents shall be kept by the Procuring Entity. Only the unopened
price proposal shall be returned to the Bidder.

27.3(b) Instruction is the same as the GOP Bid Data Sheet

27.4 There is no ceiling for Financial Proposals.

98
28.2(a) Instruction is the same as the GOP Bid Data Sheet

28.2(b) Instruction is the same as the GOP Bid Data Sheet

28.2(d) Instruction is the same as the GOP Bid Data Sheet

31.4(g) Instruction is the same as the GOP Bid Data Sheet

32.2 Instruction is the same as the GOP Bid Data Sheet

99
 Asian Development Bank Special Conditions of Contract

GCC Clause

1.16 Instruction is the same as the GOP Special Condition of Contract

1.21 Instruction is the same as the GOP Special Condition of Contract

1.22 Instruction is the same as the GOP Special Condition of Contract

1.23 Instruction is the same as the GOP Special Condition of Contract

1.27 Instruction is the same as the GOP Special Condition of Contract

1.30 Instruction is the same as the GOP Special Condition of Contract

2.2 Instruction is the same as the GOP Special Condition of Contract

5.1 Instruction is the same as the GOP Special Condition of Contract

6.5 Instruction is the same as the GOP Special Condition of Contract

7.4(c) Instruction is the same as the GOP Special Condition of Contract

7.7 The Contractor shall be primarily and solely responsible for the acts,
defaults, and negligence of any subcontractor.

8.1 Instruction is the same as the GOP Special Condition of Contract

10 Instruction is the same as the GOP Special Condition of Contract

12.3 In case the Contractor fails to comply with the preceding paragraph, the
Procuring Entity shall forfeit its performance security. All payables of the
GOP in the Contractor's favor shall be offset to recover the costs.

12.5 Instruction is the same as the GOP Special Condition of Contract

13 Instruction is the same as the GOP Special Condition of Contract

18.3 (h) (i) In case it is determined prima facie by the Procuring Entity that the
Contractor has engaged, before or during the implementation of the
contract, in unlawful deeds and behaviors relative to contract acquisition
and implementation, such as, but not limited to, corrupt, fraudulent,
collusive and coercive practices as defined in ITB Clause 3.1(a)

21.2 Instruction is the same as the GOP Special Condition of Contract

100
29.1 Instruction is the same as the GOP Special Condition of Contract

31.1 Instruction is the same as the GOP Special Condition of Contract

31.3 Instruction is the same as the GOP Special Condition of Contract

34.3 The Funding Source is the Asian Development Bank.

39.1 Instruction is the same as the GOP Special Condition of Contract

40.1 Materials and equipment delivered on the site but not completely put in
place shall be included for payment.

40.3 If the Procuring Entity delays payment, the Contractor shall be paid interest
on such payment. Interest shall be calculated from the date by which the
payment should have been made up to the date when the late payment is
made at the annual rate of [insert percentage rate].

48 The Contract [specify “is” or “is not”] subject to price adjustment and the
following information regarding coefficients [specify “does” or “does
not”] apply.

If bid payment is in more than one currency, the coefficients for adjustment
of prices are:

For currency [type of currency]:

(i) [percent] percent non-adjustable element (coefficient A).

(ii) [percent] percent adjustable element (coefficient B).

For currency [type of currency]:

(i) [percent] percent non-adjustable element (coefficient A).

(ii) [percent] percent adjustable element (coefficient B).

The Procuring Entity’s Representative shall adjust the Contract Price if

taxes, duties, and other levies are changed within the period between
twenty eight (28) days before the submission of Bids for the Contract and
the date of the last Completion certificate. The adjustment shall be the
change in the amount of tax payable by the Contractor, provided such
changes are not already reflected in the Contract Price or are a result of
GCC Clause 48.

If the bid price is wholly in Philippine peso, the above formula on the
coefficients for adjustment of prices shall not apply.

101
 NOTE: Adjustments are authorized in accordance with the price
adjustment provisions specified in the GCC Clause 48 if the contract is of
over eighteen (18) months duration.

51.1 Instruction is the same as the GOP Special Condition of Contract

51.2 Instruction is the same as the GOP Special Condition of Contract

102
 World Bank Bid Data Sheet

ITB Clause

1.1 The PROCURING ENTITY is [insert name of purchasing organization].

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

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

the contract].

2 The Funding Source is World Bank through [indicate the Loan/Grant No.]
in the amount of [insert amount of funds].

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

Payments by the Foreign Funding Source will be made only at the request of
the PROCURING ENTITY and upon approval by the Funding Source in
accordance with the terms and conditions of the Loan Agreement No.
_______________ between the PROCURING ENTITY and the Funding
Source in accordance with the International or Executive Agreement dated
___________ (hereinafter called the "Loan Agreement").

The payments will be subject in all respect to the terms and conditions of
that Loan Agreement and the applicable law. No party other than the
PROCURING ENTITY shall derive any rights from the Loan Agreement or
have any claim to the funds.

3.1 Instruction is the same as GOP Bid Data Sheet

5.1 The Loan/Grant Agreement states in its Procurement NCB Annex that
“foreign bidders shall be eligible to bid xxx”. Eligible Bidders are as
defined in the Guidelines: Procurement under IBRD Loans and IDA Credits
as stated in the Loan Agreement.

5.2 The Loan/Grant Agreement states in its Procurement NCB Annex that
“foreign bidders shall be eligible to bid xxx”. Eligible Bidders are as
defined in the Guidelines: Procurement under IBRD Loans and IDA Credits
as stated in the Loan Agreement.

5.4 To be considered eligible and qualified a Bidder must have a successful

experience as prime contractor in the construction of at least one (1) work of
a nature and complexity equivalent to the Works generally in the last five (5)
years (to comply with this requirement, single works cited should be at least
eighty percent (80%) of value of estimated contract cost of Works under
bid), such being verifiable from completion certificates; and have an annual
turnover from all works averaged over the last three (3) years equal to one
hundred percent (100%) of the estimated value of the contract to be bid.

103
 For this purpose, similar contracts shall refer to [insert description of
similar contracts or state “No further instructions”].

NOTE: World Bank may set forth a different requirement depending on the
nature, method, or complexity of the contract to be bid provided said
requirement is clearly stated in the Bidding Documents.

8.1 Instruction is the same as GOP Bid Data Sheet

8.2 Instruction is the same as GOP Bid Data Sheet

9.1 The Procuring Entity will hold a pre-bid conference for this Project on [State
date and time] at [State address of venue].

NOTE: The pre-bid conference shall be held at least thirty (30) calendar
days before the deadline for the submission and receipt of bids.

10.1 Instruction is the same as GOP Bid Data Sheet

10.3 This clause does not apply to WB funded projects. The BAC is responsible
to send any amendments and/or clarifications on the provisions of the
bidding documents.

12.1 During Bid opening, if the first bid envelope lacks any of the following
documents, the bid shall be declared non-responsive.

The first envelope shall contain the following required documents:

a. Registration Certification of the Company

b. List of relevant contracts as specified in ITB Clause 5.4 hereof;
c. Audited financial statement for the past two years
d. In case of Joint Venture, the JV Agreement, if existing, or a signed
Statement from the partner companies that they will enter into a JV
in case of award of contract.
e. Bid security as required in the ITB;

f. Project Requirements, which shall include the following:

(i) List of contractor’s personnel (viz, project Manager, Project

Engineers, Materials Engineers, and Foremen), to be assigned
to the contract to be bid, with their complete qualification and
experience data; and

(ii) List of contractor’s equipment units, which are owned,

leased, and/or under purchase agreements, supported by
certification of availability of equipment from the equipment
lessor/vendor for the duration of the project; and

g. Sworn statement in accordance with Section 25.2(a)(iv) of the IRR

of RA 9184 and using the form prescribed in Section VIII. Bidding

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 Forms; and

h. A commitment from a Universal or Commercial Bank to extend a

credit line in favor of the bidder if awarded the contract for the
project.

Notwithstanding the BAC’s declaration of non-responsiveness of the first

bid envelope, the financial proposals contained in the second bid envelopes
of all the bidders shall be read. The first and second envelopes shall not be
returned to the bidders.
Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder.

12.1(a)(i) List any additional acceptable proof of registration mentioned in the ITB
Clause or state “No other acceptable proof of registration is recognized”.

Foreign bidders may submit the equivalent documents, if any, issued by the
country of the foreign bidder.

12.1(a)(iv) Foreign bidders may submit their valid Philippine Contractors Accreditation
Board (PCAB) license and registration for the type and cost of the contract
for this Project as a pre-condition for award as provided in the Loan
Agreement.

13.1 Instruction is the same as GOP Bid Data Sheet

13.2 Select one, delete the other:

There is no ceiling for Financial Proposals.

OR

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

NOTE: Subject to prior concurrence by the World Bank, for foreign-funded

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

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

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

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

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 c) The procuring entity has trained cost estimators on estimating prices
and analyzing bid variances. In the case of infrastructure projects, the
procuring entity must also have trained quantity surveyors.

d) The procuring entity has established a system to monitor and report

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

e) The procuring entity has established a monitoring and evaluation

system for contract implementation to provide a feedback on actual total
costs of goods and works.
14.2 Instruction is the same as GOP Bid Data Sheet

15.4 Instruction is the same as GOP Bid Data Sheet

16.1 Instruction is the same as GOP Bid Data Sheet

17.1 Instruction is the same as GOP Bid Data Sheet

18.1 Instruction is the same as GOP Bid Data Sheet

18.2 Instruction is the same as GOP Bid Data Sheet

20.3 Instruction is the same as GOP Bid Data Sheet

21 Instruction is the same as GOP Bid Data Sheet

24.1 Instruction is the same as GOP Bid Data Sheet

24.2 During Bid opening, if the first envelope lacks any of the documents listed
in World Bank BDS 12.1(a), the bid shall be declared non-responsive but the
documents shall be kept by the Procuring Entity. The financial proposals in
the second envelope of all the bidders shall be read for record purposes. The
first and second envelopes shall not be returned to the bidders.

27.3(b) Instruction is the same as GOP Bid Data Sheet

27.4 A ceiling may be applied to bid prices provided the conditions in BDS 13.2
above are met

28.2(b) If the winner is a foreign bidder, the requirement applies to relevant

Philippine tax only.

28.2(d) Instruction is the same as GOP Bid Data Sheet

31.4(g) Instruction is the same as GOP Bid Data Sheet

32.2 Instruction is the same as GOP Bid Data Sheet

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 World Bank Special Conditions of Contract

SCC Clause

1.16 Instruction is the same as the GOP Special Condition of Contract

Instruction is the same as the GOP Special Condition of Contract

1.21

1.22 Instruction is the same as the GOP Special Condition of Contract

1.23 Instruction is the same as the GOP Special Condition of Contract

1.27 Instruction is the same as the GOP Special Condition of Contract

1.30 Instruction is the same as the GOP Special Condition of Contract

2.2 Instruction is the same as the GOP Special Condition of Contract

5.1 Instruction is the same as the GOP Special Condition of Contract

6.5 Instruction is the same as the GOP Special Condition of Contract

7.4(c) Instruction is the same as the GOP Special Condition of Contract

7.7 Instruction is the same as the GOP Special Condition of Contract

8.1 Instruction is the same as the GOP Special Condition of Contract

10 Instruction is the same as the GOP Special Condition of Contract

12.3 Instruction is the same as the GOP Special Condition of Contract

12.5 Instruction is the same as the GOP Special Condition of Contract

13 Instruction is the same as the GOP Special Condition of Contract

18.3 (h) (i) Instruction is the same as the GOP Special Condition of Contract

21.2 Instruction is the same as the GOP Special Condition of Contract

29.1 Instruction is the same as the GOP Special Condition of Contract

31.1 Instruction is the same as the GOP Special Condition of Contract

31.3 Instruction is the same as the GOP Special Condition of Contract

34.3 The Funding Source is the World Bank.

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39.1 Instruction is the same as the GOP Special Condition of Contract

40.1 Instruction is the same as the GOP Special Condition of Contract

51.1 Instruction is the same as the GOP Special Condition of Contract

51.2 Instruction is the same as the GOP Special Condition of Contract

108
 CHECKLIST FOR ELIGIBILITY AND TECHNICAL DOCUMENTS
(INFRASTRUCTURE)
Project: __________________________________________________________________________
Location: ________________________________________________________________________
Bidders Business Name:
____________________________________________________________

Action Taken
Item Page
REQUIREMENTS
No. No. Passe
Failed
d

Eligibility Documents (First Envelop)

Class "A" Documents:

Registration certificate from the Securities and Exchange Commission

1 (SEC), Department of Trade and Industry (DTI) for sole proprietorship, or
Cooperative Development Authority (CDA) for cooperatives, or any proof of
such registration as stated in the BDS.
2 Mayor’s permit issued by the city or municipality where the principal place
of business of the prospective bidder is located.

3. Philgeps Registration (Platinum)

Statement of the prospective bidder of all its ongoing government and

4. private contracts, including contracts awarded but not yet started, if any,
whether similar or not similar in nature and complexity to the contract to be
bid. The statement shall include, for each contract, the following:

)a name of the contract;

)b date of the contract;
)c contract duration;
)d owner’s name and address;
)e nature of work;
)f contractor’s role (whether sole contractor, subcontractor, or partner in
a JV) and percentage of participation;
)g total contract value at award;
)h date of completion or estimated completion time;
)i total contract value at completion, if applicable;
)j percentages of planned and actual accomplishments, if applicable;
)k value of outstanding works, if applicable;
)l the statement shall be supported by the notices of award and/or
notices to proceed issued by the owners; and
)m the statement shall be supported by the Owner’s Certificate of Final
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 Acceptance or the Certificate of Completion and, whenever applicable,
the Constructors Performance Evaluation Summary (CPES) Final
Rating, which must be satisfactory.
Statement identifying the bidder’s single largest completed contract similar
5. to the contract to be bid. The statement shall include, for each contract, the
following:

)a name of the contract;

)b date of the contract;
)c contract duration;
)d owner’s name and address;
)e nature of work;
)f contractor’s role (whether sole contractor, subcontractor, or partner in
a JV) and percentage of participation;
)g total contract value at award;
)h date of completion or estimated completion time;
)i total contract value at completion, if applicable;
)j percentages of planned and actual accomplishments, if applicable;
)k value of outstanding works, if applicable;
)l the statement shall be supported by the notices of award and/or
notices to proceed issued by the owners; and
)m the statement shall be supported by the Owner’s Certificate of Final
Acceptance or the Certificate of Completion and, whenever applicable,
the Constructors Performance Evaluation Summary (CPES) Final
Rating, which must be satisfactory.

6. A valid Philippine Contractors Accreditation Board (PCAB) license and

registration for the type and cost of the contract for this Project.

7. NFCC computation in accordance with ITB Clause 5.5.

8. Tax clearance per Executive Order 398, Series of 2005, as finally reviewed
and approved by the BIR.

Class "B" Document:

9. Valid Joint Venture Agreement (JVA) if the prospective bidder is a joint

venture.

Technical Documents:

10. The bid security shall be limited to Bid Securing Declaration or at

least one (1) other form in accordance with the following amount:

a) The amount of __________ [Insert 2% of ABC], if bid security is

in cash, cashier’s/manager’s check, bank draft/guarantee or
irrevocable letter of credit;
b) The amount of __________ [Insert 5% of ABC] if bid security is
in Surety Bond; or
c) Any combination of the foregoing proportionate to the share of
form with respect to total amount of security.

110
 11. Project Requirements, which shall include the following:

)a Organizational chart for the contract to be bid;

)b List of contractor’s personnel (viz, project Manager, Project
Engineers, Materials Engineers, and Foremen), to be assigned
to the contract to be bid, with their complete qualification and
experience data; and
)c List of contractor’s equipment units, which are owned, leased,
and/or under purchase agreements, supported by certification of
availability of equipment from the equipment lessor/vendor for
the duration of the project.
12. Sworn statement in accordance with Section 25.2(b)(iv) of the IRR of
RA 9184.

13. Authority of the prospective bidder’s representative.

14. Audited Financial statement for the Past; Current years.

15. Present Original Copies of Updated Permits & Licenses

16. Certificate of Site Inspection duly signed by the Municipal Engineer.

Note: Eligibility requirements shall be numbered and arranged consecutively in accordance with the
above-mentioned checklist. Deficient and/or unarranged documentation shall be a ground for
outright disqualification.

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