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CONSTRUCTION PROJECT
CONTRACTS AND SPECIFICATTIONS
T E C H N O L O G I C A L I N S T I T U T E O F T H E P H I L I P P I N E S
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BIDDING
the process of submitting a
proposal to undertake or manage
the undertaking of a project. The
process starts with a cost estimate
from blueprints and material take-
offs.
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BIDDING DOCUMENTS

INVITATION TO BID
formal document that invites the bidders to submit
a proposal for a project.
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BIDDING DOCUMENTS
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BIDDING DOCUMENTS

INSTRUCTION TO BIDDERS

pertains to the formal instruction set for all bidders

related to the project
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BIDDING DOCUMENTS
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BIDDING DOCUMENTS

BID PLANS
pertain to drawings created by a Designer, which
contains the graphical presentations of the project and
other engineering data needed in a construction project
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BIDDING DOCUMENTS
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BIDDING DOCUMENTS

BID FORMS

a formal document that will be the format basis of

the bidder's proposal
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BIDDING DOCUMENTS
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BIDDING DOCUMENTS

LETTER OF INTENT / NOTICE TO PROCEED

a temporary document authorizing the commencement of
construction in a limited fashion. This only necessary if the
owner decides to allow the contractor to start the works
immediately within the fixed budget, scope, and schedule.
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BIDDING DOCUMENTS
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BUILDING PERMIT
A building permit is a permit to be
applied by the owner or
administrator of a building to
comply with the regulations set by
the National Building Code
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BUILDING PERMIT REQUIREMENTS

1. Ownership of the lot property

a. In case the applicant is the owner of the lot where construction will take place:

a1. Certified true copy of Transfer Certificate of Title, on file with the Registry of
Deeds.
a2. Tax Declaration a3. Latest Real Property Tax Receipt

b. In case the applicant is not the registered owner of the lot:

b1. Duly notarized copy of the Contract of Lease or Deed of Absolute Sale
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BUILDING PERMIT REQUIREMENTS

2. Application forms
a. Application for Building Permit (5 copies)
b. Electrical Permit Forms (3 copies)
c. Sanitary Permit Forms (3 copies)
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BUILDING PERMIT REQUIREMENTS

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BUILDING PERMIT REQUIREMENTS

3. Five sets of complete detailed plan

a. For construction of two-storey building
Structural Design Analysis – signed and sealed by Civil Engineer at every
page

b. For construction of more than two-storey building:

Boring and Plate Load Test

Seismic Analysis
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BUILDING PERMIT APPLICATION

1. Prepare the list of requirements while you secure a checklist and application forms
from the Office of the Building Official.
2. Along with the filled out forms and required documents as outlined in the
checklist, submit them to the Office of the Building Official.
3. If the submitted requirements are complete, you will be granted
an acknowledgement/follow-up slip.
4. Within 10 working days, you will receive an order of payment from the Releasing
Section of the building office. Settle the charge at the cashier’s office.
5. After five days, the building permit will be released after the submission of proof
of payment (official receipt).
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CONTRACT
a binding agreement between two
or more persons or parties
especially : one legally enforceable

(MERRIAM-WEBSTER DICTIONARY)
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CONSTRUCTION CONTRACT
AGREEMENT

a formal agreement between a homeowner and the

general contractor that details the building, remodeling,
alterations, or other work that will be done on the
homeowner's house or property
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MOST COMMON CONTRACT RELATIONSHIPS

The owner and general contractor/s

The owner and design professional
The contractor and subcontractor
The contractor and the surety
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BASIC ELEMENTS OF VALID CONTRACT

Competent parties
Offer and acceptance
Reasonable certainty of terms
Project subject matter
Consideration
 TYPES OF CONSTRUCTION CONTRACTS
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1 2
Price Given in Advance Contracts Cost Reimbursement Contracts
(Price-based Contracts)
(Cost-based Contracts)

- good option for a large, long-term project

-Commonly utilized for simple operations with
where it’s difficult to determine the full scope of
predictable costs.
work and, therefore, the final cost

- The client agrees to cover all direct and

- the contractor and project owner agree on the Read More
indirect costs associated with a construction
amount to be paid for the project as well as the
project, as well as an additional, independent
needed scope of work.
fee that represents the contractor's profit.
separate fee representing the contractor’s
profit.
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PRICE-BASED CONTRACT

LUMP-SUM CONTRACT

Contractor agrees to perform job of work

for a fixed sum of money.
The contractor is responsible for
preparing the Bill of Quantities
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PRICE-BASED CONTRACT

UNIT PRICE CONTRACT

Items of work of the contract are specified with

estimated quantities in the Bill of Quantities
The client or owner pays a fixed sum for each
completed unit of work.
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PRICE-BASED CONTRACT

SCHEDULE OF RATES CONTRACT

Schedule of the work items without quantities is

prepared by the owner and to be rated by the
contractor
Schedule of the work items without quantities is
prepared by the owner and to be rated by the
contractor
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COST-BASED CONTRACT

OVERHEAD AND PROFIT

All of the expenses collected by the contractor will

be actual expenses plus the agreed-upon
compensation to cover his services
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COST-BASED CONTRACT

COST PLUS PERCENTAGE OF COST

All expenses incurred by the contractor are

compensated with a certain portion of the
price to pay for his services.
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COST-BASED CONTRACT

TARGET COST WITH VARIABLE FEES

The contractor and owner agree to a target

estimate of construction.
Bonus or penalty arrangements are tied to this
target figure
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COST-BASED CONTRACT

GUARANTEED MAXIMUM PRICE

The contractor promises to complete the

job in strict accordance with the plans.
and requirements.
The contractor promises to complete the
job in strict accordance with the plans.
and requirements.
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a detailed precise presentation

SPECIFICATIONS
of something or of a plan or
proposal for something
a statement of legal particulars
(as of charges or of contract
terms)
(MERRIAM-WEBSTER DICTIONARY)
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CONSTRUCTION
SPECIFICATIONS TYPES OF SPECIFICATIONS
The contractor promises to complete the
Performance Specifications
job in strict accordance with the plans.
and requirements.
Prescriptive Specifications

Refers to technical standards, which may be Propriety Specifications

developed by any of various kinds of
organizations like ASTM, AASHTO,
OSHA and etc
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TYPES OF SPECIFICATIONS

PERFORMANCE SPECIFICATIONS

specifies the operational requirements of a

component or installation.
tells the contractor what the final installed
product must be capable of doing.
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TYPES OF SPECIFICATIONS

PRESCRIPTIVE SPECIFICATIONS

Provide a thorough description of the

project's requirements.
a description of the materials the contractor is
required to utilize, and the methods for
setting up those components.
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GENERAL
this part consist of references to national and international standards,
design specifications, and a list of contractor's necessary submissions to the
architect or engineer, criteria for product handling and quality control.
PRODUCT
The various goods will be thoroughly described the necessary for the task
described in the specification, as well as each product's unique structural and
performance requirements.
EXECUTION
This section will explain how to prepare the materials and
conduct the installation, including the testing requirements to be
followed
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TYPES OF SPECIFICATIONS

PROPRIETY SPECIFICATIONS

those that require the use of a single approved product type

for any particular installation.
When there is already equipment or installation on the site,
it is frequently utilised. In these situations, the owner could
want to keep the materials consistent or perhaps just
prefers a particular kind of product.
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HAVE A GOOD DAY!

THANK YOU FOR
LISTENING

GROUP MEMBERS:

DAPHNE BESA JAYCEE DAYAG MA. ANGELICA THEA MA. ANGELINE ANNE VALERIE REYES
MAE GOPEZ GRANADA