CONSTRUCTION

PROJECT CYCLE, BID

PACKAGE AND BIDDING
PROCESS
 CONSTRUCTION
PROJECT CYCLE, BID
PACKAGE AND BIDDING
PROCESS
What is a Project
A project is made up of group of interrelated work activities
constrained by a specific scope, budget, and schedule to deliver
capital assets needed to achieve the strategic goals of an
organization.

à A defined goal or objective

à Specific tasks to be performed
à A defined beginning and end
à Resources being consumed
The goal of construction project is to build something. What
differentiate construction industry from other industries is that
its projects are large, built on-site, and generally unique. Time,
money, labor, equipment and materials are all of the kinds of
resources that are consumed by the project.

Projects are defined by their scope, budget and schedule.

Scope refers to the work to be accomplished,
i.e., the quantity and quality of work

Budget refers to costs, measured in pesos and/or

labor-hours of work

Schedule refers to the logical sequencing and timing of

the work to be performed.
QUALITY is an integral part of scope, budget and schedule
Q u a l i t y i s a n e l e m e nt t h a t i s
integrated into and between all
parts of a project.
When we say quality, you are not
merely creating drawings with a
minimum number of errors,
furnishing equipment that meets
specifications, or building a project
to fulfill the requirements of a
contract. Certainly, all these factors
are part of quality, but it involves
much more than that.
The source of many problems associated with a project is
failure to properly define the project scope. Not only should
the scope, budget and schedule be well defined, but each
must be linked together since one affects the other, both
individually and collectively.

Since project scope defines the work to be accomplished, it

should be the first task in the development of a project, prior
to the development of either budget or the schedule.
Budgeting is important because it establishes the amount of
money the owner will spend to obtain the project and the
amount of money that the design and construction
organizations will be compensated for performing the work.

Scheduling is important because it brings together project

definition, people, cost, resources, timing and methods of
performing the work to define the logical sequencing of
activities for the project.
Project involves the coordination of group activity, wherein the
manager plans, organizes, staff directs, and controls to achieve
an objective, with constraints on time, cost and performance of
the end product.

Project management is the combination of project and

management.
 CONSTRUCTION
PROJECT CYCLE, BID
PACKAGE AND BIDDING
PROCESS
Project Life Cycle
Every project, from conception to completion, passes through
various phases. An understanding of the cycle is important to
have a successful completion of the project as it facilitates to
understand the logical sequence of events in the continuum of
progress from start to finish.
• PRE-CONSTRUCTION PHASE
• CONSTRUCTION PHASE
• POST CONSTRUCTION PHASE
PRE-CONSTRUCTION PHASE

Ø services before a construction

job even begins.

Ø includes creating a strategic plan

for the project, creating a design,
securing permits or entitlements,
and gathering the labor and
resources required for
construction;
CONCEPTUAL DESIGN
PRE-CONSTRUCTION PHASE

o very important for the owner

o during this stage, the owner hire key consultant including
the designer and project manager, selects the project site,
and establish a conceptual estimate, schedule and program.
o the owner must after a much information a possible about
the project.
o the most important decision is to proceed with the project
or not
SCHEMATIC DESIGN
PRE-CONSTRUCTION PHASE

o During this stage, the project team investigates alternate

design solutions, materials and systems
o Completion of this stage represents about 30% of the design
completion for the project.
DESIGN DEVELOPMENT
PRE-CONSTRUCTION PHASE

o Designing the main system and component of the project.

o Good communication between owner, designer, and
construction manager is critical during this stage because
selections during this stage affect project appearance,
construction and cost.
o This stage takes the project from 30% design to 60% design.
BIDDING DOCUMENTS
PRE-CONSTRUCTION PHASE

o Preparation of the documents necessary for the bid package

such as the drawings, specifications, and general conditions
o All documents need to be closely reviewed by the
construction manager, consultants and appropriate owner
personnel to decrease conflicts and changes.
 PROCUREMENT
PRE-CONSTRUCTION PHASE

o Bidding and Award Stage

o The project formally transits from design into construction
o This stage begins with a public advestisement for all
interested bidders or an invitation for specific bidders.
o In fast-tract projects, this phase overlapse with the design
phase
 PERMITTING AND ENTITLEMENTS
PRE-CONSTRUCTION PHASE

o Once a design has been put on paper it is usually time to

pursue permitting. In some cases securing permitting and
entitlements can run concurrently with the design process.
Typically, the project manager helps guide the project
through the permitting process.
What is a Building Permit
According to PD1096 | SECTION 301. Building Permits
No person, firm or corporation, including any agency or
instrumentality of the government shall erect, construct, alter,
repair, move, convert or demolish any building or structure or
cause the same to be done without first obtaining a building
permit therefor from the Building Official assigned in the place
where the subject building is located or the building work is to
be done.
 Building Permit requirements
5 sets of Building plans Other Clearances
Signed and Sealed Fire Safety Inspection Certificate
Structural Analysis/Calculation DOLE Clearance
Building Detailed Specifications Zoning Clearance
Building Cost Estimates Proof of Ownership (TCT)
Photocopy of PTR/PRC ID Deed of Absolute Sale
Tax Declaration
CONSTRUCTION PHASE

- now the work begins. The project team

begins the crucial work of assigning
resources, implementing project
management plans, setting up tracking
systems, completing tasks, updating the
project schedule, and if necessary,
modifying the project plan.
o Re v i e w o f D ra w i n g s a n d i n fo r m CONSTRUCTION PHASE

consultants regarding any additional /

changes required in the drawing.
o Conducting Progress review meetings in regular intervals.
o Implementing & maintaining the checklists for all the works.
o Providing technical & experienced team to the site for
effective execution of Project in time and quality.
o Check and approve the materials quality
o I nvo l ve a n d d i s c u s s w i t h a l l t h e CONSTRUCTION PHASE

consultants regarding the shortfalls in

the detailing and sort out all issues including service
integration.
o Providing Methodology of working for all works before starts.
o Tracking the project as per the schedule and also recording the
delays in project due to un expected issues like strike, weather
conditions, material short supply etc.
o Plan for accommodating the delays in CONSTRUCTION PHASE

the project schedule and completing

the project in initial planned time.
o To equip the execution team by providing formats, check lists
& reports.
o Submitting Weekly & Monthly Progress, Quality and Safety
report to the client.
POST-CONSTRUCTION PHASE

• The transition from design and

constru tion to the actual use of the
constructed facility.
• In this stage, the contractor must
provide documentation, as-built
drawings, and operation manuals to
the owner organization.
o Collection all as built drawings from POST-CONSTRUCTION PHASE

vendors and consultants and approved

by owner.
o Collection of operation maintenance manuals.
o Preparation of Completion Certificate based on all documents
& Drawings.
o Securing Occupancy Permit
o Punchlisting
 CONSTRUCTION
PROJECT CYCLE, BID
PACKAGE AND BIDDING
PROCESS
 CONSTRUCTION
PROJECT CYCLE, BID
PACKAGE AND BIDDING
PROCESS
What is a Bid Package
Also known as tender package or bidding documents; It is a set
of documents that outlines the project scope, requirements and
specifications, enabling bidders to develop an accurate and
competitive proposal
The Bidding Documents shall clearly and adequately define
among others:
(i) the objectives, scope, and expected outputs and/or results
of the proposed contract;
(ii) the eligibility requirements of Bidders;
(iii) the expected contract duration;
(iv) the obligations, duties, and/or functions of the winning
bidder
Glossary of Acronyms, Terms and Abbreviations

ABC –Approved Budget for the Contract.

BAC – Bids and Awards Committee.
Bid – A signed offer or proposal to undertake a contract
submitted by a bidder in response to and in consonance with
the requirements of the bidding documents. Also referred to as
Proposal and Tender.(2016 revised IRR, Section 5[c])
Glossary of Acronyms, Terms and Abbreviations

Bidder – Refers to a contractor, manufacturer, supplier,

distributor and/or consultant who submits a bid in response to
the requirements of the Bidding Documents.
Bidding Documents – The documents issued by the Procuring
Entity as the bases for bids, furnishing all information necessary
for a prospective bidder to prepare a bid for the Goods,
Infrastructures and Consulting Services
Glossary of Acronyms, Terms and Abbreviations

Consulting Services – Refer to services for Infrastructure

Projects and other types of projects or activities of the GOP
requiring adequate external technical and professional
expertise that are beyond the capability and/or capacity of the
GOP to undertake such as, but not limited to:
Glossary of Acronyms, Terms and Abbreviations

(i) advisory and review services;

(ii) pre-investment or feasibility studies;
(iii) design;
(iv) construction supervision;
(v) management and related services; and
(vi) other technical services or special studies.
Glossary of Acronyms, Terms and Abbreviations

Contract – Refers to the agreement entered into between the

Procuring Entity and the Supplier or Manufacturer or
Distributor or Service Provider for procurement of Goods and
Services; Contractor for Procurement of Infrastructure Projects;
or Consultant or Consulting Firm for Procurement of Consulting
Services;
Glossary of Acronyms, Terms and Abbreviations

Contract – Refers to the agreement entered into between the

Procuring Entity and the Supplier or Manufacturer or
Distributor or Service Provider for procurement of Goods and
Services; Contractor for Procurement of Infrastructure Projects;
or Consultant or Consulting Firm for Procurement of Consulting
Services;
Government Procurement Reform Act
§ Republic Act 9184
§ An act providing for the modernization,
standardization and regulation of the procurement
activities of the government and for other purposes
Section I. Invitation to Bid
Invitation to Bid SAMPLE
Section II. Instruction to Bidders
Instruction to Bidders SAMPLE
Instruction to Bidders SAMPLE
Instruction to Bidders SAMPLE
Section III. Bid Data Sheet
Bid Data Sheet SAMPLE
Bid Data Sheet SAMPLE
Section IV. General Conditions of Contract
1. Scope of Contract
This Contract shall include all such items, although not specifically
mentioned, that can be reasonably inferred as being required for its
completion as if such items were expressly mentioned herein. All the
provisions of RA No. 9184 and its 2016 revised IRR, including the
Generic Procurement Manual, and associated issuances, constitute
the primary source for the terms and conditions of the Contract, and
thus, applicable in contract implementation.
2. Sectional Completion of Works
If sectional completion is specified in the Special Conditions of
Contract (SCC), references in the Conditions of Contract to the
Works, the Completion Date, and the Intended Completion Date
shall apply to any Section of the Works (other than references to
the Completion Date and Intended Completion Date for the whole
of the Works).
3. Possession of Site
3.1. The Procuring Entity shall give possession of all or parts of
the Site to the Contractor based on the schedule of delivery
indicated in the SCC, which corresponds to 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.
4. The Contractor’s Obligations
The Contractor shall employ the key personnel named in the
Schedule of Key Personnel indicating their designation 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
5. Performance Security
5.1. 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 successful Bidder
shall furnish the performance security in any of the forms
prescribed in Section 39 of the 2016 revised IRR.
5.2. The Contractor, by entering into the Contract with the
Procuring Entity, acknowledges the right of the Procuring
Entity to institute action pursuant to RA No. 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.
6. 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.
7. Warranty
7.1. In case the Contractor fails to undertake the repair works
under Section 62.2.2 of the 2016 revised IRR, 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.
 7.2. The warranty against Structural Defects/Failures, except
that occasioned-on force majeure, shall cover the period from
the date of issuance of the Certificate of Final Acceptance by
the Procuring Entity. Specific duration of the warranty
is found in the SCC.
8. 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.
9. Termination for Other Causes
Contract termination shall be initiated in case it is determined
prima facie by the Procuring Entity that the Contractor has
engaged, before, or during the implementation of the contract, in
unlawful deeds and behaviors relative to contract acquisition and
implementation, such as, but not limited to corrupt, fraudulent,
collusive, coercive, and obstructive practices as stated in ITB
Clause 4
10. Program of Work
10.1. The Contractor shall submit to the Procuring Entity’s
Representative for approval the said Program of Work showing
the general methods, arrangements, order, and timing for all
the activities in the Works. The submissions of the
Program of Work are indicated in the SCC.
10.2. 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.
11. Instructions, Inspections and Audits
The Contractor shall permit the GOP or the Procuring Entity to
inspect the Contractor’s accounts and records relating to the
performance of the Contractor and to have them audited by
auditors of the GOP or the Procuring Entity, as may be required.
12. Advance Payment
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, subject to the requirements in
Annex “E” of the 2016 revised IRR of RA No. 9184.
13. Progress Payments
The Contractor may submit a request for payment for Work
accomplished. Such requests 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.
14. Operating and Maintenance Manuals
14.1. If required, the Contractor will provide “as built” drawings
and/or operating and maintenance manuals as specified in the
SCC.
14.2. If the Contractor does not provide the Drawings and/or
manuals by the dates stated above, or they do not receive the
Procuring Entity’s Representative’s approval, the Procuring
Entity’s Representative may withhold the amount stated
in the SCC from payments due to the Contractor
Section V. Special Conditions of Contract
The Special Conditions of Contract complement the General
Conditions Contract, specifying contractual requirements linked to
the special circumstances of the Procuring Entity. In preparing this
Section, the following aspects should be checked:
a. Information that complements provisions of the GCC must
be incorporated.
Section V. Special Conditions of Contract
b. Amendments and/or supplements to provisions of the GCC
as necessitated by the circumstances of the specific purchase,
must also be incorporated.
 Section VI. 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.
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.
Specifications are descriptions of the technical requirements
and aspects of the work to be performed.

Addendum is a document illustrating any changes, conditions,

omissions, corrections and contract conditions that arise before
bidding is finalized
Section VII. Drawings
The contract documents must convey the requirements of the
project to potential bidders and establish a clear and precise
picture of the technical aspects of work to be performed. This is
accomplished visually through the use of drawing plans.
Section VIII. Bill of Quantities
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.
 CONSTRUCTION
PROJECT CYCLE, BID
PACKAGE AND BIDDING
PROCESS
What is Bidding
means “to make a competitive offer to set a price on response
to a call to tender”
The necessary bidding procedure consists of
four steps, namely:

• Bid solicitation
• Bid submission
• Bid selection
• Contract Formation
Bid Solicitation
- this is when the project owner sends out invitations
for bids. They give specifications for the project,
project requirements, contract type, and delivery
method.
A notice to bidders is a document announcing to prospective
bidders that design documents are available for consideration
and that the owner is ready to receive bids
Bid Submission
- the contractor submits all the relevant business
information encompassing management plans, past
projects, and their track record for timely project
completion. It also has cost estimates based on the
bill of quantities.
 A contractor must base his decision to bid on:
Ø Site Inspection
Ø Analysis of Contract Documents
Ø Quantity Take-off

An estimate is the calculation of the contractor’s costs

including materials, labor and equipment.
Bid value includes:
Ø d i re c t c o st - c o st s o f m a te r i a l s , l a b o r a n d
equipment
Ø i n d i re c t c o st - o ve r h e a d , co nt i n ge n c y a n d
miscellaneous costs
Ø mark-up - contractor’s profit
Opening of Bids
The eligibility requirements shall provide for fair and
equal access to all prospective bidders

The bids shall be received by the BAC on such date, time

and place specified in the invitation to bid.
Qualification of Bidders
q Procuring entity may charge fees for the acquisition of
Bidding Documents based on the following rates:
Qualification of Bidders
Advertisement/Posting of ITB
According to RA 9184
Section 23. Eligibility Requirements for the Procurement of
Goods and Infrastructure Projects.- The BAC or its duly
designated organic office shall determine the eligibility of
prospective bidders for the procurement of Goods and
Infrastructure Projects, based on the bidders' compliance with
the eligibility requirements within the period set forth in the
Invitation to Bid. The eligibility requirements shall provide for fair
and equal access to all prospective bidders.
According to RA 9184
Section 25. Submission and Receipt of Bids. - A bid shall have
two (2) components, namely the technical and financial
components which should be in separate sealed envelopes, and
which shall be submitted simultaneously.
Bids submitted after the deadline shall not be accepted.
According to RA 9184
Section 26. Modification and Withdrawal of Bids. - A bidder
may modify his bid, provided that this is done before the
deadline for the receipt of bids.
Section 29. Bid Opening. - the BAC shall publicly open all bids at
the time, date, and place specified in the bidding documents. The
minutes of the bid opening shall be made available to the public
upon written request and payment of a specified fee.
Bid Selection
- the winning bid is selected in this stage. In most
government projects, it is the one with the lowest price.
However, in private projects, the owners can choose bids
that are higher priced.
Whether the owner chooses an open or a closed bid process for the project, the bids
will then come in, and the selection of a contractor can commence based on a number
of criteria:
•Low-Bid Selection:
The bottom line — aka the price — is the main focus for the project owner. The
winning contractor is the one who submits the lowest price for the project.
•Qualifications-Based Selection:
In this process, the project owner asks contractors to submit with their bid a
request for qualifications (RFQ), which summarizes the contractor’s experience,
plans for management, organizational flow, and success in staying on budget
and on schedule. The project owner then chooses the contractor with the best
qualifications.
•Best-Value Selection:
In this approach, the project owner considers both the bid price and the
contractor’s qualifications to find the best combination of cost and skill set.
Bid Evaluation
q Purpose: To determine the Lowest Calculated Bid/ LCB
§ Establishing correct calculated prices of bids; and
§ Ranking calculated total bid prices from lowest to highest
q Non-discretionary criterion shall be used, which shall include
consideration of:
§ Completeness of bids; and
§ Minor arithmetical corrections
Bid Evaluation
q No communication should be made by bidders until a
decision to award a contract is made by the BAC
q No Contact Rule – prohibition on communication with
bidders from bid evaluation until award of contract
q The “no contact” rule applies only to those whose bids are
being evaluated by the BAC after passing the preliminary
examination.
Bid Evaluation
q In case of discrepancies, the following shall prevail:
- words over figures
- unit prices over total prices
- bill of quantities over detailed estimates
- actual sum of prices of component items over total price
Post Qualification
q Purpose: To determine whether the bidder with the LCB
complies with and is responsive to all requirements and
conditions of eligibility and the bidding of the contract.

q Non-discretionary pass/fail criterion shall be used to “Verify,

Validate and Ascertain” all statements and documents
(licenses, certificates, etc.) submitted by the LCB
Post Qualification
q BAC will notify the bidder with the Lowest Calculated Bid that
it was determined as such
q BAC shall recommend award of contract to the Lowest
Calculated and Responsive Bid (LCRB) at submitted price or
calculated price, which ever is lower.
Award of Contract
q Additional documents are also required to be submitted by
the LCRB
q Contract shall be awarded to the bidder with LCRB at it’s
submitted price
q The BAC shall notify all other bidders, in writing, of its
recommendation to HOPE of award of contract to LCRB
within 3 calendar days from the issuance of the resolution
recommending award.
Award of Contract
q The Notice of Award (NOA) and Notice to Proceed (NTP) are
issued by the Head of Procuring Entity (HoPe)
q The NOA, and NTP along with the contract are required to be
posted at the websites of PhilGEPS and the agency, and at any
conspicuous place within 3 calendar days and 15 calendar
days from the respective date of issuance.
Award of Contract
q The contract effectivity date should be provided in the Notice
to Proceed, which should not be later than 7 calendar days
from its issuance.
q The BAC Secretariat shall post the NOA in the PhilGEPS, PE’s
websites and in any conspicuous place within 3 calendar days
from its issuance.
Failure of Bidding
q A failure of bidding is declared by the BAC when:
a) No bids are received;
b) Bids were received but no one was eligible;
c) Someone post qualified but refused without justifiable
cause to accept the award.