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Republic of the Philippines

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DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
!«i`-.I: OFFICE OF THE SECRETARY
Manila

RAcOWG "LI.IH^S

SEP 2 0 202+
DEPARTMENTORDER ) SUBJECT : Revised Guidelines on the Issuance of
) Certificate of Completion (CoC), and

NO.
166 )
)
Certificate of Final Acceptance (CFA)
for Locally-Funded projects
Series of 2024

In line with the Department's commitments to provide quality, safe, and environment-friendly
infrastructure, improve effectiveness and efficiency in serving the public, and ensure
compliance by contractors with the approved plans and specifications, the following guidelines
are prescribed for the issuance of Certificate of Completion (CoC), and Certificate of Final
Acceptance (CFA) to align with the existing guidelines of the Revised Implementing Rules and
Regulations (IRR) of R.A. 9184.

The issuance of CoC and CFA is an indication that the contractor has satisfactorily undertaken
the project in accordance with the approved plans and specifications. The completion date
declared in the CoC determines the contractor's compliance with its contractual obligation for
the timely completion of the project as agreed upon by both parties. The said completion date
shall also serve as basis for the commencement of the one-year Defects Liability Period (DLP)
and in imposing Liquidated Damages (LD) on the contractor for its failure to complete the
project on the agreed duration, including all granted contract time extensions.

Cognizant of the significanc`e Of CoC and CFA, the processes and requirements leading to its
issuance should be transparent and comprehensive to ensure the propriety and
appropriateness as per existing laws, rules and regulations, and department policies. The
guidelines in the issuance of the following certificates are listed below:

a. Certificate of completion -Annex 1

b, Certificate of Final Acceptance -Annex 2

Failure to adhere to the prescribed guidelines after due process shall make the public officials
and employees involved liable to the applicable penalties specified by law, rules and
regulations.

This Order shall supersede Department Order 99, Series of 2015, Department Order 76 Series
of 1993, and other relevant policies and procedures to the contrary and shall take effect
immediately.

6.1.2.TCA/MIP/ASB

Departmen6#coPuo?'{:eYYfr5:e?anrdyH`ghvays

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WIN4W02308

Website: https://www.dpwh.gov.ph
Tel. No(s).: 5304-3000 / (02) 165-02
 ANNEX 1

GUIDELINES ON THE ISSUANCE OF THE CERTIFICATE OF COMPLETION

I. DEFINITION OFTERMS

Certificate of Completion (CoC) - a document issued by the implementing office

cerl:ifying that the contract works/ deliverables has been factually and satisfactorily
completed, in accordance with the Plans and Specifications of the Contract based on the
Final Completion Inspection Report of the Inspectorate Team.

Date of Completion -the date indicated under the Certificate of Completion as to when
the project has been factually and satisfactorily completed/accomplished, in accordance
with the Plans and Specifications of the Contract based on the Final Completion Inspection
Report of the Inspectorate Team.

Defects Liability Period (DLP) - one (1) year from the date of completion of the
project up to the date of final acceptance, as prescribed under Section 62.2.2 of the
Revised Implementing Rules and Regulation (RIRR) of Republic Act (R.A.) 9184 /orary
latest issuance).

Implemehting Office (10) - either DPWH Central Office, Regional Office, or District
Engineering Office.

Punchlist Report -a document listing remaining works, work that does not conform to
contract plans and specifications, and the specific duration/time to fully complete the
project considering the approved remaining contract time.

11. Composition of the Inspectorate Team

The Inspectorate Team for the issuance of CoC shall have the following composition:

Implementing
Inspectorate Tea in
Office
* One (1) representative each from the following offices:

- Bureau of Quality and safety (BQS)

- Bureau of construction (BOC)
- Bureau of Research and standards (BRS)
- Bureau of Design (BOD)
• ** Chief of the Construction Division/ Regional QAU of the
Centra I Office Regional Office where the project is located (or awfhon2ed
(UPMO/ Bureaus) representative»

Note :

(*) The representatives from the Bureau Offices as stated shall be

members of the Quality Assurance Unit (QAU) and at least Engineer
IV.
 GUIDELINE:S SN ITlff lgsuANCE C}F THE €ERTIFI€ATE 0F CC}MPLE"ON
Page 2 of 6

(**) The authorized representative as stated shall be at least Section

Chief of the Construction Division, or the Division Chief of either the
Planning and Design Division or Quality and Hydrology Division of the
Regional Office.

* The Division Chief (or /ts authon2ed napnesenfaf7.Me) of the following

offices:

-Construction Division
- Maintenance Division
- Planning and Design Division
-Quality Assurance and Hydrology Division
- Chief of Construction Section or authorized representative of the
Regional Office DEO where the project is located

Note :

(*) The Authorized Representative as cited shall be at least Section

Chief of either the Construction Division, Maintenance Division,
Planning and Design Division, or Quality Assurance and Hydrology
Division-

* The Section Chief (or ;ts aufhon2ed #epnesenfaf7.we) of the following

offices:

- Construction section
- Maintenance section
- Planning and Design section
DistrictEngineering Office - Quality Assurance section

Note :

(*) The authorized representative as cited shall be at least Unit Head

of the Construction Section, Maintenance Section, Planning and Design
Section, or Quality Assurance Section.

The standard forms for the CoC, Completion Inspection Report, and the Final Completion
Inspection Report in the latest issued Department Order //.,e, Sra„dardr foni"s /w
Project lmplementation) shiTIN be edapfued.

111[ Procedures for the Issuance of Certificate of Completion

The Certificate of Completion shall be issued by the Head of the Implementing Office
(10)' to wit:

• For central office Implemented projects -Project/ Bureau Directors;

• For Regional office Implemented projects -Regional Directors; and
• For District office Implemented projects -District Engineers
 GUIDELINES ON THE !5SIIANCE 0F THE' CERTIFICATE OF COMPLETION
Page 3 Qf 6

The CoC shall only be issued upon submission of the Final Completion Inspection Report
(FCIR) of the Inspectorate Team stating that the project is satisfactorily completed in
accordance with the plans and specifications of the Contract.

1. Once the physical accomplishment reaches ninety-five percent (95%) of the total
contract amount and in preparation for the inspection for completion of the project,
the Head of 10 shall instruct the DPWH Project Management Team (PrMT) composed
of the assigned Field Engineers (Project Engineer, Project Inspector, Materials
Engineer) or may be initiated by the PrMT to conduct a mandatory preliminary
inspection jointly with the contractor and prepare and submit a Punchlist Report duly
signed by both parties. It shall contain, among others, the remaining works, work
defects/ 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 IO's claim for liquidated damages if completion of
the remaining works is beyond the approved original/revised expiry date. Likewise,
the Project Engineer shall ensure the monitoring of progress of the contractor in
rectifying the work deficiencies and completion of the remaining works.

For contracts funded by other agencies/ local government units (LGUs) where
implementation of same shall be the responsibility of this department through a
Memorandum of Agreement (MOA), unless otherwise specified, the DPWH-PrMT may
inform the end-user regarding the conduct of preliminary inspection together with
the contractor and prepare and submit a Punchlist Report duly signed by the DPWH
and contractor,

The standard form for the Punchlist Report in the latest issued Department Order
(i.e. Standard Forms in Project lmplementation) s;hex) be Erdapfufrd.

2, Once the physical accomplishment reaches 100°/o, the contractor shall immediately
notify the Head of 10 containing its declaration as to the completion date and its
request for the conduct of Inspection for Completion. The rectification works and
remaining works in the issued Punchlist Report that have been duly completed shall
likewise be certified by the DPWH Project Engineer. Further, the contractor shall
submit the Statement of Work Accomplished at 1000/o.

For contracts funded by other agencies/ local government units (LGUs) where
implementation of same shall be the responsibility of this department through a MOA,
unless otherwise specified, the DPWH-PrMT may inform or notify the agency/ LGUs
concerned regarding the declaration as to the completion date of the project. The
rectification works and remaining works in the issued Punchlist Report that have been
duly completed shall likewise be certified by the DPWH Project Engineer.

The Certificate of Completion of Correction Works Based on Punchlist Report in the

latest issued Department Order /;..e. Sfa„dard fonms /„ Pro/.eat
Jmp/eme»faf/o»/ shall be adopted.

3. Upon receipt of notice of completion and request for completion inspection from the
contractor, the following actions shall be performed:

a. For Central Office-implemented projects, the Bureau/Project Director shall

submit the documents enumerated below to the Undersecretary for Technical
Services through the Bureau of Quality and Safety (BQS):
 GUIDELINES 0N THE IS5UANCE OF THE CERTIFICATE 0F COMPLETION
Page 4 Of 6

• Approved contract Agreement

• Approved Final variation order
• Approved As-Built plan
• Approved contract Time Extension, /ffhere's any
• Punchlist Report
• Certificate of completion of correction works Based on punchlist Report duly
signed by the contractor and concurred by the DPWH Project Engineer
• Notice/letter of the contractor declaring the completion of the project at
specified date
• Duly signed contractor's statement of work Accomplished at l00%
• Quality Control Program and its approved Revisions (for projects with
approved VO)
• Certificate of Quality control Assurance (CQCA)
• MaterialsTest Reports

b. For RO and DEO - implemented projects, the Head of Implementing Unit

[Division (RO)/Section (DEO) Chief] shall submit the documents enumerated
above to the Head of 10.

4. Upon receipt of the complete set of documents, the Undersecretary for Technical
Services through the BQS shall instruct the Inspectorate Team as defined in Section
11 hereof, to conduct the inspection for completion of the project for Central Office -
implemented projects. Likewise, for RO/DEO - implemented projects, the Regional
Director or the District Engineer shall instruct the Inspectorate Team as defined in
aforesaid Section 11 hereof, to conduct the inspection for completion of the project,
for RO/DEO -implemented projects.

5. The time frame between the declared date of completion of the project by the
contractor up to the schedule of inspection of the Inspectorate Team shall not exceed
the period as follows :

For DEO & RO -Implemented projects 30 calendar days

For co -Implemented projects 45 calendar days

6. During the assessment, the Inspectorate Team must undertake the following, among
others:

• Verify all the Items of Work and the corresponding quantities indicated in the
Statement of Work Accomplished (SWA) through physical and/or documentary
examination of the project. All findings must be based on existing DPWH policies
and issuances.
• Take geotagged photographs of all physical findings.
• Take copies of documents to support findings of documentary examination.

In case of validation of corrective works, the Inspectorate Team must check

corrective actions undertaken on noted non-compliance in the issued Completion
Inspection Report/s. It shall be duly supported with geotagged photographs taken
before, during and after the rectification works.

7. The Inspectorate Team shall submit its Completion Inspection Report within fifteen
(15) days from receipt of the instruction to conduct inspection, indicating any
 GUIDEuNE:;$ ON THE E5SUANCE OF THE.CER"FICATE OF COMPLETION
Page 5 G!f 6

construction defects/ deficiencies found and the corresponding measures the

contractor must undertake to correct them.

If no defect/ deficiency was noted upon the first inspection, the report is considered
the Final Completion Inspection Report. The Inspectorate Team shall duly note this
in the Final Completion Inspection Report.

The standard form for the Completion Inspection Report in the latest issued
Dc:partherlt Order (i,e. Standard Forms in Project lmplementation) s;heAI T]e
adopted.

8. Based on the Completion Inspection Report, the Head of the 10 shall issue to the
contractor a Notice of Defects/ Deficiencies and Required Corrective Repair Works,
with the instructions for the contractor to commence the repair works within seven
(7) days and to complete the works within thirty (30) days, from receipt of the
aforesaid Notice.

If the Contractor, fails to commence and repair works within the stipulated
timeframe of thirty (30) days due to his fault and negligence, Section 34
of Rule X - PostlQualification of 2016 RIRR of R,A. 9184 shall apply[
Likewise, the Liquidated Damages shall be imposed to the contractor in
accordance with Appendix G of this guidelines.

The standard form for the Notice of Defects/ Deficiencies in the latest issued
DepFutmerit Order (i.e. Standard Forms in Project lmplementation) s;heiIN rje
adopted.

9. Upon receiving request for validation of corrections and advice from the contractor
that the defects and deficiencies indicated in the said Notice of Defects have been
corrected, the Undersecretary for Technical Services thru the BQS (for central office-
implemented projects), and the Head of 10 (for RO/DEO implemented projects), shall
instruct the same Inspectorate Team to conduct an inspection of the project and to
submit its Completion Inspection Report within seven (7) days. If the report shows
that the defects/ deficiencies have been satisfactorily corrected, the report is
considered the FCIR. Otherwise, the process is repeated until the noted defects/
deficiencies have been satisfactorily corrected.

In case one or more members from the Inspectorate Team is/ are not available,
replacement representative/s shall be assigned.

The requests for the inspection of corrective actions undertaken on non-conformities

noted on the Completion Inspection Report shall be supported with the Certificate of
Corrective Actions from the Project Engineer of the 10, together with contractor's
photographs taken before, during, and after, and other relevant documents.

10. Upon receipt of the FCIR from the Inspectorate Team, the Head of 10 shall issue the
Certificate of Completion of the project, certifying that the project has been
satisfactorily completed as of the date indicated therein.

The Date of Completion shall be in accordance with Section IV of this guidelines.

 GUIDELINES 0!ti THE I$5uANCE 0F THE' CERTIFICATE 0F COMPLETION
Page-? 6 Of 6

For contracts funded by other agencies/ local government units (LGUs) where
implementation of same shall be the responsibility of this department through a
Memorandum of Agreement (MOA), unless otherwise specified, the Head of 10 shall
issue a Certificate of Turn-Over to the agency/ LGUs concerned.

The standard form for the Certificate of Turn-Over shown in Appendix ``8'' shall be
adopted.

IV[ Declaration of Date of Completion and Commencement of the Defects Liability

Period

1. The completion date declared by the contractor shall be used as the Date of
Completion and reference for the commencement of the Defects Liability Period if:

a, The project is free and clear of any defect or deficiency during the first conduct
of inspection by the Inspectorate Team, the Date of Completion shall be the
same as to the completion date declared by the contractor as concurred by the
Project Engineer.

b. There are defects or deficiencies noted by the Inspectorate Team c/ur/.ng fi4e
conc/uct of #rsf ;.„5pect/.an for camp/e£7.an, the Date of Completion shall be the
same as to the completion date declared by the contractor as concurred by the
Project Engineer provided that the rectification works noted on the issued Notice
of Defects/ Deficiencies are completed within the approved plans and
specifications, and within the prescribed period under sub-section Ill.8 hereof.

2. The Date of Completion shall be the date the rectifications are completed by the
contractor (in accordance with the approved plans and specifications) and duly
accepted by the Inspectorate Team, and shall serve as the basis in the
commencement of the DLP, if:

a. The defects or deficiencies noted by the Inspectorate Team involves structural

defects and/ or non-conformance with the approved Plans and Specifications.

b. The noted defects/ deficiencies were found to have not yet been satisfactorily
completed during the succeeding inspection (2nd, 3rd . . .etc.) by the Inspectorate
Team.

These shall be used as reference in the imposition of the Liquidated Damages.

The procedures in the computation of the Liquidated Damages shown in Appendix

``A'' shall be adopted.
 ANNEX 2

GUIDELINES FOR THE ISSUANCE OF THE CERTIFICATE OF FINAL ACCEPTANCE

I. DEFINITION OFTERMS

Certificate of Final Acceptance (CFA) -a document issued by the implementing office

certifying that the project is accepted by the same, after successful completion of all
contractual obligations, requirements, and/or specifications, including any required
correction of defects/deficiencies (which may be due to poor workmanship, use of poor
quality materials, and non-compliance with the Plans and Specifications of the Contract)
based on the Final Acceptance Inspection Report of the Inspectorate Team. It is issued
after the lapse of the one (1) year Defects Liability Period (DLP).

Date of Final Acceptance -the date indicated under the Certificate of Final Acceptance
as the date when the project has been accepted by the 10, after successful completion
of all contractual obligations, requirements, and/or specifications, including any required
correction of defects/deficiencies (which may be due to poor workmanship, use of poor
quality materials, and non-compliance with the Plans and Specifications of the Contract)
based on the Final Acceptance Inspection Report of the Inspectorate Team.

Acceptance Punchlist Report - a document l.isting works that does not conform to
contract plans and specifications, and the specific duration/time to fully complete the
project considering the approved remaining contract time.

11. Composition of the Inspectorate Team

The Inspectorate Team for the issuance of CFA shall have the following composition:

Implementing
Inspectorate Team
Office
* One (1) representative each from the following offices:

- Bureau of Quality and safety (BQS)

- Bureau of construction (BOC)
- Bureau of Research and standards (BRS)
- Bureau of Maintenance (BOM)
- ** Chief of the Construction Division/ Regional QAU of the
Regional Office where the project is located (or auz]4or/2ec/
representativeS
Centra I Office
(UPMO/ Bureaus) Note :

(*) The representatives from the Bureau Offices as stated shall be

member of Quality Assurance Unit (QAU) and at least Engineer IV.

(**) The authorized representative as stated shall be at least Section

Chief of the Construction Division, or the Division Chief of either the
Maintenance Division or Quality and Hydrology Division of the Regional
Office.
 GUIDELINES FOR THE ISSUANCE OF THE CERTIFICATE OF FINAL ACCEPTANCE

Page 2 of 6

* The Division Chief (or /'fs auf:4ori2ed nfpnes€#faf/.I/e) of the following

offices:

-Construction Division
- Maintenance Division
- planning and Design Division
-Quality Assurance and Hydrology DMsion
- Chief of Construction Section or authorized representative of the
Regional Office
DEO where the project is located

Note :

(*) The Authorized Representative as cited shall be at least Section

Chief of either the Construction Division, Maintenance Division, or
Quality Assurance and Hydrology Division.

* The Section Chief (or /.fs auf]frori2ec/ nepnesenfaf7.Me) of the following

offices:

- Construction section
- Maintenance section
- Planning and Design section
District - Quality Assurance and Hydrology section
Engineering Office
Note :

(*) The authorized representative as cited shall be at least Unit Head

of the Construction Section, Maintenance Section, Planning and Design
Section, or Quality Assurance Section.

The standard forms for the CFA, Acceptance Inspection Report, and the Final Acceptance
Inspection Report in the latest issued Department Order //.,e. Sfandanct for"s /.o
Project Implementation) s;helN) be adaprdfrd .

Ill. Procedures for the Issuance of Certificate of Final Acceptance

The Head of the Implementing Office shall issue the Certificate of Final Acceptance to
the contractor provided that all three (3) conditions are met:

a. The one-year Defects Liability Period (DLP) has lapsed;

b. All defects/ deficiencies during the DLP, if any, shall have been repaired by the
contractor to the satisfaction of the Inspectorate Team; and
c. Submission of the Warranty Certificate by the Contractor in accordance with the
provisions of Sections 62.2.3.3 and 62.2.3.4 of the same IRR (or any latest issuance).

1. At least three months (3 mos,) prior to the lapse of the DLP, the DPWH Project
Management Team (PrMT) composed of the assigned Field Engineers (composition
shall be the same with Annex 1 of this guidelines) may conduct a preliminary
inspection jointly with the contractor and prepare and submit an Acceptance Punchlist
Report duly signed by both parties which shall contain list of work defects/
deficiencies for necessary corrections.
 GUIDELINES FOR THE ISSUANCE OF THE CERTIFICATE OF FINAL ACCEPTANCE

Page 3 of 6

The standard form for the Acceptance Punchlist Report in the latest issued
Daparfumerit Order (i.e. Standard Forms in Project lmplementetion) sh;haHJ be
adopted..

2. P"-orto the lapse of the DLP (at least 1 month), after the defects/ deficiencies in the
issued Acceptance Punchlist Report was corrected and rectified by the contractor, ;.f
f»erie's any, the DPWH-PrMT shall notify the contractor on the impending issuance of
the Certificate of Final Acceptance. At the same time, the following documents shall
be submitted by the concerned Implementing Office (10) to the Bureau of Quality
and Safety (BQS), in case of Central Office implemented projects, or the concerned
Implementing Unit (IU) to the Head of 10, in case of Regional/ District Office
implemented projects.

- Final completion Inspection Report

- Certificate of completion
- Approved As-Built plans
- Warranty security
- Acceptance punchlist Report, ;.ff*ere's a„/r.

3. Affierthe lapse of Defects Liability Period (DLP), the Head of 10 shall notify the
contractor in writing of the conduct of inspection for the acceptance of the project.
The said letter shall include an instruction to the contractor to submit the warranty
certificate as required under Section 62.2.3,3 and 62.2.3,4 of the Revised IRR of RA
9184 (or any latest issuance). At the same time, the Undersecretary for Technical
Services thru the BQS for Central Office (CO) implemented projects and the Head of
10 for RO/DEO - implemented projects, shall instruct the Inspectorate Team as
enumerated under Section 11 hereof, to conduct an inspection of the project and to
prepare and submit its Acceptance Inspection Report within fifteen (15) days,
indicating any construction defects/deficiencies found and the corresponding
measures that the contractor must undertake to correct them. If no
defects/deficiencies are noted, the report is considered the Final Acceptance
Inspection Repert.

The Notification Letter to the contractor shown in Appendix ``C'' shall be adopted.

4, The timeframe from the lapse of the one-year DLP of the project up to the conduct
for inspection for acceptance shall not exceed I"/lrf]r /30J ca/edda/ dare for
projects implemented by the Central, Regional, and District Engineering Offices.

5. During the assessment, the Inspectorate Team must undertake the following, among
others:

a. Check the condition of the completed structures and categorize defects according
to the following:

- duetoordinarywearandtear;
- due to useofpoorquality materials; and
- due to other factors

b. Take geotagged photographs of noted defects.

 GUIDELINES FOR THE ISSuANCE OF THE CERTIFICATE OF FINAL ACCEPTANCE

Page 4 of 6

c. Verify whether defects/ deficiencies in the issued Acceptance Punchlist Report

have been corrected/ rectified. If found that the contractor did not comply in the
issued Acceptance Punchlist Report, the Inspectorate Team shall include in their
findings and recommendations regarding BIacklisting of the contractor in
accordance to Section 6,2 Appendix 17 of the Revised IRR of RA 9184 (or any
latest issuance).

In case of validation of corrective works, the Inspectorate Team must check

corrective actions undertaken on noted non-compliance in the previous Inspection
Report for Acceptance. It shall be duly supported with geotagged pictures taken
before, during and after the rectification.

6. Based on the Inspection Report, the Head of the 10 shall issue to the contractor a
Notice of Defects/ Deficiencies and Required Corrective Repair Works, with the
instructions for the contractor to commence the repair works within seven (7) days
and to complete within ninety (90) days, from receipt of the aforesaid Notice.

The standard form for the Notice of Defects/ Deficiencies in the latest issued
De!parfumenl Orde!r (i.e, Standard Forms in Project lmplementation) s;haiIN be
adopted.

If the Inspectorate Team notes no defects/ deficiencies upon the first inspection prior
to the issuance of the Certificate of Final Acceptance, the Team shall duly note this
in the Final Acceptance Inspection Report.

In case of failure or refusal of the contractor to comply with the required

Corrective Actions as indicated in the Notice of Defects and Deficiencies,
the Procuring Entity shall undertake such repair works and shall be entitled
to full reimbursement of expenses incurred therein upon demand, and
post-disqualify the contractor in any DPWH Procurement to which the
contractor participated.

If the contractor fails to comply with its obligations under the first
paragraph of Sub-Section Ill.5 hereof, the Procuring Entity shall forfeit the
contractor's performance security, subject its property(ies) to attachment
or garnishment proceedings, and perpetually disqualify it from
participating in any competitive bidding. All payables of the Gop in his
favor shall be offset to recover the costs.

7, Upon receiving advice from the contractor that the defects/ deficiencies in the said
Notice have been corrected, the Undersecretary for Technical Services thru the BQS
for CO-implemented projects and the Head of 10 for RO/DEO -implemented projects
shall instruct the same Inspectorate Team to conduct an inspection of the project
and to submit its Acceptance Inspection Report within seven (7) days. If the report
shows that the defects/ deficiencies have been satisfactorily corrected, the report is
considered as the Final Acceptance Inspection Report. Otherwise, the process is
repeated until the noted defects/ deficiencies have been satisfactorily corrected,

The standard form for the Acceptance Inspection Report and Final Acceptance
Inspection Report in the latest issued Department Order /;'.e. Sfandand forms /.w
Project lmplementation) s;hiN^ be adapnfed.
 GUIDELINES FOR THE ISSUANCE OF THE CERTIFICATE OF FINAL ACCEPTANCE

Page 5 of 6

8. The Head of the Io may initiate instruction to the DPWH-PrMTto conductassessment

(in accordance with Sub-Section Ill,5 hereof except item c) of the completed project
at any time within the period of the DLP for any manifestation of defects or non-
conformities on the completed project. After the conduct of assessment, the DPWH-
PrMT shall prepare and submit Inspection Report within fifteen (15) days, indicating
any construction defects/ deficiencies found and the corresponding measures that
the contractor must undertake to correct them.

(a) Based on the Inspection Report, the Head of the 10 shall issue to the contractor
a Notice of Defects/ Deficiencies which shall be the same as with the first
paragraph of Sub-Section Ill.6 hereof.

(b) The contractor shall undertake the repair works, at his own expense, of any
noted defects/ deficiencies in the Notice of Defects/ Deficiencies within 90 days
after receipt of such Notice. In case of failure or refusal to comply with this
mandate, fourth and fifth paragraphs of Sub-Section Ill.6 hereof, shall apply,

(c) After the contractor has completed the repair works, he shall submit Notice to
the Head of 10. The DPWH-PrMT thru the instruction from the Head of the 10
shall re-assess and revalidate the said completed repair works of the contractor
in accordance with Sub-Section Ill.5 hereof. Likewise, the DPWH-PrMT shall
prepare and submit Inspection Report within (7) days. If the report shows that
the defects/ deficiencies have not been satisfactorily corrected or repaired, the
process in Sub-Section Ill.7 hereof is repeated until the same has been
satisfactorily corrected.

9. If the contractor commits any of the following, the Head oflmplementing office shall
initiate Blacklisting Procedure, pursuant to Section 6.2 Appendix 17 of the Revised
IRR of RA 9184 (or any latest issuance):

a. Fails and/ or refuses to submit the required warranty bond prior to the issuance
of the Certificate of Final Acceptance as lawfully instructed in Section Ill.2 hereof

b. Fails and/ or refuses to institute Corrective Repair Works within the timeframe
as lawfully instructed and stipulated in the Notice of Defects and Deficiencies.

Section 6.2 Appendix 17 of the Revised IRR of RA 9184:

Where contract termination is no /onger possible, but the contractor committed acts
or causes which may constitute ground(s) for b/acklisting, the imp/ementing unit shal/,
within seven (7) days after the lapse of project duration, cause the execution of a
Verified Report, with all relevant evidence attached, subject to the fol/owing
procedures:

(a) Notice of Blacklisting. Upon recommendation by the Imp/ementing Unit, the Head
of Procuring Entity sha// initiate the b/ack/isting procedures by a written notice to
the contractor conveying the fo/lowing information:

(1) a statement of the acts that constitute the ground(s) for black/isting;
(2) an instruction to the contractor to show cause as to why it should not be
b/acklisted; and
 GUIDELINES FOR THE ISSUANCE 0F THE CERTIFICATE OF FINAL ACCEPTANCE

Page 6 of 6

(3) specia/ instructions of the Procuring Entity, if any.

The Notice of B/ack/isting sha/I be accompanied by a copy of the Verified Report.

(b) Show Cause. Within a period of seven (7) ca/endar days from receipt of the
Notice of Black/isting, the contractor shal/ submit to the Head of the Procuring
Entity a verified position paper stating why it shou/d not be blacklisted.

If the contractor fai/s to show cause after the /apse of the seven (7) day period,
e.ither by inaction or by default, the Head of the Procuring Entity shall issue a
B/acklisting Order.

(c) Decision. Within a non-extendible period of ten (10) calendar days from receipt
of the verifiied position paper, the Head of the Procuring Entity shal/ decide
whether or not to black/ist the contractor. It shal/ serve a written notice to the
contractor of its decision which shal/ become fina/ and executory after the /apse
of seven (7) ca/endar days from the receipt of the notice of decision.

10. For dredging/desilting projects, the specific item of work on dredging/desilting is

exempted from the one-year defects I.iability per.iod pursuant to Sub-Sect.Ion 62.2.3.2
of the revised IRR of R.A. 9184 (or any latest issuance) which covers only permanent,
semi-permanent, and other structures.

11. Upon receMng the Final Acceptance Inspection Report, the Head of the 10 shall issue
the Certificate of Final Acceptance.

12, The Certificate of Final Acceptance shall be forwarded to the Infrastructure Group,
Accounting Division immediately after the issuance for the timely preparation of the
journal entry to reflect the derecognition of the completed project/asset from the
books of accounts of the Department and indicate the turnover to the Regional Office
(RO)/District Engineering Office (DEO)/Other National Government Agency
(NGA)/Local Government Unit (LGU) having jurisdiction over the asset which shall be
responsible for its maintenance and operation.

13. The Journal Entry Voucher (JEV) and Subsidiary Ledger (SL) shall be forwarded by
the Finance Service to the concerned RO/DEO/NGA/LGU for it to recognize the
transferred/donated asset in its books of accounts.

14. The RO/DEO/LGU shall furnish the Finance Service of the JEV and SL recognizing the
asset in its books of accounts.
 APPENDIX A

PROCEDURES IN COMPUTING THE LIQUIDATED DAMAGES

I. CONDITIONS

a. Liquidated Damages is when the contract duration expires, including any time
extension duly granted, and where the Contractor refuses or fails to satisfactorily
complete the work in accordance with plans and specifications.

b. Liquidated Damages is an amount equal to at least one tenth (1/10) of one (1)
percent of the cost of the unperformed portion of the works for every day of delay.

c. The Procuring Entity shall impose liquidated damages if the delay is found to be
attributable to the fault of the Contractor.

d. The Procuring Entity determines the usability of the project. A project or a portion
thereof may be deemed usable when it starts to provide the desired benefits as
certified by the targeted end-users and the concerned Procuring Entity.

e. The Procuring Entity does not have to prove that it has incurred actual damages.
Such amount shall be deducted from any money due or which may become due the
Contractor under the contract or collect such liquidated damages from the retention
money or other securities posted by the Contractor, or a combination thereof,
whichever is convenient to the Procuring Entity.

f. In case the total sum of liquidated damages reaches ten percent (10%) of the total
contract price, the Procuring Entity has the following options:

Terminate the contract pursuant to the Guidelines on Termination of Contract

and forfeit the erring Contractor's performance security. After termination,
the Procuring Entity may either (i) take over the contract; or (ii) resort to any
of other alternative methods of procurement provided under R.A. No. 9184
and its 2016 revised rules and regulations; or

Allow the Contractor to continue the works without prejudice to the

continued imposition of liquidated damages until the works have been
completed. This does not, however, preclude the Procuring Entity in resorting
to Termination of Contract under Annex I of the 2016 revised IRR of RA No.
9184.

11. PROCEDURES

1. With Neaative SliDDaae upon Completion of the Proiect:

a. Upon reaching 100% Planned Accomplishment of the project and the Actual
Physical Accomplishment is behind schedule, or if it incurred a negative slippage
due to the fault of the Contractor, the 10 shall impose liquidated damages to the
Contractor.
 D.o. EL s. 2o24, roRMs

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b. If the actual Physical Accomplishment of the project reached 100°/o, the

Contractor or the DPWH Project Management Team (PMT) shall immediately
notify the Head of 10 containing its declaration as to the completion date and its
request for the conduct of Inspection for Completion.

c. Upon issuance of Certificate of Completion (CoC), certifying that the project has
been satisfactorily completed as of the date indicated in the Final Completion
Inspection Report, the computation of Liquidated Damages of the unperformed
portion of the works for every day of delay of the project is up to the date
completed indicated in the said COC.

2. Without Negative Slippage upon Completion of the Pro_iect but with noted defects/
deficienov after the conduct of 2nd, 3rd . . .nth Inspection for ComDletion :

a. Upon reaching 1000/o Physical Accomplishment of the project, the Contractor or

the DPWH Project Management Team (PMT) shall immediately notify the Head
of 10 containing its declaration as to the completion date and its request for the
conduct of Inspection for Completion.

b. If the Inspectorate Team observes defects/ deficiencies which have not yet been
corrected during the conduct of 2nd, 3rd ,... nth Inspection for Completion, the
I.0. shall impose liquidated damages to the Contractor.

c. Likewise, the date completed to be declared in the COC shall be the date when
the corrective measures were found acceptable by the Inspectorate Team as
indicated in the Final Completion Inspection Report.

d. Upon issuance of COC, certifying that the project has been satisfactorily
completed as of the date indicated in the Final Completion Inspection Report,
the date completed indicated in the COC shall be used as reference in the
imposition of the Liquidated Damages.

e. Hence, the computation of Liquidated Damages of the unperformed portion of

the works for every day of delay of the project is up to the date completed
indicated in the COC.

f. Otherwise, if the repair works on the noted defects/ deficiencies were completed
within the period prescribed and found acceptable during the conduct of 2nd
Inspection for Completion, no liquidated damages shall be imposed.

3. Without Neaative SliDDaae uDon Completion of the Proiect but with noted structural
defects/ failures and non-conformance with the aDDroved Plans and specifications
after the conduct of lst InsDection for ComDletion:

a. Upon reaching the 100% Physical Accomplishment of the project, the contractor
or DPWH-PMT shall immediately notify the Head of 10 containing its declaration
as to the completion date and its request for the conduct of Inspection for
Completion.
 D.O. Jh4 S. 2024, FORMS

Page 3 of 5

b. If the Inspectorate Team observes structural defects/ failures and non-

conformance with the approved Plans and Specifications during the conduct of
Inspection of Completion (regardless if it is the lst conduct of inspection), the
I.0. shall impose liquidated damages to the contractor.

c. The date completed to be declared in the CoC shall be the shall be the date when
the corrective measures were found acceptable by the Inspectorate Team as
indicated in the Final Completion Report.

d. Upon issuance of CoC, certifying that the project has been satisfactorily
completed as of the date indicated in the Final Completion Inspection Report,
the date completed indicated in the CoC shall be used as reference in the
imposition of LD.

e. Hence, the computation of LD of the unperformed portion of the works for every
day of delay of the project is up to the date completed indicated in the CoC.

Ill. COMPUTATION

1. Cost of LD per day of delay:

Liquidated Damages (LD) = i [0.01 x (Cost of unperformed works)I

2. Total Cost of LD of the project up to the issuance of COC:

Total Cost of Liquidated Damages (LD) = (LD) x (No. of days of delay)

3. The number of days of delay refers to the period after contract expiry until the
date completed as indicated in the Certificate of Completion.
 D.O. iffy, S. 2024, FORMS

Page 4 of 5

APPENDIX 8

Date :

CERTIFICATE 0F TURN-OVER

The /*Co„fractwame/ undertaken by /Co#£ractorJ, satisfactorily completed in accordance

with the approved Plans and Specifications, is hereby officially turned-over to the /rvame of
the Agency/ LGU concerned).

NAME & SIGNATURE

Head of Implementing Office

ACKNOWLEDGED BY:

NAME & SIGNATURE

Authorized Representative/ Proponent

Date :
 D.O, life s. 2024, FORMs

Page 5 of 5

APPENDIX C

Date :

NOTIFICATION LE[FTER
(Conduct of Ihspectioh for Final Acceptance)

(Name of the Contractor)

(Address of the Contractor)
(Fax and Contact Number of the Contractor)

Dear Sir / Madame:

As the one-year Defects Liability Period (DLP) from the eifectivity of the Issuance of the
Certificate of Completion (CoC) for the /Contract JO, Pro/.edf Wame ant/ £ocafro„J has already
lapsed, the Inspectorate Team shall conduct inspection for the final acceptance of the project
prior to the Issuance of the Certificate of Final Acceptance.

Likewise, you are hereby directed to submit a Mannanfr aerdfiffcate prior to the issuance of
Certificate of Final Acceptance within the time frame provided hereunder, whichever is
applicable:

a. Within thirty calendar days (30 c.d.) from receipt hereof, in case of no defects/
deficiencies noted in the initial conduct of inspection for final acceptance by the
Inspectorate Team; or

b. Upon acceptance of corrective/ repair works by the Inspectorate Team based on the
issued Notice of Defects/ Deficiencies in case of noted defects/ deficiencies by the said
Inspectorate Team in the conduct of inspection for final acceptance, but prior to the
issuance of the Certificate of Final Acceptance by this Office.

Failure to comply with the instruction as herein stated may compel this office to initiate
appropriate measures such as blacklisting as provided under Section 6.2 Appendix 17 of the
Revised IRR of RA 9184.

Very truly yours,

NAME & SIGNATURE

Head of Implementing Office

Conforme:

NAME & SIGNATURE

Authorized Representative
Contractor

Date :