Bidding Documents OC Dorm
Bidding Documents OC Dorm
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Section I. Invitation to Bid
REPUBLIC OF THE PHILIPPINES
BATAAN PENINSULA STATE UNIVERSITY
Main Campus, Capitol Compound, City of Balanga 2100 Bataan
The Bataan Peninsula State University, through the General Appropriations Act of 2020 intends
to apply the sum of Fifteen Million Pesos only (Php 15,000,000.00) being the Approved
Budget for the Contract (ABC) to payments under the contract for PR No. OC2019-10-231 –
Construction of Two-Storey Dormitory for Students (inclusive of furniture and
fixtures) at BPSU Orani Campus. Bids received in excess of the ABC shall be automatically
rejected at bid opening.
1. The Bataan Peninsula State University now invites bids for PR No. OC2019-10-231 –
Construction of Two-Storey Dormitory for Students (inclusive of furniture and
fixtures) at BPSU Orani Campus. Completion of the Works is required for Two
Hundred Forty (240) calendar days. Bidders should have completed a contract similar to
the Project. The description of an eligible bidder is contained in the Bidding Documents.
2. Bidding will be conducted through open competitive bidding procedures using non-
discretionary “pass/fail” criterion as specified in the 2016 Revised Implementing Rules and
Regulations (IRR) of Republic Act 9184 (RA 9184), otherwise known as the “Government
Procurement Reform Act.”
4. Interested bidders may obtain further information from the Bataan Peninsula State
University - BAC Secretariat/Procurement Office and inspect the Bidding Documents at
the address given below from 9:00am to 4:00pm.
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
(http://www.bpsu.edu.ph), provided that bidders shall pay the applicable fee for the
Bidding Documents not later than the submission of their bids.
6. The Bataan Peninsula State University will hold a Pre-Bid Conference on October 23,
2019, 2:00pm at the 2nd Floor, Administration Building, BPSU Main Campus, Capitol
Compound, City of Balanga, Bataan which shall be open to prospective bidders.
7. Bids must be duly received by the BAC Secretariat at the address below on or before
November 6, 2019 at 11:00am. All bids must be accompanied by a bid security in any of
the acceptable forms and in the amount stated in ITB Clause 18.
Bid opening shall be on November 6, 2019 at 2:00pm, 2nd Floor, Administration Building,
BPSU Main Campus, Capitol Compound, City of Balanga, Bataan. 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. The Bataan Peninsula State University reserves the right to reject any and all bids, declare
a failure of bidding, or not award the contract at any time prior to contract award in
accordance with Section 41 of RA 9184 and its IRR, without thereby incurring any
liability to the affected bidder or bidders.
_________________________________
(Sgd) JOSE PAULO B. TUAZON
BAC Chairperson
Section II. Instructions to Bidders
TABLE OF CONTENTS
A. GENERAL
1. Scope of Bid
2. Source of Funds
3. Corrupt, Fraudulent, Collusive, Coercive, and Obstructive Practices
4. Conflict of Interest
5. Eligible Bidders
6. Bidder’s Responsibilities
7. Origin of GOODS and Services
8. Subcontracts
B. CONTENTS OF BIDDING DOCUMENTS
9. Pre-Bid Conference
10. Clarification and Amendment of Bidding Documents
C. PREPARATION OF BIDS
11. Language of Bids
12. Documents Comprising the Bid: Eligibility and Technical Components
13. Documents Comprising the Bid: Financial Component
14. Alternative Bids
15. Bid Prices
16. Bid Currencies
17. Bid Validity
18. Bid Security
19. Format and Signing of Bids
20. Sealing and Marking of Bids
D. SUBMISSION AND OPENING OF BIDS
21. Deadline for Submission of Bids
22. Late Bids
23. Modification and Withdrawal of Bids
24. Opening and Preliminary Examination of Bids
E. EVALUATION AND COMPARISON OF BIDS
25. Process to be Confidential
26. Clarification of Bids
27. Detailed Evaluation and Comparison of Bids
28. Post Qualification
29. Reservation Clause
F. AWARD OF CONTRACT
30. Contract Award
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31. Signing of the Contract
32. Performance Security
33. Notice to Proceed
34. Protest Mechanism
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A. General
1. Scope of Bid
1.1. The Procuring Entity named in the BDS, invites bids for the construction of
Works, as described in Section VI. Specifications.
1.2. The name, identification, and number of lots specific to this bidding are provided
in the BDS. The contracting strategy and basis of evaluation of lots is described in
ITB Clause 27.
1.3. The successful Bidder will be expected to complete the Works by the intended
completion date specified in SCC Clause 1.17.
2. Source of Funds
The Procuring Entity has a budget 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.
(a) defines, for purposes of this provision, the terms set forth below as
follows:
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participation in a procurement process, or affect the execution of a
contract;
(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.
3.2. 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).
3.3. 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.
4. Conflict of Interest
4.1. 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:
(b) A Bidder receives or has received any direct or indirect subsidy from any
other Bidder;
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(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;
(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;
4.2. 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 (HoPE), 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:
(c) If the Bidder is a corporation, to all its officers, directors, and controlling
stockholders;
(d) If the Bidder is a cooperative, to all its officers, directors, and controlling
shareholders or members; and
(e) If the Bidder is a joint venture (JV), the provisions of items (a), (b), (c) or
(d) 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.
5. Eligible Bidders
5.1. Unless otherwise indicated in the BDS, the following persons shall be eligible to
participate in this Bidding:
(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;
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(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;
(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.
5.2. The Procuring Entity may also invite foreign bidders when provided for under any
Treaty or International or Executive Agreement as specified in the BDS.
5.4. (a) The Bidder must have an experience of having completed a Single Largest
Completed Contract (SLCC) that is similar to this Project, equivalent to at least
fifty percent (50%) of the ABC adjusted, if necessary, by the Bidder to current
prices using the Philippine Statistics Authority (PSA) consumer price index.
However, contractors under Small A and Small B categories without similar
experience on the contract to be bid may be allowed to bid if the cost of such
contract is not more than the Allowable Range of Contract Cost (ARCC) of their
registration based on the guidelines as prescribed by the PCAB.
(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.
5.5. The Bidder must submit a computation of its Net Financial Contracting Capacity
(NFCC), which must be at least equal to the ABC to be bid, calculated as follows:
NFCC = [(Current assets minus current liabilities) (15)] 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.
The values of the domestic bidder’s current assets and current liabilities shall be
based on the latest Audited Financial Statements (AFS) submitted to the BIR.
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For purposes of computing the foreign bidders’ NFCC, the value of the current
assets and current liabilities shall be based on their audited financial statements
prepared in accordance with international financial reporting standards.
6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a sworn statement in
the form prescribed in Section VIII. Bidding Forms as required in ITB Clause
12.1(b)(iii).
(a) Having taken steps to carefully examine all of the Bidding Documents;
(c) Having made an estimate of the facilities available and needed for the
contract to be bid, if any;
(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;
(g) Authorizing the HoPE 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 to participate, submit the bid, and to sign and
execute the ensuing contract, accompanied by the duly notarized Special
Power of Attorney, Board/Partnership Resolution, or Secretary’s
Certificate, whichever is applicable;
(j) Complying with existing labor laws and standards, in the case of
procurement of services. Moreover, bidder undertakes to:
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9184 without prejudice to the institution of appropriate actions
under the Labor Code, as amended, and other social legislations.
(iii) Inform the workers of their conditions of work, labor clauses under
the contract specifying wages, hours of work and other benefits
under prevailing national laws, rules and regulations; or collective
bargaining agreement; or arbitration award, if and when applicable,
through posting in two (2) conspicuous places in the
establishment’s premises; and
(k) Ensuring that it did not give or pay, directly or indirectly, any commission,
amount, fee, or any form of consideration, pecuniary or otherwise, to any
person or official, personnel or representative of the;
Failure to observe any of the above responsibilities shall be at the risk of the
Bidder concerned.
6.3. 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.
6.4. 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 and access roads; and (d) other
factors that may affect the cost, duration and execution or implementation of the
contract, project, or work.
6.5. 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. However, the Procuring Entity shall ensure that
all information in the Bidding Documents, including supplemental/bid bulletins
issued are correct and consistent.
6.6. 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.
6.7. 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.
6.8. The Bidder should note that the Procuring Entity will accept bids only from those
that have paid the applicable fee for the Bidding Documents at the office
indicated in the Invitation to Bid.
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7. 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.
8. Subcontracts
8.1. 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.
8.2. 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.
8.3. 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) The pre-bid conference shall be held at least twelve (12) calendar days before
the deadline for the submission of and receipt of bids, but not earlier than seven
(7) calendar days from the posting of the Invitation to Bid/Bidding Documents in
the PhilGEPS website. 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.
9.2. 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. The minutes of the
pre-bid conference shall be recorded and prepared not later than five (5) calendar
days after the pre-bid conference. The minutes shall be made available to
prospective bidders not later than five (5) days upon written request.
9.3. Decisions of the BAC amending any provision of the bidding documents shall be
issued in writing through a Supplemental/Bid Bulletin at least seven (7) calendar
days before the deadline for the submission and receipt of bids.
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10.1. Prospective bidders may request for clarification(s) on and/or interpretation of any
part of the Bidding Documents. 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.
10.2. The BAC shall respond to the said request by issuing a Supplemental/Bid
Bulletin, to be made available to all those who have properly secured the Bidding
Documents, at least seven (7) calendar days before the deadline for the
submission and receipt of Bids.
10.3. Supplemental/Bid Bulletins may also 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.
10.4. Any Supplemental/Bid Bulletin issued by the BAC shall also be posted in the
PhilGEPS and the website of the Procuring Entity concerned, if available, and at
any conspicuous place in the premises of the Procuring Entity concerned. It shall
be the responsibility of all Bidders who have properly secured 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
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(ii) Statement of all its ongoing government and 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; and
The two statements required shall indicate for each contract the
following:
(i) Bid security in accordance with ITB Clause 18. If the Bidder opts
to submit the bid security in the form of:
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(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
(a) Financial Bid Form, which includes bid prices and the bill of quantities, in
accordance with ITB Clauses 15.1 and 15.3; and
(b) Any other document related to the financial component of the bid as stated
in the BDS.
13.2. (a) Unless otherwise stated in the BDS, all Bids that exceed the ABC shall not
be accepted.
(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 infrastructure projects)
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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.
(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.
14.2. 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.
14.3. 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.
15.2. 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 zero (0) or a dash (-) for the said
item would mean that it is being offered for free to the Government, except those
required by law or regulations to be provided for.
15.3. 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.
15.4. 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
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GCC Clause 48. Upon the recommendation of the Procuring Entity, 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 approval by the GPPB. 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.
16.2. 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 Bangko Sentral ng Pilipinas (BSP) reference
rate bulletin on the day of the bid opening.
16.3. Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Pesos.
17.2. 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.
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(b) Bank draft/guarantee or
irrevocable 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.
18.2. 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.
18.3. 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 request for reconsideration
and/or protest, or lapse of the regleme45ntary period without having filed a
request for reconsideration or protest. Without prejudice on its forfeiture, Bid
Securities shall be returned only after the Bidder with the Lowest Calculated
Responsive Bid (LCRB) 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.
18.4. 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.
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(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);
(vi) allowing the use of one’s name, or using the name of another for
purposes of public bidding;
(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.
(i) fails to sign the contract in accordance with ITB Clause 31;
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12.1, and the second shall contain the financial component of the bid. This shall
also be observed for each lot in the case of lot procurement.
19.2 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.
19.3 The Bidder shall prepare and submit 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.
19.4 Each and every page of the Bid Form, including the Bill of Quantities, under
Section IX hereof, shall be signed by the duly authorized representative/s of the
Bidder. Failure to do so shall be a ground for the rejection of the bid.
19.5 Any interlineations, erasures, or overwriting shall be valid only if they are signed
or initialed by the duly authorized representative/s of the Bidder.
20.2. Each copy of the first and second envelopes shall be similarly sealed duly
marking the inner envelopes as “COPY NO. ___ - TECHNICAL COMPONENT”
and “COPY NO. ___ – FINANCIAL COMPONENT” and the outer envelope as
“COPY NO. ___,” respectively. These envelopes containing the original and the
copies shall then be enclosed in one single envelope.
20.3. The original and the number of copies of the bid as indicated in the BDS shall be
typed or written in ink and shall be signed by the Bidder or its duly authorized
representative/s.
(b) bear the name and address of the Bidder in capital letters;
(d) bear the specific identification of this bidding process indicated in the ITB
Clause 1.2; and
(e) bear a warning “DO NOT OPEN BEFORE…” the date and time for the
opening of bids, in accordance with ITB Clause 21.
20.5. Bid envelopes that are not properly sealed and marked, as required in the bidding
documents, shall not be rejected, but the Bidder or its duly authorized
representative shall acknowledge such condition of the bid as submitted. The
BAC or the Procuring Entity shall assume no responsibility for the misplacement
of the contents of the improperly sealed or marked bid, or for its premature
opening.
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D. Submission and Opening of Bids
23.2. 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. The Letter of Withdrawal must be executed by the authorized
representative of the Bidder identified in the Omnibus Sworn Statement, a copy of
which should be attached to the letter.
23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1 shall be
returned unopened to the Bidders. A Bidder, who has acquired the bidding
documents 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.
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.
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24.2. Unless otherwise specified in the BDS, the BAC shall open the first bid envelopes
and determine each Bidder’s compliance with the documents prescribed in ITB
Clause 12, 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”.
24.3. 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 13.2, 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.
24.4. 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.
24.5. All members of the BAC who are present during bid opening shall initial every
page of the original copies of all bids received and opened.
24.6. In the case of an eligible foreign bidder as described in ITB Clause 5, the
following Class “A” Documents may be substituted with the appropriate
equivalent documents, if any, issued by the country of the foreign bidder
concerned, which shall likewise be uploaded and maintained in the PhilGEPS in
accordance with Section 8.5.2 of the IRR.:
24.7. Each partner of a joint venture agreement shall likewise submit the document
required in ITB Clause 12.1(a)(i). Submission of documents required under ITB
Clauses 12.1(a)(ii) to 12.1(a)(iv) by any of the joint venture partners constitutes
compliance.
24.8. The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid price
(per lot, if applicable, and/or including discount, if any), bid security, findings of
preliminary examination, and whether there is a withdrawal or modification; and
(b) attendance sheet. The BAC members shall sign the abstract of bids as read.
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24.8. The Bidders or their duly authorized representatives may attend the opening of
bids. The BAC shall ensure the integrity, security, and confidentiality of all
submitted bids. The Abstract of Bids as read and the minutes of the Bid Opening
shall be made available to the public upon written request and payment of a
specified fee to recover cost of materials.
24.9 To ensure transparency and accurate representation of the bid submission, the
BAC Secretariat shall notify in writing all Bidders whose bids it has received
through its PhilGEPS-registered physical address or official e-mail address. The
notice shall be issued within seven (7) calendar days from the date of the bid
opening.
25.2. 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.
(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.
27.3. 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:
(a) Completeness of the bid. Unless the BDS 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 zero (0) or a
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dash (-) for the said item would mean that it is being offered for free to the
Procuring Entity, except those required by law or regulations to be
provided for; and
27.4. 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.
27.5. The Procuring Entity’s evaluation of bids shall be based on the bid price quoted in
the Bid Form, which includes the Bill of Quantities.
27.6. 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.
27.7. If so indicated pursuant to ITB Clause 1.2. Bids are being invited for individual
lots or for any combination thereof, provided that all Bids and combinations of
Bids shall be received by the same deadline and opened and evaluated
simultaneously so as to determine the bid or combination of bids offering the
lowest calculated cost to the Procuring Entity. Bid prices quoted shall correspond
to all of the requirements specified for each lot. Bid Security as required by ITB
Clause 18 shall be submitted for each contract (lot) separately. The basis for
evaluation of lots is specified in BDS Clause 27.3.
28.2. Within a non-extendible period of five (5) calendar days from receipt by the
Bidder of the notice from the BAC that it submitted the Lowest Calculated Bid,
the Bidder shall submit its latest income and business tax returns filed and paid
through the BIR Electronic Filing and Payment System (eFPS) and other
appropriate licenses and permits required by law and stated in the BDS.
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appropriate, using a non-discretionary “pass/fail” criterion, which shall be
completed within a period of twelve (12) calendar days.
28.4. 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 LCRB, and
recommend to the HoPE 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.
28.5. 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, with a
fresh period 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 LCRB is determined for
recommendation of contract award.
28.6. Within a period not exceeding fifteen (15) calendar days from the determination
by the BAC of the LCRB and the recommendation to award the contract, the
HoPE or his duly authorized representative shall approve or disapprove the said
recommendation.
28.7. In the event of disapproval, which shall be based on valid, reasonable, and
justifiable grounds as provided for under Section 41 of the IRR of RA 9184, the
HoPE shall notify the BAC and the Bidder in writing of such decision and the
grounds for it. When applicable, the BAC shall conduct a post-qualification of the
Bidder with the next Lowest Calculated Bid. A request for reconsideration may be
filed by the Bidder with the HoPE in accordance with Section 37.1.3 of the IRR
of RA 9184.
29.2. 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:
(b) If the Procuring Entity’s BAC is found to have failed in following the
prescribed bidding procedures; or
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(c) For any justifiable and reasonable ground where the award of the contract
will not redound to the benefit of the GOP as follows:
(iii) If the source of funds for the project has been withheld or reduced
through no fault of the Procuring Entity.
29.3. In addition, the Procuring Entity may likewise declare a failure of bidding when:
(c) All bids fail to comply with all the bid requirements, fail post-
qualification; or
(d) The Bidder with the LCRB refuses, without justifiable cause, to accept the
award of contract, and no award is made in accordance with Section 40 of
the IRR of RA 9184.
F. Award of Contract
30.2. 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 duly received by the Bidder or its representative personally or by
registered mail or electronically, receipt of which must be confirmed in writing
within two (2) days by the Bidder with the LCRB and submitted personally or
sent by registered mail or electronically to the Procuring Entity.
30.3. 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 ten (10) calendar days
from receipt of the Notice of Award:
(ii) Valid PCAB license and registration for the type and cost of the
contract to be bid for foreign bidders when the Treaty or
International or Executive Agreement expressly allows submission
of the PCAB license and registration for the type and cost of the
contract to be bid as a pre-condition to the Award;
(b) Posting of the performance security in accordance with ITB Clause 32;
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(d) Approval by higher authority, if required, as provided in Section 37.3 of
the IRR of RA 9184.
31.2. 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.
31.3. 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.
(c) Winning Bidder’s bid, including the Technical and Financial Proposals,
and all other documents/statements submitted (e.g., Bidder’s response to
request for clarifications on the bid), including corrections to the bid, if
any, resulting from the Procuring Entity’s bid evaluation;
(f) Other contract documents that may be required by existing laws and/or
specified in the BDS.
32.2. The Performance Security shall be denominated in Philippine Pesos and posted in
favor of the Procuring Entity in an amount not less than the percentage of the total
contract price in accordance with the following schedule:
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authorized to issue such
financial instrument.
32.3. 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 have a fresh period to
initiate and complete the post qualification of the second Lowest Calculated Bid.
The procedure shall be repeated until LCRB is identified and selected for
recommendation of 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, if necessary.
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Section III. Bid Data Sheet
ITB Clause
1.1 The Procuring Entity is Bataan Peninsula State University.
5.4(b) For this purpose, similar contracts shall refer to contracts which have the
same major categories of work such as the design or construction, or design
and construction of a road network with street lighting.
9.1 The Procuring Entity will hold a pre-bid conference for this Project on
October 23, 2019, 9:00 am at the Board Room, 2nd Floor, Administration
Building, BPSU Main Campus, Capitol Compound, City of Balanga,
Bataan.
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12.1 No further instructions.
12.1(b)(ii.2) The minimum work experience requirements for key personnel are the
following:
a. Design Group
b. Construction Group
Any bid with a financial component exceeding this amount shall not be
accepted.
14.2 No further instructions.
17.1 Bids will be valid 120 calendar days from date of opening of bids.
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18.1 The bid security shall be in the form of a Bid Securing Declaration or any of
the following forms and amounts:
1. The amount of not less than Php 300,000.00 (2% of ABC), if bid security
is in cash, cashier’s/manager’s check, bank draft/guarantee or
irrevocable letter of credit;
2. The amount of not less than Php 750,000.00 (5% of ABC) if bid security
is in Surety Bond.
18.2 The bid security shall be valid 120 calendar days from date of opening of
bids.
20.3 Each Bidder shall submit one (1) original and three (3) copies of the first and
second components of its bid.
27.3 Partial bid is not allowed. The infrastructure project is packaged in a single
lot and the lot shall not be divided into sub-lots for the purpose of bidding,
evaluation, and contract award.
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Appropriate Registration Certificate: SEC (Corporations); DTI (Sole
Proprietorship/Partnership); CDA (Cooperative)
Valid and Current Mayors permit (in case of recently expired
Mayor’s/Business permit, expired Mayor’s/Business permit together
with official receipt of the renewal application)
Valid Tax Clearance Certificate
General Information Sheet
Note: Only tax returns filed and taxes paid through the BIR Electronic
Filing and Payment System (eFPS) shall be accepted.
Manpower schedule
PERT/CPM.
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Section IV. General Conditions of Contract
TABLE OF CONTENTS
1. DEFINITIONS
2. INTERPRETATION
3. GOVERNING LANGUAGE AND LAW
4. COMMUNICATIONS
5. POSSESSION OF SITE
6. THE CONTRACTOR’S OBLIGATIONS
7. PERFORMANCE SECURITY
8. SUBCONTRACTING
9. LIQUIDATED DAMAGES
10. SITE INVESTIGATION REPORTS
11. THE PROCURING ENTITY, LICENSES AND PERMITS
12. CONTRACTOR’S RISK AND WARRANTY SECURITY
13. LIABILITY OF THE CONTRACTOR
14. PROCURING ENTITY’S RISK
15. INSURANCE
16. TERMINATION FOR DEFAULT OF CONTRACTOR
17. TERMINATION FOR DEFAULT OF PROCURING ENTITY
18. TERMINATION FOR OTHER CAUSES
19. PROCEDURES FOR TERMINATION OF CONTRACTS
20. FORCE MAJEURE, RELEASE FROM PERFORMANCE
21. RESOLUTION OF DISPUTES
22. SUSPENSION OF LOAN, CREDIT, GRANT, OR APPROPRIATION
23. PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS
24. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY THE
PROCURING ENTITY’S REPRESENTATIVE
25. ACCELERATION AND DELAYS ORDERED BY THE PROCURING ENTITY’S
REPRESENTATIVE
26. EXTENSION OF THE INTENDED COMPLETION DATE
27. RIGHT TO VARY
28. CONTRACTORS RIGHT TO CLAIM
29. DAYWORKS
30. EARLY WARNING
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31. PROGRAM OF WORK
32. MANAGEMENT CONFERENCES
33. BILL OF QUANTITIES
34. INSTRUCTIONS, INSPECTIONS AND AUDITS
35. IDENTIFYING DEFECTS
36. COST OF REPAIRS
37. CORRECTION OF DEFECTS
38. UNCORRECTED DEFECTS
39. ADVANCE PAYMENT
40. PROGRESS PAYMENTS
41. PAYMENT CERTIFICATES
42. RETENTION
43. VARIATION ORDERS
44. CONTRACT COMPLETION
45. SUSPENSION OF WORK
46. PAYMENT ON TERMINATION
47. EXTENSION OF CONTRACT TIME
48. PRICE ADJUSTMENT
49. COMPLETION
50. TAKING OVER
51. OPERATING AND MAINTENANCE MANUALS
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1. 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 Effectively Date is the date of signing of the Contract. However,
the contractor shall commence execution of the Works on the Start Date as
defined in GCC Clause 1.28.
1.6 The Contract Price is the price stated in the Notice of Award and thereafter to be
paid by the Procuring Entity to the Contractor for the execution of the Works in
accordance with this Contract
1.7 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.
1.8 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.
1.9 The Contractor’s Bid is the signed offer or proposal submitted by the Contractor
to the Procuring Entity in response to the Bidding Documents.
1.11 Day works 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.
1.12 A Defect is any part of the Works not completed in accordance with the Contract.
1.13 The Defects Liability Certificate is the certificate issued by Procuring Entity’s
Representative upon correction of defects by the Contractor.
1.14 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.
1.15 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.
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1.17 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.
1.18 Materials are all supplies, including consumables, used by the Contractor for
incorporation in the Works.
1.19 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.
1.20 Permanent Works are 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.
1.21 Plant refers to the machinery, apparatus, and the like intended to form an integral
part of the Permanent Works.
1.22 The Procuring Entity is the party who employs the Contractor to carry out the
Works stated in the SCC.
1.23 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.
1.24 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.
1.25 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.
1.27 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.
1.28 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.
1.29 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.
1.30 Temporary Works are works designed, constructed, installed, and removed by
the Contractor that are needed for construction or installation of the Permanent
Works.
1.31 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
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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.
2. Interpretation
2.1. 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.
2.3. The documents forming this Contract shall be interpreted in the following order of
priority:
a) Contract Agreement;
c) Instructions to Bidders;
g) Specifications;
i) Drawings.
3.2. This Contract shall be interpreted in accordance with the laws of the Republic of
the Philippines.
4. Communications
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.
5. Possession of Site
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5.1. 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.
5.2. 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 contract time to address such delay shall
be in accordance with GCC Clause 47.
5.3. 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.
5.4. 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.
6.2. 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.
6.3. The Contractor shall be responsible for the safety of all activities on the Site.
6.4. The Contractor shall carry out all instructions of the Procuring Entity’s
Representative that comply with the applicable laws where the Site is located.
6.5. 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.
6.6. 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.
6.7. 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.
6.8. 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.
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6.9. 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.
7. Performance Security
7.1. 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 Contractor shall furnish the performance security in any of the forms
prescribed in ITB Clause 32.2.
7.2. 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.
7.3. The performance security shall remain valid until issuance by the Procuring
Entity of the Certificate of Final Acceptance.
7.4. 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
7.5. The Contractor shall post an additional performance security following the
amount and form specified in ITB Clause 32.2 to cover any 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.
7.6. 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.
7.7. 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
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an individual, firm, partnership, corporation, or association supplying the
Contractor with labor, materials and/or equipment for the performance of this
Contract.
8. Subcontracting
8.1. Unless otherwise indicated in the SCC, the Contractor cannot subcontract Works
more than the percentage specified in BDS Clause 8.1.
8.2. 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.
8.3. If subcontracting is allowed. The contractor may identify its subcontractor during
contract implementation stage. Subcontractors disclosed and identified during the
bidding may be changed during the implementation of this Contract. In either
case, 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 any Procuring Entity to be eligible, the
subcontracting of such portion of the Works shall be disallowed.
9. Liquidated Damages
9.1. 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’s
liabilities. Once the cumulative amount of liquidated damages reaches ten percent
(10%) of the amount of this Contract, the Procuring Entity may rescind or
terminate this Contract, without prejudice to other courses of action and remedies
available under the circumstances.
9.2. 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.
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and the public at large, as well as the Works, Equipment, installation, and the like
to be affected by his construction work.
12.2. 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 HoPE 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.
12.3. 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.
12.4. 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:
(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.
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12.5. 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.
12.6. 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:
12.7. 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.
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(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.
15. Insurance
15.1. The Contractor shall, under his name and at his own expense, obtain and
maintain, for the duration of this Contract, the following insurance coverage:
15.2. 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.
15.3. 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.
15.4. 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.
15.5. 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.
15.6. The Contractor shall immediately replace the insurance policy obtained as
required in this Contract, without need of the Procuring Entity’s demand, with a
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new policy issued by a new insurance company acceptable to the Procuring Entity
for any of the following grounds:
(v) Where reasonable grounds exist that the insurer may not be able,
fully and promptly, to fulfill its obligation under the insurance
policy.
(i) 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;
(ii) 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
(ii) 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;
(iii) does not execute the Works in accordance with this Contract or
persistently or flagrantly neglects to carry out its obligations under
this Contract;
16.2. All materials on the Site, Plant, Works, including Equipment purchased and
funded under the Contract 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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17. 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.
18.2. The Procuring Entity or the Contractor may terminate this Contract if the other
party causes a fundamental breach of this Contract.
18.3. 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;
(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;
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(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:
18.4. 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.
18.5. 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.
18.6. 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.
(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 HoPE 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;
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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 HoPE 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 HoPE shall issue an order terminating the
contract;
(d) The Procuring Entity may, at anytime before receipt of the Contractor’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 HoPE 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 HoPE may create a Contract Termination Review Committee (CTRC)
to assist him in the discharge of this function. All decisions recommended
by the CTRC shall be subject to the approval of the HoPE.
19.2. 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:
(a) 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”);
(b) 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:
(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;
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(iv) Deployment of committed equipment, facilities, support staff and
manpower; and
(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
20.3. 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.
20.4. 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;
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(c) any sum to which the Procuring Entity is entitled.
20.5. The net balance due shall be paid or repaid within a reasonable time period from
the time of the notice of termination.
21.2. 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.
21.3. 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.
(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.
23.2. 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.
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24.1. 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.
24.3. The Procuring Entity’s Representative’s approval shall not alter the Contractor’s
responsibility for design of the Temporary Works.
24.4. The Contractor shall obtain approval of third parties to the design of the
Temporary Works, when required by the Procuring Entity.
25.2. 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.
26.2. 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.
(c) in the absence of appropriate rates, the rates in this Contract shall be used
as the basis for valuation; or failing which
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(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 HoPE.
29. Dayworks
29.1. 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.
29.2. All work to be paid for as Day works 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.
29.3. The Contractor shall be paid for day works subject to obtaining signed day works
forms.
30.2. 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.
31.2. An update of the Program of Work shall 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.
31.3. 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.
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31.4. 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.
31.5. 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.
31.6. All Variations shall be included in updated Program of Work produced by the
Contractor.
32.2. 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.
33.2. 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.
33.3. 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 the necessary adjustments to allow for the changes
subject to applicable laws, rules, and regulations.
33.4. 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.
34.2. 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.
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34.3. 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.
37.2. 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.
37.3. The Contractor shall correct the defects which he notices himself before the end
of the Defects Liability Period.
37.4. 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.
38.2. 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.
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made in lump sum or, at the most two, installments according to a schedule
specified in the SCC.
39.2. 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.
39.3. 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.
39.4. The contractor may reduce his standby letter of credit or guarantee instrument by
the amounts refunded by the Monthly Certificates in the advance payment.
39.5. 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.
40.2. The Procuring Entity shall deduct the following from the certified gross amounts
to be paid to the contractor as progress payment:
(a) Cumulative value of the work previously certified and paid for.
40.3. 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.
40.4. 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.
40.5. 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.
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41.2. The Procuring Entity’s Representative shall check the Contractor’s monthly
statement and certify the amount to be paid to the Contractor.
(b) comprise the value of the quantities of the items in the Bill of Quantities
completed; and
41.4. 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.
42. Retention
42.1. 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 GCC Sub-
Clause 42.2.
42.2. 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.
42.3. 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.
42.4. 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.
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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.
43.2. A Change Order may be issued by the Procuring Entity to cover any
increase/decrease in quantities of original Work items in the contract.
43.3. 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.
43.4. 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 HoPE 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%).
43.5. 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:
(b) The HoPE or his duly authorized representative, upon receipt of the
proposed Change Order or Extra Work Order shall immediately instruct
the appropriate technical staff or office of the Procuring Entity to conduct
an on-the-spot investigation to verify the need for the Work to be
prosecuted and to review the proposed plan, and prices of the work
involved.
(c) The technical staff or appropriate office of the Procuring Entity shall
submit a report of their findings and recommendations, together with the
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supporting documents, to the Head of Procuring Entity or his duly
authorized representative for consideration.
(d) The HoPE or his duly authorized representative, acting upon the
recommendation of the technical staff or appropriate office, shall approve
the Change Order or Extra Work Order after being satisfied that the same
is justified, necessary, and in order.
(e) The timeframe for the processing of Variation Orders from the preparation
up to the approval by the Procuring Entity concerned shall not exceed
thirty (30) calendar days.
45.2. 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.
(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 that
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the documents are complete unless there are justifiable reasons thereof
which shall be communicated in writing to the Contractor.
45.3. 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
effectivity of the order suspending operation and the order to resume work shall
be allowed the Contractor by adjusting the contract time accordingly.
46.2. 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.
46.3. The net balance due shall be paid or repaid within twenty eight (28) days from the
notice of termination.
46.4. 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.
47.2. 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.
47.3. Extension of contract time may be granted only when the affected activities fall
within the critical path of the PERT/CPM network.
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47.4. 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.
47.5. 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 or non-execution of deed of sale or donation 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 HoPe. 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.
49. 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.
51.2. 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
GCC Clause
1.17 The Intended Completion Date is 240 calendar days from either the
date occurring seven (7) calendar days after upon receipt of the Notice
to Proceed (NTP) or the contractor’s notified intended date for
commencement of work, whichever occurs sooner.
NOTE: The contract duration shall be reckoned from the start date
and not from contract effectivity date.
1.22 The Procuring Entity is Bataan Peninsula State University located at
Capitol Compound, City of Balanga, Bataan.
1.23 The Procuring Entity’s Representative is:
b. Construction Group
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NOTE: The names of the Key Personnel and their designation shall be
filled out by winning contractor prior to contract signing.
7.4(c) No further instructions.
7.7 No further instructions.
8.1 No further instructions.
10 The site investigation reports are:
The date by which “as built” drawings are required is Seven (7) days
before issuance of the End-User’s Acceptance (Certificate of
Completion and a Final Acceptance).
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 Five
percent (5%) of the contract.
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Section VI. Specifications/ Terms of Reference
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.
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.
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
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
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drafting the Bidding Documents. They should not be included in the final Bidding
Documents.
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Section VII. Drawings
Insert here a list of Drawings. The actual Drawings, including site plans, should be attached
to this section or annexed in a separate folder.
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Section VIII. Bidding Forms
TABLE OF CONTENTS
Bid Form
Form of Contract Agreement
Omnibus Sworn Statement
Bid Securing Declaration
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Bid Form
Date: _______________________
IB1 No: _____________________
(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 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
(i) We understand that you are not bound to accept the Lowest Calculated Bid or any other Bid
that you may receive.
(j) We likewise certify/confirm that the undersigned, is the duly authorized representative
of the bidder, and granted full power and authority to do, execute and perform any
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and all acts necessary to participate, submit the bid, and to sign and execute the
ensuing contract for the [Name of Project] of the [Name of the Procuring Entity].
(k) We acknowledge that failure to sign each and every page of this Bid Form, including
the Bill of Quantities, shall be a ground for the rejection of our bid.
Name:
Signed:
Date: ___________
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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.
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 integral part of this Agreement, to wit:
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IN WITNESS whereof the parties thereto have caused this Agreement to be executed the
day and year first before written.
________________________________________________
_____________________________________________
[Addendum showing the corrections, if any, made during the Bid evaluation should be attached
with this agreement]
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Omnibus Sworn Statement
AFFIDAVIT
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:
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;
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: The owner or sole proprietor is 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;
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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
SUBSCRIBED AND SWORN to before me this ___ day of [month] [year] at [place of
execution], Philippines. Affiant/s is/are personally known to me and was/were identified by me
through competent evidence of identity as defined in the 2004 Rules on Notarial Practice (A.M.
No. 02-8-13-SC). Affiant/s exhibited to me his/her [insert type of government identification card
used], with his/her photograph and signature appearing thereon, with no. ________ and his/her
Community Tax Certificate No. _______ issued on ____ at ______.
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Doc. No. _____
Page No. _____
Book No. _____
Series of _____
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Bid-Securing Declaration
1. I/We understand that, according to your conditions, bids must be supported by a Bid
Security, which may be in the form of a Bid-Securing Declaration.
2. I/We accept that: (a) I/we will be automatically disqualified from bidding for any contract
with any procuring entity for a period of two (2) years upon receipt of your Blacklisting
Order; and, (b) I/we will pay the applicable fine provided under Section 6 of the Guidelines
on the Use of Bid Securing Declaration, within fifteen (15) days from receipt of written
demand by the procuring entity for the commission of acts resulting to the enforcement of the
bid securing declaration under Sections 23.1(b), 34.2, 40.1 and 69.1, except 69.1 (f), of the
IRR of RA 9184; without prejudice to other legal action the government may undertake.
3. I/We understand that this Bid-Securing Declaration shall cease to be valid on the following
circumstances:
a. Upon expiration of the bid validity period, or any extension thereof pursuant to your
request;
b. I am/we are declared ineligible or post-disqualified upon receipt of your notice to such
effect, and (i) I/we failed to timely file a request for reconsideration or (ii) I/we filed a
waiver to avail of said right;
c. I am/we are declared as the bidder with the Lowest Calculated Responsive Bid, and I/we
have furnished the performance security and signed the Contract.
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IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this ____ day of [month]
[year] at [place of execution].
Affiant
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BATAAN PENINSULA STATE UNIVERSITY
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