Melesa R.

Siman December 14, 2022

CIAP Board Resolution No. 1 Series 2005 is about adopting the Resolution No. 1
of the PDCB-POCB Joint Board, Series of 2004 which concerns the proclamation of a
policy to bolster the usage and acceptance of uniform general conditions of private and
public construction. Upon motion duly made and seconded, CIAP Documents 101 and
102 are, therefore, intended to apply in the following instances: where the parties had
failed to incorporate into their construction contract the general conditions of contract, in
which case, the appropriate CIAP Document shall apply. If the terms of contract agreed
upon are incomplete, or if certain provisions of the contract are ambiguous, reference
may be made to the appropriate document to explain the ambiguity. The CIAP Board
FURTHER RESOLVES to order the implementation of the aforementioned policy
effective immediately for CIAP Document 102 for private construction and upon the
amendment of CIAP Document 101 for public construction
An agreement was made and executed by PCA, PICE, SPAC, CONFILCO,
PCCI, CPMAP, UAP CREBA, PICA and CIAP, which the Memorandum of Agreement
provides for the prompt and complete dissemination and widest circulation of CIAP
Document 102 and all subsequent amendments. PCA, PICE, SPAC, COFILCO, PCCI,
CPMAP, UAP, CREBA, and PICA are required to monitor prompt and strict compliance
with this Memorandum respecting the use of the document in private construction
contracts.
In Resolution No. 15, Series of 2004, The House of Representatives approved
the proposed amendments to the Uniform General Conditions of Contract for Private
Construction (CIAP Document 102) in line with the Construction Industry Strategic Plan
for the 21st Century (CI21).
SECTION I
Article 1 contains the definition of terms such as the definition of ‘act of God or
force majeure’ which means, any event beyond the reasonable control of the owner or
the contractor, as may be, and which is unavoidable notwithstanding the reasonable
care of the party affected. Furthermore, Article 1 also includes the definition of
advertisement, agreement, change order, contract, contract documents which generally
include the special provisions or conditions, general conditions, drawings, and other bid
documents, written notice, laws, contractor, performance bond and etc.
 Article 2 is about the execution, correlation, meaning of terms and intent of
documents. Rules and agreement in case of discrepancy in the contract is also under in
this article.
Article 3 contains the drawings and specification. The Owner will furnish the
Contractor with three sets of Drawings and Specifications inclusive of the signed
Contract. Where figures are given, they are to be followed in preference to
measurements by scale. The Contractor shall not be entitled to an adjustment of his
Contract Price and Completion Time should his work be ordered re-done if such work
was made without prior notice.
Article 4 contains detail drawings and instructions. Details of the work described
below are subject to availability of additional detail drawings and instructions essential
to their proper interpretation and proper execution. All such additional drawings and
instructions should be regarded as having the same legal weight as those that originally
accompanied the Specifications.
Article 5 is the Shop Drawings which states that the Contractor is required to
prepare at his own expense and submit two copies of all shop or setting drawings,
templates, patterns and models. The Owner shall pass upon them making desired
corrections, if any. Shop drawings must include the name of project, the descriptive
names of equipment, materials, and classified item numbers, and the location at which
materials or equipment are to be installed. No work called for by the shop drawings shall
be executed by the contractor until the owner's approval is given. Unless specified to
the contrary, shop drawing approval by the owner shall be made within seven working
days of submission. The contractor has no responsibility for accuracy of such drawings
or for proper fitting and construction of work.
SECTION II
Article 6 is about Laws and Site Conditions. This article states that the contractor
is expected to comply with all laws in so far as they are binding upon or affect the
parties thereto, or the work. And the owner shall furnish the contractor with a geodetic
survey and sub-surface exploration which he may rely upon in the preparation of his bid.
Article 7 talks permits, taxes and laws. The contractor shall secure and pay all
construction permits and licenses necessary for the execution of the work or of any
temporary work. Wherever the law of the place where the project is located requires
sales, consumer, use, or other similar tax related or pertinent only to the construction of
the project, the contractor will pay such tax. The contractor shall provide and maintain
well-built batter boards at all corners. He shall establish benchmarks in not less than
two widely separated places. All other grade, lines, levels, and benchmarks necessary
for the prosecution of the work shall be established and maintained by the contractor.
SECTION III
 Section III is about Equipment and Material and Article 8 states that all materials
and equipment must adhere to all laws that are currently in effect or that may become
effective during the building phase. If the contractor doesn't follow this requirement, he
is responsible for paying all losses caused by any delays in the work. A constructive
change in the work must be acknowledged, and a corresponding contract price and
completion time adjustment must be provided, if any revision or amendment to such
laws is made during the construction period that impacts the cost or time of completion
of the contract.
Article 9 states that in order to establish standards of quality of the equipment,
the contractor may have referred to certain equipment by name and catalog number.
The owner will approve or disapprove the request for substitution of equipment in
writing. The contractor shall furnish the complete list of proposed substitutions
preferably prior to the signing of the contract with such engineering and catalog data as
the owner may require.
Article 10 is about materials, fixtures, appliances and fittings furnished by the
contractor. Contractors are required to submit samples of materials for approval by the
owner. Samples must be of adequate size to show quality, type, color, range, finish, and
texture of material. All costs of shipment, delivery, handling and testing of Contractor-
supplied samples are to be paid by the contractor. Materials, sheds, or storage
platforms affected by moisture shall be stored on platforms and protected from the
weather. All materials not conforming to the specifications shall be considered defective.
The contractor shall remove or replace defective materials when ordered to do so by the
owner. No materials, the defects of which have been subsequently corrected shall be
used until the owner has given approval.
Article 11 states that materials furnished by the owner shall be deemed
acceptable for the purpose intended. No further test shall be required unless the owner
directs otherwise and pays the cost of such test. The contractor shall be responsible for
material loss of or damage to any owner-provided material, equipment, fixture,
appliance or fitting.
Article 12 is about royalties and patents. The contractor shall pay all royalties and
license fees on all patented materials and processes furnished by the owner. He shall
defend all suits or claims corresponding thereto for infringement of any patent rights.
Article 13 states that the contractor is required to apply, install, connected,
erected, used, cleaned, and conditioned by the owner in accordance with
manufacturer's printed directions. Where reference is made to the manufacturer's
directions, the contractor shall submit the specified number of copies of such directions
to the owner.
SECTION IV
 Article 14 is about the use of premises. It states that the contractor shall confine
his apparatus, the storage of materials, and the operations of his workmen to limits
indicated by law or directions of the owner. The contractor shall enforce the owner's
safety instructions regarding signs, advertisements, fires and smoking. No part of the
structure will be loaded with weight that will endanger its safety.
Article 15 talks about the temporary structures and facilities. It states that the
contractor shall provide and maintain an adequate weathertight temporary office with
necessary basic facilities such as water, light, and telephone. Nobody shall be allowed
to sleep or cook within the building line of the project under construction. The sanitary
condition of the grounds in or about such structures at the project site shall at all times
be maintained in a manner satisfactory to the owner. Maintaining sanitary facilities for
personnel and laborers on the work properly secluded from public observation in such
manner and at such points as shall be approved by the owner. The contractor may erect
one painted sign, giving the names and addresses of the owner, the contractor, and
various sub-contractors.
SECTION V
Section V is about Protection of work and property. Article 16 states that the
contractor is to be responsible for the protection of the works, the owner's property, and
the equipment, materials, appliances and fixtures supplied or paid for by the owner. All
old materials of value found at the work site are to be carefully stored until final
acceptance of the Work. Damage to trees, plants, shrubs, streets, sidewalks, etc.,
resulting from fault or negligence of the contractor in connection with the execution of
the work shall be made good and/or replaced or repaired. The contractor shall be liable
for any damages which may result therefrom.
Article 17 states that the contractor will be liable for and pay for all damages to
adjacent and existing utilities occasioned by his act or neglect, or by that of his agents,
employees, or workmen. Prior to commencement of the works, the contractor shall
survey and ascertain the condition of any existing adjacent properties or buildings.
Article 18 states that in an emergency endangering life, the contractor, even
without special instruction or authorization from the owner, shall act, at his discretion, to
prevent or minimize such threatened loss or injury. Emergency work performed by a
contractor shall be treated as one performed under a change order unless it was
caused or brought about by his fault or negligence.
SECTION VI
Article 19 states that the contractor shall employ only competent and duly
qualified professionals, technical personnel, foremen, mechanics and workers to
supervise or execute the work. The contractor may remove from the site an employee
who is careless or incompetent or obstructs the progress of the work.
 Article 20 states that the contractor must use such methods and appliances as
will ensure the completion of the work of the required quality within the completion time.
The owner may order the contractor to increase their efficiency or improve their system
of operation. Failure to comply with the contract will result in the work being condemned
and removed from the property. Inspection by the owner shall be made, where
practicable, at the source of supply. If any work should be covered up without timely
notice to the owner, it must be uncovered for examination at the owner's expense. The
contractor shall furnish and install all necessary facilities, labor, and materials. Changes
in quantities or scope of work may be necessary to suit field conditions which cannot be
foreseen at the time of calling for bids. Work done by the contractor without timely
notice to the owner that an adjustment is required is at his own risk and expense. The
contractor may make such changes to the drawings and specifications as he may find
necessary. If sub-surface conditions require additional or different type of work, a
change order will be issued. The contractor will be entitled to 15% of the amount in the
change order for his overhead and profit.
Article 21 is about the time completion of work. It states notice to proceed, when
required where it shall be issued by the owner to the contractor only when the contract
so provides, the completion time; when shall the contractor complete the work in
accordance with the contract. It also includes the schedule of construction work, the
extension of time and delay in completion of work.
Article 22 talks about the payment, where it includes the Contractor shall, within
fifteen days from the receipt of notice to proceed, or from the commencement of work
submit a breakdown of work and corresponding value of the contract amount showing
the value assigned to each part of the work. This article also includes the requests for
payment where the contractor may submit periodically but not more than once each
month a request for payment for work. Furthermore, it also includes the authorized
deductions from value of completed work, the conditions relative to payments, the
owner’s action on requests for payment, payment of unpaid labor, sub-contractors and
suppliers, payments over 90 percent, other requirements before final payment such as
certificates of final building occupancy, certificate of final inspection of electrical,
telephone, sanitary and etc., the acceptance and final payment, corrections of work
before or after final payment and the release of retention.
SECTION VII
Under Section VII is the contractor-separate contractor-subcontractor relations.
Article 23 states that the owner may perform work outside of the contractor’s scope of
work or award separate contracts to other contractors.
Article 24 states that contractor agrees to allow other contractors reasonable
opportunity for introduction and storage of materials and the execution of their work.
The contractor shall do all cutting, fitting or patching of his work that may be required to
make its parts come together properly and fit it to receive or be received by work of
other contractors.
Article 25 states that no portion of the work or any specialty work may be sublet
or sub-contracted without the owner's consent. The contractor agrees that he is as fully
responsible to the owner for the acts and omissions of his sub-contractors and the
persons either directly or indirectly employed by them.
SECTION VIII
Section VIII talks about suspension of work and termination of contract. Article 26
states that the contractor may suspend work or terminate the contract upon fifteen (15)
days' written notice to the owner for any of the following reasons: If an order of any court
or other public authority caused the work to be stopped or suspended for an aggregate
period of ninety (90) days.
Article 27 states that the owner may suspend the work or any portion thereof for
a period of not more than fifteen (15) days. The contractor will be allowed an adjustment
in the contract price to include demobilization and remobilization costs and/or stand-by
time as applicable. Failure of the contractor to carry out the Works in accordance with
the contract. The necessity for adjusting the drawings to suit site conditions found
during construction, or in case of a change in drawings and specifications. Force
majeure or fortuitous event; peace and order problems; or any condition similar to the
above.
Article 28 states that the owner may terminate the contract, without prior notice to
the contractor, upon the occurrence of any of the following events: If contractor is
adjudged bankrupt or insolvent; if it files a petition for suspension of payments, or to
reorganize under the bankruptcy or similar laws.
Article 29 is the owner’s right to proceed with the work after reduction in
contractor’s scope of work; partial takeover from contractor. The owner has the right to
carry out the work if the contractor fails to supply sufficient workmen or suitable
materials, fails to make prompt payments, fails within a mutually agreed time, fails
despite repeated remedial work to rectify the defects and fails to perform the work in
accordance with the contract.
SECTION IX
Under Section IX is the responsibilities and liabilities of contractor and owner. In
Article 30 its states that the contractor shall take all necessary precautions for the safety
of employees and workmen on the work, and comply with all laws to prevent injury to
persons. contractor shall erect and properly maintain at all times, such barriers, shoring,
supports, braces, lights, danger signs and necessary safeguards, as will protect
workmen and the public. The contractor shall indemnify and save harmless the owner
from and against all losses and all claims, demands, payments, suits, actions,
recoveries, and judgement of every nature and description brought or recovered against
him. The owner may have the right to undertake reasonable safety and protection
measures in case of Contractor's default.
Article 31 talks about the contractor’s insurance and bonds. The contractor shall
ensure that such insurance policy is effective during the execution of work and the
premium of this insurance policy shall be paid by the contractor and without cost to
those covered by the policy. This article also includes the contractor’s fire insurance,
performance and payment bonds, guarantee bond, guarantee-warranty and the
mandatory conditions of bonds.
Article 32 is about the owner’s responsibilities and liabilities. It states that an
advance payment in an amount to be mutually agreed upon shall be paid by the owner
to the contractor. The contractor shall use the advance payment for mobilization,
purchase of materials, and the like for the project. This shall be recouped pro rata in the
progress billings.
Article 33 is about the liens, disputes and arbitration where its states that the
owner may recover against the contractor and/or the surety, on the latter’s indemnity
bond, any amount paid by the owner to discharge such liens, including cost incurred
incident thereto and a reasonable amount of attorney’s fees. This also includes the
assignment of the contractor, subcontracting, disputes and settlement of disputes.
SECTION X
Section X talks about the owner’s representative. Article 34 states that the
owner's representative has the full authority to act for and on behalf of the owner in all
matters which under the contract the owner gives his consent, approval or decision. The
owner shall give the contractor at the time of the notice to proceed or any time
thereafter the notice of appointment.
SECTION XI
Under Section XI is the schedule of time limits. It states that the contractor shall
perform his work subject to certain Time Limits. This indexed section, as based on the
entire General Conditions, is provided for in order to facilitate the execution of his work.