Construction of of Barangay Health & Wellness Station, Barangay Carlatan

PHILIPPINE BIDDING DOCUMENTS
(As Harmonized with Development Partners)
Construction of of Barangay
Health & Wellness Station,
Barangay Carlatan
Government of the Republic of the Philippines
Fourth Edition
December 2010
Preface
These Philippine Bidding Documents (PBDs) for the procurement of
Infrastructure Projects (hereinafter referred to also as the “Works”) through
Competitive Bidding have been prepared by the Government of the
Philippines (GOP) for use by all branches, agencies, departments, bureaus,
offices, or instrumentalities of the Government, including government-owned
and/or -controlled corporations (GOCCs), government financial institutions
(GFIs), state universities and colleges (SUCs), and local government units
(LGUs). The procedures and practices presented in this document have
been developed through broad experience, and are for mandatory1 use in
projects that are financed in whole or in part by the GOP or any foreign
government/foreign or international financing institution in accordance with
the provisions of the Implementing Rules and Regulations (IRR) of Republic
Act No. 9184 (R. A. 9184).
This PBDs is intended as a model for admeasurements (unit prices or

unit rates in a bill of quantities) types of contract, which are the most
common in Works contracting.
The Bidding Documents shall clearly and adequately define, among

others: (a) the objectives, scope, and expected outputs and/or results of the
proposed contract; (b) the eligibility requirements of bidders; (c) the
expected contract duration; and (d) the obligations, duties, and/or functions
of the winning bidder.
In order to simplify the preparation of the Bidding Documents for each

procurement, the PBDs groups the provisions that are intended to be used
unchanged in Section II. Instructions to Bidders (ITB) and in Section IV. General
Conditions of Contract (GCC). Data and provisions specific to each
procurement and contract should be included in Section III. Bid Data Sheet
(BDS); Section V. Special Conditions of Contract (SCC); Section VI.
Specifications; Section VII. Drawings; Section VIII. Bill of Quantities; and
Section X. Foreign-Assisted Projects. The forms to be used are provided in
Section IX. Bidding Forms.
Care should be taken to check the relevance of the provisions of the

Bidding Documents against the requirements of the specific Works to be
procured. In addition, each section is prepared with notes intended only as
information for the Procuring Entity or the person drafting the Bidding
Documents. They shall not be included in the final documents, except for the
notes introducing Section IX. Bidding Forms, where the information is useful for
1 Unless the Treaty or International or Executive Agreement expressly provides use of foreign
government/foreign or international financing institution procurement guidelines.
2
the Bidder. The following general directions should be observed when using
the documents:
(a) All the documents listed in the Table of Contents are normally
required for the procurement of Infrastructure Project. However,
they should be adapted as necessary to the circumstances of
the particular Project.
(b) Specific details, such as the “name of the Procuring Entity” and
“address for proposal submission,” should be furnished in the BDS
and SCC. The final documents should contain neither blank
spaces nor options.
(c) This Preface and the footnotes or notes in italics included in the
Invitation to Bid, BDS, SCC, Specifications, Drawings, and Bill of
Quantities are not part of the text of the final document,
although they contain instructions that the Procuring Entity should
strictly follow. The Bidding Documents should contain no
footnotes except Section IX. Bidding Forms since these provide
important guidance to Bidders.
(d) The cover should be modified as required to identify the Bidding

Documents as to the names of the Project, Contract, and
Procuring Entity, in addition to date of issue.
(e) If modifications must be made to bidding procedures, they can

be presented in the BDS. Modifications for specific Project or
Contract details should be provided in the SCC as amendments
to the Conditions of Contract. For easy completion, whenever
reference has to be made to specific clauses in the BDS or SCC
these terms shall be printed in bold type face on Section II.
Instructions to Bidders, and Section IV. General Conditions of
Contract, respectively.
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TABLE OF CONTENTS
SECTION I. INVITATION TO BID ..................................................................... 5

SECTION II. INSTRUCTIONS TO BIDDERS .......................................................... 8
SECTION III. BID DATA SHEET .................................................................... 40
SECTION IV. GENERAL CONDITIONS OF CONTRACT ...................................... 45
SECTION V. SPECIAL CONDITIONS OF CONTRACT ......................................... 84
SECTION VI. SPECIFICATIONS .................................................................... 88
SECTION VII. DRAWINGS .......................................................................... 90
SECTION VIII. BILL OF QUANTITIES .............................................................. 91
SECTION IX. BIDDING FORMS .................................................................... 93
SECTION X. FOREIGN-ASSISTED PROJECTS ................................................. 103
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Section I. Invitation to Bid
Notes on the Invitation to Bid
The Invitation to Bid provides information that enables potential Bidders to
decide whether to participate in the procurement at hand. The Invitation
to Bid shall be:
(a) Advertised at least once in a newspaper of general nationwide
circulation which has been regularly published for at least two (2)
years before the date of issue of the advertisement, subject to
Sections 21.2.2 of the IRR of R.A. 9184;
(b) Posted continuously in the Philippine Government Electronic
Procurement System (PhilGEPS) website and the website of the
Procuring Entity concerned, if available, for a minimum period of
seven (7) calendar days starting on the date of advertisement; and
(c) Posted at any conspicuous place reserved for this purpose in the
premises of the Procuring Entity concerned for a minimum period of
seven (7) calendar days, as certified by the head of the Bids and
Awards Committee (BAC) Secretariat of the Procuring Entity
concerned.
Apart from the essential items listed in the Bidding Documents, the
Invitation to Bid should also indicate the following:
(a) The date of availability of the Bidding Documents, which shall be
from the time the Invitation to Bid is first advertised/posted until the
deadline for the submission and receipt of bids.
(b) The place where the Bidding Documents may be purchased or the
website where it may be downloaded.
(c) The deadline for the submission and receipt of bids from the last day
of posting of the Invitation to Bid; and
(d) Any important bid evaluation criteria.
The Invitation to Bid should be incorporated into the Bidding Documents.
The information contained in the Invitation to Bid must conform to the
Bidding Documents and in particular to the relevant information in the BDS.
For foreign-assisted projects, the Invitation to Bid to be used is provided in
Section X-Foreign-Assisted Projects.
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Republic of the Philippines
CITY GOVERNMENT OF SAN FERNANDO
City Hall Building, F. Ortega Highway
Tel. No. (072)8886901/Fax No. (072)8886907
Website: www.sanfernandocity.gov.ph
Email: [email protected]
Invitation to Bid
CONSTRUCTION OF BARANGAY HEALTH STATION

Barangay Carlatan, City of San Fernando
1. The City Government of San Fernando through the City Fund intends to apply
the sum of Nine Hundred Ninety Nine Thousand Eight Hundred Fifty Four Pesos &
04/100 Pesos (PhP999,854.04) being the Approved Budget for the Contract
(ABC) to payments under the contract for Construction of Barangay Health
Station, Barangay Carlatan, City of San Fernando. Bids received in excess of
the ABC shall be automatically rejected at bid opening.
2. The City Government of San Fernando now invites bids for Upgrading of
Barangay Health Station, Barangay Carlatan, City of San Fernando.
Completion of the Works is required is 66 working days. Bidders should have
completed, within ten (10) years from the date of submission and receipt of
bids, a contract similar to the Project. The description of an eligible bidder is
contained in the Bidding Documents, particularly, in Section II. Instructions to
Bidders.
3. Bidding will be conducted through open competitive bidding procedures using

non-discretionary pass/fail criterion as specified in the Implementing Rules and
Regulations (IRR) of Republic Act 9184 (RA 9184), otherwise known as the
“Government Procurement Reform Act”.
Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or

organizations with at least seventy five percent (75%) interest or outstanding
capital stock belonging to citizens of the Philippines.
4. A complete set of Bidding Documents may be purchased by Bidders to the

BAC Secretariat, Office of the City Planning and Development Coordinator, 2nd
Floor, North Wing, City Hall Building, City of San Fernando, La Union upon
payment of a nonrefundable fee of One Thousand Pesos Only (PhP1,000.00).
The Bidding Documents shall be received personally by the bidder or his
authorized representative from 8:00 AM to 5:00 PM on Mondays to Fridays
except Holidays.
It may also be downloaded from the website of the Philippine Government

Electronic Procurement System (PhilGEPS) provided that bidders shall pay the
fee for the Bidding Documents not later that the submission of their bids.
5. Bids must be delivered on or before March 31, 2015 at 2:00 pm at Mayor’s
Conference Room. All bids must be accompanied by a bid security in any of
the acceptable forms and in the amount stated in ITB Clause 18.
Bids will be opened in the presence of the bidders’ representatives who choose
to attend at the Mayor’s Conference Room. Late bids shall not be accepted.
6. The City Government of San Fernando reserves the right to accept or reject
any bid, to annul the bidding process, and to reject all bids at any time prior
to contract award, without thereby incurring any liability to the affected
bidder or bidders.
7. For further information, please refer to:
ANNJANETTE E. DIMACULANGAN
City Administrator, BAC Chairman
2nd Floor, City Hall Building
City of San Fernando, 2005 La Union
Telephone: (+63) 72 888-6900 to 05
Facsimile: (+63) 72 888-6907
Email: [email protected]
______________________________
Signature of the BAC Chairman
Or Authorized Representative of the
BAC Chairman
Section II. Instructions to Bidders
Notes on the Instructions to Bidders
This Section of the Bidding Documents provides the information necessary
for bidders to prepare responsive Bids, in accordance with the
requirements of the Procuring Entity. It also provides information on the
eligibility check, Bid submission, opening, and evaluation, and on the
award of contract.
This Section contains provisions that are to be used unchanged. Section III.
Bid Data Sheet consists of provisions that supplement, amend, or specify in
detail information or requirements included in this Section and which are
specific to each procurement.
Matters governing the performance of the Contractor, payments under the

contract, or matters affecting the risks, rights, and obligations of the parties
under the contract are not normally included in this section, but rather
under Section IV. General Conditions of Contract (GCC), and/or Section V.
Special Conditions of Contract (SCC). If duplication of a subject is
inevitable in the other sections of the document prepared by the Procuring
Entity, care must be exercised to avoid contradictions between clauses
dealing with the same matter.
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TABLE OF CONTENTS
A. GENERAL .......................................................................................... 11
1. Scope of Bid ................................................................................................11
2. Source of Funds ..........................................................................................11
3. Corrupt, Fraudulent, Collusive, and Coercive Practices ......................11
4. Conflict of Interest ......................................................................................13
5. Eligible Bidders ............................................................................................14
6. Bidder’s Responsibilities .............................................................................16
7. Origin of GOODS and Services ................................................................18
8. Subcontracts ...............................................................................................18
B. CONTENTS OF BIDDING DOCUMENTS ..................................................... 19
9. Pre-Bid Conference....................................................................................19
10. Clarification and Amendment of Bidding Documents ........................19
C. PREPARATION OF BIDS ......................................................................... 20
11. Language of Bids........................................................................................20
12. Documents Comprising the Bid: Eligibility and Technical
Components ...............................................................................................20
13. Documents Comprising the Bid: Financial Component ......................23
14. Alternative Bids ...........................................................................................24
15. Bid Prices ......................................................................................................24
16. Bid Currencies .............................................................................................25
17. Bid Validity ...................................................................................................25
18. Bid Security ..................................................................................................26
19. Format and Signing of Bids .......................................................................28
20. Sealing and Marking of Bids .....................................................................29
D. SUBMISSION AND OPENING OF BIDS ...................................................... 30
21. Deadline for Submission of Bids ................................................................30
22. Late Bids .......................................................................................................30
23. Modification and Withdrawal of Bids ......................................................30
24. Opening and Preliminary Examination of Bids .......................................31
E. EVALUATION AND COMPARISON OF BIDS ............................................... 32
25. Process to be Confidential ........................................................................32
26. Clarification of Bids .....................................................................................33
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27. Detailed Evaluation and Comparison of Bids ........................................33
28. Post Qualification .......................................................................................34
29. Reservation Clause ....................................................................................35
F. AWARD OF CONTRACT ........................................................................ 37
30. Contract Award .........................................................................................37
31. Signing of the Contract .............................................................................37
32. Performance Security ................................................................................38
33. Notice to Proceed......................................................................................39
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A. General
1. Scope of Bid
1.1. The Procuring Entity as defined in the BDS, invites bids for the
construction of Works, as described in Section VI. Specifications.
The name and identification number of the Contract is provided
in the BDS.
1.2. The successful bidder will be expected to complete the Works by

the intended completion date specified in SCC Clause 1.16.
2. Source of Funds
The Procuring Entity has a budget or has applied for 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.
3. Corrupt, Fraudulent, Collusive, and Coercive Practices

3.1. Unless otherwise specified in the BDS, the Procuring Entity, as well
as bidders and contractors, shall observe the highest standard of
ethics during the procurement and execution of the contract. In
pursuance of this policy, the Funding Source:
(a) defines, for purposes of this provision, the terms set forth
below as follows:
(i) "corrupt practice" means behavior on the part of

officials in the public or private sectors by which they
improperly and unlawfully enrich themselves, others,
or induce others to do so, by misusing the position in
which they are placed, and includes the offering,
giving, receiving, or soliciting of anything of value to
influence the action of any such official in the
procurement process or in contract execution;
entering, on behalf of the Procuring Entity, into any
contract or transaction manifestly and grossly
disadvantageous to the same, whether or not the
public officer profited or will profit thereby, and
similar acts as provided in Republic Act 3019;
(ii) "fraudulent practice" means a misrepresentation of

facts in order to influence a procurement process or
the execution of a contract to the detriment of the
Procuring Entity, and includes collusive practices
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among Bidders (prior to or after Bid submission)
designed to establish bid prices at artificial, non-
competitive levels and to deprive the Procuring
Entity of the benefits of free and open competition;
(iii) “collusive practices” means a scheme or

arrangement between two or more bidders, with or
without the knowledge of the Procuring Entity,
designed to establish bid prices at artificial, non-
competitive levels; and
(iv) “coercive practices” means harming or threatening

to harm, directly or indirectly, persons, or their
property to influence their participation in a
procurement process, or affect the execution of a
contract;
(v) “obstructive practice” is
(aa) deliberately destroying, falsifying, altering or

concealing of evidence material to an
administrative proceedings or investigation or
making false statements to investigators in
order to materially impede an administrative
proceedings or investigation of the Procuring
Entity or any foreign government/foreign or
international financing institution into
allegations of a corrupt, fraudulent, coercive
or collusive practice; and/or threatening,
harassing or intimidating any party to prevent
it from disclosing its knowledge of matters
relevant to the administrative proceedings or
investigation or from pursuing such
proceedings or investigation; or
(bb) acts intended to materially impede the

exercise of the inspection and audit rights of
the Procuring Entity or any foreign
government/foreign or international financing
institution herein.
(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
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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:
(a) A Bidder has controlling shareholders in common with

another Bidder;
(b) A Bidder receives or has received any direct or indirect

subsidy from any other Bidder;
(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. This will include a firm or an
organization who lends, or temporarily seconds, its
personnel to firms or organizations which are engaged in
consulting services for the preparation related to
procurement for or implementation of the project if the
personnel would be involved in any capacity on the same
project;
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(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;
(f) A Bidder who participated as a consultant in the

preparation of the design or technical specifications of the
goods and related services that are the subject of the bid;
or
(g) A Bidder who lends, or temporary seconds, its personnel to

firms or organizations which are engaged in consulting
services for the preparation related to procurement for or
implementation of the project, if the personnel would be
involved in any capacity on the same project.
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,
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:
(a) If the Bidder is an individual or a sole proprietorship, to the

Bidder himself;
(b) If the Bidder is a partnership, to all its officers and members;
(c) If the Bidder is a corporation, to all its officers, directors,

and controlling stockholders; and
(d) If the Bidder is a joint venture (JV), the provisions of items

(a), (b), or (c) 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:
(a) Duly licensed Filipino citizens/sole proprietorships;
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(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;
(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;
(d) Cooperatives 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;
and
(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.
5.3. Government Corporate Entities may be eligible to participate

only if they can establish that they (a) are legally and financially
autonomous, (b) operate under commercial law, and (c) are not
dependent agencies of the GOP or the Procuring Entity.
5.4. (a) Unless otherwise provided in the BDS, the Bidder must have
completed, within ten (10) years from the submission of bids, a
single contract that is similar to this Project, equivalent to at least
fifty percent (50%) of the ABC adjusted to current prices using the
National Statistics Office consumer price index.
15
(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, and completed within the period stated in
the Invitation to Bid and ITB Clause 12.1(a)(iii).
5.5. The Bidder must submit a computation of its Net Financial

Contracting Capacity (NFCC) or a Commitment from a Universal
or Commercial bank to extend a credit line in its favor if
awarded the contract for this project (CLC).
The NFCC, computed using the following formula, must be at

least equal to the ABC to be bid:
NFCC = [(Current assets minus current liabilities) (K)] 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.
Where:
K = 10 for a contract duration of one year or less, 15 for a

contract duration of more than one year up to two years, and
20 for a contract duration of more than two years.
The CLC must be at least equal to ten percent (10%) of the ABC
for this Project. If issued by a foreign bank, it shall be confirmed or
authenticated by a Universal or Commercial Bank. In the case of
local government units (LGUs), the Bidder may also submit CLC
from other banks certified by the Bangko Sentral ng Pilipinas (BSP)
as authorized to issue such financial instrument.
6. Bidder’s Responsibilities
6.1. The Bidder or its duly authorized representative shall submit a
sworn statement in the form prescribed in Section IX. Bidding
Forms as required in ITB Clause 12.1(b)(iii).
6.2. The Bidder is responsible for the following:
(a) Having taken steps to carefully examine all of the Bidding

Documents;
(b) Having acknowledged all conditions, local or otherwise,

affecting the implementation of the contract;
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(c) Having made an estimate of the facilities available and
needed for the contract to be bid, if any;
(d) Having complied with its responsibility to inquire or secure

Supplemental/Bid Bulletin/s as provided under ITB Clause
10.3.
(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;
(f) Ensuring that each of the documents submitted in

satisfaction of the bidding requirements is an authentic
copy of the original, complete, and all statements and
information provided therein are true and correct;
(g) Authorizing the Head of the Procuring Entity 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 and/or to represent the Bidder in the bidding,
with the duly notarized Secretary’s Certificate attesting to
such fact, if the Bidder is a corporation, partnership,
cooperative, or joint venture;
(i) Complying with the disclosure provision under Section 47 of

the Act in relation to other provisions of Republic Act 3019;
and
(j) Complying with existing labor laws and standards, if

applicable.
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,
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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.
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. Bidders should note that the Procuring Entity will only accept bids
only from those that have paid the nonrefundable fee for the
Bidding Documents at the office indicated in the Invitation to
Bid.
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
18
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. Contents of Bidding Documents
9. Pre-Bid Conference
9.1. (a) If so specified in the BDS, a pre-bid conference shall be held
at the venue and on the date indicated therein, to clarify and
address the Bidders’ questions on the technical and financial
components of this Project.
(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. 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.
9.3. Any statement made at the pre-bid conference shall not modify
the terms of the bidding documents unless such statement is
specifically identified in writing as an amendment thereto and
issued as a Supplemental/Bid Bulletin.
10. Clarification and Amendment of Bidding Documents

10.1. Bidders who have purchased the Bidding Documents may
request for clarification(s) on any part of the Bidding Documents
or for an interpretation. Such a request must be in writing and
submitted to the Procuring Entity at the address indicated in the
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BDS at least ten (10) calendar days before the deadline set for
the submission and receipt of Bids.
10.2. Supplemental/Bid Bulletins may 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.
10.3. Any Supplemental/Bid Bulletin issued by the BAC shall also be

posted on the Philippine Government Electronic Procurement
System (PhilGEPS) and the website of the Procuring Entity
concerned, if available. Unless, otherwise provided in the BDS, it
shall be the responsibility of all Bidders who secure 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
11. Language of Bids

The Bid, as well as all correspondence and documents relating to the
Bid exchanged by the Bidder and the Procuring Entity, shall be written
in English. Supporting documents and printed literature furnished by
the Bidder may be in another language provided they are
accompanied by an accurate translation in English certified by the
appropriate embassy or consulate in the Philippines, in which case the
English translation shall govern, for purposes of interpretation of the Bid.
12. Documents Comprising the Bid: Eligibility and Technical

Components
12.1. Unless otherwise indicated in the BDS, the first envelope shall
contain the following eligibility and technical documents:
(a) Eligibility Documents –
Class "A" Documents:
(i) Registration certificate from the Securities and

Exchange Commission (SEC), Department of Trade
and Industry (DTI) for sole proprietorship, or
Cooperative Development Authority (CDA) for
20
cooperatives, or any proof of such registration as
stated in the BDS;
(ii) Mayor’s permit issued by the city or municipality

where the principal place of business of the
prospective bidder is located;
(iii) Statement of all its ongoing and completed

government and private contracts within ten (10)
years from the submission of bids, including
contracts awarded but not yet started, if any. The
statement shall include, for each contract, the
following:
(iii.1) name of the contract;
(iii.2) date of the contract;
(iii.3) contract duration;
(iii.4) owner’s name and address;
(iii.5) nature of work;
(iii.6) contractor’s role (whether sole contractor,

subcontractor, or partner in a JV) and
percentage of participation;
(iii.7) total contract value at award;
(iii.8) date of completion or estimated completion

time;
(iii.9) total contract value at completion, if

applicable;
(iii.10) percentages of planned and actual

accomplishments, if applicable;
(iii.11) value of outstanding works, if applicable;
(iii.12) the statement shall be supported by the

notices of award and/or notices to proceed
issued by the owners; and
(iii.13) the statement shall be supported by the

Constructors Performance Evaluation System
(CPES) rating sheets, and/or certificates of
completion and owner’s acceptance, if
applicable;
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(iv) Unless otherwise provided in the BDS, valid Philippine
Contractors Accreditation Board (PCAB) license and
registration for the type and cost of the contract for
this Project;
(v) Audited financial statements, showing, among

others, the prospective total and current assets and
liabilities, stamped “received” by the BIR or its duly
accredited and authorized institutions, for the
preceding calendar year which should not be
earlier than two (2) years from the date of bid
submission;
(vi) NFCC computation or CLC in accordance with ITB

Clause 5.5; and
Class "B" Document:
(vii) If applicable, valid Joint Venture Agreement (JVA)

or, in lieu thereof, duly notarized statements from all
the potential joint venture partners stating that they
will enter into and abide by the provisions of the JVA
in the instance that the bid is successful shall be
included in the bid.
(b) Technical Documents –
(i) Bid security as prescribed in ITB Clause 18. If the

Bidder opts to submit the bid security in the form of:
(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
(i.2) a surety bond accompanied by a certification

coming from an authorized Insurance
Commission that a surety or insurance
company is authorized to issue such
instrument;
(ii) Project Requirements, which shall include the

following:
(ii.1) Organizational chart for the contract to be

bid;
(ii.2) List of contractor’s personnel (viz, project

Manager, Project Engineers, Materials
22
Engineers, and Foremen), to be assigned to
the contract to be bid, with their complete
qualification and experience data; and
(ii.3) List of contractor’s equipment units, which are

owned, leased, and/or under purchase
agreements, supported by certification of
availability of equipment from the equipment
lessor/vendor for the duration of the project;
and
(iii) Sworn statement in accordance with Section

25.2(b)(iv) of the IRR of RA 9184 and using the form
prescribed in Section IX. Bidding Forms.
13. Documents Comprising the Bid: Financial Component

13.1. Unless otherwise stated in the BDS, the financial component of
the bid shall contain the following:
(a) Financial Bid Form in accordance with the form prescribed

in Section IX. Bidding Forms; and
(b) Any other document related to the financial component

of the bid as stated in the BDS.
13.2. (a) Unless indicated in the BDS, all Bids that exceed the ABC
shall not be accepted.
(b) Unless otherwise indicated in the BDS, for foreign-funded

procurement, a ceiling may be applied to bid prices
provided the following conditions are met:
(i) Bidding Documents are obtainable free of charge on a

freely accessible website. If payment of Bidding
Documents is required by the procuring entity,
payment could be made upon the submission of bids.
(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 works) 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
23
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.
(v) The procuring entity has established a monitoring and

evaluation system for contract implementation to
provide a feedback on actual total costs of goods
and works.
14. Alternative Bids

14.1. Alternative Bids shall be rejected. For this purpose, alternative bid
is an offer made by a Bidder in addition or as a substitute to its
original bid which may be included as part of its original bid or
submitted separately therewith for purposes of bidding. A bid
with options is considered an alternative bid regardless of
whether said bid proposal is contained in a single envelope or
submitted in two (2) or more separate bid envelopes.
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. Bid Prices

15.1. The contract shall be for the whole Works, as described in ITB
Clause 1.1, based on the priced Bill of Quantities submitted by
the Bidder.
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.
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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 "0" (zero) for the said item would mean that it is
being offered for free to the Government.
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 GCC
Clause 48. 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 the recommendation of the
Procuring Entity. 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. Bid Currencies

16.1. All bid prices shall be quoted in Philippine Pesos unless otherwise
provided in the BDS. However, for purposes of bid evaluation,
bids denominated in foreign currencies shall be converted to
Philippine currency based on the exchange rate prevailing on
the day of the Bid opening.
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 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. Bid Validity

17.1. Bids shall remain valid for the period specified in the BDS which
shall not exceed one hundred twenty (120) calendar days from
the date of the opening of bids.
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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.
18. Bid Security

18.1. The bid security in the amount stated in the BDS shall be equal to
the percentage of the ABC in accordance with the following
schedule:
Amount of Bid Security

Form of Bid Security (Equal to Percentage of the
ABC)
(a) Cash or
cashier’s/manager’s check
issued by a Universal or
Commercial Bank.
(b) Bank draft/guarantee or
irrevocable letter of credit
Two percent (2%)
Commercial Bank:
Provided, however, that it
shall be confirmed or
authenticated by a
Universal or Commercial
Bank, if issued by a foreign
bank.
(c) Surety bond callable upon
demand issued by a surety
or insurance company duly
certified by the Insurance Five percent (5%)
Commission as authorized
to issue such security;
and/or
(d) Bid Securing Declaration
(e) Any combination of the Proportionate to share of
foregoing. form with respect to total
amount of security
26
For biddings conducted by local government units, the Bidder
may also submit bid securities in the form of cashier’s/manager’s
check, bank draft/guarantee, or irrevocable letter of credit from
other banks certified by the BSP as authorized to issue such
financial statement.
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 motion for reconsideration and/or
protest. Without prejudice on its forfeiture, Bid Securities shall be
returned only after the bidder with the Lowest Calculated
Responsive Bid 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.
18.5. The bid security may be forfeited:
(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);
(iii) fails to submit the requirements within the prescribed

period, or a finding against their veracity, as stated
in ITB Clause 28.2;
(iv) submission of eligibility requirements containing false

information or falsified documents;
(v) submission of bids that contain false information or

falsified documents, or the concealment of such
information in the bids in order to influence the
outcome of eligibility screening or any other stage of
the public bidding;
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(vi) allowing the use of one’s name, or using the name
of another for purposes of public bidding;
(vii) withdrawal of a bid, or refusal to accept an award,

or enter into contract with the Government without
justifiable cause, after the Bidder had been
adjudged as having submitted the Lowest
Calculated and Responsive Bid;
(viii) refusal or failure to post the required performance

security within the prescribed time;
(ix) refusal to clarify or validate in writing its bid during

post-qualification within a period of seven (7)
calendar days from receipt of the request for
clarification;
(x) any documented attempt by a bidder to unduly

influence the outcome of the bidding in his favor;
(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.
(b) if the successful Bidder:
(i) fails to sign the contract in accordance with ITB

Clause 31;
(ii) fails to furnish performance security in accordance

with ITB Clause 32.
19. Format and Signing of Bids

19.1. Bidders shall submit their bids through their duly authorized
representative using the appropriate forms provided in Section
IX. Bidding Forms on or before the deadline specified in the ITB
Clause 21 in two (2) separate sealed bid envelopes, and which
shall be submitted simultaneously. The first shall contain the
technical component of the bid, including the eligibility
requirements under ITB Clause 12.1, and the second shall contain
the financial component of the bid.
28
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 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. The bid, except for unamended printed literature, shall be

signed, and each and every page thereof shall be initialed, by
the duly authorized representative/s of the Bidder.
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. Sealing and Marking of Bids

20.1. Bidders shall enclose their original eligibility and technical
documents described in ITB Clause 12, in one sealed envelope
marked “ORIGINAL - TECHNICAL COMPONENT”, and the original
of their financial component in another sealed envelope marked
“ORIGINAL - FINANCIAL COMPONENT”, sealing them all in an
outer envelope marked “ORIGINAL BID”.
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 indelible ink and shall be
signed by the bidder or its duly authorized representative/s.
20.4. All envelopes shall:
(a) contain the name of the contract to be bid in capital

letters;
(b) bear the name and address of the Bidder in capital letters;
(c) be addressed to the Procuring Entity’s BAC identified in ITB

Clause 10.1;
29
(d) bear the specific identification of this bidding process
indicated in the Invitation to Bid; 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. If bids are not sealed and marked as required, the Procuring
Entity will assume no responsibility for the misplacement or
premature opening of the bid.
D. Submission and Opening of Bids
21. Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address and
on or before the date and time indicated in the BDS.
22. Late Bids

Any bid submitted after the deadline for submission and receipt of bids
prescribed by the Procuring Entity, pursuant to ITB Clause 21, shall be
declared “Late” and shall not be accepted by the Procuring Entity.
23. Modification and Withdrawal of Bids

23.1. The Bidder may modify its bid after it has been submitted;
provided that the modification is received by the Procuring Entity
prior to the deadline prescribed for submission and receipt of
bids. The Bidder shall not be allowed to retrieve its original bid,
but shall be allowed to submit another bid equally sealed,
properly identified, linked to its original bid marked as
“TECHNICAL MODIFICATION” or “FINANCIAL MODIFICATION” and
stamped “received” by the BAC. Bid modifications received
after the applicable deadline shall not be considered and shall
be returned to the Bidder unopened.
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.
23.3. Bids requested to be withdrawn in accordance with ITB Clause

23.1 shall be returned unopened to the Bidders. A Bidder 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
30
withdraws its bid shall not be permitted to submit another bid,
directly or indirectly, for the same contract.
23.4. 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.
24. Opening and Preliminary Examination of Bids

24.1. The BAC shall open the first bid envelopes of Bidders in public as
specified in the BDS to determine each Bidder’s compliance with
the documents prescribed in ITB Clause 12. For this purpose, the
BAC shall check the submitted documents of each bidder
against a checklist of required documents to ascertain if they are
all present, 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”.
24.2. 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 13.1(b), 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.
24.3. 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. If the
withdrawing Bidder’s representative is in attendance, the original
bid and all copies thereof shall be returned to the representative
during the bid opening. If the representative is not in
attendance, the Bid shall be returned unopened by registered
31
mail. The Bidder may withdraw its bid prior to the deadline for the
submission and receipt of bids, provided that the corresponding
letter of withdrawal contains a valid authorization requesting for
such withdrawal, subject to appropriate administrative sanctions.
24.4. If a Bidder has previously secured a certification from the

Procuring Entity to the effect that it has previously submitted the
above-enumerated Class “A” Documents, the said certification
may be submitted in lieu of the requirements enumerated in ITB
Clause 12.1(a), items (i) to (vi).
24.5. In the case of an eligible foreign Bidder as described in ITB

Clause 5, the Class “A” Documents enumerated in ITB Clause
12.1(a) may be substituted with the appropriate equivalent
documents, if any, issued by the country of the foreign Bidder
concerned.
24.6. Each partner of a joint venture agreement shall likewise submit

the documents required in ITB Clauses 12.1(a)(i) and 12.1(a)(ii).
Submission of documents required under ITB Clauses 12.1(a)(iii) to
12.1(a)(vi) by any of the joint venture partners constitutes
compliance.
24.7. A Bidder determined as “failed” has three (3) calendar days

upon written notice or, if present at the time of bid opening,
upon verbal notification within which to file a request for
reconsideration with the BAC: Provided, however, that the
request for reconsideration shall not be granted if it is established
that the finding of failure is due to the fault of the Bidder
concerned: Provided, further, that the BAC shall decide on the
request for reconsideration within seven (7) calendar days from
receipt thereof. If a failed Bidder signifies his intent to file a
request for reconsideration, the BAC shall keep the bid
envelopes of the said failed Bidder unopened and/or duly
sealed until such time that the request for reconsideration or
protest has been resolved.
E. Evaluation and Comparison of Bids
25. Process to be Confidential

25.1. Members of the BAC, including its staff and personnel, as well as
its Secretariat and TWG, are prohibited from making or
accepting any kind of communication with any bidder
regarding the evaluation of their bids until the issuance of the
Notice of Award, unless n the case of ITB Clause 26.
32
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.
26. Clarification of Bids

To assist in the evaluation, comparison and post-qualification of the
bids, the Procuring Entity may ask in writing any Bidder for a clarification
of its bid. All responses to requests for clarification shall be in writing.
Any clarification submitted by a Bidder in respect to its bid and that is
not in response to a request by the Procuring Entity shall not be
considered
27. Detailed Evaluation and Comparison of Bids

27.1. The Procuring Entity will undertake the detailed evaluation and
comparison of Bids which have passed the opening and
preliminary examination of Bids, pursuant to ITB Clause 24, in
order to determine the Lowest Calculated Bid.
27.2. In evaluating the Bids to get the Lowest Calculated Bid, the
Procuring Entity shall undertake the following:
(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 ITB specifically 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 "0" (zero) for the said item
would mean that it is being offered for free to the
Procuring Entity; and
33
(b) Arithmetical corrections. Consider computational errors
and omissions to enable proper comparison of all eligible
bids. It may also consider bid modifications if expressly
allowed in the BDS. Any adjustment shall be calculated in
monetary terms to determine the calculated prices.
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 only be based on

the bid price quoted in the Financial Bid Form
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.
28. Post Qualification

28.1. The Procuring Entity shall determine to its satisfaction whether the
Bidder that is evaluated as having submitted the Lowest
Calculated Bid (LCB) complies with and is responsive to all the
requirements and conditions specified in ITB Clauses 5, 12, and
13.
28.2. Within a non-extendible period of three (3) calendar days from

receipt by the Bidder of the notice from the BAC that it
submitted the LCB, the Bidder shall submit the following
documentary requirements:
(a) Tax clearance per Executive Order 398, Series of 2005;
(b) Latest income and business tax returns in the form

specified in the BDS;
(c) Certificate of PhilGEPS Registration; and
(d) Other appropriate licenses and permits required by law

and stated in the BDS.
34
Failure of the Bidder declared as LCB to duly submit the
requirements under this Clause or a finding against the veracity
of such, shall be ground for forfeiture of the bid security and
disqualification of the Bidder for award.
28.3. The determination shall be based upon an examination of the

documentary evidence of the Bidder’s qualifications submitted
pursuant to ITB Clauses 12 and 13, as well as other information as
the Procuring Entity deems necessary and appropriate, using a
non-discretionary “pass/fail” criterion.
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 Lowest Calculated Responsive Bid, and
recommend to the Head of the Procuring Entity 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 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 Lowest Calculated
and Responsive Bid is determined for contract award.
28.6. Within a period not exceeding seven (7) calendar days from the
date of receipt of the recommendation of the BAC, the Head of
the Procuring Entity shall approve or disapprove the said
recommendation. In the case of government owned and
government-owned and/or -controlled corporations (GOCCs)
and government financial institutions (GFIs), the period provided
herein shall be fifteen (15) calendar days.
29. Reservation Clause

29.1. Notwithstanding the eligibility or post-qualification of a bidder,
the Procuring Entity concerned reserves the right to review its
qualifications at any stage of the procurement process if it has
reasonable grounds to believe that a misrepresentation has
been made by the said bidder, or that there has been a change
in the Bidder’s capability to undertake the project from the time
it submitted its eligibility requirements. Should such review
uncover any misrepresentation made in the eligibility and
bidding requirements, statements or documents, or any changes
in the situation of the Bidder which will affect its capability to
undertake the project so that it fails the preset eligibility or bid
35
evaluation criteria, the Procuring Entity shall consider the said
Bidder as ineligible and shall disqualify it from submitting a bid or
from obtaining an award or contract.
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:
(a) if there is prima facie evidence of collusion between

appropriate public officers or employees of the Procuring
Entity, or between the BAC and any of the bidders, or if the
collusion is between or among the bidders themselves, or
between a bidder and a third party, including any act
which restricts, suppresses or nullifies or tends to restrict,
suppress or nullify competition;
(b) if the Procuring Entity’s BAC is found to have failed in

following the prescribed bidding procedures; or
(c) for any justifiable and reasonable ground where the award
of the contract will not redound to the benefit of the
Government as follows:
(i) If the physical and economic conditions have

significantly changed so as to render the project no
longer economically, financially or technically
feasible as determined by the head of the procuring
entity;
(ii) If the project is no longer necessary as determined

by the head of the procuring entity; and
(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:
(a) No bids are received;
(b) All prospective bidders are declared ineligible;
(c) All bids fail to comply with all the bid requirements or fail
post-qualification; or
36
(d) The bidder with the Lowest Calculated Responsive Bid
refuses, without justifiable cause to accept the award of
contract, and no award is made.
F. Award of Contract
30. Contract Award

30.1. Subject to ITB Clause 28, the Procuring Entity shall award the
contract to the Bidder whose Bid has been determined to be the
Lowest Calculated and Responsive Bid (LCRB).
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 received personally
or sent by registered mail or electronically, receipt of which must
be confirmed in writing within two (2) days by 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 the

prescribed period from receipt by the Bidder of the notice
that it has the Lowest Calculated and Responsive Bid:
(i) Valid JVA, if applicable, within ten (10) calendar

days;
(ii) Valid PCAB license and registration for the type and
cost of the contract to be bid for foreign bidders,
within thirty (30) calendar days, if allowed under a
Treaty or International or Executive Agreement
mentioned in ITB Clause 12.1(a)(iv);
(b) Posting of the performance security in accordance with ITB

Clause 32;
(c) Signing of the contract as provided in ITB Clause 31; and
(d) Approval by higher authority, if required.
31. Signing of the Contract

31.1. At the same time as the Procuring Entity notifies the successful
Bidder that its Bid has been accepted, the Procuring Entity shall
send the Contract Form to the Bidder, which Contract has been
37
provided in the Bidding Documents, incorporating therein all
agreements between the parties.
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.
31.4. The following documents shall form part of the contract:
(a) Contract Agreement;
(b) Bidding Documents;
(c) Winning bidder’s bid, including the Technical and Financial

Proposals, and all other documents/statements submitted;
(d) Performance Security;
(e) Credit line in accordance with ITB Clause 5.5, if applicable;
(f) Notice of Award of Contract; and
(g) Other contract documents that may be required by

existing laws and/or specified in the BDS.
32. Performance Security

32.1. To guarantee the faithful performance by the winning Bidder of
its obligations under the contract, it shall post a performance
security within a maximum period of ten (10) calendar days from
the receipt of the Notice of Award from the Procuring Entity and
in no case later than the signing of the contract.
32.2. The performance security shall be denominated in Philippine

Pesos and posted in favor of the Procuring Entity in an amount
equal to the percentage of the total contract price as stated in
the BDS in accordance with the following schedule:
Amount of Performance
Security
Form of Performance Security
(Equal to Percentage of the
Total Contract Price)
(a) Cash or
ten percent (10%)
cashier’s/manager’s
38
check issued by a
Bank.
(b) Bank draft/guarantee or
irrevocable letter of credit
Commercial Bank:
Provided, however, that it
shall be confirmed or
authenticated by a
Bank, if issued by a foreign
bank.
demand issued by a Thirty percent (30%)
surety or insurance
company duly certified by
the Insurance Commission
as authorized to issue such
security; and/or
(d) Any combination of the Proportionate to share of form
foregoing. with respect to total amount
of security
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 initiate and complete the
post qualification of the second Lowest Calculated Bid. The
procedure shall be repeated until the Lowest Calculated and
Responsive Bid is identified and selected for 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.
33. Notice to Proceed

33.1. Within three (3) calendar days from the date of approval of the
Contract by the appropriate government approving authority,
the Procuring Entity shall issue its Notice to Proceed to the Bidder.
33.2. The contract effectivity date shall be provided in the Notice to

Proceed by the Procuring Entity, which date shall not be later
than seven (7) calendar days from the issuance of the Notice to
Proceed.
39
Section III. Bid Data Sheet
Notes on the Bid Data Sheet

This Section is intended to assist the Procuring Entity in providing the specific
information in relation to corresponding clauses in the ITB, and has to be
prepared for each specific procurement.
The PROCURING ENTITY should specify in the BDS information and

requirements specific to the circumstances of the Procuring Entity, the
processing of the procurement, the applicable rules regarding Bid price
and currency, and the Bid evaluation criteria that will apply to the Bids. In
preparing this Section, the following aspects should be checked:
(a) Information that specifies and complements provisions of Section II.

Instructions to Bidders must be incorporated.
(b) Amendments and/or supplements, if any, to provisions of Section II.

Instructions to Bidders as necessitated by the circumstances of the
specific procurement, must also be incorporated.
For foreign-assisted projects, the Bid Data Sheet to be used is provided in

Section X-Foreign-Assisted Projects.
40
Bid Data Sheet
ITB Clause
1.1 The PROCURING ENTITY is City Government of San Fernando.
The name of the Contract is Construction of Barangay Health

Station, Barangay Carlatan, City of San Fernando, City of San
Fernando
2 The Funding Source is:
The Government of the Philippines (GOP) through City Fund in

the amount of Nine Hundred Ninety Nine Thousand Eight Hundred
Fifty Four Pesos & 04/100 (PhP999,854.04)
NOTE: In the case of National Government Agencies, the

General Appropriations Act and/or continuing
appropriations; in the case of Government-Owned and/or –
Controlled Corporations, Government Financial Institutions,
and State Universities and Colleges, the Corporate Budget
for the contract approved by the governing Boards; in the
case of Local Government Units, the Budget for the contract
approved by the respective Sanggunian.
The name of the Project is [Insert the name of the project or

“Not Applicable”]
3.1 No further instructions.
5.2 Bidding is restricted to eligible bidders as defined in ITB Clause

5.1.
8.1 State either “Subcontracting is not allowed.” or specify the

portions of Works and the maximum percentage allowed to be
subcontracted.
NOTE: The contractor shall undertake not less than 50% of the
contracted works with its own resources.
8.2 If subcontracting is not allowed
9.1 No further instructions
41
10.1 The Procuring Entity’s address is:
HON. PABLO C. ORTEGA

City Mayor
City of San Fernando, La Union
Telephone No.: +63 72 888-6906
Telefax: +63 72 888-6907
E-mail: [email protected]
12.1 If the Procuring Entity maintains a registry system using the

PhilGEPS or its own electronic system:
The first envelope shall contain the eligibility and technical

documents stated in the ITB Clause. However, if the Bidder
maintains a current and updated file of his Class “A”
Documents with the Procuring Entity, a written letter of intent
may be submitted in lieu of the Class “A” Documents;
otherwise, it shall submit an application for eligibility and its
latest Class “A” Documents on or before [insert date]. Any
application for eligibility or updates submitted after the
deadline for the submission of the letter of intent shall not be
considered for the bidding at hand.
12.1(a)(i) List any additional acceptable proof of registration mentioned

in the ITB Clause or state “No other acceptable proof of
registration is recognized.”
12.1(a)(iv) No further instructions.
13.1 List any additional requirements or state “No additional

Requirements”
13.1(b) The ABC is PhP999,854.04. Any bid with a financial component

exceeding this amount shall not be accepted.
14.2 Insert value engineering clause if allowed, otherwise state “No

further instructions.”
15.4 No further instruction.
16.1 Select one, delete the other:
The bid prices shall be quoted in Philippine Pesos.
17.1 Bids will be valid until 120 calendar days
42
18.1 The bid security shall be in the following amount:
1. The amount of PhP19,997.08, if bid security is in cash,

cashier’s/manager’s check, bank draft/guarantee or
irrevocable letter of credit;
2. The amount of PhP49,992.70, if bid security is in Surety Bond;

or
3. Any combination of the foregoing proportionate to the

share of form with respect to total amount of security.
18.2 The bid security shall be valid until 120 calendar days
20.3 Each Bidder shall submit one (1) original copy and two (2)
copies of the first and second components of its bid.
21 The address for submission of bids is Mayor’s Conference Room.
The deadline for submission of bids is March 31, 2015.
24.1 The place of bid opening is Mayor’s Conference Room.
The date and time of bid opening is March 31, 2015at 2:00 pm
27.3(b) State whether bid modification is allowed or not.
28.2(b) Specify whether Bidders have option to submit manually filed

tax returns or tax returns filed through the Electronic Filing and
Payments System (EFPS).
NOTE: The latest income and business tax returns are those
within the last six months preceding the date of bid submission.
28.2(d) List licenses and permits relevant to the Project and the
corresponding law requiring it.
31.4(g) List additional contract documents relevant to the Project that

may be required by existing laws and/or the Procuring Entity,
such as construction schedule and S-curve, manpower
schedule, construction methods, equipment utilization
schedule, construction safety and health program approved
by the Department of Labor and Employment, and PERT/CPM.
The performance security shall be in the following amount:
43
1. The amount of PhP99,985.40, if performance security is in
cash, cashier’s/manager’s check, bank draft/guarantee or
irrevocable letter of credit;
2. The amount of PhP299,956.21, if performance security is in

Surety Bond; or
3. Any combination of the foregoing proportionate to the

share of form with respect to total amount of security.
44
Section IV. General Conditions of Contract
Notes on the General Conditions of Contract

The details in the GCC and SCC, and submission thereof, along with other
required documents listed therein, expressing all the rights and obligations
of the parties, should be complete.
The GCC herein shall not be altered. Any changes and complementary
information, which may be needed, shall be introduced only through the
SCC.
45
TABLE OF CONTENTS
1. DEFINITIONS ...................................................................................... 48
2. INTERPRETATION ................................................................................. 50
3. GOVERNING LANGUAGE AND LAW ....................................................... 51
4. COMMUNICATIONS ............................................................................ 51
5. POSSESSION OF SITE ............................................................................ 51
6. THE CONTRACTOR’S OBLIGATIONS ........................................................ 52
7. PERFORMANCE SECURITY ..................................................................... 53
8. SUBCONTRACTING .............................................................................. 54
9. LIQUIDATED DAMAGES ........................................................................ 54
10. SITE INVESTIGATION REPORTS ................................................................ 55
11. THE PROCURING ENTITY, LICENSES AND PERMITS ...................................... 55
12. CONTRACTOR’S RISK AND WARRANTY SECURITY ...................................... 55
13. LIABILITY OF THE CONTRACTOR ............................................................. 58
14. PROCURING ENTITY’S RISK.................................................................... 58
15. INSURANCE ....................................................................................... 59
16. TERMINATION FOR DEFAULT OF CONTRACTOR .......................................... 60
17. TERMINATION FOR DEFAULT OF PROCURING ENTITY ................................... 61
18. TERMINATION FOR OTHER CAUSES ......................................................... 61
19. PROCEDURES FOR TERMINATION OF CONTRACTS ...................................... 63
20. FORCE MAJEURE, RELEASE FROM PERFORMANCE ..................................... 66
21. RESOLUTION OF DISPUTES ..................................................................... 67
22. SUSPENSION OF LOAN, CREDIT, GRANT, OR APPROPRIATION ..................... 68
23. PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS .................................. 68
24. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY THE PROCURING
ENTITY’S REPRESENTATIVE ..................................................................... 68
25. ACCELERATION AND DELAYS ORDERED BY THE PROCURING ENTITY’S
REPRESENTATIVE ................................................................................. 69
26. EXTENSION OF THE INTENDED COMPLETION DATE ..................................... 69
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27. RIGHT TO VARY .................................................................................. 69
28. CONTRACTORS RIGHT TO CLAIM ........................................................... 70
29. DAYWORKS ....................................................................................... 70
30. EARLY WARNING................................................................................ 70
31. PROGRAM OF WORK .......................................................................... 71
32. MANAGEMENT CONFERENCES .............................................................. 71
33. BILL OF QUANTITIES ............................................................................. 72
34. INSTRUCTIONS, INSPECTIONS AND AUDITS ............................................... 72
35. IDENTIFYING DEFECTS .......................................................................... 73
36. COST OF REPAIRS ............................................................................... 73
37. CORRECTION OF DEFECTS .................................................................... 73
38. UNCORRECTED DEFECTS ...................................................................... 73
39. ADVANCE PAYMENT ........................................................................... 74
40. PROGRESS PAYMENTS.......................................................................... 74
41. PAYMENT CERTIFICATES ....................................................................... 75
42. RETENTION ........................................................................................ 76
43. VARIATION ORDERS ............................................................................ 76
44. CONTRACT COMPLETION ..................................................................... 78
45. SUSPENSION OF WORK ........................................................................ 79
46. PAYMENT ON TERMINATION .................................................................. 80
47. EXTENSION OF CONTRACT TIME ............................................................ 81
48. PRICE ADJUSTMENT ............................................................................. 82
49. COMPLETION ..................................................................................... 82
50. TAKING OVER .................................................................................... 82
51. OPERATING AND MAINTENANCE MANUALS ............................................ 82
47
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 Price is the price stated in the Letter of Acceptance
and thereafter to be paid by the Procuring Entity to the
Contractor for the execution of the Works in accordance with
this Contract.
1.6. 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.
1.7. 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.
1.8. The Contractor’s Bid is the signed offer or proposal submitted by

the Contractor to the Procuring Entity in response to the Bidding
Documents.
1.9. Days are calendar days; months are calendar months.
1.10. Dayworks 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.
1.11. A Defect is any part of the Works not completed in accordance

with the Contract.
1.12. The Defects Liability Certificate is the certificate issued by

Procuring Entity’s Representative upon correction of defects by
the Contractor.
48
1.13. 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.
1.14. 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.
1.15. Equipment refers to all facilities, supplies, appliances, materials or

things required for the execution and completion of the Work
provided by the Contractor and which shall not form or are not
intended to form part of the Permanent Works.
1.16. 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.
1.17. Materials are all supplies, including consumables, used by the

Contractor for incorporation in the Works.
1.18. 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.
1.19. Permanent Works 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.
1.20. Plant refers to the machinery, apparatus, and the like intended
to form an integral part of the Permanent Works.
1.21. The Procuring Entity is the party who employs the Contractor to
carry out the Works stated in the SCC.
1.22. 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.
1.23. The Site is the place provided by the Procuring Entity where the
Works shall be executed and any other place or places which
49
may be designated in the SCC, or notified to the Contractor by
the Procuring Entity’s Representative as forming part of the Site.
1.24. 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.
1.25. Slippage is a delay in work execution occurring when actual

accomplishment falls below the target as measured by the
difference between the scheduled and actual accomplishment
of the Work by the Contractor as established from the work
schedule. This is actually described as a percentage of the
whole Works.
1.26. 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.
1.27. 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.
1.28. 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.
1.29. Temporary Works are works designed, constructed, installed, and

removed by the Contractor that are needed for construction or
installation of the Permanent Works.
1.30. 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 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
50
provide instructions clarifying queries about the Conditions of
Contract.
2.2. If sectional completion is specified in the SCC, references in the

Conditions of Contract to the Works, the Completion Date, and
the Intended Completion Date apply to any Section of the Works
(other than references to the Completion Date and Intended
Completion Date for the whole of the Works).
3. Governing Language and Law

3.1. This Contract has been executed in the English language, which
shall be the binding and controlling language for all matters
relating to the meaning or interpretation of this Contract. All
correspondence and other documents pertaining to this
Contract which are exchanged by the parties shall be written in
English.
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
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 contact 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
51
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. The Contractor’s Obligations

6.1. The Contractor shall carry out the Works properly and in
accordance with this Contract. The Contractor shall provide all
supervision, labor, Materials, Plant and Contractor's Equipment,
which may be required. All Materials and Plant on Site shall be
deemed to be the property of the Procuring Entity.
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.
52
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.
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.
6.10. Should anything of historical or other interest or of significant

value be unexpectedly discovered on the Site, it shall be the
property of the Procuring Entity. The Contractor shall notify the
Procuring Entity’s Representative of such discoveries and carry
out the Procuring Entity’s Representative’s instructions in dealing
with them.
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 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
(c) Other terms specified in the SCC.
53
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 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 ITB
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. Subcontractors disclosed and identified during the bidding may

be changed during the implementation of this Contract, subject
to compliance with the required qualifications and the approval
of the Procuring Entity.
9. Liquidated Damages
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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.
Once the cumulative amount of liquidated damages reaches
ten percent (10%) of the amount of this Contract, the Procuring
Entity shall rescind this Contract, without prejudice to other
courses of action and remedies open to it.
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. The
Contractor shall be paid interest on the overpayment,
calculated from the date of payment to the date of repayment,
at the rates specified in GCC Clause 40.3.
10. Site Investigation Reports

The Contractor, in preparing the Bid, shall rely on any Site Investigation
Reports referred to in the SCC supplemented by any information
obtained by the Contractor.
11. The Procuring Entity, Licenses and Permits

The Procuring Entity shall, if requested by the Contractor, assist him in
applying for permits, licenses or approvals, which are required for the
Works.
12. Contractor’s Risk and Warranty Security

12.1. The Contractor shall assume full responsibility for the Works from
the time project construction commenced up to final
acceptance by the Procuring Entity and shall be held
responsible for any damage or destruction of the Works except
those occasioned by force majeure. The Contractor shall be fully
responsible for the safety, protection, security, and convenience
of his personnel, third parties, 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
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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 Head of the Procuring
Entity 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:
(a) Contractor – Where Structural Defects/Failures arise due to

faults attributable to improper construction, use of inferior
quality/substandard materials, and any violation of the
contract plans and specifications, the contractor shall be
held liable;
(b) Consultants – Where Structural Defects/Failures arise due to

faulty and/or inadequate design and specifications as well
as construction supervision, then the consultant who
prepared the design or undertook construction supervision
for the project shall be held liable;
(c) Procuring Entity’s Representatives/Project

Manager/Construction Managers and Supervisors – The
project owner’s representative(s), project manager,
construction manager, and supervisor(s) shall be held
liable in cases where the Structural Defects/Failures are
due to his/their willful intervention in altering the designs
and other specifications; negligence or omission in not
approving or acting on proposed changes to noted
defects or deficiencies in the design and/or specifications;
56
and the use of substandard construction materials in the
project;
(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.
(e) Users - In cases where Structural Defects/Failures are due to

abuse/misuse by the end user of the constructed facility
and/or non–compliance by a user with the technical
design limits and/or intended purpose of the same, then
the user concerned shall be held liable.
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:
Minimum Amount in
Form of Warranty Percentage (%) of Total
Contract Price
(a) Cash or letter of credit issued by
Universal or Commercial bank:
provided, however, that the
letter of credit shall be Five Percent (5%)
confirmed or authenticated by
a Universal or Commercial
bank, if issued by a foreign bank
(b) Bank guarantee confirmed by
Universal or Commercial bank:
provided, however, that the
letter of credit shall be Ten Percent (10%)
confirmed or authenticated by
a Universal or Commercial
bank, if issued by a foreign bank
demand issued by GSIS or any Thirty Percent (30%)
surety or insurance company
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duly certified by the Insurance
Commission
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.
12.8. In case of structural defects/failure occurring during the

applicable warranty period provided in GCC Clause 12.5, the
Procuring Entity shall undertake the necessary restoration or
reconstruction works and shall be entitled to full reimbursement
by the parties found to be liable for expenses incurred therein
upon demand, without prejudice to the filing of appropriate
administrative, civil, and/or criminal charges against the
responsible persons as well as the forfeiture of the warranty
security posted in favor of the Procuring Entity.
13. Liability of the Contractor

Subject to additional provisions, if any, set forth in the SCC, the
Contractor’s liability under this Contract shall be as provided by the
laws of the Republic of the Philippines.
14. Procuring Entity’s Risk

14.1. From the Start Date until the Certificate of Final Acceptance has
been issued, the following are risks of the Procuring Entity:
(a) The risk of personal injury, death, or loss of or damage to

property (excluding the Works, Plant, Materials, and
Equipment), which are due to:
(i) any type of use or occupation of the Site authorized

by the Procuring Entity after the official acceptance
of the works; or
(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.
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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:
(a) Contractor’s All Risk Insurance;
(b) Transportation to the project Site of Equipment, Machinery,

and Supplies owned by the Contractor;
(c) Personal injury or death of Contractor’s employees; and
(d) Comprehensive insurance for third party liability to

Contractor’s direct or indirect act or omission causing
damage to third persons.
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.
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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 new policy issued by a new
insurance company acceptable to the Procuring Entity for any of
the following grounds:
(a) The issuer of the insurance policy to be replaced has:
(i) become bankrupt;
(ii) been placed under receivership or under a

management committee;
(iii) been sued for suspension of payment; or
(iv) been suspended by the Insurance Commission and

its license to engage in business or its authority to
issue insurance policies cancelled; or
(v) Where reasonable grounds exist that the insurer may

not be able, fully and promptly, to fulfill its obligation
under the insurance policy.
16. Termination for Default of Contractor

16.1. The Procuring Entity shall terminate this Contract for default when
any of the following conditions attend its implementation:
16.2. 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;
16.3. 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
16.4. The Contractor:
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(a) abandons the contract Works, refuses or fails to comply
with a valid instruction of the Procuring Entity or fails to
proceed expeditiously and without delay despite a written
notice by the Procuring Entity;
(b) 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;
(c) does not execute the Works in accordance with this

Contract or persistently or flagrantly neglects to carry out
its obligations under this Contract;
(d) neglects or refuses to remove materials or to perform a

new Work that has been rejected as defective or
unsuitable; or
(e) sub-lets any part of this Contract without approval by the

Procuring Entity.
16.5. All materials on the Site, Plant, Equipment, and Works shall be
deemed to be the property of the Procuring Entity if this Contract
is rescinded because of the Contractor’s default.
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. Termination for Other Causes

18.1. The Procuring Entity may terminate this Contract, in whole or in
part, at any time for its convenience. The Head of the Procuring
Entity may terminate this Contract for the convenience of the
Procuring Entity if he has determined the existence of conditions
that make Project Implementation economically, financially or
61
technically impractical and/or unnecessary, such as, but not
limited to, fortuitous event(s) or changes in law and National
Government policies.
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;
(d) A payment certified by the Procuring Entity’s

Representative is not paid by the Procuring Entity to the
Contractor within eighty four (84) days from the date of
the Procuring Entity’s Representative’s certificate;
(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;
(f) The Contractor does not maintain a Security, which is

required;
(g) The Contractor has delayed the completion of the Works

by the number of days for which the maximum amount of
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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:
(i) corrupt, fraudulent, collusive, coercive, and

obstructive practices as defined in ITB Clause 3.1(a),
unless otherwise specified in the SCC;
(ii) drawing up or using forged documents;
(iii) using adulterated materials, means or methods, or

engaging in production contrary to rules of science
or the trade; and
(iv) any other act analogous to the foregoing.
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.
19. Procedures for Termination of Contracts

19.1. The following provisions shall govern the procedures for the
termination of this Contract:
(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
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execution of a Verified Report, with all relevant evidence
attached;
(b) Upon recommendation by the Procuring Entity, the Head

of the Procuring Entity 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;
(ii) the extent of termination, whether in whole or in

part;
(iii) an instruction to the Contractor to show cause as to

why this Contract should not be terminated; and
(iv) special instructions of the Procuring Entity, if any.
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 Head of the Procuring Entity 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 Head
of the Procuring Entity shall issue an order terminating the
contract;
(d) The Procuring Entity may, at anytime before receipt of the

Bidder’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 Head of the
Procuring Entity 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
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(f) The Head of the Procuring Entity 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 Head of
the Procuring Entity.
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:
(i) Employment of competent technical personnel,

competent engineers and/or work supervisors;
(ii) Provision of warning signs and barricades in

accordance with approved plans and specifications
and contract provisions;
(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;
(iv) Deployment of committed equipment, facilities,

support staff and manpower; and
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(v) Renewal of the effectivity dates of the performance
security after its expiration during the course of
contract implementation.
(c) Assignment and subcontracting of the contract or any

part thereof or substitution of key personnel named in the
proposal without prior written approval by the procuring
entity.
(d) Poor performance by the contractor or unsatisfactory

quality and/or progress of work arising from his fault or
negligence as reflected in the Constructor's Performance
Evaluation System (“CPES”) rating sheet. In the absence of
the CPES rating sheet, the existing performance monitoring
system of the procuring entity shall be applied. Any of the
following acts by the Contractor shall be construed as
poor performance:
(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
(ii) Quality of materials and workmanship not complying

with the approved specifications arising from the
contractor's fault or negligence.
(e) Willful or deliberate abandonment or non-performance of

the project or contract by the contractor resulting to
substantial breach thereof without lawful and/or just
cause.
In addition to the penalty of suspension, the performance

security posted by the contractor shall also be forfeited.
20. Force Majeure, Release From Performance

20.1. For purposes of this Contract the terms “force majeure” and
“fortuitous event” may be used interchangeably. In this regard,
a fortuitous event or force majeure shall be interpreted to mean
an event which the Contractor could not have foreseen, or
which though foreseen, was inevitable. It shall not include
ordinary unfavorable weather conditions; and any other cause
the effects of which could have been avoided with the exercise
of reasonable diligence by the Contractor.
20.2. If this Contract is discontinued by an outbreak of war or by any

other event entirely outside the control of either the Procuring
Entity or the Contractor, the Procuring Entity’s Representative
66
shall certify that this Contract has been discontinued. The
Contractor shall make the Site safe and stop work as quickly as
possible after receiving this certificate and shall be paid for all
works carried out before receiving it and for any Work carried
out afterwards to which a commitment was made.
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;
(b) the cost of his suspension and demobilization;
(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. Resolution of Disputes

21.1. If any dispute or difference of any kind whatsoever shall arise
between the parties in connection with the implementation of
the contract covered by the Act and this IRR, the parties shall
make every effort to resolve amicably such dispute or difference
by mutual consultation.
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
67
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.
22. Suspension of Loan, Credit, Grant, or Appropriation

In the event that the Funding Source suspends the Loan, Credit, Grant,
or Appropriation to the Procuring Entity, from which part of the
payments to the Contractor are being made:
(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. Procuring Entity’s Representative’s Decisions

23.1. Except where otherwise specifically stated, the Procuring Entity’s
Representative will decide contractual matters between the
Procuring Entity and the Contractor in the role representing the
Procuring Entity.
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.
24. Approval of Drawings and Temporary Works by the Procuring

Entity’s Representative
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.
24.2. The Contractor shall be responsible for design of Temporary

Works.
24.3. The Procuring Entity’s Representative’s approval shall not alter

the Contractor’s responsibility for design of the Temporary Works.
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24.4. The Contractor shall obtain approval of third parties to the
design of the Temporary Works, when required by the Procuring
Entity.
25. Acceleration and Delays Ordered by the Procuring Entity’s

Representative
25.1. When the Procuring Entity wants the Contractor to finish before
the Intended Completion Date, the Procuring Entity’s
Representative will obtain priced proposals for achieving the
necessary acceleration from the Contractor. If the Procuring
Entity accepts these proposals, the Intended Completion Date
will be adjusted accordingly and confirmed by both the
Procuring Entity and the Contractor.
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. Extension of the Intended Completion Date

26.1. The Procuring Entity’s Representative shall extend the Intended
Completion Date if a Variation is issued which makes it impossible
for the Intended Completion Date to be achieved by the
Contractor without taking steps to accelerate the remaining
work, which would cause the Contractor to incur additional
costs. No payment shall be made for any event which may
warrant the extension of the Intended Completion Date.
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.
27. Right to Vary

27.1. The Procuring Entity’s Representative with the prior approval of
the Procuring Entity may instruct Variations, up to a maximum
cumulative amount of ten percent (10%) of the original contract
cost.
27.2. Variations shall be valued as follows:
(a) At a lump sum price agreed between the parties;
69
(b) where appropriate, at rates in this Contract;
(c) in the absence of appropriate rates, the rates in this

Contract shall be used as the basis for valuation; or failing
which
(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 Head of the Procuring Entity.
28. Contractor's Right to Claim

If the Contractor incurs cost as a result of any of the events under GCC
Clause 13, the Contractor shall be entitled to the amount of such cost.
If as a result of any of the said events, it is necessary to change the
Works, this shall be dealt with as a Variation.
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 Dayworks 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 Dayworks subject to obtaining

signed Dayworks forms.
30. Early Warning

30.1. The Contractor shall warn the Procuring Entity’s Representative at
the earliest opportunity of specific likely future events or
circumstances that may adversely affect the quality of the work,
increase the Contract Price, or delay the execution of the Works.
The Procuring Entity’s Representative may require the Contractor
to provide an estimate of the expected effect of the future
event or circumstance on the Contract Price and Completion
Date. The estimate shall be provided by the Contractor as soon
as reasonably possible.
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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. Program of Work

31.1. Within the time stated in the SCC, the Contractor shall submit to
the Procuring Entity’s Representative for approval a Program of
Work showing the general methods, arrangements, order, and
timing for all the activities in the Works.
31.2. An update of the Program of Work shall the 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.
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. Management Conferences

32.1. Either the Procuring Entity’s Representative or the Contractor
may require the other to attend a Management Conference.
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The Management Conference shall review the plans for
remaining work and deal with matters raised in accordance with
the early warning procedure.
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. Bill of Quantities

33.1. The Bill of Quantities shall contain items of work for the
construction, installation, testing, and commissioning of work to
be done by the Contractor.
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. Instructions, Inspections and Audits

34.1. The Procuring Entity’s personnel shall at all reasonable times
during construction of the Work be entitled to examine, inspect,
measure and test the materials and workmanship, and to check
the progress of the construction.
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.
35. Identifying Defects

The Procuring Entity’s Representative shall check the Contractor’s work
and notify the Contractor of any defects that are found. Such
checking shall not affect the Contractor’s responsibilities. The
Procuring Entity’s Representative may instruct the Contractor to search
uncover defects and test any work that the Procuring Entity’s
Representative considers below standards and defective.
36. Cost of Repairs

Loss or damage to the Works or Materials to be incorporated in the
Works between the Start Date and the end of the Defects Liability
Periods shall be remedied by the Contractor at the Contractor’s cost if
the loss or damage arises from the Contractor’s acts or omissions.
37. Correction of Defects

37.1. The Procuring Entity’s Representative shall give notice to the
Contractor of any defects before the end of the Defects Liability
Period, which is One (1) year from project completion up to final
acceptance by the Procuring Entity’s.
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. Uncorrected Defects

38.1. The Procuring Entity shall give the Contractor at least fourteen
(14) days notice of his intention to use a third party to correct a
Defect. If the Contractor does not correct the Defect himself
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within the period, the Procuring Entity may have the Defect
corrected by the third party. The cost of the correction will be
deducted from the Contract Price.
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.
39. Advance Payment

39.1. The Procuring Entity shall, upon a written request of the
contractor which shall be submitted as a contract document,
make an advance payment to the contractor in an amount not
exceeding fifteen percent (15%) of the total contract price, to
be made in lump sum or, at the most two, installments according
to a schedule specified in the SCC.
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. Progress Payments

40.1. The Contractor may submit a request for payment for Work
accomplished. Such request for payment shall be verified and
certified by the Procuring Entity’s Representative/Project
Engineer. Except as otherwise stipulated in the SCC, materials
and equipment delivered on the site but not completely put in
place shall not be included for payment.
40.2. The Procuring Entity shall deduct the following from the certified
gross amounts to be paid to the contractor as progress payment:
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(a) Cumulative value of the work previously certified and paid
for.
(b) Portion of the advance payment to be recouped for the

month.
(c) Retention money in accordance with the condition of

contract.
(d) Amount to cover third party liabilities.
(e) Amount to cover uncorrected discovered defects in the

works.
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.
41. Payment Certificates

41.1. The Contractor shall submit to the Procuring Entity’s
Representative monthly statements of the estimated value of the
work executed less the cumulative amount certified previously.
41.2. The Procuring Entity’s Representative shall check the

Contractor’s monthly statement and certify the amount to be
paid to the Contractor.
41.3. The value of Work executed shall:
(a) be determined by the Procuring Entity’s Representative;
(b) comprise the value of the quantities of the items in the Bill
of Quantities completed; and
(c) include the valuations of approved variations.
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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 ITB 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.
43. Variation Orders

43.1. Variation Orders may be issued by the Procuring Entity to cover
any increase/decrease in quantities, including the introduction
of new work items that are not included in the original contract
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or reclassification of work items that are either due to change of
plans, design or alignment to suit actual field conditions resulting
in disparity between the preconstruction plans used for purposes
of bidding and the “as staked plans” or construction drawings
prepared after a joint survey by the Contractor and the
Procuring Entity after award of the contract, provided that the
cumulative amount of the Variation Order does not exceed ten
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 Head of the Procuring Entity 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
77
stipulated shall constitute a waiver by the contractor for any
claim. The preparation and submission of Variation Orders are as
follows:
(a) If the Procuring Entity’s representative/Project Engineer

believes that a Change Order or Extra Work Order should
be issued, he shall prepare the proposed Order
accompanied with the notices submitted by the
Contractor, the plans therefore, his computations as to the
quantities of the additional works involved per item
indicating the specific stations where such works are
needed, the date of his inspections and investigations
thereon, and the log book thereof, and a detailed
estimate of the unit cost of such items of work, together
with his justifications for the need of such Change Order or
Extra Work Order, and shall submit the same to the Head of
the Procuring Entity for approval.
(b) The Head of the Procuring Entity or his duly authorized

representative, upon receipt of the proposed Change
Order or Extra Work Order shall immediately instruct the
technical staff of the Procuring Entity’s to conduct an on-
the-spot investigation to verify the need for the Work to be
prosecuted. A report of such verification shall be submitted
directly to the Head of the Procuring Entity or his duly
authorized representative.
(c) The, Head of the Procuring Entity or his duly authorized

representative, after being satisfied that such Change
Order or Extra Work Order is justified and necessary, shall
review the estimated quantities and prices and forward
the proposal with the supporting documentation to the
Head of Procuring Entity for consideration.
(d) If, after review of the plans, quantities and estimated unit
cost of the items of work involved, the proper office of the
procuring entity empowered to review and evaluate
Change Orders or Extra Work Orders recommends
approval thereof, Head of the Procuring Entity or his duly
authorized representative, believing the Change Order or
Extra Work Order to be in order, shall approve the same.
(e) The timeframe for the processing of Variation Orders from

the preparation up to the approval by the Head of the
Procuring Entity concerned shall not exceed thirty (30)
calendar days.
44. Contract Completion
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Once the project reaches an accomplishment of ninety five (95%) of
the total contract amount, the Procuring Entity may create an
inspectorate team to make preliminary inspection and submit a punch-
list to the Contractor in preparation for the final turnover of the project.
Said punch-list will contain, among others, the remaining Works, Work
deficiencies for necessary corrections, and the specific duration/time
to fully complete the project considering the approved remaining
contract time. This, however, shall not preclude the claim of the
Procuring Entity for liquidated damages.
45. Suspension of Work

45.1. The Procuring Entity shall have the authority to suspend the work
wholly or partly by written order for such period as may be
deemed necessary, due to force majeure or any fortuitous
events or for failure on the part of the Contractor to correct bad
conditions which are unsafe for workers or for the general public,
to carry out valid orders given by the Procuring Entity or to
perform any provisions of the contract, or due to adjustment of
plans to suit field conditions as found necessary during
construction. The Contractor shall immediately comply with such
order to suspend the work wholly or partly.
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.
(b) Requisite construction plans which must be owner-

furnished are not issued to the contractor precluding any
work called for by such plans.
(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.
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(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 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 effective order of suspending
operation and the order to resume work shall be allowed the
Contractor by adjusting the contract time accordingly.
46. Payment on Termination

46.1. If the Contract is terminated because of a fundamental breach
of Contract by the Contractor, the Procuring Entity’s
Representative shall issue a certificate for the value of the work
done and Materials ordered less advance payments received
up to the date of the issue of the certificate and less the
percentage to apply to the value of the work not completed, as
indicated in the SCC. Additional Liquidated Damages shall not
apply. If the total amount due to the Procuring Entity exceeds
any payment due to the Contractor, the difference shall be a
debt payable to the Procuring Entity.
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.
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47. Extension of Contract Time
47.1. Should the amount of additional work of any kind or other
special circumstances of any kind whatsoever occur such as to
fairly entitle the contractor to an extension of contract time, the
Procuring Entity shall determine the amount of such extension;
provided that the Procuring Entity is not bound to take into
account any claim for an extension of time unless the Contractor
has, prior to the expiration of the contract time and within thirty
(30) calendar days after such work has been commenced or
after the circumstances leading to such claim have arisen,
delivered to the Procuring Entity notices in order that it could
have investigated them at that time. Failure to provide such
notice shall constitute a waiver by the Contractor of any claim.
Upon receipt of full and detailed particulars, the Procuring Entity
shall examine the facts and extent of the delay and shall extend
the contract time completing the contract work when, in the
Procuring Entity’s opinion, the findings of facts justify an
extension.
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.
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
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Entity, non-acquisition of permit to enter private properties 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 Head of the Procuring Entity. 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.
48. Price Adjustment

Except for extraordinary circumstances as determined by NEDA and
approved by the GPPB, no price adjustment shall be allowed.
Nevertheless, 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.
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.
50. Taking Over

The Procuring Entity shall take over the Site and the Works within seven
(7) days from the date the Procuring Entity’s Representative issues a
certificate of Completion.
51. Operating and Maintenance Manuals

51.1. If “as built” Drawings and/or operating and maintenance
manuals are required, the Contractor shall supply them by the
dates stated in the SCC.
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
82
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
Notes on the Special Conditions of Contract
Similar to the Section III. Bid Data Sheet, the clauses in this Section are
intended to assist the Procuring Entity in providing contract-specific
information in relation to corresponding clauses in the GCC.
The provisions of this Section complement the GCC, specifying contractual
requirements linked to the special circumstances of the Procuring Entity,
the Procuring Entity’s country, the sector, and the Works procured. In
(a) Information that complements provisions of Section IV. General
Conditions of Contract must be incorporated.
(b) Amendments and/or supplements to provisions of Section IV.
General Conditions of Contract, as necessitated by the
circumstances of the specific project, must also be incorporated.
However, no special condition which defeats or negates the general intent
and purpose of the provisions of Section IV. General Conditions of Contract
should be incorporated herein.
For foreign-assisted projects, the Special Conditions of Contract to be used
is provided in Section X-Foreign-Assisted Projects.
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Special Conditions of Contract
GCC Clause
1.16 The Intended Completion Date is 66 working days.
1.21 The Procuring Entity is City Government of San Fernando, La
Union.
1.22 The Procuring Entity’s Representative is
HON. PABLO C. ORTEGA
City Mayor
City of San Fernando, La Union
Telephone No.: +63 72 888-6906
Telefax: +63 72 888-6907
E-mail: [email protected]
1.23 The –Site is located at Barangay Carlatan and is defined in
drawings
1.27 The Start Date is __________
1.30 The Works consist of
Excavation for structures (includes
1.21 lot
septic tank) and clearing of sites 1.00
REINFORCING STEEL 11.55 pcs
295.00
STRUCTURAL CONCRETE 9.66 cu.m.
18.01
FORMWORKS AND SCAFFOLDINGS 6.49 L.S.
ROOF FRAMING WORKS 12.04 L.S.
DOORS, WINDOWS, RAILINGS, and TILE WORKS 21.02 L.S.
ROOFING WORKS 8.61 ln.m.
97.00
CEILING WORKS 2.69 sq.m.
54.90
MASONRY WORKS 10.61 sq.m
134.10
ELECTRICAL WORKS 2.46 L.S.
PAINTING WORKS 4.27 L.S.
Sanitary / Plumbing Works of CR and
5.64 L.S.
Kitchennette
SEPTIC VAULT 3.75
2.2 If different dates are specified for completion of the Works
by section (“sectional completion”), these dates should be
listed here
5.1 The Procuring Entity shall give possession of all parts of the
Site to the Contractor _____________
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Tinsmithry 5 Carpenters 3
Plumber 2 Steelman 3
Engineers 1 Masons 5
Foreman 1 Welder 2
Skilled 5 Mixer Optr 1
Driver 1 Electrician 2
Painter 3 Laborers 10
6.5 The Contractor shall employ the following Key Personnel:
[List key personnel by name and designation]
7.4(c) Specify additional conditions, if any, that must be met prior

to the release of the performance security, otherwise, state
“No further instructions”.
10 The site investigation reports are: [list here or state none]
12.5 Select one, delete the other.
In case of permanent structures, such as buildings of types 4

and 5 as classified under the National Building Code of the
Philippines and other structures made of steel, iron, or
concrete which comply with relevant structural codes (e.g.,
DPWH Standard Specifications), such as, but not limited to,
steel/concrete bridges, flyovers, aircraft movement areas,
ports, dams, tunnels, filtration and treatment plants,
sewerage systems, power plants, transmission and
communication towers, railway system, and other similar
permanent structures: Fifteen (15) years.
13 State here “No additional provision.” or, if the Contractor is
a joint venture, “All partners to the joint venture shall be
jointly and severally liable to the Procuring Entity.”
18.3(h)(i) No further instructions.
21.2 The Arbiter is: [Insert name]
[Insert address]
Dayworks are applicable at the rate shown in the

Contractor’s original Bid.
34.3 The Funding Source is the Government of the Philippines.
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39.1 The amount of the advance payment is [insert amount as
percentage of the Contract Price and schedule of
payment]
40.1 Materials and equipment delivered on the site but not
completely put in place shall be included for payment.
51.1 The date by which operating and maintenance manuals
are required is [date].
The date by which “as built” drawings are required is

[date].
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 [amount in local currency].
87
Section VI. Specifications
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.
There are considerable advantages in standardizing General Specifications

for repetitive Works in recognized public sectors, such as highways, ports,
railways, urban housing, irrigation, and water supply, in the same country or
region where similar conditions prevail. The General Specifications should
cover all classes of workmanship, materials, and equipment commonly
involved in construction, although not necessarily to be used in a particular
Works Contract. Deletions or addenda should then adapt the General
Specifications to the particular Works.
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.
88
Sample Clause: Equivalency of Standards and Codes
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 drafting the Bidding Documents. They should not be included in
the final Bidding Documents.
89
Section VII. Drawings
90
Section VIII. Bill of Quantities
Notes on the Bill of Quantities

Objectives
The objectives of the Bill of Quantities are:
(a) to provide sufficient information on the quantities of Works to be

performed to enable Bids to be prepared efficiently and accurately;
and
(b) when a Contract has been entered into, to provide a priced Bill of
Quantities for use in the periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of

Quantities in sufficient detail to distinguish between the different classes of
Works, or between Works of the same nature carried out in different
locations or in other circumstances which may give rise to different
considerations of cost. Consistent with these requirements, the layout and
content of the Bill of Quantities should be as simple and brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of

unforeseen work, outside the items included in the Bill of Quantities, is high.
To facilitate checking by the Entity of the realism of rates quoted by the
Bidders, the Daywork Schedule should normally comprise the following:
(a) A list of the various classes of labor, materials, and Constructional

Plant for which basic daywork rates or prices are to be inserted by
the Bidder, together with a statement of the conditions under which
the Contractor will be paid for work executed on a daywork basis.
(b) Nominal quantities for each item of Daywork, to be priced by each

Bidder at Daywork rates as Bid. The rate to be entered by the Bidder
against each basic Daywork item should include the Contractor’s
profit, overheads, supervision, and other charges.
Provisional Sums
A general provision for physical contingencies (quantity overruns) may be

made by including a provisional sum in the Summary Bill of Quantities.
Similarly, a contingency allowance for possible price increases should be
provided as a provisional sum in the Summary Bill of Quantities. The
91
inclusion of such provisional sums often facilitates budgetary approval by
avoiding the need to request periodic supplementary approvals as the
future need arises. Where such provisional sums or contingency
allowances are used, the SCC should state the manner in which they will
be used, and under whose authority (usually the Procuring Entity’s
Representative’s).
The estimated cost of specialized work to be carried out, or of special

goods to be supplied, by other contractors (refer to GCC Clause 8) should
be indicated in the relevant part of the Bill of Quantities as a particular
provisional sum with an appropriate brief description. A separate
procurement procedure is normally carried out by the Procuring Entity to
select such specialized contractors. To provide an element of competition
among the Bidders in respect of any facilities, amenities, attendance, etc.,
to be provided by the successful Bidder as prime Contractor for the use
and convenience of the specialist contractors, each related provisional
sum should be followed by an item in the Bill of Quantities inviting the
Bidder to quote a sum for such amenities, facilities, attendance, etc.
These Notes for Preparing a Bill of Quantities are intended only as

information for the Procuring Entity or the person drafting the Bidding
Documents. They should not be included in the final documents.
92
Section IX. Bidding Forms
TABLE OF CONTENTS
Bid Form ..................................................................................................... 94
Form of Contract Agreement ............................................................... 96
Omnibus Sworn Statement .................................................................... 98
93
Bid Form
Date: ______________________
IAEB2 No: __________________
To: [name and address of PROCURING ENTITY]

Address: [insert address]
We, the undersigned, declare that:
(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 in item (d)
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;
2 If ADB, JICA and WB funded projects, use IFB.
94
(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 Evaluated
Bid or any other Bid that you may receive.
Name:
In the capacity of:
Signed:
Duly authorized to sign the Bid for and on behalf of:
Date: ___________
95
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.
NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:
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 part of this Agreement, to wit:
(a) General and Special Conditions of Contract;

(b) Drawings/Plans;
(c) Specifications;
(d) Invitation to Apply for Eligibility and to Bid;
(e) Instructions to Bidders;
(f) Bid Data Sheet;
(g) Addenda and/or Supplemental/Bid Bulletins, if any;
(h) Bid form, including all the documents/statements
contained in the Bidder’s bidding envelopes, as annexes;
(i) Eligibility requirements, documents and/or statements;
(j) Performance Security;
(k) Credit line issued by a licensed bank, if any;
(l) Notice of Award of Contract and the Bidder’s conforme
thereto;
(m) Other contract documents that may be required by
existing laws and/or the Entity.
3. In consideration of the payments to be made by the Entity to the

Contractor as hereinafter mentioned, the Contractor hereby
96
covenants with the Entity to execute and complete the Works
and remedy any defects therein in conformity with the provisions
of this Contract in all respects.
4. The Entity hereby covenants to pay the Contractor in

consideration of the execution and completion of the Works and
the remedying of defects wherein, the Contract Price or such
other sum as may become payable under the provisions of this
Contract at the times and in the manner prescribed by this
Contract.
IN WITNESS whereof the parties thereto have caused this Agreement to

be executed the day and year first before written.
Signed, sealed, delivered by the (for the Entity)
Signed, sealed, delivered by the (for the

Contractor).
Binding Signature of PROCURING ENTITY
________________________________________________
Binding Signature of Contractor
_____________________________________________
[Addendum showing the corrections, if any, made during the Bid evaluation
should be attached with this agreement]
97
Omnibus Sworn Statement
REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.
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:
1. Select one, delete the other:
If a sole proprietorship: I am the sole proprietor of [Name of Bidder] with

office address at [address of Bidder];
If a partnership, corporation, cooperative, or joint venture: I am the

duly authorized and designated representative of [Name of Bidder]
with office address at [address of Bidder];
2. Select one, delete the other:
If a sole proprietorship: As the owner and sole proprietor of [Name of

Bidder], I have full power and authority to do, execute and perform
any and all acts necessary to represent it in the bidding for [Name of
the Project] of the [Name of the Procuring Entity];
If a partnership, corporation, cooperative, or joint venture: I am

granted full power and authority to do, execute and perform any and
all acts necessary and/or to represent the [Name of Bidder] in the
bidding as shown in the attached [state title of attached document
showing proof of authorization (e.g., duly notarized Secretary’s
Certificate issued by the corporation or the members of the joint
venture)];
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;
4. Each of the documents submitted in satisfaction of the bidding
requirements is an authentic copy of the original, complete, and all
statements and information provided therein are true and correct;
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: I am 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;
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
8. [Name of Bidder] is aware of and has undertaken the following

responsibilities as a Bidder:
a) Carefully examine all of the Bidding Documents;
b) Acknowledge all conditions, local or otherwise, affecting the

implementation of the Contract;
c) Made an estimate of the facilities available and needed for the

contract to be bid, if any; and
d) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name

of the Project].
IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__
at ____________, Philippines.
_____________________________________
Bidder’s Representative/Authorized
Signatory
[JURAT]
* This form will not apply for WB funded projects.

Bid-Securing Declaration
REPUBLIC OF THE PHILIPPINES)

CITY OF __________________ ) S.S.
x-----------------------------------------------x
BID-SECURING DECLARATION
Invitation to Bid/Request for Expression of Interest No.6: [Insert reference number]
To: [Insert name and address of the Procuring Entity]
I/We, the undersigned, declare that:
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 Declaration8, if I/we have
committed any of the following actions:
i. Withdrawn my/our Bid during the period of bid validity required in the
Bidding Documents; or
ii. Fail of refuse to accept the award and enter into contract or perform any
and all acts necessary to the execution of the Contract, in accordance
with the Bidding Documents after having been notified of your
acceptance of our Bid during the period of bid validity.
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;
_________________________
6 Select one and delete the other.
7 Select one and delete the other. Adopt same instruction for similar terms throughout the
document.
8 Issued by the GPPB through GPPB Resolution 03-2012 on 27 January 2012
(c) I am/we are declared as the bidder with the Lowest Calculated and
Responsive Bid/Highest Rated and Responsive Bid9, and I/we have furnished
the performance security and signed the Contract.
IN WITNESS WHEREOF, I/We have hereunto set my/our hand/s this _____ day of
[month] [year] at [place of execution].
[Insert NAME OF BIDDER’S AUTHORIZED REPRESENTATIVE]
[Insert signatory’s legal capacity]
Affiant
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 ___________.
Witness my hand and seal this ________ day of [month] [year].
NAME OF NOTARY PUBLIC
Serial No. of Commission_____________

Notary Public for _______ until _______
Roll of Attorneys No. ____
PTR No. ___[date issued], [place issued]
IBP No. ___[date issued], [place issued]
Doc. No. __________

Page No. __________
Book No. __________
Series of __________
_________________________
9 Select one and delete the other.
Section X. Foreign-Assisted Projects
Notes on Foreign-Assisted Projects
information for foreign-assisted projects of the Asian Development Bank
(ADB), the Japan International Cooperation Agency (JICA), and the World
Bank.
(a) If the Funding Source is ADB, the Procuring Entity should use the ADB Bid
Data Sheet and ADB Special Conditions of Contract.
(b) If the Funding Source is JICA, the Procuring Entity should use Section III.
Bid Data Sheet and Section V. Special Conditions of Contract, both of
the GOP.
(c) If the Funding Source is World Bank, the Procuring Entity should use the
World Bank Bid Data Sheet and the World Bank Special Conditions of
Contract.
The Procuring Entity shall use these PBDs with minimum changes as
necessary to address project-specific conditions. Any such changes shall
be introduced only through the Bid Data Sheet or through the Special
Conditions of Contract, and not by introducing changes in the standard
wording of the Instructions to Bidders and the General Conditions of
Contract.
The Procuring Entity shall allow the Bidders sufficient time to study the
Bidding Documents, prepare and complete responsive bids, and submit
their bids. A period of at least 30 days for bid preparation shall be required.
Notes on the Invitation to Bid

The Invitation to Bid provides information that enables potential Bidders to
decide whether to participate in the procurement at hand. The Invitation
to Bid shall be:
(a) Advertised at least once in a newspaper of general nationwide

circulation which has been regularly published for at least two (2)
years before the date of issue of the advertisement, subject to
Sections 21.2.2 of the IRR of R.A. 9184;
(b) Posted continuously in the Philippine Government Electronic

Procurement System (PhilGEPS) website, the website of the Procuring
Entity concerned, if available, and the website prescribed by the
foreign government/foreign or international financing institution, if
applicable, from the time the Invitation to Bid is advertised until the
deadline for the submission and receipt of bids; and
(c) Posted at any conspicuous place reserved for this purpose in the
premises of the Procuring Entity concerned from the time the
Invitation to Bid is advertised until the deadline for the submission and
receipt of bids, as certified by the head of the Bids and Awards
Committee (BAC) Secretariat of the Procuring Entity concerned.
Apart from the essential items listed in the Bidding Documents, the Invitation
to Bid should also indicate the following:
(a) The date of availability of the Bidding Documents, which shall be

from the time the Invitation to Bid is first advertised/posted until the
deadline for the submission and receipt of bids.
(b) The place where the Bidding Documents may be purchased or the
website where it may be downloaded.
(c) The deadline for the submission and receipt of bids from the last day
of posting of the Invitation to Bid; and
(d) Any important bid evaluation criteria.
The Invitation to Bid should be incorporated into the Bidding Documents.

The information contained in the Invitation to Bid must conform to the
Bidding Documents and in particular to the relevant information in the BDS.
Notes on the Bid Data Sheet

information in relation to the corresponding clauses in the ITB, and has to
be prepared for each specific procurement.
The PROCURING ENTITY should specify in the BDS information and

requirements specific to the circumstances of the Procuring Entity, the
processing of the procurement, the applicable rules regarding Bid price
and currency, and the Bid evaluation criteria that will apply to the Bids. In
(a) Information that specifies and complements provisions of Section II.

Instructions to Bidders must be incorporated.
(b) Amendments and/or supplements, if any, to provisions of Section II.

Instructions to Bidders as necessitated by the circumstances of the
specific procurement, must also be incorporated.
Notes on the Special Conditions of the Contract

Similar to the Section III. Bid Data Sheet, the clauses in this Section are
intended to assist the Procuring Entity in providing contract-specific
information in relation to corresponding clauses in the GCC.
The provisions of this Section complement the GCC, specifying contractual

requirements linked to the special circumstances of the Procuring Entity,
the Procuring Entity’s country, the sector, and the Works procured. In
(a) Information that complements provisions of Section IV. General

Conditions of Contract must be incorporated.
(b) Amendments and/or supplements to provisions of Section IV.

General Conditions of Contract, as necessitated by the
circumstances of the specific project, must also be incorporated.
However, no special condition which defeats or negates the general intent

and purpose of the provisions of Section IV. General Conditions of Contract
should be incorporated herein.
TABLE OF CONTENTS
INVITATION TO BID FOR FOREIGN-ASSISTED PROJECTS .................................. 107

ASIAN DEVELOPMENT BANK BID DATA SHEET .............................................. 110
ASIAN DEVELOPMENT BANK SPECIAL CONDITIONS OF CONTRACT.................. 116
WORLD BANK SPECIAL CONDITIONS OF CONTRACT..................................... 124
Invitation to Bid for Foreign-Assisted Projects
[Letterhead of the Procuring Entity]

INVITATION TO BID FOR [Insert name of Project]
1. The Government of the Philippines (GOP) [has received/has applied

for/intends to apply for] a [Loan//Grant] from the [state the foreign
government/foreign or international financing institution (e.g., Asian
Development Bank, Japan International Cooperation Agency, or World
Bank)] toward the cost of [insert name of project], and it intends to
apply part of the proceeds of this [loan//grant] to payments under the
contract for [insert name/no. of contract].
2. The [insert name of Procuring Entity] now invites bids for [insert brief
description of Works to be procured].3 Completion of the Works is
required [insert the required completion date or expected contract
duration]. Bidders should have completed, within ________ (__), a
contract similar to the Project. The description of an eligible bidder is
contained in the Bidding Documents, particularly, in Section II.
Instructions to Bidders.
3. Bidding will be conducted in accordance with relevant procedures for

open competitive bidding as specified in the IRR of RA 9184 (R.A. 9184),
with some amendments, as stated in these bidding documents and is
open to all bidders from eligible source countries as defined in the
applicable procurement guidelines of the [state the foreign
government/foreign international financing institution concerned )]. The
contract shall be awarded to the Lowest Calculated Responsive Bidder
(LCRB) who was determined as such during post-qualification. The
approved budget for the contract (ABC) is [insert here the amount of
the ABC].
[If ADB-funded project, please do not indicate the ABC in this Invitation
to Bid.]
4. Interested bidders may obtain further information from [insert name of

the Procuring Entity] and inspect the Bidding Documents at the address
given below from [insert office hours].
3 A brief description of the scope of Works should be provided, including quantities, location of project, and
other information necessary to enable potential bidders to decide whether or not to respond to the invitation.
5. A complete set of Bidding Documents may be purchased by the
interested bidders on [insert date of availability of Bidding Documents]
from the address below and upon payment of a nonrefundable fee for
the bidding documents in the amount [ insert amount in pesos].
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, as applicable, provided that bidders
shall pay the nonrefundable fee for the Bidding Documents not later
than the submission of their bids.
6. The [insert name of the Procuring Entity] will hold a Pre-Bid Conference
on [insert time and date] at [insert address for Pre-Bid Conference, if
applicable], which shall be open to all interested parties.
7. Bids must be delivered to the address below on or before [insert date

and time] at [insert address for submission and receipt of bids]. All bids
must be accompanied by a bid security in the amount of __________ in
[insert the acceptable form].
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. [Insert such other necessary information deemed relevant by the

Procuring Entity]
9. The [insert name of the Procuring Entity] reserves the right to accept or
reject any bid, to annul the bidding process, and to reject all bids at
any time prior to contract award, without thereby incurring any liability
to the affected bidder or bidders.
10. For further information, please refer to:
[Insert name of officer]

[Insert name of office]
[Insert postal address] and/or [Insert street address]
[Insert telephone number, indicate city code]
[Insert contact’s email address]
[Insert facsimile number]
[Insert website address, if applicable]
_________________________________
[Insert Name and Signature of the
BAC Chairperson or the
Authorized Representative of the
BAC Chairperson]
Asian Development Bank Bid Data Sheet
ITB Clause
1.1 The PROCURING ENTITY is [insert name of purchasing

organization].
The name of the Contract is [insert the name of the contract].
The identification number of the Contract is [insert identification

number of the contract].
2 The Funding Source is the Asian Development Bank (ADB)

through [indicate the Loan/Grant No.] in the amount of [insert
amount of funds].
The name of the Project is [Insert the name of the project or

“Not Applicable”]
Payments by the Foreign Funding Source will be made only at

the request of the PROCURING ENTITY and upon approval by
the Funding Source in accordance with the terms and
conditions of the Loan Agreement between the PROCURING
ENTITY and the Funding Source in accordance with the
International or Executive Agreement dated
______________________ (hereinafter called the "Loan
Agreement").
The payments will be subject in all respect to the terms and

conditions of that Loan Agreement and the applicable law. No
party other than the PROCURING ENTITY shall derive any rights
from the Loan Agreement or have any claim to the funds.
3.1 ADB’s anticorruption policy requires borrowers (including

beneficiaries of ADB-financed activity), as well as bidders,
suppliers, and contractors under ADB-financed contracts, to
observe the highest standard of ethics during the procurement
and execution of such contracts. In pursuance of this policy,
ADB:
(a) defines, for the purposes of this provision, the terms set
forth below as follows:
(i) “corrupt practice” means the offering, giving,

receiving, or soliciting, directly or indirectly,
anything of value to influence improperly the
actions of another party;
(ii) “fraudulent practice” means any act or omission,

including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party
to obtain a financial or other benefit or to avoid an
obligation;
(iii) “coercive practice” means impairing or harming,

or threatening to impair or harm, directly or
indirectly, any party or the property of the party to
influence improperly the actions of a party;
(iv) “collusive practice” means an arrangement

between two or more parties designed to achieve
an improper purpose, including influencing
improperly the actions of another party;
(b) will reject a proposal for award if it determines that the

bidder recommended for award has, directly or through
an agent, engaged in corrupt, fraudulent, collusive, or
coercive practices in competing for the contract in
question;
(c) will cancel the portion of the financing allocated to a

contract if it determines at any time that representatives
of the borrower or of a beneficiary of ADB-financing
engaged in corrupt, fraudulent, collusive, or coercive
practices during the procurement or the execution of
that contract, without the borrower having taken timely
and appropriate action satisfactory to ADB to remedy
the situation;
(d) will sanction a firm or an individual, at any time, in

accordance with ADB’s Anticorruption Policy and
Integrity Principles and Guidelines (both as amended
from time to time), including declaring ineligible, either
indefinitely or for a stated period of time, to participate
in ADB-financed or ADB-administered activities or to
benefit from an ADB-financed or ADB administered
contract, financially or otherwise, if it at any time
determines that the firm or individual has, directly or
through an agent, engaged in corrupt, fraudulent,
collusive, or coercive or other prohibited practices.
5.1 Eligible Bidders are as described in ADB Procurement

Guidelines as stated in the Loan Agreement and as described
on ADB’s web page www.adb.org
An Eligible Bidder shall be deemed to have the nationality of a

country if it is a citizen or constituted or incorporated, and
operates in conformity with the provisions of the laws of that
country.
5.2 Eligible Bidders are as described in ADB Procurement

Guidelines as stated in the Loan Agreement and as described
on ADB’s web page www.adb.org.
5.4 To be considered eligible and qualified a Bidder must have a

successful experience as prime contractor in the construction
of at least one (1) work of a nature and complexity equivalent
to the Works generally in the last five (5) years (to comply with
this requirement, single works cited should be at least eighty
percent (80%) of value of estimated contract cost of Works
under bid), such being verifiable from completion certificates;
and have an annual turnover from all works averaged over the
last three (3) years equal to one hundred percent (100%) of the
estimated value of the contract to be bid.
For this purpose, similar contracts shall refer to [insert description

of similar contracts].
NOTE: ADB may set forth a different requirement depending on

the nature, method, or complexity of the contract to be bid
provided said requirement is clearly stated in the Bidding
Documents.
8.1 Instruction is the same as the GOP Bid Data Sheet
9.1 The Procuring Entity will hold a pre-bid conference for this
Project on [State date and time] at [State address of venue].
NOTE: The pre-bid conference shall be held at least thirty (30)

receipt of bids.
12.1 The first envelope shall contain the following eligibility and
technical documents:
a. Eligibility Requirements
i. Registration Certification of the Company;
ii. List of relevant contracts that comply to the experience

requirement as specified in Section X BDS Clause 5.4
hereof;
iii. Audited financial statement for the past two years;
iv. In case of Joint Venture, the JV Agreement, if existing, or

a signed statement from the partner companies that
they will enter into a JV in case of award of contract;
b. Technical Documents
v. Project Requirements, which shall include the following:
(v.1) List of contractor’s personnel (viz, project

Manager, Project Engineers, Materials Engineers,
and Foremen), to be assigned to the contract to be
bid, with their complete qualification and
experience data; and
(v.2) List of contractor’s equipment units, which are

owned, leased, and/or under purchase agreements,
supported by certification of availability of
equipment from the equipment lessor/vendor for the
duration of the project;
vi. Bid security as required in the ITB;
vii. Sworn statement in accordance with Section 25.2(a)(iv)

of the IRR of RA 9184 and using the form prescribed in
Section VIII. Bidding Forms; and
viiii. A commitment from a Universal or Commercial Bank to

extend a credit line in favor of the bidder if awarded the
contract for the project.
Foreign bidders may submit the equivalent documents, if any,

issued by the country of the foreign bidder.

registration is recognized. Foreign bidders may submit the
equivalent documents, if any, issued by the country of the
foreign bidder. Such documents shall be translated in English.”
12.1(a)(iv) Foreign bidders may submit their valid Philippine Contractors

Accreditation Board (PCAB) license and registration for the
type and cost of the contract for this Project as a pre-condition
for award as provided in the Loan Agreement.
13.2 There is no ceiling for Financial Proposals.
15.4 If the contract is less than eighteen (18) months duration, state
"No further instructions."
If the contract is of over eighteen (18) months duration, insert

the appropriate special condition of contract and state the
following: Adjustments are authorized in accordance with the
price adjustment provisions specified in the GCC Clause 48.
21 Instruction is the same as the GOP Bid Data Sheet
24.2 During bid opening, if the first bid envelope lacks any of the
documents listed in the ADB BDS 12.1(a), the bid shall be
declared non-responsive but the documents shall be kept by
the Procuring Entity. Only the unopened price proposal shall
be returned to the Bidder.
27.3(b) Instruction is the same as the GOP Bid Data Sheet
27.4 There is no ceiling for Financial Proposals.
28.2(a) Instruction is the same as the GOP Bid Data Sheet
28.2(b) Instruction is the same as the GOP Bid Data Sheet
28.2(d) Instruction is the same as the GOP Bid Data Sheet
31.4(g) Instruction is the same as the GOP Bid Data Sheet

Asian Development Bank Special Conditions of Contract
GCC Clause
1.16 Instruction is the same as the GOP Special Condition of

Contract

Contract

Contract

Contract

Contract

Contract

Contract

Contract

Contract
7.4(c) Instruction is the same as the GOP Special Condition of

Contract
7.7 The Contractor shall be primarily and solely responsible for the
acts, defaults, and negligence of any subcontractor.

Contract
10 Instruction is the same as the GOP Special Condition of

Contract
12.3 In case the Contractor fails to comply with the preceding

paragraph, the Procuring Entity shall forfeit its performance
security. All payables of the GOP in the Contractor's favor shall
be offset to recover the costs.

Contract

Contract
18.3 (h) (i) In case it is determined prima facie by the Procuring Entity that
the Contractor has engaged, before or during the
implementation of the contract, in unlawful deeds and
behaviors relative to contract acquisition and implementation,
such as, but not limited to, corrupt, fraudulent, collusive and
coercive practices as defined in ITB Clause 3.1(a)

Contract

Contract

Contract

Contract
34.3 The Funding Source is the Asian Development Bank.

Contract
40.1 Materials and equipment delivered on the site but not

completely put in place shall be included for payment.
40.3 If the Procuring Entity delays payment, the Contractor shall be

paid interest on such payment. Interest shall be calculated
from the date by which the payment should have been made
up to the date when the late payment is made at the annual
rate of [insert percentage rate].
48 The Contract [specify “is” or “is not”] subject to price

adjustment and the following information regarding
coefficients [specify “does” or “does not”] apply.
If bid payment is in more than one currency, the coefficients

for adjustment of prices are:
(a) For currency [type of currency]:
(i) [percent] percent non-adjustable element (coefficient

A).
(ii) [percent] percent adjustable element (coefficient B).
(b) For currency [type of currency]:
(i) [percent] percent non-adjustable element (coefficient

A).
(ii) [percent] percent adjustable element (coefficient B).
The Procuring Entity’s Representative shall adjust the Contract

Price if taxes, duties, and other levies are changed within the
period between twenty eight (28) days before the submission
of Bids for the Contract and the date of the last Completion
certificate. The adjustment shall be the change in the amount
of tax payable by the Contractor, provided such changes are
not already reflected in the Contract Price or are a result of
GCC Clause 48.
If the bid price is wholly in Philippine peso, the above formula

on the coefficients for adjustment of prices shall not apply.
NOTE: Adjustments are authorized in accordance with the

price adjustment provisions specified in the GCC Clause 48 if
the contract is of over eighteen (18) months duration.

Contract

Contract
World Bank Bid Data Sheet
ITB Clause
1.1 The PROCURING ENTITY is [insert name of purchasing

organization].
The name of the Contract is [insert the name of the contract].
The identification number of the Contract is [insert identification

number of the contract].
2 The Funding Source is World Bank through [indicate the

Loan/Grant No.] in the amount of [insert amount of funds].
The name of the Project is [Insert the name of the project]
Payments by the Foreign Funding Source will be made only at

the request of the PROCURING ENTITY and upon approval by
the Funding Source in accordance with the terms and
conditions of the Loan Agreement No. _______________
between the PROCURING ENTITY and the Funding Source in
accordance with the International or Executive Agreement
dated ___________ (hereinafter called the "Loan Agreement").
The payments will be subject in all respect to the terms and

conditions of that Loan Agreement and the applicable law. No
party other than the PROCURING ENTITY shall derive any rights
from the Loan Agreement or have any claim to the funds.
3.1 Instruction is the same as GOP Bid Data Sheet
5.1 The Loan/Grant Agreement states in its Procurement NCB

Annex that “foreign bidders shall be eligible to bid xxx”. Eligible
Bidders are as defined in the Guidelines: Procurement under
IBRD Loans and IDA Credits as stated in the Loan Agreement.
5.2 The Loan/Grant Agreement states in its Procurement NCB

Annex that “foreign bidders shall be eligible to bid xxx”. Eligible
Bidders are as defined in the Guidelines: Procurement under
IBRD Loans and IDA Credits as stated in the Loan Agreement.
5.4 To be considered eligible and qualified a Bidder must have a

successful experience as prime contractor in the construction
of at least one (1) work of a nature and complexity equivalent
to the Works generally in the last five (5) years (to comply with
this requirement, single works cited should be at least eighty
percent (80%) of value of estimated contract cost of Works
under bid), such being verifiable from completion certificates;
and have an annual turnover from all works averaged over the
last three (3) years equal to one hundred percent (100%) of the
estimated value of the contract to be bid.
For this purpose, similar contracts shall refer to [insert description

of similar contracts or state “No further instructions”].
NOTE: World Bank may set forth a different requirement

depending on the nature, method, or complexity of the
contract to be bid provided said requirement is clearly stated
in the Bidding Documents.
9.1 The Procuring Entity will hold a pre-bid conference for this
Project on [State date and time] at [State address of venue].
NOTE: The pre-bid conference shall be held at least thirty (30)

receipt of bids.
10.3 This clause does not apply to WB funded projects. The BAC is
responsible to send any amendments and/or clarifications on
the provisions of the bidding documents.
12.1 During Bid opening, if the first bid envelope lacks any of the
following documents, the bid shall be declared non-responsive.
The first envelope shall contain the following required

documents:
a. Registration Certification of the Company

b. List of relevant contracts as specified in ITB Clause 5.4
hereof;
c. Audited financial statement for the past two years
d. In case of Joint Venture, the JV Agreement, if existing, or
a signed Statement from the partner companies that
they will enter into a JV in case of award of contract.
e. Bid security as required in the ITB;
f. Project Requirements, which shall include the following:

(i) List of contractor’s personnel (viz, project
Manager, Project Engineers, Materials Engineers,
and Foremen), to be assigned to the contract to be
bid, with their complete qualification and
experience data; and
(ii) List of contractor’s equipment units, which are

owned, leased, and/or under purchase agreements,
supported by certification of availability of
equipment from the equipment lessor/vendor for the
duration of the project; and
g. Sworn statement in accordance with Section 25.2(a)(iv)

of the IRR of RA 9184 and using the form prescribed in
Section VIII. Bidding Forms; and
h. A commitment from a Universal or Commercial Bank to

extend a credit line in favor of the bidder if awarded the
contract for the project.
Notwithstanding the BAC’s declaration of non-responsiveness

of the first bid envelope, the financial proposals contained in
the second bid envelopes of all the bidders shall be read. The
first and second envelopes shall not be returned to the bidders.


registration is recognized”.

12.1(a)(iv) Foreign bidders may submit their valid Philippine Contractors

Accreditation Board (PCAB) license and registration for the
type and cost of the contract for this Project as a pre-condition
for award as provided in the Loan Agreement.
There is no ceiling for Financial Proposals.
OR
The ABC is [insert amount]. Any bid with a financial

component exceeding this amount shall not be accepted.
NOTE: Subject to prior concurrence by the World Bank, for

foreign-funded procurement, a ceiling may be applied to bid
prices provided the following conditions are met:
a) Bidding Documents are obtainable free of charge on a

freely accessible website. If payment of Bidding Documents is
required by the procuring entity, payment could be made
upon the submission of bids.
b) 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 works) 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.
c) 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.
d) The procuring entity has established a system to monitor

and report bid prices relative to ABC and engineer’s/procuring
entity’s estimate.
e) The procuring entity has established a monitoring and

evaluation system for contract implementation to provide a
feedback on actual total costs of goods and works.

21 Instruction is the same as GOP Bid Data Sheet
24.2 During Bid opening, if the first envelope lacks any of the
documents listed in World Bank BDS 12.1(a), the bid shall be
declared non-responsive but the documents shall be kept by
the Procuring Entity. The financial proposals in the second
envelope of all the bidders shall be read for record purposes.
The first and second envelopes shall not be returned to the
bidders.
27.3(b) Instruction is the same as GOP Bid Data Sheet
27.4 A ceiling may be applied to bid prices provided the conditions

in BDS 13.2 above are met
28.2(b) If the winner is a foreign bidder, the requirement applies to

relevant Philippine tax only.
28.2(d) Instruction is the same as GOP Bid Data Sheet
31.4(g) Instruction is the same as GOP Bid Data Sheet

World Bank Special Conditions of Contract
SCC Clause

Contract
Instruction is the same as the GOP Special Condition of

1.21
Contract

Contract

Contract

Contract

Contract

Contract

Contract

Contract
7.4(c) Instruction is the same as the GOP Special Condition of

Contract

Contract

Contract

Contract

Contract
Contract

Contract
18.3 (h) (i) Instruction is the same as the GOP Special Condition of
Contract

Contract

Contract

Contract

Contract
34.3 The Funding Source is the World Bank.

Contract

Contract

Contract

Contract

Construction of of Barangay Health & Wellness Station, Barangay Carlatan

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Construction of of Barangay Health & Wellness Station, Barangay Carlatan

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PHILIPPINE BIDDING DOCUMENTS

(As Harmonized with Development Partners)

Government of the Republic of the Philippines

This PBDs is intended as a model for admeasurements (unit prices or

The Bidding Documents shall clearly and adequately define, among

In order to simplify the preparation of the Bidding Documents for each

Care should be taken to check the relevance of the provisions of the

(d) The cover should be modified as required to identify the Bidding

(e) If modifications must be made to bidding procedures, they can

SECTION I. INVITATION TO BID ..................................................................... 5

CONSTRUCTION OF BARANGAY HEALTH STATION

3. Bidding will be conducted through open competitive bidding procedures using

Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or

4. A complete set of Bidding Documents may be purchased by Bidders to the

It may also be downloaded from the website of the Philippine Government

7. For further information, please refer to:

Matters governing the performance of the Contractor, payments under the

1.2. The successful bidder will be expected to complete the Works by

3. Corrupt, Fraudulent, Collusive, and Coercive Practices

(i) "corrupt practice" means behavior on the part of

(ii) "fraudulent practice" means a misrepresentation of

(iii) “collusive practices” means a scheme or

(iv) “coercive practices” means harming or threatening

(v) “obstructive practice” is

(aa) deliberately destroying, falsifying, altering or

(bb) acts intended to materially impede the

(b) will reject a proposal for award if it determines that the

(c) will declare a firm ineligible, either indefinitely or for a

(a) A Bidder has controlling shareholders in common with

(b) A Bidder receives or has received any direct or indirect

(c) A Bidder has the same legal representative as that of

(d) A Bidder has a relationship, directly or through third parties,

(f) A Bidder who participated as a consultant in the

(g) A Bidder who lends, or temporary seconds, its personnel to

4.2. In accordance with Section 47 of the IRR of RA 9184, all Bidding

(a) If the Bidder is an individual or a sole proprietorship, to the

(b) If the Bidder is a partnership, to all its officers and members;

(c) If the Bidder is a corporation, to all its officers, directors,

(d) If the Bidder is a joint venture (JV), the provisions of items

Relationship of the nature described above or failure to comply

(a) Duly licensed Filipino citizens/sole proprietorships;

(c) Corporations duly organized under the laws of the

(d) Cooperatives duly organized under the laws of the

(e) Persons/entities forming themselves into a JV, i.e., a group

5.3. Government Corporate Entities may be eligible to participate

For this purpose, contracts similar to the Project shall be those

5.5. The Bidder must submit a computation of its Net Financial

The NFCC, computed using the following formula, must be at

NFCC = [(Current assets minus current liabilities) (K)] minus the

K = 10 for a contract duration of one year or less, 15 for a

6.2. The Bidder is responsible for the following:

(a) Having taken steps to carefully examine all of the Bidding

(b) Having acknowledged all conditions, local or otherwise,

(d) Having complied with its responsibility to inquire or secure

(e) Ensuring that it is not “blacklisted” or barred from bidding

(f) Ensuring that each of the documents submitted in

(g) Authorizing the Head of the Procuring Entity or its duly

(h) Ensuring that the signatory is the duly authorized

(i) Complying with the disclosure provision under Section 47 of