XXX XXX Airport Construction Project
Uploaded by
Kimberly Mae Borja NuestroXXX XXX Airport Construction Project
Uploaded by
Kimberly Mae Borja NuestroXXX/XX-7174-L-154-20
Page 1 of 2
24 June 2020
XXX
Municipality of XXX,
Province of XXX, Philippines
Attention : Mr. XXX
Project Manager
Subject : Subcontractor’s Claim to Contractor: Price Adjustment in Accordance
with the Approved Schedule and Certified in Payment Certificates
(IPC No. 2 to 17)
XXX XXX Airport Construction Project
Dear Mr. Ando,
This is further to the Subcontractor’s submission of claim for Price Adjustment under the
following correspondences (Attachment-1): (1) Revised Submission – XXX/XX-7174-L-006-20
dated 13 January 2020; and (2) Follow-up - XXX/XX-7174-L-050-20 dated 27 February 2020.
The Subcontractor hereby updates and revises its submission based on the following
commercial and technical considerations:
1. Work Accomplishment Amount is updated from value derived from Interim Payment
Certificates (IPC) 2 to 13 into considering the Contractor’s pending issuance IPCs 14 to
17 but already approved by the Engineer, which is amounting to Php
2,804,368,072.39 (see Attachment-2); but
2. Deductions are considered due to the Materials Purchased by XXXX amounting in total
of Php 250,257,205.68 (see Attachment-2), whereas includes: (1) Reconciled and
Agreed – Php 137,166,266.97; and (2) Under Reconciliation – Php 113,090,938.71;
3. The Total Escalation Amount is calculated based on the planned progress which should
have been completed by August 20018, using the approved planned S-Curve
SCH/G3/005_E (Attachment-3); and
4. Price adjustment for aggregates is excluded in the computation as the corresponding
indexes for Sand and Gravel has remained unchanged and based from Construction
Materials Wholesale Price Index for March 2014 (Source of Index);
Pursuant to the General Conditions of the Contract Clause 13 ‘Variations and Adjustments’, Sub-
Clause 13.8 ‘Adjustments for Changes in Cost’ (Attachment-4), Schedule of Adjustment Data
(Attachment-5), and Amendment to the Construction Subcontract Agreement (Attachment-6),
the Subcontractor hereby submits the Revised Claim for Price Adjustment (Attachment-7), in
Philippine Currency the amount equivalent to Two Hundred Thirty Million Seven
Hundred Twenty-Eight Thousand Eight Hundred Twenty-Eight Pesos and 90/100
Only (Php 230,728,828.90) inclusive of 12% VAT. The breakdown is as follows:
Total XXX Payable, Net of VAT >>> Php 206,007,882.95
12% VAT Inclusion >>> Php 24,720,945.95
Total XXX Payable with 12% VAT >>> Php 230,728,828.90
Furthermore, the initially computed payable amount for this claim is still based on the following
references:
a) SOURCE 1 (Attachment-8):
National Statistics Office, Industry and Trade Statistics Dept. Manila, Construction
Materials Wholesale Price Index (CMWPI) in the National Capital Region (NCR);
XXX/XX-7174-L-154-20
Page 2 of 2
https://psa.gov.ph/content/construction-materials-wholesale-price-index-national-
capital-region-2012100-june-2019; and
b) SOURCE 2 (Attachment-9):
i. WAGE ORDER No. NCR-19, "PROVIDING FOR A WAGE INCREASE IN THE
NATIONAL CAPITAL REGION", Regional Tripartite Wages and Productivity
Board, National Capital Region (NCR), Republic of the Philippines, Department
of Labor and Employment (DOLE);
ii. WAGE ORDER No. NCR-20, "PROVIDING FOR A WAGE INCREASE IN THE
NATIONAL CAPITAL REGION", Regional Tripartite Wages and Productivity
Board, National Capital Region (NCR), Republic of the Philippines, Department
of Labor and Employment (DOLE);
iii. WAGE ORDER No. NCR-21, "PROVIDING FOR A WAGE INCREASE IN THE
NATIONAL CAPITAL REGION", Regional Tripartite Wages and Productivity
Board, National Capital Region (NCR), Republic of the Philippines, Department
of Labor and Employment (DOLE); and
iv. WAGE ORDER No. NCR-22, "PROVIDING FOR A WAGE INCREASE IN THE
NATIONAL CAPITAL REGION", Regional Tripartite Wages and Productivity
Board, National Capital Region (NCR), Republic of the Philippines, Department
of Labor and Employment (DOLE)
The Subcontractor trusts that the above information is to the Contractor’s satisfaction. We shall
await for the Contractor’s prompt evaluation, approval and release of the payment for this
submitted Price Adjustment.
Very truly yours,
Project Manager
Enc: Attachment-1 Subcontractor’s Correspondences on Price Adjustment
Enc: Attachment-2 Summary of Accomplishment Based on IPC 2 to 17 Less Shifted Items
Enc: Attachment-3 Revised Programme and S-Curve – EAC/SCH/G3/005_E
Enc: Attachment-4 GCC Sub-Clause 13.8
Enc: Attachment-5 Schedule of Adjustment Data
Enc: Attachment-6 Amendment to the Construction Subcontract Agreement
Enc: Attachment-7 Revised Claim for Price Adjustment in Accordance with the Approved Schedule and
Enc: Attachment-7 Certified in Payment Certificates (IPC Nos. 2 to 17)
Enc: Attachment-8 Construction Materials Wholesale Price Index 2015 to 2019
Enc: Attachment-9 DOLE NCR Wage Orders 19 to 22
Enc: Attachment-10 Monthly Progress Summary in Accordance with the Approved Planned S-Curve
SCH/G3/005_E and Certified in Payment Certificates (IPC No. 2 to 13)