Republic of the Philippines

BIDS AND AWARDS COMMITTEE (BAC) FOR INFRASTRUCTURE

City Government of Baguio

Procurement of
INFRASTRUCTURE
PROJECTS

PROJECT TITLE: REMODELING OF MULTI-PURPOSE HALL,

ROOFING, WINDOW GRILLS, REPAINTING INSIDE &
OUTSIDE, INSATALLATION OF SIGNAGE AND
CONTSTRUCTION OF TANOD OUTPOST AT
CRESENCIA VILLAGE

PROJECT IDENTIFICATION NO. : 8918-25-060

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 Glossary of Acronyms, Terms, and Abbreviations
ABC – Approved Budget for the Contract.

ADR – Alternative Dispute Resolution.

ARCC – Allowable Range of Contract Cost.

BAC – Bids and Awards Committee.

BIR – Bureau of Internal Revenue.

BSP – Bangko Sentral ng Pilipinas.

CDA – Cooperative Development Authority.

COS – Contract of Service.

CPI – Consumer Price Index.

DOLE – Department of Labor and Employment.

DTI – Department of Trade and Industry.

GCC - General Conditions of Contract.

GFI – Government Financial Institution.

GOCC – Government-Owned and/or –Controlled Corporation.

GOP – Government of the Philippines.

GPPB – Government Procurement Policy Board.

HoPE – Head of Procuring Entity.

JO – Job Order.

IRR – Implementing Rules and Regulations of Republic Act No. 12009.

ITB – Instructions to Bidders.

LCB- Lowest Calculated Bid.

LCRB – Lowest Calculated Responsive Bid.

LGUs – Local Government Units.

LoC – Line of Credit

MAB – Most Advantageous Bid.

MARB – Most Advantageous Responsive Bid.

MEARB – Most Economically Advantageous Responsive Bid.

MYCA – Multi-Year Contracting Authority.

NFCC – Net Financial Contracting Capacity.

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NGA – National Government Agency.

PCAB – Philippine Contractors Accreditation Board.

PhilGEPS - Philippine Government Electronic Procurement System.

PSA – Philippine Statistics Authority.

RA No. – Republic Act Number.

SARB – Single Advantageous and Responsive Bid.

SCC - Special Conditions of Contract.

SCRB – Single Calculated and Responsive Bid.

SEARB – Single Economically Advantageous Responsive Bid.

SEC – Securities and Exchange Commission.

SLCC – Single Largest Completed Contract.

SRRB – Single Rated and Responsive Bid.

UN – United Nations.

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 Definition of Terms
Bid – a signed offer, proposal, or quotation submitted by a supplier, manufacturer, distributor,
contractor, consultant, or service provider in response to the requirements of the Procuring Entity
as stated in the Bidding Documents. (IRR of RA No. 12009, Section 5[c]).

Bidder – a supplier, manufacturer, distributor, contractor, consultant, and service provider,

whether public or private, who submits a Bid in response to the requirements of the Procuring
Entity as stated in the Bidding Documents. (IRR of RA No. 12009, Section 5[d]).

Bidding Documents – the documents issued by the Procuring Entity as the basis for Bids,
furnishing all information necessary to prospective bidder to prepare a Bid for the Goods,
Infrastructure Projects, and Consulting Services required by the Procuring Entity. (IRR of RA No.
12009, Section 5[e])

Bill of Quantities – a list of the specific items of the Work and their corresponding unit prices, lump
sums, and/or provisional sums.

Consulting Services – services for Infrastructure Projects and other types of projects or activities
of the government requiring adequate external technical and professional expertise that are
beyond the capability or capacity of the government to undertake such as, but not limited to: (i)
advisory and review services; (ii) pre-investment or feasibility studies; (iii) design; (iv) construction
supervision; (v) management and related services; and (vi) other technical services or special
studies. (IRR of RA No. 12009, Section 5[i]).

Contract – the agreement entered into between the Procuring Entity and the Contractor to
execute, complete, and maintain the Works and as recorded in the Contract Form signed by the
parties, including all attachments and appendices thereto and all documents incorporated by
reference therein.

Contract Price – the price stated in the Notice of Award and thereafter to be paid by the Procuring
Entity to the Contractor for the execution of the Works in accordance with this Contract.

Contract Time Extension (CTE) – the allowable period for the Contractor to complete the Works
in addition to the original Completion Date stated in this Contract.
Contractor – a natural or juridical entity whose proposal was accepted by the Procuring Entity and
to whom the Contract to execute the Work was awarded. Contractor as used in these Bidding
Documents may likewise refer to a supplier, distributor, manufacturer, or consultant.

Days – refers to calendar days; months to calendar months.

Dayworks – 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.

Defect – any part of the Works not completed in accordance with the Contract.

Defects Liability Certificate – the certificate issued by the Procuring Entity upon correction of
defects by the Contractor.

Defects Liability Period – the one (1) 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 its own expense.

Drawings – 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.

Effective Date of the Contract – the date indicated in the contract. However, the Contractor shall
commence performance of its obligations only upon receipt of the Notice to Proceed.
Foreign-funded Procurement or Foreign-Assisted Project – refers to the acquisition of Goods,
Consulting Services, and the contracting for Infrastructure Projects by the Government of the

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Philippines which are wholly or partly funded by foreign loans or grants pursuant to a Treaty or
International or Executive Agreement.

Funding Source – Organization named in the SCC.

Goods – refer to (i) all items, supplies, and materials, whether in the nature of equipment, furniture,
stationery, materials for construction, or personal property of any kind, needed in the transaction
of public businesses or in the pursuit of any government undertaking, project or activity; or (ii)
general support services which pertain to all types of services except Consulting Services and
Infrastructure Projects, such as the repair and maintenance of equipment and furniture, as well
as trucking, hauling, janitorial, security, and related or analogous services. Personnel Services or
individual COS or JO engagements do not fall under this definition; (IRR of RA No. 12009, Section
5[n]).

Infrastructure Projects – include the construction, improvement, rehabilitation, demolition, repair,

restoration, or maintenance of roads and bridges, railways, airports, seaports, communication
facilities, civil works components of information technology projects, irrigation, flood control and
drainage, water supply, sanitation, sewerage and solid waste management systems, shore
protection, energy/power and electrification facilities, national buildings, school buildings, hospital
buildings, and other related construction projects of the government. Also referred to as “civil
works” or “works;” (IRR of RA No. 12009, Section 5[r]).

Lot – refers to one or more infrastructure projects that are grouped or bundled together based on
factors, such as scope, location, or other relevant parameters, as determined by the End-User or
Implementing Unit of the Procuring Entity. Each lot is distinct within the project and may be
awarded as a separate contract.

Materials – refer to all supplies, including consumables, used by the Contractor for incorporation
in the Works.

Notice to Proceed – refers to a written notice issued by the Procuring Entity to the Contractor
requiring the latter to begin the commencement of the work not later than a specified or
determinable date.

Online submission – pertains to the submission of the bid for Infrastructure Projects and the bid
envelopes containing the technical and financial components of the bid through electronic means
or through the electronic bidding facility of the PhilGEPS, once available.

Permanent Works – refer to 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.

Plant – refers to the machinery, apparatus, and the like intended to form an integral part of the
Permanent Works.

Procuring Entity - the organization acquiring the Infrastructure Project, as named in the SCC.

Project – refers to a specific or identified procurement covering Goods, Infrastructure Projects or

Consulting Services. A Procurement Project shall be described, detailed, and scheduled in the
Project Procurement Management Plan prepared by the agency which shall be consolidated in
the Procuring Entity's Annual Procurement Plan.

Program of Work – refers to the big-picture plan and comprehensive schedule that details
construction-related tasks to ensure the timely and efficient delivery of the project.

Site Investigation Reports – refers to those that were included in the Bidding Documents and are
factual and interpretative reports about the surface and subsurface conditions at the Site.

Slippage – refers to 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.

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Simple Infrastructure Projects – refers to construction, improvement, rehabilitation, demolition,
repair, restoration, or maintenance of structures, technical facilities and systems with an Approved
Budget for the Contract (ABC) not exceeding Ten Million Pesos (PhP
10,000,000.00) built at the community level for the sustenance of lives and livelihoods of the
population living in a community and built according to the needs and aspirations of the community
population.

Verified Report – the report submitted by the Implementing Unit to the HoPE setting forth its
findings as to the existence of grounds or causes for termination and explicitly stating its
recommendation for the issuance of a Notice to Terminate.

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 Republic of the Philippines
BIDS AND AWARDS COMMITTEE (BAC) FOR INFRASTRUCTURE
City Government of Baguio

Section I. Invitation to Bid

Invitation to Bid for

REMODELING OF MULTI-PURPOSE HALL, ROOFING, WINDOW GRILLS, REPAINTING

INSIDE & OUTSIDE, INSATALLATION OF SIGNAGE AND CONTSTRUCTION OF TANOD
OUTPOST AT CRESENCIA VILLAGE, WITH PROJECT IDENTIFICATION NO. 8918-25-060

1) The City Government of Baguio-Bids and Awards Committee (BAC) for Infrastructure,
through the General Fund for the year 2025 intends to apply the sum of FIVE MILLION
PESOS (P5,000,000.00) being the Approved Budget for the Contract (ABC) to payments
under the contract for the REMODELING OF MULTI-PURPOSE HALL, ROOFING,
WINDOW GRILLS, REPAINTING INSIDE & OUTSIDE, INSATALLATION OF SIGNAGE
AND CONTSTRUCTION OF TANOD OUTPOST AT CRESENCIA VILLAGE, WITH
PROJECT IDENTIFICATION NO. 8918-25-060. Bids received in excess of the ABC shall
be automatically rejected at bid opening.

2) The City Government of Baguio-Bids and Awards Committee (BAC) for Infrastructure now
invites bids for the REMODELING OF MULTI-PURPOSE HALL, ROOFING, WINDOW
GRILLS, REPAINTING INSIDE & OUTSIDE, INSATALLATION OF SIGNAGE AND
CONTSTRUCTION OF TANOD OUTPOST AT CRESENCIA VILLAGE, WITH PROJECT
IDENTIFICATION NO. 8918-25-060. Completion of the Works is 160 Calendar Days.
Bidders should have completed, a contract similar to the Project. The description of an
eligible bidder is contained in the Bidding Documents, particularly, in (ITB).

3) Bidding will be conducted through competitive bidding procedures using a non-

discretionary “pass/fail” criterion as specified in the IRR, otherwise known as the “New
Government Procurement Act (NGPA)”.

Bidding is restricted to Filipino citizens/sole proprietorships, cooperatives, and partnerships

or organizations with at least sixty percent (60%) interest or outstanding capital stock
belonging to citizens of the Philippines.

4) Interested bidders may obtain further information from The City Government of Baguio-Bids
and Awards Committee (BAC) for and inspect the Bidding Documents at the address given
below from October 6-28, 2025, 8:00AM-2:00PM.

5) A complete set of Bidding Documents may be acquired by interested bidders on October

6-28, 2025, 8:00AM-2:00PM from the address below and upon payment of the applicable
fee for the Bidding Documents, pursuant to the latest Guidelines issued by the GPPB, in the
amount of FIVE THOUSAND PESOS (P5,000.00).

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,
provided that bidders shall pay the applicable fee for the Bidding Documents not later than
the submission of their bids. The Procuring Entity shall allow the bidder to present its
proof of payment for the fees in person or Official Receipt to be attached in the Bid
Proposal.

Payment of bid documents can be accepted at the Land Bank of the Philippines (LBP) with
Account No. 0222-0015-95, Account Name: City Government of Baguio. The bidder will e-
mail the deposit slip to cto.baguio@gmail.com for the issuance of Official Receipt

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6) The City Government of Baguio-Bids and Awards Committee (BAC) for Infrastructure will
hold a Pre-Bid Conference on October 14, 2025, 2:00PM at Multi-Purpose Hall, City Hall,
Baguio City and/or through video conferencing via zoom with Meeting id: 853 9228 6955,
Passcode: baguiocity, which shall be open to prospective bidders.

7) Bids must be duly received by the Bids and Awards Committee (BAC) Secretariat through
manual submission at the City Budget Office on or before October 28, 2025, 2:00PM.
Late bids shall not be accepted.

8) All Bids must be accompanied by a Bid Security in any of the acceptable forms and in the
amount stated in ITB Clause 16.

9) Bid opening shall be on October 28, 2025, 2:00PM at the Multi-Purpose Hall, City Hall,
Baguio City. Bids will be opened in the presence of the Bidders’ representatives who
choose to attend the activity.

10) Only the bidder/contractor, or his/her duly authorized representative within his/her
organization structure, subject to submission of Certificate of Employment, Social Security
System (SSS), Electronic Static Information of the Liaison Officer, Authorization Letter and
company ID will personally appear to proper authorities for any transaction related to the
entire procurement process of all infrastructure projects.

11) The City Government of Baguio-Bids and Awards Committee (BAC) for Infrastructure
reserves the right to reject any and all bids, declare a failure of bidding, or not award the
contract at any time prior to contract award in accordance with Section 70 of R.A. No.
12009, without thereby incurring any liability to the affected bidder or bidders.

12) For further information, please refer to:

The BAC Secretariat

City Hall, Baguio City
Tel No. 442-8931/442-5497
Email address: bacinfrabaguio@gmail.com

13) You may visit the following websites:

For downloading of Bidding Documents: www.philgeps.gov.ph

ATTY. LETICIA O. CLEMENTE

City Budget Officer &
Chairperson, BAC

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 Section II. Instruction to Bidders

A. General

1) Scope of Bid

1.1 The Procuring Entity named in the BDS, invites Bids for the REMODELING OF
MULTI-PURPOSE HALL, ROOFING, WINDOW GRILLS, REPAINTING INSIDE
& OUTSIDE, INSATALLATION OF SIGNAGE AND CONTSTRUCTION OF
TANOD OUTPOST AT CRESENCIA VILLAGE, WITH PROJECT
IDENTIFICATION NO. 8918-25-060. The Procurement Project (referred to herein
as “Project”) is for the construction of Works, as described in Section VI
(Specifications).

1.2 The winning Bidder will be expected to complete the Works by the intended
completion date specified in SCC Clause 1.1.

2) Source of Funds

The Procuring Entity has a budget or received funds from the Funding Source named in
the BDS, and in the amount indicated in the BDS. It intends to apply part of the funds
received for this Project to cover eligible payments under the contract.

3) Corrupt, Fraudulent, Collusive, Coercive, and Obstructive 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
Procuring Entity:

a) defines, for purposes of this provision, the following terms under existing
laws, rules, and regulations:

i) "corrupt practice" means an act by which officials in the public or

private sectors 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 government, 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 RA No. 3019.

ii) "fraudulent practice" means a misrepresentation of facts for

purposes of influencing a procurement process or the execution of
a contract to the detriment of the Procuring Entity, which includes
collusive practices 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.

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;

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 v) “obstructive practice” is

a) 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 relative
to allegations of a corrupt, fraudulent, coercive or collusive
practice; and/or threatening, harassing or intimidating any party
to prevent the latter from disclosing its knowledge of matters
relevant to the administrative proceedings or from pursuing
such proceedings or investigation; or

b) 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) Undertakes to reject a proposal for award upon prima facie determination

that the Bidder recommended for award has engaged in any of the
prohibited practices mentioned in this Clause for purposes of competing for
the contract.

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 4.

3.3 Furthermore, the Funding Source and the Procuring Entity reserve the right to
inspect and audit records and accounts of a Bidder or Contractor in the bidding for
and performance of a contract themselves or through independent auditors as
reflected in the GCC Clause 36.

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 (f) below:

a) A Bidder has controlling shareholders or beneficial owners 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 legally authorized 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 may include a firm or an organization that lends,
or temporarily seconds, its personnel to firms or organizations that 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;

e) 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

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 f) A bidder 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.

4.2 All Bidding Documents shall be accompanied by an Omnibus Sworn Statement of

the Bidder that it is not related, by consanguinity or affinity up to the third civil
degree, to the HoPE, Procurement Agent (if engaged), the head of the Project
Management Office (PMO), the End-User or Implementing Unit or any members
of the Bids and Awards Committee (BAC), Technical Working Group (TWG), and
BAC Secretariat.

4.3 The Bidder shall also disclose the ultimate beneficial ownership of the entity it
represents. Failure to comply shall be a ground for the automatic disqualification
of the bid in consonance with Section 59 of the IRR. For this reason, relationship
to the aforementioned persons within the third civil degree of consanguinity or
affinity shall automatically disqualify the Bidder from participating in the
procurement of contracts of the Procuring Entity notwithstanding the act of such
persons inhibiting themselves from the procurement process. This Clause shall
apply to the following persons and affiliates:

a) In the case of individuals or sole proprietorships, to the Bidders and their

spouses;

b) In the case of partnerships, to the partnership itself and its partners;

c) In the case of cooperatives, to the cooperative itself and members of the

board of directors, general manager or chief executive officer;

d) In the case of a partnership, joint venture, or consortium, to the entity itself,

its members or partners, as well as any person or entity that is a member
of a blacklisted partnership, joint venture, or consortium; and

e) In the case of corporations, a single stockholder, together with their

relatives up to the third civil degree of consanguinity or affinity, and their
assignees, holding at least twenty percent (20%) of the shares therein, its
chairperson and president, shall be blacklisted after they have been
determined to hold the same controlling interest in a previously blacklisted
corporation or in two corporations that have been blacklisted; the
corporations of which they are part shall also be blacklisted.

5) Eligible Bidders

5.1 Only Bids found to be legally, technically, and financially eligible will be
evaluated. For procurement of Infrastructure Projects, the following persons shall
be eligible to participate in this bidding:

a) Duly licensed Filipino citizens or sole proprietorships;

b) Partnerships duly organized under the laws of the Philippines and of which
at least sixty percent (60%) of the interest belongs to citizens of the
Philippines;

c) Corporations duly organized under the laws of the Philippines, and of which
at least sixty percent (60%) of the outstanding capital stock belongs to
citizens of the Philippines;

d) Cooperatives duly organized under the laws of the Philippines; and

e) Persons or entities forming themselves into a Joint Venture (JV), i.e., a

group of two (2) or more persons or entities that intend to be jointly and
severally responsible or liable for a particular contract; Provided, however,
that in accordance with relevant laws, rules, and regulations, Filipino

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 ownership or interest of the joint venture concerned shall be at least sixty
percent (60%); Provided, further, that joint ventures in which Filipino
ownership or interest is less than sixty percent (60%) may be eligible where
the structures to be built require the application of techniques or
technologies which are not adequately possessed by a person or entity
meeting the sixty percent (60%) Filipino ownership requirement; Provided,
furthermore, 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 member of the
joint venture as specified in their Joint Venture Agreement (JVA); Provided,
finally, that the primary purpose of each member of the joint venture must
be similar or related to the requirement of the project to be bid out.

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 In accordance with RA No. 4566 or the “Contractors' License Law” as amended by
RA No. 11711 or “An Act Further Amending Republic Act No. 4566”, the persons
or entities enumerated in Section 52 of the IRR may participate in the procurement
of Infrastructure Projects if it has been issued a license by the Philippine
Contractors Accreditation Board (PCAB) to engage or act as a contractor.

5.4 The Bidder must have completed an SLCC that is similar to the procurement
project to be bid, and whose value must be equivalent to at least fifty percent (50%)
of the ABC, adjusted to current prices using the Philippine Statistics Authority
(PSA) consumer price indices; Provided, that any change to the fifty percent (50%)
requirement may be allowed, subject to the recommendation of the Procuring
Entity, which shall be submitted to the GPPB for consideration; Provided, further,
that contractors under Small A and Small B categories without similar experience
on the procurement project to be bid may be allowed to bid if the cost of such
contract is not more than the Allowable Range of Contract Cost of their registration
based on the guidelines as prescribed by the PCAB.

For foreign-funded procurement, the GoP and the foreign government, or foreign
or international financing institution may agree on another track record
requirement, as specified in the BDS.

Moreover, a contract shall be considered similar to the procurement project if it has

the same major categories of work. The Procuring Entity may clarify in the Bidding
Documents what is regarded as major categories of work, guided by the principle
of proportionality and Fit-for-Purpose approach.

5.5 The SLCC shall be supported by an Owner’s Certificate of Final Acceptance issued
by the project owner other than the Contractor, or a final rating of at least
Satisfactory in the CPES, or a similar performance and monitoring system. In the
case of contracts with the private sector, an equivalent document shall be
submitted.

5.6 The computation of a bidder’s NFCC must be at least equal to the ABC to be bid,
calculated as follows:

NFCC = [(Current assets minus current liabilities) (15)] minus the value of
all outstanding or uncompleted portions of the projects under ongoing
contracts, including awarded contracts yet to be started, coinciding with the
procurement project to be bid; Provided, That a different formula may be
adopted subject to the recommendation of the Procuring Entity, which shall
be submitted to the GPPB for consideration.

The value of the domestic bidder’s current assets and current liabilities shall be
based on the latest AFS submitted to the BIR.

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 For purposes of computing the foreign bidders' NFCC, the value of the current
assets and current liabilities shall be based on their latest AFS prepared in
accordance with international financial reporting standards.

6) Bidder’s Responsibilities

6.1 The Bidder or its duly authorized representative shall submit a sworn statement in
the form prescribed in Section IX. Philippine Bidding Documents Related Forms
as required in ITB Clause 12.1(h)(iv).

6.2 Before submitting their bids, the Bidders are deemed to be knowledgeable of all
existing laws, decrees, ordinances, acts and regulations of the Philippines which
may affect this Project in any way.

6.3 The Bidder shall be responsible for the following:

a) Took steps to carefully examine and ensure full understanding and

comprehension of the Bidding Document, its requirements, clauses, and
provisions;

b) Acknowledged 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;

d) Complied with its responsibility to inquire or secure Supplemental Bid

Bulletin(s);

e) Ensured that it is not “blacklisted” or barred from bidding by the

Government of the Philippines (GoP) or any of its agencies, offices,
corporations, or LGUs, including foreign government, or foreign/
international financing institutions whose blacklisting rules have been
recognized by the GPPB; by itself or by reason of its relation, membership,
association, affiliation, or controlling interest with another blacklisted
person or entity;

f) Ensured that each of the documents submitted in satisfaction of the bidding

requirements is an authentic copy of the original, complete, and that all
statements and information provided therein are true and correct;

g) Authorized the HoPE or its duly authorized representative/s to verify all the
documents submitted;

h) Ensured that the signatory is the duly authorized representative of the

Bidder, and granted full power and authority to do, execute and perform
any and all acts necessary to participate, submit the bid, to sign, and
execute the ensuing contract, accompanied by the duly notarized Special
Power of Attorney, Board or Partnership Resolution, or Secretary’s
Certificate, whichever is applicable;

i) Complied with the disclosure provision under Section 81 and 82 of RA No.

12009 and its IRR in relation to other provisions of RA No. 3019;

j) Complied with existing labor laws and standards. Moreover, the Bidder
undertakes to:

i) Ensure the entitlement of workers to wages, hours of work, safety

and health and other prevailing conditions of work as established
by national laws, rules and regulations; or Collective Bargaining
Agreement (CBA) or arbitration award, if and when applicable.

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 In case there is a finding by the Procuring Entity or the Department
of Labor and Employment (DOLE) of underpayment or non-
payment of workers’ wages and wage-related benefits, the Bidder
agrees that the performance security or portion of the contract
amount shall be withheld in favor of the complaining workers
pursuant to appropriate provisions of RA No. 12009, without
prejudice to the institution of appropriate actions under the Labor
Code, as amended, and other social legislations;

ii) Comply with Occupational Safety and Health Standards (OSHS)

and correct deficiencies, if any.

In case of imminent danger, injury or death of the worker, the Bidder

undertakes to suspend contract implementation pending clearance
to resume from the DOLE Regional Office, in compliance with the
Work Stoppage Order; and

iii) Inform the workers of their conditions of work, labor clauses under
the contract specifying wages, hours of work and other benefits
under prevailing national laws, rules and regulations; or CBA or
arbitration award, if and when applicable, through posting in two (2)
conspicuous places in the establishment’s premises.

k) Ensured that it did not give or pay, directly or indirectly, any commission,
amount, fee, or any form of consideration, pecuniary or otherwise, to any
person or official, personnel or representative of the government in relation
to any procurement project or activity;

Failure to observe any of the above responsibilities shall be at the risk of the Bidder
concerned;

l) Examined all instructions, forms, terms, and specifications in the Bidding

Documents;

m) Determined and complied with all matters pertaining to the contract to be

bid, including but not limited to: (i) the location and the nature of the
contract, project, or work; (ii) climatic conditions; (iii) transportation
facilities; (iv) 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 (v) other factors that may affect the cost, duration
and execution or implementation of the contract, project, or work; and

n) Ensured that all information in the Bidding Documents, including bid or

supplemental bid bulletin(s) issued, are correct and consistent. 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.

6.4 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.

6.5 Further, the Bidder shall bear all costs associated with the preparation and
submission of its bid, and the Procuring Entity shall in no case be responsible or
liable for those costs, regardless of the conduct or outcome of the bidding process.

In case of failure of bidding, the Bidding Documents fee may be applied in the re-
bidding for the same Project.

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 6.6 Furthermore, the Bidder should be aware that the Procuring Entity will accept bids
only from those that have paid the applicable fee for the Bidding Documents at the
office indicated in the Invitation to Bid.

7) Origin of Goods and Services

Unless otherwise indicated in the BDS, 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 HoPE and as stated in the BDS.
However, the subcontracted portion shall not exceed fifty (50%), or a different
percentage of the ABC, on a per project basis, as approved by the GPPB.

8.2 Subcontracting of any portion of the Project shall not relieve the Bidder from any
liability or obligation that may arise from the contract.

8.3 Subcontractors must meet the eligibility criteria as stated in the BDS and shall
submit the same eligibility documents as the general contractor. Failure of a
subcontractor to meet the eligibility criteria does not affect the eligibility of the
general contractor for the procurement project. In such case, the portion intended
to be subcontracted to the ineligible subcontractor shall be assumed by the general
contractor.

8.4 Subcontracting arrangement, if allowed, including the time of submission of the

eligibility documents of the subcontractor, shall be disclosed in the BDS.

B. Contents of Bidding Documents

9) Pre-Bid Conference

9.1 If so specified in the BDS, a pre-bid conference shall be held either at the Procuring
Entity’s physical address and/or online through videoconferencing, webcasting, or
similar technology, or a combination thereof, on the date indicated therein, to clarify
and address the Bidders’ questions on the technical and financial components of
this Project.

9.2 The pre-bid conference shall be held at least twelve (12) calendar days before the
deadline for the submission of and receipt of bids, but not earlier than seven (7)
calendar days from the posting of the invitation to bid and other bidding documents
on the PhilGEPS website.

9.3 Bidders are highly encouraged to attend the pre-bid conference to fully understand
the Procuring Entity’s requirements. While non-attendance of the Bidder will in no
way prejudice its bid, the Bidder is deemed to know any changes and/or
amendments to the Bidding Documents, as may be provided in the Supplemental
Bid Bulletin.

The proceedings of the pre-bid conference shall be recorded, and the

corresponding minutes shall be prepared not later than five (5) calendar days after
the pre-bid conference. The minutes shall be made available to prospective
Bidders not later than five (5) days upon written request.

9.4 Decisions of the BAC amending any provision of the Bidding Documents shall be
issued in writing through a Supplemental Bid Bulletin at least seven (7) calendar
days before the deadline for the submission and receipt of bids.

10) Clarification and Amendment of Bidding Documents

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 10.1 Prospective bidders may request for clarification(s) on and/or interpretation of any
part of the Bidding Documents. Such a request must be in writing and submitted
to the BAC of the Procuring Entity at the address or electronic mail indicated in the
BDS or through the electronic bidding facility of PhilGEPS, as may be applicable,
at least ten (10) calendar days before the deadline set for the submission and
receipt of Bids.

10.2 The BAC shall respond to the said request by issuing a Supplemental Bid Bulletin
duly signed by the BAC Chairperson. It shall be made available to all those who
have properly secured the Bidding Documents, at least seven (7) calendar days
before the deadline for the submission and receipt of Bids.

10.3 Supplemental Bid Bulletins may also be issued upon the Procuring Entity’s
initiative for purposes of clarifying or modifying any provision of the Bidding
Documents not later than seven (7) calendar days before the deadline for the
submission and receipt of Bids. Any modification to the Bidding Documents shall
be identified as an amendment.

10.4 Any Supplemental Bid Bulletin issued by the BAC shall also be posted on the
PhilGEPS website, in any conspicuous place in the premises of the Procuring
Entity, and on the website or social media platforms of the Procuring Entity, if
available, or such other channels as may be authorized by the GPPB. It shall be
the responsibility of all prospective bidders, including those who have properly
secured the Bidding Documents, to inquire and secure Supplemental Bid Bulletins
that may be issued by the BAC. However, Bidders who have submitted bids before
the issuance of the Supplemental Bid Bulletin must be accordingly informed by the
BAC, and be allowed to modify or withdraw their bids prior to the deadline for the
submission and receipt of bids in accordance with ITB Clause 21.

C. Preparation of Bids

11) Language of Bids

The eligibility requirements or statements, the bids, and all other documents to be
submitted to the BAC must be in English. If the eligibility requirements or statements, the
bids, and all other documents submitted to the BAC are in foreign language other than
English, it must be accompanied by a translation of the documents in English. The
documents shall be translated by the relevant foreign government agency, the foreign
government agency authorized to translate documents, or a registered translator in the
foreign bidder’s country. The Bidder shall cause the authentication of the translated
documents and shall be authenticated by the appropriate Philippine foreign service
establishment or post or the equivalent office having jurisdiction over the foreign bidder’s
affairs in the Philippines. However, for Contracting Parties to the Apostille Convention, the
documents shall be authenticated through an apostille by the Competent Authority, as
defined in Section 20.2.9.2 of the IRR, except for countries identified by the DFA that will
still require legalization (red ribbon) by the relevant Embassy or Consulate. The English
translation shall govern, for purposes of interpretation of the bid.

12) Documents Comprising the Bid: Technical and Financial Components

12.1 The first bid envelope shall contain the following technical documents, including
the eligibility documents:

a) PhilGEPS Certificate of Registration (Platinum Membership) in accordance

with Section 20 of the IRR;

b) PCAB License and Registration, in case of Joint Venture (JV);

c) Statement of all its ongoing government and private contracts, including

contracts awarded but not yet started, if any, whether similar or not similar
in nature and complexity to the contract to be bid;

d) Statement of the Bidder’s SLCC, in accordance with ITB Clause 5.5.

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 The SLCC shall be supported by an Owner’s Certificate of Final
Acceptance issued by the project owner other than the Contractor, or a final
rating of at least satisfactory in the Constructors Performance Evaluation
System (CPES), or a similar performance and monitoring system. In case
of contracts with the private sector, an equivalent document shall be
submitted;

e) NFCC computation in accordance with ITB Clause 5.6;

f) Joint Venture Agreement (JVA), if applicable;

g) Bid Security in the prescribed form and amount in accordance with ITB
Clause 16, and validity period under ITB Clause 15;

h) Project Requirements, which shall include the following:

i) Organizational chart of the personnel to be deployed for the

procurement project to be bid;

ii) List of Contractor’s personnel (e.g., Project Manager, Project

Engineers, Materials Engineers, and Foremen), to be assigned to
the procurement project to be bid, with their complete qualifications
and experience data. These personnel must meet the required
minimum years of experience set in the BDS;

iii) List of Contractor’s major equipment units which are owned, leased,
or under purchase agreements, supported by proof of ownership or
certification of availability of equipment from the equipment lessor
or vendor for the duration of the project, as the case may be, which
must meet the minimum requirements for the contract set in the
BDS; and

iv) Omnibus Sworn Statement in accordance with Section 54.3 of the

IRR.

12.2 The second bid envelope shall contain the Financial Bid Form, which includes the
bid prices and the bill of quantities, in accordance with ITB Clauses 13.1.

12.3 Whenever necessary, modifications may be made to the foregoing provisions

specifically for major and specialized procurement to suit the particular needs of
the Procuring Entity, subject to the approval of the GPPB.

12.4 All bids that exceed the ABC shall not be accepted. Unless otherwise indicated in
the BDS, for foreign-funded procurement, the ABC shall be applied as the ceiling
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 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 or Procuring Entity’s estimate.

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 e) The Procuring Entity has established a monitoring and evaluation system
for contract implementation to provide feedback on actual total costs of
goods and works.

However, the GoP and the foreign government, or foreign or international financing
institutions may agree to waive the foregoing conditions.

13) Bid Prices

13.1 The contract shall be for the whole Works, as described in the Bidding Documents,
based on the priced Bill of Quantities submitted by the Bidder.

13.2 The Bidder shall fill in rates and prices for all items of the Works described in the
Bill of Quantities. In case partial bids are allowed in the ITB, bids not addressing
or providing all of the required items in the Bidding Documents including, where
applicable, the Bill of Quantities, shall be considered non-responsive and shall be
automatically disqualified. In this regard, where a required item is provided, but no
price is indicated, the same shall be considered as non-responsive, but specifying
a zero (0) or a dash (-) for the said item would mean that it is being offered for free
to the Government, except those required by law or regulations to be provided for.

13.3 For the given scope of work in the contract as awarded, all bid prices 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 45.

14) Bid Currencies

14.1 All bid prices shall be quoted in Philippine Peso 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
as published in the BSP Daily Reference Exchange Rate Bulletin on the day of the
bid opening.

14.2 If so allowed in accordance with ITB Clause 14.1, the Procuring Entity, for
purposes of bid evaluation and comparing the bid prices, will convert the
currencies in which the bid price is expressed to Philippine Peso at the foreign
exchange rates.

14.3 Unless otherwise specified in the BDS, payment of the contract price shall be
made in Philippine Peso.

15) Bid Validity

15.1 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.

15.2 Should it become necessary to extend the validity of the bids and the bid securities
beyond one hundred twenty (120) calendar days, the Procuring Entity concerned
shall request in writing all those who submitted bids for such extension before the
expiration date therefor. Bidders, however, shall have the right to refuse to grant
such extension without forfeiting their Bid Security.

16) Bid Security

16.1 The Bidder, at its option, shall submit a Bid Security in the form and amount as
stated in the BDS, which may include the following:

Amount of Bid Security

Form of Bid Security (Not less than the required
Percentage of the ABC)

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 (a) Cash or cashier’s/manager’s check
issued by a bank.

For biddings conducted by LGUs,

the Cashier’s or Manager’s check
Two percent (2%)
may be issued by other banks
certified by the BSP as authorized
to issue such financial instrument.

(b) Bank draft/guarantee or irrevocable

Letter of Credit issued by a bank;
Provided, however, that it shall be
confirmed or authenticated by a
local bank, if issued by a foreign
bank.
Five percent (5%)
For biddings conducted by LGUs,
the Bank Draft/ Guarantee, or
irrevocable letter of credit may be
issued by other banks certified by
the BSP as authorized to issue
such financial instrument.

(c) Surety bond callable upon demand

issued by a surety or insurance
company duly certified by the Five percent (5%)
Insurance on as authorized to
issue such security.

(d) Bid Securing Declaration Not Applicable

The Bid Security shall be denominated in Philippine Peso and posted in favor of
the Procuring Entity.

16.2 The Bid Security should be valid for the period specified in the BDS. Any bid not
accompanied by an acceptable Bid Security shall be considered as non-
responsive and rejected by the Procuring Entity.

16.3 In no case shall the Bid Security be returned later than the expiration of the bid
validity period indicated in the Bidding Documents, unless it has been extended in
accordance with Section 57.2 of the IRR. In case the bidder is required to extend
its bid validity, the bidder may, at its discretion, substitute a Bid Securing
Declaration for the extended period as a replacement of its Bid Security; Provided,
that the option to substitute is indicated in the BDS.

16.4 Upon signing and execution of the contract, pursuant to ITB Clause 29, and the
posting of the performance security pursuant to ITB Clause 30, the Bid Security of
the successful Bidder’s Bid Security will be discharged, but in no case later than
its validity period as indicated in ITB Clause 15.

16.5 The Bid Security may be forfeited based on any of the following grounds, as
provided under Rule VIII, X, XI, and XXI of the IRR:

a) If a Bidder:

i) With the LCRB, MEARB, MARB, Single Calculated and Responsive

Bid (SCRB), Single Economically Advantageous Responsive Bid
(SEARB), or Single Advantageous Responsive Bid (SARB)
withdraws, fails, refuses or is unable to: (i) submit the documents
required under Section 66.5 of the IRR; (ii) enter into contract with
the Procuring Entity; or (iii) post the required performance security

19
 within the period stipulated in the IRR and in accordance with ITB
Clause 30;

ii) Causes the delay, without justifiable cause, of the screening for
eligibility, opening of bids, evaluation and post evaluation of Bids,
and awarding of contracts;

iii) Refuses 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;

iv) Withdraws a bid, or refuses to accept an award, or refuses or fails

to enter into contract with the Procuring Entity without justifiable
cause, after the approval of the HoPE for having been the declared
LCRB or MEARB, as the case may be;

v) Refuses or fails to furnish performance security within the

prescribed time;

vi) Commits of three (3) or more of any of the acts imposed with
suspension, as provided under Section 99 of the IRR;

vii) Uses force, fraudulent machinations, coercion, undue influence or

pressure on any member of the BAC or any officer or employee of
the Procuring Entity to take a particular action for its own favor or
gain, or to the advantage of a particular bidder;

viii) Colludes with one (1) or more bidders and submitting different bids
as if they were bona fide, when they knew that one or more of them
was so much higher than the other that it could not be honestly
accepted and that the contract will surely be awarded to the pre-
arranged lowest bid;

ix) Maliciously submits different bids through two (2) or more persons,
corporations, partnerships, or any other business entity in which it
has interest, to create the appearance of competition that does not
in fact exist so as to be declared as the winning bidder;

x) Enters into an agreement with other bidder/s which call upon one
to refrain from bidding for procurement contracts, or which call for
withdrawal of bids already submitted, or which are otherwise
intended to secure an undue advantage to any of the bidders;

xi) Fails to faithfully disclose its relationship, regardless of the time of

its discovery, with the HoPE, members of the BAC, the TWG, and
the BAC Secretariat, the head of the PMO or the End-User or
Implementing Unit, and the project consultants of the Procuring
Entity, or of the procurement agent, whichever is applicable, by
consanguinity or affinity up to the third civil degree pursuant to
Section 81 of the IRR;

xii) Submits beneficial ownership information containing false entries;

xiii) Allows the use of one’s name or uses the name of another for
purposes of public bidding;

xiv) Submits eligibility requirements and bids containing false

information or falsified documents or the concealment of such
information that will materially alter the outcome of eligibility
screening or any stage of the procurement;

xv) Accesses the contents of any Bid submitted to the Procuring Entity
before the opening of bids, without authorization;

20
 xvi) Has any documented attempt to unduly influence the outcome of
the bidding;

xv) Employs schemes which stifle or suppress any procurement

activity; or

xvi) Commits a third offense imposed with blacklisting under the Act by
the same Procuring Entity, or a combination of three (3) violations
imposed with blacklisting by the Procuring Entity and other
Procuring Entities, as posted on the GPPB portal;

b) If a Winning Bidder:

i) Conducts poor performance or unsatisfactory quality and/or

progress of work. Poor performance shall be as follows:

i.i) Negative slippage of fifteen percent (15%) and above within

the critical path of the project due entirely to the fault or
negligence of the winning bidder; or

i.ii) Non-compliance of the materials and workmanship with the

approved specifications arising from the fault or negligence
of the winning bidder.

ii) In case it is determined prima facie that the winning bidder has
engaged, before or during the implementation of the contract, in the
following unlawful deeds and behaviors relative to contract
acquisition and implementation:

ii.i) Corrupt, fraudulent, collusive and coercive practices;

ii.ii) Drawing up or using forged documents; or

ii.iii) Using adulterated materials, means or methods, or

engaging in production contrary to rules of science or trade.

iii) Assigns or subcontracts the contract or any part thereof or

substituting key personnel named in the proposal without prior
written approval by the Procuring Entity;

iv) Willfully or deliberately abandons or does not perform the project or

contract by the winning bidder resulting in substantial breach thereof
without lawful and/or just cause;

v) Has its contract terminated due to its default or unlawful acts; or

vi) Fails to comply with the provision on warranty that requires to repair
any noted defect or damage to the Infrastructure Project due to the
use of materials of inferior quality within ninety (90) calendar days
from the issuance of the order by the HoPE to undertake such
repairs.

17) Format and Signing of Bids

17.1 Bidders shall submit their bids through their duly authorized representative
using the appropriate forms provided in

Section IX. Philippine Bidding Documents Related Forms on or before the deadline
specified in the ITB Clause 19 in two (2) separate sealed bid envelopes which shall
be submitted simultaneously, whether through manual or online submission. The
first shall contain the technical component of the bid, including the eligibility
requirements under ITB Clause 12, and the second shall contain the financial
component of the bid.

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 17.2 Forms as mentioned in ITB Clause 17.1 must be completed without any alterations
to their format. No substitute form shall be accepted.

17.3 Each and every page of the Bid Form, including the Bill of Quantities, under Section
IX hereof, shall be signed by the duly authorized representative/s of the Bidder.
Failure to do so shall be a ground for the rejection of the bid.

17.4 Any insertions, erasures, or overwriting shall be valid only if they are signed or
initialed by the duly authorized representative/s of the Bidder.

18) Sealing and Marking of Bids

18.1 Bidders shall enclose their technical documents described in ITB Clause 12 in one
sealed envelope marked “TECHNICAL COMPONENT,”, and the financial
component in another sealed envelope marked “FINANCIAL COMPONENT,”,
sealing them all in an outer envelope marked “BID.”

18.2 The Bid shall be typed or written in ink and shall be signed by the Bidder or its duly
authorized representative/s.

18.3 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 in accordance with ITB Clause

18.1;

d) bear the specific identification of this bidding process indicated in the ITB
Clause 1.1; and

e) bear a warning “DO NOT OPEN BEFORE…” the date and time for the
opening of bids, in accordance with ITB Clause 19.

18.4 For manually submitted bid envelopes that are not properly sealed and marked, as
required in the Bidding Documents, the same shall be accepted; Provided, That
the bidder or its duly authorized representative shall acknowledge such condition
of the bid as submitted. On the other hand, unsealed or unmarked bid envelopes,
or bids that cannot be opened or corrupted in case of online submission, shall be
rejected.

The BAC shall assume no responsibility for misplaced or lost contents of the
improperly sealed or marked bid, or for its premature opening.

D. Submission and Opening of Bids

19) Deadline for Submission of Bids

Bids must be received by the Procuring Entity’s BAC at the address indicated in the IB, or
through the e-bidding facility of the PhilGEPS, on or before the date and time indicated in
the BDS.

20) Late Bids

Bids, including the eligibility requirements, submitted after the deadline shall be rejected
by the BAC. The BAC shall record in the Minutes of the Meeting the submission and
opening of bids, the Bidder’s name, its representative, and the time the late bid was
submitted.

21) Modification and Withdrawal of Bids

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 21.1 Bidders may modify their bids before the deadline for the submission and receipt
of bids.

a) For manual submission and receipt of bids, the Bidders shall not be allowed
to retrieve their original bid, but shall only be allowed to submit the bid
modification by sending another bid, equally sealed, properly identified,
linked to its original bid, and marked as a “modification,” thereof, 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.

b) For online submission of bids, the Bidders shall not be allowed to retrieve
their original Bid, but shall only be allowed to submit the bid modification,
send another Bid equally secured, properly identified labelled as a
“modification” of the one previously submitted. The time indicated in the
latest bid receipt page generated shall be the official time of submission.
Bids modification submitted after the applicable deadline shall not be
accepted.

21.2 Bidders may withdraw their bids in writing before the deadline for submission and
receipt of bids. Withdrawal of bids after the applicable deadline shall be subject to
appropriate sanctions as prescribed in the IRR.

Bidders may also express their intention not to participate in the bidding in writing,
which should be received by the BAC before the deadline for submission and
receipt of bids. Bidders that withdraw their bids shall no longer be allowed to submit
another bid for the same contract, directly or indirectly.

21.3 No bid may be modified after the deadline for submission and receipt of bids.
Further, no bid may be withdrawn in the interval between the deadline for
submission and receipt of bids, and the expiration of bid validity specified by the
Bidder in the Financial Bid Form. Withdrawal of bid during this interval shall result
in the forfeiture of the Bidder’s Bid Security pursuant to ITB Clause 16.5, and the
imposition of administrative sanctions as prescribed by RA No. 12009 and without
prejudice to the imposition of civil and criminal sanctions as provided under
applicable laws.

Alternative Bids shall be rejected. For this purpose, Alternative Bid shall pertain to
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. A bid with
options shall likewise be 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.

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.

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.

22) Opening and Preliminary Examination of Bids

22.1 The BAC shall open the bids in public, immediately after the deadline for
submission and receipt of bids, as specified in the BDS. In case the Bids cannot
be opened as scheduled due to justifiable reasons, the BAC shall take custody of
the submitted Bids and reschedule the opening of Bids on the next working day or
at the soonest possible time, through the issuance of a Notice of Postponement to

23
 be posted on the PhilGEPS website and the website of the Procuring Entity
concerned.

22.2 The manner of opening of the bids for Infrastructure Projects shall depend on the
award criterion to be adopted, as follows:

a) For LCRB and MEARB, the BAC shall open the technical and financial
proposals on the same day; and

b) For MARB, only the technical proposals shall be opened while the financial
proposals shall remain unopened and shall be kept securely by the BAC until
the specified time of their opening as indicated in the BDS. Only the financial
proposals of the bidders who have met the highest technical score for MAB shall
be opened.

22.3 The Procuring Entity shall prepare the minutes of the proceedings of the bid
opening that shall include, as a minimum: (a) names of Bidders, their bid price (per
lot, if applicable, and/or including discount, if any), bid security, findings of
preliminary examination, and whether there is a withdrawal or modification; and (b)
attendance sheet. The BAC members shall sign the abstract of bids as read.

22.4 The Bidders or their duly authorized representatives may attend the opening of
bids. The BAC shall ensure the integrity, security, and confidentiality of all
submitted bids. The Abstract of bids, as read, and the minutes of the bid opening
shall be made available to the public, upon written request and payment of a
specified fee to recover the cost of materials.

22.5 To ensure transparency and accurate representation of the bid submission, the
BAC Secretariat shall notify in writing all bidders whose bids it has received
through mail at its PhilGEPS-registered physical address or official e-mail address.
The said notice shall be issued within seven (7) calendar days from the date of the
bid opening.

E. Evaluation and Comparison of Bids

23) Process to be Confidential

23.1 Members of the BAC, its staff and personnel, Secretariat, and TWG, as well as
Observers, are prohibited from making or accepting any communication with any
bidder regarding the evaluation of their bids until the issuance of the Notice of
Award, unless otherwise allowed in the case of ITB Clause 24.

23.2 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 bid.

24) 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 that is not in response to the request of the Procuring Entity shall not be considered.

25) Detailed Evaluation and Comparison of Bids

25.1 The Procuring Entity’s evaluation of bids shall be based on the bid price quoted in
the Bid Form, which includes the Bill of Quantities.

25.2 The Procuring Entity will undertake the detailed evaluation and comparison of the
bids which have passed the opening and preliminary examination of bids, pursuant
to ITB Clause 22, to determine the Lowest Calculated Bid (LCB), Most
Economically Advantageous Bid (MEAB), and Most Advantageous Bid (MAB).

24
25.3 The award criterion shall be determined as follows:

a) For LCB:

i) The detailed evaluation of the financial component of the bids, to establish

the correct calculated prices of the bids; and

ii) The ranking of the total bid prices as so calculated from the lowest to
highest, where the bid with the lowest price shall be identified as the Lowest
Calculated Bid.

b) For MEAB, the BAC shall evaluate the quality and price proposals to determine
the Most Economically Advantageous Bid (MEAB) using the following steps:

i) The quality proposal together with the price proposal shall be considered
in the evaluation of bids. The quality proposals shall be evaluated first using
the criteria in the BDS. The price proposals of the bids that meet the
minimum quality score shall then be opened.

ii) The price and quality proposals shall be given corresponding weights with
the price proposal given a minimum weight of fifteen percent (15%) up to a
maximum of forty percent (40%). The weight of the quality criteria shall be
adjusted accordingly such that their total weight in percent together with
the weight given to the price proposal shall be equal to one hundred
percent (100%).

iii) To further promote green public procurement, the sustainability of materials

or structures with green specifications shall be given greater weight in the
evaluation of bids. As approved by the BAC, the exact weights shall be
indicated in the BDS. The BAC shall rank the bidders in descending order
based on the combined numerical ratings of their quality and price
proposals. The bidder with the best overall score using the quality-price
ratio shall be referred to as the MEAB.

iv) The HoPE shall approve or disapprove the recommendations of the BAC
within two (2) calendar days after receipt of the results of the evaluation
from the BAC.

The quality component shall be assessed on the basis of criteria with

corresponding numerical weights indicated in the BDS, which may include
qualitative, environmental, or social aspects linked to the subject matter of the
contract. These may include any or a combination of the following:

a) Quality and technical merit, including technical competence and a

credible track record;

b) Aesthetic and functional design and characteristics;

c) Approach and methodology;

d) Accessibility;

e) Tools and equipment;

f) Social, environmental, economic, and innovative characteristics;

g) Organization, qualification, and experience of employees or staff

assigned to perform the contract;

h) Ongoing contracts and work commitments; or

i) Other relevant criteria in relation to the subject Infrastructure

Projects to be procured.

25
 c) For MAB

i) The BAC shall evaluate the quality proposals to determine the MAB using
the quality components. The quality components shall be assessed on the
basis of the criteria with corresponding numerical weights indicated in the
BDS to determine the bidder with the highest technical rating.

ii) The second bid envelope of the bidder obtaining the highest technical
rating shall be opened. If the financial proposal is equal to or lower than the
ABC, the bid shall be accepted and determined as the MAB; otherwise, the
same shall be rejected and the bidder will be disqualified.

25.4 In order to eliminate bias in evaluating the quality proposals, it is recommended

that the highest and lowest scores for each bidder for each criterion shall not be
considered in determining the average scores of the bidders, except when the
evaluation is conducted in a collegial manner.

25.5 The BAC shall immediately conduct a detailed evaluation of all bids using non-
discretionary criteria in considering the following:

a) Completeness of the bid. Unless the BDS allows partial bids, bids not
addressing or providing all of the required items in the BDS shall be
considered non-responsive and, thus, automatically disqualified.

However, when no price or a zero (0) or a dash (-) is indicated in a required

item in the bid form, the same shall be construed that it is being offered for
free to the Government, except those required by law or regulations to be
provided for; and

b) Arithmetical corrections. The BAC shall consider computational errors and

omissions to enable proper comparison of all eligible bids. It may also
consider bid correction if expressly allowed in the BDS. Any adjustment
shall be calculated in monetary terms to determine the calculated prices.

25.6 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 LCB, MEAB, or MAB. 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.

25.7 The BAC shall evaluate all bids on an equal footing to ensure fair and competitive
bid comparison. 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. Such bids, including said taxes,
shall be the basis for the bid evaluation and comparison.

25.8 If so indicated pursuant to ITB Clause 1.1, bids may be submitted for individual
lots, or for any combination thereof, provided that all bids and combinations of bids
shall be received by the same deadline and opened and evaluated simultaneously
so as to determine the bid or combination of bids offering the lowest calculated
cost to the Procuring Entity. Bid prices quoted shall correspond to all of the
requirements specified for each lot. Bid Security as required by ITB Clause 16 shall
be submitted for each contract (lot) separately. The basis for evaluation of lots is
specified in BDS Clause 25.5 (a).

26) Post Qualification

26.1 The BAC shall determine to its satisfaction whether the Bidder that is evaluated as
having submitted the LCB, MEAB, or MAB, as the case may be, complies with and
is responsive to all the requirements and conditions specified in ITB Clauses 5 and
12. The Bidder, within a non-extendible period of five (5) calendar days from

26
 receipt of notice from the BAC that it submitted the LCB, MEAB, or MAB, shall
submit all the eligibility documents supporting its PhilGEPS Certificate of
Registration (Platinum Membership), its latest income and business tax returns
filed for the preceding quarter which should not be earlier than two (2) quarters
from the date of submission and receipt of bid, and other appropriate licenses and
permits required by law and stated in the BDS.

26.2 Failure to submit any of the post-qualification requirements on time, or a finding

against the veracity thereof, shall disqualify the Bidder for award; Provided, That
in the event that a finding against the veracity of any of the documents submitted
is made, it shall cause the forfeiture of the Bid Security.

26.3 The determination shall be based upon an examination of the documentary

evidence of the Bidder’s qualifications submitted pursuant to ITB Clause 12, as
well as other information as the Procuring Entity deems necessary and
appropriate, using a non-discretionary “pass/fail” criterion, which shall be
completed within a period of twelve (12) calendar days.

26.4 If the BAC determines that the bidder with the LCB, MEAB, or MAB passes all the
criteria for post-qualification, it shall declare the said bid as the LCRB, MEARB,
MARB, SCB, SEAB, or SAB and recommend to the HoPE the award of contract to
the said bidder at its submitted bid price or its calculated bid price, whichever is
lower or, in the case of quality-based evaluation procedure, submitted bid price or
its negotiated price, whichever is lower.

If, however, the BAC determines that the bidder with the LCB, MEAB, MAB, SCB,
SEAB, or SAB fails to meet the post-qualification criteria, it shall immediately notify
the Bidder in writing of its post-disqualification and the grounds for such
determination.

26.5 Immediately after the BAC has notified the first bidder of its post-disqualification,
and notwithstanding any pending request for reconsideration thereof, the BAC
shall initiate and complete the same post-qualification process on the bidder with
the second LCB, MEAB, or MAB. If the second bidder passes the post-qualification
and provided that the request for reconsideration of the first bidder has been
denied, the second bidder shall be post-qualified as the bidder with the LCB,
MEAB, or MAB.

26.6 If the second bidder, however, fails the post-qualification, the procedure for post-
qualification shall be repeated for the bidder with the next LCB, MEAB, or MAB
and so on, until the LCRB, MEARB, or MARB, as the case may be, is determined
for award, subject to the procedure of Notice and Execution of Award.

26.7 Within a period not exceeding ten (10) calendar days from the determination by
the BAC of the LCRB, MEARB, MARB, SCRB, SEARB, or SARB and the
recommendation to award the contract, the HoPE or its duly authorized
representative shall approve or disapprove the said recommendation.

26.8 In case of approval, the HoPE or its duly authorized representative shall
immediately issue the Notice of Award to the bidder with the LCRB, MEARB,
MARB, SCRB, SEARB, or SARB, as the case may be.

In the event that the approving authority shall disapprove the resolution on the
award of the contract, such disapproval shall be based only on valid, reasonable,
and justifiable grounds as enumerated under Section 70 of the IRR to be
expressed in writing. A copy of the decision disapproving the resolution shall be
furnished to the BAC and the bidder.

27) Reservation Clause

27.1 Notwithstanding the eligibility or post-qualification of a bidder and without incurring

any liability, the HoPE or its duly authorized representative at any stage of the

27
 procurement, reserves the right to review its qualifications, reject any and all bids,
declare a failure of bidding or not award the contract in the following situations:

a) If it has reasonable grounds to believe that a misrepresentation has been

made by the said bidder; or

b) If it has reasonable grounds to believe 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 adversely affect its capability to undertake the Project so that
it no longer meets the prescribed eligibility or bid evaluation criteria, the Procuring
Entity shall consider the said Bidder as ineligible and disqualify it from participating
further in the bidding process or being awarded the contract.

27.2 Based on the following grounds, the HoPE or its duly authorized representative
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 or influences or tends to influence the bidding process;

b) If the BAC is found to have failed in complying with the applicable law or in
following the prescribed bidding procedures; or

c) If there are any justifiable and reasonable ground where the award of the
contract will not redound to the benefit of the government, in instances
where (i) 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 HoPE; (ii) the Project is no longer necessary
as determined by the HoPE; and (iii) the source of funds for the Project has
been withheld or reduced through no fault of the Procuring Entity.

F. Award of Contract

28) Contract Award

28.1 Subject to ITB Clause 26, the HoPE or its duly authorized representative shall
award the contract to the Bidder whose bid has been determined to be the LCRB,
MEARB, MARB, SCRB, SEARB, or SARB, as the case may be.

28.2 Prior to the expiration of the period of bid validity, the Procuring Entity shall notify
the winning Bidder in writing that its bid has been accepted, through a Notice of
Award duly received by the Bidder or its representative personally or by registered
mail or electronically, receipt of which must be confirmed in writing within two (2)
days by the Bidder with the LCRB, MEARB, MARB, SCRB, SEARB, or SARB, as
applicable, and submitted personally or sent by registered mail or electronically to
the Procuring Entity.

28.3 Within ten (10) calendar days from receipt by the winning bidder of the Notice of
Award, the following conditions should be complied with before the contract may
be awarded:

a) Submission of the following documents:

28
 i) Valid JVA, if applicable;

ii) The SEC Certificate of Registration of the foreign corporation, if

applicable; or

iii) Valid PCAB license and registration for the type and cost of the
Project for foreign bidders when the Treaty or International or
Executive Agreement expressly allows submission of such license
and registration as a pre-condition to the Notice of Award.

b) Posting of the performance security in accordance with ITB Clause 30; and

c) Signing of the contract as provided in ITB Clause 29.

29) Signing of the Contract

29.1 Within ten (10) calendar days from receipt of the Notice of Award, the winning
Bidder shall post the required performance security, sign and date the contract,
and return it to the Procuring Entity.

29.2 The Procuring Entity shall enter into a contract with the successful Bidder within
the same ten (10) calendar day period provided that all the documentary
requirements are complied with.

29.3 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 (e.g., Bidder’s response to
request for clarifications on the bid), including corrections to the bid, if any,
resulting from the Procuring Entity’s bid evaluation;

d) Performance Security;

e) Notice of Award of Contract; and

f) Other contract documents that may be required by existing laws and/or

specified in the BDS.

30) Performance Security

30.1 To guarantee the faithful performance by the winning bidder of its obligations under
the contract, it shall post a performance security prior to the signing of the contract.
Furthermore, the successful bidder shall be required to update the performance
security posted before to the issuance of a variation order, if any.

30.2 Sectors enumerated under Section 76.1of the IRR may be allowed to post
Performance Securing Declaration (PSD) as specified in the BDS.

30.3 The performance security shall be in a form selected by the Procuring Entity in the
amount indicated in the BDS, which shall not be less than the percentage of the
ABC in accordance with the following price schedule:

Form of Performance Security Amount of Performance Security

(Not less than the Percentage of
the Total Contract Price)

29
 a) Cash or Cashier’s or Manager’s
check issued by a bank.

For biddings conducted by LGUs, the

cashier’s or manager’s check may be
issued by other banks certified by the
BSP as authorized to issue such
financial instrument.
Ten percent (10%)
b) Bank draft or guarantee or
irrevocable Letter of Credit issued by a
local bank. If issued by a foreign bank,
it shall be confirmed or authenticated
by a local bank.

c) Surety bond callable upon demand

issued by a surety or insurance
company duly certified by the IC as Thirty Percent (30%)
authorized to issue such security.

30.4 The performance security shall be denominated in Philippine Peso and posted in
favor of the Procuring Entity, which shall be forfeited in the event it is established
that the winning bidder is in default in any of its obligations under the contract.

31) Notice to Proceed

The Procuring Entity shall issue the Notice to Proceed to the winning Bidder not later than
three (3) calendar days from the date of approval of the contract by the appropriate
signatories. All notices called for by the terms of the contract shall be effective only at the
time of receipt thereof by the successful Bidder.

Except as otherwise stipulated in the SCC Clause 9.1, materials and equipment delivered
onsite but not yet incorporated in the Works shall not be included for payment.

32) Protest Mechanism

Decisions of the BAC in all stages of procurement may be protested to the HoPE in
accordance with Section 83 of the IRR.

30
 Section III. Bid Data Sheet

ITB Clause

The Procuring Entity is City Government of Baguio-Bids and Awards

Committee (BAC) for Infrastructure

1.1 The Project title is REMODELING OF MULTI-PURPOSE HALL, ROOFING,

WINDOW GRILLS, REPAINTING INSIDE & OUTSIDE, INSATALLATION
OF SIGNAGE AND CONTSTRUCTION OF TANOD OUTPOST AT
CRESENCIA VILLAGE

The identification number of the Contract is 8918-25-060

2 The Funding Source is:

2.1 The GOP through the source of funding as indicated below for the year
2025 in the amount of FIVE MILLION PESOS (P5,000,000.00).

2.2 The source of funding is:

LGUs, the Supplemental Budget, as approved by the Sanggunian

3.1 No further instructions.

5.2 Bidding is restricted to eligible bidders as defined in ITB Clause 5.2.

5.4 Contracts similar to the Project shall be those described as follows:

The Bidder must have completed an SLCC that is similar to the procurement
project to be bid, and whose value must be equivalent to at least fifty percent
(50%) of the ABC, adjusted to current prices using the Philippine Statistics
Authority (PSA) consumer price indices; Provided, that any change to the fifty
percent (50%) requirement may be allowed, subject to the recommendation
of the Procuring Entity, which shall be submitted to the GPPB for
consideration; Provided, further, that contractors under Small A and Small B
categories without similar experience on the procurement project to be bid
may be allowed to bid if the cost of such contract is not more than the
Allowable Range of Contract Cost of their registration based on the
guidelines as prescribed by the PCAB.

No further instructions.
7

8.1 Subcontracting is not allowed.

8.3 Not Applicable.

8.4 State either “Subcontracting is not allowed.” or indicate the subcontracting

arrangement including the time of submission of the eligibility documents of
the subcontractor.

9.1 The Procuring Entity will hold a pre-bid conference for this Project on
October 14, 2025, 2:00 P.M. at the Multi-Purpose Hall, City Hall, Baguio
City and/or through video-conferencing, webcasting, or similar technology,
or a combination thereof via zoom Meeting id: 853 9228 6955, Passcode:
baguiocity

31
10.1 The Procuring Entity’s address is:
City Government of Baguio-Bids and Awards Committee (BAC) for
Infrastructure, City Hall, Baguio City

12.1(b) SMALL B
12.1(h)(ii) The minimum work experience requirements for key personnel are the
following:

1 Construction Foreman - Five (5) Years of experience

1 Safety Officer - Five (5) Years of experience
1 First Aider - Five (5) Years of experience
1 Electrical Engineer - Five (5) Years of experience
1 Master Plumber - Five (5) Years of experience
12.1(h)(iii) The minimum major equipment requirements are the following:

Rental
Equipment Number of Unit/s
Dump Truck 1
Concrete Mixer 1
Bar Bender 1
Concrete Vibrator 1
Cut-Off Machine 3
Angle Grinder 3
PPR Fusion Machine 1
Welding Machine 3
H-Frame 10
12.4 The ABC is FIVE MILLION PESOS (P5,000,000.00). Any bid with a financial
component exceeding this amount shall not be accepted.

14.1 The bid prices shall be quoted in Philippine Peso.

14.3 Payment shall be made in Philippine Peso.

15.1 Bids will be valid for shall not exceed one hundred twenty (120) calendar
days from the date of the opening of bids

16.1 The Bid Security shall be in the form of any of the following:

1. Bid Securing Declaration.

2. The amount of not less than P100,000.00 [ 2% of ABC], if bid

security is in cash.

3. The amount of not less than P100,000.00 [2% of ABC] if bid security
is in cashier’s check.

16.2 The Bid Security shall be valid for one hundred twenty (120) calendar days
from the date of the opening of bids

16.3 In case of extension of bid validity and bid security validity period,

Substitution of the bid security form is allowed. Bid Securing Declaration and
the following forms may be used:

a) Cash or Cashier’s or Manager’s Check issued by a Bank.

b) Bank draft/guarantee or irrevocable Letter of Credit issued by a Bank:

Provided, however, that it shall be confirmed or authenticated by a local Bank,
if issued by a foreign bank.

32
19 The address for submission of bids is at the City Budget Office, City Hall,
Baguio City.

The deadline for submission of bids in on or before October 28, 2025, 2:00
P.M.

21.5 No further instructions.

22.1 The date and time of bid opening is October 28, 2025, 2:00 P.M.

The place of bid opening is Multi-Purpose Hall, City Hall, Baguio City

22.2(b) Not applicable.

25.3 (b)(i) The quality component shall be assessed on the basis of criteria with
corresponding numerical weights, which may include qualitative,
environmental, or social aspects linked to the subject matter of the contract.
These may include any or a combination of the following:

a) Quality and technical merit, including technical competence and a

credible track record;

b) Aesthetic and functional design and characteristics;

c) Approach and methodology;

d) Accessibility;

e) Tools and equipment;

f) Social, environmental, economic, and innovative characteristics;

g) Organization, qualification, and experience of employees or staff

assigned to perform the contract;

h) Ongoing contracts and work commitments;

i) After-sales service and technical assistance;

j) Delivery conditions, such as delivery period and delivery process;

k) Disposal measures; or

l) Other relevant criteria in relation to the subject Goods or

Infrastructure Projects to be procured.

25.3 (b)(iii) [indicate the weights given to the price and quality proposals, including the
sustainability of materials or structures with green specifications]

25.3(b) [indicate the criteria with corresponding numerical weights of the quality
component]

25.3 (c)(i)
Not applicable.
25.5 (a)
Partial bid is not allowed. The infrastructure project is packaged in a single
lot and the lot shall not be divided into sub-lots for the purpose of bidding,
evaluation, and contract award.

25.5 (b)
Bid correction shall be allowed.

33
25.6 No further instructions.

26.1 None.

29.3(f) 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 or
other acceptable tools of project scheduling.

30.2 Not applicable.

30.3 The Performance Security shall be in the form:

The amount of not less than P500,000.00 [10% of ABC], if performance

security is in cash.

34
 Section IV. General Conditions of the Contract

1) General Terms

In this Contract, the following terms shall be interpreted as indicated:

1.1 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 by issuing an extension of time
or an acceleration order.

1.2 The Procuring Entity is the party who employs the Contractor to carry out the
Works stated in the SCC.

1.3 The Site is the place provided by the Procuring Entity where the Works shall be
executed and any other place or places which may be designated in the SCC, or
notified to the Contractor by the Procuring Entity as forming part of the Site.

1.4 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.

1.5 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; (iii) and the carrying out of all duties and obligations of the
Contractor imposed by this Contract as described in the SCC. In line with this,
Temporary Works are works designed, constructed, and installed by the Contractor
that are needed for construction or installation of the Permanent Works, which are
subsequently removed.

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 will 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).

2.3 The documents forming this Contract shall be interpreted in the following order of
priority:

a) Contract Agreement;

b) Bid Data Sheet;

c) Instructions to Bidders;

d) Addenda to the Bidding Documents;

e) Special Conditions of Contract;

f) General Conditions of Contract;

35
 g) Specifications;

h) Bill of Quantities; and

i) Drawings.

3) Governing Language and Law

3.1 This Contract shall be interpreted in accordance with the laws of the Republic of
the Philippines.

3.2 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.

4) Communications

Communications between parties that are referred to in the Conditions shall be effective
only if made 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 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 1.3,
the Procuring Entity will be deemed to have delayed the start of the relevant
activities. The resulting adjustments in contract time to address such delay shall
be in accordance with GCC Clause 44.

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 its own cost any additional facilities outside the Site required by it for
purposes of the Works.

5.4 The Contractor shall allow the Procuring Entity and any person authorized by the
Procuring Entity 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, 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 that comply
with the applicable laws where the Site is located.

36
 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 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 its subcontractors shall abide
at all times by all labor laws, including child labor related enactments, and other
relevant rules.

6.8 The Contractor shall submit to the Procuring Entity for consent the name and
particulars of the person authorized to receive instructions on behalf of the
Contractor.

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 of such discoveries and carry out
the Procuring Entity’s instructions in dealing with them.

7) Subcontracting

7.1 Unless otherwise indicated in the SCC, the Contractor shall not subcontract
portions of the Works beyond the percentage specified in BDS Clause 8.1. If
subcontracting is allowed, the arrangement, including the timing for submission of
the subcontractor’s eligibility documents, shall be disclosed.

7.2 For subcontracting arrangements, the following rules shall apply for both locally-
funded projects and to projects financed through Official Development Assistance,
except those covered by treaty, or international, or executive agreements:

a) The subcontracted portion of the contract shall be subject to the approval

of the HoPE and the following conditions:

i) The subcontracted portion shall not exceed fifty percent (50%), or

a different percentage on a per project basis as approved by the
GPPB. The threshold percentages fixed herein shall be subject to
the periodic review and adjustments as may be deemed appropriate
by the GPPB; and

ii) The subcontracted portion shall be limited to components that are

not deemed "significant or material" to the project as determined by
the Procuring Entity.

b) Subcontracting arrangement, if allowed, including the time of submission

of the eligibility documents of the subcontractor, shall be disclosed in the
Bidding Documents;

c) Subcontractors must meet the eligibility criteria and shall submit the same
eligibility documents as the general contractor.

37
 Failure of a subcontractor to meet the eligibility criteria does not affect the
eligibility of the general contractor for the procurement project. In such
case, the portion intended to be subcontracted to the ineligible
subcontractor shall be assumed by the general contractor;

d) The general contractor shall remain liable for the subcontractor’s actions,
defaults, delays, and negligence;

e) The general contractor and the subcontractor are obliged to comply with
the provisions of the contract and shall share liability, jointly and severally,
in cases of violation of safety standards or other labor standards insofar as
the subcontracted portion is concerned; and

f) For purposes of post-qualification in accordance with its objective and

process under the IRR, the value of the entire completed and accepted
Project, including the subcontracted portion, shall be credited as
experience of the general contractor. In the case of the subcontractor, the
following rules shall apply:

i) The subcontractor shall get credit for one hundred percent (100%)
of the value of the subcontracted portion of the project performed;

ii) Subcontractors shall be eligible to concessional windows of GFIs

that treat receivables from the government as loan security; the
receivables of subcontractors due from their general contractor shall
similarly be accepted as loan security by GFIs; and

iii) Contract performance monitoring, such as the use of Constructors

Performance Evaluation System (CPES), among others, shall also
be mandatorily applied to the work experience of the
subcontractors.

8) Advance Payment

8.1 The Procuring Entity shall make an advance payment on the Contract Price 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.

8.2 The advance payment shall be made only upon:

i) Written request of the contractor which shall form part of the contract document;
and

ii) Submission of an irrevocable standby Letter of Credit of equivalent value from

a bank as confirmed by the Procuring Entity; a bank guarantee; or a surety bond
callable upon demand issued by a duly licensed surety or insurance company, at
the option of the Procuring Entity.

8.3 The advance payment shall be recovered from the Contractor through deductions
in amounts equivalent to the percentage of the total contract price that corresponds
to the value of the advance payment granted.

8.4 Once a month, Contractors may submit documents, such as Monthly Certificates,
to show the progress or partial completion of a project. The Contractor may reduce
its standby letter of credit or guarantee instrument by the amounts refunded by the
Monthly Certificates, or any equivalent document subject to auditing and
accounting rules, in the advance payment.

9) Progress Payments

9.1 Once a month, the Contractor may submit a statement of work accomplished
(SWA) or progress billing and corresponding request for progress payment for

38
 work accomplished. The SWA should show the amounts which the Contractor
considers itself to be entitled to up to the end of the month, to cover (i) the
cumulative value of the Works it executed to date, based on the items in the Bill of
Quantities, and (ii) adjustments made for approved Variation Orders executed.
Alternatively, the Procuring Entity may require in the Bidding Documents that the
SWA or progress billing and the corresponding request for progress payment may
only be submitted upon actual completion of the Infrastructure Project or a specific
portion, segment, milestone or phase thereof.

The Procuring Entity or Project Engineer shall check the Contractor’s SWA and
certify the amount to be paid to the Contractor as progress payment. Materials and
equipment delivered onsite but not yet incorporated in the Works shall not be
included for payment, except as otherwise stipulated in the SCC.

9.2 The Procuring Entity shall deduct the following from the certified gross amounts to
be paid to the Contractor as progress payment:

a) Cumulative value of the work previously certified and paid for.

b) Portion of the advance payment to be recouped.

c) Retention money in accordance with the conditions of the contract.

d) Amount to cover third-party liabilities.

e) Amount to cover uncorrected discovered defects in the Works.

9.3 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 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.

9.4 The first progress payment may be paid by the Procuring Entity to the Contractor,
as indicated in the SCC; Provided, That at least a percentage of the Works has
been accomplished as certified by the Procuring Entity and as indicated in the
SCC.

9.5 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.

10) Payment Documents

10.1 Subject to existing accounting and auditing rules and regulations, the Contractor
shall submit to the Procuring Entity monthly statements of the estimated value of
the work executed less the cumulative amount certified previously.

10.2 The Procuring Entity shall check the Contractor’s monthly statement and certify
the amount to be paid to the Contractor.

10.3 The value of Work executed shall:

a) be determined by the Procuring Entity;

b) comprise the value of the quantities of the items in the Bill of Quantities
completed; and

c) include the valuations of approved variations.

10.4 The Procuring Entity 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.

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11) Retention

11.1 The Procuring Entity shall retain from each payment due to the Contractor an
amount equal to a percentage thereof using the rate as specified in GCC Clause
11.2. The said amount will serve to guarantee indemnity for uncorrected
discovered defects and third-party liabilities arising from this Contract. This
retention money shall be utilized if the contractor fails to repair the discovered
defects. Should the retention money be insufficient, the PE may forfeit the
performance security, which may ultimately lead to the termination of the contract.

11.2 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 the 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 be imposed, which may be decreased to 5 percent (5%) by the
Procuring Entity based on justifiable causes.

11.3 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
bank, bank guarantees or surety bonds callable on demand, of amounts equivalent
to the retention money substituted for and acceptable to Government; 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.

11.4 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.

12) Performance Security

12.1 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 winning Contractor shall furnish the performance security in any of the
forms prescribed in ITB Clause 30 in relation to BDS Clause 30.2 and 30.3.

12.2 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.

12.3 The performance security shall remain valid until issuance by the Procuring Entity
of the Certificate of Final Acceptance. In case the performance security issued is
valid for a specific period shorter than the term of the contract, including the defects
liability period, the same shall be renewed or extended as often as necessary and
immediately submitted to the Procuring Entity. In case of approved contract time
extensions, the Contractor shall cause the extension of the validity of the
performance security to cover the said extensions.

12.4 The performance security may be released by the Procuring Entity after the
issuance of the Certificate of Final Acceptance; Provided, That the Procuring Entity
has no claims filed against the performance security.

12.5 The Contractor shall post an additional performance security following the amount
and form specified in ITB Clause 30 to cover any cumulative increase of more

40
 than ten percent (10%) over the original value of the contract as a result of change
orders, extra work orders and supplemental agreements, as the case may be.

12.6 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.

12.7 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 No. 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.

13) Detailed Engineering and Site Investigation Reports

13.1 The Contractor, in preparing the Bid, shall rely on all Site Investigation Reports
referred to in the SCC supplemented by any information obtained by the
Contractor.

13.2 Detailed engineering shall proceed only on the basis of the feasibility or preliminary
engineering study made which establishes the technical viability of the project and
conformance to land use and zoning guidelines prescribed by existing laws. The
findings contained in the feasibility study, if undertaken for the project, shall be
examined. If, in the course of this exercise, it is found that amendments would be
desirable in the design standards of principal features, as proposed, specific
recommendations for such changes shall be supported by detailed justifications,
including their effects on the cost, and the economic justifications, if necessary.

13.3 A schedule of detailed engineering activities shall include the following:

a) Survey;

b) Site Investigation;

c) Soils and Foundation Investigation;

d) Construction Materials Investigation;

e) Preparation of Design Plans;

f) Preparation of Technical Specifications;

g) Preparation of Quantity and Cost Estimates;

h) Preparation of Scope of Work;

i) Preparation of Proposed Construction Schedule (and estimated Cash Flow

for projects with Schedule over six (6) months;

j) Preparation of Site or Right-of-Way Plans including Schedule of Acquisition;

k) Preparation of Utility Relocation Plan;

l) Preparation and Submission of Design Report;

m) Environmental Impact Statement for critical project, as defined by the

Department of Environment and Natural Resources;

41
 n) Preparation of minimum requirements for a Construction Safety and Health
Program for the project being considered;

o) Value Engineering Studies; and

p) Preparation of report on asset climate hazards, risk assessment, disaster

response strategies, and readiness planning.

13.4 Work under detailed architectural and engineering design shall include, among
others, the items stated in Section 8.3 of the IRR.

14) Licenses and Permits

The Procuring Entity may, if requested by the Contractor, assist him in applying for
permits, licenses or approvals, which are required for the Works.

15) Contractor’s Risk and Warranty Security

15.1 From the time project construction commenced up to final acceptance, the
Contractor shall assume full responsibility for any damage or destruction of the
works, except those occasioned by force majeure; and the safety, protection,
security, and convenience of its personnel, third parties, and the public at large, as
well as the works, equipment, installation and the like to be affected by its
construction work.

15.2 The defects liability period for infrastructure projects shall be one (1) year from
project completion up to final acceptance by the Procuring Entity. During this
period, the Contractor shall undertake the repair works, at its own expense, of any
damage to the Works on account of the use of materials of inferior quality, defects
in the construction, or due to any violation of the terms of the contract, within ninety
(90) calendar days from the time the HoPE has issued an order to undertake repair.
In case of failure or refusal to comply with this mandate, the Procuring Entity shall
undertake such repair works and shall be entitled to full reimbursement of
expenses incurred therein upon demand.

15.3 The defects liability period shall be covered by the performance security of the
Contractor required in Section 68 of the IRR, which shall guarantee that the
Contractor performs its responsibilities stated in GCC Clause 15.1 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 properties to attachment or garnishment proceedings, and may impose
the appropriate penalty under Sections 99, 100, and 101 of the IRR. All payables
of the GoP in its favor shall be offset to recover the costs.

15.4 The following persons shall be held responsible for “Structural Defects,” i.e., major
faults or flaws or 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 or 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 or 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;

42
 c) Procuring Entity’s Representatives or Project Manager or Construction
Managers and Supervisors – The project owner’s representative, project
manager, construction manager, and supervisor shall be held liable in
cases where the Structural Defects or Failures are due to 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 and the use of
substandard construction materials in the project;

d) Third Parties - Third Parties shall be held liable in cases where Structural
Defects or 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; and

e) Users - In cases where Structural Defects or Failures are due to abuse or

misuse by the End-User or Implementing Unit 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.

15.5 The warranty against Structural Defects or Failures, except those occasioned by
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. On the
other hand, such warranty shall likewise be applied against non-structural defects
for instances that pertain to faults or deficiencies in non-load bearing components
or finishes of the Project, such as minor cracks, leaks, or defects in workmanship
or materials, which do not affect the stability or safety of the structure but may
impact its appearance, functionality, or usability.

15.6 To guarantee that the Contractor shall perform its responsibilities, it shall be
required to post a warranty security, which shall be stated in Philippine Peso, in
the form chosen by the Procuring Entity in accordance with the following schedule:

Amount of Warranty Security

Form of Warranty Not less than the Percentage
(%) of Total Contract Price
(a) Cash or letter of credit issued by bank;
Provided, however, that the letter of
credit shall be confirmed or
authenticated by a local bank, if
issued by a foreign bank.
Five Percent (5%)
For biddings conducted by LGUs, the
Letter of Credit may be issued by
other banks certified by the BSP as
authorized to issue such financial
instrument.
(b) Bank guarantee confirmed by bank.

For biddings conducted by LGUs, the

bank draft/guarantee may be issued Ten Percent (10%)
by other banks certified by the BSP
as authorized to issue such financial
instrument.
(c) Surety bond callable upon demand
issued by GSIS or any surety or
Thirty Percent (30%)
insurance company duly certified by
the Insurance Commission

15.7 The warranty security shall be stated in Philippine Peso and shall remain effective
within one (1) year from the date of issuance of the Certificate of Final Acceptance

43
 by the Procuring Entity, and returned only after the lapse of the said one (1) year
period. This one (1) year period shall cover both structural and non-structural
defects or failures; Provided, That in cases of structural defects or failures,
warranties beyond the one (1) year period shall be subject to applicable laws,
rules, and regulations such as the New Civil Code of the Philippines.

15.8 In case of structural/non-structural defects or failure occurring during the applicable

warranty period provided in GCC Clause 15.5, 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 imposition of administrative sanctions as
prescribed by RA No. 12009 and without prejudice to the imposition of civil and
criminal sanctions as provided under applicable laws against the responsible
persons as well as the forfeiture of the warranty security posted in favor of the
Procuring Entity.

16) Procuring Entity’s Risk

16.1 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 or
contracted by it, 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.

17) Insurance

17.1 The Contractor shall, under its name and at its own expense, obtain and maintain,
for the duration of this Contract, the following insurance coverage:

a) Contractor’s All Risk Insurance, with an exception for Simple Infrastructure

Projects, as applicable;

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.

17.2 The Contractor shall provide evidence to the Procuring Entity 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.

17.3 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 the insurance policies in force including the receipts for payment
of the current premiums.

44
 The above insurance policies shall be obtained from any reputable insurance
company approved by the Procuring Entity.

17.4 If the Contractor fails to obtain and keep in force the insurances referred to herein
or any other insurance required to be obtained 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.

17.5 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 9 until the Contractor
complies with this Clause.

17.6 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;

iv) been suspended by the Insurance Commission and its license to

engage in business or its authority to issue insurance policies has
been 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.

18) Liquidated Damages

18.1 When the Contractor fails to satisfactorily complete the Works under the contract
within the specified contract duration, inclusive of duly granted time extensions, if
any, the Contractor shall be liable for liquidated damages in an amount equal to at
least one-tenth (1/10) of one percent (1%) of the cost of the unperformed portion
of the Works for every day of delay.

18.2 In computing liquidated damages, the Procuring Entity shall determine the usability
of the project. A project or a portion thereof may be deemed usable when it starts
to provide the desired benefits as certified by the End-User or Implementing Unit
and approved by the HoPE.

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

18.4 In case the total sum of liquidated damages reaches ten percent (10%) of the total
contract price, the Procuring Entity may rescind or terminate the contract, without

45
 prejudice to other courses of action and remedies available under the
circumstances.

18.5 If the Intended Completion Date is extended after liquidated damages have been
paid, the Procuring Entity shall correct any overpayment of liquidated damages by
the Contractor by adjusting the next payment schedule.

19) Settlement of Disputes

19.1 Any dispute arising from the implementation of a contract covered by the Act and
the IRR shall primarily be resolved and settled amicably by mutual consultation or
agreement.

19.2 In case of failure to settle the dispute amicably, the parties may mutually agree in
writing to resort to other modes of alternative dispute resolution (ADR) to promote
efficiency in the procurement process. Accordingly, they are encouraged to select
the most expeditious mode of ADR available.

If arbitration is chosen as the ADR method, this shall be incorporated as a provision

in the contract and referred to the Arbitrator specified in the SCC.

19.3 If the dispute remains unresolved after exhausting the remedies provided above,
it may be submitted to other forms of alternative dispute resolution, such as
mediation, conciliation, early neutral evaluation, mini-trial, or any combination
thereof, in accordance with RA No. 9285, otherwise known as the "Alternative
Dispute Resolution Act of 2004”. However, disputes that are within the competence
or jurisdiction of the Construction Industry Arbitration Commission shall be referred
to the same for resolution.

20) 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.

21) Termination for Breach of Contract

21.1 The Procuring Entity shall terminate the contract for breach thereof when any of
the following conditions are present:

a) 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 No. 1870, s. 1983;

b) Due to the Contractor’s fault and after the contract time has expired, it has
incurred a negative slippage of ten percent (10%) or more in the completion
of the work;

c) The Contractor abandons the contract works, plainly demonstrates an

intention not to continue the performance of the Contractor’s obligations
under the contract, refuses or fails to comply with the Procuring Entity’s
instructions, or fails to proceed expeditiously and without delay despite a
written notice by the Procuring Entity;

d) When the Contractor, without reasonable excuse, fails to comply with the
Notice of Rejection given by the Project Engineer that, after examination
therein, the Infrastructure Project is found to be defective or otherwise not
in accordance with the Contract, or a Project Engineer’s instruction to
conduct remedial work, within 30 days after receiving the said notice;

e) The Contractor 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 work plan and equipment deployment
schedule as required for the project;

46
 f) The Contractor does not execute the Works in accordance with the contract
or persistently or flagrantly neglects to carry out its obligations under the
contract;

g) The Contractor neglects or refuses to remove materials or to perform a new

work that has been rejected as defective or unsuitable;

h) The Contractor subcontracts any part of the contract works without

approval by the Procuring Entity; or

i) The Contractor becomes bankrupt or insolvent; goes into liquidation,

administration, reorganization, winding-up, or dissolution; becomes subject
to the appointment of a liquidator, receiver, administrator, manager, or
trustee; enters into a composition or arrangement with the Contractor’s
creditors; or any act is done or any event occurs which is analogous to or
has a similar effect to any of these acts or events under applicable laws.

21.2 All materials on the Site, Plant, Works, including Equipment paid under this
Contract, including those identified by the Procuring Entity in the SCC pursuant to
GCC Clause 9.1, shall be deemed to be the property of the Procuring Entity if this
Contract is terminated because of the Contractor's breach.

22) Termination Due to Force Majeure

22.1 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 could not have been foreseen, or 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.

22.2 If this Contract is discontinued by an outbreak of war or by any other similar event
entirely outside the control of either the Procuring Entity or the Contractor, the
Procuring Entity shall certify that this Contract has been discontinued. The
Contractor shall make the Site safe and stop work as quickly as possible after
receiving the 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 by
the Procuring Entity.

22.3 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.

22.4 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, in relation to
GCC Clause 9.1 and 21.2, adjusted by the following:

(a) any sum to which the Contractor is entitled under GCC Clause 30; and

(b) any sum to which the Procuring Entity is entitled.

22.5 The net balance due shall be paid or repaid within a reasonable time period from
the time of the notice of termination.

23) Termination by Contractor

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;

47
 b) Substantial failure of the Procuring Entity to perform its obligations under the
contract, and such failure constitutes a material breach of the Procuring Entity’s
obligations under the contract;

c) Prolonged suspension by the Procuring Entity, through no fault of the Contractor,

which affects the substantial part of the Infrastructure Project; or

d) 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.

24) Termination for Convenience

The Procuring Entity, by notice sent to the Contractor, may terminate the Contract, in
whole or in part, at any time, if it has determined the existence of any of the following
conditions that make contract implementation economically, financially, or technically
impractical or unnecessary:

i) If physical and economic conditions have significantly changed so as to

render the project no longer economically, financially, or technically
feasible, as determined by the HoPE; or

ii) The HoPE has determined the existence of conditions that make project
implementation impractical or unnecessary, such as, but not limited to,
fortuitous events, changes in laws and government policies.

25) Termination for Unlawful Acts

The Procuring Entity may terminate the contract in case it is determined prima facie that
the Contractor, including any joint venture partner therein, has engaged, before or during
the implementation of the contract, in unlawful deeds and behaviors relative to contract
acquisition and implementation. These unlawful acts include, but are not limited to, the
following:

a) Corrupt, fraudulent, collusive, coercive, and obstructive practices as defined in

ITB Clause 3.10, unless otherwise specified in the SCC;

b) Drawing up or using forged documents;

c) Using adulterated materials, means, or methods, or engaging in production

contrary to rules of science or trade; or

d) Any other act analogous to the foregoing.

26) Termination for Other Causes

26.1 The Procuring Entity may terminate this Contract, in whole or in part, at any time
for its convenience. The HoPE may terminate this Contract for the convenience
of the Procuring Entity if physical and economic conditions have significantly
changed so as to render the project no longer economically, financially, or
technically feasible, as determined by the HoPE; or if the HoPE has determined
the existence of conditions that make project implementation impractical or
unnecessary, such as, but not limited to, fortuitous events, changes in laws and
government policies.

26.2 The Procuring Entity or the Contractor may terminate this Contract if the other party
causes a fundamental breach of this Contract.

26.3 Other 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;

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 b) The Procuring Entity instructs the Contractor to delay the progress of the
Works, and the instruction is not withdrawn within twenty-eight (28) days;

c) A payment certified by the Procuring Entity is not paid to the Contractor

within eighty-four (84) days from the date of the Procuring Entity’s
certificate;

d) The Procuring Entity 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;

e) The Contractor does not maintain a Security, which is required;

f) The Contractor has delayed the completion of the Works by the number of
days for which the maximum amount of liquidated damages can be paid,
as defined in the GCC 18; and

26.4 The Funding Source or the Procuring Entity, as appropriate, will seek the
imposition of administrative sanctions as prescribed by RA No. 12009 and without
prejudice to the imposition of civil and criminal sanctions as provided under
applicable against individuals and organizations deemed to be involved with
corrupt, fraudulent, or coercive practices.

26.5 When persons from either party to this Contract gives notice of a fundamental
breach to the Procuring Entity in order to terminate the existing contract for a cause
other than those listed under GCC Clause 26.3, the Procuring Entity shall decide
whether the breach is fundamental or not.

26.6 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.

27) Procedures for Termination of Contracts

27.1 The following provisions shall govern the procedures for the termination of this
Contract:

a) Verification - Upon receipt of a written report of acts or causes which may

constitute grounds for termination as aforementioned, or upon its own
initiative, the End-User or Implementing Unit shall, within a period of seven
(7) calendar days, verify the existence of such grounds and cause the
execution of a Verified Report, with all relevant evidence attached;

b) Notice to Terminate - Upon recommendation by the End-User or

Implementing Unit, the HoPE shall terminate contracts only by written
notice to the Contractor conveying the termination of the contract. The
notice shall state:

(i) that the Contract is being terminated for any of the grounds
aforementioned, and a statement of the acts that constitute the
grounds 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) Show Cause - Within a period of seven (7) calendar days from receipt of
the Notice of Termination, the Contractor shall submit to the HoPE a

49
 verified position paper stating why the contract should not be terminated. If
the Contractor fails to show cause after the lapse of the seven (7) day
period, either by inaction or by default, the HoPE shall issue an order
terminating the contract;

d) Rescission of Notice of Termination - The Procuring Entity may, at any

time before receipt of the Contractor’s verified position paper, 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) Decision - Within a non-extendible period of ten (10) calendar days from

receipt of the verified position paper, the HoPE shall decide whether or not
to terminate the contract. It shall serve a written notice to the Contractor of
its decision and, unless otherwise provided, the contract is deemed
terminated from receipt of the Contractor of the notice of the decision. The
termination shall only be based on the grounds stated in the Notice to
Terminate.

f) Contract Termination Review Committee (CTRC) - The HoPE may

create a committee to assist him in the discharge of its functions under the
IRR. All decisions recommended by the CTRC shall be subject to the
approval of the HoPE

g) Take-over of Contracts - If a Procuring Entity terminates the contract due

to default, insolvency, or for cause, it may enter into a Negotiated
Procurement (Take-over of Contracts) pursuant to Section 35(c) of the IRR.

h) Notice by Contractor - The Contractor must serve a written notice to the

Procuring Entity of its intention to terminate the contract at least thirty (30)
calendar days before its intended termination. The contract is deemed
terminated if it is not resumed in thirty (30) calendar days after the receipt
of such notice by the Procuring Entity.

27.2 Notwithstanding Section 99 of RA No. 12009 and 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, as
stated in the SCC.

28) Approval of Drawings and Temporary Works by the Procuring Entity

28.1 All Drawings prepared by the Contractor for the execution of the Temporary Works,
are subject to prior approval by the Procuring Entity before its use.

28.2 The Contractor shall be responsible for design of Temporary Works.

28.3 The Procuring Entity’s approval shall not alter the Contractor’s responsibility for
design of the Temporary Works.

28.4 The Contractor shall obtain approval of third parties to the design of the Temporary
Works, when required by the Procuring Entity.

29) Acceleration and Delays Ordered by the Procuring Entity

29.1 When the Procuring Entity wants the Contractor to finish before the Intended
Completion Date, the Procuring Entity 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.

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 29.2 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.

30) Contractor's Right to Claim

If the Contractor incurs cost as a result of any of the events under GCC Clauses 22, 23
and 24 in relation to GCC Clause 20, 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.

31) Dayworks

31.1 Subject to GCC Clause 40 on Variation Order, and if applicable as indicated in the
SCC, the Contractor shall determine the Dayworks rates to be included or
indicated in the Bid. The Dayworks rates in the Contractor’s bid shall be used for
small additional amounts of work only when the Procuring Entity has given written
instructions in advance for additional work to be paid for in that way.

31.2 All work to be paid for as Dayworks shall be recorded by the Contractor on forms
approved by the Procuring Entity. Each completed form shall be verified and
signed by the Procuring Entity within two days of the work being done.

31.3 The Contractor shall be paid for Dayworks subject to obtaining signed Dayworks
forms from both the Procuring Entity and Contractor.

32) Early Warning

32.1 The Contractor shall warn the Procuring Entity 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.

32.2 The Contractor shall cooperate with the Procuring Entity 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. Should such events or circumstances arise which increase
the Contract price or delay the execution of Works, the provisions on variation
order shall apply.

33) Program of Work

33.1 Within the time stated in the SCC, the Contractor shall submit to the Procuring
Entity for approval a Program of Work showing the general methods,
arrangements, order, and timing for all the activities in the Works.

33.2 An update of the Program of Work shall show the actual progress achieved on
each activity and the effect of the progress achieved on the timing of the remaining
work, including any changes to the sequence of the activities.

33.3 The Contractor shall submit to the Procuring Entity 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 may withhold the amount stated in the SCC from the next payment
schedule and continue to withhold this amount until the next payment after the date
on which the overdue Program of Work has been submitted.

33.4 The Procuring Entity’s approval of the Program of Work shall not alter the
Contractor’s obligations. A revised Program of Work produced by the Contactor
shall show the effect of any approved Variations, and shall include all Variations.
The Contractor may revise the Program of Work, based on the Variation Order,
and submit it to the Procuring Entity again.

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 33.5 When the Program of Work is updated, the Contractor shall provide the Procuring
Entity 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.

34) Management Conferences

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

34.2 The Procuring Entity 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 the actions to be taken shall
be decided by the Procuring Entity either at the Management Conference or after
the Management Conference. The Procuring Entity shall communicate these
responsibilities in writing to all who attended the Conference.

35) Bill of Quantities

35.1 The Bill of Quantities shall contain items of work for the construction, installation,
testing, commissioning of work, materials, and labor among others, to be done by
the Contractor.

35.2 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.

35.3 If the final quantity of any work item completed differs from the quantity indicated
in the Bill of Quantities, and the difference does not exceed twenty-five percent
(25%) of the original quantity for that item, the Procuring Entity shall adjust the
Contract accordingly.

This shall be allowed only if the total amount of all such changes does not go
beyond ten percent (10%) of the total Contract price, subject to applicable laws,
rules, and regulations.

35.4 If requested by the Procuring Entity, the Contractor shall provide the Procuring
Entity with a detailed cost breakdown of any rate in the Bill of Quantities.

36) Instructions, Inspections and Audits

36.1 The Procuring Entity shall at all reasonable times during construction of the Works
be entitled to examine, inspect, measure and test the materials and workmanship,
and to check the progress of the construction.

36.2 If the Procuring Entity 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. In the absence of
any defect, the test shall be a compensation event with no adverse consequences
to the contractor.

36.3 The Contractor shall permit the Funding Source named in the SCC to inspect the
Contractor’s accounts and records relating to the performance of the Contractor
and to have them audited by auditors appointed by the Funding Source, if so
required by the Funding Source.

37) Identifying Defects

The Procuring Entity 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.

52
 The Procuring Entity may instruct the Contractor to check noted defects and test any work
that the Procuring Entity considers as substandard and/or defective.

38) Correction of Defects

38.1 The Procuring Entity 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.

38.2 Every time notice of a defect is given, the Contractor shall correct the notified
defect within ninety (90) calendar days from the time the HoPE has issued an order
to undertake repair.

38.3 The Contractor shall correct the defects which they notice themselves before the
end of the Defects Liability Period.

38.4 The Procuring Entity shall certify that all defects have been duly corrected.

39) Uncorrected Defects

39.1 The Procuring Entity shall give the Contractor at least fourteen (14) days' notice of
its intention to use a third party to correct a Defect. If the Contractor does not
correct the Defect himself 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.

39.2 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.

40) Variation Orders

40.1 Variation Orders may be issued by the Procuring Entity to cover any increase or
decrease in quantities, including the introduction of new work items that are not
included in the original contract 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 Government after award of the contract.

Provided, That in case of positive or additive Variation Order/s, the cumulative

amount thereof shall not exceed ten percent (10%) of the original contract price;
Provided, further, That the scope of works shall not be reduced as to accommodate
a positive Variation Order. In all cases, the addition of works under Variation
Orders should be within the general scope of the project as bid and awarded.

40.2 Any cumulative positive Variation Order beyond ten percent (10%) of the original
contract price shall be the subject of another procurement project to be bid out if
the Works are separable from the original contract. In exceptional cases where it
is urgently necessary to complete the original scope of work, the HoPE, upon the
recommendation of the End-User or Implementing Unit, may authorize positive
Variation Order/s resulting to a cumulative value of the positive Variation Orders
beyond ten percent (10%) but not more than twenty percent (20%) of the original
contract price.

All progress payments shall first be charged against the advance payment until the
latter has been fully exhausted, at the option of the Procuring Entity.

40.3 A Variation Order may either be in the form of a Change Order or Extra Work
Order:

53
 a) A Change Order may be issued by the HoPE or duly authorized
representative to cover any increase or decrease in quantities of original
work items in the contract.

b) An Extra Work Order may be issued by the implementing official to cover

the introduction of new work necessary for the completion, improvement or
protection of the project which was 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.

40.4 For Variation Orders, the Contractor shall be paid for additional work items whose
unit prices shall be derived based on the following:

a) For additional or extra works duly covered by Change Orders involving

work items which are exactly the same or similar to those in the original
contract, the applicable unit prices of work items original contract shall be
used.

b) For additional or extra works duly covered by Extra Work Orders involving
new work items that are not in the original contract, the unit prices of the
new work items shall be based on the direct unit costs used in the original
contract (e.g., unit cost of cement, rebars, form lumber, labor rate,
equipment rental, etc.). All new components of the new work item shall be
fixed prices; Provided, The same is acceptable to both the Government and
the Contractor; Provided further, That the direct unit costs of new
components shall be based on the Contractor's estimate as validated by
the Procuring Entity concerned via documented canvass in accordance
with existing rules and regulations. The direct cost of the new work item
shall then be combined with the mark-up factor (i.e., taxes and profit) used
by the Contractor in its bid to determine the unit price of the new work item.

40.5 Under no circumstances shall a Contractor proceed to commence work under any
Change Order or Extra Work Order unless it has been approved by the HoPE or
its duly authorized representative. However, under any of the following conditions,
the Procuring Entity’s representative or Project Engineer may, subject to the
availability of funds and within the limits of its delegated authority, allow the
immediate start of work under any Change Order or Extra Work Order:

a) In the event of an emergency where the prosecution of the work is urgent

to avoid detriment to public service, or damage to life and/or property;
and/or

b) When time is of the essence;

Provided, however, That such approval is valid on work done up to the point where
the cumulative increase in value of work on the project which has not yet been duly
fully approved does not exceed five percent (5%) of the adjusted original contract
price.

Provided, further, That immediately after the start of work, the corresponding
Change Order or Extra Work Order shall be prepared and submitted for approval
in accordance with the abovementioned rules. Payments for Works satisfactorily
accomplished on any Change Order or Extra Work Order may be made only after
approval of the same by the HoPE or its duly authorized representative.

Provided, finally, That for a Change Order or Extra Work Order involving a
cumulative amount exceeding five percent (5%) of the original contract price, no
work thereon may be commenced unless said Change Order or Extra Work Order
has been approved by the HoPE or its duly authorized representative.

54
41) Contract Completion
Once the project reaches an accomplishment of ninety-five (95%) of the total contract
amount, the Procuring Entity may constitute an inspectorate team to conduct 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 within the approved remaining contract time. This, however, shall not preclude the
claim of the Procuring Entity for liquidated damages, if applicable.

42) Suspension of Work

42.1 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 event 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.

42.2 The Contractor or its duly authorized representative shall have the right to suspend
work operation on any or all projects or 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 that make it extremely dangerous, if not

possible, to work. However, this condition must be certified in writing by the
PNP station which has responsibility over the affected area and confirmed
by the Department of the Interior and Local Government (DILG) Regional
Director.

d) There was a 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 by the Procuring Entity’s authorized representative that the
documents are complete, unless there are justifiable reasons for the delay
in payment which shall be communicated in writing to the Contractor.

42.3 In case of total suspension, or suspension of activities along the critical path, which
is not due to any fault of the Contractor, the elapsed time between the effectivity
of the order suspending operation and the order to resume work shall be allowed
to the Contractor by adjusting the contract time accordingly.

43) Payment on Termination

43.1 If the Contract is terminated because of a breach of Contract by the Contractor,

the Procuring Entity 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.

55
 43.2 If the Contract is terminated for the Procuring Entity’s convenience, or due to a
breach of Contract by the Procuring Entity, the Procuring Entity 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.

43.3 The net balance due shall be paid or repaid within twenty-eight (28) days from the
notice of termination.

43.4 If the Contractor has terminated the Contract under GCC Clauses 23 to 24, the
Procuring Entity shall promptly return the Performance Security to the Contractor.

44) Extension of Contract Time

44.1 Should the amount of additional work or other special circumstances warrant the
entitlement of the Contractor to an extension of contract time, the Procuring Entity
shall determine the amount of such extension; Provided, That the Contractor has
notified the Procuring Entity of its claim for extension of contract time prior to the
expiration of the contract time, and within thirty (30) calendar days after the
additional work has been commenced or the circumstances leading to such claim
have arisen, as the case may be, in order to give the Procuring Entity the
opportunity to investigate the claim. Failure to provide such notice shall constitute
a waiver of such a claim by the Contractor. 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 to complete the contract work when, in the
Procuring Entity's opinion, the findings of facts justify an extension.

44.2 No extension of contract time shall be granted to the Contractor due to ordinary
unfavorable weather conditions and inexcusable negligence of the Contractor to
provide the required equipment, supplies, or materials.

44.3 Extension of contract time may be granted only when the affected activities fall
within the critical path of the Program Evaluation and Review Technique (PERT),
Critical Path Method (CPM), Precedence Diagram Method (PDM) or any other
project management tool.

44.4 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.

44.5 Extension of contract time may be granted in the cases indicated in the SCC.

44.6 The written consent of the bank, or surety or insurance company, as the case may
be, 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.

44.7 The Procuring Entity 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.

44.8 The Procuring Entity shall decide whether and by how much to extend the Intended
Completion Date within twenty (20) days of the Contractor asking the Procuring
Entity 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.

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45) Price Escalation
In the event of an extraordinary increase in prices of specific components of the
Infrastructure Project, price escalation may be considered, subject to prior approval of the
GPPB. If the cost of construction components increases by more than ten percent (10%)
of the unit price of work items, as determined against the prevailing price indices of the
PSA, a price escalation may be authorized at a no-loss, no-gain basis, using the
appropriate formula prescribed by the GPPB. For the purpose of this Section, the PSA
shall ensure that its price indices are region-specific and updated on a monthly basis

46) Completion
The Contractor shall request the Procuring Entity to issue a Certificate of Completion of
the Works, and the Procuring Entity will do so upon determining that the work is completed.

47) Taking Over

The Procuring Entity shall take over the Site and the Works within seven (7) days from the
date of issuance of a Certificate of Completion; Provided, That it shall not release the
Contractor of its responsibilities within the defects liability period.

48) Operating and Maintenance Manuals

48.1 If “as built” Drawings and/or operating and maintenance manuals are required, the
Contractor shall supply them by the dates stated in the SCC.

48.2 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 approval, the Procuring
Entity shall withhold the amount stated in the SCC from payments due to the
Contractor.

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 Section V. Special Conditions of Contract

GCC Clause
1.1 The Intended Completion Date is [Insert date].

NOTE: The contract duration shall be reckoned from the start date and
not from contract effectivity date.
1.2 The Procuring Entity is [Insert full name and address of the Procuring
Entity].
1.3 The Site is located at [insert location] and is defined in drawings No.
[Insert Number].

List here locations of other Sites, if any.

1.4 The Start Date is [Insert date].

NOTE: The start date shall be the date of receipt of the Notice to Proceed.
1.5 The Works consist of [insert a brief summary, including relationship to
other contracts under this Project].
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 [insert date].
6.5 The Contractor shall employ the following Key Personnel:

[List key personnel by name and designation]

7.1 No further instructions.

8.1 The amount of the advance payment is [insert amount as percentage of

the Contract Price and schedule of payment], to be made in [choose one
and delete the other: lump sum or two installments].

9.1 [Choose one and delete the other]

No further instructions.
or
Materials and equipment delivered onsite but not yet incorporated in the
Works shall be included for payment.

9.4 [Choose one and delete the other]

All progress payments shall first be charged against the advance
payment until the latter has been fully exhausted, at the option of the
Procuring Entity. Or

The advance payment shall be repaid by the contractor by deducting

fifteen percent (15%) from his periodic progress payments a percentage
equal to the percentage of the total contract price used for the advance
payment.

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 The first progress payment may be paid by the Procuring Entity to the
Contractor; Provided, That at least [insert percentage] of the Works has
been accomplished as certified by the Procuring Entity.

12.7 No further instructions.

13.1 The site investigation reports are: [list here or state none]
15.3 No further instructions.
15.5 Select one, delete the others.

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.

In case of semi-permanent structures, such as buildings of types 1, 2, and

3 as classified under the National Building Code of the Philippines,
concrete or asphalt roads, concrete river control, drainage, irrigation lined
canals, river landing, deep wells, rock causeway, pedestrian overpass,
and other similar semi-permanent structures: Five (5) years.

In case of other structures, such as Bailey and wooden bridges, shallow

wells, spring developments, and other similar structures: Two (2) years.
19.2 The Arbitrator is the person appointed jointly by the Procuring Entity and
the Contractor: [Insert name]

[Insert address]
20 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.”

25(a) No further instructions.

27.2 [indicate violations which will warrant suspension which may include, but
is not limited to the following violations below]

a) Failure of the Contractor, due solely to its 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;

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 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

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 its 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 fifteen (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.]
31.1 [Choose one, delete the other]

Dayworks are applicable at the rate shown in the Contractor’s original

Bid.

or

No dayworks are applicable to the contract.

33.1 The Contractor shall submit the Program of Work to the Procuring Entity
within [insert number] days of delivery from the Notice of Award.
33.3 The period between Program of Work updates is [insert number] days.

The amount to be withheld for late submission of an updated Program of

Work is [insert amount].
36.3 The Funding Source is the Government of the Philippines.

43.1 The percentage to apply to the value of the work not completed is [insert
percentage].

60
44.5 [insert cases when extension of contract time may be granted which may
include the enumeration below]

a) 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

b) major calamities such as exceptionally destructive typhoons, floods

and earthquakes, and epidemics,

c) delays attributable to the Procuring Entity, such as non-delivery on time

of materials, working drawings, or written information to be furnished by
the Procuring Entity, non-acquisition of permit to enter private properties
or non-execution of deed of sale or donation within the right-of-way
resulting in complete paralyzation of construction activities, and

d) other meritorious causes as determined by the Procuring Entity and

approved by the HoPE such as 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.

48.1 The date by which operating and maintenance manuals are required is
[date].

The date by which “as built” drawings are required is [date].

48.2 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].

61
 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 Competitive Bidding, Limited Source Bidding, or
Competitive Dialogue, 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 PBD.

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.

Prudence must be exercised 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:

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 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 at least twenty-
eight (28) days prior to the date when the Contractor desires the Procuring Entity’s consent.
In the event the Procuring Entity 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.

62
 Section VII. Drawings
Insert here a list of Drawings. The actual Drawings, including site plans, should be attached to
this section or annexed in a separate folder.

Detailed Plans/Drawings is available at the BAC

Secretariat Staff, City Budget Office, City Hall,
Baguio City
 Section VIII. Bill of Quantities
Project Identification No. 8918-25-060

Project Title: REMODELING OF MULTI-PURPOSE HALL, ROOFING, WINDOW GRILLS,

REPAINTING INSIDE & OUTSIDE, INSATALLATION OF SIGNAGE AND CONTSTRUCTION
OF TANOD OUTPOST

Location: CRESENCIA VILLAGE

ITEM DESCRIPTION QTY UNIT UNIT AMOUNT

PRICE (PESOS)
(PESOS)

PROJECT
B.5 3.00 SETS
BILLBOARD/SIGNBOARD
REMOVAL OF STRUCTURES AND
801(1) 1.00 LS
OBSTRUCTION
SITE CLEARING (HAULING AND
SPL I 1.00 LS
DISPOSAL OF MATERIALS)
STRUCTURAL CONCRETE (INCL
900 8.27 CU M
REINFORCING STEEL)
CHB NON-LOAD BEARING
1046(2)A2 (INCLUDING REINFORCING STEEL 92.27 SQ M
AND MASONRY PLASTER) 150MM
1001(6) CATCH BASIN 1.00 LS
STORM DRAIN AND SEWERAGE
1001 12.96 M
SYSTEM
1002 PLUMBING WORKS 13.08 M
1047 STRUCTURAL STEEL 2147.50 KG
PAINTING WORKS (MASONRY,
1032 922.28 SQ M
CONCRETE & STEEL)
PRE-PAINTED METAL SHEETS
1014(2) 133.24 SQ M
(RIBBED TYPE)
FABRICATED METAL ROOFING
1013 146.62 LM
ACCESSORY
1003 CARPENTRY & JOINERY WORKS 140.59 SQ M
1008(1) ALUMINUM WINDOWS 47.54 SQ M
1043 DOORS & FRAMES 9.00 SET
1018 TILING WORKS 81.63 SQ M
1100 ELECTRICAL WORKS 1.00 LS
SPL II BARANGAY SIGNAGES 1.00 LS
SPL III ENTRANCE GATE 6.35 SQ M
TERRACE, SUSPENDED CANOPY
SPL IV 1.00 LOT
& ROOFING
1051 RAILING 25.00 LM
SPL V CLADDING 17.00 SQ M
SPL VI SUPERVISION REQUIREMENT
FIRST AIDER 155 CD
SAFETY OFFICER 155 CD
CONSTRUCTION FOREMAN 160 CD
ELECTRICAL ENGINEER 15 CD
MASTER LUMBER 20 CD

64
 TOTAL BID AMOUNT
TOTAL BID AMOUNT IN WORDS:

Submitted by:

Name and Signature of Bidder’s Representative Date: ________

Position

65
 Section IX. Philippine Bidding Documents Related Forms

Notes to the Philippine Bidding Document Related Forms

The Bidder shall complete and submit with its Bid the Bid Form, together with the Bill of
Quantities, detailed estimates that include a summary sheet indicating the unit prices of
construction materials, labor rates, and equipment rentals used in coming up with the Bid,
and Cash Flow by Quarter, in accordance with ITB Clause 13, and all those requirements
indicated in the Bidding Documents and the format set out in this Section.

When requested in the BDS, the Bidder should provide the Bid Security, either in the form
included hereafter or in another form acceptable to the Procuring Entity, pursuant to ITB
Clause 16.

The Contract Form, when it is finalized at the time of contract award, should incorporate
any correction or modification to the accepted Bid resulting from price corrections. The
needed attachments, as aforementioned which form part of the contract should be modified
accordingly.

The Omnibus Sworn Statement must be completed by all Bidders in accordance with ITB
Clause 4.3. Failure to do so and submit it with the Bid shall result in the rejection of the Bid
and the Bidder’s disqualification.

The Performance Securing Declaration and Bank Guarantee Form for Advance
Payment shall be completed only by the successful Bidder in accordance with one of the
forms indicated herein or in another form acceptable to the Procuring Entity and pursuant
to GCC Clause 12 and its corresponding SCC provision.

66
 Bid Form for Procurement of Infrastructure Projects

[Note: The duly accomplished form shall be submitted with the Bid]
_________________________________________________________________________

BID FORM

Project Identification No.: [Insert number]

To: [Name of Procuring Entity]

Having examined the Philippine Bidding Documents (PBD) including the Supplemental Bid
Bulletin Numbers [insert numbers], the receipt of which is hereby duly acknowledged, we, the
undersigned, declare that:

a) I/We have no reservation to the PBD, including the Supplemental Bid Bulletins, for the
Procurement Project [Project Title];

b) I/We offer to execute the Works for this Contract in accordance with the PBD;

c) The total price of our Bid in words and figures, excluding any discount offered below, is
[insert information]

d) The discounts offered and the methodology for their application, if any, are: [insert
information]; or indicate N/A if no discount offered]

e) The total bid price in words and figures, after applying the applicable discount, includes
the cost of all taxes, such as, but not limited to[specify the applicable taxes, e.g. (i) value
added tax (VAT), (ii) income tax, (iii) local taxes, and (iv) other fiscal levies and duties],
which are itemized in the Detailed Estimates.

f) This Bid shall remain valid within a period stated in the PBD, and it shall be binding upon
me/us at any time before the expiration of that period;

g) If our bid is accepted, I/we commit to enter to a contract and provide a performance
security in the form, amounts, and within the times prescribed in the PBD, and hereby
acknowledge the consequences under the IRR of RA No. 12009 on forfeiture of Bid
Security or enforcement of Bid Securing Declaration and on Blacklisting.

Until a formal Contract is prepared and executed, this Bid, together with your written acceptance
thereof and your Notice of Award, shall be binding upon the Bidder.

I/We understand that you are not bound to accept the Lowest Calculated Bid or any Bid you may
receive.

I/We certify/confirm that we comply with the eligibility requirements pursuant to the PBD.

The undersigned is authorized to submit the bid on behalf of [Name of the Bidder] as evidenced
by the attached [State the Written Authority].

I/We acknowledge that failure to sign each and every page of this Bid Form, including the attached
Schedule of Prices, shall be a ground for the rejection of our bid.

Duly authorized to sign the Bid for and behalf of:

[Insert Bidder’s Name]

[Signature over Printed Name]
[Position/Designation]
[Date]

67
 Contract Form

[Note: The duly accomplished form is not required to be submitted with the Bid but shall
be
submitted within ten (10) days after receiving the Notice of Award]
_________________________________________________________________________

CONTRACT FOR [Insert Project Title]

THIS CONTRACT made the _____ day of __________ 20_____ between:

[Name of Procuring Entity], a government agency of the Republic of the Philippines, hereinafter
called “the Entity”;
-and-
[Name of Contractor] Filipino of legal age or a company duly organized and existing under the
laws of [city and country], with principal office at [insert address], hereinafter called “the
Contractor”.

WHEREAS, the Entity invited Bids for certain goods and ancillary services, particularly [Brief
description of Project];

WHEREAS, the Contractor submitted a responsive bid and was awarded the contract for the
procurement in the total amount of [Contract price in words and figures, including currency],
hereinafter referred to as the “Contract Price.”

NOW, THEREFORE, for and in consideration of the foregoing premises, the parties hereby
agree as follows:

1) Unless otherwise stated, terms and expressions used in this Contract shall have the same
meanings as those assigned to them in the Conditions of Contract, which form an integral
part of this Contract.

2) The following documents as required by the Implementing Rules and Regulations of

Republic Act No. 12009 shall be deemed to form and be read and construed as integral part
of this Contract, viz.:

a) Philippine Bidding Documents (PBD);

i. Drawings/Plans;
ii. Scope of Work;
iii. Invitation to Bid;
iv. Instructions to Bidders;
v. Bid Data Sheet;
vi. Bid Form, including all the documents/statements contained in the Bidder’s bidding
envelopes, as annexes, and all other documents submitted (e.g., Bidder’s
response to request for clarifications on the bid), including corrections to the bid, if
any, resulting from the Procuring Entity’s bid evaluation;
vii. Bill of Quantities;
viii. General and Special Conditions of Contract;
ix. Supplemental Bid Bulletins, if any; and
x. Other contract documents that may be required by existing laws and/or the Entity.

68
 b) Winning bidder’s bid, including the Eligibility Requirements, Technical and Financial
Proposals, and all other documents or statements submitted;

c) Performance Security;

d) Notice of Award of Contract; and the Bidder’s Conforme thereto; and

e) Other contract documents that may be required by existing laws and/or the Procuring
Entity concerned in the PBD, such as but not limited to the Notice to Proceed and
Warranty Security.

3) In consideration of the Contract Price of [Contract Price in words and figures], or such
other sums as may be determined in accordance with the terms of the Contract, the Supplier
agrees to deliver and perform the items and related services for the [ Project Title]
described herein in accordance with the terms and conditions specified in the Contract and
its annexed documents.

4) The [Name of the Procuring Entity] agrees to pay the above-mentioned sum to the
Supplier in accordance with the schedule and manner provided in the Bidding Documents
and its annexes.

5) Any dispute, difference, or claim arising out of or relating to this Contract, including its
existence, validity, interpretation, breach, or termination thereof, may be submitted to
arbitration or other form of alternative dispute resolution in accordance with the applicable
law, such as Republic Act (RA) No. 9285 (Alternative Dispute Resolution Act of 2004) or
Executive Order No 1008, series 1985 (Construction Industry Arbitration Law).

IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed in
accordance with the laws of the Republic of the Philippines on the day and year first above written.

For the Bidder

For the Procuring Entity
Head of the Procuring Entity or Duly Duly authorized to sign the Contract
Authorized Representative for and behalf of [Bidders Name]:

[Signature over Printed [Signature over Printed Name]

Name][Position/Designation] [Position/Designation]
[Date] [Date]

Signed in the presence of:

[Name and Signature] [Name and Signature]

Witness – Procuring Entity Witness- Supplier

ACKNOWLEDGMENT

BEFORE ME, A Notary Public for and in the _______________________, City/Province of

_____________________, this ______ day of _____________, 20______, personally appeared
the above-named persons who have satisfactorily proven to me their identity, through their
identifying documents written below their names and signatures, that they are the same persons
who executed and voluntarily signed the foregoing instrument consisting of ____ pages, including

69
this page where this Acknowledgement is written, which they acknowledged before me as their
free and voluntary act and deed.

WITNESS MY HAND AND SEAL this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Notarial Commission No. ___________
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 _______

70
 Omnibus Sworn Statement Form

[Note: The duly accomplished form shall be submitted with the Bid]

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ______ ) S.S.

OMNIBUS SWORN STATEMENT

I, [Name of Affiant], of legal age, [Civil Status], [Nationality], and with residence at
[Address of Affiant], after having been duly sworn in accordance with law, do hereby depose
and state that:

1) Select one, delete the others:

• If sole proprietorship: I am the sole proprietor or authorized representative of [Name
of Bidder] with office address at [Address of Bidder];
• If 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];
• If individual consultant not registered under a sole proprietorship, in case of Consulting
Services: I am the individual consultant or authorized representative of [Name of
Bidder] with office address at [Address of Bidder];

2) Select one, delete the others:

• If sole proprietorship: As the owner and sole proprietor or authorized representative of
[Name of Bidder], I have full power and authority to do, execute and perform any and
all acts necessary to participate, submit the bid, and to sign and execute the ensuing
contract for [Project Title] of the [Name of the Procuring Entity][insert “as supported
by the attached duly notarized Special Power of Attorney” for authorized
representative];
• If partnership, corporation, cooperative, or joint venture: I am granted full power and
authority to do, execute and perform any and all acts necessary to participate, submit
the bid, and to sign and execute the ensuing contract for [Project Title] of the [Name
of the Procuring Entity], as supported by the attached duly notarized Special Power
of Attorney, Board/Partnership Resolution, or Secretary’s Certificate, whichever is
applicable;
• If individual consultant not registered under a sole proprietorship, in case of Consulting
Services: As the individual consultant or authorized representative of [Name of
Bidder], I have full power and authority to do, execute and perform any and all acts
necessary to participate, submit the bid, and to sign and execute the ensuing contract
for [Project Title] of the [Name of the Procuring Entity], as supported by the
attached duly notarized Special Power of Attorney for authorized representative;

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; by itself or by
relation, membership, association, affiliation, or controlling interest with another
blacklisted person or entity;

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;

71
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 others:

• If sole proprietorship : The [Name of Bidder] and its spouse are not related by
consanguinity or affinity up to the third civil degree to the Head of the Procuring Entity,
Procurement Agent (if engaged), End-User or Implementing Unit, project consultants,
head of the Project Management Office, or the members of the Bids and Awards
Committee (BAC), the Technical Working Group, and the BAC Secretariat;
• If partnership : The partnership itself and the partners of [Name of Bidder] are not
related by consanguinity or affinity up to the third civil degree to the Head of the
Procuring Entity, Procurement Agent (if engaged), End-User or Implementing Unit,
project consultants, head of the Project Management Office, or the members of the
Bids and Awards Committee (BAC), the Technical Working Group, and the BAC
Secretariat;
• If cooperative: The cooperative itself and members of the board of directors, general
manager, or chief executive officer of [Name of Bidder] are not related by
consanguinity or affinity up to the third civil degree to the Head of the Procuring Entity,
Procurement Agent (if engaged), End-User or Implementing Unit, project consultants,
head of the Project Management Office, or the members of the Bids and Awards
Committee (BAC), the Technical Working Group, and the BAC Secretariat;
• If corporation, or joint venture: The corporation or joint venture itself, and officers,
directors, and controlling stockholders of [Name of Bidder] are not related by
consanguinity or affinity up to the third civil degree to the Head of the Procuring Entity,
Procurement Agent (if engaged), End-User or Implementing Unit, project consultants,
head of the Project Management Office, or the members of the Bids and Awards
Committee (BAC), the Technical Working Group, and the BAC Secretariat;
• If individual consultant not registered under a sole proprietorship, in case of Consulting
Services: The individual consultant and its spouse are not related by consanguinity or
affinity up to the third civil degree to the Head of the Procuring Entity, Procurement
Agent (if engaged), End-User or Implementing Unit, project consultants, head of the
Project Management Office, or the members of the Bids and Awards Committee
(BAC), the Technical Working Group, and the BAC Secretariat;

7) It is understood that failure to faithfully disclose its relationship with the HoPE, members
of the BAC, the TWG, and the BAC Secretariat, the head of the PMO or the end-user unit
or implementing unit, and the project consultants of the Procuring Entity, or of the
procurement agent by consanguinity or affinity up to the third civil degree, as well as its
submission of beneficial ownership information containing false entries shall be subject to
blacklisting under Section 100 of the IRR of RA No. 12009, without prejudice to criminal
and civil liabilities under applicable laws, including their accessory penalties, if any.

Select one, delete the rest:

• In case of corporations: [Name of Bidder] declared its beneficial ownership

information in the updated General Information Sheet duly submitted to the SEC in
accordance with its annual reportorial requirements and has maintained a valid and
updated file therein in compliance with Sections 20.2.9.1, 81, and 82 of the IRR of
Republic Act (RA) No. 12009.
• In case of Foreign Bidders: [Name of Bidder] submitted an appropriate equivalent
document in English issued by the country of the bidder concerned in accordance with
Section 20.2.9.2 of the IRR of RA No. 12009.

8) [Name of Bidder] complies with existing labor laws and standards; and

9) [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;

72
 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 [Project Title].

10) [Name of Bidder] did not give or pay directly or indirectly, any commission, amount, fee,
or any form of consideration, pecuniary or otherwise, to any person or official, personnel
or representative of the government in relation to any procurement project or activity.

11) In case advance payment was made or given to [Name of Bidder], failure to perform or
deliver any of the obligations and undertakings in the contract shall be sufficient grounds
to constitute criminal liability under existing laws.

IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at
____________, Philippines.

Duly authorized to sign the Bid for and behalf of:

[Insert Bidder’s Name]

[Affiant’s Signature over Printed Name]

[Position/Designation]
[Date]

JURAT

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. ______.

WITNESS MY HAND AND SEAL this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Notarial Commission No. ___________
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 _______.

73
 Bid Securing Declaration Form
[The duly accomplished form shall be submitted with the Bid
if bidder opts to provide this type of bid security]
_________________________________________________________________________

REPUBLIC OF THE PHILIPPINES )

CITY/MUNICIPALITY OF ____________________ ) S.S.

BID SECURING DECLARATION

Project Identification No.: [Number]

To: [Insert name 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 shall enter into contract with the Procuring Entity and furnish the required
performance security within ten (10) calendar days as indicated in the Bidding Documents,
from receipt of the Notice of Award;

b) I/we will be automatically disqualified from bidding for any procurement contract with any
Procuring Entity upon receipt of your Blacklisting Order; and

c) I/We will pay the applicable fine within fifteen (15) days from receipt of the written demand
by the Procuring Entity for the commission of acts resulting to the enforcement of the Bid
Securing Declaration under Sections 52.2 (a), 63.2, 69.1 and 100, except 100.3 (c), of the
IRR of RA No. 12009; without prejudice to other legal action the government may
undertake;

Applicable Fine

a) in the case of a single bidder i) two percent (2%) of the Approved

Budget for the Contract (ABC); or
ii) the difference between the
evaluated bid price and the ABC
whichever is higher
b) in the case of multiple bidders i) two percent (2%) of the ABC; or
ii) the difference between the
evaluated bid prices with the
bidder with Lowest
Calculated/Highest Rated Bid and
the bidder with the next Lowest
Calculated/Highest Rated Bid,
and so on whichever is higher

74
 c) in case of violations committed i) a fixed amount of two percent of
prior to the opening of the the ABC,
financial envelope

3) I/We understand that this Bid Securing Declaration shall cease to be valid on the following
circumstances:

a) Upon expiration of the bid validity period, or any extension thereof pursuant to your
request;

b) I am/we are declared ineligible or post-disqualified upon receipt of your notice to such
effect, and (i) I/we failed to timely file a request for reconsideration or (ii) I/we filed a waiver
to avail of said right;

c) I am/we are declared the bidder with the [Insert Award Criterion1] 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].

Duly authorized to sign the Bid for and behalf of:

[Insert Bidder’s Name]

[Signature over Printed Name]

[Position/Designation]
[Date]

JURAT

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. ______.

WITNESS MY HAND AND SEAL this ___ day of [month] [year].

NAME OF NOTARY PUBLIC

Notarial Commission No. ___________
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 _______

75