How does a Project Start?

 Government
 Private

Private (CLIENT)

What do we need?

 Architect
a) Specifications
 Materials
 Workmanship
b) Resource
c) Time Frame

Then, Architect will call the Engineers:

 Geodetic  Electronics  Soil

 Civil  Mechanical  Structure
 Electrical  Sanitary
Contract “Agreement”

 Specifications as per Plan

 Finances
 Time Frame / Duration

Legalities of the Contract:

1. Change order
 Always check for cost implications
 If it is higher, lower or the same price. The finance and time frame will change.
 Variation orders
 Addition or deletion of work
 Billing
 RA 9184 AN ACT PROVIDING FOR THE MODERNIZATION, STANDARIZATION AND
REGULATION OF THE PROCUREMENT ACTIVITIES OF THE GOVERNMENT AND FOR OTHER
PURPOSES.
 Liquidated Damages
 The Contract is expired.

Grounds for Termination of Contract

 Unacceptable breach of contract

 Your altering the specification
 Not acceptable reason
 Negative Slippage
 Too much delay.
 Payment Schedule
 Mobilization “Panimulang Pondo” = 20% of the Total Price
 E.G 1,000,000 (20%) = 200,000 * (10% Retention)
 Retention – is a fund kept by the client with the assurance that the work or project has a quality. Less 10%
every payment.
 Warranty – Thru Insurance Company.
 Strikes
 A worker demands for a higher wage.
Government – Government Infrastructure Project

What do we need?

 Justification thru feasibility study or the reason to put up a building

 Endorse this to “Technical Working Group” / Engineers and Architects
 Technical Plans
 Specifications
 Estimates
 Budgeted Plan “GAA”

General Appropriations Act _____ (Given Year)

Presented to Congress and Signed

If it is approved:
ABC: Approved budget for
contract

Procurement (RA 9184) / Bidding

Thru Advertisement
Phil GEPS Accessible to Contractors
Philippine Government Electronics with Phil GEPS
Procurement System

 Procuring Entity – They are the ones who bid.

 BAC “Bids and Awards Committee”
 BAC Chairman “Endorser”
 BAC Secretariat
 BAC Member
 Accounting Dept.
 Budget Dept.
 Rep. of end users
 Technical Working Group (TWG)
 To evaluate technicalities

 Contents of Advertisement
 Project Title  Pre BID Conference
 Approved Budget for Contract - ABC  Dropping of Bids (Open to the Public)
 Duration  Bid Opening (Open to the Public)

 Bidding Documents: (Cost)

 ITB: Instructions to bidders.  SCC: Special Condition of Contracts.
Bid Documents (2 envelopes)

1st Envelope

a. Eligibility Document
b. Technical Document

2nd Envelope

a. Financial Document

Eligibility Document

1. DTI Registration / SEC Cert.

2. Mayor`s Permit
3. Phil GEPS Registration
4. PCAB License (Proper Category) “Philippine Contractors Accreditation Board”
5. SLCC – “Single Largest Completed Contract” SLCC = 50% ABC
6. NFCC –“Net Financial Contracting Capacity”
7. Tax Clearance
8. Statement of all ongoing and Finished Project both Private and Government

Technical Document

1) BID Security Declaration – (Insurance Company) The Contractor should have bid security.
2) Organizational Chart
3) Contractors List of Personnel
4) List of Equipment’s
5) PERT CPM
6) Bar Chart and S curve – Detailed program on how long your project
7) Man power schedule
8) Construction Safety and Health Program
9) Value Engineering – To reduce waste without sacrificing work.
10) Omnibus Sworn Statement – That you are not related to BAC
11) Special Power of Attorney – You give an authority to someone
12) Equipment Utilization Schedule – To act on her behalf.
13) Certificate of Site Inspection

Financial Document

1) BID Form – BID Amount , Discount

2) BOQ – Bill of Quantities
3) Payment Schedule / Cash Flow
4) Unit Cost Analysis
5) List of price and Rates

 After the documents are open (Open Bidder)

 Lowest Bidder – Post Qualification

CAD FILE:
 3 Storey plans
 Footing of 150 m2
 Architectural
 Structural
 Electrical
 Sanitary
When will you start the Project?

 Contract – 180 Calendar Days

 15 Days after NTP (notice to Proceed) is released

Construction Meet

General Conditions:

1. Communication
 Communication Letter – Formalizes Everything
 Communications are in black and white to ensure legality or credibility of documents.
2. Contractors Obligation
 Deliver / Implement the project as per plan and specification with the proper workmanship
 Start on “Start Date” and carry out the work in accordance with the duration stated in the contract.
“Catch Up Plan” The contractor will issued a catch up plan, when they are delayed in time.
 Secure Safety of All Personnel’s (PPE)
 Provide Key Personnel (Admin) – Permanent on Site
 Abide all the time with labor laws / code
 Provide facilities and services during the duration of the construction, approved by the procuring entity.
 Any historical interest or significant value unexpectedly discovered shall be declared as property of procuring entity.
 Performance Security
 Insurance Company
 When the contractor abandoned the project
 Subcontracting
 RA 9184 Prohibits subcontracting
 Manifestation that the contractor is incompetent or cannot deliver by himself.
 Liquidated Damages
 Substantial Accomplishment
- When or Upon expiration of contract, the contractor has accomplished at least 90% of the project pay
1/10 of 1% remaining per day.
- If it is not accomplished again it is subjected to termination.
 Site reports
 Like accidents, calamities etc.
 Permits and Licenses
