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P HILIPPINE B IDDINGDOCUMENTS

(As Harmonized with Development Partners)in accordance with

GPPB Resolution No. 0 !"0#0 dated Decem$er#%& "0#0

Rehabilitation/Concreting of Bagong Silang Mag!a"!a"

#ar$ to Mar%et Roa&

M'nici(alit" of Sia")a$boanga Sib'ga" Pro*ince

'eptem$er "0#


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T+BLE O# CONTENTS

S ECTION I I N,IT+TION TO B ID -

S ECTION II I NSTRUCTIONS TO B IDDERS .

S ECTION III B ID D +T+ S HEET --

S ECTION I, G ENER+L C ONDITIONS O# C ONTR+CT -

S ECTION , S PECI+L C ONDITIONS O# C ONTR+CT 01

S ECTION ,I S PECI#IC+TIONS 02

S ECTION ,II D R+3INGS 4.-

S ECTION ,III B ILL O# 5 U+NTITIES 4.6

S ECTION I7 B IDDING # ORMS 4.0

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Section I8 In*itation to Bi&

Re('blic of the Phili((ine!

Phili((ine R'ral De*elo($ent Progra$In*itation to Bi& for the

Rehabilitation/ Concreting of Bagong Silang9Mag!a"!a"

#ar$ to Mar%et Roa&I&enti:cation No8 IB9 R;;.?"ear! & a contract similar to the Pro:ect. he description o* an eli1i$le$idder is contained in the Biddin1 Documents& particularl & in 'ection44. 4nstructions to Bidders.

3. Biddin1 will $e conducted in accordance with relevant procedures *oropen competitive $iddin1 as speci;ed in the 4RR o* RA 5#< (R.A.

5#< )& with some amendments& as stated in these $iddin1documents and is open to all $idders *rom eli1i$le source countries asde;ned in the applica$le procurement 1uidelines o* the ,orld Ban-.

he contract shall $e awarded to the +owest alculated ResponsiveBidder (+ RB) who was determined as such durin1 post!8uali;cation.

he =stimated Pro:ect ost *or this pro:ect is 'i>t ?ne 2illion ?neHundred =i1ht hree housand Pesos ?nl & Ph( 64@4 -@;;;8;;8

. 4nterested $idders ma o$tain *urther in*ormation *rom the Bids andAwards ommittee o* the 2unicipalit o* 'ia and inspect the Biddin1Documents at the address 1iven $elow *rom 5@00am to @00pm&2onda s to 3rida s.


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9. A complete set o* Biddin1 Documents ma $e purchased $interested Bidders *rom 'eptem$er & "0# ?cto$er "& "0# *romthe address $elow and upon pa ment o* a non!re*unda$le *ee *or the$iddin1 documents in the amount o* #i*e Tho'!an& Pe!o! >PhP.@;;;8;;? .

4t ma also $e downloaded *ree o* char1e *rom the we$site o* thePhilippine Government =lectronic Procurement ' stem (PhilG=P')and the PRDP we$site ( htt(A//===8&a(r&(8net ) provided that$idders shall pa the non!re*unda$le *ee *or the Biddin1 Documentsnot later than the su$mission o* their $ids.

As part o* the transparenc measures $ein1 instituted $ theDepartment o* A1riculture (DA) the $idders can virtuall visit the siteo* the a$ove!descri$ed su$pro:ect at http@//www.daprdp.net where1eota11ed $ase photo1raphs on 90 meter interval and trac- areviewa$le. he DA& however& re8uires that all potential contractors whowill $e awarded contract under the pro:ect shall have under1one1eota11in1 trainin1 provided $ the 2RDP" / PRDP Pro:ect 'upport? ce.

. he 2unicipalit o* 'ia will hold a Pre!Bid on*erence on 'eptem$er#5& "0# & 5@00A2 at the ? ce o* the 2unicipal 2a or& 2unicipal HallBuildin1 'ia & 6am$oan1a 'i$u1a which shall $e open to allinterested parties.

%. Bids must $e delivered on or $e*ore ?cto$er 7& "0# & "@00 P2 at the? ce o* the 2unicipal 2a or& 2unicipal Hall Buildin1& 'ia &6am$oan1a 'i$u1a. All $ids must $e accompanied $ a Bid'ecurin1 Declaration or $id securit in the amount o* Php#&"" &000.00 in the *orm o* ash or ashierCs/ 2ana1erCs chec- orBan- Guarantee issued $ a universal or commercial Ban-.

Bids will $e opened in the presence o* the $iddersC representativeswho choose to attend at the address $elow. +ate $ids shall not $eaccepted.


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'i1nature o* the BA hairmanor Authorized Representative o*the BA hairman


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Section II8 In!tr'ction! to Bi&&er!

T+BLE O# CONTENTS

+8 G ENER+L 0#. 'cope o* Bid %". 'ource o* 3unds %7. orrupt& 3raudulent& ollusive& and oercive Practices %. on ict o* 4nterest 59. =li1i$le Bidders#0. BidderCs Responsi$ilities ##%. ?ri1in o* G??D' and 'ervices #7


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" . lari;cation o* Bids ""%. Detailed =valuation and omparison o* Bids ""


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a8 General

.#.#. Sco(e of Bi&

.1.2. he Procurin1 =ntit as de;ned in the BDS & invites $ids *or theconstruction o* ,or-s& as descri$ed in 'ection 4.'peci;cations . he name and identi;cation num$er o* theontract is provided in the BDS .

.1.3. he success*ul $idder will $e e>pected to complete the ,or-s$ the intended completion date speci;ed in SCC lause .#.# . .

.#. . So'rce of #'n&!

he Procurin1 =ntit has a $ud1et or has applied *or or received*unds *rom the 3undin1 'ource named in the BDS & and in theamount indicated in the BDS . 4t intends to appl part o* the *undsreceived *or the Pro:ect& as de;ned in the BDS & to cover eli1i$lepa ments under the ontract *or the ,or-s.

.#.9. Corr'(t@ #ra'&'lent@ Coll'!i*e@ an& Coerci*ePractice!

.1.6. Jnless otherwise speci;ed in the BD'& the Procurin1 =ntit & aswell as $idders and contractors& shall o$serve the hi1heststandard o* ethics durin1 the procurement and e>ecution o* the contract. 4n pursuance o* this polic & the 3undin1 'ource@

()a de;nes& *or purposes o* this provision& the terms set*orth $elow as *ollows@

()i Kcorrupt practiceK means $ehavior on the part o* o cials in the pu$lic or private sectors $ whichthe improperl and unlaw*ull enrich themselves&others& or induce others to do so& $ misusin1 the

position in which the are placed& and includes theo erin1& 1ivin1& receivin1& or solicitin1 o* an thin1o* value to in uence the action o* an such o cialin the procurement process or in contracte>ecutionL enterin1& on $ehal* o* the Procurin1=ntit & into an contract or transaction mani*estland 1rossl disadvanta1eous to the same&whether or not the pu$lic o cer pro;ted or willpro;t there$ & and similar acts as provided inRepu$lic Act 70#5L

()ii K*raudulent practiceK means a misrepresentationo* *acts in order to in uence a procurement

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process or the e>ecution o* a contract to thedetriment o* the Procurin1 =ntit & and includescollusive practices amon1 Bidders (prior to or a*terBid su$mission) desi1ned to esta$lish $id prices atarti;cial& non!competitive levels and to deprivethe Procurin1 =ntit o* the $ene;ts o* *ree andopen competitionL

()iii Mcollusive practices means a scheme orarran1ement $etween two or more $idders& withor without the -nowled1e o* the Procurin1 =ntit &desi1ned to esta$lish $id prices at arti;cial& non!competitive levelsL and

()iv Mcoercive practices means harmin1 orthreatenin1 to harm& directl or indirectl &persons& or their propert to in uence theirparticipation in a procurement process& or a ectthe e>ecution o* a contractL

()v Mo$structive practice is

(aa) deli$eratel destro in1& *alsi* in1& alterin1 orconcealin1 o* evidence material to anadministrative proceedin1s or investi1ationor ma-in1 *alse statements to investi1atorsin order to materiall impede anadministrative proceedin1s or investi1ationo* the Procurin1 =ntit or an *orei1n1overnment/*orei1n or international;nancin1 institution into alle1ations o* acorrupt& *raudulent& coercive or collusivepracticeL and/or threatenin1& harassin1 orintimidatin1 an part to prevent it *romdisclosin1 its -nowled1e o* matters relevantto the administrative proceedin1s orinvesti1ation or *rom pursuin1 such

proceedin1s or investi1ationL or($$) acts intended to materiall impede the

e>ercise o* the inspection and audit ri1hts o* the Procurin1 =ntit or an *orei1n1overnment/*orei1n or international;nancin1 institution herein.

()b will re:ect a proposal *or award i* it determines that the$idder recommended *or award has en1a1ed in corruptor *raudulent practices in competin1 *or the ontractL

and

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()c will declare a ;rm ineli1i$le& either inde;nitel or *or astated period o* time& to $e awarded ontract *unded $the 3undin1 'ource i* it at an time determines that the;rm has en1a1ed in corrupt or *raudulent practices incompetin1 or& or in e>ecutin1& a ontract *unded $ the3undin1 'ource.

.1.7. 3urther& the Procurin1 =ntit will see- to impose the ma>imumcivil& administrative& and/or criminal penalties availa$le underthe applica$le laws on individuals and or1anizations deemedto $e involved in an o* the practices mentioned in ITB lause7.# ()a .

.1.8. 3urthermore& the 3undin1 'ource and the Procurin1 =ntitreserve the ri1ht to inspect and audit records and accounts o* a contractor in the $iddin1 *or and per*ormance o* a contractthemselves or throu1h independent auditors as re ected inthe GCC lause .#.#"


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()e A Bidder su$mits more than one $id in this $iddin1process. However& this does not limit the participation o* su$contractors in more than one $idL

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

preparation o* the desi1n or technical speci;cations o* the 1oods and related services that are the su$:ect o* the $idL or

()g A Bidder who lends& or temporar seconds& its personnelto ;rms or or1anizations which are en1a1ed inconsultin1 services *or the preparation related toprocurement *or or implementation o* the pro:ect& i* thepersonnel would $e involved in an capacit on thesame pro:ect.

.1.11. 4n accordance with 'ection % o* the 4RR o* RA 5#< & allBiddin1 Documents shall $e accompanied $ a sworn a davito* the Bidder that it is not related to the Head o* the Procurin1=ntit & mem$ers o* the Bids and Awards ommittee (BA )&mem$ers o* the echnical ,or-in1 Group ( ,G)& mem$ers o* the BA 'ecretariat& the head o* the Pro:ect 2ana1ement? ce (P2?) or the end!user unit& and the pro:ect consultants&$ consan1uinit or a nit up to the third civil de1ree. ?n thepart o* the $idder& this lause shall appl to the *ollowin1persons@

()a 4* the Bidder is an individual or a sole proprietorship& tothe Bidder himsel*L

()b 4* the Bidder is a partnership& to all its o cers andmem$ersL

()c 4* the Bidder is a corporation& to all its o cers& directors&and controllin1 stoc-holdersL and

()d 4* the Bidder is a :oint venture (O )& the provisions o* items (a)& ($)& or (c) o* this lause shall correspondin1lappl to each o* the mem$ers o* the said O & as ma $eappropriate.

Relationship o* the nature descri$ed a$ove or *ailure tocompl with this lause will result in the automaticdis8uali;cation o* a Bidder.

.#.#". Eligible Bi&&er!

.1.13. Jnless otherwise indicated in the BD'& the *ollowin1 personsshall $e eli1i$le to participate in this Biddin1@

()a Dul licensed 3ilipino citizens/sole proprietorshipsL

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()b Partnerships dul or1anized under the laws o* thePhilippines and o* which at least sevent ;ve percent(%9 ) o* the interest $elon1s to citizens o* thePhilippinesL

()c orporations dul or1anized under the laws o* thePhilippines& and o* which at least sevent ;ve percent(%9 ) o* the outstandin1 capital stoc- $elon1s tocitizens o* the PhilippinesL

()d ooperatives dul or1anized under the laws o* thePhilippines& and o* which at least sevent ;ve percent(%9 ) o* the interest $elon1s to citizens o* thePhilippinesL and

()e Persons/entities *ormin1 themselves into a O & i.e.& a1roup o* two (") or more persons/entities that intend to$e :ointl and severall responsi$le or lia$le *or aparticular contract@ Provided& however& that& inaccordance with +etter o* 4nstructions No. 70& 3ilipinoownership or interest o* the :oint venture concernedshall $e at least sevent ;ve percent (%9 )@ Provided&*urther& that :oint ventures in which 3ilipino ownership orinterest is less than sevent ;ve percent (%9 ) ma $eeli1i$le where the structures to $e $uilt re8uire theapplication o* techni8ues and/or technolo1ies which arenot ade8uatel possessed $ a person/entit meetin1the sevent ;ve percent (%9 ) 3ilipino ownershipre8uirement@ Provided& ;nall & that in the latter case&3ilipino ownership or interest shall not $e less thantwent ;ve percent ("9 ). 3or this purpose 3ilipinoownership or interest shall $e $ased on thecontri$utions o* each o* the mem$ers o* the :ointventure as speci;ed in their O A.

.1.14. he Procurin1 =ntit ma also invite *orei1n $idders whenprovided *or under an reat or 4nternational or =>ecutive

A1reement as speci;ed in the BDS ..#.#9. Government orporate =ntities ma $e eli1i$le to participate

onl i* the can esta$lish that the (a) are le1all and;nanciall autonomous& ($) operate under commercial law&and (c) are not dependent a1encies o* the G?P or theProcurin1 =ntit .

.1.16. (a) Jnless otherwise provided in the BDS & the Bidder musthave completed& within ten (#0) ears *rom the su$mission o* $ids& a sin1le contract that is similar to this Pro:ect& e8uivalent

to at least ;*t percent (90 ) o* the AB ad:usted to current

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prices usin1 the National 'tatistics ? ce consumer priceinde>.

($) 3or 3orei1n!*unded Procurement& the Procurin1 =ntit andthe *orei1n 1overnment/*orei1n or international ;nancin1

institution ma a1ree on another trac- record re8uirement& asspeci;ed in the BDS .

3or this purpose& contracts similar to the Pro:ect shall $e thosedescri$ed in the BDS & and completed within the period statedin the 4nvitation to Bid and ITB lause .#. ".()a()iii .

.#.#%. he Bidder must su$mit a computation o* its Net 3inancialontractin1 apacit (N3 )& which must $e at least e8ual tothe AB to $e $id& calculated as *ollows@

N3 Q ( urrent assets minus current lia$ilities) (S)T minusthe value o* all outstandin1 or uncompleted portions o* thepro:ects under on1oin1 contracts& includin1 awarded contractset to $e started coincidin1 with the contract to $e $id.

,here@ S Q #0 *or a contract duration o* one ear or less& #9*or a contract duration o* more than one ear up to two ears&and "0 *or a contract duration o* more than two ears.

he values o* the $idderCs current assets and current lia$ilitiesshall $e $ased on the data su$mitted to the B4R& throu1h its

=lectronic 3ilin1 and Pa ment ' stem ( EFPS ).

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()e =nsurin1 that it is not M$lac-listed or $arred *rom$iddin1 $ the G?P or an o* its a1encies& o ces&corporations& or +GJs& includin1 *orei1n1overnment/*orei1n or international ;nancin1 institutionwhose $lac-listin1 rules have $een reco1nized $ theGPPBL

()f =nsurin1 that each o* the documents su$mitted insatis*action o* the $iddin1 re8uirements is an authenticcop o* the ori1inal& complete& and all statements andin*ormation provided therein are true and correctL

()g Authorizin1 the Head o* the Procurin1 =ntit or its dulauthorized representative/s to veri* all the documentssu$mittedL

()h =nsurin1 that the si1nator is the dul authorizedrepresentative o* the Bidder& and 1ranted *ull power andauthorit to do& e>ecute and per*orm an and all actsnecessar and/or to represent the Bidder in the $iddin1&with the dul notarized 'ecretar Cs erti;cate attestin1to such *act& i* the Bidder is a corporation& partnership&cooperative& or :oint ventureL

()i ompl in1 with the disclosure provision under 'ection% o* the Act in relation to other provisions o* Repu$licAct 70#5L and

()j ompl in1 with e>istin1 la$or laws and standards& i* applica$le.

3ailure to o$serve an o* the a$ove responsi$ilities shall $e atthe ris- o* the Bidder concerned.

.1.21. he Bidder& $ the act o* su$mittin1 its $id& shall $e deemedto have inspected the site& determined the 1eneralcharacteristics o* the contract wor-s and the conditions *orthis Pro:ect and e>amine all instructions& *orms& terms& andpro:ect re8uirements in the Biddin1 Documents.

.1.22. 4t shall $e the sole responsi$ilit o* the prospective $idder todetermine and to satis* itsel* $ such means as it considersnecessar or desira$le as to all matters pertainin1 to thisPro:ect& includin1@ (a) the location and the nature o* thecontract& pro:ect& or wor-L ($) climatic conditionsL (c)

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transportation *acilitiesL (c) nature and condition o* the terrain&1eolo1ical conditions at the site communication *acilities&re8uirements& location and availa$ilit o* constructiona11re1ates and other materials& la$or& water& electric powerand access roadsL and (d) other *actors that ma a ect thecost& duration and e>ecution or implementation o* thecontract& pro:ect& or wor-.

.1.23. he Procurin1 =ntit shall not assume an responsi$ilitre1ardin1 erroneous interpretations or conclusions $ theprospective or eli1i$le $idder out o* the data *urnished $ theprocurin1 entit .

.1.24. Be*ore su$mittin1 their $ids& the Bidders are deemed to have$ecome *amiliar with all e>istin1 laws& decrees& ordinances&acts and re1ulations o* the Philippines which ma a ect thecontract in an wa .

.#."9. he Bidder shall $ear all costs associated with the preparationand su$mission o* his $id& and the Procurin1 =ntit will in nocase $e responsi$le or lia$le *or those costs& re1ardless o* theconduct or outcome o* the $iddin1 process.

.1.26. Bidders should note that the Procurin1 =ntit will onl accept$ids onl *rom those that have paid the nonre*unda$le *ee *orthe Biddin1 Documents at the o ce indicated in the 4nvitationto Bid.

.#."%. Origin of GOODS an& Ser*ice!

here is no restriction on the ori1in o* Goods& or ontractin1 o* ,or-s or 'ervices other than those prohi$ited $ a decision o* theJnited Nations 'ecurit ouncil ta-en under hapter 44 o* theharter o* the Jnited Nations.

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.#.7#. he Bidder ma identi* the su$contractor to whom a portiono* the ,or-s will $e su$contracted at an sta1e o* the $iddin1process or durin1 contract implementation. 4* the Bidder optsto disclose the name o* the su$contractor durin1 $idsu$mission& the Bidder shall include the re8uired documentsas part o* the technical component o* its $id.

b8 Content! of Bi&&ing Doc'$ent!

.#.7". Pre9Bi& Conference

.1.33. (a) 4* so speci;ed in the BDS & a pre!$id con*erence shall $eheld at the venue and on the date indicated therein& to clari*and address the BiddersC 8uestions on the technical and;nancial components o* this Pro:ect.

($) he pre!$id con*erence shall $e held at least twelve (#")calendar da s $e*ore the deadline *or the su$mission o* andreceipt o* $ids. 4* the Procurin1 =ntit determines that& $reason o* the method& nature& or comple>it o* the contract to$e $id& or when international participation will $e moreadvanta1eous to the G?P& a lon1er period *or the preparationo* $ids is necessar & the pre!$id con*erence shall $e held atleast thirt (70) calendar da s $e*ore the deadline *or thesu$mission and receipt o* $ids& as speci;ed in the BDS .

.1.34. Bidders are encoura1ed to attend the pre!$id con*erence toensure that the *ull understand the Procurin1 =ntit Cs

re8uirements. Non!attendance o* the Bidder will in no wapre:udice its $idL however& the Bidder is e>pected to -now thechan1es and/or amendments to the Biddin1 Documents asrecorded in the minutes o* the pre!$id con*erence and the'upplemental/Bid Bulletin.

.#.79.An statement made at the pre!$id con*erence shall notmodi* the terms o* the $iddin1 documents unless suchstatement is speci;call identi;ed in writin1 as an amendment

thereto and issued as a 'upplemental/Bid Bulletin..#.7 . Clari:cation an& +$en&$ent of Bi&&ingDoc'$ent!

.1.37. Bidders who have purchased the Biddin1 Documents mare8uest *or clari;cation(s) on an part o* the Biddin1Documents or *or an interpretation. 'uch a re8uest must $e inwritin1 and su$mitted to the Procurin1 =ntit at the addressindicated in the BDS at least ten (#0) calendar da s $e*orethe deadline set *or the su$mission and receipt o* Bids.

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()ii 2a orCs permit issued $ the cit or municipalitwhere the principal place o* $usiness o* theprospective $idder is locatedL

()iii 'tatement o* all its on1oin1 and completed

1overnment and private contracts within ten (#0)ears prior to the su$mission o* $ids& includin1contracts awarded $ut not et started& i* an. hestatement shall include& *or each contract& the*ollowin1@

(.iii.#)name o* the contractL

(.iii.")date o* the contractL

(.iii.7)contract durationL

(.iii. )ownerCs name and addressL

(.iii.9)nature o* wor-L

(.iii.6) contractorCs role (whether sole contractor&su$contractor& or partner in a O ) andpercenta1e o* participationL

(.iii.%)total contract value at awardL

(.iii.


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license and re1istration *or the t pe and cost o* the contract *or this Pro:ectL

()v Audited ;nancial statements& showin1& amon1others& the prospective total and current assets

and lia$ilities& stamped Mreceived $ the B4R or itsdul accredited and authorized institutions& *or theprecedin1 calendar ear which should not $eearlier than two (") ears *rom the date o* $idsu$missionL

()vi N3 computation or + in accordance with 4 Blause 9.9L and

lass KBK Document@

()vii 4* applica$le& valid Ooint enture A1reement (O A)or& in lieu thereo*& dul notarized statements *romall the potential :oint venture partners statin1 thatthe will enter into and a$ide $ the provisions o* the O A in the instance that the $id is success*ulshall $e included in the $id.

()b echnical Documents

()i Bid securit as prescri$ed in ITB lause .#. ". . 4* the Bidder opts to su$mit the $id securit in the*orm o*@

(.i.1) a $an- dra*t/1uarantee or an irrevoca$leletter o* credit issued $ a *orei1n $an-& itshall $e accompanied $ a con;rmation*rom a Jniversal or ommercial Ban-L or

(.i.2) a suret $ond accompanied $ acerti;cation comin1 *rom an authorized4nsurance ommission that a suret orinsurance compan is authorized to issuesuch instrumentL

()ii Pro:ect Re8uirements& which shall include the*ollowin1@

(.ii.#) ?r1anizational chart *or the contract to $e$idL

(.ii.2) +ist o* contractorCs personnel ( viz & pro:ect2ana1er& Pro:ect =n1ineers& 2aterials=n1ineers& and 3oremen)& to $e assi1ned tothe contract to $e $id& with their complete8uali;cation and e>perience dataL and

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(.ii.7) +ist o* contractorCs e8uipment units& whichare owned& leased& and/or under purchasea1reements& supported $ certi;cation o* availa$ilit o* e8uipment *rom thee8uipment lessor/vendor *or the duration o* the pro:ectL and

()iii 'worn statement in accordance with 'ection"9."($)(iv) o* the 4RR o* RA 5#< and usin1 the*orm prescri$ed in 'ection 4U. Biddin1 3orms 8

.#. 7. Doc'$ent! Co$(ri!ing the Bi&A #inancialCo$(onent

.1.44. Jnless otherwise stated in the BDS & the ;nancial componento* the $id shall contain the *ollowin1@

()a 3inancial Bid 3orm in accordance with the *ormprescri$ed in 'ection 4U. Biddin1 3orms L and

()b An other document related to the ;nancial componento* the $id as stated in the BDS .

.1.45. (a) Jnless indicated in the BDS @ all Bids that e>ceed theAB shall not $e accepted.

($) Jnless otherwise indicated in the BDS & *or *orei1n!*unded procurement& a ceilin1 ma $e applied to $idprices provided the *ollowin1 conditions are met@

(i) Biddin1 Documents are o$taina$le *ree o* char1e ona *reel accessi$le we$site. 4* pa ment o* Biddin1Documents is re8uired $ the procurin1 entit &pa ment could $e made upon the su$mission o* $ids.

(ii) he procurin1 entit has procedures in place toensure that the AB is $ased on recent estimatesmade $ the en1ineer or the responsi$le unit o* theprocurin1 entit and that the estimates are $asedon ade8uate detailed en1ineerin1 (in the case o* wor-s) and re ect the 8ualit & supervision and ris-and in ationar *actors& as well as prevailin1 mar-etprices& associated with the t pes o* wor-s or 1oodsto $e procured.

(iii) he procurin1 entit has trained cost estimators onestimatin1 prices and anal zin1 $id variances. 4n

the case o* in*rastructure pro:ects& the procurin1entit must also have trained 8uantit surve ors.

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(iv) he procurin1 entit has esta$lished a s stem tomonitor and report $id prices relative to AB anden1ineerCs/procurin1 entit Cs estimate.

(v) he procurin1 entit has esta$lished a monitorin1

and evaluation s stem *or contract implementationto provide a *eed$ac- on actual total costs o* 1oodsand wor-s.

.#. . +lternati*e Bi&!

.1.47. Alternative Bids shall $e re:ected. 3or this purpose& alternative$id is an o er made $ a Bidder in addition or as a su$stituteto its ori1inal $id which ma $e included as part o* its ori1inal$id or su$mitted separatel therewith *or purposes o* $iddin1.A $id with options is considered an alternative $id re1ardlesso* whether said $id proposal is contained in a sin1le envelopeor su$mitted in two (") or more separate $id envelopes.

.1.48. Bidders shall su$mit o ers that compl with the re8uirementso* the Biddin1 Documents& includin1 the $asic technical desi1nas indicated in the drawin1s and speci;cations. Jnless thereis a value en1ineerin1 clause in the BDS & alternative $ids shallnot $e accepted.

.1.49. =ach Bidder shall su$mit onl one Bid& either individuall or asa partner in a O. A Bidder who su$mits or participates in morethan one $id (other than as a su$contractor i* a su$contractoris permitted to participate in more than one $id) will cause allthe proposals with the BidderCs participation to $e dis8uali;ed.

his shall $e without pre:udice to an applica$le criminal& civiland administrative penalties that ma $e imposed upon thepersons and entities concerned.

.#.90. Bi& Price!

.1.51. he contract shall $e *or the whole ,or-s& as descri$ed in ITB

lause .#.". & $ased on the priced Bill o* Iuantities su$mitted$ the Bidder.

.#.9". he Bidder shall ;ll in rates and prices *or all items o* the,or-s descri$ed in the Bill o* Iuantities. Bids not addressin1or providin1 all o* the re8uired items in the Biddin1Documents includin1& where applica$le& $ill o* 8uantities& shall$e considered non!responsive and& thus& automaticalldis8uali;ed. 4n this re1ard& where a re8uired item is provided&$ut no price is indicated& the same shall $e considered as non!responsive& $ut speci* in1 a K0K (zero) *or the said item would

mean that it is $ein1 o ered *or *ree to the Government.

21


22/198

.1.53. All duties& ta>es& and other levies pa a$le $ the ontractorunder the ontract& or *or an other cause& prior to thedeadline *or su$mission o* $ids& shall $e included in the rates&prices& and total $id price su$mitted $ the Bidder.

.1.54. All $id prices *or the 1iven scope o* wor- in the contract asawarded shall $e considered as ;>ed prices& and there*ore notsu$:ect to price escalation durin1 contract implementation&e>cept under e>traordinar circumstances as speci;ed in Glause .#.#< . . Price escalation ma $e allowed ine>traordinar circumstances as ma $e determined $ theNational =conomic and Development Authorit in accordancewith the ivil ode o* the Philippines& and upon therecommendation o* the Procurin1 =ntit . 3urthermore& in caseswhere the cost o* the awarded contract is a ected $ anapplica$le new laws& ordinances& re1ulations& or other acts o* the G?P& promul1ated a*ter the date o* $id openin1& acontract price ad:ustment shall $e made or appropriate relie* shall $e applied on a no loss!no 1ain $asis.

.#.99. Bi& C'rrencie!

.1.56. All $id prices shall $e 8uoted in Philippine Pesos unlessotherwise provided in the BDS . However& *or purposes o* $idevaluation& $ids denominated in *orei1n currencies shall $econverted to Philippine currenc $ased on the e>chan1e rate

prevailin1 on the da o* the Bid openin1..1.57. 4* so allowed in accordance with ITB lause .#.9 . & the

Procurin1 =ntit *or purposes o* $id evaluation and comparin1the $id prices will convert the amounts in various currencies inwhich the $id price is e>pressed to Philippine Pesos at thee>chan1e rate as pu$lished in the B'P re*erence rate $ulletinon the da o* the $id openin1.

.1.58. Jnless otherwise speci;ed in the BD'& pa ment o* thecontract price shall $e made in Philippine Pesos.

.#.95. Bi& ,ali&it"

.1.60. Bids shall remain valid *or the period speci;ed in the BDS @=hich shall not e>ceed one hundred twent (#"0) calendarda s *rom the date o* the openin1 o* $ids.

.1.61. 4n e>ceptional circumstances& prior to the e>piration o* the $idvalidit period& the Procurin1 =ntit ma re8uest Bidders toe>tend the period o* validit o* their $ids. he re8uest and theresponses shall $e made in writin1. he $id securit descri$ed

in ITB lause .#. ". should also $e e>tended correspondin1 tothe e>tension o* the $id validit period at the least. A Bidder

22


23/198

ma re*use the re8uest without *or*eitin1 its $id securit & $uthis $id shall no lon1er $e considered *or *urther evaluationand award. A Bidder 1rantin1 the re8uest shall not $e re8uiredor permitted to modi* its $id.

.#. ". Bi& Sec'rit"

.1.63. he $id securit in the amount stated in the BDS shall $ee8ual to the percenta1e o* the AB in accordance with the*ollowin1 schedule@

3orm o* Bid 'ecuritAmount o* Bid 'ecurit

(=8ual to Percenta1e o* theAB )

()a ash orcashierCs/mana1erCs chec-issued $ a Jniversal orommercial Ban-.

wo percent (" )

()b Ban- dra*t/1uarantee orirrevoca$le letter o* creditissued $ a Jniversal orommercial Ban-@Provided& however& that itshall $e con;rmed orauthenticated $ aJniversal or ommercial

Ban-& i* issued $ a*orei1n $an-.()c 'uret $ond calla$le upon

demand issued $ asuret or insurancecompan dul certi;ed $the 4nsurance ommissionas authorized to issuesuch securit L and/or

3ive percent (9 )

()d An com$ination o* the*ore1oin1.

Proportionate to share o* *orm with respect to total

amount o* securit()e Bid 'ecurin1 Declaration No percenta1e re8uire

3or $iddin1s conducted $ local 1overnment units& the Bidderma also su$mit $id securities in the *orm o* cashierCs/mana1erCs chec-& $an- dra*t/1uarantee& orirrevoca$le letter o* credit *rom other $an-s certi;ed $ theB'P as authorized to issue such ;nancial statement.

he Bid 'ecurin1 Declaration mentioned a$ove is anunderta-in1 which states& amon1 others& that the $idder shallenter into contract with the procurin1 entit and *urnish theper*ormance securit re8uired under 4 B lause 77."& *rom

23


24/198

receipt o* the Notice o* Award& and committin1 to pa thecorrespondin1 ;ne& and $e suspended *or a period o* time*rom $ein1 8uali;ed to participate in an 1overnmentprocurement activit in the event it violates an o* theconditions stated therein as provided in the 1uidelines issued$ the GPPB.

.18.2. he $id securit should $e valid *or the period speci;ed in theBDS . An $id not accompanied $ an accepta$le $id securitshall $e re:ected $ the Procurin1 =ntit as non!responsive.

.18.3. No $id securities shall $e returned to $idders a*ter the openin1o* $ids and $e*ore contract si1nin1& e>cept to those that *ailedor declared as post!dis8uali;ed& upon su$mission o* a writtenwaiver o* their ri1ht to ;le a motion *or reconsideration and/orprotest. ,ithout pre:udice on its *or*eiture& Bid 'ecurities shall$e returned onl a*ter the $idder with the +owest alculatedResponsive Bid has si1ned the contract and *urnished thePer*ormance 'ecurit & $ut in no case later than the e>pirationo* the Bid 'ecurit validit period indicated in ITB lause #


25/198

()vi allowin1 the use o* oneCs name& or usin1 the nameo* another *or purposes o* pu$lic $iddin1L

()vii withdrawal o* a $id& or re*usal to accept an award&or enter into contract with the Government

without :usti;a$le cause& a*ter the Bidder had$een ad:ud1ed as havin1 su$mitted the +owestalculated and Responsive BidL

()viii re*usal or *ailure to post the re8uired per*ormancesecurit within the prescri$ed timeL

()i> re*usal to clari* or validate in writin1 its $iddurin1 post!8uali;cation within a period o* seven(%) calendar da s *rom receipt o* the re8uest *orclari;cationL

()> an documented attempt $ a $idder to undulin uence the outcome o* the $iddin1 in his *avorL

()>i *ailure o* the potential :oint venture partners toenter into the :oint venture a*ter the $id isdeclared success*ulL or

()>ii all other acts that tend to de*eat the purpose o* the competitive $iddin1& such as ha$ituallwithdrawin1 *rom $iddin1& su$mittin1 late Bids or

patentl insu cient $id& *or at least three (7)times within a ear& e>cept *or valid reasons.

()b i* the success*ul Bidder@

()i *ails to si1n the contract in accordance with ITBlause .#


26/198

shall $e accepted. All $lan- spaces shall $e ;lled in with thein*ormation re8uested.

.18.9. he Bidder shall prepare an ori1inal o* the ;rst and secondenvelopes as descri$ed in ITB lauses .#. #. and .#. 7. . 4n

addition& the Bidder shall su$mit copies o* the ;rst and secondenvelopes. 4n the event o* an discrepanc $etween theori1inal and the copies& the ori1inal shall prevail.

.#cept *or unamended printed literature& shall$e si1ned& and each and ever pa1e thereo* shall $e initialed&$ the dul authorized representative/s o* the Bidder.

.#


27/198

()d $ear the speci;c identi;cation o* this $iddin1 processindicated in the 4nvitation to BidL and

()e $ear a warnin1 MD? N? ?P=N B=3?R=W the date andtime *or the openin1 o* $ids& in accordance with ITB

lause .#press its intention not to participate in the $iddin1throu1h a letter which should reach and $e stamped $ the

27


28/198

BA $e*ore the deadline *or su$mission and receipt o* $ids. ABidder that withdraws its $id shall not $e permitted to su$mitanother $id& directl or indirectl & *or the same contract.

.18.24. No $id ma $e modi;ed a*ter the deadline *or su$mission o*

$ids. No $id ma $e withdrawn in the interval $etween thedeadline *or su$mission o* $ids and the e>piration o* theperiod o* $id validit speci;ed $ the Bidder on the 3inancialBid 3orm. ,ithdrawal o* a $id durin1 this interval shall resultin the *or*eiture o* the BidderCs $id securit & pursuant to ITBlause .#


29/198

withdrawn $id shall $e returned to the Bidder unopened. 4* thewithdrawin1 BidderCs representative is in attendance& theori1inal $id and all copies thereo* shall $e returned to therepresentative durin1 the $id openin1. 4* the representative isnot in attendance& the Bid shall $e returned unopened $re1istered mail. he Bidder ma withdraw its $id prior to thedeadline *or the su$mission and receipt o* $ids& provided thatthe correspondin1 letter o* withdrawal contains a validauthorization re8uestin1 *or such withdrawal& su$:ect toappropriate administrative sanctions.

.18.29. 4* a Bidder has previousl secured a certi;cation *rom theProcurin1 =ntit to the e ect that it has previousl su$mittedthe a$ove!enumerated lass MA Documents& the saidcerti;cation ma $e su$mitted in lieu o* the re8uirementsenumerated in ITB lause .#. ".()a & items (i) to (vi).

.18.30. 4n the case o* an eli1i$le *orei1n Bidder as descri$ed in ITBlause .#.#". & the lass MA Documents enumerated in ITBlause .#. ".()a ma $e su$stituted with the appropriatee8uivalent documents& i* an & issued $ the countr o* the*orei1n Bidder concerned.

.18.31. =ach partner o* a :oint venture a1reement shall li-ewisesu$mit the documents re8uired in ITB lauses .#. ".()a()i and.#. ".()a()ii . 'u$mission o* documents re8uired under ITBlauses .#. ".()a()iii to .#. ".()a()vi $ an o* the :oint venturepartners constitutes compliance.

.18.32. A Bidder determined as M*ailed has three (7) calendar da supon written notice or& i* present at the time o* $id openin1&upon ver$al noti;cation within which to ;le a re8uest *orreconsideration with the BA @ Provided& however& that there8uest *or reconsideration shall not $e 1ranted i* it isesta$lished that the ;ndin1 o* *ailure is due to the *ault o* theBidder concerned@ Provided& *urther& that the BA shall decideon the re8uest *or reconsideration within seven (%) calendar

da s *rom receipt thereo*. 4* a *ailed Bidder si1ni;es his intentto ;le a re8uest *or reconsideration& the BA shall -eep the $idenvelopes o* the said *ailed Bidder unopened and/or dulsealed until such time that the re8uest *or reconsideration orprotest has $een resolved.

e8 E*al'ation an& Co$(ari!on of Bi&!

.#


30/198

re1ardin1 the evaluation o* their $ids until the issuance o* theNotice o* Award& unless n the case o* ITB lause " .

.#


31/198

(zero) *or the said item would mean that it is $ein1o ered *or *ree to the Procurin1 =ntit L and

()b Arithmetical corrections. onsider computational errorsand omissions to ena$le proper comparison o* all

eli1i$le $ids. 4t ma also consider $id modi;cations i* e>pressl allowed in the BDS . An ad:ustment shall $ecalculated in monetar terms to determine thecalculated prices.

.18.41. Based on the detailed evaluation o* $ids& those that complwith the a$ove!mentioned re8uirements shall $e ran-ed in theascendin1 order o* their total calculated $id prices& asevaluated and corrected *or computational errors& discountsand other modi;cations& to identi* the +owest alculated Bid.

otal calculated $id prices& as evaluated and corrected *orcomputational errors& discounts and other modi;cations&which e>ceed the AB shall not $e considered& unlessotherwise indicated in the BDS .

.18.42. he Procurin1 =ntit Cs evaluation o* $ids shall onl $e $asedon the $id price 8uoted in the 3inancial Bid 3orm

.#es& such as& $ut notlimited to& value added ta> ( A )& income ta>& local ta>es& andother ;scal levies and duties which shall $e itemized in the $id*orm and re ected in the detailed estimates. 'uch $ids&includin1 said ta>es& shall $e the $asis *or $id evaluation andcomparison.

.#


32/198

()d ?ther appropriate licenses and permits re8uired $ lawand stated in the BDS .

3ailure o* the Bidder declared as + B to dul su$mit there8uirements under this lause or a ;ndin1 a1ainst the

veracit o* such& shall $e 1round *or *or*eiture o* the $idsecurit and dis8uali;cation o* the Bidder *or award.

.18.47. he determination shall $e $ased upon an e>amination o* thedocumentar evidence o* the BidderCs 8uali;cations su$mittedpursuant to ITB lauses .#. #. and .#. 7. & as well as otherin*ormation as the Procurin1 =ntit deems necessar andappropriate& usin1 a non!discretionar Mpass/*ail criterion.

.18.48. 4* the BA determines that the Bidder with the +owestalculated Bid passes all the criteria *or post!8uali;cation& itshall declare the said $id as the +owest alculated ResponsiveBid& and recommend to the Head o* the Procurin1 =ntit theaward o* contract to the said Bidder at its su$mitted price orits calculated $id price& whichever is lower& su$:ect to ITBlause .#


33/198

underta-e the pro:ect *rom the time it su$mitted its eli1i$ilitre8uirements. 'hould such review uncover anmisrepresentation made in the eli1i$ilit and $iddin1re8uirements& statements or documents& or an chan1es inthe situation o* the Bidder which will a ect its capa$ilit tounderta-e the pro:ect so that it *ails the preset eli1i$ilit or $idevaluation criteria& the Procurin1 =ntit shall consider the saidBidder as ineli1i$le and shall dis8uali* it *rom su$mittin1 a$id or *rom o$tainin1 an award or contract.

.18.53. Based on the *ollowin1 1rounds& the Procurin1 =ntit reservesthe ri1ht to re:ect an and all Bids& declare a 3ailure o* Biddin1at an time prior to the contract award& or not to award thecontract& without there$ incurrin1 an lia$ilit & and ma-e noassurance that a contract shall $e entered into as a result o* the $iddin1@

()a i* there is prima facie evidence o* collusion $etweenappropriate pu$lic o cers or emplo ees o* the Procurin1=ntit & or $etween the BA and an o* the $idders& or i* the collusion is $etween or amon1 the $iddersthemselves& or $etween a $idder and a third part &includin1 an act which restricts& suppresses or nulli;esor tends to restrict& suppress or nulli* competitionL

()b i* the Procurin1 =ntit Cs BA is *ound to have *ailed in*ollowin1 the prescri$ed $iddin1 proceduresL or

()c *or an :usti;a$le and reasona$le 1round where theaward o* the contract will not redound to the $ene;t o* the Government as *ollows@

()i 4* the ph sical and economic conditions havesi1ni;cantl chan1ed so as to render the pro:ectno lon1er economicall & ;nanciall or technicall*easi$le as determined $ the head o* theprocurin1 entit L

()ii 4* the pro:ect is no lon1er necessar as determined$ the head o* the procurin1 entit L and

()iii 4* the source o* *unds *or the pro:ect has $eenwithheld or reduced throu1h no *ault o* theProcurin1 =ntit .

.#


34/198

()c All $ids *ail to compl with all the $id re8uirements or*ail post!8uali;cationL or

()d he $idder with the +owest alculated Responsive Bidre*uses& without :usti;a$le cause to accept the award o*

contract& and no award is made.

f8 +=ar& of Contract

.#ecutiveA1reement mentioned in ITB lause .#. ".()a()iv L

()b Postin1 o* the per*ormance securit in accordance withITB lause .#


35/198

.#


36/198

()a ash orcashierCs/mana1erCschec- issued $ aJniversal or ommercialBan-.

3ive percent (9 )

()b Ban- dra*t/1uarantee orirrevoca$le letter o* credit issued $ aJniversal or ommercialBan-@ Provided& however&that it shall $e con;rmedor authenticated $ aJniversal or ommercialBan-& i* issued $ a*orei1n $an-.

()c 'uret $ond calla$leupon demand issued $ asuret or insurancecompan dul certi;ed$ the 4nsuranceommission asauthorized to issue suchsecurit L and/or

hirt percent (70 )

()d An com$ination o* the*ore1oin1.

Proportionate to share o* *orm with respect to total

amount o* securit

.#


37/198

$e later than seven (%) calendar da s *rom the issuance o* theNotice to Proceed.

37


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Section III8 Bi& Data Sheet

ITBCla'!e

.#.". he PR? JR4NG =N 4 V is M'nici(alit" of Sia"8

he name o* the ontract is Reha$ilitation/ oncretin1 o* Ba1on1 'ilan1!2a1sa sa 3arm to 2ar-et Road.

he identi;cation num$er o* the ontract is IB9R;;


39/198

turnover *rom all wor-s avera1ed over the last three (7)ears e8ual to one hundred percent (#00 ) o* the estimatedvalue o* the contract to $e $id.

3or this purpose& similar contracts shall re*er to

Reha$ilitation and onstruction o* Road.#."5. 'u$contractin1 is allowed.

here is no restriction on the involvement o* 1eneral su$!contractors in the areas o* manual and semi!s-illed la$or orconstruction materials provided that the contractorunderta-es not less than ;*t percent (90 ) o* thecontracted wor-s with its own resources.

.#.70. o $e considered eli1i$le and 8uali;ed a su$contractor musthave a success*ul e>perience as contractor in theconstruction o* at least one wor- o* a nature and comple>ite8uivalent to the scope o* wor-s to $e su$contracted&1enerall durin1 the last ;ve (9) ears.

.#.77. he Date& ime and enue o* the Pre!Bid on*erence is@

Se(te$ber 4


40/198

*. Pro:ect re8uirements& which shall include the*ollowin1@

(i) +ist o* ontractorCs personnel (Pro:ect2ana1er +icensed =n1ineer with at least #9ears o* relevant e>perience in roadconstruction& Pro:ect =n1ineer!+icensed =n1ineerwith #0 ears o* relevant e>perience in roadconstruction and 2aterials =n1ineers ! ivil=n1ineer with at least 9 ears o* relevant wor-in materials and 8ualit control& dulaccredited $ DP,H)& to $e assi1ned to thecontract to $e $idded& with their complete8uali;cation and e>perience data@ and

(ii) +ist o* ontractorCs e8uipment units& whichare owned& leased and/or under purchasea1reements& supported $ certi;cation o* availa$ilit o* e8uipment *rom the e8uipmentlessor/vendor *or the duration o* the pro:ectL and

Notwithstandin1 the BA Cs declaration o* non!responsiveness o* the ;rst $id envelope& the ;nancialproposals contained in the second $id envelopes o* all the$idders shall $e read. he ;rst and second envelopes shallnot $e returned to the $idders.

3orei1n $idders ma su$mit the e8uivalent documents& i* an & issued $ the countr o* the *orei1n $idder.

.#. ".()a()i No other accepta$le proo* o* re1istration is reco1nized.

3orei1n $idders ma su$mit the e8uivalent documents& i* an & issued $ the countr o* the *orei1n $idder.

.#. ".()a()iv

3orei1n $idders ma su$mit their valid Philippine ontractorsAccreditation Board (P AB) license and re1istration *or the

t pe and cost o* the contract *or this Pro:ect as a pre!condition *or award as provided in the +oan A1reement.

#".#($)(ii.7)

2inimum Re8uired =8uipment

Particular ?wned +eased

#. Bulldozer (300 cu.m. Cap.) # #

". Bac-hoe (250 cu.m ) # #

7. ransit 2i>er ( 280 Bags /day ) # #

40


41/198

.Dump ruc- ( !"5.0 cu.m.) 7 7

9. Road Grader ( #00!#"0 HP ) # #

. Road Roller (#00"#20 $P) # #

%. ,ater ruc- ( 7000 liters ) # #


42/198

2a or& 2unicipal Buildin1& 'ia & 6am$oan1a 'i$u1a.

he deadline *or 'u$mission o* Bids is ?cto$er 7& "0# at"@00 P2

" ." Durin1 Bid ?penin1& i* the ;rst envelope lac-s an o* thedocuments listed in ,orld Ban- BD' #".#(a)& the $id shall $edeclared non!responsive $ut the documents shall $e -ept $the Procurin1 =ntit . he 3inancial proposals in the secondenvelope o* all the $idders shall $e read. he ;rst andsecond envelopes shall not $e returned to the $idders.

.#


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Section I,8 General Con&ition! of Contract

T+BLE O# CONTENTS

48 D E#INITIONS 24

18 INTERPRET+TION 2-

-8 G O,ERNING L +NGU+GE +ND L +3 2-

28 C OMMUNIC+TIONS 22

.8 P OSSESSION O# S ITE 2268 T HE C ONTR+CTOR S O BLIG+TIONS 22

08 P ER#ORM+NCE S ECURIT 2.

8 S UBCONTR+CTING 26


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4


45/198

- 8 U NCORRECTED D E#ECTS 6-

-


46/198

48 De:nition!

3or purposes o* this lause& $old*ace t pe is used to identi* de;nedterms.

.1.1. he +rbiter is the person appointed :ointl $ the Procurin1=ntit and the ontractor to resolve disputes in the ;rstinstance& as provided *or in GCC lause .#.


47/198

.1.13. he Defect! Liabilit" Perio& is the one ear period $etweencontract completion and ;nal acceptance within which theontractor assumes the responsi$ilit to underta-e the repairo* an dama1e to the ,or-s at his own e>pense.

.1.14. Dra=ing! are 1raphical presentations o* the ,or-s. heinclude all supplementar details& shop drawin1s& calculations&and other in*ormation provided or approved *or the e>ecutiono* this ontract.

.1.15. EJ'i($ent re*ers to all *acilities& supplies& appliances&materials or thin1s re8uired *or the e>ecution and completiono* the ,or- provided $ the ontractor and which shall not*orm or are not intended to *orm part o* the Permanent ,or-s.

.1.16. he Inten&e& Co$(letion Date re*ers to the date speci;edin the SCC when the ontractor is e>pected to havecompleted the ,or-s. he 4ntended ompletion Date ma $erevised onl $ the Procurin1 =ntit Cs Representative $issuin1 an e>tension o* time or an acceleration order.

.1.17. Material! are all supplies& includin1 consuma$les& used $the ontractor *or incorporation in the ,or-s.

.1.18. he Notice to Procee& is a written notice issued $ theProcurin1 =ntit or the Procurin1 =ntit Cs Representative to theontractor re8uirin1 the latter to $e1in the commencement o* the wor- not later than a speci;ed or determina$le date.

.1.19. Per$anent 3or%! all permanent structures and all otherpro:ect *eatures and *acilities re8uired to $e constructed andcompleted in accordance with this ontract which shall $edelivered to the Procurin1 =ntit and which shall remain at the'ite a*ter the removal o* all emporar ,or-s.

.1.20. Plant re*ers to the machiner & apparatus& and the li-eintended to *orm an inte1ral part o* the Permanent ,or-s.

.1.21. he Proc'ring Entit" is the part who emplo s theontractor to carr out the ,or-s stated in the SCC .

.1.22. he Proc'ring Entit" ! Re(re!entati*e re*ers to the Heado* the Procurin1 =ntit or his dul authorized representative&identi;ed in the SCC & who shall $e responsi$le *or supervisin1the e>ecution o* the ,or-s and administerin1 this ontract.

.1.23. he Site is the place provided $ the Procurin1 =ntit wherethe ,or-s shall $e e>ecuted and an other place or placeswhich ma $e desi1nated in the SCC & or noti;ed to theontractor $ the Procurin1 =ntit Cs Representative as *ormin1part o* the 'ite.

47


48/198

.1.24. Site In*e!tigation Re(ort! are those that were included inthe Biddin1 Documents and are *actual and interpretativereports a$out the sur*ace and su$sur*ace conditions at the'ite.

.1.25. Sli((age is a dela in wor- e>ecution occurrin1 when actualaccomplishment *alls $elow the tar1et as measured $ thedi erence $etween the scheduled and actual accomplishmento* the ,or- $ the ontractor as esta$lished *rom the wor-schedule. his is actuall descri$ed as a percenta1e o* thewhole ,or-s.

.1.26. S(eci:cation! means the description o* ,or-s to $e doneand the 8ualities o* materials to $e used& the e8uipment to $einstalled and the mode o* construction.

.1.27. he Start Date & as speci;ed in the SCC & is the date when theontractor is o$li1ed to commence e>ecution o* the ,or-s. 4tdoes not necessaril coincide with an o* the 'ite PossessionDates.

.1.28. A S'bcontractor is an person or or1anization to whom apart o* the ,or-s has $een su$contracted $ the ontractor&as allowed $ the Procurin1 =ntit & $ut not an assi1nee o* such person.

.1.29. Te$(orar" 3or%! are wor-s desi1ned& constructed&installed& and removed $ the ontractor that are needed *orconstruction or installation o* the Permanent ,or-s.

.1.30. 3or%>!? re*er to the Permanent ,or-s and emporar ,or-sto $e e>ecuted $ the ontractor in accordance with thisontract& includin1 (i) the *urnishin1 o* all la$or& materials&

e8uipment and others incidental& necessar or convenient tothe complete e>ecution o* the ,or-sL (ii) the passin1 o* antests $e*ore acceptance $ the Procurin1 =ntit CsRepresentativeL (iii) and the carr in1 out o* all duties ando$li1ations o* the ontractor imposed $ this ontract asdescri$ed in the SCC 8

.#.#. Inter(retation

.1.2. 4n interpretin1 the onditions o* ontract& sin1ular also meansplural& male also means *emale or neuter& and the other waaround. Headin1s have no si1ni;cance. ,ords have theirnormal meanin1 under the lan1ua1e o* this ontract unlessspeci;call de;ned. he Procurin1 =ntit Cs Representative willprovide instructions clari* in1 8ueries a$out the onditions o*

ontract.

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.1.3. 4* sectional completion is speci;ed in the SCC & re*erences in theonditions o* ontract to the ,or-s& the ompletion Date& andthe 4ntended ompletion Date appl to an 'ection o* the,or-s (other than re*erences to the ompletion Date and4ntended ompletion Date *or the whole o* the ,or-s).

.#. . Go*erning Lang'age an& La=

.#.9. his ontract has $een e>ecuted in the =n1lish lan1ua1e&which shall $e the $indin1 and controllin1 lan1ua1e *or allmatters relatin1 to the meanin1 or interpretation o* thisontract. All correspondence and other documents pertainin1to this ontract which are e>chan1ed $ the parties shall $ewritten in =n1lish.

.#. . his ontract shall $e interpreted in accordance with the lawso* the Repu$lic o* the Philippines.

.#.%. Co$$'nication!

ommunications $etween parties that are re*erred to in theonditions shall $e e ective onl when in writin1. A notice shall $ee ective onl when it is received $ the concerned part .

.#.


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=ntit Cs Representative access to the 'ite and to an placewhere wor- in connection with this ontract is $ein1 carriedout or is intended to $e carried out.

.#.#7. The Contractor ! Obligation!

.1.14. he ontractor shall carr out the ,or-s properl and inaccordance with this ontract. he ontractor shall provide allsupervision& la$or& 2aterials& Plant and ontractorXs=8uipment& which ma $e re8uired. All 2aterials and Plant on'ite shall $e deemed to $e the propert o* the Procurin1=ntit .

.1.15. he ontractor shall commence e>ecution o* the ,or-s on the'tart Date and shall carr out the ,or-s in accordance withthe Pro1ram o* ,or- su$mitted $ the ontractor& as updatedwith the approval o* the Procurin1 =ntit Cs Representative& andcomplete them $ the 4ntended ompletion Date.

.#.# . he ontractor shall $e responsi$le *or the sa*et o* allactivities on the 'ite.

.1.17. he ontractor shall carr out all instructions o* the Procurin1=ntit Cs Representative that compl with the applica$le lawswhere the 'ite is located.

.1.18. he ontractor shall emplo the -e personnel named in the'chedule o* Se Personnel& and that the 2aterials =n1ineershould $e dul accredited $ the ,orld Ban- as re*erred to inthe SCC & to carr out the supervision o* the ,or-s. heProcurin1 =ntit will approve an proposed replacement o* -epersonnel onl i* their relevant 8uali;cations and a$ilities aree8ual to or $etter than those o* the personnel listed in the'chedule.

.1.19. 4* the Procurin1 =ntit Cs Representative as-s the ontractor toremove a mem$er o* the ontractorCs sta or wor- *orce& *or

:usti;a$le cause& the ontractor shall ensure that the personleaves the 'ite within seven (%) da s and has no *urtherconnection with the ,orin this ontract.

.#."0.Durin1 ontract implementation& the ontractor and hissu$contractors shall a$ide at all times $ all la$or laws&includin1 child la$or related enactments& and other relevantrules.

.1.21. he ontractor shall su$mit to the Procurin1 =ntit *or consentthe name and particulars o* the person authorized to receiveinstructions on $ehal* o* the ontractor.

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.1.22. he ontractor shall cooperate and share the 'ite with othercontractors& pu$lic authorities& utilities& and the Procurin1=ntit $etween the dates 1iven in the schedule o* othercontractors particularl when the shall re8uire access to the'ite. he ontractor shall also provide *acilities and services*or them durin1 this period. he Procurin1 =ntit ma modi*the schedule o* other contractors& and shall noti* theontractor o* an such modi;cation thereto.

.1.23. 'hould an thin1 o* historical or other interest or o* si1ni;cantvalue $e une>pectedl discovered on the 'ite& it shall $e thepropert o* the Procurin1 =ntit. he ontractor shall noti*the Procurin1 =ntit Cs Representative o* such discoveries andcarr out the Procurin1 =ntit Cs RepresentativeCs instructionsin dealin1 with them.

.#." . Perfor$ance Sec'rit"

.1.25. ,ithin ten (#0) calendar da s *rom receipt o* the Notice o* Award *rom the Procurin1 =ntit $ut in no case later than thesi1nin1 o* the contract $ $oth parties& the ontractor shall*urnish the per*ormance securit in an the *orms prescri$edin ITB lause .#


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ontractor shall cause the e>tension o* the validit o* theper*ormance securit to cover approved contract timee>tensions.

.1.30. 4n case o* a reduction in the contract value or *or partiall

completed ,or-s under the contract which are usa$le andaccepted $ the Procurin1 =ntit the use o* which& in the :ud1ment o* the implementin1 a1enc or the Procurin1 =ntit &will not a ect the structural inte1rit o* the entire pro:ect& theProcurin1 =ntit shall allow a proportional reduction in theori1inal per*ormance securit & provided that an suchreduction is more than ten percent (#0 ) and that thea11re1ate o* such reductions is not more than ;*t percent(90 ) o* the ori1inal per*ormance securit .

.1.31. Jnless otherwise indicated in the SCC & the ontractor& $enterin1 into the ontract with the Procurin1 =ntit &ac-nowled1es the ri1ht o* the Procurin1 =ntit to instituteaction pursuant to Act 7


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(#0 ) o* the amount o* the contract. he Procurin1 =ntitma deduct li8uidated dama1es *rom pa ments due to theontractor. Pa ment o* li8uidated dama1es shall not a ectthe ontractor. ?nce the cumulative amount o* li8uidateddama1es reaches ten percent (#0 ) o* the amount o* thisontract& the Procurin1 =ntit shall rescind this ontract&

without pre:udice to other courses o* action and remediesopen to it.

.1.38. 4* the 4ntended ompletion Date is e>tended a*ter li8uidateddama1es have $een paid& the =n1ineer o* the Procurin1 =ntitshall correct an overpa ment o* li8uidated dama1es $ theontractor $ ad:ustin1 the ne>t pa ment certi;cate. heontractor shall $e paid interest on the overpa ment&

calculated *rom the date o* pa ment to the date o* repa ment& at the rates speci;ed in GCC lause .#.#9#. .

.#.75. Site In*e!tigation Re(ort!

he ontractor& in preparin1 the Bid& shall rel on an 'ite4nvesti1ation Reports re*erred to in the SCC supplemented $ anin*ormation o$tained $ the ontractor.

.#. 0. The Proc'ring Entit"@ Licen!e! an& Per$it!

he Procurin1 =ntit shall& i* re8uested $ the ontractor& assist himin appl in1 *or permits& licenses or approvals& which are re8uired *orthe ,or-s.

.#. #. Contractor ! Ri!% an& 3arrant" Sec'rit"

.1.42. he ontractor shall assume *ull responsi$ilit *or the ,or-s*rom the time pro:ect construction commenced up to ;nalacceptance $ the Procurin1 =ntit and shall $e heldresponsi$le *or an dama1e or destruction o* the ,or-se>cept those occasioned $ f rce ma eure . he ontractorshall $e *ull responsi$le *or the sa*et & protection& securit &

and convenience o* his personnel& third parties& and the pu$licat lar1e& as well as the ,or-s& =8uipment& installation& and theli-e to $e a ected $ his construction wor-.

.1.43. he de*ects lia$ilit period *or in*rastructure pro:ects shall $eone ear *rom contract completion up to ;nal acceptance $the Procurin1 =ntit. Durin1 this period& the ontractor shallunderta-e the repair wor-s& at his own e>pense& o* andama1e to the ,or-s on account o* the use o* materials o* in*erior 8ualit within ninet (50) da s *rom the time the Heado* the Procurin1 =ntit has issued an order to underta-e repair.

4n case o* *ailure or re*usal to compl with this mandate& theProcurin1 =ntit shall underta-e such repair wor-s and shall $e

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entitled to *ull reim$ursement o* e>penses incurred thereinupon demand.

.1.44. Jnless otherwise indicated in the SCC & in case the ontractor*ails to compl with the precedin1 para1raph& the Procurin1

=ntit shall *or*eit its per*ormance securit & su$:ect itspropert (ies) to attachment or 1arnishment proceedin1s& andperpetuall dis8uali* it *rom participatin1 in an pu$lic$iddin1. All pa a$les o* the G?P in his *avor shall $e o set torecover the costs.

.1.45. A*ter ;nal acceptance o* the ,or-s $ the Procurin1 =ntit &the ontractor shall $e held responsi$le *or M'tructuralDe*ects & i.e. & ma:or *aults/ aws/de;ciencies in one or more-e structural elements o* the pro:ect which ma lead tostructural *ailure o* the completed elements or structure& orM'tructural 3ailures & i.e. & where one or more -e structuralelements in an in*rastructure *acilit *ails or collapses& there$renderin1 the *acilit or part thereo* incapa$le o* withstandin1the desi1n loads& and/or endan1erin1 the sa*et o* the usersor the 1eneral pu$lic@

()a ontractor ,here 'tructural De*ects/3ailures arise dueto *aults attri$uta$le to improper construction& use o* in*erior 8ualit /su$standard materials& and an violationo* the contract plans and speci;cations& the contractorshall $e held lia$leL

()b onsultants ,here 'tructural De*ects/3ailures arisedue to *ault and/or inade8uate desi1n andspeci;cations as well as construction supervision& thenthe consultant who prepared the desi1n or undertoo-construction supervision *or the pro:ect shall $e heldlia$leL

()c Procurin1 =ntit Cs Representatives/Pro:ect2ana1er/ onstruction 2ana1ers and 'upervisors hepro:ect ownerCs representative(s)& pro:ect mana1er&construction mana1er& and supervisor(s) shall $e heldlia$le in cases where the 'tructural De*ects/3ailures aredue to his/their will*ul intervention in alterin1 thedesi1ns and other speci;cationsL ne1li1ence or omissionin not approvin1 or actin1 on proposed chan1es to notedde*ects or de;ciencies in the desi1n and/orspeci;cationsL and the use o* su$standard constructionmaterials in the pro:ectL

()d hird Parties ! hird Parties shall $e held lia$le in cases

where 'tructural De*ects/3ailures are caused $ wor-underta-en $ them such as lea-in1 pipes& di11in1s or

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e>cavations& under1round ca$les and electrical wires&under1round tunnel& minin1 sha*t and the li-e& in whichcase the applica$le warrant to such structure should $elevied to third parties *or their construction orrestoration wor-s.

()e Jsers ! 4n cases where 'tructural De*ects/3ailures aredue to a$use/misuse $ the end user o* the constructed*acilit and/or non compliance $ a user with thetechnical desi1n limits and/or intended purpose o* thesame& then the user concerned shall $e held lia$le.

.1.46. he warrant a1ainst 'tructural De*ects/3ailures& e>cept thoseoccasioned on *orce ma:eure& shall cover the period speci;edin the SCC rec-oned *rom the date o* issuance o* theerti;cate o* 3inal Acceptance $ the Procurin1 =ntit .

.1.47. he ontractor shall $e re8uired to put up a warrant securitin the *orm o* cash& $an- 1uarantee& letter o* credit& G'4' orsuret $ond calla$le on demand& in accordance with the*ollowin1 schedule@

3orm o* ,arrant2inimum Amount in

Percenta1e ( ) o* otal ontract Price

()a ash or letter o* credit issued $ Jniversal orommercial $an-@ provided&however& that the letter o* creditshall $e con;rmed orauthenticated $ a Jniversal orommercial $an-& i* issued $ a*orei1n $an-

3ive Percent (9 )

()b Ban- 1uaranteecon;rmed $ Jniversal orommercial $an-@ provided&however& that the letter o* credit

shall $e con;rmed orauthenticated $ a Jniversal orommercial $an-& i* issued $ a*orei1n $an-

en Percent (#0 )

()c 'uret $ondcalla$le upon demand issued $G'4' or an suret or insurancecompan dul certi;ed $ the4nsurance ommission

hirt Percent (70 )

.1.48. he warrant securit shall $e stated in Philippine Pesos andshall remain e ective *or one ear *rom the date o* issuance

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o* the erti;cate o* 3inal Acceptance $ the Procurin1 =ntit &and returned onl a*ter the lapse o* said one ear period.

.1.49. 4n case o* structural de*ects/*ailure occurrin1 durin1 theapplica$le warrant period provided in GCC lause .#. . & the

Procurin1 =ntit shall underta-e the necessar restoration orreconstruction wor-s and shall $e entitled to *ullreim$ursement $ the parties *ound to $e lia$le *or e>pensesincurred therein upon demand& without pre:udice to the ;lin1o* appropriate administrative& civil& and/or criminal char1esa1ainst the responsi$le persons as well as the *or*eiture o* thewarrant securit posted in *avor o* the Procurin1 =ntit .

.#.90. Liabilit" of the Contractor

'u$:ect to additional provisions& i* an & set *orth in the SCC & theontractorCs lia$ilit under this ontract shall $e as provided $ thelaws o* the Repu$lic o* the Philippines.

.#.9#. Proc'ring Entit" ! Ri!%

.1.52. 3rom the 'tart Date until the erti;cate o* 3inal Acceptancehas $een issued& the *ollowin1 are ris-s o* the Procurin1 =ntit @

()a he ris- o* personal in:ur & death& or loss o* or dama1eto propert (e>cludin1 the ,or-s& Plant& 2aterials& and=8uipment)& which are due to@

()i an t pe o* use or occupation o* the 'iteauthorized $ the Procurin1 =ntit a*ter the o cialacceptance o* the wor-sL or

()ii ne1li1ence& $reach o* statutor dut & orinter*erence with an le1al ri1ht $ the Procurin1=ntit or $ an person emplo ed $ or contractedto him e>cept the ontractor.

()b he ris- o* dama1e to the ,or-s& Plant& 2aterials& and=8uipment to the e>tent that it is due to a *ault o* theProcurin1 =ntit or in the Procurin1 =ntit Cs desi1n& ordue to war or radioactive contamination directla ectin1 the countr where the ,or-s are to $ee>ecuted.

.#.97. In!'rance

.#.9 . he ontractor shall& under his name and at his own e>pense&o$tain and maintain& *or the duration o* this ontract& the

*ollowin1 insurance covera1e@()a ontractorCs All Ris- 4nsuranceL

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()b ransportation to the pro:ect 'ite o* =8uipment&2achiner & and 'upplies owned $ the ontractorL

()c Personal in:ur or death o* ontractorCs emplo eesL and

()d omprehensive insurance *or third part lia$ilit toontractorCs direct or indirect act or omission causin1dama1e to third persons.

.1.55. he ontractor shall provide evidence to the Procurin1 =ntit CsRepresentative that the insurances re8uired under thisontract have $een e ected and shall& within a reasona$le

time& provide copies o* the insurance policies to the Procurin1=ntit Cs Representative. 'uch evidence and such policies shall$e provided to the Procurin1 =ntit Cs throu1h the Procurin1=ntit Cs Representative.

.1.56. he ontractor shall noti* the insurers o* chan1es in thenature& e>tent& or pro1ram *or the e>ecution o* the ,or-s andensure the ade8uac o* the insurances at all times inaccordance with the terms o* this ontract and shall produceto the Procurin1 =ntit Cs Representative the insurance policiesin *orce includin1 the receipts *or pa ment o* the currentpremiums.

he a$ove insurance policies shall $e o$tained *rom anreputa$le insurance compan approved $ the Procurin1=ntit Cs Representative.

.1.57. 4* the ontractor *ails to o$tain and -eep in *orce theinsurances re*erred to herein or an other insurance which hema $e re8uired to o$tain under the terms o* this ontract&the Procurin1 =ntit ma o$tain and -eep in *orce an suchinsurances and pa such premiums as ma $e necessar *orthe purpose. 3rom time to time& the Procurin1 =ntit madeduct the amount it shall pa *or said premiums includin1twent ;ve percent ("9 ) therein *rom an monies due& orwhich ma $ecome due& to the ontractor& without pre:udiceto the Procurin1 =ntit e>ercisin1 its ri1ht to impose othersanctions a1ainst the ontractor pursuant to the provisions o* this ontract.

.1.58. 4n the event the ontractor *ails to o$serve the a$ovesa*e1uards& the Procurin1 =ntit ma & at the ontractorCse>pense& ta-e whatever measure is deemed necessar *or itsprotection and that o* the ontractorCs personnel and thirdparties& and/or order the interruption o* dan1erous ,or-s. 4naddition& the Procurin1 =ntit ma re*use to ma-e the

pa ments under GCC lause .#.#


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.1.59. he ontractor shall immediatel replace the insurance polico$tained as re8uired in this ontract& without need o* theProcurin1 =ntit Cs demand& with a new polic issued $ a newinsurance compan accepta$le to the Procurin1 =ntit *or ano* the *ollowin1 1rounds@

()a he issuer o* the insurance polic to $e replaced has@

()i $ecome $an-ruptL

()ii $een placed under receivership or under amana1ement committeeL

()iii $een sued *or suspension o* pa mentL or

()iv $een suspended $ the 4nsurance ommission

and its license to en1a1e in $usiness or itsauthorit to issue insurance policies cancelledL or

()v ,here reasona$le 1rounds e>ist that the insurerma not $e a$le& *ull and promptl & to *ul;ll itso$li1ation under the insurance polic .

.#. 0. Ter$ination for Defa'lt of Contractor

.1.61. he Procurin1 =ntit shall terminate this ontract *or de*aultwhen an o* the *ollowin1 conditions attend its

implementation@.#. ". Due to the ontractorCs *ault and while the pro:ect is on!1oin1&

it has incurred ne1ative slippa1e o* ;*teen percent (#9 ) ormore in accordance with Presidential Decree #pired&the ontractor incurs dela in the completion o* the ,or- a*terthis ontract has e>piredL or

.#. . he ontractor@

()a a$andons the contract ,or-s& re*uses or *ails to complwith a valid instruction o* the Procurin1 =ntit or *ails toproceed e>peditiousl and without dela despite awritten notice $ the Procurin1 =ntit L

()b does not actuall have on the pro:ect 'ite the minimumessential e8uipment listed on the Bid necessar toprosecute the ,or-s in accordance with the approved

Pro1ram o* ,or- and e8uipment deplo ment scheduleas re8uired *or the pro:ectL

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()c does not e>ecute the ,or-s in accordance with thisontract or persistentl or a1rantl ne1lects to carrout its o$li1ations under this ontractL

()d ne1lects or re*uses to remove materials or to per*orm a

new ,or- that has $een re:ected as de*ective orunsuita$leL or

()e su$!lets an part o* this ontract without approval $the Procurin1 =ntit .

.1.65. All materials on the 'ite& Plant& =8uipment& and ,or-s shall $edeemed to $e the propert o* the Procurin1 =ntit i* thisontract is rescinded $ecause o* the ontractorCs de*ault.

.#. . Ter$ination for Defa'lt of Proc'ring Entit"

he ontractor ma terminate this ontract with the Procurin1=ntit i* the wor-s are completel stopped *or a continuous period o* at least si>t ( 0) calendar da s throu1h no *ault o* its own& due toan o* the *ollowin1 reasons@

()a 3ailure o* the Procurin1 =ntit to deliver& within areasona$le time& supplies& materials& ri1ht!o*!wa & or otheritems it is o$li1ated to *urnish under the terms o* thisontractL or

()b he prosecution o* the ,or- is disrupted $ the adversepeace and order situation& as certi;ed $ the Armed 3orces o* the Philippines Provincial ommander and approved $ the'ecretar o* National De*ense.

.#. %. Ter$ination for Other Ca'!e!

.1.68. he Procurin1 =ntit ma terminate this ontract& in whole orin part& at an time *or its convenience. he Head o* theProcurin1 =ntit ma terminate this ontract *or theconvenience o* the Procurin1 =ntit i* he has determined thee>istence o* conditions that ma-e Pro:ect 4mplementationeconomicall & ;nanciall or technicall impractical and/orunnecessar & such as& $ut not limited to& *ortuitous event(s) orchan1es in law and National Government policies.

.1.69. he Procurin1 =ntit or the ontractor ma terminate thisontract i* the other part causes a *undamental $reach o*

this ontract.

.#.%0. 3undamental $reaches o* ontract shall include& $ut shall not$e limited to& the *ollowin1@

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()a he ontractor stops wor- *or twent ei1ht ("


61/198

()i corrupt& *raudulent& collusive& coercive& ando$structive practices as de;ned in ITB lause7.# ()a & unless otherwise speci;ed in the ' L

()ii drawin1 up or usin1 *or1ed documentsL

()iii usin1 adulterated materials& means or methods& oren1a1in1 in production contrar to rules o* scienceor the tradeL and

()iv an other act analo1ous to the *ore1oin1.

.1.71. he 3undin1 'ource or the Procurin1 =ntit & as appropriate&will see- to impose the ma>imum civil& administrative and/orcriminal penalties availa$le under the applica$le law onindividuals and or1anizations deemed to $e involved with

corrupt& *raudulent& or coercive practices..1.72. ,hen persons *rom either part to this ontract 1ives notice

o* a *undamental $reach to the Procurin1 =ntit CsRepresentative in order to terminate the e>istin1 contract *ora cause other than those listed under GCC lause .#.%0. & theProcurin1 =ntit Cs Representative shall decide whether the$reach is *undamental or not.

.#.%7. 4* this ontract is terminated& the ontractor shall stop wor-immediatel & ma-e the 'ite sa*e and secure& and leave the'ite as soon as reasona$l possi$le.

.#.% . Proce&'re! for Ter$ination of Contract!

.#.%9. he *ollowin1 provisions shall 1overn the procedures *or thetermination o* this ontract@

()a Jpon receipt o* a written report o* acts or causes whichma constitute 1round(s) *or termination asa*orementioned& or upon its own initiative& the Procurin1=ntit shall& within a period o* seven (%) calendar da s&veri* the e>istence o* such 1round(s) and cause thee>ecution o* a eri;ed Report& with all relevant evidenceattachedL

()b Jpon recommendation $ the Procurin1 =ntit & the Heado* the Procurin1 =ntit shall terminate this ontract onl$ a written notice to the ontractor conve in1 thetermination o* this ontract. he notice shall state@

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()i that this ontract is $ein1 terminated *or an o* the 1round(s) a*ore!mentioned& and a statemento* the acts that constitute the 1round(s)constitutin1 the sameL

()ii the e>tent o* termination& whether in whole or inpartL

()iii an instruction to the ontractor to show cause asto wh this ontract should not $e terminatedLand

()iv special instructions o* the Procurin1 =ntit & i* an .

he Notice to erminate shall $e accompanied $ a copo* the eri;ed ReportL

()c ,ithin a period o* seven (%) calendar da s *rom receipto* the Notice o* ermination& the ontractor shall su$mitto the Head o* the Procurin1 =ntit a veri;ed positionpaper statin1 wh the contract should not $eterminated. 4* the ontractor *ails to show cause a*terthe lapse o* the seven (%) da period& either $ inactionor $ de*ault& the Head o* the Procurin1 =ntit shallissue an order terminatin1 the contractL

()d he Procurin1 =ntit ma & at an time $e*ore receipt o* the BidderCs veri;ed position paper descri$ed in item (c)a$ove withdraw the Notice to erminate i* it isdetermined that certain items or wor-s su$:ect o* thenotice had $een completed& delivered& or per*ormed$e*ore the ontractorCs receipt o* the noticeL

()e ,ithin a non!e>tendi$le period o* ten (#0) calendar da s*rom receipt o* the veri;ed position paper& the Head o* the Procurin1 =ntit shall decide whether or not toterminate this ontract. 4t shall serve a written notice tothe ontractor o* its decision and& unless otherwiseprovided in the said notice& this ontract is deemedterminated *rom receipt o* the ontractor o* the noticeo* decision. he termination shall onl $e $ased on the1round(s) stated in the Notice to erminateL and

()f he Head o* the Procurin1 =ntit ma create a ontract ermination Review ommittee ( R ) to assist him inthe dischar1e o* this *unction. All decisionsrecommended $ the R shall $e su$:ect to theapproval o* the Head o* the Procurin1 =ntit .

.#.% . Pursuant to 'ection 5(*) o* RA 5#< and without pre:udice tothe imposition o* additional administrative sanctions as the

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internal rules o* the a1enc ma provide and/or *urthercriminal prosecution as provided $ applica$le laws& theprocurin1 entit shall impose on contractors a*ter thetermination o* the contract the penalt o* suspension *or one(#) ear *or the ;rst o ense& suspension *or two (") ears *orthe second o ense *rom participatin1 in the pu$lic $iddin1process& *or violations committed durin1 the contractimplementation sta1e& which include $ut not limited to the*ollowin1@

()a 3ailure o* the contractor& due solel to his *ault orne1li1ence& to mo$ilize and start wor- or per*ormancewithin the speci;ed period in the Notice to Proceed(MN P )L

()b 3ailure $ the contractor to *ull and *aith*ull complwith its contractual o$li1ations without valid cause& or*ailure $ the contractor to compl with an writtenlaw*ul instruction o* the procurin1 entit or itsrepresentative(s) pursuant to the implementation o* thecontract. 3or the procurement o* in*rastructure pro:ectsor consultanc contracts& law*ul instructions include $utare not limited ' the *ollowin1@

()i =mplo ment o* competent technical personnel&competent en1ineers and/or wor- supervisorsL

()ii Provision o* warnin1 si1ns and $arricades inaccordance with approved plans and speci;cationsand contract provisionsL

()iii 'toc-pilin1 in proper places o* all materials andremoval *rom the pro:ect site o* waste and e>cessmaterials , includin1 $ro-en pavement ande>cavated de$ris in accordance with approvedplans and speci;cations and contract provisionsL

()iv Deplo ment o* committed e8uipment& *acilities&support sta and manpowerL and

()v Renewal o* the e ectivit dates o* theper*ormance securit a*ter its e>piration durin1the course o* contract implementation.

()c Assi1nment and su$contractin1 o* the contract or anpart thereo* or su$stitution o* -e personnel named inthe proposal without prior written approval $ theprocurin1 entit .

()d Poor per*ormance $ the contractor or unsatis*actor8ualit and/or pro1ress o* wor- arisin1 *rom his *ault or

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ne1li1ence as re ected in the onstructorXs Per*ormance=valuation ' stem (M P=' ) ratin1 sheet. 4n thea$sence o* the P=' ratin1 sheet& the e>istin1per*ormance monitorin1 s stem o* the procurin1 entitshall $e applied. An o* the *ollowin1 acts $ theontractor shall $e construed as poor per*ormance@

()i Ne1ative slippa1e o* #9 and a$ove within thecritical path o* the pro:ect due entirel to the *aultor ne1li1ence o* the contractorL and

()ii Iualit o* materials and wor-manship notcompl in1 with the approved speci;cations arisin1*rom the contractorXs *ault or ne1li1ence.

()e ,ill*ul or deli$erate a$andonment or non!per*ormanceo* the pro:ect or contract $ the contractor resultin1 tosu$stantial $reach thereo* without law*ul and/or :ustcause.

4n addition to the penalt o* suspension& the per*ormancesecurit posted $ the contractor shall also $e *or*eited.

.#.%%. #orce MaKe're@ Relea!e #ro$ Perfor$ance

.1.78. 3or purposes o* this ontract the terms M f rce ma eure andM*ortuitous event ma $e used interchan1ea$l. 4n thisre1ard& a *ortuitous event or f rce ma eure shall $einterpreted to mean an event which the ontractor could nothave *oreseen& or which thou1h *oreseen& was inevita$le. 4tshall not include ordinar un*avora$le weather conditionsL andan other cause the e ects o* which could have $een avoidedwith the e>ercise o* reasona$le dili1ence $ the ontractor.

.1.79. 4* this ontract is discontinued $ an out$rea- o* war or $an other event entirel outside the control o* either theProcurin1 =ntit or the ontractor& the Procurin1 =ntit CsRepresentative shall certi* that this ontract has $eendiscontinued. he ontractor shall ma-e the 'ite sa*e andstop wor- as 8uic-l as possi$le a*ter receivin1 this certi;cateand shall $e paid *or all wor-s carried out $e*ore receivin1 itand *or an ,or- carried out a*terwards to which acommitment was made.

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.#.ecuted ando* the materials and Plant reasona$l delivered to the 'ite&ad:usted $ the *ollowin1@

()a an sum to which the ontractor is entitled under GCClause .#.#09. L

()b the cost o* his suspension and demo$ilizationL

()c an sum to which the Procurin1 =ntit is entitled.

.1.82. he net $alance due shall $e paid or repaid within areasona$le time period *rom the time o* the notice o* termination.

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4n the event that the 3undin1 'ource suspends the +oan& redit&Grant& or Appropriation to the Procurin1 =ntit & *rom which part o* the pa ments to the ontractor are $ein1 made@

()a he Procurin1 =ntit is o$li1ated to noti* the ontractor o*

such suspension within seven (%) da s o* havin1 received thesuspension notice.

()b 4* the ontractor has not received sums due it *or wor- alreaddone within *ort ;ve ( 9) da s *rom the time the ontractorCsclaim *or pa ment has $een certi;ed $ the Procurin1 =ntit CsRepresentative& the ontractor ma immediatel issue asuspension o* wor- notice in accordance with GCC lause .#.#%7. .

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.1.97. ,hen the Procurin1 =ntit wants the ontractor to ;nish$e*ore the 4ntended ompletion Date& the Procurin1 =ntit CsRepresentative will o$tain priced proposals *or achievin1 thenecessar acceleration *rom the ontractor. 4* the Procurin1=ntit accepts these proposals& the 4ntended ompletion Datewill $e ad:usted accordin1l and con;rmed $ $oth theProcurin1 =ntit and the ontractor.

.1.98. 4* the ontractorCs 3inancial Proposals *or an acceleration areaccepted $ the Procurin1 =ntit & the are incorporated in theontract Price and treated as a ariation.

.#.55. E ten!ion of the Inten&e& Co$(letion Date

.1.100. he Procurin1 =ntit Cs Representative shall e>tend the4ntended ompletion Date i* a ariation is issued which ma-esit impossi$le *or the 4ntended ompletion Date to $e achieved$ the ontractor without ta-in1 steps to accelerate theremainin1 wor-& which would cause the ontractor to incuradditional costs. No pa ment shall $e made *or an eventwhich ma warrant the e>tension o* the 4ntended ompletionDate.

.1.101. he Procurin1 =ntit Cs Representative shall decide whetherand $ how much to e>tend the 4ntended ompletion Datewithin twent one ("#) da s o* the ontractor as-in1 theProcurin1 =ntit Cs Representative *or a decision thereto a*ter*ull su$mittin1 all supportin1 in*ormation. 4* the ontractorhas *ailed to 1ive earl warnin1 o* a dela or has *ailed tocooperate in dealin1 with a dela & the dela $ this *ailureshall not $e considered in assessin1 the new 4ntendedompletion Date.

.#.#0". Right to ,ar"

.1.103. he Procurin1 =ntit Cs Representative with the prior approvalo* the Procurin1 =ntit ma instruct ariations& up to a

ma>imum cumulative amount o* ten percent (#0 ) o* theori1inal contract cost.

.#.#0 . ariations shall $e valued as *ollows@

()a At a lump sum price a1reed $etween the partiesL

()b where appropriate& at rates in this ontractL

()c in the a$sence o* appropriate rates& the rates in thisontract shall $e used as the $asis *or valuationL or

*ailin1 which

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()d at appropriate new rates& e8ual to or lower than currentindustr rates and to $e a1reed upon $ $oth partiesand approved $ the Head o* the Procurin1 =ntit .

.#.#09. Contractor ! Right to Clai$

4* the ontractor incurs cost as a result o* an o* the events underGCC lause .#.90. & the ontractor shall $e entitled to the amount o* such cost. 4* as a result o* an o* the said events& it is necessar tochan1e the ,or-s& this shall $e dealt with as a ariation.

.#.#0 . Da"=or%!

.1.107. 'u$:ect to GCC lause .#.# . on ariation ?rder& and i* applica$le as indicated in the SCC & the Da wor-s rates in theontractorCs Bid shall $e used *or small additional amounts o* wor- onl when the Procurin1 =ntit Cs Representative has1iven written instructions in advance *or additional wor- to $epaid *or in t