Group III Members: Bacus, Bon Jamero, Jacinto Lapi

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Group IIIMembers Bacus, Bon Jamero,
Jacinto Lapiña, Joan Lao, Loveleanne Sauro, Jo
Getting ContractCharges and Violations of
ContractsRemedies and Settlement
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IB 1 - Who may be allowed to Bid

• a. Filipino
• 1. Citizens (single proprietorship)
• 2. Partnership or corporation duly organized
  under the laws of the Philippines, and at least
  75 of the capital stock of which belongs to
  Filipino citizens.
• b. Contractors forming themselves into a joint
  venture i.e., a group of more contractors that
  intend to be jointly and severally responsible
  for a particular contract, shall, for purpose of
  bidding/tendering comply with LOI 630, and, aside
  from being currently and properly licensed by
  PCAB, shall comply with provisions of RA 4566 and
  its implementing rules and regulations, provided
  that joint ventures in which Filipino ownership
  is less than 75 may be qualified where the
  structures to be built require the application of
  techniques and/or technologies which are not
  adequately possessed by a Filipino entity as
  defined above.
• c. Foreign contractors for internationally bid
  foreign-assisted projects as may be required by
  foreign financial institutions.

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IB 2 - Organization of the BAC
1.Each office/agency/corporation shall have in
its head office or in its implementing offices a
Bid and Award Committee (BAC) or designated
procurement unit which shall be responsible for
the conduct of pre-qualification or eligibility
screening, bidding, evaluation of bids, post
qualification, and recommending award of
contracts. Each committee shall be composed of
the ff Chairman (regular) Executive Officer
and Secretary (regular) Member
(regular) Member (provisional) Members from
the Private Sector Observer Members/Observers
of the BAC or designated procurement unit should
receive the notice of meeting at least 2 calendar
days before the date of meeting 2. Government
owned or controlled corporations shall organize
their own BACS or designated procurement units,
the members of which shall be appointed by their
respective boards preferably along the same line
as other government offices.
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3. Non-infrastructure agencies that is,
agencies other than the DPWH, DTC, their attached
agencies and other infrastructure Corporations
that do not possess an in-house technical
capability to constitute their own BACS or
Designated procurement units shall cause the
designation of either of the 2 infrastructure
departments mentioned whichever is concerned, to
undertake the pre-qualification/Eligibility of
Screening, bid and award services, as well as the
preparation of project plans and designs and
supervision of construction.
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IB 3 - Invitation to Pre qualify/Apply for
Eligibility to Bid
1. For locally funded contracts, contractors
shall be invited to apply for eligibility to
bid through a. For contracts to be bid costing
more than P5 Million the advertisement shall be
made at least 3 times within a reasonable period
depending upon the size and complexity of the
contract to be bid but in no case less than 2
weeks in at least 2 newspapers of general
nationwide circulation which have been regularly
published for at least 2 years before the date of
issue of the advertisement. During the same
period that the advertisement is posted in the
newspaper or for a longer period as determined by
the head of the office/agency/corporation
concerned, the same advertisement shall be posted
in the website of the office/agency/corporation
concerned and at the place reserved for this
purpose in the premises of the office/agency/corpo
ration concerned. For contracts to be bid costing
P5 Million and below or for contracts authorized
to be bid by the regional/district offices
involving costs as may be delegated by the head
of office/agency/corporation, the invitation to
bid shall be advertised at least 2 times within 2
weeks in a newspaper of general local circulation
in the region where the contract to be bid is
located, which newspaper has been regularly
published for at least 6 months before the date
of issue of the advertisement. During the same
period that the advertisement is posted in the
newspaper or for a longer period as determined by
the head of the office/agency/corporation
concerned and at the place reserved for this
purpose in the premises of the office/agency
/corporation concerned. In addition to the
forgoing, the invitation may
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also be advertised through other forms of media
such as radio and television, provided that based
on the agencys short list of contractors or
referral with the PCAB, there are at least for
contractors indigenous to the region duly
classified and registered to undertake such
contracts. The advertisement may likewise be made
in a newspaper of general nationwide circulation
as defined in the foregoing when there is evident
lack of interest to participate among the
region-based contractors. b. Additionally, in
the case of projects requiring special
technology, direct invitation of contractors
known for their capacity to undertake such type
of projects. 2. For foreign-financed/assisted
projects, contractors are invited under the same
procedures above and/or in accordance with
procedure established by ,and agreed upon with,
the lending/financing institution.
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Constructors not allowed to participate in the
prequalification and bidding of government
projects

• A constructor who was suspended or disqualified
  by a government tendering agency and/or included
  in the CIAP consolidated government-level
  blacklisted constructors shall not be allowed to
  participate in the prequalification and bidding
  of all government tendering agencies during the
  period of suspension/disqualification unless a
  certificate from CIAP confirming a delisting
  order from the blacklisting agency has been
  submitted to the tendering agency concerned.
• A joint venture or consortium with blacklisted
  member/s and/or an individual constructor who is
  a member of a blacklisted joint venture or
  consortium is likewise not allowed to participate
  in the prequalification and bidding of all
  government tendering agencies during the period
  or suspension.

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Sanctions and Background for Blacklisting
Prequalification, Bidding and Award Stage
I. Suspension for 1 year for 1st offense,
disqualification of 2 year for 2nd offense and
perpetual disqualification for succeeding
offense on any of the following 1.
Misinterpretation of concealment of any material
fact or information in the sworn prequalification
statement and/or bids, including but not limited
to gtfalsification of public documents gtsubmis
sion of borrowed license (license
lending) gtSubmission of bids and/or detailed
estimates that are identical to each other
or to the Approved Agency Estimate (AAE) which
manifestly indicate rigging or
conclusion. 2. Participating in PBAC
activities as a constructors association
representative where he/she has any pecuniary
interest. 3. Other acts of constructors which
directly or indirectly tend to defeat the purpose
of public bidding.
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II. Suspension for 6 months for 1st offense,
disqualification for 1 year for 2nd offense,
disqualification for 2 year for 3rd offense, and
perpetual disqualification for succeeding
offense. 1. Non-submission or late
submission of bids by pre qualified constructors
with out justifiable reason and written notice of
withdrawal of intent to participate in the
bidding of 5 working days before the deadline of
submission of bids. III. Forfeiture of bid
security for 1st offense, forfeiture of bid
security and suspension of 1 year for 2nd
offense, and forfeiture of bid security and
perpetual disqualification of succeeding offense
on any of the following 1. Unjustified failure
or unreasonable refusal of the winning bidder to
accept or signify conforme to the notice of
award (NOA). 2. Non-submission by the proposed
awardee within the Agency prescribed
time of the performance security and other
requirements necessary for contract
preparation, i.e., Contractors All Risk (CAR)
insurance, Affidavit of No pending Case
for Non-Payment of Tax, construction
Schedule, Cash Flow and other requirements
necessary for the formalization of
the contract. 3. Unjustified refusal or failure
of the proposed awardee to enter or sign
the prepared contract within the agency
prescribed time.
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IV. Suspension for 5 years for 1st offense and
perpetual disqualification for succeeding
offense 1. Receiving a fee, gift, or other
valuable thing in relation to, or in
connection with, PBAC activities from any
person/entity in the hope or
expectation of receiving favor or other treatment
than that accorded other persons 2.
Committing Acts punishable under the anti-graft
laws.
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IB 4 - Issuance of Qualification Statements/Forms
1. The BAC or Designated procurement Unit shall
provide prospective bidders with the Notice for
Prequalification/Eligibility Screening, to
contain, among others, the following information
to guide them in evaluating their capabilities
and decide whether or not to participate in the
bidding of a specific contract a. Name and
location of Project b. Project background and
other relevant information regarding the proposed
work, including a brief technical description of
the work as to size, type, major items, and other
important features of the work. c. Approved
budget for the project to be bid and source of
funding. d. Criteria to be used by the
office/agency/corporation in the prequalification
or eligibility screening contractors, the
evaluation of bids, and the post qualification of
the lowest calculated bid. e. Cost and place of
issuance of Eligibility Forms and Bid/Tender
documents f. Date, time and place
of Submission of Accomplished Eligibility
forms Pre-bid conference Submission of
Bids Opening of Bids
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2. Prequalification or Eligibility Statements
shall be required by the contracting government
office/agency/corporation for every contract in
which the contractor intends to bid. It shall be
submitted not later than the deadline set in the
published Invitation to Prequalify or Apply for
Eligibility and to Bid, after which date no
Application Prequalification or Eligibility shall
be submitted and received. 3. The following
documents shall comprise the prequalification or
eligibility statements, to be submitted by the
contractor, which shall consist of the following
documents which embody the non-discretionary
pass/fail criteria for Prequalification or
Eligibility for the contract to be bid, which
shall be under oath and duly notarized a. Legal
Document 1. Contractors Valid PCAB License
for the type and cost of the contract to be bid
2. Valid joint venture agreement in the case of
a joint venture 3. Letter authorizing the
head of office/agency/corporation or his duly
authorized
representative to verify any or all of the
documents submitted for eligibility
screening. 4. Statement that his firm is not
included in the blacklist of Contractors issued
by the CIAP
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b. Technical Documents 1. A statement of
all government and private construction
contracts, completed in at least the last 3 years
as specified in the notice for prequalification/el
igibility screening, which are similar in nature
and complexity to the contract to be bid.
Similar contracts shall be defined by the
concerned office/agency/corporation in the notice
for prequalification/eligibility screening. The
contractors statement shall include, for each
contract, the name of the contract, owners name
and address, nature of work, contractors role
(sole contractor, sub-contractor, or partner in a
joint venture), total contract value at
completion, and contract duration. The statement
shall be supported by the contractors
performance evaluation system (CPES) rating
sheets, an/or certificates of completion and
owners acceptance. The value of the
contractors larges single contract, escalated to
present prices, completed within the period
specified in the notice for prequalification/eligi
bility screening, and similar to the contract to
be bid, must be at least 50 of the approved
budget for the contract to be bid. 2. A
statement of all ongoing government and private
construction contracts, including contracts
awarded but not yet started. This shall include,
for each contract, the name of the contract,
owners name and address, nature of work,
contractors role, total contract value at award,
date of award, percentages of planned and actual
accomplishments, value of outstanding works, and
estimated completion time. The statement shall be
supported by the notices of award and/or notices
to proceed by the owner.s
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3. A statement that the contractor has key
personnel, such as project manager, project
engineer, materials engineer, and foreman, that
may be used for construction contracts. 4. A
statement that the contractor owns, and/or has
under lease, and/or under purchase agreements,
equipment that may be used for construction
contracts. c. Financial Documents Audited
financial statements, stamped received by the
bureau of international revenue, for at least the
past 3 calendar years, showing, among others, the
contractors total and current assets and
liabilities. The contractors net financial
contracting capacity (NFCC), based on his net
working capital (i.e. current assets less current
liabilities) must be at least equal to the
approved budget for the contract to be bid,
calculated as follows NFCCK (current assets
minus current liabilities) minus (Value of all
outstanding works under ongoing contracts
including awarded contracts yet to be
started). K10 for a contract duration of 1
year or less, 15 for a contract duration of more
than 1 year up to 2 years, and 20 for a contract
duration of more than 2 years.
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IB 6 - Prequalification or Eligibility Screening
of contractors for specific contracts.
1. A bidder must be found to be qualified or
eligible to submit a bid for the contract to be
bid based on his prequalification or eligibility
statements as evaluated by the BAC or designated
procurement unit of the office/agency/corporation,
based on the criteria stated in the notice for
prequalification/eligibility screening. 2. Notwit
hstanding the prequalification or eligibility of
a contractor, the Government reserves the right
to review his prequalification or eligibility
statements and other relevant information before
the approval of the contract. Should such review
uncover any misinterpretation made in the
prequalification or eligibility statements, or
any change in the situation of the contractor to
downgrade the substance of his prequalification
or eligibility statements, the Government shall
disqualify him from submitting a bid or from
obtaining any award or contract.
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1. The BAC or Designated Procurement Unit shall
   determine if each contractor is prequalified or
   eligible to submit bids for the contract to be
   bid by evaluating his prequalification or
   eligibility statements, using the
   non-discretionary Pass/Fail criteria or
   requirements stated in IB4-3 and in the notice
   for prequalification/eligibility screening, based
   solely and exclusively on his prequalification or
   eligibility statements. If the contractor passes
   all of the said contract to be bid. If the
   contractor fails any of the said criteria, he
   shall be considered ineligible to submit a bid
   for the contract to be bid.
2. After undertaking the above processes, the BAC or
   Designated Procurement Unit shall mark the set of
   prequalification or eligibility documents of each
   contractor Eligible, or ineligible as the
   case may be, and the same shall be countersigned
   by the Chairman or the duly designated authority.
   The documents shall then be submitted to the head
   of office/agency/corporation concerned or his
   duly authorized representative for review and
   approval. Accordingly, the BAC or Designated
   Procurement Unit shall inform in writing the
   eligible bidders within 7 calendar days after
   approval. Applicants found ineligible shall
   likewise be informed accordingly in writing
   within the same period by the BAC or Designated
   Procurement Unit, stating the grounds for their
   disqualification or ineligibility. Those found
   ineligible have 7 calendar days upon receipt of
   notice within which to appeal to the head of the
   office/agency/corporation for reconsideration.

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IB 7 Issuance of Plans, Specifications,
Proposal Book Form (s) and Draft Contract
1. The BAC or Designated Procurement Unit shall
issue the plans, specification, proposal book(s)
for the contract to be bid to the eligible
bidders under the relevant classification, upon
payment of the corresponding price thereof to the
collecting/disbursing officer of the
office/agency/corporation concerned in accordance
with the following schedule Estimated
Project Cost (PhP) Issuance of Plans,
Specifications,Proposal ____________________
Book Form(s) and Draft Contracts a. Up to 5
Million 15 Days before the date of bidding
b. Above 5 Million up to 30 Days before
the date of bidding 25 Million c. Above
25 Million up to 45 Days before the date of
bidding 50 Million d. Above 50 Million
up to 60 Days before the date of bidding
100 Million e. Above 100 Million 90
Days before the date of bidding 2. The
aforementioned schedules shall be considered as
prescribed minimum and may be extended depending
on the complexity of the project to be bid
subject to the approval of the office/agency/corpo
ration head concerned.
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3. In case of a simple repetitive standardized
jobs where time is of the essence, the head of
the office/agency/corporation may reduce the
above time of issuance to not less than 50
percent. 4. A draft Contract shall be issued to
the eligible bidders to form part of the bid
documents.
Jamero, Jacinto Jr. R. 230 Group 3
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(No Transcript)
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REVISED CLASSIFICATION AND CATEGORIZATION TABLE
FOR CFY 2005-2006
CLASSIFICATION C A T E G O R Y MINIMUM QUALIFICATION REQUIREMENTS MINIMUM QUALIFICATION REQUIREMENTS MINIMUM QUALIFICATION REQUIREMENTS MINIMUM QUALIFICATION REQUIREMENTS MINIMUM QUALIFICATION REQUIREMENTS MINIMUM QUALIFICATION REQUIREMENTS
CLASSIFICATION C A T E G O R Y (1) FINANCIAL CAPACITY (1) FINANCIAL CAPACITY (2) STE MIN. CONST. EXP. REQUIREMENT (2) STE MIN. CONST. EXP. REQUIREMENT (2) STE MIN. CONST. EXP. REQUIREMENT (3) OVERALL CREDIT POINTS REQUIRED
CLASSIFICATION C A T E G O R Y STOCKHOLDER'S EQUITY CREDIT POINTS (C.P.) REQ'D. INDIVI- DUAL AGGRE- GATE MIN. C.P. REQ'D. (3) OVERALL CREDIT POINTS REQUIRED
I. GENERAL ENGINEERING AAA P60,000,000.00 600.00 10 60 300 1,650.00
GE-1 Road, Highways, Pavement Railways, Airport horizontal Structure, and Bridges GE-2 Irrigation or Flood Control GE-3 Dam, Reservoir or Tunneling GE-4 Water Supply GE-5 Port, Harbor or Offshore Engineering AA A B C D 30,000,000.00 6,000,000.00 3.000,000.00 1,500,000.00 600,000.00 300.00 60.00 30.00 15.00 6.00 10 7 5 3 3 50 21 10 3 3 250 105 50 15 15 765.00 235.00 107.50 51.50 21.00
II. GENERAL BUILDING GB-1 Building or Industrial Plant GB-2 Sewerage or Sewage System GB-3 Water Treatment Plant System GB-4 Park, Playground or Recreational Work AAA AA A B C D P60,000,000.00 30,000,000.00 6,000,000.00 3,000,000.00 1,500,000.00 600,000.00 600.00 300.00 60.00 30.00 15.00 6.00 10 10 7 5 3 3 60 50 21 10 3 3 300 250 105 50 15 15 1,610.00 745.00 231.00 105.50 60.50 21.00
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SPECIALTY SP-FP Foundation Work FP1- Piling Work FP2- Soil Stabilization/ Slope Protection/ Reinforce Earth SP-SS Structural Steel Work SP-CC Concrete Pre-casting, Pre-Stress or Post- tensioning SP-PS Plumbing Sanitary Work SP-EE Electrical Work SP-ME Mechanical Work SP-AC Airconditioning or Refrigeration SP-ES Elevator or Escalator SP-FP Fire Protection Work SP-WP Waterproofing Work SP-PN Painting Work SP-WD Well-Drilling Work SP-CF Communication Facilities SP-MS Metal Roofing Siding Installation SP-SD Structural Demolition SP-LS Landscaping SP-EM Electro Mechanical Work Sp- NF Navigational Facilities AAA AA A B C D P60,000,000.00 30,000,000.00 6,000,000.00 3.000,000.00 1,500,000.00 600,000.00 600.00 300.00 60.00 30.00 15.00 6.00 10 10 7 5 3 3 60 50 21 10 3 3 300 250 105 50 15 15 1,210.00 545.00 181.00 95.50 45.50 21.00
IV. SP-TRADE TRADE 30,000.00 0.30 none none none 0.30
Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified Minimum Qualification Requirements for Principal Classification For Other Classification/s, Minimum of 3 Years Actual Construction Experience Overall credit points inclusive of Equipment Capacity (1 point/P100Th) Experience of Firm (10 points/year of active existence 1 point/P100Th of 3 year Average Annual Volume of Work Accomplished and COMTCP points if STEs are COMTCP certified
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• bidding procedures
• bidding failure
• awarding of contract
• contract documents
• by lapiña, joan marie e.

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BIDDING PROCEDURES

• Preparation of Bids and Bid Bonds, and
  Pre-qualification/Eligibility Statement
• Bids shall be prepared on the proposal book form
  in accordance w/ the Instructions to Bidders.
• The original copy of the bid shall be accompanied
  by a bid security in an amount equivalent to a
  percentage of the APPROVED BUDGET FOR THE
  CONTRACT to be bid.
• No bid securities submitted by any eligible
  bidder shall be returned after the opening of the
  bids. Except by those that failed to comply w/
  any of the requirements to be submitted in the
  1st envelope of the bid.

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• Submission, Opening and Abstracting of Bids
• Bids in the prescribed bid form including its
  annexes shall be submitted in two (2) sealed
  envelopes w/ the name of the Contract to be bid
  and the name of the bidder in capital letters
  addressed to the designated procurement unit of
  the office concerned.
• The 1st envelope shall contain the following
• Authority of the Signing Official
• Construction Schedule and S-Curve
• Construction Methods
• Organizational Chart for the contract to be bid
• List of Contractors Personnel to be assigned to
  the contract to be bid, w/ their complete
  qualification and experience data

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• Personpower schedule
• List of Contractors Equipment Units, owned
  and/or under lease and/or under purchase
  agreements, supported by duly executed contracts,
  intended for use exclusively in the contract to
  bid
• Equipment Utilization Schedule
• Certificate of Site Inspection
• Bid Security
• Certification that the detailed estimate, cash
  flow by quarter and payments schedule are in the
  second envelope
• Commitment from the Contractors Bank to extend
  to him a credit line if awarded the contract to
  be bid, or a cash deposit certificate.
• Construction safety and health program required
  by the DOLE
• Other non-discretionary criteria
• The 1st envelope shall be opened in public to
  determine the contractors compliance w/ the
  above documents required.

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• c. The 2nd envelope shall contain the
  following
• Bid Prices in the BILL OF QUANTITIES
• Detailed Estimated including summary sheet
  indicating the unit prices of construction
  materials, labor rates, and equipment rentals
  used in coming up with the bid
• Cash Flow by quarter and Payments Schedule
• The 2nd envelope shall be opened in public
  immediately after the opening of the 1st
  envelope. BUT only for the contractors that
  complied with the requirements in the 1st
  envelope.
• d. Bids shall be received on or before the
  designated time and date to be eligible for
  consideration. Bids may be withdrawn only in
  writing 5 working days before the deadline of
  submission of bids.

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• Bids shall be opened at the place, date and time
  specified in the advertisement by the BAC. The
  bidder or their duly authorized representative
  may attend the opening of the bids.
• Bids w/ submitted bid prices that are higher than
  the approved budget for the contract under
  bidding shall be rejected outright.
• After all the bids have been received and opened,
  the corresponding Abstract of Bids shall be
  prepared. It shall contain the ff
• (a) Name of the Project and its location,
• (b) Time, date, and place of bidding, and
• (c) Names of the bidders and their bids
  arranged
• from the lowest to the highest.

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• Determination of the Lowest Calculated
  Responsive Bid
• The BAC or Procurement Unit shall determine the
  Lowest Calculated Responsive Bid, which is the
  bid (a) with the lowest price as calculated based
  on the provisions in the Evaluation of Bids, and
  (2) which complies w/ all the requirements in the
  Post-qualification of Contractor w/ the lowest
  calculated bid.
• b. The lowest calculated responsive bid shall
  therefore be determined in two steps
• - the detailed evaluation of all the bids
• - the post-qualification of the bidder w/ the
  lowest calculated bid

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• Detailed Evaluation of Bids
• - to establish the correct calculated prices of
  the bids accdg. to the requirements, and to det.
  the order or ranking of the total bid prices as
  so calculated from the lowest to the highest.
• a. Shall be conducted w/in 7 days from the date
  of opening of the bids.
• b. At the time of the opening of the bids, there
  shall be at least 2 competing bidders.
• c. The respective designated procurement units
  should normally complete the evaluation of bids
  not later than 30 calendar days from the date of
  the opening of bids.

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• Post-qualification of Contractor w/ the
• lowest calculated bid
• - based on the results of the evaluation. This
  shall verify and ascertain whether the bidder w/
  the lowest calculated bid complies w/ or is
  responsive to all the requirements (legal,
  technical, and financial) of the contract under
  bidding.
• a. Shall be conducted, on the bidder w/ the
  lowest calculated bid, w/in 30 days from the
  completion of the first step (Evaluation of
  Bidders)

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BIDDING FAILURE

• May be due to dishonesty in the competition or
  bidding process
• Example Submitting more than 1 bid apparently
  different but actually comes from the same party.
• Bidding failure may be declared if there is
  evidence of conspiracy or agreement among
  contractors.

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AWARDING OF CONTRACT

• By Bid Contract
• 1. If the BAC or designated Procurement Unit
  finds that the contractor w/ the lowest
  calculated total bid price passes the
  post-qualification criteria, his bid shall be
  considered the Lowest calculated responsive
  bid, and the office shall award the contract to
  him.
• 2. If, however, the BAC or the designated
  Procurement Unit finds that the contractor w/ the
  lowest calculated total bid fails the
  post-qualification criteria, the office shall
  immediately notify him in writing that he is
  post-disqualified and in the same notice be
  informed of the grounds for his
  post-disqualification. The bidder shall have 7
  days from receipt of the notification to request
  from the BAC, if he so wishes, a reconsideration
  of this decision.

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• 3. After the office has notified the 1st
  contractor of his post-disqualification, the BAC
  or the designated procurement unit shall initiate
  and, w/in 7 days, complete the same
  post-qualification process on the contractor w/
  the second lowest calculated bid. If the 2nd
  contractor passes the post-qualification
  criteria, and provided that the request for
  reconsideration of the bidder with the lowest
  calculated bid is denied, the bid of the 2nd
  lowest contractor shall be considered as the
  lowest calculated responsive bid.
• 4. If the 2nd contractor, however, fails the
  post-qualification criteria, the previous process
  is repeated for the bidder w/ the next lowest
  calculated bid(s), until the lowest calculated
  responsive bid is obtained for award.
• 5. In the event of refusal or failure of the
  lowest Calculated Responsive Bidder for award to
  enter into contract w/in the stipulated time, the
  Government shall impose the appropriate sanctions.

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• 6. In the event of refusal, inability or failure
  of the lowest Calculated Responsive Bidder to
  make good his bid by entering into contract and
  to post his performance security w/in the time
  provided therefore, the 2nd lowest calculated
  responsive bidder shall be considered for award
  at his calculated bid price provided that his
  calculated bid shall not exceed the APPROVED
  BUDGET FOR THE CONTRACT hereof. This rule shall
  likewise apply to the 3rd lowest calculated
  responsive bidder in case the 2nd lowest
  calculated responsive bidder shall likewise
  refuse to enter into contract with the
  government. Otherwise, the Contract shall be
  advertised anew for bidding.
• 7. If after re-bidding, no bid still comes w/in
  the limits of award of the contracts, the
  contract may be recommended to the head of office
  concerned for prosecution by administration or by
  negotiated contract in accordance w/ existing
  laws, rules and regulations.

35

• 8. Normally w/in 30 calendar days from the date
  the evaluation of bids shall have been completed.
  Post-qualification of the lowest calculated
  bidder to determine its responsiveness shall have
  been done and a decision on the results of the
  post-qualification shall be made.
• If the decision is to award the contract, the
  NOTICE OF AWARD shall be issued normally w/in 7
  calendar days from the date the decision to award
  is made.
• - for foreign-assisted projects the decision to
  award the contract shall be transmitted to the
  concerned foreign financial institution for
  concurrence as may be required normally w/in 7
  calendar days from the date decision to award is
  made. Likewise, the Notice of Award shall be
  issued w/in 7 calendar days.
• The successful bidder or his duly authorized
  representative shall execute the contract w/ the
  office concerned normally w/in 15 calendar days
  from receipt of the Notice of Award.

36

• 9. The Government, however, reserves the right to
  reject any or all bids and to declare a failure
  of bidding, or not to award the contract if there
  is, among others evidence of collusion among
  contractors and other parties resulting in no
  competition.
• By Negotiated Contract
• - Negotiated contract may be entered into only
  where any of the ff. conditions exists and the
  implementing office is not capable of undertaking
  the project by administration
• a. In times of emergencies arising from natural
  calamities where immediate action is necessary to
  prevent imminent loss of life and/or property or
  to restore vital public services, infrastructure
  an utilities such as collapsed bridges, etc.
• b. Failure to award the contract after 2 public
  biddings for valid cause or causes.

37

• c. Where the subject project is adjacent or
  contiguous to an ongoing project and it could be
  economically prosecuted by the same contractor
  provided that subject project has similar or
  related scope of works and is w/in the
  contracting capacity of the contractor, in which
  case, direct negotiation may be undertaken w/ the
  said contractor.
• d. For contracts terminated in accordance w/ the
  provisions of Presidential Decree No. 1870
  (Authorizing the governments take over by
  administration of delayed infrastructure projects
  or awarding of the contract to the other
  qualified contractors) or other similar laws.

The Government assumes no obligation whatsoever
to compensate or indemnify (reimburse) the
bidders for any expenses or loss that may incur
in the preparation of their bid nor does the
Government guaranteed than an award will be made.
38
DOCUMENTS COMPRISING THE CONTRACT

• The ff. documents shall form part of the
  contract
• a. Contract Agreement
• b. Conditions of Contract
• c. Drawing/Plans
• d. Specifications
• e. Invitation to bid
• f. Instructions to Bidders
• g. Addenda
• f. Bid Form including the
• two sealed envelopes
• i. Performance Security
• j. Pre-qualification Statements

• k. Credit Line issued by an authorized bank in an
  amount equal to the ave. operating expenses of
  the project for 2 months or 10 of the total
  project cost, whichever is less.
• l. Notice of Award of Contract and Contractors
  Conforme thereto
• m. Other Contract documents that may be required
  by the office/agency/corporation concerned.

39

• Supporting Documents
• -to facilitate the approval of the contract, the
  ff. documents shall be submitted
• a. Duly Approved Program of Work and Cost
  Estimates
• b. Certificate of Availability of Funds
• c. Approved BUDGET FOR THE CONTRACT
• d. Abstract of Bids
• e. Resolution of the BAC or the BAC recommending
  Award
• f. Approval of Award by Approving Authority
• g. Concurrence of Lending institution in case of
  Foreign- assisted Projects
• h. Other pertinent documents as may be
  reasonably required by existing laws.

40
COURT LITIGATION
By Liezl Jo Sauro
41
Disputes concerning any question arising under
Agreement which is not disposed of by agreement
between the parties, shall be decided by the Head
of the agency concerned who shall furnish
Consultant a written copy of his decision.
Decisions reached by arbitration may be enforced
by either of the parties in any court of
competent jurisdiction in the Philippines. In
case of suit arising in connection with the terms
of this Agreement, the parties hereto expressly
submit to the jurisdiction of the said court.
Litigation Process

• Plaintiff files a written document(complaint) in
  court
• -In the complaint, the plaintiff alleges or
  claims that the party who is being sued, the
  defendant, has done something, or has failed to
  do something, which entitles the plaintiff to
  some sort of relief.

42
Relief frequently money, but may involve
nonmonetary matters, such as issuing an
injunction(an order requiring the defendant to do
something or to stop doing something). ExampleSu
ppose that two individuals, A and B, enter into
contract in which B agrees to sell A her house.
Before the transfer is completed, B changes her
mind about selling and refuses to comply with the
terms of the contract. On the other hand,she
could sue for specific performance of the
contract. This means she is asking the court to
force B to fulfill the terms of their agreement.
2) Defendant is given the opportunity to contest
the lawsuit
A document called an Answer is filed in the court.

• In an answer the defendant
• states why the plaintiff is not entitled to any
  relief
• can challenge a lawsuit by raising certain legal
  issues
• ignore the complaint and do nothing(default)

43
OBJECTIONS TO THE COURT'S JURISDICTION OR THE
NAMED DEFENDANT

• If the defendant intends to take any objection to
  all or any part of the claimant's claim on the
  grounds that
• the court lacks jurisdiction,
• the matter should be referred to arbitration, or
• the defendant named in the letter of claim is the
  wrong defendant, that objection should be raised
  by the defendant within 28 days after receipt of
  the letter of claim. The letter of objection
  shall specify the parts of the claim to which the
  objection relates, setting out the grounds relied
  on, and, where appropriate, shall identify the
  correct defendant. Any failure to take such
  objection shall not prejudice the defendant's
  rights to do so in any subsequent proceedings,
  but the court may take such failure into account
  when considering the question of costs.

44
THE DEFENDANT'S RESPONSE
Within 28 days from the date of receipt of the
letter of claim, or such other period as the
parties may reasonably agree (up to a maximum of
4 months), the defendant shall send a letter of
response to the claimant which shall contain the
following information
the facts set out in the letter of claim which are agreed or not agreed, and if not agreed, the basis of the disagreement

which claims are accepted and which are rejected, and if rejected, the basis of the rejection
if a claim is accepted in whole or in part, whether the damages, sums or extensions of time claimed are accepted or rejected, and if rejected, the basis of the rejection
45
if contributory negligence is alleged against the claimant, a summary of the facts relied on
whether the defendant intends to make counterclaim, and if so, giving the information which is required to be given in a letter of claim
the names of any experts already instructed on whose evidence it is intended to rely, identifying the issues to which that evidence will be directed
If no response is received by the claimant within
the period of 28 days (or such other period as
has been agreed between the parties), the
claimant shall be entitled to commence
proceedings without further compliance.
46
CLAIMANT'S RESPONSE TO COUNTERCLAIM
The claimant shall provide a response to any
counterclaim within the equivalent period allowed
to the defendant to respond to the letter of
claim.
47
3) Discovery
Litigation proceeds if both the plaintiff and
defendant filed appropriate documents with the
court with the parties trying to find out as much
as they can about the other sides case.
Parties may request various orders from the court
dealing with the case prior to the trial. These
request may range from very simple procedural
issues to more complicated legal issues. These
requests are known as motions.
If the parties are unable to settle their
dispute, and the case is not disposed of by a
motion, then normally the parties will eventually
go to court and present evidence to support their
claims. The litigation process does not
necessarily end at trial because both sides have
the right to appeal the decision to a higher
court.
48
Prior to commencing proceedings, the claimant or
his solicitor shall send to each proposed
defendant a copy of a letter of claim which shall
contain the following information
the claimant's full name and address
the full name and address of each proposed defendant
a clear summary of the facts on which each claim is based
the basis on which each claim is made, identifying the principal contractual terms and statutory provisions relied on
49
the nature of the relief claimed if damages are claimed, a breakdown showing how the damages have been quantified if a sum is claimed pursuant to a contract, how it has been calculated if an extension of time is claimed, the period claimed
where a claim has been made previously and rejected by a defendant, and the claimant is able to identify the reason(s) for such rejection, the claimant's grounds of belief as to why the claim was wrongly rejected
the names of any experts already instructed by the claimant on whose evidence he intends to rely, identifying the issues to which that evidence will be directed.
50
RIGHT OF WAY CONSIDERATION
By LOVELEANE MARIE LAO
51
EASEMENT OF RIGHT OF WAY

• ART. 649. The owner, or any person who by virtue
  of a real right may cultivate or use any
  immovable, which is surrounded by other
  immovables pertaining to other persons without
  adequate outlet to a public highway, is entitled
  to demand right of way through the neighboring
  estates, after payment of the proper indemnity.

52

• Should this easement be established in such a
  manner that its use may be continuous for all the
  needs of the dominant estate, establishing a
  permanent passage, the indemnity shall consist of
  the value of the land occupied and the amount of
  the damage caused to the servient estate.

53

• In the case the right of way is limited to
  the necessary passage for the cultivation of the
  estate surrounded by others and for the gathering
  of its crops through the servient estate without
  a permanent way, the indemnity shall consist in
  the payment of the damage caused by such
  encumbrance.
• This easement is not compulsory if the
  isolation of the immovable is due to the
  proprietors own acts.

54

• EASEMENT OF RIGHT OF WAY DEFINED
• This is the easement or privilege by which one
  person or a particular is allowed to pass over
  anothers land, usually thru one particular path
  or line.
• The term right of way, upon the other hand,
  may refer either to the easement itself, or
  simply, to the strip of land over which passage
  can be done.

55

• REQUISITES FOR THE EASEMENT
• The property is surrounded by estates of others.
• There is no adequate outlet to the public
  highway. If outlet is thru the water, like a
  river or sea, under Spanish Law, the easement
  cannot be demanded for there exists an adequate
  outlet it is believed that in the Philippines, a
  distinction must be made, dependent on danger,
  convenience and cost.

56

• c) There must be payment of the proper indemnity
  (but later on, the amount may be refunded when
  the easement ends).
• d) It must be established at the point least
  prejudicial to the servient estate. (This is
  generally but not necessarily, the shortest
  distance).
• e) The isolation must not be due to the
  proprietors own acts.
• f) Demandable only by the owner or one with a
  real right like a usufructuary. (The lessee
  should ask the lessor to demand the easement from
  the adjoining estates).

57

• PROPER INDEMNITY
• If the passage is permanent, pay the value of
  land occupied by the path plus damages. (Upon
  extinction of the easement, the indemnity is
  returned without interest, for the interest is
  considered rent).
• If temporary, pay for the damages caused. (it is
  temporary when, for example, the estate is not
  being cultivated the whole year round, and when
  harvesting is only once in a while or when the
  carrying of materials is needed to improve a
  building).

58

• CLASSIFICATION OF RIGHT OF WAY
• The right of way may be
• PRIVATE (such as the right given in Art.649)
• PUBLIC ( one available to the general public
  but then in such a case, the land involved would
  no longer be private land but a highway or a
  public road).

59

• EASEMENT IN FAVOR OF THE GOVERNMENT
• The servitude which a private property owner is
  ordered to recognize in favor of the Government
  is the easement of a public highway, way,
  private way established by law, or any government
  canal or lateral thereof (Sec. 39, Land
  Registration Act), where the certificate of title
  does not state that the boundaries thereof have
  been determined. But even in this case, it is
  necessary that the easement should have been
  pre-existing at the time of registration of the
  land in order that the registered owner may be
  compelled to respect it.

60

• Where the easement is not pre-existing and is
  sought to be imposed only after the land has been
  registered under the Land Registration Act,
  proper expropriation proceedings, should be had,
  and just compensation paid to the registered
  owner thereof. For, it is elementary that public
  use may not be imposed on private property
  without expropriation proceedings and payment of
  just compensation made to the owner.

61

• Art 651. The width of the easement of right of
  way shall be that which is sufficient for the
  needs of the dominant estate, and may accordingly
  be changed from time to time.

62

• WIDTH OF PATH
• The width may be modified from time to time
  depending upon the reasonable needs of the
  dominant estate.
• Nowadays, the use of automobiles is vital
  necessity, hence the pathway should be sufficient
  for this.
• CAUSES OF EXTINGUISHMENT OF THE EASEMENT OF RIGHT
  OF WAY
• Opening of a new road.
• Joining the dominant estate to another (that is
  the latter becomes also the property of the
  dominant owner) which abuts, and therefore has
  access to the public highway. But the new access
  must be adequate and convenient.

63

• EXTINGUISHMENT NOT AUTOMATIC
• The extinguishment is not automatic, because the
  law says that the servient owner may demand. It
  follows that if he chooses not to demand, the
  easement remains and he has no duty to refund the
  indemnity.

64

• Art.7. PERMITS, TAXES AND SURVEYS
• 7.01. PERMITS AND LICENCES The Owner, with the
  Contractors assistance, shall secure and pay all
  construction permits and licenses necessary for
  the execution of the Work or of any temporary
  work and easements in relation thereof.
• The Contractor shall secure the final occupancy
  permit but he shall not be responsible to the
  owner if, without his fault, the license is not
  issued or there was delay in its issuance.

65

• 7.02. TAXES. Wherever the law of the place where
  the project is located requires a sales,
  consumer, use, or other similar tax related or
  pertinent only to the constructions of the
  project, the Contractor shall pay such tax.
• 7.03. CONSTRUCTION STAKES AND REFERENCE MARK. The
  owner shall furnish all surveys describing the
  physical characteristics, legal limitations, and
  utility locations of the site. He shall also
  furnish right-of-way for access to the site. The
  owner shall be responsible for the establishment
  of lot lines, boundary lines, easements and
  benchmarks which shall be made by a certified
  surveyor.

66

• 7.04. SERVICES OF GEODETIC ENGINEER. The
  contractor shall, at his option or when so
  required under the contract, engage the services
  of a licensed Geodetic Engineer to confirm and
  certify the location of column centers, piers,
  walls, pits, trenches, pipe work, utility lines
  and work of a similar nature. If the Geodetic
  Engineer finds any deviation from the drawings in
  the work of the contractor, he shall report his
  findings to the owner within 24 hours from
  discovery. The contractor shall be responsible
  for loss or damage caused by the act or omission
  of the Geodetic Engineer.