AND ITS IMPLEMENTING RULES AND REGULATIONS

Click to edit Master subtitle style

PD 1594

3/18/12

Presidential Decree No.1594

Prescribing Policies, Guidelines, Rules and Regulations for Government Contract
3/18/12

I. DETAILED ENGINEERING

3/18/12

No bidding and/or award of contract for a construction project shall be made unless the detailed engineering investigations, surveys and designs for the project have been sufficiently carried out and approved. 3/18/12

 Survey

DETAILED ENGINEERING ACTIVITIES

Site Investigation

Soil and Foundation Investigation

Construction Materials Investigations

Preparation of Design Plans

3/18/12

Preparation Preparation

of Quantity and Cost Estimates of Program of Work

Preparation

of Proposed Construction Schedule (and Estimated Cash Flow for projects with schedule over 6 months)
3/18/12

Preparation

of Site or Right-of-

Preparation

of Utility Relocation

Plan
Preparation

and Submission of Design Report Impact Statement for Critical Projects of Bid/Tender Documents

Environmental Preparation Preparation

of Minimum Requirements for a Construction 3/18/12

Works under DETAILED ENGINEERING

Design Field

standards

Surveys and Investigation Plans

q q q

Contract

Site Development Plan Plans and profile sheet Typical sections and details
3/18/12

Drainage details where applicable Structural plans at appropriate scales indicating all details necessary in order that the complete structure can be set out and constructed Other details which may be required

Quantities Special

Provisions

3/18/12

Bid/Tender Documents
Instruction to Bidders General Conditions Addenda Itemized Bill of Quantities Day Work Schedule Form of Bid Security Performance Security
3/18/12

Bidding Documents R.A 9184

Approved Budget for the Contract; Instructions to Bidders, including criteria for eligibility, bid evaluation and postqualification, as well as the date, time and place of the prebid Conference (where applicable), submission of bids and opening of bids; 3/18/12

Plans

and Technical Specifications; Form of Bid, Price Form, and List of Goods or Bill of Quantities; Delivery Time or Completion Schedule; Form and Amount of Bid Security; Form and Amount of Performance Security and Warranty; and, Form of Contract, and General 3/18/12

Contract Plans and Specifications Draft Contract including price escalation clause All other information required for local and international bidding procedures

Program of Work
Estimates of the work items Quantities and costs PERT/CPM (Programme Evaluation Review Technique/ Critical Path Method) 3/18/12 network of the project

II. INSTRUCTION TO BIDDERS

3/18/12

Who may allow to bid?

Filipino

- Citizens (Single Proprietorship) - 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
Contractors forming

themselves into a joint venture 3/18/12

Organizations of the BAC

Bid and Award Committee (BAC) or Designated Procurement Unit
Functions
1. 2. 3. 4. 5.

Conduct of Eligibility Screening Bidding Evaluation of the Bids Post-qualification Recommending award of contracts 3/18/12

BAC Composition
Chairman

- at least third ranking of the office

Executive

Officer and

Secretary - Legal Officer of the office - Administrative Officer of the agency(when does not 3/18/12

 Member Member

(regular) (provisional)

- Technical member At least two, with experience in the type of contract to be bid and in project management

3/18/12

Members

from the private

sector - On qualified representative from constructors association recognized by CIAP (Construction Industry Authority of the Philippines) - One qualified representative from the ff. organizations:
3/18/12

any of

1.) End User group or non

governmental organizations 2.) Project-related Professional associations (accredited by Professional Regulation Commission or Supreme Court)
(They are non-voting members)
3/18/12 Observers

Procurement Process for Government Infrastructure Contracts

Eligibility Screening Pre-bid Conference

(For Prospective Bidders)

(For Eligible Bidders)

(For the lowest calculated responsive bid)

Award of the Contract

Postqualification
(For the chosen lowest calculated bid)

Bidding Process (Choosing the lowest possible Bid)

3/18/12

INVITATION TO PREQUALIFY
For locally and Foreign funded CONTRACTS 1.) Newspaper (General Circulation)
Contracts

((( (ADVERTISMENT)

costing more than 5 million Advertisement shall be made at least 3 times within reasonable period costing 5 million and 3/18/12

Contracts

2. ) The same advertisement shall be posted in the website of the office concerned. 3.) Invitation may also be advertised through televisions and radio
3/18/12

Notice for Pre-qualifications/ Eligibility Screening

a.) Name and location of project b.) Project background and other relevant information regarding the proposed work c.) Approved budget for the Contract to be bid and source 3/18/12 funding

ISSUANCE OF QUALIFICATION STATEMENT/ FORMS

d.) Criteria to be used by the office in:

- Prequalification or Eligibility
Screening of the contractors

- Evaluation of Bids - Post-qualification of the

lowest calculated bid e.) Cost and Place of issuance of Eligibility Forms and Bid/Tender documents 3/18/12

f.) Date, time and place of: accomplished forms

- Submission of

ELIGIBILTY

- Pre-bid conference - Submission of bids

Opening of bids
3/18/12

Eligibility Screening
Pre-qualification or Eligibility Statement To be submitted by Contractors

Legal Documents

1.) Contractors valid PCAB

license for the type and cost of the contract to be bid
3/18/12

3.)
of the

Letter Authorizing the Head Office or his duly authorized

representatives 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 Construction Industry Authority of 3/18/12 the Philippines

Technical Documents 1.) A statement of all

government and private construction contracts, completed in at least the last 3 years

2.) A statement of all ongoing

government and private construction contracts awarded but not yet started
3/18/12

3.) A statement that the contractor has key personnel that may be used for construction contracts 4.) A statement that the contractor owns equipment that may be used for construction contracts
3/18/12

Financial Documents
1)

Audited financial statements for at least the past 3 calendar years Contractors net financial contracting capacity

2)

3/18/12

Issuance of Plans,, Specifications,, Proposal Book Forms and Draft Contract (For Eligible Bidder)
ESTIMATED PROJECT COST ( in Peso)
Up to 5 Million Above 5 Million 25 Million Above 25 Million 50 million Above 50 Million 100 Million Above 100 Million
3/18/12 Issuance of Plans,Specifications,Proposal Book Forms and Draft Contract

15 days before bidding 30 days before bidding 45 days before bidding 60 days before bidding 90 days before bidding

Bid Security
Original copy of the bid shall be accompanied by a bid security, payable to the procuring entity concerned as a guarantee that the successful bidder shall, within 30 calendar days or less, from receipt of the notice of award, enter into contract with the procuring entity and furnish the performance security allows a longer period.
3/18/12

Bid VALIDITY
Bids and bid securities shall be valid for a reasonable period as determined by the Head of the Procuring Entity concerned, which shall be indicated in the Bidding Documents, but in no case shall the period exceed one hundred twenty (120) calendar days from the date of the opening of bids.
3/18/12

Submission,, Opening and Abstracting of Bids/Tender

Bids in the prescribed bid form including its annexes shall be submitted in two (2) sealed envelopes with the name of the CONTRACT to be bid and the name of the BIDDER in capital letters addressed to BAC of the office concerned. They shall be marked by the bidder DO NOT OPEN BEFORE (date and time of opening of bids). 3/18/12

FIRST ENVELOPE

Technical Proposal Compliance (Pass or Fail)

SECOND ENVELOPE
Price proposal
3/18/12

First Envelope
v v v v

Authority of the signing official Construction Schedule and S-curve Construction Methods Organizational Chart for the contract to be bid
3/18/12

List of Contractors Personnel with their complete qualification and experience data Personpower schedule List of Contractors Equipment

v v

Units intended for use exclusively in the 3/18/12 contract to be bid

v v v v

Equipment Utilization Schedule Certificate of site inspection Bid Security Certification that the detailed Estimates, Cash flow by quarter and Payments Schedule are in 3/18/12

Commitment from the contractors bank to extend to him a credit line if awarded the contract to be bid Construction Safety and Health Program Other non- discretionary criteria
3/18/12

v v

Second Envelope
v v v

Bid Prices in the Bill of Quantities Detailed Estimates Cash flow by Quarter and

Payments Schedule

3/18/12

Bid shall be received on or before designated time and date for eligible considerations. Bids may be withdrawn in writing 5 working days before the deadline of submission of bids. Bids with submitted bid prices that are higher than the approved budget for the contract under bidding shall be 3/18/12 rejected outright

After all the bids have been received and opened, the corresponding Abstract of Bids shall be prepared. It includes: - Name of the project and its location Time, date and place of bidding - Name of the bidders and their corresponding bids, the amount3/18/12 security and name of

Determination of the Lowest Calculated Responsive Bid

Lowest Calculated Responsive Bid - is the bid with the lowest price as calculated and which complies with all the requirements - it is determined in two step: 1.) Detailed Bid Evaluation
3/18/12 2.) Post-qualification

Detailed Bid Evaluation

The BAC shall, within 7 days, conduct a detailed evaluation of all bids.

Non-Discretionary Criteria:
1. 2. 3. 4.

Bid Security Completeness of Bid Major Deviations Corrections for errors, 3/18/12 discounts and other

The BAC of concerned government offices should complete the evaluation of bids not later than 30 calendar days from the date of the opening of the bids
3/18/12

Post-qualification
This verifies and ascertain whether the bidder with the lowest calculated bid complies or is responsive to all the requirements of the contract

(Contractor with the Lowest Calculated Bid)

3/18/12

1. Legal Requirements 2. Technical Requirements

v

The contractors stated experience must be verified and validated by the BAC to be relevant The experience of the contractor's key personnel must be 3/18/12 verified by the BAC

The equipment units listed by the contractor must be verified by the BAC The BAC shall check the performance of the contractor in his ongoing government and private 3/18/12 contracts

Financial Requirements BAC must be verified the ff:

v v

The contractors stated net working capital The value of all outstanding or unfinished works under ongoing contracts yet to be started The contractors net financial contracting capacity
3/18/12 The credit line commitment

v v

If the bidder passes all of the above criteria, he shall be considered post- qualified. If the bidder fails any of the above criteria, he shall be postdisqualified.

3/18/12

AWARDING OF CONTRAC
If the BAC finds that the contractor with the lowest calculated total bid prices passes the post-qualification criteria, the office shall award the contract to him.

3/18/12

AWARDING OF CONTRAC
If, however, the BAC finds that contractor with the lowest calculated bid fails the post-qualification criteria, the office shall immediately notify him in writing that he is postdisqualified, and the BAC, within 7 calendar days complete the same post-qualification process on the second contractor with the second lowest calculated bid. 3/18/12

AWARDING OF CONTRAC
If the decision is to award the contract, the Notice of Award shall be issued normally within 7 calendar days from the date the decision to award is made.

3/18/12

The successful bidder or his duly authorized representative shall execute the contract with the office concerned normally 15 calendar days from the receipt of the Notice of Award

3/18/12

The Government 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
3/18/12

Documents Comprising the Contract

1. Contract Agreement 2. Conditions of the contract 3. Drawings/Plans 4. Specifications 5. Invitation to Bid 6. Instruction to Bidders 7. Addenda 3/18/12

8. Bid Form 9. Performance Statements 10. Credit Line issued by an authorized bank in an amount equal to the average operating expenses of the project for 2months of 10% of the total project cost 11. Notice of Award of Contract 12. Other contract documents may be required
3/18/12

Supporting Documents
q q q q q q q

Duly Approved Program of Work and Cost Estimates Certificate of Availability Of Funds Approved Budget for the Contract Abstract of Bids Resolution of the BAC or the BAC recommending award Approval of Award by Approving Authority Other pertinent documents as may be reasonably 3/18/12 required by the existing laws

Approval of Contract
The approving authority for the contract or his duly authorized representative shall be given a maximum of fifteen (15) calendar days from receipt thereof to approve or disapprove it.

3/18/12

Approval of Contract
For contracts requiring the approval by the Office of the President, the same should normally be approved/disapproved within 30 calendar days from the date that request for approval of such contracts shall have been received by the Office of the President.
3/18/12

Issuance of Notice to Proceed

The concerned government office should issue the Notice to Proceed (NTP) to successful bidder not later than 15 calendar days from the date of approval of the contract by the authorized government official. The Effectivity date for the NTP shall be specified by the agency concerned.
3/18/12

III. CONTRACT IMPLEMENTATION

3/18/12

Advance payment
The Government shall make an advance payment to the contractor in an amount equal to fifteen percent (15%) of the total contract price.
3/18/12

Contract completion
Once the project reaches an accomplishment of 95% of the total contract amount, the government may create an inspectorate team to make preliminary inspection and submit a punch-list to the contractor in preparation of the final turnover of the project.
3/18/12

Punch-list
Remaining works Work deficiencies for necessary corrections Specific time to fully complete the project, considering the approved remaining contract time as of the date of contract suspension
3/18/12

Suspension of work
1. The Government shall have the authority to suspend work wholly or partly due to any fortuitous events (force majeure).
3/18/12

Suspension of work
2. The contractor shall have the right to suspend work operation on any or all projects along the critical path of activities after 15 calendar days from date of receipt of written notice from the contractor to the district engineer/regional director/consultant, due to the following: 3/18/12

1. Existence of right-of-way problems 2. Requisite construction plans are not issued to the contractor 3. Peace and order conditions 4. Government failure to deliver government-furnished materials and equipment as stipulated in the contract 5. Delay in the payment of 3/18/12 contractors claim for progress

EXTENSION OF CONTRACT TIME

The Government shall determine the amount of extension that a contractor is fairly entitled to, provided that the Government is not bound to take into account any claim for an extension of time
3/18/12

EXTENSION OF CONTRACT TIME

No extension of contract time shall be granted to the contractor due to:
q q

Ordinary unfavorable weather conditions Inexcusable failure or negligence of the contractor to provide the required equipment, supplies or 3/18/12 materials

IV. EVALUATION OF CONTRACTORS PERFORMANCE

3/18/12

Subject and Scope

All contractors undertaking projects with the government shall have their performance evaluated by offices concerned. This evaluation shall be done during construction and upon completion of each government project.
3/18/12

Evaluation Guidelines
All offices concerned are mandated to adopt the CPES Implementing Guidelines as approved by the NEDA Infracom.

3/18/12

Implementation Mechanism for CPES

Each agency shall establish a CPES Implementing Unit (IU) which shall be responsible for CPES guidelines implementation, including but not limited to the supervision of performance evaluators accredited by the CIAP.
3/18/12

Submission of Evaluation Results

All offices concerned shall submit the results of their performance evaluation to the CIAP within one week after the conduct of final evaluation
3/18/12

Utilization of Evaluation Results

The CIAP shall consolidate all of the evaluation results received and shall disseminate the same to all offices concerned.

3/18/12

Such data shall be used in:

q

Pre-qualification and blacklisting of construction firms Adopting measure to further improve performance of contractors in the prosecution of government projects
3/18/12

SALAMAT!!!

3/18/12