Charges and Violations of Contracts
Remedies and Settlement
IB 1 - Who may be allowed to Bid
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.
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:
Executive Officer and Secretary (regular)
Members from the Private Sector
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.
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.
B 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/corporation
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
also be advertised through other forms of media such as radio and television,
provided that based on the agency’s 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
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
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
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
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:
>falsification of public documents
>submission of borrowed license (license lending)
>Submission 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.
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., Contractor’s 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.
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
2. Committing Acts punishable under the anti-graft laws.
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
Submission of Bids
Opening of Bids
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. Contractor’s 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
4. Statement that his firm is not included in the “blacklist” of Contractors issued by
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/eligibility
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 contractor’s statement shall
include, for each contract, the name of the contract, owner’s name and address,
nature of work, contractor’s 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 contractor’s performance evaluation system (CPES) rating
sheets, an/or certificates of completion and owner’s acceptance.
The value of the contractor’s larges single contract, escalated to present prices,
completed within the period specified in the notice for prequalification/eligibility
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, owner’s name and address, nature of work, contractor’s
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
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
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
contractor’s total and current assets and liabilities.
The contractor’s 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:
NFCC=K (current assets minus current liabilities) minus (Value of all outstanding
works under ongoing contracts including awarded contracts yet to be started).
K=10 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.
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. Notwithstanding 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.
3. 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.
4. 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.
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
c. Above 25 Million up to 45 Days before the date of bidding
d. Above 50 Million up to 60 Days before the date of bidding
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/corporation head concerned.
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. 2:30
REVISED CLASSIFICATION AND CATEGORIZATION TABLE FOR CFY 2005-2006
CLASSIFICATION C MINIMUM QUALIFICATION REQUIREMENTS
(1) (2) (3)
FINANCIAL CAPACITY STE MIN. CONST. OVERALL
EXP. REQUIREMENT CREDIT
O STOCKHOLDER'S CREDIT INDIVI- AGGRE- MIN.
R EQUITY POINTS DUAL GATE C.P.
Y (C.P.) REQ'D.
I. GENERAL ENGINEERING AAA P60,000,000.00 600.00 10 60 300 1,650.00
GE-1 Road, Highways, Pavement AA 30,000,000.00 300.00 10 50 250 765.00
Railways, Airport horizontal
Structure, and Bridges
GE-2 Irrigation or Flood Control A 6,000,000.00 60.00 7 21 105 235.00
GE-3 Dam, Reservoir or Tunneling B 3.000,000.00 30.00 5 10 50 107.50
GE-4 Water Supply C 1,500,000.00 15.00 3 3 15 51.50
GE-5 Port, Harbor or Offshore D 600,000.00 6.00 3 3 15 21.00
II. GENERAL BUILDING AAA P60,000,000.00 600.00 10 60 300 1,610.00
GB-1 Building or Industrial Plant AA 30,000,000.00 300.00 10 50 250 745.00
GB-2 Sewerage or Sewage System A 6,000,000.00 60.00 7 21 105 231.00
GB-3 Water Treatment Plant & System B 3,000,000.00 30.00 5 10 50 105.50
GB-4 Park, Playground or C 1,500,000.00 15.00 3 3 15 60.50
Recreational Work D 600,000.00 6.00 3 3 15 21.00
SP-FP Foundation Work AAA P60,000,000.00 600.00 10 60 300 1,210.00
FP1- Piling Work
FP2- Soil Stabilization/ Slope
Protection/ Reinforce Earth
SP-SS Structural Steel Work AA 30,000,000.00 300.00 10 50 250 545.00
SP-CC Concrete Pre-casting,
Pre-Stress or Post-
SP-PS Plumbing & Sanitary Work A 6,000,000.00 60.00 7 21 105 181.00
SP-EE Electrical Work
SP-ME Mechanical Work
SP-AC Airconditioning or B 3.000,000.00 30.00 5 10 50 95.50
SP-ES Elevator or Escalator
SP-FP Fire Protection Work
SP-WP Waterproofing Work
SP-PN Painting Work C 1,500,000.00 15.00 3 3 15 45.50
SP-WD Well-Drilling Work
SP-CF Communication Facilities
SP-MS Metal Roofing & Siding D 600,000.00 6.00 3 3 15 21.00
SP-SD Structural Demolition
SP-EM Electro Mechanical Work
Sp- NF Navigational Facilities
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
awarding of contract
by: lapiña, joan marie e.
Preparation of Bids and Bid Bonds, and
a. Bids shall be prepared on the proposal book form in accordance w/
the Instructions to Bidders.
b. 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.
c. 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
Submission, Opening and Abstracting of Bids
a. 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.
b. 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 Contractor’s Personnel to be assigned to the contract to be bid, w/
their complete qualification and experience data
List of Contractor’s 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
Certification that the detailed estimate, cash flow by quarter and payments
schedule are in the second envelope
Commitment from the Contractor’s 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
contractor’s compliance w/ the above documents required.
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.
e. 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.
f. Bids w/ submitted bid prices that are higher than the approved budget
for the contract under bidding shall be rejected outright.
g. 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.
Determination of the Lowest Calculated
a. 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
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
b. At the time of the opening of the bids, there shall be at least 2
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.
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
- 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.
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.
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
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.
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.
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.
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
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 government’s 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.
DOCUMENTS COMPRISING THE
The ff. documents shall form part of the contract:
a. Contract Agreement k. Credit Line issued by an authorized
b. Conditions of Contract bank in an amount equal to the
ave. operating expenses of the
project for 2 months or 10% of
d. Specifications the total project cost, whichever
e. Invitation to bid is less.
f. Instructions to Bidders l. Notice of Award of Contract and
g. Addenda Contractor’s “Conforme“ thereto
f. Bid Form including the m. Other Contract documents that
two sealed envelopes may be required by the
i. Performance Security
j. Pre-qualification Statements
-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-
h. Other pertinent documents as may be reasonably required by
By: Liezl Jo Sauro
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.
1) 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.
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).
Example:Suppose 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)
OBJECTIONS TO THE COURT'S JURISDICTION OR THE
If the defendant intends to take any objection to all or any
part of the claimant's claim on the grounds that
(i) the court lacks jurisdiction,
(ii) the matter should be referred to arbitration, or
(iii) 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
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
the facts set out in the letter of claim which are
agreed or not agreed, and if not agreed, the basis of the
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;
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.
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.
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 side’s 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.
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;
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
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.
RIGHT OF WAY
By: LOVELEANE MARIE LAO
EASEMENT OF RIGHT OF
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.
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
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
proprietor’s own acts.
“EASEMENT OF RIGHT OF WAY” DEFINED
This is the easement or privilege by which one
person or a particular is allowed to pass over
another’s land, usually thru one particular path
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.
REQUISITES FOR THE EASEMENT
a) The property is surrounded by estates of
b) 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.
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
e) The isolation must not be due to the
proprietor’s 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).
a) 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).
b) 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).
CLASSIFICATION OF RIGHT OF WAY
The right of way may be:
a) PRIVATE (such as the right given in
b) 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”).
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
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
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
WIDTH OF PATH:
a) The width may be modified from time to time
depending upon the reasonable needs of the dominant
b) 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
a) Opening of a new road.
b) 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
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
Art.7. PERMITS, TAXES AND SURVEYS
7.01. PERMITS AND LICENCES: The Owner, with
the Contractor’s 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
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.
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.
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.