Docstoc

Who may be allowed to Bid

Document Sample
Who may be allowed to Bid Powered By Docstoc
					Getting Contract
Charges and Violations of Contracts
Remedies and Settlement




 Group III
 Members:
     Bacus, Bon
     Jamero, Jacinto
     Lapiña, Joan
     Lao, Loveleanne
     Sauro, Jo
        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.
            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.
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
    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.
   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.
      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
       other persons;
     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
                   Pre-bid conference
                   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
          screening.
       4. Statement that his firm is not included in the “blacklist” of Contractors issued by
          the CIAP
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
the owner.s
   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
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
       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/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
                                  Group 3
                                REVISED CLASSIFICATION AND CATEGORIZATION TABLE FOR CFY 2005-2006


CLASSIFICATION                                C                     MINIMUM QUALIFICATION REQUIREMENTS
                                              A
                                                    (1)                                              (2)              (3)
                                              T
                                                    FINANCIAL CAPACITY                        STE MIN. CONST.         OVERALL
                                              E
                                                                                             EXP. REQUIREMENT         CREDIT
                                              G
                                                                                                                      POINTS
                                              O     STOCKHOLDER'S        CREDIT    INDIVI-       AGGRE-     MIN.
                                                                                                                      REQUIRE
                                              R        EQUITY            POINTS    DUAL          GATE       C.P.
                                                                                                                      D
                                              Y                          (C.P.)                             REQ'D.
                                                                         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
               Engineering
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
SPECIALTY
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-
         tensioning
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
     Refrigeration
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
     Installation
SP-SD Structural Demolition
SP-LS Landscaping
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
bidding procedures
bidding failure
awarding of contract
contract documents




                       by: lapiña, joan marie e.
               BIDDING PROCEDURES
    Preparation of Bids and Bid Bonds, and
     Pre-qualification/Eligibility Statement

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
     bid.
        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
   Personpower schedule
   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
   Bid Security
   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
            Responsive Bid
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
        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.
   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)
                    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.
             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
   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.
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
    causes.
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
               CONTRACT
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
  c. Drawing/Plans
                                         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
                                         office/agency/corporation
  i. Performance Security
                                         concerned.
  j. Pre-qualification Statements
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.
COURT LITIGATION




               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.


 Litigation Process

 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
NAMED DEFENDANT



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
      costs.
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;
   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.
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 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
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.
 RIGHT OF WAY
CONSIDERATION

  By: LOVELEANE MARIE LAO
   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.
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.
          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
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.
       REQUISITES FOR THE EASEMENT

a)   The property is surrounded by estates of
     others.
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
  distance).
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).
              PROPER INDEMNITY

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
     Art.649)
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
it.
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.
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.
WIDTH OF PATH:
a) The width may be modified from time to time
   depending upon the reasonable needs of the dominant
   estate.
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
      and convenient.
 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.
   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
  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.
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.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:4/11/2011
language:English
pages:66