GPRA in Construction Management

GPRA in Construction ManagementRepublic Act No. 9184

Government Procurement Reform Act

and its

Implementing Rules and Regulations

Outline of the Presentation

Background on GPRA GPRA in Construction Management Annex “E” Contract Implementation For Infrastructure

Projects Blacklisting Guidelines Question and Answer Portion

Government Procurement Reform Act (RA 9184)

Simplification of pre-qualification and the strengthening of post-qualification

Use of the Lowest Calculated and Responsive Bid for goods, supplies, materials and related services; and Highest Rated and Responsive Bid for consulting services

Use of the Approved Budget for the Contract (ABC) as ceiling for the bid price

Use of transparent, objective and non-discretionary criteria Increased transparency in the procurement process Professionalization of procurement officials Inclusion of Penal and Civil Liabilities


Governing Principles of ProcurementTransparency

Equal Opportunity (through standardization)

Streamlined Process

Accountability

Public Monitoring


General Rule: Competitive Bidding Method of procurement Open to participation by any interested party Consists of the following processes: advertisement, pre-

bid conference, eligibility screening of prospective bidders, receipt and opening of bids, evaluation of bids, post-qualification, and award of contract,

Specific requirements and mechanics of which shall be defined in the IRR to be promulgated under this Act


General Process of Competitive Bidding: Advertisement Pre-bid conference Eligibility screening of prospective bidders Receipt and opening of bids Evaluation of bids Post-qualification Award of contract

Assumed the Process has been above-board


Contract Implementation for Infrastructure Projects Annex “E” of IRR, RA 1984


Variation Orders covers any increase/decrease in quantities, including the

introduction of new work items that are not included in the original contract or reclassification of work items that are either due to change of plans

change of plans, design or alignment to suit actual field conditions resulting in disparity between the preconstruction plans used for purposes of bidding and the "as staked plans“

construction drawings prepared after a joint survey by the contractor and the Government after award of the contract


Variation Orders allowed, provided: cumulative amount of the positive or additive Variation

Order does not exceed ten percent (10%) of the original contract price

The addition/deletion of works under Variation Orders should be within the general scope of the project as bid and awarded.

The scope of works shall not be reduced so as to accommodate a positive Variation Order.


Kinds of Variation Orders Change Order

Covers any increase/decrease in the quantities of original work items in the contract

Extra Work Order Introduction of new work necessary for the completion,

improvement or protection of the project which was not included as items of work in the original contract

where there are subsurface or latent physical conditions at the site differing materially from those indicated in the contract, or

where there are duly unknown physical conditions at the site of an unusual nature differing materially from those ordinarily encountered and generally recognized as inherent in the work or character provided for in the contract.


Positive Variation Order Beyond 10% of Original General Rule: Subject of to another contract to be bid if

the works are separable from the original contract Exceptional cases

Urgently necessary to complete the original scope of work

Beyond 10% but not over 20% Subject to GPPB guidelines Sanctions on the designer, consultant or official who

failed to consider the Variation Order going beyond 10%


Procedure for claiming a Variation Order Written Communication by contractor

Within 7 calendar days after commencement of work Within 28 calendar days Full and detailed particulars of the extra cost For purposes of investigation Failure to provide notice a waiver of any claim


Procedure for claiming a Variation Order Preparation of Variation Order by Representative

Contractor’s Notice Plans Computations as to quantities

Indicate specific stations where works are needed Date of Inspection/investigations with logbook Detailed estimate of unit cost Justifications

Submission to the Head of the Procuring Entity


Head refers to technical staff On the spot investigation by technical staff

To verify the work to be done Verification Report Review of quantities and prices Recommendation of Approval Approval of Head

Time frame for processing: not to exceed 30 calendar days


Costing For change orders: exactly the same or similar to original

contract For extra work orders: based on

Direct unit costs used in the original contract All new components of new work items shall be fixed

prices, provided: Acceptable to both parties Based on contractor’s estimate as validated by the

procuring entity via document canvass

Request for payment: detailed accounting and amount


Conditions to start work order and receive payments APPROVAL of the Head of Procuring Entity, except

Emergency Time is of the essence But cumulative increase must not exceed 5% And documented for approval

Cumulative amount exceeds 5% Needs prior approval before commencement


Advance payment Written Request by contractor Not exceeding 15% of total contract price Lump sum or 2 installments According to schedule specified in ITB and other tender

documents Irrevocable standby L/C, bank guarantee or surety bond 15% Deduction from periodic progress payment Proportionate decrease in L/C or guarantee instrument

during progress of service


Progress payment Monthly Statement of Work Accomplished (SWA) or

Progress billing and request for progress payment show the amounts which the contractor considers itself

to be entitled to up to the end of the month, to cover (a) the cumulative value of the works it executed to

date, based on the items in the Bill of Quantities, and

(b) adjustments made for approved variation orders executed

Check and certify by representative or project engineer


Progress payment Deductions certified gross amounts of billing:

Cumulative value of the work previously certified and paid for.

Portion of the advance payment to be recouped for the month.

Retention money in accordance with the condition of contract.

Amount to cover third party liabilities. Amount to cover uncorrected discovered defects in the

works.


Retention Money 10% of Progress Payments

For first 50% of value of works: 10% of total amount due

For last 50%: no additional retention if the work is satisfactorily done and on schedule

Due for release upon final acceptance of the works Could be substituted provided satisfactory and on time


Contract Completion 95% completion Inspectorate team

Inspection Punch-listing

Remaining works Deficiencies Time for full completion of project

Preparation for Final Turn Over


Liquidated Damages If delay exceeds a time duration equal to 10% of contract

time plus any extensions PE may rescind the contract Forfeit the security Takeover the project or award to another through negotiated contract

If delay exceeds 10% Automatic takeover or award to another Automatic forfeiture of security


Suspension of Work by Procuring Entity Force Majeure Failure of contractor to correct unsafe work conditions or

conditions unsafe to public Failure of contractor to carry out valid orders Adjustment of plans to suit field conditions as necessary

during construction


Suspension of Work by Contractor Right of way problems Failure to issue requisite construction plans Peace and order conditions

Certified in writing by PNP Confirmed in writing by DILG

Failure to deliver government-furnished materials and equipment

45-day delay in payment for progress billings


Extension of Contract Time Additional Work Other special circumstance PE determines amount of extension Notice of circumstance justifying extension

Prior to expiration of contract Within 30 days after such work has been commenced or

after the circumstance leading to such claim has arisen Failure to provide notice: waiver of claim Subject to investigation


Extension of Contract Time No extensions allowed for:

Ordinary unfavorable weather conditions Inexcusable failure or negligence of contractor to

provide required equipment, supplies and materials Reasons given to support request was already

considered in the original contract Only when affected activities fall within the critical path of

the PERT/CPM network


Extension of Contract Time Rainy/unworkable days

Based on actual conditions of the site In excess of the rainy/unworkable days allowance

determined in the original contract major calamities such as exceptionally destructive

typhoons, floods and earthquakes, and epidemics non-delivery on time of materials, working drawings, or

written information to be furnished by the procuring entity


Extension of Contract Time Rainy/unworkable days

non-acquisition of permit to enter private properties within the right-of-way, resulting in complete paralyzation of construction activities

other meritorious causes as determined by the Government's authorized Engineer and approved by the procuring entity


Extension of Contract Time Public Conditions

Shortage of Construction Materials General Labor Strikes Peace and Order Problems

These may be considered provided: Publicly-felt certified by appropriate government agencies such as

DTI, DOLE, DILG, and DND, among others Attached bondsmen’s consent to request for extension


Blacklisting Failure of contractor, due solely to his fault or negligence to

mobilize and start work within the specified period in the NTP Failure by the contractor to fully and faithfully comply with

its contractual obligations without valid cause, or failure by the contractor to comply with any written lawful

instruction of the procuring entity or its representative(s) pursuant to the implementation of the contract

Assignment and subcontracting of the contract or any part thereof or substitution of key personnel named in the proposal without prior written approval by the procuring entity


Blacklisting poor performance by the contractor or unsatisfactory quality

and/or progress of work arising from his fault or negligence as reflected in the Constructor's Performance Evaluation System (“CPES”) rating sheet In the absence of a CPES Rating Sheet, poor performance

is: Negative slippage of 15% and above within the critical path of

the project due entirely to the fault or negligence of the contractor

Quality of materials and workmanship not complying with the approved specifications arising from the contractor's fault or negligence


Blacklisting Willful or deliberate abandonment or non-performance of

the project or contract by the contractor resulting to substantial breach thereof without lawful and/or just cause

Consequence: Suspension Forfeiture of Performance Security


Blacklisting Lawful instructions, include but are not limited to:

Employment of competent technical personnel, competent engineers and/or work supervisors

Provision of warning signs and barricades in accordance with approved plans and specifications and contract provisions

Stockpiling in proper places of all materials and removal from the project site of waste and excess materials, including broken pavement and excavated debris in accordance with approved plans and specifications and contract provisions


Blacklisting Lawful instructions, include but are not limited to:

Deployment of committed equipment, facilities, support staff and manpower

Renewal of the effectivity dates of the performance security after its expiration during the course of contract implementation


Blacklisting Procedure Termination of Contract due to default Immediate Issuance of Blacklisting Order Forfeiture of performance secuty Notification of the GPPB


Question and Answer Portion

GPRA in Construction ManagementThank you very much!

GPRA in Construction Management

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