Implementing Rules and Regulations 2016
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Implementing Rules and Regulations 2016

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Questions and Answers

What is the primary purpose of amending an order in the context of contract implementation?

  • To adjust the cost or time of work specified in the original contract (correct)
  • To completely revoke the original contract terms
  • To bypass the approval of higher authority
  • To notify the bidders about the awarding of the contract

    • In the procurement process, how many calendar days are allotted for the BAC to notify the bidder of having the Highest Rated Bid?

  • Seven calendar days
  • One calendar day (correct)
  • Three calendar days
  • Five calendar days

    • What is required if an order amendment impacts the cost of the original contract?

  • No adjustments are necessary as per the order
  • A written modification must be agreed upon by both parties (correct)
  • Immediate termination of the contract
  • The project must halt until further notice from higher authority

    • During which phase of the e-procurement process is the Notice to Proceed issued?

    <p>After the signing of contracts</p> Signup and view all the answers

    What constitutes a necessary documentation step for the approval of contracts in the bidding process?

    <p>Approval by a higher authority if required</p> Signup and view all the answers

    What is the maximum advance payment allowed for procurement of goods in a declared State of Calamity?

    <p>15%</p> Signup and view all the answers

    What is required to obtain an advance payment of fifteen percent?

    <p>Irrevocable letter of credit or bank guarantee</p> Signup and view all the answers

    Which of the following is NOT specified as a part of the rules and guidelines for contract implementation?

    <p>Market Analysis</p> Signup and view all the answers

    Upon signing a contract, how long does a supplier have to present their claim for advance payment?

    <p>Sixty days</p> Signup and view all the answers

    Which of the following conditions must be met for an irrevocable letter of credit to be accepted for advance payment?

    <p>It must remain valid until goods are delivered</p> Signup and view all the answers

    Which aspect is NOT included in the list of contract implementation guidelines?

    <p>Supplier Discounts</p> Signup and view all the answers

    What document must accompany a claim for advance payment?

    <p>Irrevocable letter of credit or bank guarantee</p> Signup and view all the answers

    What is the primary responsibility of the CPES Implementing Units within Procuring Entities?

    <p>Implementing guidelines for Constructors Performance Evaluators</p> Signup and view all the answers

    What is included in the manuals issued by the GPPB?

    <p>Incidental Services</p> Signup and view all the answers

    How often are Procuring Entities required to submit performance evaluation results to CIAP?

    <p>Monthly or as necessary</p> Signup and view all the answers

    Which of the following is NOT a responsibility of the CPES Implementing Units?

    <p>Providing legal representation during bidding</p> Signup and view all the answers

    What kind of databank must the CPES Implementing Units develop and maintain?

    <p>A databank of CPES evaluation reports</p> Signup and view all the answers

    For which purpose is the consolidated CPES evaluation results primarily used?

    <p>Pre-qualification/eligibility screening of constructors</p> Signup and view all the answers

    Which of these is NOT a use for CPES evaluation results as delineated by CIAP?

    <p>Promotion of contractors on social media</p> Signup and view all the answers

    Who is responsible for accrediting Constructors Performance Evaluators?

    <p>The Construction Industry Authority of the Philippines</p> Signup and view all the answers

    Which of the following is NOT an intended outcome of utilizing CPES evaluation results?

    <p>Establishing a monopoly in the construction sector</p> Signup and view all the answers

    The cumulative value of positive Variation Orders can exceed twenty percent (20%) of the original contract price only in rare circumstances.

    <p>True</p> Signup and view all the answers

    A contractor must deliver a notice of extra cost claims within fourteen (14) calendar days after the work has commenced.

    <p>False</p> Signup and view all the answers

    Sanctions are imposed only on the contractor if a Variation Order exceeds ten percent (10%) due to negligence.

    <p>False</p> Signup and view all the answers

    The Head of the Procuring Entity must approve the Change Order or Extra Work Order without any conditions.

    <p>False</p> Signup and view all the answers

    A notice that is not provided in the stipulated time will result in the contractor waiving their claim.

    <p>True</p> Signup and view all the answers

    The Project Engineer is responsible for preparing the proposed Change Order and its accompanying documents.

    <p>True</p> Signup and view all the answers

    The cumulative value of positive Variation Orders is allowed to exceed ten percent (10%) of the original contract price without authorization.

    <p>False</p> Signup and view all the answers

    The contractor has up to twenty eight (28) calendar days to notify the procuring entity of justifying circumstances for extra costs.

    <p>True</p> Signup and view all the answers

    The written consent of bondsmen must be submitted separately from the contractor's request for extension of contract time.

    <p>False</p> Signup and view all the answers

    Only accreditation from DOST laboratories is needed for testing materials in infrastructure projects.

    <p>False</p> Signup and view all the answers

    Procuring Entities have the discretion to evaluate contractor performance using their own guidelines without NEDA-INFRACOM's approval.

    <p>False</p> Signup and view all the answers

    CPES evaluations must occur only upon the completion of each government project.

    <p>False</p> Signup and view all the answers

    The budget for CPES implementation must be included in the Engineering and Administrative Overhead Cost of projects.

    <p>True</p> Signup and view all the answers

    All infrastructure project owners must accept results from any accredited testing laboratory.

    <p>False</p> Signup and view all the answers

    The performance evaluation system used for contractors is known as the National Equal Development Assessment (NEDA).

    <p>False</p> Signup and view all the answers

    Bids must be made known to all prospective bidders before the implementation of CPES guidelines.

    <p>True</p> Signup and view all the answers

    Liquidated damages are calculated as at least one eighth (1/8) of one (1) percent of the cost of the unperformed portion of the works for every day of delay.

    <p>False</p> Signup and view all the answers

    The Procuring Entity must prove that it has incurred actual damages to be entitled to liquidated damages.

    <p>False</p> Signup and view all the answers

    A project is deemed usable when it starts to provide the desired benefits as certified by the target users and the concerned contractor.

    <p>False</p> Signup and view all the answers

    If liquidated damages reach fifteen percent (15%) of the total contract price, the Procuring Entity has to terminate the contract immediately.

    <p>False</p> Signup and view all the answers

    The maximum liquidated damages that can be charged is equal to twenty percent (20%) of the total contract price.

    <p>False</p> Signup and view all the answers

    The Procuring Entity can collect liquidated damages from the retention money or other securities posted by the contractor.

    <p>True</p> Signup and view all the answers

    Once a contractor is found to be at fault, the Procuring Entity does not have the right to forfeit the contractor's performance security.

    <p>False</p> Signup and view all the answers

    Liquidated damages are calculated based on the total cost of the completed works.

    <p>False</p> Signup and view all the answers

    A Variation Order can exceed twenty percent (20%) of the original contract price without further bidding.

    <p>False</p> Signup and view all the answers

    An Extra Work Order may be issued for unforeseen subsurface conditions not indicated in the original contract.

    <p>True</p> Signup and view all the answers

    Change Orders can only be issued to increase the quantities of original work items in a contract.

    <p>False</p> Signup and view all the answers

    Variation Orders can introduce completely new work items not previously contracted.

    <p>True</p> Signup and view all the answers

    The introduction of new work under Variation Orders must align with the general scope of the awarded project.

    <p>True</p> Signup and view all the answers

    A change order can be issued by anyone in the procuring entity with knowledge of the contract.

    <p>False</p> Signup and view all the answers

    The cumulative limit for a positive Variation Order is calculated based on the total project budget.

    <p>False</p> Signup and view all the answers

    Work items can be deleted from the original contract to facilitate a positive Variation Order.

    <p>False</p> Signup and view all the answers

    All Procuring Entities are required to establish CPES Implementing Units in their respective offices.

    <p>True</p> Signup and view all the answers

    CPEs are responsible for conducting the yearly evaluation of CPES Implementing Units.

    <p>False</p> Signup and view all the answers

    Evaluation results from CPES should be submitted to CIAP on a weekly basis.

    <p>False</p> Signup and view all the answers

    CIAP is responsible for consolidating all CPES evaluation results received.

    <p>True</p> Signup and view all the answers

    The CPES evaluation results are utilized solely for the pre-qualification of constructors.

    <p>False</p> Signup and view all the answers

    Funding for CPEs accreditation training and seminars is a duty of the CPES Implementing Units.

    <p>True</p> Signup and view all the answers

    CPES Implementing Units are required to develop a databank for performance evaluation results.

    <p>True</p> Signup and view all the answers

    Constructors Performance Evaluators must be accredited by the Construction Industry Association of the Philippines (CIAP).

    <p>False</p> Signup and view all the answers

    Study Notes

    Contracts and Procurement Guidelines

    • Advance payment up to 15% of the contract amount is permitted for procurement to address contingencies in declared disaster areas.
    • Advance payment also requires an irrevocable letter of credit or bank guarantee from a universal or commercial bank.
    • Payment is processed within 60 calendar days after signing the contract, contingent on valid documentation.

    Additional Rules and Guidelines

    • Comprehensive manuals from the Government Procurement Policy Board (GPPB) will address various contract implementation aspects, including:
      • Incidental Services
      • Spare Parts
      • Supplier Performance Delays
      • Responsibilities of the Purchaser
      • Pricing, Payment, Taxes, and Duties
      • Subcontracting, Standards, Packing, and Insurance
      • Transportation, Inspections, Patent Rights, and Liabilities
      • Termination Conditions (default, insolvency, convenience) and Assignment

    CPES Implementation for Infrastructure Projects

    • All procuring entities must establish Construction Performance Evaluation System (CPES) Implementing Units (IUs) for effective oversight.
    • CPES IUs will manage the accreditation of Constructors Performance Evaluators (CPEs) and handle:
      • Funding for CPE training
      • Yearly performance evaluations of CPEs
    • Monthly submission of evaluation results to the Construction Industry Authority of the Philippines (CIAP) is mandatory.

    Utilization of CPES Evaluation Results

    • Evaluation results from CPES will serve multiple functions:
      • Pre-qualifying constructors for projects
      • Contract awarding processes
      • Monitoring and controlling projects
      • Issuing Certificates of Completion
      • Informing policy-making and industry planning
      • Granting incentives or awards aimed at improving contractor performance

    Contract Implementation Timeline

    • Notification to highest-rated bidder occurs within 1 calendar day.
    • Contract preparation and signing are structured with specific timelines, e.g.,
      • Notice of Award issues within 15 calendar days.
      • Notice to Proceed provided within a week after contract signing.

    Amendments to Orders

    • Amendments to contracts can occur if the order increases or decreases costs or timelines, necessitating mutual agreement on adjustments to pricing and schedules.

    Variation Orders

    • Variation Orders allow procuring entities to modify contract terms for changes in quantities or new work items not originally in the contract.
    • Changes can result from alterations in plans, designs, or site conditions as long as the positive Variation Order remains within 10% of the original contract price.
    • The addition or deletion of work items must stay within the project’s general scope; significant reductions to accommodate positive Variation Orders are not permitted.
    • Two main types of Variation Orders:
      • Change Order: Covers increases or decreases in original work quantities.
      • Extra Work Order: Accounts for required new work not in the original contract, often due to unforeseen site conditions.

    Financial Regulations on Variation Orders

    • Positive Variation Orders exceeding 10% of the contract price must be bid separately unless urgent circumstances arise, allowing authorization beyond 10%, not exceeding 20%.
    • If exceeding 10%, sanctions apply to responsible parties for insufficient planning or consideration in the original design.
    • Contractors must provide notices for claims of Variation Orders within set time frames, or risk waiving their claims.

    Liquidated Damages

    • Liquidated damages can be imposed after contract expiration if the contractor fails to complete the work satisfactorily.
    • The penalty is calculated as at least 0.1% of the unperformed work's cost for each day of delay.
    • Usability determination by the procuring entity influences liquidated damages; a project is considered usable when it provides benefits to end users.
    • Liquidated damages owed do not require proof of actual damages and can be deducted from future payments or retention securities.

    Contractor Performance Evaluation

    • All government infrastructure projects require contractor performance evaluation using the NEDA-approved Constructors Performance Evaluation System (CPES).
    • This evaluation applies to all infrastructure projects regardless of the funding source and occurs during construction and upon completion.
    • Procuring entities must budget for CPES implementation and establish CPES Implementing Units (IUs) for oversight.
    • Results of evaluations are submitted monthly to the CIAP and used for various purposes, including contractor pre-qualification, contract awarding, and project monitoring.

    Accreditation of Testing Laboratories

    • Accreditation for testing laboratories is mandated to ensure quality in infrastructure projects.
    • Results from only DOST/BRS accredited laboratories are acceptable for government infrastructure projects.

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