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Questions and Answers
What is the primary purpose of amending an order in the context of contract implementation?
What is the primary purpose of amending an order in the context of contract implementation?
In the procurement process, how many calendar days are allotted for the BAC to notify the bidder of having the Highest Rated Bid?
In the procurement process, how many calendar days are allotted for the BAC to notify the bidder of having the Highest Rated Bid?
What is required if an order amendment impacts the cost of the original contract?
What is required if an order amendment impacts the cost of the original contract?
During which phase of the e-procurement process is the Notice to Proceed issued?
During which phase of the e-procurement process is the Notice to Proceed issued?
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What constitutes a necessary documentation step for the approval of contracts in the bidding process?
What constitutes a necessary documentation step for the approval of contracts in the bidding process?
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What is the maximum advance payment allowed for procurement of goods in a declared State of Calamity?
What is the maximum advance payment allowed for procurement of goods in a declared State of Calamity?
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What is required to obtain an advance payment of fifteen percent?
What is required to obtain an advance payment of fifteen percent?
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Which of the following is NOT specified as a part of the rules and guidelines for contract implementation?
Which of the following is NOT specified as a part of the rules and guidelines for contract implementation?
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Upon signing a contract, how long does a supplier have to present their claim for advance payment?
Upon signing a contract, how long does a supplier have to present their claim for advance payment?
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Which of the following conditions must be met for an irrevocable letter of credit to be accepted for advance payment?
Which of the following conditions must be met for an irrevocable letter of credit to be accepted for advance payment?
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Which aspect is NOT included in the list of contract implementation guidelines?
Which aspect is NOT included in the list of contract implementation guidelines?
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What document must accompany a claim for advance payment?
What document must accompany a claim for advance payment?
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What is the primary responsibility of the CPES Implementing Units within Procuring Entities?
What is the primary responsibility of the CPES Implementing Units within Procuring Entities?
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What is included in the manuals issued by the GPPB?
What is included in the manuals issued by the GPPB?
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How often are Procuring Entities required to submit performance evaluation results to CIAP?
How often are Procuring Entities required to submit performance evaluation results to CIAP?
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Which of the following is NOT a responsibility of the CPES Implementing Units?
Which of the following is NOT a responsibility of the CPES Implementing Units?
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What kind of databank must the CPES Implementing Units develop and maintain?
What kind of databank must the CPES Implementing Units develop and maintain?
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For which purpose is the consolidated CPES evaluation results primarily used?
For which purpose is the consolidated CPES evaluation results primarily used?
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Which of these is NOT a use for CPES evaluation results as delineated by CIAP?
Which of these is NOT a use for CPES evaluation results as delineated by CIAP?
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Who is responsible for accrediting Constructors Performance Evaluators?
Who is responsible for accrediting Constructors Performance Evaluators?
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Which of the following is NOT an intended outcome of utilizing CPES evaluation results?
Which of the following is NOT an intended outcome of utilizing CPES evaluation results?
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The cumulative value of positive Variation Orders can exceed twenty percent (20%) of the original contract price only in rare circumstances.
The cumulative value of positive Variation Orders can exceed twenty percent (20%) of the original contract price only in rare circumstances.
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A contractor must deliver a notice of extra cost claims within fourteen (14) calendar days after the work has commenced.
A contractor must deliver a notice of extra cost claims within fourteen (14) calendar days after the work has commenced.
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Sanctions are imposed only on the contractor if a Variation Order exceeds ten percent (10%) due to negligence.
Sanctions are imposed only on the contractor if a Variation Order exceeds ten percent (10%) due to negligence.
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The Head of the Procuring Entity must approve the Change Order or Extra Work Order without any conditions.
The Head of the Procuring Entity must approve the Change Order or Extra Work Order without any conditions.
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A notice that is not provided in the stipulated time will result in the contractor waiving their claim.
A notice that is not provided in the stipulated time will result in the contractor waiving their claim.
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The Project Engineer is responsible for preparing the proposed Change Order and its accompanying documents.
The Project Engineer is responsible for preparing the proposed Change Order and its accompanying documents.
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The cumulative value of positive Variation Orders is allowed to exceed ten percent (10%) of the original contract price without authorization.
The cumulative value of positive Variation Orders is allowed to exceed ten percent (10%) of the original contract price without authorization.
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The contractor has up to twenty eight (28) calendar days to notify the procuring entity of justifying circumstances for extra costs.
The contractor has up to twenty eight (28) calendar days to notify the procuring entity of justifying circumstances for extra costs.
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The written consent of bondsmen must be submitted separately from the contractor's request for extension of contract time.
The written consent of bondsmen must be submitted separately from the contractor's request for extension of contract time.
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Only accreditation from DOST laboratories is needed for testing materials in infrastructure projects.
Only accreditation from DOST laboratories is needed for testing materials in infrastructure projects.
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Procuring Entities have the discretion to evaluate contractor performance using their own guidelines without NEDA-INFRACOM's approval.
Procuring Entities have the discretion to evaluate contractor performance using their own guidelines without NEDA-INFRACOM's approval.
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CPES evaluations must occur only upon the completion of each government project.
CPES evaluations must occur only upon the completion of each government project.
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The budget for CPES implementation must be included in the Engineering and Administrative Overhead Cost of projects.
The budget for CPES implementation must be included in the Engineering and Administrative Overhead Cost of projects.
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All infrastructure project owners must accept results from any accredited testing laboratory.
All infrastructure project owners must accept results from any accredited testing laboratory.
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The performance evaluation system used for contractors is known as the National Equal Development Assessment (NEDA).
The performance evaluation system used for contractors is known as the National Equal Development Assessment (NEDA).
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Bids must be made known to all prospective bidders before the implementation of CPES guidelines.
Bids must be made known to all prospective bidders before the implementation of CPES guidelines.
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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.
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.
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The Procuring Entity must prove that it has incurred actual damages to be entitled to liquidated damages.
The Procuring Entity must prove that it has incurred actual damages to be entitled to liquidated damages.
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A project is deemed usable when it starts to provide the desired benefits as certified by the target users and the concerned contractor.
A project is deemed usable when it starts to provide the desired benefits as certified by the target users and the concerned contractor.
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If liquidated damages reach fifteen percent (15%) of the total contract price, the Procuring Entity has to terminate the contract immediately.
If liquidated damages reach fifteen percent (15%) of the total contract price, the Procuring Entity has to terminate the contract immediately.
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The maximum liquidated damages that can be charged is equal to twenty percent (20%) of the total contract price.
The maximum liquidated damages that can be charged is equal to twenty percent (20%) of the total contract price.
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The Procuring Entity can collect liquidated damages from the retention money or other securities posted by the contractor.
The Procuring Entity can collect liquidated damages from the retention money or other securities posted by the contractor.
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Once a contractor is found to be at fault, the Procuring Entity does not have the right to forfeit the contractor's performance security.
Once a contractor is found to be at fault, the Procuring Entity does not have the right to forfeit the contractor's performance security.
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Liquidated damages are calculated based on the total cost of the completed works.
Liquidated damages are calculated based on the total cost of the completed works.
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A Variation Order can exceed twenty percent (20%) of the original contract price without further bidding.
A Variation Order can exceed twenty percent (20%) of the original contract price without further bidding.
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An Extra Work Order may be issued for unforeseen subsurface conditions not indicated in the original contract.
An Extra Work Order may be issued for unforeseen subsurface conditions not indicated in the original contract.
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Change Orders can only be issued to increase the quantities of original work items in a contract.
Change Orders can only be issued to increase the quantities of original work items in a contract.
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Variation Orders can introduce completely new work items not previously contracted.
Variation Orders can introduce completely new work items not previously contracted.
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The introduction of new work under Variation Orders must align with the general scope of the awarded project.
The introduction of new work under Variation Orders must align with the general scope of the awarded project.
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A change order can be issued by anyone in the procuring entity with knowledge of the contract.
A change order can be issued by anyone in the procuring entity with knowledge of the contract.
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The cumulative limit for a positive Variation Order is calculated based on the total project budget.
The cumulative limit for a positive Variation Order is calculated based on the total project budget.
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Work items can be deleted from the original contract to facilitate a positive Variation Order.
Work items can be deleted from the original contract to facilitate a positive Variation Order.
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All Procuring Entities are required to establish CPES Implementing Units in their respective offices.
All Procuring Entities are required to establish CPES Implementing Units in their respective offices.
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CPEs are responsible for conducting the yearly evaluation of CPES Implementing Units.
CPEs are responsible for conducting the yearly evaluation of CPES Implementing Units.
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Evaluation results from CPES should be submitted to CIAP on a weekly basis.
Evaluation results from CPES should be submitted to CIAP on a weekly basis.
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CIAP is responsible for consolidating all CPES evaluation results received.
CIAP is responsible for consolidating all CPES evaluation results received.
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The CPES evaluation results are utilized solely for the pre-qualification of constructors.
The CPES evaluation results are utilized solely for the pre-qualification of constructors.
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Funding for CPEs accreditation training and seminars is a duty of the CPES Implementing Units.
Funding for CPEs accreditation training and seminars is a duty of the CPES Implementing Units.
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CPES Implementing Units are required to develop a databank for performance evaluation results.
CPES Implementing Units are required to develop a databank for performance evaluation results.
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Constructors Performance Evaluators must be accredited by the Construction Industry Association of the Philippines (CIAP).
Constructors Performance Evaluators must be accredited by the Construction Industry Association of the Philippines (CIAP).
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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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Description
This quiz covers the Annex 'D' of the 2016 Revised Implementing Rules and Regulations, focusing on the guidelines for the use of conference and seminar areas, exhibit areas, and leasing of office space. Participants will explore the provisions related to advance payment and procurement for contingencies. Test your knowledge on these regulations and their applications.
