IM-1-CONTRACT-AND-SPECIFICATIONS-1.pdf

Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya...

Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 COLLEGE OF ENGINEERING Bayombong Campus DEGREE BSCE COURSE NO. CMPM PROGRAM SPECIALIZATION COURSE CONSTRUCTION METHOD PROJECT TITLE MANAGEMENT YEAR LEVEL 4 TIME FRAME 6HRS WK 2 IM 2 NO. NO. I. UNIT TITLE/CHAPTER TITLE A. Vision, Mission, Goal B. Introduction II. LESSON TITLE A. Contracts and Specifications III. LESSON OVERVIEW In this chapter we discuss about the Contracts and Specifications IV. DESIRED LEARNING OUTCOMES 1. Understand the components of the Terms of Reference (TOR) for professional services and bidding/tendering processes, award and acceptance. V. LESSON CONTENT Virtually all civil engineering structures are unique. They must be designed for some specific purpose at some specific location before they can be constructed and put to use. Consequently, the completion of any civil engineering project involves five stages of activity which comprise the following: 1. Defining the location and nature of the proposed works and the quality and magnitude of the service they are to provide. 2. Obtaining any powers and permissions necessary to construct the works. 3. Designing the works and estimating their probable cost. 4. Constructing the works. 5. Testing the works as constructed and putting them into operation. There are inherent risks arising in this process because the design, and therefore the estimated cost of the works, is based on assumptions that may later have to be altered. The cost can be affected by the weather during construction and the nature of the ground or groundwater conditions encountered. Also the promoter may need to alter the works design to include the latest technical developments, or meet the latest changes in his requirements, so that he does not get works that are already out-of-date when completed. All these risks and unforeseen requirements that may have to be met can involve additional expenditure; so, the problem that arises is – who is to shoulder such additional costs? Clearly if the promoter of the project undertakes the design and construction of the works himself (or uses his own staff) he must meet any extra cost arising and all the risks involved. But if, as in most cases, the promoter engages a civil engineering contractor to construct the works, the contract must set out which party to the contract is to bear the cost of which type of extra work required. The risks involved must also be identified and allocated to one or the other party. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 1 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 CONTRACTS AND SPECIFICATION CONTRACTS When two or more people have a common intention communicated to each other to create some obligation between them, there is said to be an agreement. An agreement which is enforceable by law is a “Contract”. An agreement between the owner and the contractor as to how much the owner will pay to have that contractor build the project. Agreement of at least two parties with purpose of creating legal obligation between the parties and capable of being enforced by the court of law. CONTRACT = OFFER + ACCEPTANCE + Consideration Those agreements are enforceable by law which are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void. This is subject to any special law according to which contract should be in writing and attested by witnesses. The following are the essential ingredients of a contract: a. Offer made by one person called the “Promisor”. b. Acceptance of offer made by the other person called the “Promisee”. c. Doing of an act or abstinence from doing a particular act by promisor for promise a called consideration. d. The offer and acceptance would relate to something which is not prohibited by law. e. Offer and acceptance constitute an agreement, which, when enforceable by law, becomes a contract. f. To make a valid and binding agreement, the party entering into such an agreement should be competent to make such an agreement. Why Use contract in construction: Describe scope of work Establish time frame Establish cost and payment provision Set fourth obligations and relationship Minimize disputes Improve economic return of investment Content of the contract Identify the parties Promises and responsibilities Scope of work Price and payment terms Commercial terms and conditions Project execution plan. Types of Contracts Contracts for the execution of civil engineering works are of following types: A. Lumpsum contract B. Item rate contract “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 2 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 C. Lumpsum and schedule contract D. Cost plus fixed fee contract E. Cost plus percentage of cost contract F. Special contracts A. Lumpsum Contract In this type of contract, the contractor offers to do the whole work as shown in drawings and described by specifications, for a total stipulated sum of money. There are no individual rates quoted, thus it becomes difficult to make adjustments in the contract value if any changes are to be made in the work later on. The schedule of 3 different items of work is not provided and the contractor has to complete the work as per drawings and specifications for the agreed lump sum amount. Deposit of 10 % security money and other conditions of the contract are included in the contract agreement. Upon the completion of work, a fixed lumpsum amount is paid to the contractor. Detailed measurements of different items are required but the whole work is compared and checked with drawings and specifications before releasing the payment. In large projects, part payments are made to the contractor at different stages of work on money agreed terms. In case the contractor stops the work in between he is not entitled for any further payment. Suitability A lumpsum contract is more suitable for works for which contractors have prior construction experience. This experience enables the contractors to submit a more realistic bid. This type of contract is not suitable for difficult foundations, excavations of uncertain character, and projects susceptible to unpredictable hazards and variations. Merits i. The owner can decide whether to start or shelve the project knowing the total lumpsum price quoted by different contractors. ii. The contractor can earn more profit by in-depth planning and effective management site. Demerits i. Before the contract is awarded, the project has to be studied thoroughly and the complete contract documents has to be prepared in advance. ii. In this type of contract, unforeseen details of work are not specified in the contract document. Many additional items 4 may have to be undertaken as the work progresses, giving opportunity to the contractor for claiming higher rates of the extra items not included in the contract agreement. B. Item Rate Contract Also called a schedule contract, in this contract, the contractor undertakes the execution of work on an item rate basis. The amount to be received by the contractor, depends upon the quantities of various items of work actually executed. The payment to the contractor is made on the basis of detailed measurements of different items of work actually done by him. Suitability The item rate contract is most commonly used for all types of engineering works financed by public or government bodies. This type of contract is suitable for works which can be split into various items and quantities under each item can be estimated with accuracy. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 3 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 Merits i. In this type of contract, there is no need for detailed drawings at the time of allotting contract as in the case of lumpsum contract. The detailed drawings can be prepared after the contract is awarded. ii. Changes in drawings and quantities of individual items can be made as per requirement within agreed limits. iii. The payment to the contractor is made on the actual work done by his at the agreed rates. Demerits i. The total cost of work can only be known upon completion. As such, the owner may incur financial difficulty if the final cost increases substantially. ii. Additional staff is required to take detailed measurements of work done for releasing payments to the contractor. iii. The Scope for additional saving with the use of interior quality materials may prompt the contractor to use such materials in the work. C. Lumpsum and Scheduled Contract This is similar to the lumpsum contract except the schedule of rates is also included in the contract agreement. In this type of contract, the contractor offers to do a particular work at a fixed sum within a specified time as per plans and detailed specifications. The schedule of rates for various items is provided which regulates the extra amount to be paid or deducted for any additions or deletions made during the progress of work. Measurements of different items of original work are not required but extra items are required to be measured for payment. The original work shall however be checked and compared with the drawings and specifications. Suitability This type of contract is more suitable for construction works for which contractors have prior work experience and can consequently estimate the project cost more realistically. Merits i. In this type of contract, additional staff for recording detailed measurements of original item of work is not required for making payment to the contractor. ii. The owner can know from tenders as to what the project will cost him. Knowing the financial implications, the owner can decide to start or defer the project. Demerits i. Before the contract is awarded the project has to be studied thoroughly and all the contract documents are required to be completed in every respect. 6 ii. ii. The non-scheduled extra items arising out of changes made in the drawings and specifications are often a source of dispute because the contractor presses for rates higher than the prevailing market rates. D. Cost Plus Fixed Fee Contract Cost Plus fixed fee contract is desirable when the scope and nature of the work can atleast be broadly defined. The amount of fee is determined as a plump sum from a consideration of the scope of work, its approximate cost, nature of work, estimated time of construction, manpower and equipment requirements etc. In order to negotiate such a type of contract, it is essential that the scope and some general details of the work are defined. The contractor in this type of contract is selected on the basis of merit rather than the fee alone. In case of cost plus percentage contract, the contractor has a tendency to increase his profit by increasing the cost of work. But this drawback is overcome in cost plus fixed fee “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 4 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 contract because here the contractor’s fee is fixed and does not fluctuate with actual cost of work. Once this fee is fixed, the contractor cannot increase the cost of work. Suitability i) This type of contract is suitable for works required to be completed expeditiously and where it is difficult to foretell what difficulties are likely to be encountered. ii) ii) This contract is also suitable for important structures where the cost of construction is immaterial. Merits i) In this type of contract, actual cost is to be borne by the owner. Therefore, the contractor performs the work in the best interest of the owner resulting in good quality work. ii) The work can be taken in hand even before the detailed drawings and specifications are finalized. iii) Changes in design and method of construction if needed can be easily carried out without disputes. iv) The work can be executed speedily. Demerits i) This form of contract cannot be adopted normally in case of public bodies and Government departments. ii) The final cost of the work is not known in advance and this may subject the owner to financial difficulties. E. Cost Plus Percentage of Cost Contract In this type of contract, instead of awarding the work on lumpsum or item rate basis, it is given on certain percentage over the actual cost of construction. The actual cost of construction is reported by the contractor and is paid to him by the owner together with a certain percentage as agreed earlier. The contractor agrees to do the work in accordance with the drawings, specifications and other conditions of contract. In this type of contract, proper control has to be exercised by the owner in the purchase of materials and in arranging labour. The suitability merits and demerits of this type of contract are similar to cost plus fixed fee contracts. An additional demerit is the tendency of the contractor to increase the cost of work to earn profit by way of percentage of enhanced actual cost. F. Special Contracts There are certain contracts which are used at different occasions. Some of these contracts are listed below: a. Turn-key Contract b. Package Contract c. Negotiated Contract d. Continuing Contract e. Running Contract a. Turn-key Contract A turn-key contract is an integrated contract in which all works pertaining to various disciplines such as civil, electrical, mechanical etc. are in the hands of a single contractor called the main contractor. The main contractor can sublet the contact to subcontractors who are specialists in their respective fields. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 5 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 In this contract, the main advantage to the owner is that he need not coordinate the work of different contractors. The main contractor is responsible for all kinds of jobs starting from planning to commissioning stage. The owner takes over the entire work (which is fully operational and of proven performance) from the main contractor. b. Package Contract In a package contract, two or more related jobs, each of which could form a separate contract are combined in a single contract. In the field of civil engineering, generally, design and development are combined with construction and supply or maintenance. In this type of contract, plan of work and standards are established and the work is carried out accordingly by the contractor. The main contractor is responsible for safeguarding the owner’s interest and for this reason, prior approval of design and technical aspects have to be taken from the owner. Responsibility for correctness of the design lines with the main contractor. c. Negotiated Contract In this type of contract, negotiation across the table takes place between representatives of the owner and the main contractor for project cost and other conditions of contract. In this type of contract, detailed projects specifications are arrived at by discussions between the owner and the main contractor and consultant. A negotiated contract involves extended discussions for finalization as a competitive contract. Most of the consultancy projects of World Bank are negotiated contracts. Advertised and Negotiated Contract The owner places notices in newspaper, magazines and Philgeps asking contractor to send in their bids (the amount for which each could do the job). Public Contracts – are usually advertised because it is thought fair to give every qualified contractor the chance to bid, since they are also taxpayer. Private Contracts – are sometimes advertised because the competition created by advertising usually results in the lowest cost for the project. Negotiated Contracts – are any contracts in which the owner and the contractor talks together to reach an agreement on the terms of the contract. Benefits of a Negotiated Contract 1. It limits the bidder to those who are only qualified for the project. 2. It save time and to begin the work before plan and specification were completed d. Continuing Contract In this type of contract, new or additional work is awarded to the contractor on the basis of agreed terms and conditions of an existing contract. Such contracts do not require retendering and hence can save time and money. e. Running Contract Such contracts provide goods and services at specified intervals or as and when required by the owner. The contract price is not fixed and payment is based on goods supplied and services rendered as specified in the contract documents. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 6 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 CONTRACTING Let us now assume that the plans and specification are completed. The procedure outlined below is typical of a fair and honest way to select a construction contractor. Advertising Receiving Bids Opening Bids Awarding Contract Bonding Agreement Notice to Proceed Advertising The first step in selecting a construction contractor is notify all bidders and this is done by an invitation to bid, a short notice which states: 1. The type of work 2. The location 3. The time and place of bid opening 4. Where and how plans and specifications are to be made available The invitation to bid is mailed by the owner to contractors who might be interested. Sometimes the invitation to bid is actually advertised in newpapers, magazines or in Philgeps Website. Qualification of Contractors Contractor Ability usually checked by the owner or his architect-engineer Experience Financial resources Integrity Personnel Equipment Prequalification – Contractor ability is determined before bidding and only those contractors who are considered capable of doing the job are invited or permitted to bid. Post qualification – The qualifications of the low bidder are determined after the bids are opened but before the contract is awarded to the contractor. Bidding Documents Construction Documents are defined as the written and graphic documents prepared or assembled by the A/E for communicating the design of the project and administering the contract for its construction. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 7 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 2 MAJOR GROUPS 1. Bidding Requirements Used to attract bidders & explains bidding process 2. Contract Documents Legally enforceable requirements that become part of the contract Include all construction documents except bidding forms CONTRACT DOCUMENTS The contract document consists of the contract agreement (on non-judicial stamp paper of prescribed value) and the following set of documents, each page of which is signed both by the owner and the contractor. a) Cover Title Page: It contains the name of work, name of owner, name of contract, contract agreement number, contents etc. b) Contents Page: It contains the contents of the agreement with page references. c) Notice Inviting Tender (NIT): It contains a brief description of work, estimated cost of work, date and time of receiving the tender, amount of earnest money, security money, time of completion etc., d) Tender Form: It comprises bill of quantities, contractor’s rates, total cost of work, time for completion, security money to be deposited and penalty clauses etc. e) Schedule of Issue of Materials: It contains the list of materials to be issued by the department or owner to the contractor with rates and place of issue. f) Drawings: These comprise a complete set of fully dimensioned drawings including plans, elevations, and sections detailed drawings and site plan. g) Specifications: It is not practicable to include detailed information of each item of work in the limited space of description in the bill of quantities. As such detailed specifications form a part of the contract agreement. Specifications should be clear and precise covering all items of the bill of quantities. Following specifications are normally included in the contract document. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 8 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 i. General Specifications: These specify the class and type of work quality of materials etc, in general for the work as a whole. ii. Detailed Specification: These give detailed description of each item of work including material and method to be used along with quality of workmanship required. h) Conditions of Contract: The terms and conditions of contract specify the following. i. Rates of each item of work inclusive of materials, labor, transport, plant/equipment and other arrangements required for completion work. ii. Manner of payment of contractor including running payment final payment, refund of security money etc. iii. Time of completion of work. iv. Proportionate progress to be achieved. v. Penalty for poor quality and unsatisfactory work, lack of proportionate progress and for delay in completion. vi. Extension of time for completion of work. vii. Engaging other agency at contractor’s cost and risk. viii. Termination of contract. ix. Subletting of the work. x. Changes in design/drawings etc. and valuation of variations. xi. Arbitration for settlement of disputes. In addition to the above, performance Important Conditions of Contracts Connected with Contractual Problems The members of the construction team should be fully aware of their rights and obligations under the contract. They should be thoroughly conversant with the precise provisions and true importance of each clause in the contract agreement. Following is in important conditions of contract: a. Time of completion. b. Delay and extension of time. c. Penalty d. Compensation for delay in completion of work. e. Liquidated damages. f. Debitable agency g. Valuation of variations h. Settlement of disputes i. Force of nature and natural disasters j. Price escalation k. Termination of contract a. Time of Completion. The Contractor is required to complete the work within the agreed time of completion which is specified in a suitable unit of time (year, month, week etc) depending upon the nature and scope of the work. The contractor is also required to maintain a proportionate progress of work. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 9 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 b. Delay and Extension Time Delay in completion of work not attributed to the contractor should be brought to the notice of the owner by the contractor in writing, within the time specified in the contract, for seeking extension of time. The owner will satisfy himself that the delay is not on account of a lapse on the part of the contractor before granting suitable extension of time. c. Penalty It is a fine imposed on the contractor for nonfulfillment of his contractual obligations such as failure to maintain required progress of work, delay in completion, poor quality or work, bad workmanship etc. d. Compensation for delay in completion of work The contractor is liable to pay compensation to the owner for delay attributed to him in completion of work. The amount of 28 compensations may be stated as a percentage of the estimated cost of work for each unit of time delay. The maximum limit of compensation may be 10% of the contract price. e. Liquidated Damages. It is a fixed stipulated sum payable by the contractor on account of penalty for delays and does not bear any relationship to the real damage to the owner. It is generally high and fixed per day for excess period over the specified in the contract for completing the work. f. Debitable Agency Whenever the contractor fails to fulfil his contractual obligation in respect of progress or quality of work even after giving due notice by the owner, it becomes necessary to appoint a debitable agency which works at the cost and risk of the contractor. This agency is in the form of labour or other contractor to fulfill the contractual obligations of the main contractor. The expenses incurred are charged from the bill or security of the original contractor. g. Valuation of Variations The valuation of variations is based on change orders issued in writing by the owner. Generally, the variation in individual items of work should not be more than 25% and variation in total cost should not exceed 10%. h. Settlement of Disputes Efforts should be made to resolve disputes amicably between the owner and the contractor through mutual discussions and negotiations. Arbitration clause may be incorporated in the contract to settle disputes not resolved through mutual discussions and negotiations. i. Forces of Nature and Natural Disasters Natural disasters are acts of nature, such as unprecedented floods / rainfall, earthquake, hurricanes, typhoons, fire etc. These disasters along with occurrence of riots, civil commotion, revolt etc. are beyond the control of the contractor and may lead to financial and time loss. The contractor should obtain an insurance policy for such risks as can be covered by insurance. In the event of financial or time loss, the contractor can claim financial compensation from the owner for risks which are not insurable and an extension of time for all such risks. j. Price Escalation During execution of the work, labor wages and material prices may increase as a result of inflation. The contract conditions should therefore, include on appropriate clause for payment of escalation to the contractor k. Termination of Contract The owner can terminate the contract in the event of default or bankruptcy of the contractor and may impose penalty as per the contract agreement. Default on the part of the contractor includes abandoning the work, failure to maintain required progress, nonobservance of rues / “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 10 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 instructions etc. for which the owner may rescind the contract and impose penalty up to 10% of the estimated cost of work. Due notice must be served on the contractor before termination of the contract. II. SPECIFICATIONS Specifications are statements which describe the nature and class of work, materials to be used, labour to be employed, method of work, precautions to be taken, quality of workmanship etc. The cost of the work depends much upon the specifications. The nature of work can be easily understood from the study of specifications. The drawings of a building or structure show the arrangement of rooms and dimensions (length, breadth and height) and include a brief description of the different parts. Drawings do not furnish the details of different items of work, the quantity of materials, workmanship etc., which are all description in the specifications. Specifications serve the following purposes: i. Guide the bidder at the time of tendering for arriving at a fair price for the work involved. ii. Provide guidance for execution and supervision of work and purchase of materials. iii. State the acceptance criteria for different items of work. Types of Specifications A. Contract Specifications B. Guide Specifications C. Standard Specifications A. Contract Specification The specifications prepared for a particular job to accompany the working drawings are contract specifications. These are further clauses at: ▪ General Specifications ▪ Detailed Specification General Specifications are also called brief specifications. These give a general idea of the class and type of work giving brief descriptions of materials, quality and workmanship. Detailed specifications provide a detailed description of each item as per schedule of quantities, specifying the materials to be used including their proportions, method of work quality of workmanship required etc. The specifications are written, as far as possible, in the same sequence or order in which the work is carried out. B. Guide Specifications These specifications provide a guideline for preparing contract specifications and give a broad idea about class and type of construction for a particular purpose. C. Standard Specifications These specifications are prepared for various materials or group of materials for the guidance of all concerned with construction or construction industry. These specifications include methods of manufacture methods of tests, code of practice etc., D. Manufacturer’s Specifications Manufacturers prepare specifications of their products for the guidance of users. These specifications also include installation instructions and other guidelines for use and maintenance of products. These specifications are generally provided in the form of manuals. Clear understanding of specifications plays a vital role in the successful completion of a construction project. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 11 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 WRITING SPECIFICATIONS Specification – are written instructions conditions and descriptions which tell the builder about a project to be constructed. Specifications also protect the interests of everyone involved: the architect, the builder, and the owner. Three general categories of specification 1. Legal documents section – consist of advertisement for bids, invitation and instruction to bidders, owner-contractor agreements and bond forms. 2. Condition Section – states the rights and responsibilities of the designer, the owner, the contractor and any subcontractors. 3. Technical description section – lists the materials and methods to be used for building the structure. Division of Technical Description Section 1. Architectural Section 2. Civil Section 3. Structural Section 4. Plumbing Section 5. Electrical Section 6. Mechanical Section Each section is organized to include: 1. The scope of work to be done 2. The complete description of materials to be used 3. General requirements or the usual work standards and practices 4. Special requirements of unusual work standards or practices 9 Major factors to consider in the selection of Materials and Equipment 1. Economy – the cost and appropriateness of the item 2. Quality – what grade of excellence of the material, fixture, or appliance is wanted? 3. Functionality–will it serve the purpose for which it is intended? 4. Ease of Installation – Is the item easy or hard to install. Will it require special tools for installation? 5. Appearance – Is it pleasing to the eye? 6. Codes – Is it with complying with the building codes? 7. Service Requirement – Can the equipment be repaired easily and quickly? 8. Warranty – Does the equipment carry a guarantee? 9. Size – It must fit a pre-planned space in a structure BIDDING PROCEDURE How to Avail of the Service: Duratio n of Division / STE Customer / Service Provider (Offices / Activity Person In- Fees Form / Document P Client Units of BLGF) (Under Charge Normal Circums ) “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 12 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 The bidding documents shall include the following: Approved Budget for the Contract Instructions to Bidders Prepare Bidding Documents Terms of Provides a concise Reference specification or description of Eligible the item and the quantity Requirements Note: Plans and Technical 1. Bidding documents As Specifications shall be available to specified Form of Bid, Price 1 prospective bidders in 1 week BAC (Amount Form, and List of a given time specified Secretariat may Goods or Bill of by the purchaser vary) Quantities correlated to their Delivery Time or bidding schedule Completion 2. Biding documents Schedule shall be issued by the Form and Amount BAC Secretariat or of Bid Security the Property Officer Form and Amount of Performance Security and Warranty Form of Contract and General and Special Conditions of Contract Invitation to Bid o Pre- Procurement Conference 3 hrs Bids and o Advertising of Awards 2 the Invitation Committee to Bid 2 BAC weeks Secretariat – Newspaper – G-EPS Posting – Bureau’s Website Submits BID Documents 10 BID Documents and 3 and relative Bidder/s minutes relative requirements requirement s to the Bureau’s “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 13 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 Records Unit Records Incoming 10 Records 4 None Logbook Documents minutes Officer Routes Documents to BAC 20 Records 5 None Logbook Secretariat minutes Officer Receives the BID 5minut BAC Logbook / BID 6 Documents and affix initials / None es Secretariat Documents signature in the logbook Pre-bid Conference Note: 3. A pre-bid conference shall be held on any given time as specified by the purchaser to discuss, among other things, technical and financial components of the bid and eligibility Bids and 7 requirements 4 hrs Awards Bid Documents Committee 4. Any statement made at the pre-bid conference shall modify the bidding documents, unless such statement is specifically identified in writing as an amendment thereto and issue a supplemental or bid bulletin Receipt and Opening of Bids The BAC shall open the bids in front of the Bids and bidder or any of their Awards duly authorized Committee, 8 representatives 4 hrs Bid Documents Technical All members of the Working Group BAC who are present and Bidders during the opening shall initial every page of the original copies of all eligible “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 14 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 document received and opened Bid Evaluation Preliminary Examination of Bids Evaluation of bidder’s 3 hrs eligibility, examination of documents and bid prices and Bids and Clarification of bids Awards Committee,Tec Abstract of Bids, Bid 9 Preparation of hnical Working Evaluation Report Abstract of Bids Group and BAC Determining the Secretariat lowest calculated responsive bid and 3 days ranking of the total bid prices as calculated from lowest to highest and Bid Evaluation Report Award Technical Preparation of 1 week Working Group Resolution to Award and BAC and Notice to Award SecretariatHea d of Agency Resolution of BAC to Approval of Award, Notice of 10 Resolution to Award Bids and AwardPerformance and Notice to Award Awards 1 day Security Issuance of Notice to Committee Award Bidder 1day Posting of Performance Security Implementation of Contract Bids and Awards Notice to Proceed, 11 Contract Signing 1 day Committee and Contract Notice to Proceed Winning Bidder Delivery, Inspection and Acceptance o Delivery of Winning As goods / Bidder Goods Inspection and specified 12 services per in the Commission Acceptance Report contract contract on Audit For Goods 1 day Final Inspection and Acceptance END of TRANSACTION “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 15 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 REVISED IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT 9184 Section 1. Short Title and Purpose This Updated 2016 Revised Implementing Rules and Regulations, hereinafter called the IRR, is promulgated pursuant to Section 75 of Republic Act No. (R.A.) 9184, otherwise known as the “Government Procurement Reform Act,” for the purpose of prescribing the necessary rules and regulations for the modernization, standardization, and regulation of the procurement activities of the Government of the Philippines (GoP). Section 3. Governing Principles on Government Procurement The procurement of the GoP shall be governed by these principles: a) Transparency in the procurement process and in the implementation of procurement contracts through wide dissemination of bid opportunities and participation of pertinent non-government organizations. b) Competitiveness by extending equal opportunity to enable private contracting parties who are eligible and qualified to participate in competitive bidding. c) Streamlined procurement process that will uniformly apply to all government procurement. The procurement process shall be simple and made adaptable to advances in modern technology in order to ensure an effective and efficient method. d) System of accountability where both the public officials directly or indirectly involved in the procurement process as well as in the implementation of procurement contracts and the private parties that deal with GoP are, when warranted by circumstances, investigated and held liable for their actions relative thereto. e) Public monitoring of the procurement process and the implementation of awarded contracts with the end in view of guaranteeing that these contracts are awarded pursuant to the provisions of the Act and this IRR, and that all these contracts are performed strictly according to specifications. Section 5. Definition of Terms For purposes of this IRR, the following terms or words and phrases shall mean or be understood as follows: a) Act. Refers to R.A. 9184, entitled “An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for other Purposes,” otherwise known as the Government Procurement Reform Act. b) Approved Budget for the Contract (ABC). Refers to the budget for the contract duly approved by the HoPE, as provided for in the General Appropriations Act (GAA), continuing, and automatic appropriations, in the case of national government agencies (NGAs); the corporate budget for the contract approved by the governing board, pursuant to Executive Order (E.O). No. 518, s. 1979, in the case of GOCCs and GFIs, and R.A. 8292 in the case of SUCs; the budget approved by the Sanggunian through an appropriations ordinance in the case of LGUs. For multi-year contracts, for which a Multi-Year Obligational Authority (MYOA) or an equivalent document is required, the ABC shall be that incorporated in the project cost reflected in the MYOA or equivalent document. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 16 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 For Foreign-funded Procurement, the ABC refers to the cost estimate prepared by the Procuring Entity and approved by the foreign government/foreign or international financing institution as specified in the Treaty or International or Executive Agreement. c) Bid. Refers to a signed offer or proposal to undertake a contract submitted by a bidder in response to and in consonance with the requirements of the Bidding Documents. For purposes of, and throughout this IRR, the term “Bid” shall be equivalent to and be used interchangeably with “Proposal” and “Tender.” d) Bidder. Refers to a contractor, manufacturer, supplier, distributor and/or consultant who submits a bid in response to the requirements of the Bidding Documents. e) Bidding Documents. Refer to the documents issued by the Procuring Entity as the basis for bids, furnishing all information necessary for a prospective bidder to prepare a bid for the Goods, Infrastructure Projects and/or Consulting Services required by the Procuring Entity. f) Bids and Awards Committee (BAC). Refers to the Committee established in accordance with Rule V of this IRR. g) Common-Use Supplies and Equipment (CSE). Refer to those goods, materials and equipment that are used in the day-to-day operations of Procuring Entities in the performance of their functions. For the purpose of this IRR, CSE shall be those included in the Electronic Catalogue of the PhilGEPS. h) Competitive Bidding. Refers to a method of procurement which is open to participation by any interested party and which 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. For purposes of, and throughout this IRR, the terms “Competitive Bidding” and “Public Bidding” shall have the same meaning and shall be used interchangeably. i) Consulting Services. Refer to services for infrastructure projects and other types of projects or activities of the GoP requiring adequate external technical and professional expertise that are beyond the capability and/or capacity of the GoP to undertake such as, but not limited to: (i) advisory and review services; (ii) pre- investment or feasibility studies; (iii) design; (iv) construction supervision; management and related services; and (vi) other technical services or special studies. General principles on Consulting Services are provided for in Annex “B” of this IRR. j) Domestic Bidder. Refers to any person or entity offering unmanufactured articles, materials or supplies of the growth or production of the Philippines, or manufactured articles, materials, or supplies manufactured or to be manufactured in the Philippines substantially from articles, materials, or supplies of the growth, production, or manufacture, as the case may be, of the Philippines. k) Domestic Entity. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a partnership, corporation, cooperative, or association duly organized under the laws of the Philippines and of which at least seventy five percent (75%) of the interest or outstanding capital stock belongs to citizens of the Philippines, habitually established in business and habitually engaged in the manufacture or sale of the merchandise covered by his bid, and the business has been in existence for at least five (5) consecutive years prior to the advertisement and/or posting of the Invitation to Bid. l) Executive Agreements. Refer to International Agreements except that they do not require legislative ratification. “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 17 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 m) Expendable Supplies. Refer to articles which are normally consumed in use within one (1) year or converted in the process of manufacture or construction, or those having a life expectancy of more than one (1) year but which shall have decreased substantially in value after being put to use for only one (1) year (e.g., medicines, stationery, fuel, and spare parts). n) Foreign Bid. Refers to any offer of articles, materials or supplies not manufactured or not to be manufactured in the Philippines, substantially from articles, materials, or supplies of the growth, production, or manufacture, as the case may be, of the Philippines. o) Foreign-funded Procurement. Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the GoP which are wholly or partly funded by Foreign Loans or Grants pursuant to a Treaty or International or Executive Agreement. For purposes of, and throughout this IRR, the term “foreign- funded procurement” shall have the same meaning as and shall be used interchangeably with “foreign-funded projects” or “foreign-assisted projects.” p) Foreign Grants. Refer to grants with no repayment obligations and are provided in monetary form, goods, works, and consultancy services, among others. q) Foreign Loans. Refer to loans, credits, and indebtedness with private foreign banks or with foreign governments, agencies, or instrumentalities of such foreign governments, foreign financial institutions, or other international organizations with whom, or belonging to countries with which, the Philippines has diplomatic relations, as may be necessary and upon such terms and conditions as may be agreed upon, to enable the GoP to finance, either directly or through any government office, agency or instrumentality or any government-owned and controlled corporation, industrial, agricultural or other economic development purposes or projects authorized by law. r) Goods. Refer to all items, supplies, materials and general support services, except Consulting Services and infrastructure projects, which may be needed in the transaction of public businesses or in the pursuit of any government undertaking, project or activity, whether in the nature of equipment, furniture, stationery, materials for construction, or personal property of any kind, including non-personal or contractual services, such as, the repair and maintenance of equipment and furniture, as well as trucking, hauling, janitorial, security, and related or analogous services, as well as procurement of materials and supplies provided by the Procuring Entity for such services. The term “related” or “analogous services” shall include, but is not limited to, lease of office space, media advertisements, health maintenance services, and other services essential to the operation of the Procuring Entity. s) Government Procurement Policy Board (GPPB). Refers to the Body created in accordance with Rule XX of this IRR. t) Head of the Procuring Entity (HoPE). Refers to: (i) the head of the agency or body, or his duly authorized official, for NGAs and the constitutional commissions or offices, and other branches of government; (ii) the governing board or its duly authorized official, for GOCCs, GFIs and SUCs; or (iii) the local chief executive, for LGUs: Provided, however, That in an agency, department, or office where the procurement is decentralized, the head of each decentralized unit shall be considered as the HoPE, subject to the limitations and authority delegated by the head of the agency, department, or office. u) Infrastructure Projects. Include the construction, improvement, rehabilitation, demolition, repair, restoration or maintenance of roads and bridges, railways, airports, seaports, communication facilities, civil works components of information technology projects, irrigation, flood control and drainage, water supply, sanitation, sewerage and solid waste management systems, shore protection, energy/power and electrification facilities, national buildings, school buildings, hospital buildings, and other related construction projects of the government. For purposes of, and “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 18 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 throughout this IRR, the term “Infrastructure Projects” shall have the same meaning as, and shall be used interchangeably with, “civil works” or “works.” v) International Agreement. Refers to a contract or understanding, regardless of nomenclature, entered into between the GoP and another government or foreign or international financing institution in written form and governed by international law, whether embodied in a single instrument or in two (2) or more related instruments. w) Non-expendable Supplies. Refer to articles which are not consumed in use and ordinarily retain their original identity during the period of use, whose serviceable life is more than one (1) year and which add to the assets of the GoP (e.g., furniture, fixtures, transport and other equipment). For this IRR, the term non-expendable supplies shall include semi-expendable property. x) Philippine Government Electronic Procurement System (PhilGEPS). Refers to the electronic System as provided in Section 8 of this IRR. For purposes of, and throughout this IRR, the term “PhilGEPS” shall have the same meaning as, and shall be used interchangeably with, “G-EPS” referred to in the Act. y) Philippine National. Refers to an individual or a sole proprietor who is a citizen of the Philippines or a partnership, corporation, or association organized under the laws of the Philippines of which at least sixty percent (60%) of the capital or interest is owned by citizens of the Philippines, or cooperatives registered with the Cooperative Development Authority. z) Portal. Refers to a website that integrates a wide variety of contents for the purpose of attracting and aggregating multiple users together in a central virtual space. aa) Procurement. Refers to the acquisition of goods, consulting services, and the contracting for infrastructure projects by the Procuring Entity. In case of projects involving mixed procurements, the nature of the procurement, i.e., Goods, Infrastructure Projects or Consulting Services, shall be determined based on the primary purpose of the contract. Procurement shall also include the lease of goods and real estate. With respect to real property, its procurement shall be governed by the provisions of R.A. 10752 and other applicable laws, rules and regulations. bb) Procuring Entity. Refers to any branch, constitutional commission or office, agency, department, bureau, office, or instrumentality of the GoP (NGA), including GOCC, GFI, SUC and LGU procuring goods, infrastructure projects and consulting services. cc) Treaties. Refer to international agreements entered into by the GoP which require legislative ratification after executive concurrence. dd) Universal or Commercial Banks. Refer to universal or commercial banks duly authorized under R.A. 8791, otherwise known as “The General Banking Act of 2000.” RULE VI - PREPARATION OF BIDDING DOCUMENTS Section 17. Form and Contents of Bidding Documents 17.1 The Bidding Documents shall be prepared by the Procuring Entity following the standard forms and manuals prescribed by the GPPB. The Bidding Documents shall include the following: a) ABC; b) Invitation to Bid/Request for Expression of Interest; c) Eligibility Requirements; “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 19 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 d) Instructions to Bidders, including scope of bid, documents comprising the bid, criteria for eligibility, bid evaluation methodology/criteria in accordance with the Act, and post- qualification, as well as the date, time and place of the pre- bid conference (where applicable), submission of bids and opening of bids; e) Terms of Reference, for Consulting Services; f) Scope of work, where applicable; g) Plans/Drawings and Technical Specifications; h) Form of Bid, Price Form, and List of Goods or Bill of Quantities; i) Delivery Time or Completion Schedule; j) Form, Amount, and Validity Period of Bid Security; k) Form, Amount, and Validity of Performance Security and Warranty; and l) Form of Contract and General and Special Conditions of Contract. 17.2 The specifications and other terms in the Bidding Documents shall reflect the necessary specifications required to meet the needs of the Procuring Entity in clear and unambiguous terms. The renewal of contract for regular and recurring services, including the required performance evaluation of the service provider, must be stated by the procuring entity in the scope of work or technical specifications and special conditions of the contract of the bidding documents.1(n) In mixed procurements, the Procuring Entity shall specify in the Bidding Documents the requirements, criteria and other conditions of the bidding procedures and of the ensuing contract as applicable to each component of the project. In the preparation of Bidding Documents, the Procuring Entity shall ensure compliance with existing laws, rules and regulations, especially those concerning licenses and permits required for the project, in accordance with Section 34.2 of this IRR. 17.3 To provide prospective bidders ample time to examine the Bidding Documents and to prepare their respective bids, the concerned BAC shall make the Bidding Documents available from the time the Invitation to Bid / Request for Expression of Interest is first advertised/posted until the deadline for the submission and receipt of bids. 17.4 Bidders may be asked to pay a fee to recover the cost for the preparation and development of the Bidding Documents pursuant to the Guidelines on the Sale of Bidding Documents.2 The Procuring Entity shall post the complete Bidding Documents at its website and the PhilGEPS website from the time the Invitation to Bid/Request for Expression of Interest is advertised. Bidding Documents may be downloaded from any of the said websites: Provided, That upon submission of their bids, the bidders shall pay the applicable fee, if required. The Bidding Documents may also be secured from the BAC Secretariat upon payment of the corresponding fee, if required. 17.5 Bidding Documents Fee may be refunded in accordance with the aforementioned Guidelines based on the grounds provided for under Section 41 of the Act and this “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 20 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 IRR. 17.6 Detailed Engineering for the Procurement of Infrastructure Projects No bidding and award of contract for Infrastructure Projects shall be made unless the detailed engineering investigations, surveys and designs, for the project have been sufficiently carried out and duly approved in accordance with the standards and specifications prescribed by the HoPE concerned or his duly authorized representative, pursuant to the recommendation of the end-user or implementing unit and in accordance with the provisions of Annex “A”3 of this IRR. In case of projects with pending acquisition of right-of-way site or location, the procurement process may commence, but no award of contract shall be made until an authority or permit to enter is issued by the property owner; or a notarized deed of sale or deed of donation is executed in favor of the government; or a writ of possession is issued by a court of competent jurisdiction, as the case may be. RULE VII – INVITATION TO BID Section 20. Pre-procurement Conference 20.1 Prior to the advertisement or the issuance of the Invitation to Bid/Request for Expression of Interest for each procurement undertaken through a competitive bidding, the BAC, through its Secretariat, shall call for a pre-procurement conference. The pre-procurement conference shall be attended by the BAC, the Secretariat, the unit or officials, including consultants hired by the Procuring Entity, who prepared the Bidding Documents and the draft Invitation to Bid/Request for Expression of Interest for each procurement. During this conference, the participants, led by the BAC, shall: a) Confirm the description and scope of the contract, the ABC, and contract duration; b) Ensure that the procurement is in accordance with the PPMP and APP; c) Determine the readiness of the procurement at hand, including, among other aspects, the following: i) The availability of appropriations. In the case of EPA, the inclusion of the procurement project in the proposed funding source, i.e., the GAA, appropriations ordinance, corporate budget, or loan agreement, as the case may be. ii) completeness of the Bidding Documents and their adherence to relevant general procurement guidelines; iii) completion of the detailed engineering according to the prescribed standards in the case of Infrastructure Projects; and iv) confirmation of the availability of right-of-way site or location, and the possession of affected properties, subject to Section 17.6 of this IRR. d) Review, modify and agree on the criteria for eligibility screening, evaluation, and post- qualification; e) Review and adopt the procurement schedule, including deadlines and timeframes, for the different activities; and “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 21 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 f) Reiterate and emphasize the importance of confidentiality, in accordance with Section 19 of this IRR, and the applicable sanctions and penalties, as well as agree on measures to ensure compliance with the foregoing. 20.2 The holding of a pre-procurement conference may not be required for small procurements, i.e., procurement of Goods costing Two Million Pesos (₱2,000,000.00) and below, procurement of Infrastructure Projects costing Five Million Pesos (₱5,000,000.00) and below, and procurement of Consulting Services costing One Million Pesos (₱1,000,000.00) and below. Section 21. Advertising and Contents of the Invitation to Bid/Request for Expression of Interest 21.1 Contents of the Invitation to Bid/Request for Expression of Interest The Invitation to Bid/Request for Expression of Interest shall provide prospective bidders the following information, among others: a) For the procurement of: i) Goods, the name of the contract to be bid and a brief description of the goods to be procured; ii) Infrastructure Projects, the name and location of the contract to be bid, the project background and other relevant information regarding the proposed contract works, including a brief description of the type, size, major items, and other important or relevant features of the works; and iii) Consulting services, the name of the contract to be bid, a general description of the project and other important or relevant information; b) The name of the project, identification and number of lots or items specific to the bidding, as well as the basis of evaluation of the project, lots, or items, where applicable; c) A general statement on the criteria to be used by the Procuring Entity for the eligibility check, the short listing of prospective bidders, in the case of the procurement of Consulting Services, the examination and evaluation of bids, postqualification, and award; d) The date, time and place of the deadline for the submission and receipt of the eligibility requirements, the pre-bid conference if any, the submission and receipt of bids, and the opening of bids; e) ABC for the project, lot, or item to be bid; f) The source of funding; g) The place, time and website where the Bidding Documents may be secured or downloaded, and, where required, the price of the Bidding Documents, in accordance with Section 17.4 of this IRR; h) The contract duration or delivery schedule; i) The name, address, telephone number, facsimile number, e-mail and website addresses of the concerned Procuring Entity, as well as its designated contact person; j) Such other necessary information deemed relevant by the Procuring Entity; and “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 22 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 k) For electronic bid submission, the Invitation to Bid, including the Bidding Documents shall clearly state whether the PE shall allow the submission and receipt of bids through electronic means. 21.2 Advertising and Posting of the Invitation to Bid/Request for Expression of Interest 21.2.1 Except as otherwise provided in Section 54.2 of this IRR and for the procurement of common-use goods and supplies, the Invitation to Bid/Request for Expression of Interest shall be: a) Posted at any conspicuous place reserved for this purpose in the premises of the Procuring Entity concerned for seven (7) calendar days as certified by the head of the BAC Secretariat of the Procuring Entity concerned; and b) Posted continuously in the PhilGEPS website, the website of the Procuring Entity concerned, if available, and the website prescribed by the foreign government/foreign or international financing institution, if applicable, for seven (7) calendar days starting on date of advertisement. Procuring Entities that cannot post its opportunities in the PhilGEPS for justifiable reasons shall continue to publish its advertisements in a newspaper of general nationwide circulation. 21.2.2 If the Procuring Entity will allow electronic bid submission, the highest official managing the Information Technology system of the agency shall issue a Certification based on the prescribed form of the GPPB.4 The said Certification shall be submitted to the GPPB-TSO prior to posting of the Bidding Documents allowing for electronic submission and receipt of bids.5 Section 22. Pre-bid Conference 22.1 For contracts to be bid with an ABC of One Million Pesos (₱1,000,000.00) or more, the BAC shall convene at least one (1) pre-bid conference to clarify and/or explain any of the requirements, terms, conditions, and specifications stipulated in the Bidding Documents. For contracts to be bid with an ABC of less than One Million Pesos (₱1,000,000), pre-bid conferences may be conducted at the discretion of the BAC. Subject to the approval of the BAC, a pre-bid conference may also be conducted upon written request of any prospective bidder. 22.2 The pre-bid conference shall be held at least twelve (12) calendar days before the deadline for the submission and receipt of bids, but not earlier than seven (7) calendar days from the PhilGEPS posting of the Invitation to Bid or Bidding Documents and in the case of Consulting Services, from the determination of the shortlisted consultants. If the Procuring Entity determines that, by reason of the method, nature, or complexity of the contract to be bid or when international participation will be more advantageous to the GoP, a longer period for the preparation of bids is necessary, the pre-bid conference shall be held at least thirty (30) calendar days before the deadline for the submission and receipt of bids. 22.3 The pre-bid conference shall discuss, clarify and explain, among other things, the eligibility requirements and the technical and financial components of the contract to be bid including “In accordance with Section 185, Fair Use of Copyrighted Work of Republic Act 8293, the copyrighted works included in this material may be reproduced for educational purposes only and not for commercial distribution,” NVSU-FR-ICD-05-00 (081220) Page 23 of _39_  Republic of the Philippines NUEVA VIZCAYA STATE UNIVERSITY Bayombong, Nueva Vizcaya INSTRUCTIONAL MODULE IM No.:CMPM – 1S -2024-2025 questions and clarifications raised by the prospective bidders before and during the Pre-Bid Conference. Pre-bid conference may be conducted in person or face-to-face through videoconferencing, webcasting, or similar technology, or a combination thereof. Procuring Entities with videoconferencing capabilities that have manufacturers, suppliers, distributors, contractors and/or consultants that also have videoconferencing capabilities may conduct their pre-