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POLICIES AND PROCEDURES MANUAL

Function Area: OPERATIONS DEPARTMENT


Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5
I.

INTRODUCTION
The basic objective of this policies and procedures is to ensure that Bidding is properly
documented and that internal control system over bidding is adequate. These shall
supersede previously issued policies on bidding.

II.

DEFINITION OF TERMS
OWNER shall mean the PHILIPPINE ESTATES CORPORATION with the address at
27th floor, Wynsum Corporate Plaza, Emerald Avenue, Ortigas Center, Pasig City.
PROJECT DEVELOPMENT MANAGER shall mean the authorized representative of
the Owner for the overall administrative management of the project under the Operations
Division that is either contracted or in-house representative in line with his
specialization.
CONTRACTOR shall mean the person, company or firm whose bid has been accepted
by the owner and includes his personally authorized representative, successors or
permitted assignees. He is responsible to the owner thru the Project Development
Manager.

III.

POLICIES
1. The Bidding Committee is composed of the following (all shall be duly appointed by
the President/Chief Executive Officer):
a.
b.
c.
d.
e.

The Executive Vice-President (designated as Chairman of the Committee)


Representative from the Office of the President
Representative from the Logistics Department
Representative from the Operations Division
Representative from the Project Management Group

2. All projects and/or contract of services with a minimum amount of Php 500, 000.00
are subjected to bidding.
3. All projects must be approved by the Board of Directors and the President and must
be included in the approved budget.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5
4. All necessary requirements (i.e. civil/structural/architectural plans, scope of
works/technical specifications and other bid documents & requirements) must be
available/completed at the time of the bidding process. Invitation of Bid shall be
the official form to be used to notify the invited contractors indicating the place,
time, projects, instruction and other conditions. The Invitation to Bid, as signed by
the chairman of the Bidding Committee, shall be sent out to at least three (3)
contractors.
5. The criteria for invitations of contractors will be based on Project estimated amount
and PCAB rating of all accredited suppliers/contractors.
6. Invited contractors should communicate in writing to the Owner and/or the Project
Development Manager (before pre-bidding) on their intention of not to participate in
the bid. Should the contractors failed to do so, this will be considered as ground for
possible blacklisting of contractors.
7. All bidders must secure a Bid Bond equivalent to percentage (depends on the amount
of project) set by the owner payable in favor of the Owner/Company through a Bond
Insurance Company acceptable to the owner or in the form of Managers check
which shall be valid for a period of 60 days.
8. Attendance Sheet is the form to be filled-up by Contractors present, Bidding
Committee and all other parties during the pre-bidding conference.
9. A Pre-bidding conference shall be conducted by the Operations Division and Project
Development Group Representatives for further clarifications and instructors
regarding the projects in detail, scope of works, projected timeframe and other
necessary requirements.
10. Bid Form is the official form to be filled-up by the Invited Accredited Contractor
with the following information:

Name of Bidder
Type of Organization
Business Address
Signature of Bidder and/or authorized representative, printed name and
designation
Lump Sum Bid (in pesos)
Breakdown of Bids
Terms of Proposal
Terms of Completion

** Please see attached format

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5
11.

(In addition) The


winning bidder will be then requested to confirm his lump sum bid and give his best
and final offer for the said project.

12. All bids are subject for the evaluation by the Bidding Committee to determine the
winner. Losing bidder shall be notified in writing by the Committee.
13. The President and/or the Executive Committee have the right to declare the Bid
invalid under certain circumstances.
14. A Letter of Award/ Notice to Proceed is issued by the Bidding Committee.
Construction Agreement (contract) shall be reviewed by the Legal representative
prior to the approval by the President/CEO. A copy of the final, approved and
notarized contract shall be furnished to the Finance Division, Operations Division,
Corporate Internal Audit and the Office of the President.
15. The winning bidder must submit the following to the Bidding Committee. It is the
committees responsibility to demand these requirements from the winning bidder.
Proposal Form
Itemized Bid Breakdown
Cash flow by the Quarter and Payment Schedule
Bid Performance Security Form
PERT/CPM Schedule of Bar Chart of Account of proposed construction
Certification of Site Inspection Visit
Project Organization Chart with Comprehensive Resume of Key Personnel
Manpower/Equipment Utilization Schedule
Bid Documents like General Conditions, Specifications and Bid Bulletin, if
any
Such other documents the Bidder is required by the Owner to be submitted
together with the bid.
Detailed Construction Methodology
PRE-QUALIFICATION OF CONTRACTORS

1. An Invitation to Prequalify shall be issued by the Project Development Manager to


prospective contractors prior to the issuance of the Invitation to Bid.
2. All contractors must submit a duly accomplished Contractors Information Sheet
together with the Company Profile. The Company profile includes the following:
Securities and Exchange Commission Certificate of Registration (Corporation)
Articles of Incorporation

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

Department of Trade
and
Industry
Registration (Single
proprietorship)
Philippine Construction Accreditation Board Certificate (PCAB)

Local Government (Mayors) Permit


List of Previous Projects (finished and on-going)
List of Trade References
Audited Financial Statements for the last two (2) years
Any other documents as may be required by the owner

3. The Bidding Committee shall review all contractors information and makes its
recommendation to the President, who approves such, pre-qualification. The evaluation
shall be using the following criteria among others:

Quality of services rendered


Track record of the contractor. Standing of the contractor in the industry that they
belong to.
Amounts of Project Contracted
Standing of the Contractor in previous project
Premium or other additional services to be offered

4. The Logistics Department shall keep a master file of all Contractors Information Sheet
and updated services being offered. A monthly profile of all accredited contractors with
corresponding performance evaluation and project amount limit based on PCAB rating
shall be submitted to Operations Division and the President.
BLACKLISTING OF CONTRACTORS
1.

2.

The President of the company has the authority to revoke the accreditation and
blacklisting of the suppliers. Any problem and/or difficulties with the contractor shall
be communicated by the Project Development Manager to the President for proper
disposition.
The following are some of the case that could cause the blacklisting of a contractor.

Unreliability in terms of services rendered


20% delay in time schedule
Misrepresentation
An attempt to defraud the company
Bribery
Gross violation of company policies and procedures concerning contractors

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

Breach
of
any
contract provision
Such other cases that
Management deems
to warrant revoking of accreditation

These policies may not be changed or any provision herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other policies, rules,
regulations and procedures contrary to or inconsistent with the provisions of these policies
are hereby repealed effective upon approval hereof.
IV.

ATTACHEMENTS
1.
2.
3.
4.
5.
6.
7.
8.

The attachment is a sample of Invitation to Prequalify.


The attachment is a sample of Invitation to Bid.
The attachment is a sample of Contractors Information Sheet.
The attachment is a sample of the Attendance Sheet.
The attachment is a sample of the Bid Proposal Form (A) & (B).
The attachment is a sample of the Bid Confirmation.
The attachment is a sample of the Thank You Letter to Non-winning bidder.
The attachment is a sample of the Letter of Award/Notice to Proceed.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:

____________________________
MS. ELVIRA A. TING

_______________________________
MR. KENNETH T. GATCHALIAN

Date
Contractor
Address
Attention: Mr. Contact person
Position
Project:
Subject:

INVITATION TO PREQUALIFY

Gentlemen:
We would like to inform you that our company, Philippine Estates Corporation, a publicly listed
company at the Philippine Stock Exchange, is going to undertake the above project.
In view of this, we are inviting you to submit your company profile for prequalification purposes:
Company Profile shall include the following items:
1. Complete Name of Firm, year established, country and type of organization
2. Name of Affiliate firms, their year established, country and type of organization
3. Brief history/ description of the firm
4. Net worth for the past 5 years
5. Resume of key personnels and number of employees in your present organization
6. List of Equipments
7. Project handled (previous and ongoing) indicating address, telephone number, and contact
person.
The abovementioned requirements will be received at the office of Mr. Kenneth T. Gatchalian,
EVP-COO of Philippine Estates Corporation with address at 27 th Floor, Wynsum Corporate
Plaza, 22 Emerald Avenue, Ortigas Center, Pasig City, as soon as possible. However, we still
reserve the right to conduct an inspection and qualify or disqualify any of the contractors.
Qualifiers will be contacted thru its representative for the issuance of the Invitation to Bid.
Very Truly Yours,

___________________

Date
Contractor
Address
Attention:

Mr. Contact Person


Position

Project:
Subject:

INVITATION TO BID FOR PACKAGE NO.________


______(Project Name)_____________________________

Gentlemen:
You are hereby invited to participate in a bidding for the above subject project. Sealed documents in
triplicate and marked Private and Confidential Tender for the Construction of
__________________________ will be received at the office of Mr. KENNETH T.
GATCHALIAN, Chairman Bidding Committee, PHILIPPINE ESTATES CORPORATION, 27 th
Floor Wynsum Corporate Plaza, 22 Emerald Avenue, Ortigas Center, Pasig City.
Plans, specifications and other related documents should be available for issue on ___(Date)______
___ to____, 20__ at this office and upon payment of non-refundable cash deposit of
PESOS_________________________. (Php____________).
For further clarifications and instruction regarding the project, site inspection and Pre-bid
conference will be held on____________ at (time) at (venue) / (site?). Attendance is compulsory
among the bidders. Likewise, you may address your queries in written form to the Bidding
Committee, PHILIPPINE ESTATES CORPORATION, at Fax No. (02) 687-5546.
Kindly signify you intension to bid by signing on the space provided on the next page and send this
back to us not later than _______________________(date).
Submission of bids shall be on _________________ (date) not later than 3:00 P.M.

We reserve the right to reject any or all bids, waive any defects or informality therein, or to accept
such bid, which may be considered most advantageous.
PHILIPPINE ESTATES CORPORATION
KENNETH T. GATCHALIAN
Chairman, Bidding Committee
Invitation to Bid Received and Accepted By:
__________________________________
Signature over Printed Name
Date: _____________________________

PHILIPPINE ESTATES CORPORATION


27/F Wynsum Corporate, 22 Emerald Avenue,
Ortigas Center, Pasig City, Philippines 1605
CONTRACTS INFORMATION SHEET
Date
: ________________________________
Company Name: __________________________________________TIN: ___________
Office Address : _________________________________________________________
Plant Address : _________________________________________________________
Telephone
: _____________________________________Fax No. ______________
Type of Organization:
( ) Single

( ) Partnership

( ) Corporation

Line of Business
PCAB

:_______________________________
:_______________________________

Authorized Capital
Paid-Up Capital

: _______________________________
:_______________________________

V.
Name of Principal Stockholder/Owners
____________________________________
____________________________________
____________________________________
____________________________________

Address
_____________________________
_____________________________
_____________________________
_____________________________

Contact Person(s)
Name
____________________
____________________
____________________
____________________
____________________

Position
_____________________
_____________________
_____________________
_____________________
_____________________

Address
________________________
________________________
________________________
________________________
________________________

Trade Reference
____________________
____________________
____________________
____________________
____________________

Telephone
_____________________
_____________________
_____________________
_____________________
_____________________

Address
________________________
________________________
________________________
________________________
________________________

PHILIPPINE ESTATES CORPORATION


27/F Wynsum Corporate Tower, 22 Emerald Avenue,
Ortigas Center, Pasig City, Philippines 1605
ATTENDANCE SHEET

Representative From Philippine Estates Corp./ Bidding Committee


Department
____________________
____________________
____________________
____________________
____________________

Name
_______________________
_______________________
_______________________
_______________________
_______________________

Signature
________________________
________________________
________________________
________________________
________________________

Contractors Representative:
Company
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________
____________________

Name & Designation


_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________
_____________________

Signature
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________
________________________

BID PROPOSAL FORM


(To be submitted duplicate)

PROJECT
LOCATION
OWNER
To:

:____________________________________
:____________________________________
: PHILIPPINE ESTATES CORPORATION

Philippine Estates Corporation

The undersigned, having familiarized himself with the Bid documents, including Instruction to
Bidders, Proposals, and Specification, hereby promises to provide and furnish all the materials,
labor, necessary tools, expandable equipment, and all the utilities and transportation services
necessary to perform and complete in a workmanlike manner, the Construction Works of the abovementioned project in accordance with all the plans and specification as prepared by
_________________________, at the unit prices detailed in the attached Cost Breakdown Forms
with a grand total of:
Pesos: _________________________________________________________________
_________________________________________________________________.
(Php ______________ )
Accompanying this Proposal is a Bid Bond in the Amount of PESOS: _______________
_______________________________________________________________________.
( Php ____________ ) as required in the Instruction to Bidders.
I hereby certify that all statements herein are made on behalf of ____________________
_______________________________(Name of Company)______________________
a corporation organized and existing under the laws of the Republic of the Philippines; that I have
examined and carefully prepared this proposal from the plans and specifications and have checked
the same in detail before submitting this proposal; that I have full authority to make such statements
and submit this proposal on its behalf; and that said statements are true and correct.
SIGNATURE OVER PRINTED NAME
TITLE OR DESIGNATION
COMPANY NAME
CONTRACTORS LICENSE
ADDRESS & TELEPHONE NO.

:
:
:
:
:

________________________
________________________
________________________
________________________
________________________

________________________
________________________

PROJECT

___________________________________
___________________________________
___________________________________

SUBJECT
:
BID FORM
PROPOSAL FORM: ________________________________________________
_________________________________________________
_________________________________________________
(Name of Bidder)
(
(
(
Business Address:

) Individual
) Partnership
) Corporation
________________________________________________
________________________________________________
________________________________________________

Signature of Bidders and/or Authorized Representative:


Signature
Print Name
Designation

TO:

:
:
:

________________________________
________________________________
________________________________

PHILIPPINE ESTATES CORPORATION


27/F Wynsum Corporate Plaza, 22 Emerald Avenue
Ortigas Center, Pasig City

Complete labor and materials, tools and equipment, installed and ready for use as per plans and
specifications, and other related documents for the completion of ___________
_______________________________________________________.

Lump Sum Bid for the Amount in Pesos_______________________________________


_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________.

Date
Contractor
Address
Attention:

Mr. Contact Person


Position

Subject:

Construction of_____________________

Gentlemen:
We are pleased to inform you that your bid for the above subject is one of the bids we are presently
considering.
In view of this, we would like to request that you confirm your lump sum bid price, if possible for
you to give us your best and final offer for subject project on date not later than time. The said
proposal shall be sealed and addressed to the undersigned.
Thank you.

PHILIPPINE ESTATES CORPORATION

KENNETH T. GATCHALIAN
Chairman, Bidding Committee

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

POLICIES ON PUNCHLISTING and INSPECTION


The objective of these policies is to provide standard procedure for inspection and
punchlisting of the works once it is substantially complete, to ensure client satisfaction,
prior to turnover.

For in-house construction of housing units:


1. Punchlisting should be conducted by PHES representative/ Inspector together
with the client/buyer, prior to turnover or when the unit is substantially complete.
2. All punchlist items should be validated by the Inspector for immediate
rectification of the items, until the owner finds the works acceptable.
3. The Final Punchlist Report showing progress and completion of the rectification
works, will then be submitted to the Property Management Group, as an
attachment to the Deed of Turn-over and Acceptance of the client.

For House construction by a Contractor:


1. Upon completion of the unit, the contractor should request for inspection and
punchlisting of his works from the owners authorized representative on site.
2. Joint punchlisting should be then conducted by representative of the Contractor,
the owner (PHES) and the buyer, or his/her authorized representative.
3. Upon completion of rectification, a joint punchlisting will again be conducted
until the works becomes acceptable to the owner (PHES) as well as the client.
4. The owner will then issue a Certificate of Completion and Acceptance to the
Contractor, should the Inspector find the works acceptable. However, warranties
stated in the Construction Agreement will still prevail.

For site development works by Contractor


1. The contractor is obliged to issue a request for inspection and punchlisting on his
scope of work when the works is said to be substantial or at least 90%
accomplished.
2. Punchlisting works will be conducted by both the PHES and the contractors
representative, as follows:
Hydro-testing for Waterlines

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

Checking of
hairline cracks
and settlement
for concrete
roads
Road elevations
Cleaning, flushing and destination of drainage and sewer lines as well as
manholes
Elevation check on drainage and sewer manholes
All other works and test as the owner may require

For Other Structures, the following tests and inspection should be required:
1. Fence
Alignment of CHB Wall
Lot Boundaries
Elevations
2. Elevated Water Tank
Summary of necessary test results (i.e ultrasonic test and liquid penetrant
test for all welding joints from the Tower leg to the Elevated Tank)
Submit Structural steel, steel plate and reinforcing steel bars for testing
Structural Analysis and design computation
3. Gate and Guardhouse

Welding Joints

Durability and flexibility of hinges and joints


4. Clubhouse, Houses and other structures

Leak tests on waterlines and roofing

Pressure test on waterlines

Electrical lines and wirings

All rectification works should be done by the contractor at his own expense; until
works is completed and deemed acceptable by the owner.

Before final acceptance, all grounds occupied by the Contractor in connection with his work
shall be clean as directed, of all rubbish, excess materials, temporary structures
and equipment and all parts of work shall be left in a neat and presentable
manner.\

A Certificate of Completion and Acceptance shall be issued by the Owner (PHES) to


the contractor, only if the issues stated above have been complied. The Final

POLICIES AND PROCEDURES MANUAL


Punchlist
Report Function Area: OPERATIONS DEPARTMENT
: POLICIES ON BIDDING
showing progress Subject
(PHES-POL-OPER-006A
and completion of
Effectivity
:
27 Feb 1998
Page 1 of 5
the
rectification
works will then be submitted to the Property Management Group, as an
attachment to the Deed of Turn-over and Acceptable of the client.
ATTACHMENTS

1. Attached is a sample Punchlist Report Forms for In-house House construction


2. Attached is a sample Punchlist Report Forms for House Construction awarded to
contractors
3. Attached is a sample Punchlist Report Forms for Site Development Works by a
Contractor.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:


_______________________________
MS. ELVIRA A. TING

_______________________________
MR. KENNETH T. GATCHALIAN

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

I. POLICIES ON SUBMISSION OF WEEKLY REPORTS


This policy aims to provide standard format of the weekly reports to ensure proper and
uniform reporting from the site to the head office.
1. Weekly Coordination meeting should be held on site every Wednesday, between the Owner
(PHES) and the Contractors, as well as sub-contractors.
2. All weekly reports should be forwarded to the Head Office every Thursday of the week, and
should be signed by the PHES-Over-all Project Engr./Manager on site.
3. Weekly reports should include Minutes of the meeting, Accomplishment report in standard
form (showing previous, present and to-date accomplishments), and should be represented
with keyplans if necessary.
4. Project Pictures as proof of accomplishment, should also be submitted to the head office
every last Friday of the month.
5. The Over-all Project Engineer/Manager is also obliged to report any day to the Head Office
if the need arises or if immediate decision of top management is required.
6. The Attachment is a Sample Weekly Report and Minutes of the Meeting Format.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
TRANSITORY PROVISIONS
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
This policy may not be changed
Effectivity
:
27 Feb 1998
Page 1 of 5
or any provisions herein deleted or
added without the express written approval of the EXECUTIVE COMMITTEE. All other rules,
regulations and policies contrary to or inconsistent with the provisions of this Policy are hereby
deemed repealed effective upon approval.
EXECUTIVE COMMITTEE:

_____________________________
MS. ELVIRA A. TING

___________________________________
MR. KENNETH T. GATCHALIAN

I. POLICY ON INSPECTION OF CONSTRUCTION WORKS

For works done by a Contractor


1. The Owner or its duly authorized representative shall be allowed access to
all parts of the works at all times and shall be furnished such information
and assistance by the Contractor as maybe required to make a complete and
detailed inspection.
2. All contracted items shall be monitored and checked regularly by the
owners representative / Project Inspector, to comply with the set standards
and to ensure quality materials and workmanship and compliance with the
approved plans and specifications
3. The Inspector shall immediately notify the contractor in writing for any
violations from the approved plan, specifications, deed of restrictions and
rules in construction, which shall be subject to penalties if any.
4. Non-compliance of the specifications stated shall be grounds for immediate
work stoppage.

For works done in-house

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
1.
The
Subject
: POLICIES ON BIDDING
owners
(PHES-POL-OPER-006A
representative /
Effectivity
:
27 Feb 1998
Page 1 of 5
Construction
Inspector shall conduct a regular inspection to ensure compliance with the
approved plans and specifications.
2.
In case of discrepancy on the implementation of the plan, the Project
Inspector should advise HO in writing for clarification.

Clients Inspection
1. No client will be allowed to conduct ocular inspection of his unit without
the presence of the duly authorized PHES representative or Project Engr.
/Architect.
2. Schedule of inspections should be coordinated with PHES-representative or
Project Engr. / Architect.
3. Inspection schedule shall be as follows:

Monday to Friday 9:00 am to 12:00 pm


1:00 pm to 5:00 pm
Saturday
- 9:00 am to 12:00 pm

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:


_______________________________
MS. ELVIRA A. TING

________________________________
MR. KENNETH T. GATCHALIAN

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

I. INTRODUCTION
This policy aims to provide rules prior to the release of retention on all projects/ or contract
of services.
1. The full amount of retention shall be released by the Owner to the Contractor, upon
submission by the contractor of the following:
For site development works;
Summary of concrete and field density tests results by a PHES-accredited testing
laboratory.
Summary of pressure and leakage tests results for pipes (as witnessed and signed by a
duly authorized PHES representative on site.
Contractors sworn statement showing that all taxes due from the Contractor, and all
obligations on materials used and labor employed in connection with this contract have
been duly paid.

POLICIES AND PROCEDURES MANUAL


Guarantee bond equivalent to Function Area: OPERATIONS DEPARTMENT
: POLICIES ON BIDDING
Ten (10%) of the Contract Subject
(PHES-POL-OPER-006A
Price covering for a period of
Effectivity
:
27 Feb 1998
Page 1 of 5
one (1) year after final
acceptance of works to answer for faulty and/or defective materials or workmanship.
Three (3) original, signed and sealed and sealed sets of prints of As-built drawings.
Certificate of Completion and Acceptance to be issued by the Owner, subject to the
conditions on warranties stipulated in the Construction Agreement.
All other items as the contract may require

For House Construction


Summary of Punchlist report showing improvement or completion of rectification works
Contractors sworn statement showing that all taxes due from the Contractor, and all
obligations on materials used and labor employed in connection with this contract have
been duly paid.
Guarantee bond equivalent to Ten (10%) of the Contract Price covering for a period of
one (1) year after final acceptance of works to answer for faulty and/ or defective
materials or workmanship.
Three (3) original, signed and sealed sets of prints of As-built drawings.
Certificate of Completion and Acceptance to be issued by the Owner
All other items as the contract may require.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:

_______________________________
________________________________
MS. ELVIRA A. TING
MR. KENNETH
T. GATCHALIAN

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

POLICY ON CHANGE ORDERS


A.

As a general rule on Change Orders:


1. The Owner as represented by a duly authorized officer/manager may, order at any time
in writing additional work or alterations. All such works shall be evidenced by Change
Orders signed by the Owner and shall be executed under the conditions stated in the
Contract Documents.
2. All extra or additional work done or omitted by order of the Owner shall be valued at the
same rates and prices set out by both parties.
3. All Change Orders shall indicate the completion date of the works covered.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

4. No change Order shall be


valid and binding to the
Owner without the signature
of its duly authorized
representative.
5. Any value of Change Orders agreed upon shall be considered part of the contract but
shall be invoiced separately as change order.
6. Additive change orders for site development should not exceed 30% of the total contract
price.
7. The Attachment is a Sample Change Order Format.
B. For change Orders and deviations on the Construction of the Model Houses as requested by the
client/buyer:
1. The client, who wishes to make a revision from the original plan, should first seek the
approval of the PHES Project Engineer/ Architect.
2. Deviations on the model houses may be allowed provided that the works covered by the
change order does not create a major effect on the original design of the Model unit.
3. The Project Engr./ Architect should submit a floor plan showing the original lay out and the
additional works/ deviations to be done, together with budgetary estimates to complete said
revision. Specification as to finishes and other necessary details should also be included.
4. Said items shall be subject to evaluation and approval by PHES Operations at the Head
Office. Should the works be acceptable, the selling cost of the additional works shall be
computed and will be recommended for approval of the top management prior to
implementation.
5. Approval of any change orders should be initiated first, prior to start of construction of the
main structure.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5
THE EXECUTIVE COMMITTEE:
_______________________________
MS. ELVIRA A. TING

________________________________
MR. KENNETH T. GATCHALIAN

I. INTRODUCTION
This policy aims to provide standard procedure and proper documentation on the preparation
of Bill of Materials and Cost Estimates prior to the commencement of any proposed project, to
ensure that the cost is within the proposed financial plan or budget of the whole project.
II.

PROCEDURAL FLOW

1.

2.
3.
4.
5.
6.
7.
8.
9.

POLICIES AND PROCEDURES MANUAL


Prior to the commencement Function Area: OPERATIONS DEPARTMENT
: POLICIES ON BIDDING
of any project, the Project Subject
(PHES-POL-OPER-006A
Engr on site should submit
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:
27 Feb 1998
Page 1 of 5
Bill of Materials and Cost
Estimates for evaluation by the Operations Division at Head Office.
Total cost shall be added ten percent for contingencies to cover for unpredictable
increase of material cost.
All budgetary estimates of ongoing and long-term construction should be updated every
six (6) months, copy of which should be provided to the Finance Group and OTP.
Upon approval, said budgetary estimate will then be recommended for approval of the
EVP-COO as well as the Office of the President.
Operations group will then submit to the Office of the President and Finance
Department, a work Schedule/ Timetable to include weekly or monthly cost requirement
to complete said project.
A copy of the approved Bill of Materials shall be provided to the Warehouseman/
Logistics as his reference in releasing materials for a certain project.
Upon completion of the project, the Operations group on site should submit a summary
of expenses or actual cost to complete, to be forwarded to the Finance Department for
verification.
Actual cost of construction should not in any way exceed the Budgetary Estimate
submitted.
In cases where a Change Order is inevitable, approval of the same should be initiated
first prior to start of construction. Said change order should have a separate cost
estimates from the original project.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:


____________________________
MS. ELVIRA A. TING

___________________________________
MR. KENNETH T. GATCHALIAN

I. INTRODUCTION
The policy aims to provide standard guidelines and format in the evaluation of the
Contractors request for payment as well as work accomplishments for billing.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
II. PROCEDURAL FLOW
(PHES-POL-OPER-006A
Effectivity
:
27 Feb 1998
Page 1 of 5
1. Billing should be forwarded to
the office after evaluation and endorsement of the Project Manager/ Inspector.
2. The following documents should form part of the Billing Request, which will be submitted
to the Head Office in three (3) sets one (1) Original and two (2) photocopied sets
Certificate of Payment endorsed/ signed by the Project Inspector and the
Construction/ Project Manager
Contractors Letter request for Payment
Itemized Breakdown showing previous, present and actual accomplishment in
percentage and in terms of cost.
Project pictures
Key plans, Weather Chart, Bar Chart/ S-curve.
Test results
All other items as the owner may require
3. Payment shall be made by the Owner to the Contractor within thirty (30) working days after
receipt of the approved Construction Managers Certificate.
4. The progress payments shall be reduced by a portion of the downpayment made by the
OWNER corresponding to the value of work completed.
III. ATTACHMENT
The Attachment is a Sample of the Certificate of Payment.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
TRANSITORY PROVISIONS
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
This policy may not be changed
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:
27 Feb 1998
Page 1 of 5
or any provisions herein deleted or
added without the express written approval of the EXECUTIVE COMMITTEE. All other rules,
regulations and policies contrary to or inconsistent with the provisions of this Policy are hereby
deemed repealed effective upon approval.

THE EXECUTIVE COMMITTEE:

______________________________
MS. ELVIRA A. TING

Date
CONTRACTORS NAME
Address
Attention:

CONTRACTOR

________________________________
MR. KENNETH T. GATCHALIAN

Position
Subject :
Certificate
Payment No. _________________
Project :

of

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

________________________________________
Contract Package No. ______________________
Item of Work

Gentlemen:
This is to certify that in accordance with the terms of contract agreed upon by and between
(OWNER) Philippines Estates Corporation and (CONTRACTOR) ___________________, for the
construction of ________________________________, the value of work completed to-date which
will be due and payable by the OWNER to the CONTRACTOR, is the gross amount of
PESOS:______AMOUNT IN WORDS____and____00/100_ (Php _________________.xx).
Broken down as follows:
1.0
2.0
3.0
4.0

Original Contract Amount


Total amount of Contract to Date
Approved Percentage of Completion
Value of Work Completed to-date

:
:
:
:

Php______________________
_______________________
_______________________
_______________________

We trust you find the above in order.


Very truly yours,
_____________________________
Phes Site Engr./ Inspector
Recommending Approval:
_____________________________
VP-Operations/Project Manager
______________________________
Kenneth T. Gatchalian
EVP-COO

Approved by:
_______________________________
Ms. Elvira A. Ting
President

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
I. INTRODUCTION
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
This policy aims to provide
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:
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Page 1 of 5
operating procedures to ensure close
monitoring and coordination on house construction awarded to Contractors.
A. For House Construction awarded to a Contractor:
1. Prior to the commencement of the construction, the PHES Project Engineer / Architect (PA)
should review, familiarize and check plans and specifications. He should review, evaluate
and check accuracy of the Bill of Materials & cost estimates.
2. A joint evaluation and discussion with the contractor should be initiated for final instructions
and details. Any concern re: conflict with the plans and specifications, lacking details,
discrepancy on the estimates for correction and items needed to complete for the proper
implementation of the project should be reported in writing and discussed to the Design
group, for verification and approval of the top management.
3. Lot monumenting or relocation survey should be witnessed by the PA, to ensure that
setbacks are complied, familiarize with the actual lot monument and define existing utilities
along the road if any.
4. The contractor should secure necessary government permits prior to start of any
5. Construction
6. Prior to lay-out or batterboard, the PA should issue to the Contractor, an approval or
clearance to commence construction, if the above requirements are complied, particularly
the correctness of the lot monuments and compliance with the standard setbacks.
7. After lay-out and installation of batterboards, a work request for excavation should be
submitted by the contractor to the PA for confirmation.
8. All concrete pouring should have a pouring request approved by the PA, to check and
validate compliance with the plans & specification as to line and grade, rebar size &
quantity, volume of concrete and all imbedded items installed. The PA should also check
workmanship on concreting.
9. The PA should ensure that all works does not damage existing pavement and utilities of the
subdivision.
10. Prior to the start of the finishing works, the contractor should submit sample finishes and
mock-up paintings as per specifications to the PA for approval.
11. All tile setting should not commence unless the lay-out is approved by the PA.
12. For toilet areas with waterproofing, the PA should require the contractor to apply a flood test
for 24 hours prior to installation of the floor topping.

12.Waterline, drainage and sewer


lines should pass the leak tests. The
PA should not allow installation of
ceiling and floor finish until the
utilities pass the leak tests.

POLICIES AND PROCEDURES MANUAL


Function Area: OPERATIONS DEPARTMENT
Subject
: POLICIES ON BIDDING
(PHES-POL-OPER-006A
Effectivity
: 27 Feb 1998
Page 1 of 5

13. Roofing works should also pass the leak test, therefore, the PA should not allow ceiling
installation until the roof passed the test.
14. Final coat or paint color for exterior and interior should be subject to the approval of the PA
prior to application.
15. All testing for electrical should be done prior to energization.
16. Upon 80% completion of the house construction, the PA should prepare necessary
documents to secure Occupancy Permits, as a requirement for power supply application or
energization.
17. Upon house completion, the PA should conduct a punchlist for rectification, together with
the contractors representative, and the unit buyer or clients as well.
18. The PA shall issue a Certificate of Completion and Acceptance to the contractor and
furnished copy to the Property Management Officer for the processing of the Deed of Turnover and acceptance to the buyer and issuance of the Authority to Move-in.

TRANSITORY PROVISIONS
This policy may not be changed or any provisions herein deleted or added without the
express written approval of the EXECUTIVE COMMITTEE. All other rules, regulations and
policies contrary to or inconsistent with the provisions of this Policy are hereby deemed repealed
effective upon approval.

THE EXECUTIVE COMMITTEE:


___________________________________
MS. ELVIRA A. TING

________________________________
MR. KENNETH T. GATCHALIAN

OPERATIONS DIVISION

CLIENTS PUNCHLISTING REPORT


HOUSE MODEL : _____________________________
BLOCK / LOT No. : _____________________________
OWNER
: _____________________________
Dare of Inspection : ______________________________

REFERENCE No.____

1.0 INTERIOR WORKS:


AREA
1.1 LIVING
1.2 DINING
1.3 KITCHEN
1.4 BEDROOM 1
1.5 BEDROOM 2
1.6 MASTERS BEDROOM
1.7 MAIDS ROOM
1.8 T & B G/F
1.9 T & B 2/F
1.10

STAIRS

1.11OTHERS (specify)

2.0 EXTERIOR WORKS

DEFICIENCES

REMARKS

AREA
2.1 FRONT SIDE

DEFICIENCES

REMARKS

2.2 LEFT SIDE


2.3 RIGHT SIDE
2.4 REAR SIDE
2.5 CARPORT
2.6 SERVICE AREA
2.7 OTHERS (specify)

Inspected by:
Buyer or Authorized Representative
___________________________________
Signature over Printed Name
Witnessed by:
Contractor:
______________________________
Signature over Printed Name

OPERATIONS DIVISION

Noted by:
_____________________________________
PHES Rep. / Signature over Printed
Name

CHANGE ORDER REQUEST FORM SITE DEVELOPMENT

(REF. No.

Date
CONTRACTOR
Address
Attention:

Contractors Name
Position

Subject:

Project
Change Order No. _____
Items of Work

Gentlemen:
This will confirm approval to/ not to undertake the following work items on the above subject
project:
ITEMS
AMOUNT
REMARKS
1.0 Item of Work per attached
Change Order Evaluation
AMOUNT IN WORDS:

Php ___________

ADDIVITIVE / DEDUCTIVE

__________________________________________________
__________________________________________________

2.0 Initiated by:

Owner/ Contractor

3.0 Reason for Change Order:

__________________________________________________
__________________________________________________

4.0 Terms of Payment

Deductionupon Approval/ Confirmation OR Payment through


Progress Billing

Very Truly Yours,

____________________________________
Position
Noted by:
KENNETH T. GATCHALIAN
Exec. Vice President/ Chief Operating Officer

CONFORME:

Approved by:

Contractor

Position
ELVIRA A. TING

OPERATION DIVISION _______________________________MINUTES OF THE MEETING No.___

Project
Date
Time
Attendees

:
:
:
:
Name Company/ Contractor

Items Discussed:

Site Development
House Construction
Other Issues
-

Meeting was adjourned at ___________________________________.

Prepared by:
PHES Representative__
Position

OPERATIONS
DEPARTMENT

TABLE OF CONTENTS

I. POLICIES ON BIDDING
II. GENERAL CONSTRUCTION GUIDELINES

PUNCHLISTING AND INSPECTION


SUBMISSION OF WEEKLY REPORTS
INSPECTION OF CONSTRUCTION
WORKS

RELEASE OF RETENTION
CHANGE ORDERS
BILLING AND INSPECTION

III.

POLICY ON IN-HOUSE PROJECTS

IV.

POLICY ON ON-HOUSE PROJECTS