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Project Construction Management Presentation for Presidential Decree 1594

Engr. Joselito R. Lacuarin, MSCE Civil Engineering Department, CoE,NDU

I. II. Detailed Engineering Instruction to Bidders

III. Contract Implementation

IV. Evaluation of Contractors Performance

V. Applicability


1. No bidding and/or award of contract for a construction project shall be made unless the detailed engineering investigations, surveys and designs for the project have been sufficiently carried out in accordance with the standards and specifications prescribed by the Head of office / agency / corporation concerned or his duly authorized representatives.

2. Detailed engineering shall proceed only on the basis of the feasibility or preliminary engineering study made which establishes the technical viability of the project and conformance to land use and zoning guidelines prescribed by existing laws. The findings contained in the feasibility study, if undertaken for the project, shall be examined. If, in the course of this exercise, as proposed, specific recommendations for such changes shall be supported by detailed justifications, including their effects on the cost, and (if necessary) the economic justification.

3. A schedule of detailed engineering activities shall include the following: a. b. c. d. Survey Site investigation Foundation investigation Soils and materials investigation

f. g. h.

Preparation of designs
Preparation of specifications Preparation of quantity and cost estimates Preparation of program of work

i. Preparation of proposed construction schedule (and estimated cash flow for projects with schedule over six months.


Work under detailed engineering shall include but not necessarily be limited to the following:

A. Design Standards B. Field Surveys C. Contract Plans

Includes: Site Development Plan Plans and Profile Sheet Typical Sections & Detail Structural Plans Other Details

D. Quantities E. Special Provisions F. Unit Prices G. Agency Estimate H. Bid/tender Documents I. Program Of Work

I. II. Detailed Engineering Instruction to Bidders

III. Contract Implementation

IV. Evaluation of Contractors Performance

V. Applicability

II. Instructions to bidders: Provisions referring to Preconstruction Activities from Advertisement to Contract Award
Who may be allowed to Bid:

Filipino Citizen
Local Contractors Foreign Contractors for foreign-assisted projects

Organization of PBAC- Pre-qualification,Bid,and Awards Committee

Chairman Executive Officer Member (Regular) Member (Provisional)

Invitation to Pre-qualify and to Bid by:


Issuance of Qualification Statement Forms:

1. Notice of Information by PBAC
Name and Location of the Project Project Background Estimated Project Cost and Source of Funding

Required PCAB registration and Classification and/or License

Cost and Place of issuance of Pre-C or bid/tender documents Date, Time and Place of submission of Pre-C,Pre-bid,Submission and opening of Bids

2. The following qualification statements shall be required of interested contractors: PCAB contractors license Pre-C confidential pre-qualification statement

Composition of Pre-C: Credit line issued by an authorized bank in an amount equal to the average operating expenses of the project for 2 months or 10% of the total project cost.

Proposed organization chart for the project

List of key personnel w/ qualification and experience data sheet Statement of all relevant completed projects in the last 3 years. Detailed statement showing all project awarded

List of relevant equipment owned as well as rented

Classification and registration of Contractors

The inter-agency committee composed of DPWH, DOTC, Office of the President in the absence of Dept. of Energy and the Construction Industry Authority of the Philippines (CIAP) will classify and register contractors based on their submitted Confidential application for Registration and Classification (ARC- C)

Pre-qualification of Contractors for Specific Contracts

A bidder must be found to be prequalified to undertakes the subject based on his prequalification statements as evaluated by PBAC. The Government reserves the right to review his prequalification statement and other relevant info before the approval of the contract. The PBAC shall mark either Pre-qualified or Pre-disqualified as the case maybe. The PBAC shall also check the bidders performance in his public and govt. projects.

Issuance of Plans, Specifications, Proposal Book Forms and Draft Contract

Estimated Project Cost (Peso) <= 1 million >1 million<=5million >5million<=10million >10 million<=100 million >100 million

Issuance of plans, Specs, Proposals & Contracts 15 days before bidding 30 days 45 days 60 days 90 days

Interpretation of Bid/Tender Documents and other Supplemental Notices

If a prospective bidder is in doubt as to the meaning of any part of the bid documents, he may submit a written request for an interpretation to the the head of office concerned. The govt. may also issueall prospective supplemental notices at least seven calendar days prior to the date of opening of bids for purpose of clarification or modification of the bid documents

Submission, opening and Abstracting of Bids/Tenders

The bids shall be submitted in two sealed envelopes wit the name of the project to be bid and the name of the bidder in capital letters addressed to the PBAC (or to the Bid and Awards committee) of the agency concerned. They shall be marked DO NOT OPEN BEFORE THE DATE AND TIME OF OPENING OF BIDS)

Contents of First Envelope:

Authority of the signing official Construction schedule and S-curve Construction methods Project organizational chart Manpower schedule Equipment utilization schedule and duly executed contract of lease of all equipment and machineries which shall be intended for the use intensively for the project,if any Affidavit of site inspection

Certification that the detailed estimates, cash flows by quarter, and payments schedule are in the second envelope.

Contents of the Second Envelope:

Bid Prices in the bill of quantities Detailed Estimates Cash Flows by quarter and payment schedule Bids shall be received on or before the designated time and date to be eligible for construction. Bids may be widthdrawn only in writing 5 days from the deadline of submission of bids

In the case where the Approved agency Estimate (AAE) is held confidential, it shall be announced publicly before all bids are opened, read and recorded.

Contents of the Abstract of Bids:

Name of the Project and its location Time, date and place of bidding Names of bidders and corresponding bids arranged from the lowest to highest showing respective variances in percent from the AAE, the amount of security and name of the issuing entity.

Awarding of Contract:
1. By BID Contract: No award of contract shall be made to a bidder whose bid price is higher than the allowable government estimate (AGE) or the approved agency estimate (AAE), whichever is higher, or lower than 70% of the age. Bids higher than 1205 or lower than 60% shall not be considered. No negotiation will be allowed to bring down the bid to the level of the AGE/AAE.

In the event that any of the ff the agency shall review the AAE/bids:
When no bids are received When all bids are greater than 120% or lower than 60% of the AAE Failure to award the contract due to the above reasons

The Govt reserves the right to reject any all bids due to an evident collusion among contractors resulting in no competition.

2. By negotiated Contract or Simplified Public Bidding

-can be done due to ff:

Emergencies due to natural calamities Failure to award the contract after (2) two public bidding

Terminated Contracts

Documents Comprising The Contract:

1. 2. 3. 4. 5. 6. 7. 8. 9. Contract Agreement Conditions of Contract Drawing/Plans Specifications Invitation to Bid Instruction to Bidders Addenda Bid Form Performance Security

10. Pre-qualification statements 11. Credit line 12. Notice of Award of Contract and contractors Conforme thereto 13. Other contract documents that may be required by the agency concerned.

I. II. Detailed Engineering Instruction to Bidders

III. Contract Implementation

IV. Evaluation of Contractors Performance

V. Applicability

III. Contract Implementation:

These provisions refer to activities during the project construction

As an Absolute rule: Change Orders or Extra work Orders should be issued only for additional or

deletion of works necessary for the completion of the project and, therefore, should within the limits stated and the general scope of the project as bid and awarded.

Change Order Conditions: Where the aggregate cost of Co is limited to 25% of the original contract excluding the effects of price escalation and provided that no major pay item shall be increased by more than 100% of the original cost. Change orders exceeding 25% may be covered by as Supplemental Agreement. Any Variation Order shall be subjected to the escalation formula used to adjust the original contract price less the cost of mobilization.

I. II. Detailed Engineering Instruction to Bidders

III. Contract Implementation

IV. Evaluation of Contractors Performance

V. Applicability

IV. Evaluation of Contractors Performance

Subject and Scope: All contractors undertaking projects with the Govt. regardless of contract amount and funding source and whose contracts are awarded either thru bidding or negotiation, shall have their performance evaluated by the agency concerned. This evalation shall be done during the construction phase and completion phase. Evaluation Guidelines: by Constructors Performance Evaluation System (CPES) created by CIAP

Submission Of Evaluation Results:

All agencies concerned shall submit the results of their Performance Evaluation within (1) one week after the conduct of final evaluation

I. II. Detailed Engineering Instruction to Bidders

III. Contract Implementation

IV. Evaluation of Contractors Performance

V. Applicability

V. Applicability
These implementing rules and regulation as amended shall apply to all contracts for infrastructure and other construction projects of al govt. agencies including govt. owned or controlled corp. and of the instrumentalities that will either be bid or negotiated including those through sealed canvass or simplified public bidding after 10 days from date of dissemination. Any violation hereof shall be punishable under existing laws, rules and regulations as may be appropriate. These amended implementing rules and regulations shall not apply to lump sum PAKYAW contracts.