COMMISSION ON AUDIT CIRCULAR NO.

82-101-H January 22, l982

TO : All Heads of Ministries, Chiefs of Bureaus/Offices, Regional Directors of the

different Ministries; Managing Heads of Government-Owned or Controlled
Corporations, including Educational Institutions and Self-Governing Boards,
Commissions or Agencies of the Government; Provincial Governors/City Mayors;
COA Managers/General Counsel; COA Regional Directors; All Corporations;
Provincial, City Bureau and Unit Auditors and Others Concerned.

SUBJECT : Documentary Requirements for Review and Inspection of Infrastructure

Contracts.

Enumerate hereunder are the documents required to be submitted to the COA Technical
Service Office in connection with its review and inspection of infrastructure contracts and
contract changes:

I. Contracts Review Checklist:

a. Copy of the main agreement or contract;

b. Plans;

c. Specifications;

d. General Conditions and Special Conditions;

e. Approve Agency Estimate (AEE) or Program of Work broken down into work
items and cost computations showing in sufficient detail the derivation of all
prime/direct cost (equipment, fuel, labor, materials and overhead/indirect costs;

f. Average Government Estimates (AGE) and the proposed contract price broken
down by work items and cost components;

g. For Bidded Contracts:

1. Advertisement or evidence of publication

2. Abstract of Bids

3. Resolution of the PBAC or Bid and Awards Committee recommending

award;

h. Approval of award by the Head of Office/Agency/Corporation; and

i. PERT/CPM Network Diagram or equivalent schedule of Work.

 The Auditor shall see to it that all of these documents are duly approved and
authenticated as parts of the contract before they are forwarded to the Technical Service Office
for review.

II. Variation Orders Review:

a. Copy of the approved Supplemental Agreement/Change Order/Extra Work

Order/Variation Order;

b. Breakdown of the total additive/deductive amount involved into work items and
cost components including detailed quantity estimates of any additional work;

c. Detailed cost estimates showing in sufficient detail the derivation of all

prime/direct costs and overhead/indirect costs of new items of work not included
in the original contract;

d. Duly approved revised plans indicating the changes made;

e. Inspection Report of a COA Technical Property Inspector verifying the need for
the change or variation and indicating the specific items of work affected with
their value, to be duly noted by the COA official authorizing the inspection;

f. For variation orders issued for the restoration of typhoon/calamity damage.

1. PAGASA report or any acceptable evidence/report on the

occurrence of the calamity issued by duly authorized agencies
of the government or recognized national daily newspaper.

2. Latest Accomplishment Report on the Project before the

occurrence of the typhoon/calamity, indicating the actual
accomplishment on different portions of the project.

These requirements are enumerated on the assumption that all the required documents
listed under No. 1 Contract Review have been submitted. Otherwise the documents required
under No.1 Contract Review shall be submitted upon request including all previous
Supplemental Agreements/Change Orders/Extra Work Orders/Variation Orders issued if so
required.

III. Time Extension Review Checklist

a. Statement of time elapsed for the project as of the date of request, to be verified
by the Auditors;

b. Copies of all contract time extensions previously approved;

c. Latest PERT/CPM Network Diagram duly approved by the Head of the agency, if
any revisions were made on the original due to variation orders or time
extensions/suspension orders previously issued;
 d. Computations showing how the number of days of contract time extension being
granted was determined;

e. Contractor's request for contract time extension;

f. Certification or reports establishing the existence of the grounds for contract time
extension to be issued by authorized government agencies, for example:

1. PAGASA Report covering the area where the project is located,

if the extension requested is due to adverse weather conditions.

2. PC Provincial Commander is the extension requested is due to

a deteriorating/worsening peace and order situation.

IV. Price Escalation Review Checklist:

a. Approval of the request for Price Escalation;

b. Copy of the original contract;

c. Date of bidding;

d. Basic letter of request for price escalation;

e. Computations showing in sufficient detail how the amount of escalation was

obtained, duly approved by the Ministry/Agency Head concerned and verified by
the Auditor.

The following may be contained:

1. Dates covering the period in question.

2. Accomplishment Report showing the quantities subject to escalation.

3. Original contract unit cost.

4. Computations of the fluctuation factors.

5. Computations of the escalated unit cost.

6. Copies of Central Bank Price Indices used.

f. Latest or updated PERT/CPM duly approved by the Head; of the agency;

g. Computations for determining slippage of the contract.

V. Verification of Work Accomplishment (Inspection) Checklist:

 a. Statement of Work Accomplishment;

b. Bill of Materials/Cost Estimates and/or Program of Work to include revisions due to

Supplemental Agreements/Change Orders/Extra Work Orders/Variation Orders if
any;

c. Plans and Specifications (Original);

d. Contract (as to its scope of work) and copies of duly approved Supplemental
Agreements/Change Orders/Extra Work Orders/Variation Orders is any;

e. For 100% complete projects, Certificate of Final Inspection and Acceptance and
As Built Plans.

Please be guided accordingly.

(SGD.) SILVESTRE D. SARMIENTO, Commissioner

(SGD.) FRANCISCO S. TANTUICO, JR., Acting Chairman