Review of Specifications and Plan Details

CE 442
QUANTITY
SURVEYING
SUBMITTED BY:
Bondoc, Miles Jerome
Dela Cruz, Loraine
De Vera, Dannah
Erilla, Mark Joseph
Maniego, John Jeanwel
Pelayo, Harold
Torres, Kenneth Christian
Urbina, Gerico
Villa, Sylvetre
BSCE 4D
SUBMITTED TO:
Engr. Mark Christian Esguerra
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I. REVIEW OF SPECIFIACATIONS AND PLAN
DETAILS
Specification
A specification is a detailed description of the dimensions, construction,

workmanship, materials, etc., of work done or to be done by an engineer, architect, or
designer, often referred to as a specifier.
The specification describes the nature and the class of the work, materials to be used
in the work, workmanship, etc. And is very important for the execution of the work. The cost
of a depends much on the specifications. The specification should be clear.
This also specifies the workmanship and the method of doing work. Thus, the
specification of a work serves as a guide to a supervising staff of a contractor as well as to the
owner to execute the work to their satisfaction.
Example of Specification
CLEARING THE SITE

The building site shall be leveled according to the plans and cleared of
rubbish, roots, and other perishable and objectionable matters to a suitable subgrade.
EXCAVATION
all excavations shall be made to the grade indicated in the drawings. where
the building site is covered with any kind of fill, the excavation for footings should be
made deeper until the stratum for the safe bearing capacity of the soil is reached.
STAKING OUT THE BUILDING LINES
The building lines shall be staked out and all lines and grades shown in the
drawing
established before any execution are started. Batterboards and reference marks shall b
e erected at such places where they will not be disturbed the excavation of the
building.
Plan Details
A construction plan is a written document outlining a project’s process and details. It

includes the project timeline, budget, materials, and labor. A plan helps ensure that a project
runs smoothly and efficiently.
Important Things to Review on The Review of Specifications and

Plan Details
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 Site Conditions and Restraints
 Check and Verify Underground Utilities
 Conflicts Between Specifications and Plans
II. INVITATION TO BID
What is construction bidding?
construction bidding is where a subcontractors submit a bid proposal to either the owner,
construction manager or general contractor.
Invitation to Bid
 An invitation to bid is a call by clients to contractors to provide specific products or

services that meet product specifications. The idea behind an invitation to bid is to
give all interested bidders standardized information about the project scope, duration,
required warranties, service standards, and minimum qualifications.
Steps of an Invitation to Bid
1. Bid Appeal
- the owner asks for bids after providing project specifications, documents, and
drawings to interested contractors.
2. Bid Submission
- All contractors interested in the construction project must submit their bids to the
client in sealed envelopes and then await review.
3. Bid Selection
- After receiving all the bids, the owner reviews them to select the contractor that
suits the project requirements.
4. Subcontracting
- In some construction projects, the general contractor can acquire bids from
subcontractors to get the most profit out of a project. The general contractor will
come up with a construction submittal for the subcontractor. This process happens
after winning a bid, where the general contractor can choose whether to involve a
subcontractor or not.
5. Contract Formation
- The final phase in the bidding process. The contractor and client finalize the legal
grounds for the project and enter a contract.
When are invitation to bid used?
- This promotes high levels of transparency and helps curb corruption and
favoritism.
- Clients mostly use invitations to bid on predictable projects to clearly understand
the processes and requirements necessary to complete the project.
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Pros of an Invitation to Bid
 An invitation to bid allows contractors to be part of construction projects. It saves

time as clients and construction jobs are available.
 It bid allows owners to choose the most suitable bid from different contractors.
 It simplifies the procurement process since the client can directly acquire bids for the
construction.
Cons of an Invitation to Bid
 In most cases, bidders with the lowest bids always get construction jobs. This can
influence contractors to use cheaper and low-quality material that does not meet the
client's requirements.
 The bidding process takes a lot of time, from bid appeal to contract formation. This
can discourage upcoming contractors from submitting their bids.
How to write a bid invitation?
When looking for new contractors, writing a good bid invitation is imperative. The
bid invitation should outline the client's expectations and clarify key project details such as
scope and deliverables.
The bid invitation should start with the project name and the bidders' email addresses.
It also includes the bid number, opening, and closing date.
The next step is to list the purpose of the project and the critical components. One
should also write how the invitation is to be delivered. The bid forms should be signed and
authorized by the bidders.
The invitation should also remind the bidders to bid only on the items in the
designated scope of work, as all additional tasks are considered separate bids.
The last step is notifying the bidders how they will be contacted if they win the bid.
Usually, this is done through the bid award notice that advises the contractor about the project
kick-off meeting's date, time, and location.
10 TIPS TO WIN CONSTRUCTION BIDS
Construction professionals used to employ the lowest bid strategy to win projects. Still, there
is a thin line between staying profitable and staying competitive in the ever-increasingly
complex construction atmosphere. Having a low bid does not necessarily mean that you are
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winning on projects. Increasing your bidding volume wastes your time and money. It would
be best if you focused on winning bids with fewer proposals.
1. UNDERSTAND THE BIDDING PROCESS
An easy way to successfully win more bids is by understanding the bidding process, knowing
your competition, and knowing the jobs you need to bid for.
A winning bid is not just a detailed job application, but it should be an advertisement of your
value addition to the table. Your offer should be more than only the price, and in essence, you
are advertising yourself as the one with the better services.
2. BID QUICKLY
It is always advisable to bid ahead of the competition. It isn't easy to win a bid with thirty
competitors compared to a bid with three. The more proposals a project owner receives, the
higher the probability of losing the proposal is. You don't need special skills to find projects
before your competition gets wind of them.
You can use construction bidding networks and marketplaces to find jobs before your
competition. Online marketplaces help you to find jobs to bid on and help you create a
company profile that is included in bid searches
3. ACCURATELY ESTIMATE YOUR COSTS
Clients are never happy when you misquote, underquote or overcharge. Underbidding makes
the evaluation team question your expertise. Quoting too high or too low is always a red flag.
You need to explain all your costs explicitly and show that you will provide value for the
project. A reasonable cost estimate uses the material take-off list for materials. Other prices to
consider are labor and supply costs. After proper cost estimation, review your profit margins.
If it falls within acceptable profit margins, that is a reasonable bid.
4. BID ON THE RIGHT PROJECTS
Just the fact that a job is available does not mean that you should go for it. It is always a
tough hurdle for new contractors when seeking out work. The American Society of Civil
Engineers surveyed in 2011, they found the bid or no-bid decision is influenced by the type
of work, experience, and contract terms.
5. DO NOT BID FOR PROJECTS THAT YOU PROBABLY WON'T WIN.
Many reasons can decrease your winning probability. If you do not meet specific project
requirements, do not bid. Take your time to research a project, the location, competitors, and
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project type, and develop your bidding benchmark. This will assist you in making calculated
bids and increase your chances for success.
6. BID ON THE JOBS IN YOUR NICHE.
Matt Cheuvront once stated, "You can't be good at everything, but you can be good at
something." Think about the projects that you handle best and the ones that lead to repeat
business and bid on those projects.
7. UNDERSTAND THE RFP
If you do not thoroughly read the RFP, you will be in bad shape. RFPs are very specific. It is
best to follow the terms as they are. Any slight deviation can be ground for disqualification.
Adhere to the client's specifics and the page count. This shows your professionalism and that
you already respect your client's needs beforehand.
The RFP should not be overly detailed because it hinders the contractor's creativity, but it
should not be vague and leave critical information.
8. HAVE A CLEAR VALUE PROPOSITION
When your company does not have an undifferentiated brand, it does not have any
competitive advantage. In retrospect, the bidding boils down to price wars where the
company has to slash the profit margins to win a bid.
On the contrary, if you have a "premium brand," you will be hired based on the value
proposition. Some of the attributes you can sell other than price are quality control,
responsiveness, customization, and expertise.
9. BUILT TRUST WITH DECISION-MAKERS
While you might make it to the in-person interview, if the stakeholders involved feel like you
are not the right match, this could be a deal-breaker. It is not wise to force a relationship, but
you can build trust with the stakeholders by being the best version. You can also highlight
how best you can collaborate or even compromise to come to amicable solutions.
10. PRESENT YOUR BID WELL
Please do your homework well and break down your bid so that the owners feel you meet
their expectations.
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Avoid giving a lump sum figure in your bid but instead break down the costs in labor,
equipment costs, and material costs. Remember, it is about showing your potential client the
right perspective.
All prospective clients need to see their investment return, so be prepared with hard data that
backs up your information. Breaking down the data through case studies is one of the helpful
methods you can use.
III. GENERAL CONDITION
GENERAL CONDITION
General conditions are essentially the framework of the construction contract

documents. They provide the “hows” of the project. Most importantly, general conditions
establish all the rights and obligations of the contracting parties. Additionally, it will lay out
the roles of every party and the responsibilities of each. Any time an issue arises on the
project, the game plan on how to proceed is usually found here, amongst a litany of detailed
clauses. This includes how change orders are processed, how payment apps are approved and
any and all notice requirements that may arise on a job site. The general conditions will also
include all the suspension, termination and alternative dispute resolution procedures.
Since general conditions cover every facet of the project, it can be challenging to
condense everything into a single essay. However, the following clauses are some of the
more significant ones that everyone should note before signing a contract:
Roles and Works of Parties
In the first place, general conditions define the fundamental obligations and liabilities
of the parties. This section will list the parties and their responsibilities for the project,
describe each party's rights and responsibilities, and establish notification guidelines.
For contractors, this is where you will find items such as:
 A detailed description of the work to be completed;
 Bonds and insurance requirements;
 And any warranties/guarantees
For the project owners, this may hold their responsibilities regarding:
 Site conditions;
 Change orders;
 Rejection of defective work, and more
Time
"Time" is a reasonably apparent concept. These clauses specify more information than
merely the due date for your task, though. This section ought to cover delays and extensions
as well. Delays often accompany construction projects.
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What happens when you are unable to complete your work because of delays?
Does the contract allow for extensions?
Price and Payments
The price and payment terms will influence the total contract price and the
arrangement of payments. Here are the answers to the crucial queries that have an impact on
your bottom line, including:
Will there be progress payments or a lump sum final payment?
How are progress payments scheduled?
What is the payment application process?
Will there be retainage?
How is substantial completion defined for your work?
What happens if the owner decides the work is defective or insufficient?
The Schedule of Values will normally be mentioned in this section as well. This is a
separate document that lists the costs associated with the various parts of the task. They're
crucial for GCs in particular because they can use them to monitor the progress of the task
and ensure that it corresponds to the payment amount.
Changes
These provisions typically fall under one of three categories:

1. Change Orders
- Changes Orders Contract adjustments are made through change orders. Essentially,
these are mini-agreements that modify the scope of work, the cost, and the timeline of
the primary contract.
2. Changes in Directive
- Change Directives If the general terms of the contract are not followed, Change
Directives might become hazardous. These clauses provide the owner the unilateral
right to alter the work, with subsequent price and schedule adjustments.
3. Minor Changes
- Minor Changes The third category of alterations that could be permitted under
contract is a minor change. These are little project changes that have no impact on the
cost or the time required to finish the performance.
Suspension and Termination
Observe this clause in your contract very carefully. The conditions under which the
contract may be revoked or suspended are described here. These could range from the
project's owner experiencing financial difficulties to potential delays.
Contrarily, almost every construction contract contains a termination clause. You will
find a list of the possible termination options in this area of your contract. There are likely
others outside the most obvious, which is breach of contract (for cause). A particular contract
may be ended in accordance with the provisions of the agreement for convenience,
annoyance, or other reasons that may be specified therein.
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Claims and Disputes
Disagreements arise all the time on construction projects. The construction contract
should provide how these disagreements should be dealt with. Look for guidance on
questions such as:
What types of notices are required when a disagreement arises?
Are there time limits for any claims against the owner?
Final Thoughts
You should not disregard the general terms of a building contract. These terms may
make your eyes glaze over, yet they are extremely important to the project's success. The
general conditions, if properly designed, should serve as a solid foundation for the agreement
and foster fairness among all contracting parties. If they aren't, problems that arise at work
may result in headaches, if not migraines.
IV. SPECIAL CONDITION
Section V. Special Conditions of Contract
Notes on the Special Conditions of Contract
Similar to the BDS (Bid Data Sheet), the clauses in this Section are intended to assist the
Procuring Entity in providing contract-specific information in relation to corresponding
clauses in the GCC (General Conditions of Contract).
The provisions of this Section complement the GCC, specifying contractual requirements
linked to the special circumstances of the Procuring Entity, the Procuring Entity’s country,
the sector, and the Goods purchased. In preparing this Section, the following aspects
should be checked:
(a) Information that complements provisions of Section IV must be incorporated.
(b) Amendments and/or supplements to provisions of Section IV, as necessitated by

the circumstances of the specific purchase, must also be incorporated.
However, no special condition which defeats or negates the general intent and purpose of
the provisions of Section IV should be incorporated herein.
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Republic of the Philippines
NUEVA ECIJA UNIVERSITY OF SCIENCE AND
Cabanatuan City, Nueva Ecija, Philippines
ISO 9001:2015 CERTIFIED
SUMACAB CAMPUS
Special Conditions of Contract

GCC Clause
Error: The Procuring Entity is [insert name of Procuring Entity].
Reference
source not
found
Error: The Supplier is [to be inserted at the time of contract award].
Reference
source not
found
Error: The Funding Source is:
Reference
source not Select one of the following, delete the other:
found
If the Funding Source is the GOP: The Government of the Philippines
(GOP) through [indicate source of funding and year] in the amount of
[insert amount of funds].
NOTE: In the case of National Government Agencies, the General

Appropriations Act and/or continuing appropriations; in the case of
Government-Owned and/or –Controlled Corporations, Government
Financial Institutions, and State Universities and Colleges, the
Corporate Budget for the contract approved by the governing
Boards; in the case of Local Government Units, the Budget for the
contract approved by the respective Sanggunian.
If the Funding Source is a foreign government/foreign or

international financing institution: The [indicate the name of the
foreign government/foreign or international financing institution]
through [indicate the Loan/Credit/Grant No.] in the amount of [insert
amount of funds].
Error: The Project Site is [insert full name and address of the delivery site].
Reference For multiple sites state “The Project sites are defined in Error:
source not Reference source not found”]
found
Error: The Procuring Entity’s address for Notices is: [Insert address
Reference including, name of contact, fax and telephone number]
source not
found The Supplier’s address for Notices is: [Insert address including,
name of contact, fax and telephone number]
Error: List here any additional requirements for the completion of this
Reference Contract. The following requirements and the corresponding
source not provisions may be deleted, amended, or retained depending on its
found applicability to this Contract:
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Delivery and Documents –
For purposes of the Contract, “EXW,” “FOB,” “FCA,” “CIF,” “CIP,”

“DDP” and other trade terms used to describe the obligations of the
parties shall have the meanings assigned to them by the current
edition of INCOTERMS published by the International Chamber of
Commerce, Paris. The Delivery terms of this Contract shall be as
follows:
For foreign Suppliers, state “The delivery terms applicable to the

Contract are DDP delivered [insert place of destination]. In
accordance with INCOTERMS.”
For domestic Suppliers, state “The delivery terms applicable to this

Contract are delivered [insert place of destination]. Risk and title will
pass from the Supplier to the Procuring Entity upon receipt and final
acceptance of the Goods at their final destination.”
Delivery of the Goods shall be made by the Supplier in accordance

with the terms specified in Error: Reference source not found. The
details of shipping and/or other documents to be furnished by the
Supplier are as follows:
For Goods supplied from within the Philippines or by domestic

Suppliers:
Upon delivery of the Goods to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents to
the Procuring Entity:
(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies delivery receipt/note, railway receipt,
or truck receipt;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the authorized receiving personnel;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.
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For Goods supplied from abroad (excluding domestic Suppliers):
Upon shipment, the Supplier shall notify the Procuring Entity and the
insurance company by cable the full details of the shipment, including
Contract Number, description of the Goods, quantity, vessel, bill of
lading number and date, port of loading, date of shipment, port of
discharge etc. Upon delivery to the Project Site, the Supplier shall
notify the Procuring Entity and present the following documents as
applicable with the documentary requirements of any letter of credit
issued taking precedence:
(i) Original and four copies of the Supplier’s invoice showing

Goods’ description, quantity, unit price, and total amount;
(ii) Original and four copies of the negotiable, clean shipped on
board bill of lading marked “freight pre-paid” and five copies
of the non-negotiable bill of lading ;
(iii) Original Supplier’s factory inspection report;
(iv) Original and four copies of the Manufacturer’s and/or
Supplier’s warranty certificate;
(v) Original and four copies of the certificate of origin (for
imported Goods);
(vi) Delivery receipt detailing number and description of items
received signed by the Procuring Entity’s representative at the
Project Site;
(vii) Certificate of Acceptance/Inspection Report signed by the
Procuring Entity’s representative at the Project Site; and
(viii) Four copies of the Invoice Receipt for Property signed by the
Procuring Entity’s representative at the Project Site.
For purposes of this Clause the Procuring Entity’s Representative at

the Project Site is [insert name(s)].
Incidental Services –
The Supplier is required to provide all of the following services,

including additional services, if any, specified in Error: Reference
source not found:
Select appropriate requirements and delete the rest.
(a) performance or supervision of on-site assembly and/or start-up

of the supplied Goods;
(b) furnishing of tools required for assembly and/or maintenance
of the supplied Goods;
(c) furnishing of a detailed operations and maintenance manual
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for each appropriate unit of the supplied Goods;

(d) performance or supervision or maintenance and/or repair of
the supplied Goods, for a period of time agreed by the parties,
provided that this service shall not relieve the Supplier of any
warranty obligations under this Contract; and
(e) training of the Procuring Entity’s personnel, at the Supplier’s
plant and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied Goods.
The Contract price for the Goods shall include the prices charged by
the Supplier for incidental services and shall not exceed the prevailing
rates charged to other parties by the Supplier for similar services.
Spare Parts –
The Supplier is required to provide all of the following materials,

notifications, and information pertaining to spare parts manufactured
or distributed by the Supplier:
Select appropriate requirements and delete the rest.
(a) such spare parts as the Procuring Entity may elect to purchase
from the Supplier, provided that this election shall not relieve
the Supplier of any warranty obligations under this Contract;
and
(b) in the event of termination of production of the spare parts:
i. advance notification to the Procuring Entity of the

pending termination, in sufficient time to permit the
Procuring Entity to procure needed requirements; and
ii. following such termination, furnishing at no cost to the
Procuring Entity, the blueprints, drawings, and
specifications of the spare parts, if requested.
The spare parts required are listed in Error: Reference source not
found and the cost thereof are included in the Contract Price
The Supplier shall carry sufficient inventories to assure ex-stock

supply of consumable spares for the Goods for a period of [insert
here the time period specified. If not used insert time period of three
times the warranty period].
Other spare parts and components shall be supplied as promptly as

possible, but in any case within [insert appropriate time period]
months of placing the order.
Packaging –
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The Supplier shall provide such packaging of the Goods as is required

to prevent their damage or deterioration during transit to their final
destination, as indicated in this Contract. The packaging shall be
sufficient to withstand, without limitation, rough handling during
transit and exposure to extreme temperatures, salt and precipitation
during transit, and open storage. Packaging case size and weights
shall take into consideration, where appropriate, the remoteness of the
GOODS’ final destination and the absence of heavy handling
facilities at all points in transit.
The packaging, marking, and documentation within and outside the

packages shall comply strictly with such special requirements as shall
be expressly provided for in the Contract, including additional
requirements, if any, specified below, and in any subsequent
instructions ordered by the Procuring Entity.
The outer packaging must be clearly marked on at least four (4) sides
as follows:
Name of the Procuring Entity
Name of the Supplier
Contract Description
Final Destination
Gross weight
Any special lifting instructions
Any special handling instructions
Any relevant HAZCHEM classifications
A packaging list identifying the contents and quantities of the package

is to be placed on an accessible point of the outer packaging if
practical. If not practical the packaging list is to be placed inside the
outer packaging but outside the secondary packaging.
Insurance –
The Goods supplied under this Contract shall be fully insured by the
Supplier in a freely convertible currency against loss or damage
incidental to manufacture or acquisition, transportation, storage, and
delivery. The Goods remain at the risk and title of the Supplier until
their final acceptance by the Procuring Entity.
Transportation –
Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, transport of the Goods to the port of destination or
such other named place of destination in the Philippines, as shall be
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specified in this Contract, shall be arranged and paid for by the

Supplier, and the cost thereof shall be included in the Contract Price.
Where the Supplier is required under this Contract to transport the

Goods to a specified place of destination within the Philippines,
defined as the Project Site, transport to such place of destination in the
Philippines, including insurance and storage, as shall be specified in
this Contract, shall be arranged by the Supplier, and related costs shall
be included in the Contract Price.
Where the Supplier is required under Contract to deliver the Goods

CIF, CIP or DDP, Goods are to be transported on carriers of
Philippine registry. In the event that no carrier of Philippine registry is
available, Goods may be shipped by a carrier which is not of
Philippine registry provided that the Supplier obtains and presents to
the Procuring Entity certification to this effect from the nearest
Philippine consulate to the port of dispatch. In the event that carriers
of Philippine registry are available but their schedule delays the
Supplier in its performance of this Contract the period from when the
Goods were first ready for shipment and the actual date of shipment
the period of delay will be considered force majeure in accordance
with GCC Clause Error: Reference source not found.
The Procuring Entity accepts no liability for the damage of Goods

during transit other than those prescribed by INCOTERMS for DDP
Deliveries. In the case of Goods supplied from within the Philippines
or supplied by domestic Suppliers risk and title will not be deemed to
have passed to the Procuring Entity until their receipt and final
acceptance at the final destination.
Patent Rights –
The Supplier shall indemnify the Procuring Entity against all

third-party claims of infringement of patent, trademark, or industrial
design rights arising from use of the Goods or any part thereof.
Error: Select one, delete the other.
Reference
source not If the Funding Source is the GOP or WB, state the following:
found
For the given scope of work in this Contract as awarded, all bid prices
are considered fixed prices, and therefore not subject to price
escalation during contract implementation, except under extraordinary
circumstances and upon prior approval of the GPPB in accordance
with Section 61 of R.A. 9184 and its IRR-A.
For contracts of more than twelve (12) months duration funded by the
ADB or the JBIC, state the following:
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Prices payable to the Supplier, as stated in the Contract, shall be

subject to adjustment during performance of the Contract to reflect
changes in the cost of labor and material components in accordance
with the following formula, to be computed starting the thirteenth
(13th) month:
ΔP=P 0( a+b LL10 +c MM 10 )−P 0

in which:
ΔP = adjustment amount payable to the Supplier.
P0 = Contract Price (base price).
a = fixed element representing profits and overheads

included in the Contract Price and generally in the
range of five (5) to fifteen (15) percent.
b = estimated percentage of labor component in the

Contract Price.
c = estimated percentage of material component in the

Contract Price.
L0, L1 = labor indices applicable to the appropriate industry in

the country of origin on the base date and date for
adjustment, respectively.
M0, M1 = material indices for the major raw material on the base
date and date for adjustment, respectively, in the
country of origin.
The coefficients a, b, and c shall be specified by the Procuring Entity

in the Bidding Documents. The sum of the three coefficients should
be one (1) in every application of the formula.
The Bidder shall indicate the source of the indices and the base date
indices in its Bid.
Base date = start of the thirteenth month.
Date of adjustment = weeks prior to date of shipment

(representing the mid-point of the period of manufacture).
The above price adjustment formula shall be invoked by either party

subject to the following further conditions:
(a) Price adjustment will be applied only if the resulting increase
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or decrease is more than ____ percent of the Contract Price.
[Two percent (2%) would be an acceptable percentage.]
(b) No price adjustment shall be allowed beyond the original

delivery dates unless specifically stated in the extension letter.
As a rule, no price adjustment shall be allowed for periods of
delay for which the Supplier is entirely responsible. The
Procuring Entity will however be entitled to any decrease in
the prices of the Goods and Services subject to adjustment.
(c) The total adjustment under this clause shall be subject to a

ceiling of plus or minus percent of the Contract Price.
[Ten percent (10%) would be an acceptable percentage.]
(d) If the currency in which the Contract Price (P0) is expressed is

different from the currency of origin of the labor and material
indices, a correction factor will be applied to avoid incorrect
adjustments of the Contract Price. The correction factor shall
correspond to the ratio of exchange rates between the two
currencies on the base date and the date for adjustment as
defined above.
(e) No price adjustment shall be payable on the portion of the

Contract Price paid to the Supplier as advance payment.

international financing institution, maintain the GCC Clause and
state “No further instructions,” or specify the conditions for price
adjustment and the corresponding provisions therefor, if any.
Error: Select one and delete the other.
Reference
source not If the Funding Source is GOP, maintain the GCC Clause and state
found here: No further instructions.
If the Funding Source is ADB, JBIC, or WB, use the following clause:
For Goods supplied from abroad:
i. On Contract Signature: Ten percent (10%) of the Contract

Price shall be paid within sixty (60) days from signing of the
Contract and upon submission of a claim and a bank
guarantee for the equivalent amount valid until the Goods are
delivered and in the form provided in the Bidding
Documents.
ii. On Delivery: Seventy percent (70%) of the Contract Price
shall be paid to the Supplier within sixty (60) days after the
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date of receipt of the Goods and upon submission of the

documents (i) through (vi) specified in the SCC provision on
Delivery and Documents.
iii. On Acceptance: The remaining twenty percent (20%) of the
Contract Price shall be paid to the Supplier within sixty (60)
days after the date of submission of the acceptance and
inspection certificate for the respective delivery issued by the
Procuring Entity’s authorized representative. In the event that
no inspection or acceptance certificate is issued by the
Procuring Entity’s authorized representative within forty five
(45) days of the date shown on the delivery receipt the
Supplier shall have the right to claim payment of the
remaining twenty percent (20%) subject to the Procuring
Entity’s own verification of the reason(s) for the failure to
issue documents (vii) and (viii) as described in the SCC
provision on Delivery and Documents.

international financing institution, retain the GCC Clause and state
“No further instructions”, or specify the requirements or conditions
necessary prior to payment of contract.
Error: Select one and delete the other.
Reference

international financing institution, state the following:
The currency(ies) of payment shall be [insert currencies of payment].

Reference

international financing institution, maintain the GCC Clause and
state “No further instructions,” otherwise, specify the acceptable
form(s) with the corresponding amount(s) of the performance
security.
Reference
If the Funding Source is ADB, use the following clause: After

delivery and acceptance of the Goods, the performance security shall
be reduced to two percent (2%) of the Contract Price to cover the
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Supplier’s warranty obligations in accordance with GCC Clause

Error: Reference source not found.
Error: Specify additional conditions, if any, that must be met prior to the
Reference release of the performance security, otherwise, state “No further
source not instructions”.
found
Error: The inspections and tests that will be conducted are: [Insert the
Reference applicable inspections and tests, if none, state “None”].
source not
found
Reference
source not If the Funding Source is GOP and the Goods pertain to Expendable
found Supplies: Three (3) months after acceptance by the Procuring Entity
of the delivered Goods or after the Goods are consumed, whichever is
earlier.
If the Funding Source is GOP and the Goods pertain to Non-

expendable Supplies: One (1) year after acceptance by the Procuring
Entity of the delivered Goods.
If a warranty period of longer than one year is required and the

Funding Source is the ADB, JBIC, or WB, insert the following:
In partial modification of the provisions, the warranty period shall

_____ months from date of acceptance of the Goods or (_____)
months from the date of shipment, whichever occurs earlier.
Error: The period for correction of defects in the warranty period is [insert
Reference number of days].
source not
found and
Error:
Reference
source not
found
Error: The applicable rate is one tenth (1/10) of one (1) percent of the cost of
Reference the unperformed portion for every day of delay.
source not
found The maximum deduction shall be ten percent (10%) of the amount of
contract. Once the cumulative amount of liquidated damages reaches
ten percent (10%) of the amount of the contract, the procuring entity
shall rescind the contract, without prejudice to other courses of action
and remedies open to it.
Error: In the case of a dispute between the Procuring Entity and the
Reference Supplier, the dispute shall be resolved in accordance with Republic
source not Act 9285 (“R.A. 9285”), otherwise known as the “Alternative Dispute
20
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found Resolution Act of 2004.”
If the Funding is ADB delete the above paragraph and insert the
following:
All disputes arising in connection with the present Contract shall be

finally settled under the Rules of Conciliation and Arbitration of the
International Chamber of Commerce by one or more arbitrators
appointed in accordance with said Rules.

international financing institution state the applicable rule on dispute
settlement.
Error: State here “No additional provision.” or, if the Consultant is a joint
Reference venture, “All partners to the joint venture shall be jointly and
source not severally liable to the Procuring Entity.”
found
V. BID FORMS
5 STEPS OF THE CONSTRUCTION BIDDING PROCESS
Bid solicitation
During the bid solicitation phase, the property owner sends out an Invitation for Bid
(IFB), a Request for Quote (RFQ), or a Request for Proposal (RFP).
For public project bids, the solicitation phase is usually an open invitation for any contractors
who are registered to work on government construction jobs.
For private projects, bids may be open or sent to a smaller group of contractors. In some cases,
bids may be solicited with bid management platforms like Procore or PlanHub.
Regardless of the project type, the bid solicitation phase will include the following information
for interested contractors:
 Construction specifications
 Project requirements
 Contract type
 Project delivery method
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The solicitation will also ask for additional information about the contractors who apply, like
their qualifications and past projects. This information is used by property owners to prequalify
the contractors, ensuring that they will be able to complete the job as promised.
Contractors who meet the requirements and are interested in the job will be able to submit a bid.
Bid submission
In the bid submission phase, interested contractors submit documentation about the
project timeline and costs—as well as information about their business. General contractors will
solicit their own bids from subcontractors to complete specialized aspects of the job, and they
combine all of this information into a bid they submit to the property owner.
In order to create an accurate bid, contractors must create an accurate estimate of project costs,
including:
 Labor
 Materials
 Equipment
 Overhead
 Profit margin
By reviewing the project specifications and bill of quantities, performing material takeoffs,
and calculating overhead and profit margin, contractors should be able to nail down a
competitive bid. A good bid represents the best quality at the most reasonable price.
Importantly, bids should be as clean and organized as possible. A bid sheet serves as the face
of the bidder’s company. A professional bid with all of the correct documentation submitted on
time serves as the first indication of a bidder’s reputation.
Bid selection
When it comes to bid selection, property owners will often pick the bid that has the most
competitive price. Furthermore, when it comes to public projects, government rules often
mandate that the lowest bid wins.
However, private project owners may take into account other factors beyond price, including:
 Contractor experience
 Safety records
 Scheduling philosophy
When property owners solicit many bids, they may receive offers with similar prices from
very different contractors. In that case, owners will often use internal scoring systems or other
prequalification measures to determine which contractor is most suitable for the job.
Contract formation
After the owner selects a bid, they work together with the contractor to form
a construction contract that both parties will eventually sign. Even though the contract type (e.g.
fixed-price, time and materials, etc.) has already been determined, contractors still have leeway
at this point to negotiate the terms of the contract as well as the final pricing structure.
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Project delivery
Even though it’s not technically part of the bid process, project delivery plays a very
important role in bidding.
Before bidding starts, the property owner will determine the project delivery method. For
example, any of the following methods could be used:
 Design-Bid-Build
 Design-Build
 Construction Manager at Risk
During bidding, the project delivery method determines how bids are solicited and submitted.
For example, Design-Bid-Build solicits bids from general contractors based on designs from a
separate firm, whereas Design-Build employs a single firm for design and construction, so bids
are only received from subcontractors supporting that firm’s work.
After bidding, the project delivery method often influences contract negotiations. For
example, with the CMAR method, there is likely a guaranteed maximum price in the contract,
which the construction manager will want to carefully negotiate to ensure project profitability.
Construction contractors land a majority of their jobs through a competitive bidding process.
Clients can structure this process in a few different ways. Still, the two most popular forms of
construction procurement are extending an invitation to bid, and sending a request for proposals.
They seem similar, but there are significant differences between the two.
A request for quote (RFQ) is a document that enables property owners, construction
companies, and contractors to obtain detailed cost information about materials and services.
Typically, businesses use RFQs when they already know what they need and simply want to
evaluate potential costs.
RFIs and RFPs are used at different points in the pre-construction phase of a project. Both
types of requests are looking for solutions to a construction-related problem, but the response to
each one will be very different. In this article, we’ll compare RFI and RFP, and see how each is
used in construction. Oh, and don’t forget about an RFQ…we’ll see how it differs from the
others.
Design-Bid-Build is the most traditional — and most common — project delivery method.
On design-bid-build jobs, the owner contracts separately with a designer/architect and a
contractor. Once the designer completes the design documents, the owner then looks for bids
from contractors to perform the work.
Since the designer and the contractor have not contracted together at all (and have no
obligation to one another), the owner is the one who bears all of the risk when it comes to
providing complete design documents to the contractors. The conventional wisdom here is that
design-bid-build is the project delivery method to most likely result in the lowest total
construction costs since there will be a bidding competition for the construction phase of the
project.
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The design-build project delivery method has the advantage of streamlining communication

between the architects, engineers, contractors, and subcontractors working on a project, and it
potentially leads to cost savings as well. On the other hand, design-build construction can
potentially stifle innovation and may require a more hands-on owner to reduce potential conflicts
of interest.
Construction manager at risk (CMAR) is a method of project delivery in which the
construction manager acts as an agent of the property owner to complete the project within a
guaranteed maximum price.. CMAR is an alternative to other project delivery methods like
design-build or design-bid-build.
With CMAR, the construction manager acts as an advocate for the owner on both design and
construction phases of a project to ensure the costs remain below the guaranteed maximum
price. The maximum price explains why the construction manager is considered “at risk” for the
project: If the project exceeds the limit, the construction manager will be financially liable for
any additional costs
BIDDING FORMS
Annex “A” Bid Form

 Annex “B” Contract Agreement Form
 Annex “C” Omnibus Sworn Statement
 Annex “D” Bank Guarantee Form
 Annex “E” Bid Securing Declaration
 Annex “F” List of Availability of Key Personnel
 Annex “G” List of Major Equipment Units
Annex “H” Performance Securing Declaration
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CE 442

A specification is a detailed description of the dimensions, construction,

CLEARING THE SITE

A construction plan is a written document outlining a project’s process and details. It

Important Things to Review on The Review of Specifications and

What is construction bidding?

 An invitation to bid is a call by clients to contractors to provide specific products or

Steps of an Invitation to Bid

When are invitation to bid used?

 An invitation to bid allows contractors to be part of construction projects. It saves

Cons of an Invitation to Bid

How to write a bid invitation?

10 TIPS TO WIN CONSTRUCTION BIDS

1. UNDERSTAND THE BIDDING PROCESS

3. ACCURATELY ESTIMATE YOUR COSTS

4. BID ON THE RIGHT PROJECTS

6. BID ON THE JOBS IN YOUR NICHE.

7. UNDERSTAND THE RFP

8. HAVE A CLEAR VALUE PROPOSITION

9. BUILT TRUST WITH DECISION-MAKERS

10. PRESENT YOUR BID WELL

III. GENERAL CONDITION

General conditions are essentially the framework of the construction contract

Roles and Works of Parties

Price and Payments

These provisions typically fall under one of three categories:

Suspension and Termination

IV. SPECIAL CONDITION

Section V. Special Conditions of Contract

Notes on the Special Conditions of Contract

(a) Information that complements provisions of Section IV must be incorporated.

(b) Amendments and/or supplements to provisions of Section IV, as necessitated by

Special Conditions of Contract

NOTE: In the case of National Government Agencies, the General

If the Funding Source is a foreign government/foreign or

Delivery and Documents –

For purposes of the Contract, “EXW,” “FOB,” “FCA,” “CIF,” “CIP,”

For foreign Suppliers, state “The delivery terms applicable to the

For domestic Suppliers, state “The delivery terms applicable to this

Delivery of the Goods shall be made by the Supplier in accordance

For Goods supplied from within the Philippines or by domestic

(i) Original and four copies of the Supplier’s invoice showing

For Goods supplied from abroad (excluding domestic Suppliers):

(i) Original and four copies of the Supplier’s invoice showing

For purposes of this Clause the Procuring Entity’s Representative at

The Supplier is required to provide all of the following services,

Select appropriate requirements and delete the rest.

(a) performance or supervision of on-site assembly and/or start-up

for each appropriate unit of the supplied Goods;

The Supplier is required to provide all of the following materials,

Select appropriate requirements and delete the rest.

i. advance notification to the Procuring Entity of the

The Supplier shall carry sufficient inventories to assure ex-stock

Other spare parts and components shall be supplied as promptly as

The Supplier shall provide such packaging of the Goods as is required

The packaging, marking, and documentation within and outside the

A packaging list identifying the contents and quantities of the package

Where the Supplier is required under Contract to deliver the Goods