Republic of the Philippines

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

CAPIZ 2ND DISTRICT ENGINEERING OFFICE
Dumalag, Capiz

September 14, 2023

MEMORANDUM

FOR : SANNY BOY O. OROPEL, CES E

OIC, Regional Director
This Region

SUBJECT : Verification Report on the Project “CONSTRUCTION OF RIVER

CONTROL ALONG PANAY RIVER BASIN, BARANGAY POBLACION
TAKAS, CUARTERO, CAPIZ”

The undersigned conducted verification of the project “Construction of River Control along
Panay River Basin, Barangay Poblacion Takas, Cuartero, Capiz” and herein submits the
report; to wit:

I. Contractual Data

Contract ID
Project ID Component
Project Description
Contract Amount (Original)
Effectivity Date
Expiry Date
Contract Duration
Contractor
: 23GP0044
: P00721998VS-CW1
: Construction of reinforced concrete revetment wall
rested on steel sheet piles
: Php 20,395,630.38
: March 13, 2023
: August 30, 2023
: 171 Calendar Days
: GAA (IT) INTERNATIONAL TRADE WV COMPANY

The objective of this project is to implement measures that will safeguard the riverbank
against erosion and scouring, thereby preserving the integrity of the surrounding
environment and infrastructure.

II. Physical Accomplishment

The contractor has started the implementation of the project with only 24.97%
accomplishment as of today. The only activity was clearing and grubbing, excavation of
unsuitable materials, and driving of 6-meter steel sheet piles instead of 12-meter steel sheet
piles stated in the original contract and program of works.

A test pile was conducted on July 3, 2023, revealing a maximum refusal depth of 6 meters
at the project's beginning and 9 meters in the middle portion. Consequently, the contractor
requested a Variation Order No. 1 to adjust the project's length to accommodate the change
in steel sheet pile lengths to 6-meter and 9-meter as the maximum penetration refusal
depth.

Website: www.dpwh.gov.ph
Tel. No(s).: (036) 620 8609
 Republic of the Philippines
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
CAPIZ 2ND DISTRICT ENGINEERING OFFICE
Dumalag, Capiz

Regarding project progress, a Negative Slippage notice (1st Warning - Early Warning Stage)
was issued on April 11, 2023, indicating a (-) 5.60% slippage as of April 5, 2023. They were
directed to provide a detailed "catch-up" plan on a biweekly basis to rectify the slippage.
Despite receiving this notice on April 14, 2023, the contractor failed to respond.

A subsequent Negative Slippage notice (Final Warning - ICU Stage) was issued on April 21,
2023, reflecting a (-) 11.18% slippage as of April 20, 2023. They were instructed to submit
a more comprehensive activity schedule with weekly physical targets and the necessary
additional resources to address the slippage. However, no response was received from the
contractor to this notice either.

On May 17, 2023, a notice to Terminate the Contract (Terminal Stage) was issued, citing a
(-) 15.64% slippage as of May 16, 2023. It was received by their office dated May 19, 2023.
The contractor was given seven (7) calendar days from receipt of the notice to provide a
"Show Cause" explanation as to why the contract should not be terminated. Regrettably, no
response was received.

Finally, on August 16, 2023, a letter was issued, once again notifying the contractor about
their increasingly severe negative slippage of (-) 67.51%. It was noted that the contractor
had ceased operations on the project site, with no additional progress made during the
specified period. Despite favorable weather conditions, there were few laborers and limited
equipment present at the job site.

III. Recommendation

This Office recommends the default termination of the project because the contractor has
stopped the implementation of the project, absence of visible progress on-site, and lack of
communication/response from them.

ROSA A. PINEDA RICHARD EMMANUEL P. RAGRAGIO

Project Engineer II OIC, District Engineer

R06.13.2 JCSM/RAP/MMDB/REPR

Website: www.dpwh.gov.ph
Tel. No(s).: (036) 620 8609