21.The billing factor or multiplier refers to a numerical value used to adjust the base rate for 22.
22.Based on Actual Cost" refers to reimbursable costs that are directly tied to
billing purposes in civil engineering projects. This multiplier is derived from various financial
metrics and is typically based on audited financial statements prepared by an independent
auditing or accounting firm/entity.
To calculate the billing factor or multiplier, several factors may be considered, including:
i. Overhead Cost: These are general administrative and management expenses incurred by
the civil engineering firm that are not directly attributable to any specific project. Overhead
costs are typically expressed as a percentage of the total basic salaries of all personnel
employed by the firm. Examples of overhead costs may include office rent, utilities,
insurance, office supplies, and other administrative expenses.
ii. Social Charges: These are expenses related to the welfare and benefits provided to the
staff of the consulting firm, in accordance with both the policies of the firm and any relevant
government regulations. Social charges may include costs such as employee healthcare,
retirement benefits, training programs, and other employee-related expenses aimed at
promoting the well-being and development of the staff.
iii. Management Fee: This fee is calculated as a percentage of the sum of the basic salary,
overhead costs, and social charges. The percentage applied for the management fee may
vary depending on factors such as the complexity of the services rendered and other
considerations. However, it is specified not to exceed fifteen percent (15%) of the total of the
basic salary, overhead costs, and social charges. The management fee represents
compensation for the firm's management and oversight of the project and is intended to
cover the firm's operational costs and generate a reasonable profit margin.
These three components—overhead costs, social charges, and management fee—
comprise a portion of the total billing factor or multiplier used in civil engineering
projects. By including these elements in the billing structure, the firm aims to ensure
that all relevant costs are accounted for while also providing for the well-being of its
employees and maintaining profitability.
specific expenses incurred during the execution of civil engineering services. These
costs must be supported by invoices or other relevant supporting documents to
substantiate their validity. Here's how the specified categories are defined:
i. International Travel: Expenses related to travel outside the country for project
purposes. This includes airfare, accommodation, meals, visas, and other related
costs.
ii. Domestic Travel: Costs associated with travel within the country for project-
related activities. This covers expenses like airfare, ground transportation, lodging,
meals, etc.
iii. Domestic Transportation: Expenses for transporting materials, equipment, or
personnel within the country. This includes costs for vehicle rental, fuel,
maintenance, tolls, and other transportation-related expenses.
23.- iv. Communication Expenses: Costs related to communication tools and
services essential for project coordination and management. This may include
telephone charges, internet services, postage, courier services, etc.
v. Cost of Office/Engineering Supplies and Preparing/Reproducing Documents:
Expenses for purchasing office supplies, engineering tools, and reproducing project-
related documents like drawings, reports, and plans.
vi. Cost of Field Office: Expenses incurred for setting up a temporary office at the
project site, either through rental or construction, to facilitate project operations
and management.
vii. Acquisition of Software Licenses: Costs associated with purchasing licenses for
software tools necessary for project design, analysis, and management.
23-viii. Cost of Other Necessary Items: Any other project-related
expenses not covered in the above categories, certified as necessary
by the relevant agency. This may include specialized equipment,
permits, testing fees, etc.
By categorizing reimbursable costs based on actual expenditures and
requiring proper documentation and Supporting documentation such as
receipts, invoices, and travel logs are necessary to support these
costs., consulting firms can ensure accurate reimbursement from
clients while maintaining transparency and accountability in financial
transactions related to civil engineering projects.
23. 3.Contingency funds are reserved for covering unexpected costs or
additional work that arises during a project, ensuring that it stays within
budget and on schedule. This includes unforeseen expenses, extra
tasks within the project scope, or costs surpassing initial estimates.
These funds act as a safety net, allowing for flexibility and adaptation
to changing circumstances without compromising project quality or
progress.
24-1.Nature of the Assignment: The specific tasks and goals of the project or
assignment play a crucial role in determining consultant rates. More complex or
specialized tasks may warrant higher rates.
2.Level of Work Complexity, Difficulty, and Extent: The complexity, difficulty, and
scale of the work to be performed play a significant role in determining consultant
rates. Tasks that demand advanced skills, problem-solving abilities, or extensive
research and analysis typically command higher rates.
24---3.Educational Attainment, Qualifications, Expertise, and Experience: The
consultant's educational background, qualifications, expertise, and relevant work
experience are key factors in setting rates. Consultants with advanced degrees or
specialized knowledge generally charge higher rates.
4.Prevailing Consultancy Fee and Local Market Rates: Market conditions and
prevailing consultancy fees in the relevant industry and geographic area serve as
benchmarks for setting consultant rates. Rates may be adjusted based on local
market dynamics, competition, and industry standards to ensure competitiveness
and attractiveness to clients.
5.Risks and Inconveniences: Consultants may face risks and inconveniences when
working under challenging conditions such as hardship locations, hazardous
environments, or tight deadlines. Additional compensation may be warranted to
mitigate these risks and inconveniences and ensure consultant satisfaction.
6.Relevant Expenses and Contingency Fees: Other relevant expenses related to the
performance of services, such as reimbursable costs (e.g., travel, accommodations,
materials) and contingency fees (for unforeseen circumstances), should be factored
into consultant rates. This ensures that consultants are adequately compensated for
expenses incurred during project execution.
By considering these factors comprehensively, organizations can establish fair and
competitive rates for individual consultants that reflect the value of their expertise,
the complexity of the work, and the prevailing market conditions. This approach
ensures that consultants are appropriately compensated for their contributions
while also meeting project budget constraints and client expectations.
25-Preparing the Bidding Documents Legal Reference Section 17 of the 2016 IRR
provides the rules in relation to the preparation of the bidding documents.
Bidding documents - are documents issued by the Procuring Entity as the basis for
bids, furnishing all information necessary for a prospective bidder to prepare a bid.
(2016 IRR Section 5)
The Procuring Entity shall make sure that the bidding documents sufficiently and
clearly specify, among others:
26--The Procurement Bidding Documents (PBDs) typically include the following
components:
1. **Request for Expression of Interest (REI)**: A document inviting interested
parties to express their interest in participating in the bidding process for a specific
procurement opportunity.

1.Objectives, Scope, and Expected Outputs/Results: The bidding documents should
clearly outline the goals and purpose of the contract, the scope of work to be
performed, and the expected outputs or results that the winning bidder is expected
to deliver upon completion of the project. This helps potential bidders understand
the project's requirements and enables them to submit accurate proposals.
2.Expected Contract Duration: The bidding documents should specify the duration
of the contract, including the start and end dates or deadlines that need to be met.
This information allows bidders to assess their capacity to commit to the project
within the specified timeframe and plan their resources accordingly.
3.Obligations, Duties, and Functions of the Winning Bidder: The bidding documents
should outline the responsibilities, duties, and functions that the winning bidder will
be expected to fulfill throughout the duration of the contract. This includes specific
tasks, deliverables, reporting requirements, and any other obligations that the
bidder must adhere to.
4.Minimum Eligibility Requirements of Bidders: The bidding documents should
clearly define the minimum eligibility criteria that bidders must meet to participate
in the bidding process. This may include requirements such as financial capability,
technical expertise, experience, and track record. The evaluation of bidders'
eligibility may be determined by the Head of the Procuring Entity (HoPE) based on
pre-defined criteria specified in the bidding documents.
2. **Eligibility Documents**: Documents required from bidders to demonstrate
their eligibility to participate in the bidding process, such as business registration
certificates, financial statements, and other relevant documents.
3. **Eligibility Data Sheet**: A form or document specifying the eligibility criteria
and requirements that bidders must meet to qualify for participation in the bidding
process.
4. **Notice of Eligibility and Short Listing**: Notification to bidders regarding their
eligibility to participate in the bidding process and any shortlisting decisions made
by the procuring entity.
5. **Instructions to Bidders (ITB)**: Detailed instructions outlining the procedures,
rules, and requirements for preparing and submitting bids, as well as the evaluation
criteria and processes.
6. **Bid Data Sheet (BDS)**: A form or document providing specific details and
instructions related to the bid submission, such as deadlines, formats, and required
information.

By ensuring that these elements are clearly defined and adequately communicated
in the bidding documents, the Procuring Entity can facilitate a transparent and
competitive bidding process, minimize misunderstandings, and attract qualified
bidders who are capable of delivering the desired outcomes of the project.
26--7. **General Conditions of Contract (GCC)**: Standard terms and
conditions governing the rights and obligations of the parties involved
in the contract, such as payment terms, dispute resolution
mechanisms, and termination clauses.
8. **Special Conditions of Contract (SCC)**: Additional or specific
terms and conditions that may modify or supplement the general
conditions of the contract, tailored to the specific requirements of the
procurement opportunity.
9. **Technical Proposal – Standard Forms**: Standardized forms or
templates for bidders to submit technical details, specifications,
methodologies, and other technical aspects of their proposed solution
or service.
10. **Financial Proposal – Standard Forms**: Standardized forms or
templates for bidders to submit financial information, including pricing,
cost breakdowns, and other financial details related to their bid.
11. **Terms of Reference**: Detailed specifications or requirements
outlining the scope of work, objectives, deliverables, and other relevant
details of the procurement opportunity.
12. **Appendices**: Additional documents, forms, or annexes that may
be referenced or required as part of the bidding process, such as
sample contracts, project plans, or supplementary information.
These components collectively form the Procurement Bidding
Documents, providing bidders with the necessary information and
guidelines to participate effectively in the procurement process.
27--The following entity involved in the preparation of bidding documents:
1. **The BAC (Bids and Awards Committee)**: is responsible for overseeing the
procurement process, including the preparation of bidding documents. They ensure
that the documents are in line with procurement laws, guidelines, and project
requirements.
2. **The TWG (Technical Working Group)**: The TWG consists of technical experts
who provide input and expertise related to the specific goods, works, or services
being procured. They contribute to the technical aspects of the bidding documents,
ensuring that they accurately reflect the project's needs and specifications.
3. **The BAC Secretariat and/or the Procurement Office/Unit supports the BAC in
administrative tasks related to procurement, including the preparation of bidding
documents. They assist in coordinating the process, organizing meetings, and
ensuring that documents are properly formatted and distributed.
4. **The End-User/PMO (Project Management Office represents the entity or
department that will ultimately benefit from the procurement. They provide input
on the specific requirements and objectives of the project, ensuring that the bidding
documents align with their needs and expectations.
5. **The Technical Experts on the Consulting Services to be Procured**: These are
subject matter experts with specialized knowledge and experience relevant to the
consulting services being procured. They contribute insights and recommendations
to ensure that the bidding documents accurately reflect the technical aspects of the
services required.
Together, these entities collaborate to ensure that bidding documents are
comprehensive, accurate, and aligned with the needs of the project or procurement,
thereby facilitating a transparent and efficient procurement process.
28--28-How are the Bidding Documents prepared?
The preparation of Bidding Documents involves a systematic process to ensure
clarity, transparency, and compliance with regulations. provided and the 2016 IRR
Section 17.1
BAC Secretariat and End-User Unit/PMO Involvement:The BAC Secretariat, in
collaboration with the end-user unit or Project Management Office (PMO), takes the
lead in preparing the Bidding Documents.The Technical Working Group (TWG)
provides assistance and expertise throughout the process.The preparation follows
standard forms and manuals prescribed by the GPPB (Government Procurement
Policy Board).
The Bidding Documents must include the following essential information:
1.ABC (Approved Budget for the Contract) and Source of Funds: The Approved
Budget for the Contract (ABC) and the source of funds must be clearly stated in the
bidding documents.
2.Request for Expression of Interest (REI):Specify the date, time, and place for the
submission of eligibility requirements.
3. Eligibility Requirements: The bidding documents must specify the eligibility
requirements that bidders must meet to participate in the procurement process.
4. Instructions to Bidders (ITB):Include details on the type of evaluation procedure,
criteria for proposal evaluation, post-qualification process, and information on pre-
bid conference (if applicable) submission of bids, and opening of bids.
29-5. Terms of Reference (TOR):Crafted by the end-user/PMO, assisted by technical
experts as needed, and approved by the Head of the Procuring Entity (HoPE) or an
authorized official. And which shall define the following:
the objectives, scope, expected outputs/results,- contract duration,- duties of the
consultant and government counterparts,
30-The minimum qualifications of consultants, such as track record to be determined
by the HoPE; and - The services, facilities and data, if any, to be provided to the
consultants.
30-6. **Form of Bid and Price Form**: Specifies the format or template that bidders
must use when submitting their bids, including how prices should be structured and
presented. This ensures uniformity and clarity in the bidding process, allowing for
easier evaluation of bids.
7. **Completion Schedule**: Outlines the timetable or timeline for the completion
of the project or delivery of goods/services. It includes specific deadlines or
milestones that the winning bidder must meet, helping to manage expectations and
ensure timely project completion.
8.Form,states the amount the security and validity period of bid security;
9. Form, states the amount, and validity of the performance security; This security
serves as a guarantee of the bidder's performance and compliance with the terms of
the contract, ensuring that the procuring entity is protected against any potential
default.and
10. Form of contract, GCC and SCC. the Form of Contract, GCC, and SCC establish the
contractual framework for the procurement process, providing clarity, transparency,
and legal certainty for both the procuring entity and the bidders. These documents
ensure that the rights, responsibilities, and expectations of all parties are clearly
defined and documented, thereby facilitating effective contract management and
project implementation.
31--What is a Bid Security?
-A bid security is a form of guarantee provided by a bidder along with their bid
submission. Its purpose is to ensure that the successful bidder:
1.Will not default on their offer: By providing a bid security, the bidder assures the
procuring entity that they are serious about their bid and will not withdraw or
revoke it during the bidding process.
2.Upon being awarded the contract, the successful bidder is expected to enter into a
formal agreement with the procuring entity within a specified timeframe. The bid
security guarantees that the bidder will enter into the contract within the stipulated
period, typically within ten (10) calendar days from the receipt of the Notice of
31--Who determines the form of the Bid Security to be submitted by
Consultants? In the procurement process involving consultants, the
determination of the form of bid security to be submitted is typically made by
the consultant themselves. The consultant has the autonomy to select the
preferred form of bid security from the options provided in the bidding
documents. They are also responsible for determining the corresponding
amount of bid security they need to submit along with their bid proposal.
32---A pre-procurement conference is a meeting where officials involved in a
procurement project discuss various aspects before the formal process
begins. This includes reviewing project details like the Terms of Reference and
Approved Budget for the Contract, assessing project readiness, evaluating
procurement methods, and confirming budget availability. These conferences
ensure stakeholders are informed and aligned, promoting transparency and
efficiency in procurement procedures.
--When do you conduct a Pre-procurement Conference?
A pre-procurement conference should be conducted before the
advertisement and/or posting of the Request for Expression of Interest (REI).
According to the 2016 Implementing Rules and Regulations (IRR), Section
20.1, it is recommended to hold the pre-procurement conference at least
seven (7) days prior to the advertisement and/or posting of the REI. This
timeframe allows the technical staff enough time to incorporate any
necessary changes, amendments, or revisions to the Bidding Documents
based on the discussions and feedback from the conference.
33---4. Pre-bid Conference: Before the firms submit their proposals, you hold
Award (NOA). Failure to do so may result in forfeiture of the bid security.
33---Competitive bidding is a procurement method open to any interested and
qualified party. It ensures fairness and transparency in the procurement process. All
procurement activities are generally conducted through competitive bidding, except
when alternative methods are specified in Rule XVI of the 2016 Implementing Rules
and Regulations. Procuring entities should allocate sufficient time in their
procurement schedule to conduct competitive bidding effectively.
FOR EXAMPLE:
"Imagine you're in charge of building a bridge, and you need to hire a
consulting firm to help with the design and planning. Competitive bidding is
like opening up the opportunity for any qualified engineering firm to compete
for the job.
Firstly, competitive bidding ensures fairness and transparency. It means that
any civil engineering firm that is interested and meets certain qualifications
can throw their hat in the ring to win the contract. This ensures that the
process is open to everyone, and no one gets an unfair advantage.
Following the steps in competitive bidding , as outlined in the 2016 IRR
Section 5:
1. Advertisement: you publicly announce that you’re looking for a consulting
firm to help with the bridge project. This could be through ads in engineering
magazines, online portals , or in newspapers.
2. Eligibility Screening: Engineering firms interested in the project submit
their qualifications and credentials to make sure they're capable of handling
the job. This might include their experience with similar projects, their team's
expertise, and their financial stability.
a meeting where they can ask questions and get more details about the
project. This ensures that everyone understands what's expected.
5. Receipt and Opening of Bids: Firms submit their proposals, detailing how
they plan to approach the project. These are then opened publicly at a
specified time.
6. Evaluation of Bids: A team of experts reviews each proposal carefully,
considering factors like the firm's approach, their timeline, and their cost
estimate.
7. Negotiations: Sometimes,you might negotiate with one or more firms to
clarify certain aspects of their proposal or to see if they can adjust their offer
to better meet our needs.
8. Post-Qualification: Once you’ve chosen the winning proposal, we double-
check to make sure the firm meets all the necessary requirements and
qualifications.
9. Award of Contract: Finally, you award the contract to the winning firm,
and they get to work on helping us build the bridge.
So, in a nutshell, competitive bidding ensures that we get the best possible
consulting firm for our bridge project, while also making sure the process is
fair and transparent for all involved."
35---what happens if no prospective bidder submits an Expression of
3. Shortlisting: If there are a lot of interested firms, you might narrow down
the list to the most qualified ones based on their submissions.
34--- the REI serves as a formal notice to the public and all interested parties
that the Procuring Entity is looking for potential bidders for a consulting
services project. Think of it as an invitation for firms to express their interest
in bidding for the project.
Now, why do we bother posting the REI? Well, think of it this way: the more
people who know about the project, the better the chances of finding the
right consulting firm for the job. By making the REI widely available, we're
increasing the pool of potential bidders. And when there are more bidders
mean more competition, and more competition leads to better quality
bids and potentially lower costs.
35--Step 2: Issuing the Bidding Documents, Accepting Expressions of
Interest, and Conducting Eligibility Checks.
Now, if you're a prospective bidder interested in a consulting services
project, where can you get the Bidding Documents?
Well, the Procuring Entity, which is the organization conducting the
procurement process, will specify the date and time when the Bidding
Documents will be available. They usually mention this in the Request
for Expression of Interest (REI), which is the document we discussed
earlier.
You can either get the Bidding Documents directly from the Procuring
Entity on the specified date and time, or you can download them for
free from two specific websites. One is the PhilGEPS website, which
stands for Philippine Government Electronic Procurement System. The
other is the website of the Procuring Entity itself.
Interest (EOI) ?
---If no prospective bidder submits an Expression of Interest (EOI), the
Bids and Awards Committee (BAC) will declare a failure of bidding.
They'll then review the project details, including the Terms of Reference
(TOR), contract terms, and evaluation criteria. If necessary, they'll make
revisions to these documents and conduct a re-bidding. This involves
formulating a new Request for Expression of Interest (REI) and re-
advertising or reposting it to attract bidders. It's like hitting the reset
button to give the project another chance to find the right bidder."
36-- When could consultants be hired?
According to the 2016 IRR Annex B,consultants may be hired if the
services they offer require expertise or attention beyond what the
Procuring Entity can provide. This usually happens for projects that are
really big or complex, where we need specialized skills or knowledge
that we don't have in-house.
It's important to note that hiring consultants also fits with the
government's policy of not competing with the private sector. This
means we're recognizing that some projects need outside expertise
and it's more efficient to bring in consultants who specialize in those
areas rather than trying to do everything ourselves.
So, when our civil engineering projects demand skills or knowledge
beyond our own capabilities, hiring consultants is a smart move. It
ensures we're getting the best expertise available and helps us deliver
high-quality results for our projects while also respecting government
policies.
39--To participate in bidding for consulting services
37---who may be hired as consultants?
When it comes to hiring consultants for projects in the Philippines, the
priority is to hire Filipino consultants if they have the expertise needed.
This shows trust in Filipino talent and supports their development.only
if the Head of the Procuring Entity (HoPE) determines that Filipino
consultants lack the necessary expertise can foreign consultants be
considered. However, their hiring is subject to specific documentation
requirements outlined in Section 37.1.4(a)(iv) of the 2016
Implementing Rules and Regulations (IRR). Additionally, if applicable,
foreign consultants must share their knowledge and technology with
the procuring entity to benefit the project.
38-A Procuring Entity, which is an organization responsible for
acquiring goods or services for a project, can choose to hire a joint
venture.This joint venture can either be made up entirely of Filipino
consultants or a mix of Filipino and foreign consultants, depending on
the project's needs.
This preference for Filipino consultants is based on Article XII of the
1987 Constitution of the Philippines. This article directs the government
to prioritize qualified Filipino individuals or entities when granting rights,
privileges, and concessions related to the national economy and
resources. This preference extends to various aspects, including the
purchase of goods, services, and the hiring of consultants, contractors,
and other professionals.
In essence, this provision aims to support and promote Filipino talent
and expertise while still allowing for the involvement of foreign
consultants when necessary for the success of a project.
according to the 2016 IRR (Implementing Rules and
Regulations), the consultant must fall into one of the
following categories:)
1. They must be duly licensed Filipino citizens/sole
proprietorships.
2. They can be partnerships duly organized under the laws
of the Philippines, of which at least sixty percent (60%) of the
interest belongs to Filipino citizens.
3. They can be corporations duly organized under the laws
of the Philippines, of which at least sixty percent (60%) of the
outstanding capital stock belongs to Filipino citizens.
4. They can be cooperatives duly organized under the laws
of the Philippines.
5. They can be persons/entities forming a joint venture,
meaning a group of two or more persons/entities that intend
to be jointly and severally responsible or liable for a
particular contract. However, in this case, Filipino ownership
or interest thereof should be at least sixty percent (60%),
based on the contributions of each member of the joint
venture as specified in their Joint Venture Agreement (JVA).
These criteria ensure that the participation in bidding for
consulting services prioritizes Filipino ownership and
participation, aligning with regulations aimed at supporting
local professionals and businesses.
40---Can a government employee or official
become a consultant of a Procuring Entity?
Yes, a government employee or official can indeed work as a
consultant for a Procuring Entity either on a full-time or part-
time basis. However, there are certain conditions attached to
this:
Full-time Consultant: If a government employee wishes to
serve as a full-time consultant, they must first take a leave of
absence from their government position, whether with or
without pay.
This leave of absence is subject to specific rules:
 It must be contingent upon the needs of the service,
meaning it should not negatively impact the operations
of the government agency where the employee works.
 The discretion to grant vacation leave lies with the
head of the department or agency where the employee
is currently employed.
63---3..If a consultant fails to meet any other obligation 64-- let's discuss contract termination for convenience,
outlined in the contract, the Head of the Procuring Entity especially relevant for civil engineering projects. So, imagine
(HoPE) has the authority to terminate the contract for default. you're working on a project with a Procuring Entity, like a
When this happens: the entity will cancel the contract and government agency or a private company, and suddenly
take back the consultant's performance security. Additionally, they decide they don't need your services anymore, even
the consultant may be blacklisted from future contracts and though you've done nothing wrong. Well, that's where
will only be paid for the work they've completed up to that termination for convenience comes in.
point, based on the principle of quantum meruit, which
means payment for the actual value of the work done. Basically, the Procuring Entity can end the contract at any
time by sending you a written notice. They don't have to
-If the Procuring Entity fails to fulfill its obligations as outlined
blame you or point out any mistakes. They just have to say
in the contract and doesn't fix the issue within 60 days after it's more convenient for them to end the contract. This notice
receiving notice from the consultant, the consultant can will explain how much of the contract is being terminated,
terminate the agreement. However, before terminating, the whether it's the whole thing or just a part of it, and when the
consultant must send a written notice to the Procuring Entity termination takes effect.
stating their intention to terminate at least 30 days before the
intended termination date. It's like if you were hired to build a bridge, but halfway
through, the client decides they don't need it anymore. They
If the contract isn't resumed within 30 calendar days after the can terminate the contract for their convenience, and you'd
Procuring Entity receives the termination notice, it's have to stop working on the bridge.
considered officially terminated. This clause ensures that
both parties have a fair chance to address any issues before Basically, this rule gives the Procuring Entity the flexibility to
terminating the agreement. end the contract if they don't need the consultant anymore,
without blaming the consultant for anything. It allows for
smooth termination of the contract while ensuring fairness to
both parties involved. It's like a 'no hard feelings' way of
ending the agreement."