Contract Implementation

Guidelines for Civil Works

under R.A. 9184

(Annex “E” of the Revised IRR

of RA 9184)
TOPIC OUTLINE:
 Variation Order
 Advance Payment
 Progress Payment
 Retention Money
 Liquidated Damages
 Contract Completion
 Suspension of Work
 Extension of Contract Time
 Warranty
 Contract Termination
VARIATION ORDER
VARIATION ORDERS

Definition: Orders issued by the procuring entity to cover

any increase/decrease in quantities, including the
introduction of new work items that are not included in the
original contract or reclassification of work items that are
either due to change of plans, design or alignment to suit
actual field conditions resulting in disparity between the pre-
construction plans used for purposes of bidding and the "as
staked plans" or construction drawings prepared after a joint
survey by the contractor and the Government after award of
the contract.
VARIATION ORDERS

Restrictions in issuing Variation

Orders

1. the cumulative amount of the positive or additive

Variation Order does not exceed ten percent (10%) of
the original contract price.
2. the addition/deletion of works under Variation
Orders should be within the general scope of the project
as bid and awarded.
3. the scope of works shall not be reduced so as to
accommodate a positive Variation Order.
VARIATION ORDERS
When can the PE issue a Variation Order?
At anytime during contract implementation and in
order to fully meet the requirements of the project
subject to the following conditions:
 there will not be any short changes in the original
design
 it will not affect the structural integrity and
usefulness of the structure
 it is covered by certificate of availability of funds
(CAF)
VARIATION ORDERS
Forms of Variation Orders

CHANGE ORDER
covers any increase/decrease in quantities of
original work items in the contract.

EXTRA WORK ORDER

covers the introduction of new work items

necessary for the completion, improvement or
protection of the project which was not
included as items of work in the original
contract
VARIATION ORDERS
Works that may be subject of Extra Work Order

• subsurface or latent physical conditions at the

site differing materially from those indicated in the
contract

• duly unknown physical conditions at the site of

an unusual nature differing materially from those
ordinarily encountered and generally recognized
as inherent in the work or character provided for
in the contract.
VARIATION ORDERS

• Any cumulative positive Variation Order beyond ten

percent (10%) of the original contract price shall be
subject of another contract to be bid out if the works
are separable from the original contract.
VARIATION ORDERS
• In exceptional cases where it is urgently necessary to
complete the original scope of work, the HOPE may
authorize a positive variation order that will make the
cumulative value of the positive Variation Orders go
beyond ten percent (10%) but not more than twenty
percent (20%) of the original contract price

Provided, however, that appropriate

sanctions shall be imposed on the designer,
consultant or official responsible for the
original detailed engineering design which
failed to consider the Variation Order beyond
ten percent (10%).
PROCEDURE IN FILING AND APPROVAL OF
VARIATION ORDERS

HOPE or
Review by authorized
Contractor
Project representative
files Notice
Engineer/PE’s investigates
of Variation
representative proposed
Variation Order

Approval of Variation
Order by HOPE or Submission
authorized of Findings
representative
TIME FRAME FOR THE PROCESSING OF
VARIATION ORDERS

The timeframe for the processing of Variation Orders

from the preparation up to the approval by the procuring
entity concerned shall not exceed thirty (30)
calendar days.
• processing starts from survey, plotting, design, plan
preparation, volumetric computations, derivation of
new work items, preparation of variation forms
(Variation Order form, Firmed-up quantities & cost,
Justifications per item of work, Itemized Cost of
revision, Comparative Masterlist), review by the
supervisors and approval by the HOPE
ADDITIONAL/EXTRA WORK COSTING

Unit prices shall be derived based on the following:

• For work items which are exactly the same or
similar to those in the original contract, the
applicable unit prices of work items original
contract shall be used
ADDITIONAL/EXTRA WORK COSTING

• For new work items that are not in the original

contract, the unit prices of the new work items shall
be based on the direct unit costs used in the original
contract (e.g., unit cost of cement, rebars, form
lumber, labor rate, equipment rental, mark-up price,
etc.).
ADDITIONAL/EXTRA WORK COSTING

All new components of the new work item shall be fixed

prices, provided the same is acceptable to both the
Government and the contractor, and provided further
that the direct unit costs of new components shall be
based on the contractor's estimate as validated by the
procuring entity concerned via documented canvass
(atleast 3 suppliers) in accordance with existing rules
and regulations. The direct cost of the new work item
shall then be combined with the mark-up factor (i.e.,
taxes and profit) used by the contractor in his bid to
determine the unit price of the new work item.
PAYMENT FOR ANY EXTRA WORK

Request for payment by the contractor for any extra

work shall be accompanied by a statement, with the
approved supporting forms, giving a detailed
accounting and record of amount for which he
claims payment. Said request for payment shall be
included with the contractor's statement for progress
payment
CONDITIONS UNDER WHICH CONTRACTOR IS
TO START WORK UNDER VARIATION ORDER
AND RECEIVE PAYMENTS

GENERAL RULE:
Under no circumstances shall a contractor proceed
to commence work under any Change Order or
Extra Work Order unless it has been approved by
the Head of the Procuring Entity or his duly
authorized representative.
EXCEPTIONS:
The Head of the Procuring Entity or his duly authorized
representative may, subject to the availability of funds,
authorize the immediate start of work under any
Change or Extra Work Order under any or all of the
following conditions:

i) In the event of an emergency where the

prosecution of the work is urgent to avoid detriment
to public service, or damage to life and/or property;
and/or

ii) When time is of the essence.

CONDITIONS FOR THE EXCEPTIONS TO APPLY:

Approval is valid on work done up to the point

where the cumulative increase in value of work on the
project which has not yet been duly fully approved
does not exceed five percent (5%) of the adjusted
original contract price
CONDITIONS FOR THE EXCEPTIONS TO APPLY:

Immediately after the start of work, the

corresponding Change Order or Extra Work Order
shall be prepared and submitted for approval in
accordance with the above rules herein set.
CONDITIONS FOR THE EXCEPTIONS TO APPLY:

Payments for works satisfactorily accomplished

on any Change Order or Extra Work Order may
be made only after approval of the same by the
Head of the Procuring Entity or his duly
authorized representative
CONDITIONS UNDER WHICH CONTRACTOR IS
TO START WORK UNDER VARIATION ORDER
AND RECEIVE PAYMENTS

For a Change Order or Extra Work Order involving a

cumulative amount exceeding five percent (5%) of
the original contract price, no work thereon may be
commenced unless said Change Order or Extra
Work Order has been approved by the Head of the
Procuring Entity or his duly authorized
representative
ADVANCE PAYMENT
ADVANCE PAYMENT

 Amount: not exceeding 15% of the

total contract price

 Manner of payment: lump sum or, at

the most, two installments according to
the schedule identified in the ITB and
other relevant tender documents
ADVANCE PAYMENT

Filing of Written Request by Contractor

Submission of Irrevocable Stand-by Letter of

Credit, bank guarantee or surety bond
callable upon demand

Review of documentary requirements and

preparation of voucher

Payment to the contractor

ADVANCE PAYMENT

The advance payment shall be

repaid/recouped by deducting 15% from
the contractor’s periodic progress
payment a percentage equal to the
percentage of the total contract price
used for the advance payment
ADVANCE PAYMENT:
» As stipulated in the ITB of the Bidding Documents, advance payment shall be processed
in two tranches;
 First Tranche: 7.5%
 Immediately processed after perfection of contract
- Approved CHSP by DOLE or application received by DOLE
- Approved S-Curve/Manpower/Equipment/Const’n Method
 Contractor’s Letter Request
 Surety Bond
 Second Tranche: 7.5%
 Contractor’s Letter Request
 Surety Bond
 IMO Certifications of Mobilized resources pledge to the contract
 Pictures
Notes:
1. Advance payment of 15% maybe granted, in one time, upon submission of all
above documents/requirements
2. No advance payment 2 months after receipt of NTP as indicated in the bid
documents. It will already fall under progress payment if it has accomplishment o
20% or more.
PROGRESS PAYMENT
PROGRESS PAYMENT

Once a month, the contractor may submit a

statement of work accomplished (SWA) or
progress billing and corresponding request for
progress payment for work accomplished.

Note:
 Minimum first progress billing for NIA is atleast 20%
MC 35 s. 2021 :
 Maximum progress billing for NIA is 90% for 100M & below
PROGRESS PAYMENT

The SWA should show the amounts which

the contractor considers itself to be entitled to
up to the end of the month, to cover (a) the
cumulative value of the works it executed to
date, based on the items in the approved Bill
of Quantities, and (b) adjustments made for
approved variation orders executed if any.
PROGRESS PAYMENT

The procuring entity’s representative or

project engineer/PIC shall check the
contractor’s monthly SWA and certify the
amount to be paid to the contractor as
progress payment.

Except as otherwise stipulated in the

Instruction to Bidders, materials and
equipment delivered on the site but not
completely put in place shall not be included
for payment.
PROGRESS PAYMENT
The PE shall deduct the following from the certified
gross amounts to be paid to the contractor as progress
payment:

a) Cumulative value of the work previously certified

and paid for;
b) Portion of the advance payment to be recouped for
the period;
c) Retention money in accordance with the condition of
contract;
d) Amount to cover third party liabilities; and,
e) Amount to cover uncorrected discovered defects in
the works.
PROGRESS/FINAL PAYMENT
CHECKLIST:
1. Contractor’s Request Contractor
2. Contractor's Affidavit Contractor
3. Statement of Work Accomplished (SWA) Contractor
4. Report of Inspection NIA
5. Certificate of Test Run NIA
6. Certificate of Work Completion NIA
7. Volumetric Computation Contractor
8. Test Results Contractor
9. Plans(color coded, under billing only) Contractor
10. Statement of Time Elapsed NIA
11. Approved Time Suspension/Extension & attachments NIA
12. Approved Variation Order & attachments NIA
13. Pictures (Before, During & After) Contractor
14. Satement of Liquidated Damages NIA
Note: 5 sets (COA, Eng'g, Finance, Cashier & IMO)
RETENTION MONEY
RETENTION MONEY

Purpose: To cover uncorrected discovered defects

and third party liabilities

Source: Progress payments/billing

How much: 10% based on the total amount due to

the contractor prior to any deduction
RETENTION MONEY

The retention money shall be retained from every

progress payment until fifty percent (50%) of the value
of works, as determined by the procuring entity, are
completed.

If, after fifty percent (50%) completion, the

work is satisfactorily done and on schedule,
no additional retention shall be made;
otherwise, the ten percent (10%) retention
shall again be imposed using the rate
specified therefor.
RETENTION MONEY

The retention money shall be due for release upon

final acceptance of the works.
The contractor may, however, request the substitution
of the retention money for each progress billing with
irrevocable standby letters of credit of from a
commercial bank, bank guarantees or surety bonds
callable on demand, of amounts equivalent to the
retention money substituted for and acceptable to
Government, provided that the project is on
schedule and is satisfactorily undertaken.
Otherwise, the ten percent (10%) retention shall be
made
RETENTION MONEY

Said irrevocable standby letters of credit, bank

guarantees and/or surety bonds, to be posted in favor
of the Government shall be valid for a duration to be
determined by the concerned implementing
office/agency or procuring entity and will answer for
the purpose for which the ten percent (10%) retention
is intended.
Note:
 Retention money shall be released after one
year if the contract is completed after the expiry
date / incurred liquidated damages. If
completed earlier or on time, retention maybe
released in one month.
LIQUIDATED DAMAGES
LIQUIDATED DAMAGES

When imposed?

Contractor refuses or fails to

satisfactorily complete the work
within the specified contract time,
plus any time extension duly
granted and is hereby in default
under the contract
LIQUIDATED DAMAGES

How much is the Liquidated Damages?

an amount equal to at least one tenth (1/10) of

one (1) percent of the cost of the unperformed
portion of the works for every day of delay , as
provided in the conditions of contract
LIQUIDATED DAMAGES

 In no case however, shall the total sum of

liquidated damages exceed ten percent (10%)
of the total contract price;

 In the event that the liquidated damages

exceeded 10% of the contract price, the
contract shall automatically be taken over by
the procuring entity or award the same to a
qualified contractor and the erring contractor’s
performance security shall be forfeited.
LIQUIDATED DAMAGES

The amount of the forfeited performance security

shall be aside from amount of the liquidated
damages that the contractor shall pay the
government under the provisions of this clause and
impose other appropriate sanctions.
LIQUIDATED DAMAGES
Sample Computation :
Liquidated Damages = 1/10 x 1% x Cost of unperformed
works x no. of days of delay
sample computation
L.D = 1/10 x 1% x (1,000,000)
= 1,000.00 / day x no. of days delayed
= 1,000 x 30 days
= 30,000
CONTRACT COMPLETION
CONTRACT COMPLETION

Once the project reaches an accomplishment of ninety

five (95%) of the total contract amount, the procuring
entity may create an inspectorate team to make
preliminary inspection and submit a punch-list to the
contractor in preparation for the final turnover of the
project.
CONTRACT COMPLETION

Said punch-list will contain, among others, the

remaining works, work deficiencies for necessary
corrections, and the specific duration/time to fully
complete the project considering the approved
remaining contract time.

This, however, shall not preclude the procuring entity's

claim for liquidated damages.
SUSPENSION OF WORK
SUSPENSION OF WORK

Who can suspend the works and in what instances?

 The Procuring Entity

 The contractor or his duly authorized

representative
SUSPENSION OF WORK

The Procuring Entity have the authority to suspend t
he work wholly or partly by written order due to:
 force majeure or fortuitous event
 failure of the contractor to correct bad conditions w/c
are unsafe for workers or for the general public
 failure of the contractor to carry-out valid orders
given by the PE
 failure of the contractor to perform any provisions of
the contract or adjustment of the plans to suit field
conditions as found necessary during construction
SUSPENSION OF WORK

The contractor or his duly authorized representative sh
all have the right to suspend work operation on any or
all activities along the
critical path of activities after 15days
from date of receipt of written notice from the contracto
rtothere
the PE dueright-of-way
exist to: problems w/c prohibit the
contractor from performing work in accordance w/ the
approved const’n schedule
 requisite construction plans w/c must be owner-
furnished are not issued to the contractor precluding
any work called for by such plans
SUSPENSION OF WORK

 peace and order conditions make it extremely

dangerous, if not possible, to work. This must be
certified in writing by the PNP station w/c has
responsibility over the affected area & confirmed by
the DILG Regional Director
 there is failure on the part of the PE to deliver
government-furnished materials & equipment as
stipulated in the contract
SUSPENSION OF WORK
 delay in the payment of the contractor’s claim for
progress billing beyond 45 C.D from the time the
contractor’s claim has been certified to by the PE
authorized representative that the documents are
complete unless there are justifiable reasons w/c shall
be communicated in writing to the contractor
SUSPENSION OF WORK

In case of total suspension, or suspension of activities along

the critical path, which is not due
to any fault of the contractor, the elapsed time between the
effective order of suspending operation and the order to
resume work shall be allowed the contractor by adjusting
the contract time accordingly.
NOTES: NIA MC 169 s.2020:
30 CD – AUTHORITY OF IMO
90 CD – AUTHORITY OF REGIONAL OFFICE
ABOVE 90 CD – CENTRAL OFFICE

ONCE CONTRACT BE RESUMED, THE CONTRACTOR TO SUBMIT

ASAP THE REVISED CONSTRUCTION SCHEDULE. THE REVISED
PHYSICAL TARGET WILL BE INPUTTED ON THE ONLINE CONTRACT
MONITORING SYSTEM OF NIA & WILL BE BASIS OF POST-
QUALIFICATION OF THE WHOLE NIA.
EXTENSION OF CONTRACT TIME
EXTENSION OF CONTRACT TIME

When is extension of contract time be allowed?

Occurrence of such amount of additional work

of any kind or other special circumstances of
any kind whatsoever such as to fairly entitle the
contractor to an extension of contract time, the
procuring entity shall determine the amount of
such extension.
EXTENSION OF CONTRACT TIME

When is extension of contract time

not allowed?

 ordinary unfavorable weather conditions

and

 inexcusable failure or negligence of

contractor to provide the required
equipment, supplies or materials.
EXTENSION OF CONTRACT TIME

Conditions for the approval of extension

of contract time

1. The contractor has notified the PE prior to

the expiration of the contract and within thirty
(30) calendar days after such work has been
commenced or after the circumstances
leading to such claim arisen

Important: Failure to provide such

notice shall constitute a waiver by
the contractor of any claim
EXTENSION OF CONTRACT TIME
Conditions for the approval of extension
of contract time

2. The affected activities fall within the critical

path of the PERT/CPM network

3. The reason given to support the request

for extension was not considered in the
determination of the original contract time
during the conduct of detailed engineering
and in the preparation of the contract
documents as agreed upon by the parties
before contract perfection
EXTENSION OF CONTRACT TIME

Conditions for the approval of extension

of contract time

4. PE has examined the facts and extent of the

delay and the findings thereof justify an
extension
EXTENSION OF CONTRACT TIME
Other instances when extension of contract
time is allowed
• rainy/unworkable days considered unfavorable
for the prosecution of the works at the site,
based on the actual conditions obtained at the
site extension shall be in excess of the number of
Time
rainy/unworkable days pre-determined by the government in
relation to the original contract time during the conduct of
detailed engineering and in the preparation of the contract
documents as agreed upon by the parties before contract
perfection, and/or for equivalent period of delay due to major
calamities such as exceptionally destructive typhoons, floods
and earthquakes
Note:
 The original contract duration given for each contract already includes pre-
determined rainy/unworkable days per month based on PAG-ASA Record
EXTENSION OF CONTRACT TIME
Other instances when extension of contract
time is allowed
• epidemics

• causes such as non-delivery on time of

materials, working drawings, or written
Information to be furnished by the procuring
entity
• non-acquisition of permit to enter private
properties within the right-of-way resulting in
complete paralization of construction
activities
EXTENSION OF CONTRACT TIME
Other instances when extension of contract
time is allowed

• other meritorious causes as determined by the

Government's authorized Engineer and approved
by the procuring entity
EXTENSION OF CONTRACT TIME

If there is a shortage of construction materials, labor

strikes and peace and order situation, may an
extension of contract time be allowed?

Shortage of construction materials, general

labor strikes, and peace and order problems
that disrupt construction operations through no
fault of the contractor may be considered as
additional grounds for extension of contract
time provided they are publicly felt and certified
by appropriate government agencies such as
DTI, DOLE, DILG, and DND, among others.
EXTENSION OF CONTRACT TIME

The written consent of bondsmen must be attached to

any request of the contractor for extension of contract
time and submitted to the procuring entity for
consideration and the validity of the performance
security shall be correspondingly extended.
NOTES: NIA MC 169 s.2020:
30 CD – AUTHORITY OF IMO
90 CD – AUTHORITY OF REGIONAL OFFICE
ABOVE 90 CD – CENTRAL OFFICE

ONCE CONTRACT BE RESUMED, THE CONTRACTOR TO

SUBMIT ASAP THE REVISED CONSTRUCTION SCHEDULE. THE
REVISED PHYSICAL TARGET WILL BE INPUTTED ON THE ONLINE
CONTRACT MONITORING SYSTEM OF NIA & WILL BE BASIS OF
POST-QUAL OF THE WHOLE NIA.
WARRANTY
WARRANTIES
* From construction start up to final acceptance,
Contractor is responsible for:

- Any damage or destruction of the works

except those due to force majeure.

- Safety, protection, security and convenience

of personnel, third parties and public at large,,
the works, equipment and installation affected
by his activities.
* 1 year from project completion to the final
acceptance or defects liability period, contractor
shall:
- Do repair works at his own expense of any damage
on the infrastructure within 90 days from written order
to do so; Procuring entity shall do repairs due to
contractor’s refusal/failure to comply and reimburse
expenses incurred from contractor
- Covered by the performance security
- Contractor’s failure to comply with obligations shall be
ground for forfeiture of Performance Security,
properties subject to attachment or garnishment, &
perpetual disqualification from participation in public
biddings
From final acceptance up to period prescribed,
due to Structural Defects or Structural Failures:
a) Permanent Structures: 15 years Warranty
- Steel/Concrete Bridges, flyovers, aircraft movement
areas, ports, DAMS, Tunnels, filtration & treatment
plants, sewarage system, power plants, transmission &
communication towers, railway system, etc.

b) Semi-permanent Structures: 5 yrs Warranty

- Concrete/asphalt roads, concrete river control,
drainage, Irrigation lined canals, river landing, deep
wells, rock causeway, pedestrian, overpass, etc.
From final acceptance up to period prescribed,
due to Structural Defects or Structural Failures:
c) Other Structures: 2 years Warranty
- Bailey and wooden bridge, shallow wells, spring
developments, etc.

Liable Persons:
Contractor /Consultants /Procuring Entity’s
Representatives (Project manager; Construction
Manager; Supervisors)/ Third Parties/Users.
Warranty Period:
- Effective for 1 year from date of issuance of
Certificate of Final Acceptance, to be returned
after lapse of said period

Form of Warranty:
- Cash or LC (Universal or Commercial Bank)
…….5% of TCP
- Bank Guarantee (Universal or Commercial
Bank)……10% of TCP
- Surety Bond callable on demand, OIC-
certified….30% of TCP
Implementation Provision (Sec 62.2.4 of IRR)
- Structural Defects/Failure occur the
applicable warranty period
- PE to undertake restoration or reconstruction
- PE entitled to full reimbursement, upon
demand, of expenses incurred by parties found
liable for defects
- Forfeiture of warranty securities posted
- Without prejudice to the filing of appropriate
administrative, civil and/or criminal charges
against responsible persons
 CONTRACT ADMINISTRATION

Project Duration Defects Liability Warranty Period

Period = 1 year Permanent
Structures=15 years
CONTRACTAWARD

FINALACCEPTANCE
COMPLETION Semi-Permanent
Structures = 5 years
Other Structures = 2
years
 CONTRACT TERMINATION BY
DEFAULT, UNLAWFUL ACTS OR
INSOLVENCY
CONTRACT TERMINATION FOR DEFAULT,
UNLAWFUL ACTS OR INSOLVENCY
Guidelines on Termination of Contract per GPPB
Resolution No. 018-2004 dated Dec. 22, 2004
By the PE through the HOPE
• while the project is ongoing, negative slippage of
15% or more due to contractor’s fault

• after contract time has expired, negative slippage

of 10% or more in the completion of the work due
to contractor’s fault
CONTRACT TERMINATION FOR DEFAULT,
UNLAWFUL ACTS OR INSOLVENCY

By the PE through the HOPE

• abandonment of work, refusal or failure to

proceed expeditiously and without delay despite
the written notice of PE

• contractor does not have the minimum essential

equipment in accordance with the approved work
plan and equipment deployment schedule
CONTRACT TERMINATION FOR DEFAULT,
UNLAWFUL ACTS OR INSOLVENCY

By the PE through the HOPE

• contractor does not execute the works in

accordance with the contract or persistently or
flagrantly neglects to carry out its obligations
under the contract

• contractor neglects or refuses to remove

materials or to perform a new work that has been
rejected as defective or unsuitable
CONTRACT TERMINATION FOR DEFAULT,
UNLAWFUL ACTS OR INSOLVENCY

By the PE through the HOPE

• contractor sub-lets any part of the contract works
without the approval by the PE

Effect of rescission
• confiscation by the PE of the performance
security and possible recommendation for
blacklisting. Payment will be based on quantum
meruit
OTHER INSTANCES WHEN PE MAY TERMINATE THE
CONTRACT
• The PE, by prima facie evidence, determines that
the contractor has engaged BEFORE or DURING
contract implementation, in unlawful deeds and
behaviors relative to contract acquisition and
implementation such as: corrupt, fraudulent,
collusive or coercive practices; drawing up or
using forged documents; using adulterated
materials, means or methods, or engaging in
production contrary to rules of science or trade;
and, any other act analogous to the foregoing.

• Payment will be based on quantum meruit

OTHER INSTANCES WHEN P.E MAY TERMINATE
THE CONTRACT

• Bankruptcy or insolvency of the

contractor as determined with
finality by a court of competent
jurisdiction

• The termination will be without compensation to

the contractor, provided that such termination will
not prejudice any right of action or remedy which
has accrued or will accrue thereafter to the PE or
the contractor
CONTRACT TERMINATION FOR DEFAULT,
UNLAWFUL ACTS OR INSOLVENCY

By the Contractor
• PE fails to deliver, within a reasonable period of
time, supplies, materials, ROW or other items PE is
obligated to furnish

• disruption of work due to adverse peace and

order situation as certified by AFP Provincial
Commander and approved by DND Secretary
Contractor must serve a written
notice to the PE of its intention
to terminate the contract at least
30 calendar days before its
intended termination. The
contract is deemed terminated if
it is not resumed in 30 calendar
days after receipt of such notice
by the PE.

In cases of termination, PE shall return to the

contractor its performance security and unpaid
claims.
CONTRACT TERMINATION FOR CONVENIENCE

PE, by written notice to the contractor, may

terminate the contract, in whole or in part, at any
time for its convenience in the following instances:

 physical and economic conditions have

significantly changed so as to render the project no
longer economically, financially or technically
feasible as determined by HOPE
CONTRACT TERMINATION FOR CONVENIENCE

 HOPE has determined the existence of

conditions that make the project implementation
impractical or unnecessary, such fortuitous event,
change in laws or government policies

 Funding for the project has been withheld or

reduced by higher authorities through no fault of
the PE
CONTRACT TERMINATION FOR CONVENIENCE

 PE fails to acquire the

necessary ROW

 any other circumstances analogous to the

foregoing
THANK YOU!!!!