Proposed Renovation of Former Jacinto Building - Clark Freeport Zone

(c)Include the valuations of approved variations.41.4. The Procuring Entity’s Representative may exclude any item certified ina previous certificate or reduce the proportion of any item previouslycertified in any certificate in the light of later information.42. Retention42.1. The Procuring Entity shall retain from each payment due to theContractor an amount equal to a percentage thereof using the rate asspecified in ITB Sub-Clause 42.2.42.2. Progress payments are subject to retention of ten percent (10%),referred to as the “retention money.” Such retention shall be based onthe total amount due to the Contractor prior to any deduction and shallbe retained from every progress payment until fifty percent (50%) ofthe value of Works, as determined by the Procuring Entity, arecompleted. If, after fifty percent (50%) completion, the Work issatisfactorily done and on schedule, no additional retention shall bemade; otherwise, the ten percent (10%) retention shall again beimposed using the rate specified therefore.42.3. The total “retention money” shall be due for release upon finalacceptance of the Works. The Contractor may, however, request thesubstitution of the retention money for each progress billing withirrevocable standby letters of credit from a commercial bank, bankguarantees or surety bonds callable on demand, of amounts equivalentto the retention money substituted for and acceptable to the ProcuringEntity, provided that the project is on schedule and is satisfactorilyundertaken. Otherwise, the ten (10%) percent retention shall bemade. Said irrevocable standby letters of credit, bank guaranteesand/or surety bonds, to be posted in favor of the Government shall bevalid for a duration to be determined by the concerned implementingoffice/agency or Procuring Entity and will answer for the purpose forwhich the ten (10%) percent retention is intended, i.e., to coveruncorrected discovered defects and third party liabilities.42.4. On completion of the whole Works, the Contractor may substituteretention money with an “on demand” Bank guarantee in a formacceptable to the Procuring Entity.43. Variation Orders43.1. Variation Orders may be issued by the Procuring Entity to cover anyincrease/decrease in quantities, including the introduction of new workitems that are not included in the original contract or reclassification ofwork items that are either due to change of plans, design or alignment70Clark Development CorporationSection IV General Conditions of ContractProposed Renovation of Former Jacinto Building(Motorpool, Records, Warehouses and Maintenance Area)