Asphalt Overlay of CDC Roads - Clark Freeport Zone

Clark Development CorporationClark Freeport Zone, PhilippinesBIDDING DOCUMENTAsphalt Overlay ofCDC RoadsPROJECT LOCATION:Clark Freeport Zone,Philippines

TABLE OF CONTENTSSECTION I. INVITATION TO BID ............................................... 1SECTION II. INSTRUCTIONS TO BIDDERS ................................ 5SECTION III. BID DATA SHEET ................................................ 33SECTION IV. GENERAL CONDITIONS OF CONTRACT .............. 39SECTION V. SPECIAL CONDITIONS OF CONTRACT ................. 77SECTION VI. SPECIFICATIONS ................................................ 81SECTION VII. DRAWINGS ........................................................ 84SECTION VIII. BILL OF QUANTITIES ....................................... 85SECTION IX. BIDDING FORMS ................................................. 92

Section I. Invitation to BidClark Development Corporation 1 Section 1: Invitation to BidAsphalt Overlay of CDC Roads

Clark Development CorporationRepublic of the PhilippinesInvitation to Bid for theAsphalt Overlay of CDC Roads1. The Clark Development Corporation, through the Corporate Capital ExpendituresBudget for Cy 2010 intend to apply the sum of Php 4,507,000.00 being the ApprovedBudget for Contract (ABC) to payments under the contract for the Asphalt Overlay ofCDC Roads. Bids received in excess of the ABC shall be automatically rejected at BidOpening.2. The Clark Development Corporation now invites bids for the Asphalt Overlay of CDCRoads. Completion of the Works is required within six (6) Calendar Days. Bidders shouldhave completed, within ten (10) years from the date of submission and receipt of bids, acontract similar to the Project. The description of an eligible bidder is contained in theBidding Documents, particularly, in Section II. Instruction to Bidders.3. Bidding will be conducted through open competitive bidding procedures using nondiscretionarypass/fail criterion as specified in the Implementing Rules and Regulations(IRR) of Republic Act 9184 (RA 9184), otherwise known as the “Government ProcurementReform Act”.Bidding is restricted to Filipino citizens/sole proprietorships, partnerships, or organizationswith at least seventy five percent (75%) interest or outstanding capital stock belonging tocitizens of the Philippines.4. Interested bidders may obtain further information from Clark DevelopmentCorporation- Bids and Awards Secretariat and inspect the Bidding Documents at theaddress given below from December 14, 2010- January 03, 2011 (9:00 a.m. to 4:00p.m.)Clark Development Corporation 2 Section 1: Invitation to BidAsphalt Overlay of CDC Roads

5. A complete set of Bidding Documents may be purchased by interested Bidders from theaddress below and upon payment of a nonrefundable fee for the Bidding Documents in theamount of Php 5,000.00.It may also be downloaded from the website of the Philippine Government ElectronicProcurement System (PhilGEPS) and the website of the Procuring Entity, provided that biddersshall pay the fee for the Bidding Documents not later than the submission of their bids.6. The Clark Development Corporation- Bids and Awards Committee will hold a Pre-BidConference on December 21, 2010 (10:00 a.m.) at CDC Board Room, Ground Floor Bldg.2125 E. Quirino Avenue corner C.P. Garcia Street, CDC Corporate Center, Clark Freeport Zone,Philippines 2023 which shall be open to all interested parties who have purchased the BiddingDocuments. 17. Bids must be delivered to the address below on or before January 03, 2011 (2:00 p.m.) atCDC Board Room, Ground Floor Bldg. 2125 E. Quirino Avenue corner C.P. Garcia Street, CDCCorporate Center, Clark Freeport Zone, Philippines 2023. All bids must be accompanied by abid security in any of the acceptable forms and in the amount stated in ITB Clause 18.Bids will be opened in the presence of the bidders’ representatives who choose to attend at theaddress below. Late bids shall not be accepted.8. The CDC Minimum Required equipments in good working condition are as follows:CDC Minimum Required Equipment1. Asphalt Paver2. Dump truck3. Pneumatic Tired Roller4. Drum Roller5. Asphalt Distributor6. Air CompressorQuantity1 Unit2 Units1 Unit1 Unit1 Unit1 Unit1 May be deleted in case the ABC is less than One Million Pesos (PhP1,000,000) where the Procuring Entity may not hold a pre-bid conference.Clark Development Corporation 3 Section 1: Invitation to BidAsphalt Overlay of CDC Roads

9. The CDC minimum required Key Personnel with their complete qualifications, Letter toProcuring Entity, Notarized Certificate of Employment, Bio-data and Photocopy of ValidProfessional License (for Professionals) are as follows:1. Project Manager/Engineer2. Materials Engineer duly accredited by DPWH3. Safety Engineer/ Occupational Safety and Health Officer4. Foreman10. The Clark Development Corporation- Bids and Awards Committee reserves the right toaccept or reject any bid, to annul the bidding process, and to reject all bids at any time priorto contract award, without thereby incurring any liability to the affected bidder or bidders.11. For further information, please refer to:Ms. Ma. Zoraida G. Camello (OIC)Office of the Bids and Awards Secretariat2 nd Floor Bldg. 2127 C.P. Garcia StCDC Corporate Center, Clark Freeport Zone, Philippines 2023Tel No. (045) 599-9000 local 932/Telefax No. (045) 599-7028e-mail: bacsecretariat@clark.com.ph website: www.clark.com.phPepito M. GalangBAC-ChairmanClark Development Corporation 4 Section 1: Invitation to BidAsphalt Overlay of CDC Roads

Section II. Instructions to Bidders5

TABLE OF CONTENTSA. GENERAL........................................................................................ 71. Scope of Bid ..........................................................................................72. Source of Funds.....................................................................................73. Corrupt, Fraudulent, Collusive, and Coercive Practices..............................74. Conflict of Interest .................................................................................85. Eligible Bidders ....................................................................................106. Bidder’s Responsibilities........................................................................117. Origin of GOODS and Services ..............................................................138. Subcontracts........................................................................................13B. CONTENTS OF BIDDING DOCUMENTS.................................................... 149. Pre-Bid Conference ..............................................................................1410. Clarification and Amendment of Bidding Documents...............................14C. PREPARATION OF BIDS..................................................................... 1511. Language of Bids .................................................................................1512. Documents Comprising the Bid: Eligibility and Technical Components .....1513. Documents Comprising the Bid: Financial Component ............................1714. Alternative Bids....................................................................................1815. Bid Prices ............................................................................................1816. Bid Currencies .....................................................................................1917. Bid Validity ..........................................................................................1918. Bid Security .........................................................................................1919. Format and Signing of Bids...................................................................2120. Sealing and Marking of Bids..................................................................22D. SUBMISSION AND OPENING OF BIDS .................................................... 2221. Deadline for Submission of Bids ............................................................2222. Late Bids .............................................................................................2323. Modification and Withdrawal of Bids......................................................2324. Opening and Preliminary Examination of Bids ........................................23E. EVALUATION AND COMPARISON OF BIDS ............................................... 2525. Process to be Confidential ....................................................................2526. Clarification of Bids ..............................................................................2527. Detailed Evaluation and Comparison of Bids ..........................................2528. Post Qualification .................................................................................2729. Reservation Clause...............................................................................28F. AWARD OF CONTRACT...................................................................... 2930. Contract Award....................................................................................2931. Signing of the Contract.........................................................................3032. Performance Security ...........................................................................3033. Notice to Proceed.................................................................................326Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

A. General1. Scope of Bid1.1. The Procuring Entity as defined in the BDS, invites bids for theconstruction of Works, as described in Section VI Specifications. Thename and identification number of the Contract is provided in the BDS.1.2. The successful bidder will be expected to complete the Works by theintended completion date specified in SCC Clause 1.17.2. Source of FundsThe Procuring Entity has a budget or has applied for or received funds fromthe Funding Source named in the BDS, and in the amount indicated in theBDS. It intends to apply part of the funds received for the Project, as definedin the BDS, to cover eligible payments under the Contract for the Works.3. Corrupt, Fraudulent, Collusive, and Coercive Practices3.1. The Procuring Entity, as well as bidders and contractors, shall observethe highest standard of ethics during the procurement and execution ofsuch contracts. In pursuance of this policy, the Funding Source:(a)defines, for purposes of this provision, the terms set forth belowas follows:(i)(ii)"corrupt practice" means behavior on the part of officialsin the public or private sectors by which they improperlyand unlawfully enrich themselves, others, or induceothers to do so, by misusing the position in which theyare placed, and includes the offering, giving, receiving, orsoliciting of anything of value to influence the action ofany such official in the procurement process or incontract execution; entering, on behalf of the ProcuringEntity, into any contract or transaction manifestly andgrossly disadvantageous to the same, whether or not thepublic officer profited or will profit thereby, and similaracts as provided in Republic Act 3019;"fraudulent practice" means a misrepresentation of factsin order to influence a procurement process or theexecution of a contract to the detriment of the ProcuringEntity, and includes collusive practices among Bidders(prior to or after Bid submission) designed to establishbid prices at artificial, non-competitive levels and to7Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

deprive the Procuring Entity of the benefits of free andopen competition;(iii)(iv)“collusive practices” means a scheme or arrangementbetween two or more bidders, with or without theknowledge of the Procuring Entity, designed to establishbid prices at artificial, non-competitive levels; and“coercive practices” means harming or threatening toharm, directly or indirectly, persons, or their property toinfluence their participation in a procurement process, oraffect the execution of a contract;(b)(c)will reject a proposal for award if it determines that the bidderrecommended for award has engaged in corrupt or fraudulentpractices in competing for the Contract; andwill declare a firm ineligible, either indefinitely or for a statedperiod of time, to be awarded Contract funded by the FundingSource if it at any time determines that the firm has engaged incorrupt or fraudulent practices in competing or, or in executing,a Contract funded by the Funding Source.3.2. Further, the Procuring Entity will seek to impose the maximum civil,administrative, and/or criminal penalties available under the applicablelaws on individuals and organizations deemed to be involved in any ofthe practices mentioned in ITB Clause 3.1.(a).3.3. Furthermore, the Funding Source and the Procuring Entity reserve theright to inspect and audit records and accounts of a contractor in thebidding for and performance of a contract themselves or throughindependent auditors as reflected in the GCC Clause 33.4. Conflict of Interest4.1. All bidders found to have conflicting interests shall be disqualified toparticipate in the procurement at hand, without prejudice to theimposition of appropriate administrative, civil, and criminal sanctions. ABidder may be considered to have conflicting interests with anotherBidder in any of the events described in paragraphs (a) through (c)and a general conflict of interest in any of the circumstances set out inparagraphs (d) through (g) below:(a)(b)A Bidder has controlling shareholders in common with anotherBidder;A Bidder receives or has received any direct or indirect subsidyfrom any other Bidder;8Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(c)(d)(e)(f)(g)A Bidder has the same legal representative as that of anotherBidder for purposes of this Bid;A Bidder has a relationship, directly or through third parties, thatputs them in a position to have access to information about orinfluence on the bid of another Bidder or influence the decisionsof the Procuring Entity regarding this bidding process. This willinclude a firm or an organization who lends, or temporarilyseconds, its personnel to firms or organizations which areengaged in consulting services for the preparation related toprocurement for or implementation of the project if thepersonnel would be involved in any capacity on the sameproject;A Bidder submits more than one bid in this bidding process.However, this does not limit the participation of subcontractorsin more than one bid;A Bidder who participated as a consultant in the preparation ofthe design or technical specifications of the goods and relatedservices that are the subject of the bid; orA Bidder who lends, or temporary seconds, its personnel tofirms or organizations which are engaged in consulting servicesfor the preparation related to procurement for orimplementation of the project, if the personnel would beinvolved in any capacity on the same project.4.2. In accordance with Section 47 of the IRR-A of RA 9184, all BiddingDocuments shall be accompanied by a sworn affidavit of the Bidderthat it is not related to the Head of the Procuring Entity, members ofthe Bids and Awards Committee (BAC), members of the TechnicalWorking Group (TWG), members of the BAC Secretariat, the head ofthe Project Management Office (PMO) or the end-user unit, and theproject consultants, by consanguinity or affinity up to the third civildegree. On the part of the bidder, this Clause shall apply to thefollowing persons:(a)(b)(c)(d)If the Bidder is an individual or a sole proprietorship, to theBidder himself;If the Bidder is a partnership, to all its officers and members;If the Bidder is a corporation, to all its officers, directors, andcontrolling stockholders; andIf the Bidder is a joint venture (JV), the provisions of items (a),(b), or (c) of this Clause shall correspondingly apply to each ofthe members of the said JV, as may be appropriate.9Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

Relationship of the nature described above or failure to comply withthis Clause will result in the automatic disqualification of a Bidder.5. Eligible Bidders5.1. Unless otherwise indicated in the BDS, the following persons shall beeligible to participate in this Bidding:(a)(b)(c)(d)(e)Duly licensed Filipino citizens/sole proprietorships;Partnerships duly organized under the laws of the Philippinesand of which at least seventy five percent (75%) of the interestbelongs to citizens of the Philippines;Corporations duly organized under the laws of the Philippines,and of which at least seventy five percent (75%) of theoutstanding capital stock belongs to citizens of the Philippines;Cooperatives duly organized under the laws of the Philippines,and of which at least seventy five percent (75%) of the interestbelongs to citizens of the Philippines; andPersons/entities forming themselves into a JV, i.e., a group oftwo (2) or more persons/entities that intend to be jointly andseverally responsible or liable for a particular contract: Provided,however, that, in accordance with Letter of Instructions No.630, Filipino ownership or interest of the joint ventureconcerned shall be at least seventy five percent (75%):Provided, further, that joint ventures in which Filipino ownershipor interest is less than seventy five percent (75%) may beeligible where the structures to be built require the applicationof techniques and/or technologies which are not adequatelypossessed by a person/entity meeting the seventy five percent(75%) Filipino ownership requirement: Provided, finally, that inthe latter case, Filipino ownership or interest shall not be lessthan twenty five percent (25%). For this purpose Filipinoownership or interest shall be based on the contributions ofeach of the members of the joint venture as specified in theirJVA.5.2. The Procuring Entity may also invite foreign bidders when provided forunder any Treaty or International or Executive Agreement as specifiedin the BDS.5.3. Government Corporate Entities may be eligible to participate only ifthey can establish that they (a) are legally and financially autonomous,(b) operate under commercial law, and (c) are not dependent agenciesof the GOP or the Procuring Entity.10Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

5.4. Unless otherwise provided in the BDS, the Bidder must havecompleted at least one contract similar to the Project the value ofwhich, adjusted to current prices using the National Statistics Officeconsumer price index, must be at least equivalent to a percentage ofthe ABC stated in the BDS.For this purpose, contracts similar to the Project shall be thosedescribed in the BDS, and completed within the relevant period statedin the Invitation to Bid and ITB Clause12.1 (a) (iii).5.5. Unless otherwise provided in the BDS, the Bidder must submit acomputation of its Net Financial Contracting Capacity (NFCC) or aCommitment from a Universal or Commercial bank to extend a creditline in its favor if awarded the contract for this project (CLC).The NFCC, computed using the following formula, must be at leastequal to the ABC to be bid:NFCC = [(Current assets minus current liabilities) (K)] minus thevalue of all outstanding or uncompleted portions of the projectsunder ongoing contracts, including awarded contracts yet to bestarted coinciding with the contract for this Project.Where:K = 10 for a contract duration of one year or less, 15 for a contractduration of more than one year up to two years, and 20 for acontract duration of more than two years.The CLC must be at least equal to ten percent (10%) of the ABC forthis Project. If issued by a foreign Universal or Commercial Bank, itshall be confirmed or authenticated by a Universal or CommercialBank. In the case of local government units (LGUs), the Bidder mayalso submit CLC from other banks certified by the Bangko Sentral ngPilipinas (BSP) as authorized to issue such financial instrument.6. Bidder’s Responsibilities6.1. The Bidder or its duly authorized representative shall submit a swornstatement in the form prescribed in Section IX Bidding Forms asrequired in ITB Clause 12.1. (b) (iii).6.2. The Bidder is responsible for the following:(a)(b)Having taken steps to carefully examine all of the BiddingDocuments;Having acknowledged all conditions, local or otherwise, affectingthe implementation of the contract;11Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(c)(d)(e)(f)(g)(h)(i)(j)Having made an estimate of the facilities available and neededfor the contract to be bid, if any; andHaving complied with its responsibility to inquire or secureSupplemental/Bid Bulletin/s as provided under ITB Clause 10.3.Ensuring that it is not “blacklisted” or barred from bidding by theGOP or any of its agencies, offices, corporations, or LGUs,including foreign government/foreign or international financinginstitution whose blacklisting rules have been recognized by theGPPB;Ensuring that each of the documents submitted in satisfaction ofthe bidding requirements is an authentic copy of the original,complete, and all statements and information providedtherein are true and correct;Authorizing the Head of the Procuring Entity or its dulyauthorized representative/s to verify all the documentssubmitted;Ensuring that the signatory is the duly authorized representativeof the Bidder, and granted full power and authority to do,execute and perform any and all acts necessary and/or torepresent the Bidder in the bidding, with the duly notarizedSecretary’s Certificate attesting to such fact, if the Bidder is acorporation, partnership, cooperative, or joint venture;Complying with the disclosure provision under Section 47 of theAct in relation to other provisions of Republic Act 3019; andComplying with existing labor laws and standards, in the case ofprocurement of services.Failure to observe any of the above responsibilities shall be at the riskof the Bidder concerned.6.3. The Bidder, by the act of submitting its bid, shall be deemed to haveinspected the site and determined the general characteristics of thecontract works and the conditions for this Project. Unless otherwiseindicated in the BDS, failure to furnish all information ordocumentation required in this Bidding Documents shall result in therejection of the bid and the disqualification of the Bidder.6.4. It shall be the sole responsibility of the prospective bidder to determineand to satisfy itself by such means as it considers necessary ordesirable as to all matters pertaining to this Project, including: (a) thelocation and the nature of the contract, project, or work; (b) climaticconditions; (c) transportation facilities; (c) nature and condition of the12Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

terrain, geological conditions at the site communication facilities,requirements, location and availability of construction aggregates andother materials, labor, water, electric power and access roads; and (d)other factors that may affect the cost, duration and execution orimplementation of the contract, project, or work.6.5. The Procuring Entity shall not assume any responsibility regardingerroneous interpretations or conclusions by the prospective or eligiblebidder out of the data furnished by the procuring entity.6.6. Before submitting their bids, the Bidders are deemed to have becomefamiliar with all existing laws, decrees, ordinances, acts and regulationsof the Philippines which may affect the contract in any way.6.7. The Bidder shall bear all costs associated with the preparation andsubmission of his bid, and the Procuring Entity will in no case beresponsible or liable for those costs, regardless of the conduct oroutcome of the bidding process.6.8. Bidders should note that the Procuring Entity will only accept bids onlyfrom those that have paid the nonrefundable fee for the BiddingDocuments at the office indicated in the Invitation to Bid.7. Origin of GOODS and ServicesUnless otherwise indicated in the BDS, there is no restriction on the origin ofGoods, or Contracting of Works or Services other than those prohibited by adecision of the United Nations Security Council taken under Chapter VII of theCharter of the United Nations.8. Subcontracts8.1. The Bidder shall specify in its bid all portions of the Works that will besubcontracted, if any, including the entity(ies) to whom each portionwill be subcontracted to, subject to the maximum allowable limit forsubcontracting of Works specified in the BDS. Subcontracting of anyportion of the Works shall not relieve the Bidder from any liability orobligation that may arise from its performance.8.2. Subcontractors must comply with the provisions of ITB Clause 5. Forthis purpose, the Bidder shall include in its bid all the documentsrequired under ITB Clause 12 for any subcontractor. If the ProcuringEntity determines in accordance with ITB Clause 28 that asubcontractor is ineligible, the subcontracting of such portion of theWorks assigned to the ineligible subcontractor shall be disallowed.8.3. Failure of a subcontractor to meet the required qualifications will notaffect the Bidder’s eligibility. However, the portions assigned to theineligible subcontractor shall be performed by the Bidder, or another13Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

subcontractor(s) subject to the same qualifications and approval of theProcuring Entity.9. Pre-Bid ConferenceB. Contents of Bidding Documents9.1. If so specified in the BDS, a pre-bid conference shall be held at thevenue and on the date indicated therein, to clarify and address theBidders’ questions on the technical and financial components of thisProject.9.2. Bidders are encouraged to attend the pre-bid conference to ensurethat they fully understand the Procuring Entity’s requirements. Nonattendanceof the Bidder will in no way prejudice its bid; however, theBidder is expected to know the changes and/or amendments to theBidding Documents discussed during the pre-bid conference.9.3. Any statement made at the pre-bid conference shall not modify theterms of the bidding documents unless such statement is specificallyidentified in writing as an amendment thereto and issued as aSupplemental/Bid Bulletin.10. Clarification and Amendment of Bidding Documents10.1. Bidders who have purchased the Bidding Documents may request forclarification(s) on any part of the Bidding Documents or for aninterpretation. Such a request must be in writing and submitted to theProcuring Entity at the address indicated in the BDS at least ten (10)calendar days before the deadline set for the submission and receipt ofBids.10.2. Supplemental/Bid Bulletins may be issued upon the Procuring Entity’sinitiative for purposes of clarifying or modifying any provision of theBidding Documents not later than seven (7) calendar days before thedeadline for the submission and receipt of Bids. Any modification tothe Bidding Documents shall be identified as an amendment.10.3. Any Supplemental/Bid Bulletin issued by the BAC shall also be postedon the Philippine Government Electronic Procurement System(PhilGEPS) and the website of the Procuring Entity concerned, ifavailable. It shall be the responsibility of all Bidders who secure theBidding Documents to inquire and secure Supplemental/Bid Bulletinsthat may be issued by the BAC. However, bidders who have submittedbids before the issuance of the Supplemental/Bid Bulletin must beinformed and allowed to modify or withdraw their bids in accordancewith ITB Clause 23.14Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

11. Language of BidsC. Preparation of BidsThe Bid, as well as all correspondence and documents relating to the Bidexchanged by the Bidder and the Procuring Entity, shall be written in English.Supporting documents and printed literature furnished by the Bidder may bein another language provided they are accompanied by an accuratetranslation in English certified by the appropriate embassy or consulate in thePhilippines, in which case the English translation shall govern, for purposes ofinterpretation of the Bid.12. Documents Comprising the Bid: Eligibility and TechnicalComponents12.1. Unless otherwise indicated in the BDS, the first envelope shall containthe following eligibility and technical documents:(a) Eligibility Documents –Class "A" Documents:(i)(ii)(iii)Registration certificate from SEC, Department of Tradeand Industry (DTI) for sole proprietorship, or CDA forcooperatives, or any proof of such registration as statedin the BDS;Mayor’s permit issued by the city or municipality wherethe principal place of business of the prospective bidder islocated;Statement of all its on-going and completed governmentand private contracts within ten (10) years from thesubmission of bids, unless otherwise stated in the BDS,including contracts awarded but not yet started, if any.The statement shall include, for each contract, thefollowing:(iii.1) name of the contract;(iii.2) date and status of the contract;(iii.3) contract duration;(iii.4) owner’s name and address;(iii.5) nature of work;15Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(iii.6) contractor’s role (whether sole contractor,subcontractor, or partner in a JV) and percentageof participation;(iii.7) total contract value at award;(iii.8) date of completion or estimated completion time;(iii.9) total contract value at completion, if applicable;(iii.10) percentages of planned and actualaccomplishments, if applicable;(iii.11) value of outstanding works, if applicable;(iii.12) the statement shall be supported by the notices ofaward and/or notices to proceed issued by theowners; and(iii.13) the statement shall be supported by theConstructors Performance Evaluation System(CPES) rating sheets, and/or certificates ofcompletion and owner’s acceptance, if applicable;(iv)(v)(vi)Unless otherwise provided in the BDS, valid PhilippineContractors Accreditation Board (PCAB) license andregistration for the type and cost of the contract for thisProject;Audited financial statements, showing, among others, theprospective total and current assets and liabilities,stamped “received” by the BIR or its duly accredited andauthorized institutions, for the preceding calendar yearwhich should not be earlier than two (2) years from thedate of bid submission;NFCC computation or CLC in accordance with ITB Clause5; andClass "B" Document:(vii)If applicable, valid Joint Venture Agreement (JVA) or, inlieu thereof, duly notarized statements from all thepotential joint venture partners stating that they willenter into and abide by the provisions of the JVA in theinstance that the bid is successful shall be included in thebid.16Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

14. Alternative Bids14.1. Alternative Bids shall be rejected. For this purpose, alternative bid is anoffer made by a Bidder in addition or as a substitute to its original bidwhich may be included as part of its original bid or submittedseparately therewith for purposes of bidding. A bid with options isconsidered an alternative bid regardless of whether said bid proposal iscontained in a single envelope or submitted in two (2) or moreseparate bid envelopes.14.2. Bidders shall submit offers that comply with the requirements of theBidding Documents, including the basic technical design as indicated inthe drawings and specifications. Unless there is a value engineeringclause in the BDS, alternative bids shall not be accepted.14.3. Each Bidder shall submit only one Bid, either individually or as apartner in a JV. A Bidder who submits or participates in more than onebid (other than as a subcontractor if a subcontractor is permitted toparticipate in more than one bid) will cause all the proposals with theBidder’s participation to be disqualified. This shall be without prejudiceto any applicable criminal, civil and administrative penalties that maybe imposed upon the persons and entities concerned.15. Bid Prices15.1. The contract shall be for the whole Works, as described in ITB Clause1.1., based on the priced Bill of Quantities submitted by the Bidder.15.2. The Bidder shall fill in rates and prices for all items of the Worksdescribed in the Bill of Quantities. Bids not addressing or providing allof the required items in the Bidding Documents including, whereapplicable, bill of quantities, shall be considered non-responsive and,thus, automatically disqualified. In this regard, where a required item isprovided, but no price is indicated, the same shall be considered asnon-responsive, but specifying a "0" (zero) for the said item wouldmean that it is being offered for free to the Government.15.3. All duties, taxes, and other levies payable by the Contractor under theContract, or for any other cause, prior to the deadline for submission ofbids, shall be included in the rates, prices, and total bid price submittedby the Bidder.15.4. Unless otherwise provided in the BDS, all bid prices for the givenscope of work in the contract as awarded shall be considered as fixedprices, and therefore not subject to price escalation during contractimplementation, except under extraordinary circumstances as indicated18Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

16. Bid Currenciesin the BDS and specified in GCC Clause 47 and its corresponding SCCprovision.16.1. All bid prices shall be quoted in Philippine Pesos unless otherwiseprovided in the BDS. However, for purposes of bid evaluation, bidsdenominated in foreign currencies shall be converted to Philippinecurrency based on the exchange rate prevailing on the day of the Bidopening.16.2. If so allowed in accordance with ITB Clause 17.1, the Procuring Entityfor purposes of bid evaluation and comparing the bid prices willconvert the amounts in various currencies in which the bid price isexpressed to Philippine Pesos at the exchange rate as published in theBSP reference rate bulletin on the day of the bid opening.16.3. Unless otherwise specified in the BDS, payment of the contract priceshall be made in Philippine Pesos.17. Bid Validity17.1. Bids shall remain valid for the period specified in the BDS which shallnot exceed one hundred twenty (120) calendar days from the date ofthe opening of bids.17.2. In exceptional circumstances, prior to the expiration of the bid validityperiod, the Procuring Entity may request Bidders to extend the periodof validity of their bids. The request and the responses shall be madein writing. The bid security described in ITB Clause 18 should also beextended corresponding to the extension of the bid validity period atthe least. A Bidder may refuse the request without forfeiting its bidsecurity, but his bid shall no longer be considered for further evaluationand award. A Bidder granting the request shall not be required orpermitted to modify its bid.18. Bid Security18.1. The bid security, issued in favor of the Procuring Entity, in the amountstated in the BDS shall be equal to the percentage of the ABC inaccordance with the following schedule:(a)Form of Bid SecurityCash, cashier’s/manager’s check,bank draft/guarantee confirmedby a Universal or CommercialBank;Clark Development Corporation19Amount of Bid Security(Equal to Percentage of theABC)Two percent (2%)Section II Instructions to BiddersAsphalt Overlay of CDC Roads

(b) Irrevocable letter of credit issuedby a Universal or CommercialBank: provided, however, that itshall be confirmed orauthenticated by a Universal orCommercial Bank, if issued by aforeign bank;(c) Surety bond callable upondemand issued by a surety orinsurance company duly certifiedby the Insurance Commission asauthorized to issue such security;and/or(d) Any combination of theforegoing.Five percent (5%)Proportionate to share of formwith respect to total amount ofsecurityFor biddings conducted by local government units, the Bidder may alsosubmit bid securities in the form of cashier’s/manager’s check, bankdraft/guarantee, or irrevocable letter of credit from other banks certifiedby the BSP as authorized to issue such financial statement.18.2. The bid security should be valid for the period specified in the BDS.Any bid not accompanied by an acceptable bid security shall berejected by the Procuring Entity as non-responsive.18.3. No bid securities shall be returned to bidders after the opening of bidsand before contract signing, except to those that failed or declared aspost-disqualified, upon submission of a written waiver of their right tofile a motion for reconsideration and/or protest. Without prejudice onits forfeiture, Bid Securities shall be returned only after the bidder withthe Lowest Calculated Responsive Bid has signed the contract andfurnished the Performance Security, but in no case later than theexpiration of the Bid Security validity period indicated in the BDS.18.4. Upon signing and execution of the contract, pursuant to ITB Clause31, and the posting of the performance security, pursuant to ITBClause 32, the successful Bidder’s Bid security will be discharged, butin no case later than the Bid security validity period as indicated in theBDS.18.5. The bid security may be forfeited:(a)if a Bidder:(i)withdraws its Bid during the period of Bid validityspecified by the Bidder on the Bid Form;20Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(ii)(iii)(iv)does not accept the correction of errors pursuant to ITBClause 27.3 (b);fails to submit the requirements within the prescribedperiod, or a finding against their veracity, as stated inITB Clause 34.2; orany other reason stated in the BDS.(b)if the successful Bidder:(i)(ii)(iii)fails to sign the contract in accordance with ITB Clause31;fails to furnish performance security in accordance withITB Clause 32; orany other reason stated in the BDS.19. Format and Signing of Bids19.1. Bidders shall submit their bids through their duly authorizedrepresentative using the appropriate forms provided in Section IXBidding Forms on or before the deadline specified in the ITB Clauses21 in two (2) separate sealed bid envelopes, and which shall besubmitted simultaneously. The first shall contain the technicalcomponent of the bid, including the eligibility requirements under ITBClause 12, and the second shall contain the financial component of thebid.19.2. Forms as mentioned in ITB Clause 19.1 must be completed withoutany alterations to their format, and no substitute form shall beaccepted. All blank spaces shall be filled in with the informationrequested.19.3. The Bidder shall prepare an original of the first and second envelopesas described in ITB Clauses 12 and 13. In addition, the Bidder shallsubmit copies of the first and second envelopes. In the event of anydiscrepancy between the original and the copies, the originalshall prevail.19.4. The bid, except for un-amended printed literature, shall be signed, andeach and every page thereof shall be initialed, by the duly authorizedrepresentative/s of the Bidder.19.5. Any interlineations, erasures, or overwriting shall be valid only if theyare signed or initialed by the duly authorized representative/s of theBidder.21Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

20. Sealing and Marking of Bids20.1. Unless otherwise indicated in the BDS, Bidders shall enclose theiroriginal eligibility and technical documents described in ITB Clause 12,in one sealed envelope marked “ORIGINAL - TECHNICALCOMPONENT”, and the original of their financial component in anothersealed envelope marked “ORIGINAL - FINANCIAL COMPONENT”,sealing them all in an outer envelope marked “ORIGINAL BID”.20.2. Each copy of the first and second envelopes shall be similarly sealedduly marking the inner envelopes as “COPY NO. ___ - TECHNICALCOMPONENT” and “COPY NO. ___ – FINANCIAL COMPONENT” and theouter envelope as “COPY NO. ___”, respectively. These envelopescontaining the original and the copies shall then be enclosed in onesingle envelope.20.3. The original and the number of copies of the Bid as indicated in theBDS shall be typed or written in indelible ink and shall be signed bythe bidder or its duly authorized representative/s.20.4. All envelopes shall:(a)(b)(c)(d)(e)contain the name of the contract to be bid in capital letters;bear the name and address of the Bidder in capital letters;be addressed to the Procuring Entity’s BAC in accordance withITB Clause 1.1.;bear the specific identification of this bidding process indicatedin the ITB Clause1.2; andbear a warning “DO NOT OPEN BEFORE…” the date and time forthe opening of bids, in accordance with ITB Clause 21.20.5. If bids are not sealed and marked as required, the Procuring Entity willassume no responsibility for the misplacement or premature opening ofthe bid.D. Submission and Opening of Bids21. Deadline for Submission of BidsBids must be received by the Procuring Entity’s BAC at the address and on orbefore the date and time indicated in the BDS.22Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

22. Late BidsAny bid submitted after the deadline for submission and receipt of bidsprescribed by the Procuring Entity, pursuant to ITB Clause 21, shall bedeclared “Late” and shall not be accepted by the Procuring Entity.23. Modification and Withdrawal of Bids23.1. The Bidder may modify its bid after it has been submitted; providedthat the modification is received by the Procuring Entity prior to thedeadline prescribed for submission and receipt of bids. The Bidder shallnot be allowed to retrieve its original bid, but shall be allowed tosubmit another bid equally sealed, properly identified, linked to itsoriginal bid marked as “TECHNICAL MODIFICATION” or “FINANCIALMODIFICATION” and stamped “received” by the BAC. Bid modificationsreceived after the applicable deadline shall not be considered and shallbe returned to the Bidder unopened.23.2. A Bidder may, through a letter of withdrawal, withdraw its Bid after ithas been submitted, for valid and justifiable reason; provided that theletter of withdrawal is received by the Procuring Entity prior to thedeadline prescribed for submission and receipt of bids.23.3. Bids requested to be withdrawn in accordance with ITB Clause 23.1shall be returned unopened to the Bidders. A Bidder may also expressits intention not to participate in the bidding through a letter whichshould reach and be stamped by the BAC before the deadline forsubmission and receipt of bids. A Bidder that withdraws its bid shall notbe permitted to submit another bid, directly or indirectly, for the samecontract.23.4. No bid may be modified after the deadline for submission of bids. Nobid may be withdrawn in the interval between the deadline forsubmission of bids and the expiration of the period of bid validityspecified by the Bidder on the Financial Bid Form. Withdrawal of a bidduring this interval shall result in the forfeiture of the Bidder’s bidsecurity, pursuant to ITB Clause 18.5, and the imposition ofadministrative, civil, and criminal sanctions as prescribed by RA 9184and its IRR.24. Opening and Preliminary Examination of Bids24.1. The BAC shall open the first bid envelopes of Bidders in public asspecified in the BDS to determine each Bidder’s compliance with thedocuments prescribed in ITB Clause 12. For this purpose, the BACshall check the submitted documents of each bidder against a checklistof required documents to ascertain if they are all present, using a nondiscretionary“pass/fail” criterion. If a bidder submits the requireddocument, it shall be rated “passed” for that particular requirement. In23Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

this regard, bids that fail to include any requirement or are incompleteor patently insufficient shall be considered as “failed”. Otherwise, theBAC shall rate the said first bid envelope as “passed”.24.2. Immediately after determining compliance with the requirements in thefirst envelope, the BAC shall forthwith open the second bid envelope ofeach remaining eligible bidder whose first bid envelope was rated“passed”. The second envelope of each complying bidder shall beopened within the same day. In case one or more of the requirementsin the second envelope of a particular bid is missing, incomplete orpatently insufficient, and/or if the submitted total bid price exceeds theABC unless otherwise provided in ITB Clause13.2, the BAC shall ratethe bid concerned as “failed”. Only bids that are determined to containall the bid requirements for both components shall be rated “passed”and shall immediately be considered for evaluation and comparison.24.3. Letters of withdrawal shall be read out and recorded during bidopening, and the envelope containing the corresponding withdrawn bidshall be returned to the Bidder unopened. If the withdrawing Bidder’srepresentative is in attendance, the original bid and all copies thereofshall be returned to the representative during the bid opening. If therepresentative is not in attendance, the Bid shall be returned unopenedby registered mail. The Bidder may withdraw its bid prior to thedeadline for the submission and receipt of bids, provided that thecorresponding letter of withdrawal contains a valid authorizationrequesting for such withdrawal, subject to appropriate administrativesanctions.24.4. If a Bidder has previously secured a certification from the ProcuringEntity to the effect that it has previously submitted the aboveenumeratedClass “A” Documents, the said certification may besubmitted in lieu of the requirements enumerated in ITB Clause12.1(a), items (i) to (vi).24.5. In the case of an eligible foreign Bidder as described in ITB Clause 5,the Class “A” Documents enumerated in ITB Clause 12.1(a) may besubstituted with the appropriate equivalent documents, if any, issuedby the country of the foreign Bidder concerned.24.6. Each partner of a joint venture agreement shall likewise submit thedocuments required in ITB Clauses 12.1(a)(i) and 12.1(a)(ii).Submission of documents required under ITB Clauses 12.1 (a) (iii) to12.1. (a) (vi) by any of the joint venture partners constitutescompliance.24.7. A Bidder determined as “failed” has three (3) calendar days uponwritten notice or, if present at the time of bid opening, upon verbalnotification within which to file a request for reconsideration with theBAC: Provided, however, that the request for reconsideration shall notClark Development Corporation24Section II Instructions to BiddersAsphalt Overlay of CDC Roads

e granted if it is established that the finding of failure is due to thefault of the Bidder concerned: Provided, further, that the BAC shalldecide on the request for reconsideration within seven (7) calendardays from receipt thereof. If a failed Bidder signifies his intent to file arequest for reconsideration, the BAC shall keep the bid envelopes ofthe said failed Bidder unopened and/or duly sealed until such time thatthe request for reconsideration or protest has been resolved.24.8. The Procuring Entity shall prepare the minutes of the proceedings ofthe bid opening that shall include, as a minimum: (a) names ofBidders, their bid price, bid security, findings of preliminaryexamination; and (b) attendance sheet. The BAC members shall signthe abstract of bids as read and the observers may witness the same.E. Evaluation and Comparison of Bids25. Process to be Confidential25.1. Members of the BAC, including its staff and personnel, as well as itsSecretariat and TWG, are prohibited from making or accepting any kindof communication with any bidder regarding the evaluation of theirbids until the issuance of the Notice of Award, unless otherwiseallowed in the BDS.25.2. Any effort by a bidder to influence the Procuring Entity in the ProcuringEntity’s decision in respect of Bid evaluation, Bid comparison orcontract award will result in the rejection of the Bidder’s Bid.26. Clarification of BidsTo assist in the evaluation, comparison and post-qualification of the bids, thePurchaser may ask in writing any Bidder for a clarification of its bid. Allresponses to requests for clarification shall be in writing. Any clarificationsubmitted by a Bidder in respect to its bid and that is not in response to arequest by the Procuring Entity shall not be considered.27. Detailed Evaluation and Comparison of Bids27.1. The Procuring Entity will undertake the detailed evaluation andcomparison of Bids which have passed the opening and preliminaryexamination of Bids, pursuant to ITB Clause 24, in order to determinethe Lowest Calculated Bid.27.2. In evaluating the Bids to get the Lowest Calculated Bid, the ProcuringEntity shall undertake the following:(a)The detailed evaluation of the financial component of the bids,to establish the correct calculated prices of the bids; and25Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(b)The ranking of the total bid prices as so calculated from thelowest to highest. The bid with the lowest price shall beidentified as the Lowest Calculated Bid.27.3. The Procuring Entity's BAC shall immediately conduct a detailedevaluation of all bids rated “passed,” using non-discretionary “pass/fail”criterion. Unless otherwise specified in the BDS, the BAC shall considerthe following in the evaluation of bids:(a)(b)Completeness of the bid. Unless the ITB specifically allowspartial bids, bids not addressing or providing all of the requireditems in the Schedule of Requirements including, whereapplicable, bill of quantities, shall be considered non-responsiveand, thus, automatically disqualified. In this regard, where arequired item is provided, but no price is indicated, the sameshall be considered as non-responsive, but specifying a "0"(zero) for the said item would mean that it is being offered forfree to the Procuring Entity; andArithmetical corrections. Consider computational errors andomissions to enable proper comparison of all eligible bids. Anyadjustment shall be calculated in monetary terms to determinethe calculated prices. It may also consider bid modifications ifexpressly allowed in the Bidding Documents.27.4. Based on the detailed evaluation of bids, those that comply with theabove-mentioned requirements shall be ranked in the ascending orderof their total calculated bid prices, as evaluated and corrected forcomputational errors, discounts and other modifications, to identify theLowest Calculated Bid. Total calculated bid prices, as evaluated andcorrected for computational errors, discounts and other modifications,which exceed the ABC shall not be considered.27.5. Unless otherwise indicated in the BDS, the Procuring Entity’sevaluation of bids shall only be based on the bid price quoted in theFinancial Bid Form27.6. Bids shall be evaluated on an equal footing to ensure fair competition.For this purpose, all bidders shall be required to include in their bidsthe cost of all taxes, such as, but not limited to, value added tax (VAT),income tax, local taxes, and other fiscal levies and duties which shallbe itemized in the bid form and reflected in the detailed estimates.Such bids, including said taxes, shall be the basis for bid evaluationand comparison.26Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

28. Post Qualification28.1. The Procuring Entity shall determine to its satisfaction whether theBidder that is evaluated as having submitted the Lowest Calculated Bidcomplies with and is responsive to all the requirements and conditionsspecified in ITB Clauses 5, 12, and 13.28.2. Within a non-extendible period of three (3) calendar days from receiptby the Bidder of the notice from the BAC that it is the LCRB, the Biddershall submit the following documentary requirements:(a) Tax clearance per Executive Order 398, Series of 2005;(b)(c)(d)Latest income and business tax returns per Revenue Regulations3-2005;Certificate of Phil-GEPS Registration; andOther appropriate licenses and permits required by law andstated in the BDS.Failure of the Bidder declared as LCB to duly submit the requirementsunder this Clause or a finding against the veracity of such, shall beground for forfeiture of the bid security and disqualification of theBidder for award.28.3. The determination shall be based upon an examination of thedocumentary evidence of the Bidder’s qualifications submitted pursuantto ITB Clauses 12 and 13, as well as other information as theProcuring Entity deems necessary and appropriate, using a nondiscretionary“pass/fail” criterion.28.4. If the BAC determines that the Bidder with the Lowest Calculated Bidpasses all the criteria for post-qualification, it shall declare the said bidas the Lowest Calculated Responsive Bid, and recommend to the Headof the Procuring Entity the award of contract to the said Bidder at itssubmitted price or its calculated bid price, whichever is lower.28.5. A negative determination shall result in rejection of the Bidder’s Bid, inwhich event the Procuring Entity shall proceed to the next LowestCalculated Bid to make a similar determination of that Bidder’scapabilities to perform satisfactorily. If the second Bidder, however,fails the post qualification, the procedure for post qualification shall berepeated for the Bidder with the next Lowest Calculated Bid, and so onuntil the Lowest Calculated and Responsive Bid is determined forcontract award.28.6. Within a period not exceeding seven (7) calendar days from the date ofreceipt of the recommendation of the BAC, the Head of the Procuring27Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

Entity shall approve or disapprove the said recommendation. In thecase of government owned and government-owned and/or -controlledcorporations (GOCCs) and government financial institutions (GFIs), theperiod provided herein shall be fifteen (15) calendar days.29. Reservation Clause29.1. Notwithstanding the eligibility or post-qualification of a bidder, theProcuring Entity concerned reserves the right to review itsqualifications at any stage of the procurement process if it hasreasonable grounds to believe that a misrepresentation has been madeby the said bidder, or that there has been a change in the Bidder’scapability to undertake the project from the time it submitted itseligibility requirements. Should such review uncover anymisrepresentation made in the eligibility and bidding requirements,statements or documents, or any changes in the situation of the Bidderwhich will affect its capability to undertake the project so that it failsthe preset eligibility or bid evaluation criteria, the Procuring Entity shallconsider the said Bidder as ineligible and shall disqualify it fromsubmitting a bid or from obtaining an award or contract.29.2. Based on the following grounds, the Procuring Entity reserves the rightto reject any and all Bids, declare a Failure of Bidding at any time priorto the contract award, or not to award the contract, without therebyincurring any liability, and make no assurance that a contract shall beentered into as a result of the bidding:(a)(b)(c)If there is prima facie evidence of collusion between appropriatepublic officers or employees of the Procuring Entity, or betweenthe BAC and any of the bidders, or if the collusion is between oramong the bidders themselves, or between a bidder and a thirdparty, including any act which restricts, suppresses or nullifies ortends to restrict, suppress or nullify competition;If the Procuring Entity’s BAC is found to have failed in followingthe prescribed bidding procedures; orFor any justifiable and reasonable ground where the award ofthe contract will not redound to the benefit of the Governmentas follows:(i)(ii)If the physical and economic conditions have significantlychanged so as to render the project no longereconomically, financially or technically feasible asdetermined by the head of the procuring entity;If the project is no longer necessary as determined bythe head of the procuring entity; and28Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

(iii)If the source of funds for the project has been withheldor reduced through no fault of the Procuring Entity.29.3. In addition, the Procuring Entity may likewise declare a failure ofbidding when:(a)(b)(c)(d)No bids are received;All prospective bidders are declared ineligible;All bids fail to comply with all the bid requirements or fail postqualification;orThe bidder with the Lowest Calculated Responsive Bid refuses,without justifiable cause to accept the award of contract, and noaward is made.30. Contract AwardF. Award of Contract30.1. Subject to ITB Clause 28, the Procuring Entity shall award the contractto the Bidder whose Bid has been determined to be substantiallyresponsive and has been determined to be the Lowest Calculated andResponsive Bid (LCRB).30.2. Prior to the expiration of the period of Bid validity, the Procuring Entityshall notify the successful Bidder in writing that its Bid has beenaccepted, through a Notice of Award received personally or sent byregistered mail or electronically, receipt of which must be confirmed inwriting within two (2) days by the LCRB and submitted personally orsent by registered mail or electronically to the Procuring Entity.30.3. Notwithstanding the issuance of the Notice of Award, award of contractshall be subject to the following conditions:(a)Submission of the following documents within the prescribedperiod from receipt by the Bidder of the notice that it has theLowest Calculated and Responsive Bid:(i)(ii)Valid JVA, if applicable, within ten (10) calendar days;Valid PCAB license and registration for the type and costof the contract to be bid for foreign bidders, within thirty(30) calendar days, if allowed under a Treaty orInternational or Executive Agreement mentioned in ITBClause 12.1. (a) (iv);(b)Clark Development CorporationPosting of the performance security in accordance with ITBClause 32;29Section II Instructions to BiddersAsphalt Overlay of CDC Roads

(c)(d)Signing of the contract as provided in ITB Clause 31; andApproval by higher authority, if required.31. Signing of the Contract31.1. At the same time as the Procuring Entity notifies the successful Bidderthat its Bid has been accepted, the Procuring Entity shall send theContract Form to the Bidder, which Contract has been provided in theBidding Documents, incorporating therein all agreements between theparties.31.2. Within ten (10) calendar days from receipt of the Notice of Award, thesuccessful Bidder shall post the required performance security, signand date the contract and return it to the Procuring Entity.31.3. The Procuring Entity shall enter into contract with the successful Bidderwithin the same ten (10) calendar days period provided that all thedocumentary requirements are complied with.31.4. The following documents shall form part of the contract:(a)(b)(c)(d)(e)(f)(g)Contract Agreement;Bidding Documents;Winning bidder’s bid, including the Technical and FinancialProposals, and all other documents/statements submitted;Performance Security;Credit line in accordance with ITB Clause 5.5, if applicable;Notice of Award of Contract; andOther contract documents that may be required by existing lawsand/or specified in the BDS.32. Performance Security32.1. To guarantee the faithful performance by the winning Bidder of itsobligations under the contract, it shall post a performance securityprior to the signing of the contract.32.2. The performance security shall be in an amount equal to a percentageof the total contract price in accordance with the following schedule:30Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

Form of Performance Security(a) Cash, cashier’s/manager’s check,bank draft/guarantee confirmedby a Universal or CommercialBank;(b) Irrevocable letter of credit issuedby a Universal or CommercialBank: Provided, however, that itshall be confirmed orauthenticated by a Universal orCommercial Bank, if issued by aforeign bank;(c) Surety bond callable upondemand issued by a surety orinsurance company duly certifiedby the Insurance Commission asauthorized to issue such security;and/or(d) Any combination of the foregoing.Amount of PerformanceSecurity(Equal to Percentage of theTotal Contract Price)Five percent (5%)Thirty percent (30%)Proportionate to share ofform with respect to totalamount of security32.3. Within a maximum period of ten (10) calendar days from the receipt ofthe Notice of Award from the Procuring Entity and in no case later thanthe signing of the contract between the successful Bidder and theProcuring Entity, the successful bidder shall furnish to the ProcuringEntity the performance security in accordance with the Conditions ofContract, and in the Form prescribed in the Bidding Documents.32.4. Failure of the successful Bidder to comply with the requirement of ITBClause 32 shall constitute sufficient grounds for the annulment of theaward and forfeiture of the bid security, in which event the ProcuringEntity shall initiate and complete the post qualification of the secondLowest Calculated Bid. The procedure shall be repeated until the LCRBis identified and selected for contract award. However, if no Bidderpassed post-qualification, the BAC shall declare the bidding a failureand conduct a re-bidding with re-advertisement.31Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

33. Notice to Proceed33.1. Within three (3) calendar days from the date of approval of theContract by the appropriate government approving authority.33.2. The date of the Bidder’s receipt of the Notice to Proceed will beregarded as the effective date of the Contract, unless otherwisespecified in the BDS.32Clark Development CorporationSection II Instructions to BiddersAsphalt Overlay of CDC Roads

Section III. Bid Data Sheet (BDS)33

ITB ClauseBid Data Sheet1.1. The PROCURING ENTITY is Clark Development Corporation.The name of the Contract is Asphalt Overlay of CDC Roads.The identification number of the contract is Work Order No. 2010-022.2. The Funding Source is: The Government of the Philippines (GOP)through CDC Corporate Capital Expenditures Budget for CY 2010 inthe amount of Php 4,507,000.00.The name of the Project is Asphalt Overlay of CDC Roads5.1. No further instructions.5.2. No Treaty or International or Executive Agreement allowsparticipation of foreign bidders. Bidding is restricted to eligiblebidders as defined in ITB Clause 5.1.5.4. The Bidder must have completed, within the period specified in theInvitation to Bid and ITB Clause 12.1 (a) (iii), a single contract thatis similar to this Project, equivalent to at least fifty percent (50%) ofthe ABC.For this purpose, similar contracts shall refer to Asphalt OverlayProjects.5.5. No further instructions.6.3. No further instructions.7.No further instructions.8. “Only a maximum of fifty percent (50%) of the Works may besubcontracted”.9.1.The Procuring Entity will hold a pre-bid conference for this Project onDecember 21, 2010 (10:00 a.m.) at CDC Board Room, GroundFloor Bldg. 2125 , E. Quirino St. corner C.P. Garcia Street ,CDCCorporate Center, Clark Freeport Zone, Philippines 2023.34Clark Development CorporationSection III Bid Data SheetAsphalt Overlay of CDC Roads

10.1 The Procuring Entity’s address is:Ms. Ma. Zoraida G. Camello, OICOffice of the Bids and Awards Secretariat2 nd Floor Bldg. 2127 C.P. Garcia St.CDC Corporate Center, Clark Freeport Zone, Philippines 2023Tel No. (045) 599-9000 local 932/Telefax No. (045) 599-7028e-mail: bacsecretariat@clark.com.phwebsite: www.clark.com.ph12.1. No further instructions.12.1.(a) (i)12.1.(a)(iii)12.1.(a) (iv)13.1.(b)No additional Requirements.No further instructionsNo further instructions.1. Detailed Estimates including a summary sheet indicating the unitprices of construction materials, labor rates and equipment rentalsused in coming up with the bid in the prescribed format;2. Duly Signed Cash Flow and Payment Schedule; and3. Day work Schedule.13.2. The ABC is Php 4,507,000.00. Any bid with a financial componentexceeding this amount shall not be accepted.14.2. No further instructions.15.4. Bid Prices shall be fixed. Adjustable price proposals shall be treatedas non-responsive and shall be rejected.Price escalation may be allowed in extraordinary circumstances asmay be determined by the National Economic and DevelopmentAuthority in accordance with the Civil Code of the Philippines, andupon the recommendation of the Procuring Entity.16.1. The bid prices shall be quoted in Philippine Pesos.16.3. No further instructions.17.1. Bids will be valid until 120 calendar days upon submission of bids.18.1. The bid security shall be in the following amount:1. Php 90,140.00 (2% of ABC), if bid security is in cash,cashier’s/manager’s check, bank draft/guarantee confirmed bya Universal or Commercial bank;35Clark Development CorporationSection III Bid Data SheetAsphalt Overlay of CDC Roads

2. Php 90,140.00 (2% of ABC), Irrevocable Letter of Creditissued by a Universal or Commercial Bank: Provided, however,that it shall be confirmed or authenticated by a Universal orCommercial Bank, if issued by a foreign bank.3. Php 225,350.00 (5% of ABC) if bid security is in SuretyBond callable upon demand issued by a surety or insurancecompany duly certified by the Insurance Commission asauthorized to issue such security; or4. Any combination of the foregoing proportionate to the shareof form with respect to total amount of security.18.2.;18.3;and 18.4.The bid security shall be valid until 120 calendar days upon thesubmission of Bids.18.5. (a) (iv) Additional grounds for forfeiture of bid security:1. Submission of eligibility requirements containing falseinformation or falsified documents.2. Submission of bids that contain false information or falsifieddocuments, or the concealment of such information in the bidsin order to influence the outcome of eligibility screening or anyother stage of the public bidding.3. Allowing the use of one’s name, or using the name of anotherfor purposes of public bidding.4. Withdrawal of a bid, or refusal to accept an award, or enterinto contract with the Government without justifiable cause,after the Bidder had been adjudged as having submitted theLowest Calculated and Responsive Bid.5. Refusal or failure to post the required performance securitywithin the prescribed time.6. Refusal to clarify or validate in writing its bid during postqualificationwithin a period of seven (7) calendar days fromreceipt of the request for clarification.7. Any documented unsolicited attempt by a bidder to undulyinfluence the outcome of the bidding in his favor.8. Failure of the potential joint venture partners to enter into thejoint venture after the bid is declared as successful.9. All other acts that tend to defeat the purpose of thecompetitive bidding, such as habitually withdrawing frombidding, submitting late Bids or patently insufficient bid, for atClark Development Corporation36Section III Bid Data SheetAsphalt Overlay of CDC Roads

least three (3) times within a year, except for valid reasons.18.5.(b) (iii)No further instructions.20.1. The First Envelope (marked Technical Envelope) shall contain one(1) original and two (2) duplicate copies properly signed and sealed.The Second Envelope (marked Financial Envelope) shall containone (1) original and two (2) duplicate copies properly signed andsealed. All the two (2) envelopes shall contain the following:Name of the Contract to be Bid in Capital Letters;Bear the name and Address of the Bidder in Capital Letters; andBear a warning “DO NOT OPEN BEFORE January 03, 2011 at 2:00 p.m.”20.3. Each Bidder shall submit One (1) original and Two (2) copies of thefirst and second components of its bid.21. The address for submission of bids is CDC Board Room, GroundFloor Bldg. 2125 E. Quirino Avenue corner C.P. Garcia Street, CDCCorporate Center, Clark Freeport Zone, Philippines 2023.Deadline for submission of bids: January 03, 2011 (2:00p.m.)24.1. The place of bid opening is at CDC Board Room, Ground Floor Bldg.2125 E. Quirino Avenue corner C.P. Garcia Street, CDC CorporateCenter, Clark Freeport Zone, Philippines 2023.The date & time of bid opening is 2:00 p.m. on January 03, 2011The official time would be the Time keeping Machine located at theleft side of Bldg. 2125.25.1. No further instructions.27.3. No further instructions.27.3.(b)Arithmetical correction is allowed.27.5. No further instructions.28.2.(b)1. Certified True Copy of the following documents filed using theElectronic Filing and Payment System (EFPS):a. Income Tax Return- refers to the latest ITR (BIR Form No.1702 for Corporation and Partnership) for thecalendar/fiscal year 2009; andb. Business Tax Returns- refers to the Value Added Tax37Clark Development CorporationSection III Bid Data SheetAsphalt Overlay of CDC Roads

Return (Monthly: BIR Form No. 2550-M; Quarterly: BIRForm No. 2550-Q) or Percentage Tax Returns (BIR FormNo. 2551-M) covering the previous six (6) Monthsimmediately preceding the date of the submission andopening of bids.2. In the absence of EFPS- filed Tax Returns, in lieu thereof,submit the following certified true copies:a. Tax Returns as specified above- manually filed orstamped received by the BIR or its authorized agents; andb. Proof of application/registration with EFPS.31.4.(g)Additional contract documents relevant to the Project that may berequired by existing laws and/or the Procuring EntityConstruction schedule and S-curve, manpower schedule, constructionmethods, equipment utilization schedule, construction safety andhealth program approved by the Department of Labor andEmployment, and PERT/CPM.33.2. The effective date of the Contract is within seven (7) calendar daysupon receipt of Notice to Proceed.38Clark Development CorporationSection III Bid Data SheetAsphalt Overlay of CDC Roads

Section IV. General Conditions ofContract (GCC)39

TABLE OF CONTENTS1. DEFINITIONS ....................................................................................422. INTERPRETATION ............................................................................443. GOVERNING LANGUAGE AND LAW .............................................454. COMMUNICATIONS .........................................................................455. POSSESSION OF SITE .....................................................................456. THE CONTRACTOR’S OBLIGATIONS............................................457. PERFORMANCE SECURITY.............................................................488. SUBCONTRACTING ..........................................................................499. LIQUIDATED DAMAGES ..................................................................4910.SITE INVESTIGATION REPORTS ..................................................5011.THE PROCURING ENTITY, LICENSES AND PERMITS..............5012.CONTRACTOR’S RISK AND WARRANTY SECURITY ................5013.LIABILITY OF THE CONTRACTOR ................................................5314.PROCURING ENTITY’S RISK .........................................................5315.INSURANCE .......................................................................................5316.TERMINATION FOR DEFAULT OF CONTRACTOR .....................5517.TERMINATION FOR DEFAULT OF PROCURING ENTITY.........5618.TERMINATION FOR OTHER CAUSES ...........................................5619.PROCEDURES FOR TERMINATION OF CONTRACTS................5820.FORCE MAJEURE, RELEASE FROM PERFORMANCE .................6021.RESOLUTION OF DISPUTES ..........................................................6122.SUSPENSION OF LOAN, CREDIT, GRANT, ORAPPROPRIATION..............................................................................6223.PROCURING ENTITY’S REPRESENTATIVE’S DECISIONS ......6224. APPROVAL OF DRAWINGS AND TEMPORARY WORKS BY THE PROCURING ENTITY’SREPRESENTATIVE .......................................................................................................... 6225. ACCELERATION AND DELAYS ORDERED BY THE PROCURING ENTITY’SREPRESENTATIVE .......................................................................................................... 6326.EXTENSION OF THE INTENDED COMPLETION DATE..............6327.RIGHT TO VARY................................................................................6340Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

28.CONTRACTORS RIGHT TO CLAIM ................................................6429.DAYWORKS........................................................................................6430.EARLY WARNING .............................................................................6431.PROGRAM OF WORK .......................................................................6532.MANAGEMENT CONFERENCES......................................................6533.BILL OF QUANTITIES ......................................................................6634.INSTRUCTIONS, INSPECTIONS AND AUDITS ..........................6635.IDENTIFYING DEFECTS ..................................................................6736.COST OF REPAIRS............................................................................6737.CORRECTION OF DEFECTS ............................................................6738.UNCORRECTED DEFECTS ...............................................................6739.ADVANCE PAYMENT ........................................................................6840.PROGRESS PAYMENTS....................................................................6841.PAYMENT CERTIFICATES...............................................................6942.RETENTION........................................................................................6943.VARIATION ORDERS .......................................................................7044.CONTRACT COMPLETION...............................................................7245.SUSPENSION OF WORK..................................................................7246.PAYMENT ON TERMINATION........................................................7447.EXTENSION OF CONTRACT TIME.................................................7448.PRICE ADJUSTMENT........................................................................7549.COMPLETION.....................................................................................7650.TAKING OVER....................................................................................7651.OPERATING AND MAINTENANCE MANUALS ............................7641Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

1. DefinitionsFor purposes of this Clause, boldface type is used to identify defined terms.1.1. The Arbiter is the person appointed jointly by the Procuring Entity andthe Contractor to resolve disputes in the first instance, as provided forin GCC Clause 21.1.2. Bill of Quantities refers to a list of the specific items of the Work andtheir corresponding unit prices, lump sums, and/or provisional sums.1.3. The Completion Date is the date of completion of the Works ascertified by the Procuring Entity’s Representative, in accordance withGCC Clause 49.1.4. The Contract is the contract between the Procuring Entity and theContractor to execute, complete, and maintain the Works.1.5. The Contract Price is the price stated in the Letter of Acceptance andthereafter to be paid by the Procuring Entity to the Contractor for theexecution of the Works in accordance with this Contract.1.6. Contract Time Extension is the allowable period for the Contractorto complete the Works in addition to the original Completion Datestated in this Contract.1.7. The Contractor is the juridical entity whose proposal has beenaccepted by the Procuring Entity and to whom the Contract to executethe Work was awarded.1.8. The Contractor’s Bid is the signed offer or proposal submitted by theContractor to the Procuring Entity in response to the BiddingDocuments.1.9. Days are calendar days; months are calendar months.1.10. Day works are varied work inputs subject to payment on a time basisfor the Contractor’s employees and Equipment, in addition to paymentsfor associated Materials and Plant.1.11. A Defect is any part of the Works not completed in accordance withthe Contract.1.12. The Defects Liability Certificate is the certificate issued byProcuring Entity’s Representative upon correction of defects by theContractor.1.13. The Defects Liability Period is the one year period between projectcompletion and final acceptance within which the Contractor assumes42Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

the responsibility to undertake the repair of any damage to the Worksat his own expense.1.14. Drawings are graphical presentations of the Works. They include allsupplementary details, shop drawings, calculations, and otherinformation provided or approved for the execution of this Contract.1.15. Equipment refers to all facilities, supplies, appliances, materials orthings required for the execution and completion of the Work providedby the Contractor and which shall not form or are not intended to formpart of the Permanent Works.1.16. The Intended Completion Date refers to the date specified in theSCC when the Contractor is expected to have completed the Works.The Intended Completion Date may be revised only by the ProcuringEntity’s Representative by issuing an extension of time or anacceleration order.1.17. Materials are all supplies, including consumables, used by theContractor for incorporation in the Works.1.18. The Notice to Proceed is a written notice issued by the ProcuringEntity or the Procuring Entity’s Representative to the Contractorrequiring the latter to begin the commencement of the work not laterthan a specified or determinable date.1.19. Permanent Works all permanent structures and all other projectfeatures and facilities required to be constructed and completed inaccordance with this Contract which shall be delivered to the ProcuringEntity and which shall remain at the Site after the removal of allTemporary Works.1.20. Plant refers to the machinery, apparatus, and the like intended toform an integral part of the Permanent Works.1.21. The Procuring Entity is the party who employs the Contractor tocarry out the Works stated in the SCC.1.22. The Procuring Entity’s Representative refers to the Head of theProcuring Entity or his duly authorized representative, identified in theSCC, who shall be responsible for supervising the execution of theWorks and administering this Contract.1.23. The Site is the place provided by the Procuring Entity where the Worksshall be executed and any other place or places which may bedesignated in the SCC, or notified to the Contractor by the ProcuringEntity’s Representative as forming part of the Site.43Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

1.24. Site Investigation Reports are those that were included in theBidding Documents and are factual and interpretative reports about thesurface and subsurface conditions at the Site.1.25. Slippage is a delay in work execution occurring when actualaccomplishment falls below the target as measured by the differencebetween the scheduled and actual accomplishment of the Work by theContractor as established from the work schedule. This is actuallydescribed as a percentage of the whole Works.1.26. Specifications mean the description of Works to be done and thequalities of materials to be used, the equipment to be installed and themode of construction.1.27. The Start Date, as specified in the SCC, is the date when theContractor is obliged to commence execution of the Works. It doesnot necessarily coincide with any of the Site Possession Dates.1.28. A Subcontractor is any person or organization to whom a part of theWorks has been subcontracted by the Contractor, as allowed by theProcuring Entity, but not any assignee of such person.1.29. Temporary Works are works designed, constructed, installed, andremoved by the Contractor that are needed for construction orinstallation of the Permanent Works.1.30. Work(s) refer to the Permanent Works and Temporary Works to beexecuted by the Contractor in accordance with this Contract, including(i) the furnishing of all labor, materials, equipment and othersincidental, necessary or convenient to the complete execution of theWorks; (ii) the passing of any tests before acceptance by the ProcuringEntity’s Representative; (iii) and the carrying out of all duties andobligations of the Contractor imposed by this Contract as described inthe SCC.2. Interpretation2.1. In interpreting the Conditions of Contract, singular also means plural,male also means female or neuter, and the other way around.Headings have no significance. Words have their normal meaningunder the language of this Contract unless specifically defined. TheProcuring Entity’s Representative will provide instructions clarifyingqueries about the Conditions of Contract.2.2. If sectional completion is specified in the SCC, references in theConditions of Contract to the Works, the Completion Date, and theIntended Completion Date apply to any Section of the Works (other thanreferences to the Completion Date and Intended Completion Date forthe whole of the Works).Clark Development Corporation44Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

3. Governing Language and Law3.1. This Contract has been executed in the English language, which shallbe the binding and controlling language for all matters relating to themeaning or interpretation of this Contract. All correspondence andother documents pertaining to this Contract which are exchanged bythe parties shall be written in English.3.2. This Contract shall be interpreted in accordance with the laws of theRepublic of the Philippines.4. CommunicationsCommunications between parties that are referred to in the Conditions shallbe effective only when in writing. A notice shall be effective only when it isreceived by the concerned party.5. Possession of Site5.1. On the date specified in the SCC, the Procuring Entity shall grant theContractor possession of so much of the Site as may be required toenable it to proceed with the execution of the Works. If the Contractorsuffers delay or incurs cost from failure on the part of the ProcuringEntity to give possession in accordance with the terms of this clause,the Procuring Entity’s Representative shall give the Contractor aContract Time Extension and certify such sum as fair to cover the costincurred, which sum shall be paid by Procuring Entity.5.2. If possession of a portion is not given by the date stated in the SCCClause 5.1., the Procuring Entity will be deemed to have delayed thestart of the relevant activities. The resulting adjustments in contacttime to address such delay shall be in accordance with GCC Clause 47.5.3. The Contractor shall bear all costs and charges for special or temporaryright-of-way required by it in connection with access to the Site. TheContractor shall also provide at his own cost any additional facilitiesoutside the Site required by it for purposes of the Works.5.4. The Contractor shall allow the Procuring Entity’s Representative andany person authorized by the Procuring Entity’s Representative accessto the Site and to any place where work in connection with thisContract is being carried out or is intended to be carried out.6. The Contractor’s Obligations6.1. The Contractor shall carry out the Works properly and in accordancewith this Contract. The Contractor shall provide all supervision, labor,Materials, Plant and Contractor's Equipment, which may be required.45Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

All Materials and Plant on Site shall be deemed to be the property ofthe Procuring Entity.6.2. The Contractor shall commence execution of the Works on the StartDate and shall carry out the Works in accordance with the Program ofWork submitted by the Contractor, as updated with the approval of theProcuring Entity’s Representative, and complete them by the IntendedCompletion Date.6.3. The Contractor shall submit a detailed program of work within fourteen(14) calendar days after issuance of the Notice to Proceed for approvalby the Procuring Entity that shall include, among others:6.3.1. The order in which it intends to carry out the work includinganticipated timing for each stage of design/detailed engineeringand construction;6.3.2. Periods for review of specific outputs and any other submissionsand approvals;6.3.3. Sequence of timing for inspections and tests as specified in thecontract documents;6.3.4. General description of the design and construction methods tobe adopted;6.3.5. Number and names of personnel to be assigned for each stageof the work;6.3.6. List of equipment required on site for each major stage of thework; and6.3.7. Description of the quality control system to be utilized for theproject.6.4. No work shall commence unless the Contractor has submitted therequired documentary requirements and the Procuring Entity has givenwritten approval. Work execution shall be in accordance with thereviewed and approved documents.6.5. Any errors, omissions, inconsistencies, inadequacies or failuresubmitted by the Contractor that do not comply with the requirementsshall be rectified, resubmitted and reviewed at the Contractor’s cost. Ifthe Contractor wishes to modify any design or document which hasbeen previously submitted, reviewed and approved, the Contractorshall notify the Procuring Entity within a reasonable period of time andshall shoulder the cost of such changes.46Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

6.6. The Contractor shall be held liable for design and structural defectsand/or failure of the completed project within the warranty periodsspecified in Section 62.2.3.2. of R.A. 9184 and its Implementing Rulesand Regulations.6.7. The Contractor shall be responsible for the safety of all activities on theSite.6.8. The Contractor shall carry out all instructions of the Procuring Entity’sRepresentative that comply with the applicable laws where the Site islocated.6.9. The Contractor shall employ the key personnel named in the Scheduleof Key Personnel, as referred to in the SCC, to carry out thesupervision of the Works. The Procuring Entity will approve anyproposed replacement of key personnel only if their relevantqualifications and abilities are equal to or better than those of thepersonnel listed in the Schedule.6.10. If the Procuring Entity’s Representative asks the Contractor to removea member of the Contractor’s staff or work force, for justifiable cause,the Contractor shall ensure that the person leaves the Site within seven(7) days and has no further connection with the Work in this Contract.6.11. During Contract implementation, the Contractor and his subcontractorsshall abide at all times by all labor laws, including child labor relatedenactments, and other relevant rules.6.12. The Contractor shall submit to the Procuring Entity for consent thename and particulars of the person authorized to receive instructionson behalf of the Contractor.6.13. The Contractor shall cooperate and share the Site with othercontractors, public authorities, utilities, and the Procuring Entitybetween the dates given in the schedule of other contractorsparticularly when they shall require access to the Site. The Contractorshall also provide facilities and services for them during this period.The Procuring Entity may modify the schedule of other contractors,and shall notify the Contractor of any such modification thereto.6.14. Should anything of historical or other interest or of significant value beunexpectedly discovered on the Site, it shall be the property of theProcuring Entity. The Contractor shall notify the Procuring Entity’sRepresentative of such discoveries and carry out the Procuring Entity’sRepresentative’s instructions in dealing with them.6.15. The Contractor shall provide all the necessary equipment, personnel,instruments, documents and others to carry out specified tests.47Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

7. Performance Security7.1. Unless otherwise specified in the SCC, within ten (10) calendar daysfrom receipt of the Notice of Award from the Procuring Entity but in nocase later than the signing of the contract by both parties, theContractor shall furnish the performance security in any the formsprescribed in ITB Clause 32.2.7.2. The performance security posted in favor of the Procuring Entity shallbe forfeited in the event it is established that the Contractor is indefault in any of its obligations under the Contract.7.3. The performance security shall remain valid until issuance by theProcuring Entity of the Certificate of Final Acceptance.7.4. The performance security may be released by the Procuring Entity andreturned to the Contractor after the issuance of the Certificate of FinalAcceptance subject to the following conditions:(a)(b)(c)There are no pending claims against the Contractor or thesurety company filed by the Procuring Entity;The Contractor has no pending claims for labor and materialsfiled against it; andOther terms specified in the SCC.7.5. The Contractor shall post an additional performance security followingthe amount and form specified in ITB Clause 32.2. to cover anycumulative increase of more than ten percent (10%) over the originalvalue of the contract as a result of amendments to order or changeorders, extra work orders and supplemental agreements, as the casemay be. The Contractor shall cause the extension of the validity of theperformance security to cover approved contract time extensions.7.6. In case of a reduction in the contract value or for partially completedWorks under the contract which are usable and accepted by theProcuring Entity the use of which, in the judgment of the implementingagency or the Procuring Entity, will not affect the structural integrity ofthe entire project, the Procuring Entity shall allow a proportionalreduction in the original performance security, provided that any suchreduction is more than ten percent (10%) and that the aggregate ofsuch reductions is not more than fifty percent (50%) of the originalperformance security.7.7. The Contractor, by entering into the Contract with the Procuring Entity,acknowledges the right of the Procuring Entity to institute action48Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

8. Subcontractingpursuant to Act 3688 against any subcontractor be they an individual,firm, partnership, corporation, or association supplying the Contractorwith labor, materials and/or equipment for the performance of thisContract.8.1. Unless otherwise indicated in the SCC, the Contractor cannotsubcontract Works more than the percentage specified in ITB Clause8.1.8.2. Subcontracting of any portion of the Works does not relieve theContractor of any liability or obligation under this Contract. TheContractor will be responsible for the acts, defaults, and negligence ofany subcontractor, its agents, servants or workmen as fully as if thesewere the Contractor’s own acts, defaults, or negligence, or those of itsagents, servants or workmen.8.3. Subcontractors disclosed and identified during the bidding may bechanged during the implementation of this Contract, subject tocompliance with the required qualifications and the approval of theProcuring Entity.9. Liquidated Damages9.1. The Contractor shall pay liquidated damages to the Procuring Entity atthe rate per day stated in the SCC for each day that the CompletionDate is later than the Intended Completion Date. The total amount ofliquidated damages shall not exceed the amount defined in the SCC.The Procuring Entity may deduct liquidated damages from paymentsdue to the Contractor. Payment of liquidated damages shall not affectthe Contractor. Once the cumulative amount of liquidated damagesreaches ten percent (10%) of the amount of this Contract, theProcuring Entity shall rescind this Contract, without prejudice to othercourses of action and remedies open to it.9.2. If the Intended Completion Date is extended after liquidated damageshave been paid, the Engineer of the Procuring Entity shall correct anyoverpayment of liquidated damages by the Contractor by adjusting thenext payment certificate. The Contractor shall be paid interest on theoverpayment, calculated from the date of payment to the date ofrepayment, at the rates specified in GCC Clause 40.1.49Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

10. Site Investigation ReportsThe Contractor, in preparing the Bid, shall rely on any Site InvestigationReports referred to in the SCC supplemented by any information obtained bythe Contractor.11. The Procuring Entity, Licenses and PermitsThe Procuring Entity shall, if requested by the Contractor, assist him inapplying for permits, licenses or approvals, which are required for the Works.12. Contractor’s Risk and Warranty Security12.1. The Contractor shall assume full responsibility for the Works from thetime project construction commenced up to final acceptance by theProcuring Entity and shall be held responsible for any damage ordestruction of the Works except those occasioned by force majeure.The Contractor shall be fully responsible for the safety, protection,security, and convenience of his personnel, third parties, and the publicat large, as well as the Works, Equipment, installation, and the like tobe affected by his construction work.12.2. The defects liability period for infrastructure projects shall be one yearfrom project completion up to final acceptance by the Procuring Entity.During this period, the Contractor shall undertake the repair works, athis own expense, of any damage to the Works on account of the use ofmaterials of inferior quality within ninety (90) days from the time theHead of the Procuring Entity has issued an order to undertake repair.In case of failure or refusal to comply with this mandate, the ProcuringEntity shall undertake such repair works and shall be entitled to fullreimbursement of expenses incurred therein upon demand.12.3. In case the Contractor fails to comply with the preceding paragraph,the Procuring Entity shall forfeit its performance security, subject itsproperty (ies) to attachment or garnishment proceedings, andperpetually disqualify it from participating in any public bidding. Allpayables of the GOP in his favor shall be offset to recover the costs.12.4. After final acceptance of the Works by the Procuring Entity, theContractor shall be held responsible for “Structural Defects”, i.e., majorfaults/flaws/deficiencies in one or more key structural elements of theproject which may lead to structural failure of the completedelements or structure, or “Structural Failures”, i.e., where one or morekey structural elements in an infrastructure facility fails or collapses,thereby rendering the facility or part thereof incapable of withstandingthe design loads, and/or endangering the safety of the users or thegeneral public:50Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

(a)(b)(c)(d)(e)Contractor – Where Structural Defects/Failures arise due tofaults attributable to improper construction, use of inferiorquality/substandard materials, and any violation of the contractplans and specifications, the contractor shall be held liable;Consultants – Where Structural Defects/Failures arise due tofaulty and/or inadequate design and specifications as well asconstruction supervision, then the consultant who prepared thedesign or undertook construction supervision for the projectshall be held liable;Procuring Entity’s Representatives/Project Manager/ConstructionManagers and Supervisors – The project owner’srepresentative(s), project manager, construction manager, andsupervisor(s) shall be held liable in cases where the StructuralDefects/Failures are due to his/their willful intervention inaltering the designs and other specifications; negligence oromission in not approving or acting on proposed changes tonoted defects or deficiencies in the design and/or specifications;and the use of substandard construction materials in theproject;Third Parties - Third Parties shall be held liable in cases whereStructural Defects/Failures are caused by work undertaken bythem such as leaking pipes, diggings or excavations,underground cables and electrical wires, underground tunnel,mining shaft and the like, in which case the applicable warrantyto such structure should be levied to third parties for theirconstruction or restoration works.Users - In cases where Structural Defects/Failures are due toabuse/misuse by the end user of the constructed facility and/ornon–compliance by a user with the technical design limitsand/or intended purpose of the same, then the user concernedshall be held liable.12.5. The warranty against Structural Defects/Failures, except thoseoccasioned on force majeure, shall cover the period specified in theSCC reckoned from the date of issuance of the Certificate of FinalAcceptance by the Procuring Entity.12.6. The Contractor shall be required to put up a warranty security in theform of cash, bank guarantee, letter of credit, GSIS or surety bondcallable on demand, in accordance with the following schedule:51Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

Form of Warranty(a) Cash or letter of credit issued byUniversal or Commercial bank:provided, however, that the letterof credit shall be confirmed orauthenticated by a Universal orCommercial bank, if issued by aforeign bank(b) Bank guarantee confirmed byUniversal or Commercial bank:provided, however, that the letterof credit shall be confirmed orauthenticated by a Universal orCommercial bank, if issued by aforeign bank(c) Surety bond callable upon demandissued by GSIS or any surety orinsurance company duly certifiedby the Insurance CommissionMinimum Amount inPercentage (%) of TotalContract PriceFive Percent (5%)Ten Percent (10%)Thirty Percent (30%)12.7. The warranty security shall be stated in Philippine Pesos and shallremain effective for one year from the date of issuance of theCertificate of Final Acceptance by the Procuring Entity, and returnedonly after the lapse of said one year period.12.8. In case of structural defects/failure occurring during the applicablewarranty period provided in GCC Clause 12.5., the Procuring Entityshall undertake the necessary restoration or reconstruction works andshall be entitled to full reimbursement by the parties found to be liablefor expenses incurred therein upon demand, without prejudice to thefiling of appropriate administrative, civil, and/or criminal chargesagainst the responsible persons as well as the forfeiture of thewarranty security posted in favor of the Procuring Entity.12.9. All design and build projects shall have a minimum Defects LiabilityPeriod of one (1) year after contract completion or as provided for inthe contract documents. This is without prejudice, however to theliabilities imposed upon the engineer/architect who drew up the plansand specifications for a building/structures sanctioned under Section1723 of the New Civil Code of the Philippines.52Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

13. Liability of the ContractorSubject to additional provisions, if any, set forth in the SCC, the Contractor’sliability under this Contract shall be as provided by the laws of the Republic ofthe Philippines.14. Procuring Entity’s Risk14.1. From the Start Date until the Certificate of Final Acceptance has beenissued, the following are risks of the Procuring Entity:(a)The risk of personal injury, death, or loss of or damage toproperty (excluding the Works, Plant, Materials, andEquipment), which are due to:(i)(ii)any type of use or occupation of the Site authorized bythe Procuring Entity after the official acceptance of theworks; orNegligence, breach of statutory duty, or interference withany legal right by the Procuring Entity or by any personemployed by or contracted to him except the Contractor.(b)The risk of damage to the Works, Plant, Materials, andEquipment to the extent that it is due to a fault of the ProcuringEntity or in the Procuring Entity’s design, or due to war orradioactive contamination directly affecting the country wherethe Works are to be executed.15. Insurance15.1. The Contractor shall, under his name and at his own expense, obtainand maintain, for the duration of this Contract, the following insurancecoverage:(a)(b)(c)(d)Contractor’s All Risk Insurance;Transportation to the project Site of Equipment, Machinery, andSupplies owned by the Contractor;Personal injury or death of Contractor’s employees; andComprehensive insurance for third party liability to Contractor’sdirect or indirect act or omission causing damage to thirdpersons.15.2. The Contractor shall provide evidence to the Procuring Entity’sRepresentative that the insurances required under this Contract havebeen affected and shall, within a reasonable time, provide copies of theinsurance policies to the Procuring Entity’s Representative. Such53Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

evidence and such policies shall be provided to the Procuring Entity’sthrough the Procuring Entity’s Representative.15.3. The Contractor shall notify the insurers of changes in the nature,extent, or program for the execution of the Works and ensure theadequacy of the insurances at all times in accordance with the terms ofthis Contract and shall produce to the Procuring Entity’s Representativethe insurance policies in force including the receipts for payment of thecurrent premiums.The above insurance policies shall be obtained from any reputableinsurance company approved by the Procuring Entity’s Representative.15.4. If the Contractor fails to obtain and keep in force the insurancesreferred to herein or any other insurance which he may be required toobtain under the terms of this Contract, the Procuring Entity mayobtain and keep in force any such insurances and pay such premiumsas may be necessary for the purpose. From time to time, theProcuring Entity may deduct the amount it shall pay for said premiumsincluding twenty five percent (25%) therein from any monies due, orwhich may become due, to the Contractor, without prejudice to theProcuring Entity exercising its right to impose other sanctions againstthe Contractor pursuant to the provisions of this Contract.15.5. In the event the Contractor fails to observe the above safeguards, theProcuring Entity may, at the Contractor’s expense, take whatevermeasure is deemed necessary for its protection and that of theContractor’s personnel and third parties, and/or order the interruptionof dangerous Works. In addition, the Procuring Entity may refuse tomake the payments under GCC Clause 40 until the Contractor complieswith this Clause.15.6. The Contractor shall immediately replace the insurance policy obtainedas required in this Contract, without need of the Procuring Entity’sdemand, with a new policy issued by a new insurance companyacceptable to the Procuring Entity for any of the following grounds:(a)The issuer of the insurance policy to be replaced has:(i)(ii)(iii)become bankrupt;been placed under receivership or under a managementcommittee;been sued for suspension of payment; or(iv)Clark Development Corporationbeen suspended by the Insurance Commission and itslicense to engage in business or its authority to issueinsurance policies cancelled; or54Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

(v)Where reasonable grounds exist that the insurer may notbe able, fully and promptly, to fulfill its obligation underthe insurance policy.16. Termination for Default of Contractor16.1. The Procuring Entity shall terminate this Contract for default when anyof the following conditions attend its implementation:16.2. Due to the Contractor’s fault and while the project is on-going, it hasincurred negative slippage of fifteen percent (15%) or more inaccordance with Presidential Decree 1870, regardless of whether or notprevious warnings and notices have been issued for the Contractor toimprove his performance;16.3. Due to its own fault and after this Contract time has expired, theContractor incurs delay in the completion of the Work after thisContract has expired; or16.4. The Contractor:(a)(b)(c)(d)(e)abandons the contract Works, refuses or fails to comply with avalid instruction of the Procuring Entity or fails to proceedexpeditiously and without delay despite a written notice by theProcuring Entity;does not actually have on the project Site the minimumessential equipment listed on the Bid necessary to prosecute theWorks in accordance with the approved Program of Work andequipment deployment schedule as required for the project;does not execute the Works in accordance with this Contract orpersistently or flagrantly neglects to carry out its obligationsunder this Contract;neglects or refuses to remove materials or to perform a newWork that has been rejected as defective or unsuitable; orSub-lets any part of this Contract without approval by theProcuring Entity.16.5. All materials on the Site, Plant, Equipment, and Works shall be deemedto be the property of the Procuring Entity if this Contract is rescindedbecause of the Contractor’s default.55Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

17. Termination for Default of Procuring Entity17.1. The Contractor may terminate this Contract with the Procuring Entity ifthe works are completely stopped for a continuous period of at leastsixty (60) calendar days through no fault of its own, due to any of thefollowing reasons:(a)(b)Failure of the Procuring Entity to deliver, within a reasonabletime, supplies, materials, right-of-way, or other items it isobligated to furnish under the terms of this Contract; orThe prosecution of the Work is disrupted by the adverse peaceand order situation, as certified by the Armed Forces of thePhilippines Provincial Commander and approved by theSecretary of National Defense.18. Termination for Other Causes18.1. The Procuring Entity may terminate this Contract, in whole or in part,at any time for its convenience. The Head of the Procuring Entity mayterminate this Contract for the convenience of the Procuring Entity ifhe has determined the existence of conditions that make ProjectImplementation economically, financially or technically impracticaland/or unnecessary, such as, but not limited to, fortuitous event(s) orchanges in law and National Government policies.18.2. The Procuring Entity or the Contractor may terminate this Contract ifthe other party causes a fundamental breach of this Contract.18.3. Fundamental breaches of Contract shall include, but shall not belimited to, the following:(a)(b)The Contractor stops work for twenty eight (28) days when nostoppage of work is shown on the current Program of Work andthe stoppage has not been authorized by the Procuring Entity’sRepresentative;The Procuring Entity’s Representative instructs the Contractor todelay the progress of the Works, and the instruction is notwithdrawn within twenty eight (28) days;(c)The Procuring Entity shall terminate this Contract if theContractor is declared bankrupt or insolvent as determined withfinality by a court of competent jurisdiction. In this event,termination will be without compensation to the Contractor,provided that such termination will not prejudice or affect anyright of action or remedy which has accrued or will accruethereafter to the Procuring Entity and/or the Contractor. In thecase of the Contractor's insolvency, any Contractor's EquipmentClark Development Corporation56Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

which the Procuring Entity instructs in the notice is to be useduntil the completion of the Works;(d)(e)(f)(g)(h)A payment certified by the Procuring Entity’s Representative isnot paid by the Procuring Entity to the Contractor within eightyfour (84) days from the date of the Procuring Entity’sRepresentative’s certificate;The Procuring Entity’s Representative gives Notice that failure tocorrect a particular Defect is a fundamental breach of Contractand the Contractor fails to correct it within a reasonable periodof time determined by the Procuring Entity’s Representative;The Contractor does not maintain a Security, which is required;The Contractor has delayed the completion of the Works by thenumber of days for which the maximum amount of liquidateddamages can be paid, as defined in the GCC Clause 9; andIn case it is determined prima facie by the Procuring Entity thatthe Contractor has engaged, before or during theimplementation of the contract, in unlawful deeds and behaviorsrelative to contract acquisition and implementation, such as, butnot limited to, the following:(i)(ii)(iii)(iv)corrupt, fraudulent, collusive and coercive practices asdefined in ITB Clause 3.1(a);drawing up or using forged documents;using adulterated materials, means or methods, orengaging in production contrary to rules of science or thetrade; andAny other act analogous to the foregoing.18.4. The Funding Source or the Procuring Entity, as appropriate, will seek toimpose the maximum civil, administrative and/or criminal penaltiesavailable under the applicable law on individuals and organizationsdeemed to be involved with corrupt, fraudulent, or coercive practices.18.5. When persons from either party to this Contract gives notice of afundamental breach to the Procuring Entity’s Representative in orderto terminate the existing contract for a cause other than those listedunder GCC Clause 18.3., the Procuring Entity’s Representative shalldecide whether the breach is fundamental or not.57Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

18.6. If this Contract is terminated, the Contractor shall stop workimmediately, make the Site safe and secure, and leave the Site as soonas reasonably possible.19. Procedures for Termination of Contracts19.1. The following provisions shall govern the procedures for thetermination of this Contract:(a)(b)Upon receipt of a written report of acts or causes which mayconstitute ground(s) for termination as aforementioned, or uponits own initiative, the Implementing Unit shall, within a period ofseven (7) calendar days, verify the existence of such ground(s)and cause the execution of a Verified Report, with all relevantevidence attached;Upon recommendation by the Implementing Unit, the Head ofthe Procuring Entity shall terminate this Contract only by awritten notice to the Contractor conveying the termination ofthis Contract. The notice shall state:(i)(ii)(iii)(iv)that this Contract is being terminated for any of theground(s) afore-mentioned, and a statement of the actsthat constitute the ground(s) constituting the same;the extent of termination, whether in whole or in part;an instruction to the Contractor to show cause as to whythis Contract should not be terminated; andSpecial instructions of the Procuring Entity, if any.The Notice to Terminate shall be accompanied by a copy of theVerified Report;(c)(d)Within a period of seven (7) calendar days from receipt of theNotice of Termination, the Contractor shall submit to the Headof the Procuring Entity a verified position paper stating why thecontract should not be terminated. If the Contractor fails toshow cause after the lapse of the seven (7) day period, eitherby inaction or by default, the Head of the Procuring Entity shallissue an order terminating the contract;The Procuring Entity may, at anytime before receipt of theBidder’s verified position paper to withdraw the Notice toTerminate if it is determined that certain items or works subjectof the notice had been completed, delivered, or performedbefore the Contractor’s receipt of the notice;58Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

(e)(f)Within a non-extendible period of ten (10) calendar days fromreceipt of the verified position paper, the Head of the ProcuringEntity shall decide whether or not to terminate this Contract. Itshall serve a written notice to the Contractor of its decision and,unless otherwise provided in the said notice, this Contract isdeemed terminated from receipt of the Contractor of the noticeof decision. The termination shall only be based on theground(s) stated in the Notice to Terminate; andThe Head of the Procuring Entity may create a ContractTermination Review Committee (CTRC) to assist him in thedischarge of this function. All decisions recommended by theCTRC shall be subject to the approval of the Head of theProcuring Entity.19.2. Pursuant to Section 69(f) of RA 9184 and without prejudice to theimposition of additional administrative sanctions as the internal rules ofthe agency may provide and/or further criminal prosecution asprovided by applicable laws, the procuring entity shall impose oncontractors after the termination of the contract the penalty ofsuspension for one (1) year for the first offense, suspension for two (2)years for the second offense from participating in the public biddingprocess, for violations committed during the contract implementationstage, which include but not limited to the following:(a)(b)Failure of the contractor, due solely to his fault or negligence, tomobilize and start work or performance within the specifiedperiod in the Notice to Proceed (“NTP”);Failure by the contractor to fully and faithfully comply with itscontractual obligations without valid cause, or failure by thecontractor to comply with any written lawful instruction of theprocuring entity or its representative(s) pursuant to theimplementation of the contract. For the procurement ofinfrastructure projects or consultancy contracts, lawfulinstructions include but are not limited to the following:(i) Employment of competent technical personnel,competent engineers and/or work supervisors;(ii)(iii)Provision of warning signs and barricades in accordancewith approved plans and specifications and contractprovisions;Stockpiling in proper places of all materials and removalfrom the project site of waste and excess materials,including broken pavement and excavated debris in59Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

accordance with approved plans and specifications andcontract provisions;(iv)(v)Deployment of committed equipment, facilities, supportstaff and manpower; andRenewal of the effectivity dates of the performancesecurity after its expiration during the course of contractimplementation.(c)(d)Assignment and subcontracting of the contract or any partthereof or substitution of key personnel named in the proposalwithout prior written approval by the procuring entity.Poor performance by the contractor or unsatisfactory qualityand/or progress of work arising from his fault or negligence asreflected in the Constructor's Performance Evaluation System(“CPES”) rating sheet. In the absence of the CPES rating sheet,the existing performance monitoring system of the procuringentity shall be applied. Any of the following acts by theconstructor shall be construed as poor performance:(i)(ii)Negative slippage of 15% and above within the criticalpath of the project due entirely to the fault or negligenceof the contractor; andQuality of materials and workmanship not complying withthe approved specifications arising from the contractor'sfault or negligence.(e)Willful or deliberate abandonment or non-performance of theproject or contract by the contractor resulting to substantialbreach thereof without lawful and/or just cause.In addition to the penalty of suspension, the performance securityposted by the contractor shall also be forfeited.20. Force Majeure, Release from Performance20.1. For purposes of this Contract the terms “force majeure” and “fortuitousevent” may be used interchangeably. In this regard, a fortuitous eventor force majeure shall be interpreted to mean an event which theContractor could not have foreseen, or which though foreseen, wasinevitable. It shall not include ordinary unfavorable weatherconditions; and any other cause the effects of which could have beenavoided with the exercise of reasonable diligence by the Contractor.20.2. If this Contract is discontinued by an outbreak of war or by any otherevent entirely outside the control of either the Procuring Entity or the60Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

Contractor, the Procuring Entity’s Representative shall certify that thisContract has been discontinued. The Contractor shall make the Sitesafe and stop work as quickly as possible after receiving this certificateand shall be paid for all works carried out before receiving it and forany Work carried out afterwards to which a commitment was made.20.3. If the event continues for a period of eighty four (84) days, eitherparty may then give notice of termination, which shall take effecttwenty eight (28) days after the giving of the notice.20.4. After termination, the Contractor shall be entitled to payment of theunpaid balance of the value of the Works executed and of thematerials and Plant reasonably delivered to the Site, adjusted by thefollowing:(a)(b)(c)any sum to which the Contractor is entitled under GCC Clause28;the cost of his suspension and demobilization;Any sum to which the Procuring Entity is entitled.20.5. The net balance due shall be paid or repaid within a reasonable timeperiod from the time of the notice of termination.21. Resolution of Disputes21.1. If any dispute or difference of any kind whatsoever shall arise betweenthe parties in connection with the implementation of the contractcovered by the Act and this IRR, the parties shall make every effort toresolve amicably such dispute or difference by mutual consultation.21.2. If the Contractor believes that a decision taken by the PROCURINGEntity’s Representative was either outside the authority given to thePROCURING Entity’s Representative by this Contract or that thedecision was wrongly taken, the decision shall be referred to theArbiter indicated in the SCC within fourteen (14) days of thenotification of the PROCURING Entity’s Representative’s decision.21.3. Any and all disputes arising from the implementation of this Contractcovered by the R.A. 9184 and its IRR shall be submitted to arbitrationin the Philippines according to the provisions of Republic Act No. 876,otherwise known as the “ Arbitration Law” and Republic Act 9285,otherwise known as the “Alternative Dispute Resolution Act of 2004”:Provided, however, That, disputes that are within the competence ofthe Construction Industry Arbitration Commission to resolve shall bereferred thereto. The process of arbitration shall be incorporated as aprovision in this Contract that will be executed pursuant to theprovisions of the Act and its IRR-A: Provided, further, That, by mutualClark Development Corporation61Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

agreement, the parties may agree in writing to resort to otheralternative modes of dispute resolution. Additional instructions onresolution of disputes, if any, shall be indicated in the SCC.22. Suspension of Loan, Credit, Grant, or AppropriationIn the event that the Funding Source suspends the Loan, Credit, Grant, orAppropriation to the Procuring Entity, from which part of the payments to theContractor are being made:(a)(b)The Procuring Entity is obligated to notify the Contractor of suchsuspension within seven (7) days of having received the suspensionnotice.If the Contractor has not received sums due it for work already donewithin forty five (45) days from the time the Contractor’s claim forpayment has been certified by the Procuring Entity’s Representative,the Contractor may immediately issue a suspension of work notice inaccordance with SCC Clause 45.2.23. Procuring Entity’s Representative’s Decisions23.1. Except where otherwise specifically stated, the Procuring Entity’sRepresentative will decide contractual matters between the ProcuringEntity and the Contractor in the role representing the Procuring Entity’s23.2. The Procuring Entity’s Representative may delegate any of his dutiesand responsibilities to other people except to the Arbiter, afternotifying the Contractor, and may cancel any delegation after notifyingthe Contractor.24. Approval of Drawings and Temporary Works by the ProcuringEntity’s Representative24.1. All Drawings prepared by the Contractor for the execution of theTemporary Works, are subject to prior approval by the ProcuringEntity’s Representative before its use.24.2. The Contractor shall be responsible for design of Temporary Works.24.3. The Procuring Entity’s Representative’s approval shall not alter theContractor’s responsibility for design of the Temporary Works.24.4. The Contractor shall obtain approval of third parties to the design ofthe Temporary Works, when required by the Procuring Entity.62Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

25. Acceleration and Delays Ordered by the Procuring Entity’sRepresentative25.1. When the Procuring Entity wants the Contractor to finish before theIntended Completion Date, the Procuring Entity’s Representative willobtain priced proposals for achieving the necessary acceleration fromthe Contractor. If the Procuring Entity accepts these proposals, theIntended Completion Date will be adjusted accordingly and confirmedby both the Procuring Entity and the Contractor.25.2. If the Contractor’s Financial Proposals for acceleration are accepted bythe Procuring Entity, they are incorporated in the Contract Price andtreated as a Variation.26. Extension of the Intended Completion Date26.1. The Procuring Entity’s Representative shall extend the IntendedCompletion Date if a Variation is issued which makes it impossible forthe Intended Completion Date to be achieved by the Contractorwithout taking steps to accelerate the remaining work, which wouldcause the Contractor to incur additional costs. Unless specified in theSCC, no payment shall be made for any event which may warrant theextension of the Intended Completion Date.26.2. The Procuring Entity’s Representative shall decide whether and by howmuch to extend the Intended Completion Date within twenty one (21)days of the Contractor asking the Procuring Entity’s Representative fora decision thereto after fully submitting all supporting information. Ifthe Contractor has failed to give early warning of a delay or has failedto cooperate in dealing with a delay, the delay by this failure shall notbe considered in assessing the new Intended Completion Date.27. Right to Vary27.1. The Procuring Entity’s Representative with the prior approval of theProcuring Entity may instruct Variations, up to a maximum cumulativeamount of ten percent (10%) of the original contract cost.27.2. Variations shall be valued as follows:(a)(b)(c)At a lump sum price agreed between the parties;where appropriate, at rates in this Contract;in the absence of appropriate rates, the rates in this Contractshall be used as the basis for valuation; or failing which63Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

(d)At appropriate new rates, equal to or lower than currentindustry rates and to be agreed upon by both parties andapproved by the Head of the Procuring Entity.28. Contractors Right to ClaimIf the Contractor incurs cost as a result of any of the events under GCCClause 13, the Contractor shall be entitled to the amount of such cost. If as aresult of any of the said events, it is necessary to change the Works, this shallbe dealt with as a Variation.29. Day works29.1. Subject to GCC Clause 43 on Variation Order, and if applicable asindicated in the SCC, the Day works rates in the Contractor’s Bid shallbe used for small additional amounts of work only when the ProcuringEntity’s Representative has given written instructions in advance foradditional work to be paid for in that way.29.2. All work to be paid for as Day works shall be recorded by theContractor on forms approved by the Procuring Entity’s Representative.Each completed form shall be verified and signed by the ProcuringEntity’s Representative within two days of the work being done.29.3. The Contractor shall be paid for Day works subject to obtaining signedDay works forms.30. Early Warning30.1. The Contractor shall warn the Procuring Entity’s Representative at theearliest opportunity of specific likely future events or circumstancesthat may adversely affect the quality of the work, increase the ContractPrice, or delay the execution of the Works. The Procuring Entity’sRepresentative may require the Contractor to provide an estimate ofthe expected effect of the future event or circumstance on the ContractPrice and Completion Date. The estimate shall be provided by theContractor as soon as reasonably possible.30.2. The Contractor shall cooperate with the Procuring Entity’sRepresentative in making and considering proposals for how the effectof such an event or circumstance can be avoided or reduced by anyoneinvolved in the work and in carrying out any resulting instruction of theProcuring Entity’s Representative.64Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

31. Program of Work31.1. Within the time stated in the SCC, the Contractor shall submit to theProcuring Entity’s Representative for approval a Program of Workshowing the general methods, arrangements, order, and timing for allthe activities in the Works.31.2. An update of the Program of Work shall the show the actual progressachieved on each activity and the effect of the progress achieved onthe timing of the remaining work, including any changes to thesequence of the activities.31.3. The Contractor shall submit to the Procuring Entity’s Representative forapproval an updated Program of Work at intervals no longer than theperiod stated in the SCC. If the Contractor does not submit anupdated Program of Work within this period, the PROCURING Entity’sRepresentative may withhold the amount stated in the SCC from thenext payment certificate and continue to withhold this amount until thenext payment after the date on which the overdue Program of Workhas been submitted.31.4. The Procuring Entity’s Representative’s approval of the Program ofWork shall not alter the Contractor’s obligations. The Contractor mayrevise the Program of Work and submit it to the Procuring Entity’sRepresentative again at any time. A revised Program of Work shallshow the effect of any approved Variations; and if allowed, anyCompensation Event.31.5. When the Program of Work is updated, the Contractor shall provide theProcuring Entity’s Representative with an updated cash flow forecast.The cash flow forecast shall include different currencies, as defined inthe Contract, converted as necessary using the Contract exchangerates.31.6. All Variations shall be included in updated Program of Work producedby the Contractor.32. Management Conferences32.1. Either the Procuring Entity’s Representative or the Contractor mayrequire the other to attend a Management Conference. TheManagement Conference shall review the plans for remaining work anddeal with matters raised in accordance with the early warningprocedure.32.2. The Procuring Entity’s Representative shall record the business ofManagement Conferences and provide copies of the record to thoseattending the Conference and to the Procuring Entity. Theresponsibility of the parties for actions to be taken shall be decided byClark Development Corporation65Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

33. Bill of Quantitiesthe PROCURING Entity’s Representative either at the ManagementConference or after the Management Conference and stated in writingto all who attended the Conference.33.1. The Bill of Quantities shall contain items of work for the construction,installation, testing, and commissioning of work to be done by theContractor.33.2. The Bill of Quantities is used to calculate the Contract Price. TheContractor is paid for the quantity of the work done at the rate in theBill of Quantities for each item.33.3. If the final quantity of any work done differs from the quantity in theBill of Quantities for the particular item and is not more than twentyfive percent (25%) of the original quantity, provided the aggregatechanges for all items do not exceed ten percent (10%) of the Contractprice, the Procuring Entity’s Representative shall make the necessaryadjustments to allow for the changes subject to applicable laws, rules,and regulations.33.4. If requested by the Procuring Entity’s Representative, the Contractorshall provide the Procuring Entity’s Representative with a detailed costbreakdown of any rate in the Bill of Quantities.34. Instructions, Inspections and Audits34.1. The Procuring Entity’s personnel shall at all reasonable times duringconstruction of the Work be entitled to examine, inspect, measure andtest the materials and workmanship, and to check the progress of theconstruction.34.2. If the Procuring Entity’s Representative instructs the Contractor tocarry out a test not specified in the Specification to check whether anywork has a defect and the test shows that it does, the Contractor shallpay for the test and any samples. If there is no defect, the test shallbe a Compensation Event.34.3. The Contractor shall permit the Funding Source named in the SCC toinspect the Contractor’s accounts and records relating to theperformance of the Contractor and to have them audited by auditorsappointed by the Funding Source, if so required by the FundingSource.66Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

35. Identifying DefectsThe Procuring Entity’s Representative shall check the Contractor’s work andnotify the Contractor of any defects that are found. Such checking shall notaffect the Contractor’s responsibilities. The Procuring Entity’s Representativemay instruct the Contractor to search uncover defects and test any work thatthe Procuring Entity’s Representative considers below standards anddefective.36. Cost of RepairsLoss or damage to the Works or Materials to be incorporated in the Worksbetween the Start Date and the end of the Defects Liability Periods shall beremedied by the Contractor at the Contractor’s cost if the loss or damagearises from the Contractor’s acts or omissions.37. Correction of Defects37.1. The Procuring Entity’s Representative shall give notice to theContractor of any defects before the end of the Defects Liability Period,which begins at Completion Date up to final acceptance by theProcuring Entity’s unless otherwise specified in the SCC. The DefectsLiability Period shall be extended for as long as defects remain to becorrected.37.2. Every time notice of a defect is given, the Contractor shall correct thenotified defect within the length of time specified in the ProcuringEntity’s Representative’s notice.37.3. The Contractor shall correct the defects which he notices himselfbefore the end of the Defects Liability Period.37.4. The Procuring Entity shall certify that all defects have been corrected.If the Procuring Entity considers that correction of a defect is notessential, he can request the Contractor to submit a quotation for thecorresponding reduction in the Contract Price. If the Procuring Entityaccepts the quotation, the corresponding change in the SCC is aVariation.38. Uncorrected Defects38.1. The Procuring Entity shall give the Contractor at least fourteen (14)days notice of his intention to use a third party to correct a Defect. Ifthe Contractor does not correct the Defect himself within the period,the Procuring Entity may have the Defect corrected by the third party.The cost of the correction will be deducted from the Contract Price.67Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

38.2. The use of a third party to correct defects that are uncorrected by theContractor will in no way relieve the Contractor of its liabilities andwarranties under the Contract.39. Advance Payment39.1. The Procuring Entity shall, upon a written request of the contractorwhich shall be submitted as a contract document, make an advancepayment to the contractor in an amount not exceeding fifteen percent(15%) of the total contract price, to be made in lump sum or, at themost two, installments according to a schedule specified in the SCC.39.2. The advance payment shall be made only upon the submission to andacceptance by the Procuring Entity of an irrevocable standby letter ofcredit of equivalent value from a commercial bank, a bank guaranteeor a surety bond callable upon demand, issued by a surety orinsurance company duly licensed by the Insurance Commission andconfirmed by the Procuring Entity.39.3. The advance payment shall be repaid by the Contractor by an amountequal to the percentage of the total contract price used for theadvance payment.39.4. The contractor may reduce his standby letter of credit or guaranteeinstrument by the amounts refunded by the Monthly Certificates in theadvance payment.39.5. The Procuring Entity will provide an Advance Payment on the ContractPrice as stipulated in the Conditions of Contract, subject to themaximum amount stated in SCC Clause 39.1.40. Progress Payments40.1. The Contractor may submit a request for payment for Workaccomplished. Such request for payment shall be verified and certifiedby the Procuring Entity’s Representative/Project Engineer. Except asotherwise stipulated in the SCC, materials and equipment delivered onthe site but not completely put in place shall not be included forpayment. An affidavit should be submitted for each progress billingsthat the said labor, equipment and materials are already been paid.40.2. The Procuring Entity shall deduct the following from the certified grossamounts to be paid to the contractor as progress payment:(a)(b)(c)Cumulative value of the work previously certified and paid for.Portion of the advance payment to be recouped for the month.Retention money in accordance with the condition of contract.68Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

(d)(e)Amount to cover third party liabilities.Amount to cover uncorrected discovered defects in the works.40.3. Payments shall be adjusted by deducting there from the amounts foradvance payments and retention. The Procuring Entity shall pay theContractor the amounts certified by the Procuring Entity’sRepresentative within twenty eight (28) days from the date eachcertificate was issued. Unless otherwise indicated in the SCC, nopayment of interest for delayed payments and adjustments shall bemade by the Procuring Entity.40.4. The first progress payment may be paid by the Procuring Entity to theContractor provided that at least twenty percent (20%) of the workhas been accomplished as certified by the Procuring Entity’sRepresentative.40.5. Items of the Works for which a price of “0” (zero) has been enteredwill not be paid for by the Procuring Entity and shall be deemedcovered by other rates and prices in the Contract.41. Payment Certificates41.1. The Contractor shall submit to the Procuring Entity’s Representativemonthly statements of the estimated value of the work executed lessthe cumulative amount certified previously.41.2. The Procuring Entity’s Representative shall check the Contractor’smonthly statement and certify the amount to be paid to the Contractor.41.3. The value of Work executed shall:(a)(b)(c)be determined by the Procuring Entity’s Representative;comprise the value of the quantities of the items in the Bill ofQuantities completed; andInclude 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 SCC Clause 42.2.69Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

42.2. Progress payments are subject to retention of ten percent (10%),unless otherwise specified in the SCC, referred to as the “retentionmoney.” Such retention shall be based on the total amount due to theContractor prior to any deduction and shall be retained from everyprogress payment until fifty percent (50%) of the value of Works, asdetermined by the Procuring Entity, are completed. If, after fiftypercent (50%) completion, the Work is satisfactorily done and onschedule, no additional retention shall be made; otherwise, the tenpercent (10%) retention shall again be imposed using the ratespecified 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 alignmentto suit actual field conditions resulting in disparity between thepreconstruction plans used for purposes of bidding and the “as stakedplans” or construction drawings prepared after a joint survey by theContractor and the Procuring Entity after award of the contract,provided that the cumulative amount of the Variation Order does notexceed ten percent (10%) of the original project cost. Theaddition/deletion of Works should be within the general scope of theproject as bid and awarded. The scope of works shall not be reducedso as to accommodate a positive Variation Order. A Variation Ordermay either be in the form of a Change Order or Extra Work Order.70Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

43.2. A Change Order may be issued by the implementing official to coverany increase/decrease in quantities of original Work items in thecontract. Change Orders resulting from design errors, omissions ornon-conformance with the performance specifications and parametersand contract documents by the contractor shall be implemented by thecontractor at no additional cost to the procuring entity.43.3. An Extra Work Order may be issued by the implementing official tocover the introduction of new work necessary for the completion,improvement or protection of the project which were not included asitems of Work in the original contract, such as, where there aresubsurface or latent physical conditions at the site differing materiallyfrom those indicated in the contract, or where there are duly unknownphysical conditions at the site of an unusual nature differing materiallyfrom those ordinarily encountered and generally recognized as inherentin the Work or character provided for in the contract.43.4. Any cumulative Variation Order beyond ten percent (10%) shall besubject of another contract to be bid out if the works are separablefrom the original contract. In exceptional cases where it is urgentlynecessary to complete the original scope of work, the Head of theProcuring Entity may authorize a positive Variation Order go beyondten percent (10%) but not more than twenty percent (20%) of theoriginal contract price, subject to the guidelines to be determined bythe GPPB: Provided, however, That appropriate sanctions shall beimposed on the designer, consultant or official responsible for theoriginal detailed engineering design which failed to consider theVariation Order beyond ten percent (10%).43.5. In claiming for any Variation Order, the Contractor shall, within seven(7) calendar days after such work has been commenced or after thecircumstances leading to such condition(s) leading to the extra cost,and within twenty-eight (28) calendar days deliver a writtencommunication giving full and detailed particulars of any extra cost inorder that it may be investigated at that time. Failure to provide eitherof such notices in the time stipulated shall constitute a waiver by thecontractor for any claim. The preparation and submission of VariationOrders are as follows:(a)Clark Development CorporationIf the Procuring Entity’s representative/Project Engineer believesthat a Change Order or Extra Work Order should be issued, heshall prepare the proposed Order accompanied with the noticessubmitted by the Contractor, the plans therefore, hiscomputations as to the quantities of the additional worksinvolved per item indicating the specific stations where suchworks are needed, the date of his inspections and investigationsthereon, and the log book thereof, and a detailed estimate ofthe unit cost of such items of work, together with his71Section IV General Conditions of the ContractAsphalt Overlay of CDC Roads

justifications for the need of such Change Order or Extra WorkOrder, and shall submit the same to the Head of the ProcuringEntity for approval.(b)(c)(d)(e)The Head of the Procuring Entity or his duly authorizedrepresentative, upon receipt of the proposed Change Order orExtra Work Order shall immediately instruct the technical staff ofthe Procuring Entity’s to conduct an on-the-spot investigation toverify the need for the Work to be prosecuted. A report of suchverification shall be submitted directly to the Head of theProcuring Entity or his duly authorized representative.The, Head of the Procuring Entity or his duly authorizedrepresentative, after being satisfied that such Change Order orExtra Work Order is justified and necessary, shall review theestimated quantities and prices and forward the proposal withthe supporting documentation to the Head of Procuring Entityfor consideration.If, after review of the plans, quantities and estimated unit costof the items of work involved, the proper office of the procuringentity empowered to review and evaluate Change Orders orExtra Work Orders recommends approval thereof, Head of theProcuring Entity or his duly authorized representative, believingthe Change Order or Extra Work Order to be in order, shallapprove the same.The timeframe for the processing of Variation Orders from thepreparation up to the approval by the Head of the ProcuringEntity concerned shall not exceed thirty (30) calendar days.44. Contract CompletionOnce the project reaches an accomplishment of ninety five (95%) of the totalcontract amount, the Procuring Entity may create an inspectorate team tomake preliminary inspection and submit a punch-list to the Contractor inpreparation for the final turnover of the project. Said punch-list will contain,among others, the remaining Works, Work deficiencies for necessarycorrections, and the specific duration/time to fully complete the projectconsidering the approved remaining contract time. This, however, shall notpreclude the claim of the Procuring Entity for liquidated damages.45. Suspension of Work45.1. The Procuring Entity shall have the authority to suspend the workwholly or partly by written order for such period as may be deemednecessary, due to force majeure or any fortuitous events or for failureon the part of the Contractor to correct bad conditions which areunsafe for workers or for the general public, to carry out valid orders72Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

given by the Procuring Entity or to perform any provisions of thecontract, or due to adjustment of plans to suit field conditions as foundnecessary during construction. The Contractor shall immediatelycomply with such order to suspend the work wholly or partly.45.2. The Contractor or its duly authorized representative shall have theright to suspend work operation on any or all projects/activities alongthe critical path of activities after fifteen (15) calendar days from dateof receipt of written notice from the Contractor to the districtengineer/regional director/consultant or equivalent official, as the casemay be, due to the following:(a)(b)(c)(d)(e)There exist right-of-way problems which prohibit the Contractorfrom performing work in accordance with the approvedconstruction schedule.Requisite construction plans which must be owner-furnished arenot issued to the contractor precluding any work called for bysuch plans.Peace and order conditions make it extremely dangerous, if notpossible, to work. However, this condition must be certified inwriting by the Philippine National Police (PNP) station which hasresponsibility over the affected area and confirmed by theDepartment of Interior and Local Government (DILG) RegionalDirector.There is failure on the part of the Procuring Entity to delivergovernment-furnished materials and equipment as stipulated inthe contract.Delay in the payment of Contractor’s claim for progress billingbeyond forty-five (45) calendar days from the time theContractor’s claim has been certified to by the procuring entity’sauthorized representative that the documents are completeunless there are justifiable reasons thereof which shall becommunicated in writing to the Contractor.45.3. In case of total suspension, or suspension of activities along the criticalpath, which is not due to any fault of the Contractor, the elapsed timebetween the effective order of suspending operation and the order toresume work shall be allowed the Contractor by adjusting the contracttime accordingly.73Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

46. Payment on Termination46.1. If the Contract is terminated because of a fundamental breach ofContract by the Contractor, the Procuring Entity’s Representative shallissue a certificate for the value of the work done and Materials orderedless advance payments received up to the date of the issue of thecertificate and less the percentage to apply to the value of the worknot completed, as indicated in the SCC. Additional Liquidated Damagesshall not apply. If the total amount due to the Procuring Entityexceeds any payment due to the Contractor, the difference shall be adebt payable to the Procuring Entity.46.2. If the Contract is terminated for the Procuring Entity’s convenience orbecause of a fundamental breach of Contract by the Procuring Entity,the Procuring Entity’s Representative shall issue a certificate for thevalue of the work done, Materials ordered, the reasonable cost ofremoval of Equipment, repatriation of the Contractor’s personnelemployed solely on the Works, and the Contractor’s costs of protectingand securing the Works, and less advance payments received up to thedate of the certificate.46.3. The net balance due shall be paid or repaid within twenty eight (28)days from the notice of termination.46.4. If the Contractor has terminated the Contract under GCC Clauses 17or18, the Procuring Entity shall promptly return the PerformanceSecurity to the Contractor.47. Extension of Contract Time47.1. Should the amount of additional work of any kind or other specialcircumstances of any kind whatsoever occur such as to fairly entitle thecontractor to an extension of contract time, the Procuring Entity shalldetermine the amount of such extension; provided that the ProcuringEntity is not bound to take into account any claim for an extension oftime unless the Contractor has, prior to the expiration of the contracttime and within thirty (30) calendar days after such work has beencommenced or after the circumstances leading to such claim havearisen, delivered to the Procuring Entity notices in order that it couldhave investigated them at that time. Failure to provide such noticeshall constitute a waiver by the Contractor of any claim. Upon receiptof full and detailed particulars, the Procuring Entity shall examine thefacts and extent of the delay and shall extend the contract timecompleting the contract work when, in the Procuring Entity’s opinion,the findings of facts justify an extension.47.2. No extension of contract time shall be granted the Contractor due to(a) ordinary unfavorable weather conditions and (b) inexcusable failure74Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

or negligence of Contractor to provide the required equipment,supplies or materials.47.3. Extension of contract time may be granted only when the affectedactivities fall within the critical path of the PERT/CPM network.47.4. No extension of contract time shall be granted when the reason givento support the request for extension was already considered in thedetermination of the original contract time during the conduct ofdetailed engineering and in the preparation of the contract documentsas agreed upon by the parties before contract perfection.47.5. Extension of contract time shall be granted for rainy/unworkable daysconsidered unfavorable for the prosecution of the works at the site,based on the actual conditions obtained at the site, in excess of thenumber of rainy/unworkable days pre-determined by the ProcuringEntity in relation to the original contract time during the conduct ofdetailed engineering and in the preparation of the contract documentsas agreed upon by the parties before contract perfection, and/or forequivalent period of delay due to major calamities such asexceptionally destructive typhoons, floods and earthquakes, andepidemics, and for causes such as non-delivery on time of materials,working drawings, or written information to be furnished by theProcuring Entity, non-acquisition of permit to enter private propertieswithin the right-of-way resulting in complete paralyzation ofconstruction activities, and other meritorious causes as determined bythe Procuring Entity’s Representative and approved by the Head of theProcuring Entity. Shortage of construction materials, general laborstrikes, and peace and order problems that disrupt constructionoperations through no fault of the Contractor may be considered asadditional grounds for extension of contract time provided they arepublicly felt and certified by appropriate government agencies such asDTI, DOLE, DILG, and DND, among others. The written consent ofbondsmen must be attached to any request of the Contractor forextension of contract time and submitted to the Procuring Entity forconsideration and the validity of the Performance Security shall becorrespondingly extended.48. Price AdjustmentExcept for extraordinary circumstances as determined by NEDA and approvedby the GPPB, no price adjustment shall be allowed unless otherwise specifiedin the SCC.75Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

49. CompletionThe Contractor shall request the Procuring Entity’s Representative to issue acertificate of Completion of the Works, and the Procuring Entity’sRepresentative will do so upon deciding that the work is completed.50. Taking OverThe Procuring Entity shall take over the Site and the Works within seven (7)days from the date the Procuring Entity’s Representative issues a certificate ofCompletion.51. Operating and Maintenance Manuals51.1. If “as built” Drawings and/or operating and maintenance manuals arerequired, the Contractor shall supply them by the dates stated in theSCC.51.2. If the Contractor does not supply the Drawings and/or manuals by thedates stated in the SCC, or they do not receive the Procuring Entity’sRepresentative’s approval, the Procuring Entity’s Representative shallwithhold the amount stated in the SCC from payments due to theContractor.76Clark Development CorporationSection IV General Conditions of the ContractAsphalt Overlay of CDC Roads

Section V. Special Conditions of Contract(SCC)77

Special Conditions of ContractGCC Clause1.16 The Intended Completion Date is [Insert date].1.21 The Procuring Entity is Clark Development Corporation Bldg. 2122 E.Quirino St. CDC Corporate Center, Clark Freeport Zone, Philippines.1.22 The Procuring Entity’s Representative isEngr. Rene S. ArcillaOfficer-In-ChargeEngineering, Construction and Maintenance DepartmentBldg. 2125, E. Quirino Avenue corner Carlos P. Garcia St.CDC Corporate Center, Clark Freeport Zone, Philippines 2023The Duly Authorized Representative is Engr. Alan C. Turla1.23 The Site is located at Clark Freeport Zone and is defined in drawings No.[Insert Number].1.27 The Start Date is within seven (7) calendar days upon receipt of theNotice to Proceed.1.30The Works involves the asphalt overlay of E. Aguinaldo Street, MalomaStreet, Magsaysay Avenue, Abacan Street and Chico Street in accordancewith the Scope of Works and Technical Specifications including compliancewith the latest DPWH Standards and Specifications.2.2 If different dates are specified for completion of the Works by section(“sectional completion”), these dates should be listed here5.1. The Procuring Entity shall give possession of all parts of the Site to theContractor upon receipt of Notice to Proceed.6.5. The Contractor shall employ the following Key Personnel:[List key personnel by name and designation]7.1. No further instructions.7.4(c)The Contractor had submitted the required warranty security.8.1. No further instructions.9.1. The applicable liquidated damages is one tenth (1/10) of one percent ofthe cost of the unperformed portion for every day of delay.78Clark Development CorporationSection V Special Conditions of the ContractAsphalt Overlay of CDC Roads

The maximum deduction shall be ten percent (10%) of the amount of thecontract, the Procuring Entity shall rescind the contract, without prejudiceto other courses of action and remedies open to it.10. The site investigation reports are: none12.5. In case of semi-permanent structures, such as buildings of types 1, 2, and3 as classified under the National Building Code of the Philippines,concrete/asphalt roads, concrete river control, drainage, irrigation linedcanals, river landing, deep wells, rock causeway, pedestrian overpass, andother similar semi-permanent structures: Five (5) years.13. If the Contractor is a joint venture, “All partners to the joint venture shallbe jointly and severally liable to the Procuring Entity.”21.2. The Arbiter is:Construction Industry Arbitration Commission4F, Jupiter Building56 Jupiter Street, Bel Air Makati City21.3. No further instructions.26.1. No further instructions.29.1. Day works are applicable at the rate shown in the Contractor’s original Bid.31.1. The Contractor shall submit the Detailed Program of Work to theProcuring Entity’s Representative within fourteen (14) calendar daysupon receipt of the Notice to Proceed.31.3. The period between Program of Work updates is seven (7) days.The amount to be withheld for late submission of an updated Program ofWork is 1% of every Progress Billing of the Contractor.34.3. The Funding Source is the Government of the Philippines.37.1. No further instructions.39.1. The amount of the advance payment is 15% of the Contract Amount.40.1. No further instructions.40.3. No further instructions.42.2. No further instructions.48. No further instructions.51.1. The date by which operating and maintenance manuals are required iswithin seven (7) working days upon satisfactory completion.The date by which “as built” drawings are required is within seven (7)working days upon satisfactory completion.79Clark Development CorporationSection V Special Conditions of the ContractAsphalt Overlay of CDC Roads

51.2.The amount to be withheld for failing to produce “as built” drawingsand/or operating and maintenance manuals by the date required isequivalent to final collection/billing & or 10% of the final Contract Costwhichever is higher.80Clark Development CorporationSection V Special Conditions of the ContractAsphalt Overlay of CDC Roads

Section VI. Technical Specifications andScope of Work81

PROJECT TITLE : Asphalt Overlay of CDC RoadsLOCATION : Clark Freeport Zone, PhilippinesSCOPE OF WORK1. This project must be fully carried out in accordance to Standard Specificationand testing requirements of latest edition of DPWH Volume II. Theconstruction procedures includes the removal of all foreign loose objects onthe finished surface of the existing deteriorated asphalt pavement, Sprayingof Bituminous Tack Coat (SS-1) and Laying of Bituminous Concrete SurfaceCourse, Hot-laid material both in FDLRC basis.2. Before mobilization activity commences, the supplier must coordinate properlyto CDC-ECMD Representative for proper implementation. Temporary warningbarricades and safety signs must be installed during blowing of foreign looseobjects, spraying of SS-1 and laying of Bituminous Concrete Surface CourseHot-laid.3. All foreign loose objects on the surface of existing deteriorated asphaltpavement shall be removed using air compressor prior to spraying ofBituminous Tack (SS-1).4. When Bituminous Tack Coat has been applied, the application of BituminousConcrete Surface Course, Hot-laid material shall follow.5. Laying of 0.05m thick Bituminous Concrete Surface Course, Hot-laid materialshall maintain a temperature of not less than 107ºC (225ºF).6. The asphalt concrete shall be laid continuously as possible. However, ifstoppage occurs, joints must be brushed coat with emulsified asphalt. Whennecessary, this sticky substance shall be used to meet the field condition.7. Upon completion of laying of 0.05m thick Bituminous Concrete Surface Coursematerial, the layer must be compacted using tandem roller and pneumatic tireroller. Rolling shall begin at the sides and proceeds longitudinally paralleltoward the road centerline. The supplier must be aware that only appropriateequipment shall be used for compaction. Crushing of aggregate due toexcessive compaction is not permitted.8. When compaction is completed, the asphalt pavement must be core tested atthe supplier’s account for compaction and thickness determination in82

compliance with the design and in accordance with DPWH Standards andmust be approved by CDC Materials Engineer.9. Demobilization shall follow after the completion of compaction of newlyapplied asphalt pavement.10. Pavement marking shall be undertaken by CDC-ECMD RGM crew when pavingis completed.List of Roads for Asphalt Overlay1. E. Aguinaldo Street: 613 l.m. (Length) 6.35 m (Width)Total Area for 1 st Overlay: 1,294.56 sq.m. (Levelling and Patching)Total Area for 2 nd Overlay: 4,194.21 sq.m.2. Maloma Street : 153.57 l.m. (Length) 5.05 m. (Width)3. Magsaysay Avenue : 16.85 l.m. (Length)4. Chico Street: 364.00 l.m. (Length) 6.10 m (Width)5. Abacan Street: 100.00 l.m. (Length) 8.97m (Width)83

Section VII. DrawingsSee attached84

Section VIII. Bill of Quantities85

Section IX. Bidding FormsTABLE OF CONTENTSBid Form ......................................................................................... 93Form of Contract Agreement ............................................................ 95Omnibus Sworn Statement ............................................................... 9792

Bid FormDate: ___________________IAEB 2 N o : ________________To: Mr. Benigno N. RicafortPresident and CEOClark Development CorporationBldg. 2122 E. Quirino Avenue,CDC Corporate CenterClark Freeport Zone 2023We, the undersigned, declare that:(a) We have examined and have no reservation to the Bidding Documents, includingAddenda, for the Contract Asphalt Overlay of CDC Roads;(b) We offer to execute the Works for this Contract in accordance with the Bid andBid Data Sheet, General and Special Conditions of Contract accompanying thisBid;The total price of our Bid, excluding any discounts offered in item (d) below is:[insert information];The discounts offered and the methodology for their application are: [insertinformation];(c) Our Bid shall be valid for a period of 120 calendar days from the date fixed forthe Bid submission deadline in accordance with the Bidding Documents, and itshall remain binding upon us and may be accepted at any time before theexpiration of that period;(d) If our Bid is accepted, we commit to obtain a Performance Security in theamount of [insert percentage amount] percent of the Contract Price for the dueperformance of the Contract;93

(e) Our firm, including any subcontractors or suppliers for any part of the Contract,have nationalities from the following eligible countries: [insert information];(f) We are not participating, as Bidders, in more than one Bid in this biddingprocess, other than alternative offers in accordance with the Bidding Documents;(g) Our firm, its affiliates or subsidiaries, including any subcontractors or suppliersfor any part of the Contract, has not been declared ineligible by the FundingSource;(h) We understand that this Bid, together with your written acceptance thereofincluded in your notification of award, shall constitute a binding contractbetween us, until a formal Contract is prepared and executed; and(i) We understand that you are not bound to accept the Lowest Evaluated Bid orany other Bid that you may receive.Name:In the capacity of:Signed:Duly authorized to sign the Bid for and on behalf of:Date: ___________94

Form of Contract AgreementTHIS AGREEMENT, made this [insert date] day of [insert month], [insert year]between CLARK DEVELOPMENT CORPORATION (hereinafter called the“ProcuringEntity”) and [name and address of Contractor] (hereinafter called the “Contractor”).WHEREAS, the Procuring Entity is desirous that the Contractor execute theAsphalt Overlay of CDC Roads (hereinafter called “the Works”) and the ProcuringEntity has accepted the Bid for [insert the amount in specified currency in numbersand words] by the Contractor for the execution and completion of such Works and theremedying of any defects therein.NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:1. In this Agreement, words and expressions shall have the same meaningsas are respectively assigned to them in the Conditions of Contracthereinafter referred to.2. The following documents shall be attached, deemed to form, and beread and construed as part of this Agreement, to wit:(a)(b)(c)(d)(e)(f)(g)(h)(i)(j)(k)(l)(m)General and Special Conditions of Contract;Drawings/Plans;Specifications;Invitation to Apply for Eligibility and to Bid;Instructions to Bidders;Bid Data Sheet;Addenda and/or Supplemental/Bid Bulletins, if any;Bid form, including all the documents/statements contained in theBidder’s bidding envelopes, as annexes;Eligibility requirements, documents and/or statements;Performance Security;Credit line issued by a licensed bank, if any;Notice of Award of Contract and the Bidder’s conforme thereto;Other contract documents that may be required by existing lawsand/or the Entity.95

3. In consideration of the payments to be made by the Procuring Entity tothe Contractor as hereinafter mentioned, the Contractor herebycovenants with the Procuring Entity to execute and complete the Worksand remedy any defects therein in conformity with the provisions of thisContract in all respects.4. The Procuring Entity hereby covenants to pay the Contractor inconsideration of the execution and completion of the Works and theremedying of defects wherein, the Contract Price or such other sum asmay become payable under the provisions of this Contract at the timesand in the manner prescribed by this Contract.IN WITNESS whereof the parties thereto have caused this Agreement to beexecuted the day and year first before written.Signed, sealed, delivered by(for the Procuring Entity)theSigned, sealed, delivered by(for the Contractor).theBinding Signature of PROCURING ENTITY________________________________________________Binding Signature of Contractor_____________________________________________[Addendum showing the corrections, if any, made during the Bid evaluation should beattached with this agreement]96

Omnibus Sworn StatementREPUBLIC OF THE PHILIPPINES )CITY/MUNICIPALITY OF ______ ) S.S.A F F I D A V I TI, [Name of Affiant], of legal age, [Civil Status], [Nationality], and residing at[Address of Affiant], after having been duly sworn in accordance with law, do herebydepose and state that:1. Select one, delete the other:If a sole proprietorship: I am the sole proprietor of [Name of Bidder] with officeaddress at [address of Bidder];If a partnership, corporation, cooperative, or joint venture: I am the dulyauthorized and designated representative of [Name of Bidder] with office addressat [address of Bidder];2. Select one, delete the other:If a sole proprietorship: As the owner and sole proprietor of [Name of Bidder], Ihave full power and authority to do, execute and perform any and all actsnecessary to represent it in the bidding for [Name of the Project] of the [Name ofthe Procuring Entity];If a partnership, corporation, cooperative, or joint venture: I am granted fullpower and authority to do, execute and perform any and all acts necessary and/orto represent the [Name of Bidder] in the bidding as shown in the attached [statetitle of attached document showing proof of authorization (e.g., duly notarizedSecretary’s Certificate issued by the corporation or the members of the jointventure)];3. [Name of Bidder] is not “blacklisted” or barred from bidding by the Government ofthe Philippines or any of its agencies, offices, corporations, or Local GovernmentUnits, foreign government/foreign or international financing institution whoseblacklisting rules have been recognized by the Government Procurement PolicyBoard;4. Each of the documents submitted in satisfaction of the bidding requirements is anauthentic copy of the original, complete, and all statements and informationprovided therein are true and correct;97

5. [Name of Bidder] is authorizing the Head of the Procuring Entity or its dulyauthorized representative(s) to verify all the documents submitted;6. Select one, delete the rest:If a sole proprietorship: I am not related to the Head of the Procuring Entity,members of the Bids and Awards Committee (BAC), the Technical Working Group,and the BAC Secretariat, the head of the Project Management Office or the enduserunit, and the project consultants by consanguinity or affinity up to the thirdcivil degree;If a partnership or cooperative: None of the officers and members of [Name ofBidder] is related to the Head of the Procuring Entity, members of the Bids andAwards Committee (BAC), the Technical Working Group, and the BAC Secretariat,the head of the Project Management Office or the end-user unit, and the projectconsultants by consanguinity or affinity up to the third civil degree;If a corporation or joint venture: None of the officers, directors, and controllingstockholders of [Name of Bidder] is related to the Head of the Procuring Entity,members of the Bids and Awards Committee (BAC), the Technical Working Group,and the BAC Secretariat, the head of the Project Management Office or the enduserunit, and the project consultants by consanguinity or affinity up to the thirdcivil degree;7. [Name of Bidder] complies with existing labor laws and standards; and8. [Name of Bidder] is aware of and has undertaken the following responsibilities as aBidder:a) Carefully examine all of the Bidding Documents;b) Acknowledge all conditions, local or otherwise, affecting the implementation of theContract;c) Made an estimate of the facilities available and needed for the contract to be bid, ifany; andd) Inquire or secure Supplemental/Bid Bulletin(s) issued for the [Name of the Project].IN WITNESS WHEREOF, I have hereunto set my hand this __ day of ___, 20__ at ____________,Philippines._____________________________________Bidder’s Representative/Authorized Signatory[JURAT]98

Project Title: Asphalt Overlay of CDC RoadsLocation: Clark Freeport Zone, PhilippinesChecklist of Eligibility and TechnicalComponent for BiddersThe Eligibility and Technical Component shall contain one (1) Original and Two (2) DuplicateCopies of the following:ELIGIBILITY DOCUMENTSClass A Documents Registration certificate from SEC, Department of Trade and Industry (DTI) for soleproprietorship, or CDA for cooperatives ; Mayor’s permit issued by the city or municipality where the principal place of businessof the prospective bidder is located; Valid Philippine Contractors Accreditation Board (PCAB) license and registration for thetype and cost of the contract to be bid (Sample Form No. SF-INFR-09). Statement of all its on-going government and private contracts including contractsawarded but not yet started reckoned from the submission of bids , supported withany of the following: Notice of Award, Notice to Proceed issued by the Owner (SampleForms No. SF-INFR 15). Statement of similar completed government and private contracts within ten (10)years from submission of bids, the statement shall be supported by the ConstructorsPerformance Evaluation System (CPES) rating sheets, and/or certificates of completionand owner’s acceptance, if applicable (Sample Forms No. SF-INFR 16). Audited financial statements, showing, among others, the prospective total andcurrent assets and liabilities, stamped “received” by the BIR or its duly accredited andauthorized institutions, for the preceding calendar year which should not be earlierthan two (2) years from the date of bid submission.99

Contracting Capability Any one of the Following:o Computation of Net Financial Contracting Capacity (NFCC) which must be equalto ABC (Sample Form No. SF-INFR 19) , ORoCertificate of commitment specific to the contract to be bid, issued by alicensed bank to extend to the bidder a credit line if awarded the contractwhich shall at least equal to 10% of ABC. (Sample Form No. SF-INFR 20)Class B Documents If applicable, valid Joint Venture Agreement (JVA) or, in lieu thereof, duly notarizedstatements from all the potential joint venture partners stating that they will enterinto and abide by the provisions of the JVA in the instance that the bid is successfulshall be included in the bid.TECHNICAL DOCUMENTS Bid SecurityAny one of the following: Php 90,140.00 (2% of ABC), if bid security is in cash,cashier’s/manager’s check, bank draft/guarantee confirmed by aUniversal or Commercial bank;Php 90,140.00 (2% of ABC), Irrevocable Letter of Credit issued bya Universal or Commercial Bank: Provided, however, that it shall beconfirmed or authenticated by a Universal or Commercial Bank, ifissued by a foreign bank.Php 225,350.00 (5% of ABC) if bid security is in Surety Bondcallable upon demand issued by a surety or insurance company dulycertified by the Insurance Commission as authorized to issue suchsecurity; orAny combination of the foregoing proportionate to the share of formwith respect to total amount of security.Except for the following CDC blacklisted Insurance Company:Sterling InsuranceStronghold Insurance100

Prudential Guarantee and Insurance Corporation Organizational chart for the contract to be bid; List of contractor’s personnel (viz, project Manager, Project Engineers, MaterialsEngineers, and Foremen), to be assigned to the contract to be bid, with theircomplete qualification and experience data; List of contractor’s equipment units, which are owned, leased, and/or under purchaseagreements, supported by certification of availability of equipment from theequipment lessor/vendor for the duration of the project; and Duly Notarized and Accomplished Omnibus Sworn Statement. Duly Signed Bid Bulletin, if applicable.Checklist of Financial Component forBiddersThe Financial Component shall contain one (1) Original and Two (2) Duplicate Copies of thefollowing: Financial Bid Form in accordance with the form prescribed in Section IX BiddingForms; Detailed Estimates including a summary sheet indicating the unit prices ofconstruction materials, labor rates and equipment rentals used in coming up with thebid in the prescribed format (Section VIII Bill of Quantities) Duly Signed Cash Flow and Payment Schedule; and Duly Signed Day Work Schedule.101

Sample Forms of Eligibility, Technicaland Financial Component102

Standard Form Number: SF-INFR-15Statement of all On-going Government & Private Contracts includingcontracts awarded but not yet startedBusiness Name: ___________________________________________________Business Address: ___________________________________________________Name of Contract/Project Cost a. Owner’s Nameb. Addressc. Telephone Nos.Nature of WorkBidder’s RoleDescription %a. Date Awardedb. Date Startedc. Date ofCompletion% ofAccomplishmentPlannedActualValue of OutstandingWorks / UndeliveredPortionGovernmentPrivateNote: This statement shall be supported with the following: Total Cost Php1 Notices of Award and/or Notices to Proceed issued by the OwnersSubmitted byDesignationDate: ___________________________________________________(Printed Name & Signature): ___________________________________________________: ___________________________________________________103

Standard Form Number: SF-INFR-16Statement of all Government & Private Contracts completed which aresimilar in natureBusiness Name: ___________________________________________________Business Address: ___________________________________________________Name of Contract a. Owner’s Nameb. Addressc. Telephone Nos.Nature of WorkBidder’s RoleDescription %a. Amount atAwardb. Amount atCompletionc. Durationa. Date Awardedb. Contract Effectivityc. Date CompletedGovernmentPrivateNote: This statement shall be supported with the following:1 Contractor’s Performance Evaluation System rating sheets and/or2 Certificates of Completion3 Certificate of Acceptance by the OwnerSubmitted byDesignationDate: ___________________________________________________(Printed Name & Signature): ___________________________________________________: ___________________________________________________104

Standard Form Number: SF-INFR-19Revised on: July 29, 2004FINANCIAL DOCUMENTS FOR ELIGIBILITY CHECKA. Summary of the Applicant Firm’s/Contractor’s assets and liabilities on the basis of the attached income tax returnand audited financial statement, stamped “RECEIVED” by the Bureau of Internal Revenue or BIR authorizedcollecting agent, for the immediately preceding year and a certified copy of Schedule of Fixed Assets particularlythe list of construction equipment.1. Total Assets2. Current Assets3. Total Liabilities4. Current Liabilities5. Total Net Worth (1-3)6. Current Net Worth or Net Working Capital(2-4)Year 2009B. The Net Financial Contracting Capacity (NFCC) based on the above data is computed as follows:NFCC = K (current asset – current liabilities) minus value of all outstanding works under ongoing contractsincluding awarded contracts yet to be startedNFCC = P _______________________________________K = 10 for a contract duration of one year or less, 15 for more than one year up to two years and 20 for morethan two years or a Commitment from a licensed bank to extend to it a credit line if awarded the contract or acash deposit certificate in the amount of at least 10% of the proposed project to bid.Name of Bank: ________________________________ Amount: ___________________Herewith attached are certified true copies of the income tax return and audited financial statement: stamped“RECEIVED” by the BIR or BIR authorized collecting agent for the immediately preceding year and the cash depositcertificate or certificate of commitment from a licensed bank to extend a credit line.Submitted by:__________________________________Name of Firm / Contractor_________________________________________Signature of Authorized RepresentativeDate : _____________________________NOTE:1. If Partnership or Joint Venture, each Partner or Member Firm of Joint Venture shall submit the aboverequirements.105

Standard Form Number: SF-INFR-20Revised on: July 29, 2004CREDIT LINE CERTIFICATEMr. Benigno N. RicafortPresident and CEOClark Development CorporationClark Freeport Zone, PhilippinesDate:__________________CONTRACT NAME: Asphalt Overlay of CDC RoadsADDRESSBANK/FINANCING INSTITUTIONADDRESSAMOUNT:_______________________________________________________________:_______________________________:_______________________________________________________________:_______________________________This is to certify that the above Bank/Financing Institution with business address indicated above,commits to provide the Contractor, if awarded the above-mentioned Contract, a credit line in the amountspecified above which shall be exclusively used to finance the performance of the above-mentionedContract, subject to our terms, conditions and requirements.The credit line shall be available within fifteen (15) calendar days after receipt by the Contractor ofthe Notice of Award and such line of credit shall be maintained until the project is completed by theContractor.This Certification is being issued in favor of said Contractor in connection with the biddingrequirement of Clark Development Corporation for the above-mentioned Contract. We are aware thatany false statements issued by us make us liable for perjury.Name and Signature of AuthorizedFinancing Institution OfficerOfficial Designation: _______________________: _______________________Concurred By:Name & Signature of Contractor’sAuthorized RepresentativeOfficial Designation: _______________________: _______________________106

Standard Form Number: SF-INFR-36Revised on: July 29, 2004FORM OF BID SECURITY (BANK GUARANTEE)WHEREAS, __(Name of Bidder)__ (hereinafter called “the Bidder”) has submitted his biddated __(Date)__ for the Asphalt Overlay of CDC Roads (hereinafter called “theBid”).KNOW ALL MEN by these presents that We __(Name of Bank)__ of __(Name ofCountry)__ having our registered office at ________________________ (hereinaftercalled “the Bank”) are bound unto Clark Development Corporation(hereinafter called “theEntity”) in the sum of _______________ 3 for which payment well and truly to be madeto the said Entity the Bank binds himself, his successors and assigns by these presents.SEALED with the Common Seal of the said Bank this _____ day of _________ 20___.THE CONDITIONS of this obligation are that:1) if the Bidder withdraws his Bid during the period of bid validity specified in theForm of Bid; or2) if the Bidder does not accept the correction of arithmetical errors of his bidprice in accordance with the Instructions to Bidder; or3) if the Bidder having been notified of the acceptance of his bid and award ofcontract to him by the Entity during the period of bid validity:a) fails or refuses to execute the Form of Contract in accordance with theInstructions to Bidders, if required; orb) fails or refuses to furnish the Performance Security in accordance with theInstructions to Bidders;we undertake to pay to the Entity up to the above amount upon receipt of his firstwritten demand, without the Entity having to substantiate its demand, provided that in3 The bidder should insert the amount of the guarantee in words and figures, denominated in the currency of the Entity’s country or anequivalent amount in a freely convertible currency. This figure should be the same as shown of the Instructions to Bidders.107

his demand the Entity will note that the amount claimed by it is due to the occurrence ofany one or combination of the three (3) conditions stated above.The Guarantee will remain in force up to and including the date _______________ 4 daysafter the deadline for submission of Bids as such deadline is stated in theInstructions to Bidders or as it may be extended by the Entity, notice of whichextension(s) to the Bank is hereby waived. Any demand in respect of this Guaranteeshould reach the Bank not later than the above date.DATE __________________SIGNATURE OF THE BANK ______________________WITNESS___________________________SEAL _______________________________(Signature, Name and Address)4 Usually 28 days after the end of the validity period of the Bid. Date should be inserted by the Entity before the bidding documentsare issued.108

Bid Security: GSIS BondRepublic of the PhilippinesGOVERNMENT SERVICE INSURANCE SYSTEMGENERAL INSURNCE FUNDGSIS Makati Building, Legaspi St.Legaspi Village, Makati, Metro ManilaG ( ) GIF Bond _____KNOW ALL MEN BY THESE PRESENTS:That we, ____________(Name of Bidder)____________ represented by its________________________________, as PRINCIPAL, and the GOVERNMENT SERVICEINSURANCE SYSTEM as Administrator of the General Insurance Fund, a corporation dulyorganized and existing under and by virtue of the laws of the Philippines, with head officeat Manila, as SURETY, are held and firmly bound unto the OBLIGEE, ClarkDevelopment Corporation in the sum of PESOS ________________ (P_______),callable on demand, Philippine Currency, for the payment of which sum well and truly tobe made, we bind ourselves, our heirs, executors, administrators, successors and assigns,jointly and severally, firmly by these presents.WHEREAS, the above bonded PRINCIPAL will submit a bid for the ____(Name ofthe Contract)_____ on the _______ day of ________, 20 ______ at _______am/pm.WHEREAS, the conditions of aforementioned OBLIGEE require the BIDDER a bondfor the said bid.WHEREAS, the PRINCIPAL agrees to comply with all the terms and conditions ofthe said bid with the aforementioned OBLIGEE;NOW, THEREFORE, the conditions of this obligation are that:1) if the Principal withdraws his Bid during the period of bid validity specifiedin the Form of Bid; or2) if the Principal does not accept the correction of arithmetical errors of hisbid price in accordance with the Instruction’s to Bidders: or109

3) if the Principal having been notified of the acceptance of his Bid and awardof contract to him by the Entity during the period of bid validity:a) fails or refuses to execute the Form of Contract in accordance withthe Instructions to Bidders, if required; orb) fails or refuses to furnish the Performance Security in accordancewith the Instructions to Bidders;then the Entity shall call on the bond upon a written demand to the Surety, and theSurety shall pay the Entity up to amount of the Bond, upon receipt by the Surety of awritten demand from the Entity, without the Entity having to substantiate its demand,provided that in the demand, the Entity will note that the sum claimed by it is due to theoccurrence of any or combination of the three conditions stated above. In this case, thisobligation shall remain in full force and effect, otherwise it shall be null and void.PROVIDED HOWEVER, that the Surety shall not be:a) liable for a greater sum than the specified penalty of this bond, norb) liable for a greater sum that the difference between the amount ofthe said Principal’s Bid and the amount of the Bid that is accepted bythe Entity.WITNESS OUR HANDS AND SEALS this _______ day of _______, 20 _____, at_____________________, Philippines.PrincipalBy:____________________GOVERNMENT SERVICE INSURANCE SYSTEMGeneral Insurance FundBy:____________________SIGNED IN THE PRESENCE OF:NOT VALID WITH ERASURES________________________________________110

Standard Form Number: SF-INFR-43Revised on: August 11, 2004OUTLINENARRATIVE DESCRIPTIONOFCONSTRUCTION METHODS1.0 INTRODUCTIONRefer to Bidding, etc.2.0 BRIEF DESCRIPTION OF CONTRACT WORKSState general features of contract works. Use tables as necessary.3.0 CONSTRUCTION METHODS AND PROCEDURES3.1 Methodology or General ApproachState general approach in construction in terms of use of equipment-intensive orlabor-based methods, any special techniques, methods or procedures to ensurecompletion on time and quality of construction financing the project, etc.3.2 Program of WorkCPM, Progress Bar Schedule and Development Schedules submitted.3.3 Financial ProgramCash flow schedules, provision for working capital, schedule of receipts, etc.111

Standard Form Number: SF-INFR-45Revised on: August 11, 2004Contractor’s Letter-Certificate to Procuring EntityDate of IssuanceMr. Benigno N. RicafortPresident and CEOClark Development CorporationClark Freeport Zone, PhilippinesDear Sir:Supplementing our Organizational Chart for the Contract, we have the honor to submitherewith, and to certify as true and correct, the following pertinent information:1. That I/we have engaged the services of ___(Name of Employee)___, to be the___(Designation)___ of the Asphalt Overlay of CDC Roads, who is a___(Profession)___ with Professional License Certificate No. _______ issued on____________________ and who has performed the duties in the construction ofthe Contracts enumerated in the duly filled Form ___.2. The said Engineer shall be designated by us as our (Designation) to personallyperform the duties of the said position in the above-mentioned Project, if andwhen the same is awarded in our favor.3. That said Engineer shall employ the best care, skill and ability in performing hisduties in accordance with the Contract Agreement, Conditions of Contract, Plans,Specifications, Special Provisions, and other provisions embodied in the proposedcontract.4. That said Engineer shall be personally present at the jobsite to supervise thephase of the construction work pertaining to this assignment as (Designation), allthe time.5. That, in order to guarantee that said Engineer shall perform his duties properlyand be personally present in the Job Site, he is hereby required to secure acertificate of appearance for the Procuring Entity Engineer at the end of everymonth.That, in the event that I/we elect or choose to replace said (Designation) withanother Engineer, the Procuring Entity will be accordingly notified by us in writing112

at least twenty one (21) days before making the replacement. We will submit tothe Procuring Entity, for prior approval, the name of the proposed new(Designation), his qualifications, experience, list of projects undertaken and otherrelevant information.6. That any willful violation on my/our part of the herein conditions may prejudicemy/our standing as a reliable contractor in future bidding of the Procuring Entity.Very truly yours,_____________________________(Authorized Representative of Bidder)CONCURRED IN:___________________________(Name of Engineer)_______________________(Address)113

Standard Form Number: SF-INFR-46Revised on: August 11, 2004Issuance DateKey Personnel’s Certificate of EmploymentMr. Benigno N. RicafortPresident and CEOClark Development CorporationClark Freeport Zone, PhilippinesDear Sir:I am __(Name of Nominee)_____ a Licensed _____ Engineer with ProfessionalLicense No. ______________ issued on __(date of issuance)__ at __(place ofissuance)__.I hereby certify that ___(Name of Bidder) has engaged my services as(Designation) for Asphalt Overlay of CDC Roads , if awarded to it.As ___(Designation)___, I supervised the following completed projects similar tothe contract under bidding):NAME OF PROJECT OWNER COST DATE COMPLETED___________________ ____________ ________ ___________________________________ ____________ ________ ___________________________________ ____________ ________ ___________________________________ ____________ ________ ________________At present, I am supervising the following projects:NAME OF PROJECT OWNER COST DATE COMPLETED___________________ ____________ ________ ___________________________________ ____________ ________ ___________________________________ ____________ ________ ___________________________________ ____________ ________ ________________114

In case of my separation for any reason whatsoever from the above-mentionedContractor, I shall notify the Clark Development Corporation at least twenty one (21)days before the effective date of my separation.As __(Designation)__, I know I will have to stay in the job site all the time tosupervise and manage the Contract works to the best of my ability, and aware that I amauthorized to handle only one (1) contract at a time.I do not allow the use of my name for the purpose of enabling the abovementionedContractor to qualify for the Contract without any firm commitment on mypart to assume the post of __(Designation)__ therefore, if the contract is awarded to himsince I understand that to do so will be a sufficient ground for my disqualification as__(Designation)__ in any future Clark Development Corporation bidding oremployment with any Contractor doing business with the Clark DevelopmentCorporation.DRY SEAL_____________________(Signature of Engineer)Republic of the Philippines )____________________ ) S.S.SUBSCRIBED AND SWORN TO before me this _________ day of _________ 2010affiant exhibiting to me his Residence Certificate No. _________ issued on_____________ at _______________.Notary PublicUntil December 31, 20___Doc. No. ________;Page No. ________;Book No. ________;115

Series of _________;Standard Form Number: SF-INFR-47Revised on: August 11, 2004KEY PERSONNEL(FORMAT OF BIO-DATA)Give the detailed information of the following personnel who are scheduled to beassigned as full-time field staff for the project. Fill up a form for each person.- Authorized Managing Officer / Representative- Sustained Technical Employee1. Name : ____________________________________________2. Date of Birth: ____________________________________________3. Nationality: ____________________________________________4. Education and Degrees: ____________________________________________5. Specialty : ____________________________________________6. Registration : ____________________________________________7. Length of Service with the Firm :_____Year from____(months) _____ (year)To ____ (months) _____ (year)8. Years of Experience: ____________________________________________9. If Item 7 is less than ten (10) years, give name and length of service with previousemployers for a ten (10)-year period (attached additional sheet/s), if necessary:Name and Address of EmployerLength of Service________________________________________________________________________________ year(s) from _______ to ___________ year(s) from _______ to ___________ year(s) from _______ to ______116

10. Experience:This should cover the past ten (10) years of experience. (Attached as many pagesas necessary to show involvement of personnel in projects using the format below).1. Name : ____________________________________________2. Name and Address of Owner :_____________________________________3. Name and Address of theOwner’s Engineer: ____________________________________________(Consultant)4. Indicate the Features of Project(particulars of the project components and any other particular interest connectedwith the project):___________________________________________5. Contract Amount Expressed inPhilippine Currency : ____________________________________________6. Position : ____________________________________________7. Structures for which the employeewas responsible : ____________________________________________8. Assignment Period : from _______ (months) _______ (years): to _______ (months) _______ (years)___________________________Name and Signature of EmployeeIt is hereby certified that the above personnel can be assigned to this project, if thecontract is awarded to our company.___________________________________(Place and Date)____________________________________(The Authorized Representative)117

Standard Form Number: SF-INFR-48Qualification of Key Personnel Proposed to be Assigned to the ContractProject Manager/EngineerMaterials Engineer Foreman Construction Safetyand Health PersonnelOther positions deemedrequired by the Applicant forthis project and based onsubmitted Organizationalchart1 Name2 Address3 Date of Birth4 Employed Since5 Experience6PreviousEmployment7 Education8 PRC License118

List of Equipment, Owned or Leased and/or under PurchaseAgreements, Pledged to the Proposed ContractBusiness Name1. BusinessAddress: ___________________________________________________: ___________________________________________________A. OwnedDescription Model/Year Capacity /Performance /SizePlate No. Motor No. /Body No.Location Condition Proof ofOwnership /Lessor or Vendori.ii.iii.iv.B. Leasedi.ii.iii.iv.C. Under Purchase Agreementsi.ii.iii.Submitted By:______________________ Designation:________________________ Date:_____________________119

DAYWORK SCHEDULEPROJECT : Asphalt Overlay of CDC RoadsLOCATION : Clark Freeport Zone, PhilippinesCONTRACTOR :ADDRESS :A. LABORPARTICULAR BILLING RATE/HOUR REMARKSa) Direct Supervisionb) Skilled Workersc) Unskilled LaborersB. EQUIPMENTITEMDESCRIPTIONC. MATERIALSPARTICULAR BILLING RATE REMARKSNOTES:A) Skilled worker's rates include the use of ordinary tools and gadgets in their respectivetrades like carpenter tools, masonry tools, etc.B) Unskilled worker's rates include the use of ordinary tools provided by Contractor likepick and shovels, crowbars, wheel barrow, etc.C) Prices of materials will be subject to actual canvass and evaluation if no longer validat time of application and are inclusive of overhead, profit, storage, handling, etc.ready or use at site.SUBMITTED:CONTRACTOR:BY _______________120

Standard Form Number: SF-INFR-56Revised on: August 11, 2004ContractNameLocation: Asphalt Overlay of CDC Roads: Clark Freeport Zone, PhilippinesCASH FLOW BY QUARTER AND PAYMENT SCHEDULEPARTICULAR %WT.ACCOMPLISHMENTCASH FLOWCUMULATIVE ACCOMPLISHMENTCUMULATIVE CASH FLOW1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTERSubmitted by:Name of the Representative of the Bidder Date: _______________PositionName of the Bidder121