Asphalt Overlay of CDC Roads - Clark Freeport Zone

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