GROUP 1 4.

Construction Drawings
- visual representation of project’s design
R.A 9184
5. Bill of quantities and/or bill of materials
- Government Procurement Reform Act
- comprehensive details about the materials,
components, assemblies, and labor required to
Construction Project Cycle
complete the project
- is the sequential process that a project goes
6. General conditions
through, from initial planning to project
- Lays out the administrative and managerial
completion
responsibilities of project stakeholders
7. Special conditions
Bid Package
- Explains additional details about site-specific or
- is a set of documents prepared by a
project-specific conditions that must be taken
construction project owner that provides
into account
potential bidders all the necessary information
8. Bid Form
- Describes the standardized format contractors
Bidding Process
are required to use when submitting their bids
- is the competitive mechanism that allows the
9. Bid Security
government to select qualified contractors who
- Requires a financial guarantee that the bidder
offer the best value for money
will enter contract at the proposed price if
awarded the contract (most common in public
CONSTRUCTION PROJECT CYCLE
projects)
1. Pre-Design (Project Initiation)
- evaluate the project
2. Design (Pre-Construction)
ARTICLE IV SEC. 10
- creates plan, project roadmap
- Competitive Bidding
3. Procurement
- acquisition of all materials and services
Bidding Process
4. Construction and Monitoring
1. Pre-Procurement Conference
- oversee construction and daily operation
2. Invitation to Bid
5. Post-Construction (Closeout)
3. Pre-Bid Conference
- finalize the project, turnover to owner
4. Receipt and Opening of Bids
5. Bid Evaluation
Invitation to Bid
6. Post-Qualification
Request for Tender
7. Award of Contract
Request for Proposal
8. Notice to Proceed

ANATOMY OF BID PACKAGE

TYPES OF PROCUREMENT
1. Cover Sheet
1. Goods and Services
- site location, timeline and contact information
2. Infrastructure Projects
2. Instruction to Bidder
3. Consulting Services
- deadlines and submission guidelines for bid
3. Project Specification
Project Procurement Management Plan
- description of materials, workmanship, quality
(PPMP)
standards
Annual Procurement Plan (APP)
Implementing Rules and Regulations (IRR) PROGRESS PAYMENT AND RETAINAGE
Single Calculated and Responsive Bid (SCRB) - PROGRESS PAYMENT IS A REGULAR PAYMENT
Single Rated and Responsive Bid (SRRB) FOR THE CONTRACTOR’S EXPENDITURES AND
FEE FOR THE MARKUP FOR THE PORTION OF
THE WORK PERFORMED.
GROUP 2
CONTRACTS AND SPECIFICATIONS
ISSUES DURING CONSTRUCTION PHASE,
CONTRACTS AND SPECIFICATIONS, AND CONTRACT
CONTRUCTION CONTRACTS - When two or more persons have a common
intention communicated to each other to create
SITE LAYOUT some obligation between them, there is said to
- A PROCESS THAT ENTAILS IDENTIFYING A be an agreement. An agreement which is
LOCATION FOR EVERY TEMPORARY FACILITY. enforceable by law is a “Contract”
ITS OBJECTIVES ARE OPTIMIZING EFFICIENCY
AND COST EFFECTIVENESS AND PROMOTING PROMISOR
SAFETY AND SECURITY ON SITE. - Offer made by one person
PROMISEE
TIME EXTENSIONS - Acceptance of offer made by the other person
- ALL CONSTRUCTION CONTRACTS ALLOW THE CONSIDERATION
CONSTRUCTION PERIOD TO BE EXTENDED - Doing of an act or abstinence from doing a
WHERE THERE ARE DELAYS THAT ARE NO THE particular act by promisor for promise
CONTRACTOR’S FAULT. TIME EXTENSIONS ARE
ADDED TO THE ORIGINAL DURATION AND ARE
ESTABLISHED CONDITIONS OF THE CONTRACT. TYPES OF CONTRACTS
1. Lumpsum contract
CHANGE ORDER - the contractor offers to do the whole work
- MODIFICATIONS TO THE ORIGINAL CONTRACT 2. Item rate contract
DOCUMENTATION AND IS DISCUSSED ON THE - called a schedule contract, in this contract, the
GENERAL CONDITION. contractor undertakes the execution of work on
an item rate basis
VALUE ENGINEERING 3. Lumpsum and schedule contract
- A MONETARY INCENTIVE FOR A - the contractor offers to do a particular work at
CONSTRUCTION CONTRACTOR TO INNOVATE. a fixed sum within a specified time as per plans
and detailed specifications
LIQUIDATED DAMAGES 4. Cost plus fixed fee contract
- THE DAMAGE TO THE OWNER DUE TO - desirable when the scope and nature of the
CONTRACTOR OVERRUNNING THE DAY OF THE work can at least be broadly defined
PROJECT COMPLETION. THE CONTRACTOR PAYS 5. Cost plus percentage of cost contract
FOR EACH DAY OVERRUNNING A SUM EQUAL TO - instead of awarding the work on lumpsum or
THE SUM LOST BY THE OWNER. item rate basis, it is given on certain percentage
over the actual cost of construction
 6. Special contracts
a. Turn-key Contract - an integrated contract in Compensation for delay in completion of
which all works pertaining to various disciplines work
such as civil, electrical, mechanical etc. are in the - the contractor is liable to pay compensation to
hands of a single contractor called the main the owner for the delay attributed to him in
contractor completion of work.
b. Package Contract - two or more related jobs,
each of which could form a separate contract, are Liquidated damages
combined in a single contract. In this type of - it is a fixed stipulated sum payable by the
contract, plan of work and standards are contractor on account of penalty for delays and
established, and the work is carried out does not bear any relationship to the real
accordingly by the contractor damage to the owner.
c. Negotiated Contract - negotiation across the
table takes place between representatives of the Debitable agency
owner and the main contractor for project cost - whenever the contractor fails to fulfil his
and other conditions of contract. contractual obligation in respect of progress or
d. Continuing Contract- new or additional work quality of work even after giving due notice by
is awarded to the contractor based on agreed the owner, it becomes necessary to appoint a
terms and conditions of an existing contract debitable agency which works at the cost and
e. Running Contract- Such contracts provide risk of the contractor.
goods and services at specified intervals or as
and when required by the owner. Valuation of variations
- based on change orders issued in writing by the
owner. generally, the variation in individual items
Important conditions of contracts connected of work should not be more than 25% and
with contractual problems variation in total cost should not exceed 10%.

Time of completion Settlement of disputes

- the contractor is required to complete the work - efforts should be made to resolve disputes
within the agreed time of completion which is amicably between the owner and the contractor
specified in a suitable unit of time. through mutual discussions and negotiations.

Delay and extension of time Force of nature and natural disasters

- delay in completion of work not attributed to - these disasters along with occurrence of riots,
the contractor should be brought to the notice of civil commotion, revolt etc. are beyond the
the owner by the contractor in writing, within control of the contractor and may lead to
the time specified in the contract, for seeking financial and time loss.
extension of time.
Price escalation
Penalty - during execution of the work, labor wages and
- it is a fine imposed on the contractor for material prices may increase as a result of
nonfulfillment of his contractual obligations such inflation.
as failure to maintain required progress of work.
Termination of contract 5. Standard specifications- are prepared for
- the owner can terminate the contract in the various materials or group of materials for the
event of default or bankruptcy of the contractor guidance of all concerned with construction or
and may impose penalty as per the contract construction industry.
agreement.
6. Manufacturer’s specification- manufacturers
prepare specifications of their products for the
Specifications are statements which describe guidance of users. These specifications also
the nature and class of work, materials to be include installation instructions and other
used, labor to be employed, method of work, guidelines for use and maintenance of products.
precautions to be taken, quality of workmanship
etc.
Specifications serve the following purposes: Contract- is used to describe the combination of
- Guide the bidder at the time of tendering for two (2) sets of documents: the agreement and
arriving at a fair price for the work involved. the contract documents.
- Provide guidance for execution and supervision
of work and purchase of materials. Agreement- is used to describe the agreement
- State the acceptance criteria for different items signed by the owner and the contractor,
of work. excluding the contract documents.

Contract documents- are attached to the

TYPES OF SPECIFICATION agreement identified therein as contract
documents, including all additions, deletions and
1.Contract specifications- specifications modifications.
prepared for a particular job to accompany the
working drawings are contract specifications. Special provisions or conditions- are
instructions which are issued prior to bidding to
2. General specifications- also called brief supplement and/or modify the drawings,
specifications. These give a general idea of the specifications and/or general conditions of the
class and type of work giving brief descriptions contract.
of materials, quality and workmanship.
Specifications- are the written or printed
3. Detailed specifications- provide a detailed description of the work to be done describing
description of each item as per schedule of qualities of the material to be used, the
quantities, specifying the materials to be used equipment to be installed and the mode of
including their proportions, method of work construction.
quality of workmanship required etc.
Drawings- are graphical presentations of the
4. Guide specification- provide a guideline for work, including supplementary details and shop
preparing contract specifications and give a drawings.
broad idea about class and type of construction
for a particular purpose. General conditions of contract- pertain to the
roles, rights and obligations of the contracting
parties, and the rules and procedures by which
the parties and everyone concerned will be able • Objection- the subject matter of
to meet their obligations and perform the works the contract, which in this case is
covered under the contract. the construction of the house, must
be lawful and definite.
Essential components of construction • Cause- the reason or purpose of
Contracts in the Philippines the contract must be lawful.
• Scope of work- detailed description of
specific tasks to be performed • Licensing and Permits- the construction
firm must be properly licensed by the
• Time frame- project timeline: start date, Philippine Contractors’ Accreditation
completion date, and key milestones. Board (PCAB).

• Payment terms- clear statement of the • Compliance with Building Code-

total contract price. construction projects must adhere to the
National Building Code of The Philippines
• Responsibilities and obligations- lists (presidential decree no. 1096).
who’s responsible for what, from safety
rules to quality standards. everyone is • Warranties and liabilities- under the
aware of their responsibilities and civil code, the contractor provides a
expectations. warranty against hidden defects and poor
workmanship.
• Change orders- process for submitting
and approving changes to the scope, costs, • Insurance and bonds- to protect both
or timelines, including documentation parties, it is common practice to include
requirements. insurance and bond requirements in the
construction contract. performance bonds
• Dispute resolution- specified processes ensure that the contractor completes the
for resolving disputes, such as mediation project according to the contract terms.
or arbitration, including applicable laws.
• Resolution of disputes- this clause may
• Termination clauses- grounds for stipulate that dispute be resolved through
termination by either party, including mediation or arbitration rather than
notice periods and obligations upon litigation.
termination.
• Termination and breach of contract-
Legal implications of construction contract in both parties must be aware of the
the Philippines conditions under which the contract can
• Contract formation and essentials be terminated. grounds for termination
might include significant delays, failure to
• Consent- both parties must meet project specifications, or non-
mutually agree on the terms and payment.
conditions of the contract.
• Consumer protection- the consumer act
of the Philippines (republic act no. 7394)
 also provides protection to homeowners. needed to create the ultimate product can
this includes ensuring that the materials be raw or even semi-finished goods.
used in construction meet safety and
quality standards.
• Machine- tools necessary in producing its
The contract document consists of the contract desired output. The production process
agreement (on non-judicial stamp paper of greatly benefits from the new technology
prescribed value) and the following set of in machines.
documents, each page of which is signed both by
the owner and the contractor. • Methods- are the usual and
• Cover title page recommended ways of carrying out
• Contents page certain operations in accordance with
• Notice Inviting Tender (NIT) established systems and business
• Tender form management procedures.
• Schedule of issue of materials
• Drawings
• Specifications • Money- the foundation of the business
• Conditions of contract management process starts with money. A
company needs money to produce goods
or offer services.
GROUP 3
Construction project organizations
PROJECT CONSTRUCTION ORGANIZATION,
LEGAL STRUCTURE, AND CONSTRUCTION Client/owner- The individual or entity that
PROJECT REQUIREMENTS commissions the project. The client may also
finance the project.
Organization- is a group of individually who are
cooperating willingly and effectively for a Project manager- The person responsible for
common goal. planning, executing, and closing the project. They
oversee the day-to-day operations, budgets,
Project organization- defines the human timelines, and coordination between different
infrastructure and identifies roles and teams.
responsibilities of each position that facilitates
the coordination and implementation of project Contractors- General Contractor: Manages the
activities. entire construction site and hires subcontractors.
Subcontractors: Specialize in specific tasks
5 structural elements of an organization: (plumbing, electrical work, HVAC, etc.)
• Manpower- the total number of people
who can work to get something done. Architects/designers- Create the plans and
designs for the project. They work closely with
• Materials- Another basic need of any the client to ensure the design aligns with the
business is the materials that are used to vision.
produce the final goods. The materials
Engineers- Include civil, structural, electrical, groups of employees are organized
and mechanical engineers who ensure that the according to the function they perform.
design is functional, safe, and meets technical
standards. • Project TF (Task Force) organization-
traditional hierarchical structure
Supplier- Provide the materials needed for the organization that is defined by PMI as a
project. Hierarchical Structure, Projectized
Organization.
Consultant- These can include environmental
consultants, safety inspectors, or quality
assurance experts. • Matrix organization- a company
structure that is organized in a way that
Major elements of organizational structure: there are two or more 'bosses' in charge
• Distribution of functions- an of every project.
organizational structure refers to how
tasks, roles, and responsibilities are Legal structure for a construction company-
allocated across different depends on several factors, including the size
departments, teams, or individuals to and scope of the project, the contractual
ensure the organization operates agreements, and the roles and responsibilities of
efficiently. all parties involved.

• Vertical and horizontal authority Common legal structure

relationships- This relationship deals • Contractual agreement- The most
with the hierarchical structure of an important legal framework for a
organization, reflecting the chain of construction project. These contracts
command and the reporting specify timelines, deliverables,
relationships from top to bottom. responsibilities, payment terms, and
penalties for delays or non-compliance.

• Communication and decision Types of construction contracts:

process- the manner in which formal • Lump sum / fixed price
decisions are made and by whom. contracts- The contractor agrees
to complete the project for a set
• Policies- The decision, rules or price.
guidelines established.
• Cost-plus contracts- The
Types of project organization: contractor is reimbursed for actual
• Functional organization structure- s a costs plus an additional fee for
team structure that groups employees profit.
into different departments based on areas
of expertise. This type of structure is one
of the most common types in business, • Time and material contracts-
especially in larger companies, where The contractor is paid based on the
 time spent on the project and the bond ensures subcontractors and
cost of materials used. suppliers are paid.

• Unit price contracts- type of Construction projects requirements:

contract where the client agrees to • Permits and approval- Projects require a
pay the contractor a set price for series of permits and approvals before
each unit of work completed. construction can begin, including
environmental permits, building permits,
• Project delivery methods- The way electrical and plumbing permits, and
responsibilities are divided between the zoning approvals.
parties.
• Design and engineering plan- a set of
Common methods: approved plans is essential to guide
• Design-bid-build- The owner construction. These include architectural
hires an architect to design the blueprints, structural drawings, electrical
project and then bids it out to a and mechanical systems, etc.
contractor.
• Project timeline- A construction
• Design-build- A single entity schedule that outlines key milestones,
handles both the design and phases, and completion dates. This
construction. timeline helps in managing resources,
labor, and budget effectively.
• Construction management- A
construction manager is hired early in the • Budget and financing- Securing the
process to oversee design and necessary financing for the project is
construction. critical. A detailed budget should include
cost estimates for materials, labor,
• Legal regulations and permits- These equipment, permits, and contingency
include local building codes, funds for unforeseen expenses.
environmental regulations, health and
safety standards (like OSHA in the U.S.), • Safety and standards- Compliance with
zoning laws, and planning permissions. safety regulations is mandatory.
Construction sites must adhere to local
health and safety laws to minimize
• Insurance- Construction projects accidents and risks. This may involve
generally require several types of safety equipment, training programs, and
insurance, such as liability insurance, inspections.
worker’s compensation, and property
insurance. • Quality control and inspections-
Inspections must be conducted
• Bonds- A performance bond guarantees throughout the project to ensure that
that the contractor will complete the work complies with the design
project as per the contract. A payment specifications, legal standards, and quality
requirements. These inspections occur at
 different phases (e.g., after the foundation
is laid, after electrical wiring is installed,
etc.)

• Environmental requirement- Many

jurisdictions have environmental
protection requirements related to waste
disposal, water usage, air quality, and
noise pollution. Compliance with these
standards is essential to avoid fines and
project delays.

• Labor and human resources- Hiring

skilled labor, organizing work shifts, and
complying with labor laws (minimum
wage, working hours, etc.) are also critical
components of the project.