CIAP DOCUMENT

101 & 102

WHAT IS CIAP DOCUMENT
CIAP DOCUMENT
The Construction Industry Authority of the Philippines (CIAP) is an attached agency of the
Department of Trade and Industry (DTI) which was created under Presidential Decree No. 1746, as
amended by Executive Order Nos. 679 and 768,

It incorporates prevailing industry best practices so that it may contribute to the enhancement of fair
contractual relationships in the construction industry.

To promote, accelerate, and regulate the growth and development of the construction industry.

2
1 CIAP DOCUMENT 101
Uniform General Conditions of Contract for
Government Construction

3
SECTION 1
DEFINITIONS AND INTERPRETATIONS
◦ Bid
◦ An offer to perform the Work under the terms and conditions stated in the Contract

◦ Bid Document
◦ All documents issued by the Owner giving instructions to prospective bidders and providing them with information about
the site

◦ Bill of Quantities
◦ A list of specific items of the Work and their corresponding unit prices, lump sums and provisional sums

◦ Commencement Date
◦ The date when the contractor is obliged under the Contract to commence the Work.

◦ Contractor’s Equipment
◦ All equipment, facilities, supplies, appliances, material or things required for the execution and completion of the Work and
which shall not form or are not intended to form part of the Permanent Works

◦ Contract
◦ The Contract Agreement and the Contract Documents

◦ Contractor
◦ The individual, partnership or corporation which is allowed by the Bid of Documents to submit Bid

4
SECTION 1
DEFINITIONS AND INTERPRETATIONS
◦ Detour
◦ A means of access such as temporary road or bridge for the use if the travelling public to replace the temporary use of the
site.

◦ Owner
◦ The government of the Republic of the Philippines acting through the office, agency, political subdivision, or the
government – owned or controlled corporation entering into the Contract as Owner.

◦ Permanent Works
◦ All permanent structures and all other project features and facilities required to be constructed and completed in accordance
with the Contract

◦ Plans
◦ The approved drawings, profiles, typical cross-section, working drawings and supplemental drawings or exact reproductions
thereof which show the locations, description, dimensions and details of the Work.

◦ Plant
◦ The machinery, apparatus and the like intended to form part of the Permanent Works

◦ Right of Way
◦ A general term denoting a right to use of property or an interest therein, acquired for the purpose of enabling the Contractor
to gain access to the site during the performance of the Works

5
SECTION 1
DEFINITIONS AND INTERPRETATIONS
◦ Site
◦ The place provided by the Owner where the Work shall be executed.

◦ Slippage
◦ A delay in work execution occurring when actual accomplishment falls below the target as measured by the difference
between the scheduled and actual accomplishment of the Work by the Contractor.

◦ Specifications
◦ The contract document denominated as specifications listed including any additions thereto or modifications thereof by the
Owner’s Representative or submitted by the Contractor

◦ Subcontractor
◦ Any person to whom a part of the Works has been subcontracted by the Contractor with the express approval of the Owner’s
Representative.

◦ Temporary Works
◦ All temporary works of every kind required in or about the execution and completion of the Works.

◦ Works
◦ The Permanent Works to be executed by the Contractor in accordance with the contract including the furnishing of all labor,
materials, equipment and others incidental.

6
SECTION 2
OWNER AND OWNER’S REPRESENTATIVE

Authority and Duties of the Owner’s Representative

◦ He shall decide all questions which may arise:

▫ As to the quality and acceptability of the Work performed and the rate of progress
▫ As to the interpretation of the plans and specifications
▫ As to the acceptable fulfillment of the Contract by the Contractor

◦ The Owner’s representative may suspend the Works

▫ To current conditions unsafe for the workmen and the general public
▫ To carry out provisions of the Contract or written orders of the Owner’s
Representative.

7
SECTION 3
ASSIGNMENT AND SUBCONTRACTING

◦ Assignment of Contract Prohibited

▫ The contractor shall not assign the Contract or any part thereof or any benefit therein or
thereunder
◦ Subcontracting
▫ The contractor shall not sublet the whole of the Works
▫ The contractor shall not be required to obtain such consent for
■ The purchase of materials which are in accordance with standards specified in the
Contract
■ Subcontracting of any part of the Works to a Named and/or Nominated
Subcontractor
■ The owner shall be furnished a complete copy of the subcontract agreement prior to
the commencement of the work of the subcontractor

8
SECTION 4
CONTRACT DOCUMENTS

Contract Documents
◦ The contract documents which are attached to the Contract Agreement shall
include the following documents:

▫ Plans/Drawings
▫ Specifications
▫ Special Conditions of Contract
▫ General Conditions of Contract
▫ Invitation to Bid
▫ Instructions to Bidders
▫ Addenda
▫ Bid Form
▫ Performance Security
▫ Prequalification Statements
▫ Credit Line
▫ Notice of Award of Contract and Contractor’s “Conforne” t
▫ Other Contract Documents which the Owner may require

9
10
SECTION 5
DRAWINGS

◦ Custody and Supply of Drawings

▫ The Drawings shall remain in the custody of the Owner’s Representative, but two
authentic copies thereof shall e furnished to the Contractor free of charge.
◦ Drawings to be kept on Site
▫ One copy of the Drawings furnished to the Contractor shall be kept by the latter
on the site and the same shall, at all reasonable times, and at the request of the
Owner’s Representative be available to him for his reference and use
◦ Failure by the Contractor to Submit Drawings
▫ Failure or inability of the Owner’s Representative to issue any drawings shall take
such delay into account in determining the Contractor’s claim for extension of
time and/or to additional payment

12
SECTION 6
SUPPLEMENTAL DRAWINGS; RESPONSIBILITY OF CONTRACTOR

◦ Supplementary Drawings and Instructions

▫ The Owner’s Representative shall have authority to issue to the Contractor.
◦ Permanent Works Designed by Contractor
▫ The Contractor shall provide necessary drawings, specifications and other
information.
◦ Contractor’s Responsibility Unaffected by Approval
▫ The drawing shall be supplemented by working drawings which the Contractor
shall prepare.
▫ All working drawings must be approved by the Owner’s Representative but such
approval shall not relieve the Contractor of his responsibility to complete the
Work.
▫ The Contractor shall not take advantage of an apparent error or omission in
Drawings or Specifications.
▫ The Owner’s Representative shall current the error or interpret the Drawings or
Specifications to supply the omitted detail.

13
SECTION 7
CONTRACTOR’S REPRESENTATION AND WARRANTY

◦ Submission of Bid: What it Implies

▫ By submitting a Bid, a Bidder shall be deemed to be making a representation and
warranty to the owner
■ His prequalification statements and other relevant information provided to the owner were
true and correct

▫ A contractor shall be deemed to be making a continuing representation and

warranty to the owner that until final acceptance of the Work

14
SECTION 8
GENERAL OBLIGATIONS

◦ Intent of Contract
▫ The intent of the Contract is to provide for the complete construction of the Work described by the
Contractor and strictly in accordance thereof within the Contract Time.
◦ Contractor’s General Responsibility
▫ The contractor shall provide all labor, supervision, materials, Constructional Equipment, and all other
things.
◦ Familiarity with the Works
▫ The Contractor shall take steps to satisfy himself of the precise nature and exact location of the
Works, the type of equipment and facilities he shall need.
◦ Compliance with Labor Laws
▫ The Contractor shall comply with all laws affecting labor

15
SECTION 9
CONTRACT AGREEMENT

◦ Terms of Conditions
▫ The contractor shall execute the Contract Agreement
◦ Implied Condition of Contract
▫ It shall be an implied condition of every Contract.
◦ Joint and Solidary Liability
▫ When two or more contractors submit a common Bid

16
SECTION 10
PERFORMANCE SECURITY

◦ In General
▫ The IRR provisions on performance security shall form part of these
General Conditions but in case of conflict between these General
Conditions on performance security and the IRR provisions on the
same subject, the IRR shall prevail.
◦ Period of Validity
▫ The Security which the contractor shall be required in the Contract to
provide in favor of the Owner
◦ Claim Against Security
▫ Any claim by the Owner against the Security shall be in writing, stating the
factual basis of or the nature of the Contractor’s default in respect of which the
claim is made or presented to or served upon the Contractor.

17
SECTION 11
INSPECTION OF SITE

◦ Sworn Statement of Site Inspection

▫ The contractor shall submit to the Owner a statement under oath certifying to his
inspection and examination of the Site and its surroundings

18
SECTION 12
CONTRACTOR’S BID; ITS SCOPE

◦ Sufficiency of Bid
▫ The contractor shall be deemed to have satisfied himself as to the correctness and
sufficiency of the Bid and of the rates and prices stated in the Bill of Quantities,
all of which shall, except in so far as it is otherwise provided in the Contract
cover all his obligations under the Contract.
◦ Adverse Physical Obstructions or Conditions
▫ If during the execution of the Works the Contractor encounters subsurface or
latent or physical conditions, other than climatic conditions on the Site.

19
SECTION 13
CONTRACTOR’S WORK

◦ Conformity with the Plans and Specifications

▫ All work performed and all materials furnished shall be in conformity with the
lines, grades, cross sections, dimensions, and material requirements, including
tolerances, shown on the Plans or indicated in the Specifications.

20
SECTION 14
CONTRACTOR’S WORK PROGRAM

◦ Work Program to be Submitted

▫ The Contractor shall, within the time stated in the Contract, or after the receipt
of the Notice to Proceed, submit to the Owner’s Representative for his approval
the Contractor’s Work Program.
◦ Contractor’s Revised Work Program
▫ If at anytime it should appear that there is a slippage in the actual progress of
the Work of the Contractor, the Contractor shall submit a Contractor’s Revised
work Program to ensure its completion within the Contract Time
◦ Cash Flow Estimate to be submitted
▫ The Contractor shall provide to the Owner’s Representative for his information
a detailed cash flow estimate in quarterly period

21
SECTION 15
CONTRACTOR’S DUTY OF SUPERVISION

◦ Contractor’s Superintendence
▫ The contractor shall give or provide all necessary superintendence during
the execution of the Works and for such time as the Owner’s Representative
may consider necessary for the performance of the Contractor’s obligations
under the Contract.

22
SECTION 16
CONTRACTOR’S EMPLOYEES

◦ Degree of Skill Required

▫ The contractor shall provide and employ on the Site in connection with
the execution, completion and maintenance of the Works:
■ Only such technical assistants as are skilled and experienced in their
respective callings and such sub-agents, foremen and leading hands
as are competent to give proper supervision to the work they are
required to supervise; and
■ Such skilled, semi-skilled, and unskilled labor as is necessary for the
proper and timely execution and maintenance of the Works.

23
SECTION 17
SETTINGS OUT
◦ The contractor shall be responsible for the true and proper settings out of the Works
in relation to original points, lines and levels of reference given by the Owner’s
Representative in writing and for the correctness, subject as above-mentioned, of the
position, levels, dimensions and alignment of all parts of the Works and for the
provision of all necessary instruments, appliances and labor in connection therewith

24
SECTION 18
BOREHOLES AND EXPLORATORY EXCAVATION

◦ If at any time during the execution of the Work, the Owner’s Representative shall require the
Contractor to make boreholes to carry out exploratory excavations, such requirements shall
be ordered in writing and shall be paid for at applicable unit prices stated in the Contract
Documents for the actual work exceeding the quantity stated in the Bid Form, or deemed to
be Extra Work if no applicable unit prices are available

25
SECTION 19
SAFETY

◦ Contractor’s Responsibility for Safety, Protection and Security

▫ Except for “Special Risks”, the contractor is solely responsible for the safety,
protection, and security of his personnel, third persons, the Works,
Equipment's, installations, and the like.
◦ Owner’s Responsibility for Safety
▫ If the Owner shall carry out work on the Site with its own workmen, it shall,
in respect of such work:
■ Have full regard to the safety of all persons entitled to be upon the Site:
and
■ Keep the Site in an orderly state appropriate to the avoidance of danger
to such persons.

26
SECTION 20
RESPONSIBILITY FOR THE WORKS

◦ Contractor to be responsible
▫ Until the acceptance of the works by the owner, the contractor shall have
charge and care of the works and shall take every precaution against damage
or injury to any part thereof by the action of the elements or from any other
cause.
◦ Responsibility for Loss or Damage
▫ If any loss or damage happens to the Works, or any part thereof, or materials
or Plant for incorporation therein, during the period for which the Contractor
is responsible for the care thereof, from any cause whatsoever, the
Contractor shall rectify such loss or damage.

27
SECTION 20
RESPONSIBILITY FOR THE WORKS

◦ Exemption from Liability

▫ The Contractor acted with due diligence in order to minimize the extent of
the damage to the Works
▫ The Contractor is not guilty of contributory fault or negligence
▫ The Contractor faithfully complied with his duty under Clause 19.1 of the
General Conditions
▫ During the occurrence of the event of force majeure or immediately
thereafter, the Contractor promptly in good faith complied with the
instructions of the Owner’s Representative to minimize the loss or damage
to the Works.

28
SECTION 20
RESPONSIBILITY FOR THE WORKS

◦ Exemption from Liability

▫ All insurances required under the Contract for the Contractor to maintain
were in effect up to the full value for the required cover, the Contractor
assigned any right of recovery thereunder in favor of the Owner, and the
Owner is able to recover to the full amount of such cover
▫ The Contractor renders the Owner free and harmless from any and all claims
by the third persons for injury to persons or damage to property against the
Owner arising from or due to the same event of force majeure or as a
consequence thereof.

29
SECTION 21
RESPONSIBILITY FOR NEGLIGENCE

◦ Extent of Contractor’s Responsibility

▫ The contractor shall assume all risks and liability for accidents of damages that
may occur to persons or property during the prosecution of the Work, by reason
of negligence or carelessness by himself, his agents or employees, and shall
also assume all direct or indirect damage that may be suffered or claimed on
account on any such construction or improvement during the time thereof and
until the work is accepted.
▫ The Contractor shall render the Owner free and harmless from any claims for
injuries or damages to others or to their property.

30
SECTION 22
RESPONSIBILITY FOR INJURY TO PERSONS

◦ Accident or Injury to Workmen and Third Persons

▫ The Contractor shall render the Owner free and harmless for any damages or
compensation payable at law in respect or in consequence of any accident or
injury to any employee of the Contractor or to third persons and shall meet all
claims, demands proceedings, costs, charges, and expenses whatsoever in
respect thereof or in relation thereto

31
SECTION 23
INSURANCE PROTECTION

◦ Insurance Which Contractor shall Provide

▫ Comprehensive Insurance for Third Party Liability due to Contractor’s direct
or indirect act or omission causing damage to third persons.
▫ Transportation to the Project Site of equipment, machinery, materials, and
supplies owned by the Contractor.
▫ Contractor All Risks Insurance

32
SECTION 23
INSURANCE PROTECTION

◦ Evidence and Terms of Insurances

▫ The Contractor shall provide evidence to the Owner that the insurances
required under the Contract have been affected and shall, within a
reasonable time, provide copies of the insurance policies to the Owner.

33
SECTION 23
INSURANCE PROTECTION

◦ Adequacy of Insurances
▫ The Contractor shall notify the insurers of changes in the nature, extent or
program for the execution of the works and ensure the adequacy of the
insurances at all times in accordance with the terms of the Contract and
shall, when required, produce to the Owner the insurance policies in force
and receipts for payment of the current premiums

34
SECTION 23
INSURANCE PROTECTION

◦ Remedy on Contractor’s Failure to Insure

▫ If the Contractor fails to obtain and keep in force the insurances referred to
herein or any other insurance which he may be required to obtain under the
terms of the Contract, the Owner may obtain and keep in force any such
insurances and pay such premiums as may be necessary for the purpose and
from time to time deduct the amount to be paid by the Owner including 25%
interest thereon from any monies due or which may become due to the
Contractor.

35
SECTION 23
INSURANCE PROTECTION

◦ Compliance with Policy Conditions

▫ In the event the Contractor fails to observe the above safeguards, the Owner
may, at the Contractor’s expense, take whatever measure is deemed
necessary for its protection and that of the Contractor’s personnel and third
parties, and/or order the interruption of dangerous works.

36
SECTION 23
INSURANCE PROTECTION

◦ Replacement of Insurance Policy

▫ The contractor shall immediately replace the insurance policy obtained as
required in the Contract, without the need of the Owner’s demand, with a
new policy issued by a new insurance company acceptable to the Owner,
where the issuer of the insurance policy to be replaced has become bankrupt,
sued for suspension of payments, or where its license to engage in business
or its authority to issue insurance policies has been suspended or cancelled
by the Insurance Company.

37
SECTION 24
OBSERVANCE OF LAWS

◦ Laws to be Observed
▫ The Contractor shall keep himself fully informed of all laws, ordinances, regulations,
orders and decrees of government agencies having any jurisdiction or authority, which,
in any manner, may affect those engaged or employed in the Work, or the conduct of
the Work.
◦ Permits, Licenses, and Taxes
▫ The Contractor shall procure all permits and licenses, pay all charges, fees, and taxes,
and give all notices necessary and incidental to the due and lawful prosecution of the
Work.

38
SECTION 25
METRICATION

◦ The Work has been designated in the Metric System, unless otherwise
specifically excepted, and equipment, materials, standards and drawings
required for the execution and completion of the work shall all be
supplied in metric units.

39
SECTION 26
DISCOVERED TREASURE

◦ All fossils, coins, articles of value or antiquity, and structures or other

remains or things of geological or archeological interest discovered on
the site of the Work shall be considered the property of the Owner.

40
SECTION 27
USE OF PROPERTY OR MATERIALS

◦ Patented Devices, Materials, and Processes

▫ If the Contractor employs any design, device, material, or process covered by
letters of patent or copyright, he shall provide for such use by suitable legal
agreement with the patentee or owner.
◦ Taxes and Other Charges for Materials
▫ Except where otherwise stated, the Contractor shall pay all taxes and charges,
and other payment or compensation, if any, for getting stone, sand, gravel,
clay or other materials required for the Works.

41
SECTION 28
EFFECT OF WORK ON OTHER PROPERTY

◦ Interference with Traffic and Adjoining Properties

▫ All operations necessary for the execution of the Works and for the
construction of any Temporary Works shall, in so far as compliance with the
requirement of the Contract permits, be carried on in order not to interfere
unnecessarily or improperly with public convenience or access to the use
and occupation of public or private roads and footpaths or of properties
whether in the possession of the Owner or any other person.

42
SECTION 28
EFFECT OF WORK ON OTHER PROPERTY

◦ Furnishing of Right of Way

▫ The Owner will be responsible for delivering the Site to the Contractor.
However, the Contractor shall bear all expenses and charges for temporary
or permanent rights-of-way required by him in connection with access to the
Site of the Work, materials sources, material or equipment storage, or other
construction operations outside of the permanent of right-of-way.

43
SECTION 28
EFFECT OF WORK ON OTHER PROPERTY

◦ Protection and Restoration of Property and Landscape

▫ The Contractor shall be responsible for the preservation of all public and
private properties within the vicinity of the Site and shall protect carefully
from disturbances or damage all land monuments and property marks until
the Owner’s Representative has witnessed or otherwise referenced their
location and shall not move them until directed.

44
SECTION 28
EFFECT OF WORK ON OTHER PROPERTY

◦ Maintenance of Detours
▫ The Contractor will be required to construct and maintain temporary
structure around streets or bridges. The Contractor will be required to
build and maintain suitable temporary structures around or over culverts to
serve the residents living in the area of traffic originating from the section
of road under Contract.

45
SECTION 29
TRANSPORT OF CONSTRUCTIONAL PLANT AND MATERIALS

◦ Avoidance of Damage to Roads

▫ The Contractor shall comply with all legal load restrictions in the hauling
of materials on public roads and use every reasonable means to prevent
any of the highways or bridges on the routes to the Site from being
damaged or injured by any traffic of the Contractor or any of his
Subcontractors.

46
SECTION 29
TRANSPORT OF CONSTRUCTIONAL PLANT AND MATERIALS

◦ Transport of Contractor’s Equipment or Temporary Works

▫ Except as provided in the Contract Agreement or in the Bid Documents,
the Contractor shall be responsible for and pay the cost of strengthening
any bridge or altering or improving any road connected with or on the
routes to the Stie to facilitate the movement of Contractor’s equipment or
Temporary Works.

47
SECTION 29
TRANSPORT OF CONSTRUCTIONAL PLANT AND MATERIALS

◦ Transport of Materials or Plant

▫ If, not withstanding Clause 29.1, any damage occurs to any bridge or road
communicating with or on the routes to the Site arising from the transport
of materials or Plant, the Contractor shall notify the Owner’s
Representative with a copy to the appropriate authorities as soon as he
becomes aware of such damage or as soon as he receives any claim from
the authority entitled to make such claim.

48
SECTION 29
TRANSPORT OF CONSTRUCTIONAL PLANT AND MATERIALS

◦ Waterborne Traffic
▫ Where the nature of the Works is such as to require the use by the
Contractor of waterborne transport the provisions of this Clause shall be
constructed as though “road” included a lock, dock sea wall or other
structure related to a waterway and “vehicle” included craft, and shall have
effect accordingly

49
SECTION 30
COORDINATION WITH UTILITIES

◦ The Owner’s Representative shall promptly notify all utility

companies, pipeline owners, r other parties affected and endeavor to
have all necessary adjustments of the public or private utility fixtures,
pipelines and other appurtenances within or adjacent to the limits of
construction, made as soon as practicable.

50
SECTION 31
SIGN BOARDS

◦ The Contractor shall, when required in the Contract Agreement,

provide and install project signboards. Each board shall conform to the
construction, erection and message details shown on the Project Sign
Standard Detail Drawing in the plans.

51
SECTION 32
COOPERATION OF CONTRACTORS

◦ Whenever Work being done by other contractors is contiguous or

related to the Work included in this Contract, the sequence of handling
the Work shall be such sequence may be determined by the Owner’s
Representative. The respective rights of the various interests involved
shall be established by the Owner’s Representative in order to secure
the completion of the various portions of the Work in general harmony

52
SECTION 33
CONTRACTOR TO KEEP SITE CLEAR

◦ During the execution of the Works, the Contractor shall keep the Site
reasonably free from all unnecessary obstruction, store or dispose of
any Contractor’s Equipment and surplus materials and clear away and
remove from the Site any wreckage, rubbish or Temporary Works no
longer required.

53
SECTION 34
FINAL CLEAN UP

◦ Upon the completion of the Work and before acceptance and final
payment is made, the Contractor, at his own expense, shall clean the
completed Work and adjacent property defaced or occupied by hum in
connection with the Work of all rubbish, weeds, brush, excess
materials, false works, temporary structures and equipment. All parts
of the Work shall be left in a neat, presentable condition and as
approved by the Owner’s Representative

54
SECTION 35
CONTRACTOR’S WARRANTY IN REGARD TO CONTRACT

◦ Warranty Against Solicitation

▫ The Contractor warrants that he has not employed or retained any person
to solicit or secure the Contract upon any agreement for a commission,
percentage, brokerage fee or any consideration. For breach or violation of
this warranty, the Owner shall have the right to terminate the contract
without liability such commission, percentage, brokerage, or contingent
fee.

55
SECTION 35
CONTRACTOR’S WARRANTY IN REGARD TO CONTRACT

◦ Warranty Against Benefits

▫ The Contractor warrants that he has not given or promised to give any
money, gift, advantages or benefit to any person directly or indirectly to
secure this Contract, whether or not such person be employed by the
Owner.

56
SECTION 36
LABOR

◦ The Contractor shall make his own arrangement for the engagement of
labor, local or otherwise, and save insofar as the Contract otherwise
provides, for sanitary facilities in accordance with the health
regulations. The Contractor shall provide on the Site, to the satisfaction
of the Owner’s Representative, and adequate supply of drinking and
other water for the use of the Contractor’s Staff and work people.

57
SECTION 37
MATERIALS, PLANT & WORKMANSHIP

◦ Quality of Materials, Plant and Workmanship

▫ All materials, plant and workmanship shall be:
■ Of the respective kinds described in the Contract and acceptable to the
Owner’s Representative, and
■ Subjected from time to time to such tests as the Owner’s Representative may
require at one or more or all of the following places; the place of manufacture,
fabrication or preparation, on the Site or any other convenient place as may be
specified in the Contract or by the Owner’s Representative.
▫ The Contractor shall provide such assistance, labor, electricity, fuels,
stores, apparatus and instruments as are normally required for examining,
measuring and testing any materials or Plant and shall supple sample of
materials, before incorporation in the Works, for testing as may be selected
and required by the Owner’s Representative.

58
SECTION 37
MATERIALS, PLANT & WORKMANSHIP

◦ Sampling, Testing and Cited Specifications

▫ All materials including those furnished by the Owner shall be inspected,
tested and accepted by Owner’s Representative before incorporation into
the Work.
▫ Any Work wherein untested and/or unaccepted materials are used shall be
performed at the Contractor’s risk and shall be considered unacceptable,
unauthorized and will not be paid for.
▫ All samples shall be taken by the Contractor in the presence of the
Owner’s Representative or as otherwise directed by the Owner’s
Representative.

59
SECTION 37
MATERIALS, PLANT & WORKMANSHIP

◦ Sampling, Testing and Cited Specifications

▫ Unless otherwise specified, all references to methods of test or
specifications of PNS and others shall be construed to mean those current
methods of test or specifications adopted and published prior to the date of
the Contract.
▫ Unless the Owner’s Representative requires a different period, all tests
necessary to determine conformance of the Work and materials with the
Plans and Specifications will be made by the Owner’s Representative.

60
SECTION 37
MATERIALS, PLANT & WORKMANSHIP

◦ Cost of Samples
▫ All samples of Contractor-supplied materials shall be supplied by the
Contractor at his own cost.
◦ Cost of Tests
▫ The cost of any other test shall be borne by the Contractor if such test is:
■ Clearly intended by or provided for in the Contract, or
■ Particularized in the Contract(in cases only of test under load or of a test
to ascertain whether the design of any finished or partially finished work is
appropriate for the purposes which it was intended to fulfill) in sufficient
detail to enable the Contractor to price or allow for the same in his
Bid

61
SECTION 38
INSPECTION OF OPERATIONS

◦ Owner’s Access to Site

▫ The Owner’s Representative shall at all reasonable times have access to
the Site and to all workshops and places where the materials or Plant are
being manufactured, fabricated or prepared for the Works and the
Contractor shall afford every facility for and every assistance in providing
such access

62
SECTION 38
INSPECTION OF OPERATIONS

◦ Inspection and Testing

▫ The Owner’s Representative shall be entitled, during manufacture,
fabrication or preparation, to inspect and test the materials and Plant to be
supplied under the Contract.

63
SECTION 38
INSPECTION OF OPERATIONS

◦ Dates for Inspection and Testing

▫ The Contractor shall agree with the Owner’s Representative on the time
and place for the inspection or testing of any materials or Plant as provided
in the Contract.

64
SECTION 38
INSPECTION OF OPERATIONS

◦ Rejection
▫ If, at the time and place agreed in accordance with Clause 38.3 the Plant or
materials are not ready for inspection or testing or if, as a result of the
inspection or testing referred to in this Clause, the Owner’s Representative
determines that the Plant or materials are defective or otherwise not in
accordance with the Contract,. He shall reject the materials or Plant and
shall notify the Contractor thereof immediately.

65
SECTION 38
INSPECTION OF OPERATIONS

◦ Delegation of Authority
▫ The Owner’s Representative may delegate inspection and testing of
materials or Plant to an independent inspector.

66
SECTION 39
INSPECTIONS

◦ Inspection of Work
▫ All materials and each part or detail of the Work shall be subject to
inspection by the Owner’s Representative.
◦ Examination of Work Before Covering up
▫ No work shall be covered up or put out of view without the approval of the
Owner’s Representative and the Contractor shall afford full opportunity
for the Owner’s Representative to examine and measure any work which is
about to be covered up and/or put out of view.

67
SECTION 39
INSPECTIONS

◦ Uncovering and Making Openings

▫ The Contractor shall uncover any part or parts of the Works or make
openings in or through the same as the Owner’s Representative may, from
time to time, direct and shall reinstate and make good such part or parts to
the satisfaction of the Owner’s Representative
◦ Permanent Work Upon Foundation
▫ No Permanent Work shall be placed upon any foundation unless it shall
have been examined and approved by the Owner’s Representative
notwithstanding any delay on the part of the latter to examine it after
notice.

68
SECTION 40
REMOVAL OF IMPROPER WORK

◦ Owner to Issue Instructions to Remove Improper Work

▫ The Owner’s Representative shall have authority to issue instructions from
time to time, for:
■ The removal from the Site within such time or times as may be specified in the
instruction, of any materials or Plant which, in the opinion of the Owner’s
Representative, are not in accordance with Contract,
■ The substitution of proper and suitable materials or Plant, and
■ The removal and proper re-execution, not withstanding any previous test thereof or
interim payment thereof, of any Work which, in respect of
● Materials, Plant or workmanship, or
● Design by the Contractor for which he is responsible, is not, in the opinion
of the Owner’s Representative, in accordance with the Contract.

69
SECTION 40
REMOVAL OF IMPROPER WORK

◦ Default of Contractor in Compliance

▫ In case of default on the part of the Contractor in carrying out such instruction
within the time specified therein or, if none, within a reasonable time, the
Owner shall be entitled to employ and pay other persons to carry out the same
and all costs consequent thereon or incidental thereto shall, after due
consultation with the Owner and the Contractor, be determined by the Owner
and may be deducted by the Owner from any monies due or to become due to
the Contractor and the Owner’s Representative shall notify the Contractor
accordingly, with a copy to the Owner

70
SECTION 41
UNACCEPTABLE WORK AND MATERIALS

◦ Removal of Unacceptable and Unauthorized Work

▫ All work which does not conform to the requirements of the Contract will be
considered unacceptable. Unacceptable Work, whether the result of poor
workmanship, use of defective materials, damage through carelessness or any
other cause, found to exist prior to the final acceptance of the Work, shall be
removed immediately and replaced in an acceptable manner by the Contractor
at his own expense

71
SECTION 41
UNACCEPTABLE WORK AND MATERIALS

◦ Unacceptable Materials
▫ All materials not conforming to the requirement of the Specifications at the
time they are used shall be considered as unacceptable and all such materials
shall be rejected and removed immediately from the Site.

72
SECTION 42
OWNER FURNISHED MATERIAL

◦ Contractor’s Responsibility for Owner-Furnished Materials

▫ The Contractor shall furnish all materials required to complete the Work,
except those specified to be furnished by the Owner.
▫ The cost of handling and placing all materials after they are delivered to the
Contractor shall be considered as included in the Contract Price for the item in
connection with which they are to be used.
▫ The Contractor shall be answerable for any losses, damages and deficiencies
of all materials delivered to him and for any demurrages unless such damage,
shortage or deficiency is attributable to the Owner’s fault or negligence.

73
SECTION 42
OWNER FURNISHED MATERIAL

◦ Right to Use Materials Found On the Work

▫ The Contractor, with approval of the Owner’s Representative, may use
materials found at the Site for the work which are deemed suitable by the
Owner’s Representative, and shall be paid accordingly as the situation
warrants.

74
SECTION 43
STORAGE AND HANDLING OF MATERIALS

◦ In General
▫ Materials shall be stored and handled in such a manner as to assure the
preservation of their quality and fitness for the Work
◦ Explosives
▫ The Contractor shall store and secure all explosives against loss by theft or
other means.
▫ It is the Contractor’s responsibility to contact the authorities and secure their
approval of his proposed method of storage.

75
SECTION 44
SUSPENSION OF WORK
◦ Grounds for Suspension of Work
▫ The Owner’s Representative may suspend the Work or any part thereof for
such period or periods as he may deem necessary due to:
■ Unsuitable weather or other conditions considered unfavorable for the precision of the Work
■ Failure of the Contractor to correct conditions which constitute a danger to his workers or the
general public;
■ Failure of the Contractor to carry out valid orders issued by the Owner’s Representative or to
comply with any provision of the Contract;
■ The necessity for adjusting plans to suit Site conditions found during construction;
■ Failure of the Owner to supply Owner-supplied/furnished materials on time;
■ Failure of the Owner to obtain right of way, where such obligation is assumed by the Owner
under the Contract;
■ Force majeure or fortuitous event;
■ Peace and order problems; or
■ Such other conditions to be determined by the Owner’s Representative as grounds for suspension
of work

76
SECTION 44
SUSPENSION OF WORK
◦ Contractor May Claim Compensation
▫ The Contractor may claim monetary compensation for extra costs incurred due
to compliance with the Owner’s Representative’s instructions under (Grounds
for Suspension of Work) for Contract Time Extension to compensate for delays
caused by a suspension of the Work or a suspension of activities along the
critical path, unless the suspension is:
■ Otherwise provided for in the Contract;
■ Necessary for the proper execution of the work;
■ Due to conditions affecting the safety of workmen and/or quality of the
work; or
■ Due to default on the part of the Contractor

77
SECTION 44
SUSPENSION OF WORK
◦ Suspension of Work by Contractor
▫ If the Contractor is unable to execute the Works or if the progress of the Works or any
part thereof which is along the critical path as shown in the Contractor’s Work Program is
seriously hampered or impede due to any of the causes mentioned below, then in such
case, after the lapse of 15 days from the Owner’s receipt of notice of suspension from the
Contractor, the Contractor may suspend work on that part of the Work materially affected
by any of the following causes for suspension of work:
■ There exist right-of-way problems which disable the Contractor from performing
the Work or seriously impede its execution;
■ The Owner fails to issue the duly-approved Plans for construction to the
Contractor thereby precluding work called for by such unissued plans;
■ The Owner fails to deliver to the Contractor Owner-furnished materials and
equipment; or
■ There exists at the Site a serious peace-and-order problem making it impossible or
at least extremely dangerous for the Contractor to commence or continue executive
of the Work

78
SECTION 44
SUSPENSION OF WORK
◦ Delay in Payment of Approved Billings
▫ The Contractor may suspend execution of the Work upon the lapse of fifteen (15) days
from receipt of a notice of suspension by the Owner’s Representative upon the ground of
delay in the payment of Contractor’s Owner-approved progress billings and/or billings
for price escalation beyond forty-five (45) days from the date the Owner’s Representative
certified that the supporting documents of the claim are complete, and such delays appear
to be unjustified

79
SECTION 44
SUSPENSION OF WORK
◦ Effect of Suspension of Work
▫ If upon consideration of the ground for suspension and attending circumstances, the
Owner’s Representative shall find that the Contractor complied with the procedure for
the giving of notice, with the required particulars, and the suspension of work was
justified, the Contractor shall be entitled to an adjustment of the completion date of the
Contract.

80
SECTION 44
SUSPENSION OF WORK
◦ Resumption of Work
▫ Where suspension of work was due to an order of the Owner’s Representative, the
Contractor shall resume work upon receipt of an order to resume work from the Owner’s
Representative.

81
SECTION 45
COMMENCEMENT OF WORK
◦ The execution of the works under the Contract shall commence not later
than the commencement date stated in the Notice to Proceed issued to the
Contractor or the Contract Agreement or the Bid Documents.

82
SECTION 46
POSSESSION OF SITE
◦ Possession of Site, Wayleaves, Etc.
▫ With the Owner’s Representative’s order to commence the Works, the Owner
shall give to the Contractor possession of so much of the Site as may be
required to enable him to commence and proceed with the execution of the
Works in accordance with the approved Contractor’s Work Program.
◦ Rights of Way and Facilities
▫ The Contractor shall bear all costs and charges for special or temporary right-
of-way required by him in connection with the access to the Site.

83
SECTION 47
CONTRACT TIME
◦ Time of Completions
▫ The whole of the Works and , if applicable, any section required to be
completed within a particular time as stated in the Special Provisions, shall be
completed, in accordance with provisions of Section 52, within the time stated
in the Special Provision for the whole of the Works or the section (as the case
may be), calculated from the Commencement Date, or such extended time as
may be allowed under Section 48.2

84
SECTION 48
INTERRUPTION OF WORK
◦ Disruption of Progress
▫ The Contractor shall give notice to the Owner’s Representative whenever
planning or progress of the Works is likely to be delayed or disrupted unless
any further drawing or order, including a direction, instruction or approval, is
issued by the Owner’s Representative within a reasonable time

85
SECTION 48
INTERRUPTION OF WORK
◦ Delays and Extensions of Time
▫ As a general rule, no Contract Time Extension shall be granted to the
Contractor for construction delays:
■ For which the Owner is not directly responsible
■ Which affect activities which do not fall within the critical path of
PERT/CPM network; or
■ When the delay was due to a cause which was already considered by the
Owner in fixing the Contract Time during detailed engineering and in the
preparation of the Contract Documents, and the Contractor was aware of
such fact at the time he gave his conformity to the Notice of Award.

86
SECTION 48
INTERRUPTION OF WORK
◦ Delays and Extensions of Time
▫ Specifically, no Contract Time Extension shall be granted to the Contractor on
account of:
■ Ordinary unfavorable weather conditions that have been taken, into the
consideration in the determination of Contract Time;
■ Non-availability of equipment or materials to be furnished by the Contractor
unless, in the case of materials, the non-availability at the time required is
acknowledged by the Owner not to be due to the fault or negligence of the
Contractor;
■ Labor problems arising from the Contractor-laborer relationships;
■ Delays to construction activities which are not along the critical path for the
completion of the Work;
■ Delays which were foreseen during the design of the Work were considered in the
determination of the Contract Time; or
■ Delays which a competent contractor could reasonably have been expected to
foresee and provide against

87
SECTION 48
INTERRUPTION OF WORK
◦ Delays and Extensions of Time
▫ Contract Time Extensions may be granted up to a period equivalent to the
over-all delay caused by:
■ Major calamities such as destructive typhoons, unusual floods, earthquake,
epidemics, etc;
■ Non-delivery of specified materials, information, drawings, etc to be furnished by
the Owner;
■ Non-acquisition of easements, right of way or permits to enter private properties
which was the Owner’s obligation to provide the Contractor; or
■ Other similar causes as the Owner’s Representative shall deem deserving
consideration

88
SECTION 48
INTERRUPTION OF WORK
◦ Delays and Extensions of Time
▫ The Contractor shall be entitled to claim an adjustment of his Contract Time
where:
■ The amount of additional work under a Change Order, or
■ Special circumstances had occurred, so as to fairly entitle the Contractor to an
extension of the Contract Time.
▫ The Contractor shall also entitled to Contract Time Extension for ordinary
unfavorable weather conditions mentioned in paragraph above if the number
of rainy or unworkable days considered unfavorable for the prosecution of the
Works exceeds the period estimated or pre-determined by the Owner.

89
SECTION 48
INTERRUPTION OF WORK
◦ Delays and Extensions of Time
▫ Upon application by the Contractor, the Owner may consider any of the
following causes as a sufficient ground for Contract Time Extension:
■ Acuter shortage of construction material
■ General labor strikes, or
■ Peace and order problems when any of such causes is shown to have disrupted
construction work through no fault of the Contractor, have cause affects all
contractors in the affected areas, and the existence and effect on any such cause is
duly certified by appropriate government agencies.

90
SECTION 48
INTERRUPTION OF WORK
◦ Procedure for Claiming Contract Time Extension
▫ A request for time extension shall be accompanied by the written consent of
the person or persons which provided the affected Security or Securities for the
Contractor in favor of the Owner to the extension of Contract Time requested.
▫ Where the Contractor shall promptly give notice to the Owner and in no case
later than 30 days after the Work under the Change Order has commenced, or
the special circumstances leading to the claim had arisen.

91
SECTION 49
OVERTIME AND HOLIDAY PAY
◦ Work at night, on Sundays, on holidays, and overtime shall be governed by
pertinent laws and regulations and shall be the sole responsibility of the
Contractor. All costs and expenses shall be paid by the Contractor.

92
SECTION 50
RATE OF PROGRESS
◦ Order for Acceleration
▫ If for any reason, the rate of progress of the Works or of any section thereof is,
in the opinion of the Owner’s Representative, too slow to ensure completion,
the Owner’s Representative shall so notify the Contractor and the Contractor
shall thereupon take steps as are necessary, which the Owner’s Representative
may approve, such as to expedite progress so as to complete the Works or such
section by the prescribed time or extended time.

93
SECTION 50
RATE OF PROGRESS
◦ Slippage Beyond 15% of Critical Path
▫ Where the Contractor’s slippage shall exceed 15% of his original Critical Path
Method network, the Owner may terminate the Contract, forfeit the applicable
Security or Securities and take over the Work

94
SECTION 51
LIQUIDATED DAMAGES
◦ Should the Contractor fail to complete the Work within the Contract Time
as specified or as may be extended by the Owner’s Representative, then
the Contractor shall pay to the Owner liquidated damages as stipulated in
Clause CI 8 of the IRR which shall in no case exceed 15% of the adjusted
Contract Price.

95
SECTION 52
CERTIFICATE OF COMPLETION
◦ Substantial Completion
▫ When at least 95% of the Works have been completed and have satisfactorily passed any
Tests on Completion prescribed in the Contract, the Contractor may give notice of this
effect to the Owner’s Representative, with a copy to the Owner, accompanied by a
written undertaking to finish with due expedition any outstanding work during the
Guarantee Period

96
SECTION 52
CERTIFICATE OF COMPLETION
◦ Final Completion
▫ When the whole of the Works have been completed and have satisfactorily passed any
final test that may be prescribed by the Contract, the Contractor may give a notice to this
effect to the Owner’s Representative

97
SECTION 52
CERTIFICATE OF COMPLETION
◦ Partial Completion
▫ In accordance with the procedure set out above for Certification of Final
Completion of the Works, the Owner’s Representative, upon the request of the
Contractor, shall issue a Certificate of Partial Completion in respect of:
■ Any Section of the Permanent Works in respect of which a separate time for
completion is provided in the Contract;
■ Any substantial part of the Permanent Work which has been both completed to the
satisfaction of the Owner’s Representative and occupied or used by the Owner; and
■ Any part of the Permanent Works which the Owner has elected to occupy or use
prior to completion

98
SECTION 53
LIABILITY FOR DEFECTS
◦ Contractor’s Guaranty/Warranty for Defects
▫ Unless otherwise stipulated in the Contract, the “Guarantee Period” as to the
Works certified to be completed shall be the period of one (1) year from the
date of the Certificate of Final or Partial Completion of the Work issued by the
Owner’s Representative

99
SECTION 53
LIABILITY FOR DEFECTS
◦ Completion of Outstanding Work and Remedying Defects
▫ During the Guarantee Period, the Contractor shall, as soon as possible, on
receipt of notice, execute all works that are supposed to be done by him of
repair, reconstruction, correction of shrinkages, or other faults.

100
SECTION 53
LIABILITY FOR DEFECTS
◦ Cost of Remedying Defects
▫ The cost of remedying defects shall be borne by the Contractor if:
■ The necessity thereof shall be due to the use of materials, equipment or
workmanship not in accordance with the Contract,
■ The Contractor is responsible for the design of part of the Permanent
Works, and there is fault in such design, or
■ The same is due to the neglect or failure on the part of Contractor to
comply with any obligation expressed or implied under the Contract.

101
SECTION 53
LIABILITY FOR DEFECTS
◦ Contractor’s Failure to Carry Out Instructions
▫ Should the Contractor fail to carry out work required by the Owner’s
Representative, the Owner shall carry this out by his own workmen or by other
contractors, and if the work is that which the Contractor should have be
entitled to recover from the Contractor the cost thereof, or may deduct the
same from any monies due or that may become due the Contractor.

102
SECTION 54
SEARCH FOR DEFECTS
◦ In case of defects and/or failure in the construction of the Work, the
Contractor shall determine the cause of any defect, imperfection, or fault
in the Work if required to do so by the Owner’s Representative.

103
SECTION 59
CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS
◦ For Exclusive Use for the Works
▫ All Constructional Plant, Temporary Works and materials provided by the Contractor
sha;;, when brought to the Site be deemed to be exclusively intended for the execution of
the Works and the Contractor shall not remove the same or any part thereof, except for
the purpose of moving it from one part of the Site to another, without the consent, in
writing, of the Owner’s Representative, which shall not unreasonably withheld.

104
SECTION 59
CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS
◦ Custom Clearance
▫ The Owner’s Representative shall provide reasonable assistance to the Contractor, where
required and where the Owner is in a position to do so, in obtaining clearance through the
Bureau of Customs of Constructional Plant, materials and other things required for the
Works.

105
SECTION 59
CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS
◦ Re-export of Foreign Contractor’s Equipment
▫ In respect of any foregoing Contractor’s Equipment which the Contractor has
imported for the purposes of the Works, the Owner’s Representative shall
provide any reasonable assistance to the Contractor, where required, in
applying for any necessary consent to the re-export of such Contractor’s
Equipment by the Contractor upon the removal thereof pursuant to the terms
of the Contract.

106
SECTION 59
CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS
◦ When Contractor Not Allowed to Remove Equipment
▫ In the event of termination of the Contract under Section 68 and during the
Contract Time until the end of the warranty period:
■ The Contractor shall not be allowed to remove from the Site Constructional
Equipment, Temporary Works or materials on Site and Materials intended for the
Works or which shall form part of the Permanent Works wherever they are situated
unless the Owner’s Representative specifically authorizes the removal of any of
them.
■ In case of rented equipment, the Contractor shall cause to be inserted in the rental
agreement with the equipment owner the latter’s prior consent to the assignment of
the rental agreement by the Contractor to the Owner
■ The Owner shall have the right to use the equipment owned by the Contractor

107
SECTION 59
CONTRACTOR’S EQUIPMENT, TEMPORARY WORKS AND MATERIALS
◦ Incorporation of Clause in Subcontracts
▫ The Contractor shall, when entering into any subcontract for the execution of
any part of the works, incorporate in such subcontract (by reference or
otherwise) the provisions of the preceding Section in relation to the
Contractor’s Equipment, Temporary Works or materials brought on to the Site
by the Subcontractor.

108
SECTION 60
BILL OF QUANTITIES
◦ The quantities set out in the Bill of Quantities are the estimated quantities
for the Works, and they are not to be taken as the actual and correct
quantities of the Works to be executed by the Contractor in fulfillment of
his obligations under the Contract.

109
SECTION 61
WORKS TO BE MEASURED
◦ The Owner’s Representative shall, except as otherwise stated, ascertain
and determine by measurement the value of the Works in accordance with
the Contract and the Contractor shall be paid that value in Section 62.

110
SECTION 62
METHOD OF MEASUREMENT
◦ Measurement in Bid Documents
▫ The Works shall be measured as stipulated in the Bid Documents.
◦ Breakdown of Lump Sum Items
▫ For the purposes of lump sum pay items, the Contractor shall submit to the
Owner’s Representative, within 28 days after the receipt of the Notice of
Award, a breakdown for each of the lump sum items contained in the Bid.

111
SECTION 63
PROVISIONAL SUMS
◦ Where Provisional Sums are included in the Bid Form, they are intended
for budgetary purposes only to cover work which is not defined at the time
that the Contract is executed.

112
SECTION 64
NAMED AND NOMINATED SUBCONTRACTORS
◦ When Contractor Obliged to Enter Into Subcontract With Named
Subcontractor

◦ When Contractor Obliged to Engage Nominated Subcontractor

◦ Design Requirements to be Expressly Stated

◦ Payments to Nominated Subcontractors

◦ Certification of Payments to Nominated Subcontractors

113
SECTION 67
FINAL ACCEPTANCE
◦ Certificate of Final Acceptance
▫ The Work shall not be considered as accepted until a Certificate of Final Acceptance shall
have been signed by and delivered to the Owner, with a copy to the Contractor, stating
the date on which the Contractor shall have completed his obligations to execute and
complete the Works and remedy any defects therein to the Owner’s satisfaction.

114
SECTION 67
FINAL ACCEPTANCE
◦ Unfulfilled Obligations
▫ Notwithstanding the issuance of the Certificate of Final Acceptance, the Contractor and
the Owner shall remain liable for the fulfilment of any obligation incurred under the
provisions of the Contract prior to the issuance of the Certificate of Final Acceptance
and, for the purposes of determining the nature and extent of any such obligation, the
Contract shall be deemed to remain in force between the parties to the Contract.

115
SECTION 68
REMEDIES OF OWNER
◦ Forfeiture of Contract and Conditions Thereof
▫ The Owner shall take over the Work from the Contractor in any of the
following occurrences:
■ Slippage by the Contractor by more than 15% from his original Critical Path
Method network as provided in Section 50
■ If the Contractor has committed an obvious, open and material breach of the terms
and conditions of the Contract or neglected to carry out any of his obligation as
provided for herein under Section 8
■ If the Contractor has assigned
● The whole Work or any part thereof
● Any of the monies due him without prior approval of the Owner

116
SECTION 68
REMEDIES OF OWNER
◦ Valuation at Date of Rescission or Termination
▫ Upon rescission or termination of the Contract, there shall be an inventory and
evaluation to be rendered by the Owner and the Commission on Audit on:
■ What amount (if any) hade, at the time of such entry and termination,
been reasonably earned by or would reasonably accrue to the Contractor
in respect of work then actually done by him under the Contract, and
■ The value of any of the said unused or partially used materials, any
Contractor’s Equipment and any Temporary Works.

117
SECTION 68
REMEDIES OF OWNER
◦ Payment After Termination
▫ If the Owner terminates the Contract under this Section, it shall not be liable to
pay to the Contractor any further amount (including damages) in respect of the
Contract until the expiration of the Guarantee Period and thereafter until the
costs of execution, completion and remedying of any defects, liquidated
damages for delay (if any) and all other expenses incurred by the Owner have
been ascertained and the amount thereof certified by the Owner’s
Representative.

118
SECTION 68
REMEDIES OF OWNER
◦ Assignment of Benefit of Agreement
▫ Unless prohibited by law, the Contractor shall, if so instructed by the Owner’s
Representative within 14 days of such entry and termination referred to in
Section 68. 1, assign to the Owner the benefit of any agreement for the supply
of any goods or materials or service and/or for the purposes of the Contract,
which the Contractor may have entered into.

119
SECTION 68
REMEDIES OF OWNER
◦ Cost of Hire of Contractor’s Equipment
▫ In the event of the Owner entering into any agreement for the hire of
Contractor’s Equipment pursuant to Section 59, all sums properly paid by the
Owner under the provisions of any such agreement and all costs incurred by
him in entering into such agreement shall be deemed, for the purpose of this
Section to be part of the cost of executing and completing the Works and the
remedying of any defects therein.

120
SECTION 69
REMEDIAL WORK WHEN DONE
◦ When Remedial Work Compensable
▫ If by any reason of accident, failure or other event occurring to or in
connection with the work during its execution, urgent safety or remedial
measures are required, the Contractor shall execute such measure without
delay.

121
SECTION 70
SPECIAL RISKS
◦ No liability for Special Risks
▫ The Contractor shall not be liable for the damage or destruction of the Works
of property, whether owned by the Owner or third parties, for injury or loss of
life caused by declared or undeclared war, riot, invasion, insurrection,
rebellion or usurpation of power in the Philippines refereed to herein as
“Special Risks”.

122
SECTION 70
SPECIAL RISKS
◦ Damage to Works by Special Risks
▫ If the Works or any materials on Site or any other property of the Contractor
used or intended to be used for the purposes of the Works, shall sustain
destruction or damage by reason of any uninsured Special Risks, the
Contractor shall be entitled to payment, on the basis of acquisition for:
■ Any permanent Work, and for any materials on Site so destroyed or
damage
■ Replacing or making good any such destruction or damage to the Works.

123
SECTION 70
SPECIAL RISKS
◦ Projectile, Missile
▫ Destruction, damage, injury or loss of life caused by explosion or impact, of
any mine, bomb, shell, grenade, or other projectile, missile, munition, or
explosive of war, shall be deemed to be consequences of the said Special Risks

124
SECTION 70
SPECIAL RISKS
◦ Increased Costs Arising from Special Risks
▫ The Owner shall repay the Contractor any increase on cost of the Works or
incidental to its execution which is attributable to Special Risks subject to the
next Provision.

125
SECTION 70
SPECIAL RISKS
◦ Outbreak of War
▫ The Contractor shall, unless and until the Contract is terminated under the
provisions of this Section, continue to use his bet endeavors to complete the
execution of the Works.

126
SECTION 70
SPECIAL RISKS
◦ Removal of Contractor’s Equipment on Termination
▫ If the Contract is terminated under the provisions of Outbreak of War , the
Contractor shall, with all reasonable dispatch, remove from the Site all
Contractor’s Equipment and shall give similar facilities to his Subcontractors
to do so.

127
SECTION 70
SPECIAL RISKS
◦ Payment if Contract is Terminated
▫ If the Contract is terminated as aforesaid, the Contractor shall be paid by
Owner, insofar as such amounts or items have not already been covered by
payments on account made to the Contractor.

128