Republic of the rnilrppines

DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

DEPARTMENT ORDER ORDER NO. 2015 -002

Subject

Date

FORM OF CONTRACT AGREEMENT FOR THE PROCUREMENT OFGOODS AND SERVICES, INFRASTRUCTURE PROJECTS, ANDCONSULTING SERVICES

23 February 2015

For the uniformity of rights and obligations of suppliers, contractors, and consultants doingbusiness with the Philippine Government, and in compliance with the GovernmentProcurement Reform Act (RA. 9184) and its Revised Implementing Rules and Regulations(IRR), all officials and employees in charge of procurement and contracts for thisDepartment and its sectoral and attached agencies and government-owned and/orcontrolled corporations shall use the Contract Agreement Form issued by the GovernmentProcurement Policy Board (GPPB) through GPPB Resolution 05-2009 on 30 September2009.

I. COVERAGE

This Department Order applies mandatorily for projects bid out under RA.9184 and its IRR and covers all locally funded projects falling under thefollowing categories: goods and services, infrastructure, and consultancy

services.

11. GENERAL GUIDELINES

P Sti 30 31 and 32 of the Standard Philippine Bidding Documents

er ec Ions , , P . t andP ment of Consulting Services, Infrastructure rojec s,

for the rocure . 11 d thGoods and Services, respectively, the Procuring Entity sha sen e

Contract Form (attached herewith are the Forms of Contract Agreeme.nt as

Annex "A" for Consulting Services, Annex "8" for .Infrast~~:~~e h:~OJ:~~~d d Services) to the bidder,

"C" for Goo s an t;~~Vi~~~ei~ the Bidding Documents, incorporating therein all agreemen s

between the parties,

The following documents shall form part of the contract:

contract Agreement;i.

'i Bidding Documents; . El' 'b'Iity Documents and TechnicalI ' , d ' bid including the Igl 1 , diii, Winning bid er s tnu, th documents! statements submltte ;

and Financial Proposals and 0 er rtA-j('r I I

TELEFAX: (632) 723-4925 "r;~~~~~;I;~~~-~~~~ HOTLINE: 789~O. ('~ ~yy~

THE COLUMBIATOWERRc?tt, fJ€~/ 8BRGY,WACK-W:V~Ng~ITY PHILIPPINES (". 15 0000891555MANDAL ~lr- b01. . 02 - 2..1J "

1,

2.

iv. Performance Security;v. For the Procurement of Infrastructure Projects and Goods and

Services, credit line in accordance with the Instructions to Bidders(ITB) Clause 5.5, if applicable;

vi. Notice of Award of Contract; andvii. Other contract documents that may be required by existing laws

and/or specified in the Bid Data Sheet (BDS) of the BiddingDocuments for the project.

3. Purchase Orders (POs) or any other form of contract shall not be used assubstitutes for the Contract Agreement Form required under R.A. 9184 and itsIRR.

Ill. REPEALING CLAUSE

All Department Orders/ issuances inconsistent herewith are hereby revoked andsuperseded accordingly.

IV. EFFECTIVITY.

This Order shall take effect immediately.

For strict compliance.

ANNEX A

FORM OF CONTRACT AGREEMENT FOR CONSULTING SERVICES

THIS AGREEMENT, made this [insert date] day of [insert month], [insert year]between [name and address of PROCURING ENTlTYL(hereinafter called the"Entity") and[name and address of Consultant] (hereinafter called the "Consultant").

WHEREAS, the Entity is desirous that the Consultant execute [name andidentification number of contract] (hereinafter called "the Works") and the Entity hasaccepted the bid for [insert the amount in specified currency in numbers and words] by theConsultant for the execution and completion of such Consulting Services and the remedyingof any defects therein.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement, words and expressions shall have the same meanings asare respectively assigned to them in the Conditions of Contract hereinafterreferred to.

2. The following documents shall be attached, deemed to form, and be read andconstrued as part of this Agreement, to wit:

(a) General and Special Conditions of Contract;

(b) Terms of Reference

(c) Request for Expression of Interest;

(d) Instructions to Bidders;

(e) Bid Data Sheet;

(f) Addenda and/or Supplemental/Bid Bulletins, if any;

(g) Bid forms, including all the documents/statements contained in theBidder's bidding envelopes, as annexes;

(h) Eligibility requirements, documents and/or statements;

(i) Performance Security;

U) Credit line issued by a licensed bank, if any;

(k) Notice of Award of Contract and the Bidder's conforme thereto;

(I) Other contract documents that may be required by existing lawsand/or the Entity.

3. In consideration of the payments to be made by the Entity to the Consultantas hereinafter mentioned, the Consultant hereby covenants with the Entity toexecute and complete the Consulting Services and remedy any defectstherein in conformity with the provisions of this Consultant in all respects.

4. The Entity hereby covenants to pay the Consultant in consideration of theexecution and completion of the Consulting Services, the Contract Price orsuch other sum as may become payable under the provisions of this Contractat the times and in the manner prescribed by this Contract.

IN WITNESS whereof the parties thereto have caused this Agreement to be executed theday and year first before written.

Binding Signature of PROCURING ENTITY

Binding Signature of Contractor

[Addendum showing the corrections, if any, made during the bid evaluation should beattached with this agreement]

ANNEX B

Form of Contract Agreement for Infrastructure Projects

THIS AGREEMENT, made this [insert date] day of [insert month], [insert year]between [name and address of PROCURING ENTITY]jhereinafter called the"Entity") and[name and address of Contractor] (hereinafter called the "Contractor").

WHEREAS, the Entity is desirous that the Contractor execute [name andidentification number of contract] (hereinafter called "the Works") and the Entity hasaccepted the Bid for [insert the amount in specified currency in numbers and words] by theContractor for the execution and completion of such Works and the remedying of anydefects therein.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement, words and expressions shall have the same meanings asare respectively assigned to them in the Conditions of Contract hereinafterreferred to.

5. The following documents shall be attached, deemed to form, and be read andconstrued as part of this Agreement, to wit:

(a) General and Special Conditions of Contract;

(b) Drawings/Plans;

(c) Specifications;

(d) Invitation to Apply for Eligibility and to Bid;

(e) Instructions to Bidders;

(f) Bid Data Sheet;

(g) Addenda and/or Supplemental/Bid Bulletins, if any;

(h) Bid form, including all the documents/statements contained in theBidder's bidding envelopes, as annexes;

(i) Eligibility requirements, documents and/or statements;

U) Performance Security;

(k) Credit line issued by a licensed bank, if any;

(I) Notice of Award of Contract and the Bidder's conforme thereto;

(m) Other contract documents that may be required by existing lawsand/or the Entity.

6. In consideration of the payments to be made by the Entity to the Contractoras hereinafter mentioned, the Contractor hereby covenants with the Entity toexecute and complete the Works and remedy any defects therein inconformity with the provisions of this Contract in all respects.

7. The Entity hereby covenants to pay the Contractor in consideration of theexecution and completion of the Works and the remedying of defects wherein,the Contract Price or such other sum as may become payable under theprovisions of this Contract at the times and in the manner prescribed by thisContract.

IN WITNESS whereof the parties thereto have caused this Agreement to beexecuted the day and year first before written.

Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (forContractor).

the

Binding Signature of PROCURING ENTITY

Binding Signature of Contractor

[Addendum showing the corrections, if any, made during the Bid evaluation should beattached with this agreement]

ANNEX CContract Agreement Form for Goods and Services

THIS AGREEMENT made the __ day of 20 between [name ofPROCURING ENTITY} of the Philippines (hereinafter called "the Entity") of the one part and[name of Supplier} of [city and country of Supplier} (hereinafter called "the Supplier") of theother part:

WHEREAS the Entity invited Bids for certain goods and ancillary services, viz., [briefdescription of goods and services} and has accepted a Bid by the Supplier for the supply ofthose goods and services in the sum of [contract price in words and figures} (hereinaftercalled "the Contract Price").

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:

1. In this Agreement words and expressions shall have the same meanings as arerespectively assigned to them in the Conditions of Contract referred to.

2. The following documents shall be deemed to form and be read and construed as partof this Agreement, viz.:

(a) the Bid Form and the Price Schedule submitted by the Bidder;(b) the Schedule of Requirements;(c) the Technical Specifications;(d) the General Conditions of Contract;(e) the Special Conditions of Contract; and(f) the Entity's Notification of Award.

3. In consideration of the payments to be made by the Entity to the Supplier ashereinafter mentioned, the Supplier hereby covenants with the Entity to provide the goodsand services and to remedy defects therein in conformity in all respects with the provisionsof the Contract

4. The Entity hereby covenants to pay the Supplier in consideration of the provision ofthe goods and services and the remedying of defects therein, the Contract Price or suchother sum as may become payable under the provisions of the contract at the time and inthe manner prescribed by the contract.

IN WITNESS whereof the parties hereto have caused this Agreement to be executedin accordance with the laws of the Republic of the Philippines on the day and year firstabove written.

Signed, sealed, delivered by the (for the Entity)

Signed, sealed, delivered by the (for the Supplier).

RESOL UTI ON NO. 05-2009

APPROVING AND ADOPTING THE THIRD EDITION OF THEPHILIPPINE BIDDING DOCUMENTS FOR THE PROCUREMENT

OF GOODS, INFRASTRUCTURE PROJECTS, ANDCONSUL TING SERVICES

WHEREAS, Republic Act (R.A.) 9184 otherwise known as "GovernmentProcurement Reform Act" and its Implementing Rules and Regulations Part A tookeffect on 26 January 2003 and 8 October 2003 respectively;

WHEREAS, in order to systematize the procurement process, avoid confusionand ensure transparency, Section 6 of R.A. 9184 mandates the GovernmentProcurement Policy Board (GPPB) to develop and issue standard bidding forms, theuse of which once issued shall be mandatory upon all Procuring Entities.

WHEREAS,in its meeting held last 20 August 2004, the GPPB approved andadopted the First Edition of the Philippine Bidding Documents (PBDs) for Goods, CivilWorks, and Consulting Services through GPPB Resolution No. 10-2004;

WHEREAS, in its meeting held last 26 May 2005, the GPPB approved thechanges to the First Edition of the PBDs for Goods, Civil Works, and ConsultingServices and adopted its Second Edition through GPPB Resolution No. 10-2005; and

WHEREAS,after several consultations and meetings with various stakeholders,the GPPB approved and adopted the revised Implementing Rules and Regulations(IRR) through its Resolution No. 03-2009 dated 22 July 2009, which was published in aSupplemental Issue of the Official Gazette last 3 August 2009;

WHEREAS,in view of the approval of the revised IRR, the GPPB recognizedthe immediate need to revise and update the PBDs and thereby tasked its Inter AgencyTechnical Working Group (lATWG) to review and revise the PBDs Second Edition;

WHEREAS,during its meeting last 30 September 2009, the recommendations ofthe IATWG in relation to the Third Edition of the PBDs were presented to anddiscussed by the GPPB;

WHEREAS,after thorough deliberations on the issues, recommendations, andsuggestions of the members present, the GPPB unanimously approved and adopted theThird Edition of the PBDs for Goods, Infrastructure Projects, and Consulting Services,subject to the inclusion of their comments;

Now, THEREFORE,for and in consideration of the foregoing, WE, the Membersof the GOVERNMENTPROCUREMENTPOLICYBOARD,by virtue of the powers vestedon Us by law, hereby RESOLVE to confirm, approve, and adopt the Third Edition of

GPPB Resolution No. 05-2009, dated 30 September 2009 page I of3

RESOLUTION NO. 05-2009

the Philippine Bidding Documents for Goods, Infrastructure Projects, and ConsultingServices.

IN VIEW OF THE ABOVE PREMISES, all branches, agencies, departments,bureaus, offices and instrumentalities of the Government, including government-ownedand/or controlled corporations, government financial institutions, state universities andcolleges, and local government units, are hereby mandated to use the PhilippineBidding Documents Third Edition for all of their procurement activities.

This resolution shall take effect immediately.

APPROVED this 30th day of September, 2009 at Pasig City, Philippines.

(Sgd.) (Sgd.)ROLANDO G. ANDAYA, JR.

SecretaryDepartment of Budget and Management

AUGUSTO B. SANTOSActing Director General

National Economic and DevelopmentAuthority

(Sgd.) (Sgd.)

DEPARTMENT OF EDUCATION DEPARTMENT OF ENERGY

(Sgd.) (Sgd.)

DEPARTMENT OF FINANCE DEPARTMENT OF HEALTH

(Sgd.) (Sgd.)

DEPARTMENT OF INTERIOR ANDLOCAL GOVERNMENT

DEPARTMENT OF NATIONALDEFENSE

(Sgd.) (Sgd.)

DEPARTMENT OF PUBLIC WORKSAND HIGHWAYS

DEPARTMENT OF SCIENCE ANDTECHNOLOGY

GPPB Resolution No. 05-2009, dated 30 September 2009 page 2 of3

--

RESOL UTION NO. 05-2009

(Sgd.)

DEPARTMENT OF TRADE ANDINDUSTRY

(Sgd.)

PRIVATE SECTOR REPRESENT ATIVE

Attested by:

(Sgd.)RUBY U. ALVAREZBoard Secretary, GPPB

Executive Director, GPPB-TSO

GPPB Resolution No. 05-200Y, dated 30 September 200Y

(Sgd.)

DEPARTMENT OF TRANSPORTATIONAND COMMUNICATIONS

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