NTRODUCTION

CONSTRUCTION METHOD - The procedures and techniques utilized during construction.

Construction operations are generally classified according to specialized fields. These
include
preparation of the project site, earth-moving, foundation treatment, steel erection, concrete placement,
asphalt paving, and electrical and mechanical installations. Procedures for each of these fields are
generally the same, even when applied to different projects, such as buildings, dams, or airports.
NTRODUCTION

CONSTRUCTION METHOD - The procedures and techniques utilized during construction.

Construction operations are generally classified according to specialized fields. These
include
preparation of the project site, earth-moving, foundation treatment, steel erection, concrete placement,
asphalt paving, and electrical and mechanical installations. Procedures for each of these fields are
generally the same, even when applied to different projects, such as buildings, dams, or airports.
NTRODUCTION

CONSTRUCTION METHOD - The procedures and techniques utilized during construction.

Construction operations are generally classified according to specialized fields. These
include
preparation of the project site, earth-moving, foundation treatment, steel erection, concrete placement,
asphalt paving, and electrical and mechanical installations. Procedures for each of these fields are
generally the same, even when applied to different projects, such as buildings, dams, or airports.
NTRODUCTION

CONSTRUCTION METHOD - The procedures and techniques utilized during construction.

Construction operations are generally classified according to specialized fields. These
include
preparation of the project site, earth-moving, foundation treatment, steel erection, concrete placement,
asphalt paving, and electrical and mechanical installations. Procedures for each of these fields are
generally the same, even when applied to different projects, such as buildings, dams, or airports.
ADVANCE CONSTRUCTION METHOD AND EQUIPMENT (10:30 -12:00 TTH)

NTRODUCTION

CONSTRUCTION METHOD - The procedures and techniques utilized during construction.

Construction operations are generally classified according to specialized fields. These
include
preparation of the project site, earth-moving, foundation treatment, steel erection, concrete placement,
asphalt paving, and electrical and mechanical installations. Procedures for each of these fields are
generally, the same, even when applied to different projects, such as buildings, dams, or airports.

TYPES OF CONSTRUCTION METHOD

1. Traditional/Conventional Construction Method
2. Advanced/Modern Construction Method

TRADITIONAL CONSTRUCTION METHOD Definition

Traditional construction refers to the methods and techniques employed for centuries to build houses
and other structures. In the United States, builders sometimes refer to traditional construction methods
as "brick-and-mortar." Some developers call traditional methods "stick by stick." This terminology
refers
to the fact that traditional construction methods, from the early design to the building process, are
hands on
1. TRADITIONAL CONSTRUCTION METHOD

Traditional construction refers to the methods and techniques employed for centuries to build houses
and other structures. In the United States, builders sometimes refer to traditional construction methods
as "brick-and-mortar." Some developers call traditional methods "stick by stick." This terminology
refers to the fact that traditional construction methods, from the early design to the building process,
are hands on.

Materials
A variety of materials can be used in the traditional construction process, from concrete floor slabs to
brick walls. Concrete blocks are often used in building foundations or for load bearing walls due to their
high level of strength and durability. Similar to concrete blocks, lightweight aerated block, also known
as
aircrete block, is available. Aerated block can also be used for building foundations and walls, but has a
higher level of insulation.
Materials
A variety of materials can be used in the traditional construction process, from concrete floor slabs to
brick walls. Concrete blocks are often used in building foundations or for load bearing walls due to their
high level of strength and durability. Similar to concrete blocks, lightweight aerated block, also known
as air Crete block, is available. Aerated block can also be used for building foundations and walls, but
has a higher level of insulation.

Advantage
The advantage of traditional construction techniques, particularly in housing construction, but also in
industrial building, is the level of uniqueness achieved. When working with an architect, a consumer
has choice and freedom to modify; the architect has the option of creativity. When more
modern
construction techniques are utilised, most homes are built in a similar style. In the case of modular
homes, the components are fabricated at a factory to be constructed on site quickly. The
use of
traditional construction techniques often results in a sturdier home of higher quality.
Advantage
The advantage of traditional construction techniques, particularly in housing construction, but also in
industrial building, is the level of uniqueness achieved. When working with an architect, a consumer
has choice and freedom to modify; the architect has the option of creativity. When more
modern construction techniques are utilized, most homes are built in a similar style. In the case of
modular homes, the components are fabricated at a factory to be constructed on site quickly.
The use of traditional construction techniques often results in a sturdier home of higher quality.

Disadvantages
The disadvantage of using traditional methods of construction for housing and other building is that the
process takes longer. The construction process is more involved and can require hiring higher-skilled
designers and builders. This can add significant construction costs; materials and labour are more
expensive.
MODERN CONSTRUCTION METHOD
Modern construction method is defined as those which provide an efficient product
management
process to provide more products of better quality in less time. It has been defined in various ways:
pre-
fabrication, off-site production and off-site manufacturing (OSM)
Disadvantages

The disadvantage of using traditional methods of construction for housing and other building is that the
process takes longer. The construction process is more involved and can require hiring higher-skilled
designers and builders. This can add significant construction costs; materials and labor are more
expensive.

2. MODERN CONSTRUCTION METHOD

Modern construction method is defined as those which provide an efficient product

management process to provide more products of better quality in less time. It has been defined in
various ways: pre-fabrication, off-site production and off-site manufacturing (OSM).

Modern methods of construction fall into the following categories:

1. Off-site Manufacture (OSM):

The part of the production process that is carried out away from the
building site in factory conditions.

Examples include: a) Panel Building Systems:

These comprise of walls, floors and roofs in the form

of a pre-engineered panels that are erected on site to form
the box like elements of the structure that then require
various levels of finishing. The most common approach is to
use open panels or frames which consist of skeletal structure only with services, insulation, external
cladding and internal finishing occurring on-site.

b) Volumetric (also known as Modular Construction): Units are used to form the structure of the
building,
thereby enclosing the usable space. Typically, modular construction means that between 80 to 95 per
cent of the building-come-manufacturing process is completed at the factory and then delivered to the
site
for final assembly. This process involves connecting the completed modules to each other
on site.
Prefabricated modules are often referred as pods and are factory finished internally,
complete with
mechanical and electrical services

b) Volumetric (also known as Modular Construction):

Units are used to form the structure of the building,

thereby enclosing the usable space. Typically, modular
construction means that between 80 to 95 percent of the
building-come-manufacturing process is completed at the
factory and then delivered to the site for final assembly.
This process involves connecting the completed
modules to each other on site. Prefabricated
modules are often referred as pods and are
factory finished internally, complete with mechanical
and electrical services

c) Hybrid (also known as Semi-Volumetric):

This method combines panelized and volumetric methods of construction and frequently includes the
use of pods. The hybrid approach can be used to bring flexibility to the development and can also
reduce uniformity of design.

d) Sub-Assemblies and Components: These methods, although predominantly traditional, utilize

factory fabricated sub-assemblies or components. This includes floor or roof cassettes and pre-cast
concrete foundation assemblies.

2. Non Off-site Manufacture: This approach encompasses building techniques and structural systems
that cannot be placed in the category of off-site manufacture. The main characteristic of these methods
is that of innovation. This could be through an innovative non OSM building technique or through the
use of a method of construction that has been used in other industries, but not house building. By way
of illustration, examples of non OSM include:
2. Non-Off-site Manufacture:
This approach encompasses building techniques and structural systems
that cannot be placed in the category of off-site manufacture. The main characteristic of these methods
is that of innovation. This could be through an innovative non OSM building technique or through the
use of a method of construction that has been used in other industries, but not house building. By way
of illustration, examples of non OSM include:

a) Tunnel Form: Tunnel form is evolving into one of the most frequently used methods of cellular
construction as its cost effectiveness, productivity and quality benefits are being realized on a variety
of developments. Tunnel form is particularly suitable for repetitive cellular projects such as hotels,
apartment blocks and student accommodation. Structures of up to 40 or more storeys in height can be
built using this technique. Tunnel form simplifies the construction process by making possible a
smooth and quick operation that can result in costs being reduced by 15 per cent and time savings of
up to 25 per cent
Thin-Joint Masonry: Thin-joint masonry is a quick, clean and accurate method that aircrete blocks,
which
are manufactured to extremely precise standards in terms of size and shape, and a thin layer of
mortar.
Thin joint combines reduced build times with greater flexibility of aircrete construction, such as ease of
handling, working and finishing. It can also result in cost savings, facilitate improved build quality and
reduce
wastage.

b) Thin-Joint Masonry: Thin-joint masonry is a quick, clean and accurate method that air Crete blocks,
which are manufactured to extremely precise standards in terms of size and shape, and a thin layer of
mortar. Thin joint combines reduced build times with greater flexibility of air Crete construction, such
as ease of handling, working and finishing. It can also result in cost savings, facilitate improved build
quality and reduce wastage.

CONSTRUCTION PROJECT CYCLE

What is Project Management?

Project management is the application of knowledge, skills, tools, and techniques to a broad range of
activities in order to meet requirements of a particular project.
CONSTRUCTION PROJECT CYCLE

What is Project Management?

Project management is the

application of knowledge, skills, tools,
and techniques to a broad range of
activities in order to meet
requirements of a particular project.

Phase 1: Pre-Design (Project

Initiation)

The first phase of a construction

project is the pre-design phase, which
some companies also call the planning
or initiation phase. This phase covers
the entire period before the building
or structure is designed and
schematics are created. During the
pre-design phase, project managers
and their teams evaluate the project’s
requirements, objectives, and overall
feasibility, and then establish a project
budget to work from.

this first phase is absolutely crucial to the project as a whole because it allows stakeholders to assess
whether it’s a good idea to actually go ahead with the project. It also sets a solid foundation for how to
execute all aspects of the project if it does in fact go ahead.

Key Activities

Here are some activities that usually occur during the pre-design phase:
 Undertaking a feasibility study: The planning team carries out a feasibility study to assess the
project’s merits and evaluate the project’s objectives. The study looks at things like construction
costs, design, location, and the proposed building schedule.

 Creating a project initiation document (PID): Next, a PID is usually created based on the results
of the feasibility study. This document defines the scope of the project, sets project milestones for
the team to meet, and defines the criteria that determines the project’s success in the eyes of
stakeholders.

 Creating construction documents: These explain which contractors, architects, and other team
members will be involved in the project and what roles they’ll play on a daily basis.

Phase 2: Design (Pre-Construction)

The second phase of a construction project is the design stage, also commonly known as the pre-
construction stage.

This is the time when comprehensive plans for the structure’s final design are drawn up, and all the
preparation required to begin construction occurs. For example, a project roadmap will be created to
outline what needs to be done and how it will be achieved. Blueprints will be drawn up and cost
estimates will be evaluated.

The design development work undertaken at this stage is crucial for finding the right equipment and
materials in the procurement phase.

Key Activities

The design stage for most construction projects usually involves these activities:
 Choosing contractors: The project manager selects which contractors to hire based on designs for
the structure that have been submitted using design-bid-build contracts.

 Establishing the chain of command: The project manager runs a pre-construction meeting to
establish the project team structure and ensure everyone knows their responsibilities.

 Estimating construction costs: All costs are estimated and the project manager and project
owner discuss and finalize a contract.

 Assessing risks: To ensure the project goes smoothly, risk assessment and contingency planning
are performed.

 Processing documentation: Contractors and project stakeholders process any

other paperwork that is required to begin the project. For example:
 Submitting documents to local authorities and obtaining all the necessary building permits and
entitlements to begin work
 Conducting environmental tests (such as testing the soil)
 Creating a comprehensive safety management plan
 Negotiating change orders or other revisions to the final project plan or design

Phase 3: Procurement

The procurement phase builds on the work done in the design phase, using this preparation to
effectively source, purchase, and transport the necessary materials, equipment, and services.

Key Activities

A typical procurement phase usually involves activities such as:

 Sourcing materials: Materials are found and purchased, and team members are coordinated to
meet the project’s cost estimates and completion deadlines.

 Building out the team: All necessary team members and contractors are hired. Depending on the
scope of the project, subcontractors may also need to be hired for certain tasks (based on a bidding
process).

Phase 4: Construction and Monitoring

In this stage, physical construction of the structure begins.

Therefore, the construction and monitoring phase mostly involves contractors and subcontractors
performing their daily duties, including tasks like laying foundations, framing structures, and installing
various utilities and systems.

Key Activities

The construction phase of any project usually involves these core activities:
 Building the structure: It is essential that teams remain accountable to the overall project plan
and its parameters. Construction project managers are the ones in charge of coordinating
everyone’s schedules, reviewing the work, and responding to questions from the project’s
stakeholders throughout the process to ensure everything goes smoothly.

 Maintaining documentation: Managers also need to create and maintain accurate records to
track the project’s progress and ensure the quality of the work.

Phase 5: Post-Construction (Closeout)

The post-construction or closeout stage is the final step in the construction process. Once the actual
construction is complete, the construction project manager surveys the project before handing it over
to the client or owner.

Key Activities

The post-construction phase usually involves these activities:

 Reviewing the project with the client: The construction project manager tours the project with
the client, and creates a construction punch list of areas that need to be improved. They then work
with the contractors and subcontractors to correct the errors as needed.
A construction punch list is a checklist of all the tasks to complete on a project.

 Finalizing project documents: Project closeout documents are finalized, including contractor
payments, inspection certificates, and a certificate of occupancy.

 Transferring ownership and deliverables: The documentation is packaged and delivered to the
client. Documents may include the results of quality control inspections and technical submittals so
the client can verify that the contractor followed all project requirements.
c) Hybrid (also known as Semi-Volumetric): This method combines panellised and volumetric methods
of
construction and frequently includes the use of pods. The hybrid approach can be used to bring
flexibility
to the development and can also reduce uniformity of design.

PREPARING A BID PACKAGE

Section 17. Form and Contents of Bidding Documents

17.1. The Bidding Documents shall be prepared by the PE following the standard forms and manuals

prescribed by the GPPB. The Bidding Documents shall include the following:

a) Approved Budget for the Contract;

b) Invitation to Bid/Request for Expression of Interest;

c) Eligibility Requirements;

d) Instructions to Bidders, including:

– scope of bid,

– documents comprising the bid,

– criteria for eligibility,

– bid evaluation methodology/criteria in accordance with the Act, and post-qualification,

– date, time and place of the pre-bid conference (where applicable)

– submission of bids and opening of bids;

e) Terms of Reference (TOR), for consulting services;

f) Scope of work, where applicable;

g) Plans/Drawings and Technical Specifications;

h) Form of Bid, Price Form, and List of Goods or Bill of Quantities;

i) Delivery Time or Completion Schedule;

j) Form, Amount, and Validity Period of Bid Security;

k) Form, Amount, and Validity of Performance Security and Warranty; and

l) Form of Contract and General and Special Conditions of Contract. (a)

17.2. The specifications and other terms in the Bidding Documents shall reflect minimum

requirements or specifications required to meet the needs of the procuring entity in clear and

unambiguous terms.(a)

17.3. To provide prospective bidders ample time to examine the Bidding Documents and to prepare
their respective bids, the concerned BAC shall make the Bidding Documents for the contract to be bid
available for the following period:

– a) For the procurement of goods and infrastructure projects, from the time the Invitation to Bid is
first advertised/posted until the deadline for the submission and receipt of bids.

– b) For the procurement of consulting services, eligibility documents shall be made available
from the time the Request for Expression of Interest is first advertised/posted until the deadline
for the eligibility check, and the Bidding Documents, from the determination of the short list until
the deadline for the submission and receipt of bids. (21a)

17.4. Bidders may be asked to pay for the Bidding Documents to recover the cost of its preparation
and development. The BAC shall issue the Bidding Documents upon payment of the corresponding
cost thereof to the collecting/disbursing officer of the procuring entity concerned. (a)7

17.5. The procuring entity shall also post the Bidding Documents at its website and at the PhilGEPS
website from the time that the Invitation to Bid/Request for Expression of Interest is
advertised. Prospective bidders may download the Bidding Documents from any of the said websites;
Provided that, bidders shall pay the fee for the Bidding Documents upon submission of their Bids. (n)

17.6. Detailed Engineering for the Procurement of Infrastructure Projects

– No bidding and award of contract for infrastructure projects shall be made unless the detailed
engineering investigations, surveys and designs, including the acquisition of the ROW, for the
project have been sufficiently carried out and duly approved in accordance with the standards
and specifications prescribed by the Head of the Procuring Entity concerned or his duly
authorized representative, and in accordance with the provisions of Annex “A” of this IRR.

• The exception is design and build scheme, wherein the bidders shall be allowed to submit its detailed
engineering designs as part of its bid. The procedures for the procurement and contract
implementation
of infrastructure projects using a design and build scheme shall be in accordance with the provisions of
Annex “G” of this IRR. (a)

BIDDING PROCESS

4.1 Preparation
of Bid/Tender Documents

4.1.1 To ensure fairest competition, the Bid/Tender Documents shall describe clearly and precisely the
nature of the goods for which bids are to be invited, the technical standards/requirements which must
be met, the place and period of delivery or installation, the warranty and maintenance requirements,
the method and criteria to be employed in the evaluation and comparison of bids, and other pertinent
terms. Annex "D"

discusses and elaborates on the basic content of the Bid/Tender Documents

4.2 Invitation to Apply for Eligibility and to Bid

4.2.1 Invitation to Apply for Eligibility and to Bid for local competitive bidding, the minimum content of
which is prescribed in annex "e", shall be publicly advertised at least 14 days before the deadline for
submission of

eligibility and bid requirements, in two consecutive issues of two newspapers of general circulation
existing for at least 2 years, and posted in the website of the Department of Budget and Management
(DBM) Procurement Service and of the concerned office/agency/corporation during the same period or
for a longer period as determined by the Head of the office/agency/corporation concerned, and posted
at any conspicuous place reserved for this purpose in the premises of the DBM Procurement Service
and of the concerned office/agency/corporation, as certified by the Chief of Administrative Services or
the equivalent official of the concerned office/agency/corporation. However, for contracts to be bid
costing two million pesos (P2,000,000)

and below, advertisement may be posted only in the website of the DBM Procurement Service and of
the

concerned office/agency/corporation during the same period as above or for a longer period as
determined by the head of the office/agency/corporation concerned, and posted at any conspicuous
place reserved for this

purpose in the premises of the DBM Procurement Service and of the concerned office/agency/corpora
tion, as
certified by the Chief of Administrative Services or the equivalent official of the concerned
office/agency/corporation.
4.2.2 For international competitive bidding, advertisement shall be done along the same lines
prescribed
above. Advertisements of invitations for contracts financed partly or wholly from ODA funds provided
by IFIs

shall be in accordance with the procedures established by and agreed upon with the concerned IFI.

4.2.3 For procurement methods other than the open competitive procedure, public advertisement of
the

Invitation to Apply for Eligibility and to Bid may be dispensed with.

4.3 Issuance of Application for Eligibility Forms and Bid/Tender Documents

4.3.1 Prospective bidders shall be given ample time to examine the forms for application for eligibility
and the bid/tender documents and to prepare their respective bids. To provide ample time, the
concerned BAC shall

make available upon payment, if applicable, said documents from the time the Invitation to Apply for
Eligibility and to Bid is first advertised.

4.3.2 Supplemental bulletins may be issued upon the government's initiative or upon request of any
interested party who secured the bid/tender documents, otherwise referred to as a prospective bidder,
for purposes of

clarifying any provision of the bidding document. Any amendment to the bid/tender documents should
be

identified as an amendment. Such bulletins containing amendments and/or clarifications of certain

provisions of bid documents shall be sent by mail, by hand or electronically, to and duly
received/acknowledged by all interested parties within a reasonable time, including extension of the
deadline set for the receipt of bids if needed, to be determined by the agency concerned depending on
the nature, complexity and magnitude of such notices/amendments to allow said bidders to consider
the same in preparing their respective bids.

Requests for clarification(s) on bid documents by interested parties who have secured the bid
documents must be in writing, and submitted to the BAC within 14 calendar days before the deadline
set for the submission of eligibility and bid envelopes. All clarifications shall be made in writing and
furnished to all interested parties within the time stipulated in the Instruction to Bidders, before the
deadline for the submission of bids

4.4 Determination of Eligibility of Prospective Bidders

4.4.1 The capabilities and resources of prospective bidders shall be initially assessed, subject to

post qualification, to determine if they meet the requirements for eligibility. The determination of
eligibility of

prospective bidders shall be based on the submission of the following documents as specified
hereunder:

A. Legal Documents

1. Current licenses/permits including Department of Trade and Industry (DTI) business name
registration or

Securities and Exchange Commission (SEC) registration certificate, mayor's permit/municipal license,
Bureau of Internal Revenue value-added tax registration, and if applicable, DTI accreditation certificate

2. Prospective bidder's statement that his firm is not "blacklisted" or barred from bidding by any
government

office/agency/corporation

B. Technical Documents - prospective bidder's statement of previous similar contracts/sales completed

in at

least the last two years, as prescribed by the agency in the Invitation to Apply for Eligibility and to Bid.

"Similar" contracts shall be defined by the concerned office/agency/corporation in the Invitation to

Apply for
Eligibility and to Bid. The bidder's documents shall include, for each contract, kinds of

goods/supplies/materials sold, amount of contract, end user's acceptance, name of contract, date of

contract, date of delivery, specification whether prospective bidder is a manufacturer, supplier or

distributor.

In the case of capital goods, the value of the bidder's largest single contract, adjusted to current prices,

completed within the period specified in the Invitation to Apply for Eligibility and to Bid, and similar to
the

contract to be bid, must be at least fifty percent (50%) of the approved budget for the contract to be
bid.

C. Financial Documents - audited financial statements, stamped "received" by the Bureau of Internal
Revenue, for the last two calendar years. Each of the above requirements shall be under oath and duly
notarized, and shall form part of the duly accomplished application form for eligibility. For special cases
of procurement of goods/supplies/materials where foreign suppliers may participate, the above
requirements may be substituted by the appropriate equivalent documents issued by the foreign
supplier's country. These

documents must be duly acknowledged by the Philippine Consulate therein.

4.4.2 The eligibility of prospective bidders shall be determined using simple "pass/fail" criteria and shall
be

determined as either "eligible" or "ineligible". If the prospective bidder is rated "passed" for all the
above

requirements, he shall be considered eligible. If the prospective bidder is rated "failed" in any of the
above

requirements, he shall be considered ineligible.

4.4.3 If only one bidder is found to be eligible, or that only one bidder responded to the Invitation to
Apply for Eligibility and to Bid, the agency concerned shall recognize a lone eligible bidder as valid.

4.4.4 Notwithstanding the eligibility of a bidder, the government reserves the right to review the
qualifications of a bidder before the bidding of the contract is made. Should such review uncover any
misrepresentation made in the eligibility statements, or any changes in the situation of the bidder to
materially downgrade the substance of such statements, the agency concerned shall disqualify the
bidder from submitting a bid.

4.5 Pre-bid Conferences

4.5.1 For contracts to be bid costing more than one million pesos (P1,000,000), pre-bid conferences
shall be

conducted by the government, to clarify and/or explain any of the requirements, terms, conditions and

specifications stipulated in the bid documents. For contracts to be bid costing one million pesos
(P1,000,000)

or less, pre-bid conferences may be conducted at the discretion of the concerned

office/agency/corporation. The conference shall be held not later than 14 days after the bid documents
have been made available to the prospective bidders to familiarize themselves with the documents but
sufficiently in advance of bid opening to allow consideration of the conference results in preparing bids.
The bidders shall bear all costs in the preparation of their bids and the government shall in no case be
responsible or liable for these costs, regardless of the outcome of the bidding process.

4.5.2 Among others, the pre-bid conference shall discuss the following: a.

technical specifications

b. legal requirements
c. financial requirements

d. production capability requirements

e. delivery schedule

f. after-sales service requirements

4.5.3 Any statement at the pre-bid conference shall not modify the terms of the bid documents unless
such

statement is specifically identified in writing as an amendment thereto and sent by mail, by hand or

electronically to all parties who have secured the bid/tender documents. The minutes of the
conference(s) shall be recorded and made available to all participants.

4.6 Submission, Receipt and Opening of Eligibility and Bid Envelopes

4.6.1 Prospective bidders shall submit their application for eligibility and bid documents simultaneously
on the specified deadline for the submission of the eligibility and bid envelopes. The eligibility envelope
shall be sealed and contain the documents required in section 4.4.1. The bid envelope(s) shall be
sealed and contain the documents required in section 4.8.1 and Annex F. In case of single-stage
bidding: Prospective bidders shall submit simultaneously two envelopes, one containing eligibility
requirements and the other containing bidding documents. In case of single-stage bidding variation:
Prospective bidders shall submit simultaneously three envelopes, one containing eligibility
requirements and two containing bidding documents. Contents of each of the bid envelopes are
specified in Annex F. In case of two-stage bidding: Prospective bidders shall submit their eligibility
envelopes first, during the first stage of the bidding. Eligible bidders who are interested to bid shall
submit their bidding documents in two sealed envelopes during the second stage of the bidding. The
eligibility envelopes of prospective bidders shall be opened first to determine eligibility of prospective
bidders. In case any of the requirements specified in section 4.4.1 is missing from the eligibility
envelope, the BAC shall declare said prospective bidder as "ineligible" to bid. Bid envelope(s) shall
immediately be returned unopened to ineligible bidders in case of simultaneous submission of eligibility
and bid envelopes. In case of single-stage bidding variation and two-stage bidding, the first bid
envelopes of eligible bidders shall be opened to determine the bidders' compliance with requirements.
In case any of the requirements is missing, the BAC shall rate the bid as "failed" and immediately
return to the bidder concerned his second bid envelope unopened. The second envelopes of the
remaining eligible bidders shall be opened immediately for those whose first bid envelopes were rated
"passed". In case any of the requirements in the second envelope is missing or if the submitted price
exceeds the approved budget for the contract, the BAC shall rate the bid concerned as "failed". Only
bids whose envelopes are all rated as "passed" shall be evaluated and calculated to come up with the
lowest calculated bid.

4.6.2 Bidders may be required to submit bids either through the single-stage bidding procedure, its
variation or two-stage bidding procedures depending on the requirements of the procurement process
as duly approved for use. These bidding procedures and the conditions under which the same may be
adopted are indicated in Annex "F".

4.6.3 Each bid shall be accompanied by a bid security that is payable to the concerned agency as a
guarantee that the successful bidder shall, within fifteen (15) calendar days after receipt of the Notice
of Award, enter into contract with the Government and furnish the required performance security for
the faithful performance of all works called for. Failure to enclose the required bid security as to form
and amount prescribed herein shall automatically disqualify the bid concerned.

4.6.4 The amount of the bid security shall be fixed at an amount equal to two-and-one-half percent (2-
1/2%) of the approved budget for the contract to be bid. The security may be in the form of cash,
cashier's check,

manager's check, bank draft or guarantee against any reputable bank, letter of credit issued by a
commercial bank, a surety bond callable on demand issued by a surety or insurance company
accredited by the Office of the Insurance Commissioner, or any combination thereof.

4.6.5 Bids and bid securities shall be valid for such reasonable period determined by the head of the
agency
concerned. This period shall be so indicated in the Instructions to Bidders. In no case shall this period
exceed one hundred twenty (120) days from the date of opening of bids.4.6.6 Withdrawal of bids after
the applicable deadline shall be subject to appropriate sanctions as prescribed herein. Bid modifications
received after the applicable deadline as well as bids submitted after the deadline for the submission of
bids shall not be considered and shall be returned unopened. Subject to this restriction, a prospective
bidder may withdraw his bid, including the bid security, or modify it. Where a bidder wishes to modify
his bid, he shall not be allowed to retrieve his original bid, but shall only be allowed to send another bid
equally sealed, properly identified and linked to his original bid and marked as "modification".4.6.7 No
bid securities submitted in the form of sureties of all complying bidders shall be returned after the
opening of bids. Bid securities submitted in form other than sureties, such as cash, cashier's check,
manager's check, letter of credit and bank draft/guarantee, may be returned upon request of the
bidder, provided that he is not among the three lowest evaluated complying bidders and such
withdrawal shall be construed as a waiver by the bidder for the award of contract.

Bid securities in the form of sureties shall be returned only after the successful bidder has signed the
contract and furnished the performance security but not later than the expiration of the bid security
validity period indicated in the Instructions to Bidders.4.6.8 If only one (1) bid is received in response to
an invitation for bids, an award may be made to the single bidder provided that his bid price is not
higher than the approved budget for the contract to be bid, his bid passes post qualification, and there
is no evidence of collusion with non-participating suppliers and/or other parties and that other
prospective bidders were given equal opportunity to respond.

4.7 Determination of the Lowest Calculated Responsive Bid

4.7.1 The "lowest calculated responsive bid" is defined as the bid (a) with the lowest calculated price as

determined in section 4.8.3, and (b) which complies with or is responsive to all the requirements
hereof. The bid satisfying (a) shall be referred to as the lowest calculated bid.

4.7.2 The BAC shall determine the lowest calculated responsive bid in the following manner:

A. The first step is to determine whether each eligible bid complies with the submission requirements
as specified hereunder in section 4.8.1 and in annex F. The BAC shall rate a bid "passed" only if it
complies with all the requirements and the submitted price does not exceed the approved budget for
the contract.

B. The second step is to establish the calculated prices of all bids rated "passed" in the first step.
Calculated

prices are to be determined in accordance with section 4.8.3 hereunder. The BAC shall then rank the
calculated prices from lowest to highest.

C. The third step is the post qualification of the bidder with the lowest calculated price based on the
results of the above evaluation. This shall be done in accordance with the provisions hereof. In case the
said bidder fails to post qualify, the provisions of section 4.10 shall apply.

4.8 Examination and Evaluation of Bids

4.8.1 Prior to bid evaluation and comparison, bids received shall be examined using "pass/fail" criteria,
to

determine submission of the following: the bid prices in the bill of quantities, the recurring and the
maintenance costs (if applicable), bid securities as to form, amount, and validity period, authority of
signatory, production/delivery schedule, person power requirements, after-sales service/parts, technical
specifications, credit line commitments or cash deposit certificate, and other non-discretionary criteria
as stated in the Instructions to Bidders. The above requirements shall be submitted in the following
manner: one sealed bid envelope for single stage bidding; two sealed bid envelopes for single stage
bidding variation; and at least two sealed envelopes for two stage bidding. Only bids that are
determined to contain all the bid requirements in the sealed envelope/s shall be rated "passed" and
shall be considered for evaluation and comparison.

4.8.2 The purpose of bid evaluation is to determine the lowest calculated bid. This bid, which may not
be the lowest submitted price, shall be subject to post qualification. Post qualification shall determine
the
responsiveness of the lowest calculated bid to eligibility and bid requirements. The contract shall be
awarded to the bidder with the lowest calculated responsive bid. The general guidelines to be followed
in bid evaluation and comparison are outlined in annex "G". The bid evaluation shall be based on a
detailed analysis of the following:

A. Completeness of the bid: unless the instructions to bidders specifically allow partial bids, bids not
offering all of the required items shall be considered non-responsive and, thus, automatically
disqualified

B. The bid security must conform to the requirements of the Instructions to Bidders, as to type, amount,
form and wording, and validity period

C. The recurring costs if any and maintenance costs

D. The bid price subject to a price equalization analysis calculating arithmetical errors and other minor

deviations.

E. Identification of minor/major deviations and terms and conditions as described in the Instructions to
Bidders Bids that contain major deviations from the requirements in the instruction to bidders shall be
considered invalid. Major deviations are those that would not fulfill the purpose for which the bid was
requested, or would prevent a fair comparison with bids that comply with the bid documents. Examples
are:

(1) stipulating price adjustment when fixed price bids were called for;

(2) failing to respond to the specifications by offering a different design or work item;

(3) subcontracting beyond allowable limits;

(4) refusing to bear contractual responsibilities specified in the bid documents, such as performance

guarantees;

(5) taking exception to critical provisions or setting conditions to his bid, such as applicable laws, taxes
and

duties, and dispute resolution procedures.

F. Corrections for errors, discounts, and other modifications: corrections for arithmetical or
computational

errors, as well as for discrepancies between total bid prices and extended unit bid prices, between
stated total prices and actual summations, between prices in figures and in words, and other
errors/discrepancies, shall use the methodology described in the Instructions to Bidders. Discounts and
other modifications in the bid amounts shall be reflected in the evaluation of bids.

4.8.3 The concerned agency may employ any of the specific evaluation procedures described in Annex
"H" in determining the bid's calculated price that it deems most appropriate for the requirements of a
particular

contract. The use of any such procedure shall be approved by the head of the concerned
office/agency/corporation and indicated in the Instructions to Bidders

4.8.4 Evaluation of bids shall be completed not later than thirty (30) calendar days from the date of the
opening of bids. The BACs of all agencies shall prepare and keep on file detailed reports on the
evaluation and comparison of bids setting forth the specific reasons on which recommendations are
based for the contract award.

4.8.5 The Government reserves the right to reject any or all bids or to declare the bidding a failure if
there is

evidence of collusion among bidders thus resulting in the absence of competition. However, all bids
shall not be rejected and new bids invited on the same specifications for the purpose of obtaining low
prices, except in cases where the lowest submitted bid exceeds the approved budget for the contract
under bidding. In such a case, a revised less expensive requirement may be substituted to seek a more
affordable result
4.8.6 No information relating to the detailed evaluation of bids, post qualification of the lowest
calculated bid

and recommendations concerning awards shall be disclosed to persons outside the BAC concerned
before the announcement of the contract award to the successful bidder. After the award of contract,
all unsuccessful bidders shall be informed individually in writing.

4.9 Failure of Bidding

4.9.1 The Government shall declare the bidding a failure and the concerned office/agency/corporation
shall

conduct a rebidding with re-advertisement as per section 4.2.1 of the project when no bids are
received, or

without re-advertisement when all bids fail to comply with all the eligibility and bid requirements or fail
post

qualification. In case of the latter, a direct notification shall be extended to all bidders either by mail, by
hand, or electronically.

4.9.2 Should there occur another bidding failure after the conduct of the project's rebidding, the agency

concerned may enter into a negotiated procurement.

4.10 Post qualification of the Lowest Calculated Bid

4.10.1 To determine the lowest calculated responsive bid, the BAC shall, within thirty (30) days from
the

determination of the lowest calculated bid, conduct a post qualification of the bidder with the lowest
calculated bid. The post qualification shall verify, validate and ascertain whether the bidder with the
lowest calculated bid complies with and is responsive to all the requirements for eligibility and of the
bidding, using the nondiscretionary "pass/fail" criteria stated in the Invitation to Apply for Eligibility and
to Bid and in the Instructions to Bidders. These criteria shall consider, but shall not be limited to, the
following measures:

A. Legality of documents to validate the licenses and agreements submitted by the bidder.

B. Evaluation of technical capacity to determine compliance of the goods/product with the required

specifications. This may include inspection and tests of the goods/product, maintenance and after-sales

capabilities in applicable cases.

C. Evaluation of financial capability to analyze and verify, whenever applicable, the required bank
commitment to provide a credit line to the bidder in the amount specified and over the period
stipulated in the Instructions to Bidders, to ensure that the bidder can sustain the operating cash flow
of the transaction. If the bidder passes in all criteria, he shall be considered post qualified and the
concerned office/agency/corporation shall award the contract to him. If, on the other hand, the bidder
fails in any of the criteria, he shall be considered post disqualified and the concerned agency shall
undertake the same post qualification process on the bidder with the second lowest calculated bid.The
bidding process is used to select a vendor for subcontracting a project, or for purchasing products and
services that are required for a project. Bid records contain the specifications of the project or details of
the products and services to be purchased.