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Department of Trade and Industry (DTI) Construction Industry Authority of the Philippines (CIAP)

Republic of the Philippines

CIAP DOCUM !T "#$ U!I%O&M ' ! &A( CO!DITIO!) O% CO!T&ACT %O& P&I*AT CO!)T&UCTIO!
TABLE O !O"TE"T# #E!TIO" TITLE Pa$e "o% )ection I. D %I!ITIO!) A!D DOCUM !T) + ,

Article & Definitions ' ( &%)& Act of *od or Force Majeure ' &%)+ Ad,ertisement or In,itation to Bid ' &%)- A$reement ' &%)( Bid ' &%). Bid Bond ' &%)/ Bid Documents ' &%)0 Bid Bulletin ' &%)1 Brea2do3n of 4or2 and !orrespondin$ 5alue ' &%)6 !han$e Order ' &%&) !ontract ' &%&& !ontract Documents ' &%&+ !ontract Price ' &%&- !ontractor ' &%&( Dra3in$s ' &%&. inal Payment ' &%&/ *uarantee Bond '
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&%&0 Instruction to Bidders ' &%&1 La3s ' &%&6 O3ner ' &%+) O3ner7s Representati,e ' &%+& Payment Bond ' &%++ Performance Bond ' &%+- #chedule of 8aterials and inishes ' &%+( #pecifications ' &%+. #pecial Pro,isions or !onditions ' &%+/ #ub'!ontractor ' &%+0 #upplementary #pecifications ' &%+1 #urety ' &%+6 Time Limit or !ompletion Time ' &%-) 4ritten "otice ' &%-& 4or2 ' Article + E9ecution: !orrelation: 8eanin$ of Terms and Intent of Documents + +%)& Intent of !ontract ' / +%)+ #tandard of !onduct ' +%)- Interpretation of !ontract ' +%)( !onformity to the !ontract ' +%). 8eanin$ of Terms ' +%)/ Timely E9ercise of Administrati,e Responsibilities ' +%)0 Defecti,e E;uipment: 8aterials and 4or2 ' +%)1 Re,ie3 of !ontract '
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+%)6 Documents and #amples at the #ite ' +%&) O3nership of !ontract and 8odels ' Article - Dra3in$s and #pecifications ' -%)& !opies of Dra3in$s and #pecifications ' -%)+ !oordination of Dra3in$s and #pecifications ' -%)- !larification of 8eanin$ of Dra3in$s and #pecifications ' -%)( Discrepancy in Dra3in$s ' Article ( Detail Dra3in$s and Instructions ' (%)& #upplementary Dra3in$s and Instructions ' Article . #hop Dra3in$s ' .%)& !onditions in the Preparation of #hop Dra3in$s ' .%)+ Identification ' .%)- Letter of Transmittal ' .%)( !orrections: !han$es and 5ariations ' .%). Responsibility for Accuracy ' )ection II. (A.)/ & 'U(ATIO!)/ )IT A!D TA0 ) + "" Article / La3s and #ite !onditions ' && /%)& La3s and Re$ulations ' /%)+ #ite !onditions ' Article 0 Permits: Ta9es and #ur,eys ' 0%)& Permits and Licenses ' 0%)+ Ta9es '
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CO!DITIO!)/ P &MIT)

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0%)- !onstruction #ta2es and Reference 8ar2 ' 0%)( #er,ices of *eodetic En$ineer ' )ection III. + 2UIPM !T A!D MAT &IA() "1

Article 1 *eneral ' &Article 6 E;uipment ' 6%)& <uality of E;uipment ' 6%)+ E;uipment #ubstitution ' Article &) 8aterials: i9tures: Appliances: and ittin$s furnished by the !ontractor ' &)%)& #amples of 8aterials ' &)%)+ Trade "ame 8aterials and #ubstitutes ' &)%)- Testin$ #amples of 8aterials ' &)%)( <uality of 8aterials ' &)%). #tora$e and #toc2pilin$ of 8aterials ' &)%)/ Defecti,e 8aterials ' &)%)0 Imported 8aterials: i9tures and E;uipment ' Article && ' Article &+ ' Article &' Royalties and Patents 8anufacturer7s Directions P& MI) ) A!D T MPO&A&3 )T&UCTU& ) 8aterials: E;uipment: i9tures: Appliances and ittin$s urnished by the O3ner

)ection I*. ' "Article &( ' &/

=se of Premises

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&(%)& Limitation of =se ' &(%)+ #afe$uard for #tructures ' Article &. Temporary #tructures and acilities ' &.%)& Temporary Office and !ontractor7s Buildin$ ' &.%)+ Temporary >ousin$ for 4or2ers ' &.%)- #afety and #anitation ' &.%)( Temporary #i$ns ' &.%). Temporary or Trial =sa$e ' )ection *I. + "6 Article &6 ' &1 (A4O&/ .O&5 A!D PA3M !T) Labor

)ection *. P&OT CTIO! O% .O&5 A!D P&OP &T3 + "7 Article &/ Protection of 4or2 and O3ner7s Property ' &6 )ection *II. CO!T&ACTO& +) PA&AT CO!T&ACTO&)+ )U4CO!T&ACTO&) & (ATIO!) ' $7 Article +-? #eparate !ontracts 3ith Other !ontractors ' +6 Article +(? !ontractor'#eparate !ontractors Relations ' Article +.? #ub'!ontracts ' )ection *III. )U)P !)IO! O% .O&5 A!D T &MI!ATIO! O% CO!T&ACT + 1" Article +0? !ontractor7s Ri$ht to #uspend 4or2 or Terminate !ontract ' -& Article +1? O3ner7s Ri$ht to #uspend the 4or2 ' Article +6? O3ner7s Ri$ht to Terminate !ontract ' Article -)? O3ner7s Ri$ht to Proceed 3ith the 4or2 After Reduction in
!ontractor7s #cope of 4or2@ Partial Ta2eo,er from !ontractor

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)ection I0. & )PO!)I4I(ITI ) A!D (IA4I(ITI ) CO!T&ACTO& A!D O% O.! & 1, Article -&? !ontractor7s Responsibility for Accidents and Dama$es ' -( Article -+? !ontractor7s Insurance and Bonds ' Article --? O3ner7s Responsibilities and Liabilities ' Article -(? Liens: Disputes and Arbitration ' )ection 0. O.! &9) & P& ) !TATI* +: 17 Article -.? O3nerAs Representati,e ' -6 )ection 0I. )C; DU( + ,# O% TIM (IMIT)

O% +

Republic of the Philippines

Department of Trade and Industry (DTI) Construction Industry Authority of the Philippines (CIAP)

CIAP DOCUM !T "#$ U!I%O&M ' ! &A( CO!DITIO!) O% CO!T&ACT %O& P&I*AT CO!)T&UCTIO!
) CTIO! I. D %I!ITIO!) A!D DOCUM !T)

A&T. "< D %I!ITIO!) &%)& A!T O *OD OR FORCE MAJEURE includes an e,ent 3hich cannot be foreseen: or 3hich thou$h foreseen: 3as ine,itable% Rain: 3ind: flood or other natural phenomenon of inconse;uential de$ree for the locality shall not be construed as an Act of *od or Force Majeure% &%)+ AD5ERTI#E8E"T or I"5ITATIO" TO BID refers to the notice published by the O3ner or the in,itation issued to prospecti,e bidders: $i,in$ information as to the nature of the proposed proBect: conditions for the issuance of !ontract documents: date of biddin$: and information that 3ould $i,e the !ontractor a $eneral idea of the ma$nitude and e9tent of the proBect%

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&%)- A*REE8E"T is the term used to describe the a$reement si$ned by the O3ner and the !ontractor e9cludin$ the !ontract Documents 3hich are attached thereto% &%)( BID is the tender: or proposal: or ;uotation: or offer of a bidder to perform the 3or2 described in the !ontract 3hich in form and substance complies 3ith the Instruction to Bidders% &%). BID BO"D refers to any acceptable form of bond accompanyin$ the Bid submitted by the bidder as a $uarantee that the bidder 3ill enter into the !ontract 3ith the O3ner for the construction of the 4or2: if the !ontract is a3arded to him% &%)/ BID DO!=8E"T# collecti,ely refer to all documents pro,ided or made a,ailable to prospecti,e bidders 3hich include the In,itation to Bid and a copy of the !ontract 3hich the 3innin$ bidders 3ould be re;uired to si$n 3ith the O3ner% &%)0 BID B=LLETI" is a document containin$ additional information on Bid Documents issued to bidders before date of biddin$% &%)1 BREACDO4" O 4ORC A"D !ORRE#PO"DI"* 5AL=E is a listin$ of the different parts of the 3or2 indicatin$ each part and its correspondin$ ,alue% &%)6 !>A"*E ORDER is a 3ritten order to the !ontractor issued by the O3ner after the e9ecution of the !ontract: authoriDin$ a chan$e or ,ariation in the 3or2 or an adBustment in the !ontract Price or !ontract time% &%&) !O"TRA!T is the term used to describe the A$reement and the !ontract Documents% &%&& !O"TRA!T DO!=8E"T# are the documents attached to the A$reement identified therein as !ontract Documents: includin$ all additions: deletions and modifications incorporated therein% These $enerally include the follo3in$ documents? a% #pecial Pro,isions or !onditions b% *eneral !onditions c% Dra3in$s d% #pecifications e% Other Bid Documents &%&+ !O"TRA!T PRI!E is the amount in money or other consideration to be paid by the O3ner to the !ontractor for the e9ecution of the 4or2 in accordance 3ith the !ontract%

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&%&- !O"TRA!TOR is the person or firm duly re$istered and licensed by the Philippine !ontractors Accreditation Board 3hose proposal has been accepted and to 3hom 3as a3arded the !ontract to e9ecute the 4or2% &%&( DRA4I"*# are $raphical presentations of the 4or2% They include all supplementary details and shop dra3in$s% &%&. I"AL PAE8E"T refers to the payment of the final pro$ress billin$ and all appro,ed claims includin$ but not limited to those ,ariations in the 3or2: !ontract Price adBustments andFor escalation: acceleration of 3or2: and others% It does not include the retention money% &%&/ *=ARA"TEE BO"D is the appro,ed form of security furnished by the !ontractor and his #urety as a $uarantee of the ;uality of the materials pro,ided: the e;uipment installed: and the 3or2manship performed by the !ontractor% &%&0 I"#TR=!TIO" TO BIDDER# refers to the list of instructions re$ardin$ the manner bids are to be prepared and the conditions for the a3ard of the !ontract% &%&1 LA4# refers to all la3s: ordinances and other $o,ernmental rules and re$ulations applicable to the proBect and to its e9ecution% &%&6 O4"ER is the person or entity or authoriDed representati,e thereof 3ho si$ned the !ontract as O3ner% &%+) O4"ER7# REPRE#E"TATI5E refers to the person or entity commissioned by the O3ner or authoriDed in 3ritin$ by the O3ner to act on his behalf% &%+& PAE8E"T BO"D is the appro,ed form of security furnished by the !ontractor and his #urety as a $uarantee of $ood faith on the part of the !ontractor to faithfully comply 3ith the !ontract in respect of its obli$ations arisin$ therefrom to its 3or2ers: subcontractors: and suppliers% &%++ PER OR8A"!E BO"D is the appro,ed form of security furnished by the !ontractor and his #urety as a $uarantee of $ood faith on the part of the !ontractor to e9ecute the 4or2 in accordance 3ith the !ontract% &%+- #!>ED=LE O 8ATERIAL# A"D I"I#>E# is an outline specification enumeratin$ the type or trade names of materials re;uired to be used by the !ontractor for the 4or2% &%+( #PE!I I!ATIO"# are the 3ritten or printed description of the 3or2 to be done describin$ ;ualities of the material to be used: the e;uipment to be installed and the mode of construction%

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&%+. #PE!IAL PRO5I#IO"# OR !O"DITIO"# are instructions 3hich are issued prior to biddin$ to supplement andFor modify the Dra3in$s: #pecifications andFor *eneral !onditions of the !ontract% &%+/ #=B'!O"TRA!TOR is a contractor duly re$istered and licensed by the Philippine !ontractors Accreditation Board ha,in$ a direct contract 3ith the !ontractor 3ho acts for or in behalf of the !ontractor in e9ecutin$ any part of the !ontract% One 3ho merely furnishes materials 3ithout labor is a supplier and not a #ub'!ontractor% &%+0 #=PPLE8E"TARE #PE!I I!ATIO"# refers to additional information 3hich may be issued as an addition to or amendment of the pro,isions of the #pecifications% &%+1 #=RETE is the person: firm or corporation 3hich issues the bond re;uired of the !ontractor% &%+6 TI8E LI8IT OR !O8PLETIO" TI8E is the period of time allo3ed by the !ontract for the completion of the proBect or any stipulated portions thereof% &%-) 4RITTE" "OTI!E means information: ad,ice or notification pertinent to the proBect deli,ered in person or sent by re$istered mail to an indi,idual: firm or corporation at the latter7s last 2no3n business address% &%-& 4ORC refers to all the !ontractor'pro,ided labor or materials or both as 3ell as e;uipment transportation: or other facilities necessary to commence and complete the construction and to fulfill all his obli$ations 3hich are called for in the !ontract% A&T. $< 0 CUTIO!/ CO&& (ATIO!/ M A!I!' O% T &M) A!D I!T !T O% DOCUM !T) +%)& I"TE"T O !O"TRA!T ? The intent of the !ontract is to include all labor and materials: e;uipment and transportation necessary for the proper e9ecution of the 4or2% +%)+ #TA"DARD O !O"D=!T? Each party to the !ontract ac2no3led$es that in the e9ercise of his ri$hts in the performance of his duties: he must act 3ith Bustice: $i,e the other party his due: and obser,e honesty and $ood faith% +%)- I"TERPRETATIO" O !O"TRA!T a% In case of conflict bet3een the pro,isions of the A$reement or of any !ontract Document: or bet3een the pro,isions of one of the !ontract Documents and the pro,isions of another !ontract Document: or in case of discrepancy: defecti,e description: error or omission in the !ontract: the follo3in$ rules shall be follo3ed?
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R=LE &? The A$reement and the !ontract Documents shall be ta2en as mutually e9planatory of one another% The ,arious pro,isions of the !ontract shall be interpreted to$ether attributin$ to the doubtful ones that sense 3hich may result from all of them ta2en Bointly% R=LE +? The pro,isions of the !i,il !ode of the Philippines on the interpretation of contracts and of the Rules of !ourt on the Interpretation of Documents shall be applied% R=LE -? 4here the conflict bet3een or amon$ the pro,isions of the A$reement andFor the !ontract Documents cannot be resol,ed by Rules & and +: it shall be understood that? (a) the Detailed Dra3in$s shall pre,ail o,er the *eneral Dra3in$s@ (b) fi$ures 3ritten on Dra3in$s shall pre,ail o,er the Dra3in$s themsel,es@ and (c) calculated dimensions shall pre,ail o,er scaled dimensions% R=LE (? 4here the conflict cannot be resol,ed by applyin$ Rule - or 3here Rule - does not apply: the conflict shall be resol,ed by $i,in$ precedence to the A$reement or to pro,isions of a !ontract Document hi$her in order of priority amon$ the ,arious documents 3hich comprise the !ontract% The order of priority amon$ these documents shall be as follo3s? (a) A$reement as modified by "otice of A3ard of !ontract: if such be the case: and the !ontractor7s conformity thereto? (b) Instruction to Bidders and any amendment thereto@ (c) Addenda to Bid Documents@ (d) Dra3in$s@ (e) #pecifications@ (f) #pecial !onditions of !ontract@ ($) *eneral !onditions of !ontract@ (h) Other !ontract Documents@ and (i) Other documents formin$ part of the !ontract attached thereto or incorporated therein by reference% 4here the order of precedence is modified in the A$reement: such modified order of precedence shall be follo3ed@ ho3e,er: the mere listin$ of !ontract Documents in the A$reement or any !ontract Document shall not be interpreted as establishin$ an order of precedence amon$ them% R=LE .? 4here there is discrepancy: defecti,e description: omission in any !ontract Document: the !ontract Documents interpreted as bein$ complementary to each other% Thus: 3hat for in one !ontract Document: althou$h not mentioned in !ontract Document 3here it should ha,e been mentioned: deemed to be called for by the !ontract% error or shall be is called another shall be

R=LE /? The apparent silence of the Dra3in$s: #pecifications or any other !ontract Document as to any detail: or the lac2 of detailed description
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concernin$ any part of the 3or2: shall be understood to mean that $ood and accepted construction practice in accordance 3ith the usa$e or custom of the place shall be follo3ed% R=LE 0? Rules & to / shall yield to specific rules of interpretation in this document or in the !ontract% b% The O3ner shall resol,e the conflict: or interpret or e9plain such discrepancy: defecti,e description: error or omission 3ith due re$ard to Article +%)( belo3% c% The interpretation of or e9planation by the O3ner shall be issued in form of instructions to the !ontractor% 4here the O3ner fails to issue instruction in 3ritin$: the e9ecution of that part of 3or2 affected by interpretation or e9planation 3ithout a timely obBection or protest of O3ner shall be deemed to ha,e been e9ecuted in accordance 3ith O3ner7s e9planation or interpretation% the the the the the

d% In all cases 3here a de,ice: item or part of e;uipment is referred to in the sin$ular number: it is intended that such reference shall apply to as many such de,ices: items: or parts as are re;uired to complete the 3or2% +%)( !O" OR8ITE TO T>E !O"TRA!T? The 4or2 shall be e9ecuted in accordance 3ith the !ontract% a% If there be pro,isions of the *eneral specification control% a ,ariance bet3een the Dra3in$s and the #pecifications: the the #pecifications shall control% In case of conflict bet3een !onditions or any modification thereof and the detailed re;uirements: the detailed specification re;uirements shall

b% Any discrepancy found bet3een the Dra3in$s and #pecifications and site conditions or any error or omission in the Dra3in$s or #pecifications shall be immediately reported to the O3ner: 3ho shall promptly correct such discrepancy: error: or omission% Any 3or2 in,ol,in$ such discrepancies shall be estimated by the !ontractor and unit prices or lump sum amounts shall be a$reed upon by the parties 3hene,er possible before the 3or2 is done% Any 3or2 done by the !ontractor in,ol,in$ discrepancies found by the !ontractor and not reported to and 3ithout the 2no3led$e of the O3ner shall be considered as ha,in$ been done at the !ontractor7s ris2% c% The O3ner shall be fully responsible for ade;uacy of the desi$n and for sufficiency of the Dra3in$s and #pecifications% The complete re;uirements of the 4or2 shall be set forth in Dra3in$s and #pecifications to be supplied by the O3ner% +%). 8EA"I"* O TER8#
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a% APPRO5ED: DIRE!TED A"D A!!EPTABLE ? The 3ords Gappro,edG: GdirectedG and GacceptableG: or 3ords of li2e import shall mean appro,ed: directed by or acceptable to the O4"ER% b% =R"I#> ? The 3ord GfurnishG shall be understood to mean Gpurchase andFor fabricate and deli,er to the Bobsite or other location 3hen so desi$nated%G c% I"#TALL ? The 3ord GinstallG shall mean to build in: mount in positions: connect or apply any obBect specified ready for the intended use% d% PRO5IDE ? The 3ord Gpro,ideG shall be understood to mean Gfurnish and install%G e% RE<=IRED OR "E!E##ARE ? The 3ords Gre;uiredG or GnecessaryG shall mean as re;uired or necessary for the complete e9ecution of that portion of the 4or2% +%)/ TI8ELE EHER!I#E O AD8I"I#TRATI5E RE#PO"#IBILITIE#% 4hene,er under the !ontract: the O3ner is re;uired to e9ercise his discretion by? a% $i,in$ his decision: opinion or consent: or b% e9pressin$ his satisfaction and appro,al: or c% determinin$ ,alue: or d% pro,idin$ dra3in$s: or e% supplyin$ e;uipment or materials: or f% other3ise ta2in$ action 3hich may affect the !ontractor7s timely completion of the 4or2: he shall e9ercise such discretion fairly and in a timely manner ta2in$ due re$ard of !ompletion Time and the appro,ed construction schedule noth3ithstandin$ any pro,ision in the !ontract re;uirin$ the !ontractor to notify the O3ner 3hen such action is due or 3hen such e;uipment or materials are due% 4hene,er in the !ontract: the !ontractor is re;uired to $i,e notice: submit data: catalo$s: samples: order or import materials or e;uipment: prepare and submit the construction schedule or notify the O3ner that a chan$e has been ordered or an e,ent causin$ a chan$e has occurred or been disco,ered: the !ontractor shall do so in a timely manner so as to a,oid any delay in the completion of the 4or2% 4hene,er the !ontract or accepted industry practice re;uires that before any part of the 4or2 is co,ered: it must be inspected and appro,ed: the O3ner shall pro,ide a sufficient number of inspectors at the proBect site 3hile 3or2 is in pro$ress and the failure of the O3ner to pro,ide such inspectors shall be understood as a 3ai,er of the O3ner to inspect and appro,e that part of the 4or2% +%)0 DE E!TI5E E<=IP8E"T: 8ATERIAL#: OR 4ORC% 4hene,er the !ontract or the *eneral !onditions pro,ide that the O3ner may re;uire the !ontractor to remo,e or replace defecti,e or inferior materials or
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e;uipment or to replace bad or defecti,e 3or2: the O3ner: if he is represented by a professional duly authoriDed to super,ise the !ontractor7s 3or2 and to e9ercise the discretion and authority of the O3ner: shall condemn such materials: e;uipment or 3or2 in order to minimiDe the dama$e or loss of the !ontractor% >o3e,er: 3here e,en 3ith the e9ercise of due dili$ence: the O3ner could not ha,e disco,ered the use of inferior materials and e;uipment or the defecti,e 3or2: the O3ner may condemn it upon disco,ery: and the !ontractor shall bear all the cost of remo,in$ and replacin$ the defecti,e or inferior material or e;uipment or the defecti,e 3or2% +%)1 RE5IE4 O !O"TRA!T% The !ontractor shall carefully study and compare the ,arious documents that comprise the !ontract and shall report to the O3ner any error: inconsistency or omission that may be disco,ered in its pro,isions% The !ontractor: ho3e,er: shall not be liable to the O3ner for any dama$e resultin$ from any such error: inconsistency or omission in the !ontract% The !ontractor shall follo3 the Dra3in$s and #pecification and all additional detail dra3in$s and instruction issued by the O3ner as bein$ in full and strict conformity 3ith the !ontract and the re;uirements of the 4or2% E9cept for shop dra3in$s: product data and samples for any portion of the 3or2 pro,ided or supplied by a specialty contractor: the O3ner7s appro,al thereof shall be construed as the O3ner7s ac2no3led$ment that the appro,ed shop dra3in$s: product data and sample comply 3ith the !ontract% The !ontractor shall not be liable to the O3ner for undetected error: inconsistency or omission in the !ontract or for complyin$ 3ith instructions or follo3in$ Dra3in$s or #pecifications: or for usin$ or follo3in$ the appro,ed shop dra3in$s: product data or sample% +%)6 DO!=8E"T# A"D #A8PLE# AT T>E #ITE% The !ontractor shall maintain in $ood order at the ProBect site on a current basis one record copy of all Dra3in$s: #pecifications: addenda: !han$e Orders and other modifications: and chan$es made durin$ construction: includin$ appro,ed shop dra3in$s: product data and samples% These documents and samples shall be a,ailable to the O3ner for the latter7s inspection% The !ontractor shall ad,ise the O3ner: on a current basis and in 3ritin$: of chan$es in the 4or2 made durin$ construction: e9cept those made in accordance 3ith !han$e Orders or O3ner7s instruction% +%&) O4"ER#>IP O !O"TRA!T A"D 8ODEL#? The Dra3in$s: #pecifications and models: includin$ all additional instructions and copies thereof: furnished to the !ontractor shall remain the property of the O3ner% They are not to be used by the !ontractor on any other 3or2: and: 3ith the e9ception of the si$ned !ontract inclusi,e of !ontract Documents: they shall be returned to the O3ner upon completion of the 4or2 before inal Payment to the !ontractor is made% A&T. 1< D&A.I!') A!D )P CI%ICATIO!)
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-%)& !OPIE# O DRA4I"*# A"D #PE!I I!ATIO"#? The O3ner shall furnish the !ontractor: free of char$e: three sets of Dra3in$s and #pecifications inclusi,e of the si$ned !ontract% All other copies of Dra3in$s and #pecifications as re;uired by the !ontractor 3ill be furnished to him at cost of reproduction% -%)+ !OORDI"ATIO" O DRA4I"*# A"D #PE!I I!ATIO"#? All Dra3in$s and models are to be read and understood to$ether 3ith the #pecifications: to form a part thereof% 4here fi$ures are $i,en: they are to be follo3ed in preference to measurements by scale% Anythin$ sho3n on the Dra3in$s but not mentioned in the #pecifications: or ,ice ,ersa: or anythin$ not e9pressly set forth in either but 3hich is reasonably implied: shall be furnished as if specifically sho3n and mentioned in both% -%)- !LARI I!ATIO" O 8EA"I"* O DRA4I"*# A"D #PE!I I!ATIO"#? =pon re;uest of the !ontractor: the O3ner 3ill e9plain (i) the meanin$ of the Dra3in$s (includin$ notes thereon) or of the #pecifications: or (ii) any obscurity as to the 3ordin$ of the #pecifications% The O3ner shall pro,ide the !ontractor directions and e9planations necessary and proper to ma2e more definite and certain any re;uirement of the Dra3in$s (includin$ notes thereon) or of the pro,isions of the #pecifications% -%)( DI#!REPA"!E I" DRA4I"*#? The !ontractor shall report to the O3ner any discrepancy in the fi$ures in the dra3in$s immediately upon its disco,ery% The O3ner shall ma2e the necessary correction% The !ontractor shall not be entitled to an adBustment of his !ontract Price and !ompletion Time should his 3or2 be ordered re'done if such 3or2 3as made 3ithout notifyin$ the O3ner of the disco,ery of the discrepancy and before the O3ner ma2es the necessary correction% A&T. ,< D TAI( D&A.I!') A!D I!)T&UCTIO!) (%)& #=PPLE8E"TARE DRA4I"*# A"D I"#TR=!TIO"#? The O3ner shall furnish additional detail dra3in$s and instructions essential to their proper interpretation and proper e9ecution of the 4or2% All such additional dra3in$s and instructions are to be considered of e;ual force as those 3hich ori$inally accompany the #pecifications% A&T. 8< );OP D&A.I!') .%)& !O"DITIO"# I" T>E PREPARATIO" O #>OP DRA4I"*#? The !ontractor shall prepare at his o3n e9pense and submit t3o copies of all shop or settin$ dra3in$s: templates: patterns and models and the O3ner shall pass upon them ma2in$ desired corrections: if any% The !ontractor shall ma2e the corrections in the shop dra3in$s re;uired by the O3ner and file 3ith the latter three (-) corrected copies thereof% .%)+ IDE"TI I!ATIO"? #hop consecuti,ely shall represent? dra3in$s 3hich shall be numbered

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a% All 3or2in$ and erection dimensions% b% Arran$ement and sectional ,ie3s% c% "ecessary details: includin$ complete connections 3ith other 3or2% d% Cinds of materials and finishes%

information

for

ma2in$

#hop dra3in$s shall be dated and contain (a) the name of proBect: (b) the descripti,e names of e;uipment: materials: and classified item numbers and (c) the location at 3hich materials or e;uipment are to be installed in the 4or2% .%)- LETTER O TRA"#8ITTAL? #ubmission of shop dra3in$s shall be accompanied by a letter of transmittal in duplicate: containin$ the name of the proBect: the !ontractor7s name: number dra3in$s: titles: and other pertinent data% .%)( !ORRE!TIO"#: !>A"*E# A"D 5ARIATIO"#? The !ontractor shall submit three sets of prints of shop dra3in$s to the O3ner for appro,al% #atisfactory shop dra3in$s 3ill be so identified by the O3ner: dated: and one copy thereof returned to the !ontractor% #hould shop dra3in$s be disappro,ed by the O3ner: one set of such shop dra3in$s 3ill be returned to the !ontractor indicatin$ therein the corrections and chan$es to be made% a% The !ontractor shall ma2e the re;uired corrections and chan$es and resubmit the shop dra3in$s: in duplicate: until the O3ner7s appro,al is obtained% b% =pon receipt of such appro,al: the !ontractor shall insert the date of appro,al on the tracin$s and promptly furnish the O3ner 3ith three additional prints of appro,ed dra3in$s% c% "o 3or2 called for by the shop dra3in$s shall be e9ecuted by the !ontractor until the O3ner7s appro,al is $i,en% d% If the shop dra3in$s sho3 ,ariations from the !ontract re;uirements because of standard shop practice or other reasons: the !ontractor shall ma2e specific mention of such ,ariations in his letter of submittal% .%). RE#PO"#IBILITE OR A!!=RA!E? If the !ontractor is a specialty contractor or is en$a$ed by the O3ner as a specialty contractor: the O3ner7s appro,al of shop dra3in$s 3ill be $eneral% It shall not relie,e the !ontractor of responsibility for accuracy of such shop dra3in$s: nor for proper fittin$ and construction of 3or2: nor for furnishin$ of materials or 3or2 re;uired by the !ontract and not indicated on the shop dra3in$s% The O3ner7s appro,al of such dra3in$s or schedule shall not relie,e the specialty contractor from responsibility for de,iations from the Dra3in$s or #pecifications: unless he has: in 3ritin$: called the O3ner7s attention to
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such de,iations at the time of submission and secured the O3ner7s 3ritten appro,al% ) CTIO! II. A!D TA0 ) (A.)/ & 'U(ATIO!)/ )IT CO!DITIO!) CO!DITIO!)/ P &MIT)

A&T. -< (A.) A!D )IT

/%)& LA4# A"D RE*=LATIO"#? In $eneral: the !ontractor shall comply 3ith all La3s in so far as they are bindin$ upon or affect the parties thereto: or the 4or2% >e shall also comply 3ith re$ulations of firms furnishin$ utilities such as 3ater: $as: telephone and electricity for the proBect% If the !ontractor performs any 3or2 contrary to such La3s or utilities7 re$ulations: he shall bear all additional costs arisin$ therefrom% /%)+ #ITE !O"DITIO"#? Before the biddin$ and the a3ardin$ of the !ontract: the !ontractor is e9pected to ha,e ,isited the proBect site and made his o3n estimate of the facilities re;uired in and difficulties attendin$ the e9ecution of the 4or2: on account of local conditions and all other contin$encies% The O3ner shall: ho3e,er: furnish the !ontractor a $eodetic sur,ey and sub'surface e9ploration 3hich the !ontractor may rely upon in the preparation of his Bid%

A&T. =< P &MIT)/ TA0 ) A!D )U&* 3) 0%)& PER8IT# A"D LI!E"#E#? The O3ner: 3ith the !ontractor7s assistance: shall secure and pay all construction permits and licenses necessary for the e9ecution of the 4or2 or of any temporary 3or2 and easements in relation thereto% The !ontractor shall secure the final occupancy permit but he shall not be responsible to the O3ner if: 3ithout his fault: the license is not issued or there 3as delay in its issuance% 0%)+ TAHE#? 4here,er the la3 of the place 3here the proBect is located re;uires a sales: consumer: use: or other similar ta9 related or pertinent only to the construction of the proBect: the !ontractor shall pay such ta9% 0%)- !O"#TR=!TIO" #TACE# A"D RE ERE"!E 8ARC? The O3ner shall furnish all sur,eys describin$ the physical characteristics: le$al limitations: and utility locations of the site% >e shall also furnish ri$hts'of' 3ay for access to the site% The O3ner shall be responsible for the establishment of lot lines: boundary lines: easements and benchmar2s
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3hich shall be made by a certified sur,eyor% The O3ner may re;uest the !ontractor to ,erify before the start of the construction the result of such sur,eys: pro,ided the O3ner shall pay for the cost of such ,erification% The O3ner shall also pay for any dama$e or cost to the !ontractor brou$ht about by errors in data furnished% All other $rade: lines: le,els: and benchmar2s necessary for the prosecution of the 3or2 shall be established and maintained by the !ontractor% The !ontractor shall pro,ide and maintain 3ell'built batterboards at all corners% >e shall establish benchmar2s in not less than t3o 3idely separated places% As 3or2 pro$resses: the !ontractor shall establish benchmar2s at each floor $i,in$ e9act le,els of ,arious floors: and shall lay'out the e9act locations of all partitions as a $uide to all trades% 0%)( #ER5I!E# O *EODETI! E"*I"EER? The !ontractor shall: at his option or 3hen so re;uired under the !ontract: en$a$e the ser,ices of a licensed *eodetic En$ineer to confirm and certify the location of column centers: piers: 3alls: pits: trenches: pipe 3or2: utility lines and 3or2 of a similar nature% The *eodetic En$ineer shall also ,erify and certify the lines and le,els of any part of the 4or2 at any time if so re;uired by the O3ner% The certification shall be pro,ided the O3ner and the !ontractor% If the *eodetic En$ineer finds any de,iation from the Dra3in$s in the 4or2 of the !ontractor: he shall report his findin$s to the O3ner 3ithin +( hours from disco,ery% The !ontractor shall be responsible for loss or dama$e caused by the act or omission of the *eodetic En$ineer% >o3e,er: 3ithout e9emptin$ the !ontractor from liability: but in miti$ation of it: the *eodetic En$ineer7s certification shall be re$arded as an independent and disinterested ,erification of such lay'out%

) CTIO! III.

2UIPM !T A!D MAT &IA()

A&T. 6< ' ! &A( All materials and e;uipment must conform to all La3s no3 or 3hich may be in force and applicable durin$ the period of construction% The !ontractor shall bear all dama$es by reason of any delay in the 4or2 arisin$ from his failure to comply 3ith this pro,ision% 4here any re,ision or amendment to such La3s is made durin$ the construction period 3hich
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affects the cost or time of completion of the !ontract: a constructi,e chan$e in the 4or2 shall be reco$niDed and a correspondin$ !ontract Price and !ompletion Time adBustment shall be made% A&T. 7< 2UIPM !T

6%)& <=ALITE O E<=IP8E"T? In order to establish standards of ;uality: the O3ner: in the detailed #pecifications may ha,e referred to certain e;uipment by name and catalo$ number% This procedure is not to be construed as eliminatin$ from competition other products of e;ual or better ;uality by other manufacturers 3here they are fully suitable in desi$n% 6%)+ E<=IP8E"T #=B#TIT=TIO"? The !ontractor shall furnish the complete list of proposed substitutions preferably prior to the si$nin$ of the !ontract to$ether 3ith such en$ineerin$ and catalo$ data as the O3ner may re;uire% All re;uests for substitution of e;uipment shall be in 3ritin$% The O3ner 3ill appro,e or disappro,e the re;uest in 3ritin$% "o substitute e;uipment shall be used unless appro,ed in 3ritin$ by the O3ner% The !ontractor shall abide by the O3ner7s Bud$ment as to 3hich proposed substitute items of e;uipment are Bud$ed to be acceptable% A&T. "#< MAT &IA()/ %I0TU& )/ APP(IA!C )/ A!D %ITTI!') %U&!I); D 43 T; CO!T&ACTO& &)%)& #A8PLE# O 8ATERIAL#? The !ontractor shall furnish for appro,al samples as specified or re;uired% The 3or2 shall be in accordance 3ith appro,ed samples% a% =nless other3ise specified: three samples shall be submitted: of ade;uate siDe to sho3 ;uality: type: color: ran$e: finish: and te9ture of material% b% Each sample shall be labeled: bearin$ the material7s name and ;uality: the !ontractor7s name: date: proBect name: and other pertinent data% c% 4here the #pecifications re;uire the manufacturer7s printed installation directions: such directions shall accompany the samples submitted for appro,al% d% A letter of transmittal in triplicate from the !ontractor re;uestin$ appro,al shall accompany all sets of samples% e% 8aterials re;uirin$ prior appro,al of the O3ner shall not be ordered until such appro,al in 3ritin$ is $i,en by the O3ner% All materials shall be furnished substantially e;ual in e,ery respect as the appro,ed samples%

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&)%)+ TRADE "A8E 8ATERIAL# A"D #=B#TIT=TE# ? a% 4hene,er an item or class of materials is specified e9clusi,ely by trade name: by manufacturer7s name or by catalo$ reference: only such item shall be used e9cept as pro,ided in para$raph (b) hereof% b% "o substitution shall be made of any material: article: or process re;uired under the !ontract unless the substitution is appro,ed in 3ritin$ by the O3ner% c% The !ontractor shall be responsible for materials and articles installed or used 3ithout such appro,al% d% #amples of materials for use in reinforced concrete 3or2 such as steel bars: cement: and a$$re$ates and their certificates of ori$in shall be appro,ed by the O3ner% &)%)- TE#TI"* #A8PLE# O 8ATERIAL#? The !ontractor shall submit to the O3ner as many samples as may be needed for purposes of testin$% Testin$ of all samples shall comply 3ith the #pecifications and $o,ernment standards and shall be performed by a competent entity or testin$ laboratory appro,ed by the O3ner% All costs of shipment: deli,ery: handlin$ and testin$ of !ontractor'supplied samples are to be paid by the !ontractor% &)%)( <=ALITE O 8ATERIAL#? =nless other3ise specified: all materials shall be ne3 and their ;uality shall be of the best $rade of their respecti,e 2inds ta2in$ into account the nature of the proBect and re;uirements of the !ontract% &)%). #TORA*E A"D #TO!CPILI"* O 8ATERIAL#? a% The O3ner shall pro,ide the !ontractor: at or near the proBect site: sufficient space for the !ontractor7s and #ub'contractors7 use for stora$e of their materials and for erection of their sheds and tool houses% b% All cement: lime: and other materials affected by moisture shall be stored on platforms and protected from the 3eather% The materials shall be so stored as to ensure the preser,ation of their ;uality and fitness for the 3or2% #tored materials shall be so located so as to facilitate prompt inspection% c% #hould it be necessary at any time to mo,e materials: sheds: or stora$e platforms: the !ontractor shall do so at his o3n e9pense% &)%)/ DE E!TI5E 8ATERIAL#? All materials not conformin$ to the #pecifications shall be considered defecti,e% The !ontractor shall remo,e
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or replace defecti,e materials 3hen ordered to do so by the O3ner% =pon the !ontractor7s failure to do so: the O3ner may remo,e and replace them and deduct the cost of remo,al and replacement from any money due or to become due the !ontractor% "o materials: the defects of 3hich ha,e been subse;uently corrected shall be used until the O3ner7s appro,al is $i,en% #hould the #upplementary concernin$ the be understood follo3ed% #pecifications: Dra3in$s: #pecial Pro,isions and #pecifications fail to pro,ide any detail or description nature and ;uality of the 4or2 to be performed it should that $enerally accepted construction practice shall be

&)%)0 I8PORTED 8ATERIAL#: IHT=RE# A"D E<=IP8E"T? The !ontractor: ta2in$ into consideration the !ompletion Time: shall ma2e timely arran$ements for the purchase and deli,ery of all specified imported materials: fi9tures: appliances and e;uipment in order to a,oid delay in the completion of the 4or2% "o e9tension of time shall be allo3ed if: due to ne$li$ence or inad,ertence of the !ontractor: such imported items arri,e late% A&T. ""< MAT &IA()/ 2UIPM !T/ %I0TU& )/ APP(IA!C ) A!D %ITTI!') %U&!I); D 43 T; O.! & 8aterials: e;uipment: fi9tures: appliances and fittin$s specifically indicated in the !ontract shall be pro,ided in accordance 3ith the O3ner' appro,ed construction schedule% 8aterials furnished by the O3ner shall be deemed acceptable for the purpose intended% The !ontractor may continue to use them until other3ise directed in 3ritin$ by the O3ner% "o further test shall be re;uired unless the O3ner directs other3ise and pays the cost of such test% If the !ontractor disco,ers any defect in materials furnished by the O3ner: he shall ad,ise the O3ner in 3ritin$% The !ontractor shall be responsible for material loss of or dama$e to any O3ner'pro,ided material: e;uipment: fi9ture: appliance or fittin$ in his custody% A&T. "$< &O3A(TI ) A!D PAT !T) The !ontractor shall pay all royalties and license fees on all patented materials and processes furnished by him% >e shall defend all suits or claims correspondin$ thereto for infrin$ement of any patent ri$hts and shall sa,e the O3ner harmless from loss on account thereof% A&T. "1< MA!U%ACTU& &9) DI& CTIO!) All manufactured articles: materials: e;uipment: appliances: fi9tures and fittin$s supplied by the !ontractor shall be applied: installed: connected: erected: used: cleaned: and conditioned by him: in accordance 3ith
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manufacturer7s printed directions% 4here reference is made to the manufacturer7s directions: the !ontractor shall submit the specified number of copies of such directions to the O3ner%

) CTIO! I*. A&T. ",< U)

P& MI) ) A!D T MPO&A&3 )T&UCTU& ) O% P& MI) )

&(%)& LI8ITATIO" O =#E? The !ontractor shall confine his apparatus: the stora$e of materials: and the operations of his 3or2men to limits indicated by La3 or directions of the O3ner and shall not unreasonably encumber the 3or2 premises 3ith his materials% &(%)+ #A E*=ARD OR #TR=!T=RE? The !ontractor shall not load or permit any part of the structure to be loaded 3ith a 3ei$ht that 3ill endan$er its safety% The !ontractor shall enforce the O3ner7s safety instructions re$ardin$ si$ns: ad,ertisements: fires and smo2in$% A&T. "8< T MPO&A&3 )T&UCTU& ) A!D %ACI(ITI ) &.%)& TE8PORARE O I!E A"D !O"TRA!TOR7# B=ILDI"*? The !ontractor shall: ta2in$ into account the location and siDe of the site: at all times pro,ide and maintain an ade;uate 3eatherti$ht temporary office 3ith necessary basic facilities such as 3ater: li$ht: and telephone% 4hen practicable or dependin$ upon the nature and comple9ity of the proBect: the O3ner may re;uire the !ontractor to comply 3ith other re;uirements for temporary structures and facilities as pro,ided for in the !ontract% &.%)+ TE8PORARE >O=#I"* OR 4ORCER#? The temporary buildin$s for housin$ men: or the erection of tents or other forms of protection 3ill be
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permitted only at such places as the O3ner shall desi$nate@ pro,ided: ho3e,er: that if no particular area is desi$nated: the !ontractor may use his o3n discretion in determinin$ such areas in consultation 3ith the O3ner% The sanitary condition of the $rounds in or about such structures at the proBect site shall at all times be maintained in a manner satisfactory to the O3ner% "obody shall be allo3ed to sleep or coo2 3ithin the buildin$ line of the proBect under construction% &.%)- #A ETE A"D #A"ITATIO"? The !ontractor shall: from the commencement of the 4or2 and until its completion? (a) furnish and put up all temporary barricades and $uard li$hts necessary for the protection: proper prosecution and completion of the 4or2: (b) maintain $uard li$hts at the top of the false3or2 to3er: barricades: railin$s: etc%@ (c) pro,ide and maintain ample sanitary toilet accommodation and other necessary con,eniences includin$ 3ater connections for the use of personnel and laborers on the 3or2 properly secluded from public obser,ation in such manner and at such points as shall be appro,ed by the O3ner: and their use shall be strictly enforced@ (d) 2eep such places clean and free from flies@ and (e) remo,e all connections and appliances connected there3ith prior to the completion of the 4or2% &.%)( TE8PORARE #I*"#? "o si$ns or ad,ertisements 3ill be allo3ed to be displayed 3ithout the O3ner7s appro,al% The !ontractor may erect one painted si$n: $i,in$ the names and addresses of the O3ner: the !ontractor: and the ,arious sub'contractors% The O3ner shall appro,e the siDe: color: letterin$: and location of such temporary si$ns% &.%). TE8PORARE OR TRIAL =#A*E? Temporary or trial usa$e by the O3ner of any mechanical de,ice: machinery: apparatus: e;uipment: or any 3or2 or materials supplied by the !ontractor before final completion and 3ritten acceptance by the O3ner shall not be construed as e,idence that the O3ner has accepted it% #uch test run shall be made by the O3ner for such reasonable len$th of time as the O3ner shall deem necessary% The O3ner shall not be liable for inBury to or brea2in$ of any part of such 3or2 3hich may be caused by 3ea2ness or inaccuracy of structural parts or by defecti,e material or 3or2manship% The !ontractor may: at his o3n e9pense: ma2e such trial usa$e 3ith prior notice to and for the benefit of the O3ner ) CTIO! *. P&OT CTIO! O% .O&5 A!D P&OP &T3

A&T. "-< P&OT CTIO! O% .O&5 A!D O.! &9) P&OP &T3 &/%)& #A E*=ARD 8EA#=RE#? The !ontractor shall?

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a% ta2e all reasonable measures to protect from dama$e (i) the 4or2s: (ii) the O3ner7s property: and (iii) the e;uipment: materials: appliances and fi9tures supplied or paid for by the O3ner and shall ma2e $ood any dama$e: inBury or loss thereto: e9cept such as may be caused by a$ents or employees of the O3ner: or due to causes considered Act of *od@ b% pro,ide reliable and competent 3atchmen to $uard the site and premises: pro,ide all door3ays 3ith loc2s under his control and loc2 such doors at the close of each day7s 3or2@ pro,ided: ho3e,er: that if the O3ner deems the security ser,ice inade;uate or incompetent: the !ontractor shall increase or chan$e the security personnel@ c% prohibit smo2in$ at the site and si$ns to this effect shall be posted conspicuously@ d% prohibit fires built on the site e9cept by e9press consent of the O3ner@ and e% pro,ide and maintain in $ood 3or2in$ order an ade;uate number of fire'fi$htin$ e;uipment and such e;uipment shall not be used for any other purpose% &/%)+ OLD 8ATERIAL#? All old materials of ,alue as determined throu$h a Boint in,entory by the O3ner and the !ontactor found at the 3or2 site shall be carefully stored at the place desi$nated by the O3ner@ and the !ontractor shall be responsible for their safe2eepin$ until final acceptance of the 4or2% &/%)- TREE# A"D OT>ER PLA"T#? E9istin$ trees: plants: shrubs: etc%: 3hich are to remain at the site shall be bo9ed and other3ise protected from dama$e% "o trees 3ithin the site located outside buildin$ lines shall be cut or remo,ed 3ithout the specific appro,al from the O3ner% a% 4hen specifically included in the !ontractor7s scope of 3or2: all trees and other plants that need to be transplanted else3here shall be done by the !ontractor in accordance 3ith instructions of the O3ner% b% Dama$e to trees: plants: shrubs: streets: side3al2s: etc%: resultin$ from fault or ne$li$ence of the !ontractor in connection 3ith the e9ecution of the 4or2 shall be made $ood andFor replaced or repaired by the !ontractor at his o3n e9pense% &/%)( DRAI"A*E? If it should be necessary in the prosecution of the 4or2 to interrupt or obstruct the natural flo3 of ri,ers or streams: the draina$e of the surface: or the flo3 of artificial drains: the !ontractor shall do so in such a 3ay that no dama$e shall result to either public or pri,ate interests% or his ne$lect to pro,ide other means of draina$e for any e9istin$ natural or artificial draina$e 3hich he may ha,e obstructed or
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interrupted: the !ontractor shall be liable for all dama$es 3hich may result therefrom% A&T. "=< P&OT CTIO! O% AD>AC !T P&OP &T3 A!D UTI(ITI ) 0I)TI!'

&0%)& !O"TRA!TOR7# RE#PO"#IBILITE? The !ontractor shall ade;uately protect adBacent property as pro,ided by La3 and the !ontract% Any nei$hborin$ property or buildin$ 3hich may be BeopardiDed in any manner must be thorou$hly and substantially protected a$ainst dama$e durin$ construction at the !ontractor7s e9pense% &0%)+ The !ontractor shall be liable for and pay for all dama$es to adBacent and e9istin$ utilities occasioned in any manner by his act or ne$lect: or by that of his a$ents: employees: or 3or2men% A&T. "6< P&OT CTIO! O% (I% / .O&5 A!D P&OP &T3 DU&I!' A! M &' !C3 &1%)& A=T>ORIIATIO" TO !O"TRA!TOR? In an emer$ency endan$erin$ life: the 4or2 or the adBoinin$ property: the !ontractor: e,en 3ithout special instruction or authoriDation from the O3ner: shall act: at his discretion: to pre,ent or minimiDe such threatened loss or inBury% Emer$ency 3or2 performed by the !ontractor shall be treated as one performed under a !han$e Order unless the emer$ency 3as caused or brou$ht about by his fault or ne$li$ence% ) CTIO! *I. (A4O&/ .O&5 A!D PA3M !T)

A&T. "7< (A4O& &6%)& !>ARA!TER O 4ORC8E"? The !ontractor shall employ only competent and duly ;ualified professionals: technical personnel: foremen: mechanics and 3or2ers to super,ise or e9ecute the 4or2% =pon 3ritten re;uest of the O3ner: the !ontractor shall remo,e from the site an employee 3ho is careless or incompetent or obstructs the pro$ress of the 3or2 or acts contrary to instructions or conducts himself improperly% A&T. $#< .O&5 +)%)& 8ET>OD# A"D APPLIA"!E#? The !ontractor shall use such methods and appliances for the performance of the 4or2 as 3ill ensure the completion of the 4or2 of the re;uired ;uality 3ithin the !ompletion Time% If: at any time before the commencement or durin$ the pro$ress of the 4or2: such methods or appliances appear to the O3ner to be inefficient or inappropriate for producin$ the ;uality of 3or2 re;uired: or insurin$ the
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re;uired rate of pro$ress: the O3ner may order the !ontractor to increase the rate of their efficiency: or to impro,e their system of operation% The !ontractor must comply 3ith such order% ailure: ho3e,er: of the O3ner to demand such increase of efficiency or impro,ement of the character or methods of 3or2 or of the appliances shall not relie,e the !ontractor from his obli$ation to turn out such ;uality of 3or2 and rate of pro$ress as are called for in the !ontract% +)%)+ LAEI"* O=T T>E 4ORC? All sta2es and benchmar2s placed by the !ontractor in layin$ out the 3or2 and appro,ed by the O3ner shall be carefully $uarded and preser,ed by the !ontractor% =nless such sta2es or mar2s are displaced or rendered useless throu$h the carelessness or ne$lect of the O3ner or of his a$ents or employees: they shall be replaced by the !ontractor at his e9pense% +)%)- DE E!TI5E 4ORC? 4or2 that fails to comply 3ith the !ontract is defecti,e% Defecti,e 3or2 shall be condemned by the O3ner upon disco,ery: and 3hen such 3or2 has been condemned it shall be immediately remo,ed by the !ontractor and replaced in accordance 3ith the Dra3in$s and #pecifications% +)%)( I"#PE!TIO" O 4ORC a% The O3ner shall ha,e access: at all times: to the 4or2% The O3ner shall pro,ide a sufficient number of inspectors 3hile 4or2 is in pro$ress to ensure its timely inspection% b% The !ontractor shall furnish 3ithout additional char$e all reasonable facilities: labor and materials necessary for the con,enient inspection and tests that may be re;uired by the inspectors% c% The O3ner shall pro,ide inspectors authoriDed to 3itness the pourin$ of concrete and the absence of the O3ner7s inspectors at any time durin$ the pro$ress of the 3or2 shall be an implicit appro,al of the ;uality of the cement mi9 and the authority to pour it% d% If the #pecifications: the O3ner7s instructions: the La3s: or any public authority re;uires any 3or2 to be specifically tested or appro,ed: the !ontractor shall $i,e timely notice to the O3ner and other parties re;uired to ma2e or be present at the inspection of the date and time of such inspection% Inspection by the O3ner shall be made: 3here practicable: at the source of supply% e% If any 3or2 should be co,ered up 3ithout timely notice to the O3ner: or before the O3ner can ma2e a timely inspection thereof: it must: if re;uired by the O3ner: be unco,ered for e9amination at the !ontractor7s e9pense% >o3e,er: not3ithstandin$ the failure of the O3ner to ma2e a timely inspection of the 3or2 before it is co,ered: its re'e9amination may be ordered by the O3ner and if so ordered: the 3or2 must be unco,ered
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by the !ontractor at the O3ner7s e9pense but if such 3or2 be found not in accordance 3ith the !ontract: the !ontractor shall shoulder the cost of unco,erin$ and re'doin$ the 3or2% f% If there are indications that the 3or2 done is not in accordance 3ith the Dra3in$s and #pecifications: the O3ner may at any time before final acceptance of the 4or2 ma2e an e9amination of the portion already completed by remo,in$ or tearin$ out the same% The !ontractor shall: on re;uest: furnish all necessary facilities: labor: and materials% If such 3or2 is found to be defecti,e in any material respect due to fault of the !ontractor or his sub'contractors: the !ontractor shall defray all the e9penses of such e9amination and of satisfactory reconstruction% If: ho3e,er: such 3or2 is found to meet the re;uirements of the !ontract: the actual cost of labor and materials necessarily in,ol,ed in the e9amination and replacement plus &. percent (&.J): shall be allo3ed the !ontractor and he shall: in addition: if completion of the 3or2 has been delayed thereby: be $ranted a suitable e9tension of time on account of the additional 3or2 in,ol,ed% $% All inspection and tests shall be performed as not to delay the 3or2 unnecessarily% +)%). 4ORC D=RI"* A" E8ER*E"!E? The !ontractor shall perform any 3or2 and shall furnish and install all materials and e;uipment necessary durin$ an emer$ency endan$erin$ life or property% In such cases: Article &1%)& shall apply% +)%)/ I"!REA#ED OR DE!REA#ED <=A"TITIE# O 4ORC? AdBustments in 3or2in$ dra3in$s to suit field conditions 3hich cannot be foreseen at the time of callin$ for bids: may be necessary durin$ construction% It is the essence of the !ontract to reco$niDe such chan$es in Dra3in$s as normal% The resultin$ chan$e in ;uantities or the increase in the scope of 3or2 of the !ontractor shall be co,ered by a !han$e Order% 4or2 done by the !ontractor 3ithout timely notice to the O3ner that an adBustment is re;uired of !ontract Price and !ompletion Time shall be at his o3n ris2 and e9pense% +)%)0 !>A"*E# I" T>E 4ORC? A% !>A"*E# ORDERED BE O4"ER? The O3ner may at any time order e9tra 3or2 or ma2e chan$es by alterin$: addin$ to or deductin$ from his scope of 3or2 and 3ithin the $eneral scope thereof@ pro,ided ho3e,er that the resultin$ o,erruns or under'runs from the ;uantities or costs in the Bid do not e9ceed t3enty fi,e percent (+.J)% #uch chan$es shall be ordered by the O3ner in 3ritin$% The issuance by the O3ner of the re,ised Dra3in$s or #upplemental #pecifications chan$in$ the nature or 3or2 to be performed or of the
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materials: e;uipment: appliances or fi9tures to be pro,ided shall be treated as sufficient 3ritten instruction of the O3ner to the !ontractor to e9ecute the chan$e% B% !>A"*E O #=B'#=R A!E !O"DITIO"#? If: durin$ the pro$ress of the 3or2: sub'surface conditions at the site materially different from those sho3n on the Dra3in$s or indicated in the #pecifications or in any !ontract Document: are disco,ered or encountered: the attention of the O3ner shall be called to such conditions before they are disturbed% The O3ner shall thereupon in,esti$ate the conditions: and if he finds that they materially differ from those sho3n on the Dra3in$s or indicated in the #pecifications or in the report of the O3ner7s $eodetic sur,ey and sub' surface e9ploration: he shall ma2e such chan$es in the Dra3in$s and #pecifications as he may find necessary% If as a result of sub'surface conditions: additional or a different type of 3or2 be re;uired: althou$h no chan$e in the Dra3in$s or #pecifications may be re;uired: a !han$e Order shall be necessary and issued to the !ontractor% !% ADK=#T8E"T O !O"TRA!T? The 4or2 shall be e9ecuted under the conditions of the !ontract% If chan$es under para$raphs A and B shall cause an increase or decrease in the amount due under the !ontract: or in the time re;uired for or manner of its performance: an e;uitable adBustment shall be made and the !ontract modified accordin$ly% In the e,ent that the 4or2 is increased by such chan$es: the !ontractor shall furnish proportionate additional performance bond% D% 5AL=E O EHTRA 4ORC? The ,alue of any e9tra 3or2 or chan$e shall be determined by the O3ner in any one or more of the follo3in$ 3ays? (a) By a lump sum acceptable to the !ontractor% (b) By unit prices either stipulated in the !ontract or subse;uently a$reed upon: pro,ided the a$$re$ate ,alue of chan$es does not e9ceed +.J of the ori$inal !ontract Price of the particular pay item% (c) By actual direct cost plus ,alue added ta9: if any: plus fifteen percent (&.J) for !ontractor7s profit and o,erhead% !han$es re;uired by the O3ner 3hich in the a$$re$ate e9ceed +.J for o,er'runs shall be co,ered by a supplemental contract% The !ontractor shall not be obli$ed to e9ecute such chan$es in accordance 3ith the unit rate specified in his Bid: a supplementary contract bein$ treated as one separate from and independent of the !ontract% 4here the a$$re$ate ,alue of all chan$es per pay item e9ceed +.J and the !ontractor: 3ithout demandin$ the e9ecution of a supplemental contract e9ecutes the additional 3or2 re;uired 3ith obBection or protest:
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the ,alue of the chan$es shall be determined in accordance 3ith subpara$raph (b) abo,e% =nder case (c) abo,e: the !ontractor shall 2eep and present: in such form as the O3ner may direct: a correct account of the direct cost to$ether 3ith ,ouchers and other supportin$ documents% E% A4ARD O EHTRA 4ORC TO OT>ER !O"TRA!TOR#? In case any e9tra 3or2 shall be re;uired in the proper performance of the 4or2: and the !ontractor and the O3ner shall fail to arri,e at any a$reement as to the adBustment of !ontract Price andFor !ompletion Time: the O3ner may a3ard such e9tra 3or2 to another contractor% +)%)1 !LAI8# OR EHTRA !O#T? If the !ontractor claims that any instructions by the O3ner or the Dra3in$s or #pecifications issued after submission of the Bid: in,ol,e a chan$e: he shall $i,e the O3ner 3ritten notice thereof 3ithin fifteen (&.) days after the receipt of such instruction: Dra3in$s or #pecifications: as much as possible: before proceedin$ to e9ecute the 3or2: e9cept in emer$ency endan$erin$ life or property pro,ided for in Article &1%)&% In li2e manner: if the !ontractor incurs a delay in the mobiliDation andFor in the pro$ress of his 3or2 for reasons attributable to the O3ner: e%$%: O3ner'supplied materials not arri,in$ on time: mo,ements or 3or2 e9ecuted by the O3ner 3hich interfere 3ith the pro$ress of the !ontractor7s 3or2: delayed decisions by the O3ner and other matters related thereto: he shall $i,e the O3ner 3ritten notice thereof 3ithin fifteen (&.) days after reco$nition of such delay % The amount due to the !ontractor under this article shall be paid by the O3ner in the same manner as any other sum to 3hich the !ontractor may be entitled under the !ontract: particularly under Articles +)%)/: +)%)0: ++%). and ++%&)% Delay in said payment shall entitle the !ontractor to an e9tension of time and to payment of interest in accordance 3ith Article ++%).% Refusal or unreasonable delay by the O3ner to pay the amount due shall entitle the !ontractor to suspend or terminate the !ontract 3hene,er permitted under Article +0% +)%)6 !LEA"I"* =P AT !O8PLETIO" O 4ORC? The !ontractor shall at all times 2eep the premises free from accumulations of 3aste materials or rubbish caused by his employees% Rubbish shall not be thro3n from 3indo3s or other parts of the structure 3ithout the use of rubbish chutes% At the completion of the 4or2: he shall remo,e all temporary 3or2: his rubbish therefrom and all his tools: scaffoldin$ and surplus materials and turn o,er the 3or2 for occupancy% All dirt: stains: and the li2e on all finishin$ of floors: 3alls and ceilin$: decorati,e 3or2: finishin$ hard3are and fi9tures shall be remo,ed%
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All 3ood3or2: finishin$ hard3are and all metal 3or2s shall be cleaned and polished% All $laDin$: marble and tile 3or2 shall be 3ashed and cleaned% The !ontractor shall also clean the site as sho3n in the Dra3in$s and all areas 3hich the !ontractor used in the e9ecution of the proBect% If the !ontractor fails to clean up after due notice at the completion of the 4or2: the O3ner may do so and the cost thereof char$ed to the !ontractor% If a dispute arises bet3een the !ontractor and separate contractors as to their responsibility for cleanin$ up: the O3ner may clean up the site and char$e the cost thereof to the contractors responsible therefor as the O3ner shall determine to be Bust% +)%&) =#E O !O8PLETED PORTIO"# O 4ORC? The O3ner may ta2e possession of and use any completed or partially completed portion of the 4or2: althou$h the time for completin$ it or portions thereof may not ha,e e9pired@ but such ta2in$ of possession and use shall not be deemed an acceptance of any 3or2 not completed in accordance 3ith the !ontract% "either shall it be deemed a 3ai,er by the O3ner of the ri$ht to claim dama$es due to delay in the completion of the 4or2% If such prior use increases the cost or delays the completion of uncompleted 3or2 or causes refinishin$ of completed 3or2: the !ontractor shall be entitled to e9tra compensation or e9tension of time or both% +)%&& #=B#TA"TIAL !O8PLETIO" A"D IT# E E!T?

A% LaM There is substantial completion 3hen the !ontractor completes 6.J of the 4or2: pro,ided that the remainin$ 3or2 and the performance of the 3or2 necessary to complete the 4or2 shall not pre,ent the normal use of the completed portion% LbM The appro,al by the O3ner of the !ontractor7s billin$ for completin$ at least 6.J of the 4or2 shall be deemed the O3ner7s ac2no3led$ment that the !ontractor has substantially completed the 4or2 unless the O3ner can establish that the unfinished 3or2 pre,ents the normal use of the completed portion% LcM The O3ner may also issue to the !ontractor a 3ritten ac2no3led$ement of substantial completion 3hich may be in the form of a !ertificate of #ubstantial !ompletion or e;ui,alent document but the date of this document shall not be controllin$ if substantial completion is sho3n to ha,e been made at an earlier date: unless the !ontractor accepts the certificate 3ithout ta2in$ e9ceptions thereto in 3ritin$ 3ithin &. days from receipt%

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B% LaM "ot3ithstandin$ para$raph A abo,e: the e;uipment: fi9tures and utilities (collecti,ely: the G acilityG) furnished andFor installed by the !ontractor 3hich the !ontract re;uires to be test'run prior to acceptance shall be test'run successfully before the 4or2 can be accepted as substantially completed% LbM The O3ner shall: 3ithout delay: cause the test'run of the acility% #hould the !ontractor be unable to completely install or furnish and test' run the acility throu$h no fault of his: the !ontractor shall automatically be entitled to an e9tension of !ompletion Time e;ual to the period of delay% !% LaM The O3ner shall issue to the !ontractor one or more lists of defects found or disco,ered on the completed 3or2: other3ise 2no3n as a punch list or lists: 3hich the !ontractor must recei,e from the O3ner not later than thirty (-)) days from date of substantial completion% LbM The O3ner may add to the punch list items but only as to correcti,e 3or2 on the items in the ori$inal punchlist or lists not later than si9ty (/)) days from date of substantial completion% D% LaM "o li;uidated dama$es for delay beyond the !ompletion Time shall accrue after the date of substantial completion of the 4or2% LbM If the tar$eted date of completion has arri,ed and the !ontractor cannot achie,e 6.J completion of the 4or2 due to the uncompleted acility caused by the O3ner7s fault: ne$li$ence or delay of the O3ner: the !ontractor shall be deemed to ha,e achie,ed substantial completion pro,ided (i) the contractor has completed at least 6.J of the 3or2 minus the uncompleted acility: and (ii) the !ontractor has completed the 3or2 re;uired on the acility but for that 3hich is directly affected by the O3ner7s fault: ne$li$ence or delay% The O3ner shall release to the !ontractor the !ontract Price less the cost of the uncompleted portion of the 3or2 and the amounts mentioned in Article ++%)-% E% The purpose of this Article is to ensure that the !ontractor is paid for 4or2 completed and for the O3ner to retain such portion of the !ontract Price 3hich: to$ether 3ith the Performance Bond: is sufficient to complete the 4or2 3ithout additional cost to the O3ner% +)%&+ PERIOD O 8ACI"* *OOD O C"O4" DE E!T# OR A=LT#? The e9pression GPeriod of 8a2in$ *ood of Cno3n Defects or aultsG shall mean a period of not more than thirty (-)) calendar days: calculated from the date of receipt by the !ontractor of the last item in the punch list submitted durin$ the period pro,ided in Article +)%&& ! (b): durin$ 3hich the !ontractor shall complete the correcti,e 3or2s%

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+)%&- 8ACI"* *OOD O C"O4" DE E!T# OR A=LT#? The !ontractor shall e9ecute at his o3n e9pense all 3or2s necessary for ma2in$ $ood of 2no3n defects: imperfections or faults (3ear and tear e9cepted) 3ithin the period stated in Article +)%&+% If: in the opinion of the O3ner: the defect or fault in the punch list is due to a cause attributable to the O3ner: the ,alue of such 3or2 shall be ascertained and paid for as if it 3ere additional 3or2% If the !ontractor shall fail to do any such correcti,e 3or2: the O3ner shall: upon 3ritten notice to the !ontractor: be entitled to carry out such 3or2 by his o3n 3or2men or by other contractors: and char$e the cost thereof to the !ontractor% The O3ner may 3ithhold an amount not e9ceedin$ the !ontract cost of e9ecutin$ such 3or2 from the payment to the !ontractor% +)%&( #PE!IAL TE#T A"D I"#PE!TIO"? #pecial test: inspection or appro,al: not other3ise re;uired in the !ontract 3hich the O3ner instructs the !ontractor to perform after the date of substantial completion shall be treated as a separate 3or2 3hich shall be co,ered by a supplemental a$reement% +)%&. A!!EPTA"!E O "O"'!O" OR8I"* 4ORC? If the O3ner accepts defecti,e or non'conformin$ 3or2: instead of re;uirin$ its remo,al and correction: the O3ner shall issue to the !ontractor a chan$e order to reflect a reduction in the !ontract Price 3here appropriate by an amount not e9ceedin$ the ,alue of the unfinished 3or2 as determined in the Brea2do3n of 4or2 and !orrespondin$ 5alue% #uch adBustment shall be effected 3hether or not final payment has been made% +)%&/ ADK=#T8E"T O PRI!E#? A% There shall be added to or deducted from the !ontract Price such sums in respect of the rise or fall of the cost of labor and materials and such other matters affectin$ the e9ecution of the 4or2 caused by any of the follo3in$? an e,ent of force majeure includin$ abnormal chan$es in costs of materials: increases in labor costs mandated by la3 or 3a$e order: increase in the cost of oil: and the deterioration of peace and order% B% AdBustment of prices due to escalation or reduction of costs of e9ecutin$ the 3or2 shall be made usin$ a parametric formula to be a$reed upon by the parties% In default of such a$reement: the parametric formula used to implement Presidential Decree "o% &.6( shall be applied% #uch adBustment shall be made to pro,ide e;uitable relief to both the O3ner and the !ontractor: allo3in$ neither to $ain nor to lose by such fluctuation% AdBustment of the !ontract Price due to escalation shall be for the sole purpose of compensatin$ the !ontractor for the increase in the direct cost of his labor and materials used for the 3or2: plus ,alue'added ta9%
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!% The adBustment of prices shall be determined on the basis of the ori$inal !ontract unit prices of labor and materials and such unit prices in effect durin$ the rele,ant period of 3or2 accomplishment% D% The !ontract Price shall be adBusted: not oftener than once a month: due to increase or decrease of the direct cost of labor and materials of more than fi,e percent (.J) of the ori$inal !ontract unit prices of the rele,ant items of 3or2% The adBustment shall include the first fi,e percent (.J)% E% In case the proBect is behind schedule by more than fifteen percent (&.J) from the appro,ed construction schedule: not due to e9cusable delays: the payment for 3or2 accomplished shall be made on the basis of the !ontract Price as adBusted in accordance 3ith the escalation rate applicable durin$ the period in 3hich it should ha,e been accomplished% % This Article +)%&/ shall not apply to an increase or decrease in the cost of materials and ser,ices pro,ided or supplied by the O3ner% +)%&0 PAE8E"T I" LE*AL TE"DER? Payments in money under the !ontract shall be made in the currency stipulated@ and if it is not le$ally possible to deli,er such currency: then in the currency 3hich is le$al tender in the Philippines% A&T. $"< TIM O% COMP( TIO! O% .O&5

+&%)& "OTI!E TO PRO!EED: 4>E" RE<=IRED? A "otice to Proceed shall be issued by the O3ner to the !ontractor only 3hen the !ontract so pro,ides% Premature commencement of construction shall be at the !ontractor7s ris2 unless it is due to their mutual desire to ha,e the !ontractor commence the 3or2 early: and the O3ner $i,es the !ontractor e9press or implied authority to do so% +&%)+ !O8PLETIO" TI8E? The !ontractor shall complete the 4or2 in accordance 3ith the !ontract 3ithin the period fi9ed therein and as adBusted due to chan$es both directed and constructi,e% If the !ontractor is directed to commence the 4or2 after receipt of the "otice to Proceed to be issued by the O3ner: such shall be$in on the se,enth (0th) day from receipt of the "otice to Proceed: unless the "otice to Proceed pro,ides for a later date for commencement of the 4or2% +&%)- #!>ED=LE O !O"#TR=!TIO" 4ORC A% The !ontractor: immediately after the !ontract has ta2en effect: shall submit for appro,al a construction schedule in a form acceptable to the O3ner indicatin$ the appro9imate date each pay item 3ill be started and completed: the e;uipment to be used and number of men to be employed to complete it in accordance 3ith the schedule% The pro$ress of the 3or2
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shall be at a rate sufficient to complete the 4or2 in an acceptable manner 3ithin the !ompletion Time% B% In case of slippa$e: the O3ner may call for meetin$s 3ith the !ontractor and other contractors in,ol,ed to determine the possible causeFs contributin$ to the slo3 pro$ress of the construction 3or2: and if such slippa$e is due to the fault or ne$li$ence of the !ontractor: the O3ner may re;uire the !ontractor to submit a catch'up schedule 3hich shall be subBect to appro,al by the O3ner% !% The O3ner may order the acceleration of 3or2 to meet a desired completion date% Acceleration of 3or2 for the benefit or con,enience of the O3ner or caused by the fault of or delay by the O3ner: shall be treated as e9tra 3or2 for 3hich a !han$e Order shall be issued and the !ontractor shall be paid for the cost of such acceleration% >o3e,er: 3here the reason for acceleration is due to the fault of the !ontractor: such additional cost for acceleration shall be borne by the !ontractor alone% +&%)( EHTE"#IO" O TI8E? A% The !ontractor shall be entitled to an e;uitable adBustment of !ompletion Time 3here the !ontractor is obstructed or delayed in the prosecution or completion of the 4or2 by ' LaM the act: ne$lect: delay or fault of the O3ner: or any other contractor employed by the O3ner on the 3or2@ LbM third'party stri2es or loc2outs or stri2es by employees other than the !ontractor7s employees or a loc2out by an employer other than the !ontractor@ LcM an act of *od or force majeure@ LdM unsuitable 3eather conditions 3hich render the 3or2 impracticable or impossible or 3hich slo3 do3n the prosecution of the 4or2@ LeM peace and order conditions@ LfM chan$es ordered or authoriDed by the O3ner or authoriDed under the !ontract@ and L$M delay authoriDed by the O3ner pendin$ arbitration of an unresol,ed dispute bet3een the O3ner and the !ontractor% B% or delay caused by para$raphs A LbM: LcM: LdM: LeM and LfM of this Article +&%)(: the !ontractor shall 3ithin fifteen (&.) days from the occurrence of the e,ent 3hich caused the delay: notify the O3ner and the O3ner shall: not later than fifteen (&.) days from receipt of such notice: $i,e the !ontractor an e;uitable adBustment of the !ompletion Time% The failure of the O3ner to reply to the !ontractor or to $i,e an e;uitable adBustment of
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the !ompletion Time shall be deemed an appro,al by the O3ner of the adBustment re;uested by the !ontractor% !% LaM or delay caused by para$raphs A LaM and L$M: and in default of an a$reement bet3een the O3ner and the !ontractor: the !ontractor shall be entitled to an adBustment of !ompletion Time e;ual to the delay caused by such factorFs: e9cept that the !ontractor shall not be entitled to e9tension of !ompletion Time due to the alle$ed failure of the O3ner to furnish materials or information or pro,ide dra3in$s unless in the construction schedule appro,ed by the O3ner: they are necessary to prosecute the 4or2 in the order re;uired and the failure of the O3ner to pro,ide them caused a delay in the 3or2 of the !ontractor% LbM The O3ner: ta2in$ into account the construction schedule appro,ed by him and the pro$ress of the 3or2 of the !ontractor: is conclusi,ely presumed to 2no3 3hen materials: e;uipment or supplies or dra3in$s to be pro,ided by the O3ner shall be re;uired by the !ontractor: and the failure of the !ontractor to $i,e prior or timely notice to the O3ner of the date 3hen such material: e;uipment or supplies or dra3in$s shall be re;uired shall not be a $round for denyin$ the !ontractor an adBustment of !ompletion Time% LcM The failure of the O3ner to reply to the !ontractor7s re;uest for adBustment of !ompletion Time 3ithin fifteen (&.) days from the date of receipt of the re;uest shall be deemed an appro,al by the O3ner of the adBustment re;uested by the !ontractor% #uch re;uest shall be deemed a formality 3hich does not affect the ri$ht of the !ontractor to an e;uitable adBustment of !ompletion Time as pro,ided in this para$raph !% D% Delay in the payment of any pro$ress billin$ as re;uired in Article ++%). shall automatically e9tend the !ompletion Time by a period e;ual to the delay% The !ontractor shall not be re;uired to $i,e notice to the O3ner nor be re;uired to establish that such delay actually delayed the prosecution of the 4or2 or delayed the !ontractor to a period e;ual to the delay in the payment of the billin$% +&%). DELAE I" !O8PLETIO" O T>E 4ORC? LaM It is understood that time is an essential feature of the !ontract% LbM =pon failure of the !ontractor to complete the 4or2 3ithin the !ompletion Time: the !ontractor shall pay the O3ner li;uidated dama$es in the amount stipulated in the !ontract as indemnity and not by 3ay of penalty% The O3ner may deduct from any sum due the !ontractor the amount 3hich has accrued as li;uidated dama$es% Li;uidated dama$es shall accrue from the first day of delay in completin$ the 3or2 3ithin the !ompletion Time until the date of substantial completion as determined under Article +)%&&%
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LcM The amount of dama$es for correcti,e 3or2s uncompleted 3ithin the Period of 8a2in$ *ood of Cno3n Defects shall be based on the ,alue of such uncompleted correcti,e 3or2 in the Brea2do3n of 4or2 and !orrespondin$ 5alue for appro,ed billin$s% LdM =pon failure of the O3ner to pay the !ontractor for appro,ed billin$s: the !ontractor shall ha,e the ri$ht to suspend performance of the 4or2 under the conditions pro,ided in Article +0 (b): (c) and (d) and be entitled to the payment of interest under Article ++%).% A&T. $$< PA3M !T) ++%)& BREACDO4" O !O"TRA!T A8O="T? E9cept in cases 3here unit prices form the basis for payment under the !ontract: the !ontractor shall: 3ithin fifteen (&.) days from the receipt of "otice to Proceed: or from commencement of the 4or2 submit a Brea2do3n of 4or2 and !orrespondin$ 5alue of the !ontract Amount sho3in$ the ,alue assi$ned to each part of the 3or2% The Brea2do3n of 4or2 and !orrespondin$ 5alue as appro,ed by the O3ner: shall be used as the basis for all Re;uests for Payment: and for determinin$ the ,alue of uncompleted 3or2 or correcti,e 3or2s% ++%)+ RE<=E#T# OR PAE8E"T? The !ontractor may submit periodically but not more than once each month a Re;uest for Payment for 3or2 done% The !ontractor shall furnish the O3ner all reasonable facilities re;uired for obtainin$ the necessary information relati,e to the pro$ress and e9ecution of the 4or2% Each Re;uest for Payment shall be computed from the 3or2 completed on all items listed in the Brea2do3n of 4or2 and !orrespondin$ 5alue: less a retention of &)J of the pro$ress payment to the !ontractor% 4hen .)J of the !ontract has been accomplished: no further retention shall be made on pro$ress billin$s for the balance of the 4or2% In $eneral: and unless the !ontract pro,ides other3ise: no payment shall be made for materials or items not incorporated in the 3or2: e9cept 3here such immediate ac;uisition is made necessary due to shorta$es or import or transportation difficulties: in 3hich case: payment shall be made conditioned upon the submission by the !ontractor of bills of sale or upon compliance 3ith such other procedures as 3ill establish the O3ner7s title to such material or item or other3ise ade;uately protect the O3ner7s interest% ++%)- A=T>ORIIED DED=!TIO"# RO8 5AL=E O !O8PLETED 4ORC% The O3ner may deduct from any payment due the !ontractor for ' a% The estimated cost of defecti,e 3or2 not remedied@

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b% The amount of substantiated and unpaid claims by subcontractors employed in and suppliers of materials and labor for the 4or2 unBustifiably 3ithheld by the !ontractor@ and c% The amount 3hich has accrued as li;uidated dama$es% ++%)( !O"DITIO"# RELATI5E TO PAE8E"T#? The O3ner shall estimate the ,alue of 3or2 accomplished by the !ontractor usin$ as basis the schedule stipulated in the Brea2do3n of 4or2 and !orrespondin$ 5alue% #uch estimate of the O3ner of the amount of 3or2 performed shall be ta2en as the basis for the compensation to be recei,ed by the !ontractor% 4hile such preliminary estimates of amount and ;uantity shall not be re;uired to be made by strict measurement or 3ith e9actness: they must be made as close as possible to the actual percenta$e of 3or2 accomplishment% ++%). O4"ER7# A!TIO" O" RE<=E#T# OR PAE8E"T? 4ithin fifteen (&.) days after a receipt of re;uest for payment from the !ontractor: the O3ner shall pay the amount as certified% In case the O3ner fails to pay on time the amount due: the O3ner shall pay: in addition to the amount due: interest therein computed from the due date in accordance 3ith the re$ular loan rate of the Philippine "ational Ban2 pre,ailin$ on due date% ++%)/ PAE8E"T O ="PAID LABOR: #=B'!O"TRA!TOR# A"D #=PPLIER#? The !ontractor shall pay punctually all 3or2men employed by him on the proBect at not less than such rates as are pro,ided by e9istin$ la3s% >e shall also pay promptly all materials purchased by him: e;uipment used by him on the proBect and all ta9es due from him% >e shall remit as re;uired by la3 all amounts le$ally re;uired to be 3ithheld from the salaries or 3a$es of his employees or 3or2men% ++%)0 PAE8E"T# O5ER 6) PER!E"T? "o payment shall be made in e9cess of ninety percent (6)J) of the !ontract Price: unless a statement s3orn to before any officer duly authoriDed to administer oaths is submitted by the !ontractor to the effect that all bills for labor: other than current 3a$es: and all bills for materials ha,e been duly paid by the !ontractor and his #ub'contractor: if any: e9ceptin$ only such bills as may be enumerated in such s3orn statement% The !ontractor shall render the O3ner free and harmless from any claims and payment of such bills: and shall indemnify the O3ner the cost of defendin$ himself a$ainst such claims% ++%)1 OT>ER RE<=IRE8E"T# BE ORE I"AL PAE8E"T? The !ontractor shall submit (aside from those 3hich may be pro,ided in the !ontract) the follo3in$: as applicable: before final payment is made?

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a% !ertificate of inal Buildin$ Occupancy unless such certificate cannot be obtained throu$h no fault of the !ontractor% b% !ertificate of inal Inspection of electrical: telephone: sanitary: mechanical: 3ater: $as: safety and other utilities unless such certificate cannot be obtained throu$h no fault of the !ontractor% c% Ori$inal and three (-) sets of prints of GAs'Built Dra3in$sG of Electrical: #anitary: *as: Telephone and 8echanical 3or2s: if such 3or2s are 3ithin the scope of the !ontract% GAs'Built Dra3in$sG are the 3or2in$ dra3in$s sho3in$ the system and actual locations of outlets: fi9tures: ser,ices and e;uipment that 3ere installed% d% Three (-) copies of Directory of Panel Boards and list of circuits% e% Three (-) copies of Instructions and 8anual for operatin$ and maintainin$ of fi9tures and e;uipment% f% Three (-) copies of Ceyin$ #chedule% $% A release of liens arisin$ under the !ontract as pro,ided in Article -(%)&: and the s3orn statements re;uired in Article ++%)6 (A) and Article ++%)0% ++%)6 A!!EPTA"!E A"D I"AL PAE8E"T? 4hene,er the !ontractor notifies the O3ner that the 4or2 under the !ontract has been completely performed by the !ontractor: the O3ner shall proceed to ,erify the 3or2: shall ma2e the final estimates: certify to the completion of the 3or2: and accept the same% A% The O3ner shall then: e9cept for causes herein specified: pay to the !ontractor 3ithin the period stated in Article ++%). abo,e: the amount: 3hich shall be found due: e9ceptin$ therefrom such sum or sums as may be la3fully retained under any of the pro,isions of the !ontract@ pro,ided that final payment on the !ontract shall not be made until the !ontractor has submitted a statement s3orn to before an officer duly authoriDed to administer oath: sho3in$ that all ta9es due from him in connection 3ith this !ontract ha,e been duly paid% B% In case the O3ner has reasonable $rounds of belief that the !ontractor has not remitted to the appropriate $o,ernment a$ency the employer7s and employee7s contributions to the #ocial #ecurity #ystem or to 8edicare: or the 3ithholdin$ ta9 on the employees7 3a$es: the O3ner may re;uire e,idence of remittance of such contributions or 3ithholdin$ ta9 in addition to the s3orn statement mentioned abo,e: and 3ithholdin$ release of the amount sufficient to co,er such payments until the e,idence re;uired by the O3ner is pro,ided by the !ontractor%

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!% The acceptance by the !ontractor of final payment shall constitute a 3ai,er of all his claims a$ainst the O3ner: e9cept the follo3in$? (a) a claim co,ered by a prior notice to the O3ner reser,ed by the !ontractor to be filed in accordance 3ith the !ontract (b) a claim pendin$ before and unresol,ed by the O3ner at the time the re;uest for final payment is made@ (c) a dispute referred to arbitration in accordance 3ith Article -(%).@ and (d) a claim 3hich the O3ner ac2no3led$es 3ith the payment not to be co,ered by it% ++%&) !ORRE!TIO"# O 4ORC BE ORE OR A TER I"AL PAE8E"T? A% Acceptance by the O3ner of the 4or2 of the !ontractor shall relie,e the !ontractor of liability for any defect in the 4or2 unless? LaM The defect is hidden and the O3ner could not ha,e disco,ered the defect e,en 3ith the e9ercise of reasonable dili$ence% LbM The O3ner accepted the 4or2 3ith e9press reser,ations seasonably made as to the specific portion of the 4or2 3hich 3as found defecti,e and 3hich re;uires replacement or correction% A reser,ation 3hich fails to specify the portion 3hich is alle$ed to be defecti,e and state in as much detail as possible the nature and e9tent of the defect shall be considered a $eneral reser,ation and shall be ineffecti,e% B% Para$raph A shall apply not3ithstandin$ the issuance of the final certificate of completion or of full payment% !% Poor or inferior 3or2 or 3or2 3hich does not comply 3ith the Dra3in$s and #pecifications 3hich is apparent upon inspection by the O3ner or by the technical representati,es and inspectors employed by the O3ner shall forth3ith be condemned and the !ontractor notified thereof to $i,e the !ontractor an opportunity 3ithout loss of time and 3ithout incurrin$ unnecessary cost: to correct: remo,e and replace the defecti,e 3or2% 4or2 not so condemned 3ithin one year from final payment cannot later be reBected by the O3ner% If the O3ner instructs the !ontractor to remo,e or replace it thereafter: the instruction shall be treated as a chan$e order% D% The !ontractor shall be liable to the O3ner for any hidden defect disco,ered and notified to the !ontractor 3hich the !ontractor recei,es from the O3ner 3ithin the 3arranty period as pro,ided in the !ontract: or in default of any pro,ision fi9in$ the 3arranty period: 3ithin one year from the postin$ of the *uarantee Bond% E% "othin$ herein shall be deemed to limit the liability of the !ontractor to third persons due to any loss or dama$e resultin$ from the collapse of the 4or2 due to defects in the construction or the use of materials of inferior ;uality or due to any ,iolation of the terms of the !ontract in accordance 3ith Article &0+- of the !i,il !ode of the Philippines%
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++%&& RELEA#E O RETE"TIO"? #ubBect to Article -(%)& herein: the amount retained by the O3ner under the pro,ision of the !ontract shall be released not later than the e9piration of the Period of 8a2in$ *ood of Cno3n Defects as pro,ided in Article +)%&+ upon the postin$ of the !ontractor7s *uarantee Bond% ) CTIO! *II. CO!T&ACTO& )U4CO!T&ACTO&) & (ATIO!) A&T. $1< ) PA&AT +) PA&AT CO!T&ACTO&)+

CO!T&ACT) .IT; OT; & CO!T&ACTO&)

+-%)& The O3ner may perform 3or2 outside of the !ontractor7s scope of 3or2 or a3ard separate contracts to other contractors% If the !ontractor claims that delay: dama$e or additional cost is in,ol,ed as a result: the !ontractor shall ma2e such claim as pro,ided in the !ontract% The O3ner shall pro,ide for the coordination of the 3or2 performed by the O3ner andFor each separate contractor 3ith the 4or2 of the !ontractor%

A&T. $,< CO!T&ACTO&+) PA&AT

CO!T&ACTO&) & (ATIO!)

+(%)& #TORA*E O 8ATERIAL# A"D 4ORC !OORDI"ATIO"? The !ontractor shall: to the e9tent possible: afford other contractors reasonable opportunity for the introduction and stora$e of their materials and the e9ecution of their 3or2: and shall properly connect and cooperate in the O3ner7s effort to coordinate his 3or2 3ith that of other contractors so as to minimiDe interference or obstruction in the pro$ress of the 3or2 performed by each of them% +(%)+ !=TTI"*: PAT!>I"* A"D DI**I"*? The !ontractor shall do all cuttin$: fittin$ or patchin$ of his 3or2 that may be re;uired to ma2e its se,eral parts come to$ether properly and fit it to recei,e or be recei,ed by 3or2 of other contractors sho3n upon: or reasonably implied by: the Dra3in$s and #pecifications for the completed structure% Any cost caused by defecti,e or ill'timed 3or2 shall be borne by the party responsible therefor% The !ontractor shall not endan$er any 3or2 by cuttin$: di$$in$ or other3ise and shall not cut or alter the 3or2 of any other contractor sa,e 3ith the consent of the O3ner% +(%)- DE E!TI5E 4ORC BE #EPARATE !O"TRA!TOR#? If any part of the !ontractor7s 3or2 depends for proper e9ecution or results upon the 3or2 of any other contractor: the !ontractor shall inspect and promptly report it to the O3ner% >is failure to inspect and report it shall constitute an acceptance of the other contractor7s 3or2 as fit and proper for the
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reception of his 3or2: e9cept as to defects 3hich may de,elop in the other contractor7s 3or2 after the e9ecution of the !ontractor7s 3or2% To insure the proper e9ecution of his subse;uent 3or2 the !ontractor shall ,erify 3or2 already in place and shall at once report to the O3ner any discrepancy noticed bet3een the e9ecuted 3or2 and the dra3in$s% +(%)( DA8A*E !A=#ED BE !O"TRA!TOR TO #EPARATE !O"TRA!TOR#? #hould the !ontractor cause dama$e to the 3or2 of any separate contractor: the !ontractor a$rees to relie,e the O3ner of any liability 3hich may arise therefrom% A&T. $8< )U4+CO!T&ACT) +.%)& *E"ERAL? It is understood and a$reed that no portion of the 4or2 shall be sublet or sub'contracted 3ithout the O3ner7s consent% >o3e,er: any part thereof or any specialty 3or2 therein: may be sublet or sub' contracted: subBect to the pro,isions of Articles +.%)+ and -(%)-% The consent of the O3ner to the !ontractor7s en$a$ement of a subcontractor: by itself: shall not create any contractual relation bet3een the sub'contractor and the O3ner% +.%)+ !O"TRA!TOR7# RE#PO"#IBILITE? The !ontractor a$rees that he is as fully responsible to the O3ner for the acts and omissions of his sub' contractors and the persons either directly or indirectly employed by them: as he is for the acts and omissions of persons directly employed by him%

) CTIO! *III. CO!T&ACT A&T. $=< T &MI!AT

)U)P !)IO! O% .O&5 A!D T &MI!ATIO! O% &I';T TO )U)P !D .O&5 O&

CO!T&ACTO&9) CO!T&ACT<

The !ontractor may suspend 3or2 or terminate the !ontract upon fifteen (&.) days7 3ritten notice to the O3ner for any of the follo3in$ reasons? a% If an order of any court or other public authority caused the 3or2 to be stopped or suspended for an a$$re$ate period of ninety (6)) days throu$h no act or fault of the !ontractor or his employees% b% If the O3ner shall fail to pay the !ontractor the appro,ed Re;uest for Payment as pro,ided in Article ++%).%
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c% If the O3ner shall fail to pay the !ontractor any sum 3ithin thirty (-)) days after its a3ard by arbitration% d% If the O3ner suspends the 3or2 3ithout Bust cause for more than the a$$re$ate period of fifteen (&.) days 3ithout the !ontractor7s consent% A&T. $6< O.! &9) &I';T TO )U)P !D T; .O&5

+1%)& #=#PE"#IO" 4IT>O=T !A=#E ? The O3ner may: at any time and 3ithout cause: suspend the 3or2 or any portion thereof for a period of not more than the a$$re$ate period of fifteen (&.) days by notice in 3ritin$ to the !ontractor and shall fi9 the date on 3hich 3or2 shall be resumed% The !ontractor shall resume the 3or2 on the date so fi9ed% The !ontractor 3ill be allo3ed an adBustment in the !ontract Price to include demobiliDation and remobiliDation costs andFor stand'by time as applicable as 3ell as adBustment of !ompletion Time 3hich shall not be less than the period of suspension and shall include the delay due to remobiliDation of e;uipment and personnel% The O3ner may not suspend the 3or2 3ithout Bust cause for more than an a$$re$ate period of fifteen (&.) days 3ithout the !ontractor7s consent% +1%)+ K=#T !A=#E# OR #=#PE"#IO" O 4ORC? The O3ner: by a 3ritten order: may direct the !ontractor to stop the 3or2 or any portion thereof: in any of the follo3in$ cases until the cause for such order has been eliminated? LaM =nsuitable 3eather or other conditions considered unfa,orable for the prosecution of the 3or2@ LbM ailure of the !ontractor to correct conditions 3hich constitute a dan$er to his 3or2ers or the $eneral public: or to correct defecti,e 3or2@ LcM ailure of the !ontractor to carry out ,alid orders issued by the O3ner or to comply 3ith any pro,ision of the !ontract: or his persistent failure to carry out the 4or2s in accordance 3ith the !ontract@ LdM The necessity for adBustin$ the Dra3in$s to suit site conditions found durin$ construction: or in case of a chan$e in Dra3in$s and #pecifications@ LeM ailure of the !ontractor to supply sufficient s2illed 3or2men or suitable materials or e;uipment@ LfM ailure of the O3ner to supply O3ner'suppliedFfurnished materials on time: 3here such failure is due to causes beyond the reasonable control of the O3ner@

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L$M Delay by the O3ner in obtainin$ a ri$ht'of'3ay: 3here such obli$ation is assumed by the O3ner under the !ontract: and the delay is not due to the fault or ne$li$ence by the O3ner@ LhM Force majeure or fortuitous e,ent@ LiM Peace and order problems@ or LBM Any condition similar to the abo,e beyond the control of the O3ner% The !ontractor shall immediately comply 3ith such order to suspend the 3or2 or any part thereof for such period or periods and in such manner as the O3ner may direct: and durin$ such suspension shall properly protect and secure the 4or2% The !ontractor shall be entitled to an e;uitable adBustment of !ompletion Time and !ontract Price for suspension of 3or2 due to Items LaM:LdM :LfM: L$M:L hM: LiM N LBM% >o3e,er: for Item LaM: no such adBustment shall be allo3ed if unsuitable 3eather conditions 3ere ta2en into account in determinin$ the !ompletion Time as pro,ided for in the Bid Documents% If the actual number of days of unsuitable 3eather e9ceeds the period ta2en into account in the Bid Documents: the !ontractor shall be entitled to an adBustment of !ompletion Time and !ontract Price% A&T. $7< O.! &9) &I';T TO T &MI!AT CO!T&ACT

+6%)& TER8I"ATIO" 4IT> !A=#E% The O3ner may immediately terminate the !ontract: 3ithout prior notice to the !ontractor: upon the occurrence of any of the follo3in$ e,ents? a) If !ontractor is adBud$ed ban2rupt or insol,ent@ b) If !ontractor ma2es a $eneral assi$nment of his assets for the benefit of his creditors@ c) If a trustee or recei,er is appointed for the !ontractor or for any of the !ontractor7s property@ or d) If the !ontractor files a petition for suspension of payments: or to reor$aniDe under the ban2ruptcy or similar la3s% +6%)+ OT>ER *RO="D# OR TER8I"ATIO" 4IT> !A=#E% The O3ner may terminate the !ontract upon the occurrence of any of the follo3in$ e,ents? a) The !ontractor repeatedly fails to supply: based on the construction schedule: the sufficient number of s2illed 3or2men or suitable materials or e;uipment@ b) The !ontractor repeatedly fails to ma2e 3ithout Bust cause prompt payments to subcontractors for labor: materials or e;uipment: and completion of the 4or2 is bein$ delayed@
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c) The !ontractor disre$ards the La3s or orders of any public body ha,in$ Burisdiction@ d) The !ontractor other3ise ,iolates in any substantial 3ay any pro,ision of the !ontract@ or e) #lippa$e of the !ontractor in e9cess of +.J in the prosecution of 3or2 per a$reed construction schedule andFor PERTF !P8% The O3ner may: after $i,in$ !ontractor and his surety &. days7 3ritten notice: terminate the ser,ices of the !ontractor: e9clude the !ontractor from the site and ta2e possession of the 4or2 and of all the !ontractor7s tools: appliances: construction e;uipment and machinery at the site and use the same and incorporate into the 3or2 all materials and e;uipment stored at the site includin$ those stored else3here for 3hich the O3ner has paid the !ontractor: and finish the 3or2 as O3ner may deem e9pedient% In such case the !ontractor shall not be entitled to recei,e any further payment until the 3or2 is finished% +6%)- TER8I"ATIO" 4IT>O=T !A=#E% =pon &. days7 3ritten notice to the !ontractor: the O3ner may: 3ithout preBudice to any other ri$ht or remedy: elect to abandon the 3or2 and terminate the !ontract% In such case: the !ontractor shall be paid for all 3or2 e9ecuted and any e9pense sustained plus reasonable termination e9penses% A&T. 1#< O.! &9) &I';T TO P&OC D .IT; T; .O&5 A%T & & DUCTIO! I! CO!T&ACTO&9) )COP O% .O&5? PA&TIA( TA5 O* & %&OM CO!T&ACTO& -)%)& O4"ER7# RI*>T TO !ARRE O=T T>E 4ORC ? If the !ontractor? a) Repeatedly fails to supply sufficient s2illed 3or2men or suitable materials or e;uipment@ b) Repeatedly fails to ma2e prompt payments to subcontractors for labor: materials or e;uipment@ c) ails 3ithin a reasonable time after 3ritten notice of the O3ner to correct defecti,e 3or2 or to remo,e and replace repeated 3or2@ or d) ails to perform the 3or2 in accordance 3ith the !ontract (includin$ re;uirements of the pro$ress schedule)@ the O3ner may: after se,en (0) days follo3in$ receipt by the !ontractor of 3ritten notice and 3ithout preBudice to any other remedy the O3ner may ha,e and 3ithout terminatin$ the !ontract: ma2e $ood such deficiencies% In such case an appropriate chan$e order shall be issued deductin$ from the payments then or thereafter due the !ontractor the cost of correctin$ such deficiencies: includin$ compensation of additional ser,ices made
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necessary by such default: ne$lect or failure% If the payments then or thereafter due the !ontractor are not sufficient to co,er such amount: the !ontractor shall pay the difference to the O3ner% -)%)+ =#E O 8ATERIAL# A"D E<=IP8E"T AT #ITE? The !ontractor: upon recei,in$ notice of termination of the !ontract: shall ,acate the site and deli,er possession of the 4or2: or the parts thereof specified in the notice: to the O3ner% All materials: plant: appliances and other essential e;uipment as may be needed for the construction of the proBect: shall: at the option of the O3ner: remain on the site until the 4or2 is completed and credit the !ontractor a reasonable rental for the use the same% In case such materials andFor e;uipment do not belon$ to the !ontractor: then the O3ner: pro,ided it does not ,iolate the lease contract of the !ontractor: shall ha,e the option to retain them for use in the proBect and pay reasonable rent directly to the lessor for their use: char$eable a$ainst the !ontractor% -)%)- O4"ER TO !O8PLETE 4ORC? The O3ner shall then ta2e o,er the 3or2: and use such tools: appliances and materials of e,ery description as may be found at the site for the purpose of completin$ the 4or2% -)%)( E5AL=ATIO" O !O#T O 4ORC? =pon such termination of this !ontract: the O3ner 3ill ascertain and fi9 the ,alue of the 3or2 completed by the !ontractor and not paid for by the O3ner and of all usable materials of the !ontractor ta2en o,er by the O3ner at the time of said termination% a% If the cost to the O3ner of completin$ the 3or2: inclusi,e of reasonable administrati,e and mana$erial ser,ices and the char$es a$ainst the proBect prior to termination of the !ontract are not in e9cess of the !ontract Price: then the difference bet3een them may be applied to settle claims filed a$ainst the !ontractor: and the balance: if any: may be paid to the !ontractor% "o amount in e9cess of the combined ,alue of the unpaid completed 3or2: retained percenta$e and usable materials ta2en o,er by the O3ner at the time of the termination of the !ontract shall be paid to the !ontractor until the completion of the 3or2% b% In case of suspension of 3or2: all unpaid 3or2 e9ecuted includin$ e9penses incurred durin$ suspension shall be char$ed to the O3ner% -)%). O4"ER7# RI*>T TO RE!O5ER DA8A*E#? "either the ta2in$ o,er by the O3ner of the 3or2 for completion by administration nor the re'lettin$ of the same to another !ontractor shall be construed as a 3ai,er of the O3ner7s ri$hts to reco,er dama$es a$ainst the ori$inal !ontractor andFor his sureties for the failure to complete the 3or2 as stipulated% In such case: the full e9tent of the dama$es for 3hich the !ontractor andFor his sureties shall be liable shall include?
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a% Li;uidated dama$es 3hich may ha,e accrued up to and includin$ the day immediately before the date the O3ner effecti,ely ta2es o,er the 3or2 or the date of substantial completion 3hiche,er occurs earlier@ b% The e9cess cost incurred by the O3ner in the completion of the proBect o,er the !ontract Price inclusi,e of re'lettin$ the same@ If the O3ner completes the 3or2 by administration: the direct cost of completin$ the 3or2 shall include the reasonable cost of mana$erial and administrati,e ser,ices incurred from the time the O3ner effecti,ely too2 o,er the 3or2 by administration% ) CTIO! I0. & )PO!)I4I(ITI ) A!D (IA4I(ITI ) O% CO!T&ACTO& A!D O% O.! & A&T. 1"< CO!T&ACTO&9) & )PO!)I4I(IT3 %O& ACCID !T) A!D DAMA' ) -&%)& #A E*=ARD# TO BE ="DERTACE" BE !O"TRA!TOR? The !ontractor shall ta2e all necessary precautions for the safety of employees and 3or2men on the 3or2: and comply 3ith all La3s to pre,ent inBury to persons on: about or adBacent to the premises 3here the 4or2 is bein$ performed% The !ontractor shall erect and properly maintain at all times: as re;uired by the conditions and pro$ress of the 3or2: such barriers: shorin$: supports: braces: li$hts: dan$er si$ns and necessary safe$uards: as 3ill protect 3or2men and the public and as 3ill effecti,ely pre,ent any inBury to persons and dama$e to property in conse;uence of his 3or2% The !ontractor shall desi$nate a responsible member of his or$aniDation at the site: 3hose duty shall be the pre,ention of accidents and dama$e to the 4or2: the O3ner7s property and adBoinin$ property% The name and position of the person so desi$nated shall be reported by the !ontractor in 3ritin$ to the O3ner% The !ontractor shall be primarily responsible for all safety measures in prosecutin$ the 4or2 in accordance 3ith the safety manual appro,ed by the !onstruction Industry Authority of the Philippines (!IAP) % -&%)+ O4"ER "OT TO BE RE#PO"#IBLE? The !ontractor shall render the O3ner free and harmless for the death of: the disease contracted or inBury recei,ed by the !ontractor or any of his employees or laborers: for any dama$e done by or to !ontractor7s plant or materials from any source or cause@ and for dama$es caused by the !ontractor or his employees to any property of the O3ner and adBoinin$ property% a% The !ontractor shall indemnify and sa,e harmless the O3ner from and a$ainst all losses and all claims: demands: payments: suits: actions: reco,eries: and Bud$ment of e,ery nature and description brou$ht or
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reco,ered a$ainst him: for any act or omission of said !ontractor: or of his a$ents or employees: in the e9ecution of the 4or2 or the $uardin$ of it% b% !laims for payment and repairs for dama$es for 3hich the !ontractor is liable shall be settled by the !ontractor at his o3n e9pense% In the e,ent of failure of the !ontractor to repair such dama$es: and pay other claims: the O3ner may repair the same and pay the claims: and deduct the entire cost of such repairs and claims from the payments due the !ontractor% -&%)- !O"TRA!TOR7# DE A=LT% The O3ner shall ha,e the ri$ht to underta2e reasonable safety and protection measures in case of !ontractor7s default: and char$e the cost of such measures to the !ontractor% A&T. 1$< CO!T&ACTO&9) I!)U&A!C A!D 4O!D)

-+%)& !O"TRA!TOR7# LIABILITE I"#=RA"!E? The !ontractor shall secure and maintain insurance co,era$e from an insurance company acceptable to the O3ner as 3ill protect himself: his sub'contractors: and the O3ner from claims for bodily inBury: death or property dama$e 3hich may arise from 3or2 under the !ontract% The !ontractor shall not commence 3or2 under the !ontract until he has obtained the insurance co,era$e re;uired and shall ha,e filed the insurance policy or the certified copy of the insurance policy 3ith the O3ner% #uch insurance policy shall contain a clause pro,idin$ that it shall not be cancelled by the insurance company 3ithout 3ritten notice to and appro,al of the O3ner% The nature: e9tent and amount of such insurance co,era$e shall be as a$reed upon bet3een the O3ner and the !ontractor% The !ontractor shall ensure that such insurance policy is effecti,e durin$ the e9ecution of the 4or2% -+%)+ A!!IDE"T I"#=RA"!E OR 4ORCER#% The !ontractor shall: in addition to compulsory co,era$e of 3or2ers under the 3or2men7s compensation la3: obtain insurance co,era$e for accidental death or inBury of his officers: employees and laborers 3ithout re$ard to their tenure of employment as permanent or re$ular 3or2ers: proBect 3or2ers or casual employees performin$ 3or2 at the proBect site in an amount of not less than P&)):)))%)) per officer: employee or laborer% The premiums to be paid on the insurance policy shall be paid by the !ontractor and 3ithout cost to those co,ered by the policy% -+%)- !O"TRA!TOR7# IRE I"#=RA"!E? In addition to such ire Insurance as the !ontractor elects to carry for his 3or2: he shall secure and maintain the policies upon such structures and materials and in such amounts as shall be desi$nated in the Boint names of the !ontractor and the O3ner as their respecti,e interest may appear% These policies shall be secured from a company 3hich is satisfactory to the O3ner and deli,ered to the O3ner% A !ontractor7s All Ris2 Policy or any insurance for third party liability of the !ontractor shall not include the O3ner as co'insured but as a third party%
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-+%)( !O"TRA!TOR7# PER OR8A"!E A"D PAE8E"T BO"D#? The !ontractor: prior to si$nin$ the !ontract: shall furnish a Performance Bond e;ual to &.J of the !ontract amount for the faithful performance of his 3or2 and &.J bond co,erin$ !ontractor7s obli$ations arisin$ from the !ontract to its 3or2ers: subcontractors and suppliers% #uch bonds shall be in the form of surety bond as appro,ed by the O3ner: and shall remain in effect until replaced by the !ontractor7s $uarantee bond% -+%). !O"TRA!TOR7# *=ARA"TEE BO"D? The Performance and Payment Bonds 3ill be released by the O3ner upon postin$ by the !ontractor of a *uarantee Bond e;ui,alent to the amount of the retention released to the !ontractor% The *uarantee Bond shall be for a period of one (&) year commencin$ from the date of postin$ as a $uarantee that all materials and 3or2manship installed under the !ontract are of acceptable ;uality% -+%)/ !O"TRA!TOR7# *=ARA"TEE'4ARRA"TE? a% The !ontractor shall: in case of 3or2 performed by his sub'contractors and 3here $uarantees are re;uired: secure $uarantees from said sub'contractors and deli,er copies of same to the O3ner upon completion of 3or2% The term G$uaranteeG shall include G3arrantyG% b% The !ontractor shall and thereby $uarantees all 3or2 performed by him directly and for 3hich $uarantees are re;uired% c% The !ontractor shall $uarantee for a period of one year: or for a lon$er period 3here so pro,ided in the #pecifications: all materials and 3or2manship installed under the !ontract to be of acceptable ;uality in e,ery respect and to remain so durin$ the $uarantee period% d% #hould any defect de,elop in aforesaid 3or2: 3ithin the $uarantee period due to fault in material andFor 3or2manship: the !ontractor shall ma2e all repairs and do all necessary 3or2 to correct defecti,e 3or2 to the O3ner7s satisfaction% #uch repairs and correcti,e 3or2s shall be done by the !ontractor at his e9clusi,e e9pense and shall be commenced 3ithin fi,e (.) days after receipt of 3ritten notice by the O3ner% e% In case the !ontractor fails to commence or do the 3or2 so ordered: the O3ner may ha,e the 3or2 done by another contractor and char$e the cost thereof a$ainst monies retained as pro,ided for in the !ontract andFor a$ainst his sureties% f% The fore$oin$ remedies shall be 3ithout preBudice to the ri$hts of the O3ner under the "e3 !i,il !ode and other la3s no3 or hereafter that may be applicable% -+%)0 8A"DATORE !O"DITIO"# O BO"D# The bonds re;uired of the !ontractor shall be subBect to the follo3in$ mandatory conditions 3hich shall form part of said bonds%
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A surety or bondsman issuin$ any bond called for in the !ontract is deemed conclusi,ely to ha,e accepted the follo3in$ mandatory conditions: and any pro,ision in the bond thereby issued or in any document made prior to: concurrent 3ith: or after the issuance of the bond 3hich tends to nullify: modify: or limit by time or other3ise: any ri$ht of the O3ner shall be ,oid and shall not pre,ail o,er these mandatory conditions? a% The surety or bondsman a$rees in ad,ance to future no,ationFs of the bond either by adBustin$ the scope of the 3or2 of the !ontractor caused by directed or constructi,e chan$es: the !ompletion Time or the !ontract Price% 4here the !ontract pro,ides that the !ontractor shall obtain the appro,al of the surety or bondsman to any such adBustment: the re;uired appro,al shall be deemed to be a mere formality: the absence of 3hich shall not affect the obli$ation and liability of the surety or bondsman under the bond% b% The bond issued by surety or bondsman under the !ontract shall continue to ha,e force and effect beyond the effecti,ity period stated in the bond if the 3or2 or the obli$ation for 3hich it 3as issued has not been completely performed% This is 3ithout preBudice to the ri$ht of the surety or bondsman to demand from the !ontractor the payment of the premium on the bond or to the ri$ht of the O3ner to pay such unpaid premium for the !ontractor% The additional premium on the bond for an e9tension of the !ontract time due to reasons other than the fault or ne$li$ence of the !ontractor shall be billed at cost to the O3ner% The bond may not be cancelled or other3ise terminated by the bondsman or surety 3ithout the e9press 3ritten consent of both the O3ner and the !ontractor% The ri$ht of the surety shall be limited to demand the payment of unpaid premium% c% The O3ner shall ha,e a ri$ht of recourse a$ainst the surety on the bond until (a) it is cancelled by the O3ner and returned to the !ontractor or (b) it is replaced by another bond unless the O3ner reser,es the ri$ht to reco,er a$ainst the former bond due to default of the !ontractor: or (c) the O3ner issues to the !ontractor an unconditional !ertificate of Acceptance of the 4or2% d% =ntil the O3ner ta2es o,er the 4or2 (not only a part thereof) or other3ise terminates the !ontract: the !ontractor shall not be deemed in default: not3ithstandin$ the reduction of the !ontractor7s scope of 3or2 and any assistance pro,ided by the O3ner to enable the !ontractor to catch up and complete the remainin$ 3or2% The O3ner7s assistance to the !ontractor shall not preBudice nor limit the ri$ht of the O3ner to ha,e a later recourse a$ainst the bond% A&T. 11< O.! &9) & )PO!)I4I(ITI ) A!D (IA4I(ITI )

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--%)& AD5A"!E PAE8E"T? An ad,ance payment in an amount to be mutually a$reed upon shall be paid by the O3ner to the !ontractor: pro,ided that the !ontractor shall post a surety bond of e;ui,alent amount callable on demand and acceptable to the O3ner to $uarantee its repayment% The !ontractor shall use the ad,ance payment for mobiliDation: purchase of materials: and the li2e for the proBect% This shall be recouped pro rata in the pro$ress billin$s% --%)+ PROTE!TIO" O E8PLOEEE# A"D PRO E##IO"AL# PER OR8I"* #ER5I!E# OR T>E O4"ER? The O3ner shall be responsible for and shall maintain such insurance as 3ill protect him from liability for personal inBury includin$ disease and death of persons under his employ or ser,ice 3hether as temporary or permanent in status that are assi$ned to the proBect% --%)- O4"ER7# OPTIO"AL I"#=RA"!E? The O3ner may maintain such insurance as 3ill protect him from his contin$ent liability for dama$es: for personal inBury: includin$ death: 3hich may arise from the 3or2 under the !ontract% --%)(% ADDITIO"AL I" OR8ATIO" A"D #ER5I!E# RE<=IRED O T>E O4"ER% The O3ner shall: at the re;uest of the !ontractor: at the time of the e9ecution of the !ontract: furnish to the !ontractor reasonable e,idence that the O3ner can fulfill its obli$ations under the !ontract% =nless such reasonable e,idence is furnished: the !ontractor may not be re;uired to e9ecute the !ontract or to commence or continue the 4or2% A&T. 1,< (I !)/ DI)PUT ) A!D A&4IT&ATIO! -(%)& LIE"#? As a condition to final payment andFor the release of the retention: the !ontractor shall release the 4or2 from any le$al liens attachin$ there3ith as a result of unpaid claims of subcontractors andFor suppliers for the supply of materials andFor e;uipment to the !ontractor for the proBect in the form of a s3orn statement by the !ontractor or a duly authoriDed officer of the !ontractor statin$ that all such claims ha,e been fully paid@ and furnishin$ the O3ner: 3hen re;uired: 3ith receipts or ac2no3led$ments of payment issued by the subcontractors andFor suppliers% #hould any of such claims remain unpaid as of the time of e9ecutin$ the s3orn statement: or if the !ontractor is unable to furnish the O3ner 3ith proof of full payment to any subcontractor or supplier: the !ontractor shall furnish the O3ner 3ith an indemnity bond e;ual to the amount of the claims still unpaid% The indemnity bond may be issued by the surety 3hich pre,iously issued the !ontractor7s performance bond or any other bond re;uired under the !ontract or by any other surety acceptable to the O3ner% The O3ner may reco,er a$ainst the !ontractor andFor the surety: on the latter7s indemnity bond: any amount paid by the O3ner to dischar$e such liens: includin$ costs incurred incident thereto and a reasonable amount of attorney7s fees% -(%)+ A##I*"8E"T
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A% The !ontract may not be assi$ned in 3hole or in part% Any purported assi$nment made of the !ontract or any part thereof 3ithout the consent of either party shall be ,oid and ineffecti,e% B% The O3ner may ne,ertheless e9act full compliance from both the !ontractor and his assi$nee 3ithout 3ai,in$ the O3ner7s ri$ht at any time thereafter to reduce the !ontractor7s scope of 3or2 by remo,in$ from the !ontractor the part of the 3or2 3hich 3as assi$ned and $i,in$ it to any other contractor andFor terminatin$ the !ontract in either case: 3ithout any further cause than the assi$nment% !% Any contract: a$reement or bindin$ 3ritten commitment entered into by the !ontractor either before or after the e9ecution of the !ontract: 3ith any other person as cooperator: consortium member: Boint ,enture member: or supplier of e;uipment: technolo$y: materials or ser,ices for the Boint e9ecution of the 4or2: shall be pro,ided to the O3ner at the latter7s re;uest% If the O3ner finds that the contract: a$reement or bindin$ 3ritten commitment is a dis$uised assi$nment of the !ontract: the O3ner shall so notify the !ontractor and shall ha,e the ri$hts under para$raph LBM abo,e% -(%)-% #=B!O"TRA!TI"* A% The !ontractor may subcontract any part of the !ontract 3ith the appro,al of the O3ner% B% The O3ner may re;uire the !ontractor as a condition for the appro,al of the subcontract (&) that the subcontract shall be submitted to the O3ner and the subcontract must re;uire the subcontractor to obtain the same bonds and insurance co,era$e as are re;uired of the !ontractor under the !ontract: and (+) that the !ontractor furnish the O3ner copies of these insurance policies and bonds% -(%)( DI#P=TE#? A% All matters 3hich under the !ontract shall be accepted: appro,ed or decided by the O3ner may be entrusted by the O3ner to his authoriDed representati,e for determination% The latter shall in all such matters act as a$ent of the O3ner 3hose determination binds the O3ner% B% The determination by the O3ner or by his representati,e shall be follo3ed by the !ontractor e,en if the latter disa$rees 3ith it% In the latter case: the disa$reement shall be deemed a dispute 3hich the !ontractor may submit to arbitration% -(%). #ETTLE8E"T O DI#P=TE# A% DI#P=TE OR DI#A*REE8E"T #=B8ITTED TO ARBITRATIO"
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Any dispute arisin$ out of or in connection 3ith the !ontract includin$ any ;uestion re$ardin$ its e9istence: ,alidity or termination not resol,ed as pro,ided abo,e shall be referred to and finally resol,ed by arbitration under the Rules of Procedures *o,ernin$ !onstruction Arbitration promul$ated pursuant to E9ecuti,e Order "o% &))1 (!onstruction Industry Arbitration La3) by panel of three (-) arbitrators appointed in accordance 3ith such Rules% The place of arbitration shall be 8etro 8anila: Philippines% Resort to arbitration shall be made by filin$ a claim 3ith the !onstruction Industry Arbitration !ommission% B% #=B#TIT=TED #ER5I!E A party to the !ontract shall: by enterin$ into the same: be deemed to be submittin$ himself to the Burisdiction of the !onstruction Industry Arbitration !ommission 3ith re$ard to any dispute arisin$ out or in connection 3ith the !ontract as pro,ided in Article -(%).: para$raph LAM abo,e% #uch party shall be ser,ed 3ith the claim referred to in Article -(%).: para$raph LAM and other notices and processes incident thereto upon such claim bein$ ser,ed upon or filed 3ith his co',enturer: partner or authoriDed representati,e: not3ithstandin$ any statement to the contrary in the A$reement: !ontract Documents: or any other communication to the other party or after enterin$ into the !ontract: unless he has filed 3ith the !onstruction Industry Arbitration !ommission an irre,ocable special po3er of attorney authoriDin$ another person or entity to recei,e by personal ser,ice at a definite address in 8etro 8anila: Philippines: such claim: notice and processes% In case a party: his co' ,enturer: or authoriDed representati,e declines ser,ice of such claim: notice or process or cannot be found at his $i,en address such ser,ice shall be made upon the said party by filin$ the same 3ith the !onstruction Industry Authority of the Philippines (!IAP): 0th loor: Peninsula !ourt Buildin$: 10-. Paseo De Ro9as corner 8a2ati A,enue: 8a2ati !ity: 8etro 8anila or at the !IAP7s office address: and filin$ the claim: notice or process shall complete the ser,ice upon the party concerned% ) CTIO! 0. O.! &9) & P& ) !TATI*

A&T. 18< Owner@s &epresentatiAe The O3ner7s Representati,e shall either be the Architect: the En$ineer: !onstruction 8ana$er or other person desi$nated by the O3ner as the O3ner7s Representati,e% The O3ner7s Representati,e shall ha,e the full authority to act for and on behalf of the O3ner in all matters 3hich under the !ontract the O3ner shall $i,e his consent: appro,al or decision% The O3ner shall $i,e the !ontractor at the time of the "otice to Proceed or any time thereafter the notice of appointment of the O3ner7s Representati,e% =nless the !ontractor is notified in 3ritin$ by the O3ner
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of the limits of authority of the O3ner7s Representati,e: it shall be understood that the authority of the latter to act for and on behalf of the O3ner is full and un;ualified% In the absence of a 3ritten communication by the O3ner to the !ontractor notifyin$ the latter of the desi$nation of a particular person as O3ner7s Representati,e: the Architect shall perform the functions and ha,e the authority of the O3ner7s Representati,e if the proBect or 3or2 in,ol,es the construction of a buildin$@ but if the proBect or 3or2 in,ol,es the construction of an en$ineerin$ structure: other than a buildin$: or the construction of a buildin$ if such constitutes only a minor portion of the proBect: the En$ineer shall perform the functions and ha,e the authority of an O3ner7s Representati,e% The O3ner7s Representati,e shall also perform the function of !onstruction 8ana$er unless the O3ner desi$nates another person as !onstruction 8ana$er% If the O3ner shall desi$nate a !onstruction 8ana$er and define his functions: those functions of a !onstruction 8ana$er not dele$ated to the latter shall be performed by the O3ner7s Representati,e% "ot3ithstandin$ the desi$nation by the O3ner of an Architect: En$ineer andFor !onstruction 8ana$er: communications bet3een the !ontractor and the O3ner shall be made only throu$h the O3ner7s Representati,e% ) CTIO! 0I. )C; DU( O% TIM (IMIT)

The !ontractor shall perform his 3or2 subBect to certain Time Limits% This inde9ed section: as based on the entire *eneral !onditions: is pro,ided for in order to facilitate the e9ecution of his 3or2% !O. TIT( &% !O"TRA!T TI8E &%& !ontract Time Rec2onin$ &%+ Re;uest for Time E9tension +% !O"TRA!T #=8 +%& Brea2do3n of 4or2 N !orrespondin TIM (IMIT & % & !C A&TIC( !O. +&%)+

To commence on the 0th day from receipt of "otice to Proceed ("TP) unless "TP pro,ides for a later date To be filed 3ithin &. days from occurrence of e,ent 3hich caused delay% ( par% B) To be submitted 3ithin &. days from the receipt of "otice to Proceed

+&%)( ++%)&

+)%)1
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$ 5alue +%+ !laim for E9tra !ost

"otice to be $i,en to O3ner 3ithin &. days (&) (+) after receipt of instruction in,ol,in$ e9tra cost : or after reco$nition of delay due to O3ner7s fault% ++%).

-% PRO*RE##F I"AL PAE8E"T -%& O3ner7s Action on Payment Re;uest -%+ O3ner7s Action on inal Payment Re;uest -%- Release of Retention

To be made 3ithin &. days after receipt of re;uest for payment ++%)0 To act 3ithin &. days from receipt of the re;uest for payment% To be released not later than /) days from substantial completion upon postin$ of !ontractor7s *uarantee Bond% ++%&&

(% O

!ORRE!TIO" 4ORC (%& !orrection Before or After inal Payment Poor or inferior 3or2: apparent upon inspection to be condemned N !ontractor notified to enable him to correct: remo,e N replace the same% O3ner has one year from date of final payment to condemn poor or inferior 3or2: other3ise: instructions to remo,e or replace such shall be treated as chan$e order% -) days from receipt by the !ontractor of the last item in the punch list !ontractor may suspend 3or2 or terminate !ontract upon &. days
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++%&) +)%&+ N +)%&-

(%+

8a2in$ *ood of Cno3n Defects

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!O"TRA!TOR7# 3ritten notice to O3ner and O3ner: RI*>T TO for any of the follo3in$ reasons? #=#PE"D 4ORC OR TER8I"ATE (&) If any court or other public !O"TRA!T authority orders 3or2 to be stopped or suspended for 6) days throu$h no fault of the !ontractor or his employees@ (+) If O3ner fails to pay !ontractor the appro,ed re;uest for payment 3ithin &. from receipt% If O3ner fails to pay !ontractor the a$reed sum 3ithin -) days after its a3ard by arbitrators% If the O3ner suspends the 3or2 3ithout cause for more than &. days 3ithout !ontractor7s consent +0

(-)

(()

TI8E LI8IT "O% TITLE 0% O4"ER7# RI*>T TO TER8I"ATE !O"TRA!T 8ay be done immediately and 3ithout notice if !ontractor should? (&) Declare ban2ruptcy: become insol,ent or assi$ns is assets for the benefit of his creditors or appointment of trusteeFrecei,er for !ontractor or any of its property%

RE ERE"!E ARTI!LE "O% +6%)&

+6%)+ 8ay be done after $i,in$ &. days 3ritten notice to !ontractor or to his #urety if !ontractor should? (&) Disre$ard or ,iolate pro,isions of the !ontract Documents or O3ner7s instructions@ (+) ail to pro,ide s2illed
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(-) (() (.) (/) 1% DI#P=TE#

superintendent: 3or2men or suitable materials or e;uipment@ ail to ma2e prompt payment to sub'contractors: for labor or materials or e;uipment@ Disre$ard the authority of the O3ner7s Representati,e@ 5iolates in any substantial 3ay any pro,isions of the !ontract Documents Repeatedly delays prosecution of 3or2 per a$reed !onstruction #chedule andFor PERTF !P8

6%

*=ARA"TEE BO"D 6%& !ontractor7 s *uarantee Bond

If O3ner fails to render a decision 3ithin &. days after parties ha,e presented their e,idence: either party may demand arbitration (Item d)% To be furnished the O3ner upon release of retention and shall be effecti,e for a period of one year commencin$ from the date of acceptance as a $uarantee that all materials and 3or2manship installed are of $ood ;uality%

-(%)( N -(%).

-+%).

Nothing follows.

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