It has been observed in many cases that in the prequalification of contractors for a project under bid, the verification of the equipment capability of the contractor-applicant is limited to documentary examination without actual/physical verification.  While documentary evidence establishes the ownership of equipment, the efficiency and/or whether or not equipment is operational is not established.  In some cases, there are a number of idle equipment units in the field, not because there is no activity where same will be used but because of equipment breakdown resulting in negative slippage on project implementation to the detriment of public service.

Wherefore, it is directed that in the pre-qualification of contractors, their equipment capability has to be actually/physically checked and verified, not only as to ownership, but, equally important as to the efficiency output of the equipment.  Whoever conducts the actual/physical verification shall issue a certification containing his findings, with the corresponding recommendation for prequalification or pre-disqualification, as the case may be.  Moreover, once a contractor has been awarded a contract, his units of equipment, as stated in his Pre-C application that would be utilized as required in the Instructions to Bidders, shall be checked as to whether they are the same equipment units that are deployed in the project.

This order shall take effect immediately.

Adopted: 23 Oct. 1992