[ RESOLUTION NO. 07-2018, September 19, 2018 ]
APPROVING AMENDMENTS TO SECTION 2, ANNEX E OF THE 2016 IMPLEMENTING RULES AND REGULATIONS (IRR) OF REPUBLIC ACT (RA) NO. 9184 AND THE PHILIPPINE BIDDING DOCUMENTS FOR INFRASTRUCTURE PROJECTS
WHEREAS, Republic Act (RA) No. 9184 entitled An Act Providing for the Modernization, Standardization and Regulation of the Procurement Activities of the Government and for Other Purposes, took effect on 26 January 2003, while its 2016 Revised Implementing Rules and Regulations (IRR) took effect on 28 October 2016;
WHEREAS, Section 63(b) of Republic Act (R.A.) No. 9184, the Government Procurement Reform Act, and Section 63.1(b) of the 2016 revised Implementing Rules and Regulations (IRR) authorize the Government Procurement Policy Board (GPPB) to formulate public procurement policies, rules and regulations, and amend, whenever necessary, the IRR;
WHEREAS, Section 43 of RA 9184 provides that the rules and guidelines for the implementation and termination of contracts awarded pursuant to the provisions of the Act shall be prescribed in the IRR.
WHEREAS, Annex E of the 2016 IRR of RA 9184 prescribes the Contract Implementation Guidelines for Infrastructure Projects (Guidelines for brevity);
WHEREAS, under the Guidelines, contractors are allowed to claim progress payments at least once a month based on the cumulative value of the quantities executed with reference to the items in the Bill of Quantities and that payments are based on unit price payment scheme;
WHEREAS, on 22 February 2018, the GPPB-Technical Support Office (TSO) received a letter from the Bases Conversion and Development Authority (BCDA) requesting for opinion on the legality of adopting a modified payment scheme in the procurement of government infrastructure projects on a turn-key basis, among others;
WHEREAS, upon initial review, the GPPB-TSO observed that adopting a modified payment scheme that will allow procuring entities to implement their infrastructure projects on a turn-key basis will require the amendment of existing provisions of Annex E of the IRR of RA 9184;
WHEREAS, on 16 April 2018, the GPPB-TSO received another letter from BCDA requesting the withdrawal of its original letter requesting for opinion;
WHEREAS, notwithstanding the withdrawal of the BCDA letter-request, the GPPB can proactively prescribe rules allowing a different payment scheme that may be utilized by other procuring entities implementing infrastructure projects;
WHEREAS, during the 2nd IATWG Meeting held on 10 May 2018, the GPPB- TSO presented the proposed amendments to Section 5, Annex E of the 2016 IRR of RA 9184 and the corresponding provisions of the Philippine Bidding Documents (PBDs) for Infrastructure Projects to reflect an alternative payment scheme in relation to the implementation of infrastructure projects on turn-key arrangements;
WHEREAS, after due consideration, the IATWG resolved to recommend to the GPPB the proposed amendments, subject to presentation of the pros and cons of adopting a new payment scheme for the implementation of infrastructure projects;
WHEREAS, during the 2nd Regular GPPB Meeting held on 18 May 2018, the GPPB-TSO presented proposed amendment to Section 5 of Annex E of the IRR of RA 9184 and the relevant provisions in the PBDs for Infrastructure Projects, as well as the pros and cons of the proposed amendments as directed by the IATWG;
WHEREAS, after careful review and due deliberations, the GPPB approved the recommendation of the IATWG to amend Section 5 of Annex E of the IRR of RA 9184 and the relevant provisions in the PBDs for Infrastructure Projects to reflect an alternative payment scheme in relation to the implementation of infrastructure projects;
NOW, THEREFORE, for and in view of all the foregoing, WE, the Members of the GOVERNMENT PROCUREMENT POLICY BOARD, by virtue of the powers vested on US by law and other executive issuances, hereby RESOLVE to confirm, adopt, and approve, as WE hereby confirm, adopt, and approve the amendment to Section 5 of Annex E of the IRR of RA 9184 or the Contract Implementation Guidelines for Infrastructure Projects, including the corresponding Clauses in the PBDs for Infrastructure Projects, a copy of which is attached as Annex A , and made an integral part hereof.
This Resolution shall take effect immediately.
APPROVED this 18th day of May 2018 at Pasig City, Philippines.
DEPARTMENT OF BUDGET AND MANAGEMENT
NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY
DEPARTMENT OF EDUCATION
DEPARTMENT OF ENERGY
DEPARTMENT OF FINANCE
DEPARTMENT OF HEALTH
DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT
DEPARTMENT OF NATIONAL DEFENSE
DEPARTMENT OF SCIENCE AND TECHNOLOGY
DEPARTMENT OF TRADE AND INDUSTRY
PRIVATE SECTOR REPRESENTATIVE
ANNEX A
Projects
ORIGINAL |
AMENDMENT |
Sec ti on 5. 1, Progress P ayment |
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Onc e a mont h, t he cont ract or may submit a statemen t of work accompli shed ( SWA) or progress billi ng and correspondi ng request f or progress payment f or work accompli shed. The S WA should show t he amounts whi ch the contr actor consi ders i ts elf to be entitl ed to up to t he end of t he mont h, to cover (a) t he cumul ati ve val ue of the wor ks it executed to dat e, based on t he it ems in t he Bill of Quantiti es, and (b) adj ust ments made f or approved vari ati on orders executed |
Once a month, the contractor may submit a statement of work accomplished (SWA) or progress billing and corresponding request for progress payment for work accomplished. The SWA should show the amounts which the contractor considers itself to be entitled to up to the end of the month, to cover (a) the cumulative value of the works it executed to date, based on the items in the Bill of Quantities, and (b) adjustments made for approved variation orders executed. Alternatively, the Procuring Entity may require in the Bidding Documents that statement of work accomplished or progress billing and the corresponding request for progress payment may only be submitted upon actual completion of the infrastructure project or a specific portion, segment, milestone or phase thereof. |
Sec ti on 5. 2, Progress P ayment |
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Th e pr ocuri ng enti ty s r epr esent ati ve/ pr oj ect engi neer shall check t he cont ract or s mont hly S W A and certify t he amount to be paid to t he contr actor as pr ogr ess payment. Except as ot herwi se sti pul at ed in t he I nst ructi on to Bi dders, mat eri als and equi pment deli vered on t he site but not compl et ely put in pl ace shall not be i ncl uded f or payment. |
Th e pr ocuri ng enti ty s r epr esent ati ve/ pr oj ect engi neer shall check t he cont ract or s mont hly S W A and certify t he amount to be paid to t he contr actor as pr ogress payment. Except as ot herwi se sti pul at ed in t he I nst ructi on to Bi dders, mat eri als and equi pment deli vered on t he site but not compl et ely put in pl ace shall not be i ncl uded for payment. |
Sec ti on 5.3 of Annex E , Progress Payment and GCC Cl ause 40.2 of t he PBDs f or I nf r as t r uc t u r e Pro j ec t s |
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The procuring entity shall deduct the following from the certified gross amounts to be paid to the contractor as progress payment: a) Cumulative value of the work previously certified and paid for. |
The procuring entity shall deduct the following from the certified gross amounts to be paid to the contractor as progress payment: a) Cumulative value of the work previously certified and paid for. |
5 th Ed i ti on for the Phili ppi ne Bi ddi ng Documents (PBDs) for I nfrastructure Projects
ORIGINAL |
AMENDMENT |
GC C Cl ause 40 . 4 |
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Th e fir st pr ogr ess payment may be paid by the Procuri ng Entity to t he Cont ract or, provi ded t hat at l east t wenty percent (20%) of t he work has been accompli shed as certifi ed by t he Procuri ng Entit y s Represent ati ve. |
Th e fir st pr ogr ess payment may be paid by t he Procuri ng Entity to t he Cont ract or, provi ded t hat at l east t wenty percent (20%) of t he work has been accompli shed as certifi ed by t he Procuri ng Entit y s Represent ati ve, un l ess o t herwi se prov i ded in the SCC . |
SC C Cl ause 40 . 4 |
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Select one and delete the other: No further instructions. Or
[Indicate the schedule of payment based on actual completion of a specific segment or portion of the project] |
GC C Cl ause 41 . 1 |
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The contractor shall submit to the Procuring Entity s Representative monthly statements of the estimated value of the work executed less the cumulative amount certified previously |
The contractor shall submit to the Procuring Entity s Representative monthly statements of the estimated value of the work executed less the cumulative amount certified previously, except when a different payment scheme is adopted under GCC Clause 40.4, in which case, the statement may only be submitted in accordance with the schedule prescribed by the Procuring Entity. |
GC C Cl ause 41 . 2 |
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The Procuring Entity s Representative shall check the Contractor s monthly statement and certify the amount to be paid to the contractor. |
The Procuring Entity s Representative shall check the Contractor s monthly statement and certify the amount to be paid to the contractor. |