Ce law

• Act of God or Force Majeure


  An event which cannot be foreseen, or which though foreseen, was inevitable. Rain, wind, flood or other natural phenomenon of inconsequential degree for the locality shall not be construed as an Act of God or Force Majeure.
• Advertisement or Invitation to Bid


  The notice published by the Owner or the invitation issued to prospective bidders, giving information as to the nature of the proposed project, conditions for the issuance of Contract documents, date of bidding, and information that would give the Contractor a general idea of the magnitude and extent of the project.

  
• Agreement


  The agreement signed by the Owner and the Contractor excluding the Contract Documents which are attached thereto.
• Bid


  The tender, or proposal, or quotation, or offer of a bidder to perform the work described in the Contract which in form and substance complies with the Instruction to Bidders.
• Bid Bond


  Any acceptable form of bond accompanying the Bid submitted by the bidder as a guarantee that the bidder will enter into the Contract with the Owner for the construction of the Work, if the Contract is awarded to him.
• Bid Documents


  Collectively refer to all documents provided or made available to prospective bidders which include the Invitation to Bid and a copy of the Contract which the winning bidders would be required to sign with the Owner.
• Bid Bulletin


  A document containing additional information on Bid Documents issued to bidders before date of bidding.
• Breakdown of Work and Corresponding Value


  A listing of the different parts of the work indicating each part and its corresponding value.
• Change Order


  A written order to the Contractor issued by the Owner after the execution of the Contract, authorizing a change or variation in the work or an adjustment in the Contract Price or Contract time.
• Contract


  The term used to describe the Agreement and the Contract Documents.
• Contract Documents


  • Special Provisions or Conditions
  • General Conditions
  • Drawings
  • Specifications
  • Other Bid Documents

  
• Contract Price


  The amount in money or other consideration to be paid by the Owner to the Contractor for the execution of the Work in accordance with the Contract.
• Contractor


  The person or firm duly registered and licensed by the Philippine Contractors Accreditation Board whose proposal has been accepted and to whom was awarded the Contract to execute the Work.
• Drawings


  Graphical presentations of the Work. They include all supplementary details and shop drawings.
• Final Payment


  The payment of the final progress billing and all approved claims including but not limited to those variations in the work, Contract Price adjustments and/or escalation, acceleration of work, and others. It does not include the retention money.
• Guarantee Bond


  The approved form of security furnished by the Contractor and his Surety as a guarantee of the quality of the materials provided, the equipment installed, and the workmanship performed by the Contractor.
• Instruction to Bidders


  The list of instructions regarding the manner bids are to be prepared and the conditions for the award of the Contract.

  
• Laws


  All laws, ordinances and other governmental rules and regulations applicable to the project and to its execution.
• Owner


  The person or entity or authorized representative thereof who signed the Contract as Owner.
• Owner's Representative


  The person or entity commissioned by the Owner or authorized in writing by the Owner to act on his behalf.
• Payment Bond


  The approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to faithfully comply with the Contract in respect of its obligations arising therefrom to its workers, subcontractors, and suppliers.
• Performance Bond


  The approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to execute the Work in accordance with the Contract.
• Schedule of Materials and Finishes


  An outline specification enumerating the type or trade names of materials required to be used by the Contractor for the Work.
• Specifications


  The written or printed description of the work to be done describing qualities of the material to be used, the equipment to be installed and the mode of construction.
• Special Provisions or Conditions


  Instructions which are issued prior to bidding to supplement and/or modify the Drawings, Specifications and/or General Conditions of the Contract.
• Sub-Contractor


  A contractor duly registered and licensed by the Philippine Contractors Accreditation Board having a direct contract with the Contractor who acts for or in behalf of the Contractor in executing any part of the Contract. One who merely furnishes materials without labor is a supplier and not a Sub-Contractor.
• Supplementary Specifications


  Additional information which may be issued as an addition to or amendment of the provisions of the Specifications.
• Surety


  The person, firm or corporation which issues the bond required of the Contractor.
• Time Limit or Completion Time


  The period of time allowed by the Contract for the completion of the project or any stipulated portions thereof.
• Written Notice


  Information, advice or notification pertinent to the project delivered in person or sent by registered mail to an individual, firm or corporation at the latter's last known business address.
• Work


  All the Contractor-provided labor or materials or both as well as equipment transportation, or other facilities necessary to commence and complete the construction and to fulfill all his obligations which are called for in the Contract.
• The intent of the Contract is to include all labor and materials, equipment and transportation necessary for the proper execution of the Work.
• Each party to the Contract acknowledges that in the exercise of his rights in the performance of his duties, he must act with justice, give the other party his due, and observe honesty and good faith.
• Interpretation of Contract


  1. Rule 1: The Agreement and the Contract Documents shall be taken as mutually explanatory of one another. The various provisions of the Contract shall be interpreted together attributing to the doubtful ones that sense which may result from all of them taken jointly.

  2. Rule 2: The provisions of the Civil Code of the Philippines on the interpretation of contracts and of the Rules of Court on the Interpretation of Documents shall be applied.

  3. Rule 3: Where the conflict between or among the provisions of the Agreement and/or the Contract Documents cannot be resolved by Rules 1 and 2, it shall be understood that: (a) the Detailed Drawings shall prevail over the General Drawings; (b) figures written on Drawings shall prevail over the Drawings themselves; and (c) calculated dimensions shall prevail over scaled dimensions.

  4. Rule 4: Where the conflict cannot be resolved by applying Rule 3 or where Rule 3 does not apply, the conflict shall be resolved by giving precedence to the Agreement or to provisions of a Contract Document higher in order of priority among the various documents which comprise the Contract. The order of priority among these documents shall be as follows: (a) Agreement as modified by Notice of Award of Contract, if such be the case, and the Contractor's conformity thereto; (b) Instruction to Bidders and any amendment thereto; (c) Addenda to Bid Documents; (d) Drawings; (e) Specifications; (f) Special Conditions of Contract; (g) General Conditions of Contract; (h) Other Contract Documents; and (i) Other documents forming part of the Contract attached thereto or incorporated therein by reference.

  5. Rule 5: Where there is discrepancy, defective description, error or omission in any Contract Document, the Contract Documents shall be interpreted as being complementary to each other. Thus, what is called for in one Contract Document, although not mentioned in another Contract Document where it should have been mentioned, shall be deemed to be called for by the Contract.

  6. Rule 6: The apparent silence of the Drawings, Specifications or any other Contract Document as to any detail, or the lack of detailed description concerning any part of the work, shall be understood to mean that good and accepted construction practice in accordance with the usage or custom of the place shall be followed.

  7. Rule 7: Rules 1 to 6 shall yield to specific rules of interpretation in this document or in the Contract.
• The interpretation of or explanation by the Owner shall be issued in the form of instructions to the Contractor. Where the Owner fails to issue the instruction in writing, the execution of that part of work affected by the interpretation or explanation without a timely objection or protest of the Owner shall be deemed to have been executed in accordance with the Owner's explanation or interpretation.
• In all cases where a device, item or part of equipment is referred to in the singular number, it is intended that such reference shall apply to as many such devices, items, or parts as are required to complete the work.
• The Work shall be executed in accordance with the Contract.
• If there be a variance between the Drawings and the Specifications, the provisions of the Specifications shall control. In case of conflict between the General Conditions or any modification thereof and the detailed specification requirements, the detailed specification requirements shall control.
• Any discrepancy found between the Drawings and Specifications and site conditions or any error or omission in the Drawings or Specifications shall be immediately reported to the Owner, who shall promptly correct such discrepancy, error, or omission. Any work involving such discrepancies shall be estimated by the Contractor and unit prices or lump sum amounts shall be agreed upon by the parties whenever possible before the work is done. Any work done by the Contractor involving discrepancies found by the Contractor and not reported to and without the knowledge of the Owner shall be considered as having been done at the Contractor's risk.

  
• The Owner shall be fully responsible for adequacy of the design and for sufficiency of the Drawings and Specifications. The complete requirements of the Work shall be set forth in Drawings and Specifications to be supplied by the Owner.