Forms For Suspension&Vo 09292015

PROJECT DOCUMENTATION SEMINAR-WORKSHOP
FOR PROJECT ENGINEERS & PROJECT INSPECTORS
PART IV. IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT

A. LEVEL OF AUTHORITY TO APPROVE SO/RO/TE AND VARIATION ORDER;
B. STANDARD FORMS FOR SO/RO/TE AND VARIATION ORDER;
C. TERMINATION OF CONTRACT AND BLACKLISTING OF CONTRACTOR
LEVEL OF AUTHORITY APPROVED S.O./R.O./T.E. FOR THE PROJECT

D.O. No. 54, dated October 20, 2011-the level of approval of DPWH authority to approved
time suspension/ resumption/extension for locally funded projects
D.O. No. 57, dated August 14, 2012 -Amendment to D.O. 54 s. 2011: Revised limit of
responsibilities of concerned DPWH Offices and Officials in the Approval of Time
Suspension/Resumption of Locally-Funded Civil Works Projects. Approval of Contract Time
Suspension/Resumption Order:
D.O. No. 69, dated July 23, 2013 -Amendment to D.O. 57 s. 2012 on the Approval of Time
Suspension/Resumption and Time Extension. Approval of Time Suspension/Resumption and
Time Extension:
D.O. No. 95 series of 2013- Reissuance of D.O. No. 9, S. 2011 Re: Conduct of Pre-
Procurement, Procurement and Implementation Activities for DPWH Foreign-Assisted Civil
Works Projects.
IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 1

NEW STANDARD FORMS FOR SUSPENSION/ RESUME ORDER AND TIME EXTENSION are
found in Department Order No. 100 Series of 2015
FORMAT FOR EXECUTIVE SUMMARY:
SAMPLE WEATHER CHART:

ADDITIONAL References FOR SO/RO/TE:

Sample of Minutes of Construction Engineers’ Meeting
held at Puerto Princesa City, Palawan March 20, 2014:
SAMPLE PROBLEM FOR SO/RO/TE DUE TO BAD WEATHER

SAMPLE 1:
Request for approval of contract time suspension order nos. 8 & 9/resume order nos. 8
& 9 and time extension no. 2 for concreting of Coron – Busuanga National Road, Busunga
Section, KM. 45+645 to KM. 49+916 with exception Busuanga, Palawan
Contractor: BCT Trading & Construction

(Bad weather)
Contractual data:
STRAIGHT LINE DIAGRAM:
ANALYSIS:

EXECUTIVE SUMMARY
The contractor, BCT TRADING & CONSTRUCTION, in his letters dated May 12, 2014, May
27, 2014, June 10, 2014 and October 1, 2014 requested for approval of Suspension Order
Nos. 8 & 9/ Resume Order No. 8 & 9 and Time Extension No. 2 equivalent to One
Hundred Twenty Eight (128) calendar days due to unworkable site condition brought
about by Low Pressure Area and Typhoons that hit the locality. However, the suspended
period covering Suspension/ Resume Order Nos. 3 to 7 equivalent to One Hundred Two
(102) calendar days had no approved time extension. Hence it was included in this
request for contract time extension covering a total time extension of 230 calendar days
for approval of Secretary broken down as follows:
ANALYSIS:

The Regional Director per his 2nd Undated Executive Summary stated that the Contract
Time Suspension/Resumption and Time Extension No. 2 is being requested based on the
provisions of Sub-Sections 9.3 & 10.5 of Annex E of the Revised IRR of R.A. 9184 and
Clause 47.3 (V. O. No. 1 covers January 3, 2014 to March 4, 2014) (Time Extension No. 1
for SO/RO No. 1 & 2 covers September to November 2013) of the General Conditions of
Contract, to quote “In case of total suspension or suspension of activities along the
critical path which is not due to any fault of the contractor, the Procuring Entity shall
adjust the contract time for the elapsed time between the effective order of suspending
operation and the order to resume work”… and “Extension of contract time shall be
granted for rainy/unworkable days considered unfavorable for the prosecution of the
works at the site, based on the actual conditions obtained at the site in excess of the
number of rainy / unworkable days pre-determined by the government in relation to the
original contract time… and other meritorious causes as determined by the government
authorized Engineer and approved by Procuring Entity”, unquote.
This road project was certified that no pre-determined rainy/unworkable days were
incorporated in the computation of contract duration per Certification issued by
DOMINIC G. SERRANO, Construction Division, Chief of DPWH-Region IVB.
Physical Accomplishment as of December 31, 2014

Schedule Physical Accomplishment : 100.00%
Actual Accomplishment : 100.00%
Slippage : 0%
Remarks
This request for approval of Suspension/Resume Order Nos. 8 & 9 / Time Extension No. 2
was originally forwarded by the Implementing Office per Memorandum dated December
22, 2014 addressed to Secretary Rogelio L. Singson and was returned by BOC per
memorandum dated January 27, 2015 due to necessary lacking documents. Per
compliance the request was submitted addressed to BOC Director Walter R. Ocampo on
February 12, 2015 with attached additional documents.
On the basis of the latest submitted documents as enumerated in the herein Checklist,
this Office found the request meritorious since it is beyond the control of the contractor
the delayed implementation of the project caused by bad weather condition in the
project area, and it is in accordance with the provisions as prescribed under Sub-section
9.3 & 10.5 as cited above as well as Sub-section 9.1 and 10.3 of the Annex E of Revised
IRR of R.A. 9184, to quote
Sub-Section 9.1 The procuring entity shall have the authority to suspend the work wholly
partly by written such period as may be deemed necessary, due to force majeure or any
fortuitous events… the contractor shall immediately comply with such order to suspend
the work wholly or partly.

Section 10.3 Extension of contract time may be granted only when the affected activities
fall within the critical path of the PERT/CPM network.
The requested Time Extension equivalent to Two Hundred Eight (230) calendar days
were computed based on the Project Weather Chart duly signed by the Project
Engineer, Monthly Weather Report from PAGASA and Monthly Suspension Report. The
request for approval of Suspension /Resume Order Nos. 3 to 9 equivalent to Two
Hundred Thirty (230) calendar days covering the period from November 15, 2013 to
September 30, 2014 was reduced to Two Hundred Eight (208) calendar days considering
the minimum amount of rainfall data from PAGASA of 7.5mm and the accomplishment
of 4.73% for the month of July 2014.
WEATHER CHART


Based on the approved PERT/CPM Network Diagram (Annex “3.18”), the Items of Work
affected by the suspension of work and within the critical path of the project are as follows:
Surplus Common Excavation, Sub-grade Preparation, Aggregate Sub-base Course, PCCP,
Aggregate Surface Course.
In view of the foregoing, the request for approval of Suspension Order Nos. 8 & 9 / Resume
Order No. 8 & 9 and corresponding Time Extension No. 2 including Time Extension for S.O.
No. 3-7 equivalent to Two Hundred Thirty (230) calendar days was reduced to two Hundred
Eight (208) calendar days is respectfully recommended for the Secretary’s consideration
and approval, pursuant to D.O. No. 69, Series of 2013, subject however to the condition that
the contractor will not file any monetary claim by virtue of the time extension and the
written consent of bondsmen must be submitted and the validity of the performance
security shall be correspondingly extended.
SAMPLE PROBLEM FOR SO/RO/TE DUE TO BAD WEATHER

SAMPLE 2:
Request for contract time extension no. 3 for the upgrading (gravel to concrete) along
Magpet-Nowa-Doroluman road (Doroluman Section) k1662+000 to k1664+240, Magpet
Cotobato
Contractor: Supreme Abf Construction & Construction Supply Co., Inc.
Contractual Data:
STRAIGHT LINE DIAGRAM:
ANALYSIS AND RECOMMENDATION:

EXECUTIVE SUMMARY
The request for Contract Time Extension No. 3 was returned to the Implementing Office
with comments and observations as per Memorandum of the BOC Director dated
February 2, 2015 (Annex “3.3”). In response with the said Memorandum, Regional
Director Reynaldo S. Tamayo, CESO IV forwarded a Memorandum dated February 24,
2015 (Annex “3.4”) stating that the project site is roughly 161.00km from the PAGASA
based in Cotabato City and it is mountainous with an estimated elevation above sea level
equivalent to roughly 800m where often times the project site experienced heavy rainfall
although the recorded data in PAGASA is only rain shower. Hence, dates with less than
7.5mm rainfall data are considered based on the actual unworkable site condition.
Based on the review made by this Office, the requested Contract Time Extension No. 3
with one hundred forty one (141) calendar days was reduced to twelve (12) calendar
days since only time suspension until the approved revised expiry date of March 26,
2014 was considered. Therefore, only the suspended period for the month of March
2014 was considered with a new revised expiry date of April 7, 2014. The proposed time
suspension from April 13, 2014 to September 30, 2014 were already beyond the expiry
date hence, were not considered.
 Note: Although this proposed Time Extension is found to be meritorious and in order,
the following are our comments/findings and observations, to wit:
This proposed Contract Time Extension No. 3, if approved, will have a revised expiry date
of April 7, 2014 wherein the planned/revised accomplishment of the project should be
100%. However, based on the Status Report of the Project Monitoring Division (PMD),
the actual accomplishment of the contractor as of April 30, 2014 was only 82.20%. The
project was declared 100% completed only on September 16, 2014. Pursuant to Sub-
sections 8.1 and 8.4 of Annex “E” of the Revised IRR of R.A. 9184, to quote:
Section 8.1 – “Where the contractor refuses or fails to satisfactory complete the work
within the specified contract time, plus any time extension duly granted and is hereby in
default under the contract, the contractor shall pay the procuring entity for liquidated
damages, and not by way of penalty, an amount as provided in the conditions of
contract, equal to at least one tenth (1/10) of one (1) percent of the cost of the
unperformed of the works for every day of delay.
Section 8.4 – “In case the delay in the completion of the work exceed a time duration
equivalent to ten percent (10 %) of the specified contract time plus any time extension
duly granted to the contractor, the procuring entity concerned may rescind the contract,
forfeit the contactor’s performance security and takeover the prosecution of the project
or award the same to a qualified contractor through negotiated contract.”
Therefore the contractor shall pay the corresponding liquidated damages as computed in
the amount of P1,431,081.82 (see attached BOC computation of Liquidated Damages)
but not to exceed 1/10 of the total contract cost equivalent

Liquidated Damages = (1/10) x 1% (Balance of work * contract amount) x (No. of days

extended)
Liquidated Damages = (1/10) x 1% (100%-82.2%) (49,628,305.54) x (162 days (from Apr 7
– Sep 16, 2014))
Liquidated Damages = (1/10) x 1% (17.8% x 49,628,305.54) x (162)
Total Liquidated Damages = P 1,431,081.82
The total contract duration of the project including this proposed time extension is 312
calendar days on the revised expiry date of April 7, 2014. As provided above, the project
should have been rescinded after 1/10 of the total duration or 1/10 (312) or 32 calendar
days from its expiry date which is April 7, 2014 and forfeit the contractor’s performance
security and takeover prosecution of the project or award the same to a qualified
contractor through negotiated contract. The Implementing Office should explain why the
project was not rescinded on May 9, 2014 and did not forfeit the performance security.
On the basis of the submitted documents, indicated in the checklist (Annex “3.24”), this
Office found the request for Contract Time Extension No. 2 meritorious because it is not
the fault of the contractor and beyond the control of the Implementing Office that the
bad weather condition occurred in the project site and hampered the activities within
the critical path of the project. Also, it is in accordance with the above mentioned
provisions of Sub-Sections 9.1, 9.3, 10.3 and 10.5 Annex “E” of the Revised IRR of R.A.
9184 as mentioned above and recommends approval of twelve (12) calendar days
contract time extension, broken down as follows:

SAMPLE NO. 3:
Time Extension due to Unfavorable Weather Condition
1. Contractual Data:
Name of Project : CP-IV, Calape-Buenavista Section Bohol Circumferential

Road
Location : Province of Bohol, Philippines
Original Contract Cost : P279,596,873.80
Original Contract Duration : 730 cal. days
Contractor : F.T. SANCHEZ/SOCCOR (J.V.)
Contract Effectivity Date : 01 February 1997
Contract Expiry Date : 31 January 1999
2. Action Requested:
Approval of time suspension request due to ordinary rainy/inclement weather condition
covering the period from 21 January 1998 to 20 April 1998 (selective) or a total of 34 cal.
days.
3. Given Conditions:
a) The predetermined unworkable days of 160 cal. days considered during the
estimation of contract time has been fully utilized as of 30 November 1997 as
certified by the Project Engineer (Government).
b) All supporting documents are hereto attached.
c) There were no previously approved time suspension/extension.
4. Evaluation:
Period covered by the suspension: 21 January 1998 to April 20, 1998:

January 22,26,30,31 - 4 cal. days

February 01,02,03,09,10,12,16,17,18,19,23,26 - 12 cal. days

March 02,03,04,05,15,16,17,26,28 - 9 cal. days
April 03,04,05,07,08,09,12,18,20 - 9 cal. days
Total 34 cal. days
Determine the actual working days which became unworkable due to weather condition.
January 22,26,30,31 - 4 cal. days
February 01,02,03,09,10,12,16,17,18,19,23,26 - 11 cal. days
March 02,03,04,05,15,16,17,26,28 - 8 cal. days
April 03,04,05,07,08,09,12,18,20 - 6 cal. days
Total 29 cal. days
Conversion from the working days to calendar days (W.D. to C.D.) from the proposed time
extension to consider Sundays and holidays:
1999
February 24 W.D. 28 C.D.
March 5 W.D. Say 5 C.D.
--------- ---------
28 W.D. 33 C.D.
Period covered by the proposed time extension in lieu of work suspension from February 22
to April 20, 1998 (intermittent) is February 1, 1999 to March 5,1999.
Therefore the total number of days recommended for contract time extension is 33 calendar
days due to rainy/unworkable days, thus revises the expiry date of the contract from January
31, 1999 to March 5, 1999.
Observations/Issues/Concern on Processing of SO/RO/TE

ISSUES AND CONCERNS in the Processing of Request for Contract Time Suspension/
Extension:
SAMPLE DOCUMENTS FOR QUIT CLAIM AND SWORN


CHECKLIST OF SUPPORTING DOCUMENTS AS PER D.O. 52 S. OF 2012



STANDARD FORMS USED IN VARIATION ORDER

VARIATION ORDER


PROCEDURES FOR EVALUATION AND REFERENCES FOR VARIATION ORDER:
VO/FINAL VO
Variation Order generally originates from the request of the Contractor or as a request from
the DPWH seeking a change to the existing contract. It is a written agreement authorizing
an addition, deletion or revision in the work and/or time of completion within the limits of
the contract after it has been executed. It is a specific type of contract modification that
does not go beyond the general scope of the existing contract.
Final Variation Order - A final quantification of work accomplished conducted by a joint

inspection between the contractor and engineers from the implementing office. A final
variation order is issued if the project have been previously issued with a change
order/extract work order.
1. VARIATION ORDERS
 CHANGE ORDER/EXTRA WORK ORDER
1.1. Variation Orders may be issued by the procuring entity to cover any of the following:
 increase/decrease in quantities, including the introduction of new work items that
are NOT INCLUDED IN THE ORIGINAL CONTRACT or
 reclassification of work items that are either due to change of plans, design or
alignment to suit actual field conditions resulting in disparity between the
preconstruction plans used for purposes of bidding and the "AS STAKED PLANS" or

construction drawings prepared after a joint survey by the contractor and the
Government after award of the contract,
 provided that the cumulative amount of the positive or additive Variation Order
DOES NOT EXCEED TEN PERCENT (10%) of the original contract price.
 The addition/deletion of works under Variation Orders should be within the general
scope of the project as bid and awarded. THE SCOPE OF WORKS SHALL NOT BE
REDUCED so as to accommodate a positive Variation Order.
A Variation Order may either be in the form of either a change order or extra work order.
1.2. A CHANGE ORDER may be issued by the implementing official to cover any increase OR
decrease in quantities of original work items in the contract.
1.3. An EXTRA WORK ORDER may be issued by the implementing official to cover the
introduction of new work necessary for the completion, improvement or protection of
the project which was not included as items of work in the original contract...
1.4. Any cumulative positive Variation Order beyond ten percent (10%) of the original
contract price shall be subject of another contract to be bid out if the works are
separable from the original contract.
In exceptional cases where it is urgently necessary to complete the original scope of work,
the Head of the Procuring Entity may authorize a positive variation order that will make the
cumulative value of the positive Variation Orders go beyond ten percent (10%) but not more
than twenty percent (20%) of the original contract price, subject to the guidelines to be
determined by the GPPB.
Provided, however, that appropriate sanctions shall be imposed on the designer, consultant
or official responsible for the original detailed engineering design which failed to consider
the Variation Order beyond ten percent (10%).
1.5. In claiming for any Variation Order, the contractor shall, within seven (7) calendar days
after such work has been commenced or after the circumstances leading to such
condition(s) leading to the extra cost, and within twenty-eight (28) calendar days deliver a
written communication giving full and detailed particulars of any extra cost in order that it
may be investigated at that time.
Failure to provide either of such notices in the time stipulated shall constitute a waiver by
the contractor for any claim. The preparation and submission of Variation Orders are as
follows:

2. ADDITIONAL/EXTRA WORK COSTING
2.1. For Variation Orders, the contractor shall be paid for additional work items whose unit
prices shall be derived based on the following:
a) For additional/extra works duly covered by Change Orders involving work items
which are exactly the same or similar to those in the original contract, the
applicable unit prices of work items original contract shall be used.
b) For additional/extra works duly covered by Extra Work Orders involving new work
items that are not in the original contract, the unit prices of the new work items shall
be based on the direct unit costs used in the original contract (e.g. ,unit cost of
cement, rebars, form lumber, labor rate, equipment rental, etc.).
All new components of the new work item shall be fixed prices, provided the same is
acceptable to both the Government and the contractor, and provided further that the
direct unit costs of new components shall be based on the contractor's estimate as
validated by the procuring entity concerned via documented canvass in accordance with
existing rules and regulations.
The direct cost of the new work item shall then be combined with the mark-up factor
(i.e., taxes and profit) used by the contractor in his bid to determine the unit price of the
new work item.
PROCEDURES FOR EVALUATION

The Two-Step Processing Procedure
The processing of variation orders consists of a two-step procedure wherein a request

for prior clearance/authority to issue Variation Order must first be submitted so that the
technical viability of the revisions can be studied including the legal basis into which it is
going to be anchored. If such clearance is approved (D.O. 04, S. 2012), the Variation
Order Proper may be given its due course.
Request for Prior Clearance/Authority to Issue Variation Order
The purpose of the request for prior clearance/authority to issue Variation Order is to
serve as an “annuncio” to the approving official about the need for the additional
works/variations. The clearance should however not be taken as an outright approval for
the variation order. As this is considered to be a preliminary stage of the procedure in
the preparation of the variation order proper, it consists of TENTATIVE INFORMATION AS
TO COST and contains the TECHNICAL JUSTIFICATION and LEGAL BASIS to which reason,
the variation order is being proposed.

Elements of Variation Order

A Variation Order should specify and include the following:
a) Identification of Variation Order

b) Description of Change – scope of change
c) Reasons for Change – justification
d) Change of contract price – cost/effect of variation order
e) Change of contract time – addition/deletion of contract time
f) Approval of owner and conformity of the contractor
EVALUATION PROCEDURES
Brief Overview of the Evaluation Process:
1. Documents Examination - evaluation of documents should be in accordance with the

following:
a) Completeness of supporting documents as per Checklist provided in D.O. 52, Series

of 2012 and/or other necessary documents to serve as proof in the requested
suspension/extension of time.
b) The claim should be properly presented, justified and must comply to applicable
provisions of the contract, construction laws and rules and relevant issuances of the
department (R.A. 9184, FIDIC, D.O. 54, series 2012, D.O. 52, Series 2012, and D.O. 95
Series 2013)
c) Authenticity of all supporting documents
2. Quantification- The quantification of the proposed contract time extension if any is a

combination of mathematical and graphical analysis.
3. Review costing – Based on the existing condition of contract, RA 9184 and FIDIC and
applicable issuances.
REFERENCES FOR VARIATION ORDER
I. PROCEDURES FOR EVALUATION

A. Request for Prior Clearance/Authority to Issue Variation Order
B. Variation Proper
II. REFERENCES FOR PROCESSING VARIATION ORDER

A. Revised IRR of R.A 9184
B. Department Order No. 28, Series of 2015
C. Department Order No. 95 , Series of 2013
D. Department Order No. 52 , Series of 2012
E. Department Order No. 47, Series of 2012

F. Department Order No. 04, Series of 2012

G. Department Order No. 54 , Series of 2011
H. Condition of Contract
LEVELS OF AUTHORITY
D.O. No. 54, Series of 2011 – Revised Limits of Responsibilities and Authorities of Concerned
DPWH Offices and Official in the Conduct of Pre-Procurement, Procurement, and
Implementation Activities for DPWH Locally – Funded Civil Works Projects.
D.O. No. 95, Series of 2013 – Reissuance of D.O. No. 9, Series of 2011 RE: Conduct of Pre-
Procurement, Procurement, and Implementation Activities for DPWH Foreign Assisted Civil
Works Projects.
D.O. NO. 52, Series of 2012 – Implementation of the Document Tracking System (DoTS) for
Civil Works Projects
- Checklist -
a) Variation Order
b) Pre – Clearance
c) Prescribed Time for Prior Clearance
d) Prescribed Time for Change Order/ Extra Work Order
e) Prescribed Time for Final Variation Order
D.O. No. 47, Series of 2012 – Authority to Approved Variation Order Covering Additional
scope of Works Utilizing Savings for Locally – Funded Projects.

D.O. No. 04, Series of 2012 – Delegating the Approval of Prior Clearance from the Secretary
to issue Variation Orders of Locally – Funded Civil Works Projects
D.O. 47, S. 2012 SUBJECT: AUTHORITY TO APPROVE VARIATION ORDER COVERING

ADDITIONAL SCOPE OF WORKS UTILIZING SAVINGS FOR
LOCALLY-FUNDED PROJECTS
In order to accelerate the implementation of DPWH locally-funded projects, the approval of

Variation Order (VO) covering additional scope of works utilizing project savings is hereby
delegated to the Regional Director for projects costing above P 50 million but not more than
P 150 million. For projects costing over P 150 million, the approval of said VO is delegated to
the Undersecretary for Technical Services.
Additional scope of works refers to works outside but contiguous to the original project
limits. The approval of VO covering addition/deletion of works within the original project
limits and the additional scope of works shall still be in accordance with Department Order
No. 54, series of 2011. The cumulative amount of the positive or additive VO shall not
exceed ten percent (10%) of the original contract price pursuant to the Implementing Rules
and Regulations of R.A. No. 9184.
This Order amends pertinent provisions of Department Order No. 54, series of 2011 and
shall take effect immediately.
D.O. 04, S. of 2012 SUBJECT : DELEGATING THE APPROVAL OF PRIOR

CLEARANCE FROM THE SECRETARY TO ISSUE
VARIATION ORDERS OF LOCALLY-FUNDED CIVIL
WORKS PROJECTS
In line with our continuing effort to simplify operating procedures and expedite the
implementation of projects, approval of requests for prior clearance from the Secretary to
issue Variation Orders on locally-funded Civil Works projects undertaken by Regional and
District Engineering Offices, is hereby delegated to Regional Directors.
It is understood, however, that Variation Orders shall still be processed and approved
following existing procedures and prescribed levels of authorities. Likewise, pursuant to the
Implementing Rules and Regulations of R.A. No. 9184, the cumulative amount of the positive
or additive Variation Order shall not exceed ten percent (10%) of the original contract price.
This Order amends pertinent provisions of D.O. No. 12, series of 2009, and takes effect
immediately.
D.O. 28, Series of 2015 – SPECIFIC GUIDELINES TO MANAGE AND CONTROL VARIATION
ORDERS FOR DPWH INFRASTRUCTURE CONTRACTS
To reduce the incidence and improve the management of Variation Orders (VOs) for
infrastructure contracts undertaken by the DPWH, all concerned are hereby directed to
observe the following guidelines in relation to the provisions of Annex E (Contract

Implementation Guidelines for the Procurement of Infrastructure Projects) of the

Implementing Rules and Regulations(IRR) of Republic Act (RA) No. 9184:
a) Detailed Engineering must be adequately undertaken according to established

standards for surveys and designs with a degree of accuracy that will permit
estimates of quantities to be within plus or minus five to ten percent (5-10%) of the
final quantities.
b) Before procurement, the Implementing Office (IO) shall ensure that the detailed
engineering plans for the contract, especially if prepared more than one year ago, are
properly updated to reflect current physical conditions.
c) Upon the issuance by the DPWH of the Notice to Proceed (NTP) for a contract, the
Implementing Office shall provide the contractor an electronic/soft copy of the
approved plans for the project to facilitate the preparation by the contractor of as-
staked plans. Any disparity between the as-staked plans and the approved plans may
serve as the basis for the initial VO.
d) Pursuant to the provisions of Section 1.1, Annex E of RA9184-IRR, a deductive VO
may be allowed only if it would not significantly impair the functionality of the
original design, i.e., it must not reduce the size of the facility by more than ten
percent (10%) of the original scope (e.g. shortening of road length) or must not make
the facility unsafe (e.g., removal of guard rails) or structurally unstable (e.g., removal
of a column) or unusable (e.g., removal of an abutment).
e) Pursuant to the provisions of Section 1.5, Annex E of RA9184-IRR, the 10 shall see to
it that, within seven (7) calendar days after emergency work under a proposed VO
has commenced, or within twenty eight (28) calendar days after the circumstances
for an extra cost have occurred, the contractor must deliver a notice for the claim of
a VO so that the IO may investigate and process the VO if justifiable. Failure by the
contractor to deliver such notice on time shall constitute a waiver by the contractor
for any claim. The IO shall not allow the contractor to "accumulate" claims for VOs
before submitting them to the IO for investigation and processing.
f) The processing by the IO of VOs from its preparation to approval shall not exceed
thirty (30) calendar days.
Failure of the concerned DPWH personnel to implement the provisions of this Order shall,
after due process, make them liable to the penalties prescribed for violation of reasonable
office rules and regulations in Section 52, C(3) of Civil Service Resolution No. 991936 dated
August 31, 1999, otherwise known as the Uniform Rules on Administrative Cases in the Civil
Service - i.e.: 1st offense - Reprimand; 2nd offense - Suspension for 1-30 days; and 3rd
offense - Dismissal.
Observations/Issues/Concerns on Processing of Variation Order:

GROUNDS FOR TERMINATION OF CONTRACT
A. Termination for Default

In contracts for Infrastructure Projects:
 The Procuring Entity shall terminate a contract for default when any of the following
conditions attend its implementation :
a) Due to the Contractor’s fault and while the project is on-going, it has incurred
negative slippage of fifteen percent (15%) or more in accordance with P.D.
1870
b) Due to the Contractor’s fault and after the contract time has expired, it has
incurred a negative slippage of ten percent (10%) or more in the completion
of the work; or
c) The Contractor:
i. abandons the contract works, refuses or fails to comply with a valid
instruction of the Procuring Entity or fails to proceed expeditiously and
without delay despite a written notice by the Procuring Entity;
ii. does not actually have on the project site the minimum essential
equipment listed on the Bid necessary to prosecute the Works in
accordance with the approved work plan and equipment deployment
schedule as required for the project;
iii. does not execute the Works in accordance with the contract or
persistently or flagrantly neglects to carry out its obligations under the
contract;

iv. neglects or refuses to remove materials or to perform a new work that

has been rejected as defective or unsuitable; or
v. sub-lets any part of the contract works without approval by the
Procuring Entity.
B. Termination for Convenience

 The Procuring Entity may terminate the Contract, in whole or in part, at any time for
its convenience. The Head of the Procuring Entity may terminate a contract for the
convenience of the Government if he has determined the existence of conditions
that make Project Implementation economically, financially or technically impractical
and/or unnecessary, such as, but not limited to, fortuitous event(s) or changes in law
and national government policies.
C. Termination for Insolvency

 The Procuring Entity shall terminate the contract if the Supplier/Contractor/
Consultant is declared bankrupt or insolvent as determined with finality by a court of
competent jurisdiction. In this event, termination will be without compensation to
the Supplier/Contractor/Consultant, provided that such termination will not
prejudice or affect any right of action or remedy which has accrued or will accrue
thereafter to the Procuring Entity and/or the Supplier/Contractor/Consultant.
D. Termination for Unlawful Acts

 The Procuring Entity may terminate the contract in case it is determined prima facie
that the Supplier/Contractor/Consultant has engaged, before or during the
implementation of the contract, in unlawful deeds and behaviors relative to contract
acquisition and implementation. Unlawful acts include, but are not limited to, the
following:
a) Corrupt, fraudulent, collusive and coercive practices;
b) Drawing up or using forged documents;
c) Using adulterated materials, means or methods, or engaging in production
contrary to rules of science or the trade; and
d) Any other act analogous to the foregoing.
E. Termination by Contractor/Consultant
In contracts for Infrastructure Projects:
 The Contractor may terminate its contract with the Procuring Entity if the works are
completely stopped for a continuous period of at least sixty (60) calendar days
through no fault of its own, due to any of the following reasons:

a) Failure of the Procuring Entity to deliver, within a reasonable time, supplies,

materials, right-of-way, or other items it is obligated to furnish under the terms
of the contract; or
b) The prosecution of the work is disrupted by the adverse peace and order
situation, as certified by the Armed Forces of the Philippines Provincial
Commander and approved by the Secretary of National Defense.
SANCTIONS AND GROUNDS FOR BLACKLISTING (as per D.O. 39 S. 2015)
In the Contract Implementation Stage,

Reasons include but not limited to the following:
a) Failure of the contractor, due solely to his fault or negligence, to mobilize and start
work or performance within the specified period in the Notice to Proceed (“NTP”);
b) Failure by the contractor to fully and faithfully comply with its contractual obligations
without valid cause, or failure by the contractor to comply with any written lawful
instruction of the procuring entity or its representative(s) pursuant to the
implementation of the contract. For the procurement of infrastructure projects or
consultancy contracts, lawful instructions include but are not limited to the following:
i. Employment of competent technical personnel, competent engineers and/or
work supervisors;
ii. Provision of warning signs and barricades in accordance with approved plans
and specifications and contract provisions;
iii. Stockpiling in proper places of all materials and removal from the project site
of waste and excess materials, including broken pavement and excavated
debris in accordance with approved plans and specifications and contract
provisions;
iv.Deployment of committed equipment, facilities, support staff and manpower;
and
v. Renewal of the effectivity dates of the performance security after its
expiration during the course of contract implementation.
c) Assignment and subcontracting of the contract or any part thereof or substitution of

key personnel named in the proposal without prior written approval by the procuring
entity.
d) For the procurement of infrastructure projects, poor performance by the contractor

or unsatisfactory quality and/or progress of work arising from his fault or negligence
as reflected in the Constructor's Performance Evaluation System (“CPES”) rating sheet.
In the absence of the CPES rating sheet, the existing performance monitoring system
of the procuring entity shall be applied. Any of the following acts by the constructor
shall be construed as poor performance:

i. Negative slippage of 15% and above within the critical path of the project due
entirely to the fault or negligence of the contractor; and
ii. Quality of materials and workmanship not complying with the approved
specifications arising from the contractor's fault or negligence.
iii. Willful or deliberate abandonment or non-performance of the project or
contract by the contractor resulting to substantial breach thereof without
lawful and/or just cause.
In addition to the penalty of suspension, the performance security posted by the contractor
shall also be forfeited.

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PROJECT DOCUMENTATION SEMINAR-WORKSHOP

FOR PROJECT ENGINEERS & PROJECT INSPECTORS

PART IV. IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT

LEVEL OF AUTHORITY APPROVED S.O./R.O./T.E. FOR THE PROJECT

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 1

FORMAT FOR EXECUTIVE SUMMARY:

SAMPLE WEATHER CHART:

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 2

ADDITIONAL References FOR SO/RO/TE:

SAMPLE PROBLEM FOR SO/RO/TE DUE TO BAD WEATHER

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 3

Contractor: BCT Trading & Construction

STRAIGHT LINE DIAGRAM:

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 4

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 5

Physical Accomplishment as of December 31, 2014

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 6

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 7

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 8

SAMPLE PROBLEM FOR SO/RO/TE DUE TO BAD WEATHER

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 9

STRAIGHT LINE DIAGRAM:

ANALYSIS AND RECOMMENDATION:

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 10

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 11

Liquidated Damages = (1/10) x 1% (Balance of work * contract amount) x (No. of days

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 12

Time Extension due to Unfavorable Weather Condition

Name of Project : CP-IV, Calape-Buenavista Section Bohol Circumferential

Period covered by the suspension: 21 January 1998 to April 20, 1998:

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 13

February 01,02,03,09,10,12,16,17,18,19,23,26 - 12 cal. days

Observations/Issues/Concern on Processing of SO/RO/TE

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 14

SAMPLE DOCUMENTS FOR QUIT CLAIM AND SWORN

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 15

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 16

CHECKLIST OF SUPPORTING DOCUMENTS AS PER D.O. 52 S. OF 2012

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 17

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 18

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 19

STANDARD FORMS USED IN VARIATION ORDER

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 20

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 21

PROCEDURES FOR EVALUATION AND REFERENCES FOR VARIATION ORDER:

Final Variation Order - A final quantification of work accomplished conducted by a joint

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 22

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 23

2. ADDITIONAL/EXTRA WORK COSTING

PROCEDURES FOR EVALUATION

The processing of variation orders consists of a two-step procedure wherein a request

Request for Prior Clearance/Authority to Issue Variation Order

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 24

Elements of Variation Order

a) Identification of Variation Order

1. Documents Examination - evaluation of documents should be in accordance with the

a) Completeness of supporting documents as per Checklist provided in D.O. 52, Series

c) Authenticity of all supporting documents

2. Quantification- The quantification of the proposed contract time extension if any is a

REFERENCES FOR VARIATION ORDER

I. PROCEDURES FOR EVALUATION

II. REFERENCES FOR PROCESSING VARIATION ORDER

IMPORTANT DOCUMENTS FOR CONTRACT MANAGEMENT Page | 25