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The term “Structural Defects” shall mean major faults/flaws/deficiencies in one or more key
structural elements of the completed elements of the project which may lead to structural failure
of the completed elements or structure.

The term “Structural Failures” is defined as an occurrence where one or more key structural
elements in an infrastructure facility fails or collapses, thereby rendering the facility or part thereof
incapable of withstanding the design loads, and/or endangering the safety of the users or the
general public.

In cases of structural defects/failure occurring during the applicable warranty period, the
Government shall undertaken the necessary restoration or reconstruction works and shall be
entitled to full reimbursement by the parties found to be liable, of expenses incurred therein upon
demand, without prejudice to filling of appropriate administrative, civil, and/or criminal charges
against the responsible persons as well as the forfeiture of warranty securities posted in favor of
the Government.

Bidding of Provincial Projects

Within five (5) years from the effectively of the Act, a contractor who participates in the bidding of
provincial priority programs and infrastructure projects whose principal office is within the same
province, and who submits the Lowest Calculated Bid made by a contractor with principal office
outside the said province, shall be given forty-eight (48) hours from the receipt of written advice
from the BAC to match in writing the Lowest Calculated Bid. Matching shall be through appropriate
adjustments in his unit bid prices without changing the Scope of Work and work items prescribed
by the procuring entity in the bidding documents.

The release of funds for said projects shall be published in a local newspaper with the widest
circulation and posted at any conspicuous place reserved for the purpose in the premises of the
procuring entity and posted continuously in the website of DBM and the G-EPS DURING THE
SAME PERIOD OF THE ADVERTISEMENT AND POSTING OF THE Invitation Apply for
Eligibility and to Bid under Section 21 of this IRR.

CONTRACT IMPLEMENTATION

Variation Orders – are change orders or extra work orders which should not be exceed 10% of
the original project cost.

Variation Orders beyond 10% shall be subjected to another contract to be bid if the works are
separable from the original contract or if urgently necessary to complete the original scope of
work, be authorized by the head of the procuring entity but not more than 20% subject guidelines
by the GPPB, but with appropriate sanctions to the designer, consultant or official responsible for
the original design.

Supplemental agreement is no longer allowed.

Liquidated Damages shall be imposed for delays in completion of work but “Incentive Bonus” shall
not be allowed.