AUDITORIAL REVIEW CHECKLIST FOR CONTRACTS
NAME OF AGENCY
: National Historical Commission of the Philippines
CONTRACT ID No.
:
SARO/SAA No.
:
NAME OF PROJECT
: Restoration of Cape San Agustin Lighthouse
LOCATION
: Governor Generoso, Davao Oriental
NAME OF CONTRACTOR
: FFJJ Construction
CONTRACT AMOUNT
: P6,007,704.85
REVISED AMOUNT:
CONTRACT TIME
: 180 days
DATE OF APPROVAL
: July 31, 2018
DATE OF EFFECTIVITY
: July 31, 2018
CONTRACT AWARDED THRU
: ( ) PUBLIC BIDDING
( ) SEALED BIDDING
AUDITORIAL REVIEW CONDUCTED BY :
PARTICULARS
YES
NO
A. ORIGINAL CONTRACT
a. Is the contract submitted to the auditing unit within five (5) working days after perfection 
thereof?
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b. Are the following documents comprising the contract and its supporting papers attached?
(Indicate whether original or authenticated copy)
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1. Duly approved Contract/Agreement
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2. General Conditions of Contract
3. Special Conditions of Contract
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4. Approved Plans/Drawings
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5. Technical Specifications, if applicable
6. Bidding Documents:
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a. Invitation to Bid
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b. Instruction to Bidders
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c. Bid Data Sheet
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d. Eligibility Requirements
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e. Terms of Reference
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7. Addenda and/or Supplemental Bid Bulletins, if any
8. Performance Security/Bond
( ) NEGOTIATED PROCUREMENT
REMARKS
9. Credit line issued by a licensed bank which shall be at least equal to ten percent of the ABC
10. Notice of Award of Contract and winning bidder's "Conforme" thereto, with date of
conforme
11. Other contract documents that may be required by existing laws, and/or procuring entity
concerned
12. Approved Budget for the Contract
13. Detailed Breakdown of the Approved Budget for the Contract
14. Certificate of Availability of Funds
15. Copy of Approved PERT/CPM Network Diagram which shall be color-coded and with
detailed computation of contract time
16. Duly Approved Program of Work and Detailed Estimates
17. Abstract of Bids
18. Minutes of Opening of Bids
19. Minutes of Pre-Procurement Conference
20. Minutes of Pre-Bid Conference
21. Minutes of Post-Qualification
22. Outline/Checklist of Bid Evaluation Report (opening of bids)
23. Outline/Checklist of Bid Evaluation Report (evaluation of bids)
24. Notice of Post-Qualification to bidder with the lowest calculated bid, including proof of
receipt by the said bidder
25. Outline/Checklist of Post-Qualification
26. Post-Qualification Report
27. BAC Resolution recommending award
28. Notice to Proceed with date of receipt by the contractor
29. Contract was approved by the Department Secretary except for contracts required by law to
be acted upon and/or approved by the President (Sec 8, EO 109 as amended by EO 109A)
30. Certifications issued by the concerned Department Secretary; Head of the Bureau, Office
or Agency, that the contract is in accordance with all existing laws, rules and
regulations
(Sec 8, EO 109 as amended by EO 109A)
31. Certification that officials are authorized to enter into negotiated procurement (Sec 53, IRRA, RA 9184)
32. Deviations, if any, on Terms of Reference vis-à-vis provisions of contract
33. Other contract documents that may be required by existing laws, and/or the procuring entity
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N/A
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concerned such as the Contractor’s All Risks Insurance Policy; Contract Profile for
Eligibility Processing Results
c. Is the contract approved by authorized agency officials?
d. Is the contract signed by the Chief Accountant as witness?
e. Is concurrence/approval of other officials/agencies obtained, where necessary?
f. Is there no splitting of contracts (Section 54.1, IRR-A, RA 9184)?
g. Is the contract amounting to at least P300M submitted to NEDA through its Director-General
within 7 calendar days (cd) from the date of signing and/or approval thereof (Sec 10, EO 109)?
PROCUREMENT PLANNING
a. Does the procuring agency prepare for each individual project, a Project Procurement
Management Plan (PPMP) which includes the following:
1. the type of contract to be employed
2. the extent/size of contract scopes/packages
3. the procurement methods to be adopted
4. the time schedule for each procurement activity
5. the estimated budget for the general components of the contract?
b. Does the BAC Secretariat of the procuring agency maintain and update an Annual Procurement
Plan for all its procurement which is a consolidation of the PPMPs?
c. Are the PPMPs and APPs updated every six months or as often as may be required by the head of
the procuring entity?
d. Is the implementation of any project not allowed if it is not included in the procuring entity’s
APP?
e. Is there no bidding and award made of the contract for infrastructure projects unless the detailed
engineering investigations, surveys and designs, including the acquisition of the Right-of-Way
for the project have been sufficiently carried out and duly approved in accordance with the
standards by the head of the procuring entity?
BIDDING PROCESS
 Advertisement/Call for Bid
1. For every contract with an ABC of more than P5M
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a. Is the "Invitation to Apply for Eligibility and to Bid" advertised at least once in a 
newspaper of general circulation which has been regularly published for at least 2
years?
b. Is the "Invitation" posted continuously in the website and the G-EPS for 7 cd starting on 
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the date of the newspaper advertisement?
c. Is the "Invitation" posted at any conspicuous place reserved for the purpose, in the
premises of the procuring entity concerned for 7 cd, if applicable, as certified by the
head, BAC Secretariat?
2. For every contract with an ABC of P5M or less
a. Is the "Invitation to Apply for Eligibility and to Bid" posted continuously in the website
and the G-EPS during the maximum 7 cd?
b. Is the "Invitation" posted at any conspicuous place in the premises, for the same cd, as
certified by the head, BAC Secretariat?
 Submission of Letter of Intent
a. Is the Letter of Intent together with the application for eligibility received by the BAC not
later than 7 cd from the last date of posting of the IAEB together with the Contractors’
Registration Certificate (DPWH National Registry of Contractors)?
b. Is the Certificate current and updated?
c. Is the Contract Profile for Eligibility Processing also submitted?
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Eligibility Check
a. Are the following documents submitted to the BAC to determine the eligibility of the
contractor?
1. Class “A” Documents
Legal Documents
a) DTI business name registration or SEC Registration Certificate
b) Valid & current Mayor’s permit/municipal license
c) Taxpayer’s Identification Number
d) Statement that the Contractor is not blacklisted from bidding including his
non-inclusion in the Consolidated Blacklisting Report issued by the
Government Procurement Policy Board (GPPB)
e) Other appropriate licenses required by the procuring entity including Tax
Returns & Tax Clearance Certificate per EO 398 s. of 2005
f) Certificate of G-EPS Registration
g) Statement by prospective bidder of all its on-going and completed government
and private contracts within the relevant period, where applicable, including
contracts awarded but not yet started, if any.
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N/A
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h) Valid Philippine Contractors Accreditation Board (PCAB) license and
registration for the type and cost of contract to be bid
i) Statement by the prospective bidder of the availability of key personnel such as
project managers, project engineers, materials engineers and foremen; and,
equipment that he owns, has under lease and/or has under purchase
agreements that may be used for construction contracts.
Financial Documents
a) Audited Financial Statements stamped “Received by BIR” for the immediately
preceding year
b) The prospective bidder’s computation for its Net Financial Contracting
Capacity (NFCC) in accordance with Section 23.11 of the IRR-A; or a
commitment from a licensed bank to extend to it, a credit line if awarded the
contract to be bid, or a cash deposit certificate, which shall be at least equal to
ten (10%) percent of the ABC
2. Class “B” Documents
a) Valid Joint Venture Agreement, in case of joint venture
b) Letter authorizing the BAC or its duly authorized representative to verify any or
all of the documents submitted for eligibility check
b. Is a certification under oath submitted by the prospective bidder or its duly authorized
representative that each of the documents submitted in satisfaction of the eligibility
requirements, is an authentic and original copy, or a true and faithful reproduction or copy
of the original, complete, and that all statements and information provided therein are true
and correct?
c. Does the entire process of eligibility check for the procurement of infrastructure projects not
exceed three (3) cd ?
d. Are the following eligibility criteria used by the procuring entity in determining the eligible
bidders?
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1. As to persons/entities allowed to participate –
a) should be duly licensed Filipino citizens/sole proprietorships;
b) partnerships organized under Philippine laws of which at least 75% of the
interest belonging to Filipino citizens;
c) corporations organized under Philippine laws of which at least 75% of the
outstanding capital stock belongs to Filipino citizens;
d) persons/entities forming into a joint venture provided that Filipino interest
shall be at least 75%; joint venture in which Filipino interest is less than 75%
may be eligible where the structures to be built require
techniques/technologies which are not adequately possessed by an entity
meeting the 75% Filipino ownership requirement provided finally that
Filipino ownership in the latter case shall not be less than 25%
e) Cooperatives duly registered with CDA.
2. Those persons/entities enumerated above may participate provided they may only 
engage in the constructing business or act in the capacity of contractors for the
project involved if they were issued license by Philippine Contractors
Accreditation Board (PCAB) to so engage or act.
3. The value of the prospective bidder’s largest single completed contract adjusted to
current prices using the NSO’s consumer price indeces must be at least 50% of the
ABC to be bid. In the case of contractors under Small A and Small B categories
without similar experience on the contract to be bid, they may be allowed to bid if
the cost of contract is not more than fifty percent (50%) of the Allowable Ranges
Contract Cost (ARCC) of his registration. The classification of contractors shall
be based on PCAB Guidelines.
4. The Constructor’s Performance Evaluation System (CPES) rating and/or certificate
of completion and owner’s acceptance of the contract must be satisfactory.
5. The prospective bidder must present a commitment from a licensed bank to extend
to it a credit line if awarded the contract to be bid or a cash deposit certificate in
an amount which shall be at least equal to ten (10%) of the ABC to be bid.
e. Does the BAC determine the eligibility by examining the completeness of each
prospective bidder’s requirements against a checklist, using a non-discretionary
“pass/fail” criteria and is determined as either “eligible” or “non-eligible”?
f. Is the prospective bidder who submits the required specific eligibility document rated
“passed” for the particular requirement?
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g. Is the prospective bidder who fails to submit a requirement or whose requirements are
incomplete considered “failed”?
h. Are markings made on the set of eligibility documents for those which are considered
“eligible” and “ineligible” as the case maybe? Are markings countersigned by the
BAC chairperson or the duly designated authority?
i. Are those eligible prospective bidders and those ineligible informed of the results
accordingly?
j. Are those found ineligible given three (3) cd upon receipt of the written notice or if
present during the opening of the eligibility requirements, upon verbal notification,
within which to file a request for reconsideration?
Pre-bid Conference
a. Is a pre-bid conference conducted to clarify any of the requirements, terms, conditions
and specifications on contracts to be bid with an approved budget of one (1) million
or more?
b. Is the conference held at least twelve (12) cd before the deadline for the submission
and receipt of bids?
c. Are the minutes of the pre-bid conference recorded and made available to all
participants not later than three (3) cd after the pre-bid conference?
d. Are requests for clarifications on any part of the bidding documents made in writing
and submitted to the BAC at least ten (10) cd before the deadline set for the
submission and receipt of bids?
e. Does the BAC respond to the said request by issuing a Supplemental/Bid Bulletin,
duly signed by the BAC chairman at least seven (7) cd before the deadline for the
submission and receipt of bids?
f. Is the Supplemental/Bid Bulletin also posted on the website of the procuring entity, if
available, and on the G-EPS?
Submission and Receipt of Bids
a. Are bids submitted in the prescribed Bid Form, including its annexes, on or before the
deadline, in two (2) separate sealed bid envelopes?
b. Are eligibility requirements and bids submitted after the deadline, not accepted by the
BAC?
c. Does the first envelope (Technical Proposal) contain the following documents, at the
least:
1.
Bid Security as to form, amount and validity period
Form of Security
1. Cash, Certified check, cashier’s
check, manager’s check, bank
draft or irrevocable letter of credit
2. Bank Guarantee
3. Surety Bond
4. Foreign government guarantee
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Minimum Amt. in % of
Approved Budget for the
Contract to Bid Bid
One (1%)
One and a half percent (1-1/2%)
Two and a half percent (2-1/2%)
One hundred percent (100%)
Authority of the signing official
Construction schedule and S-curve
Manpower schedule
Construction methods
Organizational chart for the contract to be bid
List of contractor’s personnel to be assigned to the contract to be bid with
qualifications and experience data
List of contractor’s equipment units, which are owned, leased and/or under
purchase agreements, supported by certification of availability from the
lessor/vendor for the duration of the project
Equipment utilization schedule
Affidavit of site inspection
Commitment from a licensed bank to extend to the bidder, a credit line if
awarded the contract to be bid, or a cash deposit certificate, in an amount no
lower than that set by the procuring entity, which shall be at least equal to ten
(10%) percent of the approved budget for the contract to be bid, provided,
however, that if the bidder previously submitted this document, that said
previously submitted document shall suffice
Construction safety and health program of the contractor
Certificate from the bidder under oath of its compliance with existing labor
laws and standards
14.
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A sworn statement attesting compliance to the responsibilities of a prospective
or Eligible Bidder as provided in Sec 17.7 of the IRR-A, as follows:
a) Having taken steps to carefully examine all the bidding documents
b) Having acknowledged all conditions, local or otherwise, affecting the
implementation of the contract
c) Having made an estimate of the facilities available and needed for the
contract to be bid
d) Having complied with his responsibility as provided for under Sec
22.5.1
15.
A sworn affidavit of compliance with the Disclosure Provision under Section
47 of the Act in relation to other provisions of R. A. 3019
16.
Documents/materials to comply with other non-discretionary criteria and
requirements as stated in the Instruction to Bidders.
d. Does the second envelope (Financial Proposal) contain the following documents, at
the least:
1.
Bid prices in the Bill of Quantities in the prescribed Bid Form
2.
Detailed Estimates including a summary sheet indicating the unit prices of
construction materials, labor rates and equipment rentals used in coming up
with the bid; and
3.
Cash Flows by the quarter and payments schedule
e. Is the bid security not returned after the opening of bids and before the contract
signing except those that failed to comply with the requirements in the first envelope
and those post-disqualified and who submitted a waiver of the right to file a motion
for reconsideration and/or protest?
f. Are bid securities returned only after the bidder with the Lowest Calculated Responsive
Bid or Highest Rated Responsive Bid, as the case may be, has signed the contract and
furnished the Performance Security, but in no case later than the expiration of the Bid
Security validity period indicated in the Instructions to Bidders?
g. Is the validity period of the bid security as determined by the head of the procuring
entity indicated in the bidding documents, but in no case exceeds one hundred twenty
(120) calendar days (cd) from the date of the opening of bids?
Bid Evaluation
a. If any “failed” bidder decides to file a request for reconsideration with the BAC, is it
within three (3) cd upon written notice, or if present at the time of bid opening, upon
verbal notification?
b. Does the BAC decide on the request within seven (7) cd from receipt thereof?
Ceiling for Bid Prices
a. If a bid price is higher than the approved budget for the contract under bidding, is
it automatically disqualified?
b. Is the Lowest Calculated Bid determined based on the ff. steps:
1. Detailed evaluation of the financial component to establish the correct
calculated prices
2. The ranking of the total bid prices as so calculated from the lowest to the
highest. The bid with the lowest price shall be identified as the Lowest
Calculated Bid.
c. Is the entire evaluation process completed in not more than seven (7) cd from the
deadline for receipt of proposals for projects with an ABC of above P50M; in not
more than five (5) cd from the deadline for receipt of proposals, for projects
costing P50M and below?
d. Does the bid include the cost of taxes which shall be itemized in the bid form and
reflected in the Detailed Estimates so that the evaluation of all bids is on an equal
footing to ensure fair and competitive bid evaluation?
e. In case of discrepancies between: (a) bid prices in figures and in words; do the
latter prevail? Is this true likewise for (b) total prices and unit prices where the
latter prevail; and, (c) unit cost in the detailed estimate and unit cost in the bill of
quantities where the bill of quantities unit cost will prevail?
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Post- Qualification
a. Is the Lowest Calculated Bid, subjected to post-qualification within seven (7) cd to
determine its responsiveness to the eligibility and bid requirements?
b. In exceptional cases, is the post-qualification period extended by the head of the
procuring entity but in no case shall it be at an aggregate period exceeding thirty (30)
cd?
c. Does the post-qualification process use the non-discretionary criteria below?
a) Legal Requirements- to ascertain licenses and agreements submitted and that
the bidder is not included in any Government “blacklist”
b)
Technical Requirements- to determine compliance with the requirements of
the contract and bidding documents including the bidder’s stated competence
and experience including the key personnel to be assigned to the project;
inspection and testing of equipment units; ascertainment of the sufficiency of
the Bid Security as to type, amount, form and wording, and validity period.
c) Financial Requirements- to verify, validate and ascertain the bid proposal and
bank commitment to provide a credit line; to ensure that the bidder can sustain
the operating cash flow including the stated net worth, the value of all
outstanding or unfinished works under ongoing contracts including awarded
contracts yet to be started.
d. Does the BAC immediately notify the bidder with the Lowest Calculated Bid who
fails the criteria for post-qualification?
e. Does the post-disqualified bidder file a request for reconsideration within three (3) cd
from receipt of the notification, for the BAC to evaluate the same within seven (7) cd
from receipt thereof using the same non-discretionary criteria?
f. Does the BAC immediately after notifying the first bidder of its post-disqualification,
and notwithstanding any pending request for reconsideration, initiate and complete the
same post-qualification process on the second Lowest Calculated Bid? If the second
Lowest is post-qualified, and the request for reconsideration of the first bidder has
been denied, the head of the procuring entity concerned shall award the contract to it.
Failure of bidding
a. Is failure of bidding declared, and a re-bidding with re-advertisement and/or
posting is undertaken, after a re-evaluation of the terms, conditions and
specifications of the first bidding, when:
a) No prospective bidder submits an LOI or no bids are received
b) All prospective bidders are declared ineligible
c) All bids fail to comply with all the bid requirements or fail postqualification
d) The bidder with the Lowest Calculated Responsive Bid refuses, without
justifiable cause to accept the award, and no award is made in accordance
with Section 40 of the RA 9184 and its IRR-A
b. Is negotiated procurement entered into by the procuring entity, when a second
failure of bidding should occur?
Single Calculated/Rated and Responsive Bid Submission
a. Is a single calculated/rated and responsive bid be considered for award if it falls
under any of the following circumstances:
a) If after advertisement, only one prospective bidder submits an LOI, applies
for eligibility check, meets the eligibility requirements and submits a bid
found to be responsive to the bidding requirements;
b) If after advertisement, more than one prospective bidder submits an LOI,
applies for eligibility check, but only one bidder meets the eligibility criteria
and submits a bid found to be responsive to the bidding requirements; or
c) If after the eligibility check, more than one bidder meets the eligibility
requirements, but only one bidder submits a bid, and its bid is found to be
responsive to the bidding requirements.
AWARDING
a. Does the head of the procuring entity or his duly authorized representative, approve or disapprove
the contract within seven (7) cd from the determination and declaration by BAC of the Lowest
Calculated Responsive Bid, and the recommendation of the award, for infrastructure contracts with
an ABC of more than fifty (50) million?
b. For infrastructure contracts with an ABC of fifty (50) million and below, does the head of the
procuring entity or his duly authorized representative approve or disapprove the said
recommendation within four (4) cd?
c. Is the award made within the bid validity period?
d. Are the following documents submitted upon approval of the contract by the head of the procuring
entity?
1. Duly approved Program of Work and Cost Estimates
2. Certificate of Availability of Funds
3. Abstract of Bids
4. Resolution of the BAC recommending the Award
5. Approval of award by appropriate government approving authority, and
6. Other pertinent documents that may be required by existing laws and/or the procuring entity
concerned
e. Are all the remaining documentary requirements, if any, complied with by the winning bidder or its
duly authorized representative, prior to formally entering into contract with the procuring entity
concerned within ten (10) cd from receipt by the winning bidder of the Notice of Award?
f. Does the Procuring Entity enter into contract with the winning bidder within the same ten (10) day
period provided that all the documentary requirements are complied with?
g.
Is the contract signed within fifteen (15) cd from receipt thereof by higher authority or his duly
authorized representative when further approval is required of infrastructure projects with an ABC
of more than fifty (50) million?
h. For infrastructure projects with an ABC of fifty (50) million and below, is the contract signed
within the maximum period of five (5) cd by higher authority or his duly authorized representative,
when further approval of higher authority is required?
NOTICE TO PROCEED
a. Is the Notice to Proceed issued by the procuring entity together with a copy of the approved
contract to the successful bidder within three (3) cd from the date of approval of the contract by the
appropriate government approving authority for infrastructure projects with an ABC of more than
fifty (50) million?
b. For infrastructure projects with an ABC of fifty (50) million and below, is the Notice to Proceed
issued within two (2) cd?
c. Is the effectivity date provided in the Notice to Proceed by the procuring entity does not exceed
seven (7) cd from date of issuance thereof?
d. Is Performance Security posted by the winning bidder upon signing of the contract? It may be in
any of the following forms:
Form of Security
1. Cash, certified check, cashier’s check,
manager’s check, bank draft or
irrevocable letter of credit
2. Bank guarantee
3. Surety Bond
4. Foreign government guarantee
e.
Minimum Amount in % of Total
Contract Price
Five percent (5%)
Ten percent (10%)
Thirty percent (30%)
One hundred percent (100%)
Are the following conditions complied with, in the execution of the Performance Security:
a) It shall be executed in the form prescribed by the procuring entity concerned in the
Instructions to Bidders
b)
It shall be at least co-terminus with the final completion of the contract, and
c)
The following provisions shall form part of the Performance Security: “The right to
institute action on the penal bond pursuant to Act No. 3688 of any individual firm,
partnership, corporation and association supplying the contractor with labor and
materials for the prosecution of the work is hereby acknowledged and confirmed.”
f. Is the bid security forfeited and the appropriate sanctions imposed to the winning bidder who fails,
refuses or is unable to make good its bid by entering into a contract with the procuring entity or
post the required Performance Security, except when such failure, refusal or inability is through no
fault of the said bidder?
g. Does the procuring entity disqualify the said bidder and initiate and complete the post-qualification
process on the bidder with the second Lowest Calculated Bid? Is the procedure repeated until the
LCRB is determined for award?
h. Is failure of bidding declared and a conduct of re-bidding with re-advertisement is done if no bidder
passes post-qualification?
i. Does the procuring entity enter into a negotiated procurement should another failure of bidding
occurs after the conduct of the contract’s re-bidding?
RESERVATION CLAUSE
a. Does the procuring entity reserve the right to reject any and all bids, declare a failure of bidding, or
not award the contract under the following conditions?
1. If there is a prima facie evidence of collusion between appropriate public officers or
employees of the procuring entity, or between the BAC and any of the bidders, or if the
collusion is among the bidders themselves, including any act which restricts, suppresses or
nullifies or tend to restrict, suppress or nullify competition
2. If the BAC is found to have failed in following the prescribed bidding procedures, or
3. For any justifiable and reasonable ground where the award of the contract will not redound to
the benefit of the Government
ALTERNATIVE METHOD OF PROCUREMENT
Negotiated Procurement (Section 53, IRR-A, RA 9184)
1. Is there prior approval of the head of the procuring entity before resorting to negotiated
procurement as an alternative mode of procurement?
2. Is negotiated procurement of infrastructure projects resorted to only in the following cases:
a. when there has been a failure of public bidding for the second time as provided for
under Section 35 of RA 9184 and its IRR-A?
b. in case of imminent danger to life or property during a state of calamity or when time is
of the essence arising from natural or man-made calamities or other causes where
immediate action is necessary to prevent damage to or loss of life or property or to
restore vital public services, infrastructure facilities and other public utilities?
c. take-over of contracts, which have been rescinded or terminated for causes provided for
in the contract and existing laws, where immediate action is necessary to prevent
damage to or loss of life or property, or to restore vital public services, infrastructure
facilities and other public utilities?
d. where the subject contract is adjacent or contiguous (in actual physical contact with
each other) to an on-going infrastructure project provided however that (1) the
original contract is the result of a Competitive Bidding (2) the subject contract to be
negotiated has similar or related scopes of work (3) it is within the contracting
capacity of the contractor (4) the contractor uses the same prices or lower unit prices
as in the original contract less mobilization cost (5) the amount involved does not
exceed the amount of the on-going project and (6) the contractor has no negative
slippage and provided further that negotiations for the procurement are commenced
before the expiry of the original contract?
3. Are the terms and conditions on negotiated procurement complied with as follows? (Section
54, IRR-A, RA 9184)
a. Is there no splitting of contracts?
b. Is there a list of at least three (3) contractors drawn by the procuring entity which will be
invited to submit bids? (Section 54.2b, IRR-A, RA 9184)
c. Are the procedures for the conduct of public bidding observed and the lowest calculated
and responsive bid considered for award?
d. Is advertisement in a newspaper as required under Section 21 of IRR-A dispensed with
provided that the posting is made in the website of the procuring entity, if available,
the G-EPS, and posted at any conspicuous place reserved for this purpose in the
premises of the procuring entity concerned, as certified by the head of the BAC
Secretariat during the same period?
e. Are bona fide contractors licensed with the CIAP whose eligibility documents are on file
with the procuring entity concerned or the DPWH Contractors’ Registry and who
have been classified under the type of contract/project where the subject contract
falls eligible to be invited for negotiation?
f. Does the procuring entity maintain a registry of contractors as basis for drawing up the
short list and/or selecting the contractors for negotiation?
g. Are eligible contractors for the project under consideration furnished copies of the
instructions to offerers, plans, specifications, proposal book form and other tender
documents for their use in submitting their quotation and other information called
for in the format?
h. Do the contractors submit simultaneously with their quotation, the bid security as
stipulated?
i. Is negotiation made in ascending order starting from the lowest complying offerer?
j. During a state of calamity, is negotiation made with a previous contractor of the procuring
entity within the vicinity where the calamity or emergency occurred?
k. For take-over of contracts which have been rescinded or terminated for causes provided
for in the contract and existing laws, is the contract negotiated starting with the
second lowest calculated bidder for the project under consideration at the bidder’s
original price? If all negotiations fail, is a short list of at least three eligible
contractors invited to submit their bids and negotiation made starting with the lowest
bidder subject to prior approval by the head of the procuring entity within their
respective limits of authority?
YES
B. VARIATION ORDERS
a. Is a Variation Order issued and approved by the procuring entity to cover any
increase/decrease in quantities including the introduction of new work items that are
not included in the original contract? (Clause 1, Annex "E", IRR-A, RA 9184)
b. Is the variation order limited to ten percent (10%) of the original project cost? (Clause
1, Annex "E" , IRR-A, RA 9184)
c. Are the additions/deletions of works within the general scope of the original project as
awarded? (Clause 1, Annex "E", IRR-A, RA 9184)
d. Are the variation orders 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?
(Clause 1, Annex "E", IRR-A, RA 9184)
e. Is the written notice which gives full and detailed particulars of any extra cost
delivered within twenty-eight calendar days to the procuring entity inorder that it may
be investigated? (Clause 1.5, Annex "E", IRR-A, RA 9184)
f. Is the Approved Variation Order accompanied with plans, computations as to the
quantities of the additional works involved per item indicating the specific stations
where such works are needed, the date of the inspection and investigations of the
Project Engineer, the logbook thereof and a detailed estimate of the unit cost of such
items of work, together with justifications for the need of such Change or Extra Work
Order?(Clause 1.5a, Annex "E", IRR-A, RA 9184)
g. Were the steps in the preparation and submission of the variation orders as provided
under Clause 1.5.a-d, Annex E of the IRR-A of RA 9184 followed?
h. Is the cumulative variation order beyond10% but not more than 20% subject to
another contract to be bid out if the works are separable from the original contract
authorized and subject to the guidelines to be determined by the Government
Procurement Policy Board? (Clause 1.4, Anne "E", IRR-A, RA 9184)
NO
Remarks
i. Is the processing of the variation order from the preparation up to the approval by the
procuring entity within thirty (30) calendar days? (Clause 1.5.e, Annex "E", IRR-A,
RA 9184)
C. ADDITIONAL/EXTRA WORK ORDER
a. Is the Additional/Extra Work Order issued by the implementing official to cover the
introduction of new work necessary for the completion, improvement or protection of
the project which were not included as items of work in the original contract? (Clause
1.3, Annex "E", IRR-A, RA 9184)
b. 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, are applicable unit
prices of work items in the original contract used? (Clause 2.1.a, Annex "E", IRR-A,
RA 9184)
c. For additional/extra works duly covered by Extra Work Orders involving new work
items that are not in the original contract, are the unit prices of the new work items
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. (Clause 2.1.b, Annex "E, IRRA, RA 9184)}
d. Are all new components of the new work items in fixed prices, provided the same is
acceptable to both the Government and the contractor and that the direct unit costs of
new components based on the contractor's estimate as validated by the procuring
entity via documented canvass in accordance with existing rules and regulations?
(Clause 2.1.b, Annex "E", IRR-A, RA 9184)
e. Is the direct cost of the new work item combined with the mark-up factor (e.g. taxes
and profit) used by the contractor in his bid to determine the unit price of the new
work item? (Clause 2.1.b, Annex "E", IRR-A, RA 9184)
f. Is the immediate start of any Change or Extra Work Order authorized by the
Regional Director prior to the approval by the head of the procuring entity, subject
to availability of funds, under any or all of the following conditions?
a. In the event of an emergency where the prosecution of the work is urgent to
avoid detriment to public service or damage to life and/or property and/or;
b. When time is of the essence subject to the provisions enumerated under
Clause 3.1.a, Annex "E", IRR-A, 9184?
g. Is a Change Order/Extra Work Order involving a cumulative amount exceeding five
percent (5%) of the original contract not commenced unless approved by the
Secretary or his authorized representative? (Clause 3.1.b, Annex "E", IRR-A, RA
1984)
D. EXTENSION OF CONTRACT TIME
a. Is the extension of contract time duly approved? (Clause 10.1, Annex "E", IRR-A, RA
9184)
b. Are notices for the extension of contract time delivered by the contractor to the
procuring entity prior to the expiration of the contract time and within thirty (30)
calendar days after such work has been commenced or after the circumstances leading
to such claim had arisen in order that the procuring entity could have investigated
them at the time? (Clause 10.1, Annex "E", IRR-A, RA 9184)
c. Are extensions of contract time granted on any of the following:
1. for justifiable reasons and not due to: (a) ordinary unfavorable weather
conditions and (b) inexcusable failure or negligence of the contractor to provide
the required equipment, supplies or materials? (Clause 10.2, Annex "E", IRR-A,
RA 9184)
2. when the affected activities fall within the critical path of the PERT/CPM
network? (Clause 10.4, Annex "E", IRR-A, RA 9184)
3. for rainy/unworkable days considered unfavorable for the prosecution of the
work at the site, based on the actual condition 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 during the conduct of detailed engineering
and in the preparation of the contract documents as agreed upon by the parties
before contract perfection? (Clause 10.5, Annex "E", IRR-A, RA 9184)
4. equivalent period of delay due to major calamities such as exceptionally
destructive typhoons, floods and earthquakes, and epidemics? (Clause10.5,
Annex "E", IRR-A, RA 9184)
5. non-delivery on time of materials, working drawings, or written information
to be furnished by the procuring entity, non-acquisition of permit to enter private
properties within the right-of-way resulting in complete paralyzation of
construction activities and other meritorious causes as determined by the
Government's authorized Engineer and approved by the procuring entity? Clause
10.5, Annex "E", IRR-A, RA 9184)
6. shortage of construction materials, general labor strikes, and peace and order
problems that disrupt construction operations through no fault of the contractor
provided they are publicly felt and certified by appropriate government agencies
such DTI, DOLE, DILG and DND, among others? (Clause 10.5, Annex "E",
IRR-A, RA 9184"
d. Is the request for extension of contract time attached with a written consent of
bondsmen and submitted to the procuring entity for consideration? (Clause 10.5,
Annex "E", IRR-A, RA 9184)
e. Is the validity of the performance security correspondingly extended? (Clause 10.5,
Annex "E", IRR-A, RA 9184)
Note:
1. After auditorial review, the Auditor should submit/forward the contract and supporting documents
to the Technical Audit Staff for review/evaluation of the technical aspect of the contract.
2. All deficiencies noted should be indicated in the “Remarks” portion and be issued an Audit
Observation Memorandum (AOM).
Prepared by: _______________________
Reviewed by: _______________________