SM DEVELOPMENT CORPORATION
GENERAL CONDITIONS OF CONTRACT
GC-1
DEFINITION OF TERMS
The following terms shall have the meanings respectively set opposite them whenever used in the
Contract and these General Conditions (whether used in their singular or plural form)
a) “BILL OF QUANTITIES” shall mean the breakdown of the estimated quantities of work,
goods or materials and their respective unit prices which need to be accomplished or supplied
by the CONTRACTOR/ SUBCONTRACTOR to complete the Works.
b) “CERTIFICATE OF FINAL ACCEPTANCE” shall mean the certificate signed by the
OWNER upon the completion of the Works.
c) ''CONSTRUCTION MANAGEMENT TEAM'' (CMT) shall mean the secondary
authorized representative of the OWNER to oversee the prosecution of the contract work,
acting either directly or through properly authorized agents, such agents acting within the
scope of the particular duties to them. This is composed of the Architects, the Engineers and
the Consultants.
d) ''CONTRACT'' shall mean the written agreement entered into between the OWNER and
the CONTRACTOR/ SUBCONTRACTOR pertaining to the services to be rendered by the
CONTRACTOR/ SUBCONTRACTOR under the CONTRACT;
e) ''CONTRACT DOCUMENTS'' shall mean the Contract, Special Conditions of Contracts,
if any; these General Conditions of Contracts; those stated in the Contract as Contract
Documents; including Letter of Award and Notice To Proceed, hereto attached as Annexes
A-1 and A-2, respectively; and the drawings, plans and specifications for the execution of the
Work, including any and all documents which are referred to in the Contract as Contract
Documents, or any modifications, revision or alterations thereof;
f) ''CONTRACT PRICE'' shall mean the total amount which the OWNER is obligated to
pay the CONTRACTOR/ SUBCONTRACTOR under the Contract for the execution and
completion of the WORK including the supply of labor, materials, and the employment of
SUBCONTRACTOR-Owned or provided tools, vehicles and equipment.
g) ''CONTRACTOR/ SUBCONTRACTOR'' shall mean the person or entity with whom the
GENERAL CONTRACTOR entered into the Contract;
h) “FINAL ACCOUNT” shall refer to amount due to the CONTRACTOR/
SUBCONTRACTOR, as certified to by the Project Manager, approved by the Division Head
and issued to the CONTRACTOR/ SUBCONTRACTOR, upon acceptance of the Works.
i) “FORCE MAJEURE” shall mean an act of nature, God or man which is beyond the
control of the Contracting Parties. For purposes of the Contract documents, Force Majeure
shall include (i) rebellion, armed uprising, riot, civil commotion or any act of terrorism; (ii) a
court or government order enjoining or prohibiting the execution of the Works; (iii) natural
calamities, such as widespread flooding, typhoons for the period when typhoon signal No. 3
is hoisted in the Metro Manila area by the Philippine Atmospheric Geological and
Astronomical Administration (PAGASA) or exceptionally adverse weather conditions
(established in relation) to PAGASA’s historical weather records over a period of not less
than ten years); provided that rain, wind, flood or other natural phenomena of inconsequential
degree for the locality of the Site shall not be considered Force Majeure; and (iv) strikes,
lockouts, or work stoppages of a city-wide or regional scale affecting any of the trades
employed upon the Works or any of the goods or materials required for the Works or caused
by concerted mass action on the part of the CONTRACTOR/ SUBCONTRACTOR’s
employees which are declared illegal by the appropriate government agency; (v) such other
conditions or occurrences which are independent of the will of man or is beyond the
contemplation of the contracting parties which makes the service difficult or impossible to
execute.
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j) “MAINTENANCE CERTIFICATE” shall refer to the Certificate to be issued by the
Project Manager pursuant to GC-7d attesting to completion by the CONTRACTOR/
SUBCONTRACTOR of the repair of or remedial measures taken in connection with defects,
deficiencies or any other form of non-compliance of the Works with the requirements of the
Contract Documents, for the purpose of making the Works conform to the Contract
Documents.
k) “OWNER'' shall mean the _________________________________ OR its authorized
representative;
l) ''PROJECT DIRECTOR/ PROJECT MANAGER'' shall mean the primary authorized
representative of the OWNER;
m) ''PROJECT MANAGER'' (PM) shall mean the head of the CONSTRUCTION
MANAGEMENT TEAM.
n) ''PROJECT SITE'' shall mean the place or area where the WORK is or will be carried out.
o) “RETENTION AMOUNT” shall refer to the amount to be retained or withheld by the
OWNER from payments to be made on the basis of Progress Billings.
p) ''VENDOR/ SUPPLIER'' shall mean the person, firm or corporation entering into
agreement with the OWNER for the performance of work or works not included in the
Subcontractor's obligation. He is responsible to the OWNER.
q) “WARRANTY PERIOD” shall mean the period of one year from the issuance of the
Certificate of Final Acceptance of the Works by the Owner during which time the
CONTRACTOR/ SUBCONTRACTOR warrants the Works against all defects, errors or
omissions in or of workmanship and materials furnished by the CONTRACTOR/
SUBCONTRACTOR, and as part of the warranty, the CONTRACTOR/
SUBCONTRACTOR agrees to undertake or to commence remedial or corrective measures to
correct all defects, errors or omissions from receipt of a written notice from the OWNER.
r) ''WORK'' shall mean the work to be performed and completed by the CONTRACTOR/
SUBCONTRACTOR under the Contract and any revisions, alterations, and any extra work
ordered to be done by the OWNER;
GC-2 CONTRACT DOCUMENTS INCLUDED IN CONTRACT
All Contract Documents, other than the Contract shall form part of the Contract even if they or
any one of them is not referred to or mentioned in as forming part of the Contract.
GC-3 CONFLICTS OF CONTRACT AND CONTRACT DOCUMENTS
The Contract Documents are mutually complimentary. What is noted in one although not shown
in the others shall be considered contained in all. In case of conflict, the Contract Documents
shall state the following sequence of priority and importance, prevailing over the other, in so far
as their specific statement(s) or phrase(s) conflict:
a.
b.
c.
d.
e.
f.
g.
h.
Contract
Letter Of Award
Notice To Proceed
Special Conditions
General Conditions of Contract
Specifications
Drawings
Bid Documents
Page 2 of 15 General Conditions of Contract
GC-4 SUBCONTRACTOR'S REPRESENTATIONS & WARRANTIES
a. The CONTRACTOR/ SUBCONTRACTOR admits that it/ he has inspected the site where
the WORK will be performed; that it/he has informed itself/himself fully as to the conditions
which might affect the nature, extent and cost of the work required; that the OWNER shall in
no way be responsible for any cost or expense which may develop on account of failure of
CONTRACTOR/ SUBCONTRACTOR to make an accurate examination of present or future
factors that may affect the cost of execution.
b. The CONTRACTOR/ SUBCONTRACTOR represents that in arriving at the amount of the
CONTRACT PRICE agreed upon, he has taken into account the possible escalation in i) the
cost of CONTRACTOR/ SUBCONTRACTOR-supplied materials, ii) the use of
CONTRACTOR/ SUBCONTRACTOR -provided tools and equipment, iii) the escalation in
the foregoing costs by reason of any delay, whatever may be the period, in completing the
work due to causes directly or indirectly attributable to or caused by the national, provincial,
city or municipal government or any agency on entity or official of the government, or any
firm, company or persons and that the CONTRACT PRICE shall remain a firm, unalterable
price which shall not be subject to increase for any cause or reason except in cases of force
majeure.
c. The CONTRACTOR/ SUBCONTRACTOR warrants that it has sufficient operating capital
to perform and complete the WORK without relying upon advances or payments from the
OWNER; that it has sufficient and adequate equipment, tools and other materials that may be
needed in the WORK; that it has the required knowledge, experience and professional
competence to undertake the WORK; that it has experienced, skilled and professionally
equipped personnel to be assigned for this purpose; that the materials it shall supply is the
best available or obtainable; that the method or process it will follow is the one that will best
accomplish the desired results; that it will provide workmanship which is first class in every
particular by implementing adequate quality assurance program; that it will provide at its own
cost adequate temporary facilities including provision of power and water or arrange to share
the same with the OWNER and that it will be able to complete the WORK within the time of
completion, without extension, as provided in the Contract.
d. The CONTRACTOR/ SUBCONTRACTOR warrants that: (1) if it is a corporation, it is duly
incorporated and registered with the Securities and Exchange Commission; that its franchise
to exist as such or to engage in business has not been terminated, canceled or suspended, or
that it is not under investigation by competent government authority for the purpose of
terminating, canceling or suspending or which may lead to the termination, cancellation or
suspension of such franchise; that it has been duly licensed to engage in the business of
performing the WORK or in a business which necessarily includes the performance of the
WORK; that its board of directors has approved the CONTRACT, and that the person signing
for the corporation has been fully empowered and authorized to sign the CONTRACT; (2) if
it is a partnership, that it is duly registered with the Securities and Exchange Commission;
that it exists as such, and that it has not been dissolved or is not in the process of dissolution;
that it has been duly licensed to engage in the business of performing the WORK or in a
business which necessarily includes the performance of the WORK; that there is no
investigation or proceeding to terminate, cancel or suspend its right to exist as a partnership
or its right to engage in business; that the partner or person signing the CONTRACT for the
partnership has full power and authority to do so; and, (3) if it is a single proprietorship, that
the business is duly registered with the appropriate governmental agency or agencies; that he
has a subsisting license or permit to engage in business as a single proprietorship or in the
business of performing the WORK, or that the business for which he was issued a permit or
he was duly licensed necessarily includes the performance of the WORK; that there is no
investigation or proceeding to terminate, cancel or suspend or which may lead to the
termination, cancellation or suspension of the permit or license to exist as single
proprietorship, to engage in business or to execute the WORK.
e. The CONTRACTOR/ SUBCONTRACTOR warrants that it is not insolvent or is in imminent
danger of insolvency; that there is no petition, action or proceeding, whether judicial or
extrajudicial, to declare the CONTRACTOR/ SUBCONTRACTOR insolvent or for
suspension of payments to creditors; that it has not met with its creditors nor does it plan to
do so to suspend payment of its accounts; that until completion of the WORK and the
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expiration of the warranty period there will be no action, petition or proceeding or meeting,
whether judicial or extrajudicial, initiated by CONTRACTOR/ SUBCONTRACTOR or by
any person to declare the CONTRACTOR/ SUBCONTRACTOR an insolvent or for
suspension of the payment of its accounts; that it regularly pays the salaries and wages or the
other money claims of its laborers, workers or employees and the claim of suppliers of
materials, equipment and services; that it has not done anything nor will do anything by
which a banking or financing institution may declare it a bad credit risk.
f.
The CONTRACTOR/ SUBCONTRACTOR shall comply with all other guarantees,
warranties and other requirements that may be found or which may be implied in the
CONTRACT DOCUMENTS.
g. The CONTRACTOR/ SUBCONTRACTOR admits and agrees that if any of the
representation above are found to be false, or that if it violates any of the warranties
enumerated above, whether the falsity of the representation or the violation of the warranty to
be done in good faith, irrespective of the alleged insubstantial nature of the misrepresentation
of the violation of the warranty, without regard to the progress or the manner of execution of
the WORK, or the damage or lack of it sustained by the OWNER, the OWNER, in its
absolute discretion, may rescind the Contract without liability to CONTRACTOR/
SUBCONTRACTOR for such decision and without prejudice to the employment or pursuit
of other remedies including collection of damages against the CONTRACTOR/
SUBCONTRACTOR.
GC-5 CONTRACT PRICE
a. Unless the Contract provides otherwise, the Contract Price shall be deemed to be a fixed
lump sum price which constitutes the complete consideration or payment for the quantity and
quality of work specified in the Contract Documents and shall not be subject to any
adjustment except to the extent allowed under GC-11. The quality and quantity of the Works
included in the contract Price shall be deemed to be that which is set out in the Bills of
Quantities and as shown in the drawings and as described in the specifications. The Contract
Price shall be deemed to include all costs to the CONTRACTOR/ SUBCONTRACTOR for
materials, tools, equipment, labor, overhead and profits and specifically shall include but not
limited to, insurance and bond premiums, escalation costs of materials, contingencies other
than Force Majeure, overtime or extra work, Site Delivery charges, warehouse and
purchasing costs, local and national income, personal and corporate taxes. The currency of
the contract is Philippine Pesos. No adjustment shall be made to the contract Price for any
fluctuation in exchange rate against any other currency.
The CONTRACTOR/
SUBCONTRACTOR represents that in proposing or agreeing to the Contract Price specified
in the Contract that it has taken into account any possible escalation in the cost of
CONTRACTOR/ SUBCONTRACTOR -supplied materials or in the cost of the use of
CONTRACTOR/ SUBCONTRACTOR -provided tools and equipment or the escalation in
the foregoing costs by reason of any delay, whatever may be the period, in completing the
works due to causes directly or indirectly attributable to or caused by the national, provincial,
city or municipal government or any agency, entity or official of the government, or any firm,
company or person. The CONTRACTOR/ SUBCONTRACTOR also confirms that the rates
and sums included in the Bills of Quantities are adequate and provide for all matters and
things necessary to achieve the proper and timely completion of the Works.
b. In case the CONTRACTOR/ SUBCONTRACTOR receives from the OWNER any amount in
advance of the execution of the WORK, such amount shall be treated as deposit only to be
returned by the CONTRACTOR/ SUBCONTRACTOR upon demand notwithstanding any
language in the bid, proposal, offer, acceptance or letter of intent to the contrary.
c. No payment or deposit shall be made by OWNER to the CONTRACTOR/
SUBCONTRACTOR unless the CONTRACTOR/ SUBCONTRACTOR first submits for
approval of the OWNER the bonds or policies specified under GC-16 and the OWNER
verifies that the bond or policies complies with the conditions set forth under GC-17.
d. In the event that the appropriate governmental authority increases the minimum wage at any
time within the Contract Period, the Contractor agrees to adjust the Contract Price to take into
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account the increase in minimum wages required to be given by the CONTRACTOR/
SUBCONTRACTOR to the persons employed by or under contract with the
CONTRACTOR/ SUBCONTRACTOR for the execution of the Works who will be affected
by such increases in minimum wage, subject to the condition that all work activities of the
CONTRACTOR/ SUBCONTRACTOR are on approved schedule by the OWNER on the
date the increase in minimum wage takes effect. Any additional cost to be incurred by the
CONTRACTOR/ SUBCONTRACTOR arising from the increase in minimum wages shall be
subject to evaluation by the OWNER. The actual amount subject to labor escalation shall be
the balance of work at the time such wage increase is enacted and shall only be granted if the
PROJECT is on schedule and only with respect to the unfinished portion of the PROJECT.
GC-6 TERMS OF PAYMENT
a. Unless the Contract provides otherwise, CONTRACTOR/ SUBCONTRACTOR shall be paid
by the OWNER on the basis of monthly progress billings based on actual work accomplished
as certified and duly approved by the Project Manager. Such billing shall be payable within
Thirty (30) days upon presentation of corresponding invoices, less a proportionate liquidation
or repayment of the deposit or downpayment, if any, less a ten percent (10%) of the amount
billed to be retained by the OWNER to be released to the CONTRACTOR/
SUBCONTRACTOR in accordance with GC-7 and all applicable government mandated
deductions.
b. All progress billings as well as the billing for the ten percent (10%) retention, shall be
accompanied by the CONTRACTOR/ SUBCONTRACTOR 'S affidavit showing that all
claims and obligation for labor, services, materials, suppliers, equipment and tools furnished
by the CONTRACTOR/ SUBCONTRACTOR in executing the WORK have been fully and
finally settled and paid by him.
c. Upon the completion of the Works, the CONTRACTOR/ SUBCONTRACTOR shall give
written notice to the OWNER to that effect, together with a request that the Works be
inspected (and where necessary, be subjected to final testing) and a final claim for the balance
of the contract Price due to it, specifying in detail the quantities, rates and prices of the
completed Works, any additional compensation claimed by the CONTRACTOR/
SUBCONTRACTOR under the terms of the Contract Documents, together with explanations,
supporting vouchers and all documents (including detailed calculations and measurements)
necessary for the purposes of the computation of the Final Account. The CONSTRUCTION
MANAGEMENT TEAM shall conduct a final inspection and testing of the Works within
_Fifteen (15) days from receipt of such written notice.
In the event that the Works are found after such inspection and testing to conform to the
contract documents, then the OWNER shall issue a Certificate of Completion to the
CONTRACTOR/ SUBCONTRACTOR and certify to the payment of the balance of the
Contract Price under a Final Account. Notwithstanding anything contained in these
Conditions, the OWNER shall not be obliged to issue a Certificate of Completion until a
stage of construction has been reached at which the Works are, apart from a merely trivial
deficiencies, ready for occupancy and use for their intended purpose and are free from known
omissions or deficiencies including but not limited to omissions or deficiencies which would
be an impediment to the issuance of an occupancy permit from the governmental agency.
The balance of the Contract Price which shall be stated in the Final Account as due to the
CONTRACTOR/ SUBCONTRACTOR shall be based on:
I. The sum of all amounts previously paid under the Progress Billings
II.
The Contract Price adjusted as necessary in accordance with the terms of the
Contract documents to take into account any deductions from or set-off against any
amounts due
to the CONTRACTOR/ SUBCONTRACTOR under the Contract.
The difference (if any) between the amounts specified above shall be expressed in the final
Account as a balance due to the CONTRACTOR/ SUBCONTRACTOR from the OWNER,
Page 5 of 15 General Conditions of Contract
or to the OWNER from the CONTRACTOR/ SUBCONTRACTOR, as the case maybe.
However, in the event that the CONTRACTOR/ SUBCONTRACTOR within seven (7) days
from the date the Final Account issued objects to the Final Account only insofar as the
amounts to be directly paid to any other subcontractor or supplier and furnishes the OWNER
with satisfactory evidence of the reason why such amounts should not be paid to such
subcontractor/supplier, then the OWNER shall have the option (but not the obligation) to
withhold the payment of such amount to the CONTRACTOR/ SUBCONTRACTOR and
await the release of a final judgment on the dispute between such subcontractor/supplier and
the court to release the consigned amount subject to a final determination of the rights and
obligations of such subcontractor/supplier and the CONTRACTOR/ SUBCONTRACTOR.
In this case, the OWNER may proceed to effect the release of the unaffected portion of the
balance of the Contract Price to the CONTRACTOR/ SUBCONTRACTOR.
GC-7 RETENTION AND RELEASE OF RETENTION MONEY
a) The OWNER will retain a portion of the amount certified for payment under each Progress
Billing and the Final Account, representing the Retention Amount, as security for the repair
or remedy the defects and deficiencies in the Works which develop during the Warranty
period. Unless the Contract provides to the contrary, the Retention Amount shall equal ten
percent (10%) of the Contract Price. The OWNER’s interest in the Retention Amount shall
be that of a trustee for the CONTRACTOR/ SUBCONTRACTOR (but without obligation to
invest the said amount or pay interest thereon), provided that, the OWNER ‘s beneficial
interest therein shall be subject to the preferred right of the OWNER to have recourse thereto
from time to time for payment of any amount to which it is entitled and to deduct therefrom
any sum due or to become due from the CONTRACTOR/ SUBCONTRACTOR under the
provisions of the Contract.
b) The OWNER shall give the CONTRACTOR/ SUBCONTRACTOR written notice of any
defect, shrinkage or other fault which shall appear within the Warranty Period. If the cause
of such defect, shrinkage or fault is due or found to be due to any breach by the
CONTRACTOR/ SUBCONTRACTOR, /SUPPLIER, or any other Subcontractor working
under the direction and supervision of the OWNER, of any of their obligations under the
contract documents or relevant subcontract or supply contract, or the performance of the
maintenance work is specifically required after the acceptance of the Works under the
Contract Documents, then the CONTRACTOR/ SUBCONTRACTOR shall be responsible
for repairing and making good the same to the OWNER‘s satisfaction. Such repairs and
corrective works shall be executed with the least disturbance and without cost to the OWNER
and at the entire cost and expense of the CONTRACTOR/ SUBCONTRACTOR and shall
commence within three days after receipt of the written notice to the CONTRACTOR/
SUBCONTRACTOR from the OWNER and shall be completed within a period agreed upon
with the OWNER. In no case shall the CONTRACTOR/ SUBCONTRACTOR be required
to make good at its cost any damage caused by Force Majeure which may appear after the
acceptance of the Works, unless the OWNER shall certify that such damage is due to injury
which took place before acceptance.
Not later than fourteen (14) days after the expiration of the Warranty period, the
CONTRACTOR/ SUBCONTRACTOR shall specify in a Schedule of Defects to be delivered
to the OWNER any remaining defect, shrinkage or fault found in the Works. Within a
reasonable time after receipt of such Schedule, the defects, shrinkage and other faults therein
specified shall be made good by the CONTRACTOR/ SUBCONTRACTOR and entirely at
its cost unless the OWNER shall otherwise instruct. After the delivery of the Schedule of
Defects, the OWNER shall cease to be entitled to issue any instructions for the making good
of any defects, shrinkage or fault found in the Works. The CONTRACTOR/
SUBCONTRACTOR shall assign to the OWNER any guarantees or quotations for future
maintenance offered by plumbing, mechanical, electrical, or other subcontractors and
suppliers if and when such guarantees or quotations extend beyond the warranty period.
c) In case the CONTRACTOR/ SUBCONTRACTOR fails to do the work so ordered under GC7b, the OWNER may have the work done and charge the cost against the Retention Amount.
If the Retention Amount still remains insufficient to remedy the defect, shrinkage or fault,
then the CONTRACTOR/ SUBCONTRACTOR shall remain liable for payment of any
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deficiency without prejudice to the right of the OWNER to call upon the applicable bond or
insurance policy covering such defect, shrinkage or fault and to its other rights under the
Statutes.
d) When in the opinion of the OWNER any defects, shrinkage or other fault is required to be
made good under GC-7b shall have been made good, the OWNER shall issue the
Maintenance Certificate to that effect. The Maintenance Certificate shall finally discharge
the CONTRACTOR/ SUBCONTRACTOR from any further physical attendance upon the
Works for the purpose of making good defects, but shall not prejudice any of the OWNER’s
rights under the Statutes in regard to defective work or any other breach of the Contract
Documents whether previously or subsequently discovered.
e) The ten percent (10%) retained amount may be partially released by the OWNER, without
interest, to the CONTRACTOR/ SUBCONTRACTOR one year after the date of the final
completion and acceptance of the Works or may be released to the CONTRACTOR/
SUBCONTRACTOR before the expiry of the warranty period, upon submission of a
Guarantee Bond in favor of the OWNER, for an amount equivalent to the retention to be
released.
GC-8 EFFECT OF PAYMENT
The payment of the progress billing and the release to the CONTRACTOR/ SUBCONTRACTOR
of the retained amount shall not be construed as an admission by the OWNER that the
CONTRACTOR/ SUBCONTRACTOR has satisfactorily performed or is satisfactorily
performing the WORK in accordance with plans and specifications or that such work is free from
defects of any kind, hidden or otherwise, or that the CONTRACTOR/ SUBCONTRACTOR is
not guilty of violating, or that the CONTRACTOR/ SUBCONTRACTOR is complying or has
complied with the provisions, terms and conditions of the CONTRACT or of any of the
CONTRACTOR/ SUBCONTRACTOR 'S obligations there under.
GC-9 WITHHOLDING OF PAYMENT
Notwithstanding GC-6 and 7 above, the OWNER shall have the right to withhold any payments
to the CONTRACTOR/ SUBCONTRACTOR in case of any claim against the CONTRACTOR/
SUBCONTRACTOR for labor, services, supplies and/ or materials, or for rentals for the use of
tools and equipment, or in case of non-compliance or defective or irregular compliance with any
of the CONTRACTOR/ SUBCONTRACTOR 'S obligations under the CONTRACT.
GC-1O
PERIOD OF COMPLETION
a. Time is of the essence of CONTRACT. The CONTRACTOR/ SUBCONTRACTOR shall
complete every portion of the WORK in accordance with the work schedule stated in or
appended to and forming part of the CONTRACT.
b. Without limiting the full extent of CONTRACTOR/ SUBCONTRACTOR 'S liability under
the CONTRACT, the CONTRACTOR/ SUBCONTRACTOR agrees to pay the OWNER as
liquidated damages, for every day of delay, an amount equivalent to one tenth (1/10) of one
percent (1%) of the Contract Price up to a maximum amount equivalent to ten percent (10%)
of such Contract Price unless a bigger and different amount is stated in the Contract.
Liquidated damages shall be automatically deductible from any amount due and payable to
the CONTRACTOR/ SUBCONTRACTOR under the CONTRACT or from any other
contracts and transactions entered into by the CONTRACTOR/ SUBCONTRACTOR with
the OWNER and/or with any of its subsidiaries.
c. The period of completion shall be extended only if due to causes for which delays are
excused under the CONTRACT and only when the OWNER approves the extension in
writing. The CONTRACTOR/ SUBCONTRACTOR shall inform the OWNER in writing of
any delay within five (5) days from the date it occurs.
Page 7 of 15 General Conditions of Contract
GC-11 CHANGE ORDER/ EXTRA/ ADDITIONAL WORK
a. Any variation in or of the scope of work as defined in the CONTRAC'T shall be deemed an
alteration. The OWNER may make any alteration in the form, quality or quantity of the
WORK or any part thereof that may, in its opinion, be necessary and desirable, and shall have
the power to order the CONTRACTOR/ SUBCONTRACTOR to do, and the later shall do,
any of the following: increase or decrease the quantity of any work included in the
CONTRACT; omit any such work; change the levels, positions and dimensions of any part of
the works; and execute alterations of any kind necessary for the completion of the WORK.
b. The value of Variations required or sanctioned by the CONTRACTOR shall be valued as
closely as possible on the basis of the CONTRACTOR/ SUBCONTRACTOR’S prices as
outlined in the Bills of Quantities, without regard to any alleged element of high or low
profitability in these prices, and in accordance with the following rules:
(i).
(ii)
(iii)
(iv)
(v)
(vi)
The prices in the Bills of Quantities for a piece of work shall be the basis for
determining the valuation of work similar character executed under similar conditions;
where the work to be affected under a Variation is not of a similar character or
executed under similar conditions as the work covered by the Bills of Quantities, the
Variation shall be valued at prices extrapolated from the prices and rates specified in
the Bills of Quantities for work which is the most comparable to the work to be
executed under the Variation based on the breakdown of the CONTRACTOR/
SUBCONTRACTOR’s prices submitted under GC-5;
where there are comparable prices for work to be performed to effect a Variation but
by reason of certain factors (which include material increases or decreases in quantity,
sequence in ordering, location, postponement, resultant dislocation, or any other
special physical or technical circumstance) the work to be performed under a
Variation will significantly differ in cost, commercial profitability or working
methods, from the cost to be incurred in performing comparable work, then the
OWNER shall use as basis for the valuation of the Variation the prices and rates of
such comparable work, and will make allowances either as an addition or reduction
from such prices to take into account the effect of any such factors on the
CONTRACTOR/ SUBCONTRACTOR’S profitability; provided however, that such
valuation shall not take into account any increase or decrease in building costs unless
the Variation is to be executed at a time different from that contemplated by the
Contract Documents;
where the work to be effected under a Variation cannot properly be measured and
valued in accordance with the foregoing rules, the CONTRACTOR/
SUBCONTRACTOR shall be allowed daywork rates at the rates specified by the
CONTRACTOR/ SUBCONTRACTOR in the Bills of Quantities, or when no such
rates have been specified, at the actual cost to the CONTRACTOR/
SUBCONTRACTOR plus a margin of __%, which percentage shall already include
the use of ordinary plant, tools, existing scaffolding and tools, and for supervision,
overhead and profit; provided that, daywork sheets specifying the time daily spent in
executing the Variation, including the workmen’s names, profession and the materials
employed, shall be delivered for verification to the Project Manager not later than
seven days after the execution of the Variation;
where a schedule of rates (upon which a lump sum price for a section of the work was
based) has been submitted by the CONTRACTOR/ SUBCONTRACTOR and
accepted by the OWNER, the prices in the schedule of rates shall be used in the
valuation of Variations to such section of the work;
Preliminary Items shall not be adjusted save where there is a demonstrable increase or
decrease in resources used.
c. Any work clearly independent of and not included in the scope of the WORK as defined in the
CONTRACT, although related thereto, shall be deemed an extra work. All extra work shall be
the subject of negotiations between the parties and no extra work shall be paid by the OWNER
unless authorized by written agreement of the parties, specifically stating the extra work to be
performed, the Contract Price, and date of completion. If the extra work can be performed
separately from the WORK, such extra work shall be deemed to be completely separate work
under a separate contract. Minor alterations shall be undertaken by CONTRACTOR/
SUBCONTRACTOR at no cost to the OWNER.
Page 8 of 15 General Conditions of Contract
GC-12 BILLS OF QUANTITIES
a. The Bills of Quantities shall be prepared in accordance with a Standard Method of
Measurement for Building Works or in accordance with the provisions in the Bill of Quantities
Special Preambles (as required by the OWNER) in effect as of the Commencement Date.
b. The quantity and quality of the Works included in the Contract shall be deemed to be that
which is set out in the Bills of Quantities and as shown in the drawings and as described in the
specifications. Any error or omission in either description or quantity in the Bills of Quantities
shall not vitiate the Contract or release the CONTRACTOR/ SUBCONTRACTOR from any
obligations, duties, responsibilities or liabilities under the contract. Such errors will be
corrected and treated as if the as if they were a Variation instruction issued by the OWNER
under GC-11; provided that, no adjustment in the Contract Price or Completion Date will be
made due to any errors in rates, calculations or computations made by the CONTRACTOR/
SUBCONTRACTOR.
GC-13 COMPLETION AND ACCEPTANCE
Upon completion of the Works, the CONTRACTOR/ SUBCONTRACTOR thereof shall serve
written notice. Upon receipt of the said notice, the OWNER shall inspect the Work to determine
if it has been satisfactorily performed and completed in accordance with the Contract. If the
CONTRACTOR/ SUBCONTRACTOR determine that the Work has not been satisfactorily
performed and completed, it shall so advice the CONTRACTOR/ SUBCONTRACTOR and
specify the unsatisfactory portion or portions of the Work; whereupon, the CONTRACTOR/
SUBCONTRACTOR shall proceed to perform and complete the Work accordingly. If the
OWNER determines that the Work has been satisfactorily performed and completed, it shall so
advice the CONTRACTOR/ SUBCONTRACTOR and issues a Certificate of Final Acceptance.
The warranty period stated in GC-22 shall commence to run only from the date the WORKS is
accepted in writing by the Owner.
GC-14 REMOVAL OF UNFIT EMPLOYEES
The CONTRACTOR/ SUBCONTRACTOR shall provide and employ on the Project Site in
connection with the execution of the WORK only qualified professionals, technical personnel,
foremen, mechanics and workers which are experienced in their respective callings and such
representatives, foremen and leadmen are competent to give proper supervision to the work they
are required to supervise; and such skilled, semi-skilled or unskilled labor as is necessary for the
proper and timely execution and completion of the work. The Project Manager shall have the
right to object to and require the CONTRACTOR/ SUBCONTRACTOR to remove from the
WORK any person employed by the CONTRACTOR/ SUBCONTRACTOR in the execution of
the WORK who in the opinion of said Project Manager misconduct's himself, or is incompetent
or negligent, in the proper performance of his duties or whose employment is otherwise
considered by said Project Manager to be undesirable. Such employee so removed shall not again
be employed in the execution of the WORK and shall be immediately replaced by a competent
substitute approved by the Project Manager.
GC-15 MATERIALS AND WORKMANSHIP
All materials and workmanship shall be of the respective kinds described in the Contract and in
the plans and specifications and in accordance with the instructions of the Project Manager, and
shall be subjected from time to time to such tests as the OWNER may direct. The
CONTRACTOR/ SUBCONTRACTOR shall provide such assistance, instruments, machines,
labor and materials as are normally required for examining, measuring and testing work, and the
costs of such tests, including samples, shall be for the account of the CONTRACTOR/
SUBCONTRACTOR. During the progress of the WORK, the OWNER shall have the power to
Page 9 of 15 General Conditions of Contract
order in writing from time to time the CONTRACTOR/ SUBCONTRACTOR to remove from the
Project Site any materials which in the opinion of the OWNER are not in accordance with the
Contract; to substitute the proper and suitable materials; and to remove and re-execute any work
which in respect to the materials or workmanship is not in accordance with the CONTRACT. The
CONTRACTOR/ SUBCONTRACTOR shall implement the necessary and adequate quality
control programs which include among other things inspection personnel, testing of materials and
rectification of defects.
GC-16 CONTRACTOR'S LIABILITY
a. In case materials provided by the OWNER are turned over to the custody, safekeeping and/
or use of CONTRACTOR/ SUBCONTRACTOR, or in case OWNER allows
CONTRACTOR/ SUBCONTRACTOR to use OWNER-provided tools and equipment or
materials, or any part thereof, and the OWNER -provided tools and equipment or materials,
or any part thereof, are lost or damaged due to circumstances not directly attributable to the
fault of the OWNER, the CONTRACTOR/ SUBCONTRACTOR shall pay to the OWNER
the cost or value of the materials, tools or equipment lost or damaged immediately upon
demand of the OWNER at such cost as determined exclusively by the OWNER.
b. It is clearly understood that the employees or workers of the CONTRACTOR/
SUBCONTRACTOR are not and shall never be deemed as employees or workers of the
OWNER. The CONTRACTOR/ SUBCONTRACTOR warrants to pay its employees or
workers in accordance with the Labor Code of the Philippines, as amended, and applicable
decrees, rules and regulations, especially as regards minimum wage, hours of work and
compulsory allowances. It hereby undertakes to have its employees or workers covered by
the Social Security System, the Philippine Health Insurance Act and the Employee's
Compensation Fund. In this connection, the CONTRACTOR/ SUBCONTRACTOR hereby
holds the OWNER free and harmless against any and all claims of its employees or workers
under said laws, decrees, rules and regulations, as well as under the provisions of the
CONTRACT.
c. The CONTRACTOR/ SUBCONTRACTOR shall take all necessary precautions and exercise
due care and diligence in the execution of the WORK by implementation of adequate safety
program which includes among other things safety officer, safety gears, fire fighting
equipment, barricades, warning lights and signboards so as not to cause injury, damage or
loss to person and property. The CONTRACTOR/ SUBCONTRACTOR shall hold the
OWNER free and harmless from all claims for injuries, damages or losses to persons| and
property, and shall indemnify it for whatever payments, fines or damages it is made to pay or
suffer by reason of any act, accident, or occurrence caused by or attributable to the fault,
negligence or deliberate act of the CONTRACTOR/ SUBCONTRACTOR or any of its
employees or workers in the execution of the WORK. For this purpose, the CONTRACTOR/
SUBCONTRACTOR shall obtain and keep in force during the term of the CONTRACT
adequate insurance coverage against such liabilities, including third-party liability and all-risk
insurance coverage.
d. Any damage to or loss of property sustained by the CONTRACTOR/ SUBCONTRACTOR,
and any injury or death suffered by its employees workers, in the performance of the WORK
shall be the sole responsibility and liability of the CONTRACTOR/ SUBCONTRACTOR,
except where the same is entirely and exclusively due to the fault and negligence of the
OWNER. It shall be the CONTRACTOR/ SUBCONTRACTOR 'S duty to protect itself at its
own expense with adequate insurance coverage for such responsibility and liability until the
WORK is satisfactorily completed and accepted by the OWNER.
e. Nothing herein provided shall preclude the right of the OWNER to recover the value of any
loss on the insurance policy or policies procured by the CONTRACTOR/
SUBCONTRACTOR as required under GC-17 even in those cases where there was direct
fault or negligence on the part of OWNER ‘s officers and employees.
Page 10 of 15 General Conditions of Contract
GC-17 BONDS AND INSURANCE
Unless otherwise specifically provided in the CONTRACT, the CONTRACTOR/
SUBCONTRACTOR shall post the following bonds and secure the following insurance policies
or coverage from the BDO Insurance Broker, Inc.as general agent:
a. Deposit/ Downpayment Bond, to guarantee the return of the unliquidated portion of any
deposit, downpayment, mobilization fee and/or advance payment, in an amount
equivalent to the amount received by the CONTRACTOR/ SUBCONTRACTOR. The
CONTRACTOR/ SUBCONTRACTOR shall present and deliver to the OWNER the
Deposit/ Downpayment Guarantee Bond within Seven (7) days from the date of
effectivity of the CONTRACT, and the same shall remain in force until said deposit,
downpayment, mobilization fee and/or advance payment is fully liquidated or paid by
the CONTRACTOR/ SUBCONTRACTOR.
b. Performance Bond, in an amount equivalent to Twenty percent (20%) of the
CONTRACT PRICE, to guarantee i) the faithful and satisfactory performance of the
WORK and all other undertakings and obligation of the CONTRACTOR/
SUBCONTRACTOR under the CONTRACT; ii) the payment of salaries and wages of
employees employed in the WORK; iii) the payment of materials supplied by third
persons used in the execution of the WORK; and iv) the payment of liquidated damages
and other claims due and payable to the OWNER under the CONTRACT. The
CONTRACTOR/ SUBCONTRACTOR shall present and deliver to the OWNER the
Performance Bond within ten (10) days from the date of effectivity of the CONTRACT,
and the same shall remain in force until the work is satisfactorily completed and
accepted by the OWNER.
c. Guarantee Bond, in an amount equivalent to ________ Percent (_____%) of the value of
the CONTRACT or the amount of retention, whichever is bigger, to guarantee the
Performance of the warranty obligations of the CONTRACTOR/ SUBCONTRACTOR
under GC-22. The posting of this bond shall be a prerequisite to the release of the
retained amount earlier than the one-year warranty period at the discretion of
management. It shall be in force for the period of the CONTRACTOR/
SUBCONTRACTOR 'S warranty.
d. The CONTRACTOR/ SUBCONTRACTOR shall likewise obtain and keep in force
during the term of the CONTRACT adequate insurance coverage against loss or damage
to his materials, supplies, tools, equipment and vehicles, and against injury or death to
his workmen used or utilized in the execution of the WORK. The said insurance
coverage shall relieve the OWNER of any and all liability and responsibility for any
such loss or damage or injury or death.
e. The bond or bonds and/or policy or policies shall include a provision that the same shall
continue to be in full force and effect notwithstanding the happening of one or more or
all of the following events: (a) the notation of the CONTRACT by the change, decrease
or increase in the scope of work; (b) the change or extension of completion time; (c) the
modification, increase or decrease in the CONTRACT PRICE; (d) the cancellation or
rescission of the CONTRACT if the continuation of the term of the bond or policy is
necessary to enforce any liability or obligation of the SUBCONTRACTOR; (e) any
other event similar to any of the foregoing, it being the intention of the parties that for so
long as the CONTRACTOR/ SUBCONTRACTOR has an obligation to or incurred a
liability in favor of the OWNER, the bonding company through the bond or bonds shall
be solidarily liable to the OWNER with the CONTRACTOR/ SUBCONTRACTOR.
f.
Until written approval is given by the OWNER to the said bonds and policies, this
obligation of the CONTRACTOR/ SUBCONTRACTOR herewith shall not be deemed
to have been complied with. To merit approval, the bond and policies shall specifically
contain the guarantees and warranties and provisions above stated, as well as the
bonding company's express, unequivocal acceptance of the obligations and liabilities
stated in GC-23.
Page 11 of 15 General Conditions of Contract
GC-18 TAXES
The CONTRACTOR/ SUBCONTRACTOR shall pay for all taxes, fees and assessments that may
be imposed by the national, provincial, city, municipality or Barangay government for the
performance of the work as well as for taxes, levies or fees that may be imposed upon his
employees and on the receipt by the CONTRACTOR/ SUBCONTRACTOR of the CONTRACT
PRICE.
GC-19 PRODUCTION OF PAYROLLS, VOUCHERS AND OTHER PAPERS
The CONTRACTOR/ SUBCONTRACTOR shall, upon demand by the OWNER, produce and
make available for inspection, examination and/or reproduction his payrolls, vouchers and other
papers in order to ascertain that the CONTRACTOR/ SUBCONTRACTOR has fully complied,
or is fully complying, with his obligation under GC-13, 15 and 17, including affixed receipts of
payments of the required contribution and fees to the Social Security System, Philhealth and State
Insurance Fund, as well as payments for taxes due to the government by reason of the WORK.
Failure or refusal by the CONTRACTOR/ SUBCONTRACTOR to comply with such demand
shall be sufficient ground for the OWNER to withhold any payment due to the CONTRACTOR/
SUBCONTRACTOR until he complies therewith and/or to terminate the CONTRACT.
GC-20 ASSIGNMENT/ SUBCONTRACTING
The CONTRACTOR/ SUBCONTRACTOR shall not assign, transfer, pledge, subcontract or
make any other disposition of the CONTRACT or any part thereof or any interest therein without
the prior written consent and approval of the OWNER. Such consent and approval, if given, shall
not in any way relieve the CONTRACTOR/ SUBCONTRACTOR from any liability, obligation
or responsibility under the CONTRACT and he shall be as fully responsible to the OWNER for
the act or omission of his subcontractor as he is for the acts or omissions of his own employees. It
is expressly understood that nothing herein shall create any contractual relation between any
subcontractor of the CONTRACTOR/ SUBCONTRACTOR and the OWNER.
GC-21 CONTRACTOR TO KEEP PREMISES CLEAN
The CONTRACTOR/ SUBCONTRACTOR shall, at all times, keep the premises free from
accumulation of waste materials or rubbish caused by his employees. Upon completion of the
WORK, the CONTRACTOR/ SUBCONTRACTOR shall, as directed by the OWNER, remove
from the plant site all temporary structures, rubbish, tools, scaffoldings and waste materials and
shall leave the WORK in a clean state. In case the CONTRACTOR/ SUBCONTRACTOR fails to
do so, the OWNER may undertake the cleaning and charge expenses incurred to the
SUBCONTRACTOR, in connection with the OWNER'S sanitation program and local
government regulations.
GC-22 WARRANTY
The CONTRACTOR/ SUBCONTRACTOR shall guarantee the WORK against all defects in
workmanship and materials furnished by him for the period specified in the CONTRACT. In the
event that the WORK or any part thereof is found defective and/or not in compliance with the
CONTRACT DOCUMENT within the said period, the CONTRACTOR/ SUBCONTRACTOR
shall at his own expense, promptly carry out remedial/corrective measures to correct the defects,
errors or omissions pointed out by the OWNER to the satisfaction of the latter. If the
CONTRACTOR/ SUBCONTRACTOR fails to undertake the said remedial/corrective work
within a reasonable period after notice, the OWNER shall undertake the said work, or have the
same undertaken by other contractors, the expenses shall be deducted from any amount due to the
CONTRACTOR/ SUBCONTRACTOR under the Contract and/or from the amount to be retained
by the OWNER, without prejudice to other forms of collection should the foregoing be
insufficient.
Page 12 of 15 General Conditions of Contract
GC-23 RESCISSION/ CANCELLATION/ TERMINATION OF CONTRACT
A. The OWNER may rescind, terminate or cancel the CONTRACT without incurring any
liability whatsoever to the CONTRACTOR/ SUBCONTRACTOR, his bondsmen,
employees, or third parties by giving notice in writing to the CONTRACTOR/
SUBCONTRACTOR upon any of the following grounds;
1. The OWNER discovers fact contrary to or not in accordance with the
representations of the CONTRACTOR/ SUBCONTRACTOR stated in GC-4 or in
his bid proposal, quotation, or other communication or as contained in the Contract or
any other CONTRACT DOCUMENT;
2. The OWNER discovers that the CONTRACTOR/ SUBCONTRACTOR (a) has
violated or is violating any of the conditions of the CONTRACT, or of any Contract
Document, or of CONTRACTOR/ SUBCONTRACTOR 'S warranties provided in
GC-04; (b) has abandoned the WORK or without the prior written consent of
OWNER has assigned the execution of the WORK to others; (c) is not performing
his obligations or executing the WORK in good faith, or in accordance with the plans
and specifications; (d) is not making such progress in the execution of the WORK so
as to insure its completion within the period stipulated; or (e) has shown himself
incapable of doing or incompetent to do the WORK;
3. The OWNER is of the opinion that completion of the WORK is necessarily or
unreasonably delayed;
4. The OWNER decides to suspend, discontinue, or suspended the execution of the
work stated, described, or provided for in the CONTRACT; or in all cases where the
OWNER finds it more prudent by reason of problems encountered, whatever may be
the cause, to suspend or discontinue with the execution of the work in the
CONTRACT.
B. The CONTRACTOR/ SUBCONTRACTOR shall relieve the OWNER from any claims
of third parties as a result of the exercise of its right to cancel, rescind or terminate the
CONTRACT. The OWNER may require CONTRACTOR/ SUBCONTRACTOR, and the
CONTRACTOR/ SUBCONTRACTOR shall comply with such requirements, to execute an
unequivocal sworn undertaking to relieve OWNER from any and all claims, whether judicial
or extrajudicial, that the CONTRACTOR/ SUBCONTRACTOR, his employees or third
parties may file against the OWNER.
C. The OWNER shall notify in writing the CONTRACTOR/ SUBCONTRACTOR 'S
bondsmen of rescission, cancellation or termination of the CONTRACT.
D. If the rescission, cancellation or termination is due to any fault, negligence or to the act or
omission of CONTRACTOR/ SUBCONTRACTOR, the OWNER shall be entitled to receive
damages from the CONTRACTOR/ SUBCONTRACTOR.
E. The OWNER may retain all amounts due the CONTRACTOR/ SUBCONTRACTOR for
approved billings and the amount retained by the OWNER and applies them to the payment
of all damages sustained by the OWNER by reason of the recession, cancellation or
termination due to the result or negligence of the CONTRACTOR/ SUBCONTRACTOR.
The OWNER may also refuse to release such amounts to the CONTRACTOR/
SUBCONTRACTOR or unless he executes in favor of the OWNER the sworn, written
undertaking provided for in GC-17C as OWNER may direct, in such form and language that
the OWNER may require and approve.
F. In case of the OWNER shall decide to pay such claims, the OWNER shall not in any
event pay more than what is established by the claimants to the full and complete satisfaction
of the OWNER as legitimate, subsisting reasonable and unpaid claims after the corresponding
documents and supporting papers have been executed and delivered to the OWNER, and the
corresponding quitclaim, in such form and with such contents as the OWNER may determine,
are executed, duly sworn and delivered to the OWNER within such period, in such copies and
Page 13 of 15 General Conditions of Contract
in such place or places that the OWNER may in its absolute discretion determine.
G. If the total expenditures incurred in completing the WORK by the OWNER and/or with a
contractor or subcontractors including the amount already paid to CONTRACTOR/
SUBCONTRACTOR, the damages that CONTRACTOR/ SUBCONTRACTOR has obliged
himself to pay as stated in the Contract, the Special Condition, these General Conditions, or
any CONTRACT DOCUMENT and the amount paid to laborers and suppliers of materials
shall exceed the CONTRACT PRICE, the CONTRACTOR/ SUBCONTRACTOR and his
surety or sureties shall solidarily be obliged to pay the OWNER such excess, upon demand
by the OWNER. Any unpaid account shall earn interest computed at the highest lawful rate
of interest allowed by the CENTRAL BANK at the time of first written demand. In case it
becomes necessary to refer the matter to the lawyer to enforce the rights of the OWNER to
demand payment of the amount determined to be due from the CONTRACTOR/
SUBCONTRACTOR, including interest, the CONTRACTOR/ SUBCONTRACTOR and the
surety or sureties shall pay attorney's fees equivalent to fifteen percent (15%) of such amount
due but which in no case shall be less than PhP 1,000,000.00 and five percent (5%) of such
amount due as expense of collection.
GC-24 FORCE MAJEURE/ CONTRACT TIME EXTENSION
A. Claim for time extension of the CONTRACT PERIOD due to force majeure shall be subject
to approval by the OWNER; and in any case, approval of time extension shall not constitute
additional cost to the OWNER. Events of force majeure or act of God includes earthquake,
flood, typhoon, cyclone, revolution, war, tidal wave and other cataclysmic phenomena of
nature and misfortune which are beyond human prudence and foresight.
B. Rain, wind, flood or other natural phenomena of inconsequential degree in the locality of the
Project Site shall not entitle CONTRACTOR/ SUBCONTRACTOR to indemnity nor
compensate from the OWNER for damages resulting therefrom.
C. Strikes shall be considered as force majeure only if such is of national or regional scale.
However, strikes or other work stoppages caused by concerted mass action on the part of the
CONTRACTOR/ SUBCONTRACTOR 'S employees which are illegal per se or later
determined to be illegal by the National Labor Relations Commission (NLRC) shall be a
ground for the extension of the CONTRACT PERIOD; provided that strikes arising out of
unfair labor practice as determined by the NLRC shall not be considered a case of force
majeure.
GC-25
ARBITRATION
Any dispute arising from the interpretation of the CONTRACT DOCUMENTS, which the
OWNER and the CONTRACTOR/ SUBCONTRACTOR are unable to resolve between
themselves, shall be submitted by either party for resolution or decision to a Board of Arbitrators
composed of three (3) members to be chosen as follows:
a. One (1) member shall each be chosen by the OWNER and the CONTRACTOR/
SUBCONTRACTOR. The said two (2) members shall in turn select a third member
acceptable to both of them. The decision of the Board of Arbitrators shall, as much as
possible, be rendered within fifteen (15) days from the first meeting of the Board. The
decision reached through the affirmative vote of at least two (2) members of the Board
shall be final and binding upon the OWNER and the CONTRACTOR/
SUBCONTRACTOR.
b. Matters not otherwise provided for in the CONTRACT or in any supplement thereto shall
be governed by the provisions of the Construction Arbitration Law of the Philippines.
The Arbitration or the process thereof shall not be a reason for the CONTRACTOR/
SUBCONTRACTOR to suspend work nor shall it effect the period of completion stated in GC-10
except that portion of the WORK that is subject to arbitration.
Page 14 of 15 General Conditions of Contract
GC-26 SEPARABILITY
The invalidity, or in whole or in part, of any provision of these General Conditions shall not
affect the validity of the other provisions hereof.
GC-27 SAFETY & ADMINISTRATIVE RULES AND REGULATIONS
In general, the CONTRACTOR/ SUBCONTRACTOR shall comply with the project’s safety &
administrative rules and regulations while within the site’s premises. The CONTRACTOR/
SUBCONTRACTOR shall employ only competent and qualified technical personnel, foremen,
equipment operators and workers. The Project Manager may require the CONTRACTOR/
SUBCONTRACTOR to furnish pertinent documents that may ascertain the competency,
qualifications and character of his workers/ operators before they are allowed entry within
construction site.
-end-
Page 15 of 15 General Conditions of Contract