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Republic of the Philippines

Don Honorio Ventura State University


Villa de Bacolor, Pampanga

College of Engineering and Architecture


Department of Civil Engineering

Civil Engineering Laws, Contracts and Ethics


CE 523b

VI. Civil Engineer Law

A. Procurement of Works Under RA 9184 and its IRR


B. RA 544
C. PD 1594
D. RA 10912

Leader: Gonzales, Jaymee L.


Asst. Leader: Ocampo, Mikee G.
Members: Bamba, Camila P.
Caliwag, Joana Marie B.
Dizon, John Michael C.
Feliciano, Marco P.
Santiago, Arjay
Torno, Michelle Ann P.
Valencia, Karen Joy M.

Reynaldo Hernandez Paras Jr, RCE


INSTRUCTOR I
VI. Civil Engineer Law
Procurement of Works Under R.A. 9184 and its IRR
DEFINITION OF TERMS
Boldface type is used to identify defined terms.
The Contractor's Bid is the completed bidding document submitted by the Contractor
to the PROCURING ENTITY.
Bill of Quantities means the priced and completed Bill of Quantities forming part of the
Bid.
The Contract is the Contract between the PROCURING ENTITY and the Contractor to
execute, complete, and maintain the Works. It consists of the documents listed in GCC
Sub-Clause 2.3 below.
The Contract Price is the price stated in the letter of Acceptance and thereafter as
adjusted in accordance with the provisions of the Contract.
Dayworks are varied work inputs subject to payment on a time basis for the
Contractor's employees and Equipment, in addition to payments for associated
Materials and Plant.
Drawings include calculations and other information provided or approved by the
Procuring Entity's Engineer for the execution of the Contract.
Specification means the Specification of the Works included in the Contract and any
modification or addition made or approved by the Procuring Entity's Engineer.
The Arbiter is the person appointed jointly by the PROCURING ENTITY and the
Contractor to resolve disputes in the first instance, as provided for in GCC Clause 19
hereunder.
The Contractor is a person or corporate body whose Bid to carry out the works has
been accepted by the PROCURING ENTITY.
The PROCURING ENTITY is the party who employs the Contractor to carry out the
Works stated in the Site.
A Subcontractor is a person or corporate body who has a Contract with the Contractor
to carry out a part of the work in the Contract, which includes work on the Site.
The Procuring Entity's Engineer is the person named in the SCC (or any other
competent person appointed by the PROCURING ENTITY and notified to the
Contractor, to act in replacement of the PROCURING ENTITY's Engineer) who is
responsible for supervising the execution of the Works and administering the Contract.

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The Start Date is given in the sec. It is the latest date when the Contractor shall
commence of the works. It does not necessarily coincide with any of the Site
Possession Dates.
The Intended Completion Date is the date on which it is intended that the Contractor
shall complete the Works. The Intended Completion Date is specified in the SCC. The
Intended Completion Date may be revised only by the PROCURING ENTITY's Engineer
by issuing an extension of tine or an acceleration order.
Days calendar days; months are calendar months.
The Defects Liability Period is the period named in the SCC and calculated from the
Completion Date.
The Defects Liability Certificate is the certificate issued by PROCURING ENTITY’s
Engineer upon correction of defects by the Contractor.
The Completion Date is the date of completion of the Works as certified by the
PROCURING ENTITY’s Engineer, in accordance with GCC Clause 50.
The Contract Price is the price stated in the Letter of Acceptance and thereafter as
adjusted in accordance with the provisions of the Contract.
Compensation Events are those defined in GCC Clause 44 hereunder.
Equipment is the Contractor's machinery and vehicles brought temporarily to the Site to
construct the Works.
A Defect is any part of the Works not completed in accordance with the Contract.
Materials are all supplies including Consumables: used by the Contractor for
incorporation in the Works.
Plant is any integral part of the Works that shall have a mechanical, electrical, chemical
or biological function.
The Site is the area defined as such in the SCC,
Site Investigation Reports are those that were included in the Bidding Documents and
are factual and interpretative reports about the surface and subsurface conditions at the
site.

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Temporary Works are works designed, constructed, installed and removed by the
Contractor that are needed for construction or installation of the Works.
A variation is an instruction given by the PROCURING ENTITY'S Engineer which
varies the Works.
The Works are what the Contract requires the Contractor to construct, install, and turn
over to the PROCURING ENTITY, as defined in the SCC.

INTERPRETATION
In interpreting these Conditions of Contract, singular also means plural, male also
means female or neuter, and the other way around. Headings have no significance.
Words have their normal meaning under the language of the Contract unless
specifically defined. The PROCURING ENTITY's Engineer will provide instructions
clarifying queries about These Conditions of Contract.
If sectional completion is specified in the sec, references in the Conditions of Contract to
the Works, the Completion Date and the intended Completion Date apply to any Section
of the Works (other than references to the Completion Date and intended Completion
Date for the whole of the Works).
The documents forming the Contract shall be interpreted in the following order of
priority:
(a) Agreement,
(b) Letter of Acceptance,
(c) Contractor's Bid,
(d) Special Conditions of Contract,
(e) Conditions of Contract,
(f) Specifications,
(g) Drawings,
(h) Bill of Quantities, and
(i) Any other document listed in the SCC as forming part of the Contract.

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LANGUAGE AND LAW
The language of the Contract is English and the law governing the Contract of the
Republic of the Philippines.
DOCUMENTS COMPRISING THE BID
The Bid submitted by the Bidder shall comprise the following:
Documents Comprising the Bid, Technical and Financial Proposals
The Technical and Financial Proposals shall contain the following information:
Technical Proposal
(a) Bid Security as to form, amount and validity period;
(b) Authority of the signing official;
(c) Construction schedule and S-curve;
(d) Manpower schedule;
(e) Construction methods;
(f) Organizational chart for the contract to be Bid;
(g) List of contractor’s personnel (viz. Project Manager, Project Engineers, materials
Engineers and Foremen), to be assigned to the contract to be Bid, with their complete
qualification and experience data;
(h) List of contractor's equipment units, which are owned, leased and order/or under
purchase agreements, supported by certification of availability of the equipment from
the equipment lessor/vendor for the duration of the project;
(i) Equipment utilization schedule;
(j) Affidavit of site inspection;
(k) Written commitment from the contractor's bank to extend to it a credit line if awarded
the contract to be Bid, or a cash deposit certificate specifically committed to the
contract or project, if awarded, in an amount not lower than that set in the BDS;
(l) Construction safety and health program of the contractor;
(m) Certificate from the Bidder under oath of its compliance with existing labor laws and
standards;
(n) A sworn affidavit in accordance with ITB Clause 3.7; and
o) Any other documents described in the BDS.

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Financial Proposal
a) Bid prices in Bill of Quantities in the prescribed Bid Form;
b) Detailed estimates including a summary sheet indicating the unit prices of
construction materials, labor rates and equipment rentals used in corning up with the
Bid;
c) Cash flow by the quarter and payments schedule; and
d) Any other document described in the BDS.
If indicated-in the BDS, all Financial Proposals that exceed the ABC as in the BDS, shall
be rejected.
BID PRICES
The Contract shall be for the whole works, as described in ITB Clause 1.1, based
on the priced Bill of Quantities submitted by the Bidder.
The Bidder shall fill in rates and prices for all items of the works described in the
Bill of Quantities. Bids not addressing or providing all of the required items in the
Bidding Documents including, where applicable, bill of quantities shall be considered
non-responsive and thus, automatically disqualified. In this regard, where a required
item is provided, but no price is indicated, the same shall be considered “0” (zero) for
the said item would mean it is being offered for free to the Government.
All duties, taxes, and other levies payable by the Contractor, or for any other
cause, prior to the deadline for Submission of Bids, shall be included in the rates,
prices, and total Bid price submitted by the Bidder.
For a given scope of work in the contract as warded, all Bid prices shall be
considered as fixed prices, and therefore not subject to price escalation during contract
implementation, except under extraordinary circumstances as indicated in the BDS and
specified in GCC Clause 49 and see.

BID VALIDITY
Bids shall remain valid for the period specified in the BDS which shall not exceed
one hundred twenty (120) days from the date of the opening of Bids.
In exceptional circumstances, the PROCURING ENTITY may request that the
Bidders extend the period of validity for a specified additional period. The request and
the Bidder’s responses shall be made in writing or by cable. A Bidder may refuse the
request without forfeiting the Bid Security. A Bidder agreeing to the request will not be
required or permitted to otherwise modify the Bid but will be required to extend the
validity of Bid Security for the period of the extension, and in compliance with ITB
Clause 15 in all respect.

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In the case of contracts in which the Contract Price is fixed (not subject to pride
adjustment), if the period of Bid validity is extended beyond sixty (60) days after the
original Bid validity period, the Bid prices, may be adjusted by applying the factors
specified in the BDS or in the request for extension, for the period of delay beyond sixty
(60) days after the expiry of the initial Bid validity, up to the notification of award. Bid
evaluation will be based on the Bid prices without taking the above correction into
consideration.

DETAILED EVALUATION AND COMPARISON OF BIDS


The PROCURING ENTITY will evaluate and compare in detail, only the Bids that
are rated “passed” for both Technical and Financial Proposal.

In evaluation the Bids to get the Lowest Calculated Bid the PROCURING
ENTITY shall undertake the following:
(a) The detailed evaluation of the financial component of the bids, to establish
the correct calculated prices of the bids; and
(b) The ranking of the total bid prices as so calculated from the lowest to
highest. The bid with the lowest price shall be identified as the Lowest
Calculated Bid.
To determine the Lowest Calculated Bid, the BAC shall use non-discretionary criteria,
stated in the invitation, which shall include a consideration of the following:
(a) The bid must be complete. Bids not addressing or providing all the
required items in the Bidding Documents including, where applicable, bill of
quantities, shall be considered non-responsive and thus, automatically
disqualified. In this regard, where a required item is provided, but no price is
indicated, the same shall be considered as non-responsive, but specifying a
“0” (zero) for the said item would mean that it is being offered for free to the
Government; and
(b) Minor arithmetical corrections to consider computational errors, omissions
and discounts if allowed in the Bidding Documents to enable proper
comparison of all eligible bids. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.

The BAC shall evaluate all bids on an equal footing to ensure fair and
competitive bid evaluation. For this purpose, all bidders shall be required to
include the cost of all taxes, such as, but not limited to, value added tax(VAT),
income tax, local taxes, and other fiscal levies and duties which shall be itemized
in the bid form and reflected in the detailed estimates. Such bids, including said
taxes, shall be the basis for bid evaluation and comparison.

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In case of discrepancies between:
(a) Bid prices in figures and in words, the latter shall prevail;
(b) The unit rate and the line item total resulting from multiplying the unit rate
by the quantity, the unit rate as quoted will govern, unless in the opinion it the
PROCURING ENTITY there is an obviously gross misplacement of the
decimal point in the unit rate, in which case the line item total as quoted will
govern, and the total unit rate will be corrected.;
(c) Cost in the detailed estimate and unit cost in the bill of quantities, the latter
shall prevail.
Based on the detailed evaluation of bids, those that comply with the above-
mentioned requirement shall be ranked in the ascending order of their total calculated
bid prices, as evaluated and corrected for computational errors, discounts and other
modifications, to identify the Lowest Calculated Bid. Total calculated bid prices, as
evaluated and corrected for computational errors, discounts and other modifications,
which exceed the approved budget for the contract shall not be considered.
If so provided in the BDS, in case Lowest Calculated Bid Price, is seriously
unbalanced or front loaded for major items of work as determined by the PROCURING
ENTITY, the PROCURING ENTITY may require the Bidder to produce detailed price
analyses for any or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with construction methods and schedule proposed. Major
items are those costing at least twenty percent (20%) of the total cost based in the ABC.
Any unit cost in the Bid which is more than thirty percent (30%) of the unit cost in the
ABC is considered unbalanced or front loaded. After evaluation of the price analyses,
taking into consideration the schedule of the estimated Contract payments, the
PROCURING ENTITY may require that the amount of the Performance Security set
forth in be increased at the expense of the Bidder to a level sufficient to protect the
PROCURING ENTITY against financial loss in the event of default of the successful
Bidder under the Contract.
The estimated effect of any price adjustment conditions under GCC Clause 49 of
the Conditions of Contract, during the period of implementation of the contract, will not
be taken into account in Bid evaluation.

POST QUALIFICATION OF THE LOWEST CALCULATED BID


The PROCURING ENTITY shall conduct post qualification to determine whether
the Bidder that is evaluated to have the Lowest Calculated Bid complies with and is
responsive to all requirements and condition “pass/fail” criteria and be based upon
examination, verification and validation of the documentary evidence if the Bidder
pursuant to ITB Clauses 3 and 5 and the Technical and Financial Proposals for ITB
Clause 11. If the said Bidder passes the post-qualification, his Bid shall be declared as
the Lowest Calculated and Responsive Bid.

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THE CONTRACTORS OBLIGATION
The Contractor shall carry out the Works properly and in accordance with the
Contract. The Contractor shall provide all supervision labor, Materials, Plant and
Contractor’s Equipment, which may be required. All Materials and Plant on site shall be
deemed to be the property of the PROCURING ENTITY.
The Contractor shall commence execution of the works on the Start of Date and
shall carry out the works in accordance with the Program submitted by the Contractor,
as updated with the approval of the PROCUTIN ENTITY’s Engineer and complete them
by the Intended Completion Date.
The Contractor shall be responsible for the safety of all activities on the site.
The Contractor shall carry out all instructions of the PROCURING ENTITY’s
Engineer that comply with the applicable laws where the site is located.
The Contractor shall employ the key personnel named in the Scheduled Key
Personnel, as referred to in the SCC to carry out the supervision of the Works. The
PROCURING ENTITY will approve any proposed replacement of key personnel only if
their relevant qualifications and abilities are equal to or better than those of the
personnel listed in the Schedule.
If the PROCURING ENTITY’s Engineer asks the contractor to remove a person
who is member of the contractor’s staff or work force, stating the reasons, the
Contractor shall ensure that the person leaves the Site within seven days and has no
further connection with the work in the Contract.
During continuance of the contract, the Contractor and his subcontractors shall
abide at all times by all labor laws, including child labor related enactments, and other
relevant rules.
The contractor shall submit to the PROCURING ENTITY for consent the name
and particulars of the person authorized to receive instructions on behalf of the
Contractor.
The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities, and the PROCURING ENTITY between the dates given in the
Schedule of other Contractors, as referred to in the SCC. The Contractor shall also
provide facilities and services for them as described in the Schedule. The PROCURING
ENTITY may modify the Schedule of other Contractors and shall notify the Contractor of
any such modification.
Should anything of historical or other interest or of significant value is
unexpectedly discovered on the site, it shall be the property of the PROCURING
ENTITY. The Contractor shall notify the PROCURING ENTITY’s Engineer’s instructions
for dealing with them.

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BID PRICES
The Contract shall be for the whole works, as described in ITB Clause 1.1, based
on the priced Bill of Quantities submitted by the Bidder.
The Bidder shall fill in rates and prices for all items of the works described in the
Bill of Quantities. Bids not addressing or providing all of the required items in the
Bidding Documents including, where applicable, bill of quantities shall be considered
non-responsive and thus, automatically disqualified. In this regard, where a required
item is provided, but no price is indicated, the same shall be considered “0” (zero) for
the said item would mean it is being offered for free to the Government.
All duties, taxes, and other levies payable by the Contractor, or for any other
cause, prior to the deadline for Submission of Bids, shall be included in the rates,
prices, and total Bid price submitted by the Bidder.
For a given scope of work in the contract as warded, all Bid prices shall be
considered as fixed prices, and therefore not subject to price escalation during contract
implementation, except under extraordinary circumstances as indicated in the BDS and
specified in GCC Clause 49 and see.
BID VALIDITY
Bids shall remain valid for the period specified in the BDS which shall not exceed
one hundred twenty (120) days from the date of the opening of Bids.
In exceptional circumstances, the PROCURING ENTITY may request that the
Bidders extend the period of validity for a specified additional period. The request and
the Bidder’s responses shall be made in writing or by cable. A Bidder may refuse the
request without forfeiting the Bid Security. A Bidder agreeing to the request will not be
required or permitted to otherwise modify the Bid but will be required to extend the
validity of Bid Security for the period of the extension, and in compliance with ITB
Clause 15 in all respect.
In the case of contracts in which the Contract Price is fixed (not subject to pride
adjustment), if the period of Bid validity is extended beyond sixty (60) days after the
original Bid validity period, the Bid prices, may be adjusted by applying the factors
specified in the BDS or in the request for extension, for the period of delay beyond sixty
(60) days after the expiry of the initial Bid validity, up to the notification of award. Bid
evaluation will be based on the Bid prices without taking the above correction into
consideration.

DETAILED EVALUATION AND COMPARISON OF BIDS


The PROCURING ENTITY will evaluate and compare in detail, only the Bids that
are rated “passed” for both Technical and Financial Proposal.

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In evaluation the Bids to get the Lowest Calculated Bid the PROCURING
ENTITY shall undertake the following:
(c) The detailed evaluation of the financial component of the bids, to establish
the correct calculated prices of the bids; and
(d) The ranking of the total bid prices as so calculated from the lowest to
highest. The bid with the lowest price shall be identified as the Lowest
Calculated Bid.
To determine the Lowest Calculated Bid, the BAC shall use non-discretionary criteria,
stated in the invitation, which shall include a consideration of the following:
(c) The bid must be complete. Bids not addressing or providing all the
required items in the Bidding Documents including, where applicable, bill of
quantities, shall be considered non-responsive and thus, automatically
disqualified. In this regard, where a required item is provided, but no price is
indicated, the same shall be considered as non-responsive, but specifying a
“0” (zero) for the said item would mean that it is being offered for free to the
Government; and
(d) Minor arithmetical corrections to consider computational errors, omissions
and discounts if allowed in the Bidding Documents to enable proper
comparison of all eligible bids. Any adjustment shall be calculated in monetary
terms to determine the calculated prices.

The BAC shall evaluate all bids on an equal footing to ensure fair and
competitive bid evaluation. For this purpose, all bidders shall be required to
include the cost of all taxes, such as, but not limited to, value added tax(VAT),
income tax, local taxes, and other fiscal levies and duties which shall be itemized
in the bid form and reflected in the detailed estimates. Such bids, including said
taxes, shall be the basis for bid evaluation and comparison.

In case of discrepancies between:


(d) Bid prices in figures and in words, the latter shall prevail;
(e) The unit rate and the line item total resulting from multiplying the unit rate
by the quantity, the unit rate as quoted will govern, unless in the opinion it the
PROCURING ENTITY there is an obviously gross misplacement of the
decimal point in the unit rate, in which case the line item total as quoted will
govern, and the total unit rate will be corrected.;
(f) Cost in the detailed estimate and unit cost in the bill of quantities, the latter
shall prevail.
Based on the detailed evaluation of bids, those that comply with the above-
mentioned requirement shall be ranked in the ascending order of their total calculated
bid prices, as evaluated and corrected for computational errors, discounts and other

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modifications, to identify the Lowest Calculated Bid. Total calculated bid prices, as
evaluated and corrected for computational errors, discounts and other modifications,
which exceed the approved budget for the contract shall not be considered.
If so provided in the BDS, in case Lowest Calculated Bid Price, is seriously
unbalanced or front loaded for major items of work as determined by the PROCURING
ENTITY, the PROCURING ENTITY may require the Bidder to produce detailed price
analyses for any or all items of the Bill of Quantities, to demonstrate the internal
consistency of those prices with construction methods and schedule proposed. Major
items are those costing at least twenty percent (20%) of the total cost based in the ABC.
Any unit cost in the Bid which is more than thirty percent (30%) of the unit cost in the
ABC is considered unbalanced or front loaded. After evaluation of the price analyses,
taking into consideration the schedule of the estimated Contract payments, the
PROCURING ENTITY may require that the amount of the Performance Security set
forth in be increased at the expense of the Bidder to a level sufficient to protect the
PROCURING ENTITY against financial loss in the event of default of the successful
Bidder under the Contract.
The estimated effect of any price adjustment conditions under GCC Clause 49 of
the Conditions of Contract, during the period of implementation of the contract, will not
be taken into account in Bid evaluation.
POST QUALIFICATION OF THE LOWEST CALCULATED BID
The PROCURING ENTITY shall conduct post qualification to determine whether
the Bidder that is evaluated to have the Lowest Calculated Bid complies with and is
responsive to all requirements and condition “pass/fail” criteria and be based upon
examination, verification and validation of the documentary evidence if the Bidder
pursuant to ITB Clauses 3 and 5 and the Technical and Financial Proposals for ITB
Clause 11. If the said Bidder passes the post-qualification, his Bid shall be declared as
the Lowest Calculated and Responsive Bid.

THE CONTRACTORS OBLIGATION


The Contractor shall carry out the Works properly and in accordance with the
Contract. The Contractor shall provide all supervision labor, Materials, Plant and
Contractor’s Equipment, which may be required. All Materials and Plant on site shall be
deemed to be the property of the PROCURING ENTITY.
The Contractor shall commence execution of the works on the Start of Date and
shall carry out the works in accordance with the Program submitted by the Contractor,
as updated with the approval of the PROCUTIN ENTITY’s Engineer and complete them
by the Intended Completion Date.
The Contractor shall be responsible for the safety of all activities on the site.

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The Contractor shall carry out all instructions of the PROCURING ENTITY’s
Engineer that comply with the applicable laws where the site is located.
The Contractor shall employ the key personnel named in the Scheduled Key
Personnel, as referred to in the SCC to carry out the supervision of the Works. The
PROCURING ENTITY will approve any proposed replacement of key personnel only if
their relevant qualifications and abilities are equal to or better than those of the
personnel listed in the Schedule.
If the PROCURING ENTITY’s Engineer asks the contractor to remove a person
who is member of the contractor’s staff or work force, stating the reasons, the
Contractor shall ensure that the person leaves the Site within seven days and has no
further connection with the work in the Contract.
During continuance of the contract, the Contractor and his subcontractors shall
abide at all times by all labor laws, including child labor related enactments, and other
relevant rules.
The contractor shall submit to the PROCURING ENTITY for consent the name
and particulars of the person authorized to receive instructions on behalf of the
Contractor.
The Contractor shall cooperate and share the Site with other contractors, public
authorities, utilities, and the PROCURING ENTITY between the dates given in the
Schedule of other Contractors, as referred to in the SCC. The Contractor shall also
provide facilities and services for them as described in the Schedule. The PROCURING
ENTITY may modify the Schedule of other Contractors and shall notify the Contractor of
any such modification.
Should anything of historical or other interest or of significant value is
unexpectedly discovered on the site, it shall be the property of the PROCURING
ENTITY. The Contractor shall notify the PROCURING ENTITY’s Engineer’s instructions
for dealing with them.
CONTRACTOR’S RISK
The contractor shall assume full responsibility for the contract work from the time
project construction commenced up to final acceptance by the government and shall be
held responsible for any damage or destruction of the works except those occasioned
by force majeure. The contractor shall be fully responsible for the safety, protection,
security, and convenience of his personnel, third parties, and the public at large, as well
as the works, equipment, installation and the like to be affected by his construction work
and shall be required a warranty security in the form of cash, bank guarantee, letter of
credit, GSIS or surety bond callable on demand, in accordance with the following
schedule.

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FORM OF WARRANTY
Minimum Amount in % of Total Contract Price
1.Cash deposit, cash bond or letter of credit Five percent (5%)
2. Bank guarantee Ten percent (10%)
3. Surety bond Thirty percent (30%)
The warranty security shall be stated in Philippine Pesos, shall remain effective
during the applicable warranty period as provided in SCC, and shall be returned only
after the lapse of the said warranty period.
TERMINATION
The PROCURING ENTITY or the Contractor may terminate the Contract if the
other party causes a fundamental breach of the Contract.
Fundamental breaches of Contract shall include, but shall not be limited to, the
following:
a.) The Contractor stops work for twenty eight (28) days when no stoppage of work is
shown on the current Program and the stoppage has not been authorized by the
PROCURING ENTITY’s Engineer.
b.) The PROCURING ENTITY’s Engineer instructs the Contractor to delay the progress
of the Works, and the instruction is not withdrawn within twenty-eight (28) days;
c.) The PROCURING ENTITY or the Contractor is made bankrupt or goes into
liquidation other than for a reconstruction or amalgation. In thecase of the Contractor’s
insolvency, any Contractor’s Equipment which the PROCURING ENTITY instructs in the
notice is to be used until the completion of the Works;
d.) A payment is certified by the PROCURING ENTITY’s Engineer is not paid by the
PROCURING ENTITY to the Contractor within eightyfour (84) days from the date of the
PROCURING ENTITY’s Engineer certificate
e.) The PROCURING ENTITY’s Engineer gives Notice that failure to correct a particular
Defect is a fundamental breach of Contract and the Contractor fails to correct it within a
reasonable period of time determined by the PROCURING ENTITY’s Engineer;
f.) The Contractor does not maintain a security, which is required;
g.) TheContractor has delayed the completion of the Works by the number of days for
which the maximum amount of liquidated damages can be paid, as defined in the SCC;
h.) If the Contractor, in the judgement of the PROCURING ENTITY has engaged in the
corrupt, coercive, collusive or fraudulent practices in the competing for or in executing
the Contract.

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For the purpose of GCC CLAUSE 17.2 (h) corrupt and fraudulent practices are defined
as follows :
i. “corrupt practice” means behavior on the part of officials in the public or
private sectors by which they improperly and unlawfully enrich themselves
and/or those close to them, or induce others to do so by misusing the position
in which they are placed, and it includes the offering, giving, receiving, or
soliciting of anything of value to influence the action of any such official in the
behalf Government, into any contract or transaction manifestly and grossly
disadvantageous to the same, whether or not the public officer profited or will
profit thereby; and
ii. “Fraudulent practice” means a misrepresentation of facts in order to influence
aprocurement process or the execution of a contract to the detriment of the
borrower, and includes collusive practices among Bidders (prior to or after Bid
submission) designed to establish Bid prices at artificial, noncompetitive
levelsand to deprive the borrower of the benefits of free and open
competition.
iii. “collusive practice” means a scheme or arrangement between two or more
Bidders, with or without the knowledge of the PROCURING ENTITY,
designed to establish Bid prices at artificial, noncompetitive levels;
iv. “Coercive practice” means harming or threatening to harm, directly or
indirectly, persons, or their property to influence their participation in a
procurement process, or affect the execution of a contract.
The Funding Source, Borrower or PROCURINGENTITY, as appropriate, will seek to
impose the maximum civil, administrative and/or criminal penalties available under the
applicable law on individuals and organizations deemed to be involved which corrupt or
fraudulent practices.
When either party to the Contract gives noticeof a breach of Contract to the
PROCURING ENTITY’s Engineer for a cause other than those listed under Clause 17.2
above, the PROCURING ENTITY’s Engineer shall decide whether the breach is
fundamental or not.
If the Contract is terminated, the Contractor shall stop work immediately, make
the Site safe and secure, and leave the Site as soon as reasonably possible.
FORCE MAJEURE, RELEASE FROM PERFORMANCE
If the Contract is frustrated by the outbreak of war or by any other event entirely
outside the control of either the PROCURING ENTITY or the Contractor, the
PROCURING ENTITY’s Engineer shall certify that the Contract has been frustrated.
The Contractor shall make the Site safe and stop work as quickly as possible after
receiving this certificate and shall be paid for all work carried out before receiving it and
for any work carried out afterwards to which a commitment was made.
If the event continues for a period of eightyfour (84) days, eitherParty may then
give notice of termination, which shall take effect twenty eight (28) days after the giving
of the notice.

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After termination, the Contractor shall be entitled to payment of the unpaid
balance of the value of the Works executed and of the Materials and Plant reasonably
delivered to the Site, adjusted by the following:
(a.) Any sums to which the Contractor entitled under GCC Clause 271.27.1.
(b.) The Cost of his suspension and demobilization;
(c.) Any sums to which the PROCURING ENTITY is entitled.
The net balance due shall be paid or repaid within twentyeight (28) days of the
noticed termination.
SPECIFICATIONS
Notes on Specifications
A set of precise and clear specifications is a specifications is a prerequisite for
Bidders to respond realistically and competitively to the requirements of the
PROCURING ENTITY without qualifying or conditioning their Bids. In the context of
international competitive bidding, the specifications must be drafted to permit the widest
possible competition and, at the same time, present a clear statement of the required
standards of workmanship, materials, and performance of the goods and services to be
procured. Only if this is done will the objectives of economy, efficiency, and fairness in
procurement be realized responsiveness of Bids be ensured, and the subsequent task
of Bid evaluation facilitated. The specifications should require that all goods and
materials to be incorporated in the Works be new, unused, of the most recent or current
models, and incorporate all recent improvements in design and materials unless
provided otherwise in the Contract.
Samples of specifications from previous similar projects are useful in the respect.
The use of metric units is mandatory. Most specifications are normally written specially
by the PROCURING ENTITY or its Engineer to suit the Contract Works at hand. There
is no standard set of Specifications for universal application in all sectors in all regions,
but there are established principles and practices, which are reflected in these SBD.
There are considerable advantages in standardizing General Specifications for
repetitive Works in recognized public sectors, such as highways, ports, railways, urban
housing, irrigation, and water supply, in the same country or region where similar
conditions prevail. The General Specifications should cover all classes of workmanship,
materials, and equipment commonly involved in construction, although not necessarily
to be used in a particular Works Contract. Deletions or addenda should then adapt the
General Specifications to the particular Works.
Care must be taken in drafting specifications to ensure that they are not
restrictive. In the specification of standards for goods, materials, and workmanship,
recognized international standards should be used as much as possible. Where other
particular standards are used, whether national standards or other standards, the
specifications should state that goods, materials and workmanship that meet other

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authoritative standards, and which ensure substantially equal or higher quality than the
standards mentioned will also be acceptable. The following clause may be inserted in
the Special Conditions or Specifications.

Sample Clause: Equivalency of Standards and Codes


Wherever reference is made in the Contract to specific standards and codes to be met
by the goods and materials to be furnished, and work performed or tested, the
provisions of the latest current edition or revision of the relevant standards and codes in
effect shall apply, unless otherwise expressly stated in the Contract. Where such
standards and codes are national, or relate to a particular country or region, other
authoritative standards that ensure a substantially equal or higher quality than the
standards and codes specified will be accepted subject to the PROCURING ENTITY’s
Engineer’s prior review and written consent. Differences between the standards
specified and the proposed alternative standards shall be fully described in writing by
the Contractor and submitted to the PROCURING ENTITY’s Engineer at least twenty
eight (28) days prior to the date when the Contractor desires the PROCURING
ENTITY’s Engineer’s consent. In the event the PROCURING ENTITY’s Engineer
determines that such proposed deviations do not ensure substantially equal or higher
quality, the Contractor shall comply with the standards specified in the documents.
BILL OF QUANTITIES
Notes on the Bill of Quantities
Objectives
The objectives of the Bill of Quantities are
(a) To provide sufficient information on the quantities of Works to be performed to
enable Bids to be presented efficiently and accurately; and
(b) When a Contract has been entered into, to provide a priced Bill of Quantities for use
in the periodic valuation of Works executed.
In order to attain these objectives. Works should be itemized in the Bill of Quantities in
sufficient detail to distinguish between the different classes of Works, or between other
circumstances which may give rise to different considerations of cost. Consistent with
these requirements, the layout and content of the Bill of Quantities should be as simple
and brief as possible.

Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work,
outside the items included in the Bill of Quantities, is high. To facilitate checking by the
Entity of the realism of rates quoted by the Bidders, the Daywork Schedule should
normally comprise the following:

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(a) A list of the various classes of labor, materials, and Constructional Plant for which
basic daywork rates or prices are to be inserted by the Bidder, together with a statement
of the conditions under which the Contractor will be paid for work executed on a
daywork basis.
(b) Nominal quantities for each item Daywork, to be priced by each Bidder at Daywork
rates as Bid. The rate to be entered by the Bidder against each basic Daywork item
should include the Contractor’s profit, overheads, supervision, and other charges.

Provisional Sums
A general provision for physical contingencies (quantity overruns) may be made by
including provisional sum in the Summary Bill of Quantities. Similarly, a contingency
allowance for possible price increases should be provided as a provisional sum in the
Summary Bill of Quantities. The inclusion of such provisional sums often facilitates
budgetary approval by avoiding the need to request periodic supplementary approvals
as the future need arises. Where such provisional sums or contingency allowances are
used, the SCC should state the manner in which they will be used, and under whose
authority (usually the PROCURING ENTITY’s Engineer’s).
The estimated cost of specialized work to be carried out, or of special goods to be
supplied, by other contractors (refer to Clause 8 of the Conditions of Contract) should
be indicated in the relevant part of the Bill of Quantities as a particular provisional sum
with an appropriate brief description. A separate procurement procedure is normally
carried out by the PROCURING ENTITY to select such specialized contractors. To
provide an element of competition among the Bidders in respect of any facilities,
amenities, attendance, etc., to be provided by the successful Bidder as prime
Contractor for the use and convenience of the specialist contractors, each related
provisional sum should be followed by an item in the Bill Quantities inviting the Bidder to
quote a sum for such amenities, facilities, attendance, etc.
These Notes for preparing a Bill Quantities are intended only as information for the
PROCURING ENTITY or the person drafting the Bidding Documents. They should not
be included in the final documents.

INVITATION TO APPLY FOR ELIGIBILITY AND TO BID


Notes on the Invitation to Apply for Eligibility and to Bid
The Invitation to Apply for Eligibility and to Bid shall be:
(a) Advertised at least twice within a maximum period of fourteen (14) calendar days,
with a minimum period of six (6) calendar days between publications, in a newspaper of
general nationwide circulation which has been regularly published for at least two (2)
years before the date of issue of the advertisement;

Group 5 – Civil Engineering Law 18 | P a g e


(b) Posted continuously in the website of the PROCURING ENTITY’s service provider, if
any, and the Government Electronic Procurement System (G-EPS) during the maximum
period of fourteen (14) calendar days stated above;
(c) Posted at any conspicuous place reserved for this purpose in the premises of the
PROCURING ENTITY concerned, as certified by the head of the Bids and Awards
Committee (BAC) Secretariat of the PROCURING ENTITY during the maximum period
of fourteen (14) calendar days stated above;
(d) In the case of ADB, WB and JBIC funding, sent to all who have expressed an
interest in undertaking the works as a result of any General Procurement Notice issued;
and
(e) In addition, sent to all heads of associations of contractors within the area.
The Invitation provides information that enables interested Bidders to decide whether to
participate. Apart from the essential items listed in the Bidding Documents, the Invitation
should also indicate the following:
(a) The Bidding Documents shall be issued within thirty (30) calendar days from the last
day of the period of advertising and/or posting of the Invitation to Apply for Eligibility and
to Bid: In the case of the ADB, JBIC and WB, the Bidding Documents must be available
for purchase for a minimum of thirty (30) days;
(b) The following deadline for submission for Bids from the last day of the period for
advertising and/or posting of the Invitation: [Estimated Contract Cost (in pesos): period]
i. Up to twenty five (25) million Pesos, 15 to 30 calendar days;
ii. Above twenty five (25) million up to fifty (50) million Pesos, 15 to 45 calendar days.
iii. Above fifty (50) million up to two hundred (200) million Pesos, 30 to 60 calendar
days; and
iv. Above two hundred (200) million pesos, 60 to 90 days;
(c) Any important Bid evaluation criteria (for example, the application of a margin of
preference in Bid evaluation) or qualification requirement (for example, a requirement
for a minimum level of experience in constructing similar works for which the Invitation is
issued).

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Republic Act No. 544*
(As Amended by R.A. 1582)
An Act to Regulate the Practice of Civil Engineering in the Philippines
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
Article I
TITLE OF THE ACT AND DEFINITION OF TERMS
Section 1.Title of Act.”This Act shall be known as the “Civil Engineering Law.”
Section 2.Definition of Terms.”
(a) The practice of civil engineering within the meaning and intent of this Act shall
embrace services in the form of consultation, design, preparation of plans,
specifications, estimates, erection, installation and supervision of the construction of
streets, bridges, highways, railroads, airports and hangars, port works, canals, river and
shore improvements, lighthouses, and dry docks; buildings, fixed structures for
irrigation, flood protection, drainage, water supply and sewerage works; demolition of
permanent structures; and tunnels. The enumeration of any work in this section shall
not be construed as engineering knowledge and application.
(b) The term “civil engineer” as used in this act shall mean a person duly registered with
the Board of Civil Engineers in the manner as hereinafter provided.
Article II
BOARD OF EXAMINERS FOR CIVIL ENGINEERS
Section 3. Composition of Board.” Within thirty days after the approval of this Act
there shall be created a Board of Examiners for Civil Engineers, hereinafter referred to
as the Board, to be composed of a chairman and two members who shall be appointed
by the President of the Philippines, upon recommendation of the Commissioner of PRC.
The members of the Board shall hold office for a term of three years after appointment
or until their successors shall have been appointed and shall have qualified. The first
members of the Board appointed under this Act shall hold office for the following terms:
One member for one year; one member for two years; and one member for three years.
Each member of the Board shall qualify by taking the proper oath of office before
entering upon the performance of his duties. Any member of the Board may be removed
by the President of the Philippines, upon recommendation by the Professional
Regulation Commission for neglect of duty, incompetency, malpractice, unprofessional,
unethical, immoral, or dishonorable conduct, after having been given opportunity to
defend himself in a proper administrative investigation: Provided, That during the
process of investigation, the President of the Philippines, upon the recommendation of
the PRC, shall have the power to suspend such member under investigation and shall

Group 5 – Civil Engineering Law 20 | P a g e


appoint a temporary member in his place. Vacancies in the Board shall be filled for the
unexpired term only.
Section 4. Powers and duties of the Board.” The Board for Civil Engineers is vested
with authority, conformable with the provisions of this Act, to administer oaths, issue
suspend and revoke certificates of registration for the practice of civil engineering, issue
certificates of recognition to civil engineers already registered under this Act for
advanced studies, research, and/or highly specialized training in any branch of civil
engineering subject to the approval of the PRC, to investigate such violations of this Act
and the regulations, there under as may come to the knowledge of the Board and, for
this purpose, issue subpoena and subpoena duces tecum to secure appearance of
witnesses in connection with the charges presented to the Board, to inspect at least
once a year educational institutions offering courses in civil engineering, civil
engineering works, projects, or corporations, established in the Philippines and, for
safeguarding of life, health and property, to discharge such other powers and duties as
may affect ethical and technological standards of the civil engineering profession in the
Philippines. For the purpose of this Act, the Director of Public Works and/or his
authorized representative in the provinces and chartered cities shall be ex-officio agents
of the Board and as such it shall be their duty to help in the enforcement of the
provisions of this Act. The Board may, with the approval of the Professional Regulation
Commission issue such rules and regulations as may be deemed necessary to carry out
the provisions of this Act. The board shall also adopt a code of ethics in the practice of
civil engineering and have an official seal to authenticate its official documents.

Section 5. Qualifications of Board Members.” Each member of the Board shall, at the
time of his appointment:
a. Be a citizen and resident of the Philippines;4
b. Be at least thirty years of age and of good moral character;
c. Be a graduate of civil engineering from a recognized and legally constituted
school, institute, college or university.
d. Be a registered civil engineer duly qualified to practice civil engineering in the
Philippines;
e. Be a registered civil engineer, with a certificate as such, for a period of not less
than ten years prior to his appointment.
f. Not be a member of the faculty of any school, institute, college or university
where civil engineering course is taught, nor have a pecuniary interest in such
institutions;4
g. No former members of the faculty of any school, institute or university where civil
engineering is taught can become a member of the Board unless he had stopped
teaching for the last three consecutive years.

Group 5 – Civil Engineering Law 21 | P a g e


Section 6. Fees and Compensation of Board.” The Board for Civil Engineers shall
charge for each application for examination the sum of P100 (one hundred) payable to
the collecting and disbursing officer of the PRC upon filing of said application, and for
each certificate of registration, fifty pesos. Each member of the Board shall receive a
compensation of fifteen pesos for each applicant examined. A civil engineer in the
service of the Government of the Republic of the Philippines appointed as member of
the Board shall receive the compensation as herein provided, in addition to his salary in
the Government. All authorized expense of the Board, including the compensation
provided for herein, shall be paid by the collecting and disbursing officer of the PRC out
of such appropriation as may be made for the purpose. (See RA 6511 & PD 223)

Section 7. Annual Report.” The Board shall, at the end of each fiscal year, submit to
the PRC a detailed report of its activities and proceedings during the period covered by
the fiscal year ended.
Article III
EXAMINATION AND REGISTRATION
Section 8. Examination Requirement.” All applicants for registration for the practice of
civil engineering shall be required to pass a technical examination as hereinafter
provided.
Section 9. Holding of Examination.” Examination of candidates desiring to practice
civil engineering in the Philippines shall be give in the City of Manila of each year,
provided that such days do not fall on official holidays, otherwise the examinations shall
be held on the days next following.
Section 10. Subjects of Examination.” Applicants for certificate of registration as civil
engineer shall be examined, in the discretion of the Board, on the following subjects:
mathematics, including algebra, plane and spherical trigonometry, analytics, descriptive
and solid geometry, differential and integral calculus, and rational and applied
mechanics; hydraulics; surveying, including highway and railroad surveying; plane,
topographic and hydrographic surveying, and advance surveying; design and
construction of highways and railroads, masonry structures, walls, foundations, piers,
ports, wharves, aqueducts, sanitary engineering works, water supply systems, dikes,
dams and irrigation and drainage canals.
Section 11. Executive Officer of the Board.” The Commissioner of Professional
Regulation Commission shall be the executive officer of the Board and shall conduct the
examinations given by the said Board. He shall designate any subordinate officer of the
Professional Regulation Commission to act as the Secretary and custodian of all
records including examination papers and minutes of the deliberation of the Board.

Group 5 – Civil Engineering Law 22 | P a g e


Section 12. Qualifications for Examination.” Any person applying for admission to the
civil engineering examination as herein provided shall, prior to the date of the
examination, establish to the satisfaction of the Board that he has the following
qualifications:
a. Be at least twenty-one years of age;
b. Be a citizen of the Philippines;
c. Be of good reputation and moral character; and
d. Be a graduate of a four-year course in civil engineering from a school, institute,
college or university recognized by the Government or the State wherein it is
established.
Section 13. Oath of Civil Engineers.” All successful candidates in the examination
shall be required to take a professional oath before the Board of Civil Engineers or other
Government Officials authorized to administer oaths, prior to entering upon the practice
of the civil engineering profession.
Section 14. Seal and Use of Seal.” All registered civil engineers shall obtain a seal of
such design as the Board shall authorize and direct: Provided, however, That the serial
number of the certificate issued by the Board shall be included in the design of the seal.
Plans and specifications prepared by, or under the direct supervision of a registered civil
engineer shall be stamped with said seal during the life of the registrant’s certificate,
and it shall be unlawful for any one to stamp or seal any documents with said seal after
the certificate of registrant named thereon has expired or has been revoked, unless said
certificate shall have been renewed or re-issued.
Section 15. Exemption from Registration.”
1 .Registration shall not be required of the following persons:
a. Officers of enlisted of the United States and Philippine Armed Forces, and civilian
employees of the Government of the United States stationed in the Philippines
while rendering civil engineering services for the United States and/or
Philippines.
b. Civil engineers or experts called in by the Philippine Government for consultation,
or specific design and construction of the fixed structures as defined under this
Act, provided that their practice shall be limited to such work.
2. Any person residing in the Philippines may make plans on specification for any of the
following:
a. Any building in chartered cities or in towns with building ordinances, not
exceeding the space requirement specified therein, requiring the services of a
civil engineer.

Group 5 – Civil Engineering Law 23 | P a g e


b. Any wooden building enlargement or alteration which is to be used for farm
purposes only and costing not more than ten thousand pesos.
c. Provided, however. That there shall be nothing in this Act that will prevent any
person from constructing his own (wooden or light material) residential house,
utilizing the services of a person or persons required for the purposes, without
the use of a civil engineer, as long as he does no violate local ordinances of the
place where the building is to be constructed.

3. Nor shall anything in this Act prevent draftsmen, student clerk-or-work,


superintendents, and other employees of those lawfully engaged in the practice of civil
engineering under the provisions of this Act, from acting under the instruction, control or
supervision of their employer.
4. Nor shall anything in this Act prevent any person who prior to the approval of this Act
have been lawfully engaged in the practice of “maestro de obras” to continue as such,
provided they shall not undertake the making of plans supervision for the following
classes of work:
a. Building of concrete whether reinforced or not.
b. Building of more than two stories.
c. Building with frames of structural steel.
d. Building of structures intended for public gathering or assemblies such as
theaters, cinematographs, stadia, churches, or structures of like nature.

5. Nor shall anything in this Act prevent professional architects and engineers to
practice their professions.
Section 16. Refusal to Issue Certificate.” The Board for Civil Engineers shall not issue
a certificate to any person convicted by a court of competent jurisdiction of any criminal
offense involving moral turpitude, or to any person guilty of immoral or dishonorable
conduct, or to any person of unsound mind. In the event of a refusal to issue a
certificate to any person, the Board shall give to the applicant a written statement setting
forth its reason for such action, which statement shall be incorporated in the records of
the Board.
Section 17. Suspension and Revocation of Certificates.” The Board shall have the
power, after due notice and hearings to suspend or revoke the certificate of registration
for any cause mentioned in the preceding section.
Section 18. Re-issue and Replacement of Certificates.” The Board may, after the
expiration of one year from the date of certificate of registration is evoked and for
reasons it may deem sufficient, entertain an application for a new certificate of

Group 5 – Civil Engineering Law 24 | P a g e


registration from the registrant concerned. Such application shall be accomplished in
the same form prescribed for examination, but the Board may, in its discretion, exempt
the applicant from taking the requisite examination.
Section 19. Transitory Provisions.” As soon as this Act takes effect, any person
desiring to practice the profession of civil engineering shall be required to obtain a
certificate of registration in the manner and under the conditions hereinafter provided.
All civil engineers duly licensed under the provisions of Act Numbered Twenty-nine
hundred and eighty-five, as amended, at the time this Act takes effect, shall be
automatically registered under the provisions hereof. Certificates of registration held by
such persons in good standing shall have the same force and effect as though the same
have been issued under the provisions of this Act. All graduates in civil engineering from
a school, institute, college, or university recognized by the Government who have
passed the civil service examination for senior civil engineer and have been practicing
or employed in the Government as such during five years are exempted from taking
examination.

Article IV
ENFORCEMENT OF ACT AND PENAL PROVISIONS
Section 20. Enforcement of the Act by officers of the law.” It shall be the duty of all duly
constituted law officers of the national, provincial, city and municipal governments, or
any political subdivisions thereof, to enforce the provisons of this Act and to procesecute
any person violating the same.
Section 21. registration required.” Unless exempt from registration, no person shall
practice or office to practie civil engineering in the Philippines without having obtained
the proper certificate of registration from the Board for Civil Engineers.
Section 22. Penal provisons.” Any person who shall practice or offer to practice cvivil
engineering in the Philippines without being registeredin accordance with the provisions
of this Act or any person presenting or attempting to use as his own the certificate of
registration of a registered civil engineer, or any person who sha;; give and false or
forged evidence of any kind to board, or any person who shall impersonate any
registrant civil engineer of different name or any persob who shall attempt to use a
revoked or suspended certificate of registration, or any person who shall use in
connection with his name or otherwise assume, use or advertise any title or description
tending to convey the impression that he is a civil engineer, without holding a valid
certificate of registration, or any person who shall ciolate any of the provision of this Act,
shall be guilty of a misdemeanour and shall, upon conviction, be sentenced to a fine of
not less than five hundred pesos nor morethan two thousand pesos, or to suffer
imprisonment for a period of not less than six months not more than one year, or both,
in the discretion of the court.

Group 5 – Civil Engineering Law 25 | P a g e


Article V
MISCELLANEOUS PROVISIONS
Section 23. Preparation of plans and supervisions os construction by registered civil
engineer.” It shall be unlawful for any person to order or otherwise cause the
construction, reconstruction, or alteration of any building or struction, cinematographs,
stadia, chrusches or structures of like nature, and any other engineering structures
mentioned in section two of this act unless the designs, plans, and specifications of
same have been prepared under the responsible charge of, and signed construction,
reconstruction and/or alteration thereof are executed under he responsible charge and
drect supervision of a as provided aby law or ordinace of a city or provice or municipality
where the said structure is to be constructed.
Section 24. The practice of civil engineering is aprofessional service, admission to
which must be determined upon individual, personal qualifications.Hence, no firm,
partnership, corporation or association may be registered or licensed as such for the
practice of civil engineering: Provided, however, That persons properly registered and
licensed as civil engineers may, among themselves or with a person or persons properly
registered and licensed as architects, form, and obtain registration ofm a firm,
partnership or association using the term “Engineers” or “Engineers and Architects,” but,
nobodyshall be a member or partner of such firm, partnership or association unless he
is duly licensed civil engineers shall only render work and services proper for civil
engineer, as defined in this Act, and the members who are architects shall also only
renderwork and services proper for an architect, as defined in the law regulating the
practice for an architect, as defined in the law regulating the practice of architect;
individual members of such firms, partnership or association shall be responsible for
their own respective acts.
Secion 25. Reciprocity requirements.” No person who is not a citizen of the Philippines
at the time he applies to take theexamination shall be allowed to take it unless he can
prove in the manner provided by the Rules of Court that, by specific provision of law, the
country of which he is a citizen, subject, or national either admits citizens of the
Philippines to the practice of the same profession without restriction or allows the to
practice it after an examination on terms of strict and absolute equallywith citizens,
subjects, or nationals of the county concerned, including the unconditional recognition of
degrees issued by institutions of learning duly recognized for the purpose by the
Government of the Philippines, and was admitted to the practice of profession in the
Philippines after December 8, 1941, his actice practice in that profession, either in the
Philippines or in the state or country where he was practicing his profession, shall not
have been interrupted for a period of two years or more prior to july 4, 1946, and that
the country or state from which he comes allows the citizens of the Philippines by
specific provision of law, to practice the same profession without restriction or on terms

Group 5 – Civil Engineering Law 26 | P a g e


of strict and absolute equally with citizens, subjects or national of the country or state
concerned.
Section 26. roster of civil engineers.” A roster showing the names and places of
business of all registered civil engineers shall be prepared by the Comissioner of PRC
periodically but at least once a year. Copies of this roster shall be placed on the file with
the PRC and furnished to all department heads, mayors of all charactered cities, to the
Director of Public Works, to such other Bureaus, government entities or agencies and
municipal and provincial authorities as may be deemed necessary and to the public
upon request.
Section 27. Repeal.” All laws, parts of laws, order, ordinances, or regulations in conflict
with the provisions hereof; including parts of Act Numbered Twenty-nine hundred and
eighty-five, as amended, as pertains to the practice ofd civil engineering, are hereby
repealed, except the provisions of Act Numbered Thirtyone hundred and fifty nine
amending Act Numbered Twenty-nine hundred and eighty-five, pertaining to the practice
of “maestro de obras.”
Section 28. Construction of Act.” If any part or section of this Act shall be declared
unconstitutional, such declarations shall not invalidate the other provisons hereof.
Section 29. Effectivivity.” This Act shall take effect upon its approval. Approved,June
17,1950 ( As amended by R.A. No. 1582, approved on June 16, 1956).
MALACAŇANG
Manila
PRESIDENTIAL DECREE No. 1594
PRESCIBING POLICIES, GUIDELINES, RULES AND REGULATIONS FOR
GOVERNMENT
INFRASTRUCTURE CONTRACTS
Whereas, the present policies, rules and regulations covering government contracts for
infrastructure and other construction projects are generally fragmented and have been
found to be inadequate to cope with the intricate and complex process involved;
WHEREAS, there is a need to adopt a comprehensive, uniform, and updated set of
policies, guidelines, tules and regulations construction projects in order to achieve a
more efficient and projects.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby order and decree the
following:
Section 1. Policy Objectives. It is the policy of the government to adopt a set rulesv and
regulations covering government contracts for infrastructure and other construction
projects which shall:

Group 5 – Civil Engineering Law 27 | P a g e


(a) bring about maximum efficiency in project implementation and minimize project
costs and constract variations through sound practices in contract management;
(b) promote a healthy partnership between the government and the private sector in
furthering national development; and
(c) enhance the growth of the local construction industry and optimize the use of
infigenous manpower, materials and other sources.
Section 2. Detailed engineering. No bidding and/or award of contract for a construction
project shall be made unless the detailed engineering investigations, surveys, and
designs for the project have been sufficiently carried out in accordance with the
standards and specifications to be established under the rules and regulations to be
promulgated pursuanyt to Section 12 of this Decree so as to minimize quantity and cost
overruns and underruns, change orders and extra work orders, and unless the detailed
engineering documents have been approved by the Minister of Public Works,
Transportation and Communications, the Minister of Public Highways,of the Minister of
Energy, as the case may be.

Section 3. Prequalification of Prospective Contractors, a prospective contractor may


prequalified to offer his bid or tender for a construction project only if he meets the
following requirements.
(a)Legal Requirements . The prospective contractor must have been licensed as a
contractor for the current year pursuant to Republic Act No.4566, must have paid his
privilege tax to practice or engage in the contracting business for the current year , must
comply with the Administrative Order No. 66 of the office of the President of the
Philippines, and must comply with other existing pertinent laws, rules and regulations.
(b)Technical Requirements . The prospective contractor must meet the following
technical requirements to be established in accordance with the rules and regulations
to be promulgated pursuant to Section 12 of this Decree, to enable him to satisfactorily
prosecute the subject project :
1) Competence and experience of the contractor in managing projects similar to the
subject project.
2) Competence and experience of the contractor’s key personnel to be assigned to the
subject project.
3) Availability and commitment of the contractor’s equipment to be used for the subject
project.
(c) Financial Requirements. The net worth and liquid assets of the prospective
contractor must meet the requirements, to be established in accordance with the rules
and regulations to be promulgated pursuant to Section 12 of this Decree, to enable him
to satisfactorily execute the subject project. The prospective contractor maybe allowed

Group 5 – Civil Engineering Law 28 | P a g e


to cover the deficiency in the required network through a line of credit fully committed to
the subject project by a bank or financial institution acceptable to the ministry
concerned.
(d)Filipino Participation. The Government shall promote maximum participation of
eligible Filipino contractors in all constructions projects.

Section 4.Bidding. Construction project shall generally be undertaken by contract after


competitive public bidding. Projects may be undertaken by administration or force
account or by negotiated contract only in exceptional cases where time is of the
essence, or where there is lack of qualified bidders or contractors, or where there is a
conclusive evidences that greater economy and efficiency would be achieve through
this arrangement, and in accordance with provision of lost and acts on the matter,
subject to the approval of the ministry of public works, transportation and
communications, the minister of public highways, or the minister of energy, as the case
may be, if the project cost is less than P1 million or more. A bidders bond, in an amount
to be established in accordance with the rules and regulations to be promulgated
pursuant to Section 12 of this Decree, shall accompany the bid to guarantee that the
successful bidder shall, within a prescribed. From receipt of the noticed of award, enter
into account and furnish the required performance bond for the faithful and complete
prosecution of the work specified in the contract documents.

Section 5.Award and Contract. The contract maybe awarded to the lowest
prequalified bidder whose bid as evaluated complies with all terms and conditions in
the call for bid and is the most advantageous to the Government. To guarantee the
faithful performance of the contractor, he shall, prior to the award, post a performance
bond, in an amount to be established in accordance with the provisions of the Decree
shall be subject to the approval of the Minister of Public Works, Transportation and
Communications, the Minister of Public Highways, or the Minister of Energy, as the case
may be.

Section 6.Assignment and subcontract. The contractor shall not assign, transfer
,pledge , subcontract or make any other disposition of the contract or any part of interest
therein except with the approval of the Minister of Public Works, Transportation and
Communications, the Minister of Public Highways , or the Minister of the Energy , as the
case may be. Approval of the subcontract shall not relieve the main contractor from any
liability or obligation under his contract with the Government nor shall it create any
contractual relation between the subcontractor and the Government.

Section 7.Responsibility of the Contractor. The contractor shall assume full


responsibility from the contract work until its final acceptance by the Government and
shall be held responsible for any damage or destruction of works except those
occasioned by force majeure. Except likewise for force majeure, the contractor shall be
fully responsible for the safety , protection, security and convenience of his personnel,
third parties, and the public at large , as well as the works, equipment, installation and
the like to be affected by his construction work.

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Section 8.Adjustment Contract Price. Adjustment of contract price for construction
projects may be authorized by the Minister of Public Works, Transportation and
Communications, the Minister of Public Highways, or the Minister of Energy, as the case
may be, upon recommendation of the National Economic and Development Authority, if
during the effectivity of the contract, the cost of labor, equipment , materials, and
supplies required for the construction should increase or decrease due to direct acts of
the Government. The adjustment of the contract price shall be made using appropriate
formulas established in accordance with the rules and regulations to be promulgated
under Section 12 of this Decree.

Section 9. Change Order and Extra Work Order . A change order or extra work order
may be issued only for works necessary for the completion of the project and,
therefore , shall be within the general scope of contract as bidded and awarded. All
change orders and extra work orders shall be subject to the approval of the Minister of
Public Works, Transportation and Communications, the Minister of Public Highways, or
the Minister of Energy, as the case may be.

Section 10.Inspection and Construction of Contract Work. Inspection of the contract


work shall be made by the Government while such contract work is in the progress to
ascertain that the completed works comply in all respects with the standards and
requirements set forth in the contract documents. Not with standing such inspection, the
contractor shall be held responsible for the acceptability of the finished works. The
contractor shall promptly replace all materials and correct all works determined by the
Government as failing to meet contract requirements.

Section 11. Government´s Right to Take Over Contract Work. The Government may
take over the contract work should the contractor abandon the contract work, or unduly
delay the prosecution of the contract work, or become insolvent, or assign his assets for
the benefit of his creditors, or be adjudged bankrupt, or assign the contract work
without written approval by the Government, or violate any condition or term of the
contract. In any of these cases, the Government may terminate the employment of the
contractor and take over the contract work after giving due notice to the contractor and
his sureties.

Section 12.Implementing Rules and Regulations. The Minister of Public Works,


Transportation and Communications, as the lead official, the Minister of Public
Highways, the Minister of Energy, and the Director- General of the National Economic
and Development Authority, shall jointly promulgated the rules and regulations to
implement the provisions of this Decree. Once approved by the President of the
Philippines, these implementing rules and regulations shall be applicable to all contracts
for infrastructure and other construction projects of all government agencies including
government-owned or controlled corporations and other instrumentalities.

Section 13.Separability Clause. If any provision of this Decree is held unconstitutional,


the other provision shall remain valid.

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Section 14.Repealing Clause. All acts, Charters, Decrees, Letters of Instructions,
Executive orders, Proclamations, rules and regulations or part thereof in conflict with the
provisions of this Decree are hereby repealed or modified accordingly.
REPUBLIC ACT NO. 10912, JULY 21, 2016
AN ACT MANDATING AND STRENGTHENING THE CONTINUING PROFFESIONAL,
DEVELOPMENT PROGRAM FOR ALL REGULATED PREFESSIONS, CREATING
THE CONTINUING PROFESSIONAL DEVELOPMENT COUNCIL, AND
APPROPRIATING FUNDS THEREFORE, AND FOR OTHER RELATED PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in


Congress assembled.

ARTICLE I

TITLE, POLICY AND DEFINITION OF TERMS

Section 1. Title. – This Act shall be known as the “Continuing Professional


Development Act of 2016”.

Sec. 2. Declaration of Policy. – It is hereby declared the policy of the State to


promote and upgrade the practice of professions in the country. Towards this end, the
State shall institute measures that will continuously improve the competence of the
professionals in accordance with the international standards of practice, thereby,
ensuring their contribution in uplifting the general welfare, economic growth and
development of the nation.

Sec. 3. Definition of Terms. – The following terms shall be defined under this

(a) Accreditation refers to the formal or official approval granted to a person, a


program or an organization, upon meeting essential requirements of achievement
standards, including qualifications or unit(s) of a qualification, usually for a particular
period of time, as defined by an accrediting agency:
(b) AIPO/APO refers to the Accredited Integrated Professional Organization or the
Accredited Professional Organization in a given profession
(c) ASEAN Qualifications Reference Framework or AQRF refers to the device that
enables comparisons of qualifications across ASEAN Member States
(d) ASEAN Mutual Recognition Arrangement or ASEANMRA refers to a regional
arrangement entered into by the ASEAN Member States, predicated on the mutual
recognition of qualifications, requirements met, licenses and certificates granted,
experience professional services within the region:
(e) Competence refers to an ability that extends beyond the possession of
knowledge and skills, which include cognitive, functional, personal and ethical
competence

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(f) Continuing Professional Development or CPD refers to the inculcation of
advanced knowledge, skills and ethical values in a post-licensure specialization or in an
inter- or multidisciplinary field of study, for assimilation into professional practice, self-
directed research and/or lifelong learning:
(g) CPD Council refers to a body created to promote and ensure the continuous
improvement of professionals, in accordance with national, regional and international
standards of practice;
(h) CPD credit unit refers to the value of an amount of learning that can be
transferred to a qualification achieved from formal, informal or nonformal learning
setting, where in credits can be accumulated to predetermined levels for the award of a
qualification;
(i) CPD Program refers to a set of learning activities accredited by the CPD Council
such as seminars, workshops, technical lectures of subject matter meetings, nondegree
training lectures and scientific meetings, modules, tours and visits, which equip the
professionals with advanced knowledge, skills and values in specialized or in an inter-
or multidisciplinary field of study, self-directed research and/or lifelong learning
(k) Formal learning refers to educational arrangements such as curricular
qualifications and teaching-learning requirements that take place in education and
training institutions recognized by relevant national authorities, and which lead to
diplomas and qualifications
(l) Informal learning refers to learning that occurs in daily life assessed, through the
recognition, validation and accreditation process, and which can contribute to a
qualification;
(m) Learning outcomes refer to what a learner can be expected to know, understand
and/or demonstrate as a result of a learning experience
(n) Lifelong learning refers to learning activities undertaken throughout life for the
development of competencies and qualifications of the professional
(o) Nonformal learning refers to learning that has been acquired in addition or
alternatively to formal learning, which may be structured and made more flexible
according to educational and training arrangements
(p) Online learning activities refers to structured or unstructured learning initiatives,
which make use of the internet and other web-based Information and Communications
Technology solutions
(q) Pathways and Equivalencies refer to mechanisms that provide access to
qualifications and assist professionals to move easily and readily between the different
education and training sectors, and between these sectors, and the labor market,
through the Philippine Credit Transfer System

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(r) Philippine Qualifications Framework or PQF refers to the quality assured national
system for the development, recognition and award of qualifications at defined levels,
based on standards of knowledge, skills and values, acquired in different ways and
methods by learners and workers

(s) Prior learning refers to a person’s skills, knowledge and competencies that have
been acquired through work experience, training, independent study, volunteer activities
and hobbies, that may be applied for academic credit, as a requirement of a training
program or for occupational certification
(t) Professional refers to a person who is registered and licensed to practice a
regulated profession in the Philippines and who holds a valid Certificate of Registration
and Professional Identification Cards (PIC) from the Professional Regulation
Commission (PRC)
(u) Qualification refers to a status gained after a person has been assessed to have
achieved learning outcomes or competencies in accordance with the standard specified
for a qualification title, and is proven by a document issued by a recognized agency or
body
(v) Quality assurance refers to planned and systematic processes that provide
confidence in the design, delivery and award of qualifications within an education and
training system, and is a component of quality management that is focused on ensuring
that quality requirements will be fulfilled; and
(w) Self-directed learning refers to learning activities such as online training,
local/international seminars/nondegree courses, institution/company-sponsored training
programs, and the like, which did not undergo CPD accreditation but may be applied for
an awarded CPD units by the respective CPD Council.
ARTICLE II
CPD PROGRAMS, COUNCILS AND SECRETARIAT
Sec.4. Strengthening the CPD Program. – There shall be formulated and
implemented CPD Programs in each of the regulated professions in order to:
(a) Enhance and upgrade the competencies and qualifications of professionals for the
practice of their professions pursuant to the PQF, the AQRF and the ASEANMRAs;
(b) Ensure international alignment of competencies and qualifications of professionals
through career progression mechanisms leading to specialization/sub-specialization;
(c) Ensure the development of quality assured mechanisms for the validation,
accreditation and recognition of formal, nonformal and informal learning outcomes,
including professional work experiences and prior learning:

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(d) Ensure maintenance of core competencies and development of advanced and new
competencies, in order to respond to national, regional and international labor market
needs; and
(e) Recognize and ensure the contributions of professionals in uplifting the general
welfare, economic growth and development of the nation.
Sec. 5. Nature of CPD Programs. – The CPD Programs consist of activities that range
from structured to nonstructured activities, which have learning processes and
outcomes.These include, but are not limited to, the following:
(a) Formal learning;
(b) Nonformal learning;
(c) Informal learning;
(d) Self-directed learning;
(e) Online learning activities; and
(f) Professional work experience.
Sec. 6. Powers, Functions and Responsibilities of the PRC and the Professional
Regulatory Boards (PRBs). – The PRC and the PRBs shall undertake the overall
implementation of the CPD Programs, and for this purpose, shall:
(a) Organize CPD Councils for each of the regulated professions and promulgate
guidelines for their operation;
(b) Review existing and new CPD Programs for all of the regulated professions;
(c) Formulate, issue, and promulgate guidelines and procedures for the implementation
of the CPD Programs;
(d) Coordinate with the academe, concerned government agencies, and other
stakeholders in the implementation of the CPD Programs and other measures provided
under this Act; and
(e) Coordinate with concerned government agencies in the development of mechanisms
and guidelines, in the grant and transfer of credit units earned from all the learning
processes and activities, pursuant to this Act.
Sec. 7. CPD Council. – There is hereby created a CPD Council in each of the
regulated professions, which shall be under the supervision of the concerned PRB.
Every CPD Council shall be composed of a chairperson and two (2) members.
The chairperson of the CPD Council shall be the member of the PRB so chosen by the
PRB concerned to sit in the CPD Council.

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The first member shall be the president or officer of the AIPO/APO duly authorized by its
Board of Govenors/Trustees. In the absence of the AIPO/APO, the PRB concerned
shall submit within ten (10) working days from notification of such absence, a list of
three (3) recommendees from the national professional organizations. The PRC shall
designate the first member within thirty (30) days from receipt of the list.
The second member shall be the president or officer of the national organization of
deans or department chairpersons of schools, colleges or universities offering the
course requiring the licensure examination. In the absence of such organization, the
PRB concerned shall submit, within ten (10) working days from notification of such
absence, a list of three (3) recommendees from the academe. The PRC shall designate
the second member within twenty (20) working days from receipt of the list.
The term of office of the chairperson of the CPD Council shall be coterminous with
his/her incumbency in the PRB unless sooner replaced by the PRB concerned through
a resolution, subject to the approval of the PRC. The first and second members shall
have a term of office of two (2) years unless sooner replaced through a resolution by the
AIPO/APO concerned or the organization of deans or heads of departments,
respectively. However, members of the CPD Council who are appointed by the PRC
may be replaced before the end of the two (2)-year period, upon the recommendation of
the PRB through a resolution.
Sec. 8. Powers, Functions and Responsibilities of the CPD Council. – The CPD
Council for each profession shall:
(a) Ensure the adequate and appropriate provision of CPD Programs for their respective
profession;
(b) Evaluate and act on applications for accreditation of CPD Providers and their CPD
Programs;
(c) Monitor and evaluate the implementation of the CPD Programs;
(d) Assess and/or upgrade the criteria for accreditation of CPD Providers and their CPD
Programs on a regular basis;
(e) Develop mechanisms for the validation, accreditation and recognition of self-directed
learning, prior/informal learning, online learning, and other learning processes through
professional work experience;
(f) Conduct researches, studies and benchmarking for international alignment of the
CPD Programs;
(g) Issue operational guidelines, with the approval of the PRC and the PRB concerned;
and
(h) Perform such other functions related or incidental to the implementation of the CPD.
Sec. 9. Secretariat. – A CPD Council Secretariat is hereby created at the PRC Central
and Regional Offices to provide technical, administrative and operational support to the

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CPD Councils and the PRBs in the implementation of the CPD Programs. The CPD
Council Secretariat shall be headed by an Executive Director to be appointed by the
PRC.

ARTICLE III
CPD PROGRAM IMPLEMENTATION AND MONITORING
Sec. 10. CPD as Mandatory Requirement in the Renewal of Professional License
and Accreditation System for the Practice of Professions. – The CPD is hereby
made as a mandatory requirement in the renewal of the PICs of all registered and
licensed professionals under the regulation of the PRC.
Sec. 11. Recognition of Credit Units. – All duly validated and recognized CPD credit
units earned by a professional shall be accumulated and transferred in accordance with
the Pathways and Equivalencies of the PQF.
Sec. 12. Career Progression and Specialization. – The PRC and the PRBs, in
consultation with the AIPO/APO, the Civil Service Commission (CSC), other concerned
government agencies and industry stakeholders, shall formulate and implement a
Career Progression and Specialization Program for every profession. The Career
Progression and Specialization Program shall form part of the CPD.
Sec. 13. Role of Concerned Government Agencies and the Private Sector. – All
concerned government agencies and private firms and organizations employing
professionals shall include the CPD as part of their human resource development plan
and program.
Sec. 14. Presumptive Approval - All CPD programs duly submitted for accreditation
shall be deemed approved after ten (10) working days from receipt thereof if no
feedback from the CPD Council is received. Thereafter, the CPD providers shall be
allowed to offer the same, provided, that the applicable rule of awarding of credits is
strictly observed.
The CPD Council or its designated monitors shall evaluate the implementation of the
programs/services offered. Fraudulent acts in the implementation of the CPD program
are punishable under the pertinent provisions of applicable laws.
Section 15. Supplementary Provisions.
15.1. The Boards and their respective CPD Councils are given a period of
one (1) month to consult with their stakeholders for the review of their
Operational Guidelines and to accordingly amend the same to conform
with this issuance. Those which have not issued their Operational
Guidelines shall be guided by this issuance.

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15.2. CPD providers with valid accreditation at the time this Resolution
takes effect may still continue their public offering of CPD programs and
award the corresponding CPD credit units approved by the concerned
CPD Councils.
15.3. Professionals who executed an Undertaking prior to the effectivity
of this Resolution shall only comply with the required number of credit
units aS amended pursuant to this Resolution equivalent to not more than
fifteen (15) credit units.

ARTICLE IV
FINAL PROVISIONS
Sec. 16. Funding. – The implementation of the provisions of this Act shall be
immediately included in the PRC programs, the funding of which shall be included in its
annual submissions for inclusion in the annual General Appropriations Act.
The funding requirement herein mentioned shall be used for the regular operations of
the CPD Councils, including the monitoring of the conduct of the CPD Programs.
The PRC shall review and approve the proposed budget for each CPD Council, taking
into consideration the reasonable expenses that will be incurred for travel,
honorarium/allowances, and per diems, when attending official CPD Council meetings
or performing other related functions assigned to them.
Sec. 17. Implementing Rules and Regulations. – The PRC and the PRBs, in
consultation with the AIPO/APO and other stakeholders, shall promulgate the
implementing rules and regulations (IRR) within six (6) months from the effectivity of this
Act. However, a PRB may prescribe its own requirements or procedure relating to the
CPD as may be pertinent and applicable to the specific profession: Provided, That the
same does not contravene any of the provisions of this Act and its IRR.
Sec. 18. Fraud Relating to CPD. – Fraudulent acts relating to the implementation and
enforcement of this Act shall be punishable under the pertinent provisions of the
Revised Penal Code, the New Civil Code and other applicable laws.
In addition to the penalties prescribed in the aforementioned laws, a professional who is
adjudged guilty of any fraudulent act relating to the CPD shall also be meted with the
penalty of suspension or revocation of his/her PRC Certificate of Registration and/or
Certificate of Specialization.

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In case of a government official or employee who is party to any fraudulent act relating
to the CPD, he/she shall also be subject to the administrative penalties that may be
imposed under the anti-graft laws, the Administrative Code and the Code of Conduct of
Public Officials and Employees.
Sec. 19. Separability Clause. – If any part or provision of this Act is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain in full force and
effect.
Sec. 20. Repealing Clause. – All laws, decrees, executive orders and other
administrative issuances or parts thereof, which are inconsistent with the provisions of
this Act, are hereby repealed or modified accordingly.
Sec. 21. Effectivity. – This Act shall take effect fifteen (15) days following its complete
publication in the Official Gazette or in two (2) newspapers of general circulation in the
Philippines.

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