Salient IRR Revisions

Procurement of Infrastructure
IRR Revisions: Infra
 Eligibility Requirements (Sec. 23)

 Legal Documents
 DTI / SEC / CDA Registration

 Mayor’s permit for principal place of business

 Technical Documents
 Statement of all on-going and completed contracts

 PCAB license and registration

 Unless otherwise stated in treaty or international or executive agreement
IRR Revisions: Infra
 Eligibility Requirements (Sec. 23)

 Financial Documents
 Audited Financial Statement received by the BIR
 NFCC computation or Credit Line Commitment from a
universal or commercial bank
 For LGUs, other banks authorized by BSP to issue said instrument
IRR Revisions: Infra
 Eligibility Requirements (Sec. 23)

 If Joint Venture -
 JVA
 If no JVA, sworn statements by each partner that they will
enter into and abide by provisions of the JVA if awarded
the contract
IRR Revisions: Infra
 Eligibility Criteria (Sec. 23)

 Legal Eligibility
 General rule: 75% Filipino (LOI 630)
 If joint venture, less than 75% is allowed if -
 Not less than 25% Filipino
 Structures to be built require techniques not possessed by 75% Filipinos
 Foreign contractors allowed if stated in treaty or international or
executive agreement
IRR Revisions: Infra
 Eligibility Criteria (Sec. 23)

 Technical Eligibility
 PCAB License (RA 4566)
 Satisfactory CPES rating and/or certificate of
completion and acceptance
IRR Revisions: Infra
 Eligibility Criteria (Sec. 23)

 Technical Eligibility
 Track Record: Single Largest Contract for Infra
 Retain at 50%
 But within a period of ten years
 For foreign funded procurement, a different track record
may be agreed upon
IRR Revisions: Infra
 Eligibility Criteria (Sec. 23)

 Financial Eligibility
 NFCC at least equal to ABC
 Credit Line Certificate at least equal to 10% of ABC
 Issued by Universal or Commercial Bank
 For LGUs: other banks certified by BSP as authorized to issue said CLC
 Option to submit cash deposit certificate deleted
IRR Revisions: Infra
 Submission and Receipt of Bids (Sec. 25)

 Two-Envelope System (Eligibility requirements

included in the Technical Proposal)

 Technical (including eligibility requirements) and

Financial Proposals will now be submitted at the
same time
IRR Revisions: Infra
 Submission and Receipt of Bids (Sec. 25)

 First Envelope
 Eligibility requirements
 Bid security
 Project requirements
 Omnibus sworn statement
IRR Revisions: Infra
 Submission and Receipt of Bids (Sec. 25)

 Second Envelope
 Financial information/documents specified in the
Philippine Bidding Documents
IRR Revisions: Infra
 Post-qualification (Sec. 34)

 Submission of the ff documents:

 Tax clearance
 Latest income and business tax returns
 Certificate of PhilGEPS registration
 Other appropriate licenses and permits required by
law and stated in the Bidding Documents.
IRR Revisions: Infra
 Notice of Award (Sec. 37)

 Conditioned on the following:

 If joint venture, submission of JVA
 If foreign-funded and stated in treaty or international
or executive agreement, PCAB License
 Posting of Performance Security
 Signing of Contract
 If required, approvals by higher authority
IRR Revisions: Infra
 Bid & Performance Securities (Secs. 27 & 39)
 Deleted certified check from acceptable forms

 In general, bank issued securities must be issued

by a universal/commercial bank

 However, in biddings conducted by LGUs, securities

may be issued by banks certified by BSP as
authorized to issue said instruments

 Surety Bonds must be accompanied by certification from

Insurance Commission that issuer is authorized to issue
such security
IRR Revisions: Infra
Form of Bid and Performance Amt of Bid Security Amt of Performance
Security (% of the ABC) Security
(% of Contract Price)
a) Cash, cashier’s/manager’s
check, bank guarantee/ draft
2% 10%
b) Irrevocable LC

c) Surety bond callable upon 5% 30%

demand

d) Combination of the foregoing Proportionate to share of Proportionate to share of form

form with respect to the with respect to the total
total amount of security amount of security
IRR Revisions: Infra
 Warranty Security (Sec. 62)
 Warranty period vs. Warranty security period
 Warranty security period reduced to 1 year
 Liability per stage
 From project construction to final acceptance
 From project completion to final acceptance
 From final acceptance to warranty security period
IRR Revisions: Infra
 Liquidated Damages (Sec. 68)

 Adopted formula of Goods

 One-tenth of one percent (1%) of the cost of the
unperformed portion for every day of delay
Thank you
 Comments, questions?