CHANGE WORK ORDERCHANGE WORK ORDER

A change work order may be issued by A change work order may be issued by implementing official any increase or decrease in implementing official any increase or decrease in quantities of original work items in the contract quantities of original work items in the contract after the same has been found to strictly comply after the same has been found to strictly comply with section C1-1 and approved by the with section C1-1 and approved by the appropriate official if the amount of the change appropriate official if the amount of the change order is within the limits of the former’s authority order is within the limits of the former’s authority to approve original contracts and under the to approve original contracts and under the following conditions: following conditions:

a.a. Where the aggregate cost of Cost order(s) is limited to Where the aggregate cost of Cost order(s) is limited to 25% of the escalated original contract cost provided 25% of the escalated original contract cost provided that no major pay item (i.e., pay item which represents that no major pay item (i.e., pay item which represents at least 20% of the estimated cost of the contract) shall at least 20% of the estimated cost of the contract) shall be increased by more than 100% of its original cost. All be increased by more than 100% of its original cost. All Change orders shall be subjected to price adjustment Change orders shall be subjected to price adjustment in accordance with duly approved guidelines.in accordance with duly approved guidelines.

b.b. Where there is decrease or increase in original work Where there is decrease or increase in original work items under the contract due to necessary items under the contract due to necessary deletion/addition of work items or sections of the deletion/addition of work items or sections of the project.project.

c.c. Where there is damage to structure and/or destruction Where there is damage to structure and/or destruction of finished work in any section of the project due to of finished work in any section of the project due to force majeure or causes beyond the human control force majeure or causes beyond the human control

SUSPENSION OF WORKSUSPENSION OF WORK

1.1. The government or its duly authorized representative shall have The government or its duly authorized representative shall have the authority to suspend the work wholly or partly by written order the authority to suspend the work wholly or partly by written order for such period as may the part of the contractor to correct bad for such period as may the part of the contractor to correct bad conditions which are unsafe or for the general public to carry out conditions which are unsafe or for the general public to carry out valid orders given by the Government or to perform any valid orders given by the Government or to perform any provisions of the contract, or due to adjustment of plans to suit provisions of the contract, or due to adjustment of plans to suit field conditions as found necessary during construction. The field conditions as found necessary during construction. The contractor shall immediately comply with such order to suspend contractor shall immediately comply with such order to suspend the work wholly or partly.the work wholly or partly.

2.2. The contractor or its duly authorized representative shall have the The contractor or its duly authorized representative shall have the right to suspend work operation on any or all projects/activities right to suspend work operation on any or all projects/activities along the critical path of activities after 15 calendar days from the along the critical path of activities after 15 calendar days from the date of receipt of written notice from the contractor to the district date of receipt of written notice from the contractor to the district engineer/regional director/consultant, as the case maybe, due to engineer/regional director/consultant, as the case maybe, due to the following:the following:

a.a. There exist right-of-way problems which prohibit the contractor from There exist right-of-way problems which prohibit the contractor from performing work in accordance with the approved construction schedule.performing work in accordance with the approved construction schedule.

b.b. Requisite constructions plans which must be owner furnished are not Requisite constructions plans which must be owner furnished are not issued to the contractor precluding any work called for by such plans.issued to the contractor precluding any work called for by such plans.

c.c. Peace and order conditions make it extremely dangerous, if not impossible, Peace and order conditions make it extremely dangerous, if not impossible, to work. However, this condition must be certified in writing by the Philippine to work. However, this condition must be certified in writing by the Philippine National Bank (PNP) station which has responsibility over the affected area National Bank (PNP) station which has responsibility over the affected area and confirmed by the Department of Interior and Local Government (DILG) and confirmed by the Department of Interior and Local Government (DILG) regional director.regional director.

d.d. There is a failure on the part of the government to deliver government There is a failure on the part of the government to deliver government furnished materials and equipment as stipulated in the contract.furnished materials and equipment as stipulated in the contract.

e.e. Delay in the payment of the contractor’s claim for progress billing and/or Delay in the payment of the contractor’s claim for progress billing and/or price escalation beyond forty-five (45) calendar days from the time the price escalation beyond forty-five (45) calendar days from the time the contractor’s claim has been certified to by the implementing agency’s contractor’s claim has been certified to by the implementing agency’s authorized representative that the documents are complete unless there are authorized representative that the documents are complete unless there are justifiable reasons thereof which shall be communicated in writing to the justifiable reasons thereof which shall be communicated in writing to the contractor.contractor.

LIQUIDATED DAMAGELIQUIDATED DAMAGE1.1. Where the contractor refuses or fails to satisfactory complete the work Where the contractor refuses or fails to satisfactory complete the work

within the specified contract time extension duly granted and is hereby in within the specified contract time extension duly granted and is hereby in default under the contract, the contractor shall pay the Government for default under the contract, the contractor shall pay the Government for liquidated damages, and not by way of penalty, an amount to be liquidated damages, and not by way of penalty, an amount to be determined in accordance with the following formula for each calendar day determined in accordance with the following formula for each calendar day of delay, until the work is completed and accepted or taken over by the of delay, until the work is completed and accepted or taken over by the government.government.

TLD = VUUP x [(1+OCC)” – 1] x KTLD = VUUP x [(1+OCC)” – 1] x KVUUP = TCP-VCUPVUUP = TCP-VCUPWhere:Where:TLD= total liquidated damage, in pesosTLD= total liquidated damage, in pesosVUUP= value of the uncompleted and unusable portions of the contract work, as of the VUUP= value of the uncompleted and unusable portions of the contract work, as of the

expiry date of the contract, in pesosexpiry date of the contract, in pesosTCP= total contract price, in pesosTCP= total contract price, in pesosVCUP= value of the completed and usable portion of the contract work, as of the expiry date VCUP= value of the completed and usable portion of the contract work, as of the expiry date

of the contract in pesosof the contract in pesosOCC= Prevailing opportunity cost of capital for government projects set by NEDA which OCC= Prevailing opportunity cost of capital for government projects set by NEDA which

currently pegged at 15%currently pegged at 15%n=total number of years that the contract work is delayed after the expiry date of the n=total number of years that the contract work is delayed after the expiry date of the

contract contract