NEDA Guidelines

IMPLEMENTING RULES AND REGULATIONS

ON THE PROCUREMENT OF CONSULTING SERVICES
FOR GOVERNMENT PROJECTS

1. DECLARATION OF PRINCIPLES

1.1 These IRR, as an instrument of government, enfore and fulfill the spirit
and purpose of the 1987 Constitution as expressed in the following State policies
embodied therein:

a. The State give priority to education, science and technology arts,

culture, and sports to foster patriotism and nationalism, accelerate social
progress, and promote total human liberation and development.

b. The State shall develop a self-reliant and independent national

economy effectively controlled by Filipinos.

c. The State recognizes the indispensable role of the private sector,

encourages private enterprise, and provides incentives to needed
investments.

d. The State shall protect Filipino enterprises agrainst unfair foreign

competition and trade practices.

e. The Congress shall enact measures that will encourage the

formation and operation for enterprises whose capital is wholly owned by
Filipinos.

f. In the grant of rights, privileges, and concessions covering the

national economy and patrimony, the State shall give preference to
qualified Filipinos.

g. The State shall regulate and exercise authority over foreign

investments within its national jurisdiction and in accordancen with its
national goals and priorities.

h. The State shall promote the preferential use of Filipino labor,

domestic materials and locally produced goods, and adopt measures that
help make them competitive.

i. The sustained development of a reservoir of national talents

consisting of Filipino scientists, entrepreneurs, professinals, high-level
technical manpower and skilled workers and craftmen in all fields shall be
promoted by the State.
 j. The practice of all prosessions in the Philippines shall be limited to
Filipino citizens, save in cases prescribed by law.

k. The State shall give priotity to research and development,

invention, innovation, and their utilization; and to science and technology
education, training and services. It shal support indegenous, appropriate
and self-reliant scientific and technoligical capabilities, and their
application to the countrys productive systems and national life.

1.2 Based on the aforestated basic policies, Consultants for government

projects shall be limited to Filipinos, save in cases prescribed by law or otherwise
provided for in Sections 2.1 and 2.5 of these IRR.

2. GENERAL POLICIES AND DEFINITION OF TERMS

2.1 Policy Objectives

2.1.1 It is the policy of the State to adopt a standard set of rules and
regulations governing the procurement of consulting services for
government projects and other related activities which shall:

a. Achieve maximum efficiency and economy in the development and

implementation of government projects and related activities;

b. Enhance the growth of the local consulting industry and optimize the
use of local expertise materials and other resource;

c. Bring about the tranfer or introduction of new technology into the

country; and

d. Serve as means of maintaining transparency on various government

transactions.

2.1.2 The procurement of consulting services for government projects shall be

done through open competitive selection process unless otherwise provided herein
or under existing laws, rule and regulations.

2.1.3 Consulting services for government projects shall as much as possible be

financed from local sources. Whenever consulting services for government
projects are to be financed from foreign sources, the same shall preferably be
funded from foreign grants and the fAgreements covering such foreign grants
shall as much as possible adhere to these IRR. In case the consulting services are
funded from foreign loans and credits, conditions in the loan agreements with the
 foreign overnments or lending institutions shall be in full conformity with these
IRR. except as may otherwise be authorized pursuant to Section 4 of the Foreigh
Borrowings Act (R.A. No. 4860, as amended).

2.2 Definition of Terms

2.2.1 Government Projects

2.2.1.1 Government projects means infrastructure and non-infrastructure

projects.

a. Infrastructure project include construction, improvement,

rehabilitation or restoration of roads and bridges, railways, airports,
seaports, commucation facilities, irrigation, flood control and
drainage, water supply, sanitationand sewerage systems, shore
protection, energy/power and elcetrification facilities, national
buildings, school buildings, hospital buildings, and otehr related
construction projects that form part of the government capital
investment.

b. Non-infrustructure projects include agricultural, industrial, social,

environmental tourism, reclamation and all other types of
government projects not otherwise classified as infrastructure.

2.2.2 Consulting Services

2.2.2.1 Consulting services are services requiring adequate technical

expertise and financial capability I undertaking the following types of
services:

a. Advisory and Review Services:

b. Pre-Investment or Feasibility Studies;
c. Design;
d. Construction Supervision;
e. Management and Related Services; and
f. Other Technical Services or Special Studies.

2.2.2.2 These services may be in the fields of Engineering, Architecture,

Law, Finance, Management, Agriculture and the like. The components or
activities included in the above-mentioned services are described in Section 4 of
these IRR.

2.2.3 A Consultant
2.2.3.1 A Consultant is either a natural or juridical person who is qualified by
appropriate education, training and relevant experience to render any or all
of the types and fields of consulting services as defined above and in
Section 4 of these IRR. A C onsultant may either be a Filipino Consultant
or a Foreign Consultant as defined below.

2.2.4 A Filipino Consultant

2.2.4.1 A Filipino Consultant may be an individual, sole proprietorship,

partnership or a corporation satisfying the definition of a
Consultant as defined in Section 2.2.3 and who satisfies the
following requirements;

a. Individual

i. He must be a citizen of the Philippines.

ii. When the types and fields of consulting services in which he

wishes to engage involve professions regualted by law, he must be
a registered professional authorized by the appropriate regulatory
body to practice those professions.

b. Sole Proprietorship

i. The owner of hte sole proprietorship must be a citizen of the

Philippines.

ii. The sole proprietorship firm must be registered and authorized by

the Bureau of Domestic Trade.

iii. When the types and fields of consulting services in which the sole
propritorship wishes to engage involve professions regulated by
law, the owner and key staff of the sole proprietorship must be
registered professionals authorized by the appropriate regulatory
body to practice those professions or allied professions.

c. Partneship

I. At least sixty percent (60%) of the partnerships interest must be

owned by citizens of the Philippines.

ii. The partnership firm must be registered with and authorized by the
Securities and Exchange Commission to engage in consulting
services.
 iii. When the types and fields of consulting services in which the
partnership fir wishes to engage involve professins regualted by
law, all the partners of the partnership firms shall be registered
professionals authorized by the appropriate regulatory body to
practice those professions or allied professions.

d. Corporation

i. At least sixty percent (60%) of both the subscribe and paid-up

capital must be owned by citizens of the Philippines.

ii. The corporation must be registered with and authorized by the

Securities and Exchange Commission to engage in consulting
services.

iii. When the types and fields of consulting services in which the
corporation wishes to engage involve the practice of professions
regulated by law, the following conditions shall be observed:

(1) One hundred percent (100%) of both the subscribed and paid-up
capital must be owned by registered professionals authorized by
the appropriate regulatory body to practice those professions or
allied professions; and

(2) The principal officers of the corporation must be registered

professionals authorized by the appropriate regulatory body to
practice those professions or allied professions.

2.2.4.2 With respect to consulting entities (i.e. sole proprietorship, partnership or

corporation) wishing to engage in multi-disciplinary undertakings not all of
which involve the practice of professions regulated by law, the ownership,
principal officers, and key staff of the consulting entity, as the case may be,
may include those from other professions not regulated by law but related to
the types of consulting services defined under Section 4 hereof, provided that
the latter shall not exceed 40% of the requirements under item (iii) above.

2.2.5. A Foreign Consultant

2.2.5.1 A Foreign Consultant may be an individual, sole proprietorship, partnersip

corporation who satisfies the definition of a Consultant as defined in Section
2.2.3 but who does not meet the citizenship, ownership/interest and/or
registration/authorization requirements for a Filipino Consultant as defined in
Section 2.2.4. To qualify for hiring for consulting services, the Foreign
Consultant must satisfy the following minimum requirements:
 a. The Foreign Consultant must be registered with the Securities and Exchange
Commission and/or any agency authorized by law.

b. When the types and fields of consulting services in which the Foreign
Consultant wishes to engage involve the practice of regulated professions, the
foreign Consultant must be authorized by the appropriate Philippine
government professional regulatory body to engage in consulting services
involving the practice of those professions and allied professions. The limits
of such authority shall be strictly observed.

2.2.5.2 The above requirements shall be complied with only as preconditions to the
award of contract but not during the selection process. Presented under
Appendix G are the documentary requirements and procedures including the
time frame involved, in registering with the Securities and Exchange
Commission and the Professional Regulation Commission.

2.3 The Need for Consultants

2.3.1 The services of consultants may be engaged by any government agency,

including government owned or controlled corporations and instrumentalities
thereof for Government projects or related activities of such magnitude and /or
scope as would require a level of expertise or attention beyond the optimum
in-house capability of the agency concerned and consistent with the goverment
policy not to compete with the private sector.

2.3.2 The required consulting services shall be categorized into purely local experts
or joint foreign and local experts which shall be indicated in the
announcement for required consulting services.

2.4 Independence of Consultants

To ensure the Consultants professional independence, integrity and

objectiveness, Consultants and key staff working for the consulting firm, who may
be directly or indirectly associated with non-consulting firms that may have
interest or bias with the project concerned, shall be selected only if they agree to
limit their role to that of Consultants and will disqualify themselves and their
affiliates for products and services on the same government project.

2.5 Hiring of Consultants

2.5.1 Consultants shall be hired on the basis of their proven expertise, experience,
capability and integrity.
 2.5.2 In order to manifest trust and confidence in and promote the development of
Filipino consultancy, Filipino Consultants shall be hired whenever the services
required for the project are within the expertise and capability to render the
services required under the project, Foreign Consultants may be hired,
provided that in the interest of effecting technology transfer, Foreign
Consultants shall be required to associate themselves with Filipino
Consultants.

2.5.3. In the hiring of Foreign Consultants, all pertinent laws and regulations of the
Philippines shall be followed. The requirement for technology transfer shall
be emphasized.

2.6 Joint Venture

Joint ventures among Filipino Consultants and among Filipino and Foreign
Consultants may be allowed if such results in better quality of consultancy subject
to pertinent laws and the provisions of Section 2.5. The joint venture shall be
jointly and severally responsible for the services and the civil liabilities arising
from the consulting services.

3. ORGANIZATION

3.1 Creation of Prequlification, Evaluation and Awards Commitee (PEAC)

3.1.1 Each department/office/agency/including local government units shall have in

its head office a Prequalification, Evaluation and Awards Committee for
Consultancy (PEAC) which shall be responsible for the conduct of
prequalification of Consultants, evaluation or proposals, selection and
recommending award of contracts.

3.1.2 The Committee shall be composed of the following:

a. Chairman (regular) - At least third ranking official of the

department/office/agency/local government unit

b. Executive Officer and - Legal Officer of the

department/office/agency/local Secretary (regular)
local government unit

c. Member (regular) - Technical member designated by the head of

thedepartment/office/agency/local government units

d. Member (provinsional) - At least two (2), one of whom should be the

end-user of the services with experience in the type
of project/activity where consultancy is required,
 duly designated by the Head of the
department/office/agency/local government unit on
a project to project basis.

e. Member (Observer) - One observer from a non-government

organization will be invited.
3.1.3 The composition of the Committee shall be subject to the approval of the
Secretary or governing board/council as the case may be.

3.1.4 Government owned or controlled corporations shall organize their own

PEAC, the member which shall be appointed by their respresentative from
the Department to which the corporation is attached.

3.2 Registration of Consultants

3.2.1 The PEAC shall maintain a file of consultants containing information on

their capabilities and experience to undertake consulting services for the
department/office/agency/corporation/local government unit concerned. A
prospective Consultant who wishes to registered should comply with the
requirements of Sections 2.2.4 and 2.2.5 of these IRR.

3.2.2 Consultants will be required to register themselves with the

department/office/agency/corporation/local government unit through the
PEAC, providing sworn statements on their technical competence,
experience, staff capabilities, etc. which should be updated every year
utilizing the forms prepared by the PEAC.

3.3. Organization of Consultants

3.3.1. The umbrella organization of Consultants recognized by the government

shall be composed of the various organizations of Consultants who may be
engaged by the government under these IRR and shall accredit its
members on the types of services and fields of professions where the
members are technically and financially qualified to offer their services.
The umbrella organization shall prepare and certify a list fields and
expertise in such fields available with the local Consulatants which shall
be updated annually or as often as necessary and disseminate such list to
concerned agencies of government. It shall likewise police its member for
the development of the industry. The Government may consult and deal
with this umbrella organization on matters relating to the industry. The
NEDA Committee on Infrastructure shall be the appropriate government
body that shall recognize the Consultants umbrella organization.
 3.3.2 The umbrella organization may submit its files of accredited Consultants
to the PEAC of the department/office/agency/corporation/local
government unit in accordance with the form prescribed by the PEAC
which can serve as registration of the Consultants per Section 3.2 of these
IRR. Such prequalification statements, together with the list of accredited
Consultants prepared in accordance with Section 3.3.1 above, shall guide
hte PEACH and government negotiators of foreign loans, grants and aids
in determining the fields where Filipino Consultants are already qualified
and capable and where foreign Consultants may not be required.

4. TYPES OF CONSULTING SERVICES

4.1 General

4.1.1 As stand in Section 2.2.2, the services to be provided by Consultants can

be divided into six (6) broad categories as follows:

a. Advisory and Review Services;

b. Pre-Investment or Feasibility Studies;
c. Design;
d. Construction Supervision;
e. Management and Related Services; and
f. Other Technical Services and Special Studies.

4.2. Advisory and Review Services

These services include advice o particular projects or problems. These will

include advice on and review of, among other, planning, design and other
professional services, as well as management, production, inspection, testing and
quality control. They also include such services as appearances before
commissions, boards or other judicial bodies to give evidene or otherwise submit
professional opinions.

4.3 Pre-Investment or Feasibility Studies

4.3.1 These are the studies which normally precede decisions to go (or not to
go) forward with specific projects. These studies may have as their
objectives:

a. To establish investment priorities and sector policies;

b. To determine the basic feature and the feasibility of individual

projects; and
 c. To define and propose changes in governmental policies,
operations and institutions necessary for the successful
implementation or functioning of investment projects.

4.3.2 Studies for objective (a) include, among others, basic resource
inventories, such as, river basin surveys, transport sector surveys, and
studies of alternative development patterns and of sectors on a regional
or nationwide scale.

4.3.2 Studies for objective (a) include, among others, basic resource
inventories, such as river basin surveys, transport sector surveys, and
studies of alternative development patterns and of sectors on a regional
or nationwide scale.

4.3.3 Studies for objective (b) include, among others, the functional design,
project site selection, architectural and space programming and
physical layout of specific projects, preliminary design an cost
estimates, and the economic and financial analyses required for project
evaluation.

4.3.4 Studies for objective (c) include, among others, analysis of project
related organizations, administrative problems, planning machinery,
regulatory and marketing policies, accounting, and management
systems, manpower resources and training requirements.

4.4 Design

4.4.1 This type of serives normally consists of three (3) phases:

a. Pre-Design Phase-establishes the general size and scope of the projects

and its location on the site. The servicesf include but are not limited to
reconnaissance, topographical and other engineering and land survey,
soils investigaitons, preparation of preliminary
architectural/engineering designs, layourts, outline specifications,
preliminary cost estimates and specific recommendations prior to
actual design;

b. Basic Design Phase-includes the preparation of detailed plans, designs,

working drawings, specifications, detailed cost estimates and tender
documents required for invitations of bids for construction works and
equipment; and

c. Support Services During Construction - includes assistance and advice

in securing bids tabulation and analysis of bid results, and making
recommendations on the award of construction contracts, and in
 preparing formal contract documents; preparation of supplementary
drawings required to suit actual field conditions; checking detailed
construction and as-built drawings, shop and erection drawings
submitted by contractors; making periodic visits to check on the
general progress of work and quality of materials and workmanship;
observing performance tests and start-up and making report threon;
and making a final inspection and reporting of completed project.

4.5 Construction Supervision

4.5.1 Thes include the following:

a. Inspection and expediting of the work;

b. Verification and checking of quantities of qualities of work

accomplished by the contractor as against the approved plans,
specifications, and programs of works;

c. Isssuance of instruction for corrections of defects on the works;

d. Verificatin and recommendation for approval of statements of

work accomplished and certificate of project complete by the
contractor;

e. Review and recommendation for approval of progress and final

billings of the contractor; and

f. Provision of record or as-built drawings of the completed projects.

4.6 Management and Related Services

These may include the following:

a. Sector policy and regional development studies;

b. Planning, feasibility, market, economic, financial, technical, operations and

sociological studies;

c. Project management;

d. Production management, inventory control, and productivity improvement;

 e. Marketing management and systems;

f. Information systems, computer processing, systems and procedures;

g. Institutinal strengthering, organization development, manpower requirements,

training and technology transfer;

h. General management consultancy ; and

i. Other related services.

4.7 Other Technical Services or Special Studies

4.7.1 The Technical Services may include the following:

a. Institution building, including organization and management

studies and putting the recommendations of such studies into
effect;

b. Design and execution of training programs at different levels;

c. Provision of staff to carry out certain functions and to train their

replacements; and

d. Tasks relating to economic and financial studies such as those of

tariff structures.

4.7.2 The Special Studies may include the following and otehr studies not
covered under any of the services and studies described above:

a. Soils investigation;

b. Studies, tests and process determination performed to establish

design criteria for water facilities;

c. Detailed mill, shop, and / or laboratory inspection of materials and

equipment;

d. Land surveys, establishment of boundaries and monuments, and

related office computations and drafting;

e. Parcellary surveys;
 f. Engineering surveys (for design and construction) and
photogrammetry;

g. Assistance in litigation arising from the development or

construction of projects and in hearing before various approving
and regulatory agencies;

h. Investigation involving detailed consideration of the operation,

maintenance, and overhead expenses; and the preperation of rate
schedules; earning and expense statements, feasibility studies,
appraisals, evaluations, and material audits or inventories required
for certification of force account construction performed by the
agencies;

I. Preparation of environmental statements and assistance to the

agencies in public hearings;

j. Preparation of operating instructions and manuals for facilities and

training of personnel and assistance n initial operation of facilities;

k. Designs to meet unique and/or above normal requirement brought

about by severe earthquakes, tornadoes, or blasts, or satisfy unique
or abnormal tolerances, safety requirements, etc;

l. Site and physical planning;

m. Environmental and other aspects of planning;

n. Housing;

o. Interior design;

p. Restoration;

q. Landscaping; and

r. Construction management.

5. SELECTION OF CONSULTANTS

5.1 Preparation of Terms of Reference

5.1.1 The Terms of Reference (TOR) shall clearly and adequately define the
objectives, scope and expected outputs of the proposed works, the
expected time frame, and the functions and duties to be assigned to the
 Consultants especially on the expertise desired and qualification of
individual personnel necessary for the undertaking. Normally, the
TOR is supplemented by additional information, such as summary of
data, facilities, and services, which will be provided by thef
Government department/office/agency/corporation/local government
unit to the Consultants.

5.1.2 The TOR shal subsequently form an integral part of the contract.

5.2 Announcement of Project for Consulting Services

5.2.1 The requirements of a project for consulting services shall be

announced for at least two (2) times within a period of not more than
two (2) weeks in at least two (2) newspapers of general circulation and
at the same time posting copies thereof at any conspicous place in the
department/office/agency/corporation/local government unit concerned
. No newspaper which has not been regularly published for at least
two (2) years before the date of publication of the notices or
annoucement shall be qualified to publish the said notices. The
umbrella organization specified under Section 3.3 of these IRR shall
also be provided with the notice. The announcement of the project is
for the purpose of drawing up a long list of Consultants that claim
expertise in the field concerned and which shall be the basis of
determining the short list Consultants who will be invited to submit
proposals for the services required.

5.2.2 For projects/contract for consulting services with a value of P

300,000 below and/or those whose duration is less than 4 months,
procuring entities need not resort to published invitation.
However, splitting of contracts to avoid the publication
requirement is prohibited. The project should postedf on bulletin
boards or any conspicuous place within the premises of the
concerned agencies and at least three (3) firms shall be invited to
submit complete proposals.

5.3 Issuance of Prequalification Statements/Forms

Only those Consultants who express their desire to offer their services for the
work contemplated shall be included in the long list of Consultants. The
Consultants who are included in the long list shall be requested to submit
prequalification statements in order to update the information in the file of
Consultants and may include, among other things, the qualifications and
experience of key personnel who may be assigned to the particular undertaking.
 Appendix A presents a sample form form of prequalification statements. The
prequalification statements shall be duly notarized.

5.4 Processing of Prequalification Statements/Forms

5.4.1 The prequalification statements shall be evaluated by the PEAC to determine

the short list shall consist of three (3) to seven (7) firms, with five (5) as the
preferable number. If there is only one prequenlified firm, the agency will
have the option to invite that firm to submit a proposal or directly invite other
consulting firms.

5.4.2 In drawing up the short list of Consultants, the following shall be considered:

a. Applicable experience of the Consultant and Associates in case of

joint ventures, considering both the overall experiences of the firm and
the individual experiences of the principals and key staff including the
times when employed by other Consultants;

b. Qualification of personnel who may be assigned to the job vis-a-vis

extent and complexity of the undertaking; and

c. Current work load relative to capacity.

5.4.3 Appendix B is a sample set of criteria and rating systems for short listing
Consultants.

5.4.4 The PEAC shall recommend the short list of Consultants to the Head of
department/office/agency/corporation/local government unit for
consideration/approval. If required under the loan agreement on foreign-
assisted projects, the short list shall be submitted to the foreign financial
institution together with the draft Invitation to Submit Proposal for approval or
concurrence.

5.5 Invitation for Proposals

5.5.1 After approval of the short list of Consultants by the Head of

department/office/agency/corporatio/local government unit and by the foreign
financial insitution with respect to foreign-assisted projects, the PEAC shall
issue invitations to the short listed Consultants to submit proposals.

5.5.2 The invitation shall include the following:

a. Terms of Reference and other documents as mentioned in Section 5.1

above.
 b. Information required to be submitted by the Consultant in this proposals,
which shall include the following:

i. Experience and capability of the Consultants and their personnel in the

type of services and the field under consideration; Consultants shall make
its asssesment of past performance on relevant field for review by the
client;
ii. Proposal methodology and discussions of activities to be performed,
including comments on the data requirement vis-a-vis their availability
and assessment of the extent of data gathering activities and on the TOR
itself.

iii. Work Plan and Schedule of Activities including estimates of man-months

and PERT/CPM diagram or equivalent;

iv. Personnel to be assignment to the job (manning schedule) with their

curriculum vitae and reponsibilities in the undertaking and organizational
structure; and

v. Current work commitments and current assignments of key personnel.

c. Supplementary information to the Consultants to guide them in preparing the

proposal such as, among others:

i. Items/information on which primary emphasis will be placed in the evaluation

of proposals, such as, key staffing, support personnel, etc.;

ii. Estimated man-months;

iii. Data requirements and availability;

iv. Budgetary cost estimates; and

v. Inforamation on policies related to the job, such as, preference for local
materials, use of labor based construction methods, energy saving technology,
etc.

d. Information on whether or not financial proposals shall simultaneously be

considered with the technical proposal (as an exception to the two-envelope
system stipulated in Section 5.7 hereof).

e. Deadline for receipt of proposals, taking into consideration mailing time, site
visits, collection of relevant information, etc. which as a general rule shal not be
less than fifteen (15) days nor more than ninety (90) days from the date of the
 actual mailing of the letter of invitation depending upon the discretion of the Head
of department/office/agency/corporation/local government unit concerned relative
to the nature of the project as indicated in the letters of government unit concerned
relative to the nature of the projects as indicated in the letters of invitation. A
sample letter of invitation to submit Technical Proposal is shown in Appendix C.

f. Criteria with its relative weights and the system of rating and selction of
Consultants.

g. List of short-listed Consultants.

5.5.3 In case only one shorlisted Consultant submits its technical and financial proposal,
the PEAC has the option to declare the selection process a failure or consider the
lone proposal for award provided it passes the evaluation.

5.6 Evaluation of Techical Proposals

5.6.1 The Technical proposals shall be evaluated based on the following criteria:

a. Quality of personnel to be assigned to the project which covers suitability

of key staff to perform the duties of the particular assignments and general
qualifications and competence including education and training of the key
staff;

b. Experience and capability of the Consultant which includes records of

previous engagement and quality of performance in similar and in other
projects; relationship with previous and current clients; and, overall work
commitments, geographical distribution of current/impending projects and
attention to be given by the Consultant. The experience of the Consultant
shall consider both the overall experiences of the firm and the individual
experiences of the principal and key staff including the times when
employed by other Consultants; and

c. Plan of approach and methodology with emphasis on the substance of the

proposal as to the plan approach and interpretation of problem and
solutions.

For complex undertakings, specially those involving new

concepts/technology, participating short-listed Consultant/Consulting
firms may be required, at the option of the client/inviting agency, to make
an oral presentation to be presented by the nominated Project Manager
or the Head of hte Consultants/Consulting firms within fifteen (15) days
after the deadline for submission of technical proposals.
 5.6.2 For the evaluation of proposals, numerical ratings shall be used along the lines
shown in Appendix D - Criteria for Selection of Consultants. In the
evaluation of hte technical proposals, the highest and lowest scores of a firm
for each criterion shall not be considered in determining the total scores of the
Consultants.

5.6.3 After the proposals have been submitted to the PEAC and during the
evaluation period local or foreign consultancy firms which have submitted
their own proposals are prohibited from making any kind of communication
with any PEAC members including its staff and personnel regarding matters
connected to their proposals. The evaluation of the technical proposal shall be
completed in not more than thirty (30) days after the deadline for receipt of
proposals.

5.6.4 The PEAC shall submit the results of its evaluation and recommend the
ranking in descending order of the Consultants to the Secretary/Agency Head
(for those not attached to a department)/governing boards of government
owned or controlled corporations (GOCCs) boards or councils of local
government units for consideration/approval within five (5) working days after
the evaluation of the proposals shall have been completed. The
Secretary/Agency Head/governming boards of government owned or
controlled corporation/boards or councils of local government units shall
approve/disapprove the recommendations of the PEAC within fifteen (15)
days after receipt of hte results of the evaluation of technical proposals
from the PEAC. In case of foreign-assisted projects, the results of the
evaluation together with the criteria used shall be submitted to the foreign
financing institution as required /agreed upon within five (5) working days
after approval of the same by the Secretary/Agency Head (for those not
attached to a department)/governming boards of GOCCS/Boards or councils
of local government units. In line with item (d) of the policy objectives, short-
listed Consultants shall likewise be furnished and other interested parties shall
be given access to the results of the evaluation after the approval of the
resolution of the award.

5.6.5 NEDA, the umbrella organization of Consultants, and all participating short-
listed Consultants/Consulting firms shall be furnished the results (ranking and
total scores only) of the evaluation after the approval by the Head of Office.

5.7 Consultant Selection Procedure

5.7.1 As a general policy, the Secretary/Agency Head 9for those not attached to
a department)/governing boards of GOCCs/boards or councils of local
government units shall have the option as to the selection procedure
(quality-based or quality cost based) to be adopted which shall be
disclosed in the advertisement.
 5.7.2 For the quality-based selection procedure, the selection of Consultant shall
be made based only on the criteria described above without consideration
of hte estimated cost or financial terms of the services. A two-stage
procedure shall be adopted whereby each Consultant is required to submit
his technical and priced or financial proposals simultaneously in separate
sealed envelopes. The financial proposal of he first in rank Consultant
shall be opened and so on; provided that the amount indicated in the
envelope shall be made as the basis of subsequent negotiations and the
total contract amount shall not exceed the amount indicated in the
envelope.

5.7.3 The opening of the financial proposal of the first-ranked Consultant shall
be done in the presence of the Consultant concerned and the sealed price
proposals of the unsuccessful consultants shall be returned unopened to
them after contract negotiations with the successful consultants are
completed. There should absolutely be no replacement of personnel
before the awarding of contract unless the delay in the selection process is
due to the fault of the Government. The agency shall immediately
consider negotiation with tenext ranked firm if replacement of personnel
by the first ranked firm is conducted. Once the contract has been awarded,
no replacement shall be allowed unitl after 50% of hte personnels man-
months sha been served. Violators would be fined with the refund of the
replaced personnels basic rate and should not be less than 50% of total
basic rate for the duration of the engagement.

5.7.4 For the quality-cost based selection procedure, the financial proposal
together with the technical proposal shall be considered in the selection
of Consultants. The financial and technical proposals shall be given
corresponding weights with the financials proposal given a weights of
25% up to a maximum of 50%. This shall be indicated in the invitation to
submit proposals or included in the terms of reference. The exact weight
is to be approved by the Head of Agency upon the recommendation of the
PEAC. The weight of hte technical criteria indicated in Appendix D of
these IRR shall be adjested accordingly such that their total weight in
percent together with the weight given to the financial proposal shall add
to one hundred percent (100%). Subsequent negotiations with the first in
rank Consultant shall no longer be pursued as the cost has already been
considered in the evaluation. Firms whose financial proposal exceeds the
published agency budget shall automatically be disqualified.

5.8 Notification for Negotiation of Selected Consultants

5.8.1 After approval by the Secretary/Head of Agency (for those not attached to
a department)/governing boards of government owned or controlled
 corporations/boards or councils of local government unit and /or after
concurrence of the foreign financial institution in the case of foreing-
assited projects of the selected Consultants for negotiation. In the letter of
notification, the PEAC shall inform the Consultant of the issues in the
technical proposal the PEAC may wish to clarify during negotiations.

5.8.2 Negotiation Coverage

5.9.1 Basically, negotiations shall cover the following:

a. Discussion and clarification of the Terms of Reference and

Scope of Services;

b. Discussion and finalization of hte methology and work

program proposed by the Consultants;

c. Consideration of the personnel to be assigned to the job taking

note of over-qualified personnel to be commensurate with the
compensation of personnel with the appropriate qualifications,
number of man-months and schedule of activities (manning
schedule);

d. Discussion on the services, facilities, and data to be provided

by the department/office/agency/corporation/local government
units concerned, if any;

e. Discussion on the financial proposal submitted by the

Consultant; and

f. Provisions of the contract.

5.9.2 Except for meritorious reasons, negotiatons with any one consultant shall
be completed within fifteen (15) working days.

5.10 Direct Selection Negotiation

5.10.1 Direct selection/negotiation of consultants as may be differentiated from

the usual open competitive selection procedure may be conducted only
when any of the following conditions exists and the implementing
department/office/agency/corporation/local government unit is not capable
of undertaking the project by administration and upon approval by the
Head of Agency/Office or other appropriate authority;
 a. In times of emergencies or when time is of hte essence, as certified by
the Department Secretary and upon the recommendation of the
departments PEAC;

b. Failure to award the contract after open competitive selection process

for valid cause or causes; and

c. Take-over of consultancy contracts which have been rescinded or

terminated partly or wholly, by giving the right of first refusal to
Consultants/Consulting firms which partipated in the original
competitive selection in order of ranking.

5.1.1 Administrative Recourse in Cases of Misrepresentation

5.11.1 The department/agency/corporation shall have a right of administrative

recourse/impose the following administrative sanctions, on committed
offenses/violations during the prequalification, evaluation, award, and
work prosecution:

a. Disqualification from the selection process for a period of two (2)

years for the first offense and perpetual disqualification for the second
offense on misrepresentation of any information in the sworn
prequalification statements, technical and financial proposals, such as
falsification of documents/forging of signatures, and others.

b. Disqualification for a period of one (1) year for the first offense,
disqualification for two (2) years for the second offense and perpetual
disqualification for succeeding offense on any of the following:

1. Unjustified failure or unreasonable refusal of the short-listed

Consultants to submit technical and financial proposals.

2. Acts/violations by the Consultant of the provisions/conditions

of the consultancy agreement.

5.11.2 If the misrepresentation is discovered during the effectivity of the

consultancy agreement, the department/office/agency/corporation/local
goverment unit shall have the right to cancel the agreement after thirty
(30) days from the date a written notice to this effect is given to the
Consultant. In the event of such cancellation of the agreement, the
amounts to be paid to the Consultant shall be adjusted equitably to the
work accomplished and such sum of money received by the Consultant
in excess of the amount corresponding to the work done shall be
refunded by the latter to the department/agency/corporation within ten
(10) days after the cancellation of the agreement.
 5.11.3 The right f recourse of the department/agency/office/corporation/local
government unit as herein above provided shall be without prejudice to
the liability that the Consultant may incur under the pertinent
provisions of the Revised Penal Code.

6. General

6.1.1 As a general rule, the cost of consultancy shall be computed on the basis of
cost to the Consultant of actual services to be rendered by the Consultant
plus a reasonable level of management fee depending onthe complexity
and magnitude of the project, and other direct expenses associated to the
undertakings, provided that, with respect to foreign-assisted projects,
where selection of Consultants has to follow international selection
procedures, the local Consulatants may be allowed to receive
remunerations and fees that approximate international standard rates.
However, in some projects where it is generally accepted, e.g., detailed
design, the Percentage of Construction Cost Method may be used to
determine the compensation of Consultant as discussed under Section 6.8
below.

6.1.2 The cost of consultancy shall consist of the following and shall be
presented in the agreement in like manner:

a. Salaries or billing rates:

b. Reimbursable Costs; and

c. Other costs required for the completion of the services.

6.2 Salaries or Billing Rates

6.2.1 These are remunerations to be paid to the Consultants staff/personnel who

are directly engaged in the consulting services as per agreed manning
schedule. It covers the basic rates of the staff multiplied by a billing
factor of the consulting firm.

6.2.2 The umbrella organization of Consultants shall from time to time

disseminate information on the rates or fees of Consultants per expertise as
guide to the PEAC and end-user during financial negotiation.

6.3 Basic Rates

 6.3.1 The basic rates represent the salries actually being received by the
professional staff from the Consultant as certified by the Consultant with a
sworn statement to be submitted to the
department/office/agency/corporation/local government unit. The basic
rates of all individual members of the staff be clearly indicatedf in the
contract.

6.4 Billing Factor or Multiplier

6.4.1 The billing factor or multiplier shall be derived from the following to be
supported by audited financial statements prepared by an independent
auditing/accounting firm/entity and certified by the Consultant with a
sworn statement:

a. Overhead Cost - are incidental and general administrative and

management expenses of the firm other than those directly related to
the project, and are expressed in percent of the total of the basic
salaries of all personnel of the firms, which may include a combination
of the following:

i. Executive, administrative, accounting, and legal salaries other than

identifiable salaries included in the basic man-month salaries;

ii. Legal and corporate expenses including licenses, professional

membership fees;

iii. Business costs including representation allowances, advertisements,

promotions;

iv. Research and development activities including personnel development

programs;

v. Provision for office, electricity, water, and similar items for working
space;

vi. Depreciation and amortization;

vii. Financial and banking costs including interest expenses and handling
charges;

viii. Building and equipment insurance;

ix. Provision for loss of productive time of technical employees between

assignments; and
 x. Taxes.

In any case, the overhead cost shall not exceed 120% of the basic salary.

b. Social charges - cost items as a percentage of basic salary for the welfare and
benefit of the Consultants staff in accordance with the policies of the
Consultant and of the government of the country of the Consultant, and may
include any or a combination of the following based on audited and sworn
statement to be submitted by the Consultant to the agency concerned:

i. Bonuses;

ii. Vacation/sick leave and paid public holidays;

iii. Medical Care;

iv. Pension plan - retirement and/or terminal pay;

v. Company insurance; and

vi. Other benefits as required by law.

c. Management fee - remuneration for the professional know-how and expertise.

The amount of fees shall be fixed as a percentage of the sum of the basic
salary, overhead cost and social charges depending on the complexity of the
services rendered and other consideration, but not to exceed 15%.

6.4.2 The sum total of the basic salary, overhead, social charges and management fee as
percentage of basic salary represents the billing factor or multiplier. The size of
the multiplier may vary with the types of work, the organization and experience of
the Consultant, and the geographic area in which its office is located. The
multiplier normally ranges from 2.0 to 3.0 for the technical personnel, and shall
not exceed 1.8 for the administrative personnel directly hired for hte project.

6.5 Reimbursable Cost

6.5.1 These include all other expenses associated with the execution of the
services. These costs may be classified into:

a. Reimbursable costs based on agreed fixed rates; and

b. Reimbursable based on actual costs.

6.6 Reimbursable Cost

 6.6.1 These are cost items which are payable at agreed unit rates to the staff and
include the following, among others:

a. Housing Allowance - These are costs to cover housing, including

power and water, for Consultants staff. It should not include food
and laundry since these are basic necessities which the Consultant
have to spend for even without the project. In considering the
housing allowance, the base of operation an the designated official
station of duty of the Consultant shall be defined. The base of
operation is the location of the home office of the Consultant while
the designated official station of duty is the location outside of the
base of operation where most of the Consultants staff will be
working more often continuously during the duration of the
services. For local Consultant, the base of operation is usually in
Metro Manila, and the designated official station of duty is the
project sited outside Metro Manila. Sometimes, in undertaking the
services, the Consultants staff are grouped into two (2), i.e. those
who are stationed at the base operation and those stationed at the
project site depending on where they will be staying longer
continuously for more than one (1) month. The agency may also
have the option to provide for housing allowance. The work and
manning schedules together with the designated base of operation
and the official station of duty shall be the basis for determining
the rates of housing allowance and per diem.

b. Per diems - daily allowance given to the Consultant personnel

while on official trips authorized by the agency and/or explicity
required in the contract as follows:

I. Outside of the base of operation for Consultant staff stationed

there; and

ii. Outside of the designed official station of duty for Consultant

staff stationed there except when staying at the base of
operation.

Per diems shall be reckoned from a 24-hour day trip of at least 50

kilometers away from the station.

c. For foreign Consultant, miscellaneous international travel expenses

such as, the cost of transportation to and from the airports, airport
taxes, passport, visas, travel permits and vaccinations.

6.7 Reimbursable Based on Actual Costs

 6.7.1 These are all other reimbursable costs which shall be supported with
invoices and/or other supporting papers and include the following:

a. International travel - this covers the cost of full fare economy class air
transportation preferably through the Philippine Air Lines by the most
direct and expenditious air routes of the expantriate Consultants staff
and their eligible dependents, i.e., wife and children under 18 years not
to exceed two (2) children, from their point of origin. Eligible
dependents are those of the personnel assigned to resident duty in the
Philippines for periods of not less than one (1) years, and for those
whose period of cnstructive assignment is over 6 monts but less than
one year, only the wife will be entitles for reimbursement of the cost
of transportation. (For air fare of dependents, half fare for children
below 11 years old). An expatriate and his wife shall be allowed the
cost of excess baggage up to 20 kilograms each per round trip;

b. Domestic travel - this covers the cost full fare economy class air
transportation by the most direct and expeditious routes of the
Consultants staff for official trips authorized by the agency and/or
explicity required in the contract;

c. Domestic transporatation - the provision of vehicles and equipment

either through purchase or rental shall be in accordance with Section
6.11 hereunder.

d. Communication expenses;

e. Cost of engineering/office supplies and cost of preparing/reproduction

drawings and otehr documents to be submitted;

f. Cost of field office either through rental or construction; and

g. Cost of other items deemed necessary for the project as certified by the
agency concerned.

6.7.2 The Consultant may sub-contract certain jobs like surveys, soil
investigation and testing, etc. with qualified local contractors under the
supervisin of the Consultant. The sub-contract shall be approved by the
agency and billed at cost to the agency.

6.8 Cost of Consultancy As a Percentage of Construction Cost

6.8.1 This method may be used to determine the compesation of Consultant for
services where the principal resposibility is the detailed design or
construction supervision of facilities to be constructed.
6.8.2 Contruction Cost is defined as the estimated total cost of constructing
the facility to be covered by the proposed detailed design or construction
supervision services, excluding the fees and otehr cost of such services,
the cost of land and right-of-way, and legal and administrative expenses of
the agency. The estimated construction cost must be approved by the
Head of department/office/agency/corporation/local government unit
before the invitation to submit tecnical proposal is issued.

6.8.3 Over the years, engineering experience has established some appropriate
correlations between engineering costs and construction costs for certain
types of engineering design, where design procedures and materials of
construction are more or less standardized. These correlations have
resulted in various curves and schedules which have been widely used.

6.8.4 The validity of the percentage-of-construction method rests upon the

assumption that detailed design and construction. When judiciously
applied, and with due consideration of the ranges within which
engineering scope may vary, this method is valuable as a tool for general
comparison with time-based fees for design services. Its acceptance over
many years also affords a valuable guide for judging the reasonableness of
proposals for consulting services.

6.8.5 The percentage fee shall consider the type, complexity, location, and
magnitude of construction cost of the project and shall not exceed the
following percentages of estimated construction cost:

a. feasibility studies-three percent (3%);

b. detailed engineering design-six percent (6%);

c. detailed architectural and engineering design - eight percent (8%);

and
d. construction supervision -ten percent (10%).

6.8.6 Those percentages include only those works normally undertaken in

arriving at the expected outputs and do not include special studies or
investigations indicated under Section 4.7 hereof, the outputs of which are
ends by themselves.

6.8.7 It is further emphasized that the above percentages are only ceilings and it
does not necessarily mean that the said percentages shall always be
adopted for each project. The actual percentage for a particular project
will depend on the factors mentioned above, i.e., the type, complexity,
location and magnitude of construction cost. As a general rule, projects
 within a higher range of construction cost will have lower percentages of
fees than those projects within a lower range of construction cost. The
above limits of percentages shall be reduced to the extent that some of the
activities are undertaken by the government agency concerned.

6.8.8 The cost of consultancy as a percentage of construction cost method may

be adopted only when the department/office/agency/corporation/local
government unit concerned has the capability to make a relatively accurate
estimate of the total construction cost.

6.9 Escalation

6.9.1 Adjustment of the billing rates and reimbursable cost based on fixed rates
to cope with price movements will take place not more than once a year,
with the first adjustment to be made after one (1) year from the date that
financial negotiations are finalized. All proposed rate adjustments shall
be submitted with substantiating reasons or documents. The Consultant
shall have to prove to the agency, by submitting an audited statement or
any other equivalent documentation that its average salary increase is
equal at least to the demanded percentage of price adjusment increase.
Said increases will be subject to prior approval of agency . The
adjustments will be claimed retroactive to the date approved by the agency
concerned. The Consultants request for adjustment of rates shall be
based on the audited statement but not to exceed the following formula:

Adjusted Rate = Contruct Rate x I/I.

I - represents the consumer price index at time of adjustments;

1. - represents the consumer price index for the month preceding the date
of signing of the contract by the authorized official of the agency.

6.9.2 For adjustment of the foreign currency rates, the Consultant shall submit
the cost of living index as prepared by the relevant agency of the
government in the home country of the Consultant as validated and
authenticated by the Philippine Embassy in the home country.

6.9.3 For adjustment of the local rates, the Consultant shall submit the cost of
living index as prepared by the National Statistics Office (NSO).
Adjustment of rates for any one adjustment period shall not exceed ten
percent (10%).
 6.9.4 No price adjustments will be allowed for reimbursable cost items other
than reimbursable costs based on fixed rates.

6.10 Contigency

6.10.1 Payments in respect of costs which would exceed the estimates set forth in
Section 6.1 may be chargeable to the contigency amounts in the respective
estimates only if such costs are approved by the agency concerned prior to
its being incurred and provided, further, that they shall be used only in line
with the unit rates and costs specified in the contract and in strict
compliance with the project needs. Contingency amount shall not exceed
5% of the amount of the contract.

6.11 Inclusion of Equipment and Vehicle Purchase

6.11.1 Purchase of vehicles and equipment may be included in the contract as

provided under Section 6.7 subject to the following conditions/guidelines:

a. The agency should provide the justification for the necessity of the
inclusion of the items in the contract;

b. The agency must submit a certification to show that I) there are no

such items which can be spared by the agency for the purpose, or
ii) these items were not procured in the previous phase of the
project, or iii) that these items shall be procured as necessary
supplement/complement to the existing inventory. The
certification should also include that these items will be used
exclusively for the project and that the same shall be turned over
to the agency at the end of the project;

c. The inclusion of vehicles and equipment must be consistent with

the nature of the project;

e. The cost of these items must be based on reasonable current prices.

The procurement of these items should be billed at cost by the
Consultant;
f. The vehicles and equipment must be reflected as specific pay items
in the contract for appropriate agency accounting;

g. Local purchase of the items and the maximum utilization of

relevant local components should be exercise to the fullest extent
possible; and
 h. Only locally-produced or assembled vehicles shall be acquired by
government entities, whether or not these are financed from
external sources.

7. AGREEMENT FOR CONSULTING SERVICES

7.1 Preparation of Agreement

7.1.1 The agreement shall basically include the following:

a. Definition of terms;

b. Services covered under the agreement;

c. Personnel to be involved;

d. Cost of services;

e. Method of payment of Consultants;

f. Obligations of the Consultant and the agency concerned;

g. General conditions;

h. Disputes, arbitration and termination; and

i. Execution.

7.1.2 A sample form of consulting services agreement is shown in Appendix F.

It should be noted that the sample form contains only the minimum
standard provisions of a consultancy contract. The concerned
department/office/agency corporation is expected to clearly and explicity
define the terms and conditions of the contract based on the requirements
of the individual projects, particularly with regard to Section 6.01.3 of the
sample form for consulting services agreement (Liabilities of Consultant).

7.2 Documents Comprising the Agreement

The following documents shall form part of the Agreement:

a. Original Terms of Reference and Consultants Technical Proposal;

 b. Final Terms of Reference and Consultants Technical Proposal
incorporating all revisions agreed upon between the contracting parties;

c. License and joint venture agreement;

d. Certificate of Availability of Funds;

e. Resolution of PEAC of award of agreement and approval of

Secretary/Head of Agency;

f. Concurrence of lending institution is case the project is financed by

foreign assistance as required in the loan agreement; and

g. Other pertinent documents.

7.3 Approval of Agreement

7.3.1 In agreement shall be approved in accordance with existing laws, rules and
regulations as soon as possible but not later than fifteen (15) working days
after completion of negotiation. In case of foreign-assisted project, the
agreement shall be submitted to the financial institution for concurrence,
and approval thereof by the Secretary/governing board of
corporation/board or council of local government unit shall be made not
later than fifteen (15) working days after concurrence of the foreign
financial institution.

7.4 Submission of Agreement to NEDA

7.4.1 In accordance with Section 3 of Executive Order No. 164, the NEDA shall
be furnished by the departments/offices/agencies/government
corporations/local government unit concerned, with copies of all
consultancy agreements involving the amount of P 1 million or more
complete with attachments, including the documents leading to the award
of the contract in accordance with these IRR, for monitoring purposes.

7.4.2 The Government, however, reserves the right to reject any or all proposals
and to waive any required formality in the proposals received.

8. IMPLEMENTATION

8.1 Cost of Consulting Services

 No increase in cost shall be allowed beyondf and above the contract
amount indicated in the agreement for consulting services except for the
following:

a. Adjustment in rates in accordance with Section 6.9 (Escalation);

b. Additional works not covered under the scope of works contained

in the consulting services agreement;and

c. Additional costs that may be incurred due to reasonable delays

(greater than 15%) of approved contract duration) in project
implementation due to acts undeniably attributable to government
and /or force maneure as determined by the Head of agency.

Such increase in cost shall be covered by a supplemental agreement and

subject to the approval of the concerned Head of agency or governing
boards of government-owned and controlled corporations (GOCCs) and
government financing institutions (GFIs), but in no case shall the total
costs, including such increase, exceed the limits of the percentage fees set
forth in Section 6.8.5.

8.2 Advance Payment for Mobilization

The Government, as it considers fair and reasonable, may allow advance payment
to the Consultant in the amount which shall not exceed twenty percent (20%) of
the contract amount to cover the cost of mobiliztion subject to the posting of an
irrevocable standby letter of credit or a surety bond issued by an entity acceptable
to the agency and of an amount equal to the advance payment. The advance
payment shall be repaid by the Cosultant by deducting from his monthly progress
payments such sum as agreed upon during contract negotiations until fully
liquidated within the duration of the contract.

8.3 Performance Guarantee

To guarantee the faithful performance of the Consultant under contract, the final
payment shall be withheld until after a certificate of completion indicating
satisfactory completion of the consultancy services shall have been issued by the
concerned government agency. The final payment should not be less than 10% of
the total contract amount but may be released if substituted by a surety bond of the
same amount, callable on demand, or a letter of credit from an accredited
insurance or financial institution. The bon should only be held within one year.

8.4 Extension of Services Under Supplemental Agreement

 The services of the Consultant may be extended for the performance of additional
work (man-months) not covered under the original agreement through
supplemental agreement. The remuneration to the Consultant for the additional
man-months, including the terms and conditions for additional work, shall be
governed by the provisions of the original agreement. The total consultancy cost
of all supplemental agreements shall not exceed 50% of the original contract
amount regardless of the number of supplemental agreements. Should additional
consulting services be required for the project that will result in a total additional
consulting cost greater than 50% of the original contract amount,
Consultant/consulting firm shall be engaged through the process stipulated in
these IRR.

9. APPLICABILITY

9.1 These IRR on the procurement of consulting services for government projects
shall be used by all government agencies including local government units,
government owned or controlled corporations and instrumentalities in the
procurement of consulting services for government projects or related activities.

9.2 Any amendment to these IRR shall apply to all consulting services advertised after
ten (10) days from date of its dissemination by the National Economic and
Development Authority (NEDA) Committee on Infrastructure (INFRACOM).
For consulting services advertised before said effectivity date, the previous IRR
shall apply.

9.3 The above notwithstanding these IRR shall not negate any existing and future
commitments with respect to the selection of Consultants financed partly or
wholly with funds from international financial institutions, as well as from
bilateral and other similar sources as stipulated in the corresponding agreements
with such institutions/sources.
APPENDIX A

GUIDELINES IN THE PREPARATION OF

PREQUALIFICATION STATEMENT

Prequalification Statement of Consultant interested to be considered for the

services contemplated shall fill up the enclosed form in six (6) copies and shall be
submitted to the Prequalification, Evaluation and Awards Committee for Consultancy
(PEAC).

The numbers below correspon to the numbers contained in the enclosed form.

1. Type complete name of firm, year established, country of registry if

foreign, and type of organization whether individual, proprietorship,
partnership, corporation or others.

2. Name of affiliate firms, their year established, countries of origin, and type
of organization.

3. Type exact and complete home office, business address, telephone number
and cable address. For consulting firms of foreign registry, indicate if
there is any branch office/s established in the Philippines and where
established.

4. If present firm is the successor to or outgrowth of one or more predessor

firms, type name/s of former entity/ies and the year/s of their original
establishment.

5. Present a brief narrative description of the firm.

6. Indicate clearly and accurately the names of the principals of the

Consultant and key personnel. This sheet must be accompanied by the
curriculum vitae showing experience, professional affiliations and
language capability of the key personnel listed.

7. List not more than two (2) principals who may be contacted by this Office.
Listed principals must be empowered to speak for the firm on policy and
contractual matters.

8. Indicate the number of employees by discipline. While some personnel

may be qualified in several diciplines, each person should be countered
only one in accordance with his/her primary functions.
 8.a Under this items, indicate the volume of gross consultancy fees per
year for the last five years. Gross fees received may be as Prime
Consultant or in association or joint venture with consulting firms.

8.b Indicate bank references and bank address. It is a must that the
latest balance sheet duly signed by an independent Certified Public
Accountant or accounting firm be submitted with this form.

8.c The chart listed under this item represents the ranges of
professional Service Fee. The indices should be indicated under
item no. 10, last column.

9. Indicate appropriate types of services and fields of specialization the

Consultant is technically and financially qualified to undertake.

10. This item represents the ongoing/committed consultancy projects of the

Consultant and those handled in the last five years. First column
represents the name of the project, the date the project was started and
how it was accomplished , i.e., as Prime Consultant or through joint
venture or in association with other Consultants. If it was implemented in
association with other Consultant, indicate name of Consultant. Second
column represents the consulting services rendered, defined as clearly as
possible. Third, column represents the Client whom the services were
rendered. Indicate the address of the Client. Last column represents the
level of fee received by the Consultant as referred to under item 8c -
INDEX FEE.

11. List of projects the firms has been engaged in consulting services.

NEW FIRMS-(not reorganized or recently amalgamated but only

established for less than two (2) years reckoned from the date of
preparation of this form) may accomplish this form and questions on the
form dealing with personnel or experience may be answered by citing
experience and capabilities of the principals and key staff of the firms
based on performance and responsibility while in the employ of others. In
item 10, representative projects of key personnel and principals offices for
the last three (3) years plus consulting services rendered by the New Firm
may be indicated.

NOTE: Additional data, brochures, photos, etc. should not accompany this form unless
specifically requested.
CONSULTANTS PREQUALIFICATION FORM DATE:

Year Type of Organization

CONSULTANT Estab Country Indiv. Part. Corp. Other
1) NAME
2) AFFILIATED FIRMS
3) HOME OFFICE/BUSINESS ADDRESS/TEL. NOS./CABLE ADDRESS
4) FORMER CONSULTANTS NAME & YEAR ESTABLISHED FIRM OWNERSHIP
5) NARRATIVE DESCRIPTION OF FIRM (Use other sheet if necessary)
6) PARTNERS, DIRECTORS, OFFICERS, KEY PERSONNEL OF FIRM

NAME AND TITLE DEGREE (S) YEARS AGE

WITH FIRM
(ADD CURRICULUM VITAE
SHOWING EXPERIENCE, PROFESSIONAL
AFFILIATION AND LANGUAGE
CAPABILITY)
7) NAMES OF NOT MORE THAN TWO (2) PRINCIPALS TO CONTACT.
TITLE AND TELEPHONE NUMBER

8) NUMBER OF PERSONNEL IN PRESENT ORGANIZATION

DISCIPLINE NUMBER
PRINCIPAL
KEY TECHNICAL

a. Civil Engineers
b. Structural Engineers
c. Electrical Engineers
d. Mechanical Engineers
e. Architects
f. Economists
g. Others (Specify)

SUPPORT TECHNICAL
(Indicate as in above)

ADMINISTRATIVE STAFF
(Indicate type, e.g. typist)

8a) ANNUAL VOLUME OF GROSS FEES 8b) FINANCIAL RATING OR

(LAST 5 YEARS) BANK REFERENCE

8c) RANGES OF PROFESSIONAL FEES INDEX

1. Less than P100,000

2. P100,000 to P250,000
3. P250,000 to P 500,000
4. P500,000 to P 1 million
5. P1 million to P2 million
6. P2 million to P5 million
7. P5 million to P10 million
8. P10 million or greater

9) FIELDS OF SPECIALIZATION AND TYPES OF SERVICES

FIELDS OF SPECIALIZATION TYPES OF SERVICES
ABCDE
1. Engineering
2. Architecture
3. Finance
4. Management
5. Agriculture
6. Law
7. Others (Please Specify)

A - Advisory and Review Services

B - Pre- Investment or Feasibility Studies
C - Design
D - Construction Supervision
E - Other Techinical Services or Special Studies

10) PROJECTS HANDLED BY THE CONSULTANT FOR THE LAST FIVE YEARS
PROJECT NAME/YEAR SERVICE CLIENT INDEX
RENDERED FEE

11) TYPICAL PROJECTS FOR WHICH CONSULTING SERVICES HAVE BEEN

FURNISHED BY THE CONSULTANT (REFERENCE SHEETS MAY BE SUBMITTED
FOR AS MANY PROJECTS AS DESIRED)
NAME OF OVERALL PROJECT _____________________________________________
LOCATION OF OVERALL PROJECT ______________________________________________
CONSULTANTS LEVEL OF EFFORT ______________________________________________
(CONSULTANTS FEE)
OWNERS NAME AND ADDRESS ___________________________________________
___________________________________________
___________________________________________

YEAR SERVICES COMPLETED

(INDICATE IF ESTIMATED OR ACTUAL)
ASSOCIATED FIRMS _____________________________________________________
_____________________________________________________
_____________________________________________________

________________________________________________________________________________
DESCRIPTION OF PROJECT
DESCRIPTION OF SERVICES FIRM PROVIDED
LIST TYPES OF SERVICES FOR ASSOCIATED ASPECTS OF OVERALL PROJECT
THE LIST OF EQUIPMENT, INSTRUMENT AND VEHICLES OF CONSULTANT
(OWNED AND LEASED)
NAME COST DATE PURCHASED
OR LEASED

I CERTIFY THAT THE INFORMATION IN THE ABOVE PREQUALIFICATION FORMS

ARE TRUE TO THE BEST OF MY KNOWLEDGE.

__________________________
PRESIDENT

SUBCRIBED AND SWORN to before me this ___ day of ______________________, ____ at

__________________, affiant having exhibited to me his/her Residence Certificate No. _____ issued at
______________ on _________________, _____,

NOTARY PUBLIC
APPENDIX B

CRITERIA FOR SHORT LISTING OF CONSULTANTS

ITEM WEIGHT RATING SCORE

1. APPLICABLE EXPERIENCE 30%

a. Completed consulting services of size, (20%)
complexity and technical specialty
comparable to job under consideration,
including quality of performance.

b. Other completed consulting services (5%)

related to the job under consideration.

c. Known cases of prior performance, (5%)

including quality of work conforming
to obligations and cost of services.

II. QUALIFICATION OF PERSONNEL 50%

Qualification of key personnel that may be (50%)

assigned to the job.

III. JOB CAPACITY 20%

NOTES:

For the rating column, the following system may be used:

1 - Acceptable 3 - Very Good

2 - Good 4 - Most Suitable

The rating multiplied by their respective weights give the weighted scores. These
are added to determine the total points for a Consultant. The Consultant may then be
ranked according to their total points and the top three to seven may be considered as the
short list.

The percentages/weights/criteria shown herein serve only as illustrative examples.

The percentages/weights/criteria to be used shall be at the discretion of the
department/office/agency/corporation/local government unit concerned depending of the
complexity of the project. The actual percentages/weights criteria to be used in short-
listing the consultants shall be indicated in the Letter of Invitation.

Job Capacity in the example shall mean absorptive capacity to do additional

works other than those currently being undertaken.

APPENDIX C

REPUBLIC OF THE PHILIPPINES

(DATED) _______________

(Name of Firm)

(Address)

Gentlemen:

SUBJECT: REQUEST FOR TECHNICAL PROPOSAL FOR

CONSULTING SERVICES FOR THE (BRIEF STATEMENT
OF JOB, E.G., DETAILED ENGINEERING OF THE
PROPOSED IMPROVEMENT OF THE PORT OF CEBU)

We invite you to submit to this Office on or before (Date) your unpriced

Technical Proposal (unpriced in the sense that the cost of your service will not be a
factor in the evaluation of your proposal), in six (6) copies, for the (Brief statement of the
required services, e.g., detailed engineering of the proposed improvement of the Port of
Cebu).

Preliminary work on this project has already been done by (Name of

Consultant/agency concerned). and copies of the Feasibility Study Reports will be loaned
to you upon posting a deposit of (Amount of deposit desired).

Your Technical Proposal should cover in sufficient detail the following:

1. The background and experience of your consulting firm including a list of past
and present work of similar nature to the proposed service. (Indicate if the
requested information is already included in the files of the Consultant
available in the agency concerned and no updating is necessary.)

2. The methodology and basis of design which you propose to adopt for all the
elements of the proposed system, defining the design objective and problems,
the design concepts and criteria to be applied in solving the problem and in
attaining the objectives, citing appropriate authorities and reference and
 making an appraisal of the available data in the Feasibility Study Report,
identifying additional data that could be secured, and giving comments on the
Terms of Reference.
3. The proposed Work Plan, specifying the work methods and detailed
procedures that you propose to follow, and a PERT/CPM diagram and
description of the sequence, duration and the probable timing of each of the
work phases.

4. The name of hte project organization, background and professional experience

relevant to the work of each key personnel from your firm and any firm with
which you would be associated (whether as Consultants or sub-contractors)
who will be assigned to this undertaking and the amount of time these key
personnel would devote to the project, including statements firmly commiting
them to work in the project immediately once the contract is awarded, and an
accompanying Project Organization Chart.

5. The financial plan, identifying your source of funds for financing the project,
the manner by which you desire to be paid for this work and the latest
financial statement of your firm duly received by the BIR. The details of office
space, equipment, vehicles and service required for the project and how you
propose to provide them.

All jobs specified in the attached Terms of Reference shall be completed in

about (period desired) from receipt of notice to proceed.

After all the Technical Proposals have been received and evaluated, we will
negotiate for financial and other termsf of the contract with the firm
submitting the first-ranked proposal without delay. This will be on or about
(Date). Should such negotiations fail to arrive at mutually agreable terms and
conditions of a proposed contract, we will then negotiate with the Consultant
submitting the nest-ranked proposal and so on untill a mutually satisfactory
contract could be concluded.

Selection will not be made on the basis of price. As starting point in the
financial negotiation, however, we request you to submit, along with your
technical proposal, and in separate sealed envelope, your price quotations or
Financial Proposal for undertaking the servicesf contermplated preferably in
accordance with the job itemization in the Terms of Reference. This sealed
envelope will be opened only after selection of the best proposal. It will not,
however, be authomatically the basis for the contract price but shall be subject
to negotiations as outlined in the preceding paragraph.

Very truly yours,

__________________________
 (Chairman)
PREQUALIFICATION, EVALUATION
AND AWARD COMMITTEE

APPENDIX D

CRITERIAL FOR SELECTION OF CONSULTANTS

1.EXPERIENCE AND CAPABILITY OF FIRM

A. Record of previous engagement, and quality of performance in similar project (5

points) ........................................................
____________

B. Record of previous engagement in other project (2 points) .........

____________

C. Relationship with previous and current clients, considering repeat engagements as

Consultants, disputes arising out of past work or extent of litigations, if any (1
point) ...................................................
____________

D. Overall work commitments, geographical distribution of current/impending

projects and attention to be given by the Consultant (2
points) .................................................
____________

SUB-TOTAL (Maximum of 10 points) .............................................

____________

2. PLAN OF APPROACH AND METHODOLOGY

A. Substance of the proposal as to plan of approach and interpretation of project

problems and solutions (15 points) ..................................
____________

B. Completeness of the proposal, compliance with mandatory requirement and no

omission as to how any of the work shall be carried out a outlined in the Terms
of Reference (5 points) ...........................................
____________

C. Clarity of methods and approaches to be used; their soundness and practicability

 to Philippines condition (5 points)
____________

D. Total man-months proposed for the services in relation to government estimates

(5
points ) ...................... ____________

SUB-TOTAL (Maximum of 30 points) ...................................................

____________

3. QUALITY OF PERSONNEL TO BE ASSIGNED

A. Project Manager

- General qualification and competence including education and training

nature and length of experiences, types of position held, time with the
firm (Range of 10 to 15 points)

- Suitability to perform the duties of the particular assignments (Range of 10 to

15 points) ....................................
_____________

B. Other Key Staff

- General qualifications an competences including education and training

(Range 15 to 20 points) ....................................
_____________

- Suitability to perform the duties of the particular assignments (Range of 15 to

20 points) ......................................
_____________

SUB-TOTAL (Maximum of 60 points) .................................................

_____________

TOTAL (Maximum of 100 points) ........................................................

_____________

The rating system to be used shall be at the discretion of hte

department/office/agency/corporation/local government unit concerned depending on the
complexity and requirements of the project. The points shown herein serve only as an
illustrative example. The actual rating systems to be adopted in the selection of
Consultants shall be as indicated in the Letter of Invitation.
APPENDIX E

(DATE)
___________________

(Name of firm)

(Address)

Gentlemen:

SUBJECT: FINANCIAL NEGOTIATIONS FOR CONSULTING

SERVICES FOR (BRIEF STATEMENT OF THE JOB, E.G.,
DETAILED ENGINEERING OF THE PROPOSED
IMPROVEMENT OF THE PORT OF CEBU)

After evaluating the Technical Proposal you submitted for the above-mentioned
services, we are considering you/your firm to undertake the consulting services for the
(Brief statement of the job, e.g., Detailed engineering of the port of Cebu).

Please send your duly authorized representative to this Office on (Date) at (Time),
to negotiate with the members of the Prequalification, Evaluation and Award Committee
for Consultancy (PEAC) the financial and other terms leading to a possible execution
between you and the (Name of the Agency).

As mentioned in our letter for Request for Technical Proposal issued to you on
(Date), the sealed envelope containing your Financial Proposal for the required services
will then and there be opened. The price specified therein will be the starting point in the
negotiations for financial term.
 This letter is neither an award nor a commitment by this Office but is merely to
notify you of the date and time of the negotiations for the services contemplated.

Very truly yours,

______________________________
(Chairman)

APPENDIX F

PROFORMA AGREEMENT FOR CONSULTANCY

ARTICLE 1
DEFINITIONS

1. Agreement This document for consulting services between the (agency concerned)
and Consultant together with all the Appendices and attachments is defined as the
Agreement.

2 Project A description of the hereinafter refereed to as the to as the Project is

contained in Appendix A-1, appended hereto and forming part of the Agreement.

3. Principals The following officers of the Consultant are defined as Principals:

________________________________________________________________________
________________________________________________________________________

4. Staff All technical members of Consultants Project Team other than the Principals
are defined as the Staff as listed in Appendix D hereof.

Staff of consultant will comprise:

Home Office Staff Those employees who work in the

Home Office of the Consultant concerned

Expatriate Staff Those employees Consultant who are

Assigned to work in the Philippines.
 Local Staff Filipino staff members.

5. Local Currency-Peso and the sign P means the currency of the Philippines.

6. Foreign Currency- means the currency other than that of the Philippines.

7. Billing Rates Billing Rates are defined as the Remuneration Rates to be paid by the
(agency concerned) to the Consultant for each man-month rendered by Consultant
staff to the Project. It shall cover monthly salaries or basic rates, social charges and
management fee.

8. Salaries are defined s the as the remuneration paid to the Staff directly engaged in the
Project work for the time actually devoted to the Services.

9. Social charges and Overhead Allowances Social charges and Overhead allowances
are defined as a percentage of Direct Salaries and cover salary related costs, costs with
respect to insurance, sickness, holiday and vacation pay, social security, pension fund
and similar payments, and overhead charges.

10. Fee The fee is defined as a percentage of Salaries plus Social Charges and overhead
charges.

11. Reimbursable Expenses These are defined as all costs other than Billing Rates
which are associated with the execution of the services and categorized as costs based
on agreed fix rates and actual costs which are supported by receipts.

12. Applicable Law The law of this agreement shall be the laws of the Government of
the Republic of the Philippines or, in the case of foreign-assisted projects, the law as
may be agreed upon during negotiations and provided for under the governing
loan/grant agreements.

ARTICLE III
SERVICES

2.01 Scope of Services

The Consultant shall perform the Services under this Agreement in accordance
with the final Terms of Reference set forth in Appendix A-1 incorporating all
revisions as agreed upon between the contracting parties.

2.02 Standard of Services

The Consultant shall fulfill its obligations under this Agreement by using the
technical knowledge and according to the best-accepted professional standards.
 The Consultant shall exercise all reasonable skill, care and diligence in the
discharge of the duties agreed to be performed and shall always work in the best
interest of the Government. To attain these ends, the Consultant shall provide
personnel with adequate qualifications and experiences and such number as may
be required for the best fulfillment of the services, subject to the approval of the
Government. The bio-data of the key personnel indicated in the Technical
Proposal is appended hereto as Appendix B and forms part of this Agreement.

2.03 Estimated Man-months

Notwithstanding any contrary provisions herein, the parties hereto agree that
consultant shall perform the Services in accordance with Plan attached as
Appendix C hereto and, for the performance of its obligation under this
Agreement, it shall make available a total of_____ man-months of service in the
Philippines and (home office) which, as specified by different classes of Personnel
in Appendix D hereof, consist of _____ man-months services by the foreign
Consultant and _____ man-months services by the local Consultant. Unless
otherwiseagreed upon by the parties hereto, in no event consultant shall have
obligations to render the services in excess of the said man-months of services. It
is, however, agreed that (agency concerned) may from time to time assign other
work under this Agreement for due performance by consultant. Consultant agrees
to accept said assignment of work on terms and conditions mutually acceptable to
(agency concerned) and Consultant. In connection with this Agreement, a man-
month of service is defined as services of period of time equivalent to one (1)
calendar month based on the person rendering or performing such services for 176
working hours per month on the average.

ARTICLE III
PERSONNEL

3.01 Staff

The services shall be carried out by the Personnel specified in Appendix D and for
the respective period of time indicated therein. The Consulting may, with the
prior approval of (agency concerned) make adjustments in such periods as may be
appropriate to ensure the efficient performance of the Services, provided that such
adjustment will not cause payments made under the Agreement to exceed the cost
estimated referred to in Section 4.01.

3.02 Replacement of Personnel

Except as the (agency concerned) may otherwise agree the Staff shall consist of
those indicated in the Technical Proposal and no charges shall be made in the
Staff. In the event any employee resigns, is discharged or is withdraw due to
 circumstances beyond the control of the consultant without the permission of
(agency concerned) prior to completing his contract period of service in the
Philippines, Consultant shall, without cost to (agency concerned) undertake to
provide a suitable personnel of equivalent or better qualifications acceptable to
(agency concerned) whose remuneration shall not exceed that which is being
received by the one he has replaced. In like manner, it shall replace any of its
Staff who is found by the (agency concerned) to be unqualified, incompetent or
otherwise becomes undesirable. However, if any expatriate employee while
stationed in the Philippines shall become incapacitated by illness or accident in
connection with his work and the same is not due to his willful misconduct, the
employee upon certification of his incapacity by a Philippine Government medical
doctor, may be returned to his point of origin. In such case and in case of a
deceased employee, the cost of the employees return transportation shall be
reimbursed by (agency concerned) including the cost of his replacement.

3.03 Philippine Laws, Customs Traditions

The consultants expatriate personnel shall not participate in the political affairs of
the Philippines and shall not act against local laws, customs and traditions. The
Government may require the Consultant to withdraw or replace any person, at no cost to
the Government pre-judicial and adverse to its laws, interest, customs, and traditions.

3.04 Team Leader

The Consultant shall ensure that at all time during the fieldwork, a resident
engineer, acceptable to the (agency concerned) shall take charge, as team leader
(either the Project Manager, project Director, etc.), of the operation of the staff in
the field and likewise, be responsible for liaison between the Consultant and the
(agency concerned).

3.05 Physical Fitness

The Consultant shall be responsible for determining that all Expatriate Personnel
and their accompanying dependents are physically fit to work under this
Agreement and to in the Philippines, and for this purpose:

3.05.1 The Consultant shall ensure that all long term Personnel and their
accompanying dependents are examined by a licensed doctor of medicine,
prior to departure for the Philippines. The Consultant shall require the
doctor to certify that in the doctors opinion, such Personnel and
dependents are physically qualified to work and reside in the Philippines.

3.05.2 If the Personnel and dependents have no such medical certificates prior to
the departure for the Philippines, and such Personnel is unable to perform
 the type of activity for which he is employed, and is unable to complete his
tour of duty because of any physical disability, the Consultant shall not be
reimbursed for the return transportation cost of physical disabled
Personnel or his dependents and their effects, nor shall the Consultant be
reimbursed for travel to the Philippines of a replacement for such disable
personnel and for shipment of his effects.

ARTICLE IV
PAYMENT TO CONSULTANT

4.01 Cost Estimates

An estimate of the cost of the service payable in foreign currency is set forth in
Appendix E. Estimates of the cost of the Services payable in local currency is set
forth in Appendix G.

4.02 Ceiling Estimates

Except as may otherwise be agreed upon under Section 4.08 and subject to
Section 4.03 and notwithstanding any other provisions of this Agreement,
payment under this Agreement shall not exceed in foreign currency (state foreign
cost) and in the Philippine Pesos (state Philippine Pesos cost).

In addition, a budgetary sum in foreign currency ____________ and __________

Philippine Pesos is hereby set aside for contingencies.

4.03 Support Staff and Facilities

The amounts provided for in Section 4.02 have been fixed on the understanding
that the (agency concerned) will make available free of charge to the Consultant
the exemptions assistance services, and facilities provided in Article 5.03.

4.04 Use of Contingency Amount

Payments in respect of costs which would exceed the estimates set forth in
Appendix E hereof, may be chargeable to the contingency amounts in the
respective estimates only if such costs are approved by the (agency concerned)
prior to its being incurred and provided, further, that they shall be used only in
line with the unit rates and costs specified in the Agreement and in strict
compliance with the Projects needs.

4.05 Currency Payments

Except as otherwise agreed between (agency concerned) and the Consultant:

 a) Payment in respect of foreign currency expenditures incurred by the
Consultant as specified in Appendix F shall be made in ________;

b) Payment in respect of all local currency expenditures incurred by the

Consultants, as specified in Appendix G shall be made in Philippine pesos

4.06 Payment in Foreign Currency

4.06.1 Remuneration shall be determined on the basis of time actually spent by

the Personnel in the performance of the Services after the commencement
date thereof (including necessary travel via the most direct route) at the
rates and billing schedules specified in Appendix F and subject to the
following:

(a) The remuneration rates shall include salaries, costs in respect of

insurance, sickness, holiday and vacation pay, pension fund and
similar payments, overhead charges, and Consultants fee. The
breakdown of billing rates is shown in Appendix H, which form part
of this Agreement.
(b) Remuneration for services for period of less than one month shall be
calculated on an hourly basis of 176 hourly per month.
(c) The (agency concerned) shall not be responsible for payment of
annual leave or sick leave.

4.06.1 Reimbursable expenses, as shown in Appendix F shall include but are not
limited to the following:

(a) (i) the cost of full fare economy class air transportation by the most direct and
expeditious air routes of the Personnel and their eligible dependents
(spouse and children 18 years not to exceed two (2) children) from their
point of origin. Eligible dependents are those of the Personnel assigned to
resident duty in the Philippines for periods of not less than one (1) year
and for those whose period of constructive assignment is over 6 moths but
less than one year, only the spouse will be entitled for reimbursement of
the cost of transportation.

(ii) for the air travel of each of the Personnel, and his/her spouse, the cost of
excess baggage up to 20 kilograms per person, per round trip.

(iii) for any personnel spending 18 consecutive months or more in the

Projects, one round trip will be reimbursed for every 12 months of
assignment in the project for the Personnel and his/her dependents.
 (iv) Miscellaneous travel expenses such as the cost of transportation to and
from airports, airport taxes, passports, visas travel permits, vaccination,
etc. at the agreed fixed price per round trip. A maximum of two (2) days
shall be allowed for travel time each way.

(b) the cost of international communications incurred in the home offices for
purposes of the Services such as postage, telex, cable, telephone, courier
services, air freight of documents, etc. at actual cost.

(c) Cost of printing, preparing, reproducing and shipping of documents, relevant

to the services and incurred in home office.

(d) Cost of items not covered but which may be required by the consultant for the
successful and timely completion of the services, subject to prior
authorization in writing by the (agency concerned).

4.07 Payment to the Consultant in Local Currency

The (agency concerned) shall pay or reimburse to the Consultant in Pesos for the
expenditures incurred in the Philippines in respect of the Services but subject to
the ceiling amount specified in Section 4.02 as follows:

4.07.1 Payment for Services of Personnel of the local Consultants and local
associates as defined in Appendix G on the basis of time actually spent on
the Project. The breakdown of billing rates is presented in Appendix H

4.07.2 Per diem and living allowances for the Expatriate Personnel of the
Consultants for every day which such Expatriate Personnel shall be in the
Philippines, at the rates specified in Appendix G.

4.07.3 For local Consultant, per diem allowance at the rates specified in
Appendix G while in the Project site or outside of designated official
station of duty.

4.07.4 Domestic travel, which covers the cost of full fare economy class air
transportation by most direct and expeditious routes of the Consultants
staff for official trips authorized by the (agency concerned).

4.07.5 The cost of transportation of Consultants staff while in the Philippines,

who are required, in the connection with their work under the Agreement,
 to travel in the Philippines away from the station of duty where such
transportation is not provided by the (agency concerned).

4.07.6 The base of operations of the Consultant shall be in _______________ .It

is understood that the stations of duty of Consultants Home Office Staff is
in.

4.07.7 Cost of items not covered in the foregoing but which may be required by
the Consultants for completion of the Services, subject to the prior
authorization in writing of the (agency concerned).

4.08 Completion in Excess in of Estimated Man-Months

In the event the maximum estimated man-months specified in Appendix D of this

Agreement are exceeded, it is agreed that the remuneration to consultant for the
excess man-months over the maximum will comprise the same items as contained
in Section 4.07 above.

4.09 Method of Payment Foreign Currency

Billing and payment in respect of the services shall be made as follows:

4.09.1 Within thirty (30) days after given notice to proceed, the (agency
concerned) shall pay the consultant the amount of __________ as
mobilization expenses subject to the posting of an irrevocable standby
letter of credit or surely bond issued by the GSIS or other entities
acceptable to the Government and of an amount equal to the advance
payment. Said amount shall be offset by the (agency concerned) by
deducting twenty percent (20%) of the value of the invoice from every
subsequent invoice starting from Invoice No. 1 until said payments have
been fully offset. The period of recoupment of the advance payment
however should not be more than 11/2 of the contract duration.

4.09.2 Consultant will submit monthly invoices for services render and
reimbursable costs to the (agency concerned) with such supporting
documents as may be reasonably requested by (agency concerned). Said
invoices shall be duly certified by the Consultant and shall contain a
certificate to be executed by an authorized officer of the (agency
concerned), certifying that the amount being claimed is due and payble
under the terms of this Agreement. Within thirty (30) dayys from the
receipts of foreign exchange invoice and supporting documents, (agency
concerned) will submit the invoices to the (lending institution, as the case
may be) for payment to the Consultant in foreign currency. Should
additional supporting information be required and/or an error in the
computation be found in the submitted invoices after process and the same
 can no longer be corrected without reprocessing or canceling the whole
billing, the (agency concerned) may still submit said invoice to the
(lending institution) for payment but shall advise the Consultant of
adjustment and/or provide the necessary additional documentation in the
subsequent invoice.

The procedure described above is one of several procedures that may be

followed. The actual procedure to be adopted shall be as agreed upon
between the contracting parties.

4.09.3 If any invoice includes any item, which appears questionable, (agency
concerned) shall issue a written objection, shall deduct the item from the
invoice, and approve the undisputed balance of the invoice as stipulated in
Section 4.09.2 above. The Consultant may resubmit the disputed items
with additional supporting documents in subsequent invoices.

4.10 Method of Payment Local Currency

The method of billing and payment to the Local Consultant will be the same as
specified above, except that (agency concerned) will pay the Consultants in
Manila and in Philippine Pesos.

Monthly invoices to cover payment of reimbursable expenses incurred in

Philippine Pesos, such as, travel and subsistence) allowance in the Philippines,
shall be promptly paid by the (agency concerned) upon presentation of the
necessary supporting evidence.

4.11 Should consultants progress fall more than twenty percent (20%) behind the
approved work schedule due to circumstances which, in the opinion of the
(agency concerned), were within the control of or could have reasonably been
foreseen by the Consultant, then the (agency concerned) may withhold all or part
of the Consultants itemized statements until progress is brought back within at
least twenty percent (29%) of that schedule. Any revisions in the scheduling of
activities in the event of major delay in the work due to Consultants failure shall
in no case involve cost overruns resulting from any additional man-months
making up for the delay.

4.12 Final Payment

Upon completions of the services, Consultant shall promptly render a final

accounting of foreign and local currency costs under Clauses 4.06 and 4. 07.
Final payment shall be made only after a Certificate of Completion issued by the
(agency concerned) shall have been submitted by the Consultant.

4.13 Valuation of Currencies

 Whenever it shall be necessary for the purpose of this Agreement to evaluate one
currency in terms of another, the conversion shall be made on the basis of official
exchange rates at the time of each disbursement.

4.14 Escalation

Adjustment of the billing rates and fixed allowances under Appendices F and G to
cope with price movement will take not more than once a year, the first
adjustment to be made after 12 months from the date of signature of the contract
by (the appropriate official of the agency concerned). All proposed rate
adjustment shall be submitted with substantiating reasons and documents. The
Consultant shall have to prove to the (agency concerned) by submitting an audited
statement or any other equivalent documentation that its company average salary
increase is equal at least to the demanded percentage of price adjustment increase.
Said increase will be subject to prior approval of the agency concerned). The
adjustments will be claimed retroactive to the date of approval by the (agency
concerned). The Consultants request for adjustment of rates shall be based on an
annual audited statement but not exceeding the following formula:

Adjusted Rate = Agreement Rate + [Agreement Rate x (I Io)/Io]

Where,

I - represents the Consumer Price index at the time of adjustments:

Io - represents the Consumer Price index for the month proceeding the date
of signing of the Agreement by the appropriate official of the agency
concerned.

For adjustment of the foreign currency rates, the Consultant shall submit cost of
living index as prepared by the relevant agency of the government in the home
office country of the Consultant as validated and authenticated by the Philippine
Embassy in the home office country. For adjustment of the local rates, the
Consultant shall submit the cost of living index as prepared by the National
Census and Statistics Office (NCSO).

ARTICLE V
OBLIGATIONS OF THE (AGENCY CONCERNED)

5.01 Philippine Taxation

The (agency concerned) agrees to seek exemptions, reimburse or pay in behalf of

Consultant for amounts paid on account of all taxes, duties, fees, levies, and other
impositions under the laws and regulations of the Philippines or any political
 subdivision or agency thereof (other than personnel who are citizens or permanent
residents of the Philippines) in respect of:

5.01.2 any payment made to the Consultant or to the Expatriate Personnel in

connection with the carrying out of the Services;

5.01.3 any household, personal effects and furnishing brought into the Philippines
by the Expatriate personnel and their dependents for their personal use or
consumption, which will be consumed in the Philippines or will
subsequently be, withdraw therefrom upon the departure of the Consultant
and Expatriate Personnel from the Philippines.

Provided that
(a) The Consultant and the Expatriate Personnel and their dependents
shall comply with customs, laws rules and regulations of the
Government in importing property into the Philippines; and

(b) If the Consultant or any of Expatriate Personnel or his Dependents

do not withdraw, but dispose of any property in the Philippines upon
which customs duties and taxes have been exempted, the consultant
shall bear such customs duties and taxes, including penalties, if any,
in conformity with the regulations of The Government.

5.02 Other Privileges and Exemptions

The (agency concerned) to agrees:

5.02.1 Faculty prompts clearance through customs of equipment, materials or

supplies required for the Services and of the personnel effects of the
Consultants personnel except those banned for importation by Central
Bank and other government entities.

5.02.2 Assist the Consultants personnel and their dependents with respect to any
necessary entry and exit visas, residence for their stay in the Philippines.

5.02.3 Issuance to officials, agents and representatives of the government such

instructions as may be necessary or appropriate for the effective
implementations of the Services.

5.02.4 Arrange for the provision to the Consultant and each of the staff work,
permits and such other documents as shall be necessary to enable them to
perform Services.
5.03 Services and Facilities

5.03.1 Transportation and Office Space at Project Site The (agency concerned)
shall provide:

(a) Suitably furnished office space for Consultants staff as the Project
Site.

(b) Local transportation for Consultants staff while in the Philippines

when needed for conduct of the Services.

(c) Access to Project data so the Consultant can accomplish its work in
an efficient manner.

5.03.2 Personnel, Services, Facilities and Equipment The (agency concerned)

shall make available to the Consultant and its Staff, free of charge,,
personnel, facilities, equipment and services, which are listed in more
detail in Appendix I appended hereto and forming part if this Agreement.

5.04 Staff of (Agency Concerned) Assigned to Consultant (Optional)

The (agency concerned) shall assign certain technical and administrative staff to
work with the Consultant. Such personnel shall be directed and supervised by the
Consultant but they shall remain the employees of the (agency concerned) and
their salaries as well as other costs shall be borne by the (agency concerned). A
list of such personnel and the periods of assignment arepresented in Appendix I,
appended hereto and forming part of this agreement.

5.05 Access to Land and Property

The (agency concerned) warrants that the Consultant shall have free and
unimpeded access to all lands and properties required for the effective execution
of the Services. Likewise, it shall be responsible for any damage to such land or
any property thereon resulting from such access (unless such damage is caused by
the willful default or negligence of the Consultant or its Staff).

ARTICLE VI
OBLIGATIONS OF THE CONSULTANT

6.01 Responsibilities of Consultant

6.01.1 Generally, but without limiting Consultants responsibilities elsewhere

stated under this Agreement, it shall:
 (a) Carry out the services with sound engineering theories and practices
to ensure that the final works will provide the most economical and
feasible development for the Project.

(b) Accept full responsibility for the consulting engineering services to

be performed under this Agreement for which the Consultant is
liable to the (agency concerned).

(c) Perform the work in an efficient and diligent manner and shall use its
best effort to keep reimbursable costs down to the possible minimum
without impairing the quality of the Services rendered.

(d) The Consultant shall comply with, and strictly observe any laws
regarding workmens health and safety, workmens welfare,
compensation for injuries, minimum wage, hours of labor and other
labor laws.
6.01.2 Recommendations of Consultant Should the recommendations of the
Consultant be changed in such a way safety and/or economy of the Project
is jeopardized, Consultant may request a written release from
responsibility for that part of the Project in question.

6.01.3 Liabilities of the Consultant the Consultant for detailed design shall be
held responsible for failure of the facility due to faculty design. The
review made by the Client shall not release the Consultant from
responsibility except when substantial changes have been made without
the conformity of the Consultant.
6.02 Records

The consultant shall:

6.02.1 Keep accurate and systematic records and accounts in respect of the
Services in such form and detail as is customary and sufficient to establish
accurately that the costs and expenditures under this Agreement have been
duly incurred.

6.02.2 Permit the duly authorized representative of the (agency concerned) from
time to time to inspect its records and account as well as to audit the same.

6.03 Information and Progress Reports

The Consultant furnish the (agency concerned) monthly progress report and any
such information relative to the Services and the Project as the (agency concerned)
may from time reasonably request.
6.04 Assignment and/or Sub-Contract

6.04.1 Except with prior written approval of the (agency concerned), consultant
shall not assign nor sub-contract any part of the professional engineering
services under this Agreement to any other person or film.

6.04.2 The approval by the (agency concerned) and the (lending institution) to the
assignment of any part of said Services or to the engagement by the
Consultant of Sub-Contractors to perform any part of the same shall not
relieve the Consultant of any of its obligations under this Agreement.

6.05 Prohibition on Association

The Consultant agrees that during of after the conclusion or termination of this
Agreement, it shall limit its role under the project to the Provision of the Services
and hereby disqualifies itself and any other contractor, consulting engineer or
manufacturer with which it associated or affiliated, from the provision of goods
and other than the Services herein, except as the (agency concerned) may
otherwise agree.

6.06 Prohibition on Conflicting Activities

No full time foreign Staff during his assignment under this Agreement shall
engage, directly, either in his name or through the Consultant, in any other
business or professional activities in the Philippines other than performance of his
duties or assignment under. On the other hand, the (agency concerned) shall not
extend any appointment to Consultant Staff during the period of their assignment
except upon prior written approval of the Consultant.
6.07 Confidentiality

Except with the prior consent of the (agency concerned) the Consultant and the
Staff shall not at any time communicate to any person or entity ant information
disclosed to them for the purpose of the Services, nor shall the Consultant or the
Staff make public any information as to the recommendations formulated in the
course of or as a result of the Services.

6.08 Independent Contractor

Nothing contained herein shall be construed as establishing or creating between

the (agency concerned) and the Consultant, the relationship of employer and
employee or principal and agent, it being understood that the position of the
consultant and anyone else performing the Services is that of an independent
Contractor.
6.09 The Consultant holds the Government free from any and all liabilities, suits,
actions, demands, or damages arising from the death or injuries to persons or
properties, or any loss resulting from or caused by said personnel incident to or in
connection with the services under this Agreement.

ARTICLE VII
GENERAL CONDITIONS

7.01 Laws of the Republic of the Philippines

The proper law of this Agreements shall be the law of the Government of the
Republic of the Philippines or, on the case of foreign-assisted projects, the law as
may be agreed upon during negotiations and provided for under the governing
loan/grant agreement. The Consultant and its Staff will conform to all applicable
laws of the same and will take prompt corrective action with regard to any
violation called to their attention.

7.02 Propriety Rights of the (agency concerned)

7.02.1 On Records and Other Documents Reports and all relevant data such as
maps, diagrams, plans, design, static, specifications and other supporting
record or materials compiled or prepared in the course of performance of
the service shall be the absolute properties of the (agency concerned) in
accordance with existing laws and shall not be used by the Consultant for
purposes unrelated to this Agreement without the prior written approval
of the (agency concerned). Corollary, the (agency concerned) shall inform
the consultant (non-architect) of any re-use of subject documents other
than those for which they were intended or prepared for under this
agreement. Copies of such documents as required in the TOR shall be
turned over to the (agency concerned) upon completion of the Project
except that Consultant shall have the right to retain two (2) copies of the
same.
However, the above may not apply to contracts for architectural services as
may be governed by architectural law(s).

7.02.2 On Equipment The following equipment shall remain the properties of

the (agency concerned):

(a) Those supplied by the (agency concerned) for the Project which shall
be turned by the Consultant after checking the inventory in accordance
with the procedures as determined by the (agency concerned).

(b) Those purchased by (agency concerned) or by the Consultant for the

former for the purpose of the Project.
7.03 Control and Approval of the (Agency Concerned)

The (head of the agency concerned) will designate in the writing as official who
shall keep in touch with the works, and shall be the authorized medium of
communications and/or approval in all matters relating to the Services under this
Agreement. Consultant shall, in advance consult and receive approval of the
(head of the agency concerned) or his designated official or officials before acting
upon important technical decisions and procedures.

7.04. Insurance

7.04.1 The (agency concerned) shall take out and maintain adequate insurance
against loss or damage to equipment for the Project, which are purchase in
whole and in part with funds provided by the (agency concerned).

7.04.2 The (agency concerned) undertakes no responsibility in respect of any life

health, accident, travel and other insurance for the Consultant or to its
family.

7.05 Changes

The (agency concerned) may at any time, by written notice to Consultant issue
additional instructions, require extra work or services, changes or alterations in
the work, or direct the omissions of works of Services covered by this Agreement.
Consultant shall make no additional changes, alterations and omissions except
upon the prior written approval of the (agency concerned).

In case of consulting services for construction supervision, the Project director

will monitor closely the manning schedule so that the staff to be employed are
only those necessary for the effective construction supervision. The (agency
concerned) may terminate the services of some or all of the staff if the services of
said staff are considered no longer necessary. The Notice of Termination,
however shall not be less than thirty (30) days prior to the effective date of
termination.

7.06 Term of Agreement

It is estimated that for the purpose of this Agreement, a term of no more than ___
calendar months will be required from the date of issuance of Notice to Proceed
until completion of Services as set forth in Appendix D.

7.07 Notice of Delay

 In the event that the Consultant encounters delay in obtaining the required services
or facilities under this Agreement, it shall promptly notify the (agency concerned)
of such delay and may request an appropriate extension for completion of the
Services. An extension of time may be granted provided it was established that
the cause of the delay in the performance of the work is due to the failure of the
(agency concerned) to provide the required services or facilities.

7.08 Audits

The Consultant shall keep clear and orderly records of all accounts, expenses,
salaries and costs. The monthly invoices to be submitted by Consultant under the
provisions of Section 4.09 and 4.10 of Article IV of this Agreement shall be
subject to review or verification by the (agency concerned) for purposes of
payment. the expenses in connection with such review or verification shall be for
the account of the (agency concerned).

7.09 Certificate of Completion

When the Services under this Agreement are completed to the satisfaction of the
(agency concerned), (agency concerned) shall issue a certificate of completion to
Consultant.

7.10 Intergration of all Prior Agreements and Negotiations

It is agreed that this Agreement expresses all the understanding, promises and
covenants of the parties and that it intergrates, combines an supersedes all prior
negotiations, understandings and agreements whether written or oral.

7.11 Notarization and Documentation

The documentation, notarial feesf and documentary stamps in connection with

this Agreement shall be for the account of the Consultant.
7.12 Eligibility

The Consultant represents and warrants that it is located in and is a national of the
__________ and that the Staff an Services will be substantially from the that
country except as may otherwise be provided herein.

7.13 Validity Clause

If any terms or conditions f this Agreement is held invalid or contrary to law, the
validity of other terms and conditions hereof shall not be affected thereby.

7.14 Warranty
 The Consultant hereby warrants that it has not given, or promised to give any
money or gift to any official or employee of the (agency concerned) or the
Government to secure this Agreement. Any violation of this warranty shall be
sufficient ground for revocation or cancellation of this Agreement.

7.15 Consultancy Cost

In cases where fixed billing rates are not used, the consultant shall make a
representatio that the salaries and other cost data included in the consultants
financial proposal are based on actual salaries and overseas allowances and that
the factors quoted for overhead, social charges and profict are based on the
consultants average cost expenses for the last three (3) years as presented in the
consultants annual financial report.

ARTICLES VIII

DISPUTES, ARBITRATION AND TERMINATION

8.01 Disputes

Any dispute concerning any question arising under this Agreement which is not
disposed of by agreement between the parties, shall between the parties, shall be
decided by the (head of the agency concerned) who shall furnish Consultant a
written copy of this decision.

8.02 Arbitration

The decision of the (head of the agency concerned) shall be final and conclusive
unless within thirty (30) days from the date of receipt thereof, Consultant shall
deliver to (agency concerned) a written notice addressed to the (head of agency
concerned) statin its desire to submit the controversy to arbitration. In such event,
the dispute shall be decided in accordance with Philippine Laws (Executive Order
No. 1008) or through international arbitration in the case of foreign-assisted
projects as may be required.

8.03 Enforcement

Decisions reached by arbitration may be enforced by either of the parties to this

Agreement in any court of competent jurisdiction in Philippines. In case of suit
arising in connection with the terms of this Agreement, the parties hereto
expressly submit to the jurisdiction of the said court.

8.04 Consultant Duty to Perform

 Durig any dispute between (agency concerned) and Consultant, the Consultant
shall proceed diligently with the performance of its services as directed by the
(agency concerned).

8.05 Suspension

If any of the following events shall have happened and be continuing, the (agency
concerned), may, by written notice to the Consultant, suspend in whole and in part
payments to its under this Agreement:

8.05.1 A default, failure or refusal on the part of the Consultant to perform the
Services in such a manner which will be consistent with the result herein
contracted for or its non-compliance with tprovisions of this Agreement
after giving thirty (30) days from receipt of written notice for the
consultant to rectify the deficiencies.

8.06 Termination of the Agreement

8.06.1 By the Client

(a) If any of hte conditions referred to in Section 8.05 of this Article
shall continue for a period of thirty (30) days after receipt of
written notice of suspension of payments to the Consultant, the
(agency concerned)may, by written notice to the Consultant,
terminate the Agreement.
(b) In any otehr event, the (agency concerned) may terminate the
Agreement after sixty (60) days from receipt of written notice to
the Consultant.

8.06.2 By the Consultant

The Consultant shall promptly notify the (agency concerned) in writing of

any situations or occurrence beyond its reasonable control which makes it
impossible to carry out the obligations under this Agreement. Upon
confirmation in writing by the (agency concerned) of the existence of any
event or upon its failure to respond to such notice within fifteen (150 days
from receipt thereof, the Consultant shall be relieved from all liabilities for
failure to carry out such obligations and it may there uupon terminate the
Agreement by giving not less than thirty (300 days from receipt of written
notice to the (agency concerned).

8.07.2 Upon termination of this Agreement, unless the same shall have been
occasioned by Consultants default, Consultant shall be entitled to receive
reimbursement costs in full for such termination and of reasonable costs
incident to the orderly liquidation of its Services.
8.08 Force Majeure

8.08.1 if either party is termporarily unable by reason of force majeure to meet

any of its obligations under this Agreement, and if such party gives to the
other party written notice of the event within fourteen (14) days after its
occurrence, such obligations of the party shall be suspended for as long as
the inability continues.

8.08.2 Neither party shall be liable to the other party for loss or damages
sustained by reason of force majeure or delays arising from such event.

8.08.3 The term force majeure as employed herein shall mean strikes, lockouts
or other industrial disturbances, acts of the public enemy, wars, blockades,
insurrections, riots, epidemics, landslides, earthquakes, storms, lightning,
floods, washouts, civil disturbances, explosions, and any other similar
events, not within the control of either party which with the exercise of
due diligence neither part is able to overcome.

ARTICLE IX
EXECUTION

9.01 Effectivity

This Agreement shall be subject to the approval of the (applicable boards, if any)
and shall become binding on both parties upon approval by the Philippine
Government authorities concerned and the concurrence of concerned foreign
financial institution as may be required in the case of foreign-assisted projects.
The (agency concerned) shall then issue a Notice to Proceed to Consultant and the
Consultant shall be paid for Services rendered effective from the date of its actual
service.

9.02 Commencement Date

The Consultant will commence the Services within ____ days (Note: not later
than thirty (30) days) after the issuance of a Notice to Proceed by the (agency
concerned).

9.03 Notices and Addresses

 All notices called for by the terms of this Agreement shall be valid or binding on
either party unless expressed in writing and executed with the same formality as
this Agreement.

9.04 Amendments

No amendments, modifications, or alterations, to this Agreement shall be valid or

binding on either party unless expressed in writing and executed with the same
formality as this Agreement.

9.05 Counterparts

This Agreement is executed and delivered in two (2) copies, one (1) for the
(agency concerned) and one (1) for the Consultant, each of which shall be deemed
an original.

IN WITNESS WHEREOF, the parties have hereunto set their hands on the date
and place first above-written.

REVISED PROVISION FOR CONTRACT AMOUNT DERIVED AS

PERCENTAGE OF CONTRUCTION COST

When the amount indicated in the Agreement is derived as percentage of

estimated construction cost, the following section shall replace ARTICLE IV
PAYMENTS TO CONSULTANT of the Pro Forma Agreement for Consultancy:

ARTICLE IV
CONSULTING SERVICES FEE

1. The OWNER agrees to pay the Consultant for his Professional Services in the
amount of _____________ PESOS as a total lump sum fee.

2. The payment of the Consultants fee shall be made as follows:

a. Upon completion of hte schematic Design services, submission and approval

of the schematic instruments by the OWNER, a sum equal to FIFTEEN
PERCENT (15%) of the lump sum fee;

b. Upon completion of the Design Development services, submission and

approval of the design development instruments by the OWNER, a sum equal
to TWENTY PERCENT (20% of the lump sum fee;
 c. Upon completion of the construction bidding services, submission and
approval of construction phase instruments by the OWNER a sum equal to
FIFTY PERCENT (50%) of the lump sum fee;

d. Upon completion of the construction, and submission of construction

completion report to the OWNER, a sum equal to FIFTEEN PERCENT (15%)
of the lump sum fee.

In summary, the schedule of payment is as follows:

After Schematic Design 15.0% of fee

After Design Development 20.0 %
After Contract Document 50.0 %
After Construction 15.0 %
---------
TOTAL 100.0%

3. The Consultants fee shall be paid progressively or partially, each payment

to be equivalent to the evaluated quantity of work satisfactorily accomplished and not yet
paid.

4. The schematic design and the design development services, otherwise

called the preliminary design service also, may be completed simultaneously and
submitted together for approval.

5. No final payment shall be made until the Consultant submits to the

OWNER a certification, attested by the Project Manager or his representative to the effect
that ther undertaking provided herein has been satisfactorily completed. In case of default
of the CONTRACTOR, at any stage of construction, payment to the Consultant shal be
proportional to the construction work thus accomplished.

6. If the OWNER fails to implement the plans and documents for

construction as prepared by the Consultant, the Consultant is entitled to receive as
compensation the sum corresponding to EIGHTY FIVE PERCENT (85%) of his fee for
Design Services.

PREQUALIFICATION EVALUATION
AND AWARD C OMMITTEE
APPENDIX G

DOCUMENTARY REQUIREMENTS

The documentary requirements of the Professional Regulation Commission and

the Securities and Exchange Commission are as follows:

a. Philippine Regulation Commission (PRC)

The PRC requires a special permit to practice a profession (G-2-G-3). The

processing time for this calls for a period of three (3) to four (4) weeks.

b. Securities and Exchange Commission (SEC)

Following is a list of the documentary requirements of SEC:

i. Basic Requirements for Registration of Articles of Incorporation (G-4-G-

5)

ii. Treasurers Affidavit (G-6)

iii. Statement of Assets and Liabilities (G-7 - G-8)

iv. Bank Certificate of Deposit (G-9)

v. Authority to Verify Bank Accounts (G-10)

vi. Written Undertaking to Change Corporate Name (G-11)

vii. Supporting Papers Requiredf to be Submitted with the Articles of

Incorporation of a Non-Stock Corporation (G-12)

The processing time calls for a period of three (3) to five (5) days.

PRC Form No. 102-A (rev. 6-83)

THIS FORM IS NOT FOR SALE

APPLICATION FOR SPECIAL PERMIT TO PRACTICE A PROFESSION

NOTICE: This application must be filled up in
ink and in the applicants handwriting. All exhibits
shall be in photocopies and shall become part of the
records of the Commission. The original of the Passport
 exhibits shall be presented for authentication of the Size
photocopies. Photo

WARNING: All statements are subject to verification

and any false statement or misrepresentation made in
this application is a ground for disqualification and
criminal prosecution for falsification.

PROFESSION APPLIED FOR DATE OF FILING DO NOT FILL

O.R. No. _______
Date ___________
Amount _________

Part I - PERSONAL DATA

APPLICANTS NAME (Print in Bold CITIZENSHI CIVIL SEX PASSPORT
Letters) P STATUS NUMBER
(Surname)(Given Name)(Maternal Surname)
PLACE OF BIRTH DATE OF DATE OF ARRIVAL IN THE
BIRTH PHILIPPINES
PHILIPPINE ADDRESS HOME ADDRESS IN HIS NATURE OF STAY
COUNTRY (Visit or permanent
residence)

a) Have your ever been accused of, indicted, tried or convicted by any court of
justice, military tribunal or administrative body? /_/ If so, attach a copy of the
decision or complaint if still pending.

b) Are you suffering from any serious illness or any infectious desease, or have you
undergone surgery which may impair or otherwise affect your practice of the
profession? /_/ If so, what illness or disease? _______________________

c) Have you ever been treate of mental illness, or confined in any mental hospital,
clinic or institution? /_/ If so, state when you were treated or confined, and in what
hospital or clinic or institution. _________________________
Part II - PROFESSIONAL COURSES TAKEN
TITLE OR DEGREE COLLEGE OR DATE HONORS,
RECEIVED UNIVERSITY DEGREE DISTINCTIONS OR
GRADUATED CONFERRED AWARDS RECEIVED

Part III - SPECIALIZATION

(STATE BRIEFLY YOUR FIELDS OF SPECIALIZATION, SPECIAL STUDIES OR COURSES TAKEN)
 Part IV - LICENSURE EXAMINATION PASSED
NAME OF WHERE DATE RATING CERTIFICATE OF LICENCE
EXAMINATION TAKEN TAKEN NUMBER DATE ISSUED BY

PART V - EXPERIENCE AND TRAINING

INCLUSIVE DATE OF POSITION HELD EMPLOYER COUNTRY OR ESTATE
SERVICE

CERTIFICATION

I DO HEREBY CERTIFY that the information and statements in this application,

including the exhibits submitted in support thereof, are all true and correct of my own
knowledge, and that I am fully aware that any false information or statement in this application or
in its attachments renders me liable for criminal prosecution.

Date ___________________ ______________________________________

APPLICANTS CUSTOMARY SIGNATURE

Affix here P 1.50 Doc. Stamp

SECURITIES AND EXCHANGE COMMISSION

PUBLIC ASSITANCE UNIT

BASIC REQUIREMENTS FOR REGISTRATION

OF ARTICLES OF INCORPORATION
-------------------------------------------------------------
( ) 1. Verification Slip Re: corporate name;
( ) 2. Articles of incorporation;
( ) 3. Treasurers Affidavit;
( ) 4. Statement of Affidavit;
( ) 5. Bank Certificate of Deposit;
( ) 6. Authority to verify Bank Accounts;
( ) 7. Written Undertaking to:
( ) a. Change Corporate name;
( ) b. Comply with RA 2629 - Investment Company Act;
( ) c. Comply with Bonded Warehousing Act;
( ) e. Comply with RA 7787 - Security Agency;
( ) f. Report to BOI pursuant to Sec. 2(2) of RA 6455;
( ) g. Assume unpaid subcriptions of non-resident alien subscriber (s) under oath
( ) 8. Marital consent of husband(s) or married incorporator (s) subscriber(s)
either in the articles of incorporation or in separate document;
( ) 9. Tax Account Number of incorporation;
( )10. Personnel Information Sheet of Directors/Officers/Subcribers;
( )11. Affidavit of joint Liability (stock brokerage business);
( )12. Joint Affidavit of Incorporation;
( )13. Inventory of personal property(ies) signed by the owner(s)/subcriber(s);
( )14. Deed of Assignment of:
( ) a. Real Property(ies) duly presented for Primary Entry in the
Office of the Registry of Deeds where property(ies)
Is/are located;
( ) b. Personal Property(ies);
( )15. Appraisal Report of real and /or personal property (ies) being assigned;
( )16. Original and photostat copies of:
( ) a. ACR or ICR of resident alien incorporator(s) subscriber(s);
( ) b. Proof(s) of Filipino citizenship of incorporation(s)/
subcriber(s) with foreign sounding name;
( ) c. O.C.T. or T.C.T. or copies thereof duly certified by its official
custodian (Register of Deeds);
( ) d. Real Estate Tax Declaration(s) and latest Real Estate Tax payment
receipt(s);
( )17. Written consent of creditor(s) of property(ies) being assigned, if subjected to lien or
encumbrances;
( )18. Certificate of Authority issued by the Central Bank of the Philippines;
( )19. Indorsement of the Agricultural Productivity Commission
re: agricultural cooperative and farmers association;
( )20. Certification of Director of Private School to permit to use name of school;
( )21. Modus Operandi of explanation as to how purposes will be carried out;
( )22. Resolution of the board of Directors that corporation will comply with
SEC Requirements for Non-Stock Corporation;
( )23. List of members (preferably signed) certified by the Secretary;
( )24. Verification by Chief Priest, or head of the Church;
( )25. Certificate of Appointment of Chief Priest, Presiding Elder or
Head of the Church;
( )26. Power of Attorney (General or Special);
( )27. Extra Judicial Partition Agreement;
( )28. Letters of Guardianship;
( )29. Court Order approving investment of minor(s);
( )30. Registration Data Sheet;
( )Others_________________________________________________________________
TREASURERS AFFIDAVIT

REPUBLIC OF THE PHILIPPINES)

_________________________________)S.S.

I, ________________________________ being duly sworn, and say:

That I have been elected by the subscribers of the corporation as Treasurer thereof, to act
as such until my successor has been duly elected and qualified in accordance with the by-laws of
the corporation, and that as such Treasurer, I thereby certify under oath that at least 25% of the
authorized capital stock of the corporation has been subscribed and at least 25% of the total
subscription has been paid and received by me in cash or property in the amount of not less that
P5,000.00, in accordance with the Corporation Code.

_______________________________
Treasurer

SUBCRIBED AND SWORN to before me, a Notary Public for and in the
City/Municipality of _____________________________, Province of _____________, this
_____day of ______________________, 19 ______ by ___________with Res. Cert. No.
___________ issued at _________ on __________ 19 ________.

________________________________
Notary Public
Until December 31, 19___

Doc. No. _______

Page No. _______
Book No._______
Series of _______

Republic of the Philippines

Ministry of Finance
SECURITIES AND EXCHANGE COMMISION
Metro Manila

STATEMENT OF ASSETS AND LIABILITIES

_______________________________________
as of ______________________ 19 _________
at _____________________________________
 with office at ____________________________
_______________________________________

EXAMINED AND FOUND IN ORDER FOR PURPOSES OF

INCORPORATION, IS HEREBY PUBLISHED UNDER
SECTION 9 OF ACT 1486 BY ORDER OF THE
SECURITIES AND EXCHANGE COMMISSION

ASSETS

Cash on hand/or in banks P _____________

Accounts receivable _____________
_____________
Furniture and Office Equipment _____________

Total Assets _____________

LIABILITIES AND NET WORTH

Accounts payable

P _____________
_____________
Total Liabities P _____________

Authorized Capital Stock:

_________________ shares
(Number) (Class)

at P __________ per value P ___________

Capital Stock Subsribed ___________
Less: Subscription Receivable ___________
Paid-Up Capital _____________
Surplus _____________
Net Worth _____________
Total Liabilities & Net Worth _____________

_________________
Treasurer: ________

REPUBLIC OF THE PHILIPPINES)

) S.S.

SUBCRIBED AND SWORN to before me this ______day of _______, 19 ___ affiant exhibited to
me his/her Res. Cert. No. ________ issued at _______on ___________19____.

NOTARY PUBLIC
Until December 31, 19___

Doc. No. _________

Page No. _________
Book No._________
Series of 19 ______

Certificate of Deposit

BANK LETTERHEAD

(Head Office of Branch)

___________________
(Date)

The Securities and Exchange Commision

EDSA, Mandaluyong, Metro Manila

Greetings:

This is to certify that there is a deposit with this bank the sum of
___________________ (P _____________) in the name of ______________, Treasurer
in ______________________Trust for _______________________which is in the
process of incorporation.

The said deposit is clear and free from lien, restriction, condition or holdout and
maybe withdrawn in behalf of said company upon presentation of proof of due
incorporation thereof.

___________________________________________
NAME OF BANK OFFICER & DESIGNATION

REPUBLIC OF THE PHILIPPINES)

_____________________________) S.S.

SUBCRIBED AND SWORD to before me this _____________ day of ______,

____ affient exhibited to me his/her Residence Certificate No. _________, issued at
___________ on ______________________,

NOTARY PUBLIC
Until December 31, ____
Doc. No. ________
Page No. ________
Book No.________
Series of ________

Authority to Verify Bank Accounts

________________________
Date

Securities and Exchange Commission

Central Bank of the Philippines
Metro Manila

Gentlemen:

This is to authorize your office to examine and verify the deposit in the
_______________ (NAME OF BANK) _____________ in my name as Treasurer-in-
Trust for ___________________________ which is to the process of incorporation.

This authority is valid and inspection of said deposit may be made even after the
issuance of the Certificate of incorporation to the company.

Should the deposit be transferred to another bank prior to or after incorporation,

this letter will aslo serve as authority to verify and examine the same.

The representative of the Securities and Exchange Commission is also authorized

to examine the pertinent books and records of accounts of the corporation as well as all
supporting papers to determine the utilization and disbursement of said paid-up capital.

By:

________________________
Treasurer
Written Undertaking to Change Corporate Name

_________________
Date

The Chairman
Securities and Exchange Commission
EDSA, Mandaluyong
Metro Manila

In connection with the registration of the Articles of Incorporation/Partnership of

the ___________________________, I, the undersigned representative and on behalf of
the organizers thereof, hereby manifest our willingness to change its
corporate/partnership name in the event another person, firm or entity has acquired a prior
right to the use name or one deceptive or confusingly similar to it.

Very truly yours,

________________________
(Name)

________________________
(Address)
 SUPPORTING PAPERS REQUIRED TO BE SUBMITTED
WITH THE ARTICLES OF INCORPORATION OF A
NON-STOCK CORPORATION
==============================================

1. VERIFICATION SLIP (Re: Corporate name)

2. LETTER OF UNDERTAKING: addressed to the Commission signed by at least a

majority of the incorporators or by the duly authorized representative, to the effect
that the association will changeits corporate name in the event another person, firm or
entity has acquired a prior right u sing the same name or one similar to it.

3. MODUS OPERANDI or a detailed explanation as to how the association shall carry

out its objectives signed by at least a majority of the incorporators or by its duly
authorized representative.

4. BOARD RESOLUTION signed by at least a majority of the Director or certified

under oath by the Secretary in the following tenor to wit:

RESOLVED, that the corporation or association will

comply with the S.E.C. REQUIREMENTS FOR NON-
STOCKCORPORATION dated May 24, 1963 in the course
of its Operation.

5. LIST OF MEMBERS of the Association containing their manual signatures and

attested by the Secretary.

6. REGISTRATION DATA SHEET.

7. LIST OF CONTRIBUTORS AND AMOUNT CONTRIBUTED certified under oath

by the Treasurer.