2012-12-21

NPM 157-2012
Requesting Entity: Regulatory Office Tourism Infrastructure and Enterprise Zone Authority
(TIEZA)

Issues Concern: Extension of Contract with Additional Remuneration of Consultant

Details:Whether TIEZA may be allowed to grant time extension with corresponding

additional remuneration to its consultant under the revised Implementing Rules and
Regulations (IRR) of Republic Act (RA) 9184.

Section 2 of Annex "F" of the IRR of RA 9184 expressly provides that all consultancy
contracts shall be fixed price contracts and any extension of contract time shall not involve
any additional cost. Based on this provision, an extension of time may be granted for
contracts involving consultancy services provided that it should not entail additional cost to
the Procuring Entity (PE) to cover the extension. Moreover, we note that Section 2 of Annex
"F" is clear and does not provide any exceptions to the fixed price contract feature.

Based on the foregoing, x x x TIEZA may validly grant time extension for the consultant to
completely render the services required and stipulated under the contract for consultancy
services for the RRE. However, the time extension should not entail additional cost to the PE
as this is prohibited under Annex "F" of the IRR of RA 9184.

2013-12-26

NPM 119-2013
Requesting Entity: Bases Conversion and Development Authority (BCDA)

Issues Concern: Additional Deliverables in an Existing Design Consultancy Contract

Details
Whether BCDA could revise and include additional deliverables to its existing design
consultancy contract.

BCDA may revise the existing design contract to include additional deliverables, provided,
however, that such revision will entail no additional payment or cost on the part of the
procuring entity.

Section 61.1 of the revised Implementing Rules and Regulations (IRR) of Republic Act No.
(RA) 9184 provide that all bid prices shall be considered as fixed prices, and therefore not
subject to price adjustment and escalation during the contract implementation. Moreover,
Section 2 of Annex "F" of the IRR of RA 9184 reiterates the principle that all consultancy
contracts shall be fixed price contracts and any extension of contract time shall not involve
any additional cost. Lastly, Clause 55.6 of the General Conditions of Contract of the
Philippine Bidding Documents for the Procurement of Consulting Services provides that no
additional payment for variation order, if any, shall be allowed for the consultancy contract.