Question & AnswerQ&A (GPPB Resolution NO. 22-2007)
The guidelines are formulated to determine the conditions for the use of the design and build scheme for infrastructure projects and to provide the procedures for the procurement and implementation of such contracts, supplementing the provisions of Republic Act No. 9184 and its Implementing Rules and Regulations Part A (IRR-A).
The design and build scheme may be used for flagship, priority, and fast track projects needing tight completion schedules; projects requiring advanced engineering or construction technology; projects where design, equipment, or construction can be exclusively provided by a company or where manufacturers know-how is important; and for small projects with previously approved drawings or standardized designs where design and construction innovation results in cost reduction and higher quality.
The ABC is a lump sum amount covering the cost of design and construction works based on the conceptual design and performance specifications, calculated from conceptual design quantities, standardized designs, or cost records of similar projects, and used as the maximum budget for the contract.
The Design and Build Committee is composed of highly technical personnel experienced in architecture, engineering, and construction relevant to the project. Its roles include assisting the project management office in preparing conceptual designs and performance specifications, reviewing engineering designs, supervising projects, and assisting the Bids and Awards Committee in evaluating technical proposals.
Eligibility includes compliance with Section 23-24 of the IRR-A, submission of required legal, technical and financial documents, demonstration of relevant project experience (either solo or joint venture) including experience in design and build projects with at least one similar project valued at 50% of the ABC, and valid professional licenses for design professionals where applicable. Joint ventures must have at least 75% Filipino ownership except in specific cases with technology requirements.
The Technical Proposal must include all required documents for infrastructure projects under IRR-A Section 25.3(b), plus preliminary conceptual design plans, design and construction methods, list of key personnel with qualifications, and a value engineering analysis of design and construction methods.
First, the BAC reviews preliminary conceptual designs and contractors track record using a pass/fail non-discretionary criteria focusing on adherence to specifications, methodology, and personnel quality. For complex projects, oral presentations may be required. Second, only bids passing the first step have their financial proposals opened and ranked from lowest to highest price, with the Lowest Calculated Bid identified for post-qualification.
If the Lowest Calculated Bid fails post-qualification, the BAC will reject the bid and the process continues by considering the next Lowest Calculated Bid for evaluation; the contract will only be awarded to a bidder who has been found post-qualified and compliant with all bid requirements.
The winning contractor must prepare and submit all necessary detailed engineering investigations, surveys, and designs, ensure these comply with the contract and technical specifications, and rectify any issues at their own cost. They hold sole responsibility for the integrity of the design and performance of the structure regardless of procuring entity approval.
All design and build projects shall have a minimum Defects Liability Period of one (1) year after contract completion or as provided in the contract documents, during which the contractor is liable for defects or failures, without prejudice to liabilities imposed under existing law such as Section 1723 of the New Civil Code.