GPPB on Design Build Procurement

These guidelines govern procurement and implementation of design and build contracts for infrastructure projects.
Supplement existing provisions of RA 9184 and its Implementing Rules and Regulations Part A, especially Section 17.6 and Annex E.

To establish conditions under which the design and build scheme may be used.
To set procedures for procurement and contract implementation under this scheme.

Advantages: a) Single contractor responsible for both design and construction, including risks. b) Reduced design and construction periods and final project costs. c) Quality assured through involvement of expert contractors.
Disadvantages: a) Difficulty in final cost prediction until actual construction starts. b) Contractor discretion may lead to differences from procuring entity's original requirements.

Approved Budget for the Contract (ABC): Lump sum covering design and construction costs based on conceptual design.
Bidding Documents: Include performance specifications and risk allocation methods.
Conceptual Design: General idea and scope of project facilities and construction methods.
Design and Build Projects: Single contracts that cover both design and construction awarded to one entity.
Performance Specifications and Parameters: Functional standards based on outputs, not favoring any design solution.
Preliminary Investigations and Survey: Data gathering on technical and environmental conditions necessary for design criteria and cost estimates.
Project Description and Utility Locations: Define project objectives, risk allocation, and existing utilities relevant to the site.

Suitable for: a) Flagship, priority and fast track projects listed in public investment plans. b) Projects requiring advanced technologies or proprietary intellectual property. c) Projects reliant on exclusive equipment, plant, or manufacturer know-how. d) Small projects with standardized designs where innovation can reduce costs and improve quality.
All such projects must be listed in the procuring entity's Annual Procurement Plan (APP) and prior approved by the head of the entity.

Entities may form a committee of technical experts in architecture, engineering, and construction.
The committee assists in design preparation, technical evaluations, and project supervision.

Pre-bid studies must be complete and approved, including conceptual design, specifications, surveys, utility data, budget estimates, and safety program requirements.
Data accuracy is the contractor's responsibility.
Procuring entity is responsible for right-of-way acquisition and eminent domain processes.

The winning bidder prepares and submits all detailed engineering plans and investigations, excluding bid documents and ABC.
A schedule for submission and approval of detailed designs is included in contracts.
Procuring entity reviews and approves or disapproves designs, with documented reasons for corrections.
Contractor bears full responsibility for design integrity and structural performance.

Must comply with legal, technical, and financial eligibility under Sections 23-24 of IRR-A.
Bidders submit combined eligibility documents for infrastructure and consulting services.
Experience requirements mandate at least one similar project comprising 50% of ABC.
Joint ventures or consortia allowed with majority Filipino ownership (at least 75%), exceptions allowed down to 25% for projects needing foreign expertise.
Professionals performing design services must be Filipino and properly licensed, with required authorization for foreign designers.

First envelope (Technical Proposal) includes technical eligibility documents, preliminary conceptual design, methods, personnel qualifications, and value engineering analysis.
Second envelope (Financial Proposal) includes lump sum bid price, detailed cost estimates, and payment schedule.

Two-step evaluation:
1. Technical compliance pass/fail assessment based on design adherence, proposed methodology, and personnel qualifications.
2. Opening and ranking of financial proposals for bidders who pass the technical evaluation.
Oral presentations may be required for complex projects.

Lowest Calculated Bid (LCB) undergoes post-qualification to confirm responsiveness.
Contract awarded to Lowest Calculated and Responsive Bid (LCRB).
Approval or disapproval of BAC recommendations must be done within 7 days.

Compliance with existing Annex E guidelines for infrastructure contract implementation.
Work commencement requires written approval following receipt of all required contractor documents.
Contractor responsible for obtaining risk and regulatory approvals.
Submission and approval of detailed work program including design, construction methods, personnel, equipment, and quality control.
Contractor costs for rectifications or changes due to their errors.
Changes generally limited to unforeseen conditions.
Change orders resulting from contractor errors implemented at no extra cost.
Contractors compensated only if delays or costs arise from procuring entity changes, subject to limits.
Payment schedules, advance payments, quality control, and inspection procedures clearly outlined.
Minimum one-year Defects Liability Period for all projects.
Contractor liable for design and structural defects.

GPPB authorized to issue further guidelines, amend provisions, and provide standard bidding and evaluation documents as needed.

Guidelines take effect 15 days after publication and filing of certified copies with the University of the Philippines Law Center.