Definition of Terms

DEFINITION OF TERMS

Tender Documents / Bid Document

·         Collectively refer to all documents provided or made available to prospective bidders, which include the Invitation to Bid and a copy of theContract, which the winning bidders would be required to sign with the Owner.

·         Collectively, the Invitation to Bid, Instructions to Bidders, Form of Contract Agreement, Conditions of the Contract, Drawings / Plans, Specifications and Form of Bid and the required Annexes, including Addenda.

Invitation to Bid / Advertisement

·         Refers to the notice published by the Owner

·         The invitation issued to prospective bidders, giving information as to the nature of the proposed project, conditions for the issuance of the Contract Documents, date of bidding, and information that would give the Contractor a general idea of the magnitude and extent of the project.

Instruction to Bidders

·         The list of instruction stipulating the manner on how bids are to be prepared and conditions for the award of the contract.

Addendum

·         A written additional information, provision, and/or other document issued by the client prior to the closing date for the receipt of Bids, which is made an integral part of the tender and Contract Documents.

 Bid / Tender

·         Offer of a bidder to perform the work described by the contract documents when made out and submitted on the prescribed form properly signed and guaranteed.

·         It is the tender, or proposal, or quotation or offer of a bidder to perform the work described in the Contract, which inform and substance complies with the Instruction to Bidders.

·         The written offer of a Bidder submitted in the prescribed form in response to the invitation to Bid and the Tender Documents issued by the client to furnish the required labor, equipment, and materials, to execute the specified work within the time prescribed therein, in consideration or payment at prices quoted in the Bid / Tender as submitted.

Bid Bond

·         Refers to any acceptable form of bond accompanying the Bid submitted by the bidder as a guarantee that the bidder will enter into Contract with the Owner for the construction of the Work, if the Contract is awarded to him.

Bid Bulletin

·         The additional information on c ontract documents issued to bidders before date of bidding.

·         Is a document containing addi tional information on Bid Documents issued to bidders before date of bidding.

 Notice of Award of Contract

·         A written notice from the Client to the successful Bidder stating that its Bid has been accepted and that, in accordance with the terms of the Tender / Bid Documents, he is required to enter into contract and to furnish the required Performance Bond and other stipulated Documents.

Contract Documents

·         The duly perfected and approved Contract Agreement including the Conditions of the Contract, Drawing / Plans, Specifications, Invitations to Bid,Instruction to Bidders, dully accomplished Form of Bid including its Annexes,Addenda, Performance Bond, Pre-Qualification, Statement, including Credit-Line, Evidence of Working Capital (Cash Deposit), Notice of Award and “Conforme” and other documents required in the Contract Agreement.

Work / contract works

·         The furnishings of all labor, materials, supplies, equipment, facilities, and other incidentals necessary or convenient to the successful completion of the Works and carrying out of all the duties and obligations imposed in the contract as defined by the Contract Documents.

Agreement

·         The contract between the owner and the contractor undertaking the project described in the contract documents there to and all general and special provisions pertaining to the work of materials therefore.

Drawing

·         Graphical representation of the work involved in the project.

·         Are graphical presentations of the Work, They include all supplementary details and shop drawings.

Specifications

·         The description in detail of the Works executed, the character and quality of materials and workmanship and special responsibility of the Contract that re not covered by the Conditions of the Contract. It includes Addenda, Supplemental Specifications, Special Provisions and Bulletins referred to the Contract Documents together with all the written agreements made.

Closed Specifications

§  Specifications stipulating the use of specific products or processes without provision for substitution.

Supplemental Specifications

§  Refers to the additional information, which may be issued as an addition to or amendment of the provisions of the Specifications.

Schedule of Materials and Finishes

·         Is an outline specification enumerating the type or trade names of materials required to be used by he Contractor for each work to be done.

Original Contract Time

·         The stipulated period of time within which the Contractor shall complete the Contract Works.

Performance Bond

·         Is the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to execute the Work in accordance with the Contract.

           

Credit Line

·         The amount of credit extended to the Contractor by a bank or other financing institution to cover the projected expenditures for out of pocket equipment rentals, materials, fuel, labor and overhead expenses of the project construction, in the amount prescribed by the Client.

Contract Price

·         The unit price of lump sums or other sums named in the Notice of Award to be paid to the Contractor in consideration of the implementation of the Works, subject to such addition thereto or deduction therefrom as may be made under the provisions contained or stipulated in the Contract.

Notice to Proceed

·         A written notice to the Contractor of the date on which he is to begin the prosecution of the works he has contracted.

Extra Work

·         These are additional labor, materials, supplies and other incidentals necessary to complete the works but not originally covered or called for in the Contract.

Change Order

·         It is a written order to the Contractor issued by the Owner after the execution of the Contract, authorizing a change or variation in the work or an adjustment in the Contract Price or Contract Time.

Additional Contract Time

·         The period of time allowed the Contractor by the Client in addition to the stipulated Contract Time necessitated by a duly issued extra work or change order.

Contract Time Extension

·         The period of time allowed by the Client for the delay suffered by the contractor due to causes beyond his control (Act of God or Force Majeure).

Final Payment

·         Referred to the payment of the final progress billing and all approved claims including but not limited to those variations in the work, Contract Price adjustments and or escalations, acceleration of work and others. It does not include the retention of money.

           

Persons involved in a BID

Owner

·         The person or firm ordering the project for execution, including duly appointed successors or authorized representatives.

Contractor

·         The person or firm whose proposal has been accepted and to whom the contract was awarded.

·         The individual, partnership, firm, corporation, company, joint venture, ass ociation, or syndicate whose bid has been accepted by the Client and which includes the Contractors personal representative, successors and permitted assignees.

Sub-Contractor

·         The individual, partnership, firm or corporation, joint venture, association having a direct contract with the Contractor dully approved by the MOH.

·         Is a contractor duly registered and licensed by the Philippine Contractors Accreditation Board having a direct contract with the Contractor who acts for or in behalf of the Contractor in executing any part of the Contract. One who merely furnishes materials without labor is a supplier and not a sub-contractor.

   

Surety

·         The person, firm or corporation who issues the bond required of the Contractor.

Progress Charts

Bar Chart

·         Medium used for gauging and controlling construction activities.

·         A bar chart generally shows the items of work and calendar covering the estimated construction period for the project. A dash or a colored line, extending from starting to completion date, indicates the estimated duration of each item. Actual progress is noted on the chart by a solid line or a line of a different color. The chart also may show percent completion of each item.

Critical Path Method (CPM)

·         It is a comprehensive system of time scheduling; it permits a more realistic analysis of the daily problems that tend to delay work than does the customary chart. It involves detailing in normal sequence, the various steps to be taken by each trade, from commencement to conclusion.

Slippage

·         The difference between scheduled and actual accomplishment per approved PERT / CPM and approved revisions thereof, usually indicated in percentage, positive or negative.

Breakdown of Work and Corresponding Value

·         It is a listing of different parts of the work indicating each part and its corresponding value.

Bonds

Bid Bond

·         Refers to any acceptable form of bond accompanying the Bid submitted by the bidder as a guarantee that the bidder will enter into Contract with the Owner for the construction of the Work, if the Contract is awarded to him.

Performance Bond

·         Is the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to execute the Work in accordance with the Contract.

Payment Bond

·         It is the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to faithfully comply with the Contract in respect of its obligations arising from to its workers, subcontractors, and suppliers.

Guarantee Bond

·         A bond furnished by the contractor and his surety as a guarantee to the quality of the materials and equipment installed and the workmanship performed by the contractor.

TERMS IN A CONTRACT 

Contract

·         A legal enforceable promise or agreement between two or more persons.

General Conditions

·         Printed documents stipulating the procedural and administrative aspects of the contract

Special Conditions or Provisions

·         The instructions that are issued prior to bidding to supplement and/or modify the Drawings, Specifications and for General Conditions of the contract.

Penalty Clause

·         A contract provision setting forth the damages a party must pay in the event of his breech.

Arbitration

·         The binding resolution of disputes by one or more neutral persons as a substitute for judicial proceedings.

Act of God or Force Majeure

·         It includes an earthquake, flood, typhoon, cyclone and other cataclysmic phenomena of nature and all misfortunes and accidents which human precedence could not for see or prevent.

Lien

·         A right enforceable against specific property to secure payment of an obligation.

Written Notice

·         It means the information, advice or notification pertinent to the project delivered in person or sent by registered mail to an individual, firm or corporation at the latter’s known business address.

Deed of Assignment

·         An agreement by virtue of which the owner of a credit transfers his credit and its accessory right to another, who acquired the power to enforce it to the same extent as the assignor, duly approved by the Client.

Install

·         The words “install” shall mean to build in, mount in positions, connect or apply any object specified ready for the intended use.

Furnish

·         The words “furnish” shall be understood to mean purchase and/or fabricate and deliver to the jobsite or other location when so designated.

Provide

·         The words “provide” shall be understood to mean furnish and install.