Re: Insurance coverage

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Re: Insurance coverage

Post by sunriser431 on Wed Jul 08, 2009 5:39 pm

Procurement of Civil Works
Section III. General Conditions of Contract
14.Insurance
14.1.The Contractor shall, under his name and at his own expense, obtain and maintain, for the duration of this contract, the following insurance coverage:
(a)Contractor’s All Risk Insurance;
(b)Transportation to the project Site of Equipment, Machinery, and Supplies owned by the Contractor;
(c)Personal injury or death of Contractor’s employees; and
(d)Comprehensive insurance for third party liability to Contractor’s direct or indirect act or omission causing damage to third persons.
14.2 xxxx
14.3 xxxx
14.4 xxxx
14.5 xxxx
14.6 xxxx
My question do we have to impose this requirement? Is this included in the Provision of the IRR-A of RA#9184?
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Re: Re: Insurance coverage

Post by RDV @ GP3i on Thu Jul 09, 2009 11:20 am

It is the obligation of the winning contractor to take an insurance for the project during the contract implementation stage. It is already part of the General Conditions of Contract and becomes one of the obligations of the winning contractor, for the protection of the contractor, the contractor's personnel, third parties, and finally the procuring entity.

Even if those provisions are not specifically included as part of IRR-A, but since those were specifically included as part of the standard GCC provisions, therefore, you have to implement those provisions since they form part of the Contract with the contractor (Sec. 37.2.3, IRR-A).
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Re: Re: Insurance coverage

Post by sunriser431 on Wed Jul 15, 2009 11:36 am

RDV wrote:It is the obligation of the winning contractor to take an insurance for the project during the contract implementation stage. It is already part of the General Conditions of Contract and becomes one of the obligations of the winning contractor, for the protection of the contractor, the contractor's personnel, third parties, and finally the procuring entity.

Even if those provisions are not specifically included as part of IRR-A, but since those were specifically included as part of the standard GCC provisions, therefore, you have to implement those provisions since they form part of the Contract with the contractor (Sec. 37.2.3, IRR-A).

For purpose of discussion
If there is complict in the provision of the IRR-A of GPRA, the RA 9184 will prevail?, if there is complict in the provision of the PBDs for Infrastructure, the IRR-A of the GPRA shall prevail?
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Re: Re: Insurance coverage

Post by RDV @ GP3i on Wed Jul 15, 2009 11:46 am

sunriser431 wrote:
RDV wrote:It is the obligation of the winning contractor to take an insurance for the project during the contract implementation stage. It is already part of the General Conditions of Contract and becomes one of the obligations of the winning contractor, for the protection of the contractor, the contractor's personnel, third parties, and finally the procuring entity.

Even if those provisions are not specifically included as part of IRR-A, but since those were specifically included as part of the standard GCC provisions, therefore, you have to implement those provisions since they form part of the Contract with the contractor (Sec. 37.2.3, IRR-A).

For purpose of discussion
If there is complict in the provision of the IRR-A of GPRA, the RA 9184 will prevail?, if there is complict in the provision of the PBDs for Infrastructure, the IRR-A of the GPRA shall prevail?

The answers to your 2 questions are both YES! But, I don't see any comflicts in the provisions.
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Re: Re: Insurance coverage

Post by riddler on Wed Jul 15, 2009 11:58 am

sunriser wrote:For purpose of discussion
If there is complict in the provision of the IRR-A of GPRA, the RA 9184 will prevail?, if there is complict in the provision of the PBDs for Infrastructure, the IRR-A of the GPRA shall prevail?

I think lawyers will agree with me that RA 9184 shall prevail over the IRR-A, and the IRR-A shall prevail over the PBD. The spring cannot rise above its source.
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Re: Re: Insurance coverage

Post by sunriser431 on Wed Jul 15, 2009 3:35 pm

RDV wrote:
sunriser431 wrote:
RDV wrote:It is the obligation of the winning contractor to take an insurance for the project during the contract implementation stage. It is already part of the General Conditions of Contract and becomes one of the obligations of the winning contractor, for the protection of the contractor, the contractor's personnel, third parties, and finally the procuring entity.

Even if those provisions are not specifically included as part of IRR-A, but since those were specifically included as part of the standard GCC provisions, therefore, you have to implement those provisions since they form part of the Contract with the contractor (Sec. 37.2.3, IRR-A).

For purpose of discussion
If there is complict in the provision of the IRR-A of GPRA, the RA 9184 will prevail?, if there is complict in the provision of the PBDs for Infrastructure, the IRR-A of the GPRA shall prevail?

The answers to your 2 questions are both YES! But, I don't see any comflicts in the provisions.

For further Discussion
Granted that the RA#9184 did not provide this requirement, but then again if it is really necessary for the protection of the Government and contractor so be it.

Section III. General Conditions of Contract
Notes on the General Conditions of Contract

The details in the GCC and SCC, and submission thereof, along with other required documents listed therein, expressing all the rights and obligations of the parties, should be complete.

The GCC herein shall not be altered. Any changes and complementary information, which may be needed, shall be introduced only through the SCC.

Section III. General Conditions of Contract
14.Insurance
14.1.The Contractor shall, under his name and at his own expense, obtain and maintain, for the duration of this contract, the following insurance coverage:
(a)Contractor’s All Risk Insurance; (its to general/broad) This could have been included in the Section 1V SCC, but this was not provided thereat. refer to PBDs for infrastructure Section 1V SCC
Example the risk of fire ,lightning, explosion, flood, inundation, rain, earthquake, theft, burglary, bad workmanship, lack of skill, negligence, etc. any changes should be introduce in the SCC, but no clause/provision was provided thereat.

(b)Transportation to the project Site of Equipment, Machinery, and Supplies owned by the Contractor;
Example the Tranportation equipment if owned by the contractor is ready and covered comprehensive insurance, ( motor vehicle)
(c)Personal injury or death of Contractor’s employees; and
Example The Technical Proposal requirement of the Contractor is included in the Construction safety and health program of the contractor, the likes of Philhealth or medicare coverage.

(d)Comprehensive insurance for third party liability to Contractor’s direct or indirect act or omission causing damage to third persons.

14.2 xxxx
14.3 xxxx
14.4 xxxx
14.5 xxxx
14.6 xxxx
If those are mandatory requirements why is it not mention in the Section 1V of the SCC? Any changes has to be introduce thereat.
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Re: Re: Insurance coverage

Post by RDV @ GP3i on Wed Jul 15, 2009 5:33 pm

sunriser431 wrote:For further Discussion
Granted that the RA#9184 did not provide this requirement, but then again if it is really necessary for the protection of the Government and contractor so be it.

Section III. General Conditions of Contract
Notes on the General Conditions of Contract

The details in the GCC and SCC, and submission thereof, along with other required documents listed therein, expressing all the rights and obligations of the parties, should be complete.

The GCC herein shall not be altered. Any changes and complementary information, which may be needed, shall be introduced only through the SCC.

Section III. General Conditions of Contract
14.Insurance
14.1.The Contractor shall, under his name and at his own expense, obtain and maintain, for the duration of this contract, the following insurance coverage:
(a)Contractor’s All Risk Insurance; (its to general/broad) This could have been included in the Section 1V SCC, but this was not provided thereat. refer to PBDs for infrastructure Section 1V SCC
Example the risk of fire ,lightning, explosion, flood, inundation, rain, earthquake, theft, burglary, bad workmanship, lack of skill, negligence, etc. any changes should be introduce in the SCC, but no clause/provision was provided thereat.

(b)Transportation to the project Site of Equipment, Machinery, and Supplies owned by the Contractor;
Example the Tranportation equipment if owned by the contractor is ready and covered comprehensive insurance, ( motor vehicle)
(c)Personal injury or death of Contractor’s employees; and
Example The Technical Proposal requirement of the Contractor is included in the Construction safety and health program of the contractor, the likes of Philhealth or medicare coverage.

(d)Comprehensive insurance for third party liability to Contractor’s direct or indirect act or omission causing damage to third persons.

14.2 xxxx
14.3 xxxx
14.4 xxxx
14.5 xxxx
14.6 xxxx
If those are mandatory requirements why is it not mention in the Section 1V of the SCC? Any changes has to be introduce thereat.

Sunriser, I don't know if you just misunderstood the purpose of the SCC, or what? But, let me explain anyway, at least "for discussion purposes" as it is your objective anyway.

The provisions in the GCC are fixed. As procuring entity, whatever you are procuring, you do not change any provision in the GCC, you adopt it as prescribed by the GPPB. However, for specific procurements, there are provisions in the GCC which need to be modified or changed, or additional information/instructions need to be included for the benefit of the bidder. These changes in the GCC provisions, if necessary, or additional information or instructions have to be placed in the SCC, opposite the GCC clause. It is the procuring entity which should put the corresponding provisions in the SCC (and not the GPPB). Sometimes, to aid the procuring entity, the GPPB already placed certain provisions in the SCC and the procuring entity needs only to select which provision is applicable (if GOP-funded, or WB-funded, or ADB-funded, or JBIC-funded). If there are no options and you have no further instructions (meaning the GCC provision is already sufficient as far as the procuring entity is concerned) then the procuring entity can just put the entry "No further instructions" or "Not Applicable" in the corresponding SCC clause, whichever is more appropriate.

In short, the SCC provisions are left for the procuring entity as they are applicable to the particular project that it is procuring, which the GPPB would not know ahead. It allows the procuring entity to adopt the bidding documents to its needs which it could not do so as far as the GCC (and also the ITB) provisions are concerned because said provisions are fixed (by the GPPB). As you said, "any changes has (sic) to be introduce (sic) thereat". That refers to the changes in the GCC provisions that the procuring entity may introduce, as they are specific to the project being procured.


Last edited by RDV on Wed Jul 15, 2009 5:43 pm; edited 1 time in total
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Re: Re: Insurance coverage

Post by riddler on Wed Jul 15, 2009 5:39 pm

.
sunriser wrote:The details in the GCC and SCC, and submission thereof, along with other required documents listed therein, expressing all the rights and obligations of the parties, should be complete.
The GCC herein shall not be altered. Any changes and complementary information, which may be needed, shall be introduced only through the SCC."

Contractor's Risk, Warranty security, Obligations, Insurance, etc. etc., are already provided in the GCC of the PBD.
If the instructions in the GCC states that, x x x "unless provided in the SCC , x x x", then we shall follow what the SCC provides, ergo, if it is not found in the SCC, meaning to say we have to abide by the Intructions in the GCC.
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