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BOQ vs Contract

Post by TalnaPj on Tue Aug 11, 2009 2:04 pm

Would anyone help me answer the following issues:

1. What is the weight of the Bill of Quantities (BOQ) in a certain infra project? In case of conflict between the BOQ and the Contract which shall prevail?

This are the questions i have encountered which i think is worth sharing with everyone. The facts goes this way - The procuring entity (A, for brevity) bidded out an infra project with which the contractor (B, for brevity) emerged as the LCRB. One of the requirements of RA 9184 is the submission of the BOQ. B was able to comply with that requirement only to find out later that one of the items specified in the Bid Documents was omitted in B's submitted BOQ. The Contract was signed by the parties and the general and special conditions were taken. (In that contract, the item omitted in B's BOQ is present). On the other hand, B did not make an ocular visit on the sight of the project but instead executed an affidavit taking the risk and responsibility for not having made an ocular visit. Notice to Proceed with the project was issued to B giving it the go signal to commence with the implementation of the same. B would later on send a letter to A asking the latter if it could appropriate another budget for that omitted item in the BOQ sighting in its explanation that such omitted item could not be undertaken by it because it is not part of the BOQ it submitted. What could be some possible solution/s with this problem? What will be the liability of the BAC and TWG who awarded the contract, if any? This is all for now. Thank you!
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Re: BOQ vs Contract

Post by riddler on Tue Aug 11, 2009 4:39 pm

TalnaPj wrote:Would anyone help me answer the following issues:

1. What is the weight of the Bill of Quantities (BOQ) in a certain infra project? In case of conflict between the BOQ and the Contract which shall prevail?

I believed the BOQ is an integral part of the Contract. BOQs are prepared by the Procuring Entity.

TalnaPj wrote:
This are the questions i have encountered which i think is worth sharing with everyone. The facts goes this way - The procuring entity (A, for brevity) bidded out an infra project with which the contractor (B, for brevity) emerged as the LCRB. One of the requirements of RA 9184 is the submission of the BOQ. B was able to comply with that requirement only to find out later that one of the items specified in the Bid Documents was omitted in B's submitted BOQ. The Contract was signed by the parties and the general and special conditions were taken. (In that contract, the item omitted in B's BOQ is present).


contractor B should have protested before the perfection of the Contract, since one of the item is not included in the BOQ. However, I think Contractor B's concerned should be considered too! If this is a Large Contract, the problem shall addressed under Dispute Resolution which I believed is also included in your Contract.( Have you checked the detailed estimate prpared by the contractor?, it might have included the missing items in their estimate)

TalnaPj wrote:
On the other hand, B did not make an ocular visit on the sight of the project but instead executed an affidavit taking the risk and responsibility for not having made an ocular visit. Notice to Proceed with the project was issued to B giving it the go signal to commence with the implementation of the same. B would later on send a letter to A asking the latter if it could appropriate another budget for that omitted item in the BOQ sighting in its explanation that such omitted item could not be undertaken by it because it is not part of the BOQ it submitted. What could be some possible solution/s with this problem? What will be the liability of the BAC and TWG who awarded the contract, if any? This is all for now. Thank you

May I ask, How much is the amount of the omited items? Does it go beyond 10% of the ABC?
I would have use the Clause "E" of RA 9184, through a Variation Order.. I think This is a win-win solution for both. As to the liability of BAC and TWG, although I believed this is an honest mistake, they maybe liable and also the agency who prepared the Program of Work for failure to complete/check the data in the BOQ's.
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Re: BOQ vs Contract

Post by RDV @ GP3i on Sun Aug 16, 2009 1:12 pm

TalnaPj wrote:Would anyone help me answer the following issues:

1. What is the weight of the Bill of Quantities (BOQ) in a certain infra project? In case of conflict between the BOQ and the Contract which shall prevail?

This are the questions i have encountered which i think is worth sharing with everyone. The facts goes this way - The procuring entity (A, for brevity) bidded out an infra project with which the contractor (B, for brevity) emerged as the LCRB. One of the requirements of RA 9184 is the submission of the BOQ. B was able to comply with that requirement only to find out later that one of the items specified in the Bid Documents was omitted in B's submitted BOQ. The Contract was signed by the parties and the general and special conditions were taken. (In that contract, the item omitted in B's BOQ is present). On the other hand, B did not make an ocular visit on the sight of the project but instead executed an affidavit taking the risk and responsibility for not having made an ocular visit. Notice to Proceed with the project was issued to B giving it the go signal to commence with the implementation of the same. B would later on send a letter to A asking the latter if it could appropriate another budget for that omitted item in the BOQ sighting in its explanation that such omitted item could not be undertaken by it because it is not part of the BOQ it submitted. What could be some possible solution/s with this problem? What will be the liability of the BAC and TWG who awarded the contract, if any? This is all for now. Thank you!

I agree with engr ruel, Bidding documents form an integral part of the contract (Sec. 37.2.3, IRR-A and revised IRR). The BOQ prepared by the procuring entity is part of the bidding documents.

Contractor B should have been disqualified by the BAC/TWG for having an incomplete bid. I don't know how they missed that particular item in the BOQ which they prepared while Contractor B has to fill up only the unit price (in words and figures) and the total cost for each item (in words and figures), as well as the total bid price. As to the BAC/TWG's liability, it has to be determined first if, at the very least, they have been liable for gross negligence, misconduct, or grave abuse of discretion.

As to the possible solution, before resorting to arbitration (which should be arbitrated by the CIAP), the contracting parties should exert first every effort to settle the dispute amicably.

I do not, however, agree that the matter could not fall within the ambit or "variation order" as there is actually no variation at all. Contractor B just failed to include a necessary item in its bid. The affidavit of site inspection will also work against him.
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Re: BOQ vs Contract

Post by TalnaPj on Tue Aug 18, 2009 6:16 pm

Good afternoon!

I guess you're right sirs ruel and RDV. Your comments and suggestions just solidified the ideas I have in mind. Initially, our BAC sent a reply to the letter of Contractor B reiterating the contents of the contract that both parties signed. I don't think contractor "B" would easily give in to that; but hopefully, both parties would amicably settle this the soonest possible time in the interest of public service.

Thank you very much and til my next post!
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