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Government Taxes and Fees

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Government Taxes and Fees

Post by adsmasher on Sat Mar 21, 2009 6:38 pm

Hi. Good Day to all.

I am a 4th year Civil Engineering Student of UP, and we are currently working on a bid project (a single span bridge) in one of our management class.

I am having troubles in finding a complete list of all the taxes and fees imposed by the national and/or local government (since it is needed in the Bid Price offer) for construction projects,

Also, anyone has a sample of a bid proposal? A guide would be a great help for our project.

All sorts of inputs from you guys will be highly appreciated.


Thank you in advance =)

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Re: Government Taxes and Fees

Post by engrjhez® on Sun Mar 22, 2009 9:24 pm

adsmasher wrote:Hi. Good Day to all.

I am a 4th year Civil Engineering Student of UP, and we are currently working on a bid project (a single span bridge) in one of our management class.

I am having troubles in finding a complete list of all the taxes and fees imposed by the national and/or local government (since it is needed in the Bid Price offer) for construction projects,

Also, anyone has a sample of a bid proposal? A guide would be a great help for our project.

All sorts of inputs from you guys will be highly appreciated.

Thank you in advance =)
Nice to see how Bridge Engineering sprouted and brought to life again after the initiatives of the centennial graduates!

To clear your thinking, bridge construction, as any other infrastructure, is subject to the same taxation as buildings. On the quantity survey (materials' take-off), the raw prices (with some adjustments) are estimated as well as the labor and equipment needed to implement he project. The contingencies, overheads, (escalation if any) and profits are added after that. They are determined depending upon the "capital stretching capacity" of the contractor and as to "how much they are willing to lose just to win" the contract. Add the taxes after that and presto - you have your bid proposal.

I'm not familiar of taxation and I will not advise you to be with at your status. Just set a fixed rate for it, say 12% (because all other bidders are subject to the same tax rate). I will also try (if I can find some free time to scan documents, and remember to send it Very Happy ) to furnish you sample estimates of multi-span pre-stressed concrete girder bridge in *.pdf for your academic purposes.

PS. Regards to UP ACES and to the ICE Faculty Cool
2001-79140
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Re: Government Taxes and Fees

Post by adsmasher on Sun Mar 22, 2009 11:34 pm

engrjhez wrote:
Nice to see how Bridge Engineering sprouted and brought to life again after the initiatives of the centennial graduates!

To clear your thinking, bridge construction, as any other infrastructure, is subject to the same taxation as buildings. On the quantity survey (materials' take-off), the raw prices (with some adjustments) are estimated as well as the labor and equipment needed to implement he project. The contingencies, overheads, (escalation if any) and profits are added after that. They are determined depending upon the "capital stretching capacity" of the contractor and as to "how much they are willing to lose just to win" the contract. Add the taxes after that and presto - you have your bid proposal.

I'm not familiar of taxation and I will not advise you to be with at your status. Just set a fixed rate for it, say 12% (because all other bidders are subject to the same tax rate). I will also try (if I can find some free time to scan documents, and remember to send it Very Happy ) to furnish you sample estimates of multi-span pre-stressed concrete girder bridge in *.pdf for your academic purposes.

PS. Regards to UP ACES and to the ICE Faculty Cool
2001-79140

wow, it's nice to know you're also from up. thanks a lot. that would surely help! =)

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Re: Government Taxes and Fees

Post by engrjhez® on Wed Mar 25, 2009 10:23 pm

While still seeking some time to check a bridge estimate, you may want to browse and download some infos on these links:

http://www.ilo.org/public/english/employment/recon/eiip/download/techn_audit.pdf

http://www.hdm.lth.se/fileadmin/hdm/alumni/papers/icm1999/icm1999-16.pdf

Hope it helps. Very Happy

NOTE: Part of the contents on the second link is already obsolete. Please refer to table on page 6 for the indirect costs.
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Re: Government Taxes and Fees

Post by isabelo c. rodriguez on Tue Jun 26, 2012 2:16 am

good evening engrjhez:
i am not also familiar with the taxes imposed by the government hence this query. in a public bidding held recently for an infra project, a bidder submitted a bid indicating a 6% vat instead of the usual 12%. our accountant said that a 6% vat would suffice since part of the cost of construction materials to be shouldered by the bidder is a 6% vat collected by the seller or hardware stores. (by the way, our agency failed to indicate this tax imposition the reason why bidders submitted different tax interpretations). alin po ba ang tama?
another question: can an admin officer sit as member of the bac or even be the chair for that matter?
maraming salamat po.

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Re: Government Taxes and Fees

Post by engrjhez® on Tue Jun 26, 2012 8:36 am

isabelo c. rodriguez wrote:good evening engrjhez:
i am not also familiar with the taxes imposed by the government hence this query. in a public bidding held recently for an infra project, a bidder submitted a bid indicating a 6% vat instead of the usual 12%. our accountant said that a 6% vat would suffice since part of the cost of construction materials to be shouldered by the bidder is a 6% vat collected by the seller or hardware stores. (by the way, our agency failed to indicate this tax imposition the reason why bidders submitted different tax interpretations). alin po ba ang tama?
another question: can an admin officer sit as member of the bac or even be the chair for that matter?
maraming salamat po.

Fundamental is the rule that evaluation should be done on equal footing. Since there is a discrepancy on how bidders present their taxes, you may look at it equally as if all had no taxes.

Ex.

Bidder A - used 6% tax
Bidder B - used 12% tax
Bidder C - used 0% tax (cooperative)

For evaluation purposes, you may look at it as if there were no taxes on of them. That is for evaluation purposes only. Ranking should be based on that premise. However, should the Award be given to "A", the award of contract will be based on their submitted bid price or calculated bid price whichever is lower.

I hope I answered it clearly. Smile

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Re: Government Taxes and Fees

Post by RDV @ GP3i on Tue Jun 26, 2012 10:33 am

isabelo c. rodriguez wrote:good evening engrjhez:
i am not also familiar with the taxes imposed by the government hence this query. in a public bidding held recently for an infra project, a bidder submitted a bid indicating a 6% vat instead of the usual 12%. our accountant said that a 6% vat would suffice since part of the cost of construction materials to be shouldered by the bidder is a 6% vat collected by the seller or hardware stores. (by the way, our agency failed to indicate this tax imposition the reason why bidders submitted different tax interpretations). alin po ba ang tama?
another question: can an admin officer sit as member of the bac or even be the chair for that matter?
maraming salamat po.

You should ask your finance officer or accountant on what should be the correct taxes that should be reflected by the bidders, then apply the correct taxes uniformly on all the bids for purposes of comparison and ranking. If after adding the correct amount of tax, the calculated price of a bidder already exceeds your ABC, then the BAC has to declare that particular bidder as disqualified. Cooperatives which joined your bidding process which are themselves tax-free under the Cooperatives Code will also be assessed the same amount of tax for comparison purposes. If the cooperative is finally declared the LCRB, the amount of contract will, however, be free of taxes.

On the question of an admin officer sitting as a member of the BAC, the qualifications are prescribed in Sec. 11.2 of the IRR. To be a Chair, the Admin Officer should be at least 3rd ranking permanent (plantilla position) officer of the procuring entity.
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Re: Government Taxes and Fees

Post by engrjhez® on Wed Jun 27, 2012 12:48 pm

Thanks RDV, for answering where I missed. Smile

BTW, are there proposed GP3i projects or at least any meeting for this year? Are there plans to launch another batch of training for GPPB Trainers this year?
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Re: Government Taxes and Fees

Post by isabelo c. rodriguez on Wed Jun 27, 2012 8:03 pm

thank you engrjhez and rdv for your help! i have another question regarding supplemental procurement plan. our new female boss, recently refurbished her office previously occupied by our former male boss. so we bought paints, a new door for the c.r. a new wireless phone, etc. but the thing is, these were not included in our app! i know we are courting trouble by doing this and a disallowance notice from coa wouldn't be far behind. my question is, can we right this wrong by including those items in our spp? are there other remedies left for us? salamat po.

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