CE Laws Exam

Construction Law

Construction law governs the legal aspects of building and engineering projects, ensuring compliance with safety regulations, contract requirements, procurement rules, and labor laws.

Construction Industry Authority of the Philippines (CIAP)

The Construction Industry Authority of the Philippines (CIAP) is an agency under the Department of Trade and Industry (DTI) responsible for overseeing the Philippine construction industry.

CIAP's Role in Construction Laws

CIAP recommends standard contract documents for private and public construction projects, regulates and accredits contractors and construction firms, and develops policies for the improvement of the construction industry.

CIAP Document 101

General conditions for government construction projects.

CIAP Document 102

General conditions for private construction projects.

Government Procurement Reform Act

Republic Act No. 9184 standardizes procurement activities across all government agencies to modernize, streamline, and promote transparency and accountability in government-funded projects.

Key Features of the Government Procurement Reform Act

Ensures fair competition in bidding processes, mandates transparency and public monitoring of contracts, requires accountability from public officials and contractors, and encourages efficiency and cost-effectiveness in procurement.

2016 Revised Implementing Rules and Regulations (IRR)

The 2016 Revised Implementing Rules and Regulations (IRR) provides detailed procedures for implementing RA 9184 and serves as the legal guide for government procurement.

2016 Revised Implementing Rules and Regulations (IRR)

The set of rules and regulations governing the procurement process in the Philippines.

Pre-Construction Phase

The phase that includes conducting a feasibility study to confirm the project's technical and economic viability.

Feasibility Study

A study conducted to confirm the technical and economic viability of a project.

Key Design and Construction Elements

Elements that must be followed once engineering studies are completed, including design standards and cost estimates.

Approved Budget for the Contract (ABC)

The maximum budget allocated for a project, approved by the Head of the Procuring Entity (HoPE).

Value Engineering Studies

Studies aimed at optimizing costs without compromising quality.

Construction Execution & Contractual

The phase that involves the actual construction and adherence to contractual obligations.

Phased Projects

Projects that are divided into phases, each requiring an approved Program of Work (PoW).

Program of Work (PoW)

A document that must be approved before construction begins, detailing the schedule and activities.

PERT/CPM Schedule

A scheduling method that must be included in the Program of Work.

Emergency Projects

Projects that follow expedited procedures under NEDA-approved emergency guidelines.

Warranty Period

The period during which projects must include warranty provisions to cover defects.

Certification & Accountability

The requirement for engineers and consultants to certify that all work meets government standards.

Act

Refers to Republic Act 9184 (Government Procurement Reform Act), which standardizes and regulates government procurement.

Bidding Documents

The official documents issued by the government that contain all project details for bidders.

Bids and Awards Committee (BAC)

The government committee responsible for evaluating and awarding contracts through the bidding process.

Bid

A formal proposal submitted by a contractor or supplier to undertake a government project.

Common-Use Supplies and Equipment

Supplies and equipment that are commonly used and procured by government entities.

CSE

Items like office supplies and tools used in daily government operations.

Competitive Bidding

A transparent process where multiple bidders compete for a government contract to ensure fairness and cost-effectiveness.

Bidder

A contractor, supplier, or consultant who submits a bid for a government contract.

Consulting Services

Professional services such as engineering, project management, and feasibility studies required for government projects.

Domestic Bidder

A Filipino company or individual that offers locally manufactured goods or services.

Domestic Entity

A business where at least 75% of ownership belongs to Filipinos and has been operating for at least 5 years.

Executive Agreements

International agreements that do not require legislative approval.

Foreign Bid

A bid that offers goods or services not manufactured in the Philippines.

Foreign-Funded Procurement

Projects partially or fully funded by foreign loans or grants.

Foreign Grants

Financial aid given to the government without repayment obligations.

Foreign Loans

Borrowed money from international banks or governments to fund projects.

Goods

Physical items, materials, and equipment needed for government operations, excluding infrastructure and consulting services.

Government Procurement Policy Board (GPPB)

The body that oversees procurement policies and ensures compliance with laws.

Expendable Supplies

Consumable items like paper, fuel, and medicine that are used within one year.

Head of the Procuring Entity (HoPE)

The leader of a government agency responsible for procurement decisions.

Infrastructure Projects

Construction, maintenance, and rehabilitation of government buildings, roads, bridges, and other public structures.

Portal

A website that collects and displays procurement information for bidders.

Procurement

The process of acquiring goods, services, or infrastructure for government use.

Procuring Entity

Any government office, agency, or local government unit responsible for procurement.

Treaties

Legally binding international agreements that require legislative approval.

International Agreement

A formal contract between the Philippine government and a foreign country or organization.

Non-Expendable Supplies

Long-lasting items like vehicles, computers, and furniture that retain their value over time.

PhilGEPS (Philippine Government Electronic Procurement System)

The online platform where government projects are posted for bidding.

Universal or Commercial Banks

Large banks authorized under Philippine law to provide financial services, including loans for projects.

JICA (Japan International Cooperation Agency)

A Japanese government agency that provides loans, grants, and technical assistance to the Philippines.

ADB (Asian Development Bank)

A regional bank headquartered in Manila, Philippines, which funds projects in transport, energy, health, and economic reforms.

World Bank (WB)

An international financial institution that provides grants and loans for infrastructure projects.

China's Belt and Road Initiative (BRI)

A global development strategy adopted by China involving infrastructure development and investments in various countries.

Korea International Cooperation Agency (KOICA)

A South Korean government agency that provides grants and technical assistance for development projects.

Contract

Legally binding agreement between parties.

Legal Basis

Defined by Article 1305, Civil Code of Philippines.

Engineering Contract

Agreement for engineering services and obligations.

Key Characteristics

Defines roles, scope, compliance, and dispute resolution.

Parties Involved

Client and engineer (consultant/contractor) in contracts.

Scope of Work

Defines engineering or construction services provided.

Cost and Payment Terms

Covers price, schedules, and financing details.

Project Timeline

Specifies start, completion dates, and milestones.

Liabilities and Risk Allocation

Identifies responsibility for damages or delays.

Dispute Resolution

Mechanism for resolving conflicts, e.g., arbitration.

Termination Clauses

Conditions under which a contract may be canceled.

Lump-Sum Contract

Fixed payment for entire project regardless of costs.

Unit Price Contract

Payment based on per-unit work completed.

Cost-Plus Contract

Reimbursement for costs plus agreed profit margin.

Time and Materials Contract

Payment based on labor hours and materials used.

Design-Bid-Build (DBB)

Separate contracts for design and construction phases.

Design and Build (DB)

Single contractor handles both design and construction.

Turnkey Contract

Contractor delivers fully operational project.

Public-Private Partnership (PPP)

Private company builds infrastructure, later transfers ownership.

Compliance

Adherence to safety, quality, and regulatory standards.

Risk Allocation

Distribution of risk between parties in a contract.

Dispute Resolution Mechanisms

Methods for resolving contract-related conflicts.

Client Involvement

Degree of client participation in project decisions.

Project Completion

Final delivery of project phases or entire facility.

Build-Operate-Transfer (BOT)

Private builds, operates, then transfers to government.

Build-Transfer (BT)

Private builds, then immediately transfers to government.

Republic Act No. 9184

Philippine law governing government procurement and contracts.

Civil Code of the Philippines

Legal framework for contracts, ensuring consent and legality.

Commission on Audit (COA)

Monitors public funds and government contract compliance.

Build-Operate-Transfer Law

Regulates PPPs for infrastructure projects in the Philippines.

Toll Roads

Roads funded by user fees, often under BOT agreements.

Infrastructure Projects

Large-scale constructions like roads, bridges, and facilities.

Private Entity

Non-government organization involved in project financing.

Government Contracts

Agreements for public projects, subject to procurement laws.

Moderate Client Involvement

Client participates in decision-making during project.

Minimal Client Involvement

Client receives completed facility without further input

High Client Involvement

Client actively manages design and construction processes.

Long-term Operation

Private sector manages project before transferring to government.

Build-Own-Operate (BOO)

Private company retains ownership indefinitely without transfer.

Build-Lease-Transfer (BLT)

Private builds infrastructure, leases to government, then transfers.

Build-Transfer-Operate (BTO)

Private builds, transfers to government, continues operation.

Rehabilitate-Operate-Transfer (ROT)

Private upgrades existing infrastructure, transfers after concession.

Joint Venture (JV)

Co-investment by private sector and government in projects.

Advertisement and Invitation to Bid

Government publishes project details for potential bidders.

Pre-Bid Conference

Meeting for bidders to clarify project details.