2012-04-04

NPM 035-2012

Requesting Entity: Department of Public Works and Highways (DPWH)

Issues Concern: Statement of Work Accomplished and First Progress Payment

 

Details

Whether Clause 40.4 of the General Conditions of Contract (GCC), in relation to Section 5.1 of the Contract Implementation Guidelines for the Procurement of Infrastructure Projects (Guidelines), is applicable even if the actual work is less than the twenty percent (20%) required accomplishment.

[T]he contractor must keep in mind GCC Clause 40.4 which provides that "[t]he first progress payment may be paid by the Procuring Entity to the Contractor provided that at least twenty percent (20%) of the work must have been accomplished as certified by the Procuring Entity's Representative. Hence, the SWA or progress billing for the first progress payment must indicate that the completed portion of the work corresponds to twenty percent (20%) of the work so that it may be paid by the Procuring Entity."

In sum, the subject provisions do not prevent the Contractor from submitting its SWA even though the work accomplishment is less than the required twenty percent (20%). However, the first progress payment may only be made once the Contractor has already accomplished the twenty percent (20%) of the work as certified by the Procuring Entity's Representative. Thus, GCC Clause 40.4 cannot be made to apply for actual work that is less than the twenty percent (20%) required accomplishment.