Normally, not later than 15 calendar days from the date of approval of the contract by the concerned local government unit official, the Head of the Engineering Office of the Local Government Unit concerned issues the Notice to Proceed (NTP) to the successful bidder.

APPLICABLE LAWS, RULES AND REGULATIONS

1. Section IB 10.10 ISSUANCE OF NOTICE TO PROCEEDS, Model Guidelines, Rules and Regulations Governing LGU- Funded Infrastructure Projects (implemented by DILG Memorandum Circular No. 94-185 dated October 20, 1994)

"IB 10.10ISSUANCE OF NOTICE TO PROCEEDS

1.The concerned Head of the Engineering Office of Local Government Unit concerned should issue the Notice to Proceed (NTP) to the successful bidder normally not later than fifteen (15) Calendar days from the date of approval of the contract by the concerned/local government unit official.

2.For project whereby the Notice to Proceed (NTP) is issued after 120 calendar days from the bidding date, the awarded bidder may request for a contract unit price adjustment shall be the original contract unit price multiplied by the fluctuation factor K without deducting the 5%. Such updated unit prices shall be used as basis for computing the regular progress billings, and price escalation for work accomplishment shall be calculated using the parametric formulae herein prescribed as applied to the update unit prices reckoned from the month of the NTP. Adjustment of unit prices shall be made within fourteen (14) calendar days from the date the required indices are available/issued by the appropriate local government unit."

2. Memorandum Order No. 215 dated January 10, 1989 - Directing all agencies of the government implementing infrastructure projects to adopt and enforce calibrated actions on contracts with negative slippages.

"To ensure timely and effective remedial steps against delays in project implementation and to deter such construction work slippages, all agencies of the government implementing infrastructure project/s are hereby directed to adopt and enforce calibrated actions on contracts with negative slippages.

For purposes of uniformity in the implementation and enforcement of this Memorandum Order, all government agencies concerned are hereby enjoined to adopt Department Order No. 102, series of 1988, dated November 8, 1988, of the Department of Public Works and Highways on Calibrated Actions on Contracts with Negative Slippages.

3. DPWH Department Order No. 102 dated November 8, 1988 - Calibrated Actions on Contracts with Negative Slippage.

To ensure timely and effective remedial steps in response to delays in project implementation, all Project Managers (PMs), Regional Directors (RDs), and District Engineers (DEs) concerned shall undertake the following calibrated actions whenever contracts for infrastructure projects reach the levels of negative slippage (attributable to the contractor) indicated below:

1. Negative slippage of 5% ("Early Warning" Stage): The contractor shall be given a warning and required to submit a "catch-up" program to eliminate the slippage. The PM/RD/DE shall provide thorough supervision and monitoring of the work.

2. Negative Slippage of 10% ("ICU" Stage): The contractor shall be given a second warning and required to submit a detailed action program on a forthnightly (two weeks) basis which commits him to accelerate the work and accomplish specific physical targets which will reduce the slippage over a defined time period. Furthermore, the contractor shall be instructed to specify the additional input resources - money, manpower, machines, and management - which he should mobilize for this action program. The PM/RD/DE shall exercise closer supervision and meet the contractor every other week to evaluate the progress of work and resolve any problems and bottlenecks.

3. Negative slippage of 15% ("Make-or- Break" Stage): The contractor shall be issued a final warning and required to come up with a more detailed program of activities with weekly physical targets, together with the required additional input resources. On-site supervision shall be intensified, and evaluation of project performance will be done at least once a week. At the same time, the PM/RD/DE shall prepare contingency plans for the termination/rescission of the contract and/or take-over of the work by administration or contract.

4. Negative slippage beyond 15% ("Terminal" Stage): The PM/RD/DE shall initiate termination/rescission of the contract and/or take-over of the remaining work by administration or assignment to another contractor/appropriate agency. Proper transitory measures shall be taken to minimize work disruptions, e.g., take-over by administration while rebidding is going on.

In all cases, as manager of the project, the concerned PM/RD/DE shall be held accountable for the success or failure of project implementation, including the slippages incurred and the elimination thereof.

4. DPWH Department Order No. 202, series of 1993 - Right of Contractor to be Heard Before Rescission of His Contract.

"A Contractor shall be given seven (7) working days to submit a written explanation as to why the DPWH or its Implementing Offices should not rescind his contract upon receipt of "Intent to Rescind" for any of the following causes attributable to the contractor per Clause 97, DPWH Standard Specifications, Volume I, 1988, to wit:

a) Abandonment of the Contract Works.

b) Not actually having on the project site the minimum essential equipment listed on the Bid necessary to prosecute the works in accordance with the approved working schedule, as required for the project before twenty-five percent (25%) of the original Contract time expires.

c) Not executing the Works in accordance with the Contract or his persistently or flagrantly neglecting to carry out his obligations under the Contract.

d) Neglect or refusal to remove materials or to perform anew work that has been rejected as defective or unsuitable.

e) Sub-letting any part of the Contract Works without approval by the Government.

f) Becoming bankrupt or having a receivership order made against him or presenting his petition in bankruptcy or making an arrangement with or assignment in favor of his creditors or agreeing to carry out the Contract under a committee of inspection of his creditors or, being a corporation going into liquidation for the purposes of amalgamation or reconstruction or assigning the Contract without the prior consent in writing of the Government, or having an execution levied on his goods.

Rescission of contract due to negative slippage in excess of fifteen percent (15%) shall be covered by Department Order No. 102, Series of 1988, which calibrates and warnings on contracts with negative slippages at different stages."