Toll Regulatory Board

TPF-4

TPF 4. DESCRIPTION OF THE METHODOLOGY AND WORK PLAN FOR PERFORMING THE PROJECT

4.1 INTRODUCTION

This section describes the Consultants understanding of the project and the methodology in performing the services for the Independent Consultant for Mactan-Cebu International Airport based on the general requirements indicated in the Terms of Reference.

4.2 THE PROJECT

A. BackgroundAs part of Public-Private Partnership (PPP) in the Philippines for attracting private investment in infrastructure, the Government of the Republic of the Philippines (Government), through the Department of Transportation and Communications (DOTC) and the Mactan-Cebu International Airport Authority (MCIAA), granted a 25-year concession for the development, operation and maintenance of the Mactan-Cebu International Airport to the GMR-Megawide Cebu Airport Corporation (GMACAC), a private sector entity.

Figure 1: Existing Mactan Cebu International Airport The Scope of the Concessionaires obligations under the Concession Agreement are:

a.) Construction of a new Passenger Terminal and Apron, along with associated infrastructure and facilities on the landside complaint with International Civil Aviation Organization (ICAO) standards;

b.) Renovation of the existing terminal along with associated infrastructure and facilities complaint with ICAO standards to handle domestic operations;

c.) Installation of all the required equipment and other associated facilities in accordance with the ICAO Standards;

d.) Installation of the required Information Technology (IT) and other equipment commensurate with the operations; and

e.) Operation and Maintenance (O&M) of both new and the existing passenger terminals and aprons during the concession period

Figure 2: Proposed New Airport of GMR-Megawide Consortium

In view of the scope and requirements of the Project, The DOTC is in need of the services of an Independent Consultant to review the design, construction, commissioning, operation and maintenance deliverables of the Concessionaire under the PPP concession agreement.

B. Project Objective

The primary objective of the assignment is to ensure that the Concessionaires preliminary plans and programs for the development, construction and maintenance of the project substantially conform to the conceptual specifications and procedures set out in the Concession Agreement, It also include the establishment and monitoring of Operations and Maintenance (O & M) Minimum Performance Specifications Standards (MPSS).

4.3 SCOPE OF INDEPENDENT CONSULTANT The functions and duties of the Independent Consultant are as follows:

a. The Independent Consultant shall owe a duty of care to each of the parties to the Concession agreement and shall act professionally and independently of the aforementioned parties and their respective contractors, suppliers and consultants, and shall exercise the standard of care, ski1l and diligence that is expected from an expert professional service provider.

b. The Independent Consultant shall review and recommend the approval of the Detailed Design submitted by Concessionaire as contemplated in Annex 6 of the Concession Agreement (Minimum Performance Specifications and Standards for Works and Works Related Procedures).c. The Independent Consultant shall review any proposed change in the Detailed Design, in accordance with Annex 6 of the Concession Agreement (Minimum Performance Specifications and Standards for Works and Works Related Procedures.)

d. The Independent Consultant shall review any proposed change in the MPSS in accordance with Annex 6 of the Concession Agreement (Minimum Performance Specifications and Standards for Works and Works Related Procedures).

e. The Independent Consultant shall monitor the Concessionaires plans and programs for the development, construction and maintenance of the project for implementation, to ensure conformity with the approved final drawings and/or architectural and engineering plans, specifications and procedures.

f. The Independent Consultant shall monitor the progress of the Works as provided in Annex 6 of the Concession Agreement (Minimum performance Specifications and Standards for Works and Works Related procedures).

g. The Independent Consultant shall be required to be present while the Commissioning and Acceptance Tests are being carried out by Concessionaire. Further, the Independent Consultant would be responsible to determine and notify the parties to the Concession Agreement through a Commissioning and Acceptance Notice whether it believes that the Commissioning and Acceptance Tests:

Have been carried out in accordance with the Commissioning and Acceptance Plan;

Are sufficient in scope and detail to meet its intended purposes;

Indicate that the Tested Works substantially meet the requirements of the Commissioning and Acceptance Standards; or

Indicate that the Tested Works substantially meet the requirements of the Commissioning and Acceptance Standards; and/or

Indicate that the Tested Works fail to meet the requirements of the Commissioning and Acceptance Standards

h. The Independent Consultant shall recommend the issuance of the Acceptance Certificate; Provisional Acceptance Certificate for T1 Renovation; T2 Apron Construction Completion, T2 Construction. Completion and Capacity Augmentation Completion based on the results of the Commissioning and Acceptance Tests. The Independent Consultant shall issue an Independent Consultant Failure Report when it believes that Commissioning and Acceptance Test has not been carried out in accordance with the Commissioning and Acceptance Plan; or the Tested Works do not comply with the Commissioning and Acceptance Standards.

i. The Independent Consultant shall be responsible to prepare a Punchlist. Further, the Independent Consultant shall be responsible to review the Punchlist Rectification Program prepared by the Concessionaire.

j. In case of dispute between the Concessionaire and the Grantors for determining a Time Extension in case of a Grantor Delay Event or MAGA Delay event the Independent Consultant would be responsible to determine the Time Extension to be granted to the Concessionaire. Similarly, the Independent Consultant would be responsible to determine the Time Extension to be granted to the Concessionaire in case of a dispute between the Concessionaire and the Grantors in case of a Force Majeure Delay Event.

k. The Independent Consultant shall review the Variation proposal submitted by the Concessionaire.

l. The Independent Consultant shall, after receiving the Variation proposal, review and evaluate the proposal from the Concessionaire and submit to the Grantors its assessment of:

The estimated impact of the Variation on capital costs and/or O&M costs, and the change in revenue on account of implementation of the Variation;

Any estimated impact of the proposed Variation on the timelines for completion of the Works submitted as part of the Works Timetable, as may be applicable; and

Any proposed changes to the Detailed Design.

m. The Independent Consultant shall inspect check or test at any time after the O&M Start Date and/or Construction Start Date and during the Concession Period (a "Service Inspection'):

The extent (including as to quality) of the Construction and Operation and Maintenance; and

Any part or parts of the Passenger Terminals and the Project Assets.

n. From the Construction Start Date to the issuance of the Final Acceptance Certificate, the Independent Consultant shall review the Report on Works submitted by the Concessionaire on a monthly basis as contemplated in Annex 16 of the Concession Agreement (Reports).o. The Independent Consultant shall certify the operational readiness and the successful completion of testing and transfer activities of the Concessionaire as contemplated in Section 21.7 of the Concession Agreement (Final Acceptance Certificate for an Augmented Capacity) in order for the Concessionaire to initiate the Operations and Maintenance of any Augmented Capacity.

p. The Independent Consultant shall be required to review the O&M Manual submitted by the Concessionaire and either:

Certify its conformity with the relevant standards and requirements in the Minimum Performance Standards and Specifications; or

Notify the Concessionaire and the Grantors that the submitted O&M Manual does not conform to the requirements, citing the specific Aspects that require revision.

q. The Independent Consultant shall be required to monitor the performance of the Concessionaire during the Operation and Maintenance of the Concessionaire O&M Facilities including compliance with the MPSS for Operation and Maintenance of the Concessionaire O&M Facilities.

r. In accordance with Annex 5 of the Concession Agreement (Operation and Maintenance of Concessionaire O&M Facilities), the Independent Consultant shall be required to design a questionnaire and survey process as a basis for measuring the Subjective Performance Parameters, in the event that the Concessionaire is not a member of the Airports Council International.

s. In accordance with Annex 11 of the Concession Agreement (Handback Requirements), the Independent Consultant shall undertake a comprehensive survey to determine whether the Project complies with the Handback Requirements and whether the Project Asset Register accurately reflects the Project Assets ("Handback Survey"). The Independent Consultant shall likewise estimate the Hardback Rectification Amount.

4.4 GENERAL APPROACH AND METHODOLOGY

4.4.1 General

This section describes the Consultant's approach for the Conduct of Independent Consultancy Services for Mactan-Cebu International Airport

4.4.2 Operational Approach

A. Compliance to the Terms and Conditions of the Contract

The Consultant's activities will be guided by the stated project requirements, and terms and conditions of the Contract for the services. There's no other way or basis by which to gauge the performance of the Consultant except through its compliance with the provisions of the Contract or Agreement.

The Consultant's principals will see to it that all the members of the project design team will be fully aware of all the terms and conditions of the Contract specifically in complying with the scheduled submission of the necessary reports and documents. This system has become the Consultant's standard operating procedure in all of its projects.

B. Application of Quality Control Procedures in all Aspects of the Consultant's Work

The Consultant has developed and established quality control procedures from project management and planning. These procedures will be extensively applied throughout the duration of the services.

C. Close Coordination with the Department of Transportation and Communications (DOTC) and the Mactan-Cebu International Airport Authority (MCIAA)In carrying out the Services, the Consultant will closely coordinate with the DOTC and MCIAA representatives to ensure that every work aspect of the Consultant strictly adheres to their goals.

For this purpose, the Consultant recommends to arrange regular meetings with DOTC and MCIAA to update them of the Consultant's work status. In this manner, any problem or issues encountered during project execution will be promptly discussed and resolved.

4.4.3 Technical Approach

A. Understanding of the Work Requirements

The services will cover the review of Design, Construction and Operation and Maintenance.

The key staff that will be employed in the project consist of: Team Leader

Civil / Structural Engineer Building

Civil / Structural Engineer Pavement

Architect

Airport Operations Experts

Safety Expert

Quantity Surveyor / Cost Engineer

Electrical Engineer

Mechanical Engineer

IT / MIS Expert

Transport Planner

Contract Document Specialist

Quality Control Engineer

Surveys

Sanitary Engineer

4.5 WORK PLAN & METHODOLOGY

4.5.1 WORK PLANA. GENERALThis section presents the Consultant's Methodology for carrying out the required services for the Independent Consultancy for Mactan-Cebu International AirportThe activities are organized in the following tasks:

1. Design Review Phasea. Review of Detailed Designb. Review of Minimum Performance Specifications and Standards (MPSS)2. Construction Monitoring Phase a. Review any Proposed Changes in Design and MPPSb. Monitor the Concessionaire Plans and Programs / Progress of Worksc. Prepare Punch List and Review the Punch list Rectification Programd. Review and Evaluate the Variation Ordere. Monitor the Commissioning and Acceptance Testf. Recommend Issuance of Acceptance Certificate3. Operation and Maintenance Monitoring Phasea. Review of Operation and Maintenance Manual b. Monitor the Performance of the Concessionaire during Operation and Maintenancec. Design Questionnaires and Survey process

d. Conduct Survey to Determine Compliance with Handback Requirements e. Estimate the Handback Rectification AmountB. DESIGN REVIEW PHASE The designs of the Mactan-Cebu International Airport Project have to be compliant with all applicable codes and standards, local and international. When a conflict between referral codes have been discovered, it will be prudent that the design must conform to the most stringent requirements.

Code Compliance of the Detailed Architectural & Engineering Design ReviewUpon receipt of the Consultant on the Notice to Proceed on the Contract, the following tasks shall be performed;a. Project Scoping This task shall confirm specific project requirements. The scoping conference that the Consultant will request has to be attended by the DOTC, Bids and Awards Committee and the Technical Working Group. During the conference specific requirements on the Terms of Reference (TOR) have to be clarified and any ambiguities which were not addressed during the Procurement stage have to be made cleared to the Independent Consultant (IC). This will also be the opportune time for the DOTC to designate the Project In-charge / point man to whom the IC will be coordinating its activity to successfully deliver the contracted obligations.

b. Document data gathering Basis of Design or Design Criteria, Field Investigation Reports but not limited to Geotechnical Studies, Geodetic Surveys and As-Built drawings of Terminal 1 (existing terminal building and utilities), have to be secured by the Consultant from the Authority.c. Establish criteria for design review, international, national / local codes and standards.

The set criteria will be the guide of the Consultant in establishing the performance standard that has to be adopted on its review, preparation of the initial structural analysis which results shall be compared with applicable codes.

To mention some of the applicable codes and standards that the Consultant intends to adopt are the following:

Architectural Building Codes, for the purpose of this Service, include two primary types of documents:

A Building Code is established by a Governmental Authority having Jurisdiction (AHJ). It is a collection of laws that prescribe specific mandatory requirements for the design and construction of buildings and other defined structures that cover public use, health, safety and general welfare issues. The purpose of building code provisions is to provide a minimum level of protection, safety or other performance needs for the buildings occupants and the public. In addition, land-use and zoning codes are typically adopted by jurisdictions to manage density and to help to ensure compatibility of uses.

A Model Building Code is a document or set of documents produced by an organization through a public process to serve as a comprehensive set of model documents (e.g. model building code, model fire code, model plumbing code, model energy code, etc.) that are available for voluntary adoption by a governmental authority having jurisdiction, such as a municipality, provinces or cities. Upon such an adoption, the Model Building Code becomes the adopting governmental authoritys Building Code.

In recent years, the desire to employ performance codes to allow greater design flexibility and to afford greater latitude in meeting the intent of the code has increased. In those countries where a performance based code has been adopted or is under consideration, there is an absolute need to concurrently develop agreed upon performance measures to effectively use this type of building code.

Building Codes and Standards

In most countries, the desirability and advantage of having uniform national building codes, varies in geography, geology, and climate necessitate that the code provisions address the attendant performance needs to be associated with hazards stemming from these differences. By dealing with these variations at the national level, it has shown that a nationally applicable code is better able to serve the full range of the entire nations needs. The focus and effort of affected and knowledgeable interests attendant to the development of a nationally applicable model building code helps to ensure consistency and fairness in determining, addressing and meeting the diverse and common needs of all the nations jurisdictions and more efficiently utilizes the countrys technical expertise to most effectively serve the entire nation.

In most countries, the most concentrated governmental leadership is provided at the federal or national level. Under national forms of government, regional and local levels of government often have the responsibility to regulate construction in order to provide for the public health, safety and general welfare. As a result, it is the AHJs that adopt a Building Code, which is often based on a model code. In many countries, the development and maintenance of Model Building Codes have evolved as a cooperative public-private sector initiative that serves the needs of government, design professionals and all industry sectors. The planning of the new terminal building, T2 for MCIAA shall considered and aimed to provide passengers means of entering and leaving privately owned cars and public transport vehicles to be parked at convenient parking buildings / spaces, a terminal building in which aircraft operators can undertake passengers pre-boarding processing, where government control authorities can undertake inspection and in which all facilities for passengers comfort and assistance can be will accessed and provided. The size of the passenger terminal building and various components within the building will evolve from land-use and passenger requirements activity forecast and site evaluation. In all aspects of planning passenger terminal building will be contiguous with one general location on the airport complex, considering optimum cost, while recognizing need for expandability and flexibility for future expansion. Heating, Ventilation & Air-Conditioning and Fire Protection Code Philippine Mechanical Engineering Code (PMEC 2011)

This Code establish the minimum requirements of protection to public safety through mechanical engineering and public health thru sanitation, indoor air quality thru adequate air conditioning and ventilation, carbon dioxide mitigation thru energy conservation, to preserve life and property from damage and other hazards attributed to fire and smoke, and provide safety to fire fighters emergency responders during emergency operation. It also regulates and control the design, construction, and installation, quality of materials, operation and maintenance of equipment within the jurisdiction of R.A. 8495, known as the Mechanical Engineering Law.

Fire Alarm Standard and Signaling Code (NFPA 72 2013 Edition)This Code provides the latest safety provisions to meet societys changing fire detection, signaling, and emergency communications demand. It also includes requirements for mass notification systems used for weather emergency, terrorist events, biological, chemical and nuclear emergencies.

Fire Sprinkler Standard (NFPA 13 -2013 Edition)This standard provides the minimum requirements for the design and installation of automatic fire Sprinkler systems and exposure protection sprinkler systems, including the character and adequacy of water supplies and selection of sprinkler fittings, piping, valves and all materials and accessories.

Fire Pump Standard (NFPA 20 2013 Edition)This standard provides for the selection requirements and installation of pumps to ensure that systems will work as intended to deliver adequate and reliable water supplies in a fire emergency in order to protect life and property.

Fire Standpipe and Hose Standard (NFPA 14 2013 Edition)This standard provides the design guide on lay-out and installation of standpipe system. Standpipe systems are required in buildings in order to save the fire department time and effort. Rather than have the fire fighters run their hoses from fire hydrants out near the street, they can connect their hoses inside the building.

Smoke Control Standard (NFPA 92 2012 Edition)This standard gives fire protection professionals and public safety officials a convenient source for requirements on all types of systems used to address the impact of smoke from fire. It also provides mandatory provisions for design, installation, and testing of both new and retrofitted smoke control systems in buildings.Sanitary / Plumbing Design Codes

The design review and code compliance for Sanitary / Plumbing shall comply with the latest requirements of the national / local standards as well as American, Japanese and other acceptable international codes and standards. In cases of discrepancies on requirements or regulations between American, Japanese and local standards the most stringent requirement shall govern unless directed by the authority.

National Plumbing Code of the Philippines (NPCP)

National Building Code of the Philippines (NBCP)

Uniform Plumbing Code (UPC)

American Water Works Association (AWWA)

Occupational Safety and Health Administration (OSHA)

American Society for Testing and Materials (ASTM)

American National Standards Institute (ANSI)

Factory Manual (FM)

Underwriter Laboratories, Inc (UL)

Metropolitan Water Works Services (MWWS)

The design review for plumbing / sanitary shall established criteria based on the following basis of design (BOD);

Peak factor for water distribution main shall meet the minimum requirement as follows;

Average day demand F=1.00

Maximum day demand

F=1.50

Peak Hour demand

F=2.00

Maximum velocity shall be set at 3.00 mps. There is no limit for the minimum velocity.

The maximum friction head loss is 10 meters for every 1000 meters length of pipeline.

Hazen-Williams Coefficient HWC value of 140 for Polyvinyl chloride pipes and 120 for steel pipes.

Cold water supply system

Cold water piping system inside the building shall comply the minimum requirement per code on fixture unit method.Cold water pressure shall be supplied with working pressure of 1.4 bars (40 psi),

Cold water piping sizing HWC = 140 (PP schedule 40)

Cold water velocity for piping = 1 to 3 mps (1 to 10 fps).

Electrical and Auxiliary Design Codes

The design and specification of all work shall be in accordance with all applicable laws and regulations of the national and American standards and applicable local codes and ordinances. A listing of the codes and industry standards to be used in design and construction follows:

American National Standards Institute (ANSI)

American Society for Testing and Materials (ASTM)

Insulated Cable Engineers Association (ICEA)

Institute of Electrical and Electronics Engineers (IEEE)

National Illuminating Engineering Society (NAIES)

National Electrical Code (NEC)

National Electrical Manufacturers Association (NEMA)

National Electrical Safety Code (NESC)

National Fire Protection Association (NFPA)

Occupational Safety and Health Act (OSHA)

Underwriters Laboratories (UL)

Instrument Society of America (ISA)

International Electro Technical Commission (IETC)

The Consultant will review and validated the Concessionaires design for the electrical and auxiliary systems for the MCIAA T-1 & T-2 facilities based on the herewith enumerated parameters and design approach;

Electrical Power Service:

a) Existing Distribution power supply as supplied from the Electric Utility Co. to the private pole at a rating, 13.2 kv, 3ph or 7620V, 1Ph overhead primary line,

b) As necessary and all electrical essential loads shall be provided with 100% emergency power back-up, especially during power failure.

Interior Electrical Lighting Systems

a) Interior Lighting shall be provided with energy saving and energy efficient fluorescent lighting fixtures except for areas suitable for cost efficient Compact Fluorescent Lamp (CFL),

b) All exterior lighting shall use Flood Lighting Fixture for security illumination requirements, but still preference on cost efficient CFL,

c) Fluorescent Fixtures, shall be provided with energy-saving high-power factor fluorescent ballast.

d) Emergency Lighting unit shall activate when all input falls to 75% of nominal voltage. Dual head type.

e) The Lighting Levels shall be as follows:

Lobby, Office (general area) 500 Lux

Manager / Section Chiefs Office 500 Lux

Technician Rooms 500 Lux

Meeting Rooms

300 Lux

Conference Rooms 300 Lux

Locker

Lighting (300 Lux)

Pantry

300 Lux

Toilet

150 Lux

Lighting Calculations shall be made using the zonal cavity method and employing a maintenance factor (MF) of Air-conditioned areas and in no-air conditioned areas and 0.5 for outdoor areas, as described by Illumination Engineering Society (IES) Lighting Handbook.

Ground fault interruption (GFI) has to be provided at vanities and between lavatories for outlet adjacent to lavatory, elevator machine rooms and central plant spaces.

For emergency power requirement the following components shall be validated for emergency power to maintain the basic operational capabilities during power shortages/ outage if incorporated into the basic design requirements; Operational lighting for all public spaces,

Restrooms lighting and power devices, Soffits lighting above exterior stairs,

Lighting for interior stairs,

Signage lighting,

Apron lighting,

Truck court lighting,

Gate operators, Elevators (only a percentage of the unit, which is operable to any selected unit),

Passenger loading bridges (provide capacity for only a percentage of the unit, which is operable to any selected unit)

Sewage lift stations,

Jockey pump

Security equipment,

Automatic doors

Turnstiles,

Blast fence lights

Generator fuel pump and battery charger,

Cooler and freezers (for tenants facilities),

UPS systems for various computer controlled systems,

Check-in counters and gate podiums,

Telephone kiosks,

Sound and fire control room receptacles,

Systems equipment access control and CCTV,

Monitors and information boardsPoint by point photometric analysis of apron lighting prior to finalizing the design has to be validated and reviewed. Supplemental task-oriented lighting at ticket check-in counters and podiums shall carefully consider the impact of glare on computer screens.

High pressure sodium lighting for apron shall not be provided with any dimming capability, it should either be fully on or completely off and with light sources aimed at the cargo loading side of the aircraft (pilots right side).Conveying Systems (Elevators / Escalators / Walkalators)

Conveying system design for airport has become somewhat complex problem. If an elevator near the airside building have to be provided this shall be equipped with special access control component to prevent unauthorized access to secure level of the building by the general public. Proximity cards that have to be interface with the airports access control computer or a digital keypad is frequently used for the system. Directional signage elements have to be appropriately provided.

C. CONSTRUCTION MONITORING PHASE 1. Availability of IC-Monitoring Team

The Consultant assures that all architect, engineers and specialized nominated for assignment to this stage of the Services will be available for immediate mobilization since their participation is of the utmost importance. This is a pertinent point as the IC will be practically so busy during the mobilization stage.2. Logistic Support from the Consultants Head Office

Because the normal mobilization activities such as renting staff house, establishing field office, hiring support staff, purchasing office equipment, renting vehicles, setting up communications, and obtaining accommodation, are time consuming, the Consultants office in Manila will undertake these tasks thus allowing the key engineers to focus on the Project work right from the very beginning.

3. Assignment Schedule

The schedule of deployment will be in accordance with the work progress and assignment schedules and in consonance with the progress of activities of the Concessionaire. Mobilization of these personnel will be implemented to jibe with the mobilization of the Concessionaires, contractors/builders and sub-contractors for each major work activities.

4. Familiarization of Newly Deployed Staff

Immediately upon mobilization, the ICs Team Leader / Project Manager will ensure that each newly assigned engineer becomes fully familiar with the plans, technical specifications, Concessionaires construction contract and all other technical documents that will be handed over by the Procuring Entity. Moreover, when the Project Manger has received the design data for the part of the Project, which he is responsible for, he and his staff will spend as much time as needed in the field to familiarize with the existing project site conditions.

5. Establishing Relationship with Key Persons

Even though the ICs monitoring team will be busy performing their initial activities, they will also be making the effort to establish favorable relationship with key persons who are associated with the Project.

During this time, the IC Team will be discussing plans with the involved persons in particular the Concessionaires Design Architect-Engineer, about how the Project will be implemented, how to get the best possible start once the contractors begins to mobilize and other pertinent matters. There is no question that this will do much to get the Project started in a smooth and timely manner.

6. Guidance to the Contractor During His Mobilization Period

The IC has observed that contractors sometimes have difficulty in accomplishing all the tasks that are required during the mobilization period. The end result is that often times the contractor cannot smoothly commence the construction phase, and thus immediately starts falling behind the Approved Contract Schedule. This causes considerable trouble, including low morale on the contractors part, thus creating problems for both the IC and the Owner or Procuring Entity.

Therefore, during the contractors mobilization period, the IC will continuously provide as much assistance as possible to the Concessionaire contractors key staff. The provision of such guidance during mobilization period will help to start full-time on schedule.

7. Pre-Construction Meeting

Prior to the actual site mobilization, the IC together with Owner representative, Concessionaires Architect-Engineers, Contractor and Sub-contractors will hold a well-planned pre-construction meeting. The objective will be to assure that each member of the project team fully understand the important items on organization, the standard operating procedures that will be used for the Project, requirements concerning quality control activities, progress schedules, preparation / processing of the progress payment certificates, proper construction methods to be followed, etc.

A well-planned pre-construction meeting will help to start the work in a positive manner and encourage a team effort. The IC will make a record of the meeting (including questions and answers given) and distribute the minutes of discussions to all persons who attended on a timely manner.8. Preparation of Standard Forms

In time with the Pre-Construction Conference, the IC will prepare standard formats and set of Site Rules and Regulations to be used and to be strictly followed by the Concessionaires Contractor and Sub-contractors during the construction. These forms and Site Rules and Regulation will be explained to the contractor.

9. Construction Monitoring on Concessionaires Plans and Programs for Development and Construction Progress

Prior to commencement of actual construction work, the IC shall review and evaluate the contractors actual site work plan more in particular the APRON Grading, T2 Building Foundation Excavation and corresponding disposal offsite of excavated materials, Procurement of Long-lead Materials & Equipment and Quality Control / Assurance Plan that should show the proposed methods and procedures for the execution of the work. This work schedule should present details of the Contractors mobilization and construction activities taking into account traffic, safety measures, construction methods, quality control, method for procurement, storage of materials, utilization of construction equipment, work organization, subcontractors (if applicable) and others.

The IC evaluation on the work program / schedule will place special attention on the adequacy of the following:

Construction methods for Stakeout and Layout

Construction methods for the provision of Foundation and Bulk Excavation and its Disposal

Construction methods on the Concreting Works

Contractors coordination timetable for the Utility Companies Power and Communication and Water

Construction methods in regard to obtaining quality work that conform to the technical specification and Conditions of Contract.

Detailed construction schedule by GANNT CHART with S-Curve Method and a Works Sequential Schedule by the Critical Path Method (CPM), with due consideration of the interrelationship of all work activities.

Measures for safety control, particularly from the viewpoint of securing the existing adjacent buildings concern, the convenience of the pedestrians traffic and quality control and assurances techniques.

Mobilization and adequacy of equipment and personnel.

Using the results of the evaluation, the IC will, if necessary, have the Contractor modify his work plan and will assist him in doing so. When the work plan has been revised to the satisfaction of the IC, it will be submitted for approval to the Owner but will remain under periodic review so further revisions and updates can be made when required. The Concessionaires Work Program / Schedule, have to be prepared broken down into different works components and shall be with corresponding percentages as planned progresses for accuracy on its monitoring.10. Assessment of Adequacy of Concessionaires Inputs and Inspection of Works Installation and Equipment The IC will assess the adequacy of all logistical inputs such as equipment, materials and labors provided by the contractor and his methods of work in relation to the required rate of progress and when required, take appropriate action in order to expedite progress.

The IC will keep and regularly update a list of the contractors equipment and its condition to ensure compliance with the list of equipment, which the contractor provided in his bid / tender.

The assessment of contractors inputs shall be done regularly (weekly) and summarizes at the end of each month and at the beginning of each month be reassess to ensure that the progress of works is within planned. Assessment may also be done more often, if necessary.

Inspect and evaluate all of the contractors installations, safety, housing keeping, shops and warehouse to ensure compliance with the terms and conditions of the contract documents, Contractors installations should be done on a schedule, which will not hamper other activities of the contractor.Will inspect in detail the contractors survey stakeout and layout, foundation and bulk excavation, compaction, lean cement concrete base, rebars fabrication and installations, concrete works, pre-casting, buildings structural, finishes, plumbing / sanitary, fire protection, air-conditioning and ventilation, elevator, electrical and auxiliary equipment and more particularly the curtain walling and the built-in place furniture and furnishings to the works to confirm that it meets normally accepted standards and previously approved submittals. The equipment will be inspected to ensure that it will be serviceable at times when out of order, and is compatible with the nature and extent of the work to be undertaken. Moreover, the contractors construction equipment on site will be checked against the minimum requirement as stated in the Bid / Tender Document.

If any imported equipment is required, the Department / Owner, IC and Concessionaires representatives shall inspect this equipment at the point of origin prior to shipment in order to undergo performance evaluation. This shall be arranged in collaboration with the Owner.

During construction, the contractor will be required to have the construction equipment needed to accomplish the work on the various pay items per approved schedule. Moreover, he will be required to perform preventive maintenance work on the construction equipment by having enough trained mechanics assigned to do this. Every week the contractor will have to submit a standard report which lists the status on each item of construction equipment and for any item that is dead-lines, the action that has being taken to get it repaired and the expected date it will be ready for use.

Even though the IC will not be directly involved with the maintenance of the contractors equipment, he will be able to provide valuable assistance as to the most effective way in which it should be utilized. During the weekly meetings and planning sessions, one item of discussion will pertain to equipment, if the contractor is not getting the maximum use of certain items, then it will be decided how this can be rectified.

11. Development of Quality Control / Assurance PlansA systematic approach to the quality control function required for the project is the development of an inspection plan an outline of all inspection that must be made, a check list of points to look for, and a list of the types and frequencies of all test that are required.

A quality control / assurance plan may include but not limited to:

i.) Establishment of detailed inspection procedures;

ii.) Outline of acceptance and rejection procedures;

iii.) Preparation of a testing plan a chart showing all tests required, when they are needed, the frequency of sampling and testing, the materials and equipment being tested, and who is obligated to perform the tests;

iv.) Establishment of the ground rules for acceptable timing of work operations after sampling and testing; mandatory scheduling must be provided to assure not only time to make samples and tests but also to make corrections needed before work may be allowed to continue.

The acceptance of the test results performed at this stage of the works does not relieve the contractor of its duties and responsibility in the safeguard of these materials and equipment to construction vandalisms and pilferages in accordance to the contract requirement.

Scheduled Regular Weekly Construction ConferencesA regular weekly construction conference will be a formal meeting to be organized and conducted by the IC, in coordination with the Owners PMO and will arrange for the secured location for the conference, invite all participants, formulate the agenda, conduct the meeting, and after the meeting, prepare and distribute official minutes of the conference. The basic objectives of the construction conferences is to review in detail, the project scheduling of the contractor versus actual progress to clarify contractual matters and to resolves issues that are not acted upon by the Project Team. The key document for discussion is the contractors proposed work program, including activity network diagram, manpower, equipment and financial resources schedules.

Development and Monitoring of Construction SafetyAs soon as the contractor has fully mobilized, the IC will hold a meeting with him to discuss the safety measures needed during construction. The contractor will then be required to finalize a Contract Safety Plan within 7 days, which will include but not limited to the following:

Appointment of a Safety Engineer accredited with OSHA by the Contractors staffs that will have the duty to serve as the Contract Safety Officer. Also to appoint the necessary number of Safety Representatives, all of which are to be familiar with the contents of the Contract Safety Plan.

Requirement for large sign boards to be set up where needed to caution workers and contractors equipment operator and the public in general.

Erection of barricades and flashing lights at night next to excavation sites and newly paced areas to protect drivers and people commuters and residents nearby. Establishment of procedures to be followed in the case of a serious accident or emergency. Stockpiling materials and parking equipment away from any public roadway. Use of construction safety barricades with extended overhang roof, safety nets as the building rises up. Employ a full-time Project Nurse and part-time Project Physician. Provide a Site Clinic complete with first-aid medicine. Provide Services of a Hospital for immediate confinement of serious illnesses and accidents.In the course of construction activities, the IC will monitor the contractors safety practices and will report those that are considered unsafe or which may endanger the safety of the workmen, supervisory staff, the public; or which may have the effect of reducing the minimum safety level required for the work.

The IC will regularly hold safety control meetings, which are to be attended by the Owners PMO Staff if they so desire, contractors Project Manager, Construction Manager & Staffs and Contractors Safety Officer / Safety Representatives and other Key persons. The purpose of the meeting will be to determine the effectiveness of the existing Contract Safety Plan and to take steps for any further enhancement measures, which may be required.

If accident occurs, the applicable government laws / regulations will be followed by the Contract Safety Engineer who will submit a report to the IC giving details relating to the accident and recommending how it can be prevented in the future. Any accident that require medical treatment or hospitalization for the victim would be reported to the IC Project Manager. Comments on safety, including a listing of all reportable accidents, will become a part of the monthly reports.

Quality Control and Assurance Plan (QC / QA) Monitoring General

The IC will require the Contractor to prepare and submit for its approval a QC/QA Plan and monitor the plans execution on a continual basis, emphasize to each contractor that quality control is the most important goal of the field construction and that all concerned staff must work as a team to achieve this objective.Discipline Engineer of the IC will spend whatever time is necessary to review the QC/QA Plan to establish a carefully throughout execution of the quality control program. Once established, this information will be issued to the involved parties, with the meetings being held so that all concerned persons become familiar with the contents.

If some of the trade sub-contractors are not knowledgeable about the importance of quality control (especially the field personnel), the ICstaff will provide guidance to those contractors staff that needs it. This should provide good results as it has been the IC experience that most of the contractors personnel will try not to take care about quality control matters, thus its importance shall be clearly defined with the contractors staff. The IC will ensure that each assigned staff / inspector fully knows how to do this job.

The Contractor through the guidance of the IC will prepare field pocket booklets to cover the main aspects of each critical work item. These booklets (complete with easy to follow sketches and diagrams) will be issued to the contractors engineers, trade sub-contractors engineers and the contractors foremen so they can readily refer to them during field operations.

Materials, Equipment and Field Testing

In accordance with the Terms of Reference, the IC will perform all routine materials control, installed utility lines testing and monitor the test and commissioning of systems equipment. The quality of the materials and equipment incorporated in the construction work will be controlled by field and laboratory testing in conformity with the specifications.

Before construction work begins, a set of procedures specifying what tests are to be made and their frequency will be prepared. Copies of the procedures will be given to the contractor for its planning and coordination with the IC when frequencies of those test are approaching..

Tests will be conducted on a daily or periodic basis, as required. These tests will include but not be limited to the following: Subgrade for mechanical analysis test, Atterberg limit test, maximum density test, shrinkage test, CBR, Soils (liquid and plastic limits, density, compaction, etc.), Aggregate base material (compaction requirement maximum that can be obtained, generally in excess of 100% of modified ASTM, AASHO, and never be less than 100%, gradation, soundness, unit weight, abrasion, etc.): Portland cement concrete pavement and Flexible Asphalt Pavement (mix designs, slump, compressive test, flexural test, optimum moisture determination, shrinkage temperature, etc.): Cast-in-place structural concrete (slump test, compressive test @ 7-day old concrete and 28-day old concrete) Re-enforcing steel bars (physical properties); CHB (Compressive Test); Structural Steel and framings (ultrasonic weld test, physical properties test of the material, dye penetrant test), Waterproofing system (leak test), Utility lines, water distribution, sewer lines, storm drainage line (hydrostatic test and leak test, slope reading test), Mechanical equipment as; pumps, lifts, valves (performance test); Electrical systems (megger test), Air-conditioning ducts, refrigerant pipes (smoke test, pressure test) and other test required in the specification and the Contract conditions.

Manufacturers certificates for such materials as Portland cement, Concrete additive, prestressed cables, reinforcing steel, pipes, conduits, wires, aircon equipment, pipes, pumps, valves, fixtures, electrical conduits, wires, electrical protective devices, wiring devices, communications equipment, sprinkler heads, elevator, etc. will be required, with their accuracy being confirmed.

Standard IC forms will be provided for the proper monitoring of this required test and Manufacturers Certificates submittals.

The IC will confirm that the delivered materials are acceptable in accordance to Contract requirement and will continuously make tests to ensure they meet the specifications.

Materials testing will be performed through an independent testing entity acceptable to the IC and in close coordination with the construction works progress so as to avoid any possible delay to the contractors work. Test results will be conveyed immediately to the contractor (and other concerned persons) with comments, required corrective measures to be taken, after which the IC will determine that such correction have been made.

Testing of all construction materials as specified in the contract documents shall be conducted to ensure sufficient quality control to meet the standards established therein. In this respect, test result will be reported immediately and the information forwarded to the contractor with comments on corrective measures required, if any.

Inspection and Monitoring

One of the IC Teams main responsibilities will be that of the inspection and monitoring program. In essence, the IC shall be responsible for the inspection of all works to ensure full compliance with the Specifications, Contract Conditions and as indicated on the drawings as to workmanship and materials. A Check List for each activity will be prepared for effective and efficient inspection and monitoring.The IC will implement this program to ensure that all of the contractors operations are monitored and that the construction work is inspected by qualified personnel.

These inspections will be the basis to ensure that the quality of the work is in compliance with the specifications. If any work is found to be not in compliance with the specifications, the contractor will be officially informed in writing to make the necessary correction, remedies or adjustments.

It should be pointed out that the Engineer will make every effort to help the contractor from making mistakes, thereby eliminating as much as possible the need for costly and time consuming re-work, not to mention waste.

For example, before the contractor is allowed to proceed with work on a particular item such as concrete pour, the IC will check it in advance to be certain that everything is ready, at which time the contractor will be given a written authorization to proceed with the pour.

The IC will prepare a set of inspections procedures to be followed for each field activity to include the use of reports, issuing of written instructions to the contractor, authorization for the contractor to perform work by means of approved work requests, inspections, requests, etc. samples of these forms will be provided by IC on the appropriate time.

The IC will carry out regular inspections and recording of the accepted construction materials and built-in equipment stored at the construction site. The CM team with representatives from the contractor will jointly undertake quantity measurement of materials and estimate the cost thereof in order to submit to Owner.The IC will inspect stored materials to ensure that they are properly stored and free from damage / exposure to the elements, from mixture with foreign material, or from any other possible causes of deterioration. Stored materials, even though inspected and accepted prior to storage may again be inspected and tested prior to their use in the works. Instructions will be issued to the contractor to immediately remedy any critical shortage of material in the light of the work schedule or conditions of improper storage.

All of our IC Staff will be required to prepare daily reports, an exhibit form which is shown in Figure 1.1 herewith for submission to the IC Project Manager which described the operations performed, problems encountered (if any), corrective action ordered, corrective action taken, work location, weather conditions, number of personnel (with their job description) working at the site, type and number of equipment conditions being used at the site, the approximate quantity of work performed any unusual conditions which has a bearing on the work.

These will summarize their analysis of the daily inspection reports for submittal to the Owner together with the Monthly Progress Report as appendices. Thus, any problem and / or deficiencies in the contractors work will be identified with the appropriate action on the part of the IC being made.

Review of Contractors Shop Drawings

The contractor will be required to prepared shop and erection drawings to show details that are not on the contract drawings. This will be particularly applicable to any type of huge areas concreting works, rebars cutting list, rebars installation, formworks erection plans, structural steel works, plumbing roughig-ins, pipe runs for sprinklers systems, pipe pemetrations thru structural members, rture, falseworkwork, forms,s for sprinklers systems, pipe pemetrations thru structural memberseel worksts duties and respon equipment supports, architectural metal windows, doors, curtain wall, steel grills, piping layout for aircons refrigerant piping, air ducts, drains, fire sprinklers, plumbing / sanitary, electrical conduit runs, mounting details for protective devices, power transformers, generator, power sub-station, etc.This will establish a procedure concerning the standards that will be used in preparing the drawings, how they are to be submitted, the method of checking, how approval and disapproval be issued, how drawings are to be handled, distributed, filed etc.

Each drawing will have a log number. A register will be maintained to record information such as the date received, date checked, action required, date returned to contractor for correcting, date of approval and special comments. The IC will make sure that the contractors fieldwork is not held up due to unwarranted delays in checking the drawings. Acceptance or Rejection of Completed WorkUpon completion of any part of the work, the IC will expeditiously inspect it for provisional acceptance. Work that has been satisfactorily completed in accordance with the contract documents will be accepted for payment.

Unacceptable work, which does not conform to the requirements of the Contract due to poor workmanship, use of defective materials, damage through carelessness or any other similar reasons, will be rejected with the contractor being notified in writing about the reasons for rejection. The contractor will then be required to re-do the rejected work and bring it up to the required level, after which it will be re-inspected.

Warrants of Materials and Equipment

The IC will assure the receipt of, and shall maintain as permanent records, all warrants required under the terms of the contract documents for materials and equipment accepted and incorporated in the project. All local materials incorporated in the project and their source will also be checked and approved.

Quality Control of Specific Construction Activities

While the overall approach quality control outlined in the preceding subsections will be applied to all classes of work, it is obvious that there will be variations to suit individual activities.

A quality control checklist for these main construction activities is prepared to indicate the ICs awareness of their peculiarities. Quality control flow charts will be presented to the Concessionaire prior to work activities performance.

Progress Control General

In view of the necessity for advanced technology that is required for Modern Facility Buildings / Structures construction and the variety of work involved, it is vital to employ a systematic control system to enable the monitoring of inter-related progress of various work activities and to take necessary measures to maintain the scheduled progress. For this purpose, it is proposed to control the progress operations and this will be done by means of computerized programs control system.

The computerized system that is to be used will monitor progress, update work schedule and forecast costs and time for completion. It will also assess the basic resources required for accomplishment, production rates of each type of plant, amount of equipment assigned, quality tests, technical problems encountered, and others. These data will be retained in the computer files for future modifications in which the Consultant of the Client may deem necessary. Continuous Monitoring and Updating of Contractors Schedule

Because of the IC extensive experience in construction monitoring and supervision on similar and/or related projects, it is aware that the contractors schedule will probably need updating regularly. Also, continual review is effective in detecting any weakness of the contractors organization and in the assignment of equipment and plant. Thus, the IC will regularly review and evaluate the contractors schedule for completeness in line with the logic of the sequence of operations.

The has to be realized that the importance of having an up-to-date schedule at all times so that potential delays may be recognized well in advance and remedial action taken. This is in one of the reasons why the IC proposes to utilize a project scheduling system utilizing a microcomputer scheduling software such as the MS Project.The advantages of a computer-based method are that schedule can be updated rapidly to show progress or modifications to the planned construction program. The presentation of the schedule will be in a bar-chart form for ease of understanding by non-technical persons, but critical activities, slack time and other CPM criteria will also be determined. An added advantage of this type of system is its ability to carry out a what-if simulation such as what the effects on the schedule will be due to the early / late start of specific tasks.

In developing the work schedule for a contract, the IC will work closely with the contractor in arriving at a realistic task start, duration and completion time for each of the CPM tasks bearing in mind local conditions, equipment availability, and weather conditions, particularly the effect of heavy rain on certain activities.

Periodic Meetings

Weekly Meetings

The maintenance of good progress is closely related to the scheduling aspects of the Project. One method of accomplishing this will be to concentrate on scheduling of a coordination meeting that is to be held each week (preferably on a Friday or Monday morning) between the IC, CLIENT, Architect and the contractor and its subcontractors for specialized trades.

During this meeting, to be attended by key personnel of both organizations, ideas can be formulated and plans be made pertaining to scheduling of work on the various pay items from the viewpoint of increasing the progress. Any problem, which has arisen that, may be adversely affect the CPM schedule can be analyzed with steps being taken to get it, resolved.As long as close coordination is maintained between the IC and the contractor, it will be easier to resolve problems and prevent misunderstanding thereby helping to make it possible to achieve maximum progress.

Monthly Meetings

The IC will conduct monthly progress meeting for this construction contract. Such meetings will be conducted at the contract site or at a convenient location and will be presided over by the IC Project Manager with the presence of OWNER Procuring Entity, Architect, Engineers Design Consultant and the Top Management of the Contractor. Among other items, these meeting will discuss; Progress of the work

Problems encountered during construction Delays and recommendations; if any General planning for the forthcoming month Preparation of an outline for the work activities of the coming month with its projected / anticipated Progress Accomplishments, Work plans to recover delays if encountered Payments on Contractors Progress Accomplishments. Other Works Engineer and Contractors concern of the Project. Control Over DelaysWhenever any delay of the work progress is observed, the IC will immediately provide appropriate guidance. If acceptable to the Owner, in accordance with DPWH Order No. 102, Series of 1988, GPPB Contract Conditions the IC shall and assist contractor to take whatever action is needed. Pertinent information about the delays will be given to the contractor for his use, until an acceptable schedule is proposed.

Sometimes delays get out of hand and are so overblown that they become unmanageable. Being familiar of this, from the very outset of the Project, the IC will continuously be looking for potential problems that could cause delays.

Whenever such actual or potential delays are observed, the IC Project Manager will pinpoint exactly what the problems are, how they are to be resolved and assign a person who will be responsible for following through (i.e., an action man) to see to it that the situation improves.

We the IC will prepare and keep an updated List of Actual / Pending delays at the jobsite level which includes the above information and have it submitted to concerned persons. One of these purposes will be to keep the Concessionaire / Contractors Project Manager informed about which delays are starting to occur so that prompt and effective action can be taken to control them before they get out of hand.

Prompt Review and Approval of the Contractors Submittals As commented on earlier, submitted working, shop and erection drawings, materials and equipment to the IC for approval to the appropriate approving party, (IC, Owner PMO) showing full details for all structures to be built and construction plant to be used. The time required for the preparation, checking, revision and approval of these drawings can be considerable, and if not carefully controlled can significantly slow down the progress.

The IC will, in conjunction with the Owner PMO and contractor, set up a schedule for getting the various drawings prepared and approved in a timely manner with priority being given to items affecting the critical path.

For this reason, the IC and Owner will promptly check the drawings and return them to the contractor for any corrections / revisions that may be required, after which the drawings will be resubmitted for final approval. Comments will be clearly marked with approvals given in writing. This procedure will considerably help to prevent delaying progress, especially on the critical path activities.

A submitted tracking list which is our standards for monitoring submittal will be prepared by the IC for him to be well-informed on the routing of all submittal and where it had stock. Speedy Processing of Contractors Payment

In regard to the matter of payment, the contractor should not be forced to wait for an unnecessarily long time to get paid for work he has correctly performed. As such, the WE will ensure that progress payment are prepared and processed in such a manner that the contractor can be paid without encountering long delays. If this is not done, the progress will undoubtedly fall behind schedule and the morale of the contractors personnel will drop. Time Rejection of Substandard Construction Work

Another task the CM will perform aside from ascertaining in keeping the progress on schedule, check on construction activities in enough detail is to ensure that any substandard work is quickly pinpointed and excluded from a progress payment.

In other words, the IC will catch any work being poorly done early enough from the viewpoint that only a relatively small amount of in-place material will ever have to be rejected, rather than letting such a situation build up to the point that it becomes a significant problem. This will do much not only to help prevent delays to the progress schedule, but also to keep misunderstanding from developing.Cost Management General

There are several ways to control the Project costs, one of the best of which is to focus on getting the work done in the most efficient manner possible, superior quqlity and ensuring that the completion time is met without having to allow for a time extension.This means that variation orders be kept to a minimum, particularly those affecting the critical path. Excluding changed conditions that cause a re-design; this can often be accomplished by an IC / Concessionaire team effort approach to keep the work running smoothly.

Other methods, which can be used in controlling costs, include the use of a computerized system for processing of the contractors billings and keeping a check on the balance of the remaining quantities during construction. Use of Computerized System for Processing Cost Data

Since the cost control under construction supervision is laborious and does not allow for any computation errors in the document that have to be prepared, the IC previously mentioned computerized system will be utilized in order to update the costs rapidly and accurately as the work proceeds. It should be noted that this computerized system could be operated in the field offices without the need for sophisticated support facilities

The overall financial management of the Project will be handled by the computerized system and will provide the following services: Reviewing the contractors monthly quantity reports for work executed and comparing this to the bill of quantities.

Keeping a record of statements of work done and materials on-site and materials used. Preparing interim payment certificates to be forwarded to the Owner Preparing draft variation orders, if required.

Periodic checking of remaining quantities and cost estimates General assistance to the Owner relating to financial aspects of construction supervision. Preparing final payment certificates and completion certificates.

Periodic Checking of Remaining Quantities and Cost Estimates

The IC will be reviewing and checking the remaining quantities of work so cost estimates can be made for all items of the work to be constructed, with Owner being kept fully informed on the estimated balance of the work to be completed. For this purpose, the IC will prepare a disbursement schedule based on the forecasted progress of the work and will update it periodically in line with the actual progress and considering any change in the work schedule.

Recommendation on changes in Plans, Contract Amount, Completion Time and Problem Solutions

Preparation of Variation Order and Addenda

In the course of construction, if the need may arise for modifications and alteration to a part of original design and specifications as they are inevitable due to variation of site conditions, or desirable in view of the possibility of incidental reduction in the cost of the works, the IC will propose to the Owner that such modification or alterations be made.

Before making a decision to issue a variation order or any type, the IC will notify the Concessionaire and Owner and make a thorough study on the matter to include preparing supporting data such as preliminary design plans / sketches, approximate work quantities, approximate labor / equipment required, amount of time needed to do the work, cost estimates, an estimation of the time it will take to get approvals and issue the variation order, and what effect this will have on the overall Project.

These data, along with a time schedule showing how the variation can be implemented, will be submitted to the Owner for its review, approval and advice to proceed with such variation. If it is decided to issue the variation order, the contractor will be alerted and will prepare the order (including all necessary plans, specifications and related data) in the most expeditious manner possible, realizing that time is of the essence. The IC will also take steps to keep the costs to a minimum.

Work required by the variation order will be valued at the prices and rates set out in the contract documents. However, in case the contract does not contain any rates applicable to extra / additional work which is required or to the unit prices stated in the tender schedule, the IC will recommend what the new rates / prices or have it done on a day work basis should be and, if required, to assist Owner in negotiations with the Concessionaire / contractor.

In this respect, the Owner will make an analysis of the unit prices by collecting information from suppliers and by ascertaining wage rates, equipment rates and material costs. Unit prices will be updated based on the current prices with due consideration or tax. The procedure of establishing new unit prices will follow the one adopted during the detailed engineering design.

During the implementation period, some portions of the construction may be deleted from the scope of the contractors work due to problems such as deferring site conditions and excessive delays in the construction schedule. Under these circumstances, the IC will evaluate the amount of work, which may then be deducted from the contract amount of the contractor.

Once the variation order has been prepared and issued, the IC will assist the contractor on integrating the new work with the ongoing work and get it completed in the quickest manner that is practical. The IC will also keep the Owner informed on the main aspects of the variation order work, especially the progress being made.

Any variation order will be kept in a hard-back file in numerical sequence with a standard index form cover. Correspondence and other documents relating to a variation order will be kept together in this file.

Settlement of Disputes

In the ICs opinion, disputes between the Concessionaire can be held to a minimum, or possibly even entirely eliminated, if the Project is managed and monitored / supervised in an efficient manner with harmonious relations beings maintained among the Concessionaire / Contractor, the IC and the Owner.The event that a dispute does arise, the IC will remain open-minded and have the Concessionaire / Contractor submit his reasons in writing to dispute to include any backup data required.

The IC will also review the information it has on the dispute and prepare a report which will provide the pertinent details and data needed for its settlements. The guidelines that will be provided in the General Conditions of the Contract for the settlement of disputes will be followed.

Time Extensions

If it appears to the IC that a time extension is warranted, he will analyze all aspects of it and send a report of his findings and recommendations to the Owner for its review. The IC will evaluate and recommend action for any claim the Concessionaire / Contractor may submit for a time extension.

When a claim for a time extension arises, the IC will examines it in the light of the Contract Documents, considering the purpose for which the work is required, the design, the conditions anticipated, the condition actually met, the methods of construction intended, the methods actually employed, the materials used and other technical matters.Having ascertained all the pertinent factors, the IC will recommend to the Owner either acceptance or rejection of the contractors claim for a time extension. When a time extension is approved, the Owner will ensure that the progress schedule and other related items are updated accordingly.

As in the case of contract variations, a hard-back file will be kept to contain all correspondence, schedule, etc. relating to a particular extension of time. The first page of the register will be a schedule, which will be updated as needed. An appropriate calendar will be inside the front cover of the register to mark off each extension to show the extended contract date was obtained.

Pre-Final Inspection and Punch ListApproximately twelve (12) weeks or 3-month before the expected contract completion date, the IC will hold a preliminary inspection of the Concessionaires / contractors work, if the works can be recommended for acceptance to the Owner. The Pre-Final Inspection Team (97% of contract completion) will be done by the entire IC Team with the Concessionaire present to be aware of the items being punch-list and works noted deficient be immediately rectified without waiting for the official punch-list items. The IC personnel will be divided into groups to inspect each main category of the work.

The Pre-Final Inspection of the work is conducted after notification of the Concessionaire / Contractor. Prior to the pre-final inspection, dates will be established for Testing and Commissioning of systems in-place into the contract, acceptance periods, and instructional requirement that may not have been previously agreed upon.

Following the pre-final inspection, the group will prepare a Punch List setting forth in accurate detail any items of work have been found to be not in accordance with the requirements of the contract documents. Following preparation of this list, a meeting will be held between the Concessionaire / Contractor and the Owner to make an entire tour of the project and identify and explain all items on the list so that there will be no misunderstanding of what is required before it can be accepted as complete. All punch lists will be dated and signed.

Note :Only one (single) Punch-list shall be issued for the Project at its substantial completion stage and those shall be periodically inspected after the contractor have rectified to see to it that it has passed the Independent Consultant requirements and test for acceptability.

Final InspectionWhen the Concessionaire / Contractor has finished the construction work (100%) including Commissioning and Acceptance Test being carried out of the contract items and the punch list, the IC will, in compliance with Owners Concession Agreement guidelines, carry out a final inspection to ensure that all of the work has been completed in conformity with the terms of the Concession Agreement / Contract. The final inspection will be planned and performed in a similar manner as the preliminary inspection; however, as a result of having already conducted the preliminary inspection, it can be expected that only a minimum number of deficiencies would be observed. This will mean that the completion certificate can be issued earlier that in the case where many deficiencies have to be corrected.

The IC will then submit a list of deficiencies determined during the final inspection to the Concessionaire, if any and will order him to correct each deficiency within a specified time. After the final inspection is performed to confirm the satisfactory completion of the work, the IC will make a recommendation for the issuance of the Acceptance Certificate to Owner that the Concessionaires work be officially accepted. This will be the start date of the O&M of the Concession Period (Service Inspection), commencement of the warranty maintenance period, the length of which will be stated in the Conditions of Concession Agreement / Contract.

If required through the Concession Agreement that the Project have to be certified with the Office of the Building Officials (OBO) of the DPWH as requisite for the issuance of Certificate of Occupancy, comments from this certifying agencies if any, be well taken cared by the IC with full information to Owner and the Concessionaire for immediate rectification if defects are noted and / or issuance of certificate of acceptability if found satisfactory.

As-Built PlansAlthough not mentioned with the TOR, as-built plans are to be prepared as construction progresses, the final as-built plan can only be finalized after the completion of construction. Within one month after the completion of construction for the Project, the IC will review and validated as-built drawings and if found compliance with what have been installed and erected into the works the IC will provide Owner one full-size set of As-built drawings on stable base material (Electronic file, Microfilm file, plotted on Mylar sheet original file) plus three printed copies signed by the Concessionaires Architect and Engineer. The as-built plans will show the final details of the Project as completed together with all data and records that are properly indexed in a catalog form. D. OPERATION AND MAINTENANCE MONITORING Operation and Maintenance of Concessionaires Facilities / Post Construction Period

Project Closeout and Cleanout

Upon successful compliance by the Concessionaire of the testing and transfer activities as stipulated and required with the Concession Agreement the IC will perform the following services, as follows;

Review the O&M Manual and certify as to the manuals;

Conformity with the relevant standards and requirements in the Minimum Performance Standards and Specification, (MPSS); and notify the Concessionaire and Grantor that the submitted O&M Manual does not conform to the requirements citing the specific aspect that requires revision. Monitor the performance of the Concessionaire during the O&M of the O&M Facilities and its compliance with the MPSS. Design a questionnaire and survey process as a basis for measuring the subjective performance parameters. Undertake comprehensive survey whether the project complies with the Handback Requirements and whether the Project Asset Register accurately reflects the Project Assets. Estimates the Handback Rectification Amount.

TPF 4 / Page 21 of 29