Office of The Secretary: Application of Daywork and Provisional SUM Items IN Contract Management Department Order)

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Republicof the Philippines
Dt
DEPARTMENTOF PUBLIC WORKS AND HIGHWAYS
OFFICE OF THE SECRETARY
Manila
1)j>WII
IJ":f ~
AU6 0 7 2007
DEPARTMENT ORDER
46
No.
Series of 200~'
SUBJECT:
APPLICATION OF DAYWORK AND

PROVISIONAL
SUM
ITEMS
IN
CONTRACT MANAGEMENT
~. tJ:f )
Section VII (Bill of Quantities) of the Philippine Bidding Documents for the
Procurement of Works which was prepared by the Government Procurement
Policy Board (GPPB) defines and prescribes guidelines in the application of
Daywork Schedule and Provisional Sums. Attached, for the information and
guidance of all concerned, is a copy of the said Section VII (2 pages) of the
Philippine Bidding Documents.
In order to establish a definite and common interpretation in the application of
Daywork and Provisional Sum in the Contract Management of DPWH
Infrastructure Projects, the following guidelines and procedures are hereby
prescribed for the guidance and compliance of all concerned.
I.
DAYWORK
For minor or incidental works, the Engineer may, if in his opinion it is

necessary or desirable, instruct that a variation shall be executed on a
daywork basis. These dayworks may include unforeseen works necessary in
the prosecution of the project, not captured in the detailed engineering
design and not described as specific items in the bill of quantities, like:
Emergency works as a result of calamity such as landslide, flooding and

typhoons;
Urgent works brought by road accidents which affect the project;
Removal of temporary obstructions; and,
Other similar unforeseen works as determined by the Engineer.
The works shall then be valued in accordance with the Daywork Schedule
included in the Contract, plus a percentage to be entered by the bidder
representing contractor's profit, overhead/contingencies, supervision cost
and other charges.
The following procedure shall then apply:
a. Before ordering goods for the works, the Contractor shall request for
quotations from at least 3 suppliers and submit the same to the
Engineer.
b. Invoices, vouchers and accounts or receipts shall be kept by the
Contractor for submission prior to payment.
D.O. No. 46 S. 2007 p. 213
c. The Contractor shall deliver each day to the Engineer accurate

statements in duplicate to include the following details of the resources
used in executing the previous day's work:
The names, occupants and time of Contractor's personnel;

The identification, type and time of Contractor's Equipment and
Temporary Works; and,
The quantities and types of Plant and Materials used.
d. One copy of each statement will, as agreed, be signed by the Engineer

and returned to the Contractor. The Contractor shall then submit
approved daywork statement to be reflected into the project's Statement
of Work Accomplished for inclusion under the next Interim Payment
Certificate.
Funds intended for dayworks may be charged against the Provisional Sum.
If a Daywork Schedule is not included in the Contract, this Sub-Clause shall
not apply.
II.
PROVISIONAL SUM
"Provisional Sum" means a sum included in the Contract and so designated
in the Bill of Quantities for the execution of any part of the Works or for the
supply of goods, materials, plant or services, or for contingencies, which sum
may be used, in whole or in part, or not at all, on the instructions of the
Engineer. The Contractor shall be entitled to only such amounts in respect
of the work, supply or contingencies to which such Provisional Sums relate
as the Engineer shall determine.
The Engineer shall notify the Contractor of any determination made, with a
copy to the Employer.
Provisional Sum is usually provided in the Bill of Quantities if there is a high
expectation for quantity or cost overrun, as a result of a long gap between
the conduct of detailed engineering design and the actual implementation of
the project. In such case, Provisional Sum may be used to facilitate
budgetary approval of Variation Orders without the need to seek additional
budget. But this Sum should be limited if there is a high degree of accuracy
in the conduct of detailed engineering design, which should always be the
case, and if project is implemented shortly after the completion of the design.
Provisional Sum, if deemed to be needed in the project and provided in the
Bill of Quantities, shall not exceed 3% of the project cost. Provisional sum
shall be applied only to projects that will go beyond 12 months contract
duration.
The Provisional Sum may be used also for the execution of additional works
beyond the limit of Dayworks. This maybe due to unknown or unforeseen
underground obstruction wherein detailed engineering cannot be possibly
undertaken or for other works like relocation of public utilities which requires
D.O. No. 46 S. 2007 p. 3/3

specialization and may be undertaken by a nominated sub-contractor. The
amount to be paid to the contractor or the nominated sub-contractor with
respect to the work performed shall be determined by the Engineer and
submitted to the Department for review and approval of proper authorities
prior to execution.
Works executed under the Provisional Sum shall be valued at the rates or
prices set out in the Tender or as determined by the Engineer. The
Contractor shall submit to the Engineer all quotations, invoices and accounts
or receipts in connection with the expenditures on works executed under the
Provisional Sum. For works undertaken by a nominated sub-contractor, the
amount to be paid will be the actual price paid or due to be paid by the
Contractor plus other charges and profit as determined by the Engineer.
Where such provisional sums are used, the Special Condition of the Contract
(SCC) should state the manner they will be used and under whose authority
(usually the Project Engineer) they will be implemented.
This Order supersedes/amends
shall take effect immediately.
HERMOGENE
Secretary
herewith and
~'\
. ~NE,
1111
previous issuances inconsistent
JR.
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WIN7F00117
Section VIL Bill of Quantities
Notes on the Bi~~1i~rriju~~~'Af'

,1,111"
'~l
Objectives
':i:lil~l}::"c"",....r;~:Pil'
The objectives of the Biithf(QOa'
(a)
to provide su ",,,,\U:+;;i:
enable Bids to beprep'are
(b)
when a Contract has been entered into; to provide a priced Bill of Quantities for
use in the periodic valuation of Works executed.
In order to attain these objectives, Works should be itemized in the Bill of Quantities in
sufi1cient detail to distinguish between the different classes of Works, or between
Works of the same nature carried out in different locations or in other circumstances
which may give rise to different considerations of cost. Consistent with these
requirements, the layout and content of the Bill of Quantities should be as simple and
brief as possible.
Daywork Schedule
A Daywork Schedule should be included only if the probability of unforeseen work,
outside the items included in the BilI of Quanthies,is high. To facilitate checking by
the Entity of the realism of rates quoted by the Bidders, the Daywork Schedule should
normally comprise the following:

(a)
A list of the various classes of labor, materials, and Constructional Plant for
which basic daywork rates or prices are to be inserted by the Bidder, together
with a statement of the conditions under which the Contractor will be paid for
work executed on a daywork basis.
(b)
Nominal quantities for each item of Daywork, to be priced by each Bidder at

Daywork rates as Bid. The rate to be entered by the Bidder against each basic
Daywork item should include the Contractor's profit, overheads, supervision,
and other charges.
Provisional Sums
A general provision for physical contingencies ( uantity overruns) may be made b
120
------------------
-.------.--.--------.--------------------,
including a provisiol1ul SLlm in the SUllJmary Bill or Quantities.

Similarly, a
contingcncy allowance for pos~ible price increascs ~;h(l\lld \tc provided as a provisional
sum in the Summary Bill of Quantities. The inclusion or slIch provisional SlIIllSoften
facilitatcs budgetary npproval by avoiding the need to requcst pcrio~lic supplementary
approvals as the future need arises. Where such provisiollal slllm or contingency
allowances are used, the
should slalc Ihe manner in which theyH~ill be used, and
under whose authority (usu.~n:t;thc r~I.{OC~}Ht;l9
E~TIT)')..J~l(l!rcst?li.latiy.~,;,~);':,.
.:::~'EE~;~;i:::l::;;:rh::,
{;~r.::ti}::::::!:rt;~Ib;. HHf .dtim~:H!;:n:l:i:m':i::~ :,EEI,;d~H::::!~::;:::i:EE;~.!.-.
The estimated cost .?::specializc"VWp.tk to ue dl~!11~9.n:.iut,or or:~~~p'i'til goods t~:t:Rc
supplied, by othcr~9i1tractors (rcf~ifto Gee CI~4:$b 8) should '~pJindicatcd in iiil~e
relevant part of tiWYBill
of Qwiritilics
as a pdhkular
provisiOJ1~1
sum with r",''':'
;~11
....,
'''','' ,
, . ~..
~.~
appropriate brief de{'hption.
A~~II~,:ate procur~p~~ht proccdur~ll~~llp~rmally c~p;,,~d
out by tile PROC URlnQi;S~rq}1y:#?i~~Jf:~,~
..~~81~f;sl?:~Ci~'Af~~,;~P~~t\:~~~6r~~!:!:~;g,l.1~PVldc
an elcmcnt of comp.c.~itio'il"'a'ril0ng;:t.h:c
Diddd~Sl'iil r~$pca;t)fit\hY fcfdiIitic;;,h'tii6ilitics,
aUcnJancc, etc., to Dc:'bwvidcd by.;fI1e. success rill Bi~Ur as prime Contractor for the use
and convenience of th~[:jiJ(Hi.1i:;(c6iJtract(Jrs, each i~'~lated provisional sum should be
followed by an item in the Bill of Quantities inviting the Bidder to quote a sum for such
amenities, facilities, attcndrriice, etc.
see
These Notes for Prcp<:;'in~ a Bill of Quantities arc intended only as information for the
PROCURING ENTiTY or the person drafting the Bidding DoclIlIlents. They should
not be included in the final documents.

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&'! '7.

APPLICATION OF DAYWORK AND

For minor or incidental works, the Engineer may, if in his opinion it is

Emergency works as a result of calamity such as landslide, flooding and

D.O. No. 46 S. 2007 p. 213

c. The Contractor shall deliver each day to the Engineer accurate

The names, occupants and time of Contractor's personnel;

d. One copy of each statement will, as agreed, be signed by the Engineer

D.O. No. 46 S. 2007 p. 3/3

previous issuances inconsistent

Section VIL Bill of Quantities

Notes on the Bi~~1i~rriju~~~'Af'

normally comprise the following:

Nominal quantities for each item of Daywork, to be priced by each Bidder at

including a provisiol1ul SLlm in the SUllJmary Bill or Quantities.

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