Constructors Performance Evaluation System

“In Section 12, Annex E of the Revised Implementing Rules and Regulation (IRR) of R.A. 9184 or the Government Procurement Reform Act, requires all procuring entities implementing government infrastructure projects to evaluate the performance of their contractors using the NEDA-approved Constructors Performance Evaluation System (CPES) guidelines for the type of project being implemented. Section 12, likewise, requires all procuring entities to include in their Projects’ Engineering and Administrative Overhead Cost, the budget for CPES implementation pursuant to NEDA Board Resolution No. 18 (s. 2002); to establish CPES Implementing Units in their respective offices/agencies/corporations; and to use the CPES ratings for the following purposes: a) pre-qualification/eligibility screening; b) awarding of contracts; c) project monitoring & control; d) issuance of Certificate of Completion; e) policy formulation/review; f) industry planning; g) granting of incentives/awards; and in adopting measures to further improve performance of contractors in the prosecution of government projects.”


Objectives

The CPES was developed in order to:

  1. Establish a uniform set of criteria for rating the performance of constructors;
  2. Develop a centralized base of information on performance rating of constructors for licensing, pre-qualification, quality improvement, and other purposes of government agencies, project owners, financing and insurance companies and other interested parties; and
  3. Contribute in ensuring that infrastructure projects conform with the specified requirements of project owners.

Scope

The guidelines shall be used in the performance evaluation of constructors undertaking government infrastructure projects as follows:

  1. Local constructors licensed by and registered with the Philippine Contractors Accreditation Board (PCAB);
  2. Foreign constructors licensed by the PCAB; and
  3. Joint ventures and consortia licensed by the PCAB.

Aspect of Evaluation

The performance of the constructor shall be evaluated “during construction” and “upon completion” of a project. The assigned weights and aspects to be evaluated “during construction” and “upon completion” shall vary depending on the kind of project as follows:

  1. During Construction – with a weight of 60% for horizontal projects, such as road, bridge, port and harbor, irrigation and flood control, water supply and sewerage, mooring facilities for power barges, etc., and 70% for vertical projects, such as housing and building, power transmission line, substation, and diesel power plant, etc., the maximum weight for the following criteria shall be:
CRITERIA MAXIMUM RATING
Workmanship 0.40
Materials 0.30
Time 0.15
Facilities 0.03
Environmental, Safety and Health 0.07
Resource Deployment 0.05
TOTAL 1.00

For contracts which do not involve the supply of construction materials or where the materials are supplied by the owner/agency, the maximum weights shall be:

CRITERIA MAXIMUM RATING
Workmanship 0.40
Time 0.20
Facilities 0.05
Environmental, Safety and Health 0.10
Resource Deployment 0.25
TOTAL 1.00

Criteria for Evaluation

1. During Construction

A. Workmanship (Maximum Rating of 0.40)

Workmanship refers to the quality and quantity of on-going and/or completed items of work, which are verifiable, in accordance to approved plans and specifications. This aspect covers the utilization of the correct methodology needed in producing the desired quantity and quality of work. In rating this aspect, efficiency of methodology shall be considered.

In assessing/evaluating workmanship, the following procedures shall be observed:

  • Before going to the project site, the CPE shall identify the location of on-going and/or completed items of works based on the approved plan, and
  • From the location identified, the CPEs shall select spots randomly for evaluation. The combined area of spots shall not be less than 10% of the ongoing and/or completed items of works. Checklists for Workmanship for roads and bridges, housing and building, ports and harbor, irrigation, flood control, power transmission line, substation, mooring facilities for power barges and diesel power plant projects are presented in Annex 2. Refer to Section 11.4a hereof in determining the rating for workmanship.

In case there are on-going or completed additional works or variation orders, which are verifiable, at the time of inspection, these shall be rated if said variations were approved by the Head of the Procuring Entity.

B. Materials (Maximum Rating of 0.30)

To impress upon the constructors the importance of materials in producing the desired quality of an item of work, this aspect is viewed separately from workmanship as another factor in assessing performance.

Materials means the quality, quantity and type of construction materials including asphalt and ready-mixed concrete, and components supplied by entities other than the constructors as required in the contract. The constructor gets the full rating of 0.30 for materials in a particular item of work if he complies with all the applicable indicators in the checklist for materials in Annex 3. Refer to Section 11.4b in rating materials.

Alternative construction materials used by the constructor may also be considered by the CPE in rating the materials aspect, provided there are supporting documents consisting of the approval by the owner’s authorized personnel and test results. If a work item does not require the use of materials (e.g., demolition of existing structure, excavation, or scraping), the constructor automatically gets 0.30 in this aspect provided he gets the full 11 rating in the workmanship aspect for such work item. However, if the particular item of work was not done or inadequately complied with, the rating for material shall be 0.00. Furthermore, when a particular item of work was not rated since it is no longer visible and cannot be verified, the material aspect for such item of work shall not be rated.

Materials for on-going or completed additional works, which are verifiable, at the time of inspection shall also be rated provided said variations were approved by the Head of the Procuring Entity. Unlike the workmanship and materials aspects which are evaluated on a per item of work, the following four (4) aspects shall be appraised during each visit without particular attention to the work items completed/being completed by the constructor.

C. Time (Maximum rating of 0.15)

This refers to the over-all accomplishment in accordance with the approved PERT/CPM or approved program of work. The constructor gets a full rating of 0.15 if he is on or ahead of schedule but gets a lower score if there is any delay or slippage attributable to his fault. The score shall depend on the percentage of delay as reflected in the checklist for time aspect presented in Annex 4. Refer to Section 11.4c in rating the time aspect.

For contracts with no materials or materials are supplied by the owner, the computation of score for Time aspect is presented in Annex 4 – For contracts with no materials or materials are supplied by the owner.

In case there are on-going or completed additional works or variation orders, time would be rated based on the effective PERT CPM and S-Curve approved by the Head of the Procuring Entity. In case it has not yet been approved by the Head of the Procuring Entity, time shall be rated based on the latest approved PERT CPM and S-curve.

D. Facilities (Maximum Rating of 0.03)

The facilities referred to are those set up by the constructor prior to the actual start of the project and maintained during the construction period. This aspect covers the provision of project signboard, sanitary and/or field and on-site office facilities which includes the surveying, transport and communication, testing and other equipment, appliances, utensils and other items as required in the contract. The constructor merits a full rating of 0.03 if he complies with the indicators enumerated in the checklist for facilities presented in Annex 5. Refer to Section 11.4d in rating this aspect.

In case the contract does not indicate any provision for camp facilities, to be checked are the sanitary, field and on-site office 12 facilities provided by the constructor for its technical staff and workers.

E. Environmental, Safety and Health (Maximum Rating of 0.07)

The constructor must learn to care for his environment and must try his best not to pollute during project prosecution. He must observe safety and health measures as required in the general and/or special contract provisions, and safeguard the lives of his workers and those of the general public. The constructor gets a full rating of 0.07 if he complies with the applicable indicators enumerated in the checklist for ESH presented in Annex 6. Refer to Section 11.4e in rating this aspect.

F. Resources Deployment (Maximum Rating of 0.05)

In this aspect, to be evaluated is the constructor’s ability to deploy on time, based on the approved PERT/CPM or program of work, the required/pledged facilities and resources such as materials, equipment in good running condition and manpower. Refer to Section 11.4f in rating this aspect. Resources deployment checklist is presented in Annex 7.

Should there be on-going additional works or variation orders at the time of inspection not yet covered by approved variation order, the provision on this matter as stated in Section 7.1-c shall likewise be adopted.


2. Upon Completion

A. Workmanship (Maximum Rating of 0.50)

Workmanship is one of the three aspects to be evaluated when the project is one hundred percent (100%) complete as reported by the IO.

The punch lists prepared by the inspectorate team may serve as additional reference for project evaluation. The constructor shall merit a full rating of 0.50 for a particular item of work if he satisfies the applicable indicators in the checklist. Spots comprising not less than ten percent (10%) of the entire project shall be the sample size used in evaluating this aspect.

B. Materials (Maximum Rating of 0.20)

In rating the aspect of material, a full rating of 0.20 shall be given to materials in a particular item of work if he complies with applicable indicators in the checklist for materials in Annex 3.

If a work item does not require the use of materials (e.g. demolition of existing structure, excavation, or scraping), the constructor automatically gets 0.20 in this aspect provided he 13 gets the full rating in the workmanship aspect for such work item. However, if the particular item of work was not done or inadequately complied with, the rating for material shall be 0.00. Furthermore, when a particular item of work was not rated since it is no longer visible and cannot be verified, the material aspect for such item of work shall not be rated.

C. Time (Maximum Rating of 0.30)

In rating the aspect of time, comparison shall be made between the approved contract completion time including time extensions granted and actual project completion time. Completion of a project on time includes demobilization and final clean-up.

The constructor shall get a full rating of 0.30 if he is on or ahead of schedule but if the project is delayed due to his fault, he gets a lower score. The score shall depend on the percentage of delay as shown in Annex 4 – Upon Completion.

For contracts with no materials or materials are supplied by the owner, the computation of score for Time aspect is presented in Annex 4 – For contracts with no materials or materials are supplied by the owner for Upon Completion phase.