NPM 137-2012

Requesting Entity: Office of the Provincial Engineer Province of Negros Oriental

Issues Concern: Payment of Additional Compensation to Consultant



Whether giving additional compensation to a consultant may be allowed under Clause 14 of the General Conditions of Contract (GCC), Philippine Bidding Documents (PBDs 4th Edition) for the Procurement of Consulting Services issued by the Government Procurement Policy Board (GPPB).

GCC Clause 14 pertains to instances of unfair operations, and provides that the parties shall use their best efforts to agree on an action that may be necessary to remove the cause or causes of any unfair operation. Accordingly, this Clause does not provide the basis for payment of additional compensation.

[A]dditional compensation for the revisions done by the consultant on the original design cannot be granted based on GCC Clause 14 of the PBDs. Although the GCC allows variation orders, it prohibits payment of such amendments.