DPWH Special Report

Committee on Good Governance and Public Accountability House of Representatives 10 June 2014 Maria Gracia M. Pulido Tan Chairperson Commission on Audit



All projects awarded to/undertaken in 20092010 by: Contractor Name

CY 2009 (PhP)

CY 2010 (PhP)*

Total

1. ANTONIO V. NIDEA CONST.

595,496,229.38

250,096,736.32

845,592,965.70

2. SUNWEST CONST. & DEV’T

960,187,476.48

956,421,410.89

1,916,608,887.37

3. (a) DSB CONST.

562,852,624.20

226,777,178.79

789,629,802.99

15,186,097.73

9,821,639.73

25,007,737.46

1,635,011,844.47

1,103,013,082.88

2,738,024,927.35

540,079,188.07

1,601,004,074.45

2,141,083,262.52

1,510,015,981.31

881,936,593.46

2,391,952,574.77

7. I & E CONSTRUCTION

746,842,945.84

326,436,899.77

1,073,279,845.61

8. ALGIMAR CONST.

453,024,556.75

215,947,659.91

668,972,612.66

9. FERDSTAR BUILDERS

444,882,592.20

377,995,705.14

822,878,297.34

10. RITZ COMMERCIAL

355,017,757.59

259,447,132.86

614,464,890.45

11. E. GARDIOLA CONST.

2,833,357,101.56

755,836,101.10

3,589,193,202.66

12. LMG CONSTRUCTION

99,463,877.23

481,655,193.51

581,119,070.74

(b) N-FOUR GENERAL CONTR. 4. HI-TONE 5. THREE W BUILDERS 6. RAM BUILDERS

*As of October 2010

To determine whether there was: 

 

Proper Funding Authority Compliance with Proper Procurement Process Actual Implementation and Compliance with Approved Plans and Specifications





NCR: C-5 Extension (SLEX/West Service RdSucat) costing P578.527M was commenced

by READYCON TRADING/GARDIOLA without funding cover, Notice of Award and Contract Eventually, P200M was released from DPWH lump sum appropriation nationwide under the 2009 GAA



ISABELA 4TH DEO: Notices of Award for 3 projects costing P24.1M were issued to RITZ COMMERCIAL five days before receipt of

SARO 



No formal transmittal of SAROs and NCAs from DBM or DPWH-CO/RO to Isabela 2d and 4th PAMPANGA: Rehab/Improvement of Balitucan, San Ildefonso, Magalang Spillway was funded from DPWH savings but without appropriate realignment authority



REG. IV-A: 3 projects not supported with approved SAROs for change of location and/or modification: ◦ Improvement/Rehab of Drainage along Darasa, Tanauan City – THREE W; P19.258M ◦ Repair/Rehab/Regravelling along Mulanay-San Francisco, Quezon – GARDIOLA; P19.286M ◦ Improvement of Gumaca-Pitogo-Mulanay-San Francisco National Road – RITZ; P9.6M





REG. VIII: SAROs for 96 projects costing P1.82B

by DPWH-RH, Leyte 1st, 2d and 5th DEOs; Samar 1st; Eastern Samar; and Northern Samar 1 st DEOs indicated Appropriation Codes not identifiable in the GAA and ABM; hence, auditors could not establish whether these were “duly appropriated projects” and whether the SAROs were in accordance with the GAA 5 projects costing P67.3M funded from Energy Development Fund (PD 910)

Agency/PID Number N.Samar 1st DEO 09IH0077

Contract Cost

Description of Project per Contract

P 14,401,384.29 Cluster XY-0903LM Improvement/Rehab of 1 and Catarman – , KM 742+699 – KM. 743+261 and KM 742+600 – KM 734+000 (Catarman-Bobon section) Items of Work:  Reflectorized Thermoplastic Pavement Markings  Fabrication & Installation of Project Billboard 14,392,823.14 Improvement/Rehab of Catarman- Allen Road,Bobon Rosario Section, KM 732+000 KM 715+000 Items of Work: Reflectorized Thermoplastic Pavement Fabrication & Installation of Project Billboard 14,393,856.11

Improvement/Rehab of Catarman Allen Road, Lavezares - Allen Section, KM. 713+000 – KM. 696+000 Items of Work: Reflectorized Thermoplastic Pavement Markings Road Traffic Sign Fabrication &Installation of Project Billboard

Description of Project per SARO SARO No. A-09-08768- P15 Million Source: PD 910 Improvement/Rehab of Catarman Diversion Road 1 and Catarman – Allen Road, KM 742+699 KM. 743+261 and KM 742+600 – KM 734+000 (CatarmanBobon section) SARO No. A-09-08767 – P15 Million Source: PD 910 Improvement/Rehab of CatarmanAllen Road,Bobon Rosario Section, KM 732+000 - KM 715+000 SARO No. A-09-0769 – P15 Million Source: PD 910 Improvement/Rehab of Catarman Allen Road, Lavezares - Allen Section, KM. 713+000 - KM. 696+000

Agency/PID Number Leyte 2nd DEO 09ID0109

Tacloban City Sub-DEO 09IM0131

Total

Contract Cost 14,470,672.40

9,644,950.00

P 67,303,685.94

Description of Project per Contract

Description of Project per SARO

Improvement/Rehabilitation of Barugohay Sur-Balilit Road, Carigara, Leyte

SARO No. A-09-08770 Source : PD 910 Improvement/Rehabilitation of Barugohay Sur-Balilit Road, Carigara, Leyte

Repair/Rehabilitation of Drainage System, Daang Maharlika, Brgy. Nulatula, Tacloban City

SARO No. 12-007808-Ext. Source: PD 910 Repair/Rehabilitation of Drainage System, Daang Maharlika, Brgy. Nulatula, Tacloban City

ď ˝

REGS. I, II, III and V: 290 projects costing P6.371B did not undergo procurement planning as required under Sec. 7 of RA 9184 * Not included in Regular Infra Program * Individual PPMPs (Project Procurement Plan) and APP (Annual Procurement Plan) were made upon receipt of SARO

I

No. of Projects 4

II

15

III

26

V

245

Total

290

Region

Cost

Remarks

P 38,595,932.14 Not covered or included in the APP of the 1st Pangasinan Engineering District. It appears that there was no proper conceptualization of the project in the absence of Project Procurement Management Plan (PPMP) and APP. Such lack of proper planning put into question the necessity of the project although the audit team recognizes that the SARO has identified the specific project to be funded.

139,621,086.39 Implemented in 4th Isabela DEO which were not covered by an approved APP. Further, no certification as to availability of funds was issued by the Accountant for the total contract cost. It was verified, however, that the lack of the certification of the Accountant was due to non-awareness that funds were indeed received and NCAs were credited to their Land Bank MDS account.

513,182,359.62 Pampanga 1st and Pampanga Sub-DEOs failed to comply strictly with; a) the need to prepare an APP as 26 projects implemented in the Pampanga Sub-DEOs were not covered by an approved APP; b) the specific procedures in the determination of eligibility of bidders; and c) the desired effective internal control of its procurement process.

5,680,214,547.51 Of the 254 projects, 245 projects or 96.5% did not undergo the required procedure of procurement planning as provided in Section 7 of RA 9184 and its revised IRR. Projects that were funded out of the lump sum appropriation were not included in the Regular Infrastructure Program, hence, the individual PPMPs and APP were made upon receipt of the SAROs. Identification of the projects to cover the lump sum appropriations were based as the need arose, thus, these projects were not previously identified and included in the Regional Development Investment Program.

P 6,371,613,925.66

No Pre-Procurement Conferences conducted by BACs for projects costing more than P5M  

Reg. I – 4 projects; P38.596M Reg. VIII – 26 projects; P433.854M

ď ˝

ď ˝

Non-compiance with required eligibility evaluation processes Bidding and awards for projects costing a total of P2.561B were based on Contracts Profile Eligbility (COE) Processing Results issued by DPWH-CO, instead of the ROs and DEOs respective BACs

Region/ Office

Contractor

DPWH Regional Office No. I

RITZ Commercial

DPWH Regional Office and DEOs in Region III DPWH Regional Office No. VIII Engineering Office

2nd District Engineering Office

FERDSTAR Builders Contractors FERDSTAR Builders Contractors I and E Construction

5th District Engineering Office 1st District Engineering Office

1st

District Engineering Office

No. of Contract

Amount

4

P 38,595,932.14

FERDSTAR Builders

63

513,182,359.62

E. Gardiola Construction

52

1,098,926,812.80

4 4

38,574,918.00 86,384,000.00

7

178,488,736.50

I and E Construction

13

173,014,162.38

E. Gardiola Construction

16

269,710,564.12

5

48,038,322.83

5

116,105,365.54

173

P 2,561,021,173.93

Eastern Samar District Engineering Not stated in report Office 1st District Engineering Office Not stated in report Total

No genuine and meticulous postqualification, resulting in: * Multiple contracts that grossly exceeded CONTRACTORS’ Net financing and Constructing Capacities (NFCCs) * Assigning same set of equipment and personnel to multiple, simultaneous projects * Delayed/substandard/poorly supervised/poorly implemented projects

Contractor E. GARDIOLA CONSTRUCTION E. GARDIOLA CONSTRUCTION AND TRIPLE 8 CONSTRUCTION AND SUPPLY (JV) THREE W BUILDERS

I AND E CONSTRUCTION FERDSTAR BUILDERS Total

No. of Projects

Amount

36

P 718,022,324.06

4

96,425,357.10

5

115,728,550.93

15

192,388,707.47

2

56,642,390.45

62

P 1,179,207,330.01

Awarded to E. GARDIOLA CONSTRUCTION (Flood Control & Drainage System Projects

E. GARDIOLA CONSTRUCTION

No. of Projects 1

Jan. 22 to May 11,2010

1

Jan. 22 to May 1,2010

5

Jan. 22 to Jul. 20, 2010

2

Jan. 22 to May 31,2010

1

Jan. 22 to Aug. 19, 2010

1

Jan. 22 to Feb 20. 2011

2

Jan. 22 to Feb 23. 2011

2

Jan. 22 to Feb 24. 2011

1

Jan. 22 to Feb 24. 2011

2

Jan. 29 to Feb 23. 2011

1

Jan. 29 to Feb 24. 2011

Implemented during

(Road Imp/Rehab Projects)

Remarks On its Key Personnel: Felix M. Gallardo (Project Manager), Gualberto Silva (Project Engineer), and Jonathan Agas (Foreman) for all 10 projects, Atanacio Guno (Materials Engineer) for 8 projects and Arturo Villena (Materials Engineer) for 2 projects On the equipment pledged 3 same Dump Trucks for all 10 projects 1 Dump Trucks for 3 Projects 1 Dump Trucks for 7 Projects 1 Dump Trucks for 4 Projects 1Pay Loader for all 10 projects 1Pay Loader for 9 projects On its Key Personnel: Felix M. Gallardo (Project Manager), Gualberto Silva (Project Engineer), for all 9 projects, Atanacio Guno (Materials Engineer) for 5 projects, Arturo Villena (Materials Engineer) for 3 projects, and Modesto Abalos (Foreman) for 6 projects On the Equipment Pledged: 1 Payloader for 4 projects 1 Payloader for the other 4 projects 2 same Dump trucks for all 9 projects 2 same Dump trucks for 8 projects

Awarded to E. GARDIOLA CONSTRUCTION

E. GARDIOLA CONSTRUCTION

No. of Projects 4

Implemented during

Remarks

Feb. 26 to May 26, 2011 Project is implemented in 1st DEO

On its Key Personnel: Felix M. Gallardo (Project Manager), Gualberto Silva (Project Engineer), Arturo Villena (Materials Engineer) and Modesto Abalos (Foreman) for all Projects On the Equipment Pledged: 1 Pay Loader for all 4 projects 3 Dump Trucks for all 4 projects 1 Water Truch for all 4 projects On its Key Personnel: Felix M. Gallardo (Project Manager), Gualberto Silva (Project Engineer), Atanacio Guno (Materials Engineer) and Modesto Abalos (Foreman) for all 5 projects On the Equipment Pledged: Not indicated On its Key Personnel: Felix M. Gallardo (Project Manager), Gualberto Silva (Project Engineer) for all 8 projects, Atanacio Guno (Materials Engineer) for 4 projects and Arturo Villena (Materials Engineer) for 2 projects, and Mario Tiongco (Materials Engineer for 2 projects Modesto Abalos (Foreman) for 4 projects, Jonatan Agas (Foreman) for the other 2 projects and Lorenzo Igne (Forman for 2 projects On the Equipment Pledged: 1 Road Grader for 4 projects 1 Road Grader for 2 projects 1 Road Grader for 2 projects 1 Road Roller for 4 projects, same 1Road Roller for 2 projects 1 Road Roller for 2 projects.

1 Stake Truck for 4 projects, 1 Stake Truck for 2 projects 1Stake Truck for 2 projects 1 Water Truck for 4 projects 1 Water Truck for 2 projects 1 Water Truck for 2 projects

5

May 18 to Sept 14, 2011 Project is implemented in 1st DEO

1

Apr. 3 to May 25, 2011

1

Apr. 3 to Jul. 10, 2011

1

Apr. 6 to May 25, 2011

1

Apr. 6 to Jul 1, 2011

1

Apr.13 to May 25, 2011

1

Apr.15 to May 28, 2011

1

Apr. 15 to Jul 1, 2011

1

Apr. 15 to Jul 9, 2011

(Road Imp/Rehab Projects)

Awarded to E. GARDIOLA CONSTRUCTION/ TRIPLE 8 CONSTRUCTION AND SUPPLY –JOINT VENTURE

No. of Projects 4

THREE W BUILDERS

4

(Flood Control & Drainage System Projects

1

FERDSTAR BUILDERS Construction

2

I & E CONSTRUCTION

2

Implemented during Mar. 13 to June 11, 2009

Remarks

On its Key Personnel: Felix M. Gallardo & Apolonio Pestano (Project Managers), Gualberto Silva & Edgardo Inetrior Project Engineers) Arturo Villena (Materials Engineer), Modesto Abalos & Apolinario Balabay (Foremen) for all 4 projects On the equipment pledged 4 same Dump Trucks for all 4 projects Mar. 26 to May 24, 2010 On its Key Personnel: Niquito Oba (Project Manager), Luis Manalo (Project Mar. 26 to Jul. 3, 2010 Engineer), Leah Gloria Ada (Materials Engineer) for all 5 projects and Socrates Hamac (Foreman) for 4 projects On the equipment pledged Same equipment for all 4 projects, with 1 project having different pledged equipment Mar. 23 to Mar 26, 2011 On its Key Personnel: Same Project Manager, Project Engineer, Materials Engineer and Foreman for the 2 projects On the Equipment Pledged: Same Pay Loader, Dump Trucks, Plate Compactor for the 2 projects February 16, 2009 to May On its Key Personnel: 16, 2009 Joselito Embao (Project Engineer), Joseph Neverio Project is implemented in (Materials Engineer), and (Jundie Dellosa) Foreman the 1st DEO 2 projects.

On the equipment pledged 1 DC Pick-up for all projects. Other equipment were not identified.

Awarded to I & E CONSTRUCTION

No. of Projects 2

5

4

2

Total

62

Implemented during

Remarks

Mar. 23 to April 17, 2009 On its Key Personnel: Project is implemented in Joselito Embao (Project/Materials Engineer), 2nd DEO Dellosa (Foreman) for the 2 projects.

For the equipment pledged 1 Service Truck, 1 Road Roller, and 1 Road the 2 projects June 9, 2009 to June 29, On its Key Personnel: 2009 Joselito Embao (Project Manager /Materials Project is implemented in Jundie Dellosa (Foreman) for the 8 projects 5th DEO On the equipment pledged 1 Thermoplastic Applicator for all 9 projects June 16, 2010 to July 7, 1 Kneader Machine for all 9 projects 2010 3 Isuzu Elf Dropside for all 9 projects Project is implemented in 1 Road Grader for all 5 projects 5th DEO 1 Excavator Backhoe for all 9 projects 1 Wheel Loader for all 9 projects 1 Combination Roller for 9 projects 1 Walk Behind Roller for all 9 projects 1 One-Bagger Mixer for all 9 projects August 2, 2010 to Sept. On its Key Personnel: 10, 2010 Joselito Embao (Project Manager /Materials Project is implemented in Jundie Dellosa (Foreman) for the 8 projects 5th DEO On the equipment pledged 1 Thermoplastic Applicator for all 9 projects 1 Kneader Machine for all 9 projects 3 Isuzu Elf Dropside for all 9 projects 1 Road Grader for all 5 projects 1 Excavator Backhoe for all 9 projects 1 Wheel Loader for all 9 projects 1 Combination Roller for 9 projects 1 Walk Behind Roller for all 9 projects 1 One-Bagger Mixer for all 9 projects

and Jundie

Grader for

Engineer),

Engineer),

Payment of bid documents in DPWH-ROVIII and Leyte 2d were made AFTER submission of bids (from 1 to 163 days), contrary to Revised IRR requirements that “BAC shall issue the bidding documents upon payment of the corresponding cost … to the collecting/disbursing officer of the procuring entity”

Project Identification No.

OR No.

OR Date

Amount

Purpose

Date of Bid Opening/ Deadline for Receipt of Bid

Bidder

DPWH Regional Office 09I00084

4883917

12/29/09

20,000

Bid Docs

12/28/09

E. Gardiola Const.

09I00085

4883917

12/29/09

20,000

Bid Docs

12/28/09

E. Gardiola Const.

09I00086

4883918

12/29/09

30,000

Bid Docs

12/28/09

Three W Builders

4733660

03/06/09

5,000

Bid Docs

03/02/09

I and E Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883717

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

4883718

09/10/09

30,000

Bid Docs

03/31/09

E. Gardiola Const.

2nd DEO 09ID0013

DPWH Regional Office 09IO0040

09IO0041

09IO0042 09IO0043

09IO0044

09IO0045

Contract/Bidding deficiencies – Reg. V 



 



No Scope of work, Plans/Drawings/Specs/ABC No Contract duration, procurement schedule, timelines No warranty/bid security (or for another project) No proof of posting of Invitation To Bid, Philgeps, agency website Bids not opened immediately after deadline; no Minutes of bidding and post qualification

Contract/Bidding deficiencies – Reg. V     

No representative from private sector, NGOs and COA No BAC resolution declaring Lowest Calculated Bid (LCB) No letter on record of BAC submitting required resolution and docs to Head of Procuring entity Approval of Head of entity undated; also, Notice of Award, Performance Bond No proof “losing bidders” were notified

Unauthorized signatories to contracts 

Contracts totaling P843B SIGNED BY BAC CHAIR (Asst. Regional Directors/Asst. District Engineers) No. of Contracts

Amount

RITZ

4

P 38,595,932.14

FERDSTAR READYCON and E. GARDIOLA (JV) BSP./E. GARDIOLA and READYCON (JV)

26 1 1

165,730,445.72 172,999,267.73 380,588,988.36

FERDSTAR

6

51,982,097.22

THREE W BUILDERS DSB

1 6

1,413,000.00 23,023,600.00

I AND E CONSTRUCTION

1

8,573,277.30

46

P 842,906,608.47

Region 1 III NCR

Total

Name of Contractor

Level of Signing authorities prescribed

by Dept. Order No. 24, S2007, exceeded; P20M only for Dist.

Engineer, BAC chair, and Budget Officer/Accountant – beyond, should be at Regional level.

APPROVING OFFICER (as shown in the supporting documents) 1st DEO

2nd DEO

PID No. 101C0105

09ID053

09ID0181

10ID0024

10ID0034

Name of Project

Repair/rehabilitation of Binahaan-Embarkadero River Control Structures, Tanauan,

Imprvt/rehab/conc reting of Pastrana – Dagami Road, Km. 938+000 – Km. 939+500;Imprvt/re hab/concreting of Dagami-Pastrana Road, Km. 930+000 – Km. 932+000 Imprvt/rehab/conc reting of BurauenPastrana Road, Km. 936+000 – Km. 938+000

Imprvt./rehab.

Of Jaro – Tunga Road Section with exceptions, Jaro, Leyte & Imp./Rehab. Of MacArthurMayorga & MacArthurPalale Road Section with exception, MacArthur,

Imprvt./rehab of Barugo – Carigara Road, Km. 932+000 – Km. 945+000 w/ exceptions; DulagJulita-Burauen Road, km 941+000 to km 955+162;MayorgaLa Paz Road, km.

946-000 to km 973+000 with exception

Repair/rehab of (a) Dagami – Burauen – La Paz Road, Km. 965+150 – Km. 987+200 w/ exceptions;Pastran a-Dagami Road, km. 930+100 to km. 939+80 0with exception and Barugo-Carigara Road, km.

935+000 to km 945+300, with exception

Amount Contractor

P48,149,000.00 FERDSTAR Builders

P28,944,608.36 I AND E

P38,590,975.58 I AND E

P 28,945,010.72 I AND E

P 38,593,778.74 I and E

APPROVING OFFICER (as shown in the supporting documents) 1st DEO

2nd DEO

PID No. 101C0105

09ID053

09ID0181

10ID0024

10ID0034

Document Name/Approval PPMP

District Engineer

District Engineer

District Engineer

District Engineer

District Engineer

ABC

District Engineer

District Engineer

District Engineer

District Engineer

District Engineer

Advertisement of Project for Bidding Resolution of Award Cert of Availability of Funds Notice of Award

BAC Chairman

Vice BAC

BAC Chairman

BAC Chairman

District Engineer

District Engineer

District Engineer

District Engineer

District Engineer

Budget Officer

Budget Officer

Budget Officer

Accountant

Accountant

BAC Chairman

BAC Chairman

BAC Chairman

BAC Chairman

BAC Chairman

Contract

District Engineer

District Engineer

District Engineer

District Engineer

District Engineer

Chairman- BAC Chairman

Contracts were split to fall within signing authorities

PID NO. 09ID0053

NAME OF PROJECT

CONTRACT PRICE

AMOUNT OF ABC

Imprvt/Rehab/concreting P28,944,608.36 of Pastrana – Dagami I and E Road, Km. 938+000- Construction Km. 939+500

P 9,450,000.00

Imprvt/Rehab/concreting of Dagami – Pastrana Road Km.930+000 – Km. 932+000

9,450,000.00

Imprvt/Rehab/concreting of Burauen – Pastrana Road Km 936+000 – Km 938+000

9,450,000.00

ITEMS OF WORK TO BE PERFORMED a. b. c. d. e. f. g. h. a. b. c. d. e. f. g. h. a. b. c. d. e. f. g.

Removal & disposal of obstruction / excavation for Subgrade preparation Agg. Sub-base course P.C.C.P Const. Joint Asphalt Sealant Metal Guardrail Project Signboard Road Signs Removal & disposal of obstruction / excavation for Subgrade preparation Agg. Sub-base course P.C.C.P Const. Joint Asphalt Sealant Metal Guardrail Project Signboard Road Signs Removal & disposal of obstruction / excavation for Subgrade preparation Agg. Sub-base course P.C.C.P Const. Joint Asphalt Sealant Metal Guardrail Project Signboard

PID NO. 10ID0034

10ID0024

TOTAL

NAME OF PROJECT

CONTRACT PRICE Repair/rehab of Pastrana 38,593,778.74 – Dagami Rd. Km. I and E 930+100 – Km. 939+800 Construction & Barugo – Carigara Rd. Km. 935+000 – Km. 945 + 500 Repair/rehab of Dagami – Burauen – La Paz Rd. Km. 965+165 – 987+200 with exceptions Rehab/improvement of 28,945,010.72 Barugo – Carigara Road I and E Km. 932+000 – Km. Construction 945+000 with exceptions, Leyte Rehab/improvement of dulag – Julita – Burauen Road Km 941+000 – Km. 955+162 with exceptions, Leyte Rehab/improvement of Mayorga – La Paz Rd Km 946+000 – Km 973+000 with exceptions, Leyte P96,483,397.82

AMOUNT OF ABC 19,300,000.00

ITEMS OF WORK TO BE PERFORMED Metal guardrails, Road Signs

19,300,000.00

Road Signs

9,650,000.00

Road Signs

9,650,000.00

Road Signs

9,650,000.00

Metal guardrails, Road Signs







No strict monitoring during implementation No inspection conducted after project completion and defects liability period Per DPWH RO-V, electronic Procurement Mgt System (ePMS) does not include monitoring as basis for issuance of Certificate of Acceptance, and whether defects liability completed



Substantial defects found in Reg. V: *

HI-TONE – 7 projects; P174.84M

*

ANTONIO NIDEA – 2 projects; P86.79M

*

SUNWEST – 1 project; P72.372M

*

DSB – 1 project; P1.93M

Project ID

Project Name/Cost/Contractor

Deficiency/ies

Construction of Binagasbasan Spillway, San Miguel, Catanduanes – P14,324,202.06 Hi-Tone Construction and Development Corporation Widening/Improvement of Catanduanes Circumferential Road (Bocon-Milaviga Section), Caramoran, Catanduanes – P 19,099,998.27 Hi-Tone Construction and Development Corporation Quinali-Talisay, Upgrading of QuinaliTalisay River Flood Control Embankment & Channelization – P48,200,000.00 Antonio V. Nidea Construction Cluster I—2010:Dredging of , Viga, Catanduanes-P38,193,209.50 Hi-Tone Construction and Development Corporation Improvement (Concreting, Regravelling and Widening) of (Gov. Fleix Fuentebella Highway), Camarines Sur – P72,372,455.67 Sunwest Construction and Development Corporation

The approach and stone masonry works at one end of the spillway were totally damaged.

Regional Office 10F00010

10F00014

10F00048

10F00028

09F00014

The Aggregate Base Course (Item 201) in the roadway has already eroded.

The project is not being utilized at present due to the defects of the inlet structure of the water gate that was tilted. The left and right portions of the dike were damaged, and the embankment has eroded.

Dredged materials were dumped on the river banks and have partly eroded back to the river. Siltation of the river was also noted.

The gravel surface was no longer in the desired grade as called for in the plans and specifications. Scaling and fissures were observed in some sections of the PCCP, landslides and deep excavated portions were noted on the mountainous and hilly terrain sections of the roadway, hence posing difficulty to all types of vehicles passing thru the road.

Project ID 09F00029

09F00054

09F00051

09F00062

09F00088

Project Name/Cost/Contractor

Deficiency/ies

Rehabilitation/Reconstruction of Damaged , Daang Maharlika (Concreting of KimantongTabon Tabon-Anislag Section), Daraga, Albay- P26,880,000.00 Hi-Tone Construction and Development Corporation Cluster IV-Repair/Impvt. Of Various River Control, & Camalig – P1,929,992.60 DSB Construction Supply

There were sections of the roadway with visible cracks and numerous minor and several major scaling of the concrete road (PCCP).

Cluster I- Various Farm to Market Roads, 3rd District of Albay – P 38,590,618.60 Antonio V. Nidea Construction Repair/Rehabilitation of Catanduanes Circumferential Road, Caramoran-San Andres Section, CatanduanesP23,875,000.00 Hi-Tone Construction and Development Corporation Improvement/Construction of , Camalig, Albay - P28,645,757.73 Hi-Tone Construction and Development Corporation

In Libod, Camalig, Albay, almost the entire road has minor scaling and the edges have visible cracks. There was also a destroyed portion of the flood control structure due to the installation of drainage pipe.

The Lanigay-Bongao-Santicon Farm to in Polangui, Albay is no longer passable due to heavily eroded roadway.

The Aggregate Base Course (Item 201) in the roadway has already eroded and Item 102 (Surplus Common Excavation) was already covered with thick vegetation.

The Aggregate Sub base Course (Item 200) was mostly washed out from the roadway. The roadside is thickly vegetated which blocks the flow of water and causes the accumulation of rainwaters in the roadway. It was also noted that a cracked portion in one of the slope protection was caused by the seepage of water from the roadway.

Albay 1st DEO 10FA037

Cluster 14-Construction of Various River Control, Camalig, Albay – 23,822,473.00 Hi-Tone Construction and Development Corporation

Construction of the Tagaytay River Control was completed on June 4, 2010. Inspection made by the Special Audit Team on April 15, 2011 on the said project disclosed that a private structure took up a portion of the dike.



Invalid Security * RITZ – unstamped and unnotarized Bank Guarantee for 4 projects costing P38.596M in Reg. I denied by Metrobank

Deficient Surety Bond * SUNWEST – Retention money of P2.4M for Catanduanes causeway was released and substituted with surety bond effective for less than 5 months from expiration of one-year period

ď ˝

ď ˝

No warranty security required by DPWH-ROV for 15 projects costing P413.36M, and DPWH-ROVI for 4 projects awarded to NIDEA costing P154.343M Certificates of acceptance issued immediately upon completion of project instead of end of one year from completion

Contractor DSB Construction and Supply

Project

Amount

Construction of (Saggunian Bayan Bldg.) Rapu-Rapu, Albay P4,824,988.64

Sunwest Construction and Development Concreting, re-gravelling and widening of Presentacion Junction, Corporation () Camarines Sur DSB Construction and Supply Concreting/Rehabilitation of various roads, Legaspi city, Albay and Catanduanes Hi-Tone Construction and Development Rehabiliattion/Reconstruction of Damaged , Daang Maharlika Corporation (Concreting of Shoulder Kimantong-Tabon-Tabon-Anislag Section), Daraga Albay DSB Construction and Supply Repair/Improvement of various River Control, and Camalig, Albay Antonio V. Nidea Construction Various Farm to 3rd District of Albay

72,372,455.67 7,093,235.88 26,880,000.00

1,929,992.60 38,590,618.60

DSB Construction and Supply DSB Construction and Supply

Repair and Improvement of DPWH Quarter (Phase I), DPWH, district Office, Airport Site, Repair of Mul;ti-Purpose building (Toilet), Daraga Albay

964,999.98 482,450.45

Hi-Tone Construction and Development Corporation Hi-Tone Construction and Development Corporation and RAMAPLUS, Inc. (JV)

Repair and Rehabilitation of Catanduanes Circumferential Road, Caramoan-San Andres Section, Catanduanes Concreting, re-gravelling and widening of , Presentacion, Camarines Sur

23,875,000.00 95,492,942.40

Contractor

Project

Hi-Tone Construction and Development Improvement/construction of , Camalig Albay Corporation DSB Construction and Supply Grassroot, Entreprenuership and Employment in Tourism (GREET) Projects, Albay, CAMARINES Norte, Camarines Sur, Catanduanes, and Sorsogon Hi-Tone Construction and Development Opening of Barangay District III to solong Road (Phase I), San Corporation Miguel Catanduanes Antonio V. Nidea Construction Upgrading of Flood Control Embankment and Channelization (Phase III) Libon, Albay Hi-Tone Construction and Development Construction of Binagasbasan Spillway, San Miguel Catanduanes Corporation Total

Amount 28,645,757.73 11.483,434.75

38,199,986.60 48,200,000.00 14,324,202.06 P413,360,065.36

Project

Contract Cost

Opening/Improvement of Barangay Manika – (Phase I) Libacao, Aklan P 40,516,513.00 Opening/Improvement of Barangay Manika – (Phase II) Libacao, Aklan Opening/Improvement/Construction of Sitio Tina (Phase II), Libacao, Aklan Opening/Improvement/Construction of Sitio Tina - (Phase III), Libacao, Aklan Total

36,657,513.00

38,584,525.00 38,584,175.00 P 154,342,726.00

ď ˝

ď ˝

Noted defects by DPWH-NCR in the 2 C-5 Extension Projects awarded to BSP/GARDIOLA/READYCON, which were contained in the QUA Reports remained uncorrected , even as Contractors have been paid 98% of contract price (P553.6M) and surety bonds have expired QUA Reports not required to be submitted to DPWH Constructors Performance Evaluation System for consideration in the evaluation of the performance of these contractors

a. Cracks on concrete sidewalks, curb and gutter and concrete pavement at various stations and portions/phases of the project; b. No asphalt sealant on most weakened plane joints; c. Collapsed/Demolished fence of service road inside NAIA d. Peeled-off plaster finish; e. Presence of potholes and pokemarks on most portion of the concrete pavement; f. Chipping of edges of concrete pavement; g. Minor and medium scaling is evident on most part of the concrete pavement; h. Settlement of gutter and concrete curb;

h. Collapsed sidewalks, some of which were due to utilization of the sidewalks as night parking for delivery trucks and vans regularly transversing the C-5 roads; i. Substandard and stripped off angular bars; j. A substantial portion of the concrete wall fence along SLEX to Multinational Avenue was dismantled and pilfered of steel reinforcement; and k. Some portions of the grouted riprap along approaches (AMVEL and SM side) service roads and old Sucat Road were dismantled and turned into access gates for adjacent private properties. These were done in the absence of permits from DPWHNCR and the payment of the necessary guarantee deposits to ensure that the public infrastructure affected by their activities will be restored at their expense.



Excessive Contract Costs per COA Tech Evaluation and Variation Order Review Reports – variances above tolerable limit of 10% * Reg. 8 – GARDIOLA/TRIPLE 8 – 17.5M * Reg. 8 – I AND E – 10.859M * Reg. 3 – FERDSTAR – 23.798M * Reg. 7 – I and E - .654M

Unit prices of projects in Pangasinan compared to those in other Districts higher by 62%



Excessive quantities of materials used/procured * Infanta-Dinahican Rd – GARDIOLA – Chevron attached to same traffic post excessive by about 500 costing P6.46M * Substantial amount of metal guardrails/railings and road signs not used







Nondisposal of waste material – dredged materials from Agos River merely dumped by riverbank without barriers to prevent them from slipping back (THREE W; P96.5M) Other deficiencies, including incompleteness of projects from as much as by 75% In Reg. 3, noted deficiencies in 42 projects amount to P195M (total contract cost is P481.85M, or a percentage of about 40%)



NOTICES OF DISALLOWANCE: P184,661,425 Region

No. of Proj

No. of NDs

Amount

III

12

9

29,281,038

IV-A

1

1

14,926,320

VII

8

8

19,270,339

XI

9

9

121,183,729