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Constructors Performance Evaluation System (CPES)

Memorandum of Agreement between PSME and PDCB on the Implementation of the Constructors Performance Evaluation System.


MOA Signing (1/23/2018) between PSME and PDCB


PRIMER on CPES : an evaluation system to improve the quality of construction.

What is CPES

CPES is a uniform rating system for evaluating the performance of constructors based on a set of criteria.The evaluation is done at certain stages during the actual construction of the project, and upon its completion.

What Laws govern the implementation of CPES?

The implementation of CPES is governed by Section 12, Annex E of the Implementing Rules and Regulations (IRR) of RepublicActNo. 9184 (Government Procurement Reform Act). This law states that, all government procuring entities implementing infrastructure projects are mandated to evaluate the performance of constructors using the CPES. This requirement covers all national government agencies, department, bureau, office, or instrumentality of the Government, including Government-Owned and/or Controlled Corporations (GOCCs), Government Financial Institutions (GFIs), State Universities and Colleges (SUCs) and Local Government Units (LGUs).

How does the CPES Program started?

In 1990, the Philippine Constructors Association (PCA), in cooperation with the CIAP held the 1st Philippine Construction Industry Congress which recommended all government agencies to submit to the Construction Industry Authority of the Philippines (CIAP) information on the performance of constructors in their projects to be the basis for determining their contracting capacity for purposes of awarding a project.

Taking cognizance of the value of the above recommendation, the CIAP, through one of its implementing boards, the Philippine Domestic Construction Board (PDCB), spearheaded the development of the CPES, by creating several working committees composed of representatives from government and private agencies. This is the same committee who formulated the 1st CPES Implementing Guidelines which was finally approved by the National Economic and Development Authority—Committee on Infrastructure (NEDA-InfraCom) on 30 January 1998 and implemented in 2000.

What does CPES hope to achieve?

The CPES is envisioned to provide information on the performance of constructors in government projects which may be used as basis for prequalification/eligibility check of constructors, agency shortlist, awarding of contracts, project monitoring and control, blacklisting of constructors, policy review/formulation, industry planning, and credential/incentives/award.

In addition, this systematic monitoring and evaluation of constructor’s performance, will give the following benefits to the construction industry:

a. Early detection of problem areas encountered in the project and determination of appropriate corrective actions;
b. Provide necessary safeguards to ensure that the interest of government is at all times protected;
c. Contribute to the continuous improvement of the country’s construction capability.

Who is in-charge of CPES implementation?

The CIAP through the PDCB ensures that the CPES is implemented by concerned agencies of the government.

What are the objetives of CPES?

a. Establish a uniform set of criteria for rating the performance of constructors;
b. Develop a centralized base of information on the performance rating of constructors which can be used as reference for licensing, eligibility, screening, quality improvement, and other purposes of government agencies, project owners, financing institutions, insurance companies and other interested parties; and
c. Contribute in ensuring that infrastructure projects are conformed with the specified requirements of project owners.

Who will be evaluated using CPES?

All constructors (local, foreign, joint ventures and consortia) licensed by the Philippine Contractors Accreditation Board (PCAB), and undertaking public construction projects in the Philippines are covered by the CPES.

How many times should a project of Constructor be evaluated?

Except for those projects with a duration of 90 calendar days and below which may be subjected to at least one (1) visit, all projects shall be subjected to a minimum of two (2) evaluations. However, more than two (2) evaluations may be conducted for very large and complex projects if the situation so warrants.

 

What are the stages of project evaluation and the corresponding weights?

1. Evaluation During Construction - is undertaken when the project is at least 30% accomplished up to the time the project is accepted by the owner as 100% completed.

The table below shows the corresponding weights:

 Project Type Assigned Weights  Project Type  Assigned Weights 

Horizontal

  • Roads
  • Bridges
  • Ports
  • Harbor
  • Irrigation
  • Flood Control
  • Water Supply
  • Sewerage

60%

Vertical

  • Housing
  • Building
  • Power Transmission Line
  • Substation

70%

 

 

 

 

 

 

 

 

 

2. Evaluation Upon Completion - The evaluation shall be performed by the CPE right after the Implementing Office (IO) reports one hundred percent (100%) completion of the project.

The table below shows the corresponding weights:

Project Type Assigned Weights Project Type Assigned Weights

Horizontal

  • Roads
  • Bridges
  • Ports
  • Harbor
  • Irrigation
  • Flood Control
  • Water Supply
  • Sewerage

40%

Vertical

  • Housing
  • Building
  • Power Transmission Line
  • Substation

30%

 

 

 

 

 

 

 

 

 

What are the criteria for evaluating performance?

During Construction

CRITERIA  MAXIMUM WEIGHT 
Workmanship 0.40 
Materials  0.30
Time  0.15 
Facilities 0.03
Environmental, Safety and Health (ESH) 0.07 
Resources Deployment 0.05
 TOTAL 1.00

Upon Completion

CRITERIA MAXIMUM WEIGHT
Workmanship 0.50
Materials 0.30
Time 0.20
TOTAL 1.00

How does an implementing agency undertake CPES project evaluation under the CPES?

Step 1 - Create CPES-Implementing Unit (IU)

a. The head of agency or his authorized officer issue a Department/Office Order which identifies the department/unit in the agency and the designated IU-Head, Technical Personnel and Coordinator;

b. The agency allocates budget for CPES Implementation which may be based on NEDA Board Resolution No. 18 (s. 2002)

Step 2 - Accreditation of Agency Constructors Performance Evaluators (CPE)

a. Through the agency's HRD, conduct of 3-day CPES Accreditation Seminar-Workshop in cooperation with PDCB;

b. Submit applications for CPES accreditation of its qualified employees to PDCB;

*The agency has the option to tap 3rd Party CPES Evaluators from other agencies. In this case, step 2 is not considered.

Step 3 - Actual Project Evaluation

a. Identify the CPES Evaluators to constitute the evaluation team;

b. Prepare schedule of CPES evaluation and documents/materials required by evaluators;

c. Coordinate with the contractors on the details of the project evaluation to be conducted;

d. Conduct actual project evaluation.

What are the strategies in implementing CPES?

The following strategies/options may be adopted in the implementation of CPES. Implementation may be undertaken by tapping the:

a. In-house CPES Evaluators;

b. Third Party CPES Evaluators; or

c. Combination of In-house or 3rd Party Evaluators.

What are the responsibilities of the IU?

The IUs shall be responsible for overseeing the implementation of CPES, including but not limited to:

a. The supervision of CPEs to be accredited by the CIAP-PDCB;

b. Pre-screening of CPE applicants;

c. Secure funding for CPEs accreditation training and seminars; and

d. Yearly evaluation of CPEs.

The CPES-IU shall also be responsible in the selection, coordination and endorsement of agency's CPEs; scheduling and coordination of projects for evaluation; preparation/databanking of reports, and othe related functions.

Who are authorized to conduct the performance evaluation?

The CPES evaluation shall be undertaken by the CPEs who are duly accredited by the CIAP-PDCB. The composition of agency's CPEs are as follows: For a group or team, one (1) engineering or architectural staff occupying supervisory position who shall act as the CPE leader and one (1) or more engineering or architectural staff as member/s depending on the size and complexity of project. For individual, one (1) engineering or architectural staff occupying supervisory position can be the agency's CPE. CPEs can either be in-house or 3rd party evaluators or a combination of both.

What are the minimum qualifications of applicants for CPEs Evaluator?

a. Licensed Engineer or Architect;

b. Must have at least 5 years experience in the actual implementation of project;

c. In full enjoyment of his/her civil rights, must not have been convicted of a crime involving moral turpitude or of any other crime for which the penalty imposed upon his/her is over 6 months of imprisonment;

d. Attended seminars and training related to construction project implementation;

e. Undergo the 3-day CPES accreditation seminar-workshop and passed the case study.

 How does an engineer/architect get accreditation as CPES Evaluator?

Step 1 - Submission of CPE application form together with all the required supporting documents to concerned Agency's CPES Implementing Unit;

Step 2 - The Agency's CPES-IU upon review of the completeness and accuracy of the CPE Application and documents shall endorse it to CIAP-PDCB for approval;

Step 3 - The CIAP-PDCB shall review the application and documents and prepare recommendations to the PDCB Board as to approval/disapproval of the CPE accreditation application;

Step 4 - Once the application is acted upon by the Board, the PDCB Secretariat shall endorse the outcome of application to the Agency's CPES-IU. A certificate of Accreditation and CPE-ID shall be given by PDCB to those applicants who shall be approved to be accredited as CPE.

What is the significance/use of CPES rating?

a. Eligibility Check of Constructors;

b. Agency shortlist;

c. Post-qualification of Constructors;

d. Negotiated Procurement for Civil Works;

e. Awarding of Contracts;

f. GPPB's Blacklisting of Constructors;

g. Granting of awards and recognition;

h. Project monitoring, audit, and quality control of construction project;

i. Industry Planning, Policy Formulation/Review;

j. PCAB's application for registration and classification; and

k. Adopting Measure to further improve performance of Constructors in the Prosecution of Government Projects.

What is CPES Information Networking?

CPES information networking pertains to the exchange of information of CPES rating among government agencies.

Those agencies, government or private needing information about the performance of constructor can avail of this information through the website (http://www.gppb.gov) of the Government Procurement Policy Board (GPPB).

Who is the central body in-charge of the Information Networking?

The CIAP through the PDCB shall be the repository of all CPES evaluation results. These performance evaluation shall be consolidated and disseminated to all tendering agencies and other interested users.

What are the expected benefits of implementing CPES?

a. Completion of infrastructure projects on time and with the desired quality;

b. Elimination of incompetent constructors;

c. Better classification of constructors as it is based on actual performance;

d. Provides internal check vs graft and corruption;

e. Proper observance of environment, safety and health concerns, and

f. Provides continuing challenge for improving local capability in project implementation.


Links:

Philippine Domestic Construction Board Website
https://ciap.dti.gov.ph/content/philippine-domestic-construction-board