The city government’s Baguio Tennis Court renovation and parking area project awarded to St. Gerrard Construction complied with proper bidding and implementation procedures, according to the City Bids and Awards Committee (BAC) and the City Buildings and Architecture Office (CBAO).
The BAC affirmed that the competitive bidding process conducted on the project in 2022 was “all above board.”
Bidding Timeline
BAC records show that the approved budget for the contract (ABC) for the project was P118, 995,628.02
Ten companies purchased bid documents. None of these were blacklisted as per the Philippine Government Electronic Procurement System (PHILGEPS) portal at the time of the technical evaluations.
During the June 21, 2022 bid opening, seven firms submitted bids, with three disqualified due to eligibility deficiencies. Four, including St. Gerrard Construction, passed all technical, financial, and eligibility requirements under Republic Act 9184.
Evaluation of the bid documents was conducted by the BAC technical working group from July 22, 2022 leading to the selection and award of the contract
to St. Gerrard on Sept. 14, 2022.
The company had the lowest complying and responsive bid with a contract cost of ₱110,067,352.62. The contract was signed on Oct. 6, 2022.
Project Implementation
The CBAO said due diligence was observed in monitoring and in keeping track of the progress of the project.
It was subjected to regular monitoring and punch listing to identify incomplete works, defects, and deviations from the contract specifications. While corrective measures were carried out, the CBAO said that liquidated damages were imposed on the contractor.
Progress reports showed the following accomplishment rates:Dec 14, 2022 – 20.11 percent;Feb 1, 2023 – 38.06 percent;Sept. 4, 2023 – 50.744 percent;Jan. 4, 2024 – 66.152 percent;*Jan. 19, 2025 – 82. 36 percent;Feb. 6, 2025 – 82.36 percent;May 9, 2025 – 91.180 percent; andSept. 8, 2025 – 94 percent.The CBAO said there were variations implemented to improve the project like the construction of the pickle ball court, purchase and installation of the generation sets with automatic transfer switch, automatic pumps, upgraded lighting facility and others necessitating adjustment of the contract cost to ₱114,875,327.59.
The project duration was also adjusted from 470 to 836 days owing to justifiable conditions including the unworkable weather conditions experienced by the city in 2023 and 2024 that marred the construction works. The CBAO said there were variation work orders implemented to suit actual field conditions and enhance the facility and these also necessitated extra works.
Slippage Issues
The CBAO issued notices to the contractor calling out delays on the project which had an initial target completion of December 2024.On Oct 28, 2024, the CBAO issued a notice for negative slippage, first warningOn Nov. 5, 2024, CBAO issued a notice for negative slippage, final warningOn Dec. 26, 2024, notice to terminate contract was issued directing the contractor to show cause why contract should not be terminated to which the contractor complied* CBAO denied the contractor’s answer prompting the contractor to file a motion for reconsideration
* Seeing as terminating the contract would be disadvantageous to the city due to big discrepancies in project cost over time, the city reconsidered and the contractor in turn committed to fulfill its obligations with upgraded equipment and manpower.
Liquidated Damages
On January 20, 2025, the contractor incurred a -17.64 percent delay in the project that cost it liquidated damages amounting to P 20,264.01 per day to be deducted during the final billing.
On May 9, the CBAO found a 7.8 percent unperformed portion of the contract and St. Gerrard was directed to undertake the work within 15 calendar days or until June 10, 2025. Some jobs were done but still needed rectification.
This prompted the city mayor to give the contractor until Sept. 13, 2025 to complete the rectifications.
Based on inspections conducted on September 5 and 8, 2025, the CBAO still noted deficiencies with a -7 percent again subject to liquidated damages.
The CBAO said the running total of the accumulated liquidated damages has reached P4,924,154.43 along with P8,767,044.20 as retention cost.
As of this month, the city has withheld payment of ₱26,249,012.35 from the total cost of the project due to unperformed portion of the contract pegged at 6 percent and including the accumulated liquidated damages.
As the project remained incomplete past the deadline imposed by the mayor, the CBAO is again taking steps to address the matter with finality.
Meanwhile, Mayor Benjamin Magalong directed city officials to ensure that all documents pertaining to the project will be made available for scrutiny to anyone who will request for it. – Aileen Refuerzo and Jessa Mardy Samidan
