Date of Publication

3-26-2025

Document Type

Master's Thesis

Degree Name

Master of Engineering major in Civil Engineering

Subject Categories

Civil Engineering | Engineering

College

Gokongwei College of Engineering

Department/Unit

Civil Engineering

Thesis Advisor

Engr. Cheryl Lyne Capiz

Defense Panel Chair

Dr. Jason Maximino Ongpeng

Defense Panel Member

Engr. Daniel Nichol Valerio

Engr. Juanito Eje

Abstract/Summary

This practicum project explores the financial and procedural implications of contract time extensions under output-based contracts within the Department, particularly focusing on consulting services during the Project Preparation Stage, which includes Feasibility Studies and Detailed Engineering Design. As the Department adopts output-based contracts to better match the complexity of large infrastructure projects, it becomes essential to analyze the challenges and benefits associated with this contractual shift. Output-based contracts are paid by the outputs delivered, not through the time rendered by the consultant. Thus, the Department does not usually allow additional costs during contract time extension for this type of contract.

The study aims to estimate the cost impact of time extensions across selected projects, compare these costs with those incurred from project delays, and propose a structured plan for implementing contract amendments, in consideration with the possible cost implications. Through the contractual data gathered from three ongoing and completed projects, the study found that the cost of extending a contract is significantly lower than the financial and operational consequences of project delays. This supports the inclusion of output-based reimbursable expenses without the need for formal contract amendments to continuously support the consultant’s operations and activities during the extended period.

The study further proposes the addition of a formal process to account for cost increases due to contract time extensions—an aspect currently lacking in the Department’s system. By implementing this process, both Consultants and Implementing Offices will benefit from a more consistent, flexible, and efficient approach to contract management, ultimately enhancing project delivery and performance under output-based contracting.

Abstract Format

html

Language

English

Format

Electronic

Keywords

Construction contracts; Construction contracts—Philippines

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Embargo Period

6-1-2026

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Available for download on Monday, June 01, 2026

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