Thank you for contacting Oracle Customer Support for Primavera.
Please notice that this is a known issue in Contract Management 14 and integration with BIP. Currently there are no work arounds.
This issue is on the BI Publisher side for which bugs were created earlier. I would recommend you contact the BIP Support team to see if they have any potential workarounds to solve this issue.
Bug 13636140: DATA FORMATTING LOST IN STANDARD FORM OUTPUT.
Please let me know if you have any further questions.
Oracle Customer Support
If you build your form or report layout using the Desktop Publisher (Word) tool as an RTF template, you will find that paragraphs print correctly as expected. If you use the default Oracle forms that were built in the BI web-tool for layouts, then yes, remarks will print as one block, and while it's identified as an issue, as far as I know it has not been resolved.
Of course, while you can re-use the datamodels provided, you would have to re-create the layouts (RTF) from scratch to fix.
Hope this helps.