Detailed Plans and Programs of Work.
SEC. 2. Detailed Plans and Programs of Work.—Prior to the actual construction, improvement, rehabilitation and/or reconstruction of the projects covered in whole or in part by appropriations in this Act, and except as otherwise provided in Section 3 of this Act, approval of detailed engineering plans and programs of work by the Minister of Public Works and Highways, or in the case of telecommunications projects by the Minister of Transportation and Communications, shall be obtained for every project with an estimated cost greater than Pl,000,000; by the line Bureau of the Agency Head or, in the case of staff bureaus by the Ministry Head concerned, for every project with an estimated cost greater than P500,000 but not more than P1,000,000; by the Regional Director concerned for every project with an estimated cost greater than P200,000 but not more than P500,000; and by the District or City Engineer concerned for every project with an estimated cost of P200,000 or less.. The program of work shall include, among other things, estimates of the work items, quantities and costs, a PERT/ CPM (Program Evaluation Review Technique/Critical Path Method) network of the project activities, and monthly cash flows. The program of work shall cover at least a usable portion of the project and no construction shall be started for portions of the project that are less than usable; except projects requiring stage construction, in which case continuity of construction up to the completion of a usable portion shall be assured. Once the program of work is approved, it shall serve as the basis for the implementation of the project and the corresponding expenditure of funds. No project shall be divided into smaller portions for the purpose of circumventing the provisions of this Section.
Implementation of Postal, Airport and Air Navigation Projects.
SEC. 3. Implementation of Postal, Airport and Air Navigation Projects.—In the implementation of postal, airport and air navigation projects covered in whole or in part by appropriations in this Act, the Ministry of Transportation and Communications shall be responsible for the project location, space planning, and programming of funds, subject to existing laws, rules and regulations. The funds for the projects shall be released to the Ministry of Transportation and Communications and sub-allotted to the Ministry of Public Works and Highways, as implementing agency. The Ministry of Public Works and Highways shall undertake the detailed engineering, including the preparation and approval of detailed plans and program of work, and the construction of the project by-contract or by administration, in accordance with the provision of this Act, subject to prior consultation with the Ministry of Transportation and Communications, and provided that any expenses for direct project management to be charged to the project funds by the Ministry of Public Works and Highways shall not exceed five per centum (5%) of the project cost.
Local Labor.
SEC. 4. Local Labor.—In the implementation of projects covered by appropriations in this Act, the required unskilled labor shall be procured, where available, from the sitio, barangay, poblacion, municipality or city where the project is located, and, for this purpose, a certification from the City or Municipal Mayor or Barangay Captain, as the case may be, shall be secured as to the availability of the unskilled labor. Skilled labor shall be procured, where available, from within the province where the project is located. Specialized skilled labor may be procured outside the province where the project is located.
Labor-Intensive Methods.
SEC. 5. Labor-Intensive Methods.—Whenever technically and economically feasible, labor-intensive methods shall be used in the prosecution of the projects authorized in this Act: Provided, That (a) the estimated financial cost of each project done by labor-intensive methods does not exceed the cost of the best alternative construction method defined by the agency concerned by more than ten per centum (10%), (b) the estimated duration of the project done by the labor-intensive methods does not exceed the duration of the best alternative method defined by the agency concerned by more than fifty per centum (50%), and (c) the employment of workers in the Projects will not unduly impair the labor requirements of agricultural production in consultation with the Barangay Captain concerned: Provided, finally, That before any such project is prosecuted, the agency concerned shall prepare at least two alternative methods of construction based on the same plans and structural standards, one being labor-intensive together with a comparative evaluation of projected financial and economic costs, employment generation, and technical quality; such comparison shall be the basis for selecting the most advantageous construction techniques to be employed in terms of the criteria aforestated. The District or City Engineer concerned shall certify in the program of work that he has maximized the use of labor-intensive methods in accordance with the foregoing criteria. The purchase of hand tools and other work implements for labor-intensive methods may be charged against project funds not exceeding five per centum (5%) of the estimated project cost. These implements may be turned over to the laborers with the payments therefor deductible from their wages on reasonable installments during the duration of their employment in the project.
The agencies concerned shall refer to and take into consideration the relevant studies of the Ministry of Public Works and Highways for the identification of project work items or activities for labor-intensive methods of construction.
Pre-Construction Activities.
SEC. 6. Pre-Construction Activities.— In the implementation of the work, a general plan of operation shall be prepared to indicate the methods and the procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying or analyzing all analytical procedures and resources to be required for conducting the studies.
Purchases of Materials and Supplies.
SEC. 7. Purchases of Materials and Supplies.—The Minister of Public Works and Highways or, in the case of telecommunications projects, the Minister of Transportation and Communications, is authorized, subject to bid-ding and auditing requirements, to procure the necessary materials and supplies for the construction, reconstruction, improvement, repair and/or rehabilitation of any project covered by appropriations in this Act. When these materials and supplies are obtainable locally in the province or city where the project is located, the same may be procured by the District or City Engineer or, in the case of special projects, the Project Manager, without prior authority from the Minister of Public Works and Highways, or, in the case of telecommunications, the Minister of Transportation and Communications, subject to bidding and auditing requirements. No surcharge shall be imposed for the service of procuring such materials and supplies. The expenditures for each material shall not exceed the estimated cost of the same as stated in the approved program of work.
Prosecution of Projects by Administration.
SEC. 8. Prosecution of Projects by Administration.—Any project covered by appropriations in this Act with a cost of P500,000 or less, based on the approved program of work under Section 2 hereof, may be done by administration or force account by the Ministry, bureau or agency -concerned without benefit of public bidding. Every project with a cost of more than P500,000 shall be advertised for public bidding: Provided, That subject to the guidelines to be jointly promulgated by the Minister of Public Works and Highways and the Minister of Transportation and Communications, preference shall be given to qualified bidders within the region where the proposed project shall be constructed. If there are no acceptable bids for such project, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Minister of Public Works and Highways or, in the case of a telecommunications project, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and the approval of the President, upon recommendation of the Minister of Public Works and Highways or, in the case of telecommunications project, the Minister of Transportation and Communications, if the project cost is more than P5,000,000.
Negotiated Contracts.
SEC. 9. Negotiated Contracts.—Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act snail be prosecuted by negotiated contract except: (a) in case where the public bidding has failed to produce-bids acceptable to the bureau or agency concerned; or (b) in case of urgent necessity or emergency or danger to life and property; or (c) in case of a project under contract, in which case the agency concerned may negotiate with the contractor of the on-going project to undertake the additional work under the same contractual terms and conditions of the on-going contract less credit for mobilization, except in cases of extraordinary inflation or state-of recession declared by the Government: Provided, That no negative slippage exceeding ten per centum (10%') is incurred by the contractor in any of his on-going projects: Provided, further, That the additional work is-within his contracting capabilities. Authority to negotiate contracts for projects under these exceptional cases shall be subject to prior approval by the Minister of Public Works and Highways or, in the case of telecommunications projects, by the Minister of Transportation and Communications, if the project cost is P5,000,000 or less; and to approval by the President, upon recommendation of the Minister of Public Works and Highways or, in the case of telecommunications projects, of the Minister of Transportation and Communications, if the project cost is more than P5,000,000.
Engineering and Administrative Overhead.
SEC. 10. Engineering and Administrative Overhead.— Appropriations in this Act shall be used solely for project implementation which may include direct engineering and administrative overhead expenditure incidental thereto. These expenditures shall be reflected in the program of work for the project concerned as provided for in Section 2 of this Act and shall not exceed five per centum (5%) of the amount actually released for the project. The expenditures shall be reduced to the extent of any personnel and other services that are already supported by regular appropriations of the agencies concerned.
Allocation of Nationwide and Regionwide Lump-sum Appropriations.
SEC. 11. Allocation of Nationwide and Regionwide Lump-sum Appropriations.—The nationwide and regionwide lump-sum appropriations authorized in this Act shall be allocated as equitably as possible to specific projects and areas in the various provinces, cities and municipalities within the region concerned, on the basis of the conformance of such project to the national and/or regional plans, the degree of need for such infrastructure project taking into account the size and developmental potentials of the area, population, rates of unemployment, employment and/ or underemployment: Provided, That regions, provinces, cities and municipalities that are not covered by specific appropriations in this Act shall be given priority in the allocation of such nationwide and regionwide appropriations.
Reports.
SEC. 12. Reports.—The Minister of Public Works and Highways and the Minister of Transportation and Communications shall submit quarterly accomplishment reports to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget, the Batasang Pambansa through the Speaker, and the Chairman of the Regional Development Council of the region where the project is undertaken. At the end of the calendar year, the Minister of Public Works and Highways and the Minister of Transportation and Communications shall submit their annual accomplishment reports which shall include the appropriations released as of the end of the calendar year, the extent of the work accomplished, further works to be done to complete the program of broad categories of public works and public highways projects, and recommendations, if any, for transfer of appropriations or changes of program to be incorporated in the succeeding appropriations measure, to the President, the Prime Minister, the National Economic and Development Authority, the Ministry of the Budget and the Batasang Pambansa through the Speaker.
Separability.
SEC. 13. Separability.—If any provision of this Act is declared unconstitutional, the remaining provisions shall remain in force.
Effectivity.
SEC. 14. Effectivity.—This Act shall take effect immediately upon approval.
Approved, September 11, 1981.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
