REQUIRING COMPLIANCE WITH COMPETITIVE BIDDING REGULATIONS AND ADOPTION OF UNIFORM GENERAL TERMS AND CONDITIONS IN CASE OF CERTAIN GOVERNMENT AND PRIVATE CONTRACTS.

• Number: Presidential Decree No. 1764
• Sections: 8

Preamble

WHEREAS, for the implementation of the Government' s

priority, industrial programs, competitive bidding is essential to ensure hat

only the most suitable and cost efficient industrial plant and technology are

acquired and that the foreign exchange reserves of the Philippines are prudently

utilized in the acquisition of such plants and technology and not diverted to

authorized or illegal uses;

WHEREAS, uniform general terms and conditions of contracts,

carefully designed for the optimum protection of the interests |f the owner of

the project, should be very useful means for the coordinated and efficient

implementation of the Government's priority industrial programs;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Republic of the Philippines, by virtue of the powers vested in me by the

Constitution, do hereby order and decree as part of the law of the land the

following:

Section 1

SECTION 1. All contracts, with a total value exceeding $5

million, proposed to be entered into by the Government for the design,

procurement or manufacture, installation, testing and commissioning of

industrial plants, or any part thereof, shall be awarded only after compliance

with competitive bidding regulations to be issued and promulgated by the

Ministry of Industry, after approval of the President of the Philippines.

Section 2

SEC. 2. All contracts referred to in Section 1 hereof hall,

in addition, incorporate as integral parts thereof uniform general terms and

conditions designed to secure optimum protection of the interests of the

Government as owner of the industrial project concerned, and the realization of

such project in the most efficient and economical way possible. Such general

terms and conditions may, however, be modified on a contract-to-contract basis

by the addition of such particular terms and conditions as may be reasonably

necessary in the light of the specific features of an individual industrial

project and the financial and commercial circumstances surrounding such project.

The Ministry of Industry shall issue and promulgate, with the approval of the

President of the Philippines, one or more sets of uniform general terms and

conditions to be incorporated in differing prevailing types of contracts

including, without limitation, lump sum turnkey contracts with or without an

escalable loca1 currency component, and cost-plus contracts.

Section 3

SEC. 3. For purposes of this Decree, “Government" shall mean

the Government of the Republic of the Philippines, but shall include ministries,

bureaus, offices, commissions, agencies or instrumentalities thereof, and

government-owned or controlled corporations as well as subsidiaries or

affiliates thereof, whether exercising proprietary or govermental functions or

otherwise, and whether acting on their own or in joint venture with the private

sector.

Section 4

SEC. 4. The provisions of this Decree shall apply not only

to contracts to be entered into by the Government, but also to contracts to be

entered into by private persons or Entities where financing or financial

guarantees for the projects concerned are obtained from the Government.

Section 5

SEC. 5. All contracts which are subject to the Provisions of

this Decree, but which are entered into without Compliance with competitive

bidding regulations in effect, or without incorporating; the applicable general

terms and conditions, shall be disapproved by responsible officials, and if such

contracts are nonetheless approved by such government officials, shall be

unforceable as against the Government, or the local private contracting party,

as the case may be, without prejudice to the application of penalties provided

by law against the responsible government officials.

Section 6

SEC. 6. All provisions of existing laws, decrees, order;

letter of instructions, administrative issuances, rules or regulations

inconsistent with the provisions of this Decree are hereby repealed or modified

accordingly.

Section 7

SEC. 7. This Decree shall take effect ten (10) days after

the publication in the Official Gazette or in a newspaper of general circulation

in Metropolitan Manila, whichever comes earlier, of (a) the competitive bidding

regulations referred to in Section 1 hereof; and (b) with respect to the

particular type or types of contracts concerned, the uniform general terms and

conditions of contract referred to in Section 2 hereof.

Done in the City of Manila, this 11th day of January, in the year of Our Lord

nineteen hundred and eighty-one".

(Sgd.) FERDINAND E. MARCOS

President of the

Philippines

By the President:

(Sgd.) JOAQUIN T. VENUS, JR.

Deputy Presidential Executive Assistant

Vol. 25, Vital Documents, Presidential Decree

1980-1981