Presidential Decree No. 459 (PD 459) — AMENDING SECTION 10(b) OF REPUBLIC ACT NO. 5979, BY REVISING THE MEMBERSHIP OF THE COMMITTEE CREATED THEREUNDER, AND FOR OTHER PURPOSES.
WHEREAS, Section 10 (b) of Republic Act No. 5979 provides
for the mechanism whereby the contract amounts for public works may be
readjusted for causes occurring after the perfection of and during the
effectivity of the contracts therefor;
WHEREAS, recent developments have caused the escalation of
prices of construction materials to a point where contractors stand to
lose tremendously were they to proceed with their respective public
works contracts;
WHEREAS, the escalation of prices of construction materials
may not be necessarily due to any action by the Government enumerated in
said Section 10 (b) of Republic Act No. 5979; and therefore, it is only
fair and just that certain adjustment be made in the law to provide for
such contingencies; and
WHEREAS, it is likewise necessary that the membership of the
Committee created thereunder be revised so as to reflect recent changes
in our laws, as well as for a better coordination of the economic and
fiscal policies involved in any price adjustments for public works
contracts.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Construction,
do hereby decree and order:
SECTION 1. Paragraph (b) of Section 10 of Republic Act No.
5979, as amended, is hereby amended to read as follows:
"(b) Should the Government, at any time during the effectivity
of a contract, impose, abolish, modify any tax, customs duties, license,
impost, fee, or other similar charges or enact, amend or repeal any law
affecting the number of hours of labor permissible a day or the number
of days a week or the wages or salaries to be paid to laborers and
employees, which would directly increase or decrease the cost of
materials or the cost of the construction work beyond or under the
amount stipulated in the contract, or should there be any abnormal or
extraordinary increase or decrease in the cost of construction materials
due to any cause beyond the control of either or both parties, the
contract amount shall be readjusted accordingly by a committee, hereby
created for this purpose, composed of the following:
Chairman—Secretary of Public Works, Transportation and
Communications
Co-Chairman—Secretary of Public Highways
Member —National Economic and Development Authority (NEDA)
Representative
Member —Bureau/Agency Head concerned
Member —Commission on Audit Representative
Provided, That the party seeking adjustment shall first
apply for same in writing, stating therein the reasons justifying the
change as well as the data computation in sufficient detail which would
determine accurately the amount of the change: Provided, however,
That for projects behind schedule, unless properly covered by extension
of time, no adjustments shall be considered."
SEC. 2. All laws, decrees, orders and rules and regulations
inconsistent with the provisions of this Decree are hereby repealed or
modified accordingly.
SEC. 3. This Decree shall take effect immediately.
Done in the City of Manila, this 16th. day of May, in the year
of Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
