Negotiated Contracts.
Section 8
SEC. 8. Negotiated Contracts.—Pursuant to the general policy of undertaking projects by contract after public bidding, no project covered by appropriations in this Act shall be prosecuted by negotiated contract except: (a) in cases where 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 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 or the Minister of Public Highways, as the case may be, if the project cost is P2,000,000 or less; and to approval by the President of the Philippines, upon recommendation of the Minister of Public Works or the Minister of Public Highways, as the case may be, if the project cost is more than P2,000,000.