PRESIDENTIAL DECREE No. 759

APPROPRIATING FUNDS FOR PUBLIC WORKS, SYNCHRONIZING THE SAME WITH PREVIOUS PUBLIC WORKS APPROPRIATIONS

WHEREAS, Presidential Decree Nos. 3 and 475 provide appropriations for rehabilitation and reconstruction of damaged infrastructure facilities caused by calamities in 1972 and for additional development projects designed to further accelerate socio-economic development;

WHEREAS, there is a need to increase the appropriations of some on-going and previously authorized projects to ensure their completion in view of increased construction costs brought about by circumstances beyond the control of the government and of changes in technical designs and requirements;

WHEREAS, there is also a need to provide appropriations for new projects in support of priority programs of the government including the food production and distribution program;

WHEREAS, it is necessary to provided adequate appropriations to cover the local counterpart funds of on-going and proposed foreign-financed projects in view of the country increasing capability to absorb foreign assistance as demonstrated by the various loans and aids extended to Government projects;

WHEREAS, there is a need to appropriate funds for these projects in adequate amounts to cover their total costs up to completion to assure continuity of their implementations;

WHEREAS, in order to make more effective the National Development Program, there is a need to provide sustained financial support to the Infrastructure Program;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and for sustained development of the country through complementary infrastructure facilities, do hereby decree and order as follows:

SPECIAL PROVISIONS

Section 3. Program of Work Required Before Prosecuting Public Works. Before prosecuting any public works project, the district, city or project engineer concerned shall prepare a program of work for approval by the Department Head concerned for any project with an estimated cost of more than P500,000; by the Bureau Head concerned for any project with an estimated cost of more than P200,000 but not more than P500,000; by the Regional Director concerned for any project with an estimated cost of more than P50,000 but not more than P200,000; and by the District or City Engineer concern for any project with an estimated cost of P50,000 or less. In no case shall construction funds be remitted to field offices or construction work on a project be started before the program of work is approved.

No program of work for any project which requires special site investigation, survey, and construction plans shall be approved unless such plans are used as basis of the program: Provided, That for projects with an estimated cost of P1000,000 or more, the PERT/CPM technique shall be used and a time-scaled diagram of the activities shall as well a monthly cash flow shall be made part of the program of work. The PERT/CPM diagram shall be used by the agency concerned as a basis for, inter alia, monitoring the progress of work, making progress payments, and assessing claims for extra cost and time extension.

The program of work for any project shall not be amended except in case of unforseen contigencies or any change in field conditions or other similar cirumstances in which case an amendment may be allowed provided that such amendment will not result in a deficiency of the expected accomplishment in excess of fifteen per centum thereof and an extension of project duration beyond a reasonable period.

Section 4. Rental of Equipment. Rental of equipment shall not be deducted at the time of the release of funds for public works or even in anticipation of use of the equipment but shall be paid based on actual use when the appropriation so released is P25,000 or less. When the appropriation so released is above P25,000 and use of rented equipment is anticipated, deduction for rental shall be made at the time of the release of funds but such deduction shall not exceed ten per centum of the released appropriation: Provided, That, should the amount so deducted be in excess of actual rental, the balance of such deduction should be remitted immediately to the district or city engineering office concerned.

Section 5. Preference to Local Labor. In the execution and construction of any public works project, the labor requirements shall be filled by laborers from the sitio, barrio, poblacion or municipality where the project is being undertaken. However, in case of skilled labor, it may be procured elsewhere within the province where the project is located; and in the case of specialized skilled labor, it may be procured outside the province where the project is located.

Section 6. Labor Intensive Methods Whenever technically practicable and economically feasible, labor-intensive methods may be used in the prosecution of public works or portion thereof authorized in this Decree and other Public Works measures: Provided, That the structural integrity of the project is not impaired and its financial cost does not increase by more than ten (10%) per centum over that involved in alternative normal equipment-intensive construction technique as defined by the agency concerned: Provided, further, That the employment of workers for the labor-intensive operations will not unduly impair the labor requirements for agricultural production. 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 comperative 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 criterial in the preceding sentence.

The selected construction technique shall be made part and the basis of the program of work which shall be subject to approval by the officials concerned in accordance with the provisions of Section 3 of this Decree.

The purchase of hand tools and other work implements for undertaking public works projects by labor-intensive technique is authorized to be charged against the project funds not be exceed five (5%) per centum of the estimated project cost; Provided, That the agencies concerned shall undertake a continuing inventory of such hand tools and other work implements and make full economic use thereof in different projects.

The agencies concerned shall refer to the relevant studies of the Department of Public Works, Transportation and Communications and the International Labor Organization for the identification of project work items or activities suitable for labor-intensive methods of construction.

Section 7. Pre-Construction Activities. In the implementation of the work a general plan of operations shall be prepared to indicate the methods and procedures to be followed. This plan will cover and organize all relevant fields of study, delineation of responsibilities for undertaking each phase, specifying all analytical procedures and resources to be required for conducting the studies: Provided, That the appropriation shall include administrative services directly identified with the studies and purchase of equipment, materials, and supplies.

Section 8. Use of Private Consulting Services. For any public works project with an estimated cost of P200,000 or more, the Department Head concerned may hire the services of Filipino or associated Filipino and foreign consultants or consulting firms whenever available, for a fee not exceeding two and one half per centum (2 1/2%) of the estimated cost for the review of the project or plans and specifications devised by the bureau or office concerned, and/or for a fee not exceeding nine per centum (9%) of the estimated total project cost to undertake the detailed design, including plans and specifications, and/or construction, supervision of the project: Provided, That the participation of Filipino consultants and/or government implementing agency concerned in any point venture of foreign and local agencies shall be miximized.

Section 9. Purchase of Sites. Any appropriation herein authorized for construction of a project shall be understood to include the acquisition or purchase of sites whenever such acquisition or purchase is necessary for the prosecution of the project.

Section 10. Prosecution of Public Works Projects by Administration. The provisions of any law, rules or regulations to the contrary notwithstanding and irrespective of the source of funds, all public works project with a cost of Two Hundred Thousand Pesos (P200,000) or less may be done by administration by the bureau or agency concerned without benefit of public bidding subject to the provisions of Section 5 and Section 6 thereof. Public works projects with a cost of more than Two Hundred Thousand Pesos (P200,000) shall, after public bidding, be awarded by contract. If there are no acceptable bids for the project, or the bids are higher by more than ten per centum (10%) over the government estimate, the project may be prosecuted by administration by the bureau or agency concerned after securing the approval of the Department Head. In case of urgent necessity or emergency, projects costing more than P200,000 may be prosecuted by administration without benefit of public bidding upon representation by the bureau or agency concerned, subject to favorable recommendation of the Department Head and approval by the President of the Philippines.

Section 11. Purchase of Materials and Supplies. The Department Head concerned is authorized, in the interest of public service, subject to bidding and auditing requirements, to procure the necessary materials and supplies, needed for the construction, reconstruction, improvement, repair and/or maintenance of any public work project, regardless of the source of funds; Provided, That, when such materials and supplies are obtainable locally in the district, city or neighboring districts, the same may be procured by the District or City Engineer without prior authority from the Department Head; Provided, further, that, no surcharge shall be imposed for the service of procuring such materials and supplies; Provided, furthermore, that the cost of such materials and supplies shall not exceed the estimated cost of such materials and supplies stated in the approved program of work as provided under Section 3 hereof.

Section 12. Engineering Surcharge and Other Overhead Expenses. No national surcharge shall be collected from the appropriation or expenditures authorized for any category of public work and all surcharges to be collected by the district or city engineering office for administrative overhead and engineering expenses, including the compensation and travel expenses and all other deductions shall not exceed ten per centum of expenditures or appropriation for any public works project, so that ninety per centum of said appropriation shall be expanded directly for the project: Provided, That nine per centum said expenditures shall accrue to the district or city engineering office and one per cent shall accrue to the regional engineering offices concerned: Provided, further, That such surcharges shall be under the custody of the disbursing officers of the said engineering offices: Provided, finally, That such surcharges may be used for the purchase of the motor vehicles and equipment.

Section 13. National Disbursing Funds. Any provisions of existing law to the contrary notwithstanding, all funds appropriated under the provisions of this Decree shall, when released, be carried in the account books of the treasurers or special disbursing officers as national disbursing funds and all projects herein specified are classified as national projects: Provided, That, provincial fund allocated as counterpart shall not be considered as national fund.

Section 14. Interchangeability of Financing Methods. Upon the recommendation of the Secretary of Finance and the National Economic and Development Authority, the President of the Philippines is authorized to modify the financing methods indicated in this and previous Public Works Measures, so as to enable the department head concerned to undertake the projects financed from general revenue with the proceeds from the sale of bonds and/or from loans.

Section 15. Other Financing Methods. The provisions of existing laws, executive orders, rules and regulations to the contrary notwithstanding, the proceeds from the payment for reparations goods may be used for financing projects authorized in this Decree and other Public Works Measures, including the purchase of necessary equipment, construction materials and supplies.

Section 16. Unreleased Appropriations. All unreleased appropriations in Republic Acts Numbered Forty Eight Hundred Fifty Four, Fifty One Hundred Eighty Seven, and Fifty Nine Hundred Seventy Nine are hereby repealed.

Section 17. Reports. The Department Head concerned shall submit an annual accomplishment report to the President, copy of which shall be furnished the National Economic and Development Authority, Such report shall include the appropriations released as of the end of the fiscal year, the extent of work accomplished, further work to be done to complete the program of broad categories of public works and recommendations if any, for transfer of appropriations or for program changes to be incorporated in the next Public Works Appropriations Measure.

Section 18. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 31st day of July, in the year of Our Lord, nineteen hundred and seventy-five.