Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 459)
Presidential Decree No. 459 aims to amend Section 10(b) of Republic Act No. 5979 by revising the membership of the committee created to readjust contract amounts for public works and to address the escalation of prices of construction materials causing contractors to potentially lose from their public works contracts.
The contract amount can be readjusted if the government imposes, abolishes, or modifies any tax, customs duties, license, impost, fee or similar charges, enacts or amends laws affecting labor hours or wages, or if there is any abnormal or extraordinary increase or decrease in the cost of construction materials due to causes beyond the control of the parties.
The committee is composed of the Secretary of Public Works, Transportation and Communications as Chairman, the Secretary of Public Highways as Co-Chairman, a National Economic and Development Authority (NEDA) representative, the head of the Bureau or Agency concerned, and a representative from the Commission on Audit.
The party must first apply in writing stating the reasons justifying the change and provide detailed data and computations that accurately determine the amount of the change.
No, adjustments shall not be considered for projects behind schedule unless properly covered by an extension of time.
Yes, adjustments must be made if any law affecting the number of labor hours per day or week or the wages or salaries of laborers and employees is enacted, amended, or repealed, which directly affects construction costs.
It refers to any abnormal or extraordinary increase or decrease in construction material costs that neither party can control, which justifies contract amount readjustment.
PD No. 459 took effect immediately upon its promulgation on May 16, 1974.
Yes, all laws, decrees, orders, and rules inconsistent with PD No. 459 are repealed or modified accordingly.