QuestionsQuestions (DPWH DEPARTMENT ORDER NO. 41, S. 2011)
It amends DPWH Department Order No. 10, s. 2009 on the allocation/breakdown of the authorized 3% deductions from project funds for Engineering and Administrative Overhead (EAO) expenses for DPWH infrastructure projects under the FY 2011 DPWH Infrastructure Program.
For foreign-assisted projects: Central Office (CO)/PMO = 2.25%, Equipment = 0.25%, Regional Office (RO) = 0.25%, District Engineering Office (DEO) = 0.25%, total = 3.00%.
If directly released to the Central Office: CO = 2.50%, RO = 0.25%, DEO = 0.25%, total = 3.00%.
RO-implemented: RO = 1.00%, CO/PMO = 1.75%, DEO = 0.25%, total = 3.00%.
DEO-implemented: RO = 1.00%, CO/PMO = 0.25%, DEO = 1.75%, total = 3.00%.
They are authorized to deduct not more than 2.5% and 2.00% for Regional Offices and District Offices, respectively, of project cost for EAO expenses.
RO-implemented: RO = 2.00%, DEO = 0.50%, total = 2.50% (as reflected in the breakdown given for the scenario).
DEO-implemented: RO = 2.0%, DEO = 2.0%, total = 2.50% is shown in the provided breakdown table (note: students should carefully reconcile the table’s totals with the stated ‘not more than’ limits).
It is consistent with Section 6, Special Provisions of the GAA FY 2011, which authorizes the 3% deductions from project funds for engineering and administrative overhead.
No. It provides that engineering and administrative overhead expenses shall not be authorized for infrastructure projects costing P5,000,000 and below.
It states that it supersedes all previous issuances to the contrary and shall take effect immediately, adopted on 26 July 2011.
It was issued by the Secretary of the Department of Public Works and Highways (DPWH), Rogelio L. Singson, and is signed (SGD.)
Foreign-assisted projects follow a different percentage breakdown (with CO/PMO and specific ‘Equipment’ share), while locally-funded projects have allocations depending on whether funds are directly released to CO or to RO/DEO and which office implements the project.
Because the amendment indicates the prior allocation rules are no longer controlling to the extent inconsistent; students must apply the latest issuance to determine correct deduction/retention percentages.
It illustrates how executive agencies operationalize legislative appropriations/budget provisions (e.g., GAA special provisions) through implementing rules and internal issuances, provided the order remains consistent with the law and appropriation terms.