Question & AnswerQ&A (DPWH DEPARTMENT ORDER NO. 41, S. 2011)
The primary purpose is to amend the allocation of the authorized 3% deductions from project funds for Engineering and Administrative Overhead (EAO) expenses in capital outlay projects under the FY 2011 DPWH Infrastructure Program.
It applies to both foreign-assisted and locally-funded infrastructure projects managed by the DPWH.
The total deduction authorized is 3%, broken down into 2.25% for Central Office/PMO, 0.25% for Equipment, 0.25% for Regional Office, and 0.25% for District Engineering Office.
For CO/PMO-implemented projects: 2.50% Central Office, 0.25% Regional Office, 0.25% District Engineering Office. For RO-implemented projects: 1.0% Central Office, 1.75% Regional Office, 0.25% District Engineering Office. For DEO-implemented projects: 1.0% Central Office, 0.25% Regional Office, 1.75% District Engineering Office.
Regional Offices may deduct not more than 2.5%, and District Offices not more than 2.0% for EAO expenses for locally-funded projects.
For RO-implemented projects: 2.0% for Regional Office and 0.50% for District Engineering Office, totaling 2.5%.
For DEO-implemented projects, both Regional Office and District Engineering Office gets 2.0% each, totaling 2.0% deduction as authorized.
No, EAO expenses shall not be authorized for infrastructure projects costing Five Million Pesos (P5,000,000) and below.
Yes, this Department Order supersedes all previous issuances that are contrary to its provisions.
It took effect immediately upon adoption on July 26, 2011.