Question & AnswerQ&A (DPWH DEPARTMENT ORDER NO. 34)
The primary subject is the requirement of an Application for Contractor's Final Payment Release Certificate (BIR Form No. 2555) as a requisite before the final payment of work accomplished and final payment of price escalation/adjustment in civil works contracts by the Department of Public Works and Highways (DPWH).
The Department of Finance and the Department of Public Works and Highways entered into the Memorandum of Agreement dated July 13, 1992.
The DPWH is required to require the presentation of a Tax Clearance from the Bureau of Internal Revenue (BIR) before any final payment may be released to a contractor.
The contractor must present a properly accomplished Application for Contractor's Final Payment Release Certificate (BIR Form No. 2555) that is duly stamped by the receiving BIR Office.
The order was adopted on February 26, 1993.
The order was signed by Edmundo V. Mir, CESO I, Acting Secretary.
Yes, it is required for the final payment of price escalation/adjustment in addition to the final payment of contract work accomplished.
Its purpose is to ensure that the contractor has complied with tax obligations by presenting BIR clearance before the DPWH releases the final payment.
All concerned officials and employees of the Department of Public Works and Highways are directed to require this document as a part of supporting documents for disbursement.
A copy is available at the Office of the National Administrative Register, U.P. Law Center, Diliman, Quezon City.