Question & AnswerQ&A (BATAS PAMBANSA BLG. 13)
Batas Pambansa Blg. 13 is "An Act Appropriating Funds for Public Works and Highway Projects and for Other Purposes." Its purpose is to appropriate funds from the General Fund and other sources for the construction, improvement, rehabilitation, and completion of various public works and highway projects nationwide.
Approval authority is tiered by project cost: projects over ₱1,000,000 require approval from the Minister of Public Works, Transportation and Communications or the Minister of Public Highways; projects between ₱500,000 and ₱1,000,000 require approval from the Bureau Head concerned; projects between ₱200,000 and ₱500,000 require approval from the Regional Director concerned; and projects costing ₱200,000 or less require approval from the District or City Engineer concerned.
Section 3 mandates procuring required unskilled labor, if available, from the local sitio, barangay, poblacion, municipality, or city where the project is located with certification from local officials. Skilled labor should be procured from within the province if available, while specialized skilled labor may be procured outside the province.
Labor-intensive methods can be used when technically and economically feasible provided: (a) the cost does not exceed that of the best alternative by more than 10%, (b) the project duration does not exceed that of the best alternative by more than 50%, and (c) employment of workers will not impair agricultural labor requirements. Additionally, a comparative evaluation of methods must be prepared, and the use of labor-intensive methods maximized.
The Minister of Public Works, Transportation and Communications or the Minister of Public Highways may procure materials and supplies subject to bidding and auditing requirements. If materials are locally obtainable, the District or City Engineer or Project Manager may procure them without prior ministerial authority, but still subject to bidding and auditing. No surcharge shall be imposed for procurement services, and expenditures must not exceed the cost in the approved program of work.
Projects costing ₱500,000 or less may be done by administration or force account without public bidding. Projects costing more than ₱500,000 must be publicly bid. If no acceptable bids are received, projects costing ₱2,000,000 or less may be done by administration with the Minister's approval; projects over ₱2,000,000 require the President's approval upon ministerial recommendation. In urgent or emergency cases, the same rules for approvals apply without prior bidding.
Negotiated contracts are allowed only if: (a) public bidding fails to produce acceptable bids; (b) there is urgent necessity, emergency, or danger to life and property; or (c) the project is contiguous to an ongoing project under contract, allowing the same contractor to undertake additional work under existing terms, given no negative slippage or extraordinary economic conditions. Appropriate ministerial or presidential approval is required depending on project cost.
Engineering and administrative overhead expenditures incidental to project implementation shall not exceed 5% of the amount actually released for the project and must be reflected in the project program of work. These expenditures must be reduced by any personnel or services supported by agencies’ regular appropriations.
The heads of bureaus or agencies must submit quarterly accomplishment reports to the Ministers concerned, copying the President (Prime Minister), NEDA, Ministry of the Budget, Speaker of the Batasang Pambansa, and Regional Development Council Chair. Annual accomplishment reports include appropriations released, work accomplished, future work needed, and recommendations for appropriation transfers or program changes, submitted to the President with copies to NEDA, Ministry of the Budget, and the Batasang Pambansa.
If any provision is declared unconstitutional, the remaining provisions shall remain in force and continue to be effective.