Question & AnswerQ&A (MEMORANDUM ORDER NO.172)
The Contract Implementation Guidelines are based on Republic Act No. 9184, known as the Government Procurement Reform Act.
The memorandum order approves the amendment to Section 4 of Annex D of the IRR-A of RA No. 9184 to include provisions on advance payment for the procurement of goods.
Advance payments shall not exceed fifteen percent (15%) of the contract amount, except in cases otherwise directed by the President or specified in the guidelines.
For contracts involving hotel and restaurant services, use of conference/seminar and exhibit areas, and lease of office space, where down payment is a standard industry practice.
No, prior approval of the President is required for advance payments except those in cases mentioned under sections 4.3 and 4.4 of the guidelines.
Progress payments shall first be charged against the advance payment until it has been fully exhausted unless otherwise approved by the President.
An advance payment not to exceed fifteen percent (15%) of the contract amount is allowed for procurement of goods to address contingencies in areas declared under a State of Calamity.
Presidential Decree 1445 provides the authority that advance payment shall be made only after prior approval of the President.
The Supreme Court declared the joint participation of the Congressional Oversight Committee in the formulation of IRR unconstitutional in the case Macalintal vs. Comelec.
The amendment took effect immediately upon approval on May 19, 2005.