DPWH DEPARTMENT ORDER NO. 114

: The main purpose is to ensure that funds are available to meet escalation of construction costs due to inflation.
: The built-in provision for price escalation contingencies must not exceed 12% per annum, based on price indices and projected inflation rates.
: A 5% contingency portion is also required in addition to the 12% price escalation contingency.
: The amount allocated for price escalation shall be obligated with the support of a separate Request for Obligation Authority (ROA).
: Yes, a separate CAF shall be prepared for the price escalation funds.
: Unused obligation for price escalation may be used to pay other unpaid claims of the contractor for the same project; otherwise, it shall revert to the unappropriated surplus.
: Unobligated allotments of a completed project shall be used to cover any deficiency for price escalation of the same project not covered in the original contract through additional obligation or CAF.
: It may be sourced from savings of other projects in accordance with the provisions of the General Appropriations Act.
: No, it is an addition to the provisions of Department Order No. 36 series of 1989.
: It was adopted on 8 May 1991.