QuestionsQuestions (PRESIDENTIAL DECREE NO. 1948 [1])
To increase the cost (capital outlay) ceiling for “pakyaw” contracts for public works from P50,000 to P500,000, thereby encouraging wider citizen participation and addressing increased labor and materials costs.
It is a bayanihan-inspired arrangement where workers contribute a common capital and render services cooperatively, with the undertaking of public works by a labor-intensive method.
From fifty thousand pesos (P50,000) to five hundred thousand pesos (P500,000) per contract.
PD 950 (and it is also stated to further amend Sec. 1917 of the Revised Administrative Code, as amended by PD 950).
Yes. PD 1948 provides that the per-contract ceiling is P500,000 unless an increased amount is authorized by the President.
The decree authorizes the ministry heads to enter into negotiated pakyaw contracts. It also allows bureau and agency heads and regional directors to enter into negotiated pakyaw contracts subject to prior authority by the concerned ministry head.
They may enter into negotiated pakyaw contracts only subject to prior authority by the ministry head concerned.
The existing ceiling in PD 950 (P50,000) has become impractical and obsolete due to increased costs of services (labor) and/or construction materials, and to promote active citizen participation.
It operates as a general repealing/modifying clause: any inconsistent provisions in prior laws, rules, or regulations are repealed or modified to conform with PD 1948.
It takes effect immediately upon issuance.
It describes pakyaw contracts as public works undertakings aligned with bayanihan, where citizens/workers cooperate by pooling capital and providing services.
It indicates that the President issued the decree under constitutional authority, which may affect how its validity is assessed (e.g., during constitutional or administrative-law review).
It suggests that raising the capital outlay ceiling supports labor-intensive public works and makes pakyaw arrangements more viable under current economic conditions.
Because PD 1948 specifically sets the maximum permissible amount of capital outlay per pakyaw contract, serving as a regulatory financial threshold for implementing public works via the pakyaw system.
Prior authority must be obtained from the concerned ministry head.