Title
Penalties for Violations in Govt. Public Works Contracts
Law
Presidential Decree No. 1759
Decision Date
Jan 2, 1981
Presidential Decree No. 1759 penalizes contractors and sub-contractors who violate material provisions of government contracts, including the use of substandard materials, with imprisonment and perpetual disqualification, aiming to address irregularities and protect the interests of the government.

Questions (PRESIDENTIAL DECREE NO. 1759)

To penalize contractors/sub-contractors and erring public officials who violate material provisions of government public works contracts, and to curb irregularities that result in losses to the government.

Violations of any material provisions of contracts involving public works projects of the government, to the prejudice of the government.

Imprisonment from twelve (12) years to life at the discretion of the court, plus perpetual disqualification from participating in any government contracts.

Yes. The offending contractor/subcontractor is liable for the cost of reconstructing the public works project in accordance with the agreed specifications.

The President, General Manager, or any responsible chief executive officer/officers shall be liable.

Any public official who, by reason of duties, consents or permits the contractor/subcontractor to commit the prohibited violations through abandonment or negligence.

Imprisonment from twelve (12) years to life imprisonment and perpetual disqualification to hold any public office.

PD 1759 includes situations where the public official consents, or permits through abandonment or negligence; thus, it does not require proof of active consent alone.

Provisions that relate to substantial/essential requirements of the contract, such as specifications on materials, quality, and quantity of work; violations of these prejudice the government.

Yes. The contractor/subcontractor must violate material provisions “to the prejudice of the government.”

Section 3 provides that any inconsistent provisions of law, decrees, executive orders, or issuances are repealed and/or modified accordingly.

Immediately upon issuance/effectivity (Section 4).

The imprisonment is from 12 years to life imprisonment “at the discretion of the Court,” meaning the court determines the specific term within the range.

It applies to both contractors and subcontractors who violate material provisions of government public works contracts.

Perpetual disqualification from participating in any government contracts and liability for reconstruction costs to comply with agreed specifications.


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