Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1764)
All contracts with a total value exceeding $5 million proposed to be entered into by the Government require compliance with competitive bidding regulations.
The decree primarily addresses contracts for the design, procurement or manufacture, installation, testing and commissioning of industrial plants or any part thereof.
They must incorporate uniform general terms and conditions designed to secure optimum protection of the Government’s interests and ensure efficient and economical realization of the project.
Yes, they may be modified on a contract-to-contract basis by adding particular terms and conditions as reasonably necessary considering specific project features and financial and commercial circumstances.
Government includes the Republic of the Philippines and all its ministries, bureaus, offices, commissions, agencies, instrumentalities, government-owned or controlled corporations and their subsidiaries or affiliates, regardless of whether they are exercising proprietary or governmental functions or acting alone or in joint venture with the private sector.
No, it also applies to contracts entered into by private persons or entities if such projects obtain financing or financial guarantees from the Government.
Such contracts shall be disapproved by responsible officials and if approved regardless, they shall be unenforceable as against the Government or the local private contracting party, without prejudice to penalties against responsible government officials.
All provisions inconsistent with this decree are repealed or modified accordingly.
It takes effect ten (10) days after publication either of the competitive bidding regulations or the uniform general terms and conditions of contract, whichever comes earlier.