Question & AnswerQ&A (DPWH DEPARTMENT ORDER NO. 109)
The main responsibility of a prospective bidder is to determine and satisfy himself about all matters pertaining to the project, such as availability of materials, location and extent of aggregate sources, and other factors that may affect the cost, duration, and execution of the work, including taxes imposed on sand, gravel, and other quarry sources.
Section 138 of the Local Government Code empowers provinces to impose taxes on sand, gravel, and other quarry sources by passing local laws.
It is conclusively presumed that prospective bidders have knowledge of the taxes imposed by the provincial government and have incorporated these taxes into their unit cost analysis.
Bidders who fail to include these taxes do so at their own risk and are not entitled to any relief.
Implementing Offices are obliged to have knowledge of the existence of these taxes in the province where the project is implemented and should include these taxes in the Approved Agency Estimate (AAE) unit cost.
This Department Order took effect immediately upon its adoption on May 4, 1993.
It includes taxes on sand, gravel, and other quarry sources imposed by the province pursuant to the Local Government Code.
It is imposed by the provincial government through a law passed by the province.
Yes, this Department Order forms part of the bid/tender documents and requires the inclusion of these taxes.
Bidders are conclusively presumed to have incorporated costs for taxes on quarry sources, and failure to do so means they cannot claim adjustments or relief for additional costs arising from these taxes.