Authority, legal basis, and relation to prior issuances
- DPWH Department Order No. 41, s. 2011 amends DPWH Department Order No. 10, s. 2009.
- The allocation framework is issued in accordance with Section 6, Special Provisions of GAA FY 2011.
- The Order is consistent with the Department’s commitment to fast-track infrastructure project implementation and timely completion, including for both foreign-assisted and locally-funded projects.
- The Order recognizes the active participation of District Engineering Offices in implementing Centrally/PMO- and Regionally-managed projects.
Policy and purpose statement
- The Order is issued to ensure proper allocation of authorized Engineering and Administrative Overhead (EAO) deductions from project funds.
- The Order is directed toward fast-tracking infrastructure project implementation and timely completion of projects.
- The Order is designed to align EAO deductions allocation with GAA FY 2011 Special Provisions and the FY 2011 DPWH Infrastructure Program structure.
Authorized EAO deductions—overall rule
- The Order authorizes Engineering and Administrative Overhead (EAO) expenses allocation through deductions/retentions from project funds under the FY 2011 DPWH Infrastructure Program framework.
- The deduction/retention percentages operate as a breakdown of allocation among the Central Office (CO)/PMO, Regional Office (RO), and District Engineering Office (DEO), depending on project type and implementing office.
- The Order maintains the authorized 3% deductions concept by setting corresponding allocation totals of 3.00% for each listed category.
- The Order provides a project cost threshold below which EAO expenses are not authorized.
Foreign-assisted projects allocation
- For foreign-assisted projects, the percentage allocation of deductions/retentions from project fund is:
- Central Office (CO)/PMO: 2.25%
- Equipment: 0.25%
- Reg. Office (RO): 0.25%
- District Engineering Office (DEO): 0.25%
- TOTAL: 3.00%
- The CO/PMO allocation for foreign-assisted projects is fixed at 2.25% of project fund deductions/retentions.
Locally-funded projects—directly released to Central Office
- For locally-funded projects (directly released to the Central Office), the implementing office allocation is:
- Central Office (CO): 2.50%
- Regional Office (RO): 0.25%
- District Engineering Office (DEO): 0.25%
- TOTAL: 3.00%
- The allocation applies based on the direct release category stated in the Order.
Locally-funded projects—RO-implemented, DEO-implemented
- For locally-funded projects directly released to the Regional Offices and District Offices, implementing-office-based allocations apply, with authorized deductions/retentions capped by category:
- Regional Offices are authorized to deduct not more than 2.5%
- District Offices are authorized to deduct not more than 2.00%
- For RO-implemented locally-funded projects, the breakdown is:
- Regional Office (RO)-implemented: 1.0%
- District Engineering Office (DEO): 1.75%
- Central Office/PMO: 0.25%
- TOTAL: 3.00%
- For DEO-implemented locally-funded projects, the breakdown is:
- Regional Office (RO): 1.0%
- Central Office/PMO: 0.25%
- District Engineering Office (DEO)-implemented: 1.75%
- TOTAL: 3.00%
Locally-funded projects—applies only to certain directly released cases
- The Order provides an additional locally-funded allocation breakdown that shall apply only to locally-funded projects for projects directly released to the Regional Offices and District Offices.
- For RO-implemented in this directly released locally-funded category, the allocation is:
- Regional Office (RO)-implemented: 2.00%
- District Engineering Office (DEO): 0.50%
- TOTAL: 2.50%
- For DEO-implemented in this directly released locally-funded category, the allocation is:
- Regional Office (RO): 2.0%
- District Engineering Office (DEO)-implemented: 2.0%
- TOTAL: 2.0%
- The applicable allocations in this section are limited to the locally-funded scenario expressly described.
Threshold for authorization and project cost limit
- Engineering and administrative overhead expenses are not authorized for infrastructure projects costing Five Million Pesos (P5,000,000) and below.
Supersession and compliance effect
- DPWH Department Order No. 41, s. 2011 supersedes all previous issuances to the contrary.
- The Order is effective immediately, and its amended allocation rules govern EAO expense deductions/retentions consistent with the stated categories.