Law Summary

Long-Range Program of Capital Improvements

• Legal Provision: Appropriation of funds from the National Treasury for public works.
• Key Definitions: "General funds" refers to available funds in the National Treasury not otherwise appropriated.
• Important Requirements: Funds are to be used as outlined in subsequent sections.

Short-Term Projects

• Legal Provision: Additional appropriations from the General Fund for short-term projects.
• Key Definitions: "Short-term projects" are defined as projects requiring immediate funding.
• Important Requirements: Details for specific appropriations are itemized in the document.

Public Works Projects Financed from Bond Issues

• Legal Provision: Appropriations from bond sales or loans negotiated under existing laws.
• Key Definitions: "Bond issues" refer to funds raised through the sale of government bonds.
• Important Procedures: Projects are to be executed upon recommendation of the National Economic Council and the Council of State.

Apportionment of Portworks Special Fund

• Legal Provision: Distribution of funds accrued from the Portworks Special Fund for public works.
• Important Requirements: Funds released by the Secretary of Public Works and Communications.

Program of Work Required Before Prosecuting Public Works

• Legal Provision: Requirement for a detailed program of work before commencing any public works project.
• Key Definitions: "Program of work" includes cost estimates, equipment lists, and timelines.
• Important Requirements:
  • Approval is required for projects over ₱15,000.
  • Submission of the program to the Auditor General is mandatory.

Rental of Equipment

• Legal Provision: Guidelines for payment of equipment rental related to public works.
• Important Requirements:
  • Payments based on actual use for appropriations of ₱20,000 or less.
  • Maximum deduction of 10% for rentals if over ₱20,000.

Recognition of Civic Organization in Community Improvement Projects

• Legal Provision: Civic organizations can undertake projects with allocations of ₱15,000 or less.
• Key Definitions: "Civic Organization" refers to local groups eligible to implement community projects.
• Important Requirements:
  • Projects can be awarded through negotiated contracts without department head approval.
  • Bidding for contracts must be conducted with public disclosure.

Prohibition in the Use of Sums Appropriated Herein

• Legal Provision: Restrictions on the use of appropriated funds.
• Important Requirements:
  • Funds cannot be used for prior obligations, office supplies, or salaries of non-project personnel.

Suspension of Work Done by Administration Before General Elections

• Legal Provision: Prohibition on public works expenditure prior to elections.
• Important Timeframes: 45 days before elections; exceptions for maintenance and emergency work.
• Consequences: Violations constitute a serious offense under the Revised Election Code.

Payment of Labor and Readjustment of Contracts

• Legal Provision: Contractors must maintain a labor fund for timely wage payments.
• Important Requirements:
  • Payments must be certified by an engineer.
  • Failure to pay allows the government to cover costs with a surcharge on the contractor.

Preference to Local Labor

• Legal Provision: Local labor preference for community and school projects.
• Important Requirements: Projects should be executed preferably by local workers under supervision.

Use of Excess Funds; Inadequate Funds

• Legal Provision: Guidelines for handling surplus or inadequate project funds.
• Important Requirements: Surplus can be reallocated; projects deemed inadequate will not proceed.

Publication of Call for Bids in Newspaper

• Legal Provision: Simplified bidding process for public works projects.
• Important Requirements: Advertisement in a newspaper of general circulation suffices for compliance.

Project Sites

• Legal Provision: Appropriations cover the acquisition of project sites as necessary.

Hydro-electric Installations in Irrigation Canals

• Legal Provision: Inclusion of hydroelectric installations in irrigation project appropriations.

Purchase of Materials, Equipment, and Supplies

• Legal Provision: Department heads may procure necessary materials without surcharges.

Engineering Surcharge

• Legal Provision: Limits on surcharges for public works appropriations.

Public Works Appropriations under This Act Are National Disbursing Funds

• Legal Provision: Funds are treated as national disbursing funds unless designated otherwise.

Release of Public Works Appropriations

• Legal Provision: Appropriations released in lump sums by the Commissioner of the Budget.

Reports

• Legal Provision: Mandate for regular reporting to Congress on project appropriations and progress.

Effectivity

• Legal Provision: The Act takes effect upon approval, except for specific provisions.

Key Takeaways

• Republic Act No. 2701 appropriates funds for public works and establishes detailed procedures for project management and funding.
• Emphasis on local labor, community involvement, and strict guidelines on fund usage and project execution.
• Enhanced accountability measures include required reporting and structured bidding processes to ensure transparency.