Prioritization of Projects
- Priority for arterial road projects must consider their development and economic usefulness.
- Focus on roads that:
- Lead to planned growth centers with economic potential.
- Connect regional industrial and tourist centers.
- Access national ports and airports.
- Traverse principal agricultural production areas.
- Link regional and provincial capitals and major urban areas.
- Provide access for emergencies to population centers.
Public Works and Highways Infrastructure Program
- The Department of Public Works and Highways (DPWH) implements prioritized projects involving new construction, reconstruction, improvement, rehabilitation, feasibility studies, engineering, site acquisition, and procurement of resources.
- Emphasis on comprehensive project management including supervision and management services.
Participation of Local Government Units
- DPWH may authorize local government units (LGUs) to carry out projects for local roads and other public works upon congressional request.
- Authorization contingent on LGUs having proven capability to implement such projects.
Programming of Projects
- Annual programming of projects by DPWH must align with approved budget ceilings and policy priorities.
- Projects are coordinated with Senate and House oversight committees.
- Congressional members may propose substitute priority projects if original ones are already funded or less urgent but substitutions must match project category and socioeconomic impact.
- Substitution of projects originally by senators requires written consent from the senator concerned.
Engineering and Administrative Overhead Expenses
- Appropriations must be for direct project implementation costs including engineering and administrative overhead.
- Overhead expenses include salaries for hired personnel, office supplies, and operational costs.
- Overhead costs shall not exceed 4% of the actual project funds released and must be reduced as project cost increases.
Program of Work
- Projects must have prior approval of the program of work by DPWH Secretary or authorized official before implementation.
- The program of work must include work item estimates, quantities, costs, and schedules for implementation and disbursements.
Public Bidding
- Competitive public bidding is the default procurement method for all projects unless otherwise exempted.
- Contracts awarded to the lowest evaluated and most advantageous bidder in accordance with existing laws.
Work by Administration
- Projects costing P20 million or less may be implemented by administration (force account) without bidding, except when prohibited by the President.
- Projects over P20 million can be done by administration only under specified exceptional circumstances such as emergencies, bid failures, contract terminations, or security concerns.
- Prior approval needed from DPWH Secretary or President depending on project cost.
Negotiated Contracts
- Negotiated contracts are generally prohibited except in cases of emergency, bidding failure, contract termination, contiguous project continuation, peace and order concerns, or presidentially authorized national interest.
- Different authority levels for approval depending on cost and implementing agency (DPWH or LGUs).
Publication and Posting of Contracts
- Contracts worth P10 million or more must be published in a newspaper of general circulation and posted publicly in the project locality.
- Publication to include contract details: subject, authorized signatories, materials, time, bidders (if bidding done), and terms.
- Interested parties may access contract information in writing during office hours at their own expense.
Sources of Funding
- Funding to come from DPWH infrastructure appropriations under the General Appropriations Acts and other measures.
- Funding includes loan proceeds, counterpart funds, and foreign grants.
- Multi-year projects require forward obligational authority for contracting covering total project cost.
Reporting Requirements
- DPWH Secretary must submit annual accomplishment reports to the President and congressional leaders detailing appropriations, work accomplished, further plans, and recommendations.
- District engineers must submit quarterly reports to their congressmen and relevant Senate and House committees.
Separability Clause
- If any provision is declared unconstitutional or invalid, the remainder of the Act remains effective.
Repealing Clause
- Laws, decrees, rules, or regulations inconsistent with this Act are repealed or amended accordingly.
Effectivity Clause
- The Act takes effect fifteen days after publication in at least two national newspapers of general circulation.