Policy, purpose, and rationale
- The decree promotes the “Pakyaw” system as an effective method for undertaking public works projects through the labor-intensive bayanihan spirit.
- It recognizes “Pakyaw” contracts as undertakings where workers contribute a common capital and render services cooperatively.
- It responds to increased service and construction material costs that make earlier ceilings impractical.
- It revises the existing cost ceiling to encourage more active citizen participation in infrastructure projects.
Legal basis and relationship to prior law
- Presidential Decree No. 1948 amends Presidential Decree No. 950 by increasing the capital outlay limit for “Pakyaw” contracts.
- It further amends Section 1917 of the Revised Administrative Code, as amended by P.D. 950.
- The decree repeals or modifies inconsistent laws, rules, and regulations to the extent of the inconsistency.
Revised capital outlay limit per “Pakyaw” contract
- It increases the limit of capital outlay for “Pakyaw” contracts for public works projects from PHP 50,000 to PHP 500,000 per contract.
- The new ceiling applies unless an increased amount is authorized by the President.
- The increased ceiling is authorized as an amendment to the capital outlay authorization under P.D. 950.
Authority to enter negotiated “Pakyaw” contracts
- The ministry heads are authorized to enter into negotiated “Pakyaw” contracts within the framework of the increased capital outlay limit.
- Bureau and agency heads and regional directors may enter into negotiated “Pakyaw” contracts, subject to prior authority by the ministry head concerned.
- Negotiated “Pakyaw” contracts are for public works projects under the labor-intensive cooperative bayanihan framework.
Effectivity and repeal/transition rules
- It takes effect immediately upon issuance.
- All laws, rules, and regulations inconsistent with the decree are repealed or modified accordingly.