Penalties for Violations in Govt. Public Works Contracts

The decree addresses violations where government public works projects are constructed below specifications on materials, quality, and quantity of work.
The decree is enacted to curb flagrant irregularities in the prosecution and execution of government public works projects.
The decree targets conduct that causes the government tremendous losses through violations of substantial contractual requirements.

Section 1 covers contractors and sub-contractors who violate any material provisions of contracts involving public works projects to the prejudice of the government.
Section 2 covers public officials who, by reason of their official duties, consent to violations or allow them through abandonement or negligence.
The decree applies to violations that relate to material provisions of the government’s public works contracts.

Section 1 imposes imprisonment of from twelve (12) years to life imprisonment at the discretion of the Court for contractors and subcontractors who commit the prohibited violations.
Section 1 further imposes perpetual disqualification from participating in any government contracts.
Section 1 requires the offending contractor or subcontractor to be liable for the cost of reconstructing the public works project in accordance with the specifications agreed upon.
Section 1 provides that in cases of corporations, partinerships, or associations, the President, General Manager, or any responsible chief executive officer/officers shall be liable.

Section 2 imposes imprisonment of from twelve (12) years to life imprisonment on public officials who consent to, or through abandonement or negligence permit, the contract violations.
Section 2 imposes perpeteal disqualification to hold any public office on such public officials.

Section 3 repeals and/or modifies any provisions of law, decrees, executive orders, or issuances inconsistent with Presidential Decree No. 1759.
Section 4 makes the decree effective immediately.