PNP Permit to Transport Firearms Guidelines

Section 1 requires any person, partnership, or corporation entering into a formal contract with the Government of the Philippine Islands for construction, prosecution and completion, or repairs upon public works to comply with the penal bond requirement.
The covered contracts include those for:
- construction of any public building;
- prosecution and completion of any public work; and
- repairs upon any public building or public work.
The bond obligation applies to the contractor and extends to sub-contractors for purposes of promptly paying labor and materials suppliers.

Section 1 requires covered Government contractors to execute the usual penal bond with good and sufficient sureties before commencing the work.
The penal bond carries an additional obligation that the contractor or his or its sub-contractors shall promptly make payments to persons supplying labor and materials for the prosecution of the work covered by the contract.
The Act grants enforceable rights to suppliers whose payment for labor and materials used in the project has not been made.

Section 1 grants any person, company, or corporation that furnished labor or materials used in the public building or public work, and whose payment remains unpaid, the right to intervene and be made a party to any action instituted by the Government of the Philippine Islands on the contractor’s bond.
The intervenors’ rights and claims are adjudicated in that action and in the judgment rendered thereon, subject to the priority of the Government’s claim and judgment.
If the surety’s total bond liability is insufficient to satisfy all intervenors:
- the surety must first pay the full amount due the Government; and
- the remaining amount is distributed pro rata among the intervenors.

Section 1 requires the Government to sue on the bond within six months from the completion and final settlement of the contract; otherwise, or if the Government expressly waives its right to institute action on the bond, suppliers may pursue the bond directly.
Upon application, suppliers must provide an affidavit to the department under the direction of which the work has been prosecuted stating that labor or materials were supplied for the work and that payment has not been made.
Suppliers are entitled to receive a certified copy of the contract and bond.
Suppliers may bring suit in the name of the Government of the Philippine Islands in the Court of First Instance in the district in which the contract was to be performed and executed, and not elsewhere, for their use and benefit against the contractor and the sureties.
Section 1 also authorizes prosecution of the suit to final judgment and execution.

Section 1 imposes a condition precedent when the suit is brought by creditors:
- it shall not be commenced until after the complete performance of the contract and final settlement.
Section 1 requires that creditor suits be commenced within one year after the performance and final settlement of the contract, and not later.
If multiple creditors are involved:
- only one action shall be brought; and
- any creditor may file a claim and be made a party within one year from the completion of the work and final settlement, and not later.

Section 1 provides that when recovery on the bond is inadequate to pay the amounts found due to all creditors:
- judgment is rendered for each creditor pro rata of the amount of the recovery.

Section 1 allows the surety to pay into court the full amount of the surety’s liability—namely, the penalty named in the bond—less any amount the surety already had to pay to the Government due to execution of the bond.
Once the surety makes this deposit for distribution among claimants and creditors, the surety is relieved from further liability.

Section 1 requires that in all suits instituted under the Act:
- personal notice of the pendency of the suits be given to all known creditors, informing them of their right to intervene as the court may order.
Section 1 also requires notice by publication in a newspaper of general circulation published in the province or town where the contract is being performed:
- for at least three successive weeks; and
- with the last publication at least three months before the time limited therefor.

Section 2 repeals all acts or parts of acts inconsistent with the provisions of Act No. 3688.