Regulating Public Work Contracts Preference

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Commonwealth Act No. 541: Regulating Public Work Contracts Preference

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Title Supreme Court: Regulating Public Work Contracts Preference

Law: Commonwealth Act No. 541

Decision Date: May 26, 1940

Commonwealth Act No. 541 regulates the awarding of contracts for public works in the Philippines, giving preference to Filipino or American contractors and domestic entities, with an exception for national defense-related projects, and providing clear definitions of terms for consistent interpretation.

public works construction

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Definitions Relevant to Contract Awards

Filipino or American contractor: A citizen of the Philippines or the United States who is habitually established in business and engaged in general construction work.
Domestic entity: A corporate or commercial company duly organized and registered under Philippine laws with at least 75% of its capital owned by citizens of the Philippines or the United States, or both.
Domestic bidder: Any Filipino or American contractor or domestic entity bidding for government public work or repair contracts as per the provisions in the Act.
Foreign bid: Any bid submitted by contractors or entities not classified as Filipino, American, or domestic entities under the above definitions.

Effectivity

The Act became effective immediately upon its approval on May 26, 1940.

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