Scope of Covered Public Works Projects
- Covers all public works projects at the national, provincial, city, municipal, and barangay levels.
- Examples include roads, schools, power and water systems, piers, airports, and similar infrastructure projects.
Exclusions and Special Considerations
- Scientific projects of a highly technical nature are excluded.
- Defense and military installations under security requirements are also excluded.
- Public works assigned to engineering battalions of the Armed Forces of the Philippines are excluded.
- If strategic projects excluded above are implemented by private contractors, clearance from the Chief of Staff of the AFP and/or Secretary of the Department of Science and Technology is required.
- In such cases, Section 1 labor requirements still apply.
Notice of Labor Requirements
- Contractors and subcontractors must post notices in conspicuous places as designated by local authorities.
- Notices must be in Filipino, English, or the local dialect.
- Notices must indicate that local residents are needed for labor.
- Applicants must prove residency via voter ID, other reliable ID, or certification from the barangay captain or council member.
- Applicants are required to meet reasonable performance requirements set by the contractor.
Certificate of Compliance
- Contractors and subcontractors must submit a sworn certificate of compliance with labor requirements during every progress billing.
- Certificate must include a list of names of locally hired residents.
- Submission is made to the district, provincial, or city engineer.
Penalties for Non-Compliance
- First offense: Fine of 20,000 Philippine Pesos.
- Second offense: Suspension from participating in public works bidding for one year.
- Third offense: Permanent disqualification from participating in public works bidding.
- Penalty provisions must be included in all contracts between government and private contractors.
Implementing Rules and Regulations
- The Secretary of the Department of Public Works and Highways (DPWH) shall issue implementing rules within 60 days after the law's approval.
- The rules will be developed after consultation with accredited national construction associations and the Secretary of Labor.
Effectivity
- The law takes effect upon complete publication in at least two national newspapers of general circulation.