Title
Applicability of Amended IRR of PD 1594
Law
Dpwh Circular No. 88
Decision Date
Jul 26, 1990
Fiorello R. Estuar's directive establishes that the amended Implementing Rules and Regulations of PD 1594 apply to all government infrastructure contracts bid out after March 15, 1990, while previous rules govern earlier bids, explicitly excluding lump sum "pakyaw contracts."

Legal basis: IRR of PD 1594

  • DPWH Circular No. 88 bases its guidance on Part IV, paragraph 1 of the amended IRR of P.D. 1594, approved in January 1990.
  • DPWH Circular No. 88 ties contract applicability to the dissemination and effectivity timing of the amended IRR by the National Economic and Development Authority (NEDA), Committee on Infrastructure (INFRACOM).
  • DPWH Circular No. 88 treats the amended IRR as prospective in application based on the governing transitional clause in Part IV, paragraph 1.

Policy and prospective effectivity

  • The amended IRR rules in Part IV, paragraph 1 of the P.D. 1594 IRR, as treated under DPWH Circular No. 88, apply to future procurements after a defined period from dissemination.
  • DPWH Circular No. 88 provides that there is no room for doubt that the amended IRR governs prospectively.
  • For contracts bid out before the amended IRR effectivity date, the previous IRR governs.

Scope: covered government construction contracts

  • The amended IRR governed contracts cover all contracts for infrastructure and other construction projects.
  • Coverage extends to all government agencies, including government owned or controlled corporations and other instrumentalities.
  • The applicability depends on when the contract is bid out, measured from the dissemination/effectivity timeline of the amended IRR.
  • The amended IRR does not apply to a specific procurement type: lump sum “pakyaw contracts.”

Applicability rule: timing from dissemination

  • The amended IRR applies to covered contracts for infrastructure and construction projects that will be bid out after ten (10) days from date of dissemination of the amended IRR.
  • DPWH Circular No. 88 states that the dissemination of the amended IRR was completed on 15 March 1990.
  • Contracts bid out after 15 March 1990, or starting 16 March 1990, are governed by the amended IRR.
  • For contracts bid out before the effectivity of the amended IRR, the previous implementing rules and regulations apply.

Exemption: lump sum “pakyaw contracts”

  • The amended IRR expressly shall not apply to lump sum “pakyaw contracts.”
  • DPWH Circular No. 88 treats this exclusion as part of the applicability framework under Part IV, paragraph 1 of the amended IRR.
  • lump sum “pakyaw contracts” are therefore outside the amended IRR coverage regardless of the bidding date rule governing other contracts.

Supersession and conflict control

  • DPWH Circular No. 88 supersedes Department Memorandum Circular No. 73, s. 1990.
  • DPWH Circular No. 88 supersedes any issuance in conflict with its governing applicability rule on the amended IRR of P.D. 1594.
  • The guidance in DPWH Circular No. 88 controls the effective date application: amended IRR for covered contracts starting 16 March 1990.

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