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.