Nature of the Tax on Quarry Sources
- The tax on sand, gravel, and other quarry sources is imposed by provincial legislation under Section 138 of the Local Government Code.
- This tax is a legitimate cost element that bidders must consider when preparing their bids.
Obligation of Bidders to Know and Incorporate Quarry Taxes
- All prospective bidders in public works infrastructure projects of the DPWH that use sand and gravel must be cognizant of provincial tax laws on these quarry sources.
- Bidders are conclusively presumed to have included the cost of these taxes in their unit cost analyses.
- Failure to account for such taxes is at the bidder's own risk and does not entitle them to any claim for additional compensation or relief.
Duty of DPWH Implementing Offices
- Offices responsible for preparing Approved Agency Estimates (AAE) must be aware of and include applicable quarry taxes in the unit costs.
- The inclusion of these taxes ensures that the project budget adequately reflects all costs imposed by local governments.
Legal Effect and Application of the Department Order
- This Department Order takes effect immediately upon issuance.
- It is incorporated as part of the bid and tender documents for all affected projects.
- Ensures transparency and uniformity in how quarry source taxes are treated in public infrastructure projects.