Title
Guidelines for Blacklisting Public Contractors
Law
Neda
Decision Date
Sep 17, 1997
The National Economic and Development Authority (NEDA) establishes uniform guidelines for blacklisting contractors involved in public construction, detailing administrative sanctions for violations during prequalification, bidding, and contract implementation to ensure accountability and standardization across government infrastructure projects.

Scope of the Guidelines

  • Applies to blacklisting constructors involved in government infrastructure projects.
  • Covers offenses during prequalification, bidding, and contract implementation phases.
  • Includes joint ventures and consortia with sanctions accrued to both the entity and its member constructors.

Definitions

  • Constructor: Any person or entity licensed by the Philippine Contractors Accreditation Board (PCAB) engaging in infrastructure projects.
  • Infrastructure Projects: Include roads, airports, railways, ports, flood control, water supply, irrigation, buildings, communication, dredging, power plants, and related constructions.
  • Government-Level Blacklisted Constructor: One suspended or disqualified by a government tendering agency or included in the CIAP consolidated blacklist, barred from participation for a specified period.

Criteria for Blacklisting During Prequalification, Bidding, and Award

  • Offenses Leading to Sanctions:
    • Misrepresentation or concealment of material facts, falsification, license lending.
    • Bid rigging or collusion indicated by identical bids or estimates.
    • Acts defeating public bidding purpose.
  • Sanctions:
    • Suspension (1 year for first offense), disqualification (2 years for second), perpetual disqualification thereafter.
  • Other Offenses and Sanctions:
    • Non-submission of bids: suspension (6 months), then disqualifications.
    • Unjustified failure to accept award, non-submission of required documents, refusal to sign contracts: forfeiture of bid security, suspension, or disqualification progressively.

Criteria for Blacklisting During Contract Implementation

  • Sanctions escalate with repeated offenses: from forfeiture of performance security to multi-year disqualifications or perpetual disqualification.
  • Offenses Include:
    • Failure to mobilize/start work as per Notice to Proceed (NTP).
    • Non-compliance with contractual obligations without valid cause.
    • Failure to follow lawful instructions regarding supervision, safety, materials handling, equipment deployment, performance security renewal.
    • Unauthorized subcontracting.
    • Poor performance based on Constructor's Performance Evaluation System (CPES) or agency monitoring.
    • Willful abandonment without lawful excuse results in serious sanctions.
  • Agencies may undertake unfinished works or reassign contracts in offense cases.

Due Process and Procedure for Blacklisting

  • Verification conducted by Prequalification, Bid and Award Committee (PBAC) or Project Management Office (PMO), completed within 15 calendar days.
  • Legal Office notifies constructor to answer within 15 calendar days; a hearing officer schedules hearings with constructors association representatives as observers.
  • Agency Head/Board decides sanctions after merit-based deliberation; sanctions commence as specified in decisions.
  • Blacklisting status pending decision allows participation until final ruling; prior decisions prevent award grants.
  • Multiple offenses are penalized separately.
  • Notifications of decisions sent to constructors and CIAP within 7 calendar days.

Measures for Delisting

  • Automatic lifting of blacklisting upon serving sentence or by court/appellate order.
  • Conditional delisting requires constructor’s request and settlement of all liabilities.
  • Perpetual disqualification is final with no delisting possible.

Information Sharing and Networking

  • Agencies must submit authenticated Blacklisting and Delisting Orders to CIAP within 7 calendar days.
  • Complaints elevated to PCAB require detailed documentation in triplicate with affidavits.
  • CIAP prepares quarterly consolidated blacklisting reports, including PCAB license revocations, and disseminates to relevant agencies and COA.
  • Reports remove those whose sanctions have ended or been lifted.

Applicability

  • Applies to all national government agencies, instrumentalities, and government-owned and controlled corporations (GOCCs) handling infrastructure contracts.

Effectivity

  • Effective upon approval by the NEDA Committee on Infrastructure and fifteen (15) days after publication by CIAP.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.