WHEREAS,
for the implementation of the Government's priority industrial
programs, competitive bidding is essential to ensure that only the most
suitable and cost efficient industrial plants and technology are
acquired and that the foreign exchange reserves of the Philippines are
prudently utilized in the acquisition of such plants and technology and
not diverted to unauthorized or illegal uses;chanroblesvirtualawlibrary
WHEREAS, uniform general terms and conditions of contracts, carefully
designed for the optimum protection of the interests of the owner of
the project, should be very useful means for the coordinated and
efficient implementation of the Government's priority industrial
programs. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree as part of the law of the land
the following:cralaw:red
Section 1. All contracts, with the total value
exceeding $5 million, proposed to be entered into by the Government for
the design, procurement or manufacture, installation, testing and
commissioning of industrial plants, or any part thereof, shall be
awarded only after compliance with competitive bidding regulations to
be issued and promulgated by the Ministry of Industry, after approval
of the President of the Philippines. chanroblesvirtualawlibrary
Section 2. All contracts referred to in Section 1
hereof shall, in addition, incorporate as integral parts thereof
uniform general terms and conditions designed to secure optimum
protection of the interests of the Government as owner of the
industrial project concerned, and the realization of such project in
the most efficient and economical way possible. Such general terms and
conditions may, however, be modified on a contract-to-contract basis by
the addition of such particular terms and conditions as may be
reasonably necessary in the light of the specific features of an
individual industrial project and the financial and commercial
circumstances surrounding such project. The Ministry of Industry shall
issue and promulgate, with the approval of the President of the
Philippines, one or more sets of uniform general terms and conditions
to be incorporated in differing prevailing types of contracts
including, without limitation, lump sum turnkey contracts with or
without an escalable local currency component, and cost-plus contracts.
Section 3. For purposes of this Decree, "Government"
shall mean the Government of the Republic of the Philippines, but shall
include ministries, bureaus, offices, commissions, agencies or
instrumentalities thereof, and government-owned or controlled
corporations as well as subsidiaries or affiliates thereof, whether
exercising proprietary or governmental functions or otherwise, and
whether acting on their own or in joint venture with the private sector.
Section 4. The provisions of this Decree shall apply
not only to contracts to be entered into by the Government, but also to
contracts to be entered into by private persons or entities where
financing or financial guarantees for the projects concerned are
obtained from the Government.
Section 5. All contracts which are subject to the
provisions of this Decree, but which are entered into without
compliance with competitive bidding regulations in effect, or without
incorporating the applicable general terms and conditions, shall be
disapproved by responsible officials, and if such contracts are
nonetheless approved by such government officials, shall be
unenforceable as against the Government, or the local private
contracting party, as the case may be, without prejudice to the
application of penalties provided by law against the responsible
government officials.
Section 6. All provisions of existing laws, decrees,
orders, letters of instructions, administrative issuances, rules or
regulations inconsistent with the provisions of this Decree are hereby
repealed or modified accordingly.
Section 7. This Decree shall take effect ten (10)
days after the publication in the Official Gazette or in a newspaper of
general circulation in Metropolitan Manila, whichever comes earlier, of
(a) the competitive bidding regulations referred to in Section 1
hereof; and (b) with respect to the particular type or types of
contracts concerned, the uniform general terms and conditions of
contract referred to in Section 2 hereof.
Done in the City of Manila this
11th day of January in the year of Our Lord, nineteen hundred and
eighty-one.
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