Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES
Quezon City, Metro Manila

FIFTEENTH CONGRESS

First Regular Session

9A5

House ‘Bill No.

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

The government owes its taxpayers the guaranty that all its expenditures of
public funds will redound to their maximum benefit without incurring any redundant
or superfluous costs.

The prevailing system induces contractors to come up with projects that
meet only the barest of criteria because their obsolescence promotes the
possibility of another contract. The contractor will see its future profits emanating
from projects that have lasted only for the duration of the warranty period.

Under this situation, the general public will be prejudiced twice: First, when
their right to the continued and uninterrupted use of the infrastructure is
interrupted; and second, when the public funds are again used for the repairs,
maintenance works and/or replacement of infrastructures that did not meet its
nominal life expectancy.

This bill seeks to correct this unwarranted situation by raising the standards
in the construction of all public infrastructures. Under this proposed legislation, the
contractor's strict observance to plans and specifications assures him of
maximizing profits. No additional costs will accrue on his part if the project he
finished is compliant with established government standards. The contractor’s
profits thus depend largely on the quality of their work. Conversely, the more
expenses for repairs, maintenance and replacement of the infrastructure projects,
the less profit for the contractors.

Accordingly, both the public as well as the contractors mutually benefit from
this proposal as proper construction of the project will assure them of maximizing
profits and in turn the public continuously uses the infrastructure without the
unnecessary delay and inconvenience caused by faulty and defective
infrastructure.

In view thereof, early considerati¢n and approval of this bill is earnestly
‘sought. ¥

V. UMALI
Representative
Second District, Province of Oriental Mindoro


Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session
09 945
House Bill No.

Introduced by Honorable REYNALDO V. UMALI

AN ACT
REQUIRING THE REGULAR MAINTENANCE AND PRESERVATION OF ALL
PUBLIC INFRASTRUCTURES, ESTABLISHING MECHANISMS FOR ITS
IMPLEMENTATION, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines.in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Public Works Reform Act of
2010,”

SEC, 2., Declaration of Policy. - It is the policy of the State to ensure the
continued and uninterrupted use of all public infrastructures in order to promote the
best interests of the general public. Towards this end, the State shall establish an
effective mechanism for the efficient maintenance and preservation of all public
infrastructures and when demanded by the situation, provide for the immediate
replacement of the public infrastructure with the end in view of maximizing its utility

at no extra costs.

SEC. 3. Definition of Terms. - For purposes of this Act:

(a) Public Infrastructure means any infrastructure built or constructed
through public funds.

(b) Maintenance works means any work necessary to keep the


infrastructure in conformity to the prescribed design and performance

standards, plans and specifications.

(c) Regular and Periodic Inspection means the systematic and regular
examination of the public infrastructure which shall not be less than twice
(2) a year to be conducted by the Bureau of Maintenance (or the
“Bureau’) of the Department of Public Works and Highways (DPWH) for
purposes of determining the state and condition of the infrastructure
versus the plans, specifications and intended lifespan of the

infrastructure.

(d) Contractor means any private entity awarded or contracted to perform

any public infrastructure project.

(e) Proponent means any agency of the National Government, its
departments, bureaus, offices and agencies including government
owned and controlled corporations and Local Government Units
undertaking any public infrastructure project whether through bidding or

any other modes allowed by law.

SEC. 4. Conditions For The Award Of An Infiastructure Project. - In addition to

the legal requirements on contractors awarded any public infrastructure project,

the following conditions shall be included in any contract or agreement covering

the construction of any public

infrastructure. That:

(a) The contractor shall undertake all necessary repair, maintenance and
Preservation works on the infrastructure or when determined by the
Bureau to replace the same at its expense and within the time period

herein provided.


(b) The contractor shall post a performance bond, in such amount as
determined by the DPWH in consultation with the proponent to be
sufficient to cover any repair, maintenance for the entire life of the
infrastructure as well as the possible replacement thereof and such bond
shall be renewed annually. The bond shall be secured from a bonding
company of good standing as certified by the Insurance Commission and
duly accredited by the DPWH .and shall remain in effect during the

projected life of the infrastructure.

SEC. 5. Regular and Periodic Inspection. - The Bureau of Maintenance shall
conduct a regular and periodic inspection of the public infrastructure or whenever
requested by the proponent. The result of the inspection shall be in the form of a

written report and shall be available to the public.

SEC. 6. Contested Report. - In the event the report of the Bureau is contested by
either or both the Proponent and the Contractor, the Bureau of Maintenance may
conduct another inspection in their presence. The findings of the Bureau shall be
appealable to the Secretary of the DPWH within fifteen (15) days from the
issuance or receipt of the findings. The Secretary of the DPWH shall render a
decision within thirty (30) days from receipt of the appeal which shall be final and

executory.

SEC. 7. Repair, Maintenance and Replacement. - All necessary repairs,
maintenance and preservation works including the replacement of the
infrastructure shall commence within a reasonable time as determined by the
Bureau or the Secretary of the DPWH but in no case beyond thirty (30) days from
Notice to the contractor to do any of the above undertakings. Unless, for reasons of
force majeure or fortuitous event and an extension is requested by the contractor

and approved by the Bureau or the Secretary of the DPWH, all works required to


be done shall be completed within the period set by the Bureau or the Secretary of
the DPWH. A schedule of work and timetable shalll be issued by the Bureau or the
Secretan of the DPWH to prevent unwarranted disruption or inconvenience to the

general public.

SEC. 8. Penalties. - Unjustified failure by commence and complete the necessary
repairs, the contractor to maintenance and preservation works or its replacement
within the periods specified in Section 7 above shall be sufficient grounds for the
immediate forfeiture by the Bureau of the performance bond in favor of the
proponent. The proceeds thereof shall be earmarked by the proponent for the
repair, maintenance and replacement of the infrastructure project for which the
bond was posted. Additionally, any and/or all of the Contractors officers as well as
their assigns and transferees, shall be permanently disqualified from undertaking
any public infrastructure projects without prejudice to any other actions that may be

instituted against them individually or solidarily under existing laws.

SEC. 9. Implementing Rules and Regulations. - A committee composed of one
(1) representative each from the Department of Public Works and Highways
(DPWH) who will act as the chairman, the Department of Interior and Local
Governments (DILG), the Department of Finance (DOF) and the National
Economic and Development Authority (NEDA) shall within sixty (60) days from the
effectivity of this Act, formulate and prescribe the necessary rules and regulations

to implement and carry out the provisions of this Act.

SEC. 10. Separability Clause - If any provision of this Act shall be declared
unconstitutional, the other provision not affected thereby shall remain in full force

and effect.

SEC. 11. Repealing Clause - All laws, decrees, issuances, orders, rules and

regulations, or parts thereof inconsistent with this Act are hereby repealed or


amended accordingly.

SEC. 12. Effectivity - This Act shall take effect fifteen (15) days after its publication

in at least two (2) newspapers of general circulation.

Approved,