FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
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Introduced by Senator Antonio “Sonny” P. ‘Trillanes IV 
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EXPLANATORY NOTE 
Infrastructure development plays a vital role in shaping our country’s economy. Improved 
infrastructure in the country would help us attract more investors to invest in our country which 
would then lead to a more productive and prosperous economy. Annually, the government 
allocates a substantial portion of its money to public works projects. However, the huge amount 
of money allocated for these projects are often vulnerable to anomalous acts such as substandard 
work and the use of substandard materials. 
PD 1759 was signed in 1981 to prevent construction of public facilities that are substandard, as 
well as the use of materials that have poor quality. PD 1759 also imposes sanctions on violations 
of its provisions. 
This bill seeks to strengthen PD No. 1759 by increasing the penal sanctions on the violations of 
the provision of this law from a minimum imprisonment of twelve (12) years to twenty (20) 
years. It also includes the use of premature deterioration of public works structure as prima faeie 
evidence in determining the violation of the provisions of this law. 
In view of the foregoing, immediate approval of this measure is earnestly sought 
AN *=?tl- 0 
“SONNY” .TFULLANESIV 
Senator 
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FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHEIPPlP+TES 
Second Regular Session 
) 
SENATE 
AN ACT 
INCREASING 
THE 
PENALTIES 
IMPOSED 
AGAINST 
CONTRACTORS 
AND 
SUBCONTRACTORS WHO VIOLATE ANY MATERIAL PROVISION OF CONTRACTS 
INVOLVING PUBLIC WORKS PROJECTS OF THE GOVERNMENT, AND PUBLIC 
OFFICIALS WHO ALLOW SUCH VIOLATIONS, AMENDING POR THIS PURPOSE 
PRESIDENTIAL DECREE NO. 1759 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Section 1 of Presidential Decree No. 1759, is hereby amended to read as 
follows: 
“Section 1. - Any provisions of the law contraty notwithstanding, contractors and 
sub-contractors who violate any material provision[s] of contracts involving public works 
projects, either as to materials, quality and quantity of work, resulting [to the] IN 
prejudice [of the] TO T I E  government, shall suffer the penalty of IMPRISONMENT 
RANGING from [twelve (12) TWENTY (20) years to life [imprisonment], A FINE 
RANGING FROM FIFTY PERCENT (50%) TO TWO HUNDRED PERCENT (200%) 
OF THE AMOUNT OF THE CONTRACT, [at the discretion of the Court,] and shall, in 
addition, suffer [perpetual disqualification from participating in any government 
contracts.] IPSO FACTO REVOCATION OF THEIR CONTRACTOR’S LICENSES 
INCLUDING THE PROFESSIONAL LICENSES OF EXECUTIVES IN CHARGE OF 
THE DESIGN AND CONSTRUCTION OF THE PROJECT. 
The offending contractor or sub-contractor shall further be liable for the cost of 
reconstructing such public works project in accordance with the specifications agreed 
upon. 
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In case of corporations, partnerships or associations, the President, General 
Manager or any responsible chief executive officer/ officers shall be liable. 
ANY PROPRIETORSHIP, CORPORATION, PARTNERSHIP, ASSOCIATION, 
OR BUSINESS ORGANIZATION WHOSE PROPRIETOR, STOCKHOLDER, 
PARTNER, MEMBER OR OFFICER IS RELATED WITHIN THE FOURTH DEGREE 
OF CONSANGUINITY OR AFFINITY TO THE PERSON CONVICTED OF 
VIOLATION OF ANY OF THE ACTS PUNISHABLE UNDER THIS ACT IS 
PROHIBITED FROM PARTICIPATING IN SAID GOVERNMENT CONTRACT. 
THE PREMATURE DETERIORATION OF ANY PUF3LIC WORKS PROJECT 
SHALL CONSTITUTE PRIM FACIE EVIDENCE OF VIOLATION OF THE ACTS 
PUNISHABLE UNDER THE FIRST PARAGRAPH OF THIS SECTION. THE 
SECRETARY OF THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS IS 
HEREiBY MANDATED TO PROMULGATE THE NECESSARY IMPLEMENTING 
RULES AND REGULATIONS TO EFFECTIVELY CARRY OUT THE INTENT OF 
THE PROVISIONS OF THIS PARAGRAPH.” 
SEC. 2. - Section 2 is amended to read as follows: 
“Any public official who, by reason of the duties of his office, shall consent, or 
through abandonment or negligence, permit the contractor or subcontractor to commit 
[the violations mentioned in Section 1 hereof,] ANY OF THE ACTS PUNISHABLE 
UNDER THIS ACT shall suffer the penalty of IMPRISONMENT RANGING from 
[twelve (12)] TWENTY (20) years to life [imprisonment], A FINE EQUIVALENT TO 
THIRTY PERCENT (30%) OF THE AMOUNT OF THE CONTRACT and perpetual 
disqualification [to] FROM holding any public office. 
ANY PROPRIETORSHIP, CORPORATION, PARTNERSHIP, ASSOCIATION, 
OR BUSINESS ORGANIZATION WHOSE PROPRIETOR, STOCKHOLDER, 
PARTNER, MEMBER OR OFFICER IS RELATED WITHIN THE FOURTH DEGREE 
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OF CONSANGUINITY OR AFFINITY TO THE PUBLIC OFFICER IN 
OF 
OR 
ASSOCIATED IN 
ANY MANNER 
WITH 
THE PROJECT BEING 
UNDERTAKEN 
IS 
PROHIBITED 
FROM 
PARTICIPATING 
IN 
SAID 
GOVERNMENT CONTRACT.” 
SEC. 3. - Any provisions of law, degree, executive order or any issuance inconsistent 
herewith are hereby repealed and/ or modified accordingly. 
SEC. 4 - This Act shall take effect fifteen (15) days following completion of its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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