, 
. , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S, No. 
2498 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'14 
DEC -9 P 2 :48 
"' ... :·:1 \TiI !IY, .k.' 
" . 
-U" 
REQUIRlNG THE REGULAR MAINTENANCE AND PRESERVATION OF 
ALL PUBLIC INFRASTRUCTURES, ESTABLISHING MECHANISMS 
FOR ITS IMPLEMENTATION 
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 
1 


quality of their work. Conversely, the more expenses for repmrs, 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. l 
/1. .......... ~.-...};~ 
'M'iR'I"AM DEF~SOR SANTiAGO 
()f 
I This bill was originally filed by President Benigno S. Aquino III during the Fourteenth 
Congress. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 
24SA 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
'14 
DEC -9 P 2 :48 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
AN ACT 
2 
REQUIRING TI-IE REGULAR MAINTENANCE AND PRESERVATION OF 
3 
ALL PUBLIC INFRASTRUCTURES, ESTABLISHING MECHANISMS 
4 
FOR ITS IMPLEMENTATION 
5 
SECTION 1. Short Title. - This Act shall be known as the "Public Works Reform 
6 
Act." 
7 
SECTION 2. Declaration of Policy. - It is the policy of the State to ensure the 
8 
continued and uninterrupted use of all public infrastructures in order to promote the best 
9 
interests of the general public. Towards this end, the State shall establish an effective 
10 
mechanism for the efficient maintenance and preservation of all public infrastructures 
11" 
and when demanded by the situation, provide for the immediate replacement of the public 
12 
infrastructure with the end in view of maximizing its utility at no extra costs. 
13 
SECTION 3. Definition of Terms. - For purposes of this Act: 
14 
(a) "Public Infrastructure" refers to any infrastructure built or constructed through 
15 
public funds. 
16 
(b) "Maintenance works" refer to any work necessary to keep the infrastructure in 
17 
'conformity to the prescrib'ed design and performance standards, plans and specifications. 
18 
(c) "Regnlar and Periodic Inspection" refers to the systematic and regular 
19 
examination of the public infrastructure which shall not be less than twice a year to be 
20 
conducted by the Bureau of Maintenance (or the "Bureau") of the Department of Public 
1 


1 
Works and Highways (DPWH) for purposes of determining the state and condition of the 
2 
infrastructure versus the plans, specifications and intended lifespan of the infrastructure. 
3 
(d) "Contractor" refers to any private entity awarded or contracted to perform any 
4 
public infrastructure project. 
5 
(e) "Proponent" refers to any agency of the National Government, its departments, 
6 
bureaus, offices and agencies including government owned and controlled corporations" 
7 
and Local Government Units undertaking any public infrastructure project whether 
8 
through bidding or any other modes allowed by law. 
9" 
SECTION 4. Conditions for the award of an infrastructure project. - In addition 
10 
to the legal requirements on contractors awarded any public infrastructure project, the 
11 
following conditions shall be included in any contract or agreement covering the 
12 
construction of any public infrastructure. That: 
13 
(a) The contractor shall undertake all necessary repair, maintenance and 
14 
preservation works on the infrastructure or when determined by the Bureau to replace thc 
15 
same at its expense and within the time period herein provided. 
16 
(b) The contractor shall post a performance bond, in such amount as determined 
17 
by the DPWH in consultation with the proponent to be sufficient to cover any repair, 
18 
maintenance for the entire life of the infrastructure as well as the possible replacement 
19 
thereof and such bond shall be renewed annually. The bond shall be secured trom a 
20 
bonding company of good standing as certified by the Insurance Commission and duly 
21 
accredited by the DPWI-I .and shall remain in effect during the projected life of the 
22 
infrastructure. 
23 
SECTION 5. Regular and Periodic Inspection. - The Bureau of Maintenance shall 
24 
conduct a regular and periodic inspection of the public infrastructure or whenever 
2 


1 
requested by the proponent. The result of the inspection shall be in the form of a written 
2' . report and shall be available to the public. 
3 
SECTION 6. Contested Report. - In the event the report of the Bureau is contested 
4 
by either or both the Proponent and the Contractor, the Bureau of Maintenance may 
5 
conduct another inspection in their presence. The findings of the Bureau shall be 
6 
appealable to the Secretary of the DPWH within fifteen (15) days from the issuance or 
7 
receipt of the findings. The Secretary of the DPWH shall render a decision within thirty 
8 
(30) days from receipt ofthe appeal which shall be final and executory. 
9 
SECTION 7. Repair, Maintenance and Replacement. - All necessary repairs, 
10 
maintenance and preservation works including the replacement of the infrastructure shall 
11 
commence within a reasonable time as determined by the Bureau or the Secretary of the 
12 
DPWH but in no case beyond thirty (30) days from notice to the contractor to do any of 
13 
the above undertakings. Unless, for reasons of force majeure or fortuitous event and an 
14 
extension is requested by the contractor and approved by the Bureau or the Secretary of 
15 
the DPWH, all works required to be done shall be completed within the period set by the. 
16 
Bureau or the Secretary of the DPWH. A schedule of work and timetable shall be issued 
17 
by the Bureau or the Secretary of the DPWH to prevent unwarranted disruption or 
18 
inconvenience to the general public. 
19 
SECTION 8. Penalties. - Unjustified failure to commence and complete the 
20 
necessary repairs, the contractor to maintenance and preservation works or its 
21 
replacement within the periods specified in Section 7 above shall be sufficient grounds 
22 
for the immediate forfeiture by the Bureau of the performance bond in favor of the 
23 
proponent. The proceeds thereof shall be earmarked by the proponent for the repair, 
24 
maintenance and replacement of the infrastructure project for which the bond was posted. 
3 


1 
Additionally, any and/or all of the Contractors officers as well as their assigns and 
2 
transferees, shall be permanently disqualified from undertaking any public infrastructure 
3 
projects without prejudice to any other actions that may be instituted against them 
4 
individually or solidarily under existing laws. 
5 
SEC. 9. Implementing Rules and Regulations. - A committee composed of one (1) 
6 
representative each from the DPWH who will act as the chairman, the Department of 
7 
Interior and Local Governments, the Department of Finance, and the National Economic 
8 
and Development Authority shall within sixty (60) days from the effectivity of this Act,-
9 
'formulate and prescribe the necessary rules and regulations to implement and carry out 
10 
the provisions of this Act. 
11 
SECTION 10. Separability Clause. - If any provision of this Act shall be declared 
12 
unconstitutional, the other provision not affected thereby shall remain in full force and 
13 
effect. 
14 
SECTION 11. Repealing Clause. - All laws, decrees, issuances, ordcrs, rules and 
15 
regulations, or parts thereof inconsistent with this Act are hereby repealed or amended 
16 
accordingly. 
17 
SECTION 12. Effectivity. - This Act shall take effect fifteen (15) days aftcr its 
18 
publication in at least two (2) newspapers of general circulation. 
Approved, 
tndpnov20 14 
4