A contractor with pending overdue project and has reached maximum liquidated damages for any government contract will be prohibited to participate in any bidding process of the Department of Public Works and Highways (DPWH).
This was the statement of DPWH Secretary Rogelio L. Singson, as he issues Department Order (DO) 37, series of 2015 or the “Disqualification of Contractors with Liquidated Damages on Ongoing DPWH Infrastructure Projects”, which is pursuant to Section 8 of Annex E of Implementing Rules and Regulations of Republic Act No. 9184 also known as the Government Procurement Reform Act.
The DO 37 states that contractors facing either: (a) delayed completion of work exceeding to ten percent (10%) of specified contract time; or (b) total sum of liquidated damages from delayed project exceeding to ten percent (10%) of the total sum of the contract price, shall be disqualified to join in DPWH projects.
Apart from the disqualification for new contract, the contractor shall pay incurred liquidated damages over the delayed projects in accordance with the rules of RA 9184.
DPWH Bids and Awards Committee (BAC) on the other hand shall strictly enforce the said DO, or face penalties prescribed for violation of reasonable office rules and regulations in Section 52, C(3) of Civil Service Resolution No. 991936 known as the “Uniform Rules on Administrative Cases in the Civil Service”.
“It is a priority of the Department to deliver quality, safe and timely infrastructure projects to the public, thus we shall ban contractors from bidding for new contract if they have existing delayed projects and penalize BAC members who tolerate this kind of activity,” said Secretary Singson.