Amid delays, DPWH tightens screws on infra project subcontractors

The Department of Public Works and Highways on Wednesday said it has tightened the rules on subcontracting for infrastructure projects, amid delays in their implementation.

 

DPWH Secretary Rogelio Singson said he will hold DPWH regional directors and district engineers accountable for the contractors' failure to comply with their contracts.

 

"All these ... conditions shall be incorporated in the Bidding Documents... Sub-contractors are encourage(d) to take advantage of the on-going accreditation process of the Philippine Contractors Accreditation Board for contractors and subcontractors," the DPWH said.

 

Singson said eligible contractors with PCAB license and registered in the DPWH civil works registry may subcontract a portion of the contract for locally funded civil works projects, which shall not exceed 50 percent of the total project cost.

 

On the other hand, he said an eligible sub-contractor is required to submit documents contained under Section 23.1 of the Procurement Act.

 

"Eligibility checks on these sub-contractors shall be done electronically by the DPWH Central Procurement Office for contracts bid out in the Central Office, and by the concerned Regional Office (RO) for contracts bid out in the ROs and their District Engineering Offices (DEOs)," the DPWH said.

 

Also, the DPWH said the bidder must disclose the name of the subcontractor during the submission of bids, and shall include the required documents as part of the technical component of its bid.

 

Exceptional cases

 

Singson said that subcontracting during project implementation may be allowed "in exceptional cases," but provided it has his prior approval.

 

He added the approval for subcontracting shall not relieve the lead contractor of any liability for obligation under the contract.

 

"The lead contractor shall be responsible for the acts, defaults and neglect of any subcontractor as if these were its own acts, default or neglect," the DPWH said.

 

However, it said 100 percent of the value of the entire completed and accepted project, including the subcontractor portion, shall be recorded as experience of the lead contractor.

 

For its part, the subcontractor shall get credit for 100 percent of the value of the subcontracted portion of the project, and this shall be incorporated in the sub-contracting agreement between the lead contractor and the sub-contractor.  — ELR, GMA News