DPWH tightens rules on sub-contracting on infra projects
MANILA, Philippines - The Department of Public Works and Highways is tightening rules on sub-contracting of infrastructure projects. This comes as several projects have experienced delays due to sub-contracting.
In a statement, Public Works and Highways Secretary Rogelio L. Singson warned the department's regional directors and district engineers to strictly enforce the conditions for sub-contracting, otherwise, they will be held accountable for non-compliance by the contractors.
Singson said eligible contractors, with PCAB license and registered in the DPWH civil works registry, may be allowed to subcontract a portion of the contract for locally-funded civil works projects, which should not exceed 50% of the total project cost.
The DPWH central procurement office will conduct an eligibility check on these sub-contractors for contracts bid out in the central office, and by concerned Regional Office for contracts bid out in the ROs and their District Engineering Offices (DEOs);
The bidder must disclose the name of the subcontractor during bid submission and shall include the required documents as part of the technical component of its bid.
In exceptional cases, Singson said subcontracting during project implementation stage may be also allowed as long as it has his prior approval.
While subcontracting is approved, Singson said the lead contractor will still have 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.