Revised Guidelines for the Implementation of DPWH Projects (By Administration or Contract) by Local Government Units (LGUs)

April 13, 2018

DPWH DEPARTMENT ORDER NO. 62, S. 2018

REVISED GUIDELINES FOR THE IMPLEMENTATION OF DPWH PROJECTS (BY ADMINISTRATION OR CONTRACT) BY LOCAL GOVERNMENT UNITS (LGUs)

Purpose

In line with the Department's current reforms to streamline and strengthen its policies and procedures, the guidelines set for the implementation of DPWH Projects by LGUs are hereby revised to include the latest applicable laws and Department issuances.

1. Pertinent Laws and Department Issuances

1.1 The following provisions of existing laws serve as legal bases for the herein guidelines for the implementation by LGUs of DPWH projects:

a. General Provision No. 90 of FY 2018 GAA

b. Special Provision No. 11 of FY 2018 GAA, DPWH Budget

c. R.A. 9184 and its Implementing Rules and Regulations

1.2 The following Department issuances, or the latest, likewise serve as guidelines for the implementation by LGUs of DPWH Projects: DcHSEa

a. D.O. No. 13 Series of 2018 — Guidelines for the Preparation of Cost Estimates for Traffic Management and Safety & Health Requirements for the Construction and Maintenance of Roads, Bridges and Safety & Health Requirements for School Buildings.

b. D.O. No. 45 Series of 2017 — Amended Levels of Authorities of Officials of the Department of Public Works and Highways for Procurement, Human Resource and Financial Management.

c. D.O. No. 11 Series of 2017 — Inclusion of the Minimum Materials Testing Equipment in the Technical Component of the Bid.

d. D.O. No. 193, Series of 2016 — Administrative Action on Contracts with Negative Slippage in Accordance with Revised IRR of RA 9184.

e. D.O. No. 135 Series of 2015 — Strict Compliance to Road Works Safety & Traffic Management and Construction Safety & Health Requirements during Construction and Maintenance of Roads and Bridges.

f. D.O. No. 14, Series of 2007 — Authorizing the Release of initial Advance Equivalent to fifty percent (50%) of Approved Project Cost for the Implementation of DPWH Projects by the LGU.

g. D.O. No. 56, Series of 2005 — Guidelines for the Implementation of DOLE D.O. No. 13, Series of 1998, on Occupational Safety and Health in the Construction Industry.

2. General Guidelines

In accordance with the said provisions of existing laws, the following conditions must be met before the DPWH Secretary can authorize an LGU to implement a DPWH Project:

2.1 The LGU shall submit a written request to DPWH to authorize the LGU to implement the DPWH Project.

2.2 The LGU shall submit authority to enter into a Memorandum of Agreement (MOA) with DPWH thru a Resolution from concerned Sangguniang Bayan/Panglungsod/Panlalawigan for the implementation of DPWH Projects.

2.3 The LGU must possess the demonstrated capability to implement the Project by administration or by contract, as determined by the concerned DPWH District Engineer, and approved by the Regional Director, using the evaluation criteria prescribed in Item 3 hereof.

2.4 The LGU shall ensure that the Project is implemented in accordance with the Program of Work, Plans, Specifications, Construction Methodology, Project Cost (Budget) and Time Duration approved by the authorized DPWH official.

2.5 The LGU shall observe compliance with the Safety and Health requirements at project site in accordance with DPWH D.O. No. 56 series of 2005, D.O. No. 135 series of 2015, and D.O. No. 13 series of 2018, or the latest relevant issuances.

2.6 The LGU shall be accountable for the Project funds released to it by the DPWH.

2.7 The designated DPWH Project Engineer should update the status of the project or update any revision in implementation schedule in the Project and Contract Management Application (PCMA) on a monthly basis.

2.8 If undertaken by administration, DPWH reserves the right to terminate the services of the LGU if the negative slippage of the project they implemented goes beyond 15% in comparison to the original schedule due to reasons attributed to the poor performance of the LGU in accordance with DPWH D.O. No. 193, series of 2016.

 If undertaken by contract, the LGU shall terminate the services of the contractor due to reasons attributed to the poor performance of the contractor in accordance with the said D.O. HTcADC

2.9 The DPWH shall exercise technical supervision over the project pursuant to the provisions of the GAA.

2.10 The LGU shall comply with the DPWH Material Testing requirements and quality control policies of the DPWH in the implementation of DPWH Project.

2.11 The LGU shall give full and complete access to DPWH Inspectorate Teams in the conduct of site inspection to ensure compliance to plans and specifications, quantity and quality of materials incorporated, and the completed works on the Project.

2.12 The DPWH shall release to the LGU an initial cash advance equivalent to fifty percent (50%) of the approved Project Cost. The DPWH shall release subsequent cash funds to the LGU only after the latter has liquidated previous cash advances based on Liquidation Reports certified correct by the LGU Treasurer/Accountant and verified and found correct by the Resident Auditor of the Commission on Audit.

2.13 If Implemented by Administration:

a. The LGU shall implement the Project by itself, i.e., by administration only.

The Regional Director/District Engineer shall submit a copy of their approved Annual Procurement Plan (APP), if the original mode of procurement recommended in the APP was Public Bidding but cannot be ultimately pursued, or the project to be undertaken by Administration has not been previously included, the BAC, through a Resolution, shall justify and recommend the change in the mode of procurement.

b. For projects funded by the National Government and implemented by LGU, the latter shall be required to post the necessary warranty security in accordance with Section 62 of RA 9184 and its Implementing Rules and Regulations (IRR).

c. The LGU shall, to the extent feasible, use labor-based equipment-supported methods in implementing the Project.

d. The LGU shall start the project within fifteen (15) days from the approval of the MOA and shall complete the Project within the duration as stipulated in the approved MOA.

e. Upon the satisfactory completion by the LGU of the Project, as certified by the designated DPWH Inspectorate Team, the DPWH Regional Director/District Engineer shall issue to the LGU the corresponding Certificate of Project Completion.

f. Within one (1) year after the issuance of the Certificate of Project Completion, the LGU shall correct, at its own expense, all defects discovered in the Project due to faulty construction or use of substandard materials. After this one-year period and after the Project is certified by the DPWH Inspectorate Team as having no defect, the DPWH Regional Director/District Engineer shall issue to the LGU the Certificate of Project Acceptance.

2.14 If Implemented by Contract:

a. The LGU has an established Bid and Awards Committee (BAC) in accordance with Section 11.2.3 of IRR of R.A. 9184.

b. The LGU shall undertake the procurement for the project through Competitive Bidding in accordance with R.A. 9184 and its IRR.

c. The LGU shall ensure that all participating/qualified bidders are registered in the DPWH Civil Works Registry.

d. The LGU shall evaluate and approve, in coordination with DPWH, all requests for Variation Orders, Work Suspension and Resumption Orders, Time Extension and other similar request by the contractor.

e. The DPWH and the LGU shall conduct final inspection of the completed works and recommend jointly the issuance of the Certificate of Project Completion to the contractor after having satisfied that the project has been completed in accordance with the approved plans and specifications and shall likewise issue Certificate of Acceptance one (1) year after the project is verified by DPWH and LGU representatives as having no defect.

3. Criteria for Determining the Capability of an LGU

3.1 The DPWH District Engineer concerned shall evaluate and determine the demonstrated capability of an LGU to implement a Project by administration or by contract, on the basis of the following criteria:

a. Experience or track record of the LGU to implement the proposed DPWH Project.

b. Organization and personnel of the LGU for the proposed Project.

c. Financial and procurement management systems of the LGU.

d. Minimum Material Testing Equipment for the proposed project.

 If undertaken by Administration:

e. Maintenance condition of the local roads under the LGU.

f. Construction equipment of the LGU for the proposed Project.

 If undertaken by Contract:

g. Compliance to Section 11.2.3 of IRR of R.A. 9184 BAC Composition for LGUs.

3.2 The details of these evaluation criteria, including the measurable indicators thereof and their application, are given in the prescribed evaluation format in Annexes "A and B", which shall be prepared and submitted by the District Engineer and approved by the Regional Director.

4. Project Memorandum of Agreement

4.1 Every Project to be undertaken by an LGU in accordance with the provisions of this Department Order shall be covered by a Project Memorandum of Agreement (MOA) to be entered into by and between the DPWH and the LGU concerned, using the format in Annexes "C and D".

4.2 The DPWH officials authorized to enter into and approve the said MOA shall be in accordance with the latest Levels of Authorities of Officials of the DPWH for Procurement.

5. Coordination with Implementing Offices

5.1 The LGU must coordinate with the responsible DPWH Unit in the execution of the MOA.

6. Effectivity

This Order supersedes Department Order No. 62, series of 2015, and takes effect immediately.

(SGD.) MARK A. VILLARSecretary

ANNEX A

Evaluation of Capability of Local Government Unit (LGU) to Implement DPWH Infrastructure Projects by Administration

ANNEX B

Evaluation of Capability of Local Government Unit (LGU) to Implement DPWH Infrastructure Projects by Contract

ANNEX C

Project Memorandum of Agreement (MOA) between DPWH and the LGU for the Implementation of a DPWH Project by Administration

ANNEX D

Project Memorandum of Agreement (MOA) between DPWH and the LGU for the Implementation of a DPWH Project by Contract