Amending Section 10(B) Of Republic Act No. 5979, By Revising The Membership Of The Committee Created Thereunder, And For Other Purposes

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 459 May 16, 1974

AMENDING SECTION 10(b) OF REPUBLIC ACT NO. 5979, BY REVISING THE MEMBERSHIP OF THE COMMITTEE CREATED THEREUNDER, AND FOR OTHER PURPOSES

WHEREAS, Section 10(b) of Republic Act No. 5979 provides for the mechanism whereby the contract amounts for public works may be readjusted for causes occurring after the perfection of and during the effectivity of the contracts therefor;

WHEREAS, recent developments have caused the escalation of prices of construction materials to a point where contractors stand to lose tremendously were they to proceed with their respective public works contracts;

WHEREAS, the escalation of prices of construction materials may not be necessarily due to any action by the Government enumerated in said Section 10(b) of Republic Act No. 5979; and therefore, it is only fair and just that certain adjustment be made in the law to provide for such contigencies; and

WHEREAS, it is likewise necessary that the membership of the Committee created thereunder be revised so as to reflect recent...

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Summary of Presidential Decree No. 459

Amending Section 10(b) of Republic Act No. 5979 on Contract Price Adjustment for Public Works

- Revises the membership of the Committee for Contract Price Adjustment (Section 1)
    - Chairman: Secretary of Public Works, Transportation and Communications
    - Vice-Chairman: Secretary of Public Highways
    - Members: NEDA Representative, Bureau/Agency Head concerned, Commission on Audit Representative

- Allows contract price adjustment in the following cases (Section 1):
    - Government imposes, abolishes, modifies taxes, customs duties, licenses, fees, or similar charges affecting construction costs
    - Government enacts, amends, or repeals laws affecting labor hours, days, wages, or salaries affecting construction costs
    - Abnormal or extraordinary increase or decrease in construction material costs beyond control of parties

- Procedure for seeking price adjustment (Section 1):
    - Party must apply in writing, stating reasons and detailed cost computation
    - No adjustment for projects behind schedule, unless covered by time extension

- Repeals or modifies inconsistent laws, decrees, orders, and rules (Section 2)

- Takes effect immediately (Section 3)