AN ACT REQUIRING PRIVATE CONTRACTORS TO WHOM NATIONAL

Case Overview and Summary

Summary of Republic Act No. 6685

Contractor Requirement (Section 1):
- Private contractors awarded national, provincial, city, or municipal public works projects must:
    - Hire at least 50% of unskilled labor from unemployed bona fide residents where the project is undertaken.
    - Hire at least 30% of skilled labor from unemployed bona fide residents where the project is undertaken.
- Exemptions:
    - Labor for manufacturing prefabricated materials outside the project site.
    - Skilled labor for engineering designs and project plans.
- If available local labor is less than required percentages, the maximum available local labor shall be hired.

Public Works Projects Involved (Section 2):
- Includes national, provincial, city, municipal, and barangay projects such as roads, schools, power and water systems, piers, airports, and similar projects.

Excluded Projects (Section 3):
- Highly technical scientific projects.
- Defense and military installations under security requirements.
- Projects undertaken by the Armed Forces of the Philippines.
- Private contractors for strategic projects require clearance from the Armed Forces Chief of Staff or the Department of Science and Technology Secretary.

Notice of Labor Requirements (Section 4):
- Contractors must post notices in conspicuous areas, in Filipino, English, or local dialect, stating local residents are needed.
- Applicants must provide voter's ID, reliable identification, or barangay verification to prove local residency.
- Applicants must pass reasonable performance requirements of the contractor.

Certificate of Compliance (Section 5):
- Contractors must submit a sworn certificate of compliance with the labor requirements, including a list of hired local residents, with every progress billing.

Penalty (Section 6):
- First offense: Fine of ₱20,000.
- Second offense: 1-year suspension from public works bidding.
- Third offense: Perpetual disqualification from public works bidding.
- Penalty clause must be included in all government contracts.

Rules and Regulations (Section 7):
- The Department of Public Works and Highways Secretary, after consulting with national constructors associations and the Labor Secretary, shall issue implementing rules and regulations within 60 days of the Act's approval.

Effectivity (Section 8):
- The Act shall take effect upon complete publication in at least two national newspapers of general circulation.