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PRESIDENTIAL DECREE NO. 1870 - AUTHORIZING THE GOVERNMENT'S TAKE OVER BY ADMINISTRATION OF DELAYED INFRASTRUCTURE PROJECTS OR AWARDING OF THE CONTRACT TO OTHER QUALIFIED CONTRACTORS
government infrastructure projects are principally funded by foreign
loans amortized by the Government at staggering sums, plus interests
and other charges,
WHEREAS, the completion of such infrastructure projects within the agreed period is the prime consideration for the Government's entering into contracts with various contractors;
WHEREAS, any delay in the completion of the contract work in accordance with approved PERT/CPM and/or contract time as stipulated, will not only dislocate the financial projections and/or the cash flow of the Government on these projects, but also unduly prejudice the public interest sought to be subserved by the timely completion of the infrastructure project involved;
WHEREAS, numerous contractors, in their desire to obtain government contracts, made representations as to their capability to complete their contract work within a certain period in order to induce the Government into awarding the contract to them, only to incur delay later on or refuse to continue or comply with their commitments under the contract to the prejudice of the Government and the people;
WHEREAS, not only are existing laws read into contracts in order to determine the rights and obligations of the parties, but the reservation of the essential attributes of sovereign power is also read into contracts to secure the well-being of the people;
WHEREAS, government infrastructure contracts are designed to promote the welfare of the people;
WHEREAS, public interest demands that there be Decree No. 1594, the Government may take over the contract work should the contractor unduly delay the said contract work;
WHEREAS, Section 11 of Presidential Decree No. 1594 should be read into government infrastructure contracts as a valid and reasonable exercise of police power;
WHEREAS, this Presidential Decree is likewise in exercise of the police power of the State in view of the serious damage, prejudice and inconvenience caused by unduly delayed contracts to the people and to the Government.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution and by law, and in order to expedite work in all government infrastructure projects, including on-going projects, thereby assuring their completion within contract schedule, do hereby decree and order:
Done in the City of Manila, this 12th day of July, in the year of Our Lord, nineteen hundred and eighty-three.
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