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PRESIDENTIAL DECREE NO. 459
PRESIDENTIAL DECREE NO. 459 -
AMENDING Section 10(b) OF REPUBLIC ACT NO. 5979, BY REVISING THE
MEMBERSHIP OF THE COMMITTEE CREATED THEREUNDER, AND FOR OTHER PURPOSES
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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;chanroblesvirtualawlibrary
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;chanroblesvirtualawlibrary
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
contingencies; and chanroblesvirtualawlibrary
WHEREAS, it is likewise necessary that the membership of the Committee
created thereunder be revised so as to reflect recent changes in our
laws, as well as for a better coordination of the economic and fiscal
policies involved in any price adjustments for public works contracts.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree and order: chanroblesvirtualawlibrary
Section 1. Paragraph (b) of Section 10 of Republic
Act No. 5979, as amended, is hereby amended to read as follows:cralaw:red
"(b) Should the Government, at any time during the
effectivity of a contract, impose, abolish, modify any tax, customs
duties, license, impost, fee, or other similar charges, or enact, amend
or repeal any law affecting the number of hours of labor permissible a
day or the number of days a week or the wages or salaries to be paid to
laborers and employees, which would directly increase or decrease the
cost of materials or the cost of the construction work beyond or under
the amount stipulated in the contract, or should there be any abnormal
or extraordinary increase or decrease in the cost of construction
materials due to any cause beyond the control of either or both
parties, the contract amount shall be readjusted accordingly by a
committee, hereby created for this purpose, composed of the following:cralaw:red
Chairman Secretary of Public Works,
Transportation and Communications
Vice-Chairman Secretary of Public Highways
Member National Economic and Development
Authority (NEDA) Representative
Member Bureau/Agency Head concerned
Member Commission on Audit Representative
Provided, That the party seeking adjustment shall first apply for same
in writing, stating therein the various reasons justifying the change
as well as the data computation in sufficient detail which would
determine accurately the amount of the change: Provided, however, That
for projects behind schedule, unless properly covered by extension of
time, no adjustments shall be considered."
Section 2. All laws, decrees, orders and rules and
regulations inconsistent with the provisions of this Decree are hereby
repealed or modified accordingly.
Section 3. This Decree shall take effect immediately.
DONE in the City of Manila,
this 16th day of May, in the year of Our Lord, nineteen hundred and
seventy-four.
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