PRESIDENTIAL DECREE

No. 1594
and its implementing Rules and Regulations as Amended 12 July 1995
PRESIDENTIAL DECREE 1594
SECTION 1 Policy Objectives It is the policy of the
government to adopt a set of rules and regulations covering
government contracts for infrastructure and other construction
project.

SECTION 2 Detailed Engineering No bidding and/or award of

contract for a construction project shall be made unless detailed
engineering have been sufficiently carried out.
PRESIDENTIAL DECREE 1594
SECTION 3 Prequalification of Prospective Contractors A
prospective contractor may be qualified to offer his bid by
meeting a set of requirements.

SECTION 4 Bidding Construction project shall generally be

undertaken by contract after competitive public bidding.

SECTION 5 Award and Contract The contract may be

awarded to the lowest pre-qualified bidder.
PRESIDENTIAL DECREE 1594
SECTION 6 Assignment and Subcontract The contractor
shall not assign, transfer, pledge, subcontract or make any other
disposition of the contract unless approved by higher authority.

SECTION 7 Responsibility of the Contractor The contractor

shall assume full responsibility for the contract work until its final
acceptance by the Government.

SECTION 8 Adjustment of Contract Price Adjustment of

contract price for construction project may be authorized by
higher authority.
PRESIDENTIAL DECREE 1594
SECTION 9 Change Order and Extra Work Order A change
order or extra work order may be issued only for works
necessary for the projects completion.

SECTION 10 Inspection and Construction of Contract Work

Inspection of the Contract Work shall be made by the
Government.

SECTION 11 Governments Right Over Contract Work The

Government may take over the contract work should the
contractor abandon or delay the contract work.
PRESIDENTIAL DECREE 1594
SECTION 12 Implementing Rules and Regulations Higher
authorities shall jointly promulgate the rules and regulations to
implement the provisions of this Decree.

SECTION 13 Separability Clause If any provisions of this

Decree is held unconstitutional, the other provisions shall
remain valid.
PRESIDENTIAL DECREE 1594
SECTION 14 Repealing Clause All Acts, Charters, Decrees,
Letter of Instructions, Executive Orders, Proclamations, Rules
and Regulations, or parts thereof in conflict with the provisions
of this Decree are hereby repealed or modified accordingly.

SECTION 15 Effectivity This Decree shall take effect

immediately.