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Key Takeaways from the New Government Procurement Act (Part XIII) | May 5, 2025

Key Takeaways from the New Government Procurement Act (Part XIII) | May 5, 2025

The contractor shall undertake the repair works, at its own expense, of any defect or damage to the Infrastructure Projects on account of the use of materials of inferior quality, defects in the construction, or due to any violation of the terms of contract within ninety (90) calendar days from the time the Head of Procuring Entity (HoPE) has issued an order to undertake repair.

Alburo Law
May 05, 2025

Key Takeaways from the New Government Procurement Act (Part XIII)

Under Section 89 of the New Government Procurement Act, all bid prices shall be considered as fixed prices, and therefore not subject to price escalation during contract implementation. In the event of an extraordinary increase in prices of specific components of the Infrastructure Project, price escalation may be considered, subject to prior approval of the Government Procurement Policy Board (GPPB). If the cost of construction components increases by more than ten percent (10%) of the unit price of work items, as determined against the prevailing price indices of the Philippine Statistics Authority (PSA), a price escalation may be authorized at a no loss, no-gain basis, using the appropriate formula prescribed by the GPPB. The PSA shall ensure that its price indices are region specific and updated on a monthly basis.

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