mplementation of Infra Projects by

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Implementation of Infra Projects by Administration

by goldlemon789 on Thu Jan 27, 2011 1:38 am

Hi everyone. I had been reading various topics in the forum and I find it very insightful and has
helped us resolved issues in our LGU.
At present, we have an infrastructure project funded by national agency (DA) to be implemented
by our LGU. The project involves the rehabilitation of farm to market roads from one barangay
to another. We have no problem insofar as the procurement of tools and construction materials as
the same is conducted through public bidding. On the other hand, the manual labor component of
the project shall be undertaken through the pakyaw contracting system under GPPB Resolution
No. 018-2006. Our Project Facilitator (who is our Mun. Eng) organized the Pakyaw Groups and
prepared the Pakyaw Contracts based on specific program of works.
The following are my questions: as the implementing agency, is the LGU's BAC required to
make any recommendation to the LCE that the labor component shall be on a pakyaw
contracting system under the said GPPB Resolution? (we issued a recommendation on the award
of the construction materials the same being done through bidding). The Project Facilitator
wanted the BAC to issue a recommendation that the labor component is procured through
"negotiated procurement". Is the Pakyaw Contracting System tantamount to a "Negotiated
Procurement"?
Further, what if the amount of labor per program of works is more than PhP500,000.00 limit set
in GPPB Resolution
No. 018-2006, how can the LGU (as implementing agency) implement the manual labor
component of the project given that it cannot undertake it through in-house labor? Or if it can be

implemented through job orders, how do we go about it?

Based on the contract with the DA, the LGU may enter into a contract, agreement and/or conduct
public bidding, issue POs, accept delivery and issue payments to the supplier/contractor upon
approval of the MOA or upon the release of the first tranche. Clearly, as implementing agency,
we are bound to undertake the rehabilitation of the farm to market road as stated in the MOA.
Can you enlighten us what processes should be undertaken by the BAC necessary for the pakyaw
contracting system, or insofar as the manual labor component of the contract is concerned.
We would really appreciate your comments/insights on this matter. Thank you in advance.

goldlemon789
New Member

Number of posts: 5
Company/Agency: LGU - Municipality
Occupation/Designation: BAC
Registration date: 2011-01-22

Re: Implementation of Infra Projects by Administration

by msm326 on Thu Jan 27, 2011 9:32 am
Let me share to you what we are doing for the labor component of by administration project,
since some of the civil works needs skilled laborers so Pakyaw Contract labor is not applicable
so what our project implementors are doing is they make a JOB Order Contracts for the period
covered and this is subject to pre audit. Same documentations such as photos , before during and
after as well as the copy of PO and delivered materials to verify the extent of works need to be
done.
We can share you our forms.
msm326

msm326
Valued Contributor

Number of posts: 264

Company/Agency: LGU SANTA CRUZ
Occupation/Designation: MUNICIPAL GENERAL SERVICES OFFICE
Registration date: 2009-06-03

Re: Implementation of Infra Projects by Administration

by RDV @ GP3i on Thu Jan 27, 2011 11:05 am
goldlemon789 wrote:
Hi everyone. I had been reading various topics in the forum and I find it very insightful and has
helped us resolved issues in our LGU.
At present, we have an infrastructure project funded by national agency (DA) to be implemented
by our LGU. The project involves the rehabilitation of farm to market roads from one barangay
to another. We have no problem insofar as the procurement of tools and construction materials as
the same is conducted through public bidding. On the other hand, the manual labor component of
the project shall be undertaken through the pakyaw contracting system under GPPB Resolution
No. 018-2006. Our Project Facilitator (who is our Mun. Eng) organized the Pakyaw Groups and
prepared the Pakyaw Contracts based on specific program of works.
The following are my questions:
goldlemon789 wrote:as the implementing agency, is the LGU's BAC required to make any
recommendation to the LCE that the labor component shall be on a pakyaw contracting system
under the said GPPB Resolution? (we issued a recommendation on the award of the construction

materials the same being done through bidding). The Project Facilitator wanted the BAC to issue
a recommendation that the labor component is procured through "negotiated procurement". Is the
Pakyaw Contracting System tantamount to a "Negotiated Procurement"?
Yes, you need to make that recommendation because the labor component could either be
undertaken in-house (meaning utilizing the existing manpower of the LGU), by pakyaw
contracting system, or by job orders. Your recommendation to do it by pakyaw system could be
part of the BAC recommendation to implement the project By Administration.
goldlemon789 wrote:Further, what if the amount of labor per program of works is more than
PhP500,000.00 limit set in GPPB Resolution No. 018-2006, how can the LGU (as implementing
agency) implement the manual labor component of the project given that it cannot undertake it
through in-house labor? Or if it can be implemented through job orders, how do we go about it?
You can break up the labor component if the total labor cost will amount to more than P500,000.
For example, masonry, carpentry and painting jobs could be undertaken by a separate pakyaw
groups, such that each pakyaw contract does not exceed P500,000 each.
goldlemon789 wrote:Based on the contract with the DA, the LGU may enter into a contract,
agreement and/or conduct public bidding, issue POs, accept delivery and issue payments to the
supplier/contractor upon approval of the MOA or upon the release of the first tranche. Clearly, as
implementing agency, we are bound to undertake the rehabilitation of the farm to market road as
stated in the MOA. Can you enlighten us what processes should be undertaken by the BAC
necessary for the pakyaw contracting system, or insofar as the manual labor component of the
contract is concerned.
The process is already outlined in the GPPB resolution you mentioned. I hope, however, that you
have to review your MOA you entered with DA, so that you do not deviate from your
responsibilities in the said MOA. Of course, one of the things that you need to make sure is that
you are really allowed to undertake the project By Administration.
goldlemon789 wrote:We would really appreciate your comments/insights on this matter. Thank
you in advance.
I hope those comments are of help to you.

RDV @ GP3i
Grand Master

Number of posts: 1611

Company/Agency: DBM-Reg'l Office IV-B
Occupation/Designation: Regional Director/ Procurement Trainer
Registration date: 2008-09-04

Re: Implementation of Infra Projects by Administration

by goldlemon789 on Thu Jan 27, 2011 3:59 pm
[quote]
msm326 wrote:Let me share to you what we are doing for the labor component of by
administration project, since some of the civil works needs skilled laborers so Pakyaw Contract
labor is not applicable so what our project implementors are doing is they make a JOB Order
Contracts for the period covered and this is subject to pre audit. Same documentations such as
photos , before during and after as well as the copy of PO and delivered materials to verify the
extent of works need to be done.
We can share you our forms.
msm326 [/quote
Would really appreciate if you can share your forms with us for the Job Order Contracts. Our
project Facilitaor has already created the Pakyaw groups and since the project is rehabilitation of
roads, I think there is not much need of skilled workers, the reason why he opted for Pakyaw
Contracting Service. On the other hand, it would be helpful if you can share with us how we can
go about with the Job order contracts. I suppose Job Order contracts are allowed even if it
exceeds Php500,000.00 since the limit was specifically set for Pakyaw contracting. Am I right?

Last edited by goldlemon789 on Thu Jan 27, 2011 4:41 pm; edited 1 time in total (Reason for
editing : edited the quote)

goldlemon789
New Member

Number of posts: 5
Company/Agency: LGU - Municipality
Occupation/Designation: BAC
Registration date: 2011-01-22

Re: Implementation of Infra Projects by Administration

by goldlemon789 on Thu Jan 27, 2011 4:16 pm
goldlemon789 wrote:as the implementing agency, is the LGU's BAC required to make any
recommendation to the LCE that the labor component shall be on a pakyaw contracting system
under the said GPPB Resolution? (we issued a recommendation on the award of the construction
materials the same being done through bidding). The Project Facilitator wanted the BAC to issue
a recommendation that the labor component is procured through "negotiated procurement". Is the
Pakyaw Contracting System tantamount to a "Negotiated Procurement"?
Yes, you need to make that recommendation because the labor component could either be
undertaken in-house (meaning utilizing the existing manpower of the LGU), by pakyaw
contracting system, or by job orders. Your recommendation to do it by pakyaw system could be
part of the BAC recommendation to implement the project By Administration.
[/quote]
Thanks. Bale, the BAC should state in its resolution that the labor component is to be undertaken
by pakyaw contracting system and not through "negotiated contract" as insisted by the PF and
COA (kasi daw pakyaw contracting system is not a mode of procurement naman eh). Will just
cite the GPPB Resolution for their reference.
goldlemon789 wrote:Further, what if the amount of labor per program of works is more than
PhP500,000.00 limit set in GPPB Resolution No. 018-2006, how can the LGU (as implementing
agency) implement the manual labor component of the project given that it cannot undertake it
through in-house labor? Or if it can be implemented through job orders, how do we go about it?
You can break up the labor component if the total labor cost will amount to more than P500,000.
For example, masonry, carpentry and painting jobs could be undertaken by a separate pakyaw
groups, such that each pakyaw contract does not exceed P500,000 each.
That's what we are doing. However, going through the bill of materials and cost estimates
prepared, I think there is one labor component which exceeds P500,000.00. Would t be possible
to "split" it to 2 more labor components to make it feasible?
goldlemon789 wrote:Based on the contract with the DA, the LGU may enter into a contract,
agreement and/or conduct public bidding, issue POs, accept delivery and issue payments to the

supplier/contractor upon approval of the MOA or upon the release of the first tranche. Clearly, as
implementing agency, we are bound to undertake the rehabilitation of the farm to market road as
stated in the MOA. Can you enlighten us what processes should be undertaken by the BAC
necessary for the pakyaw contracting system, or insofar as the manual labor component of the
contract is concerned.
The process is already outlined in the GPPB resolution you mentioned. I hope, however, that you
have to review your MOA you entered with DA, so that you do not deviate from your
responsibilities in the said MOA. Of course, one of the things that you need to make sure is that
you are really allowed to undertake the project By Administration.
goldlemon789 wrote:We would really appreciate your comments/insights on this matter. Thank
you in advance.
I hope those comments are of help to you.
[/quote]
Thank you very much for your comments. We surely don't want to deviate from our
responsibilities in the MOA at strict ang DA sa implementation For sure if we have other
concerns, I'll again post in this forum.