2004-03-22

NPM 032-2004

Requesting Entity: National Irrigation Authority

Issues Concern: Clarification on the Proposed Change Order No. 1 and Extra Work Order No. 1 to Contract No. ADRIPD-C-1, Construction of Diversion Dam and Intake Barrel for Addalam River Irrigation Project under Contract with Atlantic Erectors Inc./Brostan Construction and Development Joint Venture

 

Details

Whether or not the National Irrigation Administration could issue Change Order No. 1 and Extra Work Order No. 1 to Contract No. ADRIPD-C-1, based on the applicable provisions of IRR of PD 1594 as amended and the Contract Documents of said project, notwithstanding the enactment of Republic Act No. 9184 (R.A. 9184), otherwise as the Government Procurement Reform Act and its Implementing Rules and Regulations Part A (IRR-A).

[N]otwithstanding the passage of R.A. 9184 and its IRR-A prior procurement laws, rules and regulations still govern the procurement and implementation of certain government contracts, if the advertisement or invitation for bids were issued prior to the effectivity of the GPRA or its IRR-A.

On these premises, we are of the opinion that NIA may issue the proposed variation orders (Change Order No. 1 and Extra Work Order No. 1 to Contract No. ADRIPD-C-1) for the widening of access road under the guidelines of the IRR of P.D. 1594 as amended. Indubitably, the original contract for Addalam River Irrigation Project was bid out last June 22, 2000 and hence, it is apparent that the invitation for bids for the same was issued long before the effectivity of R.A. 9184 and its IRR-A. Moreover, it is also worthy to note that the general provisions of the Contract Documents of said project incorporate therein the provisions of the IRR of PD 1594 on variation orders. Consequently, this stipulation of the parties primarily governs the implementation of the subject contract.

All told, we find no issue on the said variation orders as its aggregate amount, which is P 1,759,012.23 representing 1.13% deviation from the total contract price, is still within the allowable thresholds as prescribed under the IRR of both old and new applicable procurement laws (25% under the IRR of P.D. 1594 and 10% under the IRR-A of R.A. 9184).