2005-05-31

PM 001-2005

Requesting Entity: National Housing Authority

Issues Concern: Request for Price Adjustment on the Contract for the Talibon Resettlement Project at Barangay San Carlos, Talibon, Bohol

 

Details

Whether NHA was correct in endorsing the request of Yu Construction to NEDA without first resolving the issue on the timeliness of the said request.

Unresolved issues such as the refusal of Yu Construction to accept the Notice to Proceed (NTP) should be threshed out through a process in accordance with appropriate laws, rules, and regulations; but never through an endorsement to determine the validity of a request for contract price adjustment. To allow otherwise would open the floodgates of requests for contract price adjustment with unresolved issues involving the interpretation and application of appropriate laws, rules, and regulations being resolved and decided upon by the GPPB. Thus, the policy in endorsement of requests for price adjustment to NEDA is to require heads of procuring entities to resolve all issues that may be addressed within their authority other than those pertaining to the determination of the existence and validity of extraordinary circumstance before making such endorsement. It should be noted, however, that this does not limit the authority of the GPPB to review any and all facts surrounding the procurement project.