Government Needs More Competent Contractors

Tuesday, December 8, 2015

The Department of Public Works and Highways is in need of more qualified and well equipped contractors to carry out the proposed P357 Billion worth of projects in the 2016 national spending plan for public infrastructure development.

DPWH allocation for infrastructure for 2016 has increased by 30% or P84 Billion from the P273.9 Billion budget in 2015 as part of the government’s determined efforts to further boost the infrastructure investment.

DPWH Secretary Rogelio L. Singson said that construction industry in the Philippines has a positive future especially for those contractors with Philippine Contractor's Accreditation Board (PCAB) licenses.

However, the prospective contractors have to conform to project’s equipment resources, financial and expertise requirements, technical personnel and to demonstrate competence in terms of ability to participate in competitive public bidding, added Singson.

Republic Act 4566 otherwise known as the Contractor's License Law as amended by Presidential Decree No. 1746 provides that no contractor (including sub-contractor and specialty contractor) shall engage in the business of contracting without first having secured a PCAB license to conduct business.

Although a regular license will automatically qualify the licensee to participate in private projects, a contractor will have to apply for registration with the DPWH Civil Works Registry of Contractors.

Under next year’s proposed infrastructure spending plan, Northern Mindanao (Region 10) will receive the biggest slice of the budget with P30.14 Billion, followed by Central Luzon (Region 3), P25.21 Billion; Southern Tagalog (Region 4-A), P21.28 Billion; Eastern Visayas (Region 8), P20.68 Billion; National Capital Region, P19.7 Billion; Bicol Region (Region 5), P19.65 Billion; Southern Mindanao (Region 11), P18.96 Billion; Western Mindanao (Region 9), P18.59 Billion; Western Visayas (Region 6), P17.84 Billion; CARAGA (Region 13), P16.99 Billion; Central Visayas (Region 7), P16.96 Billion; MIMAROPA (Region 4-B), P16.40 Billion; Ilocos Region (Region 1), P14.97 Billion; Central Mindanao (Region 12), P12.64 Billion; Cagayan Valley (Region 2), P12.41 Billion; and Cordillera Administrative Region, P12.36 Billion.

An additional amount of P64 Billion is also allotted for inter-regional and other nationwide projects.

DPWH has combined budgets of P427.5 Billion from FY 2006 to 2010 and P799.35 Billion from CY 2011 to FY 2015.