Revised Guidelines for the Implementation of Infrastructure Appendix 1

Projects By Administration

APPENDIX 1
REVISED GUIDELINES FOR THE IMPLEMENTATION OF INFRASTRUCTURE
PROJECTS BY ADMINISTRATION

1.0 Purpose and Coverage

These guidelines shall provide rules for the implementation of projects “by
administration” by all Departments, Bureaus, Offices and Agencies of the National
Government (NGA), Government-Owned and/or Controlled Corporations (GOCCs),
Government Financing Institutions (GFIs), State Universities and Colleges (SUCs), and
Local Government Units (LGUs).

Projects undertaken “by administration” by the Armed Forces of the Philippines Corps
of Engineers (AFPCOE) shall be governed by the guidelines issued by the GPPBthrough
Resolution 09-2005 dated 28 April 2005.

2.0 Definition of Terms

For purposes of these guidelines, the following terms shall be defined as follows:

2.1 “By Administration” refers to the procedure by which the implementation of

an infrastructure project is carried out under the administration and supervision
of the concerned agency through its own personnel.

2.2 Implementing Agency refers to any government unit undertaking the

construction of an infrastructure project.

2.3 Job-Contractor refers to a person or entity who carries out, under his own
responsibility, supervision and control, the performance or completion of a
specific job, service or work which has been farmed out by another for the
latter’s benefit.

2.4 Job-order refers to employment of individuals to undertake piece or lump sum

works, or intermittent jobs of short duration not exceeding six months on a
daily basis.

2.5 Labor-only Contractor refers to a person or entity that engages in the supply
of workers/laborers to an employer but does not have substantial capital or
investment in the form of tools, equipment, machineries, work premises,among
others, and the workers recruited and placed perform activities directly related
to the principal business of the employer.

2.6 Pakyaw refers to a system of hiring a labor group for the performance of a
specific work and/or service incidental to the implementation of an
infrastructure project by administration whereby tools and materials are
furnished by the implementing agency. For the specific work/service output, a
lump-sum payment is made either through the group leader or divided among
the pakyaw workers and disbursed using a payroll system.

2.7 Semi-skilled Work/Job refers to a work/job which needs some skills but does
not require doing the more complex work duties. Semi-skilled jobs may require
alertness and close attention to watching machine processes; or inspecting,
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testing or otherwise looking for irregularities; or tending or guardingequipment,
property, materials, or persons against loss, damage or injury; or other types
of activities which are similarly less complex than skilled work, but more complex
than unskilled work. A job may be classified as semi-skilled where coordination
and dexterity are necessary, as when hands or feet must be moved quickly to
do repetitive tasks.

2.8 Skilled Work/Job refers to work that requires qualifications in which a person
uses judgment to determine the machine and manual operations in order to
obtain the proper form, quality, or quantity of material to be produced. Skilled
work may require laying out work estimating quality, determining the suitability
and needed quantities of materials, making precise measurements, reading
blueprints or other specifications, or making necessary computations or
mechanical adjustments to control or regulate the work.

2.9 Unskilled Work/Job refers to work which needs little or no judgment that can
be learned on the job in a short period of time. The job may or may not require
considerable strength.

3.0 Conditions and Requirements for the use of “By Administration”

3.1 Projects undertaken by Administration shall be included in the approved Annual

Procurement Plan (APP) of the procuring entity concerned as well as the
procurement of the different project components, i.e. tools and construction
equipment covered under sub-item no. 3.5.203 Any change to the APP shall be in
accordance with section 7.4 of the 2016 revised IRR of RA no. 9184.204

3.2 To undertake projects by administration, the implementing agencies must:

a. have a track record of having completed, or supervised a project, by

administration or by contract, similar to and with a cost of at least fifty
percent (50%) of the project at hand, and

b. own the tools and construction equipment to be used or have access to

such tools and equipment owned by other government agencies.

The Department of Public Works and Highways shall validate the track record
and capability of the LGUs, as implementing agencies for nationally funded
projects.205

3.3 Implementing agencies undertaking infrastructure projects by administration

shall comply with the conditions in these guidelines. Further, the technical
supervision and monitoring of these implementing agencies shall be in
accordance with the existing laws, rules and regulations, including these
guidelines and the issuances of the concerned agency.206

203
Amended through GPPB Resolution No. 20-2020, dated October 22, 2020, published in the Philippine Star on December 22,
2020
204
Ibid.
205
Ibid.
206
Ibid.
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3.4 No contractor shall be used by the procuring entity, or its implementing agency
undertaking infrastructure projects by administration directly or indirectly for
works undertaken by administration.207

3.5 Procurement of tools and construction equipment shall be subject to the rules
on public bidding.

3.6 For projects funded by the National Government and implemented by a Local
Government Unit, the latter shall be required to post the necessary warranty
security in accordance with Section 62 of RA 9184 and its IRR.208

3.7 The manual labor component of projects undertaken by administration may be

undertaken in-house by the implementing agency concerned, by job-order or
through the pakyaw contracting system. In-house labor is undertaken if the
workers are employees or personnel occupying regular plantilla positions in the
implementing agency. Job-order contracts shall be governed by relevant
Commission on Audit (COA) and/or Civil Service Commission (CSC) rules.

4.0 Pakyaw Contracting System

4.1 Pakyaw labor shall be drawn from the vicinity of the project, or Pakyaw labor
groups belong to various Barangay Associations contiguous to the project site.
Unskilled labor should be drawn from the Barangay where the project is located;
semi-skilled labor shall be recruited within the municipality, preferably within the
Barangay; skilled labor shall be recruited within the province but preferably
within the Barangay/Municipality.

4.2 The formation of Pakyaw Groups should actively involve the Barangay leaders
and the community. A Project Facilitator (PF) shall be appointed by the
implementing agency to assist in the organization of the Pakyaw Groups and in
the preparation of the Pakyaw Contracts. The PF shall, for purposes of informing
the community of the project and of organizing pakyaw groups, shall convene
community meetings, with the assistance of the Barangay Chairperson/s. The PF
shall cause the registration of all unemployed or underemployed members of the
community who are interested to join Pakyaw groups being formed for the
project.

4.3 The Pakyaw workers should be formed into groups of workers based on the lump
sum works. In case of competitive selection, pakyaw groups which were not
selected for a particular lump sum work may choose to compete for other works
requiring pakyaw groups.

4.4 Where there is competition for the award of Pakyaw works, the pakyaw labor
contract shall be awarded through competitive selection with at least three (3)
Pakyaw Groups participating. There is deemed to be a competition for the award
of pakyaw contracts when the number of laborers who registered during the
community meeting is more than what is reasonably needed for the lump sum
work required under the project. The competitive selection shall be done on a
“per-output” basis. And the winner(s) shall be determined based on what

207
Ibid.
208
As amended by GPPB Resolution No. 03-2011, dated 28 January 2011, published in the Manila Times on 6 April 2011.
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group(s) undertake(s) to deliver the desired output at the lowest rate, either per
item of output or per lump sum work, within the required period.

4.5 For purposes of Item 4.4 hereof, the number of members per group shall be
determined by the Project Facilitator to ensure that at least three Pakyaw Groups
are organized for the competitive selection. The determination by the Project
Facilitator of the number of members per Pakyaw Group shall be exercised with
regard to the objective of providing work to as many laborers as possible.

4.6 A Group Leader shall be elected from among the members of the group who
shall be the signatory to the Pakyaw Contract and any other documents
pertaining to the work on behalf of the Pakyaw Group. He may be replaced at
any time by the group through an election for that purpose, after due notice to
the Project Facilitator and the Barangay Chairperson. Any such replacement shall
not invalidate any previous Pakyaw Contract.

4.7 In no case may Pakyaw Groups be regular or licensed contractors or organized

by and/or under the management of a regular or licensed contractor. Laborers
supplied by job-contractors/labor-only contractors are likewise disqualified to
become members of the Pakyaw groups when the job-contracting/labor-only
contracting is specifically carried out for the purpose.

4.8 The amount of a pakyaw labor contract per project shall not exceed Five Hundred
Thousand Pesos (₱ 500,000.00) per pakyaw group.

5.0 Repealing Clause

This set of guidelines repeals GPPB Resolution 13-2005 approving and adopting the
Guidelines for the Implementation of Infrastructure Projects through Negotiated
Procurement under Sec. 54.2 (d) of IRR209 of RA 9184 and by Administration.

6.0 Effectivity

These Guidelines or any amendments hereto shall take effect fifteen (15) days after
publication in the Official Gazette or in a newspaper of general nationwide circulation
and upon filing with the University of the Philippines Law Center of three (3) certified
copies of these guidelines.210

209
As amended by GPPB Resolution No. 03-2011, dated 28 January 2011, published in the Manila Times on 6 April 2011.
210
Issued through GPPB Resolution No. 18-2006, dated 06 December 2006, published in the Official Gazette on 09 April 2007.
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