NPM No. 018-2015

Requesting Entity: Department of Public Works and Highways (DPWH)

Issues Concern: Price Adjustment/ Price Escalation



Application of contractor for price adjustment due to the increase in the prices of construction materials

In case of an increase in the prices of materials during project implementation, under Section 61.3 of the revised Implementing Rules and Regulations of Republic Act No. 9184, a price escalation may be allowed on the basis of the existence of "extraordinary circumstances" as determined by the National Economic and Development Authority (NEDA) and upon prior approval of the Government Procurement Policy Board. However, the burden of proving the occurrence of "extraordinary circumstances" that will allow for price escalation rests with the requesting procuring entity. Additionally, NEDA shall only respond to such request after receiving the proof and the necessary documentation provided by the procuring entity.